Crawford & Company · NYSE:CRD.A
Crawford & — Investor Presentation (November 2011)
29 slides from Crawford &'s investor presentation, Nov 18, 2011
Slide 1: Crawford & Company Investor Presentation
Crawford & Company Investor Presentation November 18, 2011 Exhibit 99.1
Slide 2: Forward Looking Statements and Financial Information
Forward Looking Statements and Financial Information 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, both qualitative and quanti
Slide 3: Slide 3
Slide 4: Crawford's Award-Winning Performance
Crawford’s Award-Winning Performance Service Provider of the Year Crawford & Company With an unprecedented level of natural catastrophes across the world in 2010 and 2011, Crawford seized the opportunity to prove its global capabilities and has been recognized as Service Provider of the Year for its
Slide 5: The Crawford System of Claims Solutions
The Crawford System is the most comprehensive global, integrated solution for all corporate, insurer, and re-insurer claims administration . The Crawford System of Claims Solutions SM
Slide 6: Crawford is uniquely positioned for global growth
Crawford is uniquely positioned for global growth
Slide 7: Our Global Strength
Our Global Strength $1 Billion Revenue Company 700 Locations 70+ Countries 8,900 Employees
Slide 8: Americas
Americas • U.S. Property and Casualty • Market leader • Technology innovation • Benefit from U.S. market consolidation • Canada • Strong relationships with top insurers • End to end solutions • Innovation and technology • Latin America & Caribbean • Latin American emerging markets GDP growth on aver
Slide 9: EMEA/AP: United Kingdom
• United Kingdom • EMEA/AP’s largest market • Recruitment of GTS adjusters continues • Strong commercial presence • CEMEA • Expansion of TPA offerings • Claims volume increasing • Opportunity to grow market share • Asia/Pacific • Catastrophe revenues should continue for the balance of this year • Ne
Slide 10: Broadspire
• #3 in U.S. workers’ compensation market • Revenues stabilizing • Fully integrated service model • Improved outcomes by teaming claims and medical management • Superior outcomes measurement • Quantifiable measurements providing insight for continued program improvement • Analytics • Exceptional med
Slide 11: Legal Settlement Administration
• Core services: • GCG Class Action Services provides administrative services to expedite high-volume class action settlements • GCG Bankruptcy Services manages the administration of Chapter 11 bankruptcy cases • GCG Communications specializes in legal notice programs for case administration worldwi
Slide 12: High Profile Specialized Resources
High Profile Specialized Resources: Worldwide Catastrophe Response Global Technical Services (GTS) Contractor Connection Garden City Group (GCG)
Slide 13: Customer response to unprecedented global catastrophes
Crawford’s customer response to the unprecedented number of global catastrophes has been rapid, nimble and innovative Number of events: 355 Earthquake, tsunami Japan, 11 March Earthquake New Zealand, 22 Feb Cyclone Yasi Australia, 2 Feb Landslides, flash floods Brazil, 12-16 Jan Floods, flash floods
Slide 14: Global Technical Services
Global Technical Services • The definitive solution for large, complex claims, providing the highest level of world-class talent and the industry’s largest network to strategically manage large complex losses anywhere on the globe • Combining regional and local adjusting strengths to leverage scale
Slide 15: Contractor Connection – Managed Repair Solutions
Contractor Connection – Managed Repair Solutions • Dominant insurance industry leader • Over 4,000 contractors in the U.S. & Canada • Projected over $1 billion in loss estimates in 2011 • Average 20% revenue growth over the last five years • Partner with 50% of top 25 carriers • Expanding into consu
Slide 16: GCG: Largest securities class action administrator
– Largest securities class action administrator in the country • Deep expertise in mega-case settlements • GCG has been entrusted with more billion dollar+ securities settlements than all competitors combined • No one handled more of the top 100 securities cases than GCG • More than 500 associates i
Slide 17: Financial Review
Financial Review
Slide 18: Crawford Financial Performance
Crawford Financial Performance • Revenue CAGR of 6.3% from 2006 to projected 2011 • Revenue growth driven by strong performance in Legal Settlement Administration, organic growth in EMEA/AP, and acquisitions • Before a net special credit in 2011, CAGR of non-GAAP adjusted net income attributable to
Slide 19: Nine Months 2011 Business Drivers
Nine Months 2011 Business Drivers • Revenues and earnings reflected continued strong performance in Legal Settlement Administration, due to a special project • Americas’ rebound driven by U.S. catastrophe activity • Organic growth in EMEA/AP primarily due to weather-related claims in Australia and t
Slide 20: Third Quarter 2011 Financials
Third Quarter 2011 Financials Income Statement Highlights Nine Months Ended September 30 % Change Revenues $859,718 $728,940 18% Costs of Services 629,292 538,142 17% Selling, General, and Administrative Expenses 166,774 149,530 12% Corporate Interest Expense, Net 12,396 11,732 6% Arbitration Award
Slide 21: Third Quarter 2011 Financials: Balance Sheet Highlights
Third Quarter 2011 Financials Crawford & Company Balance Sheet Highlights Unaudited September 30, December 31, Change Cash and cash equivalents $68,034 $93,540 ($25,506) Accounts receivable, net 179,024 142,521 36,503 Unbilled revenues, net 133,424 122,933 10,491 Total receivables 312,448 265,454 46
Slide 22: 2011 Focus and Outlook
2011 Focus and Outlook
Slide 23: Guidance
Guidance • Full Year 2011 Guidance issued as of November 7, 2011: – Consolidated revenues before reimbursements between $1.10 billion and $1.13 billion – Consolidated operating earnings between $83.0 million and $89.0 million – Consolidated cash provided by operating activities between $30.0 million
Slide 24: Operational Focus
Operational Focus • Bring Broadspire to an acceptable operating level • Significant debt reduction • Continue to grow revenue and operating earnings • Capitalize on global opportunities • Enhance shareholder returns
Slide 25: Crawford & Company
Crawford & Company Investor Presentation November 18, 2011
Slide 26: 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 27: Reconciliation of Non-GAAP Items
Reconciliation of Non-GAAP Items (in $millions except Earnings Per Share Amounts) Revenues Before Reimbursements Total Revenues $ 1,051 $ 1,136 $ 1,048 $ 1,110 $ 1,204 $ Reimbursements (80) (76) (87) (78) (80) (89) Revenues Before Reimbursements $ $ 1,049 $ $ 1,030 $ 1,115 $ (in $000s) 2011 Projecte
Slide 28: Reconciliation of Non-GAAP Items (cont.)
Reconciliation of Non-GAAP Items (cont.) (in $millions) 1Q 2Q 3Q 4Q 1Q 2Q 3Q Revenues Before Reimbursements Total Revenues $ $ $ $ $ $ $ Reimbursements (16) (18) (23) (23) (19) (22) (25) Revenues Before Reimbursements $ $ $ $ $ $ $
Slide 29: Reconciliation of Non-GAAP Items (cont.)
Reconciliation of Non-GAAP Items (cont.) Crawford & Company (in $ 000s) September 30, December 31, Deferred Revenues, Net Deferred revenues, current 50,454 $ 48,198 $ Deferred revenues, noncurrent 28,623 30,048 Total deferred revenues 79,077 78,246 Less: Receivable held in trust included in accounts