Crawford & Company · NYSE:CRD.A
Crawford & — Investor Presentation (January 2016)
26 slides from Crawford &'s investor presentation, Jan 12, 2016
Slide 1: Investor Presentation
Investor Presentation January, 2015 Crawford & Company 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: The world's largest independent provider of global claims management solutions
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 over 200 of the Fortune 500 Consolidated revenues before r
Slide 4: Executive Management Background
EXECUTIVE MANAGEMENT BACKGROUND Harsha V. Agadi - Interim President and Chief Executive Officer 30 years of experience in leadership positions at both public and private companies, including several Fortune 500 companies Member of the Crawford Board of Directors since 2010 Chairman of GHS Holdings,
Slide 5: Strategic Review
Harsha V. Agadi appointed interim President and CEO in August 2015 Strategic business review undertaken: The market backdrop continues to be challenging Crawford’s brand, competitive positioning and revenue base remain strong Administrative costs have grown significantly pressuring margins Over $45
Slide 6: Drive Improved Profitability and Predictable Results
DRIVE IMPROVED PROFITABILITY AND PREDICTABLE RESULTS Previously announced restructuring plans targeted to provide $22 million in cost savings during 2016 Headcount reduction in the Americas and EMEA / AP Senior management realignment to improve execution GBSC migration and GAB Robins integration Add
Slide 7: 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 8: $47 - $50 Million of Cost Take-Out Targeted
$47 - $50 MILLION OF COST TAKE-OUT TARGETED Restructuring and Special Charges Expected Totals: 2015 ~ $32,000 - $37,0002016 ~ $13,000 $25,300 to $28,300 $47,400 to $50,400
Slide 9: Americas Segment Highlights
U.S. Canada Latin America/ Caribbean Revenues by Geographic Region ($ in millions) Americas Cases Received (In thousands) U.S. Canada Latin America/ Caribbean Operating Results (3Q 2015 v. 3Q 2014) Revenues of $92.0 million versus $92.2 million Exchange rates reduced revenues by 6.3% Operating earni
Slide 10: Contractor Connection
CONTRACTOR CONNECTION A technology-enabled, best-in-class industry leader of contractor managed repair networks for residential and commercial losses. North American network of 4,800 general and specialty contractors 2014 Revenues of $50.5 million versus $36.0 million in 2013 Recognized by J.D. Powe
Slide 11: EMEA/AP Segment Highlights
U.K. Europe U.K. Asia-Pacific Asia-Pacific Europe Revenues by Geographic Region ($ in millions) EMEA/AP Cases Received (In thousands) Operating Results (3Q 2015 v. 3Q 2014) Revenues of $98.3 million versus $86.2 million Exchange rates reduced revenues by 14.5% Operating earnings of $6.7 million vers
Slide 12: Acquisition of GAB Robins
ACQUISITION OF GAB ROBINS Acquisition makes Crawford the UK leader in claims management Purchase price of $74.0 million Revenues before reimbursements for GAB Robins of approximately $109 million in 2014 Increased prominence in the Lloyd’s and London insurance markets Significant increased presence
Slide 13: Broadspire Segment Highlights
Revenues by Service Line ($ in millions) Broadspire Cases Received (In thousands) Risk Mgmt Info. Svcs. Other Medical Mgmt. Casualty Workers' Comp. Workers' Comp. Operating Results (3Q 2015 v. 3Q 2014) Revenues of $74.2 million versus $68.2 million Operating earnings of $7.4 million versus $4.4 mill
Slide 14: Legal Settlement Administration Segment Highlights
Backlog ($ in millions) Operating Results (3Q 2015 v. 3Q 2014) Revenues of $28.8 million versus $47.2 million Operating earnings of $1.1 million versus $7.7 million Operating earnings margin of 4.0% versus 16.2% Backlog at $76 million versus $89 million Legal Settlement Administration Deepwater Hori
Slide 15: Looking to 2016
LOOKING TO 2016 Ø Exhibit cost discipline Ø Be more client centric Deliver customized value propositions to clients Increase the speed of doing business enterprise wide Ø Continue to drive synergies in strategic initiatives
Slide 16: Crawford Is Focused on Shareholder Returns
CRAWFORD IS FOCUSED ON SHAREHOLDER RETURNS Global Footprint World’s Largest Independent Provider of Claims Management Solutions Global BPO Platform Global C atastrophe Response Specialized Resources Global Technical Services (GTS) Medical Cost Containment Contractor Connection Crawford Specialty Mar
Slide 17: Questions & Answers
Questions & Answers
Slide 18: Appendix: Supplementary Financial Schedules
Appendix: Supplementary Financial Schedules
Slide 19: Balance Sheet Highlights
Unaudited ($ in thousands) September 30, 2015 December 31, 2014 Change Cash and cash equivalents $58,329 $52,456 $5,873 Accounts receivable, net 178,571 180,096 (1,525 ) Unbilled revenues, net 112,073 103,163 8,910 Total receivables 290,644 283,259 7,385 Goodwill and intangible assets arising from b
Slide 20: Operating and Free Cash Flow
Unaudited ($ in thousands) 2015 2015 2014 2014 Variance Variance Net Income Attributable to Shareholders of Crawford & Company $ 6,183 $ 27,308 $ (21,125 ) Depreciation and Other Non-Cash Operating Items 34,777 30,105 4,672 Unbilled and Billed Receivables Change 5,586 (51,649 ) 57,235 Working Capita
Slide 21: 2015 Guidance
Crawford & Company guidance as of November 9, 2015 was as follows: YEAR ENDING DECEMBER 31, 2015 Low End High End Consolidated revenues before reimbursements $1.15 $1.17 billion Consolidated operating earnings $60.0 $65.0 million Consolidated cash provided by operating activities $20.0 $30.0 million
Slide 22: Appendix: Non-GAAP Financial Information
Appendix: Non-GAAP Financial Information
Slide 23: Non-GAAP Financial Information
Measurements of financial performance not calculated in accordance with GAAP should be considered as supplements to, and not substitutes for, performance measurements calculated or derived in accordance with GAAP. Any such measures are not necessarily comparable to other similarly-titled measurement
Slide 24: Reconciliation of Non-GAAP Items
Quarter Ended Quarter Ended Quarter Ended Quarter Ended Full Year Full Year September 30, September 30, September 30, September 30, Guidance Guidance Unaudited ($ in thousands) 2015 2015 2014 2014 2015 * 2015 * Revenues Before Reimbursements Total Revenues $ 309,984 $ 314,910 $ 1,240,000 Reimburseme
Slide 25: Reconciliation of Non-GAAP Items: Net Debt
RECONCILIATION OF NON-GAAP ITEMS (cont.) Net Debt September 30, September 30, December 31, December 31, Unaudited ($ in thousands) 2015 2015 2014 2014 Net Debt Short-term borrowings $ 6,566 $ 2,002 Current installments of long-term debt and capital leases 1,808 763 Long-term debt and capital leases,
Slide 26: Reconciliation of Non-GAAP Items: Adjusted Net Income and Diluted EPS
RECONCILIATION OF NON-GAAP ITEMS (cont.) Non-GAAP Adjusted Net Income and Diluted Earnings Per Share Three Months Ended September 30, 2015 Unaudited ($ in thousands) Income Before Taxes Income Before Taxes Tax Expense Tax Expense Net (Loss) Income Net (Loss) Income Net (Loss) Income Attributable to