Crawford(CRD_B) - 2022 Q2 - Quarterly Report

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].