Form 10-Q Crawford & Company
Quarter Ended June 30, 1995 Page 2
PART I - FINANCIAL INFORMATION
Item 1. Financial Statements
Condensed Financial Statements:
Year-to-Date Unaudited Consolidated Statements of Income for the Six-Month
Periods ended June 30, 1995 and June 30, 1994:
(In Thousand of Dollars
Except Share and Per Share Data)
1995 1994
Revenues $299,512 $296,616
Costs and Expenses:
Cost of services provided, less reimbursed expenses
of $17,073 in 1995 and $15,700 in 1994 205,200 203,106
Selling, general and administrative expense 67,402 59,140
Total costs and expenses 272,602 262,246
Income Before Income Taxes 26,910 34,370
Provision for Income Taxes 10,852 13,850
Net Income $16,058 $20,520
Earnings Per Share $0.46 $0.57
Weighted Average Shares Outstanding 34,889,009 36,043,364
Declared Dividends Per Share - Class A Common $0.29 $0.28
Declared Dividends Per Share - Class B Common $0.27 $0.25
(See accompanying notes to condensed financial statements)
Form 10-Q Crawford & Company
Quarter Ended June 30, 1995 Page 3
Quarterly Unaudited Consolidated Statements of Income for the Three-Month
Periods ended June 30, 1995 and June 30, 1994:
(In Thousand of Dollars
Except Share and Per Share Data)
1995 1994
Revenues $150,863 $147,824
Costs and Expenses:
Cost of services provided, less reimbursed expenses
of $8,695 in 1995 and $7,328 in 1994 104,235 100,917
Selling, general and administrative expense 35,602 29,429
Total costs and expenses 139,837 130,346
Income Before Income Taxes 11,026 17,478
Provision for Income Taxes 4,446 7,045
Net Income $6,580 $10,433
Earnings Per Share $0.19 $0.29
Weighted Average Shares Outstanding 34,851,171 36,032,567
Declared Dividends Per Share - Class A Common $0.145 $0.140
Declared Dividends Per Share - Class B Common $0.135 $0.125
(See accompanying notes to condensed financial statements)
Form 10-Q Crawford & Company
Quarter Ended June 30, 1995 Page 4
Consolidated Balance Sheets as of June 30, 1995 and December 31, 1994:
(In Thousands of Dollars)
(Unaudited)
June 30 December 31
1995 1994
ASSETS
Current Assets:
Cash and cash equivalents $22,649 $38,968
Short-term investments, at fair value 9,976 18,766
Accounts receivable, less allowance for doubtful
accounts of $10,688 in 1995 and $10,220 in 1994 110,416 104,942
Unbilled revenues, at estimated billable amounts 60,905 59,601
Prepaid income taxes 13,110 12,147
Prepaid expenses and other current assets 12,172 9,215
Total current assets 229,228 243,639
Property and Equipment:
Property and equipment, at cost: 121,186 112,513
Less accumulated depreciation and amortization (82,318) (75,065)
Net property and equipment 38,868 37,448
Other Assets:
Intangible assets arising from acquisitions, less
accumulated amortization of $6,598 in 1995
and $5,833 in 1994 53,873 51,684
Prepaid pension obligation 35,054 23,500
Other 5,374 6,623
Total other assets 94,301 81,807
TOTAL ASSETS $362,397 $362,894
(See accompanying notes to condensed financial statements)
Form 10-Q Crawford & Company
Quarter Ended June 30, 1995 Page 5
Consolidated Balance Sheets - (Continued)
(In Thousands of Dollars)
(Unaudited)
June 30 December 31
1995 1994
LIABILITIES AND SHAREHOLDERS' INVESTMENT
Current Liabilities:
Short-term borrowings $8,786 $9,123
Accounts payable 11,611 10,999
Accrued compensation and related costs 26,289 39,219
Other accrued liabilities 31,374 31,167
Deferred revenues 28,130 25,813
Current installments of long-term debt 1,474 1,298
Total current liabilities 107,664 117,619
Noncurrent Liabilities:
Long-term debt, less current installments 10,237 9,962
Deferred income taxes 19,020 14,720
Postretirement medical benefit obligation 8,314 7,440
Total noncurrent liabilities 37,571 32,122
Shareholders' Investment:
Class A Common Stock, $1.00 par value; 50,000,000
shares authorized; 17,406,248 and 17,449,130
shares issued in 1995 and 1994, respectively 17,406 17,449
Class B Common Stock, $1.00 par value; 50,000,000
shares authorized; 17,466,548 and 17,580,213
shares issued in 1995 and 1994, respectively 17,467 17,580
Retained earnings 184,424 180,772
Cumulative translation adjustment (2,135) (2,648)
Total shareholders' investment 217,162 213,153
TOTAL LIABILITIES AND SHAREHOLDERS' INVESTMENT $362,397 $362,894
(See accompanying notes to condensed financial statements)
Form 10-Q Crawford & Company
Quarter Ended June 30, 1995 Page 6
Unaudited Consolidated Statements of Cash Flows for the Six-Month Periods Ended
June 30, 1995 and June 30, 1994:
(In Thousands of Dollars)
1995 1994
Cash Flows From Operating Activities:
Net income $16,058 $20,520
Reconciliation of net income to net cash
provided by operating activities:
Depreciation and amortization 8,450 7,489
Deferred income taxes 4,159 (433)
Loss on sales of property and equipment 246 44
Changes in operating assets and liabilities:
Short-term investments 8,790 2,409
Accounts receivable, net (4,913) (9,579)
Unbilled revenues (817) (2,791)
Prepaid or accrued income taxes (1,672) 4,581
Accounts payable and accrued liabilities (9,411) 223
Deferred revenues 2,317 3,285
Prepaid expenses and other assets (18,782) (6,653)
Net cash provided by operating activities 4,425 19,095
Cash Flows From Investing Activities:
Acquisitions of property and equipment (8,004) (5,201)
Net assets of companies acquired 0 (2,350)
Sales of property and equipment 92 128
Net cash used in investing activities (7,912) (7,423)
Cash Flows From Financing Activities:
Dividends paid (9,774) (9,559)
Repurchase of common stock (3,512) (3,147)
Issuance of common stock 724 417
Increase (Decrease) in short-term borrowings (775) 642
Increase (Decrease) in long-term debt 336 (40)
Net cash used in financing activities (13,001) (11,687)
Effect of exchange rate changes on cash and cash
equivalents 169 (205)
Decrease in cash and cash equivalents (16,319) (220)
Cash and cash equivalents at beginning of period 38,968 40,111
Cash and cash equivalents at end of period $22,649 $39,891
Cash payments for income taxes $8,209 $9,565
(See accompanying notes to condensed financial statements)