Crawford & Company · NYSE:CRD.A
Crawford & — Q1 2021 Earnings Presentation
31 slides from Crawford &'s earnings presentation, May 5, 2021
Slide 1: First Quarter 2021 Earnings Conference Call
Crawford & Company First Quarter 2021 Earnings Conference Call CRD-A & CRD-B (NYSE)
Slide 2: Forward-Looking Statements and Additional Information
Introduction | External Factors | Segment Highlights | New Business Momentum | Disciplined Capital Allocation | Our Workforce | Financial Results | Conclusion Forward-Looking Statements and Additional Information Forward-Looking Statements This presentation contains forward-looking statements, inclu
Slide 3: At a Glance
$18 BILLION+ Claims managed annually AT A GLANCE Crawford & Company The world’s largest publicly listed independent provider of global claims management solutions 1.6 MILLION Claims handled 9,000 Total employees Introduction | External Factors | Segment Highlights | New Business Momentum | Disciplin
Slide 4: Financial Highlights First Quarter 2021
(1) See appendix for non-GAAP explanation and reconciliation of non-GAAP measures Financial Highlights First Quarter 2021 GAAP NON-GAAP¹ KEY METRICS¹ $253.2 MILLION Revenues before reimbursements $6.1 MILLION Net income $0.15 EPS $76.5 MILLION Net debt $22.2 MILLION Adjusted EBITDA 8.8% EBITDA margi
Slide 5: Weather Indicators
Weather Indicators Introduction | External Factors | Segment Highlights | New Business Momentum | Disciplined Capital Allocation | Our Workforce | Financial Results | Conclusion Source: Aon Global Catastrophic Recap. Note: Insured losses assumed to be 75% of the total economic losses compared to pri
Slide 6: Economic Indicators
Economic Indicators Introduction | External Factors | Segment Highlights | New Business Momentum | Disciplined Capital Allocation | Our Workforce | Financial Results | Conclusion Notes: Miles driven, Housing starts, permits and Retail sales displayed are monthly averages for the quarter, Q1 Miles dr
Slide 7: Evolving Crawford's Strategy for Long-Term Growth
Evolving Crawford's Strategy for Long-Term Growth Introduction | External Factors | Segment Highlights | New Business Momentum | Disciplined Capital Allocation | Our Workforce | Financial Results | Conclusion Strategic evolution to reimagine claims ecosystem
Slide 8: Our Strategic Pillars
Evolving Crawford's Strategy for Long-Term Growth Introduction | External Factors | Segment Highlights | New Business Momentum | Disciplined Capital Allocation | Our Workforce | Financial Results | Conclusion Expertise that is deep and eminent Quality that sets the industry benchmark Digital that si
Slide 9: Impact Across Our Global Service Lines
9 Impact Across Our Global Service Lines (GSLs) Introduction | External Factors | Segment Highlights | New Business Momentum | Disciplined Capital Allocation | Our Workforce | Financial Results | Conclusion First Quarter Performance Revenue $98.2M Operating Earnings $4.7M Achieved 5% revenue growth
Slide 10: Customer Excellence
10 Customer Excellence Introduction | External Factors | Segment Highlights | New Business Momentum | Disciplined Capital Allocation | Our Workforce | Financial Results | Conclusion Maintained and exceeded pre-pandemic client service delivery levels Client responses² (1) Estimated new and enhanced r
Slide 11: Our Capital Allocation Strategy
Proactively manage capital allocation across the business and adapt to reflect the new economic reality Strong financial position and liquidity Continuing share repurchase program as a component of our capital allocation strategy Our Capital Allocation Strategy Introduction | External Factors | Segm
Slide 12: Supporting Our Global Workforce
Introduction | External Factors | Segment Highlights | New Business Momentum | Disciplined Capital Allocation | Our Workforce | Financial Results | Conclusion Supporting Our Global Workforce Prioritizing the Safety and Well-Being of our Workforce Formed a global incident response team and modified s
Slide 13: First Quarter 2021 Financial Summary
(1) See appendix for non-GAAP explanation and reconciliation of non-GAAP measures. 13 First Quarter 2021 Financial Summary Introduction | External Factors | Segment Highlights | New Business Momentum | Disciplined Capital Allocation | Our Workforce | Financial Results | Conclusion
Slide 14: Crawford Loss Adjusting
Highlights Achieved 5% revenue growth and margin expansion Storm activity drove additional revenue in US and Australia Made over 50 strategic hires over the last six months to further build upon our loss adjusting expertise Won over $5 million in new business during the quarter Operating Results (1Q
Slide 15: Crawford Platform Solutions
15 Highlights Attained 31% revenue growth Solid performance driven by large US clients Further bolstered by ramp up of top five P&C carriers Strong momentum in WeGoLook Launched Crawford Inspection Services Operating Results (1Q 2021 v. 1Q 2020) Revenues of $42.4 million versus $32.4 million Constan
Slide 16: Crawford TPA Solutions
Highlights Stable year over year revenue COVID-related claims provided a minor temporary tailwind Canada, UK and Europe are still adversely impacted by lockdowns Seeing signs of recovery in US as unemployment declines and business activity improves Operating Results (1Q 2021 v. 1Q 2020) Revenues of
Slide 17: Additional Financial Matters
Additional Financial Matters Introduction | External Factors | Segment Highlights | New Business Momentum | Disciplined Capital Allocation | Our Workforce | Financial Results | Conclusion
Slide 18: Balance Sheet Highlights
(1) See Appendix for non-GAAP explanation and reconciliation 18 Balance Sheet Highlights Introduction | External Factors | Segment Highlights | New Business Momentum | Disciplined Capital Allocation | Our Workforce | Financial Results | Conclusion
Slide 19: Net Debt and Pension Liability
19 Net Debt and Pension Liability Introduction | External Factors | Segment Highlights | New Business Momentum | Disciplined Capital Allocation | Our Workforce | Financial Results | Conclusion $76.5 million $51.4 million Net debt at $76.5 million Pension liability at $51.4 million $171.2 million $12
Slide 20: Operating and Free Cash Flow
(1) See Appendix for non-GAAP explanation and reconciliation 20 For the year to date periods ended March 31, Operating And Free Cash Flow Introduction | External Factors | Segment Highlights | New Business Momentum | Disciplined Capital Allocation | Our Workforce | Financial Results | Conclusion
Slide 21: 2021 Priorities
21 Employee Health & Safety Protect our workforce first and foremost Customer Excellence Provide best-in-class service to our clients regardless of the global environment Brands, Relationships & Differentiation Strengthen industry leadership through our innovations and market leading solutions Futur
Slide 22: Crawford & Company
Crawford & Company The world’s largest publicly listed independent provider of global claims management and outsourcing solutions.
Slide 23: Appendix: Non-GAAP Financial Information
Appendix: Non-GAAP Financial Information 23
Slide 24: 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 25: Appendix: Non-GAAP Financial Information (cont.)
Appendix: Non-GAAP Financial Information (cont.) Segment and Consolidated Gross Profit Gross profit is defined as revenues less direct expenses which exclude indirect overhead expenses allocated to the business. Indirect expenses consist of centralized administrative support costs, regional and loca
Slide 26: Total Revenues Before Reimbursements by Major Currency
Total Revenues Before Reimbursements by Major Currency The following table illustrates revenue as a percentage of total revenue in the major currencies of the geographic areas in which Crawford does business:
Slide 27: Reconciliation of Non-GAAP Items
Reconciliation of Non-GAAP Items Revenues, Costs of Services Provided, and Operating Earnings
Slide 28: Reconciliation of Non-GAAP Items: Adjusted EBITDA
Reconciliation of Non-GAAP Items (cont.) Adjusted EBITDA
Slide 29: Reconciliation of Non-GAAP Items: Net Debt
Reconciliation of Non-GAAP Items (cont.) Net Debt
Slide 30: Reconciliation of Non-GAAP Items: Segment Gross Profit
Reconciliation of Non-GAAP Items (cont.) Segment Gross Profit
Slide 31: Reconciliation of First Quarter Non-GAAP Results
Reconciliation of First Quarter Non-GAAP Results