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Crawford(CRD_A) - 2024 Q3 - Quarterly Report
CRD_ACrawford(CRD_A)2024-11-04 21:39

Financial Performance - Total revenues for the nine months ended September 30, 2024, were 982,652,000,adecreaseof2.1982,652,000, a decrease of 2.1% from 1,007,754,000 in the same period of 2023[6]. - Net income for the nine months ended September 30, 2024, was 20,874,000,down33.520,874,000, down 33.5% from 31,427,000 in 2023[8]. - Earnings per share (diluted) for Class A and Class B common stock were both 0.42fortheninemonthsendedSeptember30,2024,comparedto0.42 for the nine months ended September 30, 2024, compared to 0.63 and 0.64,respectively,in2023[8].−ComprehensiveincomefortheninemonthsendedSeptember30,2024,was0.64, respectively, in 2023[8]. - Comprehensive income for the nine months ended September 30, 2024, was 27,833,000, down from 43,913,000in2023[12].−Thecompanyreportedanetincomeof43,913,000 in 2023[12]. - The company reported a net income of 8,584 million for the quarter, compared to 8,502millioninthepreviousquarter,indicatingstableprofitability[18].−Thecompanyreportedanetincomeof8,502 million in the previous quarter, indicating stable profitability[18]. - The company reported a net income of 10,681,000 for the quarter ending March 31, 2023, which decreased to 8,427,000byJune30,2023,indicatingadeclineofapproximately21.18,427,000 by June 30, 2023, indicating a decline of approximately 21.1%[19]. - The company recognized a net income attributable to common shareholders of 7.33 million for the three months ended September 30, 2024, compared to 4.99millioninthesameperiodof2023[43].CashFlowandLiquidity−NetcashprovidedbyoperatingactivitiesfortheninemonthsendedSeptember30,2024,was4.99 million in the same period of 2023[43]. Cash Flow and Liquidity - Net cash provided by operating activities for the nine months ended September 30, 2024, was 11,093,000, significantly lower than 68,077,000inthesameperiodof2023[15].−Cashandcashequivalentswere68,077,000 in the same period of 2023[15]. - Cash and cash equivalents were 52,340,000 as of September 30, 2024, down from 58,363,000atDecember31,2023[13].−Cash,cashequivalents,andrestrictedcashattheendoftheperiodstoodat58,363,000 at December 31, 2023[13]. - Cash, cash equivalents, and restricted cash at the end of the period stood at 54,683 million, up from 50,282million,showingapositiveliquidityposition[16].−Thecompanyexperiencedanincreaseinrevolvingcreditfacilityborrowingsby50,282 million, showing a positive liquidity position[16]. - The company experienced an increase in revolving credit facility borrowings by 61,612 million, compared to 20,958millionpreviously,indicatingastrategicmovetoenhanceliquidity[16].−Thecompanymaintainsaletterofcreditwithanaggregatecommittedamountof20,958 million previously, indicating a strategic move to enhance liquidity[16]. - The company maintains a letter of credit with an aggregate committed amount of 8,870,000 as of September 30, 2024, under its credit facility[58]. Assets and Liabilities - Total current assets decreased to 362,368,000asofSeptember30,2024,from362,368,000 as of September 30, 2024, from 369,346,000 at December 31, 2023[13]. - Total liabilities increased to 800,794,000asofSeptember30,2024,comparedto800,794,000 as of September 30, 2024, compared to 799,199,000 at December 31, 2023[14]. - The company’s total assets were 800,794,000asofSeptember30,2024,slightlyupfrom800,794,000 as of September 30, 2024, slightly up from 799,199,000 at December 31, 2023[14]. - The liabilities of the deferred compensation plan were 6,219,000asofSeptember30,2023,slightlydownfrom6,219,000 as of September 30, 2023, slightly down from 6,261,000 at December 31, 2022[21]. Shareholder Returns - Cash dividends paid increased to (10,320)millionfrom(10,320) million from (9,284) million, reflecting a rise in shareholder returns[16]. - Cash dividends paid for Class A and Class B shares were 3,430,000forthethreemonthsendedSeptember30,2023,consistentwiththepreviousquarter′sdividendpayments[19].−Thecompanyrepurchasedcommonstockamountingto3,430,000 for the three months ended September 30, 2023, consistent with the previous quarter's dividend payments[19]. - The company repurchased common stock amounting to (3,604) million, significantly higher than (582)millioninthepriorperiod,indicatingastrongcommitmenttoreturningcapitaltoshareholders[16].−FortheninemonthsendedSeptember30,2024,thecompanyrepurchased385,544sharesofCRD−Batanaveragecostof(582) million in the prior period, indicating a strong commitment to returning capital to shareholders[16]. - For the nine months ended September 30, 2024, the company repurchased 385,544 shares of CRD-B at an average cost of 9.34, compared to 63,103 shares at an average cost of 9.24duringthesameperiodin2023[47].−AsofSeptember30,2024,thecompanyhadremainingauthorizationtorepurchase1,113,875sharesunderthe2021RepurchaseAuthorization[46].SegmentPerformance−Thecompanyhasfourreportablesegments:NorthAmericaLossAdjusting,InternationalOperations,Broadspire,andPlatformSolutions,whichcontributetoitsdiversifiedrevenuestreams[21].−NorthAmericaadjustedrevenuesbeforereimbursementsforQ32024were9.24 during the same period in 2023[47]. - As of September 30, 2024, the company had remaining authorization to repurchase 1,113,875 shares under the 2021 Repurchase Authorization[46]. Segment Performance - The company has four reportable segments: North America Loss Adjusting, International Operations, Broadspire, and Platform Solutions, which contribute to its diversified revenue streams[21]. - North America adjusted revenues before reimbursements for Q3 2024 were 79,329,000, a slight decrease from 79,987,000inQ32023[25].−InternationalOperationsrevenuesbeforereimbursementsforQ32024totaled79,987,000 in Q3 2023[25]. - International Operations revenues before reimbursements for Q3 2024 totaled 105,741,000, up from 98,066,000inQ32023,representinga7.198,066,000 in Q3 2023, representing a 7.1% increase[27]. - Claims Management revenues for Q3 2024 were 50,293,000, compared to 47,919,000inQ32023,reflectinga4.847,919,000 in Q3 2023, reflecting a 4.8% growth[28]. - Medical Management revenues increased to 48,716,000 in Q3 2024 from 44,310,000inQ32023,markinga9.144,310,000 in Q3 2023, marking a 9.1% rise[28]. - Total Broadspire revenues before reimbursements for Q3 2024 reached 99,009,000, up from 92,229,000inQ32023,indicatinga7.992,229,000 in Q3 2023, indicating a 7.9% increase[28]. - Contractor Connection revenues for Q3 2024 were 17,051,000, down from 19,013,000inQ32023,adecreaseof10.319,013,000 in Q3 2023, a decrease of 10.3%[30]. - Networks service line revenues fell significantly to 20,787,000 in Q3 2024 from 34,160,000inQ32023,adeclineof39.034,160,000 in Q3 2023, a decline of 39.0%[30]. - Total Platform Solutions revenues before reimbursements for Q3 2024 were 45,296,000, down from 59,839,000inQ32023,adecreaseof24.359,839,000 in Q3 2023, a decrease of 24.3%[30]. Revenue Recognition and Performance Obligations - Revenue recognition is based on the transfer of control of services, with accounts receivable expected to be collected in less than two months, indicating efficient cash flow management[24]. - Deferred revenues related to lifetime claim handling approximated 40,271,000 as of September 30, 2024, compared to 39,800,000asofDecember31,2023[33].−TheCompanyexpectstocloseapproximately9939,800,000 as of December 31, 2023[33]. - The Company expects to close approximately 99% of all cases referred under lifetime claim service agreements within five years from the date of referral[33]. - As of September 30, 2024, the Company had 105.7 million in remaining performance obligations, with an expectation to recognize approximately 67% as revenue within one year[35]. - The deferred revenue balance as of September 30, 2024, was 59.22million,reflectingquarterlyadditionsof59.22 million, reflecting quarterly additions of 23.82 million and revenue recognized of 24.56millionfrompriorandcurrentperiods[34].−TheCompanyexpectstorecognizetheremainingbalanceofperformanceobligationsasrevenueafteroneyear,indicatingastablerevenuestreamfromexistingcontracts[35].TaxandPensionCosts−TheprovisionforincometaxesforthethreemonthsendedSeptember30,2024,was24.56 million from prior and current periods[34]. - The Company expects to recognize the remaining balance of performance obligations as revenue after one year, indicating a stable revenue stream from existing contracts[35]. Tax and Pension Costs - The provision for income taxes for the three months ended September 30, 2024, was 5.33 million, with an effective tax rate of 36.2%, up from 35.8% in the prior year[39]. - The net periodic cost related to defined benefit pension plans for the three months ended September 30, 2024, was 2.87million,comparedto2.87 million, compared to 2.56 million in the same period of 2023[40]. - The Company made contributions of 1.90milliontotheU.K.definedbenefitpensionplansfortheninemonthsendedSeptember30,2024,comparedto1.90 million to the U.K. defined benefit pension plans for the nine months ended September 30, 2024, compared to 1.80 million in the same period of 2023[41]. Stock-Based Compensation - Stock-based compensation expenses were 1,218million,reflectingongoinginvestmentinemployeeincentives[18].−Thecompanyissuedstock−basedcompensationtotaling1,218 million, reflecting ongoing investment in employee incentives[18]. - The company issued stock-based compensation totaling 1,574,000 for the three months ended September 30, 2023, reflecting ongoing investment in employee incentives[19]. - Basic earnings per share for CRD-A was 0.19forthethreemonthsendedSeptember30,2024,consistentwiththeprioryear,whileCRD−Balsoreported0.19 for the three months ended September 30, 2024, consistent with the prior year, while CRD-B also reported 0.19[43]. - The diluted earnings per share for CRD-A was 0.19forthethreemonthsendedSeptember30,2024,and0.19 for the three months ended September 30, 2024, and 0.25 for CRD-B, reflecting stable performance[44]. Other Comprehensive Income - Other comprehensive income for the period was 3,823million,contributingpositivelytooverallfinancialperformance[18].−Thecompany’saccumulatedothercomprehensiveloss(AOCL)attributabletoshareholderswas3,823 million, contributing positively to overall financial performance[18]. - The company’s accumulated other comprehensive loss (AOCL) attributable to shareholders was (211,370,000) as of September 30, 2024[49]. - The company reported a comprehensive loss of (214,402,000)forthethreemonthsendedSeptember30,2024,comparedto(214,402,000) for the three months ended September 30, 2024, compared to (218,615,000) for the nine months ended September 30, 2024[49]. Global Operations - The company operates in over 70 countries, providing claims management and outsourcing solutions to insurance companies and self-insured entities, highlighting its global reach[20]. - The company’s North America Loss Adjusting segment services the North American property and casualty market, including operations in the U.S. and Canada[53]. - The company’s International Operations segment services the global property and casualty market outside North America, including operations in the U.K., Europe, Australia, Asia, and Latin America[53].