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Mar 31, 2021

Crawford Q1 2021 Earnings Report

Crawford & Company reported strong first-quarter results for 2021, driven by weather-related claims and strategic business evolution, with revenue and operating earnings increasing year-over-year.

Key Takeaways

Crawford & Company reported a strong first quarter in 2021, with revenue increasing by 7% and operating earnings increasing by 86% year-over-year. The company benefited from weather-related activity and added $13 million in new and enhanced business. Crawford also launched Crawford Inspection Services, a digital solution for handling claims.

Revenue before reimbursements increased to $253.2 million, compared to $237.5 million in Q1 2020.

Net income attributable to shareholders was $6.1 million, a significant improvement from the ($11.4) million loss in the same period last year.

Diluted earnings per share (EPS) reached $0.11 for both CRD-A and CRD-B shares, compared to a loss of ($0.21) and ($0.23) respectively in Q1 2020.

Consolidated adjusted EBITDA was $22.2 million, or 8.8% of non-GAAP revenues, compared to $16.7 million, or 7.0% of revenues, in Q1 2020.

Total Revenue
$253M
Previous year: $238M
+6.6%
EPS
$0.15
Previous year: $0.01
+1400.0%
Adjusted EBITDA
$22.2M
Previous year: $16.7M
+32.9%
Cash and Equivalents
$42.7M
Previous year: $83.1M
-48.6%
Free Cash Flow
-$3.4M
Total Assets
$773M
Previous year: $782M
-1.1%

Crawford

Crawford

Crawford Revenue by Geographic Location

Forward Guidance

Crawford is celebrating its 80th anniversary in 2021 and believes the strategic evolution of its business will enable confident execution of growth plans. The company anticipates continued delivery of value to shareholders while fulfilling its purpose.

Positive Outlook

  • Strategic evolution of business.
  • Confident execution of growth plans.
  • Strong customer and carrier client relationships.
  • Continued drive for innovation.
  • Strong financial position.

Challenges Ahead

  • COVID-19 negatively impacted revenues by $5.0 to $10.0 million.
  • Ongoing global economic slowdown resulting from COVID-19 could have a material impact.
  • Foreign exchange fluctuations.
  • Self-insurance costs.
  • Incentive compensation increases.