Crawford & Company · NYSE:CRD.A
Crawford & — SunTrust Robinson Humphrey Investor Conference 2011
33 slides from Crawford &'s conference presentation, May 24, 2011
Slide 1: SunTrust Robinson Humphrey Investor Conference May 24-25, 2011
SunTrust Robinson Humphrey Investor Conference May 24 - 25, 2011
Slide 2: Forward-looking Statements and Segment Operating Earnings
2 Forward-looking Statements and Segment Operating Earnings Forward Looking Statements and Interim Results: This presentation contains forward-looking statements, including statements about the future financial condition, results of operations and earnings outlook of Crawford & Company. Statements,
Slide 3: i, Oe
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Slide 4: Market-Leading Global Businesses
4 Market-Leading Global Businesses The world's largest fully-integrated independent provider of global claims management solutions. EMEA-A/P Americas Broadspire Legal Settlement Administration Serves the U.K., European, Middle Eastern, African and Asia Pacific markets Serves the U.S., Canadian and L
Slide 5: Our Global Strength
5 Our Global Strength $1 Billion Revenue Company 700 Locations 70+ Countries 8,700 Employees 8,700 Employees
Slide 6: Diversified Business and Clients
Diversified Business and Clients Legal Settlement Administration Broadspire EMEA/AP Americas Revenue 0.159 0.238 0.277 0.325 Fiscal 2010 Revenues of $1.030 Billion EMEA/AP Property and Casualty Services Global Technical Services Global Marine and Transportation Global Markets 27.7% 23.8% 15.9% Ameri
Slide 7: The Crawford System of Claims Solutions
The Crawford System of Claims SolutionsSM The Crawford System is the most comprehensive global, integrated solution for all corporate, insurer, and re-insurer claims administration. 7
Slide 8: Financial Review
Financial Review 8
Slide 9: Crawford Financial Performance
Crawford Financial Performance 2006 2007 2008 2009 2010 2011P* Consolidated Revenues 819.5 975.1 1049 970 1030 1055 $ in millions 2006 2007 2008 2009 2010 2011P* Net Income Attributable to Shareholders of Crawford and Company before Impairment Charge 15.011 16.116 32.259 25.2 38.2 36 $ in millions 1
Slide 10: First Quarter 2011 Business Summary
First Quarter 2011 Business Summary 2010 positive business trends continue into 2011 Revenue and earnings reflected strong performance in Legal Settlement Administration Continued organic growth in EMEA/AP driven by weather-related claims in Australia and the U.K. Group claims increased 10.5% over t
Slide 11: First Quarter 2011 Financials
11 First Quarter 2011 Financials
Slide 12: First Quarter 2011 Business Drivers
First Quarter 2011 Business Drivers Consolidated case growth of 10.5% over 2010 first quarter U.S. weather events are driving increased claims activity in 2011 Severe weather - February to April 2011 Special project in Legal Settlement Administration is significant contributor EMEA/AP catastrophic e
Slide 13: First Quarter 2011 Financials
13 First Quarter 2011 Financials
Slide 14: Operational Review
Operational Review 14
Slide 15: First Quarter 2011 Financials - Americas
1Q 2011 1Q 2010 Revenue 85.3 84.9 1Q 2011 1Q 2010 Operating Earnings 3.114 6.849 $ in millions $ in millions $84.9 $85.3 $6.8 $3.1 Positive revenue exchange rate impact of $2.3 million Operating earnings were negatively impacted by weakness in our U.S. and Latin America businesses First Quarter 2011
Slide 16: Americas
Americas U.S. Prop & Cas Canada Lat.Am. & Car. 1Q 2011 108.72 30.288 14.567 1Q 2010 114.122 25.342 18.011 Americas Claims Referred (in 000s) U.S. Property and Casualty Claims accelerated with recent weather events Continued expansion of Global Technical Services Growth in Contractor Connection with
Slide 17: Americas Competitive Advantages
17 Americas Competitive Advantages National presence Greater scale, stewardship programs and resources to penetrate a larger national account market share Fully integrated services that deliver more effective program administration Crawford Central for centralized administration while leveraging the
Slide 18: First Quarter 2011 Financials - EMEA/AP
1Q 2011 1Q 2010 Revenue 79.775 68.776 Revenue at 2008 FX rates 1.223 1Q 2011 1Q 2010 Operating Earnings 7.152 4.813 Operating Earnings at 2008 FX rates 1 $ in millions $ in millions First Quarter 2011 Financials - EMEA/AP $79.8 $68.8 $4.8 Revenue grew 16% quarter over quarter primarily due to weathe
Slide 19: EMEA/AP
EMEA/AP U.K. CEMEA Asia/Pacific 1Q 2011 55.883 41.495 40.183 1Q 2010 46.877 37.77 26.069 EMEA/AP Claims Referred (in 000s) Grow revenue and market share New client acquisition continues Expansion of TPA offerings in CEMEA Recruitment of GTS adjusters continues U.K. Surge event in U.K. - small homeow
Slide 20: EMEA/AP Competitive Advantages
20 EMEA/AP Competitive Advantages Global footprint Gateway for multinational corporations, global insurers and brokers to access global services, skills and technology Acknowledged global market leader responding to increasing trends around catastrophic events, e.g. earthquakes, hurricanes, flooding
Slide 21: First Quarter 2011 Financials - Broadspire
1Q 2011 1Q 2010 Revenue 59.796 61.963 1Q 2011 1Q 2010 Operating Loss -3.16 -2.333 $ in millions $ in millions $59.8 $62.0 ($3.2) $(2.3) Revenue gains from casualty claim increases were more than offset by lower workers compensation revenue Cost control initiatives continue First Quarter 2011 Financi
Slide 22: Broadspire
Broadspire Worker's Comp. Casualty Other 1Q 2011 32.131 22.018 5.174 1Q 2010 32.169 14.544 4.304 Claims referred (in 000s) Claims volume improved over Q1 2010 Broadspire's fully-integrated offering continues to resonate in the market Robust pipeline and new client wins are encouraging Cost managemen
Slide 23: Broadspire Competitive Advantages
23 Broadspire Competitive Advantages Fully integrated service model Improved outcomes by teaming claims and medical management Flexibility Ability to work closely with clients to design programs that meet specific needs and requirements Staff knowledge and expertise Flawless program transition, cons
Slide 24: First Quarter 2011 Financials - Legal Settlement Administration
24 1Q 2011 1Q 2010 Revenue 60.15 20.658 1Q 2011 1Q 2010 Operating Earnings 16.998 3.238 $ in millions $ in millions $60.2 $20.7 $3.3 $17.0 Revenue and operating earnings increase reflects benefit of significant special project Backlog of $110.0 million at March 31, 2011 versus $50.7 million at March
Slide 25: Legal Settlement Administration
Legal Settlement Administration 1Q 2011 1Q 2010 Backlog 110 50.7 Backlog ($ in millions) 110.0 50.7 Second best quarter in GCG history Special project expected to drive revenue and operating earnings through 2011 Core business continues to perform well Backlog at $110 million 25
Slide 26: Legal Settlement Administration Products and Services
Legal Settlement Administration Products and Services The Garden City Group, Inc. (GCG) provides these core services: GCG Class Action Services provides technology-intensive administrative services for plaintiff and defense counsel and corporate defendants to expedite high-volume class action settle
Slide 27: 2011 Operational Focus
2011 Operational Focus Key account management/cross-selling through the Crawford System of Claims Solutions Grow Business Process Outsourcing Further expansion of Global Technical Services (GTS) and Contractor Connection Expansion of TPA offerings growing internationally Improve margins through cost
Slide 28: 2011 Guidance Reaffirmed
2011 Guidance Reaffirmed Full Year 2011 guidance reaffirmed as of May 24, 2011: Consolidated revenues before reimbursements between $1.04 billion and $1.07 billion Consolidated operating earnings between $74.0 million and $82.0 million Consolidated cash provided by operating activities between $30.0
Slide 29: Crawford is Positioned for Growth
Crawford is "Positioned for Growth" Access to growing global markets Increasing market share both domestic and internationally Crawford expects to benefit from global consolidation of TPA vendors Diverse customer base High customer retention rates Emphasis on quality and value provided sustains clie
Slide 30: Appendix: Non-GAAP Financial Information
Appendix: 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 compara
Slide 31: Reconciliation of Non-GAAP Items
Reconciliation of Non-GAAP Items 31
Slide 32: Reconciliation of Non-GAAP Items (cont.)
Reconciliation of Non-GAAP Items (cont.) 32
Slide 33: SunTrust Robinson Humphrey Investor Conference May 24-25, 2011
SunTrust Robinson Humphrey Investor Conference May 24 - 25, 2011
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