Crawford & Company · NYSE:CRD.A
Crawford & — Q1 2015 Earnings Presentation
21 slides from Crawford &'s earnings presentation, May 7, 2015
Slide 1: First Quarter 2015 Earnings Conference Call
First Quarter 2015 Earnings Conference Call May 7, 2015 Crawford & Company
Slide 2: Forward-Looking Statements
PAGE 2 • Forward-Looking Statements —This presentation contains forward-looking statements, including statements about the future financial condition, results of operations and earnings outlook of Crawford & Company. Statements, both qualitative and quantitative, that are not statements of historica
Slide 3: Global Business Services Leader
PAGE 3 • The world's largest independent provider of global claims management solutions • Multiple globally recognized brand names: Crawford, Broadspire, GCG • Clients include multinational insurance carriers, brokers and local insurance firms as well as 200 of the Fortune 500 GLOBAL BUSINESS SERVIC
Slide 4: Today's Agenda
TODAY'S AGENDA --- Welcome and Opening Comments --- First Quarter 2015 Financial Review --- Updated Guidance
Slide 5: First Quarter 2015 Business Summary
PAGE 5 14.1 288 275 Revenues ($ in millions) Consolidated Operating Earnings ($ in millions) • Revenues of $288 million • Consolidated operating earnings of $10.7 million • Diluted earnings per share of $0.06 for CRDA and $0.04 for CRDB • Diluted earnings per share on a non-GAAP basis of $0.07 for C
Slide 6: First Quarter 2015 Financial Review
FIRST QUARTER 2015 Financial Review
Slide 7: Consolidated Income Statement, Three Months Ended March 31, 2015
PAGE 7 Unaudited ($ in thousands, except per share amounts) Three Months Ended March 31, 2015 2014 % Change Revenues Before Reimbursements $287,777 $275,349 5 % Costs of Services Before Reimbursements 219,323 203,893 8 % Selling, General, and Administrative Expenses 60,387 59,730 1 % Corporate Inter
Slide 8: Americas Segment Highlights
PAGE 8 U.S. Canada Latin America/ Caribbean Revenues by Geographic Region ($ in millions) Americas Cases Received (In thousands) U.S. Canada Latin America/ Caribbean Operating Results (1Q 2015 v. 1Q 2014) • Revenues of $89.5 million versus $87.9 million • Exchange rates reduced revenues by 4.7% • Op
Slide 9: Americas Segment Highlights (cont.)
PAGE 9 9.1 85.9 6.5 17.4 6.3 6.8 Revenues ($ in millions) Catastrophe Cases (In thousands) U.S. Catastrophe (CAT) Adjuster Activity • CAT revenues in the 2015 period included $12.6 million under an outsourcing arrangement with a major U.S. insurer where the Company supplies adjusters to the client's
Slide 10: EMEA/AP Segment Highlights
PAGE 10 U.K. Europe U.K. Asia-Pacific Asia-Pacific Europe Revenues by Geographic Region ($ in millions) EMEA/AP Cases Received (In thousands) Operating Results (1Q 2015 v. 1Q 2014) • Revenues of $91.3 million versus $80.3 million • Exchange rates reduced revenues by 8.0% • Operating earnings of $1.5
Slide 11: Broadspire Segment Highlights
PAGE 11 Revenues by Service Line ($ in millions) Broadspire Cases Received (In thousands) Risk Mgmt Info. Svcs. Other Medical Mgmt. Casualty Workers' Comp. Workers' Comp. Operating Results (1Q 2015 v. 1Q 2014) • Revenues of $69.7 million versus $64.8 million • Operating earnings of $3.5 million vers
Slide 12: Legal Settlement Administration Segment Highlights
PAGE 12 Backlog ($ in millions) Operating Results (1Q 2015 v. 1Q 2014) • Revenues of $37.4 million versus $42.4 million • Operating earnings of $5.0 million in both periods • Operating earnings margins of 13.2% versus 11.7% • Backlog at $103 million versus $101 million Garden City Group • Deepwater
Slide 13: Balance Sheet Highlights
PAGE 13 Unaudited ($ in thousands) March 31, 2015 December 31, 2014 Change Cash and cash equivalents $40,842 $52,456 ($11,614 ) Accounts receivable, net 176,405 180,096 (3,691 ) Unbilled revenues, net 121,800 103,163 18,637 Total receivables 298,205 283,259 14,946 Goodwill and intangible assets aris
Slide 14: Operating and Free Cash Flow
PAGE 14 Unaudited ($ in thousands) 2015 2014 Variance Net Income Attributable to Shareholders of Crawford & Company $ 2,986 $ 6,652 $ (3,666 ) Depreciation and Other Non-Cash Operating Items 11,545 8,199 3,346 Unbilled and Billed Receivables Change (1,105 ) (26,340 ) 25,235 Working Capital Change (2
Slide 15: Other Financial Highlights
PAGE 15 Share Repurchases: • During the 2015 first quarter, Crawford repurchased 17,700 shares of CRDA at an average cost of $7.79 per share • From inception of share repurchase programs authorized in May 2012 through March 31, 2015, Crawford has repurchased 1,589,227 shares of CRDA at an average co
Slide 16: 2015 Guidance
PAGE 16 Crawford & Company is updating its guidance range for 2015 as follows: YEAR ENDING DECEMBER 31, 2015 Low End High End Consolidated revenues before reimbursements $1.16 $1.19 billion Consolidated operating earnings $87.0 $97.0 million Consolidated cash provided by operating activities $40.0 $
Slide 17: Appendix First Quarter 2015
Appendix FIRST QUARTER 2015
Slide 18: Non-GAAP Explanation
PAGE 18 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 comparable to other similarly-titled mea
Slide 19: Reconciliation of Non-GAAP Items
PAGE 19 Quarter Ended Quarter Ended Full Year March 31 March 31 Guidance Unaudited ($ in thousands) 2015 2014 2015 * Revenues Before Reimbursements Total Revenues $ 306,616 $ 289,358 $ 1,255,000 Reimbursements (18,839 ) (14,009 ) (80,000 ) Revenues Before Reimbursements $ 287,777 $ 275,349 $ 1,175,0
Slide 20: Reconciliation of Non-GAAP Items: Net Debt
PAGE 20 RECONCILIATION OF NON-GAAP ITEMS (cont.) Net Debt March 31, December 31, Unaudited ($ in thousands) 2015 2014 Net Debt Short-term borrowings $ 11,989 $ 2,002 Current installments of long-term debt and capital leases 1,869 763 Long-term debt and capital leases, less current installments 231,7
Slide 21: Non-GAAP Adjusted Net Income and Diluted EPS
PAGE 21 RECONCILIATION OF NON-GAAP ITEMS (cont.) Non-GAAP Adjusted Net Income and Diluted Earnings Per Share Three Months Ended March 31, 2015 Unaudited ($ in thousands) Income Before Taxes Tax Expense Net Income Net Income Attributable to Crawford & Company Diluted Earnings per Share (CRDA) Diluted