Crawford & Company · NYSE:CRD.A
Crawford & — FY2017 Earnings Presentation
28 slides from Crawford &'s earnings presentation, Mar 7, 2018
Slide 1: Fourth Quarter and Full Year 2017 Earnings Conference Call
March 8, 2018 Fourth Quarter and Full Year 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: Crawford & Company Overview
////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////// 3 Crawford & Company Overview
Slide 4: Today's Agenda
////////////////////////////////////////////////////////////////////////// TODAY'S AGENDA --- Welcome and Opening Comments --- Fourth Quarter and Full Year 2017 Financial Review --- 2017 Achievements and 2018 Initial Guidance
Slide 5: 2017 Business Highlights
////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////// 5 2017 BUSINESS HIGHLIGHTS • Consolidated revenues were $1.106 billion in 2017 compared to $1.109 billion in 2016. • Revenues grew on
Slide 6: Mission & Vision
////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////// 6 Mission & Vision Mission: To restore and enhance lives, businesses and communities Vision: To be the leading provider and most trus
Slide 7: Realigned operating segments effective 2018
////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////// 7 • Effective in 2018, the Company has realigned its operating segments by moving to a global service line reporting structure consis
Slide 8: New, Intelligent and Integrated Client Solutions
////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////// 8 New, Intelligent and Integrated Client Solutions
Slide 9: Fourth Quarter and Full Year 2017 Financial Review
////////////////////////////////////////////////////////////////////////// FOURTH QUARTER AND FULL YEAR 2017 Financial Review
Slide 10: Consolidated Income Statement, Three Months Ended December 31, 2017
////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////// 10 Unaudited ($ in thousands, except per share amounts) Three Months Ended December 31, 2017 2016 $ Change % Change Revenues Before R
Slide 11: Reconciliation of Non-GAAP Items
////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////// 11 RECONCILIATION OF NON-GAAP ITEMS Three Months Ended December 31, 2017 Unaudited ($ in thousands) Income Before Taxes Income Taxes
Slide 12: U.S. Services Segment Highlights
////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////// 12 4Q 2017 4Q 2016 $25 $20 $15 $10 $5 $0 Claims Ops Tech Svcs CAT Cont. Conn. WGL 4Q 2017 4Q 2016 60 40 20 0 Claims Ops Tech Svcs CAT
Slide 13: International Segment Highlights
////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////// 13 4Q 2017 4Q 2016 $50 $40 $30 $20 $10 $0 U.K. Canada Asia-Pacific Europe and ROW Revenues by Geographic Region ($ in millions) Opera
Slide 14: Broadspire Segment Highlights
////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////// 14 4Q 2017 4Q 2016 60 45 30 15 0 Workers' Compensation Casualty Medical Management, Disability and Other 4Q 2017 4Q 2016 $40 $30 $20
Slide 15: Garden City Group Segment Highlights
////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////// 15 4Q 2017 4Q 2016 $125 $100 $75 $50 $25 $0 66 81 Backlog ($ in millions) Operating Results (4Q 2017 v. 4Q 2016) • Revenues of $16.5
Slide 16: Balance Sheet Summary
////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////// 16 Unaudited ($ in thousands) December 31, 2017 December 31, 2016 Change Cash and cash equivalents $ 54,011 $ 81,569 $ (27,558) Accou
Slide 17: Operating and Free Cash Flow
////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////// 17 Unaudited ($ in thousands) 2017 2016 Variance Net Income Attributable to Shareholders of Crawford & Company $ 27,665 $ 35,966 $ (8
Slide 18: 2017 Share Repurchases
////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////// 18 2017 SHARE REPURCHASES • During the fourth quarter 2017, Crawford repurchased 150,000 shares of CRD-A for an average price of $8.3
Slide 19: 2018 Guidance
////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////// 19 Crawford & Company is providing initial guidance for 2018 as follows: YEAR ENDING DECEMBER 31, 2018 Low End High End Consolidated
Slide 20: 2017 Accomplishments
////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////// 20 2017 Accomplishments • Re-organized Crawford into Global Service Lines to position the Company to take share and drive growth • Su
Slide 21: Appendix
////////////////////////////////////////////////////////////////////////// Appendix FOURTH QUARTER AND FULL YEAR 2017
Slide 22: Fourth Quarter and Full Year 2017 Business Summary
////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////// 22 FOURTH QUARTER AND FULL YEAR 2017 BUSINESS SUMMARY (1) Non-GAAP Diluted Earnings per Share before goodwill impairment charges, res
Slide 23: Non-GAAP Measures and Reimbursements Explanation
////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////// 23 Measurements of financial performance not calculated in accordance with GAAP should be considered as supplements to, and not subst
Slide 24: Adjusted EBITDA and Non-GAAP Adjusted Net Income Definitions
////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////// 24 Adjusted EBITDA Adjusted EBITDA is used by management to evaluate, assess and benchmark our operational results and the Company be
Slide 25: Revenues, Costs and Operating Earnings Reconciliation
////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////// 25 Quarter Ended Quarter Ended Full Year December 31, December 31, Guidance Unaudited ($ in thousands) 2017 2016 2018 * Revenues Befo
Slide 26: Reconciliation of Non-GAAP Items: Adjusted EBITDA
////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////// 26 RECONCILIATION OF NON-GAAP ITEMS (continued) Adjusted EBITDA Quarter Ended Year Ended Full Year December 31, December 31, December
Slide 27: Reconciliation of Non-GAAP Items: Net Debt
////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////// 27 RECONCILIATION OF NON-GAAP ITEMS (continued) Net Debt December 31, December 31, Unaudited ($ in thousands) 2017 2016 Net Debt Shor
Slide 28: Non-GAAP Adjusted Net Income and Diluted Earnings Per Share
////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////// 28 RECONCILIATION OF NON-GAAP ITEMS (continued) Non-GAAP Adjusted Net Income and Diluted Earnings Per Share Year Ended December 31, 2