CRAWFORD & CO - FORM 8-K - EX-99.1 - EXHIBIT 99.1

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8-K - 8-K - CRAWFORD & CO	crawford_042418x8k.htm

CRAWFORD & COMPANY

RESULTS OF OPERATIONS BY QUARTER (UNAUDITED)

Revised for Realignment of Reportable Segments




2017 Quarterly Period	First			Second			Third			Fourth			Full Year
	(Dollars in thousands)
Revenues Before Reimbursements:
Crawford Claims Solutions	$	83,148		$	81,140		$	86,277		$	114,509		$	365,074
Crawford TPA Solutions: Broadspire	96,326			97,037			97,240			99,980			390,583
Crawford Specialty Solutions	87,793			91,070			87,034			84,278			350,175
Total, before reimbursements	267,267			269,247			270,551			298,767			1,105,832
Reimbursements	12,263			14,725			16,115			14,774			57,877
Total Revenues	279,530			283,972			286,666			313,541			1,163,709
Direct Compensation, Fringe Benefits & Non-Employee Labor:
Crawford Claims Solutions	55,468			51,982			58,675			78,720			244,845
% of related revenues before reimbursements	66.7		%	64.1		%	68.0		%	68.7		%	67.1		%
Crawford TPA Solutions: Broadspire	55,590			54,554			54,387			56,212			220,743
% of related revenues before reimbursements	57.7		%	56.2		%	55.9		%	56.2		%	56.5		%
Crawford Specialty Solutions	41,521			42,333			42,234			43,046			169,134
% of related revenues before reimbursements	47.3		%	46.5		%	48.5		%	51.1		%	48.3		%
Total	152,579			148,869			155,296			177,978			634,722
% of Revenues before reimbursements	57.1		%	55.3		%	57.4		%	59.6		%	57.4		%
Expenses Other than Direct Compensation Fringe Benefits & Non-Employee Labor:
Crawford Claims Solutions	25,246			25,831			25,585			26,040			102,702
% of related revenues before reimbursements	30.4		%	31.9		%	29.7		%	22.6		%	28.1		%
Crawford TPA Solutions: Broadspire	32,768			32,773			32,937			33,138			131,616
% of related revenues before reimbursements	34.0		%	33.8		%	33.9		%	33.1		%	33.8		%
Crawford Specialty Solutions	37,920			34,652			28,365			26,163			127,100
% of related revenues before reimbursements	43.2		%	38.0		%	32.6		%	31.0		%	36.3		%
Total, before reimbursements	95,934			93,256			86,887			85,341			361,418
% of Revenues before reimbursements	35.9		%	34.6		%	32.1		%	28.6		%	32.7		%
Reimbursements	12,263			14,725			16,115			14,774			57,877
Total	108,197			107,981			103,002			100,115			419,295
% of Revenues	38.7		%	38.0		%	35.9		%	31.9		%	36.0		%
Segment Operating Earnings ⁽¹⁾:
Crawford Claims Solutions	2,434			3,327			2,017			9,749			17,527
% of related revenues before reimbursements	2.9		%	4.1		%	2.3		%	8.5		%	4.8		%
Crawford TPA Solutions: Broadspire	7,968			9,710			9,916			10,630			38,224
% of related revenues before reimbursements	8.3		%	10.0		%	10.2		%	10.6		%	9.8		%
Crawford Specialty Solutions	8,352			14,085			16,435			15,069			53,941
% of related revenues before reimbursements	9.5		%	15.5		%	18.9		%	17.9		%	15.4		%
Deduct:
Unallocated corporate and shared costs	(461		)	2,037			(4,316		)	(11,246		)	(13,986		)
Net corporate interest expense	(2,036		)	(2,114		)	(2,524		)	(2,388		)	(9,062		)
Stock option expense	(417		)	(457		)	(468		)	(376		)	(1,718		)
Amortization of customer-relationship intangible assets	(2,777		)	(2,721		)	(2,737		)	(2,747		)	(10,982		)
Goodwill impairment charges	—			—			—			(19,598		)	(19,598		)
Restructuring and special charges	(605		)	(6,782		)	(1,431		)	(3,266		)	(12,084		)
Pretax Income (Loss)	12,458			17,085			16,892			(4,173		)	42,262
(Provision) benefit for income taxes	(4,835		)	(6,812		)	(4,922		)	1,530			(15,039		)
Net Income (Loss)	7,623			10,273			11,970			(2,643		)	27,223
Net loss (income) attributable to noncontrolling interests and redeemable noncontrolling interests	41			(72		)	(157		)	630			442

Net Income (Loss) Attributable to Shareholders of Crawford & Company	$	7,664		$	10,201		$	11,813		$	(2,013	)	$	27,665
⁽¹⁾ A non-GAAP financial measurement which represents net income attributable to the applicable reporting segment excluding income taxes, net corporate interest expense, stock option expense, amortization of customer-relationship intangible assets, goodwill impairment charges, restructuring and special charges, net income or loss attributable to noncontrolling interests and redeemable noncontrolling interests and certain unallocated corporate and shared costs and credits.

CRAWFORD & COMPANY

REVENUES BY GEOGRAPHIC AREA AND SERVICE LINE WITHIN SEGMENTS

BY QUARTER (UNAUDITED)




2017 Quarterly Period	First		Second		Third		Fourth		Full Year
	(Dollars in thousands)
Revenues Before Reimbursements:
Crawford Claims Solutions	$	83,148	$	81,140	$	86,277	$	114,509	$	365,074
Crawford TPA Solutions: Broadspire	96,326		97,037		97,240		99,980		390,583
Crawford Specialty Solutions	87,793		91,070		87,034		84,278		350,175
Total Revenues Before Reimbursements	$	267,267	$	269,247	$	270,551	$	298,767	$	1,105,832

Crawford Claims Solutions
U.S.	$	36,312	$	33,189	$	36,932	$	59,892	$	166,325
U.K.	14,043		14,453		14,108		16,693		59,297
Canada	11,537		10,882		11,214		12,422		46,055
Australia	9,999		11,098		12,912		13,127		47,136
Europe	7,397		6,490		6,349		6,840		27,076
Rest of World	3,860		5,028		4,762		5,535		19,185
Total Revenues Before Reimbursements	$	83,148	$	81,140	$	86,277	$	114,509	$	365,074

Crawford TPA Solutions: Broadspire
U.S.	$	76,979	$	77,882	$	76,683	$	78,558	$	310,102
U.K.	3,043		3,266		3,542		3,314		13,165
Canada	8,111		7,398		8,835		9,042		33,386
Europe	7,854		8,080		7,714		8,672		32,320
Rest of World	339		411		466		394		1,610
Total Revenues Before Reimbursements	$	96,326	$	97,037	$	97,240	$	99,980	$	390,583

Service Line
Claims Management	$	55,759	$	56,245	$	56,845	$	60,469	$	229,318
Medical Management	40,567		40,792		40,395		39,511		161,265
Total Revenues Before Reimbursements	$	96,326	$	97,037	$	97,240	$	99,980	$	390,583

Crawford Specialty Solutions
U.S.	$	43,519	$	47,213	$	45,711	$	40,823	$	177,266
U.K. ⁽¹⁾	20,259		17,711		14,184		14,722		66,876
Canada	7,917		7,698		7,825		8,081		31,521
Australia	5,803		6,622		7,117		6,942		26,484
Europe	4,557		5,069		5,384		6,161		21,171
Rest of World	5,738		6,757		6,813		7,549		26,857
Total Revenues Before Reimbursements	$	87,793	$	91,070	$	87,034	$	84,278	$	350,175

Service Line
Global Technical Services	$	40,704	$	42,122	$	42,882	$	47,317	$	173,025
Contractor Connection⁽¹⁾	27,141		29,269		24,120		20,420		100,950
Garden City Group	19,948		19,679		20,032		16,541		76,200
Total Revenues Before Reimbursements	$	87,793	$	91,070	$	87,034	$	84,278	$	350,175


⁽¹⁾ Revenues were lower during 2017 as compared to 2016 by $16.0 million due to a change in operating model in the U.K. contractor repair business. This operating model change had no impact on operating earnings.

CRAWFORD & COMPANY

RESULTS OF OPERATIONS BY QUARTER (UNAUDITED)

Revised for Realignment of Reportable Segments




2016 Quarterly Period	First			Second			Third			Fourth			Full Year
	(Dollars in thousands)
Revenues Before Reimbursements:
Crawford Claims Solutions	$	87,904		$	86,066		$	81,755		$	85,830		$	341,555
Crawford TPA Solutions: Broadspire	96,160			95,144			97,198			94,155			382,657
Crawford Specialty Solutions	93,170			101,133			98,333			92,438			385,074
Total, before reimbursements	277,234			282,343			277,286			272,423			1,109,286
Reimbursements	13,674			15,326			18,101			21,201			68,302
Total Revenues	290,908			297,669			295,387			293,624			1,177,588
Direct Compensation, Fringe Benefits & Non-Employee Labor:
Crawford Claims Solutions	58,707			54,233			52,196			54,797			219,933
% of related revenues before reimbursements	66.8		%	63.0		%	63.8		%	63.8		%	64.4		%
Crawford TPA Solutions: Broadspire	53,356			54,098			53,749			53,618			214,821
% of related revenues before reimbursements	55.5		%	56.9		%	55.3		%	56.9		%	56.1		%
Crawford Specialty Solutions	46,739			46,841			46,080			45,719			185,379
% of related revenues before reimbursements	50.2		%	46.3		%	46.9		%	49.5		%	48.1		%
Total	158,802			155,172			152,025			154,134			620,133
% of Revenues before reimbursements	57.3		%	55.0		%	54.8		%	56.6		%	55.9		%
Expenses Other than Direct Compensation Fringe Benefits & Non-Employee Labor:
Crawford Claims Solutions	28,963			27,369			25,732			25,187			107,251
% of related revenues before reimbursements	32.9		%	31.9		%	31.5		%	29.2		%	31.4		%
Crawford TPA Solutions: Broadspire	32,569			33,304			33,084			32,359			131,316
% of related revenues before reimbursements	33.9		%	35.0		%	34.0		%	34.4		%	34.4		%
Crawford Specialty Solutions	31,117			37,213			33,128			32,596			134,054
% of related revenues before reimbursements	33.4		%	36.8		%	33.7		%	35.3		%	34.8		%
Total, before reimbursements	92,649			97,886			91,944			90,142			372,621
% of Revenues before reimbursements	33.4		%	34.7		%	33.2		%	33.1		%	33.6		%
Reimbursements	13,674			15,326			18,101			21,201			68,302
Total	106,323			113,212			110,045			111,343			440,923
% of Revenues	36.5		%	38.0		%	37.3		%	37.9		%	37.4		%
Segment Operating Earnings⁽¹⁾:
Crawford Claims Solutions	234			4,464			3,827			5,846			14,371
% of related revenues before reimbursements	0.3		%	5.2		%	4.7		%	6.8		%	4.2		%
Crawford TPA Solutions: Broadspire	10,235			7,742			10,365			8,178			36,520
% of related revenues before reimbursements	10.6		%	8.1		%	10.7		%	8.7		%	9.5		%
Crawford Specialty Solutions	15,314			17,079			19,125			14,123			65,641
% of related revenues before reimbursements	16.4		%	16.9		%	19.4		%	15.3		%	17.0		%
Deduct:
Unallocated corporate and shared costs	(4,113		)	(5,402		)	(7,035		)	(7,853		)	(24,403		)
Net corporate interest expense	(2,768		)	(2,523		)	(2,262		)	(1,632		)	(9,185		)
Stock option expense	(90		)	(137		)	(176		)	(218		)	(621		)
Amortization of customer-relationship intangible assets	(2,459		)	(2,420		)	(2,401		)	(2,312		)	(9,592		)
Restructuring and special charges	(2,417		)	(3,526		)	(1,488		)	(2,059		)	(9,490		)
Pretax Income	13,936			15,277			19,955			14,073			63,241
Provision for income taxes	(5,307		)	(6,116		)	(8,606		)	(5,536		)	(25,565		)
Net Income	8,629			9,161			11,349			8,537			37,676
Net loss (income) attributable to noncontrolling interests	1			(534		)	(404		)	(773		)	(1,710		)

Net Income Attributable to Shareholders of Crawford & Company	$	8,630		$	8,627		$	10,945		$	7,764		$	35,966
⁽¹⁾A non-GAAP financial measurement which represents net income attributable to the applicable reporting segment excluding income taxes, net corporate interest expense, stock option expense, amortization of customer-relationship intangible assets, restructuring and special charges, net income attributable to non controlling interests and certain unallocated corporate and shared costs and credits.

CRAWFORD & COMPANY

REVENUES BY GEOGRAPHIC AREA AND SERVICE LINE WITHIN SEGMENTS

BY QUARTER (UNAUDITED)



2016 Quarterly Period	First		Second		Third		Fourth		Full Year
	(Dollars in thousands)
Revenues Before Reimbursements:
Crawford Claims Solutions	$	87,904	$	86,066	$	81,755	$	85,830	$	341,555
Crawford TPA Solutions: Broadspire	96,160		95,144		97,198		94,155		382,657
Crawford Specialty Solutions	93,170		101,133		98,333		92,438		385,074
Total Revenues Before Reimbursements	$	277,234	$	282,343	$	277,286	$	272,423	$	1,109,286

Crawford Claims Solutions
U.S.	$	34,659	$	31,541	$	30,397	$	34,879	$	131,476
U.K.	21,562		18,206		15,951		16,181		71,900
Canada	9,753		12,011		11,671		10,688		44,123
Australia	8,772		10,313		10,853		10,820		40,758
Europe	7,451		7,282		7,712		7,584		30,029
Rest of World	5,707		6,713		5,171		5,678		23,269
Total Revenues Before Reimbursements	$	87,904	$	86,066	$	81,755	$	85,830	$	341,555

Crawford TPA Solutions: Broadspire
U.S.	$	76,200	$	75,099	$	76,676	$	74,001	$	301,976
U.K.	3,472		3,504		3,546		3,132		13,654
Canada	7,498		7,922		8,744		8,189		32,353
Europe	8,611		8,249		7,864		8,488		33,212
Rest of World	379		370		368		345		1,462
Total Revenues Before Reimbursements	$	96,160	$	95,144	$	97,198	$	94,155	$	382,657

Service Line
Claims Management	$	55,799	$	55,221	$	56,050	$	55,402	$	222,472
Medical Management	40,361		39,923		41,148		38,753		160,185
Total Revenues Before Reimbursements	$	96,160	$	95,144	$	97,198	$	94,155	$	382,657

Crawford Specialty Solutions
U.S.	$	48,517	$	52,438	$	48,171	$	46,481	$	195,607
U.K.⁽¹⁾	21,221		22,839		23,804		19,581		87,445
Canada	7,283		7,757		7,666		7,515		30,221
Australia	5,200		6,574		6,992		7,060		25,826
Europe	4,670		5,403		4,799		4,706		19,578
Rest of World	6,279		6,122		6,901		7,095		26,397
Total Revenues Before Reimbursements	$	93,170	$	101,133	$	98,333	$	92,438	$	385,074

Service Line
Global Technical Services	$	42,087	$	44,284	$	45,574	$	44,264	$	176,209
Contractor Connection ⁽¹⁾	25,460		31,108		29,629		24,006		110,203
Garden City Group	25,623		25,741		23,130		24,168		98,662
Total Revenues Before Reimbursements	$	93,170	$	101,133	$	98,333	$	92,438	$	385,074

⁽¹⁾ Revenues were lower during 2016 as compared to 2015 by $6.7 million due to a change in operating model in the U.K. contractor repair business. This operating model change had no impact on operating earnings.

CRAWFORD & COMPANY

CASE VOLUME AND FULL TIME EQUIVALENT DATA

BY QUARTER (UNAUDITED)



	1st Quarter		2nd Quarter		3rd Quarter		4th Quarter		Year
	2017	2016	2017	2016	2017	2016	2017	2016	2017	2016
CASE VOLUME ANALYSIS

Crawford Claims Solutions	125,882	110,161	124,065	98,327	140,135	103,510	138,016	103,969	528,098	415,967
Crawford TPA Solutions: Broadspire	216,191	198,993	206,387	204,019	207,089	210,477	204,322	199,128	833,989	812,617
Crawford Specialty Solutions	86,736	78,673	89,582	79,175	85,328	84,608	71,411	73,775	333,057	316,231
Total Company	428,809	387,827	420,034	381,521	432,552	398,595	413,749	376,872	1,695,144	1,544,815

Crawford Claims Solutions
US⁽¹⁾	72,024	43,515	70,128	44,071	90,420	42,206	81,784	43,886	314,356	173,678
UK	14,337	22,943	13,587	17,326	12,595	15,942	13,518	15,706	54,037	71,917
Canada	8,548	7,236	8,585	8,549	8,439	9,106	8,600	7,620	34,172	32,511
Australia	12,558	10,368	14,631	11,092	8,654	14,033	7,433	10,586	43,276	46,079
Europe	11,924	15,289	10,807	11,276	13,022	15,776	20,017	19,760	55,770	62,101
Rest of World	6,491	10,810	6,327	6,013	7,005	6,447	6,664	6,411	26,487	29,681
Total Crawford Claims Solutions	125,882	110,161	124,065	98,327	140,135	103,510	138,016	103,969	528,098	415,967

Crawford TPA Solutions: Broadspire
US	128,221	114,718	122,995	122,138	124,230	125,125	123,369	115,039	498,815	477,020
UK	11,779	9,614	10,661	11,442	11,503	12,135	11,554	11,537	45,497	44,728
Canada	20,341	21,207	18,669	20,446	21,305	24,877	20,322	22,047	80,637	88,577
Europe	55,712	53,392	53,960	49,902	49,928	48,251	48,946	50,381	208,546	201,926
Rest of World	138	62	102	91	123	89	131	124	494	366
Total Crawford TPA Solutions: Broadspire	216,191	198,993	206,387	204,019	207,089	210,477	204,322	199,128	833,989	812,617
				.
Crawford Specialty Solutions
Global Technical Services	15,850	16,467	14,377	15,317	14,766	16,133	14,882	15,868	59,875	63,785
Contractor Connection	70,886	62,206	75,205	63,858	70,562	68,475	56,529	57,907	273,182	252,446
Garden City Group⁽²⁾	—	—	—	—	—	—	—	—	—	—
Total Crawford Specialty Solutions	86,736	78,673	89,582	79,175	85,328	84,608	71,411	73,775	333,057	316,231


AVERAGE FULL TIME EQUIVALENT EMPLOYEE DATA

Crawford Claims Solutions	3,050	3,134	3,001	3,022	2,983	2,889	3,125	2,944	3,040	2,997
Crawford TPA Solutions: Broadspire	2,894	2,835	2,899	2,837	2,947	2,822	2,984	2,836	2,931	2,833
Crawford Specialty Solutions	1,763	1,800	1,747	1,766	1,730	1,769	1,712	1,766	1,738	1,776
Administration	945	964	972	960	981	993	973	987	968	976
Total Company	8,652	8,733	8,619	8,585	8,641	8,473	8,794	8,533	8,677	8,582
⁽¹⁾ 2017 increase was due to 114,101 high-frequency, low-complexity cases from WeGoLook acquisition.
⁽²⁾ Garden City Group services are generally project based and not denominated by individual claims. Depending upon the nature of projects ad their respective stages of completion, the volume of transactions or tasks performed in any period can vary, sometimes significantly.

CRAWFORD & CO - FORM 8-K - EX-99.1 - EXHIBIT 99.1 - April 24, 2018

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