Crawford & Company (CRD-B) 8-K Crawford & Company Reports Strong 2017 Second Quarter Results

CRAWFORD & COMPANY 1001 SUMMIT BOULEVARD, ATLANTA, GEORGIA 30319 (404) 300-1000

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, except per share amounts)
Revenues Before Reimbursements:
U.S. Services	$	58,553		$	58,886		$	56,530		$	57,415		$	231,384
International	116,858			122,617			120,950			116,837			477,262
Broadspire	76,200			75,099			76,676			74,002			301,977
Garden City Group	25,623			25,741			23,130			24,169			98,663
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:
U.S. Services	$	35,476		$	32,529		$	32,608		$	35,570		$	136,183
% of related revenues before reimbursements	60.6		%	55.2		%	57.7		%	62.0		%	58.9		%
International	76,329			77,238			75,829			74,628			304,024
% of related revenues before reimbursements	65.3		%	63.0		%	62.7		%	63.9		%	63.7		%
Broadspire	41,622			42,240			41,891			41,284			167,037
% of related revenues before reimbursements	54.6		%	56.2		%	54.6		%	55.8		%	55.3		%
Garden City Group	17,320			16,500			14,975			16,021			64,816
% of related revenues before reimbursements	67.6		%	64.1		%	64.7		%	66.3		%	65.7		%
Total	$	170,747		$	168,507		$	165,303		$	167,503		$	672,060
% of Revenues before reimbursements	61.6		%	59.7		%	59.6		%	61.5		%	60.6		%
Expenses Other than Direct Compensation, Fringe
Benefits & Non-Employee Labor:
U.S. Services	$	14,048		$	16,797		$	14,568		$	14,164		$	59,577
% of related revenues before reimbursements	24.0		%	28.6		%	25.8		%	24.6		%	25.7		%
International	33,247			34,254			31,661			30,828			129,990
% of related revenues before reimbursements	28.5		%	27.9		%	26.2		%	26.4		%	27.2		%
Broadspire	25,873			26,330			26,522			26,212			104,937
% of related revenues before reimbursements	34.0		%	35.1		%	34.6		%	35.4		%	34.8		%
Garden City Group	7,031			6,683			6,003			6,905			26,622
% of related revenues before reimbursements	27.4		%	26.0		%	26.0		%	28.6		%	27.0		%
Total, before reimbursements	80,199			84,064			78,754			78,109			321,126
% of Revenues before reimbursements	28.9		%	29.8		%	28.4		%	28.7		%	28.9		%
Reimbursements	13,674			15,326			18,101			21,201			68,302
Total	$	93,873		$	99,390		$	96,855		$	99,310		$	389,428
% of Revenues	32.3		%	33.4		%	32.8		%	33.8		%	33.1		%
Segment Operating Earnings:
U.S. Services	$	9,029		$	9,560		$	9,354		$	7,681		$	35,624
% of related revenues before reimbursements	15.4		%	16.2		%	16.5		%	13.4		%	15.4		%
International	7,282			11,125			13,460			11,381			43,248
% of related revenues before reimbursements	6.2		%	9.1		%	11.1		%	9.7		%	9.1		%
Broadspire	8,705			6,529			8,263			6,506			30,003
% of related revenues before reimbursements	11.4		%	8.7		%	10.8		%	8.8		%	9.9		%
Garden City Group	1,272			2,558			2,152			1,243			7,225
% of related revenues before reimbursements	5.0		%	9.9		%	9.3		%	5.1		%	7.3		%
Deduct:
Unallocated corporate and shared costs	(4,618		)	(5,889		)	(6,947		)	(6,517		)	(23,971		)
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		)
Income before income taxes	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