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Board Declares Quarterly Dividend
ATLANTA, July
23, 2003 -- On July 22, 2003, at its regular quarterly meeting, the
Board of Directors of Crawford & Company (NYSE: CRDA CRDB)declared
quarterly dividends of $0.06 per share on the Class A Common Stock
and $0.06 per share on the Class B Common Stock, payable on August
15, 2003 to shareholders of record as of the close of business on
August 4, 2003.
Based in Atlanta, Georgia, Crawford & Company is the world's largest independent provider of claims management solutions to insurance companies and self-insured entities, with a global network of more than 700 offices in 67 countries. Major service lines include workers' compensation claims administration and healthcare management services, property and casualty claims management, class action services and risk management information services. The Company's shares are traded on the NYSE under the symbols CRDA and CRDB.
Return to headlines
Reports 24% Increase in Second Quarter Net Income
ATLANTA, July
21, 2003 -- Crawford & Company (NYSE: CRDA CRDB), the world's largest
independent provider of claims management solutions to insurance companies
and self-insured entities, today announced its financial results for
the second quarter ended June 30, 2003.
Second quarter 2003 revenues before reimbursements totaled $176.3 million compared with $178.0 million in the 2002 second quarter. Second quarter 2003 net income was $6.1 million, growing from $4.9 million for the 2002 second quarter. Second quarter 2003 net income per share was $0.12 per share, up 20% from $0.10 in the prior-year quarter.
Operating earnings (earnings before special credit, net corporate interest and taxes) in the 2003 second quarter totaled $10.7 million compared with $8.8 million in the comparable 2002 quarter. Operating earnings in the 2003 six-month period totaled $17.1 million compared with $16.8 million in the comparable 2002 period. Operating earnings is one of the key performance measures used by the Company's senior management to evaluate the performance of its business and make resource allocation decisions. The Company believes this measure is useful to investors in that it allows them to evaluate its performance using the same criteria that management uses.
U.S. revenues before reimbursements were $121.9 million in the second quarter of 2003 compared with $131.7 million in the 2002 second quarter. Revenues from the insurance company market were $62.2 million in the 2003 second quarter compared with $68.3 million in the 2002 period, reflecting a continued softening in the Company's U.S. insurance company referrals for high-frequency, low-severity claims in the current quarter. Lower medical bill auditing revenues associated with the previously reported non-renewal of a contract with a major domestic insurer contributed $2.8 million of this decline. Revenues from self-insured clients were $42.1 million in the 2003 second quarter compared with $49.1 million in the 2002 quarter, primarily reflecting declines in U.S. employment levels and associated injury rates which have contributed to a reduction in workers' compensation claims. Class action services revenues were $17.6 million for the 2003 second quarter, compared with $14.3 million in the comparable year-ago quarter, up 23% due to the award of a new class action settlement in the quarter.
Second quarter 2003 international revenues grew to $54.5 million from $46.3 million for the same period in 2002. This growth is partly due to the Company's third quarter 2002 acquisition of the loss adjusting business of Robertson and Company in Australia. During the 2003 second quarter, the U.S. dollar weakened significantly against the British pound and the euro, resulting in a net exchange rate benefit in the quarter. Excluding the benefit of exchange rate fluctuations, international revenues would have been $48.8 million in the 2003 second quarter.
Mr. Grover L. Davis, chief executive officer of Crawford & Company, stated, "Our second quarter results reflect a continued industry-wide decline in property and casualty claims frequency. Conservative underwriting by our insurance company clients, including significant increases in policy deductibles, has contributed to a decline in property and casualty claims frequency, resulting in an overall 17% decline in claims referred to Crawford in the U.S. In addition, our self-insured market revenues in the U.S. were negatively impacted by a reduction in workers' compensation claims frequency, as the U.S. unemployment rate is at its highest point in a decade, private sector workplace injuries have declined significantly, and employee absentee rates are at their lowest levels since 1991."
"While we continue to endure challenging industry circumstances, we were pleased that we successfully reduced our U.S. operating expenses over 11% in the current quarter in response to the decline in claims volume and improved our operating margin to better than 8% as compared to 4.5% in the 2002 second quarter and 3.5% for the 2003 first quarter. The operating margins in our international operations were disappointing in the second quarter, declining to 1% from just over 6% in the prior year, primarily due to declining volume in our Canadian and U.K. operations. We are particularly disappointed in the results of our U.K. operations where we experienced a loss in the 2003 second quarter after posting profitable results in this year's first quarter. We have entered into several new client service agreements and the claims associated with those programs have been slow to develop. We believe that new claims associated with these programs will be reported to us and our existing cost base is appropriate for the projected level of claims activity. Further, once our claim volumes from these new arrangements stabilize, we believe our U.K. operations should be profitable beginning in this year's fourth quarter."
Total revenues before reimbursements for the year-to-date period ended June 30, 2003 were $343.6 million compared with $349.8 million in 2002. Operating earnings through June 2003 totaled $17.1 million compared with $16.8 million in 2002. Net income for the current year-to-date period totaled $9.3 million, or $0.19 per share, compared with $13.0 million, or $0.27 per share, reported in the prior year. Net income in the 2002 first quarter included a payment received from a former vendor in full settlement of a business dispute of $3.8 million, net of related income tax expense, or $0.08 per share.
U.S. revenues before reimbursements for the 2003 six-month period were $236.9 million compared with $258.3 million in 2002. International revenues before reimbursements were $106.6 million in 2003 compared with $91.5 million during 2002. Excluding the benefit of exchange rate fluctuations, international revenues would have been $96.9 million in the current year-to- date period.
Mr. Davis concluded, "We are pleased with the growth in our class action services business this year. We benefited from the award of a significant new contract during the second quarter and are aggressively pursuing other opportunities which should contribute to future revenue growth in this business. In addition, our cash flows from operating activities were $24.6 million for the year-to-date 2003 period, up from $21.6 million in the comparable prior-year period. Overall, our cash and cash equivalents at June 30, 2003 have grown $10.2 million from the end of 2002 and are $23.1 million greater than the balances at June 30, 2002."
"We remain committed to preserving our profitability and are closely monitoring our U.S. and international operating expenses to ensure that we achieve a consolidated operating margin of 6% to 7% for 2003. By managing our costs, we believe that we will be able to preserve our current level of dividends, which is important to us in delivering shareholder value and building investor confidence."
"As focused as we are on aggressively managing our cost structure, we are also equally focused on growing our top line in everything we do. Significant progress was made on all of our technology initiatives during the first six months of the year. These projects impact every area of our business and share a common element: to make it easier for our clients to do business with us, which in turn should help drive revenue growth. Another ongoing initiative that is producing tangible benefits is our Six Sigma project, which is identifying process and quality improvements that will result in more consistent, responsive and cost-effective service delivery by our branch operations. This project is focused on ensuring that we consistently meet our clients' desired service levels, which should lead to increased market penetration with both existing and new clients."
Crawford & Company's management will host a conference call with analysts on Monday, July 21, 2003 at 3:00 p.m. EDT, to discuss its quarterly earnings and other developments. The call will be recorded and available for replay through July 28, 2003. You may dial 1-800-428-6051 (973-709-2089 international) to listen to the replay. The access code is 300341. Alternatively, please visit our web site at www.crawfordandcompany.com for a live audio web cast.
Further information regarding the Company's financial position, operating results, and cash flows for the quarter ended June 30, 2003 is shown on the attached statements.
Based in Atlanta, Georgia, Crawford & Company is the world's largest independent provider of claims management solutions to insurance companies and self-insured entities, with a global network of more than 700 offices in 67 countries. Major service lines include workers' compensation claims administration and healthcare management services, property and casualty claims management, class action services and risk management information services. The Company's shares are traded on the NYSE under the symbols CRDA and CRDB.
Except for historical information contained herein, the matters discussed in this news release are forward-looking statements that involve risks and uncertainties. The results achieved in the quarter ended June 30, 2003 are not necessarily indicative of future prospects for the Company. Actual results in future quarters may differ materially. For a complete discussion regarding factors which could affect the Company's financial performance, see the Company's Form 10-K for the year ended December 31, 2002 filed with the Securities and Exchange Commission, in particular the information under the headings "Business", "Legal Proceedings" and "Management's Discussion and Analysis of Financial Condition and Results of Operations."
The Company undertakes no obligation to publicly release any revisions to any forward-looking statements contained herein to reflect events or circumstances occurring after the date hereof or to reflect the occurrence of unanticipated events. The Company's actual results may differ materially from those projected in forward-looking statements made by, or on behalf of, the Company.
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Announces Earnings Conference Call
ATLANTA, July
7, 2003 -- CRAWFORD & COMPANY (CRDA), the world's largest independent
provider of claims management solutions to insurance companies and
self- insured entities, will issue its earnings release on Monday,
July 21, 2003 at 10:00 a.m. Eastern Time.
The quarterly conference call, to discuss its quarterly earnings and other developments, will be held on Monday, July 21, 2003, at 3:00 p.m. Eastern Time. This call can be accessed by dialing 1- 800-915-4836 (Domestic) or 1-973-317-5319 (International).
The financial and statistical information for the earnings call will be placed
at Crawford & Company's web site at (www.crawfordandcompany.com/ua_quarterly.html
). This call
is being webcast by CCBN and can be accessed at Crawford & Company's
web site at (www.crawfordandcompany.com).
The webcast is also being distributed over CCBN's Investor Distribution Network to both institutional and individual investors. Individual investors can listen to the call through CCBN's individual investor center at (www.companyboardroom.com ) or by visiting any of the investor sites in CCBN's Individual Investor Network. Institutional investors can access the call via CCBN's password-protected event management site, StreetEvents (www.streetevents.com ).
Based in Atlanta, Georgia, Crawford & Company is the world's largest independent provider of claims management solutions to insurance companies and self-insured entities, with a global network of more than 700 offices in 67 countries. Major service lines include workers' compensation claims administration and healthcare management services, property and casualty claims management, class action services and risk management information services. The Company's shares are traded on the NYSE under the symbols CRDA and CRDB.
Return to headlines
Declares Quarterly Dividend
ATLANTA, April
30, 2003-- On April 29, 2003, at its regular quarterly meeting, the
Board of Directors of Crawford & Company (NYSE: CRDA CRDB) declared
quarterly dividends of $0.06 per share on the Class A Common Stock
and $0.06 per share on the Class B Common Stock, payable on May 23,
2003 to shareholders of record as of the close of business on May
12, 2003.
Based in Atlanta, Georgia, Crawford & Company is the world's largest
independent provider of claims management solutions to insurance
companies and self-insured entities, with a global network of more
than 700 offices in 67 countries. Major service lines include workers'
compensation claims administration and healthcare management services,
property and casualty claims management, class action services and
risk management information services. The Company's shares are traded
on the NYSE under the symbols CRDA and CRDB.
Return to headlines
Reports
First Quarter 2003 Results
ATLANTA, April
24, 2003 -- Crawford & Company (NYSE: CRDA CRDB) announced its financial
results for the first quarter ended March 31, 2003.
First quarter 2003 revenues before reimbursements totaled $167.3
million compared with $171.8 million in the 2002 first quarter.
First quarter 2003 net income was $3.2 million versus $8.2 million
for the 2002 first quarter. Net income in the 2002 first quarter
included a payment received from a former vendor in full settlement
of a business dispute of $3.8 million, net of related income tax
expense, or $0.08 per share. First quarter 2003 net income per share
was $0.07 per share, compared with $0.17 in the prior-year quarter.
Operating earnings is one of the key performance measures used
by the Company's senior management to evaluate the performance of
its business and make resource allocation decisions. The Company
believes this measure is useful to investors in that it allows them
to evaluate its performance using the same criteria that management
uses. Operating earnings (earnings before special credit, net corporate
interest and taxes) in the 2003 first quarter totaled $6.4 million
compared with $8.0 million in the comparable 2002 quarter.
U.S. revenues before reimbursements were $115.1 million in the
first quarter of 2003 compared with $126.6 million in the 2002 first
quarter. Revenues from the insurance company market were $58.7 million
in the 2003 first quarter compared with $64.8 million in the 2002
period, reflecting a continued softening in the Company's U.S. insurance
company referrals for high-frequency, low-severity claims in the
current quarter. Lower medical bill auditing revenues associated
with the previously reported non-renewal of a contract with a major
domestic insurer contributed $3.1 million of this decline. Revenues
from self-insured clients were $42.5 million in the 2003 first quarter
compared with $50.3 million in the 2002 quarter, primarily reflecting
declines in U.S. employment levels and associated injury rates which
have contributed to a reduction in workers' compensation claims.
Class action services revenues were $13.9 million for the 2003 first
quarter, compared with $11.5 million in the comparable year-ago
quarter.
First quarter 2003 international revenues grew to $52.2 million
from $45.2 million for the same period in 2002. This growth is largely
due to the Company's third quarter 2002 acquisition of the loss
adjusting business of Robertson and Company in Australia and growth
within its Canadian and United Kingdom operations. During the 2003
first quarter, the U.S. dollar weakened significantly against the
British Pound and the Euro, resulting in a net exchange rate benefit
in the quarter. Excluding the benefit of exchange rate fluctuations,
international revenues would have been $48.1 million in the 2003
first quarter. Mr. Grover L. Davis, chief executive officer of Crawford
& Company, stated, "Our first quarter results reflect a continued
industry-wide decline in property & casualty claims frequency. Conservative
underwriting, increases in policy deductibles, and mild weather
have contributed to a decline in property and casualty claims frequency,
resulting in an overall 14% decline in cases received in the U.S.
These factors impacted our U.S. insurance company referrals for
high-frequency, low-severity claims and resulted in lower U.S. revenues.
In addition, our self-insured market revenues in the U.S. were negatively
impacted by a reduction in workers' compensation claims frequency.
In fact, the Bureau of Labor Statistics recently reported an 8%
decline in private sector workplace injuries, and employee absentee
rates are at their lowest levels since 1991."
"In the face of challenging industry circumstances, we successfully
reduced our U.S. operating expenses nearly 8% in the current quarter
in response to the decline in claims volume. While we could not
maintain our operating margin, we remain committed to preserving
our profitability and are currently taking aggressive steps to reduce
our U.S. annual operating costs by approximately $15 million from
their current level. This is a difficult and painful decision, but
we believe that it is essential in order to increase our U.S. operating
margin to an acceptable level of 6% to 7% over the remainder of
the year. This operating margin would equate to an after-tax margin
of approximately 4%. By achieving these cost reductions, we believe
that we will be able to preserve our current level of dividends,
which is of paramount importance to us in delivering shareholder
value and building investor confidence."
Mr. Davis concluded, "Our technology initiatives are continuing
to bear fruit and we will begin our pilot implementation of a case
management system to support our medical and vocational consultants
in the next month. This system will greatly improve employee mobility
and information access, service consistency and quality, and the
validation of the benefits our clients gain from our services. The
production rollout of this system will begin in July."
Crawford & Company's management will host a conference call with
analysts on Thursday, April 24, 2003 at 3:00 p.m. EDT, to discuss
its quarterly earnings and other developments. The call will be
recorded and available for replay through May 1, 2003. You may dial
1-800-428-6051 (973-709-2089 international) to listen to the replay.
The access code is 289711. Alternatively, please visit our web site
at www.crawfordandcompany.com
for a live audio web cast.
Further information regarding the Company's financial position,
operating results, and cash flows for the quarter ended March 31,
2003 is shown on the attached statements.
Based in Atlanta, Georgia, Crawford & Company is the world's largest
independent provider of claims management solutions to insurance
companies and self-insured entities, with a global network of more
than 700 offices in 67 countries. Major service lines include workers'
compensation claims administration and healthcare management services,
property and casualty claims management, class action services and
risk management information services. The Company's shares are traded
on the NYSE under the symbols CRDA and CRDB.
Except for historical information contained herein, the matters
discussed in this news release are forward-looking statements that
involve risks and uncertainties. The results achieved in the quarter
ended March 31, 2003 are not necessarily indicative of future prospects
for the Company. Actual results in future quarters may differ materially.
For a complete discussion regarding factors which could affect the
Company's financial performance, see the Company's Form 10-K for
the year ended December 31, 2002 filed with the Securities and Exchange
Commission, in particular the information under the headings "Business",
"Legal Proceedings" and "Management's Discussion and Analysis of
Financial Condition and Results of Operations." The Company undertakes
no obligation to publicly release any revisions to any forward-looking
statements contained herein to reflect events or circumstances occurring
after the date hereof or to reflect the occurrence of unanticipated
events. The Company's actual results may differ materially from
those projected in forward-looking statements made by, or on behalf
of, the Company.
Return to headlines
Declares
Quarterly Dividend
ATLANTA, Jan.
29, 2003 -- On January 28, 2003, at its regular quarterly meeting,
the Board of Directors of Crawford & Company (NYSE:CRDA CRDB) declared
quarterly dividends of $0.06 per share on the Class A Common Stock
and $0.06 per share on the Class B Common Stock, payable on February
21, 2003, to shareholders of record as of the close of business on
February 10, 2003.
Based in Atlanta, Georgia, Crawford & Company is the world's largest
independent provider of claims management solutions to insurance
companies and self-insured entities, with a global network of more
than 700 offices in 67 countries. Major service lines include workers'
compensation claims administration and healthcare management services,
property and casualty claims management, class action services and
risk management information services. The Company's shares are traded
on the NYSE under the symbols CRDA and CRDB. SOURCE Crawford & Company
Return to headlines
Reports Financial Results for Fourth Quarter and Year-End 2002
ATLANTA, Jan.
24 , 2003 -- Crawford & Company (NYSE:CRDA CRDB) announced its financial
results for the fourth quarter and year ended December 31, 2002.
Fourth quarter 2002 revenues before reimbursements totaled $173.7
million compared with $178.1 million in the comparable 2001 period.
Operating earnings (earnings before amortization of goodwill, net
corporate interest and taxes) in the 2002 fourth quarter totaled
$10.3 million compared with $11.5 million in the 2001 period. Year-over-year
fourth quarter net income was unchanged at $5.8 million.
U.S. revenues before reimbursements were $121.7 million in the
2002 fourth quarter compared with $129.8 million in the prior year
fourth quarter. Revenues from the U.S. insurance company market
were $60.5 million in the 2002 fourth quarter versus $66.8 million
in the 2001 quarter, reflecting a continued softening in the Company's
U.S. insurance company referrals for high-frequency, low-severity
claims in the current quarter. Revenues from self-insured clients
were $44.4 million in the 2002 fourth quarter compared with $51.1
million in the 2001 quarter. We believe this weakening is largely
due to declines in U.S. employment levels and associated injury
rates which have contributed to a reduction in workers' compensation
claims. Class action services revenues grew to $16.8 million during
the 2002 fourth quarter, compared with $11.9 million in the comparable
2001 period, reflecting the completion of a major project during
the current quarter.
Fourth quarter 2002 international revenues before reimbursements
reached $52.1 million, up from $48.3 million in the 2001 period.
This growth was aided by the Company's recent acquisition in Australia
and growth within its European operations. During the fourth quarter,
the U.S. dollar weakened significantly against the British Pound
and the Euro, resulting in a net exchange rate benefit in the quarter.
Excluding the benefit of exchange rate fluctuations, international
revenues would have been $50.6 million in the 2002 fourth quarter.
Also during the 2002 fourth quarter, the Company recorded a charge
to Accumulated Other Comprehensive Loss, a component of Shareholders'
Investment, of $42.2 million, net of related tax benefits. This
non-cash charge resulted from a decline in the fair value of the
Company's pension investments as of September 30, 2002, as well
as a decline in interest rates during the year. The charge had no
effect on the Company's operating results or cash flows during the
quarter. Effective December 31, 2002, the Company froze its U.S.
defined benefit pension plan and replaced it with a defined contribution
retirement plan.
Fourth quarter 2002 net income per share was $0.12 per share, unchanged
from the prior year quarter. 2002 fourth quarter net income, relative
to the 2001 fourth quarter, was increased by $0.02 per share due
to the Company's adoption of Statement of Financial Accounting Standard
142, "Goodwill and Other Intangible Assets."
Mr. Grover L. Davis, chairman and chief executive officer of Crawford
& Company, stated, "Our fourth quarter results reflect the continued
industry- wide decline in property & casualty claims frequency.
Conservative underwriting, increases in policy deductibles and mild
weather have all contributed to a decline in property and casualty
claims frequency, resulting in an overall 17% decline in cases received
in the U.S. These factors impacted our U.S. insurance company referrals
for high-frequency, low-severity claims and resulted in lower U.S.
revenues.
"On a positive note, we successfully reduced our cost of services
by 4% in the 2002 fourth quarter despite a $2.5 million increase
in pension expense in the quarter. Without the pension expense increase,
our cost of services would have declined over 6% during the 2002
fourth quarter. In addition, we continued to realize the benefits
of the cost reduction initiatives we undertook earlier in the year
to reduce our operating costs by $1.0 million per month from second
quarter 2002 levels. We remain committed to vigilantly managing
our operating costs in 2003. Cash flow from operations was also
very strong in the current quarter, as we ended the year with $31.1
million in cash, up from $22.0 million at the end of 2001."
Total revenues before reimbursements for the year ended December
31, 2002 were $699.4 million compared with $725.5 million in 2001.
Operating earnings (before nonrecurring credit in the 2002 first
quarter) for the year totaled $37.2 million versus $56.0 million
in 2001.
U.S. revenues before reimbursements for the year were $508.7 compared
with $534.7 million in 2001. International revenues before reimbursements
were $190.7 million in 2002 compared with $190.9 million during
2001. Excluding the adverse impact of exchange rate fluctuations
due to the overall strength of the U.S. dollar during the year,
2002 international revenues would have grown to $191.2 million.
Net income for the year was $24.5 million, or $0.50 per share versus
$29.4 million, or $0.61 per share, reported in the prior year. The
Company's adoption of Statement of Financial Accounting Standard
142, "Goodwill and Other Intangible Assets" increased 2002 net income
per share by $0.06.
Mr. Davis concluded, "We are encouraged by our prospects for 2003
and are hopeful that we are beginning to see a slight turnaround
in the property and casualty market, which has been under tremendous
pressure in recent years. While we believe difficult market conditions
will persist, especially in the short-term, the potential for growth
in services to the insurance industry is significant and we are
well positioned in all of our strategic markets to realize this
potential. Our plans for 2003 include significant investments in
existing, proven technologies that will improve the consistency,
quality, and efficiency of our service delivery, while making it
easier for our clients to do business with us."
Crawford & Company's conference call on Monday, January 27, 2003,
at 3:00 p.m. EST, to discuss its quarterly earnings and other developments,
will be recorded and available for replay through February 3, 2003.
You may dial 1-800-428-6051 (973-709-2089 international) to listen.
The access code is 276989. Alternatively, please visit our website
at www.crawfordandcompany.com for a live audio web cast.
Further information regarding the Company's financial position,
operating results and cash flows for the quarter and year ended
December 31, 2002 is shown on the attached statements.
Based in Atlanta, Georgia, Crawford & Company is the world's largest
independent provider of claims management solutions to insurance
companies and self-insured entities, with a global network of more
than 700 offices in 67 countries. Major service lines include workers'
compensation claims administration and healthcare management services,
property and casualty claims management, class action services and
risk management information services. The Company's shares are traded
on the NYSE under the symbols CRDA and CRDB.
Except for historical information contained herein, the matters
discussed in this news release are forward-looking statements that
involve risks and uncertainties. The results achieved in the quarter
and year ended December 31, 2002 are not necessarily indicative
of future prospects for the Company. Actual results in future quarters
may differ materially. For a complete discussion regarding factors
which could affect the Company's financial performance, see the
Company's Form 10-K for the year ended December 31, 2001 filed with
the Securities and Exchange Commission, in particular the information
under the headings "Business", "Legal Proceedings", and "Management's
Discussion and Analysis of Financial Condition and Results of Operations."
The Company undertakes no obligation to publicly release any revisions
to any forward-looking statements contained herein to reflect events
or circumstances occurring after the date hereof or to reflect the
occurrence of unanticipated events. The Company's actual results
may differ materially from those projected in forward-looking statements
made by, or on behalf of, the Company.
Return to headlines
Awarded
The Hartford Account
ATLANTA, November 12, 2002 -- Crawford & Company (NYSE:CRDA CRDB)
announced today that it has signed a contract with The Hartford
Financial Services Group to provide independent adjuster services
for property claims.
"Crawford is honored to be chosen as an independent adjuster for
such a prestigious and world-renowned company," said Grover L. Davis,
Crawford chairman and CEO.
The Hartford (NYSE:HIG), one of the country's largest investment
and insurance companies is a leading provider of investment products,
life insurance and group and employee benefits; automobile and homeowner's
products; business insurance; and reinsurance.
Based in Atlanta, Georgia, Crawford & Company is the world's largest
independent provider of claims management solutions to insurance
companies and self-insured entities, with a global network of more
than 700 offices in 67 countries. Major service lines include workers'
compensation claims administration, healthcare management services,
property and casualty claims management, class action services,
and risk management information services. The Company's shares are
traded on the NYSE under the symbols CRDA and CRDB.
Return to headlines
Board Declares Quarterly
Dividend
ATLANTA, October 30, 2002 -- On October 29, 2002, at its regular
quarterly meeting, the Board of Directors of Crawford & Company
(NYSE:CRDA CRDB) declared quarterly dividends of $0.06 per share
on the Class A Common Stock and $0.06 per share on the Class B Common
Stock, payable on November 22, 2002 to shareholders of record as
of the close of business on November 12, 2002.
Based in Atlanta, Georgia, Crawford & Company is the world's largest
independent provider of claims management solutions to insurance
companies and self-insured entities, with a global network of more
than 700 offices in 67 countries. Major service lines include workers'
compensation claims administration and healthcare management services,
property and casualty claims management, class action services and
risk management information services. The Company's shares are traded
on the NYSE under the symbols CRDA and CRDB.
Return to headlines
Reports Third Quarter
2002 Results
ATLANTA, October 22, 2002 -- Crawford & Company (NYSE:CRDA CRDB)
today announced its financial results for the third quarter and
nine months ended September 30, 2002. 2002 third quarter revenues
before reimbursements were $175.9 million compared with $181.4 million
in the 2001 third quarter. Operating earnings (earnings before amortization
of goodwill, net corporate interest and taxes) in the third quarter
totaled $10.1 million compared with $12.8 million in the 2001 quarter.
Net income was $5.6 million, or $0.11 per share, in the 2002 third
quarter compared with $6.7 million, or $0.14 per share, in the 2001
quarter.
2002 third quarter net income per share was increased by $0.01
per share due to the Company's adoption of Statement of Financial
Accounting Standard 142, "Goodwill and Other Intangible Assets."
This change increased net income per share by $0.04 for the current
year-to-date period.
U.S. revenues before reimbursements were $128.8 million in the
third quarter of 2002 compared with $134.2 million in the 2001 third
quarter. Revenues from the insurance company market were $65.7 million
in the 2002 third quarter compared with $72.7 million in the 2001
quarter. These results reflect a continued softening in the Company's
U.S. insurance company referrals for high frequency, low severity
claims and lower catastrophic claim referrals in the current quarter.
Revenues from self-insured clients were $47.4 million in the 2002
third quarter compared with $48.8 million in the 2001 period. Class
action services revenues grew to $15.7 million during the 2002 third
quarter, compared with $12.7 million in the comparable 2001 period.
2002 third quarter international revenues before reimbursements
were $47.1 million, down slightly from $47.2 million for the same
period in 2001. The Company continues to experience declining claim
volumes in the United Kingdom, which have offset higher claim referrals
within the Company's other international regions in the current
year quarter. During the 2002 third quarter, the U.S. dollar weakened
significantly against the British Pound and the Euro, resulting
in a net exchange rate benefit in the quarter. Excluding the benefit
of exchange rate fluctuations, international revenues would have
been $45.7 million in the 2002 third quarter.
Mr. Grover L. Davis, chief executive officer of Crawford & Company,
stated, "Continued softening in U.S. insurance company referrals
for high- frequency, low-severity claims and lower catastrophic
claim referrals impacted U.S. revenues and resulted in an 18% decline
in cases received in the U.S. Conservative underwriting, increases
in policy deductibles and mild weather contributed to an industry-wide
decline in property and casualty claims frequency. On a more positive
note, we successfully reduced our cost of services, which declined
2% despite a $2.6 million increase in pension expense in the quarter.
Excluding pension expense, our cost of services declined approximately
4% during the 2002 third quarter. On a sequential basis, we reduced
our third quarter operating costs by nearly $3.4 million compared
to the 2002 second quarter, achieving our previously announced goal
of reducing our operating costs by $1.0 million per month."
Total revenues before reimbursements for the nine months ended
September 30, 2002 were $525.7 million compared with $547.4 million
in 2001. Operating earnings (before nonrecurring credit in the 2002
first quarter) through September 30, 2002 totaled $26.9 million
compared with $44.6 million in 2001. Net income for the period totaled
$18.7 million, or $0.38 per share, compared with $23.6 million,
or $0.49 per share, reported in the prior year.
Domestic revenues before reimbursements for the 2002 nine-month
period were $387.1 million compared with $404.8 million in 2001.
International revenues before reimbursements were $138.6 million
in 2002 compared with $142.5 million during 2001. Excluding the
adverse impact of exchange rate fluctuations due to the overall
strength of the U.S. dollar during the year, international revenues
would have totaled $140.1 million for the current year- to-date
period.
Mr. Davis concluded, "We are extremely encouraged by the sequential
improvement in our U.S. operating margin, which rose to 7.2% of
revenues in the 2002 third quarter from 4.5% in the 2002 second
quarter. This increase is a result of the benefits experienced from
the cost reductions made in the U.S. during the current quarter,
and occurred despite a nearly $3.0 million decline in revenues from
second quarter levels. However, our international operating margin
declined from 6.2% of revenues in the 2002 second quarter to 1.9%
in the third quarter. Third quarter 2002 Canadian revenues were
$1.1 million less than second quarter revenues due to a seasonal
decline in claim referrals. We also incurred approximately $450,000
in foreign currency exchange losses in our Latin American operations
during the 2002 third quarter related to revaluations of U.S. dollar
denominated debt that has subsequently been paid off. We expect
our international operating margin to return to the 6% range in
the fourth quarter, which should help us to achieve earnings per
share next quarter in the range of $0.10 - $0.12."
Crawford & Company's conference call on Wednesday, October 23,
2002 at 3:00 p.m. EDT, to discuss its quarterly earnings and other
developments, will be recorded and available for replay through
October 30, 2002. You may dial 1-800-428-6051 (973-709-2089 international)
to listen. The access code is 263978. Alternatively, please visit
our web site at www.crawfordandcompany.com for a live audio web
cast.
Based in Atlanta, Georgia, Crawford & Company is the world's largest
independent provider of claims management solutions to insurance
companies and self-insured entities, with a global network of more
than 700 offices in 67 countries. Major service lines include workers'
compensation claims administration and healthcare management services,
property and casualty claims management, class action services and
risk management information services. The Company's shares are traded
on the NYSE under the symbols CRDA and CRDB.
Except for historical information contained herein, the matters
discussed in this news release are forward-looking statements that
involve risks and uncertainties. The results achieved in the quarter
ended September 30, 2002 are not necessarily indicative of future
prospects for the Company. Actual results in future quarters may
differ materially. For a complete discussion regarding factors which
could affect the Company's financial performance, see the Company's
Form 10-K for the year ended December 31, 2001 filed with the Securities
and Exchange Commission, in particular the information under the
headings "Business", "Legal Proceedings" and "Management's Discussion
and Analysis of Financial Condition and Results of Operations."
The Company undertakes no obligation to publicly release any revisions
to any forward-looking statements contained herein to reflect events
or circumstances occurring after the date hereof or to reflect the
occurrence of unanticipated events. The Company's actual results
may differ materially from those projected in forward-looking statements
made by, or on behalf of, the Company.
Return to headlines
Announces Earnings Conference
Call
ATLANTA, October 16, 2002--Crawford & Company (NYSE:CRDA and CRDB),
the world's largest independent provider of diversified services
to insurance companies, self-insured corporations and governmental
entities, will hold its quarterly conference call, to discuss its
quarterly earnings and other developments, on Wednesday, October
23, 2002, at 3:00 p.m. Eastern Time.
This call is being webcast by CCBN and can be accessed at Crawford
& Company's web site at www.crawfordandcompany.com. The webcast
is also being distributed over CCBN's Investor Distribution Network
to both institutional and individual investors. Individual investors
can listen to the call through CCBN's individual investor center
at www.companyboardroom.com or by visiting any of the investor sites
in CCBN's Individual Investor Network. Institutional investors can
access the call via CCBN's password-protected event management site,
StreetEvents (www.streetevents.com).
Crawford & Company is the world's largest independent provider
of diversified services to insurance companies, self-insured corporations,
and governmental entities. Services provided by the Company include
claims management, loss adjustment, healthcare management, risk
management services, class action administration, and risk information
services.
Crawford is an Atlanta-based corporation with approximately 10,000
employees worldwide in more than 700 offices in 67 countries. The
Corporation's shares are publicly traded on the New York Stock Exchange
under the symbols CRDA and CRDB.
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