Form 10-Q Crawford & Company
Quarter Ended March 31, 1996 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
Period ended March 31, 1996 and March 31, 1995:
(In Thousand of Dollars
Except Share and Per Share Data)
1996 1995
Revenues $161,563 $148,649
Costs and Expenses:
Cost of services provided, less reimbursed expenses
of $7,784 in 1996 and $8,378 in 1995 116,804 106,683
Selling, general and administrative expense 27,281 26,082
Total costs and expenses 144,085 132,765
Income Before Income Taxes 17,478 15,884
Provision for Income Taxes 7,047 6,406
Net Income $10,431 $9,478
Earnings Per Share $0.30 $0.27
Weighted Average Shares Outstanding 34,310,476 34,930,601
Declared Dividends Per Share - Class A Common $0.150 $0.145
Declared Dividends Per Share - Class B Common $0.145 $0.135
(See accompanying notes to condensed financial statements)
Form 10-Q Crawford & Company
Quarter Ended March 31, 1996 Page 3
Consolidated Balance Sheets as of March 31, 1996 and December 31, 1995:
(In Thousands of Dollars)
(Unaudited)
March 31 December 31
1996 1995
ASSETS
Current Assets:
Cash and cash equivalents $50,841 $40,802
Short-term investments, at fair value 3,384 5,596
Accounts receivable, less allowance for doubtful
accounts of $10,344 in 1996 and $10,303 in 1995 111,755 111,636
Unbilled revenues, at estimated billable amounts 64,898 60,486
Prepaid income taxes 9,331 6,115
Prepaid expenses and other current assets 11,338 9,745
Total current assets 251,547 234,380
Property and Equipment:
Property and equipment, at cost: 122,794 121,307
Less accumulated depreciation and amortization (87,582) (84,859)
Net property and equipment 35,212 36,448
Other Assets:
Intangible assets arising from acquisitions, less
accumulated amortization of $8,050 in 1996
and $7,596 in 1995 54,776 55,731
Prepaid pension obligation 35,408 34,243
Other 9,221 6,181
Total other assets 99,405 96,155
TOTAL ASSETS $386,164 $366,983
(See accompanying notes to condensed financial statements)
Form 10-Q Crawford & Company
Quarter Ended March 31, 1996 Page 4
Consolidated Balance Sheets - (Continued)
(In Thousands of Dollars)
(Unaudited)
March 31 December 31
1996 1995
LIABILITIES AND SHAREHOLDERS' INVESTMENT
Current Liabilities:
Short-term borrowings $10,300 $10,154
Accounts payable 13,211 12,366
Accrued compensation and related costs 34,825 26,764
Other accrued liabilities 40,278 29,394
Deferred revenues 15,319 15,504
Current installments of long-term debt 805 872
Total current liabilities 114,738 95,054
Noncurrent Liabilities:
Long-term debt, less current installments 8,900 9,412
Deferred income taxes 15,107 14,854
Deferred revenues 11,010 10,498
Postretirement medical benefit obligation 8,103 7,938
Self-insured risks 7,775 7,347
Other 1,401 1,020
Total noncurrent liabilities 52,296 51,069
Shareholders' Investment:
Class A Common Stock, $1.00 par value; 50,000,000
shares authorized; 16,864,180 and 17,229,986
shares issued in 1996 and 1995, respectively 16,864 17,230
Class B Common Stock, $1.00 par value; 50,000,000
shares authorized; 17,282,930 and 17,297,730
shares issued in 1996 and 1995, respectively 17,283 17,298
Retained earnings 188,683 189,294
Cumulative translation adjustment (3,700) (2,962)
Total shareholders' investment 219,130 220,860
TOTAL LIABILITIES AND SHAREHOLDERS' INVESTMENT $386,164 $366,983
(See accompanying notes to condensed financial statements)
Form 10-Q Crawford & Company
Quarter Ended March 31, 1996 Page 5
Unaudited Consolidated Statements of Cash Flows for the Three-Month Periods
Ended March 31, 1996 and March 31, 1995:
(In Thousands of Dollars)
1996 1995
Cash Flows From Operating Activities:
Net income $10,431 $9,478
Reconciliation of net income to net cash
provided by (used in) operating activities:
Depreciation and amortization 4,163 4,090
Deferred income taxes 2,547 4,037
Loss on sales of property and equipment 42 147
Changes in operating assets and liabilities:
Short-term investments 2,212 2,887
Accounts receivable, net (727) 1,722
Unbilled revenues (4,522) (651)
Prepaid or accrued income taxes 3,477 1,342
Accounts payable and accrued liabilities 12,232 (9,190)
Deferred revenues 328 837
Prepaid expenses and other assets (7,099) (16,245)
Net cash provided by (used in) operating activities 23,084 (1,546)
Cash Flows From Investing Activities:
Acquisitions of property and equipment (2,148) (3,451)
Proceeds from sales of property and equipment 23 21
Net cash used in investing activities (2,125) (3,430)
Cash Flows From Financing Activities:
Dividends paid (5,085) (4,895)
Repurchase of common stock (6,644) (3,512)
Issuance of common stock 306 311
Increase (decrease) in short-term borrowings 483 (1,728)
Increase in long-term debt 102 539
Net cash used in financing activities (10,838) (9,285)
Effect of exchange rate changes on cash and cash
equivalents (82) (27)
Increase (decrease) in cash and cash equivalents 10,039 (14,288)
Cash and cash equivalents at beginning of period 40,802 38,968
Cash and cash equivalents at end of period $50,841 $24,680
Cash payments for income taxes $1,569 $810
(See accompanying notes to condensed financial statements)