Revenue Performance - Consolidated revenues before reimbursements increased by $15.7 million, or 6.6%, for the three months ended March 31, 2021, compared to the same period in 2020[89]. - Revenues from the Crawford Loss Adjusting segment increased by 5.1% to $112.5 million, driven by an increase in weather-related cases[91]. - Revenues from the Crawford Platform Solutions segment surged by 30.7% to $42.4 million, attributed to new client growth and weather-related activity[91]. - For the three months ended March 31, 2021, total revenues before reimbursements increased to $253.2 million, up 6.5% from $237.5 million in the same period of 2020[105]. - The Crawford TPA Solutions segment generated revenues of $98.2 million, a slight increase from $98.0 million in the same period last year[105]. - Crawford Loss Adjusting segment revenues totaled $112.5 million for the three months ended March 31, 2021, a 5.1% increase from $107.1 million in the same period of 2020[108]. - Crawford Platform Solutions segment revenues before reimbursements increased by 30.7% to $42.4 million in Q1 2021, compared to $32.4 million in the same period of 2020[128]. - Revenues in the U.S. increased by 14.8% to $35.0 million, driven by a rise in weather-related cases[108]. - Revenues in the U.S. for Crawford Platform Solutions increased by 39.7% to $36.1 million, attributed to weather-related case activity and new client growth[128]. - Revenues in the U.S. decreased by 4.9% to $74.3 million, while revenues in Europe and Rest of World increased by 47.3% to $13.9 million, driven by recent acquisitions[119]. Case Volume and Activity - Total cases received increased by 0.5% to 389,790 for the three months ended March 31, 2021, with notable growth in the Crawford Platform Solutions segment[92]. - The Crawford TPA Solutions segment experienced a decline of 9.3% in cases received, totaling 188,274, primarily due to the economic impact of COVID-19[92]. - Case volumes for the Crawford Loss Adjusting segment rose by 2.9% to 85,552 cases received in Q1 2021 compared to 83,101 cases in Q1 2020[115]. - Total case volumes for Crawford TPA Solutions decreased by 9.3% to 188,274 cases in Q1 2021, primarily due to COVID-19 economic conditions[122]. - Total Crawford Platform Solutions cases received increased by 19.4% to 115,964 in Q1 2021 from 97,088 in Q1 2020, driven by growth in the U.S., Canada, and the U.K.[131]. - U.S. case volumes rose by 16.6% to 91,518 in Q1 2021, primarily due to increased weather-related case activity[131]. Financial Performance - Operating earnings in the Crawford Loss Adjusting segment rose to $4.9 million, representing 4.3% of revenues before reimbursements, compared to $0.7 million or 0.6% in 2020[106]. - Gross profit increased from $22.5 million (21.0% of revenues before reimbursements) in 2020 to $25.4 million (22.6%) in 2021, driven by higher revenues[106]. - Total expenses before reimbursements were $84.1 million, representing 32.1% of total revenues, slightly down from 34.0% in the previous year[105]. - The company reported net income of $6.0 million for Q1 2021, a significant improvement from a net loss of $13.2 million in Q1 2020[105]. - There were no goodwill impairments or restructuring costs recognized in 2021, contrasting with $17.7 million and $5.7 million, respectively, in 2020[95][106]. - Operating earnings for the Crawford TPA Solutions segment decreased to $4.7 million, or 4.8% of revenues, down from $6.3 million, or 6.4% of revenues, in the prior year[117]. - Gross profit margin for the Crawford TPA Solutions segment declined to 19.5% in Q1 2021 from 20.8% in Q1 2020, reflecting lower revenues and increased costs[118]. - The gross profit margin improved to 22.6% in Q1 2021, up from 21.0% in Q1 2020, reflecting better operational efficiency[107]. Expenses and Costs - Direct compensation, fringe benefits, and non-employee labor costs totaled $163.9 million, which is 64.7% of revenues before reimbursements, compared to 64.2% in the previous year[105]. - Selling, general, and administrative expenses increased by $2.9 million or 5.3% in Q1 2021 compared to Q1 2020, primarily due to higher compensation expenses and centralized data processing costs[95]. - The company recognized a benefit of $1.9 million from the Canada Emergency Wage Subsidy in Q1 2021, impacting direct compensation and administrative expenses[95]. - Direct compensation, fringe benefits, and non-employee labor expenses increased to $73.6 million, accounting for 65.4% of revenues before reimbursements, down from 65.9% in the previous year[113]. - Direct compensation, fringe benefits, and non-employee labor expenses were 64.6% of revenues in Q1 2021, up from 62.9% in Q1 2020, totaling $27.4 million compared to $20.4 million[132]. - Expenses other than reimbursements decreased as a percentage of revenues to 24.6% in Q1 2021 from 27.4% in Q1 2020, with total expenses rising to $10.4 million from $8.9 million[133]. Cash Flow and Financial Position - Cash provided by operating activities was $1.6 million in Q1 2021, a significant improvement from a use of $8.0 million in Q1 2020[145]. - Cash used in investing activities decreased to $5.7 million in Q1 2021 from $7.5 million in Q1 2020, attributed to lower capital expenditures[146]. - Cash provided by financing activities was $0.6 million in Q1 2021, down from $47.2 million in Q1 2020, with dividends paid totaling $3.2 million[147]. - Working capital increased by $20.7 million to approximately $79.9 million as of March 31, 2021, with cash and cash equivalents at $42.7 million[142]. - Unbilled revenues increased by $6.6 million, primarily due to increased weather-related activity in the U.S. and Australia[152]. - Accounts payable and accrued liabilities decreased by $8.0 million, mainly due to the timing of employee incentive payments[152]. - Accrued retirement costs decreased by $5.5 million, related to the timing of annual payments such as the 401K match program[152]. Market and Economic Conditions - The company estimates that COVID-19 negatively impacted revenues by $5.0 to $10.0 million for the three months ended March 31, 2021[92]. - The company anticipates that ongoing global economic conditions may materially impact future results of operations and financial condition[89]. - The company reported no material off-balance sheet risks that could impact operations, financial condition, or cash flows[152]. - There have been no material changes to critical accounting policies and estimates since the last annual report[153]. - Additional information on the adoption of new accounting standards is provided in the quarterly report[154]. - The company’s exposure to market risk has not changed materially since December 31, 2020[156].
Crawford(CRD_B) - 2021 Q1 - Quarterly Report