Crawford & Company · NYSE:CRD.A
Crawford & — Q1 2013 Earnings Presentation
25 slides from Crawford &'s earnings presentation, May 6, 2013
Slide 1: First Quarter Earnings Conference Call May 6, 2013
Crawford & Company First Quarter Earnings Conference Call May 6, 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 2
Slide 4: Today's Agenda
Today’s Agenda Welcome and Opening Comments First Quarter 2013 Financial Review First Quarter 2013 Operational Review Guidance and Future Operational Focus
Slide 5: Business Summary
Crawford & Company First Quarter 2013 Business Summary $0 $100 $200 $300 $400 Q1 2013 Q1 2012 Revenues ($ in millions) 5 Revenues increased 7% to $286.3 million Consolidated operating earnings increased 25% to $18.0 million Net income increased 61% to $9.7 million Diluted earnings per share of $0.18
Slide 6: First Quarter 2013 Financial Review
First Quarter 2013 Financial Review
Slide 7: Income Statement Highlights
Crawford & Company First Quarter 2013 Financials 7 Crawford & Company Income Statement Highlights Unaudited ($ in thousands, except per share amounts) Quarters Ended March 31, 2013 2012 % Change Revenues $286,281 $267,753 7% Costs of Services 213,341 199,707 7% Selling, General, and Administrative E
Slide 8: Summary Results: Americas
Crawford & Company First Quarter 2013 Financials 8 Summary Results: Americas Unaudited ($ in thousands) For the quarters ended March 31, Completion of Superstorm Sandy cases drove higher revenues in 2013 period 2013 operating earnings include $2.3 million gain from sale of customer contract in L
Slide 9: Summary Results: U.S. Catastrophe (CAT) adjuster activity
Crawford & Company First Quarter 2013 Financials 9 Summary Results: U.S. Catastrophe (CAT) adjuster activity CAT adjuster revenues of $10.8 million in first quarter of 2013 compared with $3.7 million in 2012 period CAT cases numbered 11,200 in the first quarter of 2013 compared with 5,500 in the
Slide 10: Summary Results: EMEA/AP
Crawford & Company First Quarter 2013 Financials 10 Summary Results: EMEA/AP Unaudited ($ in thousands) For the quarters ended March 31, Revenue and earnings grew quarter over quarter led by improvements in the UK and CEMEA Effects of exchange rates were negligible in the 2013 quarter $50 $60 $7
Slide 11: Summary Results: Broadspire
Crawford & Company First Quarter 2013 Financials 11 Summary Results: Broadspire Unaudited ($ in thousands) For the quarters ended March 31, Revenue decline reflects less medical management contribution and a decrease in workers’ compensation claims Outlook for the year remains positive $45 $50 $
Slide 12: Summary Results: Legal Settlement Administration
Crawford & Company First Quarter 2013 Financials 12 Summary Results: Legal Settlement Administration Unaudited ($ in thousands) For the quarters ended March 31, $20 $30 $40 $50 $60 1Q 2013 1Q 2012 Revenues ($ in millions) $0 $4 $8 $12 $16 1Q 2013 1Q 2012 Operating Earnings ($ in millions) 48.1 56.7
Slide 13: Balance Sheet Highlights
Crawford & Company First Quarter 2013 Financials 13 Crawford & Company Balance Sheet Highlights Unaudited ($ in thousands) March 31, December 31, 2013 2012 Change Cash and cash equivalents $59,430 $71,157 ($11,727) Accounts receivable, net 172,933 164,708 8,225 Unbilled revenues, net 131,026 124,881
Slide 14: Operating and Free Cash Flow
Crawford & Company First Quarter 2013 Financials 14 Crawford & Company Operating and Free Cash Flow Unaudited ($ in thousands) For the quarters ended March 31: 2013 2012 Variance Net Income Attributable to Shareholders of Crawford & Company $9,739 $6,065 $3,674 Plus: Depreciation and Other Non-Cash
Slide 15: First Quarter 2013 Operational Review
First Quarter 2013 Operational Review
Slide 16: Operational Review: First Quarter Business Drivers
Crawford & Company First Quarter Operational Review 16 First Quarter Business Drivers $240 $250 $260 $270 $280 $290 $300 $310 $320 1Q 2013 4Q 2012 3Q 2012 2Q 2012 1Q 2012 Revenues ($ in millions) 280 290 300 310 320 330 340 1Q 2013 4Q 2012 3Q 2012 2Q 2012 1Q 2012 Cases Received (In thousands) Stro
Slide 17: Operational Review: Americas
Crawford & Company First 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 Superstorm Sandy aided first quarter performance Continued expansion of Contractor Connection network Launched
Slide 18: Operational Review: EMEA/AP
Crawford & Company First Quarter Operational Review 18 EMEA/AP $0 $5 $10 $15 $20 $25 $30 $35 U.K. CEMEA Asia-Pacific Revenues by Geographic Region ($ in millions) U.K. Reduction in property claim volumes Continued focus on Global Technical Services (GTS) activities CEMEA Claims volume increased in f
Slide 19: Operational Review: Broadspire
Crawford & Company First 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) Broadspire case volume improved 11%, primarily due to low value, record only cases associated with a special
Slide 20: Operational Review: Legal Settlement Administration
Crawford & Company First Quarter Operational Review 20 Legal Settlement Administration $0 $20 $40 $60 $80 $100 $120 $140 $160 1Q 2013 1Q 2012 Backlog ($ in millions) Deepwater Horizon class action project continued Large class action project ramped up in the quarter, which drove revenue improvem
Slide 21: 2013 Guidance
Crawford & Company 2013 Guidance 21 Crawford & Company is reaffirming full year 2013 guidance as follows: Consolidated revenues before reimbursements between $1.05 and $1.08 billion Consolidated operating earnings between $85.0 and $93.0 million Consolidated cash provided by operating activiti
Slide 22: 2013 Operational Focus
Crawford & Company 2013 Operational Focus 22 Sustain Operating Performance through Improved Profitability Americas improvement in U.S. Property & Casualty and Canada Continued progress in Broadspire Strengthen the Balance Sheet Manage debt levels and pension obligations Drive operating cash
Slide 23: Appendix
Crawford First Quarter 2013 Appendix
Slide 24: Appendix: Non-GAAP Financial Information
Crawford & Company Appendix: Non-GAAP Financial Information 24 Measurements of financial performance not calculated in accordance with GAAP should be considered as supplements to, and not substitutes for, performance measurements calculated or derived in accordance with GAAP. Any such measures are n
Slide 25: Reconciliation of Non-GAAP Items
Crawford & Company Reconciliation of Non-GAAP Items 25 Unaudited ($ in thousands) March 31, December 31, 2013 2012 Net Debt Short-term borrowings 52,184$ 13,275$ Current installments of long-term debt and capital leases 843 838 Long-term debt and capital leases, less current installments 152,087 152