| --- | --- | --- | --- | --- | |---------------------------------------------------------------------------------------------------|-------|-------------------------------------|-------------|------------------------------| | (In thousands, except per share amounts) \nRevenues: \nRevenues before reimbursements | $ | Three Months \n2023 \n312,992 | Ended \n$ | March 31, \n2022 \n279,025 | | Reimbursements | | 11,604 | | 8,764 | | Total Revenues | | 324,596 | | 287,789 | | | | | | | | Costs and Expenses: | | ...

Revenue Segments - North America Loss Adjusting segment accounted for 23.1% of the Company's revenues before reimbursements in 2022[24] - International Operations segment accounted for 30.0% of the Company's revenues before reimbursements in 2022[27] - Broadspire segment accounted for 26.4% of the Company's revenues before reimbursements in 2022[29] - Platform Solutions segment accounted for 20.5% of the Company's revenues before reimbursements in 2022[31] - Revenues from international operations accounted for 38.3%, 40.2%, and 41.9% of consolidated revenues before reimbursements for 2022, 2021, and 2020, respectively[164] - Total International Operations Revenues before Reimbursements amounted to $357,452 thousand in 2022, slightly down from $357,909 thousand in 2021, representing a decrease of approximately 0.13%[219] - The International Loss Adjusting segment generated $335,575 thousand in revenue for 2022, compared to $331,110 thousand in 2021, indicating a growth of about 1.4%[219] Employee and Workforce - The Company operates in 70 countries with approximately 10,400 employees, of which 92% are full-time[39] - Women comprise 56% of the global workforce, with 29% in country-president roles and 28% in senior management[39] - The Company emphasizes employee wellness with comprehensive benefit programs, including fitness challenges and telemedicine services[42] - The Company received high scores in employee engagement, with 88% believing they do not face bias due to personal identity[46] Financial Performance - Consolidated revenues before reimbursements were $1.189 billion in 2022, an increase of 7.9% compared to $1.102 billion in 2021[140] - Net loss attributable to Crawford & Company was $(18.3) million in 2022, compared to net income of $30.7 million in 2021[140] - U.S. revenues increased by 23.5% to $158.5 million in 2021, driven by weather-related cases and new client growth[83] - Canadian revenues decreased by 4.4% to $85.3 million in 2021, primarily due to the pandemic's negative economic impact[84] - Total North America Loss Adjusting revenues rose by 12.0% to $243.8 million in 2021[83] - International Operations segment revenues increased by 11.0% to $357.9 million in 2021, with a 7.7% boost from foreign exchange rates[89] Expenses and Liabilities - Corporate interest expense totaled $11.0 million in 2022, up from $7.0 million in 2021, with a weighted average interest rate of 3.3%[100] - The estimated liabilities for self-insured risks totaled $24.3 million as of December 31, 2022, down from $26.2 million in 2021, with a sensitivity of approximately $0.4 million for a 1.0% change in the discount rate[162] - The accrued liabilities for self-insured risks totaled $24,270,000 as of December 31, 2022, down from $26,226,000 in 2021[214] Cash Flow and Investments - Cash provided by operating activities totaled $54.3 million in 2021, a decrease of $38.9 million from $93.2 million in 2020[112] - Cash used in investing activities increased by $43.8 million in 2021, totaling $70.8 million, primarily for acquisitions and capital expenditures[113] - The company acquired HBA Group for $3.8 million, edjuster for $19.0 million, and an initial payment for the Praxis acquisition for $21.5 million in 2021[113] - Net cash provided by operating activities decreased to $27,634 million in 2022 from $54,321 million in 2021, reflecting a decline of approximately 49%[201] - Cash used in investing activities was $57,876 million in 2022, down from $70,826 million in 2021, indicating a reduction of about 18%[201] Goodwill and Impairment - In Q3 2022, the company recognized a pretax goodwill impairment of $36.8 million due to indicators in its International Operations and Crawford Legal Services reporting units, with specific impairments of $19.6 million and $3.2 million respectively[182] - The company identified goodwill impairment indicators in its North America Loss Adjusting and Platform Solutions segments, leading to a quantitative analysis and subsequent impairment recognition[182] - The company incurred goodwill impairment of $36,808 million in 2022, while there was no such impairment recorded in 2021[201] Revenue Recognition - The Company recognizes revenue over time for claims management services as performance obligations are satisfied, ensuring accurate revenue depiction[218] - Revenue for claims billed on a time and expense incurred basis is recognized at the amount the Company has the right to invoice for services performed, reflecting variable consideration[218] - The Contractor Connection service line generates revenue by charging a fee for each project sold by its network of contractors, with revenue recognized at the point of consumer acceptance of the contractor's proposal[220] Market Risks and Taxation - The company’s operations are exposed to market risks from foreign currency exchange rates and interest rates, with strategies in place to manage these risks[193] - Future changes in tax laws could significantly impact the company, although specific effects cannot be predicted at this time[189] - The effective income tax rate for 2021 was 30.4%, with an anticipated range of 33% to 35% for 2023[99]

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 ...

Revenue Growth - Consolidated revenues before reimbursements increased by $25.9 million, or 9.7%, for the three months ended June 30, 2022, and $51.7 million, or 9.9%, for the six months ended June 30, 2022, compared to the same periods in 2021 [112]. - Total revenues, including reimbursements, reached $303.7 million for the three months ended June 30, 2022, reflecting a 9.8% increase compared to $276.5 million in the same period of 2021 [113]. - Revenues before reimbursements for the three months ended June 30, 2022, were $293,345,000, up from $267,457,000 in 2021, representing a growth of 9.7% [115]. - Total revenues for the three months ended June 30, 2022, were $303.7 million, an increase of 9.8% from $276.5 million in the same period of 2021 [131]. - Revenues before reimbursements for the six months ended June 30, 2022, totaled $130.2 million, a 15.7% increase from $112.5 million in the same period of 2021 [137]. - For the six months ended June 30, 2022, revenues before reimbursements totaled $183.0 million, a 3.0% increase from $177.7 million in the same period of 2021 [149]. Segment Performance - Revenues from the North America Loss Adjusting segment increased by 17.0% to $65.8 million for the three months ended June 30, 2022, and by 15.7% to $130.2 million for the six months ended June 30, 2022 [113]. - International Operations segment revenues increased by 2.7% to $93.7 million for the three months ended June 30, 2022, and by 3.0% to $183.0 million for the six months ended June 30, 2022 [113]. - Broadspire segment revenues rose by 5.5% to $80.1 million for the three months ended June 30, 2022, and by 4.3% to $156.6 million for the six months ended June 30, 2022 [113]. - Platform Solutions segment revenues increased by 21.9% to $53.7 million for the three months ended June 30, 2022, and by 27.9% to $102.6 million for the six months ended June 30, 2022 [113]. - The International Operations segment reported an operating loss of $0.7 million, or (0.8%) of revenues before reimbursements, for Q2 2022, compared to operating earnings of $2.1 million, or 2.3% in Q2 2021 [144]. Case Volume and Activity - The company experienced a 15.5% increase in cases received for the three months ended June 30, 2022, and a 16.4% increase for the six months ended June 30, 2022, compared to the prior year [112]. - Total Crawford cases received increased by 15.5% to 480,706 for the three months ended June 30, 2022, compared to 416,207 in the same period of 2021 [115]. - The North America Loss Adjusting segment experienced a 19.7% increase in case volumes for Q2 2022, with a total of 76,419 cases received compared to 63,818 in Q2 2021 [139]. - The International Operations segment experienced an 18.6% increase in unit volume, measured by cases received, for Q2 2022 compared to Q2 2021 [151]. - Cases received increased by 18.6% and 24.2% for the three and six months ended June 30, 2022, compared to the same periods in 2021 [154]. Expenses and Profitability - Costs of services provided increased by $25.0 million, or 12.9%, for the three months ended June 30, 2022, compared to the same period in 2021 [115]. - SG&A expenses rose by $6.7 million, or 11.5%, for the three months ended June 30, 2022, compared to the prior year [115]. - Direct expenses for Q2 2022 were $54.6 million, up 21.5% from $44.9 million in Q2 2021, leading to a gross profit of $11.2 million, a slight decrease of 0.7% [134]. - The gross profit margin for Q2 2022 was 17.0%, down from 20.0% in Q2 2021, while the operating margin decreased to 4.1% from 5.5% [134]. - The company reported a net income of $5.8 million for the three months ended June 30, 2022, compared to $11.8 million in the same period of 2021 [131]. Foreign Exchange Impact - Changes in foreign exchange rates negatively impacted consolidated revenues by $6.2 million, or 2.3%, for the three months ended June 30, 2022, and $9.1 million, or 1.8%, for the six months ended June 30, 2022 [112]. - The change in exchange rates negatively impacted revenues by approximately 5.8%, or $5.3 million, for Q2 2022 compared to Q2 2021 [149]. Corporate and Financial Metrics - The effective income tax rate for the three months ended June 30, 2022, increased to 32.2% compared to 23.3% for the same period in 2021, primarily due to losses in certain international operations [178]. - Corporate interest expense for the three months ended June 30, 2022, totaled $2.1 million, up from $1.5 million in the same period of 2021 [179]. - Cash used in operating activities was $12.8 million for the six months ended June 30, 2022, compared to $10.5 million provided by operating activities in the same period of 2021 [187]. - Cash used in investing activities was $38.6 million for the six months ended June 30, 2022, compared to $11.8 million in the same period of 2021 [188]. - At June 30, 2022, the working capital balance was approximately $64.9 million, an increase of $22.8 million from December 31, 2021 [185].

[Part I. Financial Information](index=3&type=section&id=Part%20I.%20Financial%20Information) [Financial Statements](index=3&type=section&id=Item%201.%20Financial%20Statements) The company's Q1 2022 financial statements show increased revenues to $287.8 million, but decreased net income to $5.1 million, diluted EPS of $0.10, and negative operating cash flow [Condensed Consolidated Statements of Operations](index=3&type=section&id=Condensed%20Consolidated%20Statements%20of%20Operations) Q1 2022 total revenues increased to **$287.8 million**, but net income attributable to shareholders declined to **$5.1 million**, with diluted EPS at **$0.10** Consolidated Statements of Operations (Unaudited) | Indicator (In thousands, except per share) | Three Months Ended March 31, 2022 | Three Months Ended March 31, 2021 | | :--- | :--- | :--- | | **Total Revenues** | $287,789 | $262,155 | | **Income Before Income Taxes** | $7,582 | $8,505 | | **Net Income Attributable to Shareholders** | $5,096 | $6,064 | | **Diluted EPS (Class A & B)** | $0.10 | $0.11 | [Condensed Consolidated Statements of Comprehensive Income (Loss)](index=4&type=section&id=Condensed%20Consolidated%20Statements%20of%20Comprehensive%20Income%20(Loss)) Q1 2022 comprehensive income attributable to shareholders significantly decreased to **$1.8 million**, primarily due to a **($5.0) million** net foreign currency translation loss Comprehensive Income (Loss) (Unaudited) | Indicator (In thousands) | Three Months Ended March 31, 2022 | Three Months Ended March 31, 2021 | | :--- | :--- | :--- | | **Net Income** | $5,156 | $6,034 | | **Other Comprehensive (Loss) Income** | ($3,276) | $12,576 | | **Comprehensive Income Attributable to Shareholders** | $1,806 | $18,654 | [Condensed Consolidated Balance Sheets](index=5&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) As of March 31, 2022, total assets slightly decreased to **$845.6 million**, total liabilities increased to **$650.2 million**, and total shareholders' investment decreased to **$195.5 million** Consolidated Balance Sheet Highlights (Unaudited) | Account (In thousands) | March 31, 2022 | December 31, 2021 | | :--- | :--- | :--- | | **Total Current Assets** | $349,510 | $345,920 | | **Total Assets** | $845,634 | $852,639 | | **Total Current Liabilities** | $281,261 | $303,855 | | **Total Liabilities** | $650,158 | $641,242 | | **Total Shareholders' Investment** | $195,476 | $211,397 | [Condensed Consolidated Statements of Cash Flows](index=7&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) Q1 2022 net cash used in operating activities was **($15.3) million**, investing activities used **($25.9) million**, and financing activities provided **$37.6 million** from increased borrowings Consolidated Cash Flows (Unaudited) | Cash Flow Activity (In thousands) | Three Months Ended March 31, 2022 | Three Months Ended March 31, 2021 | | :--- | :--- | :--- | | **Net cash (used in) provided by operating activities** | ($15,253) | $1,577 | | **Net cash used in investing activities** | ($25,856) | ($5,704) | | **Net cash provided by financing activities** | $37,608 | $610 | [Notes to Condensed Consolidated Financial Statements](index=9&type=section&id=Notes%20to%20Condensed%20Consolidated%20Financial%20Statements) Key notes include the realignment of operating segments, details on recent acquisitions like Praxis Consulting and edjuster Inc., and an increased effective tax rate of **32.0%** - In January 2022, the Company realigned its operating segments into a new geographic reporting structure: **North America Loss Adjusting, International Operations, Broadspire, and Platform Solutions**[25](index=25&type=chunk)[61](index=61&type=chunk) - The company completed several acquisitions in 2021, including **edjuster Inc. and Praxis Consulting Inc.**, and continued to finalize the accounting for these business combinations[70](index=70&type=chunk)[72](index=72&type=chunk) - The effective income tax rate increased to **32.0%** for Q1 2022 from **29.1%** in Q1 2021, primarily due to losses in certain international operations[44](index=44&type=chunk) - On April 1, 2022, the Company acquired assets of **R.P. van Dijk B.V.**, a bodily injury loss adjusting company in the Netherlands, for an initial cash consideration of **$4.4 million**[77](index=77&type=chunk) [Management's Discussion and Analysis of Financial Condition and Results of Operations](index=25&type=section&id=Item%202.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management reported a **10.2%** increase in consolidated revenues to **$279.0 million**, with operating earnings rising to **$15.5 million**, and strong liquidity of **$249.6 million** [Business Overview](index=26&type=section&id=Business%20Overview) Crawford & Company, a leading claims management provider, realigned its segments into **North America Loss Adjusting, International Operations, Broadspire, and Platform Solutions** in January 2022 - The company is the **world's largest** publicly listed independent provider of claims management and outsourcing solutions, serving clients in **over 70 countries**[88](index=88&type=chunk) - In January 2022, the company realigned its operating segments to a geographic structure: **North America Loss Adjusting, International Operations, Broadspire, and Platform Solutions**[89](index=89&type=chunk) [Results of Operations](index=27&type=section&id=Results%20of%20Operations) Q1 2022 consolidated revenues grew **10.2%** to **$279.0 million**, with total segment operating earnings increasing to **$15.5 million**, despite a decline in income before taxes Q1 2022 vs Q1 2021 Revenue Before Reimbursements by Segment | Segment (in thousands) | Q1 2022 | Q1 2021 | Variance | Constant Currency Variance | | :--- | :--- | :--- | :--- | :--- | | North America Loss Adjusting | $64,438 | $56,298 | 14.5% | 14.5% | | International Operations | $89,272 | $86,467 | 3.2% | 6.5% | | Broadspire | $76,454 | $74,276 | 2.9% | 2.9% | | Platform Solutions | $48,861 | $36,140 | 35.2% | 35.2% | | **Total** | **$279,025** | **$253,181** | **10.2%** | **11.3%** | - Total cases received increased by **18.8%** in Q1 2022 compared to Q1 2021, with recent acquisitions contributing **3.3%** of the total cases[94](index=94&type=chunk) Q1 2022 vs Q1 2021 Segment Operating Earnings | Segment (in thousands) | Q1 2022 | Q1 2021 | | :--- | :--- | :--- | | North America Loss Adjusting | $4,135 | $4,361 | | International Operations | ($3,067) | ($673) | | Broadspire | $6,434 | $6,734 | | Platform Solutions | $8,038 | $4,018 | | **Total** | **$15,540** | **$14,440** | [Liquidity, Capital Resources, and Financial Condition](index=39&type=section&id=Liquidity%2C%20Capital%20Resources%2C%20and%20Financial%20Condition) As of March 31, 2022, total liquidity was **$249.6 million**, with cash used in operations at **($15.3) million**, and financing activities providing **$37.6 million** from increased borrowings - Total liquidity was **$249.6 million** at March 31, 2022, consisting of **$49.2 million** in cash and **$200.4 million** in available borrowing capacity[155](index=155&type=chunk) Q1 2022 vs Q1 2021 Cash Flow Summary | Cash Flow Activity (in millions) | Q1 2022 | Q1 2021 | | :--- | :--- | :--- | | Cash from Operating Activities | ($15.3) | $1.6 | | Cash from Investing Activities | ($25.9) | ($5.7) | | Cash from Financing Activities | $37.6 | $0.6 | - Share repurchases totaled **$16.1 million** in Q1 2022, compared to **$1.2 million** in Q1 2021[154](index=154&type=chunk) [Quantitative and Qualitative Disclosures About Market Risk](index=41&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) The company reports no material changes in its market risk exposures since December 31, 2021 - There have been **no material changes** in the Company's market risk exposures since December 31, 2021[162](index=162&type=chunk) [Controls and Procedures](index=42&type=section&id=Item%204.%20Controls%20and%20Procedures) Management concluded that disclosure controls and procedures were effective, with no material changes to internal control over financial reporting during the quarter - The CEO and CFO concluded that the company's disclosure controls and procedures were **effective** as of March 31, 2022[164](index=164&type=chunk) - **No material changes** to the internal control over financial reporting occurred during the quarter[165](index=165&type=chunk) [Part II. Other Information](index=43&type=section&id=Part%20II.%20Other%20Information) [Risk Factors](index=43&type=section&id=Item%201A.%20Risk%20Factors) The company refers to its 2021 Annual Report on Form 10-K for risk factors, indicating no new material risks in this quarter - The company directs investors to the risk factors detailed in its 2021 Annual Report on Form 10-K, implying **no material updates** for the current quarter[167](index=167&type=chunk) [Unregistered Sales of Equity Securities and Use of Proceeds](index=43&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) The company repurchased **2,217,958 shares** in March 2022 under an increased authorization, with **3,195,359 shares** remaining authorized - On February 11, 2022, the Board of Directors added **5,000,000 shares** to the existing repurchase authorization[168](index=168&type=chunk) Share Repurchases in Q1 2022 | Period | Class | Shares Purchased | Average Price Paid | | :--- | :--- | :--- | :--- | | March 2022 | CRD-A | 1,498,084 | $7.23 | | March 2022 | CRD-B | 719,874 | $7.31 | | **Total** | | **2,217,958** | | - As of March 31, 2022, the company was authorized to repurchase an additional **3,195,359 shares**[168](index=168&type=chunk)[169](index=169&type=chunk) [Exhibits](index=44&type=section&id=Item%206.%20Exhibits) This section lists exhibits filed with the Form 10-Q, including CEO and CFO certifications and Inline XBRL data files - Exhibits filed include **certifications** from the principal executive and financial officers (Sections 302 and 906 of Sarbanes-Oxley) and **XBRL data files**[171](index=171&type=chunk)

Financial Performance - Consolidated revenues before reimbursements were $1.102 billion in 2021, an increase of 12.2% compared to $982.5 million in 2020[136] - Net income attributable to Crawford & Company was $30.7 million in 2021, compared to $28.3 million in 2020[136] - Total revenues for the year ended December 31, 2021, were $1,139.2 million, a 12.1% increase from $1,016.2 million in 2020[178] - Revenues from Crawford Loss Adjusting increased by 8.5% to $475.6 million, while Crawford TPA Solutions grew by 7.2% to $398.0 million, and Crawford Platform Solutions surged by 32.4% to $228.5 million[138] - The company recognized a pretax gain on disposal of $13.8 million related to the sale of the Lloyd Warwick International business in 2020[158] - Net income attributable to shareholders of Crawford & Company was $30.7 million, an 8.5% increase from $28.3 million in 2020[180] Operating Earnings - Operating earnings in Crawford Loss Adjusting decreased to $23.0 million, or 4.8% of revenues, primarily due to losses in international operations and increased compensation expenses[145] - Operating earnings in Crawford TPA Solutions decreased to $17.6 million, or 4.4% of revenues, impacted by the ongoing effects of COVID-19 in Canada and Europe[146] - Operating earnings in Crawford Platform Solutions increased to $36.3 million, or 15.9% of revenues, due to revenue growth[147] - Operating earnings for the Crawford Loss Adjusting segment decreased to $23.0 million, or 4.8% of revenues before reimbursements, compared to $41.1 million, or 9.4% in 2020, due to losses in international operations and increased compensation expenses[181] - Operating earnings for Crawford TPA Solutions decreased to $17.6 million in 2021, or 4.4% of revenues before reimbursements, down from $20.5 million, or 5.5%, in 2020[194] - Operating earnings for Crawford Platform Solutions were $36.3 million in 2021, representing 15.9% of revenues before reimbursements, compared to $27.7 million or 16.0% in 2020[211] Expenses - Cost of services provided increased by $106.6 million, or 15.2%, primarily due to higher compensation expenses and recent acquisitions[148] - Selling, general, and administrative expenses rose by $25.9 million, or 11.8%, attributed to increased compensation and centralized data processing costs[149] - Direct compensation, fringe benefits, and non-employee labor expenses increased from $269.8 million in 2020 to $315.2 million in 2021, representing 66.3% of segment revenues before reimbursements[192] - Total expenses other than reimbursements in Crawford TPA Solutions increased from $116.7 million in 2020 to $123.6 million in 2021, but decreased as a percentage of revenues from 31.5% to 31.0%[207] Acquisitions - The company acquired BosBoon Expertise Group B.V. for an initial cash consideration of $2.1 million, with a potential maximum of $1.9 million based on performance goals over two years[151] - The acquisition of Praxis Consulting, Inc. was completed for a total purchase price of $21.5 million, including a deferred payment of $20.0 million due in February 2022, and a maximum of $10.0 million based on revenue performance goals[152] - The company acquired edjuster Inc. for an initial cash payment of $20.9 million, with an earn-out potential of up to $13.3 million based on EBITDA performance goals over two years[154] - The acquisition of HBA Group was for an initial cash payment of $4.0 million, with a maximum of $3.2 million payable over four years based on revenue and EBITDA performance goals[155] - The acquisition of Crawford Carvallo included an initial cash payment of $11.6 million, with a maximum of $11.7 million payable over six years based on EBITDA performance goals[156] Cash Flow and Liquidity - Cash provided by operating activities decreased to $54.3 million in 2021 from $93.2 million in 2020, primarily due to increased accounts receivable and higher tax payments[290] - Cash used in investing activities increased to $70.8 million in 2021 from $27.0 million in 2020, driven by acquisitions including HBA Group for $3.8 million and Praxis for $22.2 million[292] - As of December 31, 2021, the company had a working capital balance of approximately $42.1 million, down from $59.2 million in 2020, attributed to increased short-term borrowings and accrued compensation[287] - The company had total outstanding debt of $175.0 million as of December 31, 2021, with an available borrowing capacity of $260.2 million under its Credit Facility[278] - Total liquidity at December 31, 2021, was $313.5 million, consisting of $53.2 million in cash on hand and $260.2 million in additional borrowing capacity based on trailing twelve month EBITDA[298] Case Volumes and Market Activity - Total cases received increased by 5.8% in 2021, totaling 1,653,050 cases, driven by Hurricane Ida activity in the U.S.[140] - The U.S. market contributed $158.5 million to Crawford Loss Adjusting revenues, reflecting a 23.5% increase from $128.3 million in 2020[185] - Case volumes increased by 18.9% in 2021, with the U.S. seeing a 17.9% rise in cases received[217] - Total Crawford Loss Adjusting cases received increased by 7.0% in 2021, with U.S. case volumes rising by 3.1% and U.K. case volumes increasing by 21.2%[188][190] Tax and Compliance - The effective income tax rate for the company was 30.7% in 2020, with an anticipated range of 29% to 31% for 2022[261] - The company expects to remain in compliance with all required covenants throughout 2022, with sensitivity to changes in EBITDA affecting compliance[299] Deferred Revenues and Claims - As of December 31, 2021, deferred revenues related to lifetime claim handling arrangements approximated $38.0 million[324] - The company closes approximately 99% of all cases referred under lifetime claim service arrangements within five years[323] - A 1.0% decrease in claim closing rates for lifetime claims would have resulted in the deferral of additional revenues of approximately $1.3 million for the years ended December 31, 2021, 2020, and 2019[324] - The competitive environment may limit the company's ability to raise prices to offset expenses associated with handling longer-lived claims[324]

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, 2021 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, 2021 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 ...

Revenue Performance - Consolidated revenues before reimbursements increased by $15.7 million, or 6.6%, for the three months ended March 31, 2021, compared to the same period in 2020[89]. - Revenues from the Crawford Loss Adjusting segment increased by 5.1% to $112.5 million, driven by an increase in weather-related cases[91]. - Revenues from the Crawford Platform Solutions segment surged by 30.7% to $42.4 million, attributed to new client growth and weather-related activity[91]. - For the three months ended March 31, 2021, total revenues before reimbursements increased to $253.2 million, up 6.5% from $237.5 million in the same period of 2020[105]. - The Crawford TPA Solutions segment generated revenues of $98.2 million, a slight increase from $98.0 million in the same period last year[105]. - Crawford Loss Adjusting segment revenues totaled $112.5 million for the three months ended March 31, 2021, a 5.1% increase from $107.1 million in the same period of 2020[108]. - Crawford Platform Solutions segment revenues before reimbursements increased by 30.7% to $42.4 million in Q1 2021, compared to $32.4 million in the same period of 2020[128]. - Revenues in the U.S. increased by 14.8% to $35.0 million, driven by a rise in weather-related cases[108]. - Revenues in the U.S. for Crawford Platform Solutions increased by 39.7% to $36.1 million, attributed to weather-related case activity and new client growth[128]. - Revenues in the U.S. decreased by 4.9% to $74.3 million, while revenues in Europe and Rest of World increased by 47.3% to $13.9 million, driven by recent acquisitions[119]. Case Volume and Activity - Total cases received increased by 0.5% to 389,790 for the three months ended March 31, 2021, with notable growth in the Crawford Platform Solutions segment[92]. - The Crawford TPA Solutions segment experienced a decline of 9.3% in cases received, totaling 188,274, primarily due to the economic impact of COVID-19[92]. - Case volumes for the Crawford Loss Adjusting segment rose by 2.9% to 85,552 cases received in Q1 2021 compared to 83,101 cases in Q1 2020[115]. - Total case volumes for Crawford TPA Solutions decreased by 9.3% to 188,274 cases in Q1 2021, primarily due to COVID-19 economic conditions[122]. - Total Crawford Platform Solutions cases received increased by 19.4% to 115,964 in Q1 2021 from 97,088 in Q1 2020, driven by growth in the U.S., Canada, and the U.K.[131]. - U.S. case volumes rose by 16.6% to 91,518 in Q1 2021, primarily due to increased weather-related case activity[131]. Financial Performance - Operating earnings in the Crawford Loss Adjusting segment rose to $4.9 million, representing 4.3% of revenues before reimbursements, compared to $0.7 million or 0.6% in 2020[106]. - Gross profit increased from $22.5 million (21.0% of revenues before reimbursements) in 2020 to $25.4 million (22.6%) in 2021, driven by higher revenues[106]. - Total expenses before reimbursements were $84.1 million, representing 32.1% of total revenues, slightly down from 34.0% in the previous year[105]. - The company reported net income of $6.0 million for Q1 2021, a significant improvement from a net loss of $13.2 million in Q1 2020[105]. - There were no goodwill impairments or restructuring costs recognized in 2021, contrasting with $17.7 million and $5.7 million, respectively, in 2020[95][106]. - Operating earnings for the Crawford TPA Solutions segment decreased to $4.7 million, or 4.8% of revenues, down from $6.3 million, or 6.4% of revenues, in the prior year[117]. - Gross profit margin for the Crawford TPA Solutions segment declined to 19.5% in Q1 2021 from 20.8% in Q1 2020, reflecting lower revenues and increased costs[118]. - The gross profit margin improved to 22.6% in Q1 2021, up from 21.0% in Q1 2020, reflecting better operational efficiency[107]. Expenses and Costs - Direct compensation, fringe benefits, and non-employee labor costs totaled $163.9 million, which is 64.7% of revenues before reimbursements, compared to 64.2% in the previous year[105]. - Selling, general, and administrative expenses increased by $2.9 million or 5.3% in Q1 2021 compared to Q1 2020, primarily due to higher compensation expenses and centralized data processing costs[95]. - The company recognized a benefit of $1.9 million from the Canada Emergency Wage Subsidy in Q1 2021, impacting direct compensation and administrative expenses[95]. - Direct compensation, fringe benefits, and non-employee labor expenses increased to $73.6 million, accounting for 65.4% of revenues before reimbursements, down from 65.9% in the previous year[113]. - Direct compensation, fringe benefits, and non-employee labor expenses were 64.6% of revenues in Q1 2021, up from 62.9% in Q1 2020, totaling $27.4 million compared to $20.4 million[132]. - Expenses other than reimbursements decreased as a percentage of revenues to 24.6% in Q1 2021 from 27.4% in Q1 2020, with total expenses rising to $10.4 million from $8.9 million[133]. Cash Flow and Financial Position - Cash provided by operating activities was $1.6 million in Q1 2021, a significant improvement from a use of $8.0 million in Q1 2020[145]. - Cash used in investing activities decreased to $5.7 million in Q1 2021 from $7.5 million in Q1 2020, attributed to lower capital expenditures[146]. - Cash provided by financing activities was $0.6 million in Q1 2021, down from $47.2 million in Q1 2020, with dividends paid totaling $3.2 million[147]. - Working capital increased by $20.7 million to approximately $79.9 million as of March 31, 2021, with cash and cash equivalents at $42.7 million[142]. - Unbilled revenues increased by $6.6 million, primarily due to increased weather-related activity in the U.S. and Australia[152]. - Accounts payable and accrued liabilities decreased by $8.0 million, mainly due to the timing of employee incentive payments[152]. - Accrued retirement costs decreased by $5.5 million, related to the timing of annual payments such as the 401K match program[152]. Market and Economic Conditions - The company estimates that COVID-19 negatively impacted revenues by $5.0 to $10.0 million for the three months ended March 31, 2021[92]. - The company anticipates that ongoing global economic conditions may materially impact future results of operations and financial condition[89]. - The company reported no material off-balance sheet risks that could impact operations, financial condition, or cash flows[152]. - There have been no material changes to critical accounting policies and estimates since the last annual report[153]. - Additional information on the adoption of new accounting standards is provided in the quarterly report[154]. - The company’s exposure to market risk has not changed materially since December 31, 2020[156].

Financial Performance - Consolidated revenues before reimbursements were $982.5 million in 2020, a decrease of 2.3% compared to $1.006 billion in 2019[124] - Net income attributable to Crawford & Company was $28.3 million in 2020, compared to $12.5 million in 2019[124] - Revenues from Crawford Claims Solutions segment increased by 4.9% to $356.4 million in 2020, driven by weather-related activity and new client growth[126] - Revenues from Crawford TPA Solutions segment decreased by 7.3% to $365.0 million in 2020, primarily due to the economic impact of COVID-19[126] - Total revenues before reimbursements for Crawford Claims Solutions increased to $356.4 million in 2020, up 4.9% from $339.8 million in 2019[167] - Total revenues, including reimbursements, amounted to $1,016.2 million in 2020, down 3.0% from $1,047.6 million in 2019[167] - Net income attributable to shareholders increased by 126.6% to $28.3 million in 2020, compared to $12.5 million in 2019[167] - The company reported a net income of $27.1 million in 2020, a 184.2% increase from $9.5 million in 2019[167] Impact of COVID-19 - The company estimates that COVID-19 negatively impacted revenues by $45.0 to $55.0 million in 2020 compared to 2019[127] - Total cases received decreased by 2.4% to 1,561,693 in 2020, with a notable decline in Crawford TPA Solutions and Crawford Specialty Solutions segments[128] - The average full-time equivalent employees (FTEs) in the Crawford TPA Solutions segment decreased from 3,184 in 2019 to 3,081 in 2020, reflecting cost reduction initiatives[187] - The total case volumes for Crawford TPA Solutions decreased by 5.8% in 2020, totaling 765,615 cases, with significant declines in the U.S., Canada, and Europe due to COVID-19[184] - The company anticipates that future case volumes may be negatively impacted due to the economic contraction from the COVID-19 pandemic unless offset by new client programs or weather-related activity[173] Segment Performance - Operating earnings in Crawford Claims Solutions increased to $14.4 million, or 4.0% of revenues before reimbursements, in 2020[132] - Operating earnings for Crawford TPA Solutions segment fell to $21.5 million in 2020, or 5.9% of revenues before reimbursements, down from $27.2 million or 6.9% in 2019[177] - Crawford Specialty Solutions recorded operating earnings of $52.6 million in 2020, representing 20.1% of revenues before reimbursements, an increase from $49.3 million or 18.1% in 2019[190] - Crawford Claims Solutions segment revenues increased by $20.9 million in 2020, representing a 6.2% growth compared to 2019, despite a 1.1% revenue decrease when excluding the WeGoLook case impact[169] Expenses and Costs - Direct compensation, fringe benefits, and non-employee labor are significant operating expenses for the company[155] - Direct expenses for Crawford Claims Solutions increased by 6.0% to $279.0 million in 2020, compared to $263.1 million in 2019[166] - Crawford Claims Solutions segment expenses, excluding reimbursements, decreased from $108.6 million in 2019 to $103.5 million in 2020, reducing as a percentage of segment revenues from 31.9% to 29.0%[176] - Indirect costs, including centralized administrative support costs, are allocated to each segment based on usage[156] - The restructuring costs included $9.4 million in severance expenses and related payroll taxes, and $2.5 million in asset impairment and lease termination costs[143] Acquisitions and Disposals - On October 1, 2020, Crawford acquired an additional 85% equity interest in Crawford Carvallo for an initial cash payment of $11.6 million[140] - The company recognized a pretax gain on disposal of $13.8 million related to the sale of the Lloyd Warwick International business in 2020[139] - A pretax loss on disposal of its subsidiary Garden City Group totaling $20.3 million was reported in 2018[144] Financial Position and Liquidity - As of December 31, 2020, total short-term and long-term debt outstanding was $112.9 million, with an available borrowing capacity of $325.7 million under the Credit Facility[258] - The leverage ratio was 1.11 as of December 31, 2020, down from 1.53 in 2019, indicating improved financial stability[263] - Cash and cash equivalents at the end of 2020 totaled $44.7 million, compared to $51.8 million at the end of 2019[268] - Total liquidity at December 31, 2020, was $251.0 million, consisting of $44.7 million in cash and $206.3 million in additional borrowing capacity[279] Pension and Credit Losses - The aggregate deficit in the funded status of the U.S. Qualified Plan and other international plans totaled $53.9 million at the end of 2020, down from $65.9 million in 2019[292] - The company expects to make discretionary contributions of $9.0 million per annum to the U.S. Qualified Plan for the next five years to improve its funded status[293] - The allowance for expected credit losses was $9.5 million as of December 31, 2020, representing approximately 7.1% of gross billed receivables[313] - If the allowance for expected credit losses changed by 1.0% of gross billed receivables, the impact on consolidated pretax income would have been approximately $1.3 million in 2020[313]