Crawford Q2 2021 Earnings Report
Key Takeaways
Crawford & Company reported a strong second quarter in 2021, with revenues up 14% and net income doubling compared to the same period last year. The company saw strength across its business segments, driven by rebounding claim volumes and the adoption of digital solutions.
Revenues before reimbursements increased by 14% to $267.5 million compared to Q2 2020.
Net income attributable to shareholders doubled to $11.8 million from $5.9 million in the same period last year.
Diluted earnings per share reached $0.22 for both CRD-A and CRD-B, compared to $0.11 in the prior year.
Non-GAAP adjusted EBITDA was $29.0 million, or 10.8% of revenues before reimbursements, compared to $25.5 million, or 10.9% of revenues, in the 2020 second quarter.
Crawford
Crawford
Crawford Revenue by Geographic Location
Forward Guidance
The company anticipates potential headwinds from an uneven COVID-19 global recovery, but sees emerging green shoots for its U.S. TPA business amidst signs of an increasingly robust labor market. The post-pandemic insurance landscape is accelerating the adoption of digital client-centric solutions, bolstering the performance of the Platforms segment.
Positive Outlook
- Rebounding claim volumes in TPA and Loss Adjusting.
- Continued growth and transformation in the Platforms business.
- Emerging green shoots for the U.S. TPA business.
- Acceleration of digital client-centric solutions adoption.
- Confidence in enhancing lives and delivering value to stakeholders.
Challenges Ahead
- Potential headwinds from an uneven COVID-19 global recovery.
- Uncertainty regarding the sustainability of the economic recovery.
- Potential material impact from COVID-19 on results of operations, financial condition, and cash flows.
- Possible negative impacts from changes in economic conditions and government responses to COVID-19.
- Potential labor shortages that could increase compensation costs and other expenses.