Exhibit 99.2
Crawford & Company
Reconciliation of Consolidated Operating Earnings to Consolidated Net Income
and Reconciliation of Consolidated Revenues before Reimbursed Expenses to Total Consolidated Revenues
Used to compute 12-Months Trailing Amounts
(in thousands)
2008 | 2007 | 2006 | ||||||||||||||||||||||||||||||||||||||||||
3Q | 2Q | 1Q | 4Q | 3Q | 2Q | 1Q | 4Q | 3Q | 2Q | 1Q | ||||||||||||||||||||||||||||||||||
Consolidated Operating Earnings (1) | $ | 15,570 | $ | 19,159 | $ | 19,831 | $ | 10,056 | $ | 8,917 | $ | 10,736 | $ | 7,521 | $ | 6,671 | $ | 7,689 | $ | 7,518 | $ | 10,317 | ||||||||||||||||||||||
Net Corporate Interest Expense | (4,334 | ) | (4,656 | ) | (4,416 | ) | (4,154 | ) | (4,572 | ) | (4,232 | ) | (4,368 | ) | (3,322 | ) | (839 | ) | (594 | ) | (998 | ) | ||||||||||||||||||||||
Stock Option Expense | (243 | ) | (279 | ) | (195 | ) | (290 | ) | (260 | ) | (346 | ) | (295 | ) | (355 | ) | (248 | ) | (351 | ) | (266 | ) | ||||||||||||||||||||||
Amortization of Customer-Relationship Intangible Assets | (1,507 | ) | (1,506 | ) | (1,508 | ) | (1,507 | ) | (1,575 | ) | (1,507 | ) | (1,436 | ) | (1,124 | ) | — | — | — | |||||||||||||||||||||||||
Income Taxes | (2,564 | ) | (4,786 | ) | (4,644 | ) | (801 | ) | 943 | (3,443 | ) | (2,095 | ) | (72 | ) | (3,423 | ) | (2,360 | ) | (3,205 | ) | |||||||||||||||||||||||
Other Gains/Expenses | — | — | — | — | — | 4,844 | 3,980 | (3,096 | ) | 3,069 | — | — | ||||||||||||||||||||||||||||||||
Consolidated Net Income (Loss) on a GAAP Basis | $ | 6,922 | $ | 7,932 | $ | 9,068 | $ | 3,304 | $ | 3,453 | $ | 6,052 | $ | 3,307 | $ | (1,298 | ) | $ | 6,248 | $ | 4,213 | $ | 5,848 | |||||||||||||||||||||
Total Consolidated Revenues on a GAAP Basis | $ | 274,673 | $ | 289,266 | $ | 291,332 | $ | 266,485 | $ | 265,970 | $ | 256,231 | $ | 262,592 | $ | 246,608 | $ | 222,333 | $ | 209,767 | $ | 221,672 | ||||||||||||||||||||||
Less Reimbursed Expenses (2) | (19,161 | ) | (26,001 | ) | (24,416 | ) | (21,261 | ) | (20,196 | ) | (15,694 | ) | (18,984 | ) | (18,352 | ) | (25,276 | ) | (17,164 | ) | (20,066 | ) | ||||||||||||||||||||||
Consolidated Revenues before Reimbursed Expenses | $ | 255,512 | $ | 263,265 | $ | 266,916 | $ | 245,224 | $ | 245,774 | $ | 240,537 | $ | 243,608 | $ | 228,256 | $ | 197,057 | $ | 192,603 | $ | 201,606 | ||||||||||||||||||||||
2005 | 2004 | |||||||||||||||||||||||||||
4Q | 3Q | 2Q | 1Q | 4Q | 3Q | 2Q | ||||||||||||||||||||||
Consolidated Operating Earnings (1) | $ | 10,143 | $ | 4,255 | $ | 5,506 | $ | 5,181 | $ | 13,190 | $ | 8,371 | $ | 5,731 | ||||||||||||||
Net Corporate Interest Expense | (929 | ) | (1,334 | ) | (1,355 | ) | (1,527 | ) | (1,267 | ) | (1,466 | ) | 534 | |||||||||||||||
Stock Option Expense | — | — | — | — | — | — | — | |||||||||||||||||||||
Amortization of Customer-Relationship Intangible Assets | — | — | — | — | — | — | — | |||||||||||||||||||||
Income Taxes | (3,262 | ) | (1,034 | ) | (1,470 | ) | (1,293 | ) | (4,205 | ) | (5,953 | ) | (725 | ) | ||||||||||||||
Other Gains/Expenses | — | — | — | — | — | 8,573 | — | |||||||||||||||||||||
Consolidated Net Income (Loss) on a GAAP Basis | $ | 5,952 | $ | 1,887 | $ | 2,681 | $ | 2,361 | $ | 7,718 | $ | 9,525 | $ | 5,540 | ||||||||||||||
Total Consolidated Revenues on a GAAP Basis | $ | 242,123 | $ | 206,220 | $ | 206,781 | $ | 199,643 | $ | 222,885 | $ | 217,508 | $ | 186,533 | ||||||||||||||
Less Reimbursed Expenses (2) | (25,196 | ) | (21,500 | ) | (20,779 | ) | (15,309 | ) | (17,059 | ) | (31,638 | ) | (14,517 | ) | ||||||||||||||
Consolidated Revenues before Reimbursed Expenses | $ | 216,927 | $ | 184,720 | $ | 186,002 | $ | 184,334 | $ | 205,826 | $ | 185,870 | $ | 172,016 | ||||||||||||||
(1) | Operating Earnings is a non-GAAP financial measure representing earnings before net corporate interest expense, stock option expense, amortization expense for customer-relationship intangible assets, income taxes, and certain other gains and expenses. |
(2) | Out-of-pocket expenses are sometimes incurred by the Company in performing certain services for its clients. Some of these expenses are reimbursed by clients, and these reimbursed expenses are included in total revenues under GAAP. The amounts of reimbursed expenses and related revenues offset each other in the Company’s consolidated income statement with no impact on net income. The Company often prefers to discuss its revenues and operating results without consideration of these pass-through expenses and related reimbursements. |