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Crawford Reports Substantial Improvement in 2011 Second Quarter Results

Revenues Increase 22% and Net Income Up Sharply
Company Raises Guidance Again for Balance of 2011

ATLANTA, Aug. 8, 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 second quarter ended June 30, 2011.

Consolidated Results

Second quarter 2011 consolidated revenues before reimbursements totaled $291.7 million, up 22% over $238.2 million in the 2010 second quarter. Second quarter 2011 net income attributable to Crawford & Company was $13.5 million, compared with a net loss of $2.5 million recorded in the 2010 second quarter. Second quarter 2011 diluted earnings per share were $0.25 compared with the loss per share of $(0.05) reported in the prior-year quarter.



Quarter Ended

June 30,

Quarter Ended

June 30,


2011

2010

Reported income (loss) per share

$

0.25

$

(0.05)

Add:



Goodwill impairment charge

--

0.13

Restructuring and other costs

--

0.02

Adjusted diluted earnings per share on a non-GAAP basis

$

0.25

$

0.10


During the 2010 second quarter, the Company recorded a goodwill impairment charge of $7.3 million, or ($0.13) per share. Also during the 2010 second quarter, the Company incurred severance costs of $1.2 million after related income taxes, or ($0.02) per share. Earnings per share, and the related non-GAAP adjusted diluted earnings per share, including a reconciliation for the impact of the special items in the 2010 period, are set out in the table above.

The Company's consolidated cash and cash equivalents position as of June 30, 2011 totaled $37.2 million, compared with $38.2 million at June 30, 2010 and $93.5 million at December 31, 2010. Crawford used $33.2 million of cash in operations during the 2011 year-to-date period, compared with $29.6 million during the comparable 2010 period. The $3.6 million increase in cash used in operations was due to increases in unbilled revenues and accounts receivable, and increased contributions to the Company's frozen U.S. defined benefit pension plan, which were partially offset by higher net income.

Results by Segment

Americas

Americas revenues before reimbursements were $95.7 million in the second quarter of 2011, increasing 16% from $82.3 million in the 2010 second quarter. During the 2011 second quarter compared with the 2010 second quarter, the U.S. dollar weakened against foreign currencies in the segment, resulting in a positive exchange rate impact to revenues of $2.9 million. Excluding the positive impact of exchange rate changes, Americas revenues would have been $92.9 million in the 2011 second quarter. Revenues generated by the Company's catastrophe adjuster group in the U.S. were $10.0 million in the 2011 second quarter, increasing from $3.6 million in the 2010 period. Americas operating expenses for the 2011 second quarter increased by $8.5 million in U.S. dollars, an 11% increase, and increased by 8% on a constant dollar basis, compared with the comparable 2010 period. Operating earnings in the 2011 second quarter in the segment increased to $10.2 million, or an operating margin of 11%, compared with operating earnings of $5.3 million, or 6% of revenues in the 2010 second quarter.

EMEA/AP

Second quarter 2011 revenues before reimbursements for the EMEA/AP segment increased 24% to $87.3 million from $70.4 million for the same period in 2010. During the 2011 second quarter compared with the 2010 second quarter, the U.S. dollar weakened against most major foreign currencies, resulting in a positive exchange rate impact to revenues of $5.8 million. Excluding the positive impact of exchange rate changes, EMEA/AP revenues would have been $81.5 million in the 2011 second quarter. EMEA/AP operating expenses for the 2011 second quarter increased by $14.5 million in U.S. dollars, a 22% increase, and increased by 14% on a constant dollar basis, compared with the comparable 2010 period. Operating earnings increased to $7.6 million in the 2011 second quarter, up 45% from 2010 second quarter operating earnings of $5.3 million. The related operating margin was 9% for the second quarter of 2011 and 7% in the comparable 2010 period.

Broadspire

Revenues before reimbursements from the Broadspire segment were $57.9 million in the 2011 second quarter, down 5% from $61.2 million in the 2010 second quarter. Broadspire had an operating loss of $3.1 million in the 2011 second quarter, or a negative operating margin of 5%, compared with an operating loss of $1.8 million, or a negative operating margin of 3%, in the prior year period. These declines were primarily due to lower revenues from existing clients due to a lengthening in the duration of certain workers' compensation claims and a shift in mix to lower-margin claims, partially as a result of a special project for one of our clients.

Legal Settlement Administration

Legal Settlement Administration revenues before reimbursements were $50.8 million in the 2011 second quarter, compared with $24.3 million in the 2010 second quarter, primarily the result of revenues from the special project that began in the summer of 2010. Operating earnings totaled $14.8 million in the 2011 second quarter, or 29% of revenues, compared with $5.6 million, or 23% of revenues, in the prior-year period. The segment's awarded project backlog totaled approximately $75.2 million at June 30, 2011 as compared with $56.5 million at June 30, 2010.

Management's Comments

Mr. Jeffrey T. Bowman, chief executive officer of Crawford & Company, stated, "We are pleased with the improvement in our second quarter 2011 operating results which reflect double digit revenue growth increases in the Americas and EMEA/AP, primarily as a result of a surge in weather-related claims activity, and the continued strong performance in our Legal Settlement Administration segment.

"The Americas segment rebounded nicely from a slow start in the first quarter driven by weather-related claims increases in the U.S. and Canada. In the U.S., our catastrophe adjuster revenues exceeded $10 million in a quarter for the first time since the 2008 fourth quarter. The strong contribution margins from this revenue surge helped drive the segment's operating margin to 11% for the 2011 second quarter.

"Our EMEA/AP segment was also a solid contributor, with revenues increasing 24% over the 2010 second quarter and operating earnings up 45% as compared to the 2010 second quarter. This part of our business continues to be positively impacted by a substantial increase in weather-related claims activity in our key United Kingdom and Australian markets.

"In our Legal Settlement Administration segment, we continue to see strong performance due to our engagement in the Gulf Coast Claims Facility (GCCF) special project. We have a strong backlog of awarded projects in this segment and expect the special project activity to continue through 2011, although at a reduced pace compared to current levels. We are excited about the opportunities we see emerging in this and related markets.

"We continue to see persistent high levels of unemployment in the U.S., which has put pressure on workplace-related claims volumes affecting our Broadspire segment. In addition, we are seeing the duration of certain workers' compensation claims lengthening, and we are also experiencing changes in the mix of claims we are handling, with a higher percentage of less complex low-value claims. These factors are combining to put pressure on the Broadspire business. We are actively addressing these issues and focusing on business development opportunities in the marketplace. We remain confident that we can improve the financial profile of this operation over the remainder of 2011."

Mr. Bowman concluded, "Our overall results for the 2011 second quarter continued to improve on our expectations. We are again revising our guidance upward to reflect the strong second quarter results and our increased visibility into the remainder of the year. The Company's revised guidance includes a one-time after tax credit of $5.8 million due to a recovery in an arbitration from Platinum Equity Holdings related to the acquisition of Broadspire. We are pleased all arbitration matters related to that acquisition have now concluded, and we will report this credit in our third quarter results. As we experienced in the first half of the year, however, we expect industry conditions to be challenging, particularly with employment levels and market conditions in our Broadspire business. We will continue to focus significant attention on this area with the goal to drive market share expansion and operating efficiencies."

2011 Guidance

Crawford & Company revises and increases aspects of its previously issued guidance for 2011 as follows:

  • Consolidated revenues before reimbursements between $1.07 billion and $1.10 billion.
  • Consolidated operating earnings between $75.0 million and $83.0 million.
  • Consolidated cash provided by operating activities between $30.0 million and $35.0 million.
  • After reflecting stock-based compensation expense, net corporate interest expense, customer-relationship intangible asset amortization expense, special credits, and income taxes, net income attributable to shareholders of Crawford & Company on a GAAP basis between $41.0 million and $46.5 million, or $0.75 to $0.85 diluted earnings per share.
  • Before reflecting the special credit of $5.8 million net of tax, or $0.11 per share, related to an arbitration award, net income attributable to shareholders of Crawford & Company on a non-GAAP basis between $35.5 million and $41.0 million, or $0.65 to $0.75 diluted earnings per share.

Crawford & Company's management will host a conference call with investors on Monday, August 8, 2011 at 3:00 p.m. EDT to discuss earnings and other developments. The call will be recorded and available for replay through August 15, 2011. You may dial 1-855-859-2056 (404-537-3406 international) to listen to the replay. The access code is 86077611. 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-to-date period ended June 30, 2011 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 (such as 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-to-date period ended


June 30,

2011

%

Margin

June 30,

2010

%

Margin


June 30,

2011

%

Margin

June 30,

2010

%

Margin

Operating Earnings (Loss):










Americas

$

10,195

11%

$

5,251

6%


$

13,309

7%

$

12,100

7%

EMEA/AP

7,627

9%

5,263

7%


14,779

9%

10,076

7%

Broadspire

(3,099)

(5)%

(1,772)

(3)%


(6,259)

(5)%

(4,105)

(3)%

Legal Settlement Administration

14,758

29%

5,566

23%


31,756

29%

8,849

20%

Unallocated corporate and shared costs

(4,043)

(1)%

(1,306)

(1)%


(4,393)

(1)%

(1,461)

--%

Deduct:










Restructuring and other costs

--

--%

(1,987)

(1)%


--

--%

(4,650)

(1)%

Goodwill impairment

--

--%

(7,303)

(3)%


--

--%

(7,303)

(2)%

Stock option expense

(142)

--%

(187)

--%


(297)

--%

(391)

--%

Amortization expense

(1,519)

(1)%

(1,499)

(1)%


(3,018)

(1)%

(2,999)

(1)%

Net corporate interest expense

(4,118)

(1)%

(3,672)

(2)%


(8,254)

(1)%

(7,809)

(2)%

Provision for income taxes

(6,005)

(2)%

(865)

--%


(12,042)

(2)%

(1,758)

--%

Net (income) loss attributable to non-controlling interests

(185)

--%

(16)

--%


35

--%

(22)

--%

Net income (loss) attributable to Crawford & Company

$

13,469

5%

$

(2,527)

(1)%


$

25,616

4%

$

527

--%












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 an expansive global network serving clients in more than 70 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.

Other than voting rights, the Company's two classes of stock have essentially identical rights, except that the Board of Directors may pay greater or equal (but not lesser) cash dividends on the Class A Common Stock than on the Class B Common Stock. In addition, with respect to mergers or similar transactions, holders of Class A Common Stock must receive the same type and amount of consideration as holders of Class B Common Stock, unless approved by the holders of 75% of the Class A Common Stock, voting as a class.

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 June 30,

2011


2010

% Change








Revenues:












Revenues Before Reimbursements

$ 291,713


$ 238,151

22%


Reimbursements

22,369


17,835

25%


Total Revenues

314,082


255,986

23%








Costs and Expenses:












Costs of Services Provided, Before Reimbursements

210,773


176,424

19%


Reimbursements

22,369


17,835

25%


Total Costs of Services

233,142


194,259

20%








Selling, General, and Administrative Expenses

57,163


50,411

13%


Corporate Interest Expense, Net

4,118


3,672

12%


Restructuring and Other Costs

-


1,987

nm


Goodwill Impairment Charge

-


7,303

nm


Total Costs and Expenses

294,423


257,632

14%














Income (Loss) before Income Taxes

19,659


(1,646)

1,294%


Provision for Income Taxes

6,005


865

594%








Net Income (Loss)

13,654


(2,511)

644%


Less: Net Income Attributable to Noncontrolling Interests

185


16

1,056%


Net Income (Loss) Attributable to Shareholders of Crawford & Company

$ 13,469


$ (2,527)

633%








Earnings (Loss) Per Share - Basic

$ 0.25


$ (0.05)

600%


Earnings (Loss) Per Share - Diluted

$ 0.25


$ (0.05)

600%








Weighted-Average Shares Used to Compute:






Basic Earnings (Loss) Per Share

53,485


52,619



Diluted Earnings (Loss) Per Share

53,940


52,619









Cash Dividends Per Share






Class A and Class B Common Stock

$ 0.02


$ -















nm = not meaningful





CRAWFORD & COMPANY

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

Unaudited

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














Six Months Ended June 30,

2011


2010

% Change








Revenues:












Revenues Before Reimbursements

$ 576,751


$ 474,417

22%


Reimbursements

41,439


33,622

23%


Total Revenues

618,190


508,039

22%








Costs and Expenses:












Costs of Services Provided, Before Reimbursements

417,715


352,970

18%


Reimbursements

41,439


33,622

23%


Total Costs of Services

459,154


386,592

19%








Selling, General, and Administrative Expenses

113,159


99,378

14%


Corporate Interest Expense, Net

8,254


7,809

6%


Restructuring and Other Costs

-


4,650

nm


Goodwill Impairment Charge

-


7,303

nm


Total Costs and Expenses

580,567


505,732

15%














Income before Income Taxes

37,623


2,307

1,531%


Provision for Income Taxes

12,042


1,758

585%








Net Income

25,581


549

4,560%


Less: Net (Loss) Income Attributable to Noncontrolling Interests

(35)


22

(259%)


Net Income Attributable to Shareholders of Crawford & Company

$ 25,616


$ 527

4,761%








Earnings Per Share - Basic

$ 0.48


$ 0.01

4,700%


Earnings Per Share - Diluted

$ 0.48


$ 0.01

4,700%








Weighted-Average Shares Used to Compute:






Basic Earnings Per Share

53,284


52,504



Diluted Earnings Per Share

53,764


52,949









Cash Dividends Per Share






Class A and Class B Common Stock

$ 0.04


$ -















nm = not meaningful





CRAWFORD & COMPANY

SUMMARY RESULTS BY OPERATING SEGMENT

Three Months Ended June 30,

Unaudited

(In Thousands, Except Percentages)















Americas

%

EMEA/AP

%

Broadspire

%

Legal Settlement Administration

%


2011

2010

Change

2011

2010

Change

2011

2010

Change

2011

2010

Change



























Revenues Before Reimbursements

$ 95,732

$ 82,299

16%

$ 87,271

$ 70,406

24%

$ 57,910

$ 61,180

(5)%

$ 50,800

$ 24,266

109%














Compensation & Benefits

57,844

52,640

10%

57,491

47,976

20%

34,396

35,396

(3)%

19,017

10,740

77%

% of Revenues Before Reimbursements

60%

64%


66%

68%


59%

58%


37%

44%















Expenses Other than Reimbursements,













Compensation & Benefits

27,693

24,408

13%

22,153

17,167

29%

26,613

27,556

(3)%

17,025

7,960

114%

% of Revenues Before Reimbursements

29%

30%


25%

25%


46%

45%


34%

33%















Total Operating Expenses

85,537

77,048

11%

79,644

65,143

22%

61,009

62,952

(3)%

36,042

18,700

93%














Operating Earnings (Loss) (1)

$ 10,195

$ 5,251

94%

$ 7,627

$ 5,263

45%

$ (3,099)

$ (1,772)

(75)%

$ 14,758

$ 5,566

165%

% of Revenues Before Reimbursements

11%

6%


9%

7%


(5)%

(3)%


29%

23%


Six Months Ended June 30,

Unaudited

(In Thousands, Except Percentages)















Americas

%

EMEA/AP

%

Broadspire

%

Legal Settlement Administration

%


2011

2010

Change

2011

2010

Change

2011

2010

Change

2011

2010

Change



























Revenues Before Reimbursements

$ 181,049

$ 167,168

8%

$ 167,046

$ 139,182

20%

$ 117,706

$ 123,143

(4)%

$ 110,950

$ 44,924

147%














Compensation & Benefits

113,850

106,609

7%

110,108

96,027

15%

69,110

72,575

(5)%

38,661

20,816

86%

% of Revenues Before Reimbursements

63%

64%


66%

69%


59%

59%


35%

46%















Expenses Other than Reimbursements,













Compensation & Benefits

53,890

48,459

11%

42,159

33,079

27%

54,855

54,673

0%

40,533

15,259

166%

% of Revenues Before Reimbursements

30%

29%


25%

24%


46%

44%


36%

34%















Total Operating Expenses

167,740

155,068

8%

152,267

129,106

18%

123,965

127,248

(3)%

79,194

36,075

120%














Operating Earnings (Loss) (1)

$ 13,309

$ 12,100

10%

$ 14,779

$ 10,076

47%

$ (6,259)

$ (4,105)

(52)%

$ 31,756

$ 8,849

259%

% of Revenues Before Reimbursements

7%

7%


9%

7%


(5)%

(3)%


29%

20%




























(1) This is a segment financial measure representing earnings (loss) before 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 5 for a reconciliation of Operating Earnings to Net Income computed in accordance with GAAP.

CRAWFORD & COMPANY

CONDENSED CONSOLIDATED BALANCE SHEETS

As of June 30, 2011 and December 31, 2010

(In Thousands, Except Par Values)




Unaudited


*



June 30,


December 31,

ASSETS

2011


2010






Current Assets:





Cash and Cash Equivalents

$ 37,206


$ 93,540


Accounts Receivable, Net

185,026


142,521


Unbilled Revenues, at Estimated Billable Amounts

136,726


122,933


Prepaid Expenses and Other Current Assets

21,363


20,411






Total Current Assets

380,321


379,405







Property and Equipment

155,994


149,444


Less Accumulated Depreciation

(111,944)


(106,073)

Net Property and Equipment

44,050


43,371






Other Assets:





Goodwill

129,872


125,764


Intangible Assets Arising from Business Acquisitions, Net

97,180


97,881


Capitalized Software Costs, Net

56,056


55,204


Deferred Income Tax Assets

90,022


91,930


Other Noncurrent Assets

25,962


27,119

Total Other Assets

399,092


397,898






Total Assets

$ 823,463


$ 820,674











LIABILITIES AND SHAREHOLDERS' INVESTMENT









Current Liabilities:





Short-Term Borrowings

$ 484


$ -


Accounts Payable

42,958


53,517


Accrued Compensation and Related Costs

83,683


90,590


Self-Insured Risks

16,943


15,094


Income Taxes Payable

8,976


2,558


Deferred Income Taxes

17,212


17,146


Deferred Rent

15,292


15,750


Other Accrued Liabilities

36,660


31,097


Deferred Revenues

51,605


48,198


Mandatory Contributions due to Pension Plan

4,200


20,000


Current Installments of Long-Term Debt and Capital Leases

2,942


2,891






Total Current Liabilities

280,955


296,841






Noncurrent Liabilities:





Long-Term Debt and Capital Leases, Less Current Installments

217,589


220,437


Deferred Revenues

29,098


30,048


Self-Insured Risks

13,491


18,274


Accrued Pension Liabilities, Less Current Mandatory Contributions

134,845


145,030


Other Noncurrent Liabilities

15,906


14,813

Total Noncurrent Liabilities

410,929


428,602






Shareholders' Investment:





Class A Common Stock, $1.00 Par Value

28,795


28,002


Class B Common Stock, $1.00 Par Value

24,697


24,697


Additional Paid-in Capital

31,419


32,348


Retained Earnings

192,268


168,791


Accumulated Other Comprehensive Loss

(150,862)


(164,322)

Shareholders' Investment Attributable to Shareholders of Crawford & Company

126,317


89,516






Noncontrolling Interests

5,262


5,715






Total Shareholders' Investment

131,579


95,231






Total Liabilities and Shareholders' Investment

$ 823,463


$ 820,674




* derived from the audited Consolidated Balance Sheet

CRAWFORD & COMPANY

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

Six Months Ended June 30, 2011 and June 30, 2010

Unaudited

(In Thousands)






2011


2010






Cash Flows From Operating Activities:





Net Income

$ 25,581


$ 549


Reconciliation of Net Income to Net Cash Used In Operating Activities:





Depreciation and Amortization

15,856


15,155


Goodwill Impairment Charge

-


7,303


Stock-Based Compensation

1,483


1,436


Loss on Disposals of Property and Equipment, Net

4


137


Changes in Operating Assets and Liabilities, Net of Effects of Acquisitions and Dispositions:





Accounts Receivable, Net

(33,696)


(12,753)


Unbilled Revenues, Net

(7,564)


(12,600)


Accrued or Prepaid Income Taxes

5,604


(837)


Accounts Payable and Accrued Liabilities

(17,780)


(6,617)


Deferred Revenues

1,996


(4,826)


Accrued Retirement Costs

(22,985)


(14,311)


Prepaid Expenses and Other Operating Activities

(1,705)


(2,268)

Net Cash Used In Operating Activities

(33,206)


(29,632)











Cash Flows From Investing Activities:





Acquisitions of Property and Equipment

(6,175)


(4,973)


Proceeds from Disposals of Property and Equipment

40


31


Capitalization of Computer Software Costs

(5,766)


(7,249)


Payments for Business Acquisitions, Net of Cash Acquired

(6,874)


-

Net Cash Used In Investing Activities

(18,775)


(12,191)











Cash Flows From Financing Activities:





Cash Dividends Paid

(2,139)


-


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

(1,645)


(703)


Increases in Short-Term Borrowings

15,268


22,108


Payments on Short-Term Borrowings

(14,144)


(2,688)


Payments on Long-Term Debt and Capital Lease Obligations

(3,422)


(7,053)


Other Financing Activities

20


(39)

Net Cash (Used In) Provided by Financing Activities

(6,062)


11,625






Effects of Exchange Rate Changes on Cash and Cash Equivalents

1,709


(1,922)






Decrease in Cash and Cash Equivalents

(56,334)


(32,120)

Cash and Cash Equivalents at Beginning of Year

93,540


70,354

Cash and Cash Equivalents at End of Period

$ 37,206


$ 38,234

SOURCE Crawford & Company