Crawford & Company · NYSE:CRD.A
Crawford & — Q2 2018 Earnings Presentation
29 slides from Crawford &'s earnings presentation, Aug 6, 2018
Slide 1: Second Quarter 2018 Earnings Conference Call
Second Quarter 2018 Earnings Conference Call MAMMA August 7, 2018
Slide 2: Forward-Looking Statements and Additional Information
FORWARD-LOOKING STATEMENTS AND ADDITIONAL INFORMATION ////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////// • Forward-Looking Statements —This presentation contains forward-looking statem
Slide 3: Crawford and Company at a Glance
CRAWFORD AND COMPANY AT A GLANCE The world’s largest publicly listed independent provider of global claims management solutions Organized across three operating segments: 1. P&C Field Adjusting Solutions + Crawford Claims Solutions 2. TPA Solutions Broadspire 3. Specialty Solutions e Large or comple
Slide 4: Second Quarter 2018 Business Highlights
SECOND QUARTER 2018 BUSINESS HIGHLIGHTS $279.0willion Revenue Sefore Reimbursements Mission 0, To restore and enhance lives, businesses and bed Yo ‘iit communities $21.6 wiltion ViSi6n Operating Earnings To be the leading provider and most trusted ies 7.7% source for expert assistance, serving those
Slide 5: Delivering on Our Commitments
DELIVERING ON OUR COMMITMENTS ELLE LLL TELE TELL v Invested in Sales and sales effectiveness to drive growth v Retained 100% of our U.S. CAT clients this season v Have achieved 38% RFP win rate through the second quarter v Leveraged our global scale to assist our Canadian clients given a surge in cl
Slide 6: Focus on Execution
FOCUS ON EXECUTION TUTTLE ELLE ELLE LLL LLL v Sharpened our focus on providing end-to-end solutions for our clients that cut across GSLs Y Will continue to focus our entire organization on core client segments of corporates, brokers, and carriers v Have realigned and augmented our sales teams to mor
Slide 7: Continuous Innovation
CONTINUOUS INNOVATION LLL v Increased investment in technology to drive innovation and new product development v Launching industry vertical soluti with large, g! market opportunities to drive revenue growth v Total Construction Solution has ramped through the second quarter with 22 client wins Y Ho
Slide 8: Second Quarter 2018 Financial Review
SECOND QUARTER 2018 ////////////////////////////////////////////////////////////////////////// Financial Review
Slide 9: Second Quarter Financial Summary
SECOND QUARTER FINANCIAL SUMMARY ////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////// Quarter Ended June 30, June 30, ($ in millions, except per share amounts) 2018 2017 % Change Revenue
Slide 10: Crawford Claims Solutions Segment Highlights
CRAWFORD CLAIMS SOLUTIONS SEGMENT HIGHLIGHTS ////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////// Operating Results (2Q 2018 v. 2Q 2017) Three months ended • Revenues of $93.2 million ve
Slide 11: Crawford TPA Solutions: Broadspire Segment Highlights
CRAWFORD TPA SOLUTIONS: BROADSPIRE SEGMENT HIGHLIGHTS ////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////// Operating Results (2Q 2018 v. 2Q 2017) Three months ended • Revenues of $102.6
Slide 12: Crawford Specialty Solutions Segment Highlights
CRAWFORD SPECIALTY SOLUTIONS SEGMENT HIGHLIGHTS ////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////// Operating Results (2Q 2018 v. 2Q 2017) • Revenues of $83.2 million versus $91.1 milli
Slide 13: Balance Sheet Highlights
BALANCE SHEET HIGHLIGHTS ////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////// December 31, Unaudited ($ in thousands) June 30, 2018 2017 Change Cash and cash equivalents $ 46,323 $ 54,01
Slide 14: Operating and Free Cash Flow
OPERATING AND FREE CASH FLOW ////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////// For the six months ended June 30, Unaudited ($ in thousands) 2018 2017 Variance Net Income Attributable
Slide 15: 2018 Share Repurchases
2018 SHARE REPURCHASES ////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////// • During the 2018 second quarter, the Company did not repurchase any of its shares • During the six month peri
Slide 16: 2018 Guidance
2018 GUIDANCE ////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////// Crawford & Company is updating its guidance for 2018 to reflect the disposal of the Garden City Group business as follo
Slide 17: Conclusion
CONCLUSION ////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////// Looking forward Crawford has six primary objectives for 2018: ▪ Increasing the velocity of our revenue growth ▪ Launching
Slide 18: Second Quarter 2018 Appendix
SECOND QUARTER 2018 ////////////////////////////////////////////////////////////////////////// Appendix
Slide 19: Appendix: Non-GAAP Financial Information
APPENDIX: NON-GAAP FINANCIAL INFORMATION ////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////// Measurements of financial performance not calculated in accordance with GAAP should be consi
Slide 20: Appendix: Non-GAAP Financial Information (continued)
APPENDIX: NON-GAAP FINANCIAL INFORMATION (continued) ////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////// Adjusted EBITDA Adjusted EBITDA is used by management to evaluate, assess and be
Slide 21: Statement of Operations Highlights
STATEMENT OF OPERATIONS HIGHLIGHTS ////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////// Unaudited ($ in thousands, except per share amounts) Three Months Ended June 30, 2018 2017 $ Chang
Slide 22: Reconciliation of Non-GAAP Items
RECONCILIATION OF NON-GAAP ITEMS ////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////// Revenues, Costs of Services Provided, and Operating Earnings Quarter Ended Quarter Ended Full Year J
Slide 23: Reconciliation of Non-GAAP Items (continued)
RECONCILIATION OF NON-GAAP ITEMS (continued) ////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////// Adjusted EBITDA Quarter Ended Full Year June 30, June 30, Guidance Unaudited ($ in thous
Slide 24: Reconciliation of Non-GAAP Items (continued)
RECONCILIATION OF NON-GAAP ITEMS (continued) ////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////// Net Debt June 30, December 31, Unaudited ($ in thousands) 2018 2017 Net Debt Short-term
Slide 25: Reconciliation of Non-GAAP Items (continued)
RECONCILIATION OF NON-GAAP ITEMS (continued) ////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////// Non-GAAP Adjusted Net Income and Diluted Earnings Per Share Three Months Ended June 30,
Slide 26: Reconciliation of Non-GAAP Items (continued)
RECONCILIATION OF NON-GAAP ITEMS (continued) ////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////// Non-GAAP Adjusted Net Income and Diluted Earnings Per Share Six Months Ended June 30, 20
Slide 27: Pro Forma Revenue Bridge Excluding Garden City Group
PRO FORMA REVENUE BRIDGE EXCLUDING GARDEN CITY GROUP ////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////// Quarter Ended Six Months June 30, Ended June 30, 2017 Revenue Excluding GCG $249
Slide 28: Pro Forma Non-GAAP Results Excluding GCG Business
PRO FORMA NON-GAAP RESULTS EXCLUDING GCG BUSINESS ////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////// Three Months Ended June 30, 2018 Net (Loss) Income Attributable to Diluted (Loss) D
Slide 29: Pro Forma Non-GAAP Results Excluding GCG Business
PRO FORMA NON-GAAP RESULTS EXCLUDING GCG BUSINESS ////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////// Three Months Ended June 30, 2017 Net Income Attributable to Diluted Diluted Operati