Form 10-Q Crawford & Company
Quarter Ended September 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 Nine-Month
Periods ended September 30, 1995 and September 30, 1994:
(In Thousand of Dollars
Except Share and Per Share Data)
1995 1994
Revenues $450,466 $445,667
Costs and Expenses:
Cost of services provided, less reimbursed expenses
of $25,698 in 1995 and $23,575 in 1994 310,119 305,193
Selling, general and administrative expense 97,631 87,298
Total costs and expenses 407,750 392,491
Income Before Income Taxes 42,716 53,176
Provision for Income Taxes 17,228 21,880
Net Income $25,488 $31,296
Earnings Per Share $0.73 $0.87
Weighted Average Shares Outstanding 34,885,628 35,910,101
Declared Dividends Per Share - Class A Common $0.435 $0.420
Declared Dividends Per Share - Class B Common $0.405 $0.375
(See accompanying notes to condensed financial statements)
Form 10-Q Crawford & Company
Quarter Ended September 30, 1995 Page 3
Quarterly Unaudited Consolidated Statements of Income for the Three-Month
Periods ended September 30, 1995 and September 30, 1994:
(In Thousand of Dollars
Except Share and Per Share Data)
1995 1994
Revenues $150,954 $149,051
Costs and Expenses:
Cost of services provided, less reimbursed expenses
of $8,625 in 1995 and $7,874 in 1994 104,750 102,091
Selling, general and administrative expense 30,398 28,154
Total costs and expenses 135,148 130,245
Income Before Income Taxes 15,806 18,806
Provision for Income Taxes 6,375 8,030
Net Income $9,431 $10,776
Earnings Per Share $0.27 $0.30
Weighted Average Shares Outstanding 34,878,976 35,647,921
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 September 30, 1995 Page 4
Consolidated Balance Sheets as of September 30, 1995 and December 31, 1994:
(In Thousands of Dollars)
(Unaudited)
September 30 December 31
1995 1994
ASSETS
Current Assets:
Cash and cash equivalents $34,737 $38,968
Short-term investments, at fair value 6,561 18,766
Accounts receivable, less allowance for doubtful
accounts of $10,300 in 1995 and $10,220 in 1994 110,878 104,942
Unbilled revenues, at estimated billable amounts 60,510 59,601
Prepaid income taxes 11,592 12,147
Prepaid expenses and other current assets 12,380 9,215
Total current assets 236,658 243,639
Property and Equipment:
Property and equipment, at cost: 122,394 112,513
Less accumulated depreciation and amortization (84,058) (75,065)
Net property and equipment 38,336 37,448
Other Assets:
Intangible assets arising from acquisitions, less
accumulated amortization of $7,113 in 1995
and $5,833 in 1994 55,019 51,684
Prepaid pension obligation 35,168 23,500
Other 4,751 6,623
Total other assets 94,938 81,807
TOTAL ASSETS $369,932 $362,894
(See accompanying notes to condensed financial statements)
Form 10-Q Crawford & Company
Quarter Ended September 30, 1995 Page 5
Consolidated Balance Sheets - (Continued)
(In Thousands of Dollars)
(Unaudited)
September 30 December 31
1995 1994
LIABILITIES AND SHAREHOLDERS' INVESTMENT
Current Liabilities:
Short-term borrowings $9,258 $9,123
Accounts payable 12,345 10,999
Accrued compensation and related costs 29,894 39,219
Other accrued liabilities 30,350 31,167
Deferred revenues 27,621 25,813
Current installments of long-term debt 1,387 1,298
Total current liabilities 110,855 117,619
Noncurrent Liabilities:
Long-term debt, less current installments 10,063 9,962
Deferred income taxes 19,037 14,720
Postretirement medical benefit obligation 7,738 7,440
Other 823 0
Total noncurrent liabilities 37,661 32,122
Shareholders' Investment:
Class A Common Stock, $1.00 par value; 50,000,000
shares authorized; 17,417,986 and 17,449,130
shares issued in 1995 and 1994, respectively 17,418 17,449
Class B Common Stock, $1.00 par value; 50,000,000
shares authorized; 17,464,280 and 17,580,213
shares issued in 1995 and 1994, respectively 17,464 17,580
Retained earnings 188,937 180,772
Cumulative translation adjustment (2,403) (2,648)
Total shareholders' investment 221,416 213,153
TOTAL LIABILITIES AND SHAREHOLDERS' INVESTMENT $369,932 $362,894
(See accompanying notes to condensed financial statements)
Form 10-Q Crawford & Company
Quarter Ended September 30, 1995 Page 6
Unaudited Consolidated Statements of Cash Flows for the Nine-Month Periods
Ended September 30, 1995 and September 30, 1994:
(In Thousands of Dollars)
1995 1994
Cash Flows From Operating Activities:
Net income $25,488 $31,296
Reconciliation of net income to net cash
provided by operating activities:
Depreciation and amortization 12,685 11,137
Deferred income taxes 6,359 (22)
Loss on sales of property and equipment 691 138
Changes in operating assets and liabilities,
net of effects of acquisitions:
Short-term investments 12,205 6,502
Accounts receivable, net (5,447) (17,016)
Unbilled revenues (511) (422)
Prepaid or accrued income taxes (3,247) 3,644
Accounts payable and accrued liabilities (5,963) 10,390
Deferred revenues 1,809 4,200
Prepaid expenses and other assets (16,154) (5,563)
Net cash provided by operating activities 27,915 44,284
Cash Flows From Investing Activities:
Acquisitions of property and equipment (10,833) (8,541)
Net assets of companies acquired (4,206) (8,678)
Sales of property and equipment 123 173
Net cash used in investing activities (14,916) (17,046)
Cash Flows From Financing Activities:
Dividends paid (14,658) (14,279)
Repurchase of common stock (3,721) (8,917)
Issuance of common stock 910 552
Decrease in short-term borrowings (265) (356)
Increase in long-term debt 274 189
Net cash used in financing activities (17,460) (22,811)
Effect of exchange rate changes on cash and cash
equivalents 230 (66)
Increase (Decrease) in cash and cash equivalents (4,231) 4,361
Cash and cash equivalents at beginning of period 38,968 40,111
Cash and cash equivalents at end of period $34,737 $44,472
Cash payments for income taxes $13,946 $18,031
(See accompanying notes to condensed financial statements)