Crawford & Company® (NYSE: CRD-A and CRD-B), is pleased to
announce its financial results for the first quarter ended March
31, 2024.
Based in Atlanta, Crawford & Company (NYSE: CRD-A and CRD-B)
is a leading global provider of claims management and outsourcing
solutions to insurance companies and self‐insured entities with an
expansive network serving clients in more than 70 countries. The
Company’s two classes of stock are substantially identical, except
with respect to voting rights for the Class B Common Stock (CRD-B)
and protections for the non-voting Class A Common Stock (CRD-A).
More information is available on the Company's website.
Mr. Rohit Verma, president and chief executive officer of
Crawford & Company, commented, “Our first quarter results came
in largely as expected and reflect the continued absence of
significant severe weather activity, a trend which began in the
back half of 2023 and has persisted through the first quarter of
2024. Despite the difficult comparison created by the absence of
catastrophic weather, our non-weather driven businesses delivered
strong first quarter results. These included another record revenue
quarter from Broadspire and the U.S. GTS service line, and
continued progress in our International Operations segment where
revenue growth continued in the quarter. The seasonal weather
impacted North America Loss Adjusting where revenues remained
consistent with the first quarter of last year and Platform
Solutions revenues declined as anticipated, directly related to the
absence of approximately $30 million in catastrophe revenues which
did not repeat in the first quarter of 2024."
GAAP Consolidated
Results
First Quarter 2024
- Revenues before reimbursements of $301.7 million, down (5)%
from $316.3 million for the 2023 first quarter
- Net income attributable to shareholders of $2.8 million,
decreasing from the $10.7 million in the same period last year
- Diluted earnings per share of $0.06 for both CRD-A and CRD-B,
compared with diluted earnings per share of $0.22 for both share
classes in the prior year first quarter
Non-GAAP Consolidated
Results
First Quarter 2024
- Diluted earnings per share, on a non-GAAP basis, totaled $0.13
for both CRD-A and CRD-B in the 2024 first quarter, compared with
$0.28 for both share classes in the prior year first quarter
- Net income attributable to shareholders, on a non-GAAP basis,
totaled $6.5 million in the 2024 first quarter, compared with $13.9
million in the same period last year
- Consolidated adjusted operating earnings, on a non-GAAP basis,
were $12.1 million, or 4.0% of revenues before reimbursements in
the 2024 first quarter, compared with $24.9 million, or 7.9% of
revenues, in the 2023 first quarter
- Consolidated adjusted EBITDA, a non-GAAP financial measure, was
$20.6 million, or 6.8% of revenues before reimbursements in the
2024 first quarter, compared with $32.8 million, or 10.4% of
revenues, in the 2023 first quarter
- Foreign currency exchange rates increased revenues before
reimbursements by $0.9 million or less than 1%. Presented on a
constant dollar basis to the prior year period, revenues before
reimbursements totaled $300.7 million, decreasing (5)% from the
2023 first quarter
Mr. Verma continued, “The strength of our underlying non-weather
business provides a solid foundation to balance periodic revenue
shifts directly related to the variability of catastrophic weather
events. Importantly, our balance sheet remains strong, reflected in
our ample liquidity and conservatively managed debt which position
us to capitalize on opportunities as we move through 2024. With the
strength of our relationships and our brand recognition as a valued
partner in the market, we are well positioned to drive growth and
long-term strategic success.”
Segment Results for the First
Quarter
North America Loss Adjusting
North America Loss Adjusting revenues before reimbursements were
$77.4 million in the first quarter of 2024, decreasing (0.3)% from
$77.6 million in the first quarter of 2023.
The segment had operating earnings of $4.5 million in the 2024
first quarter, decreasing from $8.1 million in the first quarter of
2023. The operating margin was 5.8% in the 2024 quarter and 10.4%
in the 2023 quarter.
International Operations
International Operations revenues before reimbursements were
$98.1 million in the first quarter of 2024, up 6.8% from $91.9
million in the same period of 2023. Absent foreign exchange rate
decreases of $0.9 million, revenues would have been $97.2 million
for the 2024 first quarter.
Operating earnings were $1.7 million in the 2024 first quarter,
compared to $3.0 million in the 2023 period. The segment’s
operating margin for the 2024 quarter was 1.7% as compared with
3.3% in the 2023 quarter.
Broadspire
Broadspire segment revenues before reimbursements were a new
quarterly record of $94.3 million in the 2024 first quarter,
increasing 12.2% from $84.1 million in the 2023 first quarter.
Broadspire recorded operating earnings of $12.8 million in the
first quarter of 2024, representing an operating margin of 13.6%,
increasing from $7.9 million, or 9.4% of revenues, in the 2023
first quarter.
Platform Solutions
Platform Solutions revenues before reimbursements were $31.9
million in the first quarter of 2024, down (49.2)% from $62.8
million in the same period of 2023 as the Networks service line was
completing claims related to Hurricane Ian in the 2023 period.
Operating earnings were $1.1 million in the 2024 first quarter,
decreasing from the $10.0 million in the 2023 period. The segment’s
operating margin for the 2024 quarter was 3.5% as compared with
15.9% in the 2023 quarter.
Unallocated Corporate and Shared Costs and Credits,
Net
Unallocated corporate costs were $8.0 million in the first
quarter of 2024, compared with $4.1 million in the same period of
2023. The increase in the 2024 first quarter was primarily due to
an increase in professional fees, compensation-related costs, and
other reserves.
Selling, General, and Administrative Expenses
Selling, general, and administrative expenses (“SG&A”)
increased $10.6 million, or 15.9%, in the three months ended March
31, 2024 as compared with the 2023 period. The increase was
primarily due to professional fees, IT costs, bad debt expense, and
compensation expense, including taxes and benefits.
Other Matters
The Company recognized pretax contingent earnout expenses
totaling $0.2 million during each of the 2024 and 2023 quarters,
related to the fair value adjustment of earnout liabilities arising
from recent acquisitions. This adjustment, which is not a component
of operating earnings, is based on favorable changes to projections
of acquired entities over the respective earnout periods, which
span multiple years.
The Company recognized non-service pension costs of $2.5 million
in the 2024 first quarter compared with $2.2 million in the
comparable 2023 period. Non-service pension costs represent the
U.S. and U.K. non-service defined benefit pension costs, which are
non-operating in nature as the U.S. plan is frozen and the U.K.
plans are closed to new participants.
Balance Sheet and Cash
Flow
The Company’s consolidated cash and cash equivalents position as
of March 31, 2024, totaled $45.2 million, compared with $58.4
million at December 31, 2023. The Company’s total debt outstanding
as of March 31, 2024, totaled $230.2 million, compared with $209.1
million at December 31, 2023.
The Company’s operations used $19.8 million of cash, net during
the first three months of 2024, compared with $0.4 million used in
2023. The increase in cash used was due primarily to $11.0 million
lower operating earnings and $11.2 million higher incentive
compensation payments over the prior year.
The Company made no contributions to its U.S. defined benefit
pension plan and $0.6 million in contributions to its U.K. plans
for the first quarter of 2024, compared with no contributions to
the U.S. plan and $0.5 million to the U.K. plans in 2023.
During the 2024 first quarter, the Company didn't repurchase any
shares of CRD-A, but repurchased 85,632 shares of CRD-B at an
average per share cost of $8.56. There were no shares repurchased
during the 2023 first quarter. The total cost of share repurchases
in the 2024 quarter was $0.7 million.
Conference Call
As previously announced, Crawford & Company will host a
conference call on May 2, 2024, at 8:30 a.m. Eastern Time to
discuss its first quarter 2024 results. The conference call can be
accessed live by dialing 1-888-259-6580 and using Conference ID
67309448. A presentation for tomorrow’s call can also be found on
the investor relations portion of the Company’s website,
https://ir.crawco.com. The call will be recorded and available for
replay through June 2, 2024. You may dial 1-877-674-7070 and use
passcode 309448# to listen to the replay.
Non-GAAP Presentation
In the normal course of business, our operating segments incur
certain out-of-pocket expenses that are thereafter reimbursed by
our clients. Under U.S. generally accepted accounting principles
(“GAAP”), these out-of-pocket expenses and associated
reimbursements are required to be included when reporting expenses
and revenues, respectively, in our consolidated results of
operations. In the foregoing discussion and analysis of segment
results of operations, we do not include a gross up of segment
expenses and revenues for these pass-through reimbursed expenses.
The amounts of reimbursed expenses and related revenues offset each
other in our results of operations with no impact to our net income
or operating earnings. A reconciliation of revenues before
reimbursements to consolidated revenues determined in accordance
with GAAP is self-evident from the face of the accompanying
unaudited condensed consolidated statements of operations.
Operating earnings is the primary financial performance measure
used by our senior management and chief operating decision maker
(“CODM”) to evaluate the financial performance of our Company and
operating segments, and make resource allocation and certain
compensation decisions. Unlike net income, segment operating
earnings is not a standard performance measure found in GAAP. We
believe this measure is useful to others in that it allows them to
evaluate segment and consolidated operating performance using the
same criteria used by our senior management and CODM. Consolidated
operating earnings represent segment earnings including certain
unallocated corporate and shared costs, but before net corporate
interest expense, stock option expense, amortization of
acquisition-related intangible assets, contingent earnout
adjustments, non-service pension costs, income taxes and net income
or loss attributable to noncontrolling interests.
Adjusted EBITDA is not a term defined by GAAP and as a result
our measure of adjusted EBITDA might not be comparable to similarly
titled measures used by other companies. However, adjusted EBITDA
is used by management to evaluate, assess and benchmark our
operational results. The Company believes that adjusted EBITDA is
relevant and useful information widely used by analysts, investors
and other interested parties. Adjusted EBITDA is defined as net
income attributable to shareholders of the Company with adjustments
for depreciation and amortization, net corporate interest expense,
contingent earnout adjustments, non-service pension costs, income
taxes and stock-based compensation expense.
Unallocated corporate and shared costs and credits include
expenses and credits related to our chief executive officer and
Board of Directors, certain provisions for bad debt allowances or
subsequent recoveries such as those related to bankrupt clients,
certain unallocated professional fees and certain self-insurance
costs and recoveries that are not allocated to our individual
operating segments.
Income taxes, net corporate interest expense, stock option
expense, amortization of acquisition-related intangible assets,
contingent earnout adjustments, and non-service pension costs are
recurring components of our net income, but they are not considered
part of our segment operating earnings because they are managed on
a corporate-wide basis. Income taxes are calculated for the Company
on a consolidated basis based on statutory rates in effect in the
various jurisdictions in which we provide services and vary
significantly by jurisdiction. Net corporate interest expense
results from capital structure decisions made by senior management
and the Board of Directors, affecting the Company as a whole. Stock
option expense represents the non-cash costs generally related to
stock options and employee stock purchase plan expenses which are
not allocated to our operating segments. Amortization expense is a
non-cash expense for finite-lived customer-relationship and trade
name intangible assets acquired in business combinations.
Contingent earnout adjustments relate to changes in the fair value
of earnouts associated with our recent acquisitions. Non-service
pension costs represent the U.S. and U.K. non-service defined
benefit pension costs, which are non-operating in nature as the
U.S. plan was frozen in 2002 and the U.K. plans are closed to new
participants. None of these costs relate directly to the
performance of our services or operating activities and, therefore,
are excluded from segment operating earnings to better assess the
results of each segment's operating activities on a consistent
basis.
A significant portion of our operations are international. These
international operations subject us to foreign exchange
fluctuations. The following table illustrates revenue as a
percentage of total revenue for the major currencies of the
geographic areas that Crawford does business:
Three Months Ended
(in
thousands)
March 31, 2024
March 31, 2023
Geographic Area
Currency
USD equivalent
% of total
USD equivalent
% of total
U.S.
USD
$
179,721
59.6
%
$
199,857
63.2
%
U.K.
GBP
40,255
13.4
%
33,124
10.5
%
Canada
CAD
23,841
7.9
%
24,614
7.8
%
Australia
AUD
19,661
6.5
%
22,994
7.2
%
Europe
EUR
14,885
4.9
%
14,038
4.4
%
Rest of World
Various
23,291
7.7
%
21,707
6.9
%
Total Revenues, before reimbursements
$
301,654
100.0
%
$
316,334
100.0
%
Following is a reconciliation of consolidated operating earnings
to net income attributable to shareholders of Crawford &
Company on a GAAP basis:
Three Months Ended
(in thousands)
March 31, 2024
March 31, 2023
Operating earnings:
North America Loss Adjusting
$
4,479
$
8,065
International Operations
1,690
3,035
Broadspire
12,804
7,927
Platform Solutions
1,115
9,966
Unallocated corporate and shared costs,
net
(8,007
)
(4,119
)
Consolidated operating earnings
12,081
24,874
(Deduct) add:
Net corporate interest expense
(3,596
)
(4,399
)
Stock option expense
(167
)
(156
)
Amortization of intangible assets
(1,868
)
(1,899
)
Non-service pension costs
(2,473
)
(2,171
)
Contingent earnout adjustments
(151
)
(248
)
Income tax provision
(1,047
)
(5,271
)
Net loss (income) attributable to
noncontrolling interests
58
(49
)
Net income attributable to shareholders of
Crawford & Company
$
2,837
$
10,681
Following is a reconciliation of net income attributable to
shareholders of Crawford & Company on a GAAP basis to non-GAAP
adjusted EBITDA:
Three Months Ended
(in thousands)
March 31, 2024
March 31, 2023
Net income attributable to shareholders of
Crawford & Company
$
2,837
$
10,681
Add:
Depreciation and amortization
9,299
9,050
Stock-based compensation
1,218
1,023
Net corporate interest expense
3,596
4,399
Non-service pension costs
2,473
2,171
Contingent earnout adjustments
151
248
Income tax provision
1,047
5,271
Non-GAAP adjusted EBITDA
$
20,621
$
32,843
Following is a reconciliation of operating cash flow to free
cash flow for the three months ended March 31, 2024 and 2023:
Three Months Ended
(in thousands)
March 31, 2024
March 31, 2023
Change
Net Cash Used in Operating Activities
$
(19,803
)
$
(445
)
$
(19,358
)
Less:
Property & Equipment Purchases,
net
(1,541
)
(1,031
)
(510
)
Capitalized Software (internal and
external costs)
(8,009
)
(7,610
)
(399
)
Free Cash Flow
$
(29,353
)
$
(9,086
)
$
(20,267
)
Non-GAAP consolidated results for 2024 exclude the non-cash,
after-tax adjustments for amortization of intangible assets of $1.6
million, non-service-related pension costs of $1.9 million, and
contingent earnout adjustment of $0.2 million. Non-GAAP
consolidated results for 2023 exclude a similar adjustment for
amortization of intangible assets of $1.4 million,
non-service-related pension costs of $1.6 million, and contingent
earnout adjustment of $0.2 million.
Following are the reconciliations of GAAP Pretax Earnings, Net
Income and Earnings Per Share to related non-GAAP Adjusted figures,
which reflect each of 2024 and 2023 before amortization of
intangible assets, non-service related pension costs and contingent
earnout adjustments:
Three Months Ended March 31,
2024
(in
thousands)
Pretax earnings
Net income attributable to
Crawford & Company
Diluted earnings per CRD-A
share
Diluted earnings per CRD-B
share
GAAP
$
3,826
$
2,837
$
0.06
$
0.06
Adjustments:
Amortization of intangible assets
1,868
1,575
0.03
0.03
Non-service related pension costs
2,473
1,929
0.04
0.04
Contingent earnout adjustments
151
151
—
—
Non-GAAP Adjusted
$
8,318
$
6,492
$
0.13
$
0.13
Three Months Ended March 31,
2023
(in thousands)
Pretax earnings
Net income attributable to
Crawford & Company
Diluted earnings per CRD-A
share
Diluted earnings per CRD-B
share
GAAP
$
16,001
$
10,681
$
0.22
$
0.22
Adjustments:
Amortization of intangible assets
1,899
1,424
0.03
0.03
Non-service related pension costs
2,171
1,613
0.03
0.03
Contingent earnout adjustments
248
184
-
-
Non-GAAP Adjusted
$
20,319
$
13,902
$
0.28
$
0.28
Following is information regarding the weighted average shares
used in the computation of basic and diluted earnings per
share:
Three Months Ended
(in
thousands)
March 31, 2024
March 31, 2023
Weighted-Average Shares Used to Compute
Basic Earnings Per Share:
Class A Common Stock
29,586
28,841
Class B Common Stock
19,542
19,848
Weighted-Average Shares Used to Compute
Diluted Earnings Per Share:
Class A Common Stock
30,279
29,141
Class B Common Stock
19,542
19,848
Further information regarding the Company’s operating results
for the three months ended March 31, 2024, financial position as of
March 31, 2024, and cash flows for the three months ended March 31,
2024 is shown on the attached unaudited condensed consolidated
financial statements.
About Crawford &
Company
Based in Atlanta, Crawford & Company (NYSE: CRD-A and CRD-B)
is a leading provider of claims management and outsourcing
solutions to insurance companies and self-insured entities with an
expansive network serving clients in more than 70 countries. The
Company's two classes of stock are substantially identical, except
with respect to voting rights for the Class B Common Stock (CRD-B)
and protections for the non-voting Class A Common Stock (CRD-A).
More information is available at www.crawco.com.
TAG: Crawford-Financial, Crawford-Investor-News-and-Events
FOR FURTHER INFORMATION REGARDING THIS PRESS RELEASE, PLEASE
CALL BRUCE SWAIN AT (404) 300-1051.
This press release contains
forward-looking statements, including statements about the expected
future financial condition, results of operations and earnings
outlook of Crawford & Company. Statements, both qualitative and
quantitative, that are not historical facts may be “forward-looking
statements” as defined in the Private Securities Litigation Reform
Act of 1995 and other federal securities laws. Forward-looking
statements involve a number of risks and uncertainties that could
cause actual results to differ materially from historical
experience or Crawford & Company’s present expectations.
Accordingly, no one should place undue reliance on forward-looking
statements, which speak only as of the date on which they are made.
Crawford & Company does not undertake to update forward-looking
statements to reflect the impact of circumstances or events that
may arise or not arise after the date the forward-looking
statements are made. For further information regarding Crawford
& Company, including factors that could cause our actual
financial condition, results or earnings to differ from those
described in any forward-looking statements, please read Crawford
& Company’s reports filed with the SEC and available at
www.sec.gov and in the Investor Relations section of Crawford &
Company’s website at www.crawco.com.
CRAWFORD & COMPANY
CONDENSED CONSOLIDATED
STATEMENTS OF OPERATIONS
Unaudited
(In Thousands, Except Per Share
Amounts and Percentages)
Three Months Ended March 31,
2024
2023
% Change
Revenues:
Revenues Before Reimbursements
$
301,654
$
316,334
(5
)%
Reimbursements
11,419
11,604
(2
)%
Total Revenues
313,073
327,938
(5
)%
Costs and Expenses:
Costs of Services Provided, Before
Reimbursements
214,389
227,078
(6
)%
Reimbursements
11,419
11,604
(2
)%
Total Costs of Services
225,808
238,682
(5
)%
Selling, General, and Administrative
Expenses
77,320
66,711
16
%
Corporate Interest Expense, Net
3,596
4,399
(18
)%
Total Costs and Expenses
306,724
309,792
(1
)%
Other Loss, Net
(2,523
)
(2,145
)
18
%
Income Before Income Taxes
3,826
16,001
(76
)%
Provision for Income Taxes
1,047
5,271
(80
)%
Net Income
2,779
10,730
(74
)%
Net Loss (Income) Attributable to
Noncontrolling Interests
58
(49
)
nm
Net Income Attributable to Shareholders of
Crawford & Company
$
2,837
$
10,681
(73
)%
Earnings Per Share - Basic:
Class A Common Stock
$
0.06
$
0.22
(73
)%
Class B Common Stock
$
0.06
$
0.22
(73
)%
Earnings (Loss) Per Share - Diluted:
Class A Common Stock
$
0.06
$
0.22
(73
)%
Class B Common Stock
$
0.06
$
0.22
(73
)%
Cash Dividends Per Share:
Class A Common Stock
$
0.07
$
0.06
17
%
Class B Common Stock
$
0.07
$
0.06
17
%
CRAWFORD & COMPANY
CONDENSED CONSOLIDATED BALANCE
SHEETS
As of March 31, 2024
and December 31, 2023
Unaudited
(In Thousands, Except Par
Values)
March 31,
December 31,
2024
2023
ASSETS
Current Assets:
Cash and Cash Equivalents
$
45,196
$
58,363
Accounts Receivable, Net
125,985
131,362
Unbilled Revenues, at Estimated Billable
Amounts
127,597
116,611
Income Taxes Receivable
2,586
4,842
Prepaid Expenses and Other Current
Assets
44,460
58,168
Total Current Assets
345,824
369,346
Net Property and Equipment
21,597
22,742
Other Assets:
Operating Lease Right-of-Use Asset,
Net
86,141
88,615
Goodwill
76,621
76,724
Intangible Assets Arising from Business
Acquisitions, Net
80,341
81,786
Capitalized Software Costs, Net
99,942
96,770
Deferred Income Tax Assets
26,162
26,247
Other Noncurrent Assets
39,649
36,969
Total Other Assets
408,856
407,111
Total Assets
$
776,277
$
799,199
LIABILITIES AND SHAREHOLDERS’
INVESTMENT
Current Liabilities:
Short-Term Borrowings
$
19,354
$
14,813
Accounts Payable
45,232
45,107
Accrued Compensation and Related Costs
64,256
97,842
Self-Insured Risks
20,188
33,238
Income Taxes Payable
5,334
6,130
Operating Lease Liability
24,438
24,351
Other Accrued Liabilities
48,108
42,271
Deferred Revenues
37,224
35,540
Total Current Liabilities
264,134
299,292
Noncurrent Liabilities:
Long-Term Debt and Finance Leases, Less
Current Installments
210,823
194,335
Operating Lease Liability
74,295
78,029
Deferred Revenues
23,807
24,871
Accrued Pension Liabilities
23,440
24,006
Other Noncurrent Liabilities
36,540
38,835
Total Noncurrent Liabilities
368,905
360,076
Shareholders’ Investment:
Class A Common Stock, $1.00 Par Value
29,628
29,525
Class B Common Stock, $1.00 Par Value
19,469
19,555
Additional Paid-in Capital
83,104
82,589
Retained Earnings
227,311
228,564
Accumulated Other Comprehensive Loss
(214,792
)
(218,615
)
Shareholders’ Investment Attributable to
Shareholders of Crawford & Company
144,720
141,618
Noncontrolling Interests
(1,482
)
(1,787
)
Total Shareholders’ Investment
143,238
139,831
Total Liabilities and Shareholders’
Investment
$
776,277
$
799,199
CRAWFORD & COMPANY
SUMMARY RESULTS BY OPERATING
SEGMENT WITH DIRECT COMPENSATION AND OTHER EXPENSES
Unaudited
(In Thousands, Except
Percentages)
Three Months Ended March
31,
North America Loss Adjusting
%
International Operations
%
Broadspire
%
Platform Solutions
%
2024
2023
Change
2024
2023
Change
2024
2023
Change
2024
2023
Change
Revenues Before Reimbursements
$
77,365
$
77,597
(0.3)%
$
98,092
$
91,863
6.8%
$
94,298
$
84,054
12.2%
$
31,899
$
62,820
(49.2)%
Direct Compensation, Fringe Benefits &
Non-Employee Labor
55,467
54,164
2.4%
64,979
61,421
5.8%
57,257
52,641
8.8%
18,930
40,911
(53.7)%
% of Revenues Before Reimbursements
71.7
%
69.8
%
66.2
%
66.9
%
60.7
%
62.6
%
59.3
%
65.1
%
Expenses Other than Reimbursements, Direct
Compensation, Fringe Benefits & Non-Employee Labor
17,419
15,368
13.3%
31,423
27,407
14.7%
24,237
23,486
3.2%
11,854
11,943
(0.7)%
% of Revenues Before Reimbursements
22.5
%
19.8
%
32.0
%
29.8
%
25.7
%
27.9
%
37.2
%
19.0
%
Total Operating Expenses
72,886
69,532
4.8%
96,402
88,828
8.5%
81,494
76,127
7.1%
30,784
52,854
(41.8)%
Operating Earnings (1)
$
4,479
$
8,065
(44.5)%
$
1,690
$
3,035
(44.3)%
$
12,804
$
7,927
61.5%
$
1,115
$
9,966
(88.8)%
% of Revenues Before Reimbursements
5.8
%
10.4
%
1.7
%
3.3
%
13.6
%
9.4
%
3.5
%
15.9
%
(1) A non-GAAP financial measurement which
represents net income attributable to the applicable reporting
segment excluding income taxes, net corporate interest expense,
stock option expense, amortization of acquisition-related
intangible assets, non-service pension costs, contingent earnout
adjustments, and certain unallocated corporate and shared costs and
credits. See pages 3 and 4 for additional information about segment
operating earnings.
CRAWFORD & COMPANY
CONDENSED CONSOLIDATED
STATEMENTS OF CASH FLOWS
Year-to-Date Period Ended
March 31, 2024 and March 31, 2023
Unaudited
(In Thousands)
2024
2023
Cash Flows From Operating
Activities:
Net Income
$
2,779
$
10,730
Reconciliation of net income to net cash
used in operating activities:
Depreciation and amortization
9,299
9,050
Stock-based compensation
1,218
1,023
(Gain) loss on disposal of property and
equipment
(81
)
20
Contingent earnout adjustments
151
248
Changes in operating assets and
liabilities:
Accounts receivable, net
6,312
(17
)
Unbilled revenues, net
(9,511
)
(6,333
)
Accrued or prepaid income taxes
942
3,895
Accounts payable and accrued
liabilities
(25,837
)
(15,818
)
Deferred revenues
116
2,841
Accrued retirement costs
(3,546
)
(2,887
)
Prepaid expenses and other operating
activities
(1,645
)
(3,197
)
Net cash used in operating activities
(19,803
)
(445
)
Cash Flows From Investing
Activities:
Acquisitions of property and equipment
(1,541
)
(1,031
)
Capitalization of computer software
costs
(8,009
)
(7,610
)
Net cash used in investing activities
(9,550
)
(8,641
)
Cash Flows From Financing
Activities:
Cash dividends paid
(3,443
)
(2,925
)
Repurchases of common stock
(733
)
—
Increases in short-term and revolving
credit facility borrowings
35,807
19,394
Payments on short-term and revolving
credit facility borrowings
(14,794
)
(10,265
)
Payments of contingent consideration on
acquisitions
(579
)
(848
)
Other financing activities
(185
)
(169
)
Net cash provided by financing
activities
16,073
5,187
Effects of exchange rate changes on cash
and cash equivalents
394
1,195
Decrease in cash, cash equivalents, and
restricted cash(1)
(12,886
)
(2,704
)
Cash, cash equivalents, and restricted
cash at beginning of year(1)
59,545
46,645
Cash, cash equivalents, and restricted
cash at end of period(1)
$
46,659
$
43,941
(1) The 2024 amounts include beginning
restricted cash of $1,182 at December 31, 2023, and ending
restricted cash of $1,463 at March 31, 2024, and the 2023 amounts
include beginning restricted cash of $638 at December 31, 2022, and
ending restricted cash of $637 at March 31, 2023, which we present
as part of "Prepaid expenses and other current assets" on the
Balance Sheets.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20240501018084/en/
Media Contacts: mediarelations@us.crawco.com Lynn Cufley +44 207
265 4067 Lynn.Cufley@crawco.uk Katie Cline +1 470 792 5678
Katie.Cline@us.crawco.com Investor Contact: Jennifer
Belodeau/Rosalyn Christian IMS Investor Relations 203 972 9200
crawford@imsinvestorrelations.com