Crawford & Company (CRD-B) 8-K Unaudited Pro Forma Condensed Consolidated Statements of Operations

Exhibit 99.1

CRAWFORD & COMPANY

UNAUDITED PRO FORMA CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

(In Thousands, Except Per Share Amounts)

Year Ended December 31, 2017	Historical 2017		Pro Forma Adjustments			Notes			Pro Forma
Revenues:
Revenues Before Reimbursements	$	1,105,832	$	76,200			(a	)	$	1,029,632
Reimbursements		57,877		13,006			(a	)		44,871
Total Revenues		1,163,709		89,206						1,074,503
Costs and Expenses:
Costs of Services Provided, Before Reimbursements		784,111		57,829			(a	)		726,282
Reimbursements		57,877		13,006			(a	)		44,871
Total Costs of Services		841,988		70,835						771,153
Selling, General, and Administrative Expenses		239,840		22,876			(a	)		216,964
Corporate Interest Expense, Net		9,062		—						9,062
Goodwill Impairment Charges		19,598		—			(g	)		19,598
Restructuring and Special Charges		12,084		—			(g	)		12,084
Total Costs and Expenses		1,122,572		93,711						1,028,861
Other Income (Expense)		1,125		—						1,125
Income (Loss) Before Income Taxes		42,262		(4,505	)					46,767
Provision (Benefit) for Income Taxes		15,039		(1,745	)		(b	)		16,784
Net Income (Loss)		27,223		(2,760	)					29,983
Net Loss Attributable to Noncontrolling Interests and Redeemable Noncontrolling Interests		442		—						442
Net Income (Loss) Attributable to Shareholders of Crawford & Company	$	27,665	$	(2,760	)				$	30,425
Earnings (Loss) Per Share - Basic:
Class A Common Stock	$	0.53	$	(0.05	)				$	0.58
Class B Common Stock	$	0.45	$	(0.05	)				$	0.50
Earnings (Loss) Per Share - Diluted:
Class A Common Stock	$	0.52	$	(0.05	)				$	0.57
Class B Common Stock	$	0.45	$	(0.05	)				$	0.50
Weighted-Average Shares Used to Compute Basic Earnings Per Share:
Class A Common Stock		31,322		31,322						31,322
Class B Common Stock		24,606		24,606						24,606
Weighted-Average Shares Used to Compute Diluted Earnings Per Share:
Class A Common Stock		32,158		32,158						32,158
Class B Common Stock		24,606		24,606						24,606

CRAWFORD & COMPANY

UNAUDITED PRO FORMA CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

(In Thousands, Except Per Share Amounts)

Three Months Ended March 31, 2018	Historical 2018		Pro Forma Adjustments			Notes			Pro Forma
Revenues:
Revenues Before Reimbursements	$	273,104	$	15,953			(a	)	$	257,151
Reimbursements		17,283		6,663			(a	)		10,620
Total Revenues		290,387		22,616						267,771
Costs and Expenses:
Costs of Services Provided, Before Reimbursements		197,619		11,229			(a	)		186,390
Reimbursements		17,283		6,663			(a	)		10,620
Total Costs of Services		214,902		17,892						197,010
Selling, General, and Administrative Expenses		61,660		7,249			(a	)		54,411
Corporate Interest Expense, Net		2,564		—						2,564
Total Costs and Expenses		279,126		25,141						253,985
Other Income		1,135		—						1,135
Income (Loss) Before Income Taxes		12,396		(2,525	)					14,921
Provision (Benefit) for Income Taxes		3,966		(651	)		(b	)		4,617
Net Income (Loss)		8,430		(1,874	)					10,304
Net Loss Attributable to Noncontrolling Interests and Redeemable Noncontrolling Interests		139		—						139
Net Income (Loss) Attributable to Shareholders of Crawford & Company	$	8,569	$	(1,874	)				$	10,443
Earnings (Loss) Per Share - Basic:
Class A Common Stock	$	0.16	$	(0.03	)				$	0.19
Class B Common Stock	$	0.14	$	(0.03	)				$	0.17
Earnings (Loss) Per Share - Diluted:
Class A Common Stock	$	0.16	$	(0.03	)				$	0.19
Class B Common Stock	$	0.14	$	(0.03	)				$	0.17
Weighted-Average Shares Used to Compute Basic Earnings Per Share:
Class A Common Stock		31,199		31,199						31,199
Class B Common Stock		24,472		24,472						24,472
Weighted-Average Shares Used to Compute Diluted Earnings Per Share:
Class A Common Stock		31,761		31,761						31,761
Class B Common Stock		24,472		24,472						24,472

CRAWFORD & COMPANY

UNAUDITED PRO FORMA CONDENSED CONSOLIDATED BALANCE SHEETS

As of March 31, 2018

(In Thousands, Except Par Values)

				Pro Forma Adjustments
	Historical						Notes			Pro Forma
ASSETS
Current Assets:
Cash and Cash Equivalents	$	63,956		$	36,472			(c	)	$	100,428
Accounts Receivable, Net		173,554			(30,533	)		(d	)		143,021
Unbilled Revenues, at Estimated Billable Amounts		132,915			(17,432	)		(d	)		115,483
Income Taxes Receivable		4,109			—						4,109
Prepaid Expenses and Other Current Assets		24,651			(2,458	)		(d	)		22,193
Total Current Assets		399,185			(13,951	)					385,234
Net Property and Equipment		41,869			(4,282	)					37,587
Other Assets:
Goodwill		98,462			—						98,462
Intangible Assets Arising from Business Acquisitions, Net		96,224			—						96,224
Capitalized Software Costs, Net		88,627			(11,871	)		(d	)		76,756
Deferred Income Tax Assets		23,398			5,066			(e	)		28,464
Other Noncurrent Assets		72,134			(3	)		(d	)		72,131
Total Other Assets		378,845			(6,808	)					372,037
Total Assets	$	819,899		$	(25,041	)				$	794,858
LIABILITIES AND SHAREHOLDERS’ INVESTMENT
Current Liabilities:
Short-Term Borrowings	$	24,546		$	—					$	24,546
Accounts Payable		41,982			(4,866	)		(d	)		37,116
Accrued Compensation and Related Costs		64,670			(2,386	)		(d	)		62,284
Self-Insured Risks		11,994			—						11,994
Income Taxes Payable		3,193			697			(e	)		3,890
Deferred Rent		15,839			(2,390	)		(d	)		13,449
Other Accrued Liabilities		43,740			—			(d	)		43,740
Deferred Revenues		37,182			(2,324	)		(d	)		34,858
Current Installments of Capital Leases		557			(295	)		(d	)		262
Total Current Liabilities		243,703			(11,564	)					232,139
Noncurrent Liabilities:
Long-Term Debt and Capital Leases, Less Current Installments		242,202			(690	)		(d	)		241,512
Deferred Revenues		24,083			—						24,083
Accrued Pension Liabilities		81,550			—						81,550
Other Noncurrent Liabilities		27,084			—						27,084
Total Noncurrent Liabilities		374,919			(690	)					374,229
Redeemable Noncontrolling Interests		6,447			—						6,447
Shareholders’ Investment:
Class A Common Stock, $1.00 Par Value		30,529			—						30,529
Class B Common Stock, $1.00 Par Value		24,448			—						24,448
AdditionalPaid-in Capital		54,647			—						54,647
Retained Earnings		267,682			(12,787	)		(f	)		254,895
Accumulated Other Comprehensive Loss		(187,537	)		—						(187,537	)
Shareholders’ Investment Attributable to Shareholders of Crawford & Company		189,769			(12,787	)					176,982
Noncontrolling Interests		5,061			—						5,061
Total Shareholders’ Investment		194,830			(12,787	)					182,043
Total Liabilities and Shareholders’ Investment	$	819,899		$	(25,041	)				$	794,858

CRAWFORD & COMPANY

NOTES TO UNAUDITED PRO FORMA CONDENSED COMBINED FINANCIAL INFORMATION

(a) These adjustments reflect the elimination of Garden City Group operating revenues and costs.

(b) This adjustment reflects the elimination of tax benefit associated with the Garden City Group pretax loss calculated at statutory rates.

(c) This adjustment reflects the receipt of cash consideration at the closing of the transaction, after reduction for transaction costs and cash, as of March 31, 2018.

(d) These adjustments reflect the elimination of assets and liabilities attributable to Garden City Group.

(e) These adjustments reflect the impact to deferred income tax assets and income taxes payable as a result of the loss on the transaction.

(f) This adjustment reflects the loss on the transaction, after adjustment for tax impacts that would result on the transaction, based on the net assets as of March 31, 2018. This estimated loss has not been reflected in the Pro Forma Consolidated Statements of Operations as it is considered to be nonrecurring in nature. No adjustment has been made to the sale proceeds to give effect to any potential post-closing adjustment under the terms of the agreement.

(g) During the period ended December 31, 2017, Garden City Group incurred nonrecurring pretax charges of $19,598,000 in goodwill impairment and $3,349,000 in restructuring charges. These two charges were not attributable to the transaction, so therefore, were not reflected as adjustments in the Pro Forma Consolidated Statements of Operations presented for that period. For further information about these charges, refer to the consolidated financial statements and footnotes thereto included in the Company’s Annual Report on Form10-K for the year ended December 31, 2017.