Crawford & Company · NYSE:CRD.A
Crawford & — Q1 2009 Earnings Presentation
22 slides from Crawford &'s earnings presentation, May 4, 2009
Slide 1: First Quarter 2009 Earnings Conference Call
Exhibit 99.2 First Quarter 2009 Earnings Conference Call Monday, May 4, 2009 WORKING TOGETHER: theCrawfordDifference
Slide 2: First Quarter Earnings Review
First Quarter Earnings Review May 4, 2009 • Founded in 1941, Crawford is the largest independent global provider of claims management solutions and a fully integrated global provider of these solutions for the growing multi-national market. • Crawford is divided into four reporting segments that sup
Slide 3: Forward-looking Statements and Segment Operating Earnings
Forward-looking Statements and Segment Operating Earnings 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 qualitat
Slide 4: Agenda
Agenda • Welcome • Overview of 2009 First Quarter • First Quarter Financial Review • Segment Operating Highlights • Outlook for Fiscal 2009 4 WORKING TOGETHER: theCrawford Difference
Slide 5: First Quarter Overview
First Quarter Overview $ in millions • Overview of Global Insurance Industry 260 • Encouraging performance in a difficult 250 operating environment 240 $255.5 230 First quarter revenue decline of 7.6% 220 $236.1 Strong U.S. dollar affects revenues by $23.4 210 million 200 Net income attributable to
Slide 6: Revenue and Earnings Per Share Bridge 1st Quarter 2008 to 09
Revenue and Earnings Per Share Bridge 1st Quarter 2008 to 2009 Net Income attributable Revenues before to Crawford Diluted In millions, except per share amounts Reimbursements & Company EPS 1st quarter 2008 results $255.5 $9.1 $0.18 (Less)/Add: Foreign currency impact in 2009 (23.4) (1.4) (0.03) Inc
Slide 7: Financial Review
First Quarter 2009 Financial Review WORKING TOGETHER: theCrawfordDifference
Slide 8: First Quarter 2009 Financials
First Quarter 2009 Financials CRAWFORD & COMPANY CONDENSED CONSOLIDATED STATEMENTS OF INCOME Unaudited (In Thousands, Except Earnings Per Share Amounts and Percentages) Quarter Ended March 31 2009 2008 % Change Revenues: Revenues Before Reimbursements $236,083 $255,512 -8% Reimbursements 14,200 19,1
Slide 9: Summary Results, International Operations
First Quarter 2009 Financials $ in millions 110 Summary Results, International Operations For the quarters ended March 31, 2009 and 2008 100 in thousands except percentages 90 Unaudited $106.7 2009 2008 % Change 80 $90.9 70 Revenues $ 90,872 $ 106,710 -14.8% 60 Total Operating Expenses 83,407 97,723
Slide 10: Summary Results, U.S. Property & Casualty
First Quarter 2009 Financials $ in millions Summary Results, U.S. Property & Casualty 60 For the quarters ended March 31, 2009 and 2008 50 in thousands except percentages 40 $55.1 Unaudited $49.5 30 2009 2008 % Change 20 Revenues $ 55,052 $ 49,510 11.2% 10 0 Total Operating Expenses 48,882 43,561 12
Slide 11: Summary Results, Broadspire
First Quarter 2009 Financials $ in millions Summary Results, Broadspire 90 For the quarters ended March 31, 2009 and 2008 80 in thousands except percentages 70 Unaudited $80.3 $74.6 2009 2008 % Change 60 50 Revenues $ 74,601 $ 80,313 -7.1% 40 1Q 2009 1Q 2008 Total Operating Expenses 76,555 78,566 -2
Slide 12: Summary Results, Legal Settlement Administration
First Quarter 2009 Financials $ in millions Summary Results, Legal Settlement Administration 20.0 For the quarters ended March 31, 2009 and 2008 18.0 in thousands except percentages $19.0 16.0 Unaudited 14.0 2009 2008 % Change $15.6 12.0 Revenues $ 15,558 $ 18,979 -18.0% 10.0 1Q 2009 1Q 2008 Total O
Slide 13: Balance Sheet Highlights
First Quarter 2009 Financials Crawford & Company Balance Sheet Highlights As of March 31, 2009 and December 31, 2008 (in thousands) March 31, December 31, 2009 2008 Change Cash and cash equivalents $42,526 $73,124 ($30,598) Accounts receivable, net 148,471 157,430 (8,959) Work in process 94,449 99,1
Slide 14: Free Cash Flow (non-GAAP)
First Quarter 2009 Financials Crawford & Company Free Cash Flow (non-GAAP) For the year-to-date period ended March 31, 2009 and 2008 (In Thousands) March 31, March 31, 2009 2008 Variance Net Income Attributable to Crawford & Company $3,082 $9,068 ($5,986) Plus: Depreciation / Non-Cash Items 9,492 8,
Slide 15: Segment Highlights
First Quarter 2009 Segment Highlights WORKING TOGETHER: theCrawfordDifference
Slide 16: International Operations
First Quarter 2009 Financials International Operations Claims referred in 000s Global revenue growth of 7% before 170 currency impacts 1st quarter operating margin 160 decreased slightly to 8.2% in 2009 150 from 8.4% in 2008 154.5 140 Claims referred decreased 2.8% due 150.3 to lower 2009 CAT claims
Slide 17: U.S. Property & Casualty
First Quarter 2009 Financials U.S. Property & Casualty Claims referred in 000s Revenue growth of 11.2% Operating margin sustained double 125 digits at 11.2% 115 Catastrophe revenue up to $4.9 million 105 from $1.9 million 115.3 108.2 95 Technology-driven efficiencies realized 85 Claims referred incr
Slide 18: U.S. Catastrophe (CAT) Activity
U.S. Catastrophe (CAT) Activity Quarter Ended March 31: Revenues U.S. Catastrophe $ in millions 2009 reflects benefit from severe 5 first quarter weather 4 $4.9 Strong incremental margins 3 generated from CAT adjuster 2 revenues 1 $1.9 Technology and process 0 improvements 1Q 2009 1Q 2008 Cases In 0
Slide 19: Broadspire Highlights
First Quarter 2009 Highlights Broadspire Workers’ Compensation market remains Claims referred in 000s challenging due to rising U.S. 70 unemployment levels 65 Revenue decrease of 7.1% on 19.8% 60 decline in claims 69.1 55 Operating loss of $2.0 million in the 2009 1st quarter 50 55.4 Cost control pr
Slide 20: Legal Settlement Administration Highlights
First Quarter 2009 Highlights Backlog in millions Legal Settlement Administration Continued slowdown in security class 55 actions 50 45 Increase in bankruptcy related $50.5 40 revenues 35 $39.0 Revenue declined 18% due to 30 slowdown in class action settlements 25 Backlog of $39 million 20 1Q 2009 1
Slide 21: 2009 Guidance
2009 Guidance • Reaffirming Full Year 2009 Guidance: – Consolidated revenue before reimbursements between $960 million and $980 million – Consolidated operating earnings between $50.5 million and $55.8 million – After reflecting stock-based compensation expense, net corporate interest expense, custo
Slide 22: Earnings Conference Call
First Quarter 2009 Earnings Conference Call Monday, May 4, 2009 WORKING TOGETHER: theCrawfordDifference