NYSE$CRD-A

Crawford & Company · Q3 2022 earnings

Q3 2022 earnings · · Investor relations

Briefing

Crawford & Company reported a net loss due to a non-cash goodwill impairment, while revenues experienced a slight increase.

Crawford & Company's Q3 2022 results reflect a slight revenue increase but a net loss attributable to shareholders due to a non-cash goodwill impairment. While revenues increased by 2% compared to the same period last year, the company recorded a non-cash goodwill impairment of $36.8 million, impacting net income. Non-GAAP adjusted EBITDA was $21.9 million, compared to $29.5 million in the prior year.

  • Revenues before reimbursements increased by 2% year-over-year, reaching $294.9 million.
  • The company recorded a non-cash goodwill impairment of $36.8 million.
  • Net loss attributable to shareholders was $(15.1) million, compared to a net income of $11.2 million in the same period last year.
  • Non-GAAP net income attributable to shareholders totaled $7.9 million, compared to $13.4 million in the same period last year.

Headline financials

Total Revenue

$306M

Previous: $298M+3.0%
EPS (adj)

$0.16

Previous: $0.25-36.0%
Adjusted EBITDA

$21.9M

Previous: $29.5M-25.9%
Operating Margin

4.8%

Previous: 7.2%-33.3%
Capital Expenditures

-$4.98M

Previous: -$5.25M+5.1%
Free Cash Flow

-$20.1M

Previous: $5.94M-438.6%
Net Income

-$15.1M

Previous: $11.2M-235.3%
Operating Income

-$331M

Previous: -$281M-17.8%
Gross Profit

$73.7M

Previous: $77.5M-4.9%
Cash & Equivalents

$33.1M

Previous: $36.9M-10.4%
Total Assets

$821M

Previous: $806M+1.7%

Revenue & EPS history

Crawford · Revenue · Quarterly

$306M

Q3 2022+3%vs Q3 2021
Beat estimate in 7 of 13 quarters(54%)
ActualEstimate

Revenue by segment

Crawford · $295M total across 4 segments · Q3 2022

  • International Operations
    $86.1M
  • Broadspire
    $78.4M-21.8%
  • North America Loss Adjusting
    $66.8M-46.1%
  • Platform Solutions
    $63.7M-1.0%

Forward guidance

The company remains confident in its strategy and ability to drive growth, take market share, and return value for all stakeholders. However, International Operations remain challenged.

Tailwinds

  • Strategic investments are driving top-line momentum.
  • Platform Solutions delivered double-digit revenue growth.
  • Broadspire continues a steady return toward pre-Covid activity levels.
  • Team responded effectively to recent storm activity in the U.S.

Headwinds

  • International Operations remain challenged.
  • The company recorded a non-cash goodwill impairment of $36.8 million.
  • Net loss attributable to shareholders was $(15.1) million.
  • Consolidated adjusted operating earnings decreased to $14.2 million from $20.8 million in the prior year.
  • Consolidated adjusted EBITDA decreased to $21.9 million from $29.5 million in the prior year.

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 Q3 2022

Historical avgQ3 2022

-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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