Form 10-Q Crawford & Company
Quarter Ended March 31, 1995 Page 2
PART I - FINANCIAL INFORMATION
Item 1. Financial Statements
Condensed Financial Statements:
Year-to-Date Unaudited Consolidated Statements of Income for the Three-Month
Periods Ended March 31, 1995 and March 31, 1994:
(In Thousand of Dollars
Except Share and Per Share Data)
1995 1994
Revenues $148,649 $148,792
Costs and Expenses:
Cost of services provided, less reimbursed expenses
of $8,378 in 1995 and $8,372 in 1994 100,965 102,189
Selling, general and administrative expense 31,800 29,711
Total costs and expenses 132,765 131,900
Income Before Income Taxes 15,884 16,892
Provision for Income Taxes 6,406 6,805
Net Income $9,478 $10,087
Earnings Per Share $0.27 $0.28
Weighted Average Shares Outstanding 34,930,601 36,054,281
Declared Dividends Per Share - Class A Common Stock $0.1450 $0.1400
Declared Dividends Per Share - Class B Common Stock $0.1350 $0.1250
(See accompanying notes to condensed financial statements)
Form 10-Q Crawford & Company
Quarter Ended March 31, 1995 Page 3
Consolidated Balance Sheets as of March 31, 1995 and December 31, 1994:
(In Thousands of Dollars)
(Unaudited)
March 31 December 31
1995 1994
ASSETS
Current Assets:
Cash and cash equivalents $24,680 $38,968
Short-term investments, at fair value 15,879 18,766
Accounts receivable, less allowance for doubtful
accounts of $10,452 in 1995 and $10,220 in 1994 103,130 104,942
Unbilled revenues, at estimated billable amounts 60,191 59,601
Prepaid income taxes 12,141 12,147
Prepaid expenses and other current assets 9,692 9,215
Total current assets 225,713 243,639
Property and Equipment:
Property and equipment, at cost: 117,151 112,513
Less accumulated depreciation and amortization (79,104) (75,065)
Net property and equipment 38,047 37,448
Other Assets:
Intangible assets arising from acquisitions, less
accumulated amortization of $6,149 in 1995
and $5,833 in 1994 54,061 51,684
Prepaid pension obligation 34,857 23,500
Other 6,815 6,623
Total other assets 95,733 81,807
TOTAL ASSETS $359,493 $362,894
(See accompanying notes to condensed financial statements)
Form 10-Q Crawford & Company
Quarter Ended March 31, 1995 Page 4
Consolidated Balance Sheets - (Continued)
(In Thousands of Dollars)
(Unaudited)
March 31 December 31
1995 1994
LIABILITIES AND SHAREHOLDERS' INVESTMENT
Current Liabilities:
Short-term borrowings $7,314 $9,123
Accounts payable 10,378 10,999
Accrued compensation and related costs 29,559 39,219
Other accrued liabilities 32,478 31,167
Deferred revenues 26,650 25,813
Current installments of long-term debt 1,572 1,298
Total current liabilities 107,951 117,619
Noncurrent Liabilities:
Long-term debt, less current installments 9,988 9,962
Deferred income taxes 19,106 14,720
Postretirement medical benefit obligation 7,948 7,440
Total noncurrent liabilities 37,042 32,122
Shareholders' Investment:
Class A Common Stock, $1.00 par value; 50,000,000
shares authorized; 17,385,650 and 18,036,268
shares issued in 1995 and 1994, respectively 17,386 17,449
Class B Common Stock, $1.00 par value; 50,000,000
shares authorized; 17,451,958 and 18,032,640
shares issued in 1995 and 1994, respectively 17,452 17,580
Retained earnings 182,345 180,772
Cumulative translation adjustment (2,683) (2,648)
Total shareholders' investment 214,500 213,153
TOTAL LIABILITIES AND SHAREHOLDERS' INVESTMENT $359,493 $362,894
(See accompanying notes to condensed financial statements)
Form 10-Q Crawford & Company
Quarter Ended March 31, 1995 Page 5
Unaudited Consolidated Statements of Cash Flows for the Three-Month Periods
Ended March 31, 1995 and March 31, 1994:
(In Thousands of Dollars)
1995 1994
Cash Flows From Operating Activities:
Net income $9,478 $10,087
Reconciliation of net income to net cash
(used in) provided by operating activities:
Depreciation and amortization 4,090 3,690
Deferred income taxes 4,037 (276)
Loss on sales of property and equipment 147 8
Changes in operating assets and liabilities:
Short-term investments 2,887 (919)
Accounts receivable, net 1,722 (839)
Unbilled revenues (651) (5,351)
Prepaid or accrued income taxes 1,342 6,336
Accounts payable and accrued liabilities (9,190) 1,532
Deferred revenues 837 (364)
Prepaid expenses and other assets (16,245) 1,127
Net cash (used in) provided by operating activities (1,546) 15,031
Cash Flows From Investing Activities:
Acquisitions of property and equipment (3,451) (2,715)
Sales of property and equipment 21 28
Net cash used in investing activities (3,430) (2,687)
Cash Flows From Financing Activities:
Dividends paid (4,895) (4,778)
Repurchase of common stock (3,512) 0
Issuance of common stock 311 302
Increase (Decrease) in short-term borrowings (1,728) 1,056
Increase (Decrease) in long-term debt 539 (153)
Net cash used in financing activities (9,285) (3,573)
Effect of exchange rate changes on cash
and cash equivalents (27) (214)
Increase (Decrease) in cash and cash equivalents (14,288) 8,557
Cash and cash equivalents at beginning of period 38,968 40,111
Cash and cash equivalents at end of period $24,680 $48,668
Cash payments for income taxes $810 $797
(See accompanying notes to condensed financial statements)