Crawford & Company · NYSE:CRD.A
Crawford & — Q1 2017 Earnings Presentation
24 slides from Crawford &'s earnings presentation, May 8, 2017
Slide 1: First Quarter 2017 Earnings Conference Call
May 8, 2017 First Quarter 2017 Earnings Conference Call
Slide 2: Forward-Looking Statements
////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////// 2 • Forward-Looking Statements —This presentation contains forward-looking statements, including statements about the expected future
Slide 3: Global Business Services Leader
////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////// 3 GLOBAL BUSINESS SERVICES LEADER • The world's largest publicly listed independent provider of global claims management solutions •
Slide 4: Today's Agenda
////////////////////////////////////////////////////////////////////////// TODAY'S AGENDA --- Welcome and Opening Comments --- First Quarter 2017 Financial Review --- 2017 Guidance and Strategic Initiatives
Slide 5: First Quarter 2017 Business Summary
5 /////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////// FIRST QUARTER 2017 BUSINESS SUMMARY (1) See Appendix for non-GAAP explanation and reconciliation Quarter Ended March 31, March 31, ($ in millions, exc
Slide 6: First Quarter 2017 Business Highlights
6 /////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////// FIRST QUARTER 2017 BUSINESS HIGHLIGHTS • First quarter results were below expectations given the challenges in our Garden City Group segment • Expense
Slide 7: First Quarter 2017 Financial Review
////////////////////////////////////////////////////////////////////////// FIRST QUARTER 2017 Financial Review
Slide 8: Consolidated Income Statement
8 /////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////// Unaudited ($ in thousands, except per share amounts) Three Months Ended March 31, 2017 2016 % Change Revenues Before Reimbursements $ 267,267 $ 277,23
Slide 9: U.S. Services Segment Highlights
////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////// 9 Revenues by Service Line ($ in millions) Cases Received by Service Line (In thousands) Operating Results (1Q 2017 v. 1Q 2016) • Rev
Slide 10: International Segment Highlights
////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////// 10 Revenues by Geographic Region ($ in millions) Operating Results (1Q 2017 v. 1Q 2016) • Revenues of $110.6 million versus $117.5 mi
Slide 11: Broadspire Segment Highlights
////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////// 11 Revenues by Service Line ($ in millions) Broadspire Cases Received (In thousands) Operating Results (1Q 2017 v. 1Q 2016) • Revenue
Slide 12: Garden City Group Segment Highlights
////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////// 12 Backlog ($ in millions) Operating Results (1Q 2017 v. 1Q 2016) • Revenues of $19.2 million versus $25.0 million • Operating (loss)
Slide 13: Balance Sheet Highlights
13 /////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////// Unaudited ($ in thousands) March 31, 2017 December 31, 2016 Change Cash and cash equivalents $ 68,797 $ 81,569 $ (12,772 ) Accounts receivable, net 1
Slide 14: Operating and Free Cash Flow
14 /////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////// Unaudited ($ in thousands) 2017 2016 Variance Net Income Attributable to Shareholders of Crawford & Company $ 7,664 $ 8,630 $ (966 ) Depreciation and
Slide 15: 2017 Guidance
15 /////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////// Crawford & Company is reaffirming its guidance for 2017 as follows: YEAR ENDING DECEMBER 31, 2017 Low End High End Consolidated revenues before reimb
Slide 16: 2017 Strategic Initiatives
16 /////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////// 2017 STRATEGIC INITIATIVES • Having a strong financial foundation Implement cost reduction initiatives to drive margin expansion • Building an entr
Slide 17: Appendix First Quarter 2017
////////////////////////////////////////////////////////////////////////// Appendix FIRST QUARTER 2017
Slide 18: Non-GAAP Measures and Reimbursements
////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////// 18 Measurements of financial performance not calculated in accordance with GAAP should be considered as supplements to, and not subst
Slide 19: Adjusted EBITDA and Non-GAAP Adjusted Net Income
////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////// 19 Adjusted EBITDA Adjusted EBITDA is used by management to evaluate, assess and benchmark our operational results and the Company be
Slide 20: Reconciliation of Revenues and Operating Earnings
////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////// 20 Quarter Ended Quarter Ended Full Year March 31, March 31, Guidance Unaudited ($ in thousands) 2017 2016 2017 * Revenues Before Rei
Slide 21: Reconciliation of Non-GAAP Items: Adjusted EBITDA
////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////// 21 RECONCILIATION OF NON-GAAP ITEMS (continued) Adjusted EBITDA Quarter Ended Full Year March 31, March 31, Guidance Unaudited ($ in
Slide 22: Reconciliation of Non-GAAP Items: Net Debt
////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////// 22 RECONCILIATION OF NON-GAAP ITEMS (continued) Net Debt March 31, December 31, Unaudited ($ in thousands) 2017 2016 Net Debt Short-t
Slide 23: Non-GAAP Adjusted Net Income and Diluted EPS
////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////// 23 RECONCILIATION OF NON-GAAP ITEMS (continued) Non-GAAP Adjusted Net Income and Diluted Earnings Per Share Three Months Ended March
Slide 24: Non-GAAP Adjusted Net Income and EPS: Full Year Guidance
////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////// 24 RECONCILIATION OF NON-GAAP ITEMS (continued) Non-GAAP Adjusted Net Income and Diluted Earnings Per Share *Full Year Guidance 2017