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• Revenue Growth: 17% year over year increase in Q4 2024.

• Operating Earnings: Increased 140% year over year.

• Dividend: $0.07 per share for CRD-A and CRD-B in Q4 2024.

• North America Loss Adjusting Revenue: Increased 14% year over year to $79.4 million.

• International Operations Revenue: Grew 16% year over year to $112.5 million.

• Broadspire Revenue: Increased 6% year over year to $97.7 million.

• Platform Solutions Revenue: Grew 55% year over year to $57.6 million.

• GAAP Net Income: $5.7 million in Q4 2024.

• GAAP Diluted EPS: $0.11 for CRD-A and $0.12 for CRD-B.

• Non-GAAP Diluted EPS: $0.19 for both CRD-A and CRD-B.

• Adjusted EBITDA: $27.9 million in Q4 2024, up 78% year over year.

• Cash and Cash Equivalents: $55.4 million as of December 31, 2024.

• Total Debt: $218.1 million as of December 31, 2024.

• Free Cash Flow: $10 million for 2024.

• Warning! GuruFocus has detected 10 Warning Signs with CRD.A.

Release Date: March 04, 2025

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

Positive Points

• Crawford & Co (NYSE:CRD.A) reported a strong fourth quarter with 17% year-over-year revenue growth, driven by both non-weather core businesses and weather-related claims.

• The company achieved a 140% increase in operating earnings year-over-year, reflecting high revenues from catastrophe-related claims.

• Crawford & Co (NYSE:CRD.A) paid a quarterly dividend of $0.07 per share for both CRD-A and CRD-B, demonstrating a commitment to returning capital to shareholders.

• The company's diversified business model showed resilience, with revenue growth across all segments, highlighting the strength of its operations.

• Crawford & Co (NYSE:CRD.A) is well-positioned for growth in the PNC insurance markets, gaining market share and strengthening partnerships across all business segments.

Negative Points

• The company's free cash flow decreased significantly in 2024, primarily due to timing-related variations in accounts receivable.

• Weather-driven claims volumes can fluctuate, which introduces variability in financial performance.

• The Broadspire segment experienced lower operating margins due to increased staffing expenses for anticipated new business.

• Crawford & Co (NYSE:CRD.A) did not repurchase any shares of CRD-A during the fourth quarter, indicating limited share buyback activity.

• The company's total debt increased to $218.1 million as of December 31, 2024, up from $209.1 million at the end of 2023.

Q & A Highlights

Q: Are there any significant changes in workers' compensation claims activity at Broadspire? A: Rohit Verma, CEO, stated that there has been stabilization in the type and frequency of claims, with no significant changes to report this year or quarter.