1-10356 | 58-0506554 | |
(Commission File Number) | (IRS Employer Identification No.) | |
5335 Triangle Parkway, Peachtree Corners, Georgia | 30092 | |
(Address of Principal Executive Offices) | (Zip Code) |
o | Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) |
o | Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) |
o | Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) |
o | Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) |
Exhibit No. | Description | ||||
99.1 | |||||
99.2 |
CRAWFORD & COMPANY (Registrant) | ||||
By: | /s/ W. BRUCE SWAIN | |||
W. Bruce Swain | ||||
Executive Vice President - Chief Financial Officer | ||||
• | Revenues before reimbursements of $263.8 million, compared with $298.8 million for the 2017 fourth quarter which included $16.5 million of revenues from the disposed of Garden City Group business line |
• | Net income (loss) attributable to shareholders of $11.9 million, compared to $(2.0) million in the same period last year |
• | Diluted earnings (loss) per share of $0.22 for CRD-A and $0.20 for CRD-B, compared with $(0.03) for CRD-A and $(0.05) for CRD-B in the prior year fourth quarter |
• | Revenues before reimbursements, on a non-GAAP basis, of $263.8 million, down 7% compared with $282.2 million for the 2017 fourth quarter |
• | Net income attributable to shareholders, on a non-GAAP basis, totaled $17.3 million in the 2018 fourth quarter, compared to $16.8 million in the same period last year |
• | Diluted earnings per share, on a non-GAAP basis, of $0.32 for CRD-A and $0.30 for CRD-B in the 2018 fourth quarter compared to $0.31 for CRD-A and $0.29 for CRD-B in the prior year fourth quarter |
• | Consolidated adjusted operating earnings, on a non-GAAP basis, were $32.2 million, or 12.2% of revenues, in the 2018 fourth quarter, compared with $24.8 million, or 8.8% of revenues, in the 2017 fourth quarter |
• | Consolidated adjusted EBITDA, a non-GAAP financial measure, was $41.4 million or 15.7% of revenues in the 2018 fourth quarter, compared with $35.0 million or 12.4% of revenues in the 2017 period |
• | Revenues before reimbursements of $1.071 billion, compared with $1.106 billion in 2017 which included revenues of the disposed GCG business of $29.9 million in 2018 and $76.2 million in 2017 |
• | Net income attributable to shareholders of $26.0 million, compared to $27.7 million in 2017 |
• | Diluted earnings per share of $0.50 for CRD-A and $0.42 for CRD-B, compared with $0.52 for CRD-A and $0.45 for CRD-B in 2017 |
• | Revenues before reimbursements, on a non-GAAP basis, of $1.041 billion, up 1% as compared with $1.030 million for 2017 |
• | Net income attributable to shareholders, on a non-GAAP basis, totaled $46.3 million in 2018 compared to $51.2 last year |
• | Diluted earnings per share, on a non-GAAP basis, of $0.86 for CRD-A and $0.79 for CRD-B in 2018 compared to $0.93 for CRD-A and $0.86 for CRD-B in the prior year |
• | Consolidated adjusted operating earnings, on a non-GAAP basis, were $89.5 million, or 8.6% of revenues, in 2018, compared with $94.6 million, or 9.2% of revenues, in 2017 |
• | Consolidated adjusted EBITDA, a non-GAAP financial measure, was $127.2 million or 12.2% of revenues in 2018 , compared with $130.9 million or 12.7% of revenues in the 2017 period |
• | Consolidated revenues before reimbursements between $1.05 and $1.10 billion; |
• | Net income attributable to shareholders of Crawford & Company between $46.0 and $51.0 million, or $0.85 to $0.95 diluted earnings per CRD-A share, and $0.78 to $0.88 diluted earnings per CRD-B share; |
• | Consolidated operating earnings between $90.0 and $100.0 million; |
• | Consolidated adjusted EBITDA between $130.0 and $140.0 million; |
Three months ended | Year ended | Midpoint | |||||||||||||||
(in thousands) | December 31, 2018 | December 31, 2017 | December 31, 2018 | December 31, 2017 | Guidance 2019 | ||||||||||||
Operating earnings: | |||||||||||||||||
Crawford TPA Solutions: Broadspire | $ | 12,895 | $ | 10,630 | $ | 36,909 | $ | 38,224 | |||||||||
Crawford Claims Solutions | 6,020 | 9,749 | 9,836 | 17,527 | |||||||||||||
Crawford Specialty Solutions | 15,319 | 14,536 | 51,036 | 53,418 | |||||||||||||
Unallocated corporate and shared costs, net | (2,005 | ) | (10,713 | ) | (9,321 | ) | (13,463 | ) | |||||||||
Consolidated operating earnings | 32,229 | 24,202 | 88,460 | 95,706 | $ | 95,000 | |||||||||||
(Deduct) Add: | |||||||||||||||||
Net corporate interest expense | (2,707 | ) | (2,388 | ) | (10,109 | ) | (9,062 | ) | (10,800 | ) | |||||||
Stock option expense | (387 | ) | (376 | ) | (1,742 | ) | (1,718 | ) | (2,000 | ) | |||||||
Amortization expense | (2,810 | ) | (2,747 | ) | (11,152 | ) | (10,982 | ) | (11,200 | ) | |||||||
Goodwill and intangible asset impairment charges | (1,056 | ) | (19,598 | ) | (1,056 | ) | (19,598 | ) | — | ||||||||
Restructuring and special charges | — | (3,266 | ) | — | (12,084 | ) | — | ||||||||||
Loss on disposition of business line | (1,274 | ) | — | (20,270 | ) | — | — | ||||||||||
Income taxes | (12,287 | ) | 1,530 | (18,542 | ) | (15,039 | ) | (21,600 | ) | ||||||||
Net loss attributable to noncontrolling interests and redeemable noncontrolling interests | 230 | 630 | 389 | 442 | (900 | ) | |||||||||||
Net income (loss) attributable to shareholders of Crawford & Company | $ | 11,938 | $ | (2,013 | ) | $ | 25,978 | $ | 27,665 | $ | 48,500 | ||||||
Three months ended | Year ended | Midpoint | |||||||||||||||
(in thousands) | December 31, 2018 | December 31, 2017 | December 31, 2018 | December 31, 2017 | Guidance 2019 | ||||||||||||
Net income (loss) attributable to shareholders of Crawford & Company | $ | 11,938 | $ | (2,013 | ) | $ | 25,978 | $ | 27,665 | $ | 48,500 | ||||||
Add (Deduct): | |||||||||||||||||
Depreciation and amortization | 10,795 | 11,010 | 44,079 | 41,658 | 45,700 | ||||||||||||
Stock-based compensation | 1,358 | 1,688 | 6,196 | 6,661 | 8,400 | ||||||||||||
Net corporate interest expense | 2,707 | 2,388 | 10,109 | 9,062 | 10,800 | ||||||||||||
Goodwill and intangible asset impairment charges | 1,056 | 19,598 | 1,056 | 19,598 | — | ||||||||||||
Restructuring and special charges | — | 3,266 | — | 12,084 | — | ||||||||||||
Loss on disposition of business line | 1,274 | — | 20,270 | — | — | ||||||||||||
Income taxes | 12,287 | (1,530 | ) | 18,542 | 15,039 | 21,600 | |||||||||||
Removal of the impact of the disposed GCG business | — | 578 | 1,007 | (876 | ) | — | |||||||||||
Adjusted EBITDA | $ | 41,415 | $ | 34,985 | $ | 127,237 | $ | 130,891 | $ | 135,000 | |||||||
Three months ended December 31, 2018 | ||||||||||||||||||
(in thousands) | Revenues | Non-GAAP Operating earnings | Pretax earnings | Net income attributable to Crawford & Company | Diluted earnings per CRD-A share | Diluted earnings per CRD-B share | ||||||||||||
GAAP | $ | 263,794 | $ | 32,229 | $ | 23,995 | $ | 11,938 | $ | 0.22 | $ | 0.20 | ||||||
Adjustments: | ||||||||||||||||||
Goodwill and intangible asset impairment charges | — | — | 1,056 | 785 | 0.01 | 0.01 | ||||||||||||
Loss on disposition of business line, net of tax of $312 | — | — | 1,274 | 962 | 0.02 | 0.02 | ||||||||||||
Impact of tax reform in the U.S. | — | — | — | 3,583 | 0.07 | 0.07 | ||||||||||||
Non-GAAP Adjusted | $ | 263,794 | $ | 32,229 | $ | 26,325 | $ | 17,268 | $ | 0.32 | $ | 0.30 | ||||||
Three months ended December 31, 2017 | ||||||||||||||||||
(in thousands) | Revenues | Non-GAAP Operating earnings | Pretax (loss) earnings | Net (loss) income attributable to Crawford & Company | Diluted earnings per CRD-A share | Diluted earnings per CRD-B share | ||||||||||||
GAAP | $ | 298,767 | $ | 24,202 | $ | (4,173 | ) | $ | (2,013 | ) | $ | (0.03 | ) | $ | (0.05 | ) | ||
Adjustments: | ||||||||||||||||||
GCG business results | (16,541 | ) | 2,089 | 2,119 | 1,341 | 0.02 | 0.02 | |||||||||||
Retained corporate overhead charged to GCG | — | (1,541 | ) | (1,541 | ) | (840 | ) | (0.01 | ) | (0.01 | ) | |||||||
Goodwill impairment charges | — | — | 19,598 | 12,419 | 0.22 | 0.22 | ||||||||||||
Restructuring and special charges, net of tax of $1,153 | — | — | 3,266 | 2,113 | 0.04 | 0.04 | ||||||||||||
Impact of tax reform in the U.S. | — | — | — | 3,795 | 0.07 | 0.07 | ||||||||||||
Non-GAAP Adjusted | $ | 282,226 | $ | 24,750 | $ | 19,269 | $ | 16,815 | $ | 0.31 | $ | 0.29 | ||||||
Year ended December 31, 2018 | ||||||||||||||||||
(in thousands) | Revenues | Non-GAAP Operating earnings | Pretax earnings | Net income attributable to Crawford & Company | Diluted earnings per CRD-A share | Diluted earnings per CRD-B share | ||||||||||||
GAAP | $ | 1,070,971 | $ | 88,460 | $ | 44,131 | $ | 25,978 | $ | 0.50 | $ | 0.42 | ||||||
Adjustments: | ||||||||||||||||||
GCG business results | (29,875 | ) | 3,935 | 3,932 | 2,670 | 0.05 | 0.05 | |||||||||||
Retained corporate overhead charged to GCG | — | (2,925 | ) | (2,925 | ) | (1,986 | ) | (0.04 | ) | (0.04 | ) | |||||||
Goodwill and intangible asset impairment charges | — | — | 1,056 | 785 | 0.01 | 0.01 | ||||||||||||
Loss on disposition of business line, net of tax of $4,966 | — | — | 20,270 | 15,304 | 0.28 | 0.28 | ||||||||||||
Impact of tax reform in the U.S. | — | — | — | 3,583 | 0.06 | 0.07 | ||||||||||||
Non-GAAP Adjusted | $ | 1,041,096 | $ | 89,470 | $ | 66,464 | $ | 46,334 | $ | 0.86 | $ | 0.79 | ||||||
Year ended December 31, 2017 | ||||||||||||||||||
(in thousands) | Revenues | Non-GAAP Operating earnings | Pretax Earnings | Net income attributable to Crawford & Company | Diluted earnings per CRD-A share | Diluted earnings per CRD-B share | ||||||||||||
GAAP | $ | 1,105,832 | $ | 95,706 | $ | 42,262 | $ | 27,665 | $ | 0.52 | $ | 0.45 | ||||||
Adjustments: | ||||||||||||||||||
GCG business results | (76,200 | ) | 4,356 | 4,582 | 2,876 | 0.05 | 0.05 | |||||||||||
Retained corporate overhead charged to GCG | — | (5,458 | ) | (5,458 | ) | (3,363 | ) | (0.06 | ) | (0.06 | ) | |||||||
Goodwill impairment charges | — | — | 19,598 | 12,419 | 0.22 | 0.22 | ||||||||||||
Restructuring and special charges, net of tax of $4,266 | — | — | 12,084 | 7,818 | 0.13 | 0.13 | ||||||||||||
Impact of tax reform in the U.S. | — | — | — | 3,795 | 0.07 | 0.07 | ||||||||||||
Non-GAAP Adjusted | $ | 1,029,632 | $ | 94,604 | $ | 73,068 | $ | 51,210 | $ | 0.93 | $ | 0.86 | ||||||
Three months ended | Year ended | |||||||
(in thousands) | December 31, 2018 | December 31, 2017 | December 31, 2018 | December 31, 2017 | ||||
Weighted-Average Shares Used to Compute Basic Earnings Per Share: | ||||||||
Class A Common Stock | 30,734 | 31,212 | 30,805 | 31,322 | ||||
Class B Common Stock | 24,429 | 24,507 | 24,449 | 24,606 | ||||
Weighted-Average Shares Used to Compute Diluted Earnings Per Share: | ||||||||
Class A Common Stock | 31,404 | 32,119 | 31,434 | 32,158 | ||||
Class B Common Stock | 24,429 | 24,507 | 24,449 | 24,606 | ||||
This press release contains forward-looking statements, including statements about the expected future financial condition, results of operations and earnings outlook of Crawford & Company. Statements, both qualitative and quantitative, that are not historical facts may be “forward-looking statements” as defined in the Private Securities Litigation Reform Act of 1995 and other federal securities laws. Forward-looking statements involve a number of risks and uncertainties that could cause actual results to differ materially from historical experience or Crawford & Company’s present expectations. Accordingly, no one should place undue reliance on forward-looking statements, which speak only as of the date on which they are made. Crawford & Company does not undertake to update forward-looking statements to reflect the impact of circumstances or events that may arise or not arise after the date the forward-looking statements are made. For further information regarding Crawford & Company, including factors that could cause our actual financial condition, results or earnings to differ from those described in any forward-looking statements, please read Crawford & Company’s reports filed with the SEC and available at www.sec.gov and in the Investor Relations section of Crawford & Company’s website at www.crawfordandcompany.com. |
Three Months Ended December 31, | 2018 | 2017 | % Change | |||||||
Revenues: | ||||||||||
Revenues Before Reimbursements | $ | 263,794 | $ | 298,767 | (12 | )% | ||||
Reimbursements | 10,726 | 14,774 | (27 | )% | ||||||
Total Revenues | 274,520 | 313,541 | (12 | )% | ||||||
Costs and Expenses: | ||||||||||
Costs of Services Provided, Before Reimbursements | 181,617 | 212,935 | (15 | )% | ||||||
Reimbursements | 10,726 | 14,774 | (27 | )% | ||||||
Total Costs of Services | 192,343 | 227,709 | (16 | )% | ||||||
Selling, General, and Administrative Expenses | 53,514 | 64,662 | (17 | )% | ||||||
Corporate Interest Expense, Net | 2,707 | 2,388 | 13 | % | ||||||
Goodwill and Intangible Asset Impairment Charges | 1,056 | 19,598 | (95 | )% | ||||||
Restructuring and Special Charges | — | 3,266 | nm | |||||||
Loss on Disposition of Business Line | 1,274 | — | nm | |||||||
Total Costs and Expenses | 250,894 | 317,623 | (21 | )% | ||||||
Other Income (Expense) | 369 | (91 | ) | 505 | % | |||||
Income (Loss) Before Income Taxes | 23,995 | (4,173 | ) | 675 | % | |||||
Provision (Benefit) for Income Taxes | 12,287 | (1,530 | ) | 903 | % | |||||
Net Income (Loss) | 11,708 | (2,643 | ) | 543 | % | |||||
Net Loss Attributable to Noncontrolling Interests and Redeemable Noncontrolling Interests | 230 | 630 | (63 | )% | ||||||
Net Income (Loss) Attributable to Shareholders of Crawford & Company | $ | 11,938 | $ | (2,013 | ) | 693 | % | |||
Earnings (Loss) Per Share - Basic: | ||||||||||
Class A Common Stock | $ | 0.23 | $ | (0.03 | ) | 867 | % | |||
Class B Common Stock | $ | 0.21 | $ | (0.05 | ) | 520 | % | |||
Earnings (Loss) Per Share - Diluted: | ||||||||||
Class A Common Stock | $ | 0.22 | $ | (0.03 | ) | 833 | % | |||
Class B Common Stock | $ | 0.20 | $ | (0.05 | ) | 500 | % | |||
Cash Dividends Per Share: | ||||||||||
Class A Common Stock | $ | 0.07 | $ | 0.07 | — | % | ||||
Class B Common Stock | $ | 0.05 | $ | 0.05 | — | % | ||||
Year Ended December 31, | 2018 | 2017 | % Change | |||||||
Revenues: | ||||||||||
Revenues Before Reimbursements | $ | 1,070,971 | $ | 1,105,832 | (3 | )% | ||||
Reimbursements | 52,008 | 57,877 | (10 | )% | ||||||
Total Revenues | 1,122,979 | 1,163,709 | (4 | )% | ||||||
Costs and Expenses: | ||||||||||
Costs of Services Provided, Before Reimbursements | 755,997 | 784,290 | (4 | )% | ||||||
Reimbursements | 52,008 | 57,877 | (10 | )% | ||||||
Total Costs of Services | 808,005 | 842,167 | (4 | )% | ||||||
Selling, General, and Administrative Expenses | 242,421 | 239,840 | 1 | % | ||||||
Corporate Interest Expense, Net | 10,109 | 9,062 | 12 | % | ||||||
Goodwill and Intangible Asset Impairment Charges | 1,056 | 19,598 | (95 | )% | ||||||
Restructuring and Special Charges | — | 12,084 | nm | |||||||
Loss on Disposition of Business line | 20,270 | — | nm | |||||||
Total Costs and Expenses | 1,081,861 | 1,122,751 | (4 | )% | ||||||
Other Income | 3,013 | 1,304 | 131 | % | ||||||
Income Before Income Taxes | 44,131 | 42,262 | 4 | % | ||||||
Provision for Income Taxes | 18,542 | 15,039 | 23 | % | ||||||
Net Income | 25,589 | 27,223 | (6 | )% | ||||||
Net Loss Attributable to Noncontrolling Interests and Redeemable Noncontrolling Interests | 389 | 442 | (12 | )% | ||||||
Net Income Attributable to Shareholders of Crawford & Company | $ | 25,978 | $ | 27,665 | (6 | )% | ||||
Earnings Per Share - Basic: | ||||||||||
Class A Common Stock | $ | 0.51 | $ | 0.53 | (4 | )% | ||||
Class B Common Stock | $ | 0.43 | $ | 0.45 | (4 | )% | ||||
Earnings Per Share - Diluted: | ||||||||||
Class A Common Stock | $ | 0.50 | $ | 0.52 | (4 | )% | ||||
Class B Common Stock | $ | 0.42 | $ | 0.45 | (7 | )% | ||||
Cash Dividends Per Share: | ||||||||||
Class A Common Stock | $ | 0.28 | $ | 0.28 | — | % | ||||
Class B Common Stock | $ | 0.20 | $ | 0.20 | — | % | ||||
December 31, | December 31, | ||||||
2018 | 2017 | ||||||
ASSETS | |||||||
Current Assets: | |||||||
Cash and Cash Equivalents | $ | 53,119 | $ | 54,011 | |||
Accounts Receivable, Net | 131,117 | 174,172 | |||||
Unbilled Revenues, at Estimated Billable Amounts | 108,291 | 108,745 | |||||
Income Taxes Receivable | 4,084 | 7,987 | |||||
Prepaid Expenses and Other Current Assets | 24,237 | 25,452 | |||||
Total Current Assets | 320,848 | 370,367 | |||||
Net Property and Equipment | 34,303 | 41,664 | |||||
Other Assets: | |||||||
Goodwill | 96,890 | 96,916 | |||||
Intangible Assets Arising from Business Acquisitions, Net | 85,023 | 97,147 | |||||
Capitalized Software Costs, Net | 72,210 | 89,824 | |||||
Deferred Income Tax Assets | 22,146 | 24,359 | |||||
Other Noncurrent Assets | 70,022 | 67,659 | |||||
Total Other Assets | 346,291 | 375,905 | |||||
Total Assets | $ | 701,442 | $ | 787,936 | |||
LIABILITIES AND SHAREHOLDERS’ INVESTMENT | |||||||
Current Liabilities: | |||||||
Short-Term Borrowings | $ | 23,195 | $ | 24,641 | |||
Accounts Payable | 37,834 | 49,303 | |||||
Accrued Compensation and Related Costs | 66,530 | 75,892 | |||||
Self-Insured Risks | 15,246 | 13,407 | |||||
Income Taxes Payable | 3,145 | 2,703 | |||||
Deferred Rent | 15,919 | 15,717 | |||||
Other Accrued Liabilities | 32,391 | 36,563 | |||||
Deferred Revenues | 30,961 | 37,794 | |||||
Current Installments of Capital Leases | 89 | 571 | |||||
Total Current Liabilities | 225,310 | 256,591 | |||||
Noncurrent Liabilities: | |||||||
Long-Term Debt and Capital Leases, Less Current Installments | 167,126 | 200,460 | |||||
Deferred Revenues | 21,713 | 22,515 | |||||
Accrued Pension Liabilities | 74,323 | 87,035 | |||||
Other Noncurrent Liabilities | 32,024 | 27,596 | |||||
Total Noncurrent Liabilities | 295,186 | 337,606 | |||||
Redeemable Noncontrolling Interests | 5,500 | 6,775 | |||||
Shareholders’ Investment: | |||||||
Class A Common Stock, $1.00 Par Value | 30,927 | 31,439 | |||||
Class B Common Stock, $1.00 Par Value | 24,408 | 24,502 | |||||
Additional Paid-in Capital | 58,793 | 53,170 | |||||
Retained Earnings | 273,607 | 269,686 | |||||
Accumulated Other Comprehensive Loss | (216,447 | ) | (196,477 | ) | |||
Shareholders’ Investment Attributable to Shareholders of Crawford & Company | 171,288 | 182,320 | |||||
Noncontrolling Interests | 4,158 | 4,644 | |||||
Total Shareholders’ Investment | 175,446 | 186,964 | |||||
Total Liabilities and Shareholders’ Investment | $ | 701,442 | $ | 787,936 |
Crawford TPA Solutions: Broadspire | % | Crawford Claims Solutions | % | Crawford Specialty Solutions | % | |||||||||||||||||||
2018 | 2017 | Change | 2018 | 2017 | Change | 2018 | 2017 | Change | ||||||||||||||||
Revenues Before Reimbursements | $ | 102,183 | $ | 99,980 | 2.2 | % | $ | 92,132 | $ | 114,509 | (19.5 | )% | $ | 69,479 | $ | 84,278 | (17.6 | )% | ||||||
Direct Compensation, Fringe Benefits & Non-Employee Labor | 58,107 | 56,212 | 3.4 | % | 62,550 | 78,720 | (20.5 | )% | 35,745 | 43,568 | (18.0 | )% | ||||||||||||
% of Revenues Before Reimbursements | 56.9 | % | 56.2 | % | 67.9 | % | 68.7 | % | 51.4 | % | 51.7 | % | ||||||||||||
Expenses Other than Reimbursements, Direct Compensation, Fringe Benefits & Non-Employee Labor | 31,181 | 33,138 | (5.9 | )% | 23,562 | 26,040 | (9.5 | )% | 18,415 | 26,174 | (29.6 | )% | ||||||||||||
% of Revenues Before Reimbursements | 30.5 | % | 33.1 | % | 25.6 | % | 22.7 | % | 26.5 | % | 31.1 | % | ||||||||||||
Total Operating Expenses | 89,288 | 89,350 | (0.1 | )% | 86,112 | 104,760 | (17.8 | )% | 54,160 | 69,742 | (22.3 | )% | ||||||||||||
Operating Earnings (1) | $ | 12,895 | $ | 10,630 | 21.3 | % | $ | 6,020 | $ | 9,749 | (38.3 | )% | $ | 15,319 | $ | 14,536 | 5.4 | % | ||||||
% of Revenues Before Reimbursements | 12.6 | % | 10.6 | % | 6.5 | % | 8.5 | % | 22.0 | % | 17.2 | % |
Crawford TPA Solutions: Broadspire | % | Crawford Claims Solutions | % | Crawford Specialty Solutions | % | |||||||||||||||||||
2018 | 2017 | Change | 2018 | 2017 | Change | 2018 | 2017 | Change | ||||||||||||||||
Revenues Before Reimbursements | $ | 405,335 | $ | 390,583 | 3.8 | % | $ | 361,107 | $ | 365,074 | (1.1 | )% | $ | 304,529 | $ | 350,175 | (13.0 | )% | ||||||
Direct Compensation, Fringe Benefits & Non-Employee Labor | 235,813 | 220,743 | 6.8 | % | 240,185 | 244,845 | (1.9 | )% | 155,709 | 169,656 | (8.2 | )% | ||||||||||||
% of Revenues Before Reimbursements | 58.2 | % | 56.5 | % | 66.5 | % | 67.1 | % | 51.1 | % | 48.4 | % | ||||||||||||
Expenses Other than Reimbursements, Direct Compensation, Fringe Benefits & Non-Employee Labor | 132,613 | 131,616 | 0.8 | % | 111,086 | 102,702 | 8.2 | % | 97,784 | 127,101 | (23.1 | )% | ||||||||||||
% of Revenues Before Reimbursements | 32.7 | % | 33.7 | % | 30.8 | % | 28.1 | % | 32.1 | % | 36.3 | % | ||||||||||||
Total Operating Expenses | 368,426 | 352,359 | 4.6 | % | 351,271 | 347,547 | 1.1 | % | 253,493 | 296,757 | (14.6 | )% | ||||||||||||
Operating Earnings (1) | $ | 36,909 | $ | 38,224 | (3.4 | )% | $ | 9,836 | $ | 17,527 | (43.9 | )% | $ | 51,036 | $ | 53,418 | (4.5 | )% | ||||||
% of Revenues Before Reimbursements | 9.1 | % | 9.8 | % | 2.7 | % | 4.8 | % | 16.8 | % | 15.3 | % |
Crawford TPA Solutions: Broadspire | % | Crawford Claims Solutions | % | Crawford Specialty Solutions | % | |||||||||||||||||||
2018 | 2017 | Change | 2018 | 2017 | Change | 2018 | 2017 | Change | ||||||||||||||||
Revenues Before Reimbursements | $ | 102,183 | $ | 99,980 | 2.2 | % | $ | 92,132 | $ | 114,509 | (19.5 | )% | $ | 69,479 | $ | 84,278 | (17.6 | )% | ||||||
Direct Expense | 72,430 | 71,838 | 0.8 | % | 71,380 | 89,931 | (20.6 | )% | 43,147 | 54,689 | (21.1 | )% | ||||||||||||
% of Revenues Before Reimbursements | 70.9 | % | 71.9 | % | 77.5 | % | 78.5 | % | 62.1 | % | 64.9 | % | ||||||||||||
Segment Gross Profit | 29,753 | 28,142 | 5.7 | % | 20,752 | 24,578 | (15.6 | )% | 26,332 | 29,589 | (11.0 | )% | ||||||||||||
% of Revenues Before Reimbursements | 29.1 | % | 28.1 | % | 22.5 | % | 21.5 | % | 37.9 | % | 35.1 | % | ||||||||||||
Indirect Costs | 16,858 | 17,512 | (3.7 | )% | 14,732 | 14,829 | (0.7 | )% | 11,013 | 15,053 | (26.8 | )% | ||||||||||||
% of Revenues Before Reimbursements | 16.5 | % | 17.5 | % | 16.0 | % | 13.0 | % | 15.9 | % | 17.9 | % | ||||||||||||
Operating Earnings (1) | $ | 12,895 | $ | 10,630 | 21.3 | % | $ | 6,020 | $ | 9,749 | (38.3 | )% | $ | 15,319 | $ | 14,536 | 5.4 | % | ||||||
% of Revenues Before Reimbursements | 12.6 | % | 10.6 | % | 6.5 | % | 8.5 | % | 22.0 | % | 17.2 | % |
Crawford TPA Solutions: Broadspire | % | Crawford Claims Solutions | % | Crawford Specialty Solutions | % | |||||||||||||||||||
2018 | 2017 | Change | 2018 | 2017 | Change | 2018 | 2017 | Change | ||||||||||||||||
Revenues Before Reimbursements | $ | 405,335 | $ | 390,583 | 3.8 | % | $ | 361,107 | $ | 365,074 | (1.1 | )% | $ | 304,529 | $ | 350,175 | (13.0 | )% | ||||||
Direct Expense | 296,111 | 284,529 | 4.1 | % | 284,241 | 289,399 | (1.8 | )% | 197,592 | 234,283 | (15.7 | )% | ||||||||||||
% of Revenues Before Reimbursements | 73.1 | % | 72.8 | % | 78.7 | % | 79.3 | % | 64.9 | % | 66.9 | % | ||||||||||||
Segment Gross Profit | 109,224 | 106,054 | 3.0 | % | 76,866 | 75,675 | 1.6 | % | 106,937 | 115,892 | (7.7 | )% | ||||||||||||
% of Revenues Before Reimbursements | 26.9 | % | 27.2 | % | 21.3 | % | 20.7 | % | 35.1 | % | 33.1 | % | ||||||||||||
Indirect Costs | 72,315 | 67,830 | 6.6 | % | 67,030 | 58,148 | 15.3 | % | 55,901 | 62,474 | (10.5 | )% | ||||||||||||
% of Revenues Before Reimbursements | 17.8 | % | 17.4 | % | 18.6 | % | 15.9 | % | 18.4 | % | 17.8 | % | ||||||||||||
Operating Earnings (1) | $ | 36,909 | $ | 38,224 | (3.4 | )% | $ | 9,836 | $ | 17,527 | (43.9 | )% | $ | 51,036 | $ | 53,418 | (4.5 | )% | ||||||
% of Revenues Before Reimbursements | 9.1 | % | 9.8 | % | 2.7 | % | 4.8 | % | 16.8 | % | 15.3 | % |
2018 | 2017 | |||||||
Cash Flows From Operating Activities: | ||||||||
Net Income | $ | 25,589 | $ | 27,223 | ||||
Reconciliation of Net Income to Net Cash Provided by Operating Activities: | ||||||||
Depreciation and Amortization | 44,079 | 41,658 | ||||||
Goodwill and Intangible Asset Impairment Charges | 1,056 | 19,598 | ||||||
Deferred Income Taxes | 7,947 | (2,358 | ) | |||||
Stock-Based Compensation Costs | 6,196 | 6,661 | ||||||
Loss on Disposition of Business Line | 20,270 | — | ||||||
Changes in Operating Assets and Liabilities, Net of Effects of Acquisitions and Dispositions: | ||||||||
Accounts Receivable, Net | 7,844 | (14,844 | ) | |||||
Unbilled Revenues, Net | (18,588 | ) | (2,644 | ) | ||||
Accrued or Prepaid Income Taxes | 2,270 | (508 | ) | |||||
Accounts Payable and Accrued Liabilities | (8,952 | ) | (14,678 | ) | ||||
Deferred Revenues | (4,969 | ) | (3,482 | ) | ||||
Accrued Retirement Costs | (25,896 | ) | (15,364 | ) | ||||
Prepaid Expenses and Other Operating Activities | (4,427 | ) | (505 | ) | ||||
Net Cash Provided by Operating Activities | 52,419 | 40,757 | ||||||
Cash Flows From Investing Activities: | ||||||||
Acquisitions of Property and Equipment | (14,052 | ) | (19,044 | ) | ||||
Cash Proceeds from Disposition of Business Line | 39,187 | — | ||||||
Capitalization of Computer Software Costs | (15,968 | ) | (25,867 | ) | ||||
Payments for Business Acquisitions, Net of Cash Acquired | (2,500 | ) | (36,029 | ) | ||||
Other Investing Activities | (218 | ) | (926 | ) | ||||
Net Cash Provided by (Used in) Investing Activities | 6,449 | (81,866 | ) | |||||
Cash Flows From Financing Activities: | ||||||||
Cash Dividends Paid | (13,528 | ) | (13,700 | ) | ||||
Payments Related to Shares Received for Withholding Taxes Under Stock-Based Compensation Plans | (1,110 | ) | (1,933 | ) | ||||
Proceeds from Shares Purchased Under Employee Stock-Based Compensation Plans | 1,387 | 1,154 | ||||||
Repurchases of Common Stock | (10,409 | ) | (7,422 | ) | ||||
Increases in Short-Term and Revolving Credit Facility Borrowings | 101,428 | 94,407 | ||||||
Payments on Short-Term and Revolving Credit Facility Borrowings | (135,433 | ) | (58,490 | ) | ||||
Payments on Capital Lease Obligations | (477 | ) | (1,233 | ) | ||||
Dividends Paid to Noncontrolling Interests | (574 | ) | (514 | ) | ||||
Capitalized Loan Costs | (23 | ) | (1,926 | ) | ||||
Net Cash (Used In) Provided by Financing Activities | (58,739 | ) | 10,343 | |||||
Effects of Exchange Rate Changes on Cash and Cash Equivalents | (1,021 | ) | 3,208 | |||||
Decrease in Cash and Cash Equivalents | (892 | ) | (27,558 | ) | ||||
Cash and Cash Equivalents at Beginning of Year | 54,011 | 81,569 | ||||||
Cash and Cash Equivalents at End of Period | $ | 53,119 | $ | 54,011 |
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