Exhibit 99.2
Crawford & Company
Reconciliation of Operating Earnings to Net Income
12-month trailing
(in thousands)
12-month trailing at 2008 | 12-month trailing at 2007 | 12-month trailing at 2006 | ||||||||||||||||||||||||||||||||||||||||||
3Q | 2Q | 1Q | 4Q | 3Q | 2Q | 1Q | 4Q | 3Q | 2Q | 1Q | ||||||||||||||||||||||||||||||||||
Operating Earnings (1) | $ | 64,616 | $ | 57,963 | $ | 49,540 | $ | 37,230 | $ | 33,845 | $ | 32,617 | $ | 29,399 | $ | 32,195 | $ | 35,667 | $ | 32,233 | $ | 30,221 | ||||||||||||||||||||||
Net Corporate Interest Expense | $ | (17,560 | ) | $ | (17,798 | ) | $ | (17,374 | ) | $ | (17,326 | ) | $ | (16,494 | ) | $ | (12,761 | ) | $ | (9,123 | ) | $ | (5,753 | ) | $ | (3,360 | ) | $ | (3,855 | ) | $ | (4,616 | ) | |||||||||||
Stock Option Expense | $ | (1,007 | ) | $ | (1,024 | ) | $ | (1,091 | ) | $ | (1,191 | ) | $ | (1,256 | ) | $ | (1,244 | ) | $ | (1,249 | ) | $ | (1,220 | ) | $ | (865 | ) | $ | (617 | ) | $ | (266 | ) | |||||||||||
Amortization of Customer-Relationship Intangibles | $ | (6,028 | ) | $ | (6,096 | ) | $ | (6,097 | ) | $ | (6,025 | ) | $ | (5,642 | ) | $ | (4,067 | ) | $ | (2,560 | ) | $ | (1,124 | ) | $ | — | $ | — | $ | — | ||||||||||||||
Income Taxes | $ | (12,795 | ) | $ | (9,288 | ) | $ | (7,945 | ) | $ | (5,396 | ) | $ | (4,667 | ) | $ | (9,033 | ) | $ | (7,950 | ) | $ | (9,060 | ) | $ | (12,250 | ) | $ | (9,861 | ) | $ | (8,971 | ) | |||||||||||
Other gains/expenses | $ | — | $ | — | $ | 4,844 | $ | 8,824 | $ | 5,728 | $ | 8,797 | $ | 3,953 | $ | (27 | ) | $ | 3,069 | $ | — | $ | — | |||||||||||||||||||||
Net Income | $ | 27,226 | $ | 23,757 | $ | 21,877 | $ | 16,116 | $ | 11,514 | $ | 14,309 | $ | 12,470 | $ | 15,011 | $ | 22,261 | $ | 17,900 | $ | 16,368 | ||||||||||||||||||||||
(1) | Operating earnings is a non-GAAP financial measure representing earnings before net corporate interest expense, stock option expense, amortization of customer-relationship intangible assets, other gains and expenses, and income taxes. |