Crawford & Company · NYSE:CRD.A
Crawford & — Q3 2017 Earnings Presentation
25 slides from Crawford &'s earnings presentation, Nov 6, 2017
Slide 1: Third Quarter 2017 Earnings Conference Call
November 6, 2017 Third Quarter 2017 Earnings Conference Call
Slide 2: Forward-Looking Statements
////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////// 2 • Forward-Looking Statements —This presentation contains forward-looking statements, including statements about the expected future
Slide 3: Global Business Services Leader
////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////// 3 GLOBAL BUSINESS SERVICES LEADER • The world's largest publicly listed independent provider of global claims management solutions •
Slide 4: Today's Agenda
////////////////////////////////////////////////////////////////////////// TODAY'S AGENDA --- Welcome and Opening Comments --- Third Quarter 2017 Financial Review --- 2017 Updated Guidance and Strategic Initiatives
Slide 5: Third Quarter 2017 Business Summary
////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////// 5 THIRD QUARTER 2017 BUSINESS SUMMARY (1) See Appendix for non-GAAP explanation and reconciliation Quarter Ended September 30, Septem
Slide 6: Third Quarter 2017 Business Highlights
////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////// 6 THIRD QUARTER 2017 BUSINESS HIGHLIGHTS • Consolidated revenues decreased by $6.7 million or 2.4% for the quarter. After adjusting f
Slide 7: Third Quarter 2017 Financial Review
////////////////////////////////////////////////////////////////////////// THIRD QUARTER 2017 Financial Review
Slide 8: Consolidated Income Statement, Three Months Ended September 30, 2017
////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////// 8 Unaudited ($ in thousands, except per share amounts) Three Months Ended September 30, 2017 2016 $ Change % Change Revenues Before R
Slide 9: U.S. Services Segment Highlights
////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////// 9 3Q 2017 3Q 2016 $25 $20 $15 $10 $5 $0 Claims Ops Tech Svcs CAT Cont. Conn. WGL 3Q 2017 3Q 2016 60 40 20 0 Claims Ops Tech Svcs CAT
Slide 10: International Segment Highlights
////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////// 10 3Q 2017 3Q 2016 $50 $40 $30 $20 $10 $0 U.K. Canada Asia-Pacific Europe and ROW Revenues by Geographic Region ($ in millions) Opera
Slide 11: Broadspire Segment Highlights
////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////// 11 3Q 2017 3Q 2016 60 45 30 15 0 Workers' Compensation Casualty Medical Management, Disability and Other 3Q 2017 3Q 2016 $45 $30 $15
Slide 12: Garden City Group Segment Highlights
////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////// 12 3Q 2017 3Q 2016 $125 $100 $75 $50 $25 $0 66 94 Backlog ($ in millions) Operating Results (3Q 2017 v. 3Q 2016) • Revenues of $20.0
Slide 13: Balance Sheet and Liquidity
////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////// 13 Unaudited ($ in thousands) September 30, 2017 December 31, 2016 Change Cash and cash equivalents $ 73,289 $ 81,569 $ (8,280) Accou
Slide 14: Operating and Free Cash Flow
////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////// 14 Unaudited ($ in thousands) 2017 2016 Variance Net Income Attributable to Shareholders of Crawford & Company $ 29,678 $ 28,202 $ 1,
Slide 15: 2017 Share Repurchases
////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////// 15 2017 SHARE REPURCHASES • During the third quarter 2017, Crawford repurchased 193,527 shares of CRD-A for an average price of $7.77
Slide 16: 2017 Guidance
////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////// 16 Crawford & Company is updating and raising certain aspects of its guidance for 2017 as follows: YEAR ENDING DECEMBER 31, 2017 Low
Slide 17: 2017 Strategic Initiatives
////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////// 17 2017 STRATEGIC INITIATIVES • Having a strong financial foundation Ø Implement cost reduction initiatives to drive margin expansion
Slide 18: Appendix Third Quarter 2017
////////////////////////////////////////////////////////////////////////// Appendix THIRD QUARTER 2017
Slide 19: Non-GAAP Measures and Reimbursements
////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////// 19 Measurements of financial performance not calculated in accordance with GAAP should be considered as supplements to, and not subst
Slide 20: Adjusted EBITDA and Non-GAAP Adjusted Net Income
////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////// 20 Adjusted EBITDA Adjusted EBITDA is used by management to evaluate, assess and benchmark our operational results and the Company be
Slide 21: Reconciliation of Non-GAAP Items
////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////// 21 Quarter Ended Quarter Ended Full Year September 30, September 30, Guidance Unaudited ($ in thousands) 2017 2016 2017 * Revenues Be
Slide 22: Reconciliation of Non-GAAP Items: Adjusted EBITDA
////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////// 22 RECONCILIATION OF NON-GAAP ITEMS (continued) Adjusted EBITDA Quarter Ended Full Year September 30, September 30, Guidance Unaudite
Slide 23: Reconciliation of Non-GAAP Items: Net Debt
////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////// 23 RECONCILIATION OF NON-GAAP ITEMS (continued) Net Debt September 30, December 31, Unaudited ($ in thousands) 2017 2016 Net Debt Sho
Slide 24: Reconciliation: Adjusted Net Income and Diluted EPS
////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////// 24 RECONCILIATION OF NON-GAAP ITEMS (continued) Non-GAAP Adjusted Net Income and Diluted Earnings Per Share Three Months Ended Septem
Slide 25: Reconciliation: Full Year Guidance Adjusted Net Income and EPS
////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////// 25 RECONCILIATION OF NON-GAAP ITEMS (continued) Non-GAAP Adjusted Net Income and Diluted Earnings Per Share *Full Year Guidance 2017