Q1 2024 Crawford & Co Earnings Call Transcript
Key Points
- Crawford & Co (CRD.A) reported strong performance in non-weather-related business, indicating a robust diversified business model.
- The company achieved record quarterly revenues in the Broadspire segment and the US GTS service line, reflecting strong client relationships and new business wins.
- Crawford & Co (CRD.A) added $24 million in new and enhanced business during the quarter, demonstrating effective expansion and deepening of customer relationships.
- The company maintains a strong liquidity position, providing capacity for potential future acquisitions and strategic flexibility.
- Crawford & Co (CRD.A) continues to invest in proprietary innovative technologies, aiming to broaden capabilities for clients and drive market share growth.
- First-quarter consolidated revenue declined year over year to $301.7 million, primarily due to reduced catastrophic weather activity affecting weather-dependent business.
- GAAP net income and diluted EPS significantly decreased compared to the same period last year, reflecting lower operating earnings.
- The company experienced a revenue decline of 79% in the networks business due to reduced weather-related claims.
- Increased selling, general, and administrative expenses by 15.5% due to higher professional fees, IT costs, and compensation expenses.
- Free cash flow was negative $29.4 million, compared to negative $9.1 million in the previous year, due to lower operating earnings and higher incentive compensation payments.
Good morning. My name is Dennis, and I will be your conference facilitator today. At this time, I would like to welcome everyone to the Crawford & Company first-quarter 2024 earnings release conference call. In conjunction with this call, a supplementary financial presentation is available on our website at www.crawco.com under the Investor Relations section. (Operator Instructions) As a reminder, ladies and gentlemen, this conference is being recorded today, Tuesday, May 2, 2024.
Some of the matters to be discussed on this conference call and in the supplementary financial presentation may include forward-looking statements that involve risks and uncertainties. These statements may relate to, among other things, our expected future operating results and financial condition, our ability to grow our revenues and reduce our operating expenses, expectations regarding our anticipated contributions through our underfunded defined-benefit pension plans, collectability of our billed and unbilled account receivables, financial results from
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