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• Consolidated Revenues: $329.4 million, consistent year over year.

• North America Loss Adjusting Revenue: $79.3 million, consistent with prior year.

• International Operations Revenue: $105.7 million, 8% growth from prior year.

• Broadspire Revenue: $99 million, 7% increase from prior year.

• Platform Solutions Revenue: $45.3 million, 24% decrease from prior year.

• GAAP Net Income: $9.5 million, down from $12.3 million in prior year.

• GAAP Diluted EPS: $0.19, down from $0.25 in prior year.

• Non-GAAP Diluted EPS: $0.22, down from $0.35 for CRD A and $0.36 for CRD B in prior year.

• Operating Earnings: $21.8 million, 6.6% of revenues, down from $29.9 million or 9.1% of revenues in prior year.

• Adjusted EBITDA: $29.6 million, 9% of revenues, down from $38.6 million or 11.7% of revenues in prior year.

• Cash and Cash Equivalents: $52.3 million as of September 30, 2024.

• Total Debt: $238.4 million as of September 30, 2024.

• Free Cash Flow: Negative $18.4 million, compared to $40.4 million in prior year.

• Dividend: $0.07 per share for both CRD A and CRD B shares.

• Warning! GuruFocus has detected 6 Warning Signs with CRD.A.

Release Date: November 05, 2024

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

• Crawford & Co (NYSE:CRD.A) achieved a new quarterly revenue record in its Broadspire and U.S. GTS service lines, demonstrating strong performance in non-weather dependent businesses.

• The international operations segment showed solid revenue growth and margin expansion, with an 8% increase in revenue compared to the previous year.

• The company added $24.4 million in new and enhanced business, reflecting a focus on sustainable growth and strategic partnerships.

• Crawford & Co (NYSE:CRD.A) maintained a strong balance sheet with leverage at approximately 2.2 times EBITDA, providing financial flexibility.

• The company is committed to returning capital to shareholders, as evidenced by ongoing quarterly dividends for CRD A and CRD B shares.

Negative Points

• Consolidated earnings for the quarter declined due to lower weather-related revenue in North America loss adjusting and platform solutions segments.

• Operating earnings in North America loss adjusting decreased by 48% from the prior year, impacted by lower storm severity and frequency.

• Platform Solutions segment saw a 24% decrease in revenues compared to the previous year, affected by reduced storm frequency.

• GAAP net income attributable to shareholders decreased to $9.5 million from $12.3 million in the same period of 2023.

• Free cash flow was negative $18.4 million, a significant decrease from $40.4 million in the previous year, primarily due to lower operating earnings and higher incentive compensation payments.