EX-99.1 2 dex991.htm PRESS RELEASE DATED FEBRUARY 4, 2008 Press Release dated February 4, 2008

Exhibit 99.1

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CRAWFORD & COMPANY 1001 SUMMIT BOULEVARD P.O. BOX 5047 ATLANTA, GEORGIA 30302 (404) 256-0830

 

FOR IMMEDIATE RELEASE     Date: February 4, 2008
    From: Jeffrey T. Bowman
    Chief Executive Officer

 

 

Crawford Reports 2007 Fourth Quarter Improvement in Revenues and Net Income -

Quarter and Annual Record Results Generated by International Operations

Crawford & Company (NYSE: CRDA and CRDB), the world’s largest independent provider of claims management solutions to insurance companies and self-insured entities, today announced its financial results for the fourth quarter and year ended December 31, 2007.

Consolidated Results

Fourth quarter 2007 consolidated revenues before reimbursements totaled $245.2 million compared to $228.3 million in the 2006 fourth quarter. Fourth quarter 2007 net income was $3.3 million compared to a net loss of ($1.3) million for the 2006 fourth quarter. Fourth quarter 2007 earnings per share was $0.07 compared to a loss per share of ($0.03) in the prior-year quarter. During the 2007 fourth quarter the Company recognized previously unrecognized tax benefits which increased net income by approximately $640,000, or $0.01 per share. Net loss in the 2006 fourth quarter included a restructuring charge and loss on early extinguishment of debt of $1.9 million, net of related income taxes, or $0.04 per share, resulting from the purchase of Broadspire Services, Inc during the 2006 fourth quarter.

Consolidated revenues before reimbursements for the year ended December 31, 2007 were $975.1 million compared with $819.5 million in 2006. Net income for 2007 totaled $16.1 million, or $0.32 per share, compared with $15.0 million, or $0.30 per share, for 2006. Comparison of net income year-over-year is affected by several non-recurring items, including: a current year gain on disposal of assets of $2.5 million, net of related income taxes, or $0.05 per share, as a result of the 2007 sale of the Company’s subrogation services unit; the recognition of a $3.1 million gain in 2007, net of related income taxes, or $0.06 per share, related to the 2006 sale of the Company’s former corporate headquarters; a gain in the prior year of $2.0 million, net of related income taxes, or $0.04 per share, resulting from the third quarter 2006 sale of the Company’s investigative services units; and a loss of $1.9 million, net of related income taxes, or $0.04 per share, in the 2006 fourth quarter resulting from a restructuring charge and loss on early extinguishment of debt from the purchase of Broadspire Services, Inc.

 

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CRAWFORD & COMPANY 1001 SUMMIT BOULEVARD P.O. BOX 5047 ATLANTA, GEORGIA 30302 (404) 256-0830

 

During the 2007 fourth quarter, the Company made a discretionary $2.5 million prepayment on its long-term debt. For the year, the Company made $12.5 million in discretionary prepayments on its long-term borrowings. Crawford’s operating cash flows for 2007 reflected cash provided of $23.3 million compared to the prior year of $52.7 million. This change was primarily due to growth in unbilled revenues during 2007 and the reduction of deferred revenues associated with the completion of claims assumed in the Broadspire acquisition. The Company’s consolidated cash and cash equivalent position as of December 31, 2007 totaled $50.9 million, down $10.8 million from $61.7 million at December 31, 2006.

International Operations

Fourth quarter 2007 revenues before reimbursements for international operations grew to a record of $107.3 million from $84.5 million for the same period in 2006. Compared to the 2006 fourth quarter, during the current quarter the U.S. dollar was weaker against most major foreign currencies, resulting in a net exchange rate benefit in the current quarter. Excluding the benefit of exchange rate fluctuations, international revenues would have been $97.8 million in the 2007 fourth quarter, reflecting growth in revenues on a constant dollar basis of 15.8%. The acquisition of Specialty Liability Services, Ltd. in the United Kingdom during the 2006 fourth quarter contributed incremental revenues of $1.3 million in the 2007 fourth quarter. International operating expenses increased by $19.9 million in U.S. dollars, a 25.7% increase, and by 14.9% on a constant dollar basis. Operating earnings improved to a record $9.9 million in the current quarter, increasing 42.6% over last year’s fourth quarter operating earnings of $6.9 million. The related operating margin was 9.2% in the 2007 fourth quarter, improving over the 8.2% operating margin in the 2006 fourth quarter.

U.S. Property & Casualty

U.S. property & casualty revenues before reimbursements were $40.4 million in the fourth quarter of 2007 compared to $44.0 million in the 2006 fourth quarter, primarily as a result of lower claims volumes. Revenues generated by the Company’s catastrophe adjuster group were $1.8 million in the 2007 fourth quarter, declining slightly from $2.1 million in the 2006 period. The prior-year quarter included $588,000 in revenues generated by the Company’s subrogation services unit which was sold February 28, 2007. Operating earnings in the U.S. property and casualty segment declined to a loss of ($911,000), or (2.3%) of revenues, compared to a loss of ($39,000), or (0.1%) of revenues in the 2006 fourth quarter.

Broadspire

Revenues before reimbursements from the Broadspire segment were $75.0 million in the 2007 fourth quarter compared to $68.2 million generated in the 2006 quarter. Incremental revenues associated with Broadspire Management Services, Inc., acquired in the 2006 fourth quarter, totaled $12.9 million in the 2007 fourth quarter. In the 2007 fourth quarter, the Broadspire segment’s operating earnings improved to an operating loss of ($277,000), or (0.4%) of revenues from a loss of ($3.5) million, or (5.2%) of revenues.

 

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CRAWFORD & COMPANY 1001 SUMMIT BOULEVARD P.O. BOX 5047 ATLANTA, GEORGIA 30302 (404) 256-0830

 

Legal Settlement Administration

Legal settlement administration revenues before reimbursements were $22.5 million for the 2007 fourth quarter, compared to $31.7 million in the 2006 quarter. Operating earnings totaled $3.4 million in the 2007 fourth quarter, or an operating margin of 15.3% of revenues, compared to $3.7 million, or 11.7% of revenues, in the prior-year period. The segment’s awarded project backlog totaled approximately $45.0 million at December 31, 2007.

Mr. Jeffrey T. Bowman, chief executive officer of Crawford & Company, stated, “Our fourth quarter 2007 operating results reflect strong performance in our international business which generated record revenues and operating earnings for both the fourth quarter and full year, offset by declining revenues in our U.S. property & casualty and legal settlement administration segments. During 2006, the legal settlement administration segment was completing several major securities class action projects and by comparison is experiencing today a period of comparatively slower class action activity. Our U.S. property & casualty segment continues to experience a downturn in revenues, primarily as a result of lower industry-wide frequency and the absence of significant storm activity. We were pleased to make progress against our outstanding long-term borrowings by making $12.5 million in voluntary payments during the year.”

Mr. Bowman concluded, “Despite challenging macro trends in U.S. property and casualty claims frequencies and in our class action business, our outlook for 2008 anticipates improved operating results in each of our operating segments. This company and management team is focused on key financial measures and we are committed to managing our operations toward improved operating margins during the coming year.”

Crawford & Company provided guidance for 2008 as follows:

 

   

Consolidated revenues before reimbursements between $990 million and $1.02 billion.

 

   

Consolidated operating earnings between $54.0 million and $58.7 million.

 

   

After reflecting stock-based compensation expense, net corporate interest expense, intangible asset amortization expense, and income taxes, consolidated net income between $19.1 million and $22.1 million, or $0.38 to $0.44 per share.

Crawford & Company’s management will host a conference call with analysts on Monday, February 4, 2008 at 3:00 P.M. EST to discuss quarterly earnings and other developments. The call will be recorded and available for replay through February 11, 2008. You may dial 1-800-642-1687 (706-645-9291 international) to listen to the replay. The access code is 32434094. Alternatively, please visit our web site at www.crawfordandcompany.com for a live audio web cast.

 

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CRAWFORD & COMPANY 1001 SUMMIT BOULEVARD P.O. BOX 5047 ATLANTA, GEORGIA 30302 (404) 256-0830

 

Further information regarding the Company’s financial position, operating results, and cash flows for the quarter and year ended December 31, 2007 is shown on the attached unaudited statements. Operating earnings (a non-GAAP financial measure) is the key financial performance measure used by the Company’s senior management to evaluate the performance of its segments and make resource allocation decisions. The Company believes this measure is useful to investors in that it allows them to evaluate operating performance using the same criteria that management uses. Operating earnings exclude net corporate interest expense, stock option expense, income tax expense, amortization of customer relationship intangible assets, unallocated corporate and shared costs and certain other charges and credits. Net corporate interest expense, stock option expense and income taxes are recurring components of the Company’s net income, but they are not considered part of operating earnings since they are managed on a corporate-wide basis. Net corporate interest expense results from capital structure decisions made by the Company, stock option expense relates to historically granted stock options which are not allocated to its operating units, and income taxes are based on statutory rates in effect in each of the locations where the Company provides services and vary throughout the world. Amortization expense relates to non-cash amortization of customer relationship intangible assets resulting from business combinations. These costs are not allocated to the segments for assessing performance. None of the aforementioned costs relate directly to the performance of the Company’s services and are therefore excluded in order to accurately assess the results of segment operating activities on a consistent basis. Certain other credits and charges represent events (gain on disposal of assets, loss on extinguishment of debt, etc.) that are not considered part of segment operating earnings since they historically have not regularly impacted the Company’s operating performance and are not expected to regularly impact future performance. Following is a reconciliation of segment operating earnings (loss) to consolidated net income on a GAAP basis and the related margins as a percentage of revenues before reimbursements for all periods presented:

 

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CRAWFORD & COMPANY 1001 SUMMIT BOULEVARD P.O. BOX 5047 ATLANTA, GEORGIA 30302 (404) 256-0830

 

     Quarter ended     Year ended  
     December 31,
2007
    %
Margin
    December 31,
2006
    %
Margin
    December 31,
2007
     %
Margin
    December 31,
2006
     %
Margin
 

Operating Earnings (Loss):

                  

U.S. property & casualty

   $ (911 )   (2.3 )%   $ (39 )   (0.1 )%   $ 4,675      2.6 %   $ 13,014      6.2 %

International operations

     9,850     9.2       6,906     8.2       24,660      6.5       14,451      4.8  

Broadspire

     (277 )   (0.4 )     (3,522 )   (5.2 )     3,821      1.2       (21,603 )    (12.3 )

Legal settlement administration

     3,449     15.3       3,707     11.7       12,521      12.5       22,982      17.6  

Unallocated corporate and shared (costs) credits

     (2,055 )   (0.8 )     (381 )   (0.1 )     (8,447 )    (0.9 )     3,351      0.4  

Add/(Deduct):

                  

Other credits (charges)

     —       —         (3,096 )   (1.4 )     8,824      0.9       (27 )    —    

Stock option expense

     (290 )   (0.1 )     (355 )   (0.2 )     (1,191 )    (0.1 )     (1,220 )    (0.1 )

Amortization expense

     (1,507 )   (0.6 )     (1,124 )   (0.5 )     (6,025 )    (0.6 )     (1,124 )    (0.1 )

Net corporate interest expense

     (4,154 )   (1.7 )     (3,322 )   (1.5 )     (17,326 )    (1.8 )     (5,753 )    (0.7 )

Income taxes

     (801 )   (0.3 )     (72 )   (— )     (5,396 )    (0.6 )     (9,060 )    (1.1 )
                                          

Net income

   $ 3,304     1.3     $ (1,298 )   (0.6 )   $ 16,116      1.7     $ 15,011      1.8  
                                          

Based in Atlanta, Georgia, Crawford & Company (www.crawfordandcompany.com) is the world’s largest independent provider of claims management solutions to insurance companies and self-insured entities, with a global network of more than 700 offices in 63 countries. Major service lines include property and casualty claims management, integrated claims and medical management for workers’ compensation, legal settlement administration, including class action and warranty inspections, and risk management information services. The Company’s shares are traded on the NYSE under the symbols CRDA and CRDB.

Except for historical information contained herein, the matters discussed in this news release are forward-looking statements that involve risks and uncertainties. The results achieved in the quarter and year-to-date periods ended December 31, 2007 are not necessarily indicative of future prospects for the Company. Actual results in future quarters may differ materially. For a discussion regarding factors which could affect the Company’s financial performance, see the Company’s Form 10-K for the year ended December 31, 2006 filed with the Securities and Exchange Commission, in particular the information under the headings “Business,” “Risk Factors,” “Legal Proceedings” and “Management’s Discussion and Analysis of Financial Condition and Results of Operations.”

 

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CRAWFORD & COMPANY 1001 SUMMIT BOULEVARD P.O. BOX 5047 ATLANTA, GEORGIA 30302 (404) 256-0830

 

The Company undertakes no obligation to publicly release any revisions to any forward-looking statements contained herein to reflect events or circumstances occurring after the date hereof or to reflect the occurrence of unanticipated events. The Company’s actual results may differ materially from those projected in forward-looking statements made by, or on behalf of, the Company.

FOR FURTHER INFORMATION REGARDING THIS PRESS RELEASE, PLEASE CALL BRUCE SWAIN AT (404) 300-1051.

 

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CRAWFORD & COMPANY 1001 Summit Blvd., Atlanta, GA 30319 (404) 300-1000

CRAWFORD & COMPANY

CONDENSED CONSOLIDATED STATEMENTS OF INCOME

Unaudited

(In Thousands, Except Per Share Amounts)

 

Year Ended December 31

   2007    2006     % Change  

Revenues:

       

Revenues Before Reimbursements

   $ 975,143    $ 819,522     19 %

Reimbursements

     76,135      80,858     -6 %
                 

Total Revenues

     1,051,278      900,380     17 %

Costs and Expenses:

       

Cost of Services Before Reimbursements

     733,392      638,174     15 %

Reimbursements

     76,135      80,858     -6 %
                 

Total Cost of Services

     809,527      719,032     13 %

Selling, General, and Administrative

     211,737      151,497     40 %

Corporate Interest Expense, Net

     17,326      5,753     201 %

Restructuring Costs

     —        1,695     nm  
                 

Total Costs and Expenses

     1,038,590      877,977     18 %

Loss on Early Retirement of Debt

     —        (1,401 )   nm  

Gain on Disposal of Investigations Business

     —        3,069     nm  

Gain on Disposal of Subrogation Business

     3,980      —       nm  

Gain on Sale of Former Corporate Headquarters

     4,844      —       nm  
                 

Income Before Income Taxes

     21,512      24,071     -11 %

Income Taxes

     5,396      9,060     -40 %
                 

Net Income

   $ 16,116    $ 15,011     7 %
                 

Earnings Per Share - Basic and Diluted

   $ 0.32    $ 0.30     7 %
                 

Average Numbers of Shares Used to Compute:

       

Basic Earnings Per Share

     50,464      49,423    
                 

Diluted Earnings Per Share

     50,598      49,576    
                 

Cash Dividends Per Share:

       

Class A Common Stock

   $ 0.00    $ 0.18    

Class B Common Stock

   $ 0.00    $ 0.18    

 

nm = not meaningful

 

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CRAWFORD & COMPANY 1001 Summit Blvd., Atlanta, GA 30319 (404) 300-1000

CRAWFORD & COMPANY

CONDENSED CONSOLIDATED STATEMENTS OF INCOME

Unaudited

(In Thousands, Except Per Share Amounts)

 

Quarter Ended December 31,

   2007    2006     % Change  

Revenues:

       

Revenues Before Reimbursements

   $ 245,224    $ 228,256     7 %

Reimbursements

     21,261      18,352     16 %
                 

Total Revenues

     266,485      246,608     8 %

Costs and Expenses:

       

Cost of Services Before Reimbursements

     186,203      177,646     5 %

Reimbursements

     21,261      18,352     16 %
                 

Total Cost of Services

     207,464      195,998     6 %

Selling, General, and Administrative

     50,762      45,418     12 %

Corporate Interest Expense, Net

     4,154      3,322     25 %

Restructuring Costs

     —        1,695     nm  
                 

Total Costs and Expenses

     262,380      246,433     6 %

Loss on Early Retirement of Debt

     —        (1,401 )   nm  
                 

Income (Loss) Before Income Taxes

     4,105      (1,226 )   -435 %

Income Taxes

     801      72     1013 %
                 

Net Income (Loss)

   $ 3,304    $ (1,298 )   255 %
                 

Earnings (Loss) Per Share - Basic and Diluted

   $ 0.07    $ (0.03 )   233 %
                 

Average Numbers of Shares Used to Compute:

       

Basic Earnings Per Share

     50,551      50,229    
                 

Diluted Earnings Per Share

     50,643      50,229    
                 

Cash Dividends Per Share:

       

Class A Common Stock

   $ 0.00    $ 0.00    

Class B Common Stock

   $ 0.00    $ 0.00    

 

nm = not meaningful

 

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CRAWFORD & COMPANY 1001 Summit Blvd., Atlanta, GA 30319 (404) 300-1000

CRAWFORD & COMPANY

SUMMARY RESULTS BY OPERATING SEGMENT

Year Ended December 31

Unaudited

(In Thousands, Except Percentages)

 

     U.S. Property &
Casualty
    %
Change
    International     %
Change
    Broadspire     %
Change
    Legal Settlement
Administration
    %
Change
 
     2007     2006       2007     2006       2007     2006       2007     2006    

Revenues Before Reimbursements

   $ 177,179     $ 209,985     -15.6 %   $ 376,639     $ 303,697     24.0 %   $ 320,774     $ 175,149     83.1 %   $ 100,551     $ 130,691     -23.1 %

Compensation & Benefits

     117,347       135,422     -13.3 %     260,041       212,522     22.4 %     197,893       118,342     67.2 %     50,483       53,122     -5.0 %

% of Revenues

     66.3 %     64.5 %       69.1 %     69.9 %       61.7 %     67.5 %       50.2 %     40.6 %  

Expenses Other than Reimbursements, Compensation & Benefits

     55,157       61,549     -10.4 %     91,938       76,724     19.8 %     119,060       78,410     51.8 %     37,547       54,587     -31.2 %

% of Revenues

     31.1 %     29.3 %       24.4 %     25.3 %       37.1 %     44.8 %       37.3 %     41.8 %  
                                                                                        

Total Operating Expenses

     172,504       196,971     -12.4 %     351,979       289,246     21.7 %     316,953       196,752     61.1 %     88,030       107,709     -18.3 %
                                                                                        

Operating Earnings (Loss) (1)

   $ 4,675     $ 13,014     -64.1 %   $ 24,660     $ 14,451     70.6 %   $ 3,821     $ (21,603 )   117.7 %   $ 12,521     $ 22,982     -45.5 %

% of Revenues

     2.6 %     6.2 %       6.5 %     4.8 %       1.2 %     -12.3 %       12.5 %     17.6 %  
                                                                                        

Quarter Ended December 31

Unaudited

(In Thousands, Except Percentages)

 

     U.S. Property &
Casualty
    %
Change
    International     %
Change
    Broadspire     %
Change
    Legal Settlement
Administration
    %
Change
 
     2007     2006       2007     2006       2007     2006       2007     2006    

Revenues Before Reimbursements

   $ 40,393     $ 43,960     -8.1 %   $ 107,309     $ 84,460     27.1 %   $ 75,002     $ 68,159     10.0 %   $ 22,520     $ 31,677     -28.9 %

Compensation & Benefits

     27,053       29,813     -9.3 %     71,019       57,532     23.4 %     45,750       44,596     2.6 %     11,859       14,493     -18.2 %

% of Revenues

     67.0 %     67.8 %       66.2 %     68.1 %       61.0 %     65.5 %       52.7 %     45.8 %  

Expenses Other than Reimbursements, Compensation & Benefits

     14,251       14,186     0.5 %     26,440       20,022     32.1 %     29,529       27,085     9.0 %     7,212       13,477     -46.5 %

% of Revenues

     35.3 %     32.3 %       24.6 %     23.7 %       39.4 %     39.7 %       32.0 %     42.5 %  
                                                                                        

Total Operating Expenses

     41,304       43,999     -6.1 %     97,459       77,554     25.7 %     75,279       71,681     5.0 %     19,071       27,970     -31.8 %
                                                                                        

Operating Earnings (Loss) (1)

   $ (911 )   $ (39 )   2235.9 %   $ 9,850     $ 6,906     42.6 %   $ (277 )   $ (3,522 )   92.1 %   $ 3,449     $ 3,707     -7.0 %

% of Revenues

     -2.3 %     -0.1 %       9.2 %     8.2 %       -0.4 %     -5.2 %       15.3 %     11.7 %  
                                                                                        

 

(1) A non-GAAP financial measurement which represents earnings before gain on disposal of assets, net corporate interest expense, acquisition related intangible assets amortization expense, stock option expense, income tax expense, and certain unallocated corporate and shared costs.

 

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CRAWFORD & COMPANY 1001 Summit Blvd., Atlanta, GA 30319 (404) 300-1000

CRAWFORD & COMPANY

CONDENSED CONSOLIDATED BALANCE SHEETS

December 31, 2007 and December 31, 2006

(In Thousands)

 

     Unaudited
December 31
2007
    *
December 31
2006
 

Assets

    

Current Assets:

    

Cash and Cash Equivalents

   $ 50,855     $ 61,674  

Short-term Investment

     —         5,000  

Accounts Receivable, Net

     178,528       178,447  

Unbilled Revenues, Net

     136,652       117,098  

Prepaid Expenses and Other Current Assets

     17,398       19,924  
                

Total Current Assets

     383,433       382,143  
                

Property and Equipment, at Cost

     153,733       140,729  

Less Accumulated Depreciation

     (104,467 )     (99,845 )
                

Net Property and Equipment

     49,266       40,884  
                

Other Assets:

    

Goodwill

     263,769       256,700  

Intangible Assets, Net

     118,678       127,869  

Capitalized Software Costs, Net

     40,032       36,903  

Deferred Income Tax Assets

     14,222       13,498  

Other Noncurrent Assets

     29,362       34,991  
                

Total Other Assets

     466,063       469,961  
                

Total Assets

   $ 898,762     $ 892,988  
                

Liabilities and Shareholders’ Investment

    

Current Liabilities:

    

Short-Term Borrowings

   $ 29,389     $ 27,795  

Accounts Payable

     39,601       42,262  

Accrued Compensation and Related Costs

     69,655       64,636  

Other Accrued Liabilities

     57,360       46,526  

Self-Insured Risks

     18,290       21,722  

Accrued Income Taxes

     6,415       363  

Deposit on Sale of Former Corporate Headquarters

     —         8,000  

Deferred Revenues

     64,363       68,359  

Current Installments of Notes Payable and Capital Leases

     2,475       2,621  
                

Total Current Liabilities

     287,548       282,284  
                

Noncurrent Liabilities:

    

Notes Payable and Capital Leases, net of current portions

     183,449       199,044  

Deferred Revenues

     58,925       77,110  

Self-Insured Risks

     18,439       12,338  

Postretirement Medical Benefit Obligation

     1,898       2,440  

Accrued Pension Liabilities

     76,977       90,058  

Other Noncurrent Liabilities

     12,265       14,019  
                

Total Noncurrent Liabilities

     351,953       395,009  
                

Minority Interest in Equity of Consolidated Affiliates

     5,046       4,544  

Shareholders’ Investment:

    

Class A Common Stock, $1.00 Par Value

     25,935       25,741  

Class B Common Stock, $1.00 Par Value

     24,697       24,697  

Additional Paid-in Capital

     19,057       15,468  

Retained Earnings

     223,793       207,891  

Accumulated Other Comprehensive Loss

     (39,267 )     (62,646 )
                

Total Shareholders’ Investment

     254,215       211,151  
                

Total Liabilities and Shareholders’ Investment

   $ 898,762     $ 892,988  
                

 

* Derived from the audited Consolidated Balance Sheet

 

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LOGO

Press Release

CRAWFORD & COMPANY 1001 Summit Blvd., Atlanta, GA 30319 (404) 300-1000

CRAWFORD & COMPANY

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

December 31, 2007 and December 31, 2006

Unaudited

(In Thousands)

 

     2007     2006  

Cash Flows From Operating Activities:

    

Net Income

   $ 16,116     $ 15,011  

Reconciliation of Net Income to Net Cash Provided by

    

Operating Activities:

    

Depreciation and Amortization Expense

     29,646       20,545  

Deferred Income Tax (Benefit) Provision

     (1,103 )     3,063  

Stock-Based Compensation Costs

     2,929       3,567  

Net Loss on Sales of Property and Equipment

     554       267  

Loss on Early Extinguishment of Debt

     —         1,401  

Gain on Sale of Investigations Business

     —         (3,069 )

Gain on Sale of Subrogation Business

     (3,980 )     —    

Gain on 2006 Sale of Former Corporate Headquarters

     (4,844 )     —    

Changes in Operating Assets and Liabilities, net of effects of acquisitions and disposition:

    

Accounts Receivable, net

     12,450       11,078  

Unbilled Revenues, net

     (11,298 )     6,144  

Accrued Income Taxes

     3,988       (2,920 )

Accounts Payable and Accrued Liabilities

     (1,949 )     210  

Deferred Revenues

     (22,571 )     (6,091 )

Accrued Retirement Costs

     2,188       5,064  

Prepaid Expenses and Other Operating Activities

     1,158       (1,553 )
                

Net Cash Provided by Operating Activities

     23,284       52,717  
                

Cash Flows From Investing Activities:

    

Acquisitions of Property and Equipment, net

     (15,734 )     (12,707 )

Capitalization of Computer Software Costs

     (11,980 )     (9,852 )

Proceeds from Sale of Investment Security

     5,000       —    

Proceeds from Sale of Subrogation Unit

     5,000       —    

Deposit Received on Sale of Real Estate

     —         8,000  

Proceeds from Sale of Investigations Unit

     —         3,000  

Payments for Business Acquisitions, net of Cash Acquired

     (1,323 )     (162,461 )

Other Investing Activities

     (50 )     (586 )
                

Net Cash Used in Investing Activities

     (19,087 )     (174,606 )
                

Cash Flows From Financing Activities:

    

Dividends Paid

     —         (8,869 )

Proceeds from Stock Issued to Employees Under Incentive Plans

     717       1,912  

Short-Term Borrowings, net

     (1,483 )     (1,617 )

Proceeds from Long-Term Borrowings

     —         210,000  

Payments on Long-Term Debt and Capital Lease Obligations

     (15,515 )     (60,946 )

Other Financing Activities

     (908 )     (4,694 )
                

Net Cash (Used in) Provided by Financing Activities

     (17,189 )     135,786  
                

Effect of Exchange Rate Changes on Cash and Cash Equivalents

     2,173       929  
                

(Decrease) Increase in Cash and Cash Equivalents

     (10,819 )     14,826  

Cash and Cash Equivalents at Beginning of Year

     61,674       46,848  
                

Cash and Cash Equivalents at End of Year

   $ 50,855     $ 61,674  
                

 

Page 11 of 11