Crawford & Company · NYSE:CRD.A
Crawford & — Q2 2017 Earnings Presentation
25 slides from Crawford &'s earnings presentation, Aug 9, 2017
Slide 1: Second Quarter 2017 Earnings Conference Call
August 9, 2017 Second 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 --- Second Quarter 2017 Financial Review --- 2017 Reaffirmed Guidance and Strategic Initiatives
Slide 5: Second Quarter 2017 Business Summary
5 /////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////// SECOND QUARTER 2017 BUSINESS SUMMARY (1) See Appendix for non-GAAP explanation and reconciliation Quarter Ended June 30, June 30, ($ in millions, exce
Slide 6: Second Quarter 2017 Business Highlights
6 /////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////// SECOND QUARTER 2017 BUSINESS HIGHLIGHTS • Reduced expense structure to streamline administrative and operational functions and fund investments in sal
Slide 7: Second Quarter 2017 Financial Review
////////////////////////////////////////////////////////////////////////// SECOND QUARTER 2017 Financial Review
Slide 8: Consolidated Income Statement
8 /////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////// Unaudited ($ in thousands, except per share amounts) Three Months Ended June 30, 2017 2016 % Change Revenues Before Reimbursements $ 269,247 $ 282,343
Slide 9: U.S. Services Segment Highlights
////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////// 9 2Q 2017 2Q 2016 $25 $20 $15 $10 $5 $0 Claims Ops Tech Svcs CAT Cont. Conn. WGL 2Q 2017 2Q 2016 60 40 20 0 Claims Ops Tech Svcs CAT
Slide 10: International Segment Highlights
////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////// 10 2Q 2017 2Q 2016 $50 $40 $30 $20 $10 $0 U.K. Canada Asia-Pacific Europe and ROW Revenues by Geographic Region ($ in millions) Opera
Slide 11: Broadspire Segment Highlights
////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////// 11 2Q 2017 2Q 2016 60 45 30 15 0 Workers' Compensation Casualty Medical Management, Disability and Other 2Q 2017 2Q 2016 $45 $30 $15
Slide 12: Garden City Group Segment Highlights
////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////// 12 2Q 2017 2Q 2016 $125 $100 $75 $50 $25 $0 76 94 Backlog ($ in millions) Operating Results (2Q 2017 v. 2Q 2016) • Revenues of $19.7
Slide 13: Balance Sheet
13 /////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////// Unaudited ($ in thousands) June 30, 2017 December 31, 2016 Change Cash and cash equivalents $ 59,962 $ 81,569 $ (21,607) Accounts receivable, net 168
Slide 14: Operating and Free Cash Flow
14 /////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////// Unaudited ($ in thousands) 2017 2016 Variance Net Income Attributable to Shareholders of Crawford & Company $ 17,865 $ 17,257 $ 608 Depreciation and
Slide 15: 2017 Share Repurchases
15 /////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////// 2017 SHARE REPURCHASES • During the second quarter 2017, Crawford repurchased 356,320 shares of CRD-A for an average price of $8.42 per share, and 48
Slide 16: 2017 Reaffirmed Guidance
16 /////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////// Crawford & Company is reaffirming its guidance for 2017 as follows: YEAR ENDING DECEMBER 31, 2017 Low End High End Consolidated revenues before reimb
Slide 17: 2017 Strategic Initiatives
17 /////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////// 2017 STRATEGIC INITIATIVES • Having a strong financial foundation Ø Implement cost reduction initiatives to drive margin expansion • Building an entr
Slide 18: Appendix Second Quarter 2017
////////////////////////////////////////////////////////////////////////// Appendix SECOND QUARTER 2017
Slide 19: Non-GAAP Measures and Reimbursements
////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////// 19 Measurements of financial performance not calculated in accordance with GAAP should be considered as supplements to, and not subst
Slide 20: Adjusted EBITDA and Adjusted Net Income
////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////// 20 Adjusted EBITDA Adjusted EBITDA is used by management to evaluate, assess and benchmark our operational results and the Company be
Slide 21: Reconciliation of Revenues and Operating Earnings
////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////// 21 Quarter Ended Quarter Ended Full Year June 30, June 30, Guidance Unaudited ($ in thousands) 2017 2016 2017 * Revenues Before Reimb
Slide 22: Reconciliation of Non-GAAP Items: Adjusted EBITDA
////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////// 22 RECONCILIATION OF NON-GAAP ITEMS (continued) Adjusted EBITDA Quarter Ended Full Year June 30, June 30, Guidance Unaudited ($ in th
Slide 23: Reconciliation of Non-GAAP Items: Net Debt
////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////// 23 RECONCILIATION OF NON-GAAP ITEMS (continued) Net Debt June 30, December 31, Unaudited ($ in thousands) 2017 2016 Net Debt Short-te
Slide 24: Reconciliation: Adjusted Net Income and Diluted EPS
////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////// 24 RECONCILIATION OF NON-GAAP ITEMS (continued) Non-GAAP Adjusted Net Income and Diluted Earnings Per Share Three Months Ended June 3
Slide 25: Reconciliation: Full Year Guidance Adjusted Net Income
////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////// 25 RECONCILIATION OF NON-GAAP ITEMS (continued) Non-GAAP Adjusted Net Income and Diluted Earnings Per Share *Full Year Guidance 2017