news
View printer-friendly version < Go back
Crawford Reports Record 2010 Fourth Quarter Revenues

2010 Annual Results Improve
Net Income Increases 67% in 2010 Fourth Quarter
Board Declares Quarterly Dividend

ATLANTA, Feb. 7, 2011 /PRNewswire via COMTEX/ --

Crawford & Company (www.crawfordandcompany.com) (NYSE: CRDA and CRDB), the world's largest independent provider of claims management solutions to insurance companies and self-insured entities, today announced its financial results for the year and fourth quarter ended December31,2010.

(Logo: http://photos.prnewswire.com/prnh/20110207/CL42828LOGO )

Consolidated Results

Fourth quarter 2010 consolidated revenues before reimbursements totaled a new quarterly record of $301.5 million, an increase of 26% over $238.4 million in the 2009 fourth quarter. Fourth quarter 2010 net income attributable to Crawford & Company was $14.8 million, increasing 67% over $8.9 million in the 2009 fourth quarter. Fourth quarter 2010 diluted earnings per share was $0.28 compared to diluted earnings per share of $0.17 in the prior-year quarter, an increase of 65%.

Full year consolidated revenues before reimbursements totaled more than $1.0 billion for 2010, increasing $60.5 million from 2009. Net income attributable to Crawford & Company in 2010 was $28.3 million, compared to a net loss in 2009 of $(115.7) million. Full year 2010 diluted earnings per share was $0.53, compared to a loss per share of $(2.23) in the prior year.

During the 2010 fourth quarter, the Company recorded an additional net $3.5 million goodwill impairment charge related in part to additional consideration paid for the purchase of Broadspire Management Services, Inc. This was in addition to the $7.3 million goodwill impairment charge recorded in the 2010 second quarter for related issues. Excluding the impairment charges, 2010 fourth quarter and full-year net income attributable to Crawford & Company would have been $17.8 million and $38.2 million, respectively, and diluted earnings per share would have been $0.33 and $0.72, respectively.

The 2009 net loss attributable to Crawford & Company includes a non-cash impairment charge of $140.9 million, primarily related to the write-down of goodwill in the Company's Broadspire segment. Excluding the non-cash impairment charge, 2009 net income attributable to Crawford & Company would have been $25.2million and diluted earnings per share would have been $0.48.

Diluted earnings (loss) per share and the related non-GAAP adjusted diluted earnings per share, including the required reconciliation for the impact of the goodwill impairment charges, is set out in the table below:



Fourth Quarter

Fourth Quarter


Full Year

Full Year


2010

2009


2010

2009

Reported diluted earnings (loss) per share

$

0.28

$

0.17


$

0.53

$

(2.23)

Add: Goodwill impairment charge

0.05

--


0.19

2.71

Adjusted diluted earnings per share on a non-GAAP basis

$

0.33

$

0.17


$

0.72

$

0.48








Mr. Jeffrey T. Bowman, chief executive officer of Crawford & Company, stated, "Overall, the strength of our results for the quarter and year reflect strong performance in our Legal Settlement Administration and International Operations segments. We also benefited from our ongoing efforts in cost control, which have reduced our selling, general and administrative expense by 3% year-over-year. Revenues and operating earnings in our Legal Settlement Administration segment increased sharply during the second half of the year due primarily to our engagement in the Gulf Coast Claims Facility (GCCF) special project. We continue to have a substantial backlog of awarded projects in this segment and expect the special project activity to continue into the second quarter of 2011."

2010 Segment Results For the Fourth Quarter and Full Year

International Operations

Fourth quarter 2010 revenues before reimbursements for the International Operations segment increased 11% to $114.8 million from $103.7 million for the same period in 2009. During the 2010 fourth quarter compared to the 2009 fourth quarter, the foreign exchange rate impact was insignificant. International Operations operating expenses for the 2010 fourth quarter increased by $8.3 million in U.S. dollars, a 9% increase compared to the 2009 period. Operating earnings increased to $13.2 million in the 2010 fourth quarter, up 26% from last year's fourth quarter operating earnings of $10.4 million, due primarily to weather-related claim surges in our Canadian and Asia-Pacific operating regions. The related operating margin was 12% in the 2010 fourth quarter, increasing from 10% in the 2009 fourth quarter.

Revenues before reimbursements from our International Operations segment totaled $430.7 million for 2010, a 10% increase from $391.7 million in 2009. During 2010 the U.S.dollar weakened against most major foreign currencies, resulting in a positive exchange rate impact to revenues of $24.9million on this segment's revenues from 2009 to 2010. Excluding the positive impact of exchange rate changes, International Operations revenues would have been $405.8million in 2010. International Operations operating earnings increased to $34.9 million in 2010, an increase of 3% from 2009 operating earnings of $33.8 million. The operating margin declined from 9% in 2009 to 8% in 2010.

U.S. Property & Casualty

U.S. Property & Casualty revenues before reimbursements were $45.2 million in the fourth quarter of 2010, a slight increase from $44.9 million in the 2009 fourth quarter, due primarily to higher catastrophe-related revenues. Revenues generated by the Company's catastrophe adjuster group were $5.2 million in the 2010 fourth quarter, increasing from $3.7 million in the 2009 period. U.S. Property & Casualty recorded an operating loss in the 2010 fourth quarter of $(0.5) million, or an operating margin of (1)%, compared to operating earnings of $1.6 million, or 4% of revenues in the 2009 fourth quarter. This loss was primarily the result of higher operating expenses during the 2010 fourth quarter.

U.S.Property& Casualty revenues before reimbursements decreased 8% to $190.0 millionin 2010 compared to $207.5 millionin 2009. Operating earnings decreased from $18.7 million in 2009 to $11.5 million in 2010, representing an operating margin of 6% in 2010 compared to 9% in 2009.

Broadspire

Revenues before reimbursements from the Broadspire segment were $60.7 million in the 2010 fourth quarter, a decline of 14% from $70.6 million in the 2009 quarter. Broadspire had an operating loss of $(6.9) million in the 2010 fourth quarter, or (11)% of revenues, compared to operating earnings of $2.1 million, or 3% of revenues, in the prior-year period. This decline was primarily due to lower workers' compensation claim referrals as a result of lower U.S. employment levels, the bankruptcy of a major client, the impact of a previously-announced 2009 nonrenewal of a major contract within the segment, and certain nonrecurring expenses during the 2010 fourth quarter.

Broadspire segment revenues before reimbursements decreased 15% to $245.5 million in 2010 compared to $288.7 million in 2009. Broadspire recorded an operating loss of $(11.7) million, or (5)% of segment revenues before reimbursements in 2010 compared to an operating loss of $(1.6) million, or (1)% of segment revenues before reimbursements in 2009.

Legal Settlement Administration

Legal Settlement Administration revenues before reimbursements were $80.8 million in the 2010 fourth quarter, a fourfold increase compared to $19.2 million in the 2009 quarter, primarily due to its engagement in the GCCF special project as well as strong bankruptcy administration and securities class action caseloads. Operating earnings were $27.8 million in the fourth quarter, or 34% of revenues, compared to $3.2 million, or 17% of revenues, in the prior-year period. The segment's awarded project backlog totaled a record of approximately $90.0 million at December31,2010, compared to approximately $55.0 million at December31,2009.

Legal Settlement Administration revenues before reimbursements for the year doubled in 2010 to $164.2 million, compared to $82.0 million in 2009. Legal Settlement Administration operating earnings were $47.7 million, increasing 263% from $13.1 million in 2009, with the related operating margin increasing from 16% in 2009 to 29% in 2010.

Balance Sheet and Cash Flow

Crawford & Company's consolidated cash and cash equivalents position as of December31,2010 totaled $93.5 million compared to $70.4 million at December 31, 2009, reflecting borrowings held at year end 2010 that were used to make a $20 million contribution to the frozen U.S. defined benefit pension plan in January 2011.

The Company generated $26.2 million of cash from operations during 2010, compared with $51.7 million during 2009. The $25.5 million decrease was due primarily to higher contributions to the Company's frozen U.S. defined benefit pension plan. Crawford made accelerated contributions to this pension plan totaling $30 million during the fourth quarter of 2010 and an additional $20 million in January 2011. The contributions were funded through an additional $50 million borrowing under the Company's existing credit facility. Excluding the accelerated contribution of $30 million during the 2010 fourth quarter, operating cash flow for the year on a non-GAAP basis would have been $56.2 million.

Crawford & Company Board Declares Quarterly Dividend

On February 1, 2011, at its regular quarterly meeting, the Board of Directors of Crawford & Company declared a quarterly dividend of $0.02 per share on the Class A and Class B Common Stock, payable on March 22, 2011, to shareholders of record as of the close of business on March 7, 2011.

Management's Comments

Mr. Jeffrey T. Bowman, chief executive officer of Crawford & Company, stated, "Over the past four years, management has pursued our strategic initiatives by working to improve operating performance, reducing our pension obligations and reinstating a dividend. Our operating results for 2010 reflect the benefit of a diversified business portfolio. While we have demonstrated strength in our Legal Settlement Administration and International Operations, we continue to face challenges in our North American property & casualty business. In our Broadspire workers' compensation business, operating performance has been depressed by the general economic conditions, and specifically unemployment levels, in the United States."

He continued, "Importantly for our shareholders, the Company has delivered on its pledge four years ago to restore a dividend on our common stock as declared by our Board of Directors last week. The decision to restore the dividend was made possible both by improved operating results for the year and by progress made in addressing the Company's frozen U.S. defined benefit pension plan obligations during the fourth quarter of 2010 and in January 2011."

Regarding the Company's frozen pension plan, Mr. Bowman stated, "The $50 million in contributions made over that period to the funding of this frozen pension plan will benefit the Company in the future through increased financial flexibility and liquidity as the required pension contributions in the United States are significantly reduced over the next two years."

Mr. Bowman concluded, "Crawford enters 2011 in a strengthened financial position, but with a number of operational challenges ahead. The hard work in 2010 on cost control and on our balance sheet positions us to make progress in addressing these operating challenges over the next 12 months. We regard the improvement of operating performance in our Broadspire and U.S. Property & Casualty businesses as our top priority for the coming year."

2011 Guidance

Crawford & Company is providing initial guidance for 2011 as follows:

  • Consolidated revenues before reimbursements between $990 million and $1.02 billion.
  • Consolidated operating earnings between $58.0 million and $63.0 million.
  • Consolidated cash provided by operating activities between $30.0 and $35.0 million.
  • After reflecting stock-based compensation expense, net corporate interest expense, customer-relationship intangible asset amortization expense, and income taxes, net income attributable to Crawford & Company between $25.0 million and $28.0 million, or $0.46 to $0.52 diluted earnings per share.

Crawford & Company's management will host a conference call with investors on Monday, February7,2011 at 3:00 p.m. EST to discuss earnings and other developments. The call will be recorded and available for replay through February 14, 2011. You may dial 1-800-642-1687 (706-645-9291 international) to listen to the replay. The access code is 38399880. Alternatively, please visit our web site at www.crawfordandcompany.com for a live audio web cast and related financial presentation.

Further information regarding the Company's financial position, operating results, and cash flows for the quarter and year ended December31,2010 is shown on the attached unaudited condensed consolidated financial statements.

In the normal course of business, our operating segments incur certain out-of-pocket expenses that are thereafter reimbursed by our clients. Under GAAP, these out-of-pocket expenses and associated reimbursements are reported as revenues and expenses, respectively, in our consolidated results of operations. In the foregoing discussion and analysis of segment results of operations, we do not include a gross up of segment revenues and expenses for these pass-through reimbursed expenses. The amounts of reimbursed expenses and related revenues offset each other in our results of operations with no impact to our net income (loss) or operating earnings (loss). A reconciliation of revenues before reimbursements to consolidated revenues determined in accordance with GAAP is self-evident from the face of the accompanying unaudited condensed consolidated statements of operations.

Operating earnings is the primary financial performance measure used by our senior management and chief operating decision maker ("CODM") to evaluate the financial performance of our operating segments and make resource allocation decisions. Unlike net income, our operating earnings measure is not a standard performance measure found in GAAP. However, since it is our segment measure of profitability presented in conformity with the Financial Accounting Standards Board's ("FASB") Accounting Standards Codification ("ASC") Topic 280 "Segment Reporting," it is not considered a non-GAAP financial measure requiring reconciliation pursuant to Securities and Exchange Commission ("SEC") guidance contained in Regulation G and Item 10(e) of Regulation S-K. We believe this measure is useful to others in that it allows them to evaluate segment operating performance using the same criteria our management and CODM use. Operating earnings represent segment earnings excluding income tax expense, net corporate interest expense, amortization of customer-relationship intangible assets, stock option expense, certain other gains and expenses, and certain unallocated corporate and shared costs. Net income or loss attributable to noncontrolling interests has also been removed from operating earnings.

Income tax expense, net corporate interest expense, amortization of customer-relationship intangible assets, and stock option expense are recurring components of our net income or loss, but they are not considered part of our segment operating earnings because they are managed on a corporate-wide basis. Income tax expense is based on statutory rates in effect in each of the jurisdictions where we provide services, and vary throughout the world. Net corporate interest expense results from capital structure decisions made by management and affecting the Company as a whole. Amortization expense relates to non-cash amortization expense of customer-relationship intangible assets resulting from business combinations. Stock option expense represents the non-cash costs generally related to stock options and employee stock purchase plan expenses which are not allocated to our operating segments. None of these costs relate directly to the performance of our services or operating activities and, therefore, are excluded from segment operating earnings in order to better assess the results of each segment's operating activities on a consistent basis.

Certain other gains and expenses may arise from events (expenses related to restructurings, losses on subleases, and goodwill impairment charges) that are not allocated to any particular segment since they historically have not regularly impacted our performance and are not expected to impact our future performance on a regular basis.

Following is a reconciliation of segment operating earnings (loss) to net income (loss) attributable to Crawford & Company on a GAAP basis and the related margins as a percentage of revenues before reimbursements for all periods presented (in thousands, except percentages):



Quarter ended


Year ended


December
31, 2010

%
Margin

December
31, 2009

%
Margin


December
31, 2010

%
Margin

December
31, 2009

%
Margin

Operating Earnings (Loss):










U.S. property & casualty

$

(452)


(1)%


$

1,597


4%



$

11,512


6%


$

18,727


9%


International operations

13,210


12%


10,447


10%



34,894


8%


33,786


9%


Broadspire

(6,948)


(11)%


2,129


3%



(11,712)


(5)%


(1,602)


(1)%


Legal settlement administration

27,844


34%


3,219


17%



47,661


29%


13,130


16%


Unallocated corporate and shared costs

(4,320)


(1)%


(2,566)


(1)%



(6,671)


(1)%


(10,714)


(1)%


Deduct:










Restructuring and other costs

--


--%


(2,244)


(1)%



(4,650)


(0)%


(4,059)


(0)%


Goodwill impairment

(3,485)


(1)%


--


--%



(10,788)


(1)%


(140,945)


(15)%


Stock option expense

(175)


(0)%


(218)


(0)%



(761)


(0)%


(914)


(0)%


Amortization expense

(1,499)


(0)%


(1,500)


(1)%



(5,995)


(1)%


(5,994)


(1)%


Net corporate interest expense

(3,270)


(1)%


(3,915)


(2)%



(15,002)


(1)%


(14,166)


(1)%


Income taxes

(5,774)


(2)%


1,958


1%



(9,712)


(1)%


(2,618)


(0)%


Net income attributable to non-controlling interests

(320)


0%


(38)


0%



(448)


0%


(314)


0%


Net income (loss) attributable to Crawford & Company

$

14,811


5%


$

8,869


4%



$

28,328


3%


$

(115,683)


(12)%













Based in Atlanta, Georgia, Crawford & Company (www.crawfordandcompany.com) is the world's largest independent provider of claims management solutions to the risk management and insurance industry as well as self-insured entities, with a global network of more than 700 locations in more than 100 countries. The Crawford System of Claims Solutions(SM) offers comprehensive, integrated claims services, business process outsourcing and consulting services for major product lines including property and casualty claims management; workers' compensation claims and medical management, and legal settlement administration. The Company's shares are traded on the NYSE under the symbols CRDA and CRDB.


This press release contains forward-looking statements, including statements about the financial condition, results of operations and earnings outlook of Crawford & Company. Statements, both qualitative and quantitative, that are not historical facts may be "forward-looking" statements as defined in the Private Securities Litigation Reform Act of 1995. Forward-looking statements involve a number of risks and uncertainties that could cause actual results to differ materially from historical experience or Crawford & Company's present expectations. Accordingly, no one should place undue reliance on forward-looking statements, which speak only as of the date on which they are made. Crawford & Company does not undertake to update forward-looking statements to reflect the impact of circumstances or events that may arise or not arise after the date the forward-looking statements are made. For further information regarding Crawford & Company, including factors that could cause our actual financial condition, results or earnings to differ from those described in any forward-looking statements, please read Crawford & Company's reports filed with the SEC and available at www.sec.gov or in the Investor Relations section of Crawford & Company's website at www.crawfordandcompany.com.



CRAWFORD & COMPANY

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

Unaudited

(In Thousands, Except Earnings Per Share Amounts and Percentages)














Three Months Ended December 31

2010


2009

% Change








Revenues:












Revenues Before Reimbursements

$301,477


$238,369

26%


Reimbursements

23,175


19,050

22%


Total Revenues

324,652


257,419

26%








Costs and Expenses:












Costs of Services Before Reimbursements

220,721


175,540

26%


Reimbursements

23,175


19,050

22%


Total Costs of Services

243,896


194,590

25%








Selling, General, and Administrative

53,096


49,721

7%


Corporate Interest Expense, Net

3,270


3,915

-16%


Goodwill Impairment Charge

3,485


-

nm


Restructuring and Other Costs

-


2,244

nm


Total Costs and Expenses

303,747


250,470

21%














Income Before Income Taxes

20,905


6,949

201%


Provision (Benefit) for Income Taxes

5,774


(1,958)

395%








Net Income

15,131


8,907

70%


Less: Net Income Attributable to Noncontrolling Interests

320


38

742%


Net Income Attributable to Crawford & Company

$14,811


$8,869

67%


























Earnings Per Share - Basic

$0.28


$0.17

65%


Earnings Per Share - Diluted

$0.28


$0.17

65%








Weighted-average Shares Used in Calculating:






Basic Earnings Per Share

52,854


52,053



Diluted Earnings Per Share

53,801


52,902














nm = not meaningful


CRAWFORD & COMPANY

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

Unaudited

(In Thousands, Except Earnings Per Share Amounts and Percentages)














Year Ended December 31

2010


2009

% Change








Revenues:












Revenues Before Reimbursements

$1,030,417


$969,868

6%


Reimbursements

80,384


78,334

3%


Total Revenues

1,110,801


1,048,202

6%








Costs and Expenses:












Costs of Services Before Reimbursements

758,863


713,991

6%


Reimbursements

80,384


78,334

3%


Total Costs of Services

839,247


792,325

6%








Selling, General, and Administrative

202,626


209,458

-3%


Corporate Interest Expense, Net

15,002


14,166

6%


Goodwill Impairment Charge

10,788


140,945

-92%


Restructuring and Other Costs

4,650


4,059

15%


Total Costs and Expenses

1,072,313


1,160,953

-8%














Income (Loss) Before Income Taxes

38,488


(112,751)

134%


Provision for Income Taxes

9,712


2,618

271%








Net Income (Loss)

28,776


(115,369)

125%


Less: Net Income Attributable to Noncontrolling Interests

448


314

43%


Net Income (Loss) Attributable to Crawford & Company

$28,328


($115,683)

124%




















Earnings (Loss) Per Share - Basic

$0.54


($2.23)

124%


Earnings (Loss) Per Share - Diluted

$0.53


($2.23)

124%








Weighted-average Shares Used in Calculating:






Basic Earnings (Loss) Per Share

52,664


51,830



Diluted Earnings (Loss) Per Share

53,234


51,830


CRAWFORD & COMPANY

SUMMARY RESULTS BY OPERATING SEGMENT

Three Months Ended December 31

Unaudited

(In Thousands, Except Percentages)


















U.S. Property & Casualty

%

International

%

Broadspire

%

Legal Settlement Administration

%


Total


2010

2009

Change

2010

2009

Change

2010

2009

Change

2010

2009

Change


2010

2009

































Revenues Before Reimbursements

$45,172

$44,906

0.6%

$114,818

$103,717

10.7%

$60,670

$70,563

-14.0%

$80,817

$19,183

321.3%


$301,477

$238,369

















Compensation & Benefits

28,982

29,106

-0.4%

73,417

69,294

6.0%

37,719

38,722

-2.6%

20,149

8,597

134.4%


160,267

145,719

% of Revenues Before Reimbursements

64.2%

64.8%


63.9%

66.8%


62.2%

54.9%


24.9%

44.8%



53.2%

61.1%

















Expenses Other than Reimbursements,
















Compensation & Benefits

16,642

14,203

17.2%

28,191

23,976

17.6%

29,899

29,712

0.6%

32,824

7,367

345.6%


107,556

75,258

% of Revenues Before Reimbursements

36.8%

31.6%


24.6%

23.1%


49.3%

42.1%


40.6%

38.4%



35.7%

31.6%

















Total Operating Expenses

45,624

43,309

5.3%

101,608

93,270

8.9%

67,618

68,434

-1.2%

52,973

15,964

231.8%


147,232

220,977

















Operating (Loss) Earnings (1)

($452)

$1,597

-128.3%

$13,210

$10,447

26.4%

($6,948)

$2,129

-426.4%

$27,844

$3,219

765.0%


$33,654

$17,392

% of Revenues Before Reimbursements

-1.0%

3.6%


11.5%

10.1%


-11.5%

3.0%


34.5%

16.8%



11.2%

7.3%

Year Ended December 31

Unaudited

(In Thousands, Except Percentages)


















U.S. Property & Casualty

%

International

%

Broadspire

%

Legal Settlement
Administration

%


Total


2010

2009

Change

2010

2009

Change

2010

2009

Change

2010

2009

Change


2010

2009

































Revenues Before Reimbursements

$190,029

$207,450

-8.4%

$430,709

$391,749

9.9%

$245,496

$288,650

-15.0%

$164,183

$82,019

100.2%


$1,030,417

$969,868

















Compensation & Benefits

117,269

126,483

-7.3%

287,045

267,514

7.3%

145,685

161,786

-10.0%

54,596

35,859

52.3%


604,595

591,642

% of Revenues Before Reimbursements

61.7%

61.0%


66.6%

68.3%


59.3%

56.0%


33.3%

43.7%



58.7%

61.0%

















Expenses Other than Reimbursements,
















Compensation & Benefits

61,248

62,240

-1.6%

108,770

90,449

20.3%

111,523

128,466

-13.2%

61,926

33,030

87.5%


343,467

314,185

% of Revenues Before Reimbursements

32.2%

30.0%


25.3%

23.1%


45.5%

44.6%


37.7%

40.3%



33.2%

32.3%

















Total Operating Expenses

178,517

188,723

-5.4%

395,815

357,963

10.6%

257,208

290,252

-11.4%

116,522

68,889

69.1%


574,332

905,827

















Operating Earnings (Loss) (1)

$11,512

$18,727

-38.5%

$34,894

$33,786

3.3%

($11,712)

($1,602)

-631.1%

$47,661

$13,130

263.0%


$82,355

$64,041

% of Revenues Before Reimbursements

6.1%

9.0%


8.1%

8.6%


-4.8%

-0.6%


29.0%

16.0%



8.0%

6.6%

































(1) A non-GAAP financial measurement which represents net income attributable to Crawford & Company excluding income tax expense, net corporate interest expense, amortization of customer-relationship intangible assets, stock option expense, certain other gains and expenses and certain unallocated overhead corporate and shared costs. See page 6 for a reconciliation of Operating Earnings to Net Income (Loss) computed in accordance with GAAP.


CRAWFORD & COMPANY

CONDENSED CONSOLIDATED BALANCE SHEETS

As of December 31, 2010 and December 31, 2009

(In Thousands, Except Par Values)





Unaudited


*





December 31


December 31


Assets



2010


2009










Current Assets:







Cash and Cash Equivalents

$ 93,540


$ 70,354




Accounts Receivable, Net

142,521


139,215




Unbilled Revenues, at Estimated Billable Amounts

122,933


93,796




Prepaid Expenses and Other Current Assets

20,411


22,350










Total Current Assets

379,405


325,715











Property and Equipment

149,444


144,254




Less Accumulated Depreciation

(106,073)


(102,108)



Net Property and Equipment

43,371


42,146










Other Assets:







Goodwill

125,764


123,169




Intangible Assets Arising from Business Acquisitions, Net

97,881


104,409




Capitalized Software Costs, Net

55,204


50,463




Deferred Income Tax Assets

91,930


69,504




Other Noncurrent Assets

27,119


27,499



Total Other Assets

397,898


375,044










Total Assets

$ 820,674


$ 742,905
















Liabilities and Shareholders' Investment













Current Liabilities:







Short-Term Borrowings

$ -


$ 32




Accounts Payable

53,517


35,449




Accrued Compensation and Related Costs

90,590


70,871




Self-Insured Risks

15,094


18,475




Income Taxes Currently Payable

2,558


-




Deferred Income Taxes

17,146


-




Deferred Rent

15,750


15,777




Other Accrued Liabilities

31,097


31,541




Deferred Revenues

48,198


53,664




Mandatory Company Contributions due to Pension Plan

20,000


25,000




Current Installments of Long-Term Debt and Capital Leases

2,891


8,189










Total Current Liabilities

296,841


258,998










Noncurrent Liabilities:







Long-Term Debt and Capital Leases, Less Current Installments

220,437


173,061




Deferred Revenues

30,048


33,524




Self-Insured Risks

18,274


14,824




Accrued Pension Liabilities, Less Current Mandatory Contributions

145,030


187,507




Other Noncurrent Liabilities

14,813


13,705



Total Noncurrent Liabilities

428,602


422,621










Shareholders' Investment:







Class A Common Stock, $1.00 Par Value

28,002


27,355




Class B Common Stock, $1.00 Par Value

24,697


24,697




Additional Paid-in Capital

32,348


29,570




Retained Earnings

168,791


140,463




Accumulated Other Comprehensive Loss

(164,322)


(165,403)



Total Crawford & Company Shareholders' Investment

89,516


56,682










Noncontrolling Interests

5,715


4,604










Total Shareholders' Investment

95,231


61,286










Total Liabilities and Shareholders' Investment

$ 820,674


$ 742,905






* derived from the audited Consolidated Balance Sheet


CRAWFORD & COMPANY

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

Years Ended December 31, 2010 and 2009

Unaudited

(In Thousands)










2010


2009








Cash Flows From Operating Activities:






Net Income (Loss)

$28,776


($115,369)



Reconciliation of Net Income (Loss) to Net Cash Provided By Operating Activities:






Depreciation and Amortization

30,599


31,010



Goodwill Impairment Charge

10,788


140,945



Deferred Income Taxes

2,710


463



Stock-Based Compensation

3,651


5,510



Loss on Disposals of Property and Equipment, Net

449


117



Changes in Operating Assets and Liabilities, Net






of Effects of Acquisitions and Dispositions:






Accounts Receivable, Net

(372)


27,193



Unbilled Revenues, Net

(28,384)


12,481



Accrued or Prepaid Income Taxes

963


(7,782)



Accounts Payable and Accrued Liabilities

35,861


(16,749)



Deferred Revenues

(8,830)


(15,827)



Accrued Retirement Costs

(47,844)


(7,844)



Prepaid Expenses and Other Operating Activities

(2,200)


(2,484)


Net Cash Provided By Operating Activities

26,167


51,664














Cash Flows From Investing Activities:






Acquisitions of Property and Equipment

(13,473)


(9,886)



Proceeds from Disposals of Property and Equipment

51


135



Capitalization of Computer Software Costs

(14,306)


(14,823)



Additional Purchase Price Consideration for Acquisition of BMSI

(14,803)


-



Payments for Business Acquisitions, Net of Cash Acquired

-


(6,260)



Other Investing Activities

-


(335)


Net Cash Used In Investing Activities

(42,531)


(31,169)














Cash Flows From Financing Activities:






Shares Used to Settle Withholding Taxes Under Stock-Based Compensation Plans

(703)


(1,903)



Proceeds from Employee Stock-Based Compensation Plans

477


453



Increase in Short-Term Borrowings

33,965


39,336



Payments on Short-Term Borrowings

(33,960)


(57,622)



Proceeds from Long-Term Borrowings

50,575


-



Payments on Long-Term Debt and Capital Lease Obligations

(8,760)


(2,400)



Capitalized Loan Costs

(1,856)


(4,145)



Dividends Paid to Noncontrolling Interests

(218)


(274)


Net Cash Provided by (Used In) Financing Activities

39,520


(26,555)








Effect of Exchange Rate Changes on Cash and Cash Equivalents

30


3,290


Increase (Decrease) in Cash and Cash Equivalents

23,186


(2,770)


Cash and Cash Equivalents at Beginning of Year

70,354


73,124


Cash and Cash Equivalents at End of Year

$93,540


$70,354

SOURCE Crawford & Company