Financial Performance - Total revenues for the year ended December 31, 2018, were $1,122,979,000, a decrease of 3.5% from $1,163,709,000 in 2017[119]. - Net income attributable to shareholders was $25,978,000, compared to $27,665,000 in 2017, representing a decrease of 6.1%[119]. - Consolidated revenues before reimbursements were $1.071 billion in 2018, a decrease of 3.2% compared to $1.106 billion in 2017[139]. - Net income attributable to Crawford & Company was $26.0 million in 2018, down from $27.7 million in 2017[139]. - Total segment operating earnings decreased by 6.2% to $393,491,000 in 2018 from $419,296,000 in 2017[170]. Segment Performance - The company operates three segments: Crawford Claims Solutions, Crawford TPA Solutions: Broadspire, and Crawford Specialty Solutions, each serving distinct markets within the insurance industry[126]. - The Crawford Specialty Solutions segment experienced a revenue reduction of $46.3 million in 2018 due to the disposition of the Garden City Group business[141]. - The Crawford Claims Solutions segment saw a revenue decrease of $19.9 million due to the absence of hurricane activity in 2018[143]. - Crawford Claims Solutions segment revenues decreased by 1.1% to $361,107,000 in 2018 from $365,074,000 in 2017[169]. - Crawford TPA Solutions segment revenues increased by 3.8% to $405,335,000 in 2018 from $390,583,000 in 2017[169]. - Crawford Specialty Solutions segment revenues decreased by 13.0% to $304,529,000 in 2018 from $350,175,000 in 2017[169]. Earnings and Expenses - Operating earnings from Crawford Claims Solutions were $9,836,000, down from $17,527,000 in the previous year, reflecting a decline of 43.5%[119]. - Earnings per share for CRD-A were $0.51, down from $0.53 in 2017, a decrease of 3.8%[119]. - Selling, general and administrative expenses increased by $2.6 million, or 1.1%, in 2018 compared to 2017[152]. - Direct compensation, fringe benefits, and non-employee labor for Crawford Claims Solutions were $240,185,000, representing 66.5% of related revenues before reimbursements[169]. - Direct compensation expenses increased from $220.7 million in 2017 to $235.8 million in 2018, rising as a percentage of revenues from 56.5% to 58.2%[197]. Assets and Liabilities - Total assets decreased to $701,442,000 from $787,936,000 in 2017, a decline of 10.9%[119]. - Current liabilities decreased to $225,310,000 from $256,591,000 in 2017, a reduction of 12.2%[119]. - The company reported a current ratio of 1.4:1, consistent with the previous year[119]. - Working capital decreased to approximately $95.5 million at December 31, 2018, compared to $113.8 million at the end of 2017, primarily due to the Garden City Group disposal[275]. Cash Flow - Cash provided by operating activities increased to $52,419,000 from $40,757,000 in 2017, an increase of 28.5%[119]. - Cash provided by investing activities improved by $88.3 million in 2018, resulting in a net cash inflow of $6.4 million, driven by proceeds from the Garden City Group disposal of $42.6 million[281]. - Cash used in financing activities was $58.7 million in 2018, with $101.4 million borrowed for working capital needs and $135.4 million repaid in short-term borrowings[283]. Debt and Financing - The total debt to total capital ratio improved to 52.6% from 55.3% in the previous year[119]. - At December 31, 2018, the company had a total of $190.3 million outstanding under its Credit Facility, with an available borrowing capacity of $248.0 million[265]. - The leverage ratio was 1.48 as of December 31, 2018, down from 1.80 in 2017, while the fixed charge coverage ratio improved to 2.50 from 2.23[270]. Tax and Contributions - The effective income tax rate for the company was 42.0% in 2018, impacted by a valuation allowance on Foreign Tax Credits and the Tax Cuts and Jobs Act[248]. - Contributions made in 2018 included $19.0 million to the U.S. Qualified Plan and $5.0 million to the U.K. Plans, compared to $9.0 million and $5.6 million in 2017 respectively[300]. - The company expects to make annual minimum contributions of $9 million to the U.S. Qualified Plan for the four years following 2019[301]. Other Financial Metrics - The company recognized a pretax loss of $20.3 million on the disposal of the Garden City Group business, which was sold for cash proceeds of $42.6 million[257]. - Unbilled revenues increased by $18.6 million in 2018, after excluding the $16.7 million reduction from the sale of the Garden City Group[309]. - Accounts receivable decreased by $43.1 million in 2018, primarily due to decreased receivables within Crawford Claims Solutions and Crawford Specialty Solutions[308].
Crawford(CRD_B) - 2018 Q4 - Annual Report