Crawford & Company · NYSE:CRD.A
Crawford & — Q1 2018 Earnings Presentation
25 slides from Crawford &'s earnings presentation, May 10, 2018
Slide 1: First Quarter 2018 Earnings Conference Call
First Quarter 2018 Earnings Conference Call LMM May 11, 2018
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: 1. P&C Adjusting Solutions + Crawford Claims Solutions 2. TPA Solutions Broadspire 3. Specialty Solutions e Large or complex clai
Slide 4: First Quarter 2018 Business Highlights
FIRST QUARTER 2018 BUSINESS HIGHLIGHTS Mission To restore and enhance lives, businesses and communities Vision To be the leading provider and most trusted source for expert assistance, serving those who insure and self insure the risks of businesses and communities anywhere in the world CRAWIONE css
Slide 5: Improving Top Line Revenue Growth
IMPROVING TOP LINE REVENUE GROWTH MLL LLL Four Core Areas of Focus: Implement carrier / broker / corporate (CBC) go-to-market strategy GLOBAL Accentuate and accelerate One Crawford NATIONAL 3 Create activity for RE J) all sizes of prospects ‘GIONAL LOCAL ‘CRAWFORD Increase CARRIER / BROKER / CORPORA
Slide 6: One Crawford — Solutions Currently Available in the Marketplace
ONE CRAWFORD — SOLUTIONS CURRENTLY AVAILABLE IN THE MARKETPLACE LLL LL TruLook TLL Total Property Solution based on level of claim complexity — ContractorConnection — WeGolLook = Claims Field Operations + Reduces claim expense and time in process Wins/Proposals: 6 open opportunities & recent win: Pr
Slide 7: First Quarter 2018 Financial Review
FIRST QUARTER 2018 ////////////////////////////////////////////////////////////////////////// Financial Review
Slide 8: First Quarter 2018 Financial Summary
FIRST QUARTER 2018 FINANCIAL SUMMARY ////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////// Quarter Ended March 31, March 31, 2018 2017 ($ in millions, except per share amounts) % Change R
Slide 9: 2018 Realignment to Global Service Lines
2018 REALIGNMENT TO GLOBAL SERVICE LINES ////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////// Effective in 2018, we have realigned our operating segments by moving to a global service li
Slide 10: Crawford Claims Solutions Segment Highlights
CRAWFORD CLAIMS SOLUTIONS SEGMENT HIGHLIGHTS ////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////// Operating Results (1Q 2018 v. 1Q 2017) Three months ended • Revenues of $90.4 million ve
Slide 11: Crawford TPA Solutions: Broadspire Segment Highlights
CRAWFORD TPA SOLUTIONS: BROADSPIRE SEGMENT HIGHLIGHTS ////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////// Operating Results (1Q 2018 v. 1Q 2017) Three months ended • Revenues of $100.2
Slide 12: Crawford Specialty Solutions Segment Highlights
CRAWFORD SPECIALTY SOLUTIONS SEGMENT HIGHLIGHTS ////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////// Operating Results (1Q 2018 v. 1Q 2017) Three months ended • Revenues of $82.4 million
Slide 13: Balance Sheet Highlights
BALANCE SHEET HIGHLIGHTS ////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////// March 31, December 31, Unaudited ($ in thousands) 2018 2017 Change Cash and cash equivalents $ 63,956 $ 54,0
Slide 14: Operating and Free Cash Flow
OPERATING AND FREE CASH FLOW ////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////// For the three months ended March 31, Unaudited ($ in thousands) 2018 2017 Variance Net Income Attributab
Slide 15: 2018 Share Repurchases
2018 SHARE REPURCHASES ////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////// • During the first quarter 2018, Crawford repurchased 1,011,958 shares of CRD-A for an average price of $8.28
Slide 16: 2018 Guidance
2018 GUIDANCE ////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////// Crawford & Company is reaffirming its guidance for 2018 as follows: YEAR ENDING DECEMBER 31, 2018 Low End High End Cons
Slide 17: Conclusion
CONCLUSION ////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////// Looking forward Crawford has six primary objectives for 2018: ▪ Increasing the velocity of our revenue growth ▪ Launching
Slide 18: First Quarter 2018 Appendix
FIRST QUARTER 2018 ////////////////////////////////////////////////////////////////////////// Appendix
Slide 19: Appendix: Non-GAAP Financial Information
APPENDIX: NON-GAAP FINANCIAL INFORMATION ////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////// Measurements of financial performance not calculated in accordance with GAAP should be consi
Slide 20: Appendix: Non-GAAP Financial Information (continued)
APPENDIX: NON-GAAP FINANCIAL INFORMATION (continued) ////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////// Adjusted EBITDA Adjusted EBITDA is used by management to evaluate, assess and be
Slide 21: Statement of Operations Highlights
STATEMENT OF OPERATIONS HIGHLIGHTS ////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////// Unaudited ($ in thousands, except per share amounts) Three Months Ended March 31, 2018 2017 $ Chan
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 M
Slide 23: Reconciliation of Non-GAAP Items (continued)
RECONCILIATION OF NON-GAAP ITEMS (continued) ////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////// Adjusted EBITDA Quarter Ended Full Year March 31, March 31, Guidance Unaudited ($ in tho
Slide 24: Reconciliation of Non-GAAP Items (continued)
RECONCILIATION OF NON-GAAP ITEMS (continued) ////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////// Net Debt March 31, December 31, Unaudited ($ in thousands) 2018 2017 Net Debt Short-term
Slide 25: Reconciliation of Non-GAAP Items (continued)
RECONCILIATION OF NON-GAAP ITEMS (continued) ////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////// Non-GAAP Adjusted Net Income and Diluted Earnings Per Share Three Months Ended March 31,