Part I. Financial Information Item 1. Financial Statements Presents Crawford & Company's unaudited condensed consolidated financial statements for Q1 2025, including operations, balance sheets, cash flows, and notes Condensed Consolidated Statements of Operations Net income significantly increased in Q1 2025 due to higher revenues and reduced expenses, with total revenues growing 3.3% Q1 2025 vs Q1 2024 Statement of Operations Highlights | Metric | Q1 2025 (in thousands) | Q1 2024 (in thousands) | YoY Change | | :--- | :--- | :--- | :--- | | Total Revenues | $323,339 | $313,073 | +3.3% | | Income Before Income Taxes | $9,220 | $3,826 | +141.0% | | Net Income | $6,740 | $2,779 | +142.5% | | Net Income Attributable to Shareholders | $6,684 | $2,837 | +135.6% | | Diluted EPS (Class A) | $0.13 | $0.06 | +116.7% | | Diluted EPS (Class B) | $0.13 | $0.06 | +116.7% | Condensed Consolidated Balance Sheets Total assets and liabilities slightly decreased as of March 31, 2025, while shareholders' investment saw a modest increase Balance Sheet Summary | Metric (in thousands) | March 31, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Total Current Assets | $372,837 | $374,227 | | Total Assets | $792,259 | $803,755 | | Total Current Liabilities | $286,201 | $299,727 | | Long-term debt and finance leases | $205,274 | $200,315 | | Total Liabilities | $633,236 | $648,204 | | Total Shareholders' Investment | $159,023 | $155,551 | Condensed Consolidated Statements of Cash Flows Cash used in operating activities decreased in Q1 2025, while financing activities provided more cash due to increased borrowings Cash Flow Summary (Three Months Ended March 31) | Cash Flow Activity (in thousands) | 2025 | 2024 | | :--- | :--- | :--- | | Net cash used in operating activities | $(13,923) | $(19,803) | | Net cash used in investing activities | $(9,113) | $(9,550) | | Net cash provided by financing activities | $25,017 | $16,073 | | Increase (Decrease) in Cash | $1,692 | $(12,886) | Notes to Condensed Consolidated Financial Statements Detailed notes cover segment reporting, revenue recognition, income taxes, and a subsequent event regarding potential foreign tax impact - The company has four reportable segments: North America Loss Adjusting, International Operations, Broadspire, and Platform Solutions26 - As of March 31, 2025, the company had $101.4 million of remaining performance obligations, with approximately 71% expected to be recognized as revenue within one year48 - A subsequent event was noted where a foreign tax authority issued new guidance that could have an approximately $5.0 million negative impact on the company's financial condition and results in the second quarter of 202587 Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations Management analyzes Q1 2025 financial performance, highlighting revenue growth across segments, operating earnings, liquidity, and capital resources Consolidated Revenues Before Reimbursements (Three Months Ended March 31) | Metric (in thousands) | 2025 | 2024 | % Change | | :--- | :--- | :--- | :--- | | Revenues before reimbursements | $312,032 | $301,654 | 3.4% | | Constant Currency Revenues | $316,451 | $301,654 | 4.9% | - The increase in consolidated revenues was driven by growth in the North America Loss Adjusting, International Operations, and Broadspire segments, partially offset by a slight decrease in Platform Solutions9495 - Total cases received decreased by 5.6% year-over-year, primarily due to a transfer of low-value inspection services from Platform Solutions to North America Loss Adjusting and lower high-frequency cases in International Operations9697 North America Loss Adjusting Segment Operating earnings and margin improved due to revenue growth from new clients and efficiency gains in U.S. operations North America Loss Adjusting Performance (Q1) | Metric (in thousands) | 2025 | 2024 | | :--- | :--- | :--- | | Revenues | $79,740 | $77,365 | | Operating Earnings | $5,476 | $4,479 | | Operating Margin | 6.9% | 5.8% | - Revenue growth was led by U.S. Global Technical Services due to new client additions and expansion with existing accounts117 International Operations Segment Operating earnings more than doubled with expanded margins, driven by revenue growth in the U.K. and Asia International Operations Performance (Q1) | Metric (in thousands) | 2025 | 2024 | | :--- | :--- | :--- | | Revenues | $104,394 | $98,092 | | Operating Earnings | $3,456 | $1,690 | | Operating Margin | 3.3% | 1.7% | - Revenue growth was driven by higher-value third-party administration revenues in the U.K. and increased claims activity in Europe and Asia125126 Broadspire Segment Revenues increased due to new clients and pricing, but operating earnings slightly decreased due to higher indirect support costs Broadspire Performance (Q1) | Metric (in thousands) | 2025 | 2024 | | :--- | :--- | :--- | | Revenues | $96,384 | $94,298 | | Operating Earnings | $12,203 | $12,804 | | Operating Margin | 12.7% | 13.6% | - The decrease in operating earnings was attributed to an increase in centralized indirect support costs, which offset the revenue growth132 Platform Solutions Segment Profitability significantly improved despite a revenue decline, driven by cost reductions and a shift to higher-margin services Platform Solutions Performance (Q1) | Metric (in thousands) | 2025 | 2024 | | :--- | :--- | :--- | | Revenues | $31,514 | $31,899 | | Operating Earnings | $2,927 | $1,115 | | Operating Margin | 9.3% | 3.5% | - Profitability improved due to a shift in business mix towards higher-margin staff augmentation services and away from low-value inspection services, which were transferred to another segment141142 Liquidity, Capital Resources, and Financial Condition Working capital and total liquidity increased, with less cash used in operations and higher net borrowings for operational needs - Working capital increased by $12.1 million from year-end 2024 to $86.6 million at March 31, 2025159 - Total liquidity, defined as cash on hand plus borrowing capacity, was $255.9 million at the end of the quarter166 - Cash used in operating activities was $13.9 million, an improvement from the $19.8 million used in the same period of 2024, primarily due to higher earnings and working capital changes162 Item 3. Quantitative and Qualitative Disclosures About Market Risk The company reports no material changes to its market risk exposures since the prior fiscal year-end - There have been no material changes in the company's market risk exposures since the end of the last fiscal year178 Item 4. Controls and Procedures Management concluded disclosure controls were effective as of March 31, 2025, with no material changes to internal controls - The CEO and CFO concluded that the company's disclosure controls and procedures were effective as of March 31, 2025181 - No changes in internal control over financial reporting occurred during the quarter that have materially affected, or are reasonably likely to materially affect, internal controls182 Part II. Other Information Item 1A. Risk Factors This section refers to the comprehensive risk factors in the 2024 Form 10-K, indicating no new material risks - The company directs stakeholders to its 2024 Form 10-K for a comprehensive discussion of risk factors, implying no significant new risks have emerged during the quarter183 Item 2. Unregistered Sales of Equity Securities and Use of Proceeds Details on the share repurchase program are provided, with no shares repurchased during Q1 2025 and remaining authorization - The company did not repurchase any of its Class A or Class B common stock during the three months ended March 31, 2025185 - As of March 31, 2025, the company had authorization to repurchase an additional 1,089,809 shares under its existing plan, which extends through December 31, 2025184 Item 5. Other Information No directors or officers adopted or terminated Rule 10b5-1 trading plans during the first quarter of 2025 - No directors or officers adopted or terminated Rule 10b5-1 trading plans during the quarter ended March 31, 2025186 Item 6. Exhibits This section lists standard exhibits filed with the Form 10-Q, including CEO/CFO certifications and XBRL data files - The report includes standard exhibits such as CEO/CFO certifications and XBRL data files187
Crawford(CRD_B) - 2025 Q1 - Quarterly Report