Crawford & Company · NYSE:CRD.A
Crawford & — Investor Presentation (July 2016)
27 slides from Crawford &'s investor presentation, Jul 11, 2016
Slide 1: July 2016 Investor Presentation
July 2016 Investor Presentation Exhibit 99.1
Slide 2: Forward-Looking Statements
Forward-Looking Statements —This presentation contains forward-looking statements, including statements about the expected future financial condition, results of operations and earnings outlook of Crawford & Company. Statements, both qualitative and quantitative, that are not statements of historica
Slide 3: Crawford & Company at a Glance
CRAWFORD & COMPANY AT A GLANCE Our History Founded in 1941 with the vision that an independent claims adjusting firm could provide insurers with a cost effective and efficient alternative to in-house adjusters Our Business We provide claims management, Business Process Outsourcing (BPO) programs, an
Slide 4: Global Business Services Leader
INTERNATIONAL 1 Serves the Canadian, Latin American, U.K., European and Asia Pacific markets BROADSPIRE 3 Serves large national accounts, carriers and self-insured entities U.S. SERVICES 2 Serves the United States markets GARDEN CITY GROUP 4 Provides administration for class action settlements and b
Slide 5: U.S. Services Overview
Overview Crawford’s global claims business offers a broad array of claims services including P&C, liability, marine & aviation, vehicle, transportation, catastrophe, contractor managed repair services (Contractor Connection), Global Technical Services for large and complex losses, and forensic accou
Slide 6: Contractor Connection – North America
CONTRACTOR CONNECTION – NORTH AMERICA A technology-enabled, best-in-class industry leader of contractor managed repair networks for residential and commercial losses Network of 5,500 general and specialty contractors Revenues of $64.1 million in 2015 versus $55.9 million in 2014 Recognized by J.D. P
Slide 7: Broadspire and Garden City Group
BROADSPIRE A leading third party administrator to employers and insurance companies, offering casualty claim, medical management, disability and absence management solutions, and risk management information services Broadspire offers critical services that help customers increase their employee prod
Slide 8: First Quarter 2016 Business Summary
First quarter operating earnings grew 103%, year over year, to $21.7 million driven by strong margin expansion as a result of expense reduction combined with strength in Contractor Connection and Broadspire U.S. Services operating margins increased to 15% from 7%, year over year International operat
Slide 9: Q1 and Full Year Revenues and Operating Earnings
Q1 AND FULL YEAR REVENUES AND OPERATING EARNINGS Consolidated Operating Earnings (1) ($ in millions) First Quarter Full Year Revenues ($ in billions) (1) See Appendix for non-GAAP explanation and reconciliation Revenues ($ in millions) Consolidated Operating Earnings (1) ($ in millions)
Slide 10: Executive Management
EXECUTIVE MANAGEMENT Harsha V. Agadi - President and Chief Executive Officer On June 21, 2016 Harsha Agadi was named President and CEO after serving as Interim President since August 2015 30 years of experience in leadership positions at both public and private companies, including several Fortune 5
Slide 11: Strategic Review
STRATEGIC REVIEW Strategic business review initiated Fall 2015 - opportunities uncovered Crawford’s client relationships and brand are strong globally Broadspire and U.S. Contractor Connection are experiencing robust, predictable growth A bloated cost structure combined with a challenging market hav
Slide 12: Global Business Services Center
GLOBAL BUSINESS SERVICES CENTER Located in Manila, Philippines Crawford owned and operated - staffed by Crawford employees Consolidated global operations will drive improved customer service levels and lower costs Client impact: Improving turnaround time Enhancing process control Increasing service
Slide 13: Priorities for 2016
PRIORITIES FOR 2016 Ø Continue to exhibit cost discipline Ø Be more client centric Deliver customized value propositions to clients Increase the speed of doing business enterprise wide Ø Drive synergies in strategic initiatives Ø Capitalize on cross-sell opportunities across the company Ø Continue t
Slide 14: 2016 Guidance
Crawford & Company is reaffirming and updating guidance for 2016 as follows: YEAR ENDING DECEMBER 31, 2016 Low End High End Consolidated revenues before reimbursements $1.05 $1.10 billion Consolidated operating earnings $80.0 $90.0 million Consolidated adjusted EBITDA $120.0 $130.0 million Before ex
Slide 15: Crawford Is Focused on Shareholder Returns
CRAWFORD IS FOCUSED ON SHAREHOLDER RETURNS Global Footprint World’s Largest Independent Provider of Claims Management Solutions Global BPO Platform Global C atastrophe Response Specialized Resources Global Technical Services (GTS) Medical Cost Containment Contractor Connection Crawford Specialty Mar
Slide 16: Questions & Answers
Questions & Answers i4) Geeier
Slide 17: Appendix A: Consolidated First Quarter 2016 Financial Information
Appendix A: Consolidated First Quarter 2016 Financial Information
Slide 18: Consolidated Statements of Operations
Unaudited ($ in thousands, except per share amounts) Three Months Ended March 31, 2016 2015 % Change Revenues Before Reimbursements $277,234 $287,777 (4 )% Costs of Services Provided, Before Reimbursements 201,433 219,323 (8 )% Selling, General, and Administrative Expenses 56,797 60,387 (6 )% Corpor
Slide 19: Balance Sheet Information
Unaudited ($ in thousands) March 31, 2016 December 31, 2015 Change Cash and cash equivalents $53,626 $76,066 ($22,440 ) Accounts receivable, net 159,634 164,596 (4,962 ) Unbilled revenues, net 107,754 98,659 9,095 Total receivables 267,388 263,255 4,133 Goodwill 94,155 95,616 (1,461 ) Intangible ass
Slide 20: Operating and Free Cash Flow
Unaudited ($ in thousands) 2016 2016 2015 2015 Variance Variance Net Income Attributable to Shareholders of Crawford & Company $ 8,630 $ 2,986 $ 5,644 Depreciation and Other Non-Cash Operating Items 10,847 11,545 (698 ) Unbilled and Billed Receivables Change (7,337 ) (1,105 ) (6,232 ) Working Capita
Slide 21: Appendix B: First Quarter 2016 Non-GAAP Financial Information
Appendix B: First Quarter 2016 Non-GAAP Financial Information
Slide 22: Non-GAAP Measures and Reimbursements
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 comparable to other similarly-titled measurement
Slide 23: Adjusted EBITDA and Adjusted Net Income
Adjusted EBITDA Adjusted EBITDA is not a term defined by GAAP and as a result our measure of adjusted EBITDA might not be comparable to similarly titled measures used by other companies. However, adjusted EBITDA is used by management to evaluate, assess and benchmark our operational results and the
Slide 24: Reconciliation of Non-GAAP Items
Quarter Ended Quarter Ended Quarter Ended Quarter Ended Full Year Full Year March 31, March 31, March 31, March 31, Guidance Guidance Unaudited ($ in thousands) 2016 2016 2015 2015 2016 * 2016 * Revenues Before Reimbursements Total Revenues $ 290,908 $ 306,616 $ 1,155,000 Reimbursements (13,674 ) (1
Slide 25: Reconciliation of Non-GAAP Items: Adjusted EBITDA
RECONCILIATION OF NON-GAAP ITEMS (continued) Adjusted EBITDA Quarter Ended Quarter Ended Quarter Ended Quarter Ended Full Year Full Year March 31, March 31, March 31, March 31, Guidance Guidance Unaudited ($ in thousands) 2016 2016 2015 2015 2016 * 2016 * Net income attributable to shareholders of C
Slide 26: Reconciliation of Non-GAAP Items: Net Debt
RECONCILIATION OF NON-GAAP ITEMS (continued) Net Debt March 31, March 31, December 31, December 31, Unaudited ($ in thousands) 2016 2016 2015 2015 Net Debt Short-term borrowings $ 23,118 $ 19,958 Current installments of capital leases 1,767 1,959 Long-term debt and capital leases, less current insta
Slide 27: Reconciliation: Adjusted Net Income and Diluted EPS
RECONCILIATION OF NON-GAAP ITEMS (continued) Non-GAAP Adjusted Net Income and Diluted Earnings Per Share Three Months Ended March 31, 2016 Unaudited ($ in thousands) Income Before Taxes Income Before Taxes Income Taxes Income Taxes Net Income Net Income Net Income Attributable to Crawford & Company