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x
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QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
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for the quarterly period ended September 30, 2019
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o
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TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
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for the transition period from ____ to ____
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Georgia
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58-0506554
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(State or other jurisdiction of incorporation or organization)
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(I.R.S. Employer Identification No.)
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5335 Triangle Parkway
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Peachtree Corners, Georgia
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30092
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(Address of principal executive offices)
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(Zip Code)
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Title of each class
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Trading Symbol(s)
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Name of each exchange on which registered
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Class A Common Stock — $1.00 Par Value
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CRD-A
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New York Stock Exchange, Inc.
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Class B Common Stock — $1.00 Par Value
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CRD-B
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New York Stock Exchange, Inc.
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Large accelerated filer
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o
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Accelerated filer
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þ
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Non-accelerated filer
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o
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Smaller reporting company
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o
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Emerging growth company
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o
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Page
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Part I. Financial Information
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Condensed Consolidated Statements of Operations (unaudited) for the three months ended September 30, 2019 and 2018
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Condensed Consolidated Statements of Operations (unaudited) for the nine months ended September 30, 2019 and 2018
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4
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Condensed Consolidated Statements of Comprehensive Income (unaudited) for the three months and nine months ended September 30, 2019 and 2018
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Condensed Consolidated Balance Sheets (unaudited) as of September 30, 2019 and December 31, 2018
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Condensed Consolidated Statements of Cash Flows (unaudited) for the nine months ended September 30, 2019 and 2018
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Condensed Consolidated Statements of Shareholders' Investment (unaudited) as of and for the three months and nine months ended September 30, 2019 and 2018
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||||
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||||
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|||||
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Three Months Ended September 30,
|
||||||
(In thousands, except per share amounts)
|
2019
|
|
2018
|
||||
Revenues:
|
|
|
|
||||
|
|
|
|
||||
Revenues before reimbursements
|
$
|
254,677
|
|
|
$
|
255,029
|
|
Reimbursements
|
11,165
|
|
|
9,834
|
|
||
Total Revenues
|
265,842
|
|
|
264,863
|
|
||
|
|
|
|
||||
Costs and Expenses:
|
|
|
|
||||
|
|
|
|
||||
Costs of services provided, before reimbursements
|
180,849
|
|
|
179,238
|
|
||
Reimbursements
|
11,165
|
|
|
9,834
|
|
||
Total costs of services
|
192,014
|
|
|
189,072
|
|
||
|
|
|
|
||||
Selling, general, and administrative expenses
|
52,564
|
|
|
63,247
|
|
||
|
|
|
|
||||
Corporate interest expense, net of interest income of $0 and $274, respectively
|
3,162
|
|
|
2,398
|
|
||
|
|
|
|
||||
Arbitration and claim settlements
|
1,200
|
|
|
—
|
|
||
|
|
|
|
||||
Loss on disposition of business line
|
—
|
|
|
1,201
|
|
||
|
|
|
|
||||
Total Costs and Expenses
|
248,940
|
|
|
255,918
|
|
||
|
|
|
|
||||
Other (Loss) Income, net
|
(883
|
)
|
|
762
|
|
||
|
|
|
|
||||
Income Before Income Taxes
|
16,019
|
|
|
9,707
|
|
||
|
|
|
|
||||
Provision for Income Taxes
|
5,328
|
|
|
1,828
|
|
||
|
|
|
|
||||
Net Income
|
10,691
|
|
|
7,879
|
|
||
|
|
|
|
||||
Net Loss Attributable to Noncontrolling Interests and Redeemable Noncontrolling Interests
|
355
|
|
|
17
|
|
||
|
|
|
|
||||
Net Income Attributable to Shareholders of Crawford & Company
|
$
|
11,046
|
|
|
$
|
7,896
|
|
|
|
|
|
||||
Earnings Per Share - Basic:
|
|
|
|
||||
Class A Common Stock
|
$
|
0.22
|
|
|
$
|
0.15
|
|
Class B Common Stock
|
$
|
0.19
|
|
|
$
|
0.13
|
|
|
|
|
|
||||
Earnings Per Share - Diluted:
|
|
|
|
||||
Class A Common Stock
|
$
|
0.21
|
|
|
$
|
0.15
|
|
Class B Common Stock
|
$
|
0.19
|
|
|
$
|
0.13
|
|
|
|
|
|
||||
Weighted-Average Shares Used to Compute Basic Earnings Per Share:
|
|
|
|
||||
Class A Common Stock
|
30,645
|
|
|
30,713
|
|
||
Class B Common Stock
|
22,831
|
|
|
24,446
|
|
||
|
|
|
|
||||
Weighted-Average Shares Used to Compute Diluted Earnings Per Share:
|
|
|
|
||||
Class A Common Stock
|
31,140
|
|
|
31,390
|
|
||
Class B Common Stock
|
22,831
|
|
|
24,446
|
|
|
Nine Months Ended September 30,
|
||||||
(In thousands, except per share amounts)
|
2019
|
|
2018
|
||||
Revenues:
|
|
|
|
||||
|
|
|
|
||||
Revenues before reimbursements
|
$
|
758,616
|
|
|
$
|
807,177
|
|
Reimbursements
|
31,449
|
|
|
41,282
|
|
||
Total Revenues
|
790,065
|
|
|
848,459
|
|
||
|
|
|
|
||||
Costs and Expenses:
|
|
|
|
||||
|
|
|
|
||||
Costs of services provided, before reimbursements
|
533,664
|
|
|
574,380
|
|
||
Reimbursements
|
31,449
|
|
|
41,282
|
|
||
Total costs of services
|
565,113
|
|
|
615,662
|
|
||
|
|
|
|
||||
Selling, general, and administrative expenses
|
171,407
|
|
|
188,907
|
|
||
|
|
|
|
||||
Corporate interest expense, net of interest income of $539 and $1,446, respectively
|
8,346
|
|
|
7,402
|
|
||
|
|
|
|
||||
Arbitration and claim settlements
|
12,552
|
|
|
—
|
|
||
|
|
|
|
||||
Loss on disposition of business line
|
—
|
|
|
18,996
|
|
||
|
|
|
|
||||
Total Costs and Expenses
|
757,418
|
|
|
830,967
|
|
||
|
|
|
|
||||
Other (Loss) Income, net
|
(2,443
|
)
|
|
2,644
|
|
||
|
|
|
|
||||
Income Before Income Taxes
|
30,204
|
|
|
20,136
|
|
||
|
|
|
|
||||
Provision for Income Taxes
|
11,120
|
|
|
6,255
|
|
||
|
|
|
|
||||
Net Income
|
19,084
|
|
|
13,881
|
|
||
|
|
|
|
||||
Net Loss Attributable to Noncontrolling Interests and Redeemable Noncontrolling Interests
|
713
|
|
|
159
|
|
||
|
|
|
|
||||
Net Income Attributable to Shareholders of Crawford & Company
|
$
|
19,797
|
|
|
$
|
14,040
|
|
|
|
|
|
||||
Earnings Per Share - Basic:
|
|
|
|
||||
Class A Common Stock
|
$
|
0.39
|
|
|
$
|
0.28
|
|
Class B Common Stock
|
$
|
0.33
|
|
|
$
|
0.22
|
|
|
|
|
|
||||
Earnings Per Share - Diluted:
|
|
|
|
||||
Class A Common Stock
|
$
|
0.39
|
|
|
$
|
0.28
|
|
Class B Common Stock
|
$
|
0.33
|
|
|
$
|
0.22
|
|
|
|
|
|
||||
Weighted-Average Shares Used to Compute Basic Earnings Per Share:
|
|
|
|
||||
Class A Common Stock
|
30,701
|
|
|
30,829
|
|
||
Class B Common Stock
|
23,071
|
|
|
24,455
|
|
||
|
|
|
|
||||
Weighted-Average Shares Used to Compute Diluted Earnings Per Share:
|
|
|
|
||||
Class A Common Stock
|
31,116
|
|
|
31,451
|
|
||
Class B Common Stock
|
23,071
|
|
|
24,455
|
|
|
Three Months Ended September 30,
|
||||||
(In thousands)
|
2019
|
|
2018
|
||||
|
|
|
|
||||
Net Income
|
$
|
10,691
|
|
|
$
|
7,879
|
|
|
|
|
|
||||
Other Comprehensive Loss:
|
|
|
|
||||
Net foreign currency translation loss, net of tax of $0 and $0, respectively
|
(3,017
|
)
|
|
(4,730
|
)
|
||
|
|
|
|
||||
Amortization of actuarial losses for retirement plans included in net periodic pension cost, net of tax of $673 and $826, respectively
|
1,984
|
|
|
1,833
|
|
||
|
|
|
|
||||
Other Comprehensive Loss
|
(1,033
|
)
|
|
(2,897
|
)
|
||
|
|
|
|
||||
Comprehensive Income
|
9,658
|
|
|
4,982
|
|
||
|
|
|
|
||||
Comprehensive loss attributable to noncontrolling interests and redeemable noncontrolling interests
|
900
|
|
|
468
|
|
||
|
|
|
|
||||
Comprehensive Income Attributable to Shareholders of Crawford & Company
|
$
|
10,558
|
|
|
$
|
5,450
|
|
|
|
|
|
|
Nine Months Ended September 30,
|
||||||
(In thousands)
|
2019
|
|
2018
|
||||
|
|
|
|
||||
Net Income
|
$
|
19,084
|
|
|
$
|
13,881
|
|
|
|
|
|
||||
Other Comprehensive Income:
|
|
|
|
||||
Net foreign currency translation loss, net of tax of $0 and $0, respectively
|
(2,621
|
)
|
|
(3,333
|
)
|
||
|
|
|
|
||||
Amortization of actuarial losses for retirement plans included in net periodic pension cost, net of tax of $2,024 and $2,455, respectively
|
5,976
|
|
|
5,535
|
|
||
|
|
|
|
||||
Other Comprehensive Income
|
3,355
|
|
|
2,202
|
|
||
|
|
|
|
||||
Comprehensive Income
|
22,439
|
|
|
16,083
|
|
||
|
|
|
|
||||
Comprehensive loss attributable to noncontrolling interests and redeemable noncontrolling interests
|
1,684
|
|
|
414
|
|
||
|
|
|
|
||||
Comprehensive Income Attributable to Shareholders of Crawford & Company
|
$
|
24,123
|
|
|
$
|
16,497
|
|
|
|
|
*
|
||||
(In thousands)
|
September 30,
2019 |
|
December 31,
2018 |
||||
ASSETS
|
|
|
|
||||
Current Assets:
|
|
|
|
||||
Cash and cash equivalents
|
$
|
46,101
|
|
|
$
|
53,119
|
|
Accounts receivable, less allowance for doubtful accounts of $9,786 and $9,625, respectively
|
131,329
|
|
|
131,117
|
|
||
Unbilled revenues, at estimated billable amounts
|
115,672
|
|
|
108,291
|
|
||
Income taxes receivable
|
4,084
|
|
|
4,084
|
|
||
Prepaid expenses and other current assets
|
24,253
|
|
|
24,237
|
|
||
Total Current Assets
|
321,439
|
|
|
320,848
|
|
||
Net Property and Equipment
|
32,035
|
|
|
34,303
|
|
||
Other Assets:
|
|
|
|
||||
Operating lease right-of-use assets, net
|
93,610
|
|
|
—
|
|
||
Goodwill
|
97,152
|
|
|
96,890
|
|
||
Intangible assets arising from business acquisitions, net
|
76,529
|
|
|
85,023
|
|
||
Capitalized software costs, net
|
66,352
|
|
|
72,210
|
|
||
Deferred income tax assets
|
19,687
|
|
|
22,146
|
|
||
Other noncurrent assets
|
68,687
|
|
|
70,022
|
|
||
Total Other Assets
|
422,017
|
|
|
346,291
|
|
||
TOTAL ASSETS
|
$
|
775,491
|
|
|
$
|
701,442
|
|
|
|
|
*
|
||||
(In thousands, except par value amounts)
|
September 30,
2019 |
|
December 31,
2018 |
||||
LIABILITIES AND SHAREHOLDERS' INVESTMENT
|
|
|
|
||||
Current Liabilities:
|
|
|
|
||||
Short-term borrowings
|
$
|
33,606
|
|
|
$
|
23,195
|
|
Accounts payable
|
31,178
|
|
|
37,834
|
|
||
Accrued compensation and related costs
|
66,559
|
|
|
66,530
|
|
||
Self-insured risks
|
14,873
|
|
|
15,246
|
|
||
Income taxes payable
|
2,236
|
|
|
3,145
|
|
||
Deferred rent
|
—
|
|
|
15,919
|
|
||
Operating lease liabilities
|
30,073
|
|
|
—
|
|
||
Other accrued liabilities
|
37,242
|
|
|
32,391
|
|
||
Deferred revenues
|
29,007
|
|
|
30,961
|
|
||
Current installments of finance leases
|
13
|
|
|
89
|
|
||
Total Current Liabilities
|
244,787
|
|
|
225,310
|
|
||
Noncurrent Liabilities:
|
|
|
|
||||
Long-term debt and finance leases, less current installments
|
155,761
|
|
|
167,126
|
|
||
Operating lease liabilities
|
78,371
|
|
|
—
|
|
||
Deferred revenues
|
23,839
|
|
|
21,713
|
|
||
Accrued pension liabilities
|
71,093
|
|
|
74,323
|
|
||
Other noncurrent liabilities
|
29,761
|
|
|
32,024
|
|
||
Total Noncurrent Liabilities
|
358,825
|
|
|
295,186
|
|
||
Redeemable Noncontrolling Interests
|
4,846
|
|
|
5,500
|
|
||
Shareholders' Investment:
|
|
|
|
||||
Class A common stock, $1.00 par value; 50,000 shares authorized; 30,420 and 30,927 shares issued and outstanding at September 30, 2019 and December 31, 2018, respectively
|
30,420
|
|
|
30,927
|
|
||
Class B common stock, $1.00 par value; 50,000 shares authorized; 22,727 and 24,408 shares issued and outstanding at September 30, 2019 and December 31, 2018, respectively
|
22,727
|
|
|
24,408
|
|
||
Additional paid-in capital
|
62,716
|
|
|
58,793
|
|
||
Retained earnings
|
260,621
|
|
|
273,607
|
|
||
Accumulated other comprehensive loss
|
(212,122
|
)
|
|
(216,447
|
)
|
||
Shareholders' Investment Attributable to Shareholders of Crawford & Company
|
164,362
|
|
|
171,288
|
|
||
Noncontrolling interests
|
2,671
|
|
|
4,158
|
|
||
Total Shareholders' Investment
|
167,033
|
|
|
175,446
|
|
||
TOTAL LIABILITIES AND SHAREHOLDERS' INVESTMENT
|
$
|
775,491
|
|
|
$
|
701,442
|
|
|
Nine Months Ended September 30,
|
||||||
(In thousands)
|
2019
|
|
2018
|
||||
Cash Flows From Operating Activities:
|
|
|
|
||||
Net income
|
$
|
19,084
|
|
|
$
|
13,881
|
|
Reconciliation of net income to net cash provided by operating activities:
|
|
|
|
||||
Depreciation and amortization
|
30,086
|
|
|
33,284
|
|
||
Stock-based compensation
|
2,610
|
|
|
4,838
|
|
||
Loss on disposition of business line
|
—
|
|
|
18,996
|
|
||
Changes in operating assets and liabilities:
|
|
|
|
||||
Accounts receivable, net
|
1,108
|
|
|
12,811
|
|
||
Unbilled revenues, net
|
(8,740
|
)
|
|
(26,156
|
)
|
||
Accrued or prepaid income taxes
|
443
|
|
|
788
|
|
||
Accounts payable and accrued liabilities
|
(4,361
|
)
|
|
(10,665
|
)
|
||
Deferred revenues
|
514
|
|
|
(2,068
|
)
|
||
Accrued retirement costs
|
1,545
|
|
|
(26,486
|
)
|
||
Prepaid expenses and other operating activities
|
36
|
|
|
(3,196
|
)
|
||
Net cash provided by operating activities
|
42,325
|
|
|
16,027
|
|
||
|
|
|
|
||||
Cash Flows From Investing Activities:
|
|
|
|
||||
Acquisitions of property and equipment
|
(5,664
|
)
|
|
(12,406
|
)
|
||
Cash proceeds from disposition of business line
|
—
|
|
|
40,275
|
|
||
Capitalization of computer software costs
|
(7,276
|
)
|
|
(13,098
|
)
|
||
Payments for business acquisitions, net of cash acquired
|
(2,296
|
)
|
|
(2,500
|
)
|
||
Other investing activities
|
—
|
|
|
(218
|
)
|
||
Net cash (used in) provided by investing activities
|
(15,236
|
)
|
|
12,053
|
|
||
|
|
|
|
||||
Cash Flows From Financing Activities:
|
|
|
|
||||
Cash dividends paid
|
(9,894
|
)
|
|
(10,159
|
)
|
||
Proceeds from shares purchased under employee stock-based compensation plans
|
1,909
|
|
|
1,301
|
|
||
Repurchases of common stock
|
(25,673
|
)
|
|
(7,715
|
)
|
||
Increases in short-term and revolving credit facility borrowings
|
65,449
|
|
|
89,554
|
|
||
Payments on short-term and revolving credit facility borrowings
|
(64,962
|
)
|
|
(100,895
|
)
|
||
Payments on finance lease obligations
|
(106
|
)
|
|
(361
|
)
|
||
Dividends paid to noncontrolling interests
|
(458
|
)
|
|
(349
|
)
|
||
Net cash used in financing activities
|
(33,735
|
)
|
|
(28,624
|
)
|
||
Effects of exchange rate changes on cash and cash equivalents
|
(372
|
)
|
|
(128
|
)
|
||
Decrease in cash and cash equivalents
|
(7,018
|
)
|
|
(672
|
)
|
||
Cash and cash equivalents at beginning of year
|
53,119
|
|
|
54,011
|
|
||
Cash and cash equivalents at end of period
|
$
|
46,101
|
|
|
$
|
53,339
|
|
|
Common Stock
|
|
|
|
|
|
Accumulated
|
|
Shareholders' Investment Attributable to
|
|
|
|
|
||||||||||||||||||
2019
|
Class A
Non-Voting
|
|
Class B
Voting
|
|
Additional
Paid-In
Capital
|
|
Retained
Earnings
|
|
Other
Comprehensive
Loss
|
|
Shareholders of
Crawford &
Company
|
|
Noncontrolling
Interests
|
|
Total
Shareholders' Investment
|
||||||||||||||||
Balance at January 1, 2019
|
$
|
30,927
|
|
|
$
|
24,408
|
|
|
$
|
58,793
|
|
|
$
|
273,607
|
|
|
$
|
(216,447
|
)
|
|
$
|
171,288
|
|
|
$
|
4,158
|
|
|
$
|
175,446
|
|
Net income (1)
|
—
|
|
|
—
|
|
|
—
|
|
|
6,109
|
|
|
—
|
|
|
6,109
|
|
|
37
|
|
|
6,146
|
|
||||||||
Other comprehensive income (loss)
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
5,073
|
|
|
5,073
|
|
|
(16
|
)
|
|
5,057
|
|
||||||||
Cash dividends paid (Class A - $0.07 per share, Class B - $0.05 per share)
|
—
|
|
|
—
|
|
|
—
|
|
|
(3,282
|
)
|
|
—
|
|
|
(3,282
|
)
|
|
—
|
|
|
(3,282
|
)
|
||||||||
Stock-based compensation
|
—
|
|
|
—
|
|
|
(247
|
)
|
|
—
|
|
|
—
|
|
|
(247
|
)
|
|
—
|
|
|
(247
|
)
|
||||||||
Repurchases of common stock
|
(421
|
)
|
|
(1,377
|
)
|
|
—
|
|
|
(14,620
|
)
|
|
—
|
|
|
(16,418
|
)
|
|
—
|
|
|
(16,418
|
)
|
||||||||
Common stock activity, net
|
115
|
|
|
—
|
|
|
(225
|
)
|
|
—
|
|
|
—
|
|
|
(110
|
)
|
|
—
|
|
|
(110
|
)
|
||||||||
Dividends paid to noncontrolling interests
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(84
|
)
|
|
(84
|
)
|
||||||||
Balance at March 31, 2019
|
$
|
30,621
|
|
|
$
|
23,031
|
|
|
$
|
58,321
|
|
|
$
|
261,814
|
|
|
$
|
(211,374
|
)
|
|
$
|
162,413
|
|
|
$
|
4,095
|
|
|
$
|
166,508
|
|
Net income (1)
|
—
|
|
|
—
|
|
|
—
|
|
|
2,642
|
|
|
—
|
|
|
2,642
|
|
|
(12
|
)
|
|
2,630
|
|
||||||||
Other comprehensive loss
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(260
|
)
|
|
(260
|
)
|
|
(409
|
)
|
|
(669
|
)
|
||||||||
Cash dividends paid (Class A - $0.07 per share, Class B - $0.05 per share)
|
—
|
|
|
—
|
|
|
—
|
|
|
(3,313
|
)
|
|
—
|
|
|
(3,313
|
)
|
|
—
|
|
|
(3,313
|
)
|
||||||||
Stock-based compensation
|
—
|
|
|
—
|
|
|
1,646
|
|
|
—
|
|
|
—
|
|
|
1,646
|
|
|
—
|
|
|
1,646
|
|
||||||||
Repurchases of common stock
|
(280
|
)
|
|
(73
|
)
|
|
—
|
|
|
(2,814
|
)
|
|
—
|
|
|
(3,167
|
)
|
|
—
|
|
|
(3,167
|
)
|
||||||||
Common stock activity, net
|
326
|
|
|
—
|
|
|
634
|
|
|
—
|
|
|
—
|
|
|
960
|
|
|
—
|
|
|
960
|
|
||||||||
Dividends paid to noncontrolling interests
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(196
|
)
|
|
(196
|
)
|
||||||||
Balance at June 30, 2019
|
$
|
30,667
|
|
|
$
|
22,958
|
|
|
$
|
60,601
|
|
|
$
|
258,329
|
|
|
$
|
(211,634
|
)
|
|
$
|
160,921
|
|
|
$
|
3,478
|
|
|
$
|
164,399
|
|
Net income (1)
|
—
|
|
|
—
|
|
|
—
|
|
|
11,046
|
|
|
—
|
|
|
11,046
|
|
|
(84
|
)
|
|
10,962
|
|
||||||||
Other comprehensive loss
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(488
|
)
|
|
(488
|
)
|
|
(545
|
)
|
|
(1,033
|
)
|
||||||||
Cash dividends paid (Class A - $0.07 per share, Class B - $0.05 per share)
|
—
|
|
|
—
|
|
|
—
|
|
|
(3,299
|
)
|
|
—
|
|
|
(3,299
|
)
|
|
—
|
|
|
(3,299
|
)
|
||||||||
Stock-based compensation
|
—
|
|
|
—
|
|
|
1,211
|
|
|
—
|
|
|
—
|
|
|
1,211
|
|
|
—
|
|
|
1,211
|
|
||||||||
Repurchases of common stock
|
(402
|
)
|
|
(231
|
)
|
|
—
|
|
|
(5,455
|
)
|
|
—
|
|
|
(6,088
|
)
|
|
—
|
|
|
(6,088
|
)
|
||||||||
Common stock activity, net
|
155
|
|
|
—
|
|
|
904
|
|
|
—
|
|
|
—
|
|
|
1,059
|
|
|
—
|
|
|
1,059
|
|
||||||||
Dividends paid to noncontrolling interests
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(178
|
)
|
|
(178
|
)
|
||||||||
Balance at September 30, 2019
|
$
|
30,420
|
|
|
$
|
22,727
|
|
|
$
|
62,716
|
|
|
$
|
260,621
|
|
|
$
|
(212,122
|
)
|
|
$
|
164,362
|
|
|
$
|
2,671
|
|
|
$
|
167,033
|
|
|
Common Stock
|
|
|
|
|
|
Accumulated
|
Shareholders' Investment Attributable to
|
|
|
|
|
|||||||||||||||||||
2018
|
Class A
Non-Voting
|
|
Class B
Voting
|
|
Additional
Paid-In
Capital
|
|
Retained
Earnings
|
|
Other
Comprehensive
Loss
|
|
Shareholders of
Crawford &
Company
|
|
Noncontrolling
Interests
|
|
Total
Shareholders' Investment
|
||||||||||||||||
Balance at January 1, 2018
|
$
|
31,439
|
|
|
$
|
24,502
|
|
|
$
|
53,170
|
|
|
$
|
269,686
|
|
|
$
|
(196,477
|
)
|
|
$
|
182,320
|
|
|
$
|
4,644
|
|
|
$
|
186,964
|
|
Net income (1)
|
—
|
|
|
—
|
|
|
—
|
|
|
8,569
|
|
|
—
|
|
|
8,569
|
|
|
188
|
|
|
8,757
|
|
||||||||
Other comprehensive income
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
8,940
|
|
|
8,940
|
|
|
229
|
|
|
9,169
|
|
||||||||
Cash dividends paid (Class A - $0.07 per share, Class B - $0.05 per share)
|
—
|
|
|
—
|
|
|
—
|
|
|
(3,421
|
)
|
|
—
|
|
|
(3,421
|
)
|
|
—
|
|
|
(3,421
|
)
|
||||||||
Stock-based compensation
|
—
|
|
|
—
|
|
|
1,565
|
|
|
—
|
|
|
—
|
|
|
1,565
|
|
|
—
|
|
|
1,565
|
|
||||||||
Repurchases of common stock
|
(1,012
|
)
|
|
(54
|
)
|
|
—
|
|
|
(7,794
|
)
|
|
—
|
|
|
(8,860
|
)
|
|
—
|
|
|
(8,860
|
)
|
||||||||
Common stock activity, net
|
102
|
|
|
—
|
|
|
(88
|
)
|
|
—
|
|
|
—
|
|
|
14
|
|
|
—
|
|
|
14
|
|
||||||||
Cumulative-effect adjustment of ASC 606
|
—
|
|
|
—
|
|
|
—
|
|
|
642
|
|
|
—
|
|
|
642
|
|
|
—
|
|
|
642
|
|
||||||||
Balance at March 31, 2018
|
$
|
30,529
|
|
|
$
|
24,448
|
|
|
$
|
54,647
|
|
|
$
|
267,682
|
|
|
$
|
(187,537
|
)
|
|
$
|
189,769
|
|
|
$
|
5,061
|
|
|
$
|
194,830
|
|
Net loss (1)
|
—
|
|
|
—
|
|
|
—
|
|
|
(2,425
|
)
|
|
—
|
|
|
(2,425
|
)
|
|
305
|
|
|
(2,120
|
)
|
||||||||
Other comprehensive loss
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(4,037
|
)
|
|
(4,037
|
)
|
|
(33
|
)
|
|
(4,070
|
)
|
||||||||
Cash dividends paid (Class A - $0.07 per share, Class B - $0.05 per share)
|
—
|
|
|
—
|
|
|
—
|
|
|
(3,363
|
)
|
|
—
|
|
|
(3,363
|
)
|
|
—
|
|
|
(3,363
|
)
|
||||||||
Stock-based compensation
|
—
|
|
|
—
|
|
|
1,790
|
|
|
—
|
|
|
—
|
|
|
1,790
|
|
|
—
|
|
|
1,790
|
|
||||||||
Common stock activity, net
|
69
|
|
|
—
|
|
|
240
|
|
|
—
|
|
|
—
|
|
|
309
|
|
|
—
|
|
|
309
|
|
||||||||
Dividends paid to noncontrolling interests
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(167
|
)
|
|
(167
|
)
|
||||||||
Balance at June 30, 2018
|
$
|
30,598
|
|
|
$
|
24,448
|
|
|
$
|
56,677
|
|
|
$
|
261,894
|
|
|
$
|
(191,574
|
)
|
|
$
|
182,043
|
|
|
$
|
5,166
|
|
|
$
|
187,209
|
|
Net income (1)
|
—
|
|
|
—
|
|
|
—
|
|
|
7,896
|
|
|
—
|
|
|
7,896
|
|
|
305
|
|
|
8,201
|
|
||||||||
Other comprehensive loss
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(2,446
|
)
|
|
(2,446
|
)
|
|
(451
|
)
|
|
(2,897
|
)
|
||||||||
Cash dividends paid
|
—
|
|
|
—
|
|
|
—
|
|
|
(3,375
|
)
|
|
—
|
|
|
(3,375
|
)
|
|
—
|
|
|
(3,375
|
)
|
||||||||
Stock-based compensation
|
—
|
|
|
—
|
|
|
1,483
|
|
|
—
|
|
|
—
|
|
|
1,483
|
|
|
—
|
|
|
1,483
|
|
||||||||
Acquisition of noncontrolling interest
|
—
|
|
|
—
|
|
|
(218
|
)
|
|
—
|
|
|
—
|
|
|
(218
|
)
|
|
—
|
|
|
(218
|
)
|
||||||||
Repurchases of common stock
|
(43
|
)
|
|
(11
|
)
|
|
—
|
|
|
(425
|
)
|
|
—
|
|
|
(479
|
)
|
|
—
|
|
|
(479
|
)
|
||||||||
Common stock activity, net
|
155
|
|
|
—
|
|
|
823
|
|
|
—
|
|
|
—
|
|
|
978
|
|
|
—
|
|
|
978
|
|
||||||||
Dividends paid to noncontrolling interests
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(182
|
)
|
|
(182
|
)
|
||||||||
Balance at September 30, 2018
|
$
|
30,710
|
|
|
$
|
24,437
|
|
|
$
|
58,765
|
|
|
$
|
265,990
|
|
|
$
|
(194,020
|
)
|
|
$
|
185,882
|
|
|
$
|
4,838
|
|
|
$
|
190,720
|
|
|
|
Three Months Ended
|
|
Nine Months Ended
|
||||||||||||
(in thousands)
|
|
September 30,
2019 |
|
September 30,
2018 |
|
September 30,
2019 |
|
September 30,
2018 |
||||||||
U.S.
|
|
$
|
35,982
|
|
|
$
|
34,480
|
|
|
$
|
103,743
|
|
|
$
|
110,426
|
|
U.K.
|
|
15,123
|
|
|
15,803
|
|
|
47,325
|
|
|
47,397
|
|
||||
Canada
|
|
12,008
|
|
|
11,692
|
|
|
36,276
|
|
|
38,857
|
|
||||
Australia
|
|
11,886
|
|
|
11,739
|
|
|
35,220
|
|
|
33,889
|
|
||||
Europe
|
|
7,429
|
|
|
7,234
|
|
|
21,265
|
|
|
23,887
|
|
||||
Rest of World
|
|
3,822
|
|
|
4,384
|
|
|
11,743
|
|
|
14,432
|
|
||||
Total Crawford Claims Solutions Revenues before Reimbursements
|
|
$
|
86,250
|
|
|
$
|
85,332
|
|
|
$
|
255,572
|
|
|
$
|
268,888
|
|
|
|
Three Months Ended September 30, 2019
|
|
Three Months Ended September 30, 2018
|
||||||||||||||||||||
(in thousands)
|
|
Claims Management Services
|
|
Medical Management Services
|
|
Total
|
|
Claims Management Services
|
|
Medical Management Services
|
|
Total
|
||||||||||||
U.S.
|
|
$
|
37,352
|
|
|
$
|
43,024
|
|
|
$
|
80,376
|
|
|
$
|
37,294
|
|
|
$
|
42,685
|
|
|
$
|
79,979
|
|
U.K.
|
|
2,730
|
|
|
—
|
|
|
$
|
2,730
|
|
|
2,863
|
|
|
—
|
|
|
2,863
|
|
|||||
Canada
|
|
8,210
|
|
|
—
|
|
|
8,210
|
|
|
9,081
|
|
|
—
|
|
|
9,081
|
|
||||||
Europe and Rest of World
|
|
8,179
|
|
|
—
|
|
|
8,179
|
|
|
8,348
|
|
|
—
|
|
|
8,348
|
|
||||||
Total Crawford TPA Solutions Revenues before Reimbursements
|
|
$
|
56,471
|
|
|
$
|
43,024
|
|
|
$
|
99,495
|
|
|
$
|
57,586
|
|
|
$
|
42,685
|
|
|
$
|
100,271
|
|
|
|
Nine Months Ended September 30, 2019
|
|
Nine Months Ended September 30, 2018
|
||||||||||||||||||||
(in thousands)
|
|
Claims Management Services
|
|
Medical Management Services
|
|
Total
|
|
Claims Management Services
|
|
Medical Management Services
|
|
Total
|
||||||||||||
U.S.
|
|
$
|
109,700
|
|
|
$
|
127,691
|
|
|
$
|
237,391
|
|
|
$
|
112,616
|
|
|
$
|
128,359
|
|
|
$
|
240,975
|
|
U.K.
|
|
8,243
|
|
|
—
|
|
|
$
|
8,243
|
|
|
9,387
|
|
|
—
|
|
|
9,387
|
|
|||||
Canada
|
|
25,466
|
|
|
—
|
|
|
25,466
|
|
|
27,580
|
|
|
—
|
|
|
27,580
|
|
||||||
Europe and Rest of World
|
|
25,707
|
|
|
—
|
|
|
25,707
|
|
|
25,210
|
|
|
—
|
|
|
25,210
|
|
||||||
Total Crawford TPA Solutions Revenues before Reimbursements
|
|
$
|
169,116
|
|
|
$
|
127,691
|
|
|
$
|
296,807
|
|
|
$
|
174,793
|
|
|
$
|
128,359
|
|
|
$
|
303,152
|
|
|
|
Three Months Ended September 30, 2019
|
|
Three Months Ended September 30, 2018
|
||||||||||||||||||||
(in thousands)
|
|
Global Technical Services
|
|
Contractor Connection
|
|
Total
|
|
Global Technical Services
|
|
Contractor Connection
|
|
Total
|
||||||||||||
U.S.
|
|
$
|
10,202
|
|
|
$
|
19,617
|
|
|
$
|
29,819
|
|
|
$
|
10,003
|
|
|
$
|
18,682
|
|
|
$
|
28,685
|
|
U.K.
|
|
11,728
|
|
|
1,263
|
|
|
12,991
|
|
|
11,931
|
|
|
2,034
|
|
|
13,965
|
|
||||||
Canada
|
|
6,294
|
|
|
1,838
|
|
|
8,132
|
|
|
6,117
|
|
|
2,268
|
|
|
8,385
|
|
||||||
Australia
|
|
5,935
|
|
|
222
|
|
|
6,157
|
|
|
6,494
|
|
|
240
|
|
|
6,734
|
|
||||||
Europe
|
|
5,141
|
|
|
2
|
|
|
5,143
|
|
|
5,277
|
|
|
1
|
|
|
5,278
|
|
||||||
Rest of World
|
|
6,690
|
|
|
—
|
|
|
6,690
|
|
|
6,379
|
|
|
—
|
|
|
6,379
|
|
||||||
Total Crawford Specialty Solutions Revenues before Reimbursements
|
|
$
|
45,990
|
|
|
$
|
22,942
|
|
|
$
|
68,932
|
|
|
$
|
46,201
|
|
|
$
|
23,225
|
|
|
$
|
69,426
|
|
|
|
Nine Months Ended September 30, 2019
|
|
Nine Months Ended September 30, 2018
|
||||||||||||||||||||||||||||
(in thousands)
|
|
Global Technical Services
|
|
Contractor Connection
|
|
Garden City Group
|
|
Total
|
|
Global Technical Services
|
|
Contractor Connection
|
|
Garden City Group
|
|
Total
|
||||||||||||||||
U.S.
|
|
$
|
30,888
|
|
|
$
|
60,270
|
|
|
$
|
—
|
|
|
$
|
91,158
|
|
|
$
|
29,607
|
|
|
$
|
56,706
|
|
|
$
|
28,827
|
|
|
$
|
115,140
|
|
U.K.
|
|
34,444
|
|
|
3,955
|
|
|
—
|
|
|
38,399
|
|
|
34,446
|
|
|
6,308
|
|
|
—
|
|
|
40,754
|
|
||||||||
Canada
|
|
19,522
|
|
|
5,773
|
|
|
—
|
|
|
25,295
|
|
|
18,761
|
|
|
6,208
|
|
|
1,048
|
|
|
26,017
|
|
||||||||
Australia
|
|
16,881
|
|
|
608
|
|
|
—
|
|
|
17,489
|
|
|
17,833
|
|
|
999
|
|
|
—
|
|
|
18,832
|
|
||||||||
Europe
|
|
14,793
|
|
|
3
|
|
|
—
|
|
|
14,796
|
|
|
16,356
|
|
|
3
|
|
|
—
|
|
|
16,359
|
|
||||||||
Rest of World
|
|
19,100
|
|
|
—
|
|
|
—
|
|
|
19,100
|
|
|
18,035
|
|
|
—
|
|
|
—
|
|
|
18,035
|
|
||||||||
Total Crawford Specialty Solutions Revenues before Reimbursements
|
|
$
|
135,628
|
|
|
$
|
70,609
|
|
|
$
|
—
|
|
|
$
|
206,237
|
|
|
$
|
135,038
|
|
|
$
|
70,224
|
|
|
$
|
29,875
|
|
|
$
|
235,137
|
|
(in thousands)
|
Classification on Balance Sheet
|
September 30, 2019
|
||
Assets:
|
|
|
||
Operating lease
|
Operating lease right-of-use assets, net
|
$
|
93,610
|
|
Liabilities:
|
|
|
||
Current operating lease liabilities
|
Current operating lease liabilities
|
30,073
|
|
|
Noncurrent operating lease liabilities
|
Noncurrent operating lease liabilities
|
78,371
|
|
|
Total operating lease liabilities
|
|
$
|
108,444
|
|
|
|
|
||
Weighted-Average Remaining Lease Term
|
|
5.43 years
|
|
|
Weighted-Average Discount Rate (1)
|
|
5.6
|
%
|
|
Three Months Ended
|
Nine Months Ended
|
||||
(in thousands)
|
September 30, 2019
|
September 30, 2019
|
||||
Operating lease cost
|
$
|
9,298
|
|
$
|
28,410
|
|
Variable lease cost
|
2,078
|
|
5,849
|
|
||
Sublease income
|
1,114
|
|
3,086
|
|
|
Three Months Ended
|
Nine Months Ended
|
||||
(in thousands)
|
September 30, 2019
|
September 30, 2019
|
||||
Cash paid for amounts included in the measurement of lease liabilities:
|
|
|
||||
Operating cash flows for operating leases
|
$
|
9,806
|
|
$
|
29,220
|
|
|
|
|
||||
Right-of-use assets obtained in exchange for lease obligations (1)
|
$
|
1,294
|
|
$
|
13,310
|
|
(in thousands)
|
September 30, 2019
|
||
2019
|
$
|
9,398
|
|
2020
|
32,187
|
|
|
2021
|
25,827
|
|
|
2022
|
14,876
|
|
|
2023
|
10,875
|
|
|
Thereafter
|
33,540
|
|
|
Total undiscounted lease payments
|
126,703
|
|
|
Less imputed interest
|
(18,259
|
)
|
|
Present value of future lease payments
|
$
|
108,444
|
|
|
Three Months Ended
|
|
Nine Months Ended
|
||||||||||||
(in thousands)
|
September 30,
2019 |
|
September 30,
2018 |
|
September 30,
2019 |
|
September 30,
2018 |
||||||||
Service cost
|
$
|
332
|
|
|
$
|
355
|
|
|
$
|
1,004
|
|
|
$
|
1,099
|
|
Interest cost
|
5,565
|
|
|
5,282
|
|
|
16,763
|
|
|
16,017
|
|
||||
Expected return on assets
|
(7,371
|
)
|
|
(8,718
|
)
|
|
(22,214
|
)
|
|
(26,478
|
)
|
||||
Amortization of actuarial loss
|
2,689
|
|
|
2,696
|
|
|
8,073
|
|
|
8,117
|
|
||||
Net periodic cost (benefit)
|
$
|
1,215
|
|
|
$
|
(385
|
)
|
|
$
|
3,626
|
|
|
$
|
(1,245
|
)
|
|
Three Months Ended
|
|
Nine Months Ended
|
||||||||||||||||||||||||
|
September 30,
2019 |
|
September 30,
2018 |
|
September 30,
2019 |
|
September 30,
2018 |
||||||||||||||||||||
(in thousands, except per share amounts)
|
CRD-A
|
CRD-B
|
|
CRD-A
|
CRD-B
|
|
CRD-A
|
CRD-B
|
|
CRD-A
|
CRD-B
|
||||||||||||||||
Earnings per share - basic:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Numerator:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Allocation of undistributed earnings
|
$
|
4,439
|
|
$
|
3,308
|
|
|
$
|
2,518
|
|
$
|
2,004
|
|
|
$
|
5,654
|
|
$
|
4,249
|
|
|
$
|
2,165
|
|
$
|
1,717
|
|
Dividends paid
|
2,157
|
|
1,142
|
|
|
2,152
|
|
1,223
|
|
|
6,449
|
|
3,445
|
|
|
6,491
|
|
3,668
|
|
||||||||
Net income attributable to common shareholders, basic
|
$
|
6,596
|
|
$
|
4,450
|
|
|
$
|
4,670
|
|
$
|
3,227
|
|
|
$
|
12,103
|
|
$
|
7,694
|
|
|
$
|
8,656
|
|
$
|
5,385
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Denominator:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Weighted-average common shares outstanding, basic
|
30,645
|
|
22,831
|
|
|
30,713
|
|
24,446
|
|
|
30,701
|
|
23,071
|
|
|
30,829
|
|
24,455
|
|
||||||||
Earnings per share - basic
|
$
|
0.22
|
|
$
|
0.19
|
|
|
$
|
0.15
|
|
$
|
0.13
|
|
|
$
|
0.39
|
|
$
|
0.33
|
|
|
$
|
0.28
|
|
$
|
0.22
|
|
|
Three Months Ended
|
|
Nine Months Ended
|
||||||||||||||||||||||||
|
September 30,
2019 |
|
September 30,
2018 |
|
September 30,
2019 |
|
September 30,
2018 |
||||||||||||||||||||
(in thousands, except per share amounts)
|
CRD-A
|
CRD-B
|
|
CRD-A
|
CRD-B
|
|
CRD-A
|
CRD-B
|
|
CRD-A
|
CRD-B
|
||||||||||||||||
Earnings per share - diluted:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Numerator:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Allocation of undistributed earnings
|
$
|
4,470
|
|
$
|
3,277
|
|
|
$
|
2,542
|
|
$
|
1,980
|
|
|
$
|
5,687
|
|
$
|
4,216
|
|
|
$
|
2,184
|
|
$
|
1,698
|
|
Dividends paid
|
2,157
|
|
1,142
|
|
|
2,152
|
|
1,223
|
|
|
6,449
|
|
3,445
|
|
|
6,491
|
|
3,668
|
|
||||||||
Net income attributable to common shareholders, diluted
|
$
|
6,627
|
|
$
|
4,419
|
|
|
$
|
4,694
|
|
$
|
3,203
|
|
|
$
|
12,136
|
|
$
|
7,661
|
|
|
$
|
8,675
|
|
$
|
5,366
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Denominator:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Weighted-average common shares outstanding, basic
|
30,645
|
|
22,831
|
|
|
30,713
|
|
24,446
|
|
|
30,701
|
|
23,071
|
|
|
30,829
|
|
24,455
|
|
||||||||
Weighted-average effect of dilutive securities
|
495
|
|
—
|
|
|
677
|
|
—
|
|
|
415
|
|
—
|
|
|
622
|
|
—
|
|
||||||||
Weighted-average common shares outstanding, diluted
|
31,140
|
|
22,831
|
|
|
31,390
|
|
24,446
|
|
|
31,116
|
|
23,071
|
|
|
31,451
|
|
24,455
|
|
||||||||
Earnings per share - diluted
|
$
|
0.21
|
|
$
|
0.19
|
|
|
$
|
0.15
|
|
$
|
0.13
|
|
|
$
|
0.39
|
|
$
|
0.33
|
|
|
$
|
0.28
|
|
$
|
0.22
|
|
|
Three Months Ended
|
|
Nine Months Ended
|
||||||||
(in thousands)
|
September 30,
2019 |
|
September 30,
2018 |
|
September 30,
2019 |
|
September 30,
2018 |
||||
Shares underlying stock options excluded
|
572
|
|
|
1,230
|
|
|
592
|
|
|
1,172
|
|
Performance stock grants excluded because performance conditions have not been met (1)
|
1,094
|
|
|
778
|
|
|
1,041
|
|
|
778
|
|
(1)
|
Compensation cost is recognized for these performance stock grants based on expected achievement rates; however, no consideration is given to these performance stock grants when calculating diluted earnings per share until the performance measurements have been achieved.
|
|
Three Months Ended
|
|
Nine Months Ended
|
||||||||
(in thousands)
|
September 30,
2019 |
|
September 30,
2018 |
|
September 30,
2019 |
|
September 30,
2018 |
||||
CRD-A issued under Non-Employee Director Stock Plan
|
2
|
|
|
7
|
|
|
87
|
|
|
114
|
|
CRD-A issued under the Employee Stock Purchase Plan
|
131
|
|
|
144
|
|
|
131
|
|
|
144
|
|
CRD-A issued under the U.K. ShareSave Scheme
|
14
|
|
|
3
|
|
|
280
|
|
|
57
|
|
CRD-A issued under International Plan
|
4
|
|
|
9
|
|
|
4
|
|
|
9
|
|
CRD-A issued under Executive Stock Bonus Plan
|
—
|
|
|
—
|
|
|
30
|
|
|
—
|
|
CRD-A issued under 2016 Omnibus Stock and Incentive Plan
|
3
|
|
|
—
|
|
|
62
|
|
|
—
|
|
|
Three Months Ended September 30, 2019
|
|
Nine Months Ended September 30, 2019
|
||||||||||||||||||||
(in thousands)
|
Foreign currency translation adjustments
|
|
Retirement liabilities (1)
|
|
AOCL attributable to shareholders of Crawford & Company
|
|
Foreign currency translation adjustments
|
|
Retirement liabilities (1)
|
|
AOCL attributable to shareholders of Crawford & Company
|
||||||||||||
Beginning balance
|
$
|
(35,531
|
)
|
|
$
|
(176,103
|
)
|
|
$
|
(211,634
|
)
|
|
$
|
(36,352
|
)
|
|
$
|
(180,095
|
)
|
|
$
|
(216,447
|
)
|
Other comprehensive loss before reclassifications
|
(2,472
|
)
|
|
—
|
|
|
(2,472
|
)
|
|
(1,651
|
)
|
|
—
|
|
|
(1,651
|
)
|
||||||
Amounts reclassified from accumulated other comprehensive income
|
—
|
|
|
1,984
|
|
|
1,984
|
|
|
—
|
|
|
5,976
|
|
|
5,976
|
|
||||||
Net current period other comprehensive (loss) income
|
(2,472
|
)
|
|
1,984
|
|
|
(488
|
)
|
|
(1,651
|
)
|
|
5,976
|
|
|
4,325
|
|
||||||
Ending balance
|
$
|
(38,003
|
)
|
|
$
|
(174,119
|
)
|
|
$
|
(212,122
|
)
|
|
$
|
(38,003
|
)
|
|
$
|
(174,119
|
)
|
|
$
|
(212,122
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended September 30, 2018
|
|
Nine Months Ended September 30, 2018
|
||||||||||||||||||||
(in thousands)
|
Foreign currency translation adjustments
|
|
Retirement liabilities (1)
|
|
AOCL attributable to shareholders of Crawford & Company
|
|
Foreign currency translation adjustments
|
|
Retirement liabilities (1)
|
|
AOCL attributable to shareholders of Crawford & Company
|
||||||||||||
Beginning balance
|
$
|
(25,119
|
)
|
|
$
|
(166,455
|
)
|
|
$
|
(191,574
|
)
|
|
$
|
(26,320
|
)
|
|
$
|
(170,157
|
)
|
|
$
|
(196,477
|
)
|
Other comprehensive loss before reclassifications
|
(4,279
|
)
|
|
—
|
|
|
(4,279
|
)
|
|
(3,078
|
)
|
|
—
|
|
|
(3,078
|
)
|
||||||
Amounts reclassified from accumulated other comprehensive income
|
—
|
|
|
1,833
|
|
|
1,833
|
|
|
—
|
|
|
5,535
|
|
|
5,535
|
|
||||||
Net current period other comprehensive (loss) income
|
(4,279
|
)
|
|
1,833
|
|
|
(2,446
|
)
|
|
(3,078
|
)
|
|
5,535
|
|
|
2,457
|
|
||||||
Ending balance
|
$
|
(29,398
|
)
|
|
$
|
(164,622
|
)
|
|
$
|
(194,020
|
)
|
|
$
|
(29,398
|
)
|
|
$
|
(164,622
|
)
|
|
$
|
(194,020
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
(1)
|
Retirement liabilities reclassified to net income are related to the amortization of actuarial losses and are included in "Other (Loss) Income, net" in the Company's unaudited Condensed Consolidated Statements of Operations. See Note 6, "Defined Benefit Pension Plans" for additional details.
|
|
|
|
Fair Value Measurements at September 30, 2019
|
||||||||||||
|
|
|
|
|
Significant Other
|
|
Significant
|
||||||||
|
|
|
Quoted Prices in
|
|
Observable
|
|
Unobservable
|
||||||||
|
|
|
Active Markets
|
|
Inputs
|
|
Inputs
|
||||||||
(in thousands)
|
Total
|
|
(Level 1)
|
|
(Level 2)
|
|
(Level 3)
|
||||||||
Assets:
|
|
|
|
|
|
|
|
||||||||
Money market funds (1)
|
$
|
10,031
|
|
|
$
|
10,031
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Liabilities:
|
|
|
|
|
|
|
|
||||||||
Contingent earnout liability (2)
|
697
|
|
|
—
|
|
|
—
|
|
|
697
|
|
(1)
|
The fair values of the money market funds were based on recently quoted market prices and reported transactions in an active marketplace. Money market funds are included in the Company's unaudited Condensed Consolidated Balance Sheets as "Cash and cash equivalents."
|
(2)
|
The contingent earnout liability relates to recent business acquisitions by the Crawford Specialty Solutions operating segment. The fair value of the contingent earnout liability was estimated using internally-prepared revenue projections, which is Level 3 data, with the maximum possible earnout of $1,152,000. As such, the fair value is not expected to vary materially. The fair value of the contingent earnout liability is included in "Other accrued liabilities" and "Other noncurrent liabilities" on the Company's unaudited Condensed Consolidated Balance Sheets, based upon the term of each contingent earnout agreement.
|
|
Three Months Ended
|
|
Nine Months Ended
|
||||||||||||
(in thousands)
|
September 30,
2019 |
|
September 30,
2018 |
|
September 30,
2019 |
|
September 30,
2018 |
||||||||
Revenues:
|
|
|
|
|
|
|
|
||||||||
Crawford Claims Solutions
|
$
|
86,250
|
|
|
$
|
85,332
|
|
|
$
|
255,572
|
|
|
$
|
268,888
|
|
Crawford TPA Solutions
|
99,495
|
|
|
100,271
|
|
|
296,807
|
|
|
303,152
|
|
||||
Crawford Specialty Solutions
|
68,932
|
|
|
69,426
|
|
|
206,237
|
|
|
235,137
|
|
||||
Total segment revenues before reimbursements
|
254,677
|
|
|
255,029
|
|
|
758,616
|
|
|
807,177
|
|
||||
Reimbursements
|
11,165
|
|
|
9,834
|
|
|
31,449
|
|
|
41,282
|
|
||||
Total revenues
|
$
|
265,842
|
|
|
$
|
264,863
|
|
|
$
|
790,065
|
|
|
$
|
848,459
|
|
|
|
|
|
|
|
|
|
||||||||
Segment Operating Earnings
|
|
|
|
|
|
|
|
||||||||
Crawford Claims Solutions
|
$
|
2,661
|
|
|
$
|
(135
|
)
|
|
$
|
4,058
|
|
|
$
|
5,110
|
|
Crawford TPA Solutions
|
9,347
|
|
|
8,055
|
|
|
21,106
|
|
|
24,014
|
|
||||
Crawford Specialty Solutions
|
13,301
|
|
|
14,363
|
|
|
38,108
|
|
|
34,423
|
|
||||
Total segment operating earnings
|
25,309
|
|
|
22,283
|
|
|
63,272
|
|
|
63,547
|
|
||||
|
|
|
|
|
|
|
|
||||||||
Deduct:
|
|
|
|
|
|
|
|
||||||||
Unallocated corporate and shared costs, net
|
(1,649
|
)
|
|
(5,798
|
)
|
|
(2,393
|
)
|
|
(7,316
|
)
|
||||
Net corporate interest expense
|
(3,162
|
)
|
|
(2,398
|
)
|
|
(8,346
|
)
|
|
(7,402
|
)
|
||||
Stock option expense
|
(450
|
)
|
|
(393
|
)
|
|
(1,348
|
)
|
|
(1,355
|
)
|
||||
Amortization of customer-relationship intangible assets
|
(2,829
|
)
|
|
(2,786
|
)
|
|
(8,429
|
)
|
|
(8,342
|
)
|
||||
Arbitration and claim settlements
|
(1,200
|
)
|
|
—
|
|
|
(12,552
|
)
|
|
—
|
|
||||
Loss on disposition of business line
|
—
|
|
|
(1,201
|
)
|
|
—
|
|
|
(18,996
|
)
|
||||
Income before income taxes
|
$
|
16,019
|
|
|
$
|
9,707
|
|
|
$
|
30,204
|
|
|
$
|
20,136
|
|
|
Three Months Ended
|
|
Nine Months Ended
|
||||||||||||
(in thousands)
|
September 30,
2019 |
|
September 30,
2018 |
|
September 30,
2019 |
|
September 30,
2018 |
||||||||
Crawford TPA Solutions
|
|
|
|
|
|
|
|
||||||||
Claims Management Services
|
$
|
56,471
|
|
|
$
|
57,586
|
|
|
$
|
169,116
|
|
|
$
|
174,793
|
|
Medical Management Services
|
43,024
|
|
|
42,685
|
|
|
127,691
|
|
|
128,359
|
|
||||
Total Revenues before Reimbursements--Crawford TPA Solutions
|
$
|
99,495
|
|
|
$
|
100,271
|
|
|
$
|
296,807
|
|
|
$
|
303,152
|
|
Crawford Specialty Solutions
|
|
|
|
|
|
|
|
||||||||
Global Technical Services
|
$
|
45,990
|
|
|
$
|
46,201
|
|
|
$
|
135,628
|
|
|
$
|
135,038
|
|
Contractor Connection
|
22,942
|
|
|
23,225
|
|
|
70,609
|
|
|
70,224
|
|
||||
Garden City Group
|
—
|
|
|
—
|
|
|
—
|
|
|
29,875
|
|
||||
Total Revenues before Reimbursements--Crawford Specialty Solutions
|
$
|
68,932
|
|
|
$
|
69,426
|
|
|
$
|
206,237
|
|
|
$
|
235,137
|
|
|
Three Months Ended September 30, 2019
|
||||||||||||||
(in thousands)
|
Deferred rent
|
|
Accrued compensation and related costs
|
|
Other accrued liabilities
|
|
Total
|
||||||||
Beginning balance, June 30, 2019
|
$
|
—
|
|
|
$
|
401
|
|
|
$
|
486
|
|
|
$
|
887
|
|
Additions
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||
Adjustments to accruals
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||
Cash payments
|
—
|
|
|
(19
|
)
|
|
(8
|
)
|
|
(27
|
)
|
||||
Ending balance, September 30, 2019
|
$
|
—
|
|
|
$
|
382
|
|
|
$
|
478
|
|
|
$
|
860
|
|
|
Nine Months Ended September 30, 2019
|
||||||||||||||
(in thousands)
|
Deferred rent
|
|
Accrued compensation and related costs
|
|
Other accrued liabilities
|
|
Total
|
||||||||
Beginning balance, December 31, 2018
|
$
|
1,302
|
|
|
$
|
477
|
|
|
$
|
486
|
|
|
$
|
2,265
|
|
Additions
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||
Adjustments to accruals (1)
|
(1,302
|
)
|
|
—
|
|
|
—
|
|
|
(1,302
|
)
|
||||
Cash payments
|
—
|
|
|
(95
|
)
|
|
(8
|
)
|
|
(103
|
)
|
||||
Ending balance, September 30, 2019
|
$
|
—
|
|
|
$
|
382
|
|
|
$
|
478
|
|
|
$
|
860
|
|
•
|
a decline in cases referred to us for any reason, including changes in the degree to which property and casualty insurance carriers outsource their claims handling functions,
|
•
|
changes in global economic conditions,
|
•
|
changes in interest rates,
|
•
|
changes in foreign currency exchange rates,
|
•
|
changes in regulations and practices of various governmental authorities,
|
•
|
changes in our competitive environment,
|
•
|
changes in the financial condition of our clients,
|
•
|
the loss of any material customer,
|
•
|
our ability to successfully integrate the operations of acquired businesses,
|
•
|
regulatory changes related to funding of defined benefit pension plans,
|
•
|
our U.S., U.K. and other international defined benefit pension plans and our future funding obligations thereunder,
|
•
|
our ability to complete any transaction involving the acquisition or disposition of assets on terms and at times acceptable to us,
|
•
|
our ability to identify new revenue sources not tied to the insurance underwriting cycle,
|
•
|
our ability to develop or acquire information technology resources to support and grow our business,
|
•
|
our ability to attract and retain qualified personnel,
|
•
|
our ability to renew existing contracts with clients on satisfactory terms,
|
•
|
our ability to collect amounts due from our clients and others,
|
•
|
continued availability of funding under our financing agreements,
|
•
|
general risks associated with doing business outside the U.S., including changes in tax rates,
|
•
|
our ability to comply with the covenants in our financing or other agreements,
|
•
|
changes in the frequency or severity of man-made or natural disasters,
|
•
|
the ability of our third-party service providers, used for certain aspects of our internal business functions, to meet expected service levels,
|
•
|
our ability to prevent or detect cybersecurity breaches and cyber incidents,
|
•
|
our ability to achieve targeted integration goals with the consolidation and migration of multiple software platforms,
|
•
|
risks associated with our having a controlling shareholder, and
|
•
|
impairments of goodwill or our other indefinite-lived intangible assets.
|
|
Three Months Ended
|
|
|
Three Months Ended
|
|
|
||||||||||||||
|
|
|
|
|
|
Based on exchange rates for three months ended September, 2018
|
||||||||||||||
(in thousands, except percentages)
|
September 30,
2019 |
|
September 30,
2018 |
% Change
|
|
September 30,
2019 |
|
September 30,
2018 |
|
% Change
|
||||||||||
Revenues:
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Crawford Claims Solutions
|
$
|
86,250
|
|
|
$
|
85,332
|
|
1.1
|
%
|
|
$
|
89,830
|
|
|
$
|
85,332
|
|
|
5.3
|
%
|
Crawford TPA Solutions
|
99,495
|
|
|
100,271
|
|
(0.8
|
)%
|
|
100,655
|
|
|
100,271
|
|
|
0.4
|
%
|
||||
Crawford Specialty Solutions
|
68,932
|
|
|
69,426
|
|
(0.7
|
)%
|
|
71,514
|
|
|
69,426
|
|
|
3.0
|
%
|
||||
Total revenues before reimbursements
|
254,677
|
|
|
255,029
|
|
(0.1
|
)%
|
|
261,999
|
|
|
255,029
|
|
|
2.7
|
%
|
||||
Reimbursements
|
11,165
|
|
|
9,834
|
|
13.5
|
%
|
|
11,708
|
|
|
9,834
|
|
|
19.1
|
%
|
||||
Total Revenues
|
$
|
265,842
|
|
|
$
|
264,863
|
|
0.4
|
%
|
|
$
|
273,707
|
|
|
$
|
264,863
|
|
|
3.3
|
%
|
|
Nine Months Ended
|
|
|
Nine Months Ended
|
|
|
||||||||||||||
|
|
|
|
|
|
Based on exchange rates for nine months ended September, 2018 and exclusion of Garden City Group from June 30, 2018
|
||||||||||||||
(in thousands, except percentages)
|
September 30,
2019 |
|
September 30,
2018 |
% Change
|
|
September 30,
2019 |
|
September 30,
2018 |
|
% Change
|
||||||||||
Revenues:
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Crawford Claims Solutions
|
$
|
255,572
|
|
|
$
|
268,888
|
|
(5.0
|
)%
|
|
$
|
264,983
|
|
|
$
|
268,888
|
|
|
(1.5
|
)%
|
Crawford TPA Solutions
|
296,807
|
|
|
303,152
|
|
(2.1
|
)%
|
|
300,239
|
|
|
303,152
|
|
|
(1.0
|
)%
|
||||
Crawford Specialty Solutions
|
206,237
|
|
|
235,137
|
|
(12.3
|
)%
|
|
212,895
|
|
|
205,262
|
|
|
3.7
|
%
|
||||
Total revenues before reimbursements
|
758,616
|
|
|
807,177
|
|
(6.0
|
)%
|
|
778,117
|
|
|
777,302
|
|
|
0.1
|
%
|
||||
Reimbursements
|
31,449
|
|
|
41,282
|
|
(23.8
|
)%
|
|
32,978
|
|
|
30,748
|
|
|
7.3
|
%
|
||||
Total Revenues
|
$
|
790,065
|
|
|
$
|
848,459
|
|
(6.9
|
)%
|
|
$
|
811,095
|
|
|
$
|
808,050
|
|
|
0.4
|
%
|
|
Three Months Ended
|
|
Nine Months Ended
|
||||||||||||
(in thousands, except percentages)
|
September 30,
2019 |
|
September 30,
2018 |
|
September 30,
2019 |
|
September 30,
2018 |
||||||||
Revenues:
|
|
|
|
|
|
|
|
||||||||
Crawford Claims Solutions
|
$
|
86,250
|
|
|
$
|
85,332
|
|
|
$
|
255,572
|
|
|
$
|
268,888
|
|
Crawford TPA Solutions
|
99,495
|
|
|
100,271
|
|
|
296,807
|
|
|
303,152
|
|
||||
Crawford Specialty Solutions
|
68,932
|
|
|
69,426
|
|
|
206,237
|
|
|
235,137
|
|
||||
Total Revenues before reimbursements
|
254,677
|
|
|
255,029
|
|
|
758,616
|
|
|
807,177
|
|
||||
Reimbursements
|
11,165
|
|
|
9,834
|
|
|
31,449
|
|
|
41,282
|
|
||||
Total Revenues
|
$
|
265,842
|
|
|
$
|
264,863
|
|
|
$
|
790,065
|
|
|
$
|
848,459
|
|
|
|
|
|
|
|
|
|
||||||||
Direct Compensation, Fringe Benefits & Non-Employee Labor:
|
|
|
|
|
|
|
|
||||||||
Crawford Claims Solutions
|
$
|
56,985
|
|
|
$
|
56,306
|
|
|
$
|
168,951
|
|
|
$
|
176,778
|
|
% of related revenues before reimbursements
|
66.1
|
%
|
|
66.0
|
%
|
|
66.1
|
%
|
|
65.7
|
%
|
||||
Crawford TPA Solutions
|
58,594
|
|
|
59,146
|
|
|
177,911
|
|
|
177,706
|
|
||||
% of related revenues before reimbursements
|
58.9
|
%
|
|
59.0
|
%
|
|
59.9
|
%
|
|
58.6
|
%
|
||||
Crawford Specialty Solutions
|
35,993
|
|
|
34,758
|
|
|
106,003
|
|
|
120,821
|
|
||||
% of related revenues before reimbursements
|
52.2
|
%
|
|
50.1
|
%
|
|
51.4
|
%
|
|
51.4
|
%
|
||||
Total
|
$
|
151,572
|
|
|
$
|
150,210
|
|
|
$
|
452,865
|
|
|
$
|
475,305
|
|
% of Revenues before reimbursements
|
59.5
|
%
|
|
58.9
|
%
|
|
59.7
|
%
|
|
58.9
|
%
|
||||
|
|
|
|
|
|
|
|
||||||||
Expenses Other than Direct Compensation, Fringe Benefits & Non-Employee Labor:
|
|
|
|
|
|
|
|
||||||||
Crawford Claims Solutions
|
$
|
26,604
|
|
|
$
|
29,161
|
|
|
$
|
82,563
|
|
|
$
|
87,000
|
|
% of related revenues before reimbursements
|
30.8
|
%
|
|
34.2
|
%
|
|
32.3
|
%
|
|
32.4
|
%
|
||||
Crawford TPA Solutions
|
31,554
|
|
|
33,070
|
|
|
97,790
|
|
|
101,432
|
|
||||
% of related revenues before reimbursements
|
31.7
|
%
|
|
33.0
|
%
|
|
32.9
|
%
|
|
33.5
|
%
|
||||
Crawford Specialty Solutions
|
19,638
|
|
|
20,305
|
|
|
62,126
|
|
|
79,893
|
|
||||
% of related revenues before reimbursements
|
28.5
|
%
|
|
29.2
|
%
|
|
30.1
|
%
|
|
34.0
|
%
|
||||
Total before reimbursements
|
77,796
|
|
|
82,536
|
|
|
242,479
|
|
|
268,325
|
|
||||
% of Revenues before reimbursements
|
30.5
|
%
|
|
32.4
|
%
|
|
32.0
|
%
|
|
33.2
|
%
|
||||
Reimbursements
|
11,165
|
|
|
9,834
|
|
|
31,449
|
|
|
41,282
|
|
||||
Total
|
$
|
88,961
|
|
|
$
|
92,370
|
|
|
$
|
273,928
|
|
|
$
|
309,607
|
|
% of Revenues
|
33.5
|
%
|
|
34.9
|
%
|
|
34.7
|
%
|
|
36.5
|
%
|
||||
Segment Operating Earnings:
|
|
|
|
|
|
|
|
||||||||
Crawford Claims Solutions
|
$
|
2,661
|
|
|
$
|
(135
|
)
|
|
$
|
4,058
|
|
|
$
|
5,110
|
|
% of related revenues before reimbursements
|
3.1
|
%
|
|
(0.2
|
)%
|
|
1.6
|
%
|
|
1.9
|
%
|
||||
Crawford TPA Solutions
|
9,347
|
|
|
8,055
|
|
|
21,106
|
|
|
24,014
|
|
||||
% of related revenues before reimbursements
|
9.4
|
%
|
|
8.0
|
%
|
|
7.1
|
%
|
|
7.9
|
%
|
||||
Crawford Specialty Solutions
|
13,301
|
|
|
14,363
|
|
|
38,108
|
|
|
34,423
|
|
||||
% of related revenues before reimbursements
|
19.3
|
%
|
|
20.7
|
%
|
|
18.5
|
%
|
|
14.6
|
%
|
||||
Deduct:
|
|
|
|
|
|
|
|
||||||||
Unallocated corporate and shared costs, net
|
(1,649
|
)
|
|
(5,798
|
)
|
|
(2,393
|
)
|
|
(7,316
|
)
|
||||
Net corporate interest expense
|
(3,162
|
)
|
|
(2,398
|
)
|
|
(8,346
|
)
|
|
(7,402
|
)
|
||||
Stock option expense
|
(450
|
)
|
|
(393
|
)
|
|
(1,348
|
)
|
|
(1,355
|
)
|
||||
Amortization of customer-relationship intangible assets
|
(2,829
|
)
|
|
(2,786
|
)
|
|
(8,429
|
)
|
|
(8,342
|
)
|
||||
Arbitration and claim settlements
|
(1,200
|
)
|
|
—
|
|
|
(12,552
|
)
|
|
—
|
|
||||
Loss on disposition of business line
|
—
|
|
|
(1,201
|
)
|
|
—
|
|
|
(18,996
|
)
|
||||
Income before income taxes
|
16,019
|
|
|
9,707
|
|
|
30,204
|
|
|
20,136
|
|
||||
Provision for income taxes
|
(5,328
|
)
|
|
(1,828
|
)
|
|
(11,120
|
)
|
|
(6,255
|
)
|
||||
Net income
|
10,691
|
|
|
7,879
|
|
|
19,084
|
|
|
13,881
|
|
||||
Net loss attributable to noncontrolling interests and redeemable noncontrolling interests
|
355
|
|
|
17
|
|
|
713
|
|
|
159
|
|
||||
Net income attributable to shareholders of Crawford & Company
|
$
|
11,046
|
|
|
$
|
7,896
|
|
|
$
|
19,797
|
|
|
$
|
14,040
|
|
|
Three Months Ended
|
|
Nine Months Ended
|
||||||||||||
(in thousands, except percentages)
|
September 30,
2019 |
|
September 30,
2018 |
|
September 30,
2019 |
|
September 30,
2018 |
||||||||
Revenues Before Reimbursements:
|
|
|
|
|
|
|
|
||||||||
Crawford Claims Solutions
|
$
|
86,250
|
|
|
$
|
85,332
|
|
|
$
|
255,572
|
|
|
$
|
268,888
|
|
Crawford TPA Solutions
|
99,495
|
|
|
100,271
|
|
|
296,807
|
|
|
303,152
|
|
||||
Crawford Specialty Solutions
|
68,932
|
|
|
69,426
|
|
|
206,237
|
|
|
235,137
|
|
||||
Total Revenues before reimbursements
|
$
|
254,677
|
|
|
$
|
255,029
|
|
|
$
|
758,616
|
|
|
$
|
807,177
|
|
Direct Expenses:
|
|
|
|
|
|
|
|
||||||||
Crawford Claims Solutions
|
$
|
66,498
|
|
|
$
|
67,635
|
|
|
$
|
199,190
|
|
|
$
|
211,725
|
|
% of related revenues before reimbursements
|
77.1
|
%
|
|
79.3
|
%
|
|
77.9
|
%
|
|
78.7
|
%
|
||||
Crawford TPA Solutions
|
72,785
|
|
|
73,738
|
|
|
220,956
|
|
|
223,681
|
|
||||
% of related revenues before reimbursements
|
73.2
|
%
|
|
73.5
|
%
|
|
74.4
|
%
|
|
73.8
|
%
|
||||
Crawford Specialty Solutions
|
44,130
|
|
|
43,503
|
|
|
133,771
|
|
|
155,583
|
|
||||
% of related revenues before reimbursements
|
64.0
|
%
|
|
62.7
|
%
|
|
64.9
|
%
|
|
66.2
|
%
|
||||
Total segment direct expenses
|
$
|
183,413
|
|
|
$
|
184,876
|
|
|
$
|
553,917
|
|
|
$
|
590,989
|
|
% of related revenues before reimbursements
|
72.0
|
%
|
|
72.5
|
%
|
|
73.0
|
%
|
|
73.2
|
%
|
||||
Segment Gross Profit:
|
|
|
|
|
|
|
|
||||||||
Crawford Claims Solutions
|
$
|
19,752
|
|
|
$
|
17,697
|
|
|
$
|
56,382
|
|
|
$
|
57,163
|
|
% of related revenues before reimbursements
|
22.9
|
%
|
|
20.7
|
%
|
|
22.1
|
%
|
|
21.3
|
%
|
||||
Crawford TPA Solutions
|
26,710
|
|
|
26,533
|
|
|
75,851
|
|
|
79,471
|
|
||||
% of related revenues before reimbursements
|
26.8
|
%
|
|
26.5
|
%
|
|
25.6
|
%
|
|
26.2
|
%
|
||||
Crawford Specialty Solutions
|
24,802
|
|
|
25,923
|
|
|
72,466
|
|
|
79,554
|
|
||||
% of related revenues before reimbursements
|
36.0
|
%
|
|
37.3
|
%
|
|
35.1
|
%
|
|
33.8
|
%
|
||||
Total segment gross profit
|
$
|
71,264
|
|
|
$
|
70,153
|
|
|
$
|
204,699
|
|
|
$
|
216,188
|
|
% of related revenues before reimbursements
|
28.0
|
%
|
|
27.5
|
%
|
|
27.0
|
%
|
|
26.8
|
%
|
||||
Segment Indirect Costs:
|
|
|
|
|
|
|
|
||||||||
Crawford Claims Solutions
|
$
|
17,091
|
|
|
$
|
17,832
|
|
|
$
|
52,324
|
|
|
$
|
52,053
|
|
% of related revenues before reimbursements
|
19.8
|
%
|
|
20.9
|
%
|
|
20.5
|
%
|
|
19.4
|
%
|
||||
Crawford TPA Solutions
|
17,363
|
|
|
18,478
|
|
|
54,745
|
|
|
55,457
|
|
||||
% of related revenues before reimbursements
|
17.5
|
%
|
|
18.4
|
%
|
|
18.4
|
%
|
|
18.3
|
%
|
||||
Crawford Specialty Solutions
|
11,501
|
|
|
11,560
|
|
|
34,358
|
|
|
45,131
|
|
||||
% of related revenues before reimbursements
|
16.7
|
%
|
|
16.7
|
%
|
|
16.7
|
%
|
|
19.2
|
%
|
||||
Total segment indirect costs
|
$
|
45,955
|
|
|
$
|
47,870
|
|
|
$
|
141,427
|
|
|
$
|
152,641
|
|
% of related revenues before reimbursements
|
18.0
|
%
|
|
18.8
|
%
|
|
18.6
|
%
|
|
18.9
|
%
|
||||
Segment Operating Earnings:
|
|
|
|
|
|
|
|
||||||||
Crawford Claims Solutions
|
$
|
2,661
|
|
|
$
|
(135
|
)
|
|
$
|
4,058
|
|
|
$
|
5,110
|
|
% of related revenues before reimbursements
|
3.1
|
%
|
|
(0.2
|
)%
|
|
1.6
|
%
|
|
1.9
|
%
|
||||
Crawford TPA Solutions
|
9,347
|
|
|
8,055
|
|
|
21,106
|
|
|
24,014
|
|
||||
% of related revenues before reimbursements
|
9.4
|
%
|
|
8.0
|
%
|
|
7.1
|
%
|
|
7.9
|
%
|
||||
Crawford Specialty Solutions
|
13,301
|
|
|
14,363
|
|
|
38,108
|
|
|
34,423
|
|
||||
% of related revenues before reimbursements
|
19.3
|
%
|
|
20.7
|
%
|
|
18.5
|
%
|
|
14.6
|
%
|
|
Three Months Ended
|
||||||||||||||||
|
Based on actual exchange rates
|
|
Based on exchange rates for three months ended September 30, 2018
|
||||||||||||||
(in thousands, except percentages)
|
September 30,
2019 |
|
September 30,
2018 |
|
Variance
|
|
September 30,
2019 |
|
Variance
|
||||||||
U.S.
|
$
|
35,982
|
|
|
$
|
34,480
|
|
|
4.4
|
%
|
|
$
|
35,982
|
|
|
4.4
|
%
|
U.K.
|
15,123
|
|
|
15,803
|
|
|
(4.3
|
)%
|
|
16,354
|
|
|
3.5
|
%
|
|||
Canada
|
12,008
|
|
|
11,692
|
|
|
2.7
|
%
|
|
12,308
|
|
|
5.3
|
%
|
|||
Australia
|
11,886
|
|
|
11,739
|
|
|
1.3
|
%
|
|
13,120
|
|
|
11.8
|
%
|
|||
Europe
|
7,429
|
|
|
7,234
|
|
|
2.7
|
%
|
|
8,082
|
|
|
11.7
|
%
|
|||
Rest of World
|
3,822
|
|
|
4,384
|
|
|
(12.8
|
)%
|
|
3,984
|
|
|
(9.1
|
)%
|
|||
Total Crawford Claims Solutions Revenues before Reimbursements
|
$
|
86,250
|
|
|
$
|
85,332
|
|
|
1.1
|
%
|
|
$
|
89,830
|
|
|
5.3
|
%
|
|
Nine Months Ended
|
||||||||||||||||
|
Based on actual exchange rates
|
|
Based on exchange rates for nine months ended September 30, 2018
|
||||||||||||||
(in thousands, except percentages)
|
September 30,
2019 |
|
September 30,
2018 |
|
Variance
|
|
September 30,
2019 |
|
Variance
|
||||||||
U.S.
|
$
|
103,743
|
|
|
$
|
110,426
|
|
|
(6.1
|
)%
|
|
$
|
103,743
|
|
|
(6.1
|
)%
|
U.K.
|
47,325
|
|
|
47,397
|
|
|
(0.2
|
)%
|
|
50,445
|
|
|
6.4
|
%
|
|||
Canada
|
36,276
|
|
|
38,857
|
|
|
(6.6
|
)%
|
|
37,443
|
|
|
(3.6
|
)%
|
|||
Australia
|
35,220
|
|
|
33,889
|
|
|
3.9
|
%
|
|
38,206
|
|
|
12.7
|
%
|
|||
Europe
|
21,265
|
|
|
23,887
|
|
|
(11.0
|
)%
|
|
22,974
|
|
|
(3.8
|
)%
|
|||
Rest of World
|
11,743
|
|
|
14,432
|
|
|
(18.6
|
)%
|
|
12,172
|
|
|
(15.7
|
)%
|
|||
Total Crawford Claims Solutions Revenues before Reimbursements
|
$
|
255,572
|
|
|
$
|
268,888
|
|
|
(5.0
|
)%
|
|
$
|
264,983
|
|
|
(1.5
|
)%
|
|
Three Months Ended
|
|
Nine Months Ended
|
||||||||||||||
(whole numbers, except percentages)
|
September 30,
2019 |
|
September 30,
2018 |
|
Variance
|
|
September 30,
2019 |
|
September 30,
2018 |
|
Variance
|
||||||
U.S.
|
72,463
|
|
|
81,628
|
|
|
(11.2
|
)%
|
|
218,124
|
|
|
235,080
|
|
|
(7.2
|
)%
|
U.K.
|
13,312
|
|
|
13,265
|
|
|
0.4
|
%
|
|
40,589
|
|
|
41,466
|
|
|
(2.1
|
)%
|
Canada
|
8,911
|
|
|
11,034
|
|
|
(19.2
|
)%
|
|
29,302
|
|
|
32,746
|
|
|
(10.5
|
)%
|
Australia
|
7,887
|
|
|
7,492
|
|
|
5.3
|
%
|
|
29,721
|
|
|
25,247
|
|
|
17.7
|
%
|
Europe
|
10,067
|
|
|
10,757
|
|
|
(6.4
|
)%
|
|
27,326
|
|
|
38,053
|
|
|
(28.2
|
)%
|
Rest of World
|
4,656
|
|
|
4,603
|
|
|
1.2
|
%
|
|
13,210
|
|
|
15,706
|
|
|
(15.9
|
)%
|
Total Crawford Claims Solutions Cases Received
|
117,296
|
|
|
128,779
|
|
|
(8.9
|
)%
|
|
358,272
|
|
|
388,298
|
|
|
(7.7
|
)%
|
|
Three Months Ended
|
||||||||||||||||
|
Based on actual exchange rates
|
|
Based on exchange rates for three months ended September 30, 2018
|
||||||||||||||
(in thousands, except percentages)
|
September 30,
2019 |
|
September 30,
2018 |
|
Variance
|
|
September 30,
2019 |
|
Variance
|
||||||||
U.S.
|
$
|
80,376
|
|
|
$
|
79,979
|
|
|
0.5
|
%
|
|
$
|
80,376
|
|
|
0.5
|
%
|
U.K.
|
2,730
|
|
|
2,863
|
|
|
(4.6
|
)%
|
|
2,955
|
|
|
3.2
|
%
|
|||
Canada
|
8,210
|
|
|
9,081
|
|
|
(9.6
|
)%
|
|
8,415
|
|
|
(7.3
|
)%
|
|||
Europe and Rest of World
|
8,179
|
|
|
8,348
|
|
|
(2.0
|
)%
|
|
8,909
|
|
|
6.7
|
%
|
|||
Total Crawford TPA Solutions Revenues before Reimbursements
|
$
|
99,495
|
|
|
$
|
100,271
|
|
|
(0.8
|
)%
|
|
$
|
100,655
|
|
|
0.4
|
%
|
|
Nine Months Ended
|
||||||||||||||||
|
Based on actual exchange rates
|
|
Based on exchange rates for nine months ended September 30, 2018
|
||||||||||||||
(in thousands, except percentages)
|
September 30,
2019 |
|
September 30,
2018 |
|
Variance
|
|
September 30,
2019 |
|
Variance
|
||||||||
U.S.
|
$
|
237,391
|
|
|
$
|
240,975
|
|
|
(1.5
|
)%
|
|
$
|
237,391
|
|
|
(1.5
|
)%
|
U.K.
|
8,243
|
|
|
9,387
|
|
|
(12.2
|
)%
|
|
8,785
|
|
|
(6.4
|
)%
|
|||
Canada
|
25,466
|
|
|
27,580
|
|
|
(7.7
|
)%
|
|
26,280
|
|
|
(4.7
|
)%
|
|||
Europe and Rest of World
|
25,707
|
|
|
25,210
|
|
|
2.0
|
%
|
|
27,783
|
|
|
10.2
|
%
|
|||
Total Crawford TPA Solutions Revenues before Reimbursements
|
$
|
296,807
|
|
|
$
|
303,152
|
|
|
(2.1
|
)%
|
|
$
|
300,239
|
|
|
(1.0
|
)%
|
|
Three Months Ended
|
|
Nine Months Ended
|
||||||||||||||
(whole numbers, except percentages)
|
September 30,
2019 |
|
September 30,
2018 |
|
Variance
|
|
September 30,
2019 |
|
September 30,
2018 |
|
Variance
|
||||||
U.S.
|
130,718
|
|
|
117,896
|
|
|
10.9
|
%
|
|
369,751
|
|
|
367,138
|
|
|
0.7
|
%
|
U.K.
|
10,411
|
|
|
10,746
|
|
|
(3.1
|
)%
|
|
28,474
|
|
|
33,690
|
|
|
(15.5
|
)%
|
Canada
|
17,817
|
|
|
23,942
|
|
|
(25.6
|
)%
|
|
56,975
|
|
|
72,197
|
|
|
(21.1
|
)%
|
Europe and Rest of World
|
54,082
|
|
|
52,637
|
|
|
2.7
|
%
|
|
156,535
|
|
|
156,561
|
|
|
—
|
%
|
Total Crawford TPA Solutions Cases Received
|
213,028
|
|
|
205,221
|
|
|
3.8
|
%
|
|
611,735
|
|
|
629,586
|
|
|
(2.8
|
)%
|
|
Three Months Ended
|
||||||||||||||||||||
|
Based on actual exchange rates
|
|
Based on exchange rates for three months ended September 30, 2018
|
||||||||||||||||||
(in thousands, except percentages)
|
September 30,
2019 |
|
September 30,
2018 |
|
Variance
|
|
September 30,
2019 |
|
September 30,
2018 |
|
Variance
|
||||||||||
U.S.
|
$
|
29,819
|
|
|
$
|
28,685
|
|
|
4.0
|
%
|
|
$
|
29,819
|
|
|
$
|
28,685
|
|
|
4.0
|
%
|
U.K.
|
12,991
|
|
|
13,965
|
|
|
(7.0
|
)%
|
|
14,055
|
|
|
13,965
|
|
|
0.6
|
%
|
||||
Canada
|
8,132
|
|
|
8,385
|
|
|
(3.0
|
)%
|
|
8,337
|
|
|
8,385
|
|
|
(0.6
|
)%
|
||||
Australia
|
6,157
|
|
|
6,734
|
|
|
(8.6
|
)%
|
|
6,794
|
|
|
6,734
|
|
|
0.9
|
%
|
||||
Europe
|
5,143
|
|
|
5,278
|
|
|
(2.6
|
)%
|
|
5,546
|
|
|
5,278
|
|
|
5.1
|
%
|
||||
Rest of World
|
6,690
|
|
|
6,379
|
|
|
4.9
|
%
|
|
6,963
|
|
|
6,379
|
|
|
9.2
|
%
|
||||
Total Crawford Specialty Solutions Revenues before Reimbursements
|
$
|
68,932
|
|
|
$
|
69,426
|
|
|
(0.7
|
)%
|
|
$
|
71,514
|
|
|
$
|
69,426
|
|
|
3.0
|
%
|
|
Nine Months Ended
|
||||||||||||||||||||
|
Based on actual exchange rates
|
|
Based on exchange rates for nine months ended September 30, 2018 and exclusion of Garden City Group from September 30, 2018
|
||||||||||||||||||
(in thousands, except percentages)
|
September 30,
2019 |
|
September 30,
2018 |
|
Variance
|
|
September 30,
2019 |
|
September 30,
2018 |
|
Variance
|
||||||||||
U.S.
|
$
|
91,158
|
|
|
$
|
115,140
|
|
|
(20.8
|
)%
|
|
$
|
91,158
|
|
|
$
|
86,313
|
|
|
5.6
|
%
|
U.K.
|
38,399
|
|
|
40,754
|
|
|
(5.8
|
)%
|
|
40,934
|
|
|
40,754
|
|
|
0.4
|
%
|
||||
Canada
|
25,295
|
|
|
26,017
|
|
|
(2.8
|
)%
|
|
26,110
|
|
|
24,969
|
|
|
4.6
|
%
|
||||
Australia
|
17,489
|
|
|
18,832
|
|
|
(7.1
|
)%
|
|
18,974
|
|
|
18,832
|
|
|
0.8
|
%
|
||||
Europe
|
14,796
|
|
|
16,359
|
|
|
(9.6
|
)%
|
|
15,847
|
|
|
16,359
|
|
|
(3.1
|
)%
|
||||
Rest of World
|
19,100
|
|
|
18,035
|
|
|
5.9
|
%
|
|
19,872
|
|
|
18,035
|
|
|
10.2
|
%
|
||||
Total Crawford Specialty Solutions Revenues before Reimbursements
|
$
|
206,237
|
|
|
$
|
235,137
|
|
|
(12.3
|
)%
|
|
$
|
212,895
|
|
|
$
|
205,262
|
|
|
3.7
|
%
|
|
Three Months Ended
|
|
Nine Months Ended
|
|
||||||||||||||
(whole numbers, except percentages)
|
September 30,
2019 |
|
September 30,
2018 |
|
Variance
|
|
September 30,
2019 |
|
September 30,
2018 |
|
Variance
|
|
||||||
U.S.
|
53,420
|
|
|
58,870
|
|
|
(9.3
|
)%
|
|
162,737
|
|
|
170,006
|
|
|
(4.3
|
)%
|
|
U.K.
|
3,613
|
|
|
5,217
|
|
|
(30.7
|
)%
|
|
9,889
|
|
|
12,741
|
|
|
(22.4
|
)%
|
|
Canada
|
16,418
|
|
|
16,215
|
|
|
1.3
|
%
|
|
52,528
|
|
|
56,336
|
|
|
(6.8
|
)%
|
|
Australia
|
1,262
|
|
|
1,514
|
|
|
(16.6
|
)%
|
|
4,294
|
|
|
5,768
|
|
|
(25.6
|
)%
|
|
Europe
|
2,033
|
|
|
2,894
|
|
|
(29.8
|
)%
|
|
7,225
|
|
|
11,338
|
|
|
(36.3
|
)%
|
|
Rest of World
|
5,584
|
|
|
5,594
|
|
|
(0.2
|
)%
|
|
15,694
|
|
|
14,919
|
|
|
5.2
|
%
|
|
Total Crawford Specialty Solutions Cases Received
|
82,330
|
|
|
90,304
|
|
|
(8.8
|
)%
|
|
252,367
|
|
|
271,108
|
|
|
(6.9
|
)%
|
|
•
|
Unbilled revenues increased $8.7 million excluding foreign currency exchange impacts. This increase was primarily due to the Crawford Claims Solutions segment, which had increases due to weather related activity in Australia and other increases in the U.S. and Canada.
|
•
|
Accounts payable and accrued liabilities decreased $4.4 million excluding foreign exchange impacts. The decrease related to changes in our self insurance liabilities and timing of payments within accounts payable. Included in this amount is the net change for the inclusion of "Operating lease right-of-use assets, net" and "Operating lease liabilities" as well as the removal of "Deferred rent", as discussed further below.
|
Period
|
|
Total Number of Shares Purchased
|
|
Average Price Paid Per Share
|
|
Total Number of Shares Purchased as Part of Publicly Announced Plans or Programs
|
|
Maximum Number of Shares That May be Purchased Under the Plans or Programs
|
|
|||||
Balance as of June 30, 2019
|
|
|
|
|
|
|
|
1,647,570
|
|
|
||||
July 1, 2019 - July 31, 2019
|
|
|
|
|
|
|
|
|
|
|||||
CRD-A
|
|
11,089
|
|
|
$
|
10.00
|
|
|
11,089
|
|
|
|
|
|
CRD-B
|
|
75,000
|
|
|
$
|
9.35
|
|
|
75,000
|
|
|
|
|
|
Totals of July 31, 2019
|
|
|
|
|
|
|
|
1,561,481
|
|
|
||||
August 1, 2019 - August 31, 2019
|
|
|
|
|
|
|
|
|
|
|||||
CRD-A
|
|
304,115
|
|
|
$
|
9.65
|
|
|
304,115
|
|
|
|
|
|
CRD-B
|
|
75,000
|
|
|
$
|
9.50
|
|
|
75,000
|
|
|
|
|
|
Totals of August 31, 2019
|
|
|
|
|
|
|
|
1,182,366
|
|
|
||||
September 1, 2019 - September 30, 2019
|
|
|
|
|
|
|
|
|
|
|||||
CRD-A
|
|
86,688
|
|
|
$
|
9.95
|
|
|
86,688
|
|
|
|
|
|
CRD-B
|
|
81,137
|
|
|
$
|
9.44
|
|
|
81,137
|
|
|
|
|
|
Totals as of September 30, 2019
|
|
633,029
|
|
|
|
|
633,029
|
|
|
1,014,541
|
|
|
||
|
|
|
|
|
|
|
|
|
|
Exhibit
|
|
|
No.
|
|
Description
|
3.1
|
|
|
|
|
|
3.2
|
|
|
|
|
|
10.1
|
|
|
|
|
|
15
|
|
|
|
|
|
31.1
|
|
|
|
|
|
31.2
|
|
|
|
|
|
32.1
|
|
|
|
|
|
32.2
|
|
|
|
|
|
101
|
|
XBRL Documents
|
|
|
|
Crawford & Company
(Registrant)
|
|
||
|
|
|
|
|
||
Date:
|
November 4, 2019
|
|
/s/ Harsha V. Agadi
|
|
||
|
|
|
Harsha V. Agadi
|
|
||
|
|
|
President and Chief Executive Officer
(Principal Executive Officer)
|
|
||
|
|
|||||
|
|
|
|
|
||
Date:
|
November 4, 2019
|
|
/s/ W. Bruce Swain
|
|
||
|
|
|
W. Bruce Swain
|
|
||
|
|
|
Executive Vice President and Chief Financial Officer (Principal Financial Officer)
|
|
(i)
|
a “covered entity” as that term is defined in, and interpreted in accordance with, 12 C.F.R. § 252.82(b);
|
(ii)
|
a “covered bank” as that term is defined in, and interpreted in accordance with, 12 C.F.R. § 47.3(b); or
|
(iii)
|
a “covered FSI” as that term is defined in, and interpreted in accordance with, 12 C.F.R. § 382.2(b).
|
(1)
|
Consolidated Net Income for the Reference Period ending on the date of determination (from Line E(3) below)
|
|
$____________
|
(2)
|
Additions to Consolidated Net Income (without duplication and to the extent deducted in determining Consolidated Net Income for such Reference Period):
|
|
|
|
(a) Consolidated Interest Expense
|
$____________
|
|
|
(b) Income tax expense
|
$____________
|
|
|
(c) Depreciation and amortization
|
$____________
|
|
|
(d) Non-cash stock-based compensation expense
|
$____________
|
|
|
(e) All other non-cash charges (but excluding any non-cash charge that will result in a cash charge in a future Reference Period)
|
$____________
|
|
|
(f) Expenses actually paid in connection with the consummation of the Credit Agreement
|
$____________
|
|
|
(g) Charges or expenses related to corporate restructuring, discontinuance or diminishment of business lines and severance
|
$____________
|
|
|
(h) Non-recurring fees and expenses (or any amortization thereof) related to Permitted Acquisitions, issuances of Indebtedness (including amendments and waivers in connection with any such issuance of Indebtedness), Equity Issuances or Assets Dispositions, in each case whether or not consummated
|
$____________
|
|
|
(i) Losses from Asset Dispositions
|
$____________
|
|
|
(j) Solely for each Reference Period ending on September 30, 2019, December 31, 2019 or March 31, 2020, charges or expenses, not to exceed $11,352,000 in the aggregate, consisting of severance, interest, attorney’s fees and expenses (including indemnification obligations in respect of the adverse parties) and arbitration fees and expenses paid or incurred in connection with the arbitration concluded on or about June 21, 2019 relating to claims of former executives of Garden City Group, LLC
|
$____________
|
|
|
(k) Add Lines D(2)(a) through D(2)(j)
|
$____________
|
|
(3)
|
Net Income plus Additions:
Add Lines D(1) and D(2)(k)
|
|
$____________
|
(4)
|
Reductions from Consolidated Net Income (without duplication and to the extent included in determining Consolidated Net Income for such Referenced Period):
|
|
|
|
(a) Gains from Asset Dispositions
|
$____________
|
|
|
(b) Gains attributable to the write-up of assets
|
$____________
|
|
|
(c) Add Lines D(4)(a) and D(4)(b)
|
|
$____________
|
(5)
|
Subtract Line D(4)(c) from Line D(3)
|
|
$____________
|
(6)
|
Certain Transaction Costs
|
|
|
|
(a) Add Lines D(2)(f) through D(2)(h)
|
$____________
|
|
|
(b) Maximum certain transaction costs allowed:
The product of (1) 0.05 divided by 0.95 times (2) (i) Line D(1) plus (ii) the sum of Lines D(2)(a) through D(2)(e) plus (iii) Line D(2)(i) minus (iv) Line D(4)(c)
|
$____________
|
|
(7)
|
Consolidated EBITDA:
Line D(5) minus the excess, if any, of Line D(6)(a) over D(6)(b)
|
|
$____________
|
1.
|
I have reviewed this Quarterly Report on Form 10-Q of Crawford & Company;
|
2.
|
Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
|
3.
|
Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;
|
4.
|
The registrant's other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)), for the registrant and have:
|
5.
|
The registrant's other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions):
|
|
|
|
|
Date:
|
November 4, 2019
|
/s/ Harsha V. Agadi
|
|
|
|
Harsha V. Agadi
|
|
|
|
President and Chief Executive Officer
(Principal Executive Officer)
|
|
|
|
1.
|
I have reviewed this Quarterly Report on Form 10-Q of Crawford & Company;
|
2.
|
Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
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3.
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Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;
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4.
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The registrant's other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)), for the registrant and have:
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5.
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The registrant's other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions):
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Date:
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November 4, 2019
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/s/ W. Bruce Swain
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W. Bruce Swain
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Executive Vice President and Chief
Financial Officer (Principal Financial Officer)
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1.
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The Report fully complies with the requirements of section 13(a) or 15(d) of the Securities Exchange Act of 1934 (15 U.S.C. 78m or 780(d)); and
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2.
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The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.
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Date:
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November 4, 2019
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/s/ Harsha V. Agadi
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Harsha V. Agadi
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President and Chief Executive Officer
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(Principal Executive Officer)
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1.
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The Report fully complies with the requirements of section 13(a) or 15(d) of the Securities Exchange Act of 1934 (15 U.S.C. 78m or 780(d)); and
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2.
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The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.
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Date:
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November 4, 2019
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/s/ W. Bruce Swain
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W. Bruce Swain
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Executive Vice President and Chief Financial Officer
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(Principal Financial Officer)
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