Crawford & Company · NYSE:CRD.A
Crawford & — Keefe, Bruyette & Woods 2011 Insurance Conference
29 slides from Crawford &'s conference presentation, Sep 8, 2011
Slide 1: KBW 2011 Insurance Conference
Keefe, Bruyette & Woods 2011 Insurance Conference September 8, 2011 Exhibit 99.1
Slide 2: Forward-looking Statements, Segment Operating Earnings and non-GAAP Financial Information
Forward-looking Statements, Segment Operating Earnings and non-GAAP Financial Information Forward Looking Statements and Interim Results: This presentation contains forward-looking statements, including statements about the future financial condition, results of operations and earnings outlook of Cr
Slide 3: Crawford brands: Broadspire, GCG
Ciswiond B BROADSPIRE, GCG:
Slide 4: Crawford's Award-Winning Performance
Crawford’s Award-Winning Performance Service Provider of the Year Crawford & Company With an unprecedented level of natural catastrophes across the world in 2010 and 2011, Crawford seized the opportunity to prove its global capabilities and has been recognized as Service Provider of the Year for its
Slide 5: The Crawford System of Claims Solutions
The Crawford System is the most comprehensive global, integrated solution for all corporate, insurer, and re-insurer claims administration . The Crawford System of Claims Solutions SM
Slide 6: Crawford is uniquely positioned for global growth
Crawford is uniquely positioned for global growth
Slide 7: Our Global Strength
Our Global Strength $1 Billion Revenue Company 700 Locations 70+ Countries 8,900 Employees
Slide 8: Americas
Americas • U.S. Property and Casualty • Market leader • Technology innovation • Benefit from U.S. market consolidation • Canada • Strong relationships with top insurers • End to end solutions • Innovation and technology • Latin America & Caribbean • Latin American emerging markets GDP growth on aver
Slide 9: EMEA/AP
• United Kingdom • EMEA/AP’s largest market • Recruitment of GTS adjusters continues • Strong commercial presence • CEMEA • Expansion of TPA offerings • Claims volume increasing • Opportunity to grow market share • Asia/Pacific • Catastrophe revenues should continue for the balance of this year • Ne
Slide 10: Broadspire
• Fully integrated service model • Improved outcomes by teaming claims and medical management • Superior outcomes measurement • Quantifiable measurements gauging our performance and providing insight for continued program improvement • Exceptional medical protocols • Shorter durations and focused st
Slide 11: Legal Settlement Administration
• Core services: • GCG Class Action Services provides administrative services to expedite high-volume class action settlements • GCG Bankruptcy Services manages the administration of bankruptcy cases under Chapter 11 • GCG Communications specializes in legal notice programs for case administration w
Slide 12: High Profile Specialized Resources
High Profile Specialized Resources: Worldwide Catastrophe Response Global Technical Services (GTS) Contractor Connection Garden City Group (GCG)
Slide 13: Customer response to global catastrophes
Crawford’s customer response to the unprecedented number of global catastrophes has been rapid, nimble and innovative Earthquake, tsunami Japan, 11 March Earthquake New Zealand, 22 Feb Cyclone Yasi Australia, 2 Feb Landslides, flash floods Brazil, 12-16 Jan Floods, flash floods Australia, Dec 2010-J
Slide 14: Global Technical Services
Global Technical Services • The definitive solution for large, complex claims, providing the highest level of world-class talent and the industry’s largest network to strategically manage large complex losses anywhere on the globe • Combining regional and local adjusting strengths to leverage scale
Slide 15: Contractor Connection – Managed Repair Solutions
Contractor Connection – Managed Repair Solutions • Dominant insurance industry leader • 3,500 contractors in the U.S. & Canada • Projected $1 billion in estimate dollars • Average 20% revenue growth over the last five years • Partner with 50% of top 25 carriers • Expanding into consumer services, re
Slide 16: Garden City Group (GCG)
– Largest securities class action administrator in the country • Deep expertise in mega-case settlements • GCG has been entrusted with more billion dollar+ securities settlements than all competitors combined • No one handled more of the top 100 securities cases than GCG • More than 500 associates i
Slide 17: Financial Review
Financial Review
Slide 18: Crawford Financial Performance
Crawford Financial Performance • Revenue CAGR of 5.8% from 2006 to projected 2011 • Strong performance in Legal Settlement Administration, organic growth in EMEA/AP, and acquisitions drove revenue growth • Before a special credit in 2011, CAGR of non-GAAP adjusted net income attributable to sharehol
Slide 19: First Half 2011 Business Drivers
First Half 2011 Business Drivers • Revenues and earnings reflected continued strong performance in Legal Settlement Administration, due to a special project • Americas’ rebound assisted by U.S. catastrophe activity • Organic growth in EMEA/AP primarily due to weather-related claims in Australia and
Slide 20: First Half 2011 Financials
First Half 2011 Financials Income Statement Highlights Six months ended % Change Revenues $576,751 $474,417 22% Costs of Services 417,715 352,970 18% Selling, General, and Administrative Expenses 113,159 99,378 14% Corporate Interest Expense, Net 8,254 7,809 6% Restructuring and Other Costs - 4,650
Slide 21: First Half 2011 Balance Sheet Highlights
First Half 2011 Financials Crawford & Company Balance Sheet Highlights Unaudited As of June 30, 2011 and December 31, 2010 June 30, December 31, Change Cash and cash equivalents $37,206 $93,540 ($56,334) Accounts receivable, net 185,026 142,521 42,505 Unbilled revenues, net 136,726 122,933 13,793 To
Slide 22: 2011 Focus and Outlook
2011 Focus and Outlook
Slide 23: 2011 Operational Focus
2011 Operational Focus • Key account management/cross-selling through the Crawford System of Claims Solutions • Continue to grow Business Process Outsourcing • Further expansion of Global Technical Services (GTS) and Contractor Connection • International expansion of TPA offerings • Improve margins
Slide 24: Guidance
Guidance • Full Year 2011 Guidance as of August 8, 2011 is affirmed: – Consolidated revenues before reimbursements between $1.07 billion and $1.10 billion – Consolidated operating earnings between $75.0 million and $83.0 million – Consolidated cash provided by operating activities between $30.0 mill
Slide 25: Keefe, Bruyette & Woods 2011 Insurance Conference
Keefe, Bruyette & Woods 2011 Insurance Conference September 8, 2011
Slide 26: 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 27: Reconciliation of Non-GAAP Items
Reconciliation of Non-GAAP Items (in $000's) Revenues Before Reimbursements Total Revenues $ 1,051 $ 1,136 $ 1,048 $ 1,110 $ 1,172 $ Reimbursements (80) (76) (87) (78) (80) (87) Revenues Before Reimbursements $ $ 1,049 $ $ 1,030 $ 1,085 $ Non-GAAP Adjusted Net Income Attributable to Shareholders of
Slide 28: Reconciliation of Non-GAAP Items (cont.)
Reconciliation of Non-GAAP Items (cont.) Net Income (Loss) Attributable Net to Shareholders Earnings Income (Loss) Tax Income of Crawford (Loss) Per Before Taxes Expense (Loss) & Company Share As reported 2,307 $ 1,758 $ $ $ 0.01 $ Add: Goodwill impairment charge 7,303 6,841 6,841 0.13 Non-GAAP adju
Slide 29: Reconciliation of Non-GAAP Items
Reconciliation of Non-GAAP Items Crawford & Company (in $000's) June 30, December 31, Deferred Revenues, Net Deferred revenues, current 51,605 $ 48,198 $ Deferred revenues, noncurrent 29,098 30,048 Total deferred revenues 80,703 78,246 Less: Receivable held in trust included in accounts receivable 1
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