Crawford & Company · NYSE:CRD.A
Crawford & — Q3 2018 Earnings Presentation
28 slides from Crawford &'s earnings presentation, Nov 5, 2018
Slide 1: /////////////////////////////////////////////////////////////////////////////////////////////////////////////////////…
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Slide 2: Forward-Looking Statements and Additional Information
FORWARD-LOOKING STATEMENTS AND ADDITIONAL INFORMATION ////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////// • Forward-Looking Statements —This presentation contains forward-looking statem
Slide 3: Crawford and Company at a Glance
CRAWFORD AND COMPANY AT A GLANCE The world’s largest publicly listed independent provider of global claims management solutions Organized across three operating segments: 3018 Revenue: $255.0 Mi 1. P&C Adjusting Solutions « Crawford Claims Solutions 2. TPA Solutions Speciaty Soktions P&C Adjusting ”
Slide 4: Third Quarter 2018 Business Highlights
THIRD QUARTER 2018 BUSINESS HIGHLIGHTS LLL $255.0 million Revenue Before Reimbursements Mission To restore and enhance lives, businesses and a communities $16.5 ition Vision 6.5% To be the leading provider and most trusted Operating Margin* source for expert assistance, serving those who insure and
Slide 5: Delivering on Our Commitments
DELIVERING ON OUR COMMITMENTS TELL LL EEL LLL v Responded to U.S. clients impacted by severe hurricane activity in the Southeast and by wildfires in California ¥ Supported our clients in Asia impacted by catastrophic typhoons, cyclones and earthquakes this quarter v Invested in increased local sales
Slide 6: Continuous Innovation
CONTINUOUS INNOVATION CT ELLE LLL LLL Y Moving our organization to be more data enabled and focused on what matters most to our clients: timeliness, quality, productivity and insight v Industry verticals providing a market leading position where we can demonstrate our expertise and drive value for o
Slide 7: Focus on Execution
FOCUS ON EXECUTION Lee v Investments are clearly delivering revenue growth while positioning Crawford for future success Y Carefully managing the business for gross profit growth and margin expansion v Achieved strong flow through on our $30 million in pro forma revenue growth, excluding the GCG bus
Slide 8: Third Quarter 2018 Financial Review
THIRD QUARTER 2018 ////////////////////////////////////////////////////////////////////////// Financial Review
Slide 9: Third Quarter Financial Summary
THIRD QUARTER FINANCIAL SUMMARY ////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////// Quarter Ended September 30, September 30, ($ in millions, except per share amounts) 2018 2017 % Chang
Slide 10: Crawford Claims Solutions Segment Highlights
CRAWFORD CLAIMS SOLUTIONS SEGMENT HIGHLIGHTS ////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////// Operating Results (3Q 2018 v. 3Q 2017) • Revenues of $85.3 million versus $86.3 million
Slide 11: Crawford TPA Solutions: Broadspire Segment Highlights
CRAWFORD TPA SOLUTIONS: BROADSPIRE SEGMENT HIGHLIGHTS ////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////// Operating Results (3Q 2018 v. 3Q 2017) Three months ended • Revenues of $100.3
Slide 12: Crawford Specialty Solutions Segment Highlights
CRAWFORD SPECIALTY SOLUTIONS SEGMENT HIGHLIGHTS ////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////// Three months ended Operating Results (3Q 2018 v. 3Q 2017) (in thousands, except Septe
Slide 13: Balance Sheet Highlights
BALANCE SHEET HIGHLIGHTS ////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////// September 30, December 31, Unaudited ($ in thousands) 2018 2017 Change Cash and cash equivalents $ 53,339 $
Slide 14: Operating and Free Cash Flow
OPERATING AND FREE CASH FLOW ////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////// For the nine months ended September 30, Unaudited ($ in thousands) 2018 2017 Variance Net Income Attribu
Slide 15: Quarterly Operating and Free Cash Flow
QUARTERLY OPERATING AND FREE CASH FLOW ////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////// Unaudited ($ in thousands) Three Months Three Months Three Months Nine Months Ended Ended Ende
Slide 16: 2018 Share Repurchases
2018 SHARE REPURCHASES ////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////// • During the three months ended September 30, 2018, the Company repurchased 43,190 shares of CRD-A and 10,867
Slide 17: 2018 Guidance
2018 GUIDANCE ////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////// Crawford & Company is reaffirming its guidance for 2018 as follows: YEAR ENDING DECEMBER 31, 2018 Low End High End Cons
Slide 18: Conclusion
CONCLUSION ////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////// Crawford & Company's six primary objectives for 2018: ▪ Increasing the velocity of our revenue growth ▪ Launching innovati
Slide 19: Third Quarter 2018 Appendix
THIRD QUARTER 2018 ////////////////////////////////////////////////////////////////////////// Appendix
Slide 20: Appendix: Non-GAAP Financial Information
APPENDIX: NON-GAAP FINANCIAL INFORMATION ////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////// Measurements of financial performance not calculated in accordance with GAAP should be consi
Slide 21: Appendix: Non-GAAP Financial Information (continued)
APPENDIX: NON-GAAP FINANCIAL INFORMATION (continued) ////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////// Segment and Consolidated Gross Profit Gross profit is defined as revenues less d
Slide 22: Reconciliation of Non-GAAP Items
RECONCILIATION OF NON-GAAP ITEMS ////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////// Revenues, Costs of Services Provided, and Operating Earnings Quarter Ended Quarter Ended Full Year S
Slide 23: Reconciliation of Non-GAAP Items (continued)
RECONCILIATION OF NON-GAAP ITEMS (continued) ////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////// Adjusted EBITDA Quarter Ended Full Year September 30, September 30, Guidance Unaudited (
Slide 24: Reconciliation of Non-GAAP Items (continued)
RECONCILIATION OF NON-GAAP ITEMS (continued) ////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////// Net Debt September 30, December 31, Unaudited ($ in thousands) 2018 2017 Net Debt Short-
Slide 25: Reconciliation of Non-GAAP Items (continued)
RECONCILIATION OF NON-GAAP ITEMS (continued) ////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////// Segment Gross Profit Three months ended Nine months ended September 30, September 30, Se
Slide 26: Non-GAAP Results Excluding GCG Business
NON-GAAP RESULTS EXCLUDING GCG BUSINESS ////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////// Three Months Ended September 30, 2018 Direct Indirect Operating Unaudited ($ in thousands) Re
Slide 27: Non-GAAP Results Excluding GCG Business
NON-GAAP RESULTS EXCLUDING GCG BUSINESS ////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////// Three Months Ended September 30, 2018 Net Income Non-GAAP Attributable Diluted Diluted Operat
Slide 28: Non-GAAP Results Excluding GCG Business
NON-GAAP RESULTS EXCLUDING GCG BUSINESS ////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////// Three Months Ended September 30, 2017 Net Income Non-GAAP Attributable to Diluted Diluted Ope