Net Income Attributable to Shareholders of Crawford & Company per Common Share | 3 Months Ended |
Mar. 31, 2014 |
Earnings Per Share [Abstract] | ' |
Net income attributable to shareholders of Crawford & Company per common share | ' |
Net Income Attributable to Shareholders of Crawford & Company per Common Share |
The Company computes earnings per share of its non-voting Class A Common Stock ("CRDA") and voting Class B Common Stock ("CRDB") using the two-class method, which allocates the undistributed earnings in each period to each class on a proportionate basis. The Company's Board of Directors has the right, but not the obligation, to declare higher dividends on the CRDA shares than on the CRDB shares, subject to certain limitations. In periods when the dividend is the same for CRDA and CRDB or when no dividends are declared or paid to either class, the two-class method generally will yield the same earnings per share for CRDA and CRDB. During the first quarter of each of 2014 and 2013 the Board of Directors declared a higher dividend on CRDA than on CRDB. |
The computations of basic net income attributable to shareholders of Crawford & Company per common share were as follows: |
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| Three months ended |
| March 31, | | March 31, |
2014 | 2013 |
(in thousands, except earnings per share) | CRDA | CRDB | | CRDA | CRDB |
Earnings per share - basic: | | | | | |
Numerator: | | | | | |
Allocation of undistributed earnings | $ | 2,281 | | $ | 1,882 | | | $ | 4,250 | | $ | 3,564 | |
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Dividends paid | 1,502 | | 987 | | | 1,184 | | 741 | |
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Net income available to common shareholders, basic | 3,783 | | 2,869 | | | 5,434 | | 4,305 | |
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Denominator: | | | | | | | | | |
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Weighted-average common shares outstanding, basic | 29,918 | | 24,690 | | | 29,446 | | 24,690 | |
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Earnings per share - basic | $ | 0.13 | | $ | 0.12 | | | $ | 0.18 | | $ | 0.17 | |
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The computations of diluted net income attributable to shareholders of Crawford & Company per common share were as follows: |
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| Three months ended |
| March 31, | | March 31, |
2014 | 2013 |
(in thousands, except earnings per share) | CRDA | CRDB | | CRDA | CRDB |
Earnings per share - diluted: | | | | | |
Numerator: | | | | | |
Allocation of undistributed earnings | $ | 2,317 | | $ | 1,846 | | | $ | 4,316 | | $ | 3,498 | |
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Dividends paid | 1,502 | | 987 | | | 1,184 | | 741 | |
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Net income available to common shareholders, diluted | 3,819 | | 2,833 | | | 5,500 | | 4,239 | |
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Denominator: | | | | | |
Weighted-average common shares outstanding, basic | 29,918 | | 24,690 | | | 29,446 | | 24,690 | |
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Weighted-average effect of dilutive securities | 1,060 | | — | | | 1,016 | | — | |
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| 30,978 | | 24,690 | | | 30,462 | | 24,690 | |
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Earnings per share - diluted | $ | 0.12 | | $ | 0.11 | | | $ | 0.18 | | $ | 0.17 | |
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Listed below are the shares excluded from the denominator in the above computation of diluted earnings per share for CRDA because their inclusion would have been antidilutive: |
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| Three months ended | | | | | | | | | |
(in thousands) | March 31, | | March 31, | | | | | | | | | |
2014 | 2013 | | | | | | | | | |
Shares underlying stock options excluded due to the options' respective exercise prices being greater than the average stock price during the period | — | | | 703 | | | | | | | | | |
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Performance stock grants excluded because performance conditions had not been met (1) | 2,267 | | | 2,152 | | | | | | | | | |
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(1) | Compensation cost is recognized for these performance stock grants based on expected achievement rates; however, no consideration is given for these performance stock grants when calculating earnings per share until the performance measurements have actually been achieved. As of March 31, 2014, the Company does not expect these performance measurements to be achieved by December 31, 2014. | | | | | | | | | | | | |
The following table details shares issued during the three months ended March 31, 2014 and March 31, 2013. These shares are included from their dates of issuance in the weighted-average common shares used to compute basic earnings per share for CRDA in the table above. |
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| Three months ended | | | | | | | | |
(in thousands) | March 31, | | March 31, | | | | | | | | |
2014 | 2013 | | | | | | | | |
CRDA issued under non-employee director stock plan | 54 | | | 51 | | | | | | | | | |
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CRDA issued under the U.K. ShareSave Scheme | 6 | | | — | | | | | | | | | |
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CRDA issued under Executive Stock Bonus Plan | 195 | | | 245 | | | | | | | | | |
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CRDA issued from stock option plan exercises | 106 | | | 12 | | | | | | | | | |
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In May 2012, the Board of Directors authorized a share repurchase program under which the Company may repurchase up to 2,000,000 shares of its common stock (either CRDA or CRDB or both) until May 2015. Under the repurchase program, repurchases may be made in open market or privately negotiated transactions at such times and for such prices as management deems appropriate, subject to applicable regulatory guidelines. During the quarter ended March 31, 2014, the Company repurchased 174,108 shares of CRDA at an average cost of $7.99 per share. During the quarter ended March 31, 2013, the Company repurchased 30,124 shares of CRDA at an average cost of $4.92 per share. |