Exhibit 99.2
CRAWFORD & COMPANY
Revised Reconciliation of Non-GAAP Results (UNAUDITED)
Following are the reconciliations of GAAP Revenue, Operating Earnings, Pretax Earnings, Net Income and Earnings Per Share to related non-GAAP Adjusted figures for the years and quarters of 2020 and 2019. Results are presented before acquisition-related amortization of intangible assets, goodwill impairment, restructuring costs and gain on disposition of businesses, arbitration and claim settlements and tax valuation allowances:
Three Months Ended March 31, 2020 | |
(in thousands) | Revenues | | Non-GAAP Operating earnings(1) | | Pretax earnings | | Net income attributable to Crawford & Company | | Diluted earnings per CRD-A share(2) | | Diluted earnings per CRD-B share(2) | |
GAAP | $ | 237,531 | | $ | 7,013 | | $ | (21,465 | ) | $ | (11,399 | ) | $ | (0.21 | ) | $ | (0.23 | ) |
Adjustments: | | | | | | | | | | | | | | | | | | |
Amortization of intangible assets | | — | | | — | | | 2,756 | | | 2,067 | | | 0.04 | | | 0.04 | |
Goodwill impairment | | — | | | — | | | 17,674 | | | 9,133 | | | 0.18 | | | 0.18 | |
Restructuring costs | | — | | | — | | | 5,714 | | | 3,263 | | | 0.06 | | | 0.06 | |
Non-GAAP Adjusted | $ | 237,531 | | $ | 7,013 | | $ | 4,679 | | $ | 3,064 | | $ | 0.07 | | $ | 0.05 | |
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Three Months Ended June 30, 2020 | |
(in thousands) | Revenues | | Non-GAAP Operating earnings(1) | | Pretax earnings | | Net income attributable to Crawford & Company | | Diluted earnings per CRD-A share(2) | | Diluted earnings per CRD-B share(2) | |
GAAP | $ | 234,416 | | $ | 18,244 | | $ | 12,433 | | $ | 5,898 | | $ | 0.11 | | $ | 0.11 | |
Adjustments: | | | | | | | | | | | | | | | | | | |
Amortization of intangible assets | | — | | | — | | | 2,732 | | | 2,049 | | | 0.04 | | | 0.04 | |
Income tax impact of first quarter goodwill impairment | | — | | | — | | | — | | | 2,206 | | | 0.04 | | | 0.04 | |
Gain on disposition of businesses, net | | — | | | — | | | 341 | | | 265 | | | — | | | — | |
Non-GAAP Adjusted | $ | 234,416 | | $ | 18,244 | | $ | 15,506 | | $ | 10,418 | | $ | 0.19 | | $ | 0.19 | |
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Three Months Ended September 30, 2020 | |
(in thousands) | Revenues | | Non-GAAP Operating earnings(1) | | Pretax earnings | | Net income attributable to Crawford & Company | | Diluted earnings per CRD-A share(2) | | Diluted earnings per CRD-B share(2) | |
GAAP | $ | 253,124 | | $ | 28,055 | | $ | 36,438 | | $ | 24,397 | | $ | 0.46 | | $ | 0.46 | |
Adjustments: | | | | | | | | | | | | | | | | | | |
Amortization of intangible assets | | — | | | — | | | 3,665 | | | 2,749 | | | 0.05 | | | 0.05 | |
Income tax impact of first quarter goodwill impairment | | — | | | — | | | — | | | 1,935 | | | 0.04 | | | 0.04 | |
Gain on disposition of businesses, net | | — | | | — | | | (14,104 | ) | | (11,072 | ) | | (0.21 | ) | | (0.21 | ) |
Non-GAAP Adjusted | $ | 253,124 | | $ | 28,055 | | $ | 25,999 | | $ | 18,009 | | $ | 0.34 | | $ | 0.34 | |
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Three Months Ended December 31, 2020 | |
(in thousands) | Revenues | | Non-GAAP Operating earnings(1) | | Pretax earnings | | Net income attributable to Crawford & Company | | Diluted earnings per CRD-A share(2) | | Diluted earnings per CRD-B share(2) | |
GAAP | $ | 257,421 | | $ | 18,518 | | $ | 11,862 | | $ | 9,400 | | $ | 0.18 | | $ | 0.18 | |
Adjustments: | | | | | | | | | | | | | | | | | | |
Amortization of intangible assets | | — | | | — | | | 2,500 | | | 1,875 | | | 0.03 | | | 0.03 | |
Income tax impact of first quarter goodwill impairment | | — | | | — | | | — | | | 935 | | | 0.02 | | | 0.02 | |
Restructuring and other costs, net | | — | | | — | | | 2,419 | | | 1,664 | | | 0.03 | | | 0.03 | |
Non-GAAP Adjusted | $ | 257,421 | | $ | 18,518 | | $ | 16,781 | | $ | 13,874 | | $ | 0.26 | | $ | 0.26 | |
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Year Ended December 31, 2020 | |
(in thousands) | Revenues | | Non-GAAP Operating earnings(1) | | Pretax earnings | | Net income attributable to Crawford & Company | | Diluted earnings per CRD-A share(2) | | Diluted earnings per CRD-B share(2) | |
GAAP | $ | 982,492 | | $ | 71,830 | | $ | 39,088 | | $ | 28,296 | | $ | 0.54 | | $ | 0.52 | |
Adjustments: | | | | | | | | | | | | | | | | | | |
Amortization of intangible assets | | — | | | — | | | 11,653 | | | 8,740 | | | 0.16 | | | 0.16 | |
Goodwill impairment | | — | | | — | | | 17,674 | | | 14,209 | | | 0.27 | | | 0.27 | |
Restructuring costs | | — | | | — | | | 8,133 | | | 4,927 | | | 0.09 | | | 0.09 | |
Gain on disposition of businesses, net | | — | | | — | | | (13,763 | ) | | (10,807 | ) | | (0.20 | ) | | (0.20 | ) |
Non-GAAP Adjusted | $ | 982,492 | | $ | 71,830 | | $ | 62,785 | | $ | 45,365 | | $ | 0.86 | | $ | 0.84 | |
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Three Months Ended March 31, 2019 | |
(in thousands) | Revenues | | Non-GAAP Operating earnings(1) | | Pretax earnings | | Net income attributable to Crawford & Company | | Diluted earnings per CRD-A share(2) | | Diluted earnings per CRD-B share(2) | |
GAAP | $ | 247,058 | | $ | 14,701 | | $ | 8,702 | | $ | 6,109 | | $ | 0.12 | | $ | 0.10 | |
Adjustments: | | | | | | | | | | | | | | | | | | |
Amortization of intangible assets | | — | | | — | | | 2,798 | | | 2,099 | | | 0.04 | | | 0.04 | |
Non-GAAP Adjusted | $ | 247,058 | | $ | 14,701 | | $ | 11,500 | | $ | 8,208 | | $ | 0.16 | | $ | 0.14 | |
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Three Months Ended June 30, 2019 | |
(in thousands) | Revenues | | Non-GAAP Operating earnings(1) | | Pretax earnings | | Net income attributable to Crawford & Company | | Diluted earnings per CRD-A share(2) | | Diluted earnings per CRD-B share(2) | |
GAAP | $ | 256,881 | | $ | 22,518 | | $ | 5,483 | | $ | 2,642 | | $ | 0.06 | | $ | 0.04 | |
Adjustments: | | | | | | | | | | | | | | | | | | |
Amortization of intangible assets | | — | | | — | | | 2,802 | | | 2,102 | | | 0.04 | | | 0.04 | |
Arbitration and claim settlements | | — | | | — | | | 11,352 | | | 8,389 | | | 0.15 | | | 0.15 | |
Non-GAAP Adjusted | $ | 256,881 | | $ | 22,518 | | $ | 19,637 | | $ | 13,133 | | $ | 0.25 | | $ | 0.23 | |
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Three Months Ended September 30, 2019 | |
(in thousands) | Revenues | | Non-GAAP Operating earnings(1) | | Pretax earnings | | Net income attributable to Crawford & Company | | Diluted earnings per CRD-A share(2) | | Diluted earnings per CRD-B share(2) | |
GAAP | $ | 254,677 | | $ | 23,660 | | $ | 16,019 | | $ | 11,046 | | $ | 0.21 | | $ | 0.19 | |
Adjustments: | | | | | | | | | | | | | | | | | | |
Amortization of intangible assets | | — | | | — | | | 2,829 | | | 2,122 | | | 0.04 | | | 0.04 | |
Arbitration and claim settlements | | — | | | — | | | 1,200 | | | 887 | | | 0.02 | | | 0.02 | |
Non-GAAP Adjusted | $ | 254,677 | | $ | 23,660 | | $ | 20,048 | | $ | 14,055 | | $ | 0.27 | | $ | 0.25 | |
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Three Months Ended December 31, 2019 | |
(in thousands) | Revenues | | Non-GAAP Operating earnings(1) | | Pretax earnings | | Net income attributable to Crawford & Company | | Diluted earnings per CRD-A share(2) | | Diluted earnings per CRD-B share(2) | |
GAAP | $ | 247,186 | | $ | 16,730 | | $ | (6,567 | ) | $ | (7,312 | ) | $ | (0.13 | ) | $ | (0.15 | ) |
Adjustments: | | | | | | | | | | | | | | | | | | |
Amortization of intangible assets | | — | | | — | | | 2,848 | | | 2,136 | | | 0.04 | | | 0.04 | |
Goodwill impairment | | — | | | — | | | 17,484 | | | 13,057 | | | 0.24 | | | 0.24 | |
Tax valuation allowances | | — | | | — | | | — | | | 1,991 | | | 0.04 | | | 0.04 | |
Non-GAAP Adjusted | $ | 247,186 | | $ | 16,730 | | $ | 13,765 | | $ | 9,872 | | $ | 0.19 | | $ | 0.17 | |
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Year Ended December 31, 2019 | |
(in thousands) | Revenues | | Non-GAAP Operating earnings(1) | | Pretax earnings | | Net income attributable to Crawford & Company | | Diluted earnings per CRD-A share(2) | | Diluted earnings per CRD-B share(2) | |
GAAP | $ | 1,005,802 | | $ | 77,609 | | $ | 23,637 | | $ | 12,485 | | $ | 0.26 | | $ | 0.19 | |
Adjustments: | | | | | | | | | | | | | | | | | | |
Amortization of intangible assets | | — | | | — | | | 11,277 | | | 8,459 | | | 0.16 | | | 0.15 | |
Goodwill impairment charge | | — | | | — | | | 17,484 | | | 13,057 | | | 0.24 | | | 0.24 | |
Arbitration and claim settlements | | — | | | — | | | 12,552 | | | 9,276 | | | 0.17 | | | 0.17 | |
Tax valuation allowances | | — | | | — | | | — | | | 1,991 | | | 0.04 | | | 0.04 | |
Non-GAAP Adjusted | $ | 1,005,802 | | $ | 77,609 | | $ | 64,950 | | $ | 45,268 | | $ | 0.87 | | $ | 0.79 | |
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| (1) | Reconciliations of Non-GAAP Operating earnings to Net income attributable to shareholders of Crawford & Company were performed for each quarterly and year end schedule in press releases at Exhibit 99.1 for each respective quarter. |
| (2) | Due to the method used in calculating per share data as prescribed by ASC 260, “Earnings per Share,” the quarterly per share data may not total to the full-year per share data. |
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