CRAWFORD & COMPANY 
By ATLANTA, Nov. 7, 2011 /PRNewswire/ -- Crawford & Company (www.crawfordandcompany.com) (NYSE: CRDA; 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 third quarter ended September 30, 2011.
Consolidated Results
Third quarter 2011 consolidated revenues before reimbursements totaled $283.0 million, up 11% over $254.5 million in the 2010 third quarter. Third quarter 2011 net income attributable to Crawford & Company was $15.3 million, compared with $13.0 million recorded in the 2010 third quarter. Third quarter 2011 diluted earnings per share for CRDA and CRDB were $0.28 compared with $0.24 reported in the prior-year quarter. Third quarter 2011 diluted earnings per share for CRDA and CRDB were positively impacted by an arbitration award of $7.0 million ($5.9 million net of tax, or $0.11 per diluted share) related to the previously disclosed arbitration with Platinum Equity, LLC.
The Company's consolidated cash and cash equivalents position as of September 30, 2011 totaled $68.0 million, compared with $93.5 million at December 31, 2010. Crawford used $17.6 million of cash in operations during the 2011 year-to-date period, compared with $25.1 million during the comparable 2010 period. The $7.5 million reduction in cash used in operations was due to higher net income, partially offset by higher accounts receivable and unbilled revenues and increased payments of accounts payable and accrued liabilities.
In the 2011 third quarter, the Company paid a higher dividend on CRDA than on CRDB. This may result in a different earnings per share ("EPS") for each class of stock due to the two-class method of computing EPS as required by the guidance in Accounting Standards Codification 260 - "Earnings Per Share". The two-class method is an earnings allocation method under which EPS is calculated for each class of common stock considering both dividends declared and participation rights in undistributed earnings as if all such earnings had been distributed during the period. Further references in this release will generally be only for CRDB, as that is the more dilutive measure.
Results by Segment
Americas
Americas revenues before reimbursements were $94.7 million in the third quarter of 2011, increasing 10% from $85.7 million in the 2010 third quarter. During the 2011 third quarter compared with the 2010 third quarter, the U.S. dollar weakened against foreign currencies in the segment, resulting in a positive exchange rate impact to revenues of $2.6 million in this segment. Excluding the positive impact of exchange rate changes, Americas revenues would have been $92.0 million in the 2011 third quarter. Revenues generated by the Company's catastrophe adjuster group in the U.S. were $12.9 million in the 2011 third quarter, increasing from $4.6 million in the 2010 period. Americas operating expenses for the 2011 third quarter increased by $8.4 million in U.S. dollars, an 11% increase, and increased by 7% on a constant dollar basis, compared with the 2010 period. Operating earnings in the 2011 third quarter in the segment increased to $6.8 million, or an operating margin of 7%, compared with operating earnings of $6.2 million, or 7% of revenues in the 2010 third quarter.
EMEA/AP
Third quarter 2011 revenues before reimbursements for the EMEA/AP segment increased 27% to $87.0 million from $68.7 million in the same period of 2010. During the 2011 third quarter compared with the 2010 third quarter, the U.S. dollar weakened against most major foreign currencies, resulting in a positive exchange rate impact to revenues of $10.0 million in this segment. Excluding the positive impact of exchange rate changes, EMEA/AP revenues would have been $77.0 million in the 2011 third quarter. EMEA/AP operating expenses for the 2011 third quarter increased by $17.7 million in U.S. dollars, a 28% increase, and increased by 14% on a constant dollar basis, compared with the 2010 period. Operating earnings increased to $5.7 million in the 2011 third quarter from 2010 third quarter operating earnings of $5.1 million. The related operating margin was 7% for both the third quarter of 2011 and 2010.
Broadspire
Revenues before reimbursements from the Broadspire segment were $58.9 million in the 2011 third quarter, down 5% from $61.7 million in the 2010 third quarter. Broadspire had an operating loss of $2.9 million in the 2011 third quarter, or a negative operating margin of 5%, compared with an operating loss of $0.7 million, or a negative operating margin of 1%, 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 the ongoing special project for one of our clients.
Legal Settlement Administration
Legal Settlement Administration revenues before reimbursements were $42.5 million in the 2011 third quarter, compared with $38.4 million in the 2010 third quarter. Operating earnings totaled $10.8 million in the 2011 third quarter, or 25% of revenues, compared with $11.0 million, or 29% of revenues, in the prior-year period. The segment's awarded project backlog totaled approximately $72.5 million at September 30, 2011 as compared with $75.0 million at September 30, 2010.
Management's Comments
Mr. Jeffrey T. Bowman, chief executive officer of Crawford & Company, stated, "Our third quarter 2011 operating results reflect continued strong performance in our Americas, EMEA/AP and Legal Settlement Administration segments.
"Both the Americas segment and EMEA/AP benefited from weather-related claims increases, the former in the U.S. as a result of Hurricane Irene and the latter as a result of an increase in weather-related claims activity in our Australian market.
"In our Legal Settlement Administration segment, we continue to see solid results primarily from our engagement in the Gulf Coast Claims Facility special project. We still have a strong backlog of awarded projects in this segment and expect the special project activity to continue through 2011 and into 2012, although at a reduced rate as this project continues to wind down.
"Our Broadspire segment is closely correlated with the U.S. economy and continues to be affected by lower workplace-related claims volumes reflecting the high level of U.S. unemployment. In addition, we are seeing the duration of workers compensation claims lengthen, which is putting further pressure on this business. We are actively addressing these issues and focusing on significant technology improvements, business development, and cost control measures. As we have previously disclosed, during the 2011 third quarter we completed all remaining arbitration matters related to the acquisition of Broadspire. In connection with that, we recorded an after-tax $5.9 million one-time arbitration award in this year's third quarter. We are pleased all arbitration matters associated with the Broadspire acquisition are now behind us as we continue to build this business unit."
Mr. Bowman concluded, "As we end the year and prepare to enter 2012, I am optimistic that our strategic focus of getting Broadspire to an acceptable operating profit level, reducing our overall debt load, and enhancing shareholders' returns through improved revenue and operating earnings as we capitalize on global opportunities and efficiencies will be executed."
2011 Guidance
Crawford & Company revises and increases aspects of its previously issued guidance for 2011 as follows:
-- Consolidated revenues before reimbursements between $1.10 billion and
$1.13 billion.
-- Consolidated operating earnings between $83.0 million and $89.0 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 charges, and income taxes, net income
attributable to shareholders of Crawford & Company on a GAAP basis
between $45.0 million and $47.5 million, or $0.81 to $0.86 diluted
earnings per CRDB share.
-- Before reflecting a net special credit of $1.6 million, or $0.04 per
share, net income attributable to shareholders of Crawford & Company on
a non-GAAP basis between $43.5 million and $46.0 million, or $0.77 to
$0.82 diluted earnings per CRDB share.
Crawford & Company's management will host a conference call with investors on Monday, November 7, 2011 at 3:00 p.m. EST to discuss earnings and other developments. The call will be recorded and available for replay through November 15, 2011. You may dial 1-855-859-2056 (404-537-3406 international) to listen to the replay. The access code is 21518137. 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 as of and for the quarter and year-to-date period ended September 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 expenses and revenues, 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 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, 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, arbitration awards, 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 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
------------- -------------------------
September September September September
30, % 30, % 30, % 30, Margin
2011 Margin 2010 Margin 2011 Margin 2010 %
---------- ------- ---------- ------- ---------- ------- ---------- --------
Operating
Earnings
(Loss):
Americas $6,780 7% $6,232 7% $20,089 7% $18,332 7%
EMEA/
AP 5,686 7% 5,133 7% 20,465 8% 15,209 7%
Broadspire (2,925) (5)% (659) (1)% (9,184) (5)% (4,764) (3)%
Legal
Settlement
Administration 10,781 25% 10,968 29% 42,537) 28% 19,817 24%
Unallocated
corporate
and
shared
costs (956) -% (783) -% (5,349) (1)% (2,244) -%
Add
(Deduct):
Arbitration
award
and
special
charges 6,992 2% - -% 6,992 1% (4,650) (1)%
Goodwill
impairment - -% - -% - -% (7,303) (1)%
Stock
option
expense (78) -% (195) -% (375) -% (586) -%
Amortization
expense (1,513) (1)% (1,497) (1)% (4,531) (1)% (4,496) (1)%
Net
corporate
interest
expense (4,142) (1)% (3,923) (2)% (12,396) (1)% (11,732) (2)%
Provision
for
income
taxes (5,295) (2) % (2,180) (1)% (17,337) (2)% (3,938) (1)%
Net
(income)
loss
attributable
to
non-
controlling
interests (34) -% (106) -% 1 -% (128) -%
--- ---- --- ----
Net
income
attributable
to
Crawford
&
Company $15,296 5% $12,990 5% $40,912 5% $13,517 2%
======= ======= ======= =======
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.
The Company's two classes of stock have substantially identical rights, except with respect to voting rights and the Company's ability to pay greater cash dividends on the Class A Common Stock than on the Class B Common Stock, subject to certain limitations. 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 and other federal securities laws. 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 September 30, 2011 2010 % Change
-------------------------------- ---- ---- --------
Revenues:
Revenues Before Reimbursements $282,967 $254,523 11%
Reimbursements 25,252 23,587 7%
------ ------
Total Revenues 308,219 278,110 11%
Costs and Expenses:
Costs of Services Provided,
Before Reimbursements 211,577 185,172 14%
Reimbursements 25,252 23,587 7%
------ ------
Total Costs of Services 236,829 208,759 13%
Selling, General, and
Administrative Expenses 53,615 50,152 7%
Corporate Interest Expense, Net 4,142 3,923 6%
Arbitration Award (6,992) - nm
Total Costs and Expenses 287,594 262,834 9%
------- -------
Income before Income Taxes 20,625 15,276 35%
Provision for Income Taxes 5,295 2,180 143%
-----
Net Income 15,330 13,096 17%
Less: Net Income Attributable to
Noncontrolling Interests 34 106 (68%)
--- ---
Net Income Attributable to
Shareholders of Crawford &
Company $15,296 $12,990 18%
======= =======
Earnings Per Share - Basic:
Class A Common Stock $0.29 $0.25 16%
===== =====
Class B Common Stock $0.28 $0.25 12%
===== =====
Earnings Per Share - Diluted:
Class A Common Stock $0.28 $0.24 17%
===== =====
Class B Common Stock $0.28 $0.24 17%
===== =====
Cash Dividends Per Share:
Class A Common Stock $0.03 $- nm
===== ===
Class B Common Stock $0.02 $- nm
===== ===
nm = not meaningful
CRAWFORD & COMPANY
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
Unaudited
(In Thousands, Except Earnings Per Share Amounts and
Percentages)
Nine Months Ended September 30, 2011 2010 % Change
------------------------------- ---- ---- --------
Revenues:
Revenues Before Reimbursements $859,718 $728,940 18%
Reimbursements 66,691 57,209 17%
------ ------
Total Revenues 926,409 786,149 18%
Costs and Expenses:
Costs of Services Provided,
Before Reimbursements 629,292 538,142 17%
Reimbursements 66,691 57,209 17%
------ ------
Total Costs of Services 695,983 595,351 17%
Selling, General, and
Administrative Expenses 166,774 149,530 12%
Corporate Interest Expense, Net 12,396 11,732 6%
Arbitration Award and Special
Charges (6,992) 4,650 nm
Goodwill Impairment Charge - 7,303 nm
Total Costs and Expenses 868,161 768,566 13%
------- -------
Income before Income Taxes 58,248 17,583 231%
Provision for Income Taxes 17,337 3,938 340%
-----
Net Income 40,911 13,645 200%
Less: Net (Loss) Income
Attributable to Noncontrolling
Interests (1) 128 (101%)
--- ---
Net Income Attributable to
Shareholders of Crawford &
Company $40,912 $13,517 203%
======= =======
Earnings Per Share - Basic:
Class A Common Stock $0.77 $0.26 196%
===== =====
Class B Common Stock $0.76 $0.26 192%
===== =====
Earnings Per Share - Diluted:
Class A Common Stock $0.76 $0.25 204%
===== =====
Class B Common Stock $0.75 $0.25 200%
===== =====
Cash Dividends Per Share:
Class A Common Stock $0.07 $- nm
===== ===
Class B Common Stock $0.06 $- nm
===== ===
nm = not meaningful
CRAWFORD & COMPANY
SUMMARY RESULTS BY OPERATING SEGMENT
Three Months Ended September 30,
Unaudited
(In Thousands, Except Percentages)
Legal Settlement
Americas % EMEA/AP % Broadspire % Administration %
2011 2010 Change 2011 2010 Change 2011 2010 Change 2011 2010 Change
==== ==== ====== ==== ==== ====== ==== ==== ====== ==== ==== ======
Revenues
Before
Reimbursements $94,651 $85,673 10% $86,970 $68,725 27% $58,855 $61,683 (5)% $42,491 $38,442 11%
------- ------- --- ------- ------- --- ------- ------- --- ------- ------- ---
Compensation
& Benefits 58,524 53,824 9% 56,940 46,019 24% 34,115 35,391 (4)% 16,976 13,631 25%
% of Revenues
Before
Reimbursements 62% 63% 65% 67% 58% 57% 40% 35%
Expenses Other than
Reimbursements,
Compensation
& Benefits 29,347 25,617 15% 24,344 17,573 39% 27,665 26,951 3% 14,734 13,843 6%
% of Revenues
Before
Reimbursements 31% 30% 28% 26% 47% 44% 35% 36%
--- --- --- --- --- --- --- ---
Total
Operating
Expenses 87,871 79,441 11% 81,284 63,592 28% 61,780 62,342 (1)% 31,710 27,474 15%
------ ------ --- ------ ------ --- ------ ------ --- ------ ------ ---
Operating
Earnings
(Loss) (1) $6,780 $6,232 9% $5,686 $5,133 11% $(2,925) $(659) (344)% $10,781 $10,968 (2)%
% of Revenues
Before
Reimbursements 7% 7% 7% 7% (5)% (1)% 25% 29%
--- --- --- --- --- --- --- ---
Nine Months Ended September 30,
Unaudited
(In Thousands, Except Percentages)
Legal Settlement
Americas % EMEA/AP % Broadspire % Administration %
2011 2010 Change 2011 2010 Change 2011 2010 Change 2011 2010 Change
==== ==== ====== ==== ==== ====== ==== ==== ====== ==== ==== ======
Revenues
Before
Reimbursements $275,700 $252,841 9% $254,016 $207,907 22% $176,561 $184,826 (4)% $153,441 $83,366 84%
-------- -------- --- -------- -------- --- -------- -------- --- -------- ------- ---
Compensation
& Benefits 172,374 160,433 7% 167,048 142,046 18% 103,225 107,966 (4)% 55,637 34,447 62%
% of Revenues
Before
Reimbursements 63% 63% 66% 68% 58% 58% 36% 41%
Expenses Other than
Reimbursements,
Compensation
& Benefits 83,237 74,076 12% 66,503 50,652 31% 82,520 81,624 1% 55,267 29,102 90%
% of Revenues
Before
Reimbursements 30% 29% 26% 24% 47% 44% 36% 35%
--- --- --- --- --- --- --- ---
Total
Operating
Expenses 255,611 234,509 9% 233,551 192,698 21% 185,745 189,590 (2)% 110,904 63,549 75%
------- ------- --- ------- ------- --- ------- ------- --- ------- ------ ---
Operating
Earnings
(Loss) (1) $20,089 $18,332 10% $20,465 $15,209 35% $(9,184) $(4,764) (93)% $42,537 $19,817 115%
% of Revenues
Before
Reimbursements 7% 7% 8% 7% (5)% (3)% 28% 24%
--- --- --- --- --- --- --- ---
(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 corporate and
shared costs. See page 5 for a
reconciliation of Operating Earnings (Loss) to Net Income computed in accordance with GAAP.
CRAWFORD & COMPANY
CONDENSED CONSOLIDATED BALANCE SHEETS
As of September 30, 2011 and December 31, 2010
(In Thousands, Except Par Values)
Unaudited *
September December
30, 31,
ASSETS 2011 2010
------ ---- ----
Current Assets:
Cash and Cash Equivalents $68,034 $93,540
Accounts Receivable, Net 179,024 142,521
Unbilled Revenues, at Estimated Billable
Amounts 133,424 122,933
Prepaid Expenses and Other Current Assets 23,040 20,411
------ ------
Total Current Assets 403,522 379,405
------- -------
Property and Equipment 155,876 149,444
Less Accumulated Depreciation (112,900) (106,073)
-------- --------
Net Property and Equipment 42,976 43,371
------ ------
Other Assets:
Goodwill 127,756 125,764
Intangible Assets Arising from Business
Acquisitions, Net 95,326 97,881
Capitalized Software Costs, Net 59,289 55,204
Deferred Income Tax Assets 88,952 91,930
Other Noncurrent Assets 27,052 27,119
------ ------
Total Other Assets 398,375 397,898
------- -------
Total Assets $844,873 $820,674
======== ========
LIABILITIES AND SHAREHOLDERS' INVESTMENT
----------------------------------------
Current Liabilities:
Short-Term Borrowings $21,749 $-
Accounts Payable 41,324 53,517
Accrued Compensation and Related Costs 81,599 90,590
Self-Insured Risks 17,607 15,094
Income Taxes Payable 9,499 2,558
Deferred Income Taxes 17,077 17,146
Deferred Rent 14,764 15,750
Other Accrued Liabilities 36,104 31,097
Deferred Revenues 50,454 48,198
Mandatory Contributions Due to Pension Plan 8,600 20,000
Current Installments of Long-Term Debt and
Capital Leases 2,971 2,891
----- -----
Total Current Liabilities 301,748 296,841
------- -------
Noncurrent Liabilities:
Long-Term Debt and Capital Leases, Less
Current Installments 217,005 220,437
Deferred Revenues 28,623 30,048
Self-Insured Risks 11,236 18,274
Accrued Pension Liabilities, Less Current
Mandatory Contributions 127,799 145,030
Other Noncurrent Liabilities 14,198 14,813
------ ------
Total Noncurrent Liabilities 398,861 428,602
------- -------
Shareholders' Investment:
Class A Common Stock, $1.00 Par Value 29,072 28,002
Class B Common Stock, $1.00 Par Value 24,697 24,697
Additional Paid-in Capital 32,922 32,348
Retained Earnings 206,198 168,791
Accumulated Other Comprehensive Loss (153,638) (164,322)
-------- --------
Shareholders' Investment Attributable to
Shareholders of Crawford & Company 139,251 89,516
Noncontrolling Interests 5,013 5,715
----- -----
Total Shareholders' Investment 144,264 95,231
------- ------
Total Liabilities and Shareholders' Investment $844,873 $820,674
======== ========
* derived from the audited Consolidated Balance Sheet
CRAWFORD & COMPANY
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
Nine Months Ended September 30, 2011 and September 30,
2010
Unaudited
(In Thousands)
2011 2010
---- ----
Cash Flows From Operating Activities:
-------------------------------------
Net Income $40,911 $13,645
Reconciliation of Net Income to Net Cash Used In
Operating Activities:
Depreciation and Amortization 23,804 22,780
Goodwill Impairment Charge - 7,303
Arbitration Award (6,992) -
Stock-Based Compensation 2,709 2,959
Changes in Operating Assets and Liabilities, Net
of Effects of Acquisitions and Dispositions:
Accounts Receivable, Net (30,179) (30,513)
Unbilled Revenues, Net (6,654) (24,647)
Accrued or Prepaid Income Taxes 6,308 (1,589)
Accounts Payable and Accrued Liabilities (23,309) 11,821
Deferred Revenues 566 (4,459)
Accrued Retirement Costs (22,313) (17,557)
Prepaid Expenses and Other Operating
Activities (2,449) (4,853)
------ ------
Net Cash Used In Operating Activities (17,598) (25,110)
------- -------
Cash Flows From Investing Activities:
-------------------------------------
Acquisitions of Property and Equipment (9,326) (8,003)
Proceeds from Disposals of Property and
Equipment 84 40
Capitalization of Computer Software
Costs (11,963) (10,671)
Additional Purchase Price Consideration
for Previous Acquisition - (7,303)
Cash Received in Arbitration Award 4,913 -
Payments for Business Acquisitions, Net
of Cash Acquired (6,874) -
------ ---
Net Cash Used In Investing Activities (23,166) (25,937)
------- -------
Cash Flows From Financing Activities:
-------------------------------------
Cash Dividends Paid (3,505) -
Shares Used to Settle Withholding Taxes
Under Stock-Based Compensation Plans (1,653) (703)
Proceeds from Employee Stock-Based
Compensation Plans 588 530
Increases in Short-Term Borrowings 59,252 34,939
Payments on Short-Term Borrowings (36,432) (2,718)
Payments on Long-Term Debt and Capital
Lease Obligations (4,145) (7,516)
Other Financing Activities (41) (218)
--- ----
Net Cash Provided by Financing
Activities 14,064 24,314
------ ------
Effects of Exchange Rate Changes on Cash
and Cash Equivalents 1,194 (1,428)
----- ------
Decrease in Cash and Cash Equivalents (25,506) (28,161)
Cash and Cash Equivalents at Beginning
of Year 93,540 70,354
Cash and Cash Equivalents at End of
Period $68,034 $42,193
======= =======
SOURCE Crawford & Company
