EXHIBIT 99.1 [CRDA [CRDB LISTED LISTED NYSE] NYSE] [CRAWFORD LOGO] PRESS RELEASE CRAWFORD & COMPANY 5620 GLENRIDGE DRIVE, N.E. P.O. BOX 5047 ATLANTA, GEORGIA 30302 (404) 256-0830 FOR IMMEDIATE RELEASE DATE: APRIL 24, 2003 FROM: GROVER L. DAVIS CHAIRMAN AND CHIEF EXECUTIVE OFFICER - -------------------------------------------------------------------------------- CRAWFORD REPORTS FIRST QUARTER 2003 RESULTS Crawford & Company (NYSE: CRDA and CRDB) announced its financial results for the first quarter ended March 31, 2003. First quarter 2003 revenues before reimbursements totaled $167.3 million compared with $171.8 million in the 2002 first quarter. First quarter 2003 net income was $3.2 million versus $8.2 million for the 2002 first quarter. Net income in the 2002 first quarter included a payment received from a former vendor in full settlement of a business dispute of $3.8 million, net of related income tax expense, or $0.08 per share. First quarter 2003 net income per share was $0.07 per share, compared with $0.17 in the prior-year quarter. Operating earnings is one of the key performance measures used by the Company's senior management to evaluate the performance of its business and make resource allocation decisions. The Company believes this measure is useful to investors in that it allows them to evaluate its performance using the same criteria that management uses. Operating earnings (earnings before special credit, net corporate interest and taxes) in the 2003 first quarter totaled $6.4 million compared with $8.0 million in the comparable 2002 quarter. Following is a reconciliation of consolidated net income to operating earnings and the related margin as a percentage of revenues before reimbursements: Quarter Ended Quarter Ended March 31, Margin March 31, Margin (in thousands) 2003 % 2002 % ------------- ------ ------------- ------ Net income $3,249 1.9% $ 8,167 4.8% Add/(deduct): Special credit -- -- (6,000) (3.5) Net corporate interest 1,279 .8 1,178 .7 Income taxes 1,859 1.1 4,674 2.7 ------ --- ------- --- Operating earnings $6,387 3.8% $ 8,019 4.7% ====== === ======= === Page 1 of 7 [CRAWFORD LOGO] PRESS RELEASE CRAWFORD & COMPANY 5620 GLENRIDGE DRIVE, N.E. P.O. BOX 5047 ATLANTA, GEORGIA 30302 (404) 256-0830 U.S. revenues before reimbursements were $115.1 million in the first quarter of 2003 compared with $126.6 million in the 2002 first quarter. Revenues from the insurance company market were $58.7 million in the 2003 first quarter compared with $64.8 million in the 2002 period, reflecting a continued softening in the Company's U.S. insurance company referrals for high-frequency, low-severity claims in the current quarter. Lower medical bill auditing revenues associated with the previously reported non-renewal of a contract with a major domestic insurer contributed $3.1 million of this decline. Revenues from self-insured clients were $42.5 million in the 2003 first quarter compared with $50.3 million in the 2002 quarter, primarily reflecting declines in U.S. employment levels and associated injury rates which have contributed to a reduction in workers' compensation claims. Class action services revenues were $13.9 million for the 2003 first quarter, compared with $11.5 million in the comparable year-ago quarter. First quarter 2003 international revenues grew to $52.2 million from $45.2 million for the same period in 2002. This growth is largely due to the Company's third quarter 2002 acquisition of the loss adjusting business of Robertson and Company in Australia and growth within its Canadian and United Kingdom operations. During the 2003 first quarter, the U.S. dollar weakened significantly against the British Pound and the Euro, resulting in a net exchange rate benefit in the quarter. Excluding the benefit of exchange rate fluctuations, international revenues would have been $48.1 million in the 2003 first quarter. Mr. Grover L. Davis, chief executive officer of Crawford & Company, stated, "Our first quarter results reflect a continued industry-wide decline in property & casualty claims frequency. Conservative underwriting, increases in policy deductibles, and mild weather have contributed to a decline in property and casualty claims frequency, resulting in an overall 14% decline in cases received in the U.S. These factors impacted our U.S. insurance company referrals for high-frequency, low-severity claims and resulted in lower U.S. revenues. In addition, our self-insured market revenues in the U.S. were negatively impacted by a reduction in workers' compensation claims frequency. In fact, the Bureau of Labor Statistics recently reported an 8% decline in private sector workplace injuries, and employee absentee rates are at their lowest levels since 1991." "In the face of challenging industry circumstances, we successfully reduced our U.S. operating expenses nearly 8% in the current quarter in response to the decline in claims volume. While we could not maintain our operating margin, we remain committed to preserving our profitability and are currently taking aggressive steps to reduce our U.S. annual operating costs by approximately $15 million from their current level. This is a difficult and painful decision, but we believe that it is essential in order to increase our U.S. operating margin to an acceptable level of 6% to 7% over the remainder of the year. This operating margin would equate to an after-tax margin of approximately 4%. By achieving these cost reductions, we believe that we will be able to preserve our current level of dividends, which is of paramount importance to us in delivering shareholder value and building investor confidence." Page 2 of 7 [CRAWFORD LOGO] PRESS RELEASE CRAWFORD & COMPANY 5620 GLENRIDGE DRIVE, N.E. P.O. BOX 5047 ATLANTA, GEORGIA 30302 (404) 256-0830 Mr. Davis concluded, "Our technology initiatives are continuing to bear fruit and we will begin our pilot implementation of a case management system to support our medical and vocational consultants in the next month. This system will greatly improve employee mobility and information access, service consistency and quality, and the validation of the benefits our clients gain from our services. The production rollout of this system will begin in July." Crawford & Company's management will host a conference call with analysts on Thursday, April 24, 2003 at 3:00 P.M. EDT, to discuss its quarterly earnings and other developments. The call will be recorded and available for replay through May 1, 2003. You may dial 1-800-428-6051 (973-709-2089 international) to listen to the replay. The access code is 289711. Alternatively, please visit our web site at www.crawfordandcompany.com for a live audio web cast. Further information regarding the Company's financial position, operating results, and cash flows for the quarter ended March 31, 2003 is shown on the attached statements. Based in Atlanta, Georgia, Crawford & Company (www.crawfordandcompany.com) is the world's largest independent provider of claims management solutions to insurance companies and self-insured entities, with a global network of more than 700 offices in 67 countries. Major service lines include workers' compensation claims administration and healthcare management services, property and casualty claims management, class action services and risk management information services. The Company's shares are traded on the NYSE under the symbols CRDA and CRDB. - -------------------------------------------------------------------------------- Except for historical information contained herein, the matters discussed in this news release are forward-looking statements that involve risks and uncertainties. The results achieved in the quarter ended March 31, 2003 are not necessarily indicative of future prospects for the Company. Actual results in future quarters may differ materially. For a complete discussion regarding factors which could affect the Company's financial performance, see the Company's Form 10-K for the year ended December 31, 2002 filed with the Securities and Exchange Commission, in particular the information under the headings "Business", "Legal Proceedings" and "Management's Discussion and Analysis of Financial Condition and Results of Operations." The Company undertakes no obligation to publicly release any revisions to any forward-looking statements contained herein to reflect events or circumstances occurring after the date hereof or to reflect the occurrence of unanticipated events. The Company's actual results may differ materially from those projected in forward-looking statements made by, or on behalf of, the Company. - -------------------------------------------------------------------------------- FOR FURTHER INFORMATION REGARDING THIS PRESS RELEASE, PLEASE CALL JOHN GIBLIN AT (404) 847-4571. Page 3 of 7 [CRAWFORD LOGO] PRESS RELEASE CRAWFORD & COMPANY 5620 GLENRIDGE DRIVE, N.E. P.O. BOX 5047 ATLANTA, GEORGIA 30302 (404) 256-0830 CRAWFORD & COMPANY COMPARATIVE STATEMENTS OF INCOME (In Thousands Except Per Share Data) QUARTER ENDED MARCH 31 2003 2002 % Change - ---------------------- -------- -------- -------- Revenues: Revenues Before Reimbursements $167,258 $171,767 -3% Reimbursements 9,615 8,634 11% -------- -------- Total Revenues 176,873 180,401 -2% Costs and Expenses: Cost of Services Before Reimbursements 127,792 130,591 -2% Reimbursements 9,615 8,634 11% -------- -------- Cost of Services 137,407 139,225 -1% Selling, General, and Administrative 33,079 33,157 0% Special Credit(1) -- (6,000) nm Corporate Interest, Net 1,279 1,178 9% -------- -------- Total Costs and Expenses 171,765 167,560 3% -------- -------- Income Before Income Taxes 5,108 12,841 -60% Income Taxes 1,859 4,674 -60% -------- -------- Net Income $ 3,249 $ 8,167 -60% ======== ======== Net Income Per Share: Basic $ 0.07 $ 0.17 -59% ======== ======== Diluted $ 0.07 $ 0.17 -59% ======== ======== Weighted Average Shares Outstanding: Basic 48,622 48,541 ======== ======== Diluted 48,689 48,644 ======== ======== - --------------- (1) Special credit related to a payment from a former vendor in full settlement of a business dispute. nm = not meaningful Page 4 of 7 [CRAWFORD LOGO] PRESS RELEASE CRAWFORD & COMPANY 5620 GLENRIDGE DRIVE, N.E. 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BOX 5047 ATLANTA, GEORGIA 30302 (404) 256-0830 CRAWFORD & COMPANY SUMMARY RESULTS BY OPERATING SEGMENT QUARTER ENDED MARCH 31, 2003 (In Thousands Except Percentages) U.S. International Total ----------------------- --------------------- ----------------------- 2003 2002 2003 2002 2003 2002 -------- -------- ------- ------- -------- -------- Revenues Before Reimbursements $115,073 $126,610 $52,185 $45,157 $167,258 $171,767 Compensation & Benefits 74,344 81,759 35,493 31,400 109,837 113,159 % of Revenues 64.6% 64.5% 68.0% 69.5% 65.7% 65.9% Expenses Other than Reimbursements, Compensation & Benefits 36,680 38,572 14,354 12,017 51,034 50,589 % of Revenues 31.9% 30.5% 27.5% 26.6% 30.5% 29.4% -------- -------- ------- ------- -------- -------- Operating Earnings (1) $ 4,049 $ 6,279 $ 2,338 $ 1,740 $ 6,387 $ 8,019 % of Revenues 3.5% 5.0% 4.5% 3.9% 3.8% 4.7% ======== ======== ======= ======= ======== ======== - --------------- (1) Earnings before special credit, net corporate interest, and taxes. Page 5 of 7 [CRAWFORD LOGO] PRESS RELEASE CRAWFORD & COMPANY 5620 GLENRIDGE DRIVE, N.E. P.O. BOX 5047 ATLANTA, GEORGIA 30302 (404) 256-0830 CRAWFORD & COMPANY CONDENSED COMPARATIVE BALANCE SHEETS MARCH 31, 2003 AND DECEMBER 31, 2002 (In Thousands) MARCH 31 December 31 ASSETS 2003 2002 --------- ----------- Current Assets: Cash and Cash Equivalents $ 32,097 $ 31,091 Accounts Receivable, Net 135,437 135,174 Unbilled Revenues 101,919 93,792 Prepaid Expenses and Other Current Assets 10,889 11,968 --------- --------- Total Current Assets 280,342 272,025 --------- --------- Property and Equipment, at Cost 147,249 144,706 Less Accumulated Depreciation (111,157) (108,607) --------- --------- Net Property and Equipment 36,092 36,099 --------- --------- Other Assets 171,805 166,652 --------- --------- Total Assets $ 488,239 $ 474,776 ========= ========= LIABILITIES AND SHAREHOLDERS' INVESTMENT Current Liabilities: Short-Term Borrowings $ 34,293 $ 30,019 Accounts Payable 30,743 31,956 Accrued Liabilities 67,026 66,265 Deferred Revenues 19,733 18,516 Current Installments of Long-Term Debt 1,704 1,493 --------- --------- Total Current Liabilities 153,499 148,249 --------- --------- Noncurrent Liabilities 170,255 167,096 --------- --------- Shareholders' Investment: Class A Common Stock, $1.00 Par Value 23,925 23,925 Class B Common Stock, $1.00 Par Value 24,697 24,697 Additional Paid-in Capital 523 523 Retained Earnings 192,099 191,767 Accumulated Other Comprehensive Loss (76,759) (81,481) --------- --------- Total Shareholders' Investment 164,485 159,431 --------- --------- Total Liabilities and Shareholders' Investment $ 488,239 $ 474,776 ========= ========= Page 6 of 7 [CRAWFORD LOGO] PRESS RELEASE CRAWFORD & COMPANY 5620 GLENRIDGE DRIVE, N.E. 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BOX 5047 ATLANTA, GEORGIA 30302 (404)256-0830 CRAWFORD & COMPANY CONSOLIDATED STATEMENTS OF CASH FLOWS QUARTER ENDED MARCH 31, 2003 AND MARCH 31, 2002 (In Thousands) 2003 2002 -------- -------- CASH FLOWS FROM OPERATING ACTIVITIES: Net Income $ 3,249 $ 8,167 Reconciliation of Net Income to Net Cash Provided by Operating Activities: Depreciation and Amortization 4,055 4,335 Deferred Income Taxes 221 (287) Loss on Sales of Property and Equipment 71 7 Changes in Operating Assets and Liabilities, Net of Effects of Acquisitions: Accounts Receivable, Net 3,056 (1,005) Unbilled Revenues (5,986) (3,512) Accrued or Prepaid Income Taxes (1,012) 433 Accounts Payable and Accrued Liabilities (2,961) (3,561) Deferred Revenues 1,039 (1,174) Prepaid and Accrued Pension Costs 3,946 3,485 Prepaid Expenses and Other Assets 788 (3,592) ------- ------- Net Cash Provided by Operating Activities 6,466 3,296 ------- ------- CASH FLOWS FROM INVESTING ACTIVITIES: Acquisitions of Property and Equipment, Net (2,228) (2,555) Capitalization of Computer Software Costs (3,167) (2,609) ------- ------- Net Cash Used in Investing Activities (5,395) (5,164) ------- ------- CASH FLOWS FROM FINANCING ACTIVITIES: Dividends Paid (2,918) (6,796) Proceeds from Exercise of Stock Options -- 55 Increase in Short-Term Borrowings 2,140 2,983 Decrease in Long-Term Debt (75) (30) ------- ------- Net Cash Used in Financing Activities (853) (3,788) ------- ------- Effect of Exchange Rate Changes on Cash and Cash Equivalents 788 (197) Increase (Decrease) in Cash and Cash Equivalents 1,006 (5,853) Cash and Cash Equivalents at Beginning of Period 31,091 21,966 ------- ------- Cash and Cash Equivalents at End of Period $32,097 $16,113 ======= ======= Page 7 of 7