Form 10-Q Crawford & Company
Quarter Ended June 30, 1996 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, 1996 and June 30, 1995:
(In Thousand of Dollars
Except Share and Per Share Data)
1996 1995
Revenues $319,192 $299,512
Costs and Expenses:
Cost of services provided, less reimbursed expenses
of $15,868 in 1996 and $17,073 in 1995 229,996 216,527
Selling, general and administrative expense 54,574 56,075
Total costs and expenses 284,570 272,602
Income Before Income Taxes 34,622 26,910
Provision for Income Taxes 13,963 10,852
Net Income $20,659 $16,058
Earnings Per Share $0.60 $0.46
Weighted Average Shares Outstanding 34,207,508 34,889,009
Declared Dividends Per Share - Class A Common $0.30 $0.29
Declared Dividends Per Share - Class B Common $0.29 $0.27
(See accompanying notes to condensed financial statements)
Form 10-Q Crawford & Company
Quarter Ended June 30, 1996 Page 3
Quarterly Unaudited Consolidated Statements of Income for the Three-Month
Periods ended June 30, 1996 and June 30, 1995:
(In Thousand of Dollars
Except Share and Per Share Data)
1996 1995
Revenues $157,629 $150,863
Costs and Expenses:
Cost of services provided, less reimbursed expenses
of $8,089 in 1996 and $8,695 in 1995 113,192 109,844
Selling, general and administrative expense 27,293 29,993
Total costs and expenses 140,485 139,837
Income Before Income Taxes 17,144 11,026
Provision for Income Taxes 6,916 4,446
Net Income $10,228 $6,580
Earnings Per Share $0.30 $0.19
Weighted Average Shares Outstanding 34,104,541 34,851,171
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 June 30, 1996 Page 4
Consolidated Balance Sheets as of June 30, 1996 and December 31, 1995:
(In Thousands of Dollars)
(Unaudited)
June 30 December 31
1996 1995
ASSETS
Current Assets:
Cash and cash equivalents $45,816 $40,802
Short-term investments, at fair value 2,260 5,596
Accounts receivable, less allowance for doubtful
accounts of $10,611 in 1996 and $10,303 in 1995 113,644 111,636
Unbilled revenues, at estimated billable amounts 64,966 60,486
Prepaid income taxes 8,651 6,115
Prepaid expenses and other current assets 10,641 9,745
Total current assets 245,978 234,380
Property and Equipment:
Property and equipment, at cost: 124,074 121,307
Less accumulated depreciation and amortization (90,326) (84,859)
Net property and equipment 33,748 36,448
Other Assets:
Intangible assets arising from acquisitions, less
accumulated amortization of $8,508 in 1996
and $7,596 in 1995 54,281 55,731
Prepaid pension obligation 42,464 34,243
Other 6,621 6,181
Total other assets 103,366 96,155
TOTAL ASSETS $383,092 $366,983
(See accompanying notes to condensed financial statements)
Form 10-Q Crawford & Company
Quarter Ended June 30, 1996 Page 5
Consolidated Balance Sheets - (Continued)
(In Thousands of Dollars)
(Unaudited)
June 30 December 31
1996 1995
LIABILITIES AND SHAREHOLDERS' INVESTMENT
Current Liabilities:
Short-term borrowings $9,174 $10,154
Accounts payable 10,837 12,366
Accrued compensation and related costs 33,674 26,764
Other accrued liabilities 35,655 29,394
Deferred revenues 15,653 15,504
Current installments of long-term debt 797 872
Total current liabilities 105,790 95,054
Noncurrent Liabilities:
Long-term debt, less current installments 8,827 9,412
Deferred income taxes 15,044 14,854
Deferred revenues 11,478 10,498
Postretirement medical benefit obligation 8,270 7,938
Self-insured risks 8,896 7,347
Other 1,827 1,020
Total noncurrent liabilities 54,342 51,069
Shareholders' Investment:
Class A Common Stock, $1.00 par value; 50,000,000
shares authorized; 16,841,441 and 17,229,986
shares issued in 1996 and 1995, respectively 16,841 17,230
Class B Common Stock, $1.00 par value; 50,000,000
shares authorized; 17,249,388 and 17,297,730
shares issued in 1996 and 1995, respectively 17,249 17,298
Retained earnings 193,002 189,294
Cumulative translation adjustment (4,132) (2,962)
Total shareholders' investment 222,960 220,860
TOTAL LIABILITIES AND SHAREHOLDERS' INVESTMENT $383,092 $366,983
(See accompanying notes to condensed financial statements)
Form 10-Q Crawford & Company
Quarter Ended June 30, 1996 Page 6
Unaudited Consolidated Statements of Cash Flows for the Six-Month Periods Ended
June 30, 1996 and June 30, 1995:
(In Thousands of Dollars)
1996 1995
Cash Flows From Operating Activities:
Net income $20,659 $16,058
Reconciliation of net income to net cash
provided by operating activities:
Depreciation and amortization 8,341 8,450
Deferred income taxes 1,214 4,159
Loss on sales of property and equipment 90 246
Changes in operating assets and liabilities:
Short-term investments 3,336 8,790
Accounts receivable, net (2,761) (4,913)
Unbilled revenues (4,728) (817)
Prepaid or accrued income taxes 252 (1,672)
Accounts payable and accrued liabilities 11,672 (9,411)
Deferred revenues 1,130 2,317
Prepaid expenses and other assets (12,011) (18,782)
Net cash provided by operating activities 27,194 4,425
Cash Flows From Investing Activities:
Acquisitions of property and equipment (4,371) (8,004)
Sales of property and equipment 115 92
Net cash used in investing activities (4,256) (7,912)
Cash Flows From Financing Activities:
Dividends paid (10,117) (9,774)
Repurchase of common stock (7,604) (3,512)
Issuance of common stock 330 724
Decrease in short-term borrowings (525) (775)
Increase in long-term debt 121 336
Net cash used in financing activities (17,795) (13,001)
Effect of exchange rate changes on cash and cash
equivalents (129) 169
Increase (Decrease) in cash and cash equivalents 5,014 (16,319)
Cash and cash equivalents at beginning of period 40,802 38,968
Cash and cash equivalents at end of period $45,816 $22,649
Cash payments for income taxes $13,026 $8,209
(See accompanying notes to condensed financial statements)