Crawford & Company · NYSE:CRD.A
Crawford & — Investor Presentation (December 2011)
31 slides from Crawford &'s investor presentation, Dec 8, 2011
Slide 1: Crawford & Company Investor Presentation
Exhibit 99.1 Crawford & Company Investor Presentation December 8, 2011
Slide 2: Forward Looking Statements and Financial Information
Forward Looking Statements and Financial Information 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 quanti
Slide 3: Market-Leading Global Businesses
Market-Leading Global Businesses The world’s largest fully-integrated independent provider of global claims management solutions. EMEA-A/P Broadspire Serves the U.K., European, Serves large national Middle Eastern, African and accounts, carriers and self- Asia Pacific markets insured entities Americ
Slide 4: Crawford's Award-Winning Performance
Crawford’s Award-Winning Performance Service Provider of the Year Loss Adjuster of the Year Crawford & Company Crawford & Company UK With an unprecedented level of natural catastrophes London Market Leaders Order of Merit 2010 - across the world in 2010 and 2011, Crawford seized the Global Broker &
Slide 5: The Crawford System of Claims Solutions
SM The Crawford System of Claims Solutions The Crawford System is the most comprehensive global, integrated solution for all corporate, insurer, and re-insurer claims administration. 5
Slide 6: Crawford is uniquely positioned for global growth
Crawford is uniquely positioned for global growth 6
Slide 7: Our Global Strength
Our Global Strength $1 Billion Revenue Company 70+ Countries 700 Locations 8,900 Employees 7
Slide 8: Americas
Americas • U.S. Property and Casualty • Market leader Trailing 12 Months (“TTM”) Revenues (in millions) • Technology innovation • Benefit from U.S. market consolidation • Canada • Strong relationships with top insurers • End to end solutions • Innovation and technology • Latin America & Caribbean •
Slide 9: EMEA/AP
EMEA/AP • United Kingdom TTM Revenues • EMEA/AP’s largest market (in millions) • Recruitment of GTS adjusters continues • Strong commercial presence • CEMEA • Expansion of TPA offerings • Claims volume increasing • Opportunity to grow market share • Asia/Pacific • Catastrophe revenues should continu
Slide 10: Broadspire
Broadspire • #3 in U.S. workers’ compensation market TTM Revenues • Revenues stabilizing (in millions) • Fully integrated service model • Improved outcomes by teaming claims and medical management • Superior outcomes measurement • Quantifiable measurements providing insight for continued program imp
Slide 11: Legal Settlement Administration
Legal Settlement Administration • Core services: TTM Revenues • GCG Class Action Services provides (in millions) administrative services to expedite high-volume class action settlements • GCG Bankruptcy Services manages the administration of Chapter 11 bankruptcy cases • GCG Communications specializ
Slide 12: High Profile Specialized Resources
High Profile Specialized Resources: Worldwide Catastrophe Response Global Technical Services (GTS) Contractor Connection Garden City Group (GCG)
Slide 13: Customer response to unprecedented number of global catastrophes
Crawford’s customer response to the unprecedented number of global catastrophes has been rapid, nimble and innovative Severe storms, tornadoes USA, 20–25 May Floods USA, April–June Severe storms, tornadoes, Hurricane Irene Earthquake, tsunami USA, April-September Japan, 11 March Wildfires USA, May–J
Slide 14: Global Technical Services
Global Technical Services • The definitive solution for large, complex claims, providing the highest level of world-class talent and the industry’s largest network to strategically manage large complex losses anywhere on the globe • Combining regional and local adjusting strengths to leverage scale
Slide 15: Contractor Connection – Managed Repair Solutions
Contractor Connection – Managed Repair Solutions • Dominant insurance industry leader • Over 4,000 contractors in the U.S. & Canada • Projected over $1 billion in loss estimates in 2011 • Average 20% revenue growth over the last five years • Partner with 50% of top 25 carriers • Expanding into consu
Slide 16: GCG
GCG Best Claims Administrator – 2011 New York Law Journal – Largest securities class action administrator in the country • Deep expertise in mega-case settlements • GCG has been entrusted with more billion dollar+ securities settlements than all competitors combined • No one handled more of the top
Slide 17: Financial Review
a» aaa, Financial Review
Slide 18: Crawford Financial Performance
Crawford Financial Performance Consolidated Revenues (in $ millions) • Revenue CAGR of 6.3% from 2006 to projected 2011 • Revenue growth driven by strong performance in Legal Settlement Administration, organic growth in EMEA/AP, and acquisitions • Before a net special credit in 2011, CAGR of non-GAA
Slide 19: Nine Months 2011 Business Drivers
Nine Months 2011 Business Drivers Revenues (in $ millions) • Revenues and earnings reflected continued strong performance in Legal Settlement Administration, due to a special project • Americas’ rebound driven by U.S. catastrophe activity • Organic growth in EMEA/AP primarily due to weather-related
Slide 20: Third Quarter 2011 Financials
Third Quarter 2011 Financials CRAWFORD & COMPANY Income Statement Highlights Unaudited (In Thousands, Except Per Share Amounts and Percentages) Nine Months Ended September 30 2011 2010 % Change Revenues $859,718 $728,940 18% Costs of Services 629,292 538,142 17% Selling, General, and Administrative
Slide 21: Third Quarter 2011 Financials
Third Quarter 2011 Financials Crawford & Company Balance Sheet Highlights Unaudited (In Thousands, except percentages) September 30, December 31, 2011 2010 Change Cash and cash equivalents $68,034 $93,540 ($25,506) Accounts receivable, net 179,024 142,521 36,503 Unbilled revenues, net 133,424 122,93
Slide 22: Proforma Operating Cash Flow
Proforma Operating Cash Flow TTM Operating Cash Flow* (in millions) • Strong cash flow profile • Incentive compensation plan rewards cash generation • Future cash generation drives defined benefit pension funding, deleveraging, reinvestment for growth, and dividend yield *Excluding a $30 million acc
Slide 23: 2011 Focus and Outlook
a» aaa, 2011 Focus and Outlook
Slide 24: 2011 Guidance
2011 Guidance • Full Year 2011 Guidance issued as of November 7, 2011: – Consolidated revenues before reimbursements between $1.10 billion and $1.13 billion – Consolidated operating earnings between $83.0 million and $89.0 million – Consolidated cash provided by operating activities between $30.0 mi
Slide 25: Operational Focus
Operational Focus • Bring Broadspire to an acceptable operating level • Significant debt reduction • Continue to grow revenue and operating earnings • Capitalize on global opportunities • Enhance shareholder returns 25
Slide 26: Crawford & Company
Crawford & Company Investor Presentation December 8, 2011
Slide 27: Appendix: Non-GAAP Financial Information
Appendix: Non-GAAP Financial Information 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 not necessarily compara
Slide 28: Reconciliation of Non-GAAP Items
Reconciliation of Non-GAAP Items (in $millions except Earnings Per Share Amounts) 2006 2007 2008 2009 2010 2011 Projected* Revenues Before Reimbursements Total Revenues $ 900 $ 1,051 $ 1,136 $ 1,048 $ 1,110 $ 1,204 Reimbursements (80) (76) (87) (78) (80) (89) Revenues Before Reimbursements $ 820 $ 9
Slide 29: Reconciliation of Non-GAAP Items (cont.)
Reconciliation of Non-GAAP Items (cont.) 2010 2011 (in $millions) 1Q 2Q 3Q 4Q 1Q 2Q 3Q Revenues Before Reimbursements Total Revenues $ 252 $ 256 $ 278 $ 324 $ 304 $ 314 $ 308 Reimbursements (16) (18) (23) (23) (19) (22) (25) Revenues Before Reimbursements $ 236 $ 238 $ 255 $ 301 $ 285 $ 292 $ 283 29
Slide 30: Reconciliation of Non-GAAP Items (cont.)
Reconciliation of Non-GAAP Items (cont.) Crawford & Company (in $ 000s) September 30, December 31, 2011 2010 Deferred Revenues, Net Deferred revenues, current $ 50,454 $ 48,198 Deferred revenues, noncurrent 28,623 30,048 Total deferred revenues 79,077 78,246 Less: Receivable held in trust included i
Slide 31: Reconciliation of Non-GAAP Items (cont.)
Reconciliation of Non-GAAP Items (cont.) Crawford & Company Non-GAAP Cash Flow from Operations Reconciliation of Trailing Twelve Months in $millions Operating Operating Operating Cash Cash Cash Flow Flow Flow for the Additional for the for the Prior 4th Quarter Non-GAAP Current Prior December Operat