[First Quarter 2024 Financial Highlights](index=1&type=section&id=First%20Quarter%202024%20Financial%20Highlights) Crawford & Company's first-quarter 2024 results were significantly impacted by a lack of severe weather events, leading to a 5% decrease in revenues before reimbursements to $301.7 million compared to Q1 2023, with net income attributable to shareholders declining to $2.8 million [Overview](index=1&type=section&id=Overview) Crawford & Company's first-quarter 2024 results were significantly impacted by a lack of severe weather events, leading to a 5% decrease in revenues before reimbursements to $301.7 million compared to Q1 2023. Net income attributable to shareholders saw a steep decline to $2.8 million from $10.7 million year-over-year. Despite the overall downturn, non-weather-driven businesses, including Broadspire and the U.S. GTS service line, delivered strong results, with Broadspire achieving record revenue - The CEO attributed the Q1 results to the continued absence of significant severe weather activity, which created a difficult comparison to the prior year. However, non-weather businesses like Broadspire and U.S. GTS showed **strong performance**[5](index=5&type=chunk) Q1 2024 Key Financial Metrics (GAAP vs. Non-GAAP) | Metric | Q1 2024 | Q1 2023 | | :--- | :--- | :--- | | **GAAP Results** | | | | Revenues before reimbursements | $301.7M | $316.3M | | Net Income Attributable to Shareholders | $2.8M | $10.7M | | Diluted EPS (CRD-A & CRD-B) | $0.06 | $0.22 | | **Non-GAAP Results** | | | | Net Income Attributable to Shareholders | $6.5M | $13.9M | | Diluted EPS (CRD-A & CRD-B) | $0.13 | $0.28 | | Consolidated Adjusted Operating Earnings | $12.1M | $24.9M | | Consolidated Adjusted EBITDA | $20.6M | $32.8M | [Segment Performance](index=3&type=section&id=Segment%20Results%20for%20the%20First%20Quarter) The company's segments exhibited mixed performance in Q1 2024, with strong growth in Broadspire offset by declines in Platform Solutions and reduced operating margins in North America Loss Adjusting and International Operations [North America Loss Adjusting](index=3&type=section&id=North%20America%20Loss%20Adjusting) Revenues for the North America Loss Adjusting segment remained nearly flat, decreasing by 0.3% to $77.4 million in Q1 2024. However, operating earnings fell significantly to $4.5 million from $8.1 million in the prior-year period, causing the operating margin to contract from 10.4% to 5.8% North America Loss Adjusting Performance | Metric | Q1 2024 | Q1 2023 | | :--- | :--- | :--- | | Revenues before reimbursements | $77.4M | $77.6M | | Operating Earnings | $4.5M | $8.1M | | Operating Margin | 5.8% | 10.4% | [International Operations](index=3&type=section&id=International%20Operations) The International Operations segment reported revenue growth of 6.8% to $98.1 million in Q1 2024. Despite the revenue increase, operating earnings declined to $1.7 million from $3.0 million, with the operating margin decreasing to 1.7% from 3.3% in Q1 2023 International Operations Performance | Metric | Q1 2024 | Q1 2023 | | :--- | :--- | :--- | | Revenues before reimbursements | $98.1M | $91.9M | | Operating Earnings | $1.7M | $3.0M | | Operating Margin | 1.7% | 3.3% | - Revenue growth was partially offset by a negative foreign exchange rate impact of **$0.9 million**[1](index=1&type=chunk) [Broadspire](index=3&type=section&id=Broadspire) The Broadspire segment delivered a strong performance, achieving a new quarterly revenue record of $94.3 million, a 12.2% increase from the prior year. Operating earnings grew substantially to $12.8 million, and the operating margin expanded significantly to 13.6% from 9.4% Broadspire Performance | Metric | Q1 2024 | Q1 2023 | | :--- | :--- | :--- | | Revenues before reimbursements | $94.3M | $84.1M | | Operating Earnings | $12.8M | $7.9M | | Operating Margin | 13.6% | 9.4% | [Platform Solutions](index=3&type=section&id=Platform%20Solutions) Platform Solutions revenues saw a steep decline of 49.2% to $31.9 million, primarily due to the absence of catastrophe-related revenues from Hurricane Ian that were present in Q1 2023. Consequently, operating earnings dropped to $1.1 million from $10.0 million, and the operating margin fell to 3.5% Platform Solutions Performance | Metric | Q1 2024 | Q1 2023 | | :--- | :--- | :--- | | Revenues before reimbursements | $31.9M | $62.8M | | Operating Earnings | $1.1M | $10.0M | | Operating Margin | 3.5% | 15.9% | - The revenue decline was directly related to the absence of approximately **$30 million** in catastrophe revenues from Hurricane Ian claims which did not repeat in Q1 2024[5](index=5&type=chunk)[34](index=34&type=chunk) [Unallocated Corporate and Shared Costs](index=3&type=section&id=Unallocated%20Corporate%20and%20Shared%20Costs%20and%20Credits%2C%20Net) Unallocated corporate costs increased significantly to $8.0 million in Q1 2024, compared to $4.1 million in the same period of 2023. This rise was primarily driven by increases in professional fees, compensation-related costs, and other reserves - Unallocated corporate costs rose to **$8.0 million** in Q1 2024 from **$4.1 million** in Q1 2023, mainly due to higher professional fees, compensation costs, and other reserves[9](index=9&type=chunk) [Financial Condition and Cash Flow](index=4&type=section&id=Balance%20Sheet%20and%20Cash%20Flow) The company's financial condition as of March 31, 2024, showed a decrease in cash and an increase in total debt, while operating activities used significantly more cash compared to the prior year [Balance Sheet](index=4&type=section&id=Balance%20Sheet) The company's balance sheet showed a decrease in cash and cash equivalents to $45.2 million as of March 31, 2024, down from $58.4 million at the end of 2023. Total debt outstanding increased to $230.2 million from $209.1 million over the same period Key Balance Sheet Items | Metric | March 31, 2024 | Dec 31, 2023 | | :--- | :--- | :--- | | Cash and Cash Equivalents | $45.2M | $58.4M | | Total Debt Outstanding | $230.2M | $209.1M | [Cash Flow](index=4&type=section&id=Cash%20Flow) In Q1 2024, the company experienced a net cash usage of $19.8 million from operating activities, a significant increase from the $0.4 million used in Q1 2023. This was primarily driven by lower operating earnings and higher incentive compensation payments - Net cash used in operating activities was **$19.8 million** in Q1 2024, compared to **$0.4 million** used in Q1 2023[16](index=16&type=chunk) - The increased cash usage was attributed to **$11.0 million** lower operating earnings and **$11.2 million** higher incentive compensation payments compared to the prior year[16](index=16&type=chunk) [Capital Allocation](index=4&type=section&id=Capital%20Allocation) During the first quarter of 2024, the company repurchased 85,632 shares of its Class B Common Stock (CRD-B) for a total cost of $0.7 million. No shares were repurchased in the corresponding period of 2023 - The company repurchased **85,632 shares** of CRD-B stock at an average price of **$8.56 per share**, totaling **$0.7 million**[16](index=16&type=chunk) [Non-GAAP Financial Measures](index=4&type=section&id=Non-GAAP%20Presentation) The company presents non-GAAP financial measures, such as Operating Earnings and Adjusted EBITDA, to provide additional insights into core operational performance, with detailed reconciliations to GAAP results [Definition and Reconciliation](index=4&type=section&id=Definition%20and%20Reconciliation) The company utilizes non-GAAP financial measures, such as Operating Earnings and Adjusted EBITDA, to assess operational results. These measures exclude items like amortization of intangible assets, non-service pension costs, and contingent earnout adjustments to provide what management believes is a clearer view of core performance. The report provides detailed reconciliations of these non-GAAP figures to their closest GAAP equivalents, including Net Income and EPS - Operating earnings is a primary performance measure used by management that excludes corporate-wide costs like net interest expense, stock option expense, amortization, non-service pension costs, and income taxes to better assess segment results[18](index=18&type=chunk)[2](index=2&type=chunk) Reconciliation of GAAP to Non-GAAP Adjusted EPS | (per share) | Q1 2024 | Q1 2023 | | :--- | :--- | :--- | | **GAAP Diluted EPS** | **$0.06** | **$0.22** | | Amortization of intangible assets | $0.03 | $0.03 | | Non-service related pension costs | $0.04 | $0.03 | | Contingent earnout adjustments | $0.00 | $0.00 | | **Non-GAAP Adjusted Diluted EPS** | **$0.13** | **$0.28** | Reconciliation of Net Income to Adjusted EBITDA (in thousands) | Line Item | Q1 2024 | Q1 2023 | | :--- | :--- | :--- | | **Net Income Attributable to Shareholders** | **$2,837** | **$10,681** | | 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** | [Consolidated Financial Statements](index=11&type=section&id=Consolidated%20Financial%20Statements) The consolidated financial statements for Q1 2024 reflect a significant decline in net income, a decrease in total assets, and substantial cash usage from operating activities [Condensed Consolidated Statements of Operations](index=11&type=section&id=CRAWFORD%20%26%20COMPANY%20CONDENSED%20CONSOLIDATED%20STATEMENTS%20OF%20OPERATIONS%20Unaudited) For the first quarter of 2024, total revenues decreased by 5% to $313.1 million. A 16% increase in Selling, General, and Administrative Expenses contributed to a 76% decline in Income Before Income Taxes, which fell to $3.8 million. Consequently, Net Income Attributable to Shareholders dropped 73% to $2.8 million Q1 2024 Statement of Operations Summary (in thousands) | Metric | Q1 2024 | Q1 2023 | % Change | | :--- | :--- | :--- | :--- | | Revenues Before Reimbursements | $301,654 | $316,334 | (5)% | | Total Revenues | $313,073 | $327,938 | (5)% | | SG&A Expenses | $77,320 | $66,711 | 16% | | Income Before Income Taxes | $3,826 | $16,001 | (76)% | | Net Income Attributable to Shareholders | $2,837 | $10,681 | (73)% | [Condensed Consolidated Balance Sheets](index=12&type=section&id=CRAWFORD%20%26%20COMPANY%20CONDENSED%20CONSOLIDATED%20BALANCE%20SHEETS) As of March 31, 2024, the company's total assets stood at $776.3 million, a decrease from $799.2 million at the end of 2023. Total liabilities were $633.0 million, and total shareholders' investment was $143.2 million, up from $139.8 million at year-end 2023 Balance Sheet Summary (in thousands) | Metric | March 31, 2024 | Dec 31, 2023 | | :--- | :--- | :--- | | Total Assets | $776,277 | $799,199 | | Total Liabilities | $633,039 | $659,368 | | Total Shareholders' Investment | $143,238 | $139,831 | [Condensed Consolidated Statements of Cash Flows](index=14&type=section&id=CRAWFORD%20%26%20COMPANY%20CONDENSED%20CONSOLIDATED%20STATEMENTS%20OF%20CASH%20FLOWS) For the first quarter ended March 31, 2024, net cash used in operating activities was $19.8 million. Investing activities used $9.6 million, primarily for software capitalization. Financing activities provided $16.1 million in cash, largely from increased borrowings. This resulted in a net decrease in cash of $12.9 million for the period Cash Flow Summary (in thousands) | Metric | Q1 2024 | Q1 2023 | | :--- | :--- | :--- | | Net cash used in operating activities | ($19,803) | ($445) | | Net cash used in investing activities | ($9,550) | ($8,641) | | Net cash provided by financing activities | $16,073 | $5,187 | | **Decrease in cash and cash equivalents** | **($12,886)** | **($2,704)** |

[PART I](index=2&type=section&id=PART%20I) [Item 1. Business](index=4&type=section&id=Item%201.%20Business) Crawford & Company is a global leader in claims management and outsourcing solutions, operating across four main segments worldwide 2023 Revenue Contribution by Segment | Segment | Revenue Contribution (before reimbursements) | | :--- | :--- | | North America Loss Adjusting | 23.9% | | International Operations | 30.2% | | Broadspire | 28.1% | | Platform Solutions | 17.8% | - The company delivers claims management and outsourcing solutions to carriers, brokers, and corporations through a global network serving clients in more than 70 countries[546](index=546&type=chunk) - As of December 31, 2023, the company had approximately **10,200 employees**, with women comprising **57% of the global workforce**, **28% of country-president roles**, and **51% of people management roles**[599](index=599&type=chunk) - The company's culture is defined by its RESTORE values: Respect, Empowerment, Sustainability, Training, One Crawford, Recognition, and Entrepreneurial Spirit[573](index=573&type=chunk) [Item 1A. Risk Factors](index=10&type=section&id=Item%201A.%20Risk%20Factors) The company faces diverse risks including unpredictable claim volumes, client concentration, cybersecurity threats, underfunded pension obligations, and competitive market pressures - The company's revenue is highly dependent on unpredictable claim volumes, influenced by factors like weather events, insurance outsourcing trends, and economic conditions[609](index=609&type=chunk)[641](index=641&type=chunk) - A material portion of revenues is derived from a limited number of clients within the Platform Solutions and International Operations segments, posing a concentration risk[581](index=581&type=chunk)[642](index=642&type=chunk) - The company is subject to increasingly frequent and complex cybersecurity attacks, where a security breach could compromise sensitive consumer data, leading to business loss, legal liability, and reputational damage[612](index=612&type=chunk)[613](index=613&type=chunk)[583](index=583&type=chunk) - The U.S. qualified defined benefit pension plan is underfunded by **$22.3 million**, and future funding requirements could restrict cash available for operations and investments[253](index=253&type=chunk)[254](index=254&type=chunk) - The company's credit facility contains covenants requiring compliance with financial ratios like maximum leverage and minimum interest coverage, where failure to comply could result in the acceleration of outstanding debt[151](index=151&type=chunk)[256](index=256&type=chunk)[6](index=6&type=chunk) [Item 1C. Cybersecurity](index=19&type=section&id=Item%201C.%20Cybersecurity) The company manages cybersecurity risks through a global program aligned with NIST, overseen by the CISO and Audit Committee, with no material incidents in the last three years - The company has a global cybersecurity and privacy program to assess, identify, and manage cybersecurity risks, utilizing the NIST Cybersecurity Framework[177](index=177&type=chunk) - Cybersecurity governance involves a CISO, CIO, CPO, a Cybersecurity and Privacy Council of senior management, and primary oversight from the Audit Committee of the Board of Directors[185](index=185&type=chunk)[186](index=186&type=chunk) - Cybersecurity risks are integrated into the global Enterprise Risk Management (ERM) program, with regular reporting to the Audit and Governance Committees[179](index=179&type=chunk)[183](index=183&type=chunk) - In the last three fiscal years, the company has not experienced any material cybersecurity incidents, and related expenses have been immaterial[184](index=184&type=chunk) [PART II](index=22&type=section&id=PART%20II) [Item 5. Market for the Registrant's Common Equity, Related Shareholder Matters, and Issuer Purchases of Equity Securities](index=22&type=section&id=Item%205.%20Market%20for%20the%20Registrant's%20Common%20Equity,%20Related%20Shareholder%20Matters,%20and%20Issuer%20Purchases%20of%20Equity%20Securities) The company's NYSE-traded Class A and B common stocks underperformed key indices over five years, with an active share repurchase program in place Comparison of Five-Year Cumulative Total Return | Company / Index | 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Crawford & Company (Class A) | 100.00 | 132.56 | 87.61 | 91.11 | 69.89 | 170.78 | | Crawford & Company (Class B) | 100.00 | 115.15 | 83.62 | 89.32 | 65.60 | 167.05 | | S&P 500 Index | 100.00 | 131.49 | 155.68 | 200.38 | 164.09 | 207.23 | | S&P Property-Casualty Insurance Index | 100.00 | 125.87 | 133.84 | 157.27 | 186.95 | 207.05 | - As of December 31, 2023, the company had remaining authorization to repurchase **1,499,419 shares** of its common stock through December 31, 2024[97](index=97&type=chunk) [Item 7. Management's Discussion and Analysis of Financial Condition and Results of Operations](index=24&type=section&id=Item%207.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) This section analyzes the company's financial condition and operational results, covering segment performance, liquidity, capital resources, and critical accounting policies [Executive Summary](index=26&type=section&id=Executive%20Summary) Consolidated revenues grew 6.5% to $1.267 billion in 2023, with net income recovering to $30.6 million from a prior year loss due to goodwill impairment Consolidated Revenues Before Reimbursements (in thousands) | Segment | 2023 | 2022 | Variance (%) | | :--- | :--- | :--- | :--- | | North America Loss Adjusting | $303,629 | $274,755 | 10.5% | | International Operations | $382,393 | $357,452 | 7.0% | | Broadspire | $355,650 | $313,564 | 13.4% | | Platform Solutions | $225,459 | $243,711 | (7.5)% | | **Total** | **$1,267,131** | **$1,189,482** | **6.5%** | - Net income attributable to the company was **$30.6 million** in 2023, compared to a net loss of **$(18.3) million** in 2022, which included a non-cash goodwill impairment of **$36.8 million**[675](index=675&type=chunk)[707](index=707&type=chunk) - Total cases received decreased by **5.0%** in 2023, primarily due to a reduction in high-frequency, low-severity cases that generated minimal revenue in 2022[709](index=709&type=chunk)[710](index=710&type=chunk) [Results of Operations](index=32&type=section&id=Results%20of%20Operations) This section provides a detailed comparative analysis of the company's segment-level operational performance, including revenues, expenses, and operating earnings [Liquidity, Capital Resources, and Financial Condition](index=60&type=section&id=Liquidity,%20Capital%20Resources,%20and%20Financial%20Condition) The company's liquidity improved in 2023 with increased operating cash flow and compliance with debt covenants, maintaining $290.5 million in total liquidity Cash Flow Summary (in millions) | Cash Flow Activity | 2023 | 2022 | 2021 | | :--- | :--- | :--- | :--- | | **Net cash provided by operating activities** | **$103.8** | **$27.6** | **$54.3** | | Net cash used in investing activities | $(36.6) | $(57.9) | $(70.8) | | Net cash (used in) provided by financing activities | $(54.7) | $25.9 | $24.7 | - The company's Credit Facility consists of a **$450 million** revolving credit facility maturing in November 2026, with **$209.1 million** outstanding and **$232.1 million** of available borrowing capacity at December 31, 2023[256](index=256&type=chunk)[123](index=123&type=chunk)[553](index=553&type=chunk) Key Debt Covenant Ratios | Ratio | Dec 31, 2023 | Dec 31, 2022 | Requirement | | :--- | :--- | :--- | :--- | | **Leverage Ratio** | 1.60 | 2.16 | Not > 4.50 to 1.00 | | **Interest Coverage Ratio** | 5.99 | 9.70 | Not < 2.50 to 1.00 | - Total liquidity at December 31, 2023 was **$290.5 million**, comprising **$58.4 million** of cash on hand and **$232.1 million** of additional borrowing capacity[160](index=160&type=chunk) [Critical Accounting Policies and Estimates](index=66&type=section&id=Critical%20Accounting%20Policies%20and%20Estimates) Critical accounting policies involve significant estimates for revenue recognition, goodwill valuation, defined benefit pension plans, credit losses, and deferred tax assets - For lifetime claim handling arrangements, revenue is deferred and recognized over the expected service period based on historical claim closing rates, where a **1.0%** change would have impacted 2023 revenues by approximately **$0.5 million**[202](index=202&type=chunk)[203](index=203&type=chunk) - Goodwill is tested for impairment annually using income and market approaches, with key assumptions for the 2023 test including discount rates of **12.0%-13.5%** and a terminal growth rate of **2.0%**, resulting in no impairment in 2023 but a **$36.8 million** impairment in 2022[221](index=221&type=chunk)[224](index=224&type=chunk)[225](index=225&type=chunk) - Pension expense is highly sensitive to assumptions, where a **0.50%** change in the expected return on plan assets would have impacted 2023 pretax income by approximately **$2.2 million**, and a **0.25%** change in the discount rate would have impacted the benefit obligation by **$9.3 million**[237](index=237&type=chunk) - The company maintains a valuation allowance of **$29.6 million** against certain deferred tax assets, primarily related to net operating loss carryforwards in international and domestic operations, as of December 31, 2023[241](index=241&type=chunk) [Item 7A. Quantitative and Qualitative Disclosures About Market Risk](index=73&type=section&id=Item%207A.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) The company faces market risks from foreign currency fluctuations, interest rate changes affecting debt and pensions, and inflation impacting operating costs - Revenues from international operations were **37.8%** of consolidated revenues in 2023, where a hypothetical **10%** change in foreign currency exchange rates would have impacted 2023 consolidated pretax income by approximately **$1.2 million**[277](index=277&type=chunk)[278](index=278&type=chunk) - The company has market risk exposure from variable-rate debt, where a **1.00%** average change in market interest rates would have changed 2023 pretax interest expense by **$2.1 million**[308](index=308&type=chunk) - Pension obligations are sensitive to interest rate changes, where a **0.25%** change in the discount rate would have altered the projected benefit obligations of the U.S. and U.K. plans by approximately **$9.3 million** at year-end 2023[279](index=279&type=chunk) - Inflation poses a risk by increasing expenses for labor and other operating costs, which could pressure profitability if these costs cannot be passed through to customers[280](index=280&type=chunk)[309](index=309&type=chunk) [Item 8. Financial Statements and Supplementary Data](index=76&type=section&id=Item%208.%20Financial%20Statements%20and%20Supplementary%20Data) This section presents the company's audited consolidated financial statements for 2021-2023, including statements of operations, balance sheets, cash flows, and detailed notes Consolidated Statements of Operations Highlights (in thousands) | Line Item | 2023 | 2022 | 2021 | | :--- | :--- | :--- | :--- | | Total Revenues | $1,316,919 | $1,231,226 | $1,139,231 | | Goodwill Impairment | $0 | $36,808 | $0 | | Income Before Income Taxes | $47,357 | $5,046 | $43,864 | | Net Income (Loss) Attributable to Shareholders | $30,609 | $(18,305) | $30,692 | | Diluted EPS (Class A) | $0.61 | $(0.37) | $0.57 | Consolidated Balance Sheets Highlights (in thousands) | Line Item | Dec 31, 2023 | Dec 31, 2022 | | :--- | :--- | :--- | | Total Current Assets | $369,346 | $351,267 | | Goodwill | $76,724 | $76,622 | | Total Assets | $799,199 | $791,507 | | Total Current Liabilities | $299,292 | $279,487 | | Long-term debt and finance leases | $194,335 | $211,810 | | Total Shareholders' Investment | $139,831 | $123,378 | | Total Liabilities and Shareholders' Investment | $799,199 | $791,507 | [Notes to Consolidated Financial Statements](index=84&type=section&id=Notes%20to%20Consolidated%20Financial%20Statements) These notes provide detailed disclosures on accounting policies, business acquisitions, segment information, debt, income taxes, and fair value measurements

Financial Performance - Revenues before reimbursements for 2023 reached $1.267 billion, a 7% increase from $1.189 billion in 2022[18] - Net income attributable to shareholders was $30.6 million, compared to a loss of $(18.3) million in 2022[18] - Diluted earnings per share were $0.61 for CRD-A and $0.62 for CRD-B, compared to a diluted loss per share of $(0.37) for both classes in 2022[18] - Total revenues for 2023 reached $1.27 billion, a 7% increase from $1.19 billion in 2022[41] - Net income attributable to shareholders for 2023 was $47.0 million, compared to $33.4 million in 2022, representing a 40% increase[41] - Diluted earnings per share on a non-GAAP basis increased to $0.95 in 2023 from $0.67 in 2022, a 42% rise[41] - Consolidated operating earnings for the year ended December 2023 were $85,361 thousand, compared to $61,879 thousand for the year ended December 2022, representing an increase of 37.9%[31] - Adjusted EBITDA for the year ended December 2023 was $118,713 thousand, up from $94,743 thousand in the previous year, indicating a growth of 25.3%[32] Revenue Breakdown - North America Loss Adjusting revenues before reimbursements were $69.7 million in Q4 2023, down 10.3% from $77.7 million in Q4 2022[20] - North America Loss Adjusting revenues before reimbursements increased by 10.5% to $303.6 million in 2023[43] - International Operations revenues before reimbursements grew by 7.0% to $382.4 million in 2023, including $1.5 million from the Van Dijk acquisition[44] - Broadspire segment revenues before reimbursements increased by 13.4% to $355.7 million in 2023[45] - Platform Solutions revenues before reimbursements decreased by 7.5% to $225.5 million in 2023[46] - The U.S. market contributed $176,087 thousand in revenues for the three months ended December 2023, accounting for 59.5% of total revenues[31] - The U.K. market saw revenues of $37,214 thousand, representing 12.6% of total revenues for the same period, an increase from 9.0% in the previous year[31] Cash Flow and Assets - The company's operations generated $103.8 million in cash during 2023, compared to $27.6 million in 2022[28] - The improvement in cash provided by operating activities was primarily due to a $58.4 million enhancement in billed and unbilled accounts receivables[28] - The consolidated cash and cash equivalents position as of December 31, 2023, was $58.4 million, an increase from $46.0 million at the end of 2022[51] - Free cash flow for the twelve months ended December 31, 2023, was $67.2 million, a significant improvement from a negative free cash flow of $(6.9) million in 2022[55] - Cash dividends per share for Class A and Class B common stock increased by 17% to $0.07 from $0.06[71] - Cash, cash equivalents, and restricted cash at the end of the period increased to $59,545 million from $46,645 million at the beginning of the year[74] Expenses and Liabilities - Total current liabilities increased to $299.3 million in 2023 from $279.5 million in 2022[8] - Selling, general, and administrative expenses increased by 20% to $74,877 million from $62,528 million in the previous year[71] - Total costs and expenses decreased by 2% to $308,674 million compared to $315,999 million in the prior year[71] - Non-service pension costs and credits for the three months ended December 2023 were $2,165 thousand, compared to no costs reported in the same period last year[32] - Non-service pension costs increased to $8.6 million in 2023 compared to a credit of $(1.6) million in 2022, indicating a significant rise in pension-related expenses[50] Shareholder Returns and Equity - The company repurchased 293,952 shares of CRD-B at an average cost of $9.30 per share, totaling $2.7 million in 2023[28] - The company did not recognize any goodwill impairment in 2023, contrasting with a $36.8 million charge in 2022[48] - Goodwill impairment for the year ended December 2023 was reported as $0 thousand, compared to $36,808 thousand in the previous year, indicating a significant reduction[34] - The company experienced a significant reduction in unallocated corporate costs, which rose to $19.4 million in 2023 from $7.1 million in 2022[47] Market Presence - The company operates in over 70 countries, providing claims management and outsourcing solutions to insurance companies and self-insured entities[35]

[Part I. Financial Information](index=2&type=section&id=Part%20I.%20Financial%20Information) This section presents the company's core financial statements, management's analysis, market risk disclosures, and controls [Item 1. Financial Statements](index=3&type=section&id=Item%201.%20Financial%20Statements) Presents unaudited condensed consolidated financial statements for Q3 and nine months ended September 30, 2023 and 2022, with detailed notes [Condensed Consolidated Statements of Operations](index=3&type=section&id=Condensed%20Consolidated%20Statements%20of%20Operations) The company shifted from a net loss to net income in Q3 and nine months 2023, driven by revenue growth and no goodwill impairment Q3 2023 vs Q3 2022 Statement of Operations (in thousands) | Metric | Three Months Ended Sep 30, 2023 | Three Months Ended Sep 30, 2022 | Change (%) | | :--- | :--- | :--- | :--- | | **Total Revenues** | $337,660 | $306,417 | 10.2% | | Total Costs and Expenses | $316,511 | $335,420 | (5.6%) | | Goodwill Impairment | $0 | $36,808 | N/A | | Income (Loss) Before Income Taxes | $18,955 | $(28,538) | N/A | | **Net Income (Loss)** | **$12,174** | **$(15,252)** | **N/A** | | EPS - Diluted (Class A) | $0.25 | $(0.31) | N/A | Nine Months 2023 vs 2022 Statement of Operations (in thousands) | Metric | Nine Months Ended Sep 30, 2023 | Nine Months Ended Sep 30, 2022 | Change (%) | | :--- | :--- | :--- | :--- | | **Total Revenues** | $995,994 | $897,858 | 10.9% | | Total Costs and Expenses | $940,956 | $911,743 | 3.2% | | Goodwill Impairment | $0 | $36,808 | N/A | | Income (Loss) Before Income Taxes | $48,507 | $(12,351) | N/A | | **Net Income (Loss)** | **$31,249** | **$(4,259)** | **N/A** | | EPS - Diluted (Class A) | $0.63 | $(0.08) | N/A | [Condensed Consolidated Balance Sheets](index=7&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) Total assets and shareholders' investment increased as of September 30, 2023, driven by receivables, software costs, and net income Consolidated Balance Sheet Highlights (in thousands) | Account | Sep 30, 2023 | Dec 31, 2022 | | :--- | :--- | :--- | | **Total Current Assets** | $379,991 | $351,267 | | **Total Assets** | **$827,191** | **$791,507** | | Total Current Liabilities | $290,681 | $279,487 | | Total Noncurrent Liabilities | $373,540 | $388,642 | | **Total Liabilities** | **$664,221** | **$668,129** | | **Total Shareholders' Investment** | **$162,970** | **$123,378** | [Condensed Consolidated Statements of Cash Flows](index=9&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) Operating cash flow significantly improved to positive in nine months 2023, driven by higher net income and working capital changes Cash Flow Summary for Nine Months Ended Sep 30 (in thousands) | Cash Flow Activity | 2023 | 2022 | | :--- | :--- | :--- | | Net cash provided by (used in) operating activities | $68,077 | $(16,195) | | Net cash used in investing activities | $(27,683) | $(48,193) | | Net cash (used in) provided by financing activities | $(38,070) | $46,931 | | **Increase (Decrease) in Cash** | **$3,637** | **$(19,808)** | [Notes to Condensed Consolidated Financial Statements](index=12&type=section&id=Notes%20to%20Condensed%20Consolidated%20Financial%20Statements) Notes detail accounting policies, segment performance, income tax, and acquisitions, covering four reportable segments - The company operates four reportable segments: North America Loss Adjusting, International Operations, Broadspire, and Platform Solutions; **operating earnings** is the primary measure for segment performance[105](index=105&type=chunk)[82](index=82&type=chunk) Segment Revenues Before Reimbursements (in thousands) | Segment | Q3 2023 | Q3 2022 | Nine Months 2023 | Nine Months 2022 | | :--- | :--- | :--- | :--- | :--- | | North America Loss Adjusting | $79,390 | $66,822 | $232,344 | $197,035 | | International Operations | $98,066 | $86,066 | $285,241 | $269,048 | | Broadspire | $88,299 | $78,381 | $253,369 | $234,949 | | Platform Solutions | $59,839 | $63,655 | $188,297 | $166,262 | | **Total** | **$325,594** | **$294,924** | **$959,251** | **$867,294** | Segment Operating Earnings (Loss) (in thousands) | Segment | Q3 2023 | Q3 2022 | Nine Months 2023 | Nine Months 2022 | | :--- | :--- | :--- | :--- | :--- | | North America Loss Adjusting | $10,468 | $3,750 | $22,433 | $10,533 | | International Operations | $2,197 | $(3,922) | $8,974 | $(7,648) | | Broadspire | $13,532 | $6,198 | $29,607 | $20,299 | | Platform Solutions | $8,523 | $10,080 | $26,595 | $22,714 | | **Total** | **$34,720** | **$16,106** | **$87,609** | **$45,898** | - In Q3 2022, the company recognized a pretax **goodwill impairment of $36.8 million** related to International Operations, North America Loss Adjusting, and Platform Solutions; no impairment was recorded in 2023[80](index=80&type=chunk) [Management's Discussion and Analysis of Financial Condition and Results of Operations (MD&A)](index=27&type=section&id=Item%202.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management discusses financial results, highlighting revenue growth across key segments, detailed segment performance, liquidity, capital resources, and pension plans - Consolidated revenues before reimbursements increased **10.4% in Q3 2023** and **10.6% in the first nine months of 2023**; excluding foreign currency, nine-month growth was **12.5%**[150](index=150&type=chunk)[124](index=124&type=chunk) - Total cases received decreased **1.6% in Q3 2023** and **5.1% year-to-date**, attributed to a reduction of approximately **65,000 high-frequency, low-severity cases** from 2022, indicating an improved revenue mix[124](index=124&type=chunk)[125](index=125&type=chunk) [Segment Performance Analysis](index=35&type=section&id=Segment%20Performance%20Analysis) Segment performance showed broad strength, with North America Loss Adjusting, International Operations, and Broadspire achieving significant operating earnings growth - **North America Loss Adjusting:** Q3 operating earnings surged to **$10.5 million** from **$3.8 million** YoY, with operating margin expanding from **5.6% to 13.2%**, driven by strong U.S. revenue growth and improved staff utilization[180](index=180&type=chunk) - **International Operations:** Achieved a significant turnaround, posting Q3 operating earnings of **$2.2 million** compared to a loss of **$(3.9) million** YoY, driven by increased revenues and cost-cutting measures[190](index=190&type=chunk) - **Broadspire:** Q3 operating earnings more than doubled to **$13.5 million** from **$6.2 million** YoY, with operating margin increasing from **7.9% to 15.3%**, attributed to new client programs and pricing improvements[211](index=211&type=chunk) - **Platform Solutions:** Q3 operating earnings decreased to **$8.5 million** from **$10.1 million** YoY due to Networks service line revenue reduction, but year-to-date operating earnings grew **17.1% to $26.6 million**[239](index=239&type=chunk) [Liquidity, Capital Resources, and Financial Condition](index=48&type=section&id=Liquidity%2C%20Capital%20Resources%2C%20and%20Financial%20Condition) The company maintains a strong liquidity position with $281.2 million total liquidity and significantly improved operating cash flow - Total liquidity as of September 30, 2023, was **$281.2 million**, comprising **$49.2 million in cash** and **$232.0 million in available borrowing capacity**[262](index=262&type=chunk) - Cash provided by operating activities for the first nine months of 2023 was **$68.1 million**, a significant improvement from **$16.2 million used** in the same period of 2022, driven by higher earnings and better working capital management[283](index=283&type=chunk) - Total borrowings decreased by **$20.5 million** to **$218.4 million** at September 30, 2023, from **$238.9 million** at December 31, 2022[262](index=262&type=chunk) [Quantitative and Qualitative Disclosures About Market Risk](index=50&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) The company reports that its exposures to market risk have not materially changed since the disclosures made in its Annual Report on Form 10-K for the year ended December 31, 2022 - There have been **no material changes** in the Company's market risk exposures since December 31, 2022[292](index=292&type=chunk) [Controls and Procedures](index=50&type=section&id=Item%204.%20Controls%20and%20Procedures) Disclosure controls and procedures were deemed ineffective due to a material weakness in IT general controls within U.K. operations, with a remediation plan in progress - Disclosure controls and procedures were deemed **not effective** as of September 30, 2023, due to a **material weakness** in internal control over financial reporting[266](index=266&type=chunk) - The material weakness relates to **ineffective IT general controls** in change management and logical access over certain IT systems in U.K. operations[266](index=266&type=chunk) - Management is implementing a remediation plan, including improved documentation, enhanced training, and automated tools, expected to be completed during fiscal year 2023[267](index=267&type=chunk)[294](index=294&type=chunk) [Part II. Other Information](index=52&type=section&id=Part%20II.%20Other%20Information) This section provides other required disclosures, including risk factors, equity sales, and exhibit listings [Risk Factors](index=52&type=section&id=Item%201A.%20Risk%20Factors) The company refers investors to the risk factors detailed in its Annual Report on Form 10-K for the year ended December 31, 2022, noting that those factors could materially affect its business, financial condition, or results of operations - There are **no new risk factors** presented in this report; the company directs stakeholders to those discussed in its 2022 Annual Report on Form 10-K[269](index=269&type=chunk)[297](index=297&type=chunk) [Unregistered Sales of Equity Securities and Use of Proceeds](index=52&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) This section provides details on the company's stock repurchase activities during the third quarter of 2023. The company repurchased a total of 63,103 shares of its Class B Common Stock (CRD-B) under its publicly announced repurchase program Share Repurchases in Q3 2023 | Period | Class | Total Shares Purchased | Average Price Paid Per Share | | :--- | :--- | :--- | :--- | | July 2023 | CRD-B | 0 | N/A | | August 2023 | CRD-B | 9,637 | $9.14 | | September 2023 | CRD-B | 53,466 | $9.25 | | **Total Q3 2023** | **CRD-B** | **63,103** | **$9.23 (approx.)** | - As of September 30, 2023, the company had **1,730,268 shares remaining** for repurchase under its authorized program, extending through December 31, 2024[298](index=298&type=chunk)[270](index=270&type=chunk) [Exhibits](index=53&type=section&id=Item%206.%20Exhibits) This section lists all the exhibits filed with the Form 10-Q, which include officer certifications as required by the Sarbanes-Oxley Act and various Interactive Data Files (XBRL) - The exhibits filed include certifications from the CEO and CFO pursuant to Sections 302 and 906 of the Sarbanes-Oxley Act, as well as Inline XBRL documents[271](index=271&type=chunk)[299](index=299&type=chunk)[306](index=306&type=chunk)

[Part I. Financial Information](index=3&type=section&id=Part%20I.%20Financial%20Information) [Financial Statements](index=3&type=section&id=Item%201.%20Financial%20Statements) Crawford & Company reported increased revenues and net income for Q2 and H1 2023, with improved operating cash flow and asset growth [Condensed Consolidated Statements of Operations](index=3&type=section&id=Condensed%20Consolidated%20Statements%20of%20Operations) Q2 2023 vs Q2 2022 Financial Performance (in thousands, except EPS) | Metric | Q2 2023 | Q2 2022 | | :--- | :--- | :--- | | **Total Revenues** | $333,738 | $303,651 | | Income Before Income Taxes | $13,551 | $8,605 | | **Net Income Attributable to Shareholders** | $8,427 | $5,830 | | Diluted EPS (Class A & B) | $0.17 | $0.12 | Six Months Ended June 30, 2023 vs 2022 Financial Performance (in thousands, except EPS) | Metric | H1 2023 | H1 2022 | | :--- | :--- | :--- | | **Total Revenues** | $658,334 | $591,440 | | Income Before Income Taxes | $29,552 | $16,187 | | **Net Income Attributable to Shareholders** | $19,108 | $10,926 | | Diluted EPS (Class A & B) | $0.39 | $0.22 | [Condensed Consolidated Balance Sheets](index=6&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) Balance Sheet Summary (in thousands) | Account | June 30, 2023 | Dec 31, 2022 | | :--- | :--- | :--- | | **Total Current Assets** | $375,129 | $351,267 | | **Total Assets** | $821,774 | $791,507 | | **Total Current Liabilities** | $289,343 | $279,487 | | Long-term debt and finance leases | $212,217 | $211,810 | | **Total Liabilities** | $671,879 | $668,129 | | **Total Shareholders' Investment** | $149,895 | $123,378 | [Condensed Consolidated Statements of Cash Flows](index=8&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) Cash Flow Summary for Six Months Ended June 30 (in thousands) | Cash Flow Category | 2023 | 2022 | | :--- | :--- | :--- | | Net cash provided by (used in) operating activities | $27,169 | $(12,752) | | Net cash used in investing activities | $(17,945) | $(38,593) | | Net cash (used in) provided by financing activities | $(8,478) | $46,132 | | **Increase (Decrease) in Cash** | $1,808 | $(6,613) | [Notes to Condensed Consolidated Financial Statements](index=10&type=section&id=Notes%20to%20Condensed%20Consolidated%20Financial%20Statements) The notes detail accounting policies, segment revenue recognition, and an increased effective tax rate due to international losses - The company operates through four reportable segments: North America Loss Adjusting, International Operations, Broadspire, and Platform Solutions[30](index=30&type=chunk)[77](index=77&type=chunk) Q2 2023 Segment Revenues before Reimbursements (in thousands) | Segment | Q2 2023 | Q2 2022 | | :--- | :--- | :--- | | North America Loss Adjusting | $75,827 | $65,775 | | International Operations | $95,312 | $93,710 | | Broadspire | $83,888 | $80,114 | | Platform Solutions | $65,638 | $53,746 | Q2 2023 Segment Operating Earnings (in thousands) | Segment | Q2 2023 | Q2 2022 | | :--- | :--- | :--- | | North America Loss Adjusting | $3,900 | $2,649 | | International Operations | $3,742 | $(661) | | Broadspire | $8,148 | $7,667 | | Platform Solutions | $8,106 | $4,596 | - The effective tax rate for Q2 2023 was **38.4%**, up from **32.2%** in Q2 2022, primarily due to losses in certain international operations. For the six-month period, the rate was **35.5%** in 2023 compared to **32.1%** in 2022[59](index=59&type=chunk)[60](index=60&type=chunk) [Management's Discussion and Analysis of Financial Condition and Results of Operations](index=24&type=section&id=Item%202.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management reported strong Q2 2023 revenue growth across all segments, improved operating earnings, and robust liquidity, while addressing an IT control material weakness [Business Overview](index=25&type=section&id=Business%20Overview) - Crawford & Company is a global provider of claims management and outsourcing solutions to insurance companies and self-insured entities, serving clients in over 70 countries[100](index=100&type=chunk) - The company's business is structured into four reportable segments: North America Loss Adjusting, International Operations, Broadspire, and Platform Solutions[101](index=101&type=chunk)[104](index=104&type=chunk) [Results of Operations](index=26&type=section&id=Results%20of%20Operations) Consolidated revenues grew **9.3%** in Q2 2023, with all segments contributing to increased operating earnings, notably International Operations' recovery Q2 2023 Revenue Growth Before Reimbursements | Segment | Revenue Growth (Actual) | Revenue Growth (Constant Currency) | | :--- | :--- | :--- | | North America Loss Adjusting | 15.3% | 17.2% | | International Operations | 1.7% | 8.3% | | Broadspire | 4.7% | 4.7% | | Platform Solutions | 22.1% | 22.1% | | **Total** | **9.3%** | **11.9%** | - Overall cases received decreased by **6.9%** in Q2 2023, primarily due to a reduction of approximately **32,000** high-frequency, low-severity cases that generated minimal revenue in Q2 2022[108](index=108&type=chunk)[109](index=109&type=chunk) - Selling, general, and administrative (SG&A) expenses increased by **1.8%** in Q2 2023, mainly due to higher compensation expense, including incentive compensation[110](index=110&type=chunk) [Liquidity, Capital Resources, and Financial Condition](index=44&type=section&id=Liquidity%2C%20Capital%20Resources%2C%20and%20Financial%20Condition) The company maintained strong liquidity of **$245.8 million** as of June 30, 2023, with operating cash flow significantly improving to **$27.2 million** in H1 2023 - Total liquidity at June 30, 2023, was **$245.8 million**, comprising **$47.5 million** in cash and **$198.3 million** in additional borrowing capacity under the Credit Facility[190](index=190&type=chunk) - Cash provided by operating activities improved to **$27.2 million** in H1 2023 from a use of **$12.8 million** in H1 2022, mainly due to increased net income and improved working capital[186](index=186&type=chunk) - The company made no share repurchases in H1 2023, compared to **$26.7 million** in H1 2022. Dividend payments were **$5.9 million** in H1 2023[188](index=188&type=chunk)[194](index=194&type=chunk) [Quantitative and Qualitative Disclosures About Market Risk](index=45&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) The company reports no material changes to its market risk exposures since December 31, 2022 - There have been no material changes in the Company's market risk exposures since December 31, 2022[201](index=201&type=chunk) [Controls and Procedures](index=46&type=section&id=Item%204.%20Controls%20and%20Procedures) Disclosure controls were deemed ineffective due to a material weakness in U.K. IT general controls, with remediation efforts underway for completion in fiscal 2023 - Disclosure controls and procedures were deemed not effective as of June 30, 2023, due to a material weakness in internal control over financial reporting[203](index=203&type=chunk) - The material weakness stems from ineffective IT general controls (ITGCs) in the U.K. operations related to change management and logical access over certain IT systems[204](index=204&type=chunk) - A remediation plan is in progress, focusing on improving documentation, enhancing training, and implementing automated tools. The company expects to complete the remediation during fiscal year 2023[207](index=207&type=chunk)[208](index=208&type=chunk) [Part II. Other Information](index=49&type=section&id=Part%20II.%20Other%20Information) [Risk Factors](index=49&type=section&id=Item%201A.%20Risk%20Factors) No new or materially changed risk factors are reported, referring to those disclosed in the prior Annual Report on Form 10-K - There are no material changes to the risk factors previously disclosed in the company's Annual Report on Form 10-K for the year ended December 31, 2022[211](index=211&type=chunk) [Unregistered Sales of Equity Securities and Use of Proceeds](index=49&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) The company made no share repurchases in Q2 2023, retaining authorization to repurchase **1,793,371** additional shares through December 31, 2023 - The company did not purchase any of its own shares during the three months ended June 30, 2023[213](index=213&type=chunk) - As of June 30, 2023, the company was authorized to repurchase up to **1,793,371** additional shares under its 2021 Repurchase Authorization, which is effective through December 31, 2023[212](index=212&type=chunk)[213](index=213&type=chunk) [Exhibits](index=50&type=section&id=Item%206.%20Exhibits) This section lists exhibits filed with the Form 10-Q, including Credit Agreement amendments, auditor letters, and SOX certifications - Key exhibits filed include the First Amendment to the Credit Agreement, Sarbanes-Oxley Act certifications by the CEO and CFO, and various Inline XBRL data files[214](index=214&type=chunk)

[Part I. Financial Information](index=3&type=section&id=Part%20I.%20Financial%20Information) This section presents Crawford & Company's unaudited condensed consolidated financial statements and related disclosures for the first quarter of 2023 [Item 1. Financial Statements](index=3&type=section&id=Item%201.%20Financial%20Statements) Crawford & Company reported significantly increased profitability and revenue growth in Q1 2023, with improved cash flow and a stronger balance sheet [Condensed Consolidated Statements of Operations](index=3&type=section&id=Condensed%20Consolidated%20Statements%20of%20Operations) Net income more than doubled to $10.7 million in Q1 2023, driven by a 12.8% increase in total revenues outpacing expense growth Q1 2023 vs Q1 2022 Statement of Operations Highlights | Metric | Q1 2023 (in thousands) | Q1 2022 (in thousands) | YoY Change | | :--- | :--- | :--- | :--- | | Total Revenues | $324,596 | $287,789 | +12.8% | | Total Costs and Expenses | $306,450 | $280,705 | +9.2% | | Income Before Income Taxes | $16,001 | $7,582 | +111.0% | | Net Income | $10,730 | $5,156 | +108.1% | | Diluted EPS (Class A & B) | $0.22 | $0.10 | +120.0% | [Condensed Consolidated Statements of Comprehensive Income](index=4&type=section&id=Condensed%20Consolidated%20Statements%20of%20Comprehensive%20Income) Comprehensive income surged to $20.5 million in Q1 2023, primarily due to higher net income and positive foreign currency translation gains Q1 Comprehensive Income Comparison (in thousands) | Metric | Q1 2023 (in thousands) | Q1 2022 (in thousands) | | :--- | :--- | :--- | | Net Income | $10,730 | $5,156 | | Net foreign currency translation gain (loss) | $7,690 | $(4,952) | | Other Comprehensive Income (Loss) | $9,776 | $(3,276) | | **Comprehensive Income** | **$20,506** | **$1,880** | [Condensed Consolidated Balance Sheets](index=5&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) Total assets increased to $816.0 million by March 31, 2023, leading to growth in total shareholders' investment Balance Sheet Summary (in thousands) | Account | March 31, 2023 (in thousands) | December 31, 2022 (in thousands) | | :--- | :--- | :--- | | Total Current Assets | $368,495 | $351,267 | | **Total Assets** | **$816,025** | **$791,507** | | Total Current Liabilities | $286,287 | $279,487 | | **Total Liabilities** | **$674,198** | **$668,129** | | **Total Shareholders' Investment** | **$141,827** | **$123,378** | [Condensed Consolidated Statements of Cash Flows](index=7&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) Net cash used in operating activities significantly improved to $0.4 million in Q1 2023, reflecting higher net income and favorable working capital changes Q1 Cash Flow Summary (in thousands) | Activity | Q1 2023 (in thousands) | Q1 2022 (in thousands) | | :--- | :--- | :--- | | Net cash used in operating activities | $(445) | $(15,253) | | Net cash used in investing activities | $(8,641) | $(25,856) | | Net cash provided by financing activities | $5,187 | $37,608 | [Notes to Condensed Consolidated Financial Statements](index=9&type=section&id=Notes%20to%20Condensed%20Consolidated%20Financial%20Statements) The notes detail accounting policies, segment performance, the 2022 Van Dijk acquisition, fair value measurements, and an increased effective tax rate - The company operates four reportable segments: North America Loss Adjusting, International Operations, Broadspire, and Platform Solutions[17](index=17&type=chunk)[81](index=81&type=chunk) - On April 1, 2022, the company acquired R.P. van Dijk B.V. ("Van Dijk"), a bodily injury loss adjusting company in the Netherlands, for an initial cash consideration of **$4.3 million** and a potential earn-out of up to **$2.2 million**[3](index=3&type=chunk) - The effective income tax rate increased to **32.9%** for Q1 2023 from **32.0%** in Q1 2022, primarily due to losses in certain international operations[30](index=30&type=chunk) - Basic and diluted EPS for both Class A and Class B stock was **$0.22** for Q1 2023, up from **$0.10** in Q1 2022[32](index=32&type=chunk)[34](index=34&type=chunk) [Report of Independent Registered Public Accounting Firm](index=21&type=section&id=Report%20of%20Independent%20Registered%20Public%20Accounting%20Firm) Ernst & Young LLP reviewed the interim financial statements and found no material modifications needed for GAAP conformity - The independent auditors, Ernst & Young LLP, concluded their review stating they are "not aware of any material modifications that should be made to the condensed consolidated interim financial statements for them to be in conformity with U.S. generally accepted accounting principles"[23](index=23&type=chunk) [Management's Discussion and Analysis of Financial Condition and Results of Operations (MD&A)](index=22&type=section&id=Item%202.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management reported strong Q1 2023 revenue and operating earnings growth across all segments, with robust liquidity and ongoing internal control remediation [Results of Operations](index=24&type=section&id=Results%20of%20Operations) Consolidated revenues before reimbursements grew 12.2% in Q1 2023, driven by strong performance in North America Loss Adjusting and Platform Solutions Q1 2023 Segment Revenue Performance (in thousands) | Segment | Q1 2023 Revenue (in thousands) | Q1 2022 Revenue (in thousands) | YoY Change | Constant Currency YoY Change | | :--- | :--- | :--- | :--- | :--- | | North America Loss Adjusting | $77,127 | $64,438 | 19.7% | 22.3% | | International Operations | $91,863 | $89,272 | 2.9% | 11.6% | | Broadspire | $81,182 | $76,454 | 6.2% | 6.2% | | Platform Solutions | $62,820 | $48,861 | 28.6% | 28.6% | | **Total** | **$312,992** | **$279,025** | **12.2%** | **15.5%** | Q1 2023 Segment Operating Earnings (in thousands) | Segment | Q1 2023 Operating Earnings (in thousands) | Q1 2022 Operating Earnings (Loss) (in thousands) | | :--- | :--- | :--- | | North America Loss Adjusting | $8,065 | $4,135 | | International Operations | $3,035 | $(3,067) | | Broadspire | $7,927 | $6,434 | | Platform Solutions | $9,966 | $8,038 | | **Total** | **$28,993** | **$15,540** | - Overall cases received decreased by **6.8%**, which management attributes to a reduction of approximately **39,000** high-frequency, low-severity cases that were present in Q1 2022 and generated minimal revenue[132](index=132&type=chunk) [Liquidity, Capital Resources, and Financial Condition](index=37&type=section&id=LIQUIDITY%2C%20CAPITAL%20RESOURCES%2C%20AND%20FINANCIAL%20CONDITION) The company's financial position strengthened with increased working capital and robust liquidity, while operating cash flow significantly improved - Total liquidity at March 31, 2023, was **$235.2 million**, consisting of **$43.3 million** in cash and **$191.9 million** in available borrowing capacity under its credit facility[171](index=171&type=chunk) - Cash used in operating activities decreased to **$0.4 million** in Q1 2023 from **$15.3 million** in Q1 2022, mainly due to a **$5.6 million** increase in net income and a **$7.7 million** reduction in incentive compensation payments[168](index=168&type=chunk) - The company paid **$2.9 million** in dividends during Q1 2023, with no shares repurchased, compared to **$16.1 million** in repurchases in Q1 2022[151](index=151&type=chunk)[170](index=170&type=chunk) [Quantitative and Qualitative Disclosures About Market Risk](index=39&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) The company reported no material changes to its market risk exposures since the end of fiscal year 2022 - The company's exposures to market risk have not changed materially since December 31, 2022[154](index=154&type=chunk) [Controls and Procedures](index=40&type=section&id=Item%204.%20Controls%20and%20Procedures) Disclosure controls were deemed ineffective due to a material weakness in U.K. ITGCs, with a remediation plan underway for 2023 completion - Disclosure controls and procedures were deemed not effective as of March 31, 2023, because of a material weakness in IT general controls (ITGCs) in the U.K. operations related to change management and logical access[156](index=156&type=chunk) - Management is implementing a remediation plan that includes improved documentation, enhanced training, and new automated tools, with expected completion during fiscal year 2023[157](index=157&type=chunk) - Despite the material weakness, management concluded that the condensed consolidated financial statements included in the report are fairly presented in all material respects[156](index=156&type=chunk) [Part II. Other Information](index=41&type=section&id=Part%20II.%20Other%20Information) This section provides additional disclosures, including risk factors, equity security sales, exhibits, and official signatures for the Form 10-Q [Risk Factors](index=41&type=section&id=Item%201A.%20Risk%20Factors) Investors are directed to the comprehensive risk factors detailed in the company's 2022 Annual Report on Form 10-K - The report refers to the risk factors discussed in Part I, "Item 1A. Risk Factors" in the Annual Report on Form 10-K for the year ended December 31, 2022, for a comprehensive understanding of potential risks[159](index=159&type=chunk) [Unregistered Sales of Equity Securities and Use of Proceeds](index=41&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) The company did not repurchase any shares in Q1 2023, with 1.79 million shares remaining under its repurchase authorization - No shares of CRD-A or CRD-B were repurchased during the three months ended March 31, 2023[35](index=35&type=chunk)[161](index=161&type=chunk) - As of March 31, 2023, there were **1,793,371** shares remaining authorized for repurchase under the company's 2021 Repurchase Authorization[160](index=160&type=chunk)[161](index=161&type=chunk) [Exhibits](index=42&type=section&id=Item%206.%20Exhibits) This section lists all exhibits filed with the Form 10-Q, including required CEO/CFO certifications and XBRL data - The report includes certifications from the CEO and CFO pursuant to Sections 302 and 906 of the Sarbanes-Oxley Act of 2002[148](index=148&type=chunk)[163](index=163&type=chunk) [Signatures](index=43&type=section&id=Signatures) The Form 10-Q was officially signed by the Chief Executive Officer and Chief Financial Officer on May 3, 2023 - The report is signed by Rohit Verma (Chief Executive Officer) and W. Bruce Swain (Chief Financial Officer) on May 3, 2023[147](index=147&type=chunk)[150](index=150&type=chunk)

We recognized a pretax non-cash goodwill impairment in the 2022 third quarter totaling $36.8 million related to the North America Loss Adjusting ($3.4 million), International Operations ($22.7 million), and Platform Solutions ($10.7 million) reportable segments. On October 4, 2021, we acquired BosBoon Expertise Group B.V. ("BosBoon"), a Netherlands-based specialist loss adjusting company. BosBoon offers a specialist range of loss adjusting services which was added to the existing Crawford Global Technical S ...

United States SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 Form 10-Q ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 for the quarterly period ended September 30, 2022 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 for the transition period from ____ to ____ Commission file number 1-10356 CRAWFORD & COMPANY (Exact name of Registrant as specified in its charter) Georgia 58-0506554 (State or other jurisdiction ...

United States SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 Form 10-Q ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 for the quarterly period ended June 30, 2022 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 for the transition period from ____ to ____ Commission file number 1-10356 CRAWFORD & COMPANY (Exact name of Registrant as specified in its charter) Georgia 58-0506554 (State or other jurisdiction of i ...

United States SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 Form 10-Q ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 for the quarterly period ended March 31, 2022 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 for the transition period from ____ to ____ Commission file number 1-10356 CRAWFORD & COMPANY (Exact name of Registrant as specified in its charter) Georgia 58-0506554 (State or other jurisdiction of ...