NYSE$CRD-A

Crawford & Company · Q2 2021 earnings

Q2 2021 earnings · · Investor relations

Briefing

Crawford & Company reported double-digit revenue growth in the second quarter of 2021.

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.

Headline financials

Total Revenue

$277M

Previous: $243M+13.9%
EPS (adj)

$0.26

Previous: $0.16+62.5%
Adjusted EBITDA

$29M

Previous: $25.9M+12.0%
Operating Margin

7.3%

Previous: 7.8%-6.4%
Capital Expenditures

-$2.12M

Previous: -$5.48M+61.3%
Free Cash Flow

$9.66M

Previous: $422K+2189.1%
Net Income

$11.8M

Previous: $5.9M+99.7%
Operating Income

-$261M

Previous: -$226M-15.3%
Gross Profit

$74.3M

Previous: $70.8M+4.9%
Cash & Equivalents

$44.7M

Previous: $60M-25.4%
Total Assets

$771M

Previous: $747M+3.1%

Revenue & EPS history

Crawford · Revenue · Quarterly

$277M

Q2 2021+13.9%vs Q2 2020
Beat estimate in 7 of 12 quarters(58%)
ActualEstimate

Revenue by segment

Crawford · $326M total across 4 segments · Q3 2023

  • International Operations
    $98.1M+13.9%
  • Broadspire
    $88.3M+12.7%
  • North America Loss Adjusting
    $79.4M+18.8%
  • Platform Solutions
    $59.8M-6.0%

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.

Tailwinds

  • 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.

Headwinds

  • 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.

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 20 quarterly earnings reports · overlaid with Q2 2021

Historical avgQ2 2021

-0.9%

Avg return

Earnings day

-0.6%

Avg return

5 days after

+1.6%

Avg return

30 days after

48%

34 / 71 earnings

Positive

+16.5%

Q1 2011

Best reaction

-25.2%

Q4 2023

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026-2.4%-4.5%+1.4%
Q4 2025-5.1%-3.7%-6.8%
Q3 2025+2.1%+2.9%+1.4%
Q1 2025-3.0%-4.8%-6.4%
Q4 2024-1.7%-5.3%-12.1%
Q3 2024+4.8%+6.7%+5.7%
Q2 2024+0.7%-1.2%+8.7%
Q1 2024+5.9%-0.6%-2.2%
Q4 2023-25.2%-32.7%-24.5%
Q3 2023+4.7%+9.9%+21.9%
Q2 2023-1.9%-3.6%+9.7%
Q1 2023+0.8%+8.7%+11.2%
Q4 2022+13.7%+20.8%+59.2%
Q3 2022+3.9%+4.4%-4.8%
Q2 2022-3.0%-0.6%-15.7%
Q1 2022+0.7%-1.7%+2.3%
Q4 2021-2.9%-1.0%+7.4%
Q3 2021-6.1%-5.6%-16.7%
Q2 2021-3.5%-0.4%-4.6%
Q1 2021-3.7%-6.3%+0.9%
Q4 2020+5.8%+5.8%+7.7%
Q3 2020+13.0%+7.8%+18.6%
Q2 2020-0.8%+7.9%+0.1%
Q1 2020-4.7%-9.1%-2.1%
Q4 2019+3.8%-0.9%-17.2%
Q3 2019-3.2%+1.9%+2.7%
Q2 2019+2.7%+1.1%-1.9%
Q1 2019-0.6%+0.8%+0.6%
Q4 2018+7.2%+8.8%+3.4%
Q3 2018-0.6%+0.7%-1.1%
Q2 2018+0.5%+1.4%+3.0%
Q1 2018-1.7%-2.0%-1.5%
Q4 2017-7.2%-4.1%-3.4%
Q3 2017-23.0%-17.7%-10.7%
Q2 2017-0.1%+1.5%+29.4%
Q1 2017-11.9%-13.3%-11.8%
Q4 2016+0.6%-7.6%-6.6%
Q3 2016+1.5%+11.7%+17.9%
Q2 2016-0.2%-0.6%+0.7%
Q1 2016+7.6%
Q4 2015+16.2%
Q3 2015-13.0%
Q2 2015+0.9%
Q1 2015-1.9%
Q4 2014-3.5%
Q3 2014-8.6%
Q2 2014+5.6%
Q1 2014-10.1%
Q4 2013+2.1%
Q3 2013-4.7%
Q2 2013+3.0%
Q1 2013-0.7%
Q4 2012+1.7%
Q3 2012+1.1%
Q2 2012+4.2%
Q1 2012-3.1%
Q2 2011+1.7%
Q4 2011+1.7%
Q3 2011-3.6%
Q1 2011+16.5%
Q4 2010-5.4%
Q2 2010-5.4%
Q3 2010+11.6%
Q1 2010+4.0%
Q2 2009+6.2%
Q4 2007+6.2%
Q4 2009+6.2%
Q3 2008-18.8%
Q1 2009-18.8%
Q3 2009-18.8%
Q4 2008-6.9%

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