Crawford Reports First Quarter Results

Apr 19, 2001, 01:00 ET from Crawford & Company

    ATLANTA, April 19 /PRNewswire/ -- Grover L. Davis, Chief Executive Officer
 of Crawford & Company (NYSE:   CRD.A CRD.B), announced the Company's financial
 results for the quarter ended March 31, 2001.  First quarter revenues grew to
 $179.5 million in 2001, increasing 1% over the $177.4 million reported for the
 first quarter of 2000.  Operating income (income before amortization of
 goodwill, net corporate interest and taxes) in the quarter totaled $15.3
 million, down 18% from $18.7 million in the 2000 first quarter.  Net income
 per share declined from $0.21 per share in 2000 to $0.17 per share in 2001.
     Domestic revenues grew 2%, from $128.4 million in the first quarter of
 2000 to $131.5 million in the current quarter.  First quarter international
 revenues declined 2%, from $49.0 million in 2000 to $48.0 million in 2001.
 Excluding the adverse impact of exchange rate fluctuations due to the strong
 U.S. dollar, international revenues would have increased by 7% in the quarter.
     Mr. Davis stated, "Domestically, we enjoyed a rebound in revenues from the
 insurance company market where our revenues grew nearly 8%, from $64.2 million
 in the first quarter of 2000 to $69.1 million for the current quarter.  This
 growth came despite the continued lack of significant weather-related claims
 activity in the quarter.  Revenues from surveillance services more than
 quadrupled over the year earlier quarter, to $2.2 million, as we rapidly
 expand this business throughout our branch network.  We are targeting
 surveillance services revenues of more than $10 million for 2001, up from $5
 million in 2000.  Continued growth in managed care services as a result of our
 strategic partnership with a large domestic insurer also helped us increase
 our penetration in the insurance company market."
     "Domestic revenues from self-insured clients decreased slightly during the
 quarter, from $50.6 million in 2000 to $50.1 million in 2001, while revenues
 from class action services were down 10%, to $12.3 million."  Mr. Davis
 continued, "Class action  revenues can fluctuate based on the timing of
 project awards.  We have already been awarded several major projects that will
 contribute to revenues over the next two quarters and a number of other
 potential awards are awaiting final court settlement."
     Concluding, he said, "I am not satisfied with our operating margin for the
 quarter, which declined from 10.6% in 2000 to 8.5% in 2001, due primarily to
 lower than anticipated revenues.  We intend to manage our costs carefully over
 the balance of the year in order to improve our operating performance."
     Further information regarding the Company's financial position and
 operating results for the quarter ended March 31, 2001 is shown on the
 attached statements.
     Crawford & Company is the world's largest independent provider of
 diversified services to insurance companies, self-insured corporations and
 governmental entities.  Services provided include claims and risk management,
 loss adjustment, healthcare management, class action administration and risk
 information services.
     Crawford & Company is based in Atlanta, Georgia.  It has approximately
 10,000 employees worldwide, and operates over 700 offices in 65 countries.
 The Corporation's shares are publicly traded on the New York Stock Exchange
 under the symbols CRDA and CRDB.  Its web address is crawfordandcompany.com .
    Except for historical information contained herein, the matters discussed
 n this news release are forward-looking statements that involve risks and
 ncertainties.  The results achieved in the quarter ended March 31, 2001 are
 ot necessarily indicative of future prospects for the Company.  Actual
 esults in future quarters may differ materially.  For a complete discussion
 egarding factors which could affect the Company's financial performance, see
 he Company's Form 10-K for the year ended December 31, 2000 filed with the
 ecurities and Exchange Commission, in particular the information under the
 eadings "Business," "Legal Proceedings" and "Management's Discussion and
 nalysis of Financial Condition and Results of Operations."
    The Company undertakes no obligation to publicly release any revisions to
 ny forward-looking statements contained herein to reflect events or
 ircumstances occurring after the date hereof or to reflect the occurrence of
 nanticipated events.  The Company's actual results may differ materially from
 hose projected in forward-looking statements made by, or on behalf of, the
 ompany.
     Crawford & Company's conference call with analysts on Monday, April 23,
 2001 will be recorded and available for replay through April 30, 2001.  You
 may dial 1-888-313-0238  (402-220-0909 international) to listen.
     FOR FURTHER INFORMATION REGARDING THIS PRESS RELEASE, PLEASE CALL JOHN
 GIBLIN AT (404) 847-4571.
 
                                 CRAWFORD & COMPANY
                          COMPARATIVE STATEMENTS OF INCOME
                        (In Thousands Except Per Share Data)
 
     Quarter Ended March 31             2001            2000      % Change
 
     Revenues                       $179,455        $177,432            1%
 
     Costs and Expenses:
       Costs of Services             133,489         127,993            4%
       Selling, General, and
        Administrative                30,665          30,716            0%
       Corporate Interest, net         1,181             867           36%
       Amortization of Goodwill          829             761            9%
     Total Costs and Expenses        166,164         160,337            4%
 
     Income Before Income Taxes       13,291          17,095          -22%
     Income Taxes                      5,104           6,564          -22%
     Net Income                       $8,187         $10,531          -22%
 
     Net Income Per Share:
       Basic                           $0.17           $0.21          -19%
       Diluted                         $0.17           $0.21          -19%
 
     Weighted Average Shares Outstanding:
       Basic                          48,452          50,034
       Diluted                        48,525          50,164
 
 
                                 CRAWFORD & COMPANY
                        SUMMARY RESULTS BY OPERATING SEGMENT
 
                            Quarter Ended March 31, 2001
                         (In Thousands Except Percentages)
                          Domestic          International        Total
                       2001       2000     2001     2000     2001     2000
     Revenues        $131,470   $128,392 $47,985  $49,040  $179,455  $177,432
 
 
     Compensation &
      Benefits         81,559     78,230  31,126   30,678   112,685  108,908
 
     % of Revenues      62.1%      60.9%   64.9%    62.6%     62.8%    61.3%
 
 
     Expenses Other than
     Compensation &
      Benefits         38,815     36,733  12,654   13,068    51,469   49,801
 
     % of Revenues      29.5%      28.6%   26.3%    26.6%     28.7%    28.1%
 
 
     Operating
      Income(1)       $11,096    $13,429  $4,205   $5,294   $15,301  $18,723
 
     % of Revenues       8.4%      10.5%    8.8%    10.8%      8.5%    10.6%
 
 
 
     (1) Income before amortization of goodwill, net corporate interest, and
         taxes.
 
 
                               CRAWFORD & COMPANY
                      CONDENSED COMPARATIVE BALANCE SHEETS
                      March 31, 2001 and December 31, 2000
                                 (In Thousands)
                                                     March 31     December 31
     Assets                                            2001           2000
 
     Current Assets:
       Cash and Cash Equivalents                      $23,259        $22,136
       Accounts Receivable, Net                       135,482        137,378
       Unbilled Revenues                               92,342         87,067
       Prepaid Expenses and Other Current Assets       16,846         17,144
 
     Total Current Assets                             267,929        263,725
 
     Property and Equipment, at Cost                  148,505        149,842
     Less Accumulated Depreciation                   (107,299)      (107,045)
 
     Net Property and Equipment                        41,206         42,797
 
     Other Assets                                     153,567        151,829
 
     Total Assets                                    $462,702       $458,351
 
     Liabilities and Shareholders' Investment
 
     Current Liabilities:
       Short-Term Borrowings                          $47,879        $44,420
       Accounts Payable                                27,370         25,628
       Accrued Liabilities                             64,438         64,022
       Deferred Revenues                               21,556         23,353
       Current Installments of Long-Term Debt             230            216
 
     Total Current Liabilities                        161,473        157,639
 
     Noncurrent Liabilities                            82,237         82,945
 
     Shareholders' Investment:
       Class A Common Stock, $1.00 Par Value           23,755         23,754
       Class B Common Stock, $1.00 Par Value           24,697         24,697
       Retained Earnings                              185,068        183,664
       Accumulated Other Comprehensive Income         (14,528)       (14,348)
 
     Total Shareholders' Investment                   218,992        217,767
 
     Total Liabilities and Shareholders' Investment  $462,702       $458,351
 
 

SOURCE Crawford & Company
    ATLANTA, April 19 /PRNewswire/ -- Grover L. Davis, Chief Executive Officer
 of Crawford & Company (NYSE:   CRD.A CRD.B), announced the Company's financial
 results for the quarter ended March 31, 2001.  First quarter revenues grew to
 $179.5 million in 2001, increasing 1% over the $177.4 million reported for the
 first quarter of 2000.  Operating income (income before amortization of
 goodwill, net corporate interest and taxes) in the quarter totaled $15.3
 million, down 18% from $18.7 million in the 2000 first quarter.  Net income
 per share declined from $0.21 per share in 2000 to $0.17 per share in 2001.
     Domestic revenues grew 2%, from $128.4 million in the first quarter of
 2000 to $131.5 million in the current quarter.  First quarter international
 revenues declined 2%, from $49.0 million in 2000 to $48.0 million in 2001.
 Excluding the adverse impact of exchange rate fluctuations due to the strong
 U.S. dollar, international revenues would have increased by 7% in the quarter.
     Mr. Davis stated, "Domestically, we enjoyed a rebound in revenues from the
 insurance company market where our revenues grew nearly 8%, from $64.2 million
 in the first quarter of 2000 to $69.1 million for the current quarter.  This
 growth came despite the continued lack of significant weather-related claims
 activity in the quarter.  Revenues from surveillance services more than
 quadrupled over the year earlier quarter, to $2.2 million, as we rapidly
 expand this business throughout our branch network.  We are targeting
 surveillance services revenues of more than $10 million for 2001, up from $5
 million in 2000.  Continued growth in managed care services as a result of our
 strategic partnership with a large domestic insurer also helped us increase
 our penetration in the insurance company market."
     "Domestic revenues from self-insured clients decreased slightly during the
 quarter, from $50.6 million in 2000 to $50.1 million in 2001, while revenues
 from class action services were down 10%, to $12.3 million."  Mr. Davis
 continued, "Class action  revenues can fluctuate based on the timing of
 project awards.  We have already been awarded several major projects that will
 contribute to revenues over the next two quarters and a number of other
 potential awards are awaiting final court settlement."
     Concluding, he said, "I am not satisfied with our operating margin for the
 quarter, which declined from 10.6% in 2000 to 8.5% in 2001, due primarily to
 lower than anticipated revenues.  We intend to manage our costs carefully over
 the balance of the year in order to improve our operating performance."
     Further information regarding the Company's financial position and
 operating results for the quarter ended March 31, 2001 is shown on the
 attached statements.
     Crawford & Company is the world's largest independent provider of
 diversified services to insurance companies, self-insured corporations and
 governmental entities.  Services provided include claims and risk management,
 loss adjustment, healthcare management, class action administration and risk
 information services.
     Crawford & Company is based in Atlanta, Georgia.  It has approximately
 10,000 employees worldwide, and operates over 700 offices in 65 countries.
 The Corporation's shares are publicly traded on the New York Stock Exchange
 under the symbols CRDA and CRDB.  Its web address is crawfordandcompany.com .
    Except for historical information contained herein, the matters discussed
 n this news release are forward-looking statements that involve risks and
 ncertainties.  The results achieved in the quarter ended March 31, 2001 are
 ot necessarily indicative of future prospects for the Company.  Actual
 esults in future quarters may differ materially.  For a complete discussion
 egarding factors which could affect the Company's financial performance, see
 he Company's Form 10-K for the year ended December 31, 2000 filed with the
 ecurities and Exchange Commission, in particular the information under the
 eadings "Business," "Legal Proceedings" and "Management's Discussion and
 nalysis of Financial Condition and Results of Operations."
    The Company undertakes no obligation to publicly release any revisions to
 ny forward-looking statements contained herein to reflect events or
 ircumstances occurring after the date hereof or to reflect the occurrence of
 nanticipated events.  The Company's actual results may differ materially from
 hose projected in forward-looking statements made by, or on behalf of, the
 ompany.
     Crawford & Company's conference call with analysts on Monday, April 23,
 2001 will be recorded and available for replay through April 30, 2001.  You
 may dial 1-888-313-0238  (402-220-0909 international) to listen.
     FOR FURTHER INFORMATION REGARDING THIS PRESS RELEASE, PLEASE CALL JOHN
 GIBLIN AT (404) 847-4571.
 
                                 CRAWFORD & COMPANY
                          COMPARATIVE STATEMENTS OF INCOME
                        (In Thousands Except Per Share Data)
 
     Quarter Ended March 31             2001            2000      % Change
 
     Revenues                       $179,455        $177,432            1%
 
     Costs and Expenses:
       Costs of Services             133,489         127,993            4%
       Selling, General, and
        Administrative                30,665          30,716            0%
       Corporate Interest, net         1,181             867           36%
       Amortization of Goodwill          829             761            9%
     Total Costs and Expenses        166,164         160,337            4%
 
     Income Before Income Taxes       13,291          17,095          -22%
     Income Taxes                      5,104           6,564          -22%
     Net Income                       $8,187         $10,531          -22%
 
     Net Income Per Share:
       Basic                           $0.17           $0.21          -19%
       Diluted                         $0.17           $0.21          -19%
 
     Weighted Average Shares Outstanding:
       Basic                          48,452          50,034
       Diluted                        48,525          50,164
 
 
                                 CRAWFORD & COMPANY
                        SUMMARY RESULTS BY OPERATING SEGMENT
 
                            Quarter Ended March 31, 2001
                         (In Thousands Except Percentages)
                          Domestic          International        Total
                       2001       2000     2001     2000     2001     2000
     Revenues        $131,470   $128,392 $47,985  $49,040  $179,455  $177,432
 
 
     Compensation &
      Benefits         81,559     78,230  31,126   30,678   112,685  108,908
 
     % of Revenues      62.1%      60.9%   64.9%    62.6%     62.8%    61.3%
 
 
     Expenses Other than
     Compensation &
      Benefits         38,815     36,733  12,654   13,068    51,469   49,801
 
     % of Revenues      29.5%      28.6%   26.3%    26.6%     28.7%    28.1%
 
 
     Operating
      Income(1)       $11,096    $13,429  $4,205   $5,294   $15,301  $18,723
 
     % of Revenues       8.4%      10.5%    8.8%    10.8%      8.5%    10.6%
 
 
 
     (1) Income before amortization of goodwill, net corporate interest, and
         taxes.
 
 
                               CRAWFORD & COMPANY
                      CONDENSED COMPARATIVE BALANCE SHEETS
                      March 31, 2001 and December 31, 2000
                                 (In Thousands)
                                                     March 31     December 31
     Assets                                            2001           2000
 
     Current Assets:
       Cash and Cash Equivalents                      $23,259        $22,136
       Accounts Receivable, Net                       135,482        137,378
       Unbilled Revenues                               92,342         87,067
       Prepaid Expenses and Other Current Assets       16,846         17,144
 
     Total Current Assets                             267,929        263,725
 
     Property and Equipment, at Cost                  148,505        149,842
     Less Accumulated Depreciation                   (107,299)      (107,045)
 
     Net Property and Equipment                        41,206         42,797
 
     Other Assets                                     153,567        151,829
 
     Total Assets                                    $462,702       $458,351
 
     Liabilities and Shareholders' Investment
 
     Current Liabilities:
       Short-Term Borrowings                          $47,879        $44,420
       Accounts Payable                                27,370         25,628
       Accrued Liabilities                             64,438         64,022
       Deferred Revenues                               21,556         23,353
       Current Installments of Long-Term Debt             230            216
 
     Total Current Liabilities                        161,473        157,639
 
     Noncurrent Liabilities                            82,237         82,945
 
     Shareholders' Investment:
       Class A Common Stock, $1.00 Par Value           23,755         23,754
       Class B Common Stock, $1.00 Par Value           24,697         24,697
       Retained Earnings                              185,068        183,664
       Accumulated Other Comprehensive Income         (14,528)       (14,348)
 
     Total Shareholders' Investment                   218,992        217,767
 
     Total Liabilities and Shareholders' Investment  $462,702       $458,351
 
 SOURCE  Crawford & Company