Financial Performance - Total revenues for the nine months ended September 30, 2024, were $982,652,000, 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, down 33.5% from $31,427,000 in 2023[8]. - Earnings per share (diluted) for Class A and Class B common stock were both $0.42 for the nine months ended September 30, 2024, compared to $0.63 and $0.64, respectively, in 2023[8]. - Comprehensive income for the nine months ended September 30, 2024, was $27,833,000, down from $43,913,000 in 2023[12]. - The company reported a net income of $8,584 million for the quarter, compared to $8,502 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 $8,427,000 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 $4.99 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 $68,077,000 in the same period of 2023[15]. - Cash and cash equivalents were $52,340,000 as of September 30, 2024, down from $58,363,000 at December 31, 2023[13]. - Cash, cash equivalents, and restricted cash at the end of the period stood at $54,683 million, up from $50,282 million, showing a positive liquidity position[16]. - The company experienced an increase in revolving credit facility borrowings by $61,612 million, compared to $20,958 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 $362,368,000 as of September 30, 2024, from $369,346,000 at December 31, 2023[13]. - Total liabilities increased to $800,794,000 as of September 30, 2024, compared to $799,199,000 at December 31, 2023[14]. - The company’s total assets were $800,794,000 as of September 30, 2024, slightly up from $799,199,000 at December 31, 2023[14]. - The liabilities of the deferred compensation plan were $6,219,000 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) million from $(9,284) million, reflecting a rise in shareholder returns[16]. - Cash dividends paid for Class A and Class B shares were $3,430,000 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) 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 $9.24 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 $79,987,000 in Q3 2023[25]. - International Operations revenues before reimbursements for Q3 2024 totaled $105,741,000, up from $98,066,000 in Q3 2023, representing a 7.1% increase[27]. - Claims Management revenues for Q3 2024 were $50,293,000, compared to $47,919,000 in Q3 2023, reflecting a 4.8% growth[28]. - Medical Management revenues increased to $48,716,000 in Q3 2024 from $44,310,000 in Q3 2023, marking a 9.1% rise[28]. - Total Broadspire revenues before reimbursements for Q3 2024 reached $99,009,000, up from $92,229,000 in Q3 2023, indicating a 7.9% increase[28]. - Contractor Connection revenues for Q3 2024 were $17,051,000, down from $19,013,000 in Q3 2023, a decrease of 10.3%[30]. - Networks service line revenues fell significantly to $20,787,000 in Q3 2024 from $34,160,000 in Q3 2023, a decline of 39.0%[30]. - Total Platform Solutions revenues before reimbursements for Q3 2024 were $45,296,000, down from $59,839,000 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 $39,800,000 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 $59.22 million, reflecting quarterly additions of $23.82 million and revenue recognized of $24.56 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 $2.87 million, compared to $2.56 million in the same period of 2023[40]. - The Company made contributions of $1.90 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 $1,218 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 $0.19 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 $0.19 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 $3,823 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) 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].
Crawford(CRD_A) - 2024 Q3 - Quarterly Report