Crawford & Company (CRD-B) 8-K Earnings and Non-GAAP Financial Information

SunTrust Robinson Humphrey

Unconference

May 20, 2009

Exhibit 99.1

2

Forward-looking

Statements,

Segment

Operating

Earnings and Non-GAAP Financial Information

Forward

Looking

Statements:

This presentation contains forward-looking statements, including statements about the future financial condition, results of operations and

earnings outlook of Crawford & Company.  Statements, both qualitative and quantitative, that are not historical may be “forward-looking”

statements as defined in the Private Securities Litigation Reform Act of 1995.  Forward-looking statements involve a number of risks and

uncertainties that could cause actual results to differ materially from historical experience or Crawford & Company’s present expectations. 

Accordingly, no one should place undue reliance on forward-looking statements, which speak only as of the date on which they are made. 

Crawford

&

Company

does

not

undertake

to

update

forward-looking

statements

to

reflect

the

impact

of

circumstances

or

events

that

may

arise

or not arise after the date the forward-looking statements are made. Results for any interim period presented herein are not necessarily

indicative

of

results

to

be

expected

for

the

full

year

or

for

any

other

future

period.

For

further

information

regarding

Crawford

&

Company,

and

the risks and uncertainties involved in forward-looking statements, please read Crawford & Company’s reports filed with the United States

Securities

and

Exchange

Commission

and

available

at

www.sec.gov

or

in

the

Investor

Relations

section

of

Crawford

&

Company’s

website

at

www.crawfordandcompany.com.

Segment

Operating

Earnings:

Under Statement of Financial Accounting Standards Number 131, Disclosures about Segments of an Enterprise and Related Information,

segment operating earnings is the primary measure used by the Company to evaluate the results of each of its four operating segments. 

Segment operating earnings exclude income taxes, interest expense, amortization of customer-relationship intangible assets, stock option

expense,

earnings

or

loss

attributable

to

noncontrolling

interests,

and

certain

other

nonrecurring

gains

and

expenses.

Non-GAAP

Financial

Information:

For additional information about the Non-GAAP financial information presented herein, see the Appendix beginning on slide 35.

3

•

World’s largest fully-integrated independent

provider of global claims management solutions.

•

Four reporting segments:

–

International Operations

•

Serves the global insurance industry and multi-national

corporations

–

U.S. Property & Casualty

•

Serves the U.S. insurance company market

–

Broadspire

•

Serves large national accounts, carriers and self-

insured entities

–

Legal Settlement Administration

•

Provides administration for class action settlements

and bankruptcy matters

Our Market Leading Global Businesses

4

Positioned for a Global Economy

More than 700 locations in 63 countries

5

Agenda

•

Crawford Strategic Objectives

•

Financial Results

•

Segment Overview

•

Summary

“We intend to continue to build upon our

operational improvements as we move

through 2009.”

-

Jeffrey T. Bowman, President & CEO

6

WORKING

TOGETHER:

the

Crawford

Difference

The

Crawford

Difference

lives

in

our:

•

Expansive global footprint

•

Innovative technological solutions

•

Fresh approach to our service delivery model

•

Employee expertise, and

•

Razor-sharp focus on consistently delivering industry-leading

results to our clients. 

It is the result of more than 9,000 employees

working together everyday and in every way to build

the

Crawford Difference

7

Strategic Goals: 2009 -

2011

•

Leverage and grow Crawford & Company’s position as

the world’s largest independent provider of claims

solutions.

•

Further improve working capital management.

•

Implement innovative, value-added solutions that drive

quality and results.

•

Become a premier employer.

8

The Crawford System of Claims Solutions

SM

The

System

is

the

most

comprehensive

global,

integrated

solution

for

all corporate, insurer, and re-insurer claims administration.

9

Strategic Objectives

•

Execute global launch of The Crawford System of Claims

Solutions

to

dramatize

our

competitive

advantages,

reinforce

our industry leadership, and clarify our portfolio of businesses.

•

Expand Key Account Management to improve sales and

marketing initiatives to win more business.

•

Continue focus on employee training and development.

•

Ensure that our pay for performance culture builds a results

oriented business.

•

Implement a global Intranet to improve internal communications.

SM

10

Strategic Objectives, cont’d

•

Implement Information and Communications Technology strategies

to leverage technology gains to maximize operating efficiencies and

improve data management.

•

Continue

successful

rollout

of

RiskTech

within

Broadspire

•

Remain a target-driven organization that meets it promises to clients,

employees and shareholders.

Financial Review

12

Diversified Business and Clients

Fiscal 2008 Revenues of $1.05 Billion

•

Property and Casualty

Services

•

Global Technical Services

•

Global Marine and

Transportation

•

Global Markets

42.4%

29.7%

7.1%

International

Operations

U.S. Property & Casualty

•

Property and Casualty Services

•

Catastrophe Management Services

•

Auto Appraisal Services

•

Centralized Claim Administration

•

Strategic Warranty Services

20.7%

Legal Settlement Administration

•

Class Actions

–

Securities

–

Product Liability

•

Bankruptcy Administration

Broadspire

•

Workers’

Compensation  and

Liability Claims Administration

•

Medical and Case Management

•

Long-Term Care Services

•

Integrated Disability Management

•

Risk Management Information

Systems (RSG)

•

Claim Triage Solution (e-Triage)

•

No single client over 6% of total revenue

•

Top 20 Clients represent 34.7% of total revenue

•

Top 50 Clients represent 48.5% of total revenue

13

Fiscal 2008 Financials

Year Ended December 31

2008

2007

% Change

Revenues:

Revenues Before Reimbursements

$1,048,582

$975,143

8%

Reimbursements

87,334

76,135

15%

Total Revenues

1,135,916

1,051,278

8%

Costs and Expenses:

Cost of Services Provided, Before Reimbursements

770,724

733,392

5%

Reimbursements

87,334

76,135

15%

Total Cost of Services

858,058

809,527

6%

Selling, General, and Administrative Expenses

215,625

211,737

2%

Corporate Interest Expense, Net

17,622

17,326

2%

Restructuring Costs

3,300

-

nm

Total Costs and Expenses

1,094,605

1,038,590

5%

Gain on Sale of Former Corporate Headquarters

-

4,844

nm

Gains on Sales of Businesses

2,512

3,980

-37%

Income Before Income Taxes

43,823

21,512

104%

Provision for Income Taxes

11,564

5,396

114%

Net Income

$32,259

$16,116

100%

Earnings Per Share:

Basic

$0.64

$0.32

98%

Diluted

$0.62

$0.32

94%

nm = not meaningful

* does not reflect accounting principles adopted in fiscal 2009

CONDENSED CONSOLIDATED STATEMENTS OF INCOME*

(In Thousands, Except Earnings Per Share and Percentages)

Unaudited

14

Fiscal 2008 Financials

Crawford & Company

Balance Sheet Highlights*

As of December 31, 2008 and December 31, 2007

in thousands, except percentages

    December 31,

    December 31,

          ��     2008

                2007

Change

Cash and cash equivalents

$73,124

$50,855

$22,269

Accounts receivable, net

157,430

178,528

(21,098)

Work in process

99,115

136,652

(37,537)

     Total receivables

256,545

315,180

(58,635)

Deferred revenues, net                   

95,670

111,036

(15,366)

Pension liabilities

179,542

76,977

102,565

Current portion of long-term debt, capital leases

and short-term borrowings

15,650

31,864

(16,214)

Long-term debt

181,206

183,449

(2,243)

     Total debt

196,856

215,313

(18,457)

Total stockholders' equity

175,551

254,215

(78,664)

Net debt

123,732

164,458

(40,726)

Total debt / capitalization

53%

46%

*Does not reflect accounting principles adopted in fiscal 2009

15

Fiscal 2008 Financials

Crawford & Company

Free Cash Flow  (non-GAAP)

For the years ended December 31, 2008 and 2007

In Thousands

2008

2007

Variance

Net Income

$32,259

$16,116

$16,143

Plus: Depreciation / Non-Cash Items

38,923

31,692

7,231

Less: Special Credits

(2,512)

(8,824)

6,312

Less: Working Capital Growth

20,221

(15,151)

35,372

Less: U.S. Pension Contributions

(17,916)

(549)

(17,367)

Operating Cash Flow

70,975

23,284

47,691

Less: Capital Expenditures

(19,336)

(21,553)

2,217

Less: Internally Developed Software

(12,675)

(6,556)

(6,119)

Less: Mandatory Principal Payments

(2,100)

(2,100)

-

Free Cash Flow (non-GAAP)

$36,864

($6,925)

$43,789

16

First Quarter 2009 Financials

Quarter Ended March 31

2009

2008

% Change

Revenues:

    Revenues Before Reimbursements

$236,083

$255,512

-8%

    Reimbursements

14,200

19,161

-26%

Total Revenues

250,283

274,673

-9%

Costs and Expenses:

         Cost of Services Before Reimbursements

175,162

186,953

-6%

         Reimbursements

14,200

19,161

-26%

    Total Cost of Services

189,362

206,114

-8%

    Selling, General, and Administrative

51,488

50,503

2%

    Corporate Interest Expense, Net

3,485

4,416

-21%

    Restructuring Costs

1,815

-

nm

Total Costs and Expenses

246,150

261,033

-6%

Income Before Income Taxes

4,133

13,640

-70%

Provision for Income Taxes

1,120

4,644

-76%

Net Income

3,013

8,996

-67%

Add:  Net Loss Attributable to Noncontrolling Interests

69

72

-4%

Net Income Attributable to Crawford & Company

$3,082

$9,068

-66%

Earnings Per Share - Basic and Diluted

$0.06

$0.18

-67%

nm = not meaningful

CRAWFORD  &  COMPANY

CONDENSED CONSOLIDATED STATEMENTS OF INCOME

Unaudited

(In Thousands, Except Earnings Per Share Amounts and Percentages)

17

Revenue and Earnings Per Share Bridge

1

st

Quarter

2008

to

2009

In millions, except per share amounts

Revenues before

Reimbursements

Net

Income

attributable

to Crawford

& Company

Diluted

EPS

1

st

quarter 2008 results

$255.5

$9.1

$0.18

(Less)/Add:

Foreign currency impact in 2009

(23.4)

(1.4)

(0.03)

Increase in pension expense in 2009

-

(2.3)

(0.05)

Restructuring costs in 2009

-

(1.2)

(0.02)

Bad debt recovery in 2008

-

(0.9)

(0.02)

Operating changes

4.0

(0.2)

(  

-

)

1

st

quarter 2009 results

$236.1

$3.1

$0.06

Operating Segments

19

60

70

80

90

100

110

1Q 2009

1Q 2008

Revenue

6

6.5

7

7.5

8

8.5

9

1Q 2009

1Q 2008

Operating Earnings

$ in millions

$ in millions

First Quarter 2009 Financials

$90.9

$106.7

$7.5

$9.0

Revenues down $23.4 million due to strong U.S. dollar

Revenues increased 7.0% on a constant dollar basis

Summary Results, International Operations

For the quarters ended March 31, 2009 and 2008

in thousands except percentages

Unaudited

2009

2008

% Change

Revenues

90,872

$    

106,710

$ 

-14.8%

Total Operating Expenses

83,407

97,723

-14.6%

Operating Earnings

7,465

$      

8,987

$     

-16.9%

Operating Margin

8.2%

8.4%

20

International (excluding U.S.) Property &

Casualty Insurance Market Opportunities

Crawford

#2

#3

Regional/Local Providers

•

Only 4.4% of dollars spent by rest of world (ROW) carriers on claims

are outsourced to third party independent adjusters.

•

Very

few

global

claims

providers

–

Crawford

is

the

largest

•

As ROW insurance carriers look to consolidate claims services

vendors, small firms lose market share.

ROW Unallocated Loss Adjusting Expenses

$41.1 Billion

95.6%

$1.9 Billion

4.4%

$985 Million

51.8%

$140 Million

7.4%

ROW Outsourced Loss Adjusting Expenses

$445 Million

23.4%

Source: Crawford & Company (estimate)

$330 Million

17.4%

Insurance Carrier Internal Claims Dept.

Outsourced

21

0

10

20

30

40

50

60

1Q 2009

1Q 2008

Revenue

5.7

5.8

5.9

6.0

6.1

6.2

6.3

1Q 2009

1Q 2008

Operating Earnings

$ in millions

$ in millions

$49.5

$55.1

$5.9

$6.2

Catastrophe revenues up $3.0 million due to severe weather

Cases up nearly 7% in 2009 quarter

Prior year period includes bad debt recovery of $389,000

First Quarter 2009 Financials

Summary Results, U.S. Property & Casualty

For the quarters ended March 31, 2009 and 2008

in thousands except percentages

Unaudited

2009

2008

% Change

Revenues

55,052

$    

49,510

$   

11.2%

Total Operating Expenses

48,882

43,561

12.2%

Operating Earnings

6,170

$      

5,949

$     

3.7%

Operating Margin

11.2%

12.0%

22

Insurance Carrier Internal Claims Dept.

Outsourced

4,000+ Local & Regional Providers

National Providers

Crawford

U.S. Unallocated Loss Adjusting Expenses

$21.7

Billion

86.1%

$3.5 Billion

13.9%

$3 Billion

86%

$280 Million

8%

U.S. Outsourced Loss Adjusting Expenses

$216 Million

6%

Source: Cochran, Caronia

& Co. and Crawford & Company

•

Approximately 14% of dollars spent by U.S. carriers on claims services are

outsourced to third parties

–

High propensity to outsource non-core lines and/or non-core states

•

Outsourced claims service provider market is highly fragmented

–

Crawford is the market leader with approximately 6%

•

As insurance carriers look to consolidate claims services vendors, small firms lose

market share

–

Most U.S. carriers are dramatically reducing the number of vendors on “approved lists”

U.S. Insurance Market

23

U.S. Property & Casualty Growth

Opportunities

•

Strategic Growth

–

Target large insurers who are consolidating their vendor lists and

strive to ensure Crawford is named an approved vendor

•

Continuous quality improvement

•

Efforts toward training and product development

–

Target markets

•

Small and mid-market carriers

•

Managing general agents (London Market)

•

Non-standard insurers

•

Property & casualty programs run by self-insured entities

•

Organic Growth

–

Key account plans for top clients

–

Account managers for each major client

–

Easily accessible database of client instructions

24

40

50

60

70

80

90

1Q 2009

1Q 2008

Revenue

-3

-2

-1

0

1

2

1Q 2009

1Q 2008

Operating Earnings (Loss)

$ in millions

$ in millions

$74.6

$80.3

$1.7

($2.0)

Revenues and earnings declined due to lower workers’

compensation claim referrals

Impact of economic crisis being felt most by this segment

First Quarter 2009 Financials

Summary Results, Broadspire

For the quarters ended March 31, 2009 and 2008

in thousands except percentages

Unaudited

2009

2008

% Change

Revenues

74,601

$    

80,313

$   

-7.1%

Total Operating Expenses

76,555

78,566

-2.6%

Operating Earnings (Loss)

(1,954)

$     

1,747

$     

nm

Operating Margin

-2.6%

2.2%

25

Broadspire Positioning

Third Largest TPA in Workers’

Compensation/Liability Market

Products and Services:

Workers’

Compensation Claims Services

Auto and General Liability Claims Services

Medical and Disability Management Services

Long-Term Care Services

Risk Management Information Systems (Risk Sciences Group)

Claim Triage Solution (e-Triage)

Broadspire

Competitor

A

Competitor

B

Competitor

C

Competitor

D

Claim

X

X

X

X

X

RMIS

X

X

X

X

X

Med Bill Review

X

X

TCM/UM

X

X

FCM

X

Peer Review

X

Claim Triage

X

Long Term Care

X

Comparison of Services Provided with Inhouse

Resources

26

U.S. TPA Market Opportunities

•

Self-insured entities and captives outsource practically all of

their claims services

•

Outsourced total claims management is fragmented

•

Local and regional providers unable to leverage technology

investment

9 Largest Providers

Broadspire

Local and Regional Providers

$0.4 Billion

$3.2 Billion

Unallocated Loss Adjusting Expenses

Outsourced Loss Adjusting Expenses

$1.8 Billion

55.9%

$1.1 Billion

34.1%

$312 Million

10.0%

Source: Cochran, Caronia & Co. and Crawford & Company

Internal

Outsourced

27

10.0

12.0

14.0

16.0

18.0

20.0

1Q 2009

1Q 2008

Revenue

0.0

0.5

1.0

1.5

2.0

2.5

1Q 2009

1Q 2008

Operating Earnings

$ in millions

$ in millions

$15.6

$19.0

$2.5

$1.5

Revenues and operating earnings decrease reflects ongoing

slowdown in class action settlements

Bankruptcy-related revenues increasing

Backlog of $39.0 million

First Quarter 2009 Financials

Summary Results, Legal Settlement Administration

For the quarters ended March 31, 2009 and 2008

in thousands except percentages

Unaudited

2009

2008

% Change

Revenues

15,558

$    

18,979

$   

-18.0%

Total Operating Expenses

14,031

16,482

-14.9%

Operating Earnings

1,527

$      

2,497

$     

-38.8%

Operating Margin

9.8%

13.2%

28

Products and Services

•

The Garden City Group, Inc. (GCG) provides these core services:

–

GCG Class Action Services

provides technology-intensive

administrative services for plaintiff and defense counsel and corporate

defendants to expedite high-volume class action settlements.

•

GCG Class Action Services has administered a diverse portfolio of

litigation settlements, including:

–

sensitive and high-profile consumer, employment, human rights, mass tort,

antitrust, product liability and securities cases.

–

GCG Bankruptcy Services

offers cost-effective, end-to-end solutions

for managing the administration of bankruptcy cases under Chapter

11.

–

GCG Communications

specializes in legal notice programs for

successful case administration. GCG Communications offers a range

of complementary services for developing and implementing effective

legal notice programs worldwide.

29

0

5

10

15

20

25

30

35

AB Data,

Ltd.

Berdon

LLP

Complete

Claims

Solutions, LLC

Heffler

Radetich

&

Saitra

LLP

Gilardi

and

Co., LLC

Garden

City Group

Securities Class Action Cases

Source: RiskMetrics

Group (SCAS Top 100 since 1995, September 30, 2008)

4

4

4

11

26

33

GCG has handled one-third of the largest 100 securities class action cases

Summary

31

Crawford is “Positioned for Growth”

•

Access to growing global markets

•

Increasing market share both domestic and internationally

•

Crawford expects to benefit from global consolidation of TPA

vendors

•

Diverse customer base

•

High customer retention rates

•

Emphasis on quality and value provided sustains client confidence

•

Disciplined management

•

Improved  financial performance

•

Consolidated revenues, earnings, margins, and cash flows

improved in 2008

•

Investment in enhanced technology in all business

units

32

Execution Strategy

•

Relentless dedication to outstanding execution

•

Each strategic action and intention translated into monthly,

measurable, objectives and outcomes

•

Systematic tracking of interim milestones better enables leadership

control and proactive decision making

•

Reinforce accountability, results orientation and strategic success

throughout the year

•

Provide an effective and more detailed map for the enterprise and

each business unit to achieve 2009 objectives

33

2009 Guidance

•

Reaffirming Full Year 2009 Guidance:

–

Consolidated revenue before reimbursements between $960

million and $980 million

–

Consolidated operating earnings between $50.5 million and

$55.8 million

–

After reflecting stock-based compensation expense, net

corporate interest expense, customer-relationship intangible

amortization expense, special items and income taxes, net

income attributed to Crawford & Company on a GAAP basis

between $22.0 million and $25.0 million

–

Earnings per share of $.41 to $.47

34

WORKING

TOGETHER:

the

Crawford

Difference

“Crawford & Company will be known as a target driven

corporation that meets its promises to clients and

shareholders.”

Jeffrey T. Bowman

President and CEO

35

Appendix: Non-GAAP Financial Information

Reimbursements for Out-of-Pocket Expenses

In the normal course of our business, we sometimes pay for certain out-of-pocket expenses that are reimbursed by our clients. Under GAAP,

these out-of-pocket expenses and associated reimbursements are reported as revenues and expenses in our Consolidated Statement of

Income. In this presentation, we do not believe it is informative to include the GAAP-required gross up of our revenues and expenses for

these pass-through reimbursed expenses. The amounts of reimbursed expenses and related revenues offset each other in our

Consolidated Statement of Income with no impact to our net income. Unless noted in this presentation, revenue and expense amounts

exclude reimbursements for out-of-pocket expenses.

Net debt

Management believes that net debt is useful because it provides investors with an estimate of what the Company’s debt would be if all available

cash

was

used

to

pay

down

the

debt

of

the

Company.

The

measure

is

not

meant

to

imply

that

management

plans

to

use

all

available

cash

to pay down debt.

Deferred Revenues, net

Deferred

Revenues,

net

is

computed

as

the

sum

of

the

current

and

noncurrent

deferred

revenue

as

reported

on

our

consolidated

balance

sheet

less

the

sum

of

the

current

and

noncurrent

receivable

held

in

trust

to

be

released

to

us

as

payment

to

service

this

revenue.

The

current

portion

of

the

receivable

held

in

trust

is

reported

as

a

component

of

Accounts

receivable

and

the

noncurrent

portion

is

reported

as

a

component

of

Other

Noncurrent

Assets

in

our

consolidated

balance

sheet.

The

funds

represented

by

the

amount

of

the

receivable

held

in

trust are released to the Company over time to partially offset the costs of servicing the deferred revenue.  Management believes that

subtracting the receivable held in trust from deferred revenue provides investors with a snapshot of what the net cash costs will be to

service the deferred revenue in the future.

Free Cash Flow

Management believes free cash flow is useful to investors as it presents the amount of cash the Company has generated that can be used for

other purposes, including additional contributions to the Company’s defined benefit pension plans, discretionary prepayments of

outstanding

borrowings

under

our

credit

agreement,

and

return

of

capital

to

shareholders,

among

other

purposes.

It

does

not

represent

the residual cash flow of the Company available for discretionary expenditures. 

36

Appendix: Non-GAAP Financial Information

Crawford and Company

(in $000's)

March 31,

December 31,

December 31,

2009

2008

2007

Deferred Revenues, Net

Deferred revenues, current

57,280

$    

59,679

$       

64,363

$       

Deferred revenues, noncurrent

39,758

42,795

58,925

Total deferred revenues

97,038

102,474

123,288

Less:

Receivable held in trust included in accounts receivable

2,267

2,121

4,693

Receivable held in trust included in other noncurrent assets

4,230

4,683

7,559

Deferred revenues, net

90,541

$    

95,670

$       

111,036

$     

Net debt

Short-term borrowings

9,758

$      

13,366

$       

29,389

$       

Current installments of long-term debt and capital leases

2,316

2,284

2,475

Long-term debt and capital leases, less current installments

180,565

181,206

183,449

Total debt

192,639

196,856

215,313

Less:

Cash and cash equivalents

42,526

73,124

50,855

Net debt

150,113

$  

123,732

$     

164,458

$     

SunTrust Robinson Humphrey

Unconference

May 20, 2009