Crawford & Company · NYSE:CRD.A
Crawford & — Q3 2013 Earnings Presentation
25 slides from Crawford &'s earnings presentation, Nov 4, 2013
Slide 1: Third Quarter Earnings Conference Call
Crawford & Company Third Quarter Earnings Conference Call November 4, 2013
Slide 2: Forward-Looking Statements and Additional Information
Crawford & Company FORWARD-LOOKING STATEMENTS AND ADDITIONAL INFORMATION 2 Forward-looking statements –This presentation contains forward-looking statements, including statements about the future financial condition, results of operations and earnings outlook of Crawford & Company. Statements, bot
Slide 3: Global Business Services Leader
Crawford & Company Global Business Services Leader The world’s largest independent provider of global claims management solutions Multiple globally recognized brand names: Crawford, Broadspire, GCG Clients include multinational insurance carriers, brokers and local insurance firms as well as o
Slide 4: Today's Agenda
Today’s Agenda Welcome and Opening Comments Third Quarter 2013 Financial Review Third Quarter 2013 Operational Review Guidance and Future Operational Focus
Slide 5: Business Summary
Crawford & Company Third Quarter 2013 Business Summary $0 $100 $200 $300 $400 Q3 2013 Q3 2012 Revenues ($ in millions) 5 Revenues decreased 3% to $293.3 million Improvement in Broadspire and Americas segment operating results for quarter and year-to-date period Consolidated operating earnings decrea
Slide 6: Third Quarter 2013 Financial Review
Third Quarter 2013 Financial Review
Slide 7: Income Statement Highlights
Crawford & Company Third Quarter 2013 Financials 7 Crawford & Company Income Statement Highlights Unaudited ($ in thousands, except per share amounts) Quarters Ended September 30, 2013 2012 % Change Revenues $293,338 $302,136 -3% Costs of Services 212,375 212,479 - Selling, General, and Administrati
Slide 8: Summary Results: Americas
Crawford & Company Third Quarter 2013 Financials 8 Summary Results: Americas Unaudited ($ in thousands) For the quarters ended September 30, Weather-related claims in Canada drove higher Canadian and U.S. catastrophe revenues Continued growth in Contractor Connection $0 $25 $50 $75 $100 3Q 2013
Slide 9: Summary Results: U.S. Catastrophe (CAT) adjuster activity
Crawford & Company Third Quarter 2013 Financials 9 Summary Results: U.S. Catastrophe (CAT) adjuster activity CAT adjuster revenues of $13.9 million in the 2013 third quarter, which includes assistance provided to Canada. CAT cases numbered 10,400 in 2013 third quarter compared with 15,000 in the
Slide 10: Summary Results: EMEA/AP
Crawford & Company Third Quarter 2013 Financials 10 Summary Results: EMEA/AP Unaudited ($ in thousands) For the quarters ended September 30, Revenues and operating earnings declined due to the winding down of Thailand special project and reduction in the U.K. Double-digit growth in CEMEA revenue
Slide 11: Summary Results: Broadspire
Crawford & Company Third Quarter 2013 Financials 11 Summary Results: Broadspire Unaudited ($ in thousands) For the quarters ended September 30, Improvement in operating performance over the 2012 third quarter Revenue growth tied to new program wins during 2013 $45 $50 $55 $60 $65 3Q 2013 3Q 2012
Slide 12: Summary Results: Legal Settlement Administration
Crawford & Company Third Quarter 2013 Financials 12 Summary Results: Legal Settlement Administration Unaudited ($ in thousands) For the quarters ended September 30, $20 $30 $40 $50 $60 $70 3Q 2013 3Q 2012 Revenues ($ in millions) $0 $3 $6 $9 $12 $15 $18 3Q 2013 3Q 2012 Operating Earnings ($ in milli
Slide 13: Balance Sheet Highlights
Crawford & Company Third Quarter 2013 Financials 13 Crawford & Company Balance Sheet Highlights Unaudited ($ in thousands) September 30, December 31, 2013 2012 Change Cash and cash equivalents $51,141 $71,157 ($20,016) Accounts receivable, net 201,880 164,708 37,172 Unbilled revenues, net 122,340 12
Slide 14: Operating and Free Cash Flow
Crawford & Company Third Quarter 2013 Financials 14 Crawford & Company Operating and Free Cash Flow Unaudited ($ in thousands) For the year-to-date periods ended September 30: 2013 2012 Variance Net Income Attributable to Shareholders of Crawford & Company $40,152 $34,705 $5,447 Plus: Depreciation a
Slide 15: Third Quarter 2013 Operational Review
Third Quarter 2013 Operational Review
Slide 16: Third Quarter Business Drivers
Crawford & Company Third Quarter Operational Review 16 Third Quarter Business Drivers $270 $275 $280 $285 $290 $295 $300 $305 $310 $315 3Q 2013 2Q 2013 1Q 2013 4Q 2012 3Q 2012 Revenues ($ in millions) 290 300 310 320 330 340 350 360 370 380 3Q 2013 2Q 2013 1Q 2013 4Q 2012 3Q 2012 Cases Received (In
Slide 17: Operational Review: Americas
Crawford & Company Third Quarter Operational Review 17 Americas $0 $10 $20 $30 $40 $50 $60 U.S. Canada Latin America Revenues by Geographic Region ($ in millions) U.S. Property and Casualty Continued growth in Contractor Connection revenues Increase in revenues resulted from assistance provided to C
Slide 18: Operational Review: EMEA/AP
Crawford & Company Third Quarter Operational Review 18 EMEA/AP $0 $5 $10 $15 $20 $25 $30 $35 $40 $45 U.K. CEMEA Asia-Pacific Revenues by Geographic Region ($ in millions) U.K. Reduction in weather-related property claim volumes Significant cost control measures implemented CEMEA Claims volume increa
Slide 19: Operational Review: Broadspire
Crawford & Company Third Quarter Operational Review 19 Broadspire $0 $5 $10 $15 $20 $25 $30 $35 Workers' Comp. Medical Mgmt. Risk Mgmt. Info. Svcs. Revenues by Service Line ($ in millions) Case volume improved 17% New client wins drove revenue increase and retention remains very strong Higher
Slide 20: Operational Review: Legal Settlement Administration
Crawford & Company Third Quarter Operational Review 20 Legal Settlement Administration $0 $20 $40 $60 $80 $100 $120 $140 3Q 2013 3Q 2012 Backlog ($ in millions) Revenues from Deepwater Horizon special project continued to decrease as expected Large class action projects ramped up in the quarter,
Slide 21: 2013 Guidance
Crawford & Company 2013 Guidance 21 Crawford & Company is affirming and updating certain aspects of its full year 2013 guidance as follows: Consolidated revenues before reimbursements between $1.13 and $1.15 billion Consolidated operating earnings between $95.0 and $99.0 million Consolidated c
Slide 22: Operational Focus
Crawford & Company Operational Focus 22 Sustain Operating Performance through Improved Profitability Americas improvement in U.S. Property & Casualty and Canada Continued progress in Broadspire Strengthen the Balance Sheet Manage debt levels and pension obligations Drive operating cash flow
Slide 23: Appendix
Crawford Third Quarter 2013 Appendix
Slide 24: Appendix: Non-GAAP Financial Information
Crawford & Company Appendix: Non-GAAP Financial Information 24 Measurements of financial performance not calculated in accordance with GAAP should be considered as supplements to, and not substitutes for, performance measurements calculated or derived in accordance with GAAP. Any such measures are n
Slide 25: Reconciliation of Non-GAAP Items
Crawford & Company Reconciliation of Non-GAAP Items 25 Unaudited ($ in thousands) September 30, December 31, 2013 2012 Net Debt Short-term borrowings 32,717$ 13,275$ Current installments of long-term debt and capital leases 884 838 Long-term debt and capital leases, less current installments 151,931