Crawford & Company · NYSE:CRD.A
Crawford & — Q2 2009 Earnings Presentation
24 slides from Crawford &'s earnings presentation, Aug 10, 2009
Slide 1: Second Quarter 2009 Earnings Conference Call
Exhibit 99.2 Second Quarter 2009 Earnings Conference Call Monday, August 10, 2009 WORKING TOGETHER: theCrawford Difference
Slide 2: Second Quarter Earnings Review
Second Quarter Earnings Review August 10, 2009 • Founded in 1941, Crawford is the largest independent global provider of claims management solutions and a fully integrated global provider of these solutions for the growing multi-national market. • Crawford is divided into four operating segments tha
Slide 3: Forward-looking Statements and Segment Operating Earnings
Forward-looking Statements and Segment Operating Earnings 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, both qualitative and q
Slide 4: Working Together – The Crawford Difference Agenda
Working Together – The Crawford Difference Agenda: • Welcome and Opening Comments • Crawford System of Claims Solutions • Overview of 2009 Second Quarter • 2009 Second Quarter Financial Review • Segment Operating Highlights • Outlook for Fiscal 2009 4 WORKING TOGETHER: theCrawfordDifference
Slide 5: Opening Comments
Opening Comments • Our Performance and Opening Comments • Economic Outlook • Market Trends and Discussion • Expansion of Broadspire Services Brand in the U.K. 5 WORKING TOGETHER: theCrawfordDifference
Slide 6: The Crawford System of Claims Solutions
SM The Crawford System of Claims Solutions The Crawford System is the most comprehensive global, integrated solution for corporate, insurer, and re-insurer claims administration. WORKING TOGETHER: theCrawfordDifference
Slide 7: Second Quarter Overview
Second Quarter Overview $ in millions • Encouraging financial performance in a 270 difficult operating environment 260 250 Second quarter consolidated revenue decline of 240 $263.3 5.2% as a strong U.S. dollar negatively affected 230 revenues by $24.3 million 220 $249.7 $94 million non-cash impairme
Slide 8: Revenue and Earnings Per Share Bridge 2nd Quarter 2008 to 09
Revenue and Earnings Per Share Bridge 2nd Quarter 2008 to 2009 Net Income (Loss) Attributable Revenues Before to Crawford In millions, except per share amounts Reimbursements & Company EPS 2nd quarter 2008 results $263.3 $7.9 $0.16 (Less)/Add: Foreign currency impact in 2009 (24.3) (1.5) (0.03) Incr
Slide 9: Financial Review
Second Quarter 2009 Financial Review WORKING TOGETHER: the Crawford Difference
Slide 10: Second Quarter 2009 Financials
Second Quarter 2009 Financials CRAWFORD & COMPANY CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS Unaudited (In Thousands, Except Earnings Per Share Amounts and Percentages) Three Months Ended June 30 2009 2008 % Change Revenues: Revenues Before Reimbursements $249,664 $263,265 -5% Reimbursements 21
Slide 11: Summary Results, International Operations
Second Quarter 2009 Financials Summary Results, International Operations $ in millions For the quarters ended June 30, 2009 and 2008 120 in thousands except percentages 110 Unaudited 100 2009 2008 % Change $113.4 90 $96.1 80 Revenues $ 96,127 $ 113,433 -15.3% 70 Total Operating Expenses 87,907 102,9
Slide 12: Summary Results, U.S. Property & Casualty
Second Quarter 2009 Financials $ in millions Summary Results, U.S. Property & Casualty 60 For the quarters ended June 30, 2009 and 2008 50 in thousands except percentages 40 $54.5 Unaudited $51.2 2009 2008 % Change 30 20 Revenues $ 54,547 $ 51,198 6.5% 10 0 Total Operating Expenses 48,329 46,106 4.8
Slide 13: Summary Results, Broadspire
Second Quarter 2009 Financials $ in millions Summary Results, Broadspire 90 For the quarters ended June 30, 2009 and 2008 80 in thousands except percentages Unaudited 70 $79.1 2009 2008 % Change $73.1 60 50 Revenues $ 73,056 $ 79,065 -7.6% 40 2Q 2009 2Q 2008 Total Operating Expenses 73,662 76,525 -3
Slide 14: Summary Results, Legal Settlement Administration
Second Quarter 2009 Financials $ in millions Summary Results, Legal Settlement Administration 29.0 For the quarters ended June 30, 2009 and 2008 27.0 in thousands except percentages 25.0 Unaudited 23.0 $25.9 2009 2008 % Change 21.0 19.0 Revenues $ 25,934 $ 19,569 32.5% 17.0 $19.6 15.0 2Q 2009 2Q 200
Slide 15: Balance Sheet Highlights
Second Quarter 2009 Financials Crawford & Company Balance Sheet Highlights As of June 30, 2009 and December 31, 2008 (in thousands) June 30 December 31, 2009 2008 Change Cash and cash equivalents $58,100 $73,124 ($15,024) Accounts receivable, net 149,099 157,430 (8,331) Work in process 101,393 99,11
Slide 16: Free Cash Flow
Second Quarter 2009 Financials Crawford & Company Free Cash Flow For the year-to-date periods ended June 30, 2009 and 2008 (In Thousands) June 30, June 30, 2009 2008 Variance Net (Loss) Income Attributable to Crawford & Company ($85,042) $17,000 ($102,042) Plus: Non-Cash Preliminary Goodwill Impairm
Slide 17: Segment Highlights
Second Quarter 2009 Segment Highlights WORKINGTOGETHER: theCrawfordDifference
Slide 18: International Operations
Second Quarter 2009 Financials International Operations Claims referred in 000s Global revenue growth of 6.1% before 160 currency impacts 150 FX impact on second quarter revenues was negative 21.4%, or 140 $24.3 million 150.7 130 Improvements in Canada and Asia 139.5 Pacific 120 Operating margin dec
Slide 19: U.S. Property & Casualty
Second Quarter 2009 Financials U.S. Property & Casualty Claims referred in 000s Revenue growth of 6.5% Operating margin of 11.4%, up from 125 9.9% in 2008 second quarter 115 Technology-driven efficiencies 105 continue to be realized 116.7 113.7 95 Claims referred increased 2.6% due to increases in p
Slide 20: U.S. Catastrophe (CAT) Activity
U.S. Catastrophe (CAT) Activity Quarter Ended June 30: U.S. Catastrophe Revenues $ in millions 8 Catastrophe revenue up to $7.2 million from $3.5 million 6 $7.2 CAT events totaled 18 in the 2009 4 period compared to 25 in 2008 2009 reflects benefit due to severe 2 $3.5 weather in first and second qu
Slide 21: Broadspire Highlights
Second Quarter 2009 Highlights Broadspire Workers’ Compensation market remains Claims referred in 000s challenging due to rising U.S. 70 unemployment levels 65 Revenue decrease of 7.6% on 9.1% decline 60 in claims 62.9 Claim volume stabilizing in 2009 second 55 57.2 quarter compared to 2009 first qu
Slide 22: Legal Settlement Administration Highlights
Second Quarter 2009 Highlights Backlog in millions Legal Settlement Administration Revenue increased 32.5% 60 Increase in bankruptcy related $62.8 revenues led by several major cases 50 awarded in 2009 40 $52.8 Continued slowdown in securities 30 class actions Record backlog of $62.8 million 20 2Q 2
Slide 23: 2009 Guidance
2009 Guidance • Full Year 2009 Guidance: – Consolidated revenue before reimbursements between $960 million and $980 million – Consolidated operating earnings between $52.5 million and $57.8 million – Consolidated cash provided by operating activities between $35 and $40 million. – After reflecting s
Slide 24: Earnings Conference Call
Second Quarter 2009 Earnings Conference Call Monday, August 10, 2009 WORKING TOGETHER: theCrawfordDifference