Crawford & Company · NYSE:CRD.A
Crawford & — Q1 2008 Earnings Presentation
17 slides from Crawford &'s earnings presentation, May 5, 2008
Slide 1: First Quarter 2008 Earnings Conference Call
Exhibit 99.2 First Quarter 2008 Earnings Conference Call Monday, May 5, 2008 the STRENGTH of WORKING TOGETHER SM
Slide 2: First Quarter Earnings Review
First Quarter Earnings Review May 5, 2008 • Founded in 1941, Crawford is the largest independent global provider of claims management solutions and a fully integrated global provider for the growing multi-national market. • Crawford is divided into four reporting segments that support the strategic
Slide 3: Forward-looking Statements and Segment Operating Earnings
Forward-looking Statements and Segment Operating Earnings Forward Looking Statements: Some of the matters discussed in this presentation include forward-looking statements that involve risks and uncertainties. The Company’s actual results achieved in future quarters may differ materially from result
Slide 4: "The Strength of Working Together"
“The Strength of Working Together” “The Strength of Working Together” is unifying the Company around consistent goals: Adaptive leadership team responding to economic conditions Increasing emphasis on sources of additional revenue growth – Cross selling Crawford services into the existing client bas
Slide 5: First Quarter 2008 Overview
First Quarter 2008 Overview • Strong performance in a difficult operating environment $ in millions Revenue growth of 4.9% supported by cost reduction 120 initiatives Net Income up 174% 100 80 $255.5 • Strong revenue growth internationally offset declines 60 $243.6 in U.S. businesses 40 Internationa
Slide 6: First Quarter 2008 Highlights
First Quarter 2008 Highlights • Broadspire Claims referred in 000s Revenue decline of 5.0% 76 Positive operating earnings of $1.7 million in 74 2008 72 75.4 70 Claims frequency down 5.7% in worker’s compensation 68 69.1 66 Increased cross selling, new RFP activity, 1Q 2008 1Q 2007 Expanding BPO oper
Slide 7: First Quarter 2008 Highlights
First Quarter 2008 Highlights • International Claims referred in 000s 160 Strong global revenue growth of 27.1% 158 Operating margin increased to 8.4% in 2008 156 from 4.7% in 2007 154 159.0 Operating earnings increased 127% 152 153.8 Strength in Canada, UK and Asia Pacific 150 1Q 2008 1Q 2007 Claim
Slide 8: Updating 2008 Outlook
Updating 2008 Outlook • Consolidated revenue before reimbursements between $990 million and $1.02 billion • Consolidated operating earnings between $56.0 million and $61.6 million • After reflecting stock-based compensation expense, net corporate interest expense, amortization of customer- relations
Slide 9: Financial Review
First Quarter 2008 Financial Review the STRENGTH of WORKING TOGETHER SM
Slide 10: First Quarter 2008 Financials
First Quarter 2008 Financials CRAWFORD & COMPANY CONDENSED CONSOLIDATED STATEMENTS OF INCOME Unaudited (In Thousands, Except Per Share Amounts) Quarter Ended March 31 2008 2007 % Change Revenues: Revenues Before Reimbursements $255,512 $243,608 5% Reimbursements 19,161 19,416 -1% Total Revenues 274,
Slide 11: U.S. Property & Casualty Summary Results
First Quarter 2008 Financials U.S. Property & Casualty Summary Results $ in millions For the quarter ended March 31, 2008 and 2007 60 in Thousands Except Percentages 50 Unaudited 40 $49.5 $51.0 2008 2007 % Change 30 Revenues $ 49,510 $ 50,996 -2.9% 20 10 Total Operating Expenses 43,561 47,620 -8.5%
Slide 12: International Summary Results
First Quarter 2008 Financials International Summary Results 120 $ in millions For the quarter ended March 31, 2008 and 2007 100 in Thousands Except Percentages $106.7 Unaudited 80 $83.9 2008 2007 % Change 60 40 Revenues $ 106,710 $ 83,940 27.1% 20 Total Operating Expenses 97,723 79,976 22.2% 0 1Q 20
Slide 13: Broadspire Summary Results
First Quarter 2008 Financials Broadspire Summary Results $ in millions For the quarter ended March 31, 2008 and 2007 100 in Thousands Except Percentages Unaudited 80 2008 2007 % Change $84.5 60 $80.3 Revenues $ 80,313 $ 84,520 -5.0% 40 20 Total Operating Expenses 78,566 85,201 -7.8% 0 1Q 2008 1Q 200
Slide 14: Legal Settlement Administration Summary Results
First Quarter 2008 Financials Legal Settlement Administration Summary Results 25 $ in millions For the quarter ended March 31, 2008 and 2007 in Thousands Except Percentages 20 $24.2 Unaudited 15 $19.0 2008 2007 % Change 10 Revenues $ 18,979 $ 24,152 -21.4% 5 0 Total Operating Expenses 16,482 21,516
Slide 15: Consolidated Balance Sheet Highlights
First Quarter 2008 Financials Crawford & Company Consolidated Balance Sheet Highlights As of March 31, 2008 and December 31, 2007 (in thousands) Unaudited March 31, December 31, 2008 2007* Change Cash and cash equivalents $42,841 $50,855 ($8,014) Accounts receivable, net 191,078 178,528 12,550 Work
Slide 16: Free Cash Flow
First Quarter 2008 Financials Crawford & Company Free Cash Flow For the year-to-date period ended March 31, 2008 and 2007 Unaudited (In Thousands) March 31, March 31, 2008 2007 Operating Cash Flow (Use) ($4,137) ($32,225) Less: Capital Expenditures (2,211) (3,293) Less: Capitalized Software (4,384)
Slide 17: WORKING TOGETHER
the STRENGTH of WORKING TOGETHER SM