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Crawford & Company Reports 2021 Fourth Quarter and Full Year Results Double Digit Revenue Growth in Quarter and Year

Crawford & Company® (NYSE: CRD-A and CRD-B), the world’s largest publicly listed independent provider of claims management and outsourcing solutions to carriers, brokers and corporations, today announced its financial results for the fourth quarter ended December 31, 2021.

The Company’s two classes of stock are substantially identical, except with respect to voting rights and the Company’s ability to pay greater cash dividends on the non-voting Class A Common Stock (CRD-A) than on the voting Class B Common Stock (CRD-B), subject to certain limitations. In addition, with respect to mergers or similar transactions, holders of CRD-A must receive the same type and amount of consideration as holders of CRD-B, unless different consideration is approved by the holders of 75% of CRD-A, voting as a class.

GAAP Consolidated Results

Fourth Quarter 2021

  • Revenues before reimbursements of $292.9 million, up 14% over $257.4 million for the 2020 fourth quarter
  • Net income attributable to shareholders of $1.7 million, compared with $9.4 million in the same period last year
  • Diluted earnings per share of $0.03 for both CRD-A and CRD-B, compared with $0.18 for both CRD-A for CRD-B in the prior year fourth quarter

Non-GAAP Consolidated Results

Fourth Quarter 2021

Foreign currency exchange rates increased revenues before reimbursements by $3.0 million or 1%. Presented on a constant dollar basis to the prior year, revenues before reimbursements totaled $289.9 million, increasing 13% over $257.4 million for the 2020 fourth quarter.

Non-GAAP consolidated results for 2021 exclude the non-cash after-tax amortization of intangible assets of $2.0 million. Non-GAAP consolidated results for 2020 exclude a similar adjustment for amortization of intangible assets of $1.9 million, restructuring and other costs of $1.7 million, and the income tax impact of the first quarter 2020 goodwill impairment of $0.9 million, as explained further on page 4.

  • Net income attributable to shareholders, on a non-GAAP basis, totaled $3.6 million in the 2021 fourth quarter, compared with $13.9 million in the same period last year
  • Diluted earnings per share, on a non-GAAP basis, totaled $0.07 for both CRD-A and CRD-B in the 2021 fourth quarter, compared with $0.27 for both CRD-A and CRD-B in the prior year fourth quarter
  • Consolidated adjusted operating earnings, on a non-GAAP basis, were $9.1 million, or 3.1% of revenues before reimbursements in the 2021 fourth quarter, compared with $18.5 million, or 7.2% of revenues, in the 2020 fourth quarter
  • Consolidated adjusted EBITDA, a non-GAAP financial measure, was $17.6 million, or 6.0% of revenues before reimbursements in the 2021 fourth quarter, compared with $27.5 million, or 10.7% of revenues, in the 2020 fourth quarter

GAAP Consolidated Results

Full Year 2021

  • Revenues before reimbursements of $1.102 billion in 2021, up 12% over $982.5 million for 2020
  • Net income attributable to shareholders of $30.7 million, compared to $28.3 million in 2020
  • Diluted earnings per share of $0.57 for both CRD-A and CRD-B, compared with $0.54 for CRD-A and $0.52 for CRD-B in 2020

Non-GAAP Consolidated Results

Full Year 2021

Foreign currency exchange rates increased revenues before reimbursements by $29.9 million or 3%. Presented on a constant dollar basis to the prior year, revenues before reimbursements totaled $1.072 billion, increasing 9% over $982.5 million for 2020.

Non-GAAP consolidated results for 2021 exclude the non-cash after-tax amortization of intangible assets of $8.3 million. Non-GAAP consolidated results for 2020 exclude a similar adjustment for amortization of intangible assets of $8.7 million, restructuring and other costs of $4.9 million, goodwill impairment of $14.2 million, and gain on disposition of businesses of $10.8 million.

  • Net income attributable to shareholders, on a non-GAAP basis, totaled $39.0 million in 2021, compared with $45.4 million in 2020
  • Diluted earnings per share, on a non-GAAP basis, totaled $0.72 for both CRD-A and CRD-B in 2021, compared with $0.86 for CRD-A and $0.84 for CRD-B in the prior year
  • Consolidated adjusted operating earnings, on a non-GAAP basis, were $62.5 million, or 5.7% of revenues before reimbursements in 2021, compared with $71.8 million, or 7.3% of revenues, in 2020
  • Consolidated adjusted EBITDA, a non-GAAP financial measure, was $98.3 million, or 8.9% of revenues before reimbursements in 2021, compared with $104.8 million, or 10.7% of revenues, in 2020

Management Comments

“Crawford delivered record revenue in 2021, excluding our previously held GCG business, driven by U.S.-led strength across the business. In Platform Solutions, our focused efforts to scale our offerings resulted in deeper relationships with top-5 carriers, while our Loss Adjusting and TPA segments benefitted from recovering economic activity in the U.S. In contrast, outside of the U.S. we experienced continued headwinds, namely a benign claims environment and fewer wage subsidies in Canada, delayed travel and hospitality recovery in Europe, increased competition for talent in Asia and pressure in one of our U.K. businesses. We believe our margin headwinds are temporary and our exceptional top-line results underscore the efficacy of our growth strategy, the strength of our global service lines, and most importantly, the relentless dedication and commitment of our employees,” commented Mr. Rohit Verma, chief executive officer of Crawford & Company.

“Throughout the year, we continued to execute our disciplined capital deployment strategy, which included the completion of three acquisitions, opportunistically repurchasing shares, and re-investment in the core business, while at the same time maintaining our strong balance sheet. Carrying forward this positive momentum, we remain keenly focused on our pursuit of restoring and enhancing lives, businesses and communities, and are confident our growth trajectory will deliver value creation for our shareholders,” concluded Mr. Verma.

Segment Results for the Fourth Quarter and Full Year

Crawford Loss Adjusting

Crawford Loss Adjusting revenues before reimbursements were $123.1 million in the fourth quarter of 2021, increasing 10.5% from $111.4 million in the fourth quarter of 2020. Absent foreign currency rate benefits of $2.1 million, fourth quarter 2021 revenues would have been $121.0 million.

The segment had operating earnings of $4.9 million in the 2021 fourth quarter decreasing from $16.3 million in the fourth quarter of 2020. The operating margin was 4.0% in the 2021 quarter and 14.6% in the 2020 quarter.

Crawford Loss Adjusting revenues before reimbursements were $475.6 million in 2021, increasing 8.5% from $438.5 million in 2020. Absent foreign currency rate benefits of $21.1 million, 2021 revenues would have been $454.5 million.

The segment had operating earnings of $23.0 million in 2021 decreasing from $41.1 million in 2020. The operating margin was 4.8% in 2021 and 9.4% in 2020.

Crawford Platform Solutions

Crawford Platform Solution revenues before reimbursements were $70.6 million in the fourth quarter of 2021, up 40.7% from $50.2 million in the same period of 2020. Absent foreign exchange rate benefits of $0.3 million, revenues would have been $70.4 million for the 2021 fourth quarter.

Operating earnings were $10.4 million in the 2021 fourth quarter, increasing from $6.7 million in the 2020 period. The segment’s operating margin for the 2021 quarter was 14.7% as compared with 13.4% in the 2020 quarter.

Crawford Platform Solution revenues before reimbursements were $228.5 million in 2021, up 32.4% from $172.6 million in 2020. Absent foreign exchange rate benefits of $1.9 million, revenues would have been $226.6 million for 2021.

Operating earnings were $36.3 million in 2021, increasing from $27.7 million in the 2020 period. The segment’s operating margin for 2021 was 15.9% as compared with 16.0% in 2020.

Crawford TPA Solutions

Crawford TPA Solutions segment revenues before reimbursements were $99.1 million in the 2021 fourth quarter, increasing 3.5% from $95.8 million in the 2020 fourth quarter. Absent foreign currency rate benefits of $0.6 million, fourth quarter 2021 revenues would have been $98.6 million.

Crawford TPA Solutions recorded operating earnings of $3.1 million in the fourth quarter of 2021, representing an operating margin of 3.1%, decreasing from $6.8 million, or 7.1% of revenues, in the 2020 fourth quarter.

Crawford TPA Solutions segment revenues before reimbursements were $398.0 million in 2021, increasing 7.2% from $371.4 million in 2020. Absent foreign currency rate benefits of $6.8 million, 2021 revenues would have been $391.1 million.

Crawford TPA Solutions recorded operating earnings of $17.6 million in 2021, representing an operating margin of 4.4%, decreasing from $20.5 million, or 5.5% of revenues, in 2020.

Unallocated Corporate and Shared Costs and Credits, Net

Unallocated corporate costs were $9.3 million in the fourth quarter of 2021, compared with $11.2 million in the same period of 2020. The decrease for the three months ended December 31, 2021 was primarily due to a $2.6 million decrease in self-insured expenses, $2.1 million lower pension expense, incentive compensation and other unallocated costs, partially offset by a $2.8 million reduction in the unallocated portion of the Canada Emergency Wage Subsidy ("CEWS") benefits, compared with 2020.

For the full year, unallocated corporate costs were $14.4 million in 2021, compared with $17.4 million in 2020. The decrease for 2021 was primarily due to a $2.3 million decrease in self-insurance and related legal costs, $5.0 million in severance and other transition costs in 2020 that were not present in 2021, and a $2.7 million decrease in pension expense, partially offset by a $3.6 million lower credit from CEWS, and a $3.4 million increase in other unallocated costs.

During the fourth quarter, the Company recognized no benefit from CEWS as compared with an overall benefit of $4.8 million in the 2020 fourth quarter. For the year, the Company recognized a $5.9 million benefit from CEWS in 2021 as compared with $13.8 million in 2020.

Income Tax Impact of First Quarter 2020 Goodwill Impairment

The Company recognized a non-cash goodwill impairment in the 2020 first quarter, totaling $17.7 million, or $14.2 million after tax. Due to the non-discrete income tax treatment of the goodwill impairment, the initial income tax benefit related to the impairment normalized during the year, resulting in a lower full year income tax benefit. During the 2020 fourth quarter, the impact of this treatment decreased the income tax benefit by $0.9 million. There was no goodwill impairment in 2021.

Business Acquisitions and Dispositions

On October 1, 2021, the Company acquired 100% of Praxis Consulting, Inc., an established subrogation claims service provider in the U.S. This acquisition allows the Company to expand its footprint in the U.S. subrogation claims market. The purchase price includes an initial cash consideration of $21.5 million, working capital adjustment payable of $0.7 million, a deferred payment of $20.0 million in February 2022, and a maximum $10.0 million payable based on achieving certain revenue performance goals in 2023 and 2024, as defined in the purchase agreement.

On October 4, 2021, the Company acquired BosBoon Expertise Group B.V. ("BosBoon"), a Netherlands-based specialist loss adjusting company. BosBoon offers a specialist range of loss adjusting services which will be added to the existing Crawford Global Technical Services proposition in the Netherlands. The purchase price includes an initial cash consideration of $2.1 million, before working capital adjustment, and a maximum of $1.9 million payable over the next two years based on achieving certain financial and nonfinancial goals, as defined in the purchase agreement.

Subsequent Events

Segment Realignment

In connection with the realignment of management responsibilities on January 1, 2022, the Company has realigned its operating segments by moving to a geographic reporting structure consisting of North America Loss Adjusting, International Operations, Broadspire, and Platform Solutions. The Company's revised reportable segments are comprised of the following:

  • North America Loss Adjusting, which services the North American property and casualty market. This is comprised of the previously reported Crawford Loss Adjusting segment in the U.S. and Canada, including Global Technical Services and edjuster. The Canadian operations will include all operations within that country, including those previously reported within the Crawford TPA Solutions and Crawford Platform Solutions segments.
  • International Operations, which services the global property and casualty market outside North America. This is comprised of the previously reported Crawford Loss Adjusting segment outside of North America, including Crawford Legal Services which was previously within the Crawford TPA Solutions segment. The International Operations will include all operations within the respective countries, including those previously reported within the Crawford TPA Solutions and Crawford Platform Solutions segments.
  • Broadspire, which provides third party administration for workers' compensation, auto and liability, disability absence management, medical management, and accident and health to corporations, brokers and insurers in the U.S.
  • Platform Solutions, which consists of Contractor Connection, Networks, and Subrogation service lines in the U.S. The Networks service line includes Catastrophe operations and WeGoLook.

The succeeding interim and annual periods will disclose the reportable segments under the new basis with prior periods restated to reflect the change.

Asset Disposal

The Company sold its Canadian head office building in Kitchener, Ontario Canada in the first quarter of 2022 for $3.1 million and expects to recognize an estimated pretax gain on disposal of $1.8 million.

Share Repurchase Authorization

On February 10, 2022, the Company's Board of Directors authorized the addition of 5,000,000 shares of CRD-A or CRD-B (or a combination of the two) to its 2021 Repurchase Authorization which had a remaining authorization to purchase 413,317 shares at December 31, 2021. Under the repurchase program, repurchases may be made through December 31, 2023 in the open market or privately negotiated transactions at such times and for such prices as management deems appropriate, subject to applicable regulatory guidelines. The new authorization does not obligate Crawford to acquire any stock, and purchases may be commenced or suspended at any time based on market conditions and other factors that the Company deems appropriate.

COVID-19

The Company has experienced continued recovery from the negative economic impact of COVID-19 in 2021, particularly in the U.S., compared with the significant reductions experienced in the prior year, where revenues were down in the range of $45.0 to $55.0 million. Due to ongoing negative impacts in multiple regions, it is uncertain whether such recovery can be sustained and continue. The economic impact from COVID-19 could have a material impact to our results of operations, financial condition, and cash flows in one or more future quarters. In addition, it is possible that changes in economic conditions and steps taken by international, federal, state and/or local governments in response to COVID-19 could have negative impacts, including labor shortages which could increase compensation costs and other expenses, unless mitigated by government assistance programs to corporations.

Balance Sheet and Cash Flow

The Company’s consolidated cash and cash equivalents position as of December 31, 2021, totaled $53.2 million, compared with $44.7 million at December 31, 2020. The Company’s total debt outstanding as of December 31, 2021, totaled $175.0 million, compared with $113.6 million at December 31, 2020.

The Company’s operations provided $54.3 million of cash during 2021, compared with $93.2 million in 2020. The decrease in cash provided by operating activities was primarily due to a $16.8 million increase in change in billed and unbilled accounts receivable, a $19.5 million change in payroll tax payments under the CARES Act, and an increase in income tax payments.

The Company made $9.0 million in contributions to its U.S. defined benefit pension plan and $0.7 million to its U.K. plans for 2021, compared with $9.0 million in contributions to the U.S. plan and $0.5 million to the U.K. plans in 2020.

During 2021, the Company repurchased 530,598 shares of CRD-A and 1,698,182 shares of CRD-B at an average per share cost of $9.63 and $8.26, respectively. The total cost of share repurchases during 2021 was $19.1 million.

Conference Call

As previously announced, Crawford & Company will host a conference call on March 15, 2022, at 8:30 a.m. Eastern Time to discuss its fourth quarter 2021 results. The conference call can be accessed live by dialing 1-833-900-2283 and using Conference ID 4285212. A presentation for tomorrow’s call can also be found on the investor relations portion of the Company’s website, https://ir.crawco.com. The call will be recorded and available for replay through April 15, 2022. You may dial 1-800-585-8367 to listen to the replay.

Non-GAAP Presentation

In the normal course of business, our operating segments incur certain out-of-pocket expenses that are thereafter reimbursed by our clients. Under U.S. generally accepted accounting principles (“GAAP”), these out-of-pocket expenses and associated reimbursements are required to be included when reporting expenses and revenues, respectively, in our consolidated results of operations. In the foregoing discussion and analysis of segment results of operations, we do not include a gross up of segment expenses and revenues for these pass-through reimbursed expenses. The amounts of reimbursed expenses and related revenues offset each other in our results of operations with no impact to our net income or operating earnings. A reconciliation of revenues before reimbursements to consolidated revenues determined in accordance with GAAP is self-evident from the face of the accompanying unaudited condensed consolidated statements of operations.

Operating earnings is the primary financial performance measure used by our senior management and chief operating decision maker (“CODM”) to evaluate the financial performance of our Company and operating segments, and make resource allocation and certain compensation decisions. Unlike net income, segment operating earnings is not a standard performance measure found in GAAP. We believe this measure is useful to others in that it allows them to evaluate segment and consolidated operating performance using the same criteria used by our senior management and CODM. Consolidated operating earnings represent segment earnings including certain unallocated corporate and shared costs, but before net corporate interest expense, stock option expense, amortization of customer-relationship intangible assets, goodwill impairment, restructuring costs, gain on disposition of businesses, income taxes and net income or loss attributable to noncontrolling interests and redeemable noncontrolling interests.

Adjusted EBITDA is not a term defined by GAAP and as a result our measure of adjusted EBITDA might not be comparable to similarly titled measures used by other companies. However, adjusted EBITDA is used by management to evaluate, assess and benchmark our operational results. The Company believes that adjusted EBITDA is relevant and useful information widely used by analysts, investors and other interested parties. Adjusted EBITDA is defined as net income attributable to shareholders of the Company with recurring adjustments for depreciation and amortization, net corporate interest expense, income taxes and stock-based compensation expense. Additionally, adjustments for non-recurring expenses for goodwill impairment, restructuring costs and gain on disposition of business have been included in the calculation of adjusted EBITDA.

Unallocated corporate and shared costs and credits include expenses and credits related to our chief executive officer and Board of Directors, certain provisions for bad debt allowances or subsequent recoveries such as those related to bankrupt clients, defined benefit pension costs or credits for our frozen U.S. pension plan, certain unallocated professional fees and certain self-insurance costs and recoveries that are not allocated to our individual operating segments.

Income taxes, net corporate interest expense, stock option expense and amortization of customer-relationship intangible assets are recurring components of our net income, but they are not considered part of our segment operating earnings because they are managed on a corporate-wide basis. Income taxes are calculated for the Company on a consolidated basis based on statutory rates in effect in the various jurisdictions in which we provide services and vary significantly by jurisdiction. Net corporate interest expense results from capital structure decisions made by senior management and the Board of Directors, affecting the Company as a whole. Stock option expense represents the non-cash costs generally related to stock options and employee stock purchase plan expenses which are not allocated to our operating segments. Amortization expense is a non-cash expense for finite-lived customer-relationship and trade name intangible assets acquired in business combinations. None of these costs relate directly to the performance of our services or operating activities and, therefore, are excluded from segment operating earnings to better assess the results of each segment's operating activities on a consistent basis.

A significant portion of our operations are international. These international operations subject us to foreign exchange fluctuations. The following table illustrates revenue as a percentage of total revenue for the major currencies of the geographic areas that Crawford does business:

 

 

Three Months Ended

 

Year Ended

(in thousands)

 

December 31,

2021

 

December 31,

2020

 

December 31,

2021

 

December 31,

2020

Geographic

Area

Currency

USD

equivalent

% of

total

 

USD

equivalent

% of

total

 

USD

equivalent

% of

total

 

USD

equivalent

% of

total

U.S.

USD

$

182,115

 

 

62.2

%

 

$

151,765

 

 

59.0

%

 

$

658,785

 

 

59.8

%

 

$

570,820

 

 

58.1

%

U.K.

GBP

 

32,396

 

 

11.1

%

 

 

33,665

 

 

13.1

%

 

 

134,663

 

 

12.2

%

 

 

128,674

 

 

13.1

%

Canada

CAD

 

22,336

 

 

7.6

%

 

 

20,823

 

 

8.1

%

 

 

84,945

 

 

7.7

%

 

 

89,162

 

 

9.1

%

Australia

AUD

 

26,221

 

 

9.0

%

 

 

22,179

 

 

8.6

%

 

 

105,633

 

 

9.6

%

 

 

80,589

 

 

8.2

%

Europe

EUR

 

12,721

 

 

4.3

%

 

 

13,985

 

 

5.4

%

 

 

54,136

 

 

4.9

%

 

 

54,122

 

 

5.5

%

Rest of World

Various

 

17,105

 

 

5.8

%

 

 

15,004

 

 

5.8

%

 

 

63,870

 

 

5.8

%

 

 

59,125

 

 

6.0

%

Total Revenues, before reimbursements

$

292,894

 

 

100.0

%

 

$

257,421

 

 

100.0

%

 

$

1,102,032

 

 

100.0

%

 

$

982,492

 

 

100.0

%

 

Following is a reconciliation of segment and consolidated operating earnings to net income attributable to shareholders of Crawford & Company on a GAAP basis:

 

Three Months Ended

 

Year Ended

(in thousands)

December 31,

2021

December 31,

2020

 

December 31,

2021

December 31,

2020

Operating earnings:

 

 

 

 

 

 

 

 

 

Crawford Loss Adjusting

$

4,866

 

$

16,250

 

 

$

22,990

 

$

41,104

 

Crawford Platform Solutions

 

10,397

 

 

6,711

 

 

 

36,334

 

 

27,650

 

Crawford TPA Solutions

 

3,102

 

 

6,799

 

 

 

17,567

 

 

20,507

 

Unallocated corporate and shared costs, net

 

(9,305

)

 

(11,241

)

 

 

(14,386

)

 

(17,431

)

Consolidated operating earnings

 

9,060

 

 

18,519

 

 

 

62,505

 

 

71,830

 

(Deduct) add:

 

 

 

 

 

 

 

 

 

Net corporate interest expense

 

(2,116

)

 

(1,648

)

 

 

(6,559

)

 

(7,923

)

Stock option expense

 

(353

)

 

(89

)

 

 

(1,053

)

 

(1,122

)

Amortization expense

 

(2,603

)

 

(2,500

)

 

 

(11,029

)

 

(11,653

)

Goodwill impairment

 

 

 

 

 

 

 

 

(17,674

)

Restructuring and other costs, net

 

 

 

(2,419

)

 

 

 

 

(8,133

)

Gain on disposition of businesses, net

 

 

 

 

 

 

 

 

13,763

 

Income tax provision

 

(2,389

)

 

(2,459

)

 

 

(13,316

)

 

(12,013

)

Net loss (income) attributable to noncontrolling interests and redeemable noncontrolling interests

 

54

 

 

(3

)

 

 

144

 

 

1,221

 

Net income attributable to shareholders of Crawford & Company

$

1,653

 

$

9,401

 

 

$

30,692

 

$

28,296

 

 

 

 

 

 

 

 

 

 

 

Following is a reconciliation of net income attributable to shareholders of Crawford & Company on a GAAP basis to non-GAAP adjusted EBITDA:

 

Three Months Ended

 

Year Ended

(in thousands)

December 31,

2021

December 31,

2020

 

December 31,

2021

December 31,

2020

Net income attributable to shareholders of Crawford & Company

$

1,653

 

$

9,401

 

 

$

30,692

 

$

28,296

 

Add (Deduct):

 

 

 

 

 

 

 

 

 

Depreciation and amortization

 

9,408

 

 

9,961

 

 

 

40,176

 

 

40,111

 

Stock-based compensation

 

2,021

 

 

1,652

 

 

 

7,585

 

 

4,384

 

Net corporate interest expense

 

2,116

 

 

1,648

 

 

 

6,559

 

 

7,923

 

Goodwill impairment

 

 

 

 

 

 

 

 

17,674

 

Restructuring and other costs, net

 

 

 

2,419

 

 

 

 

 

8,133

 

Gain on disposition of businesses, net

 

 

 

 

 

 

 

 

(13,763

)

Income tax provision

 

2,389

 

 

2,459

 

 

 

13,316

 

 

12,013

 

Non-GAAP adjusted EBITDA

$

17,587

 

$

27,540

 

 

$

98,328

 

$

104,771

 

 

 

 

 

 

 

 

 

 

 

Following is a reconciliation of operating cash flow to free cash flow for the twelve months ended December 31, 2021 and 2020:

Twelve Months Ended

(in thousands)

December 31, 2021

 

December 31, 2020

 

Change

Net Cash Provided by Operating Activities

$

54,321

 

 

$

93,178

 

 

$

(38,857

)

Less:

 

 

 

 

 

 

 

 

Property & Equipment Purchases, net

 

(9,225

)

 

 

(14,226

)

 

 

5,001

 

Capitalized Software (internal and external costs)

 

(21,729

)

 

 

(23,154

)

 

 

1,425

 

Free Cash Flow

$

23,367

 

 

$

55,798

 

 

$

(32,431

)

 

 

 

 

 

 

 

 

 

Following are the reconciliations of GAAP Revenue, Operating Earnings, Pretax Earnings, Net Income and Earnings Per Share to related non-GAAP Adjusted figures, which reflect 2021 before amortization of intangible assets, and for 2020 exclude the amortization of intangible assets, goodwill impairment, gain on disposition of businesses and restructuring costs:

Three Months Ended December 31, 2021

(in thousands)

Revenues

Non-GAAP

Operating

earnings

Pretax earnings

Net income

attributable to

Crawford & Company

Diluted

earnings per

CRD-A

share

Diluted

earnings per

CRD-B

share

GAAP

$

292,894

 

$

9,060

 

$

3,988

 

$

1,653

 

$

0.03

 

$

0.03

 

Adjustments:

 

 

 

 

 

 

 

 

 

 

 

 

Amortization of intangible assets

 

 

 

 

 

2,603

 

 

1,952

 

 

0.04

 

 

0.04

 

Non-GAAP Adjusted

$

292,894

 

$

9,060

 

$

6,591

 

$

3,605

 

$

0.07

 

$

0.07

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three Months Ended December 31, 2020

(in thousands)

Revenues

Non-GAAP

Operating

earnings

Pretax earnings

Net income

attributable to

Crawford & Company(1)

Diluted

earnings per

CRD-A

share(1)

Diluted

earnings per

CRD-B

share(1)

GAAP

$

257,421

 

$

18,519

 

$

11,863

 

$

9,401

 

$

0.18

 

$

0.18

 

Adjustments:

 

 

 

 

 

 

 

 

 

 

 

 

Amortization of intangible assets

 

 

 

 

 

2,500

 

 

1,875

 

 

0.04

 

 

0.04

 

Income tax impact of first quarter goodwill impairment

 

 

 

 

 

 

 

935

 

 

0.02

 

 

0.02

 

Restructuring and other costs, net

 

 

 

 

 

2,419

 

 

1,664

 

 

0.03

 

 

0.03

 

Non-GAAP Adjusted

$

257,421

 

$

18,519

 

$

16,782

 

$

13,875

 

$

0.27

 

$

0.27

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Year Ended December 31, 2021

(in thousands)

Revenues

Non-GAAP

Operating

earnings

Pretax income

Net income

attributable to

Crawford & Company

Diluted

earnings per

CRD-A

share

Diluted

earnings per

CRD-B

share

GAAP

$

1,102,032

 

$

62,505

 

$

43,864

 

$

30,692

 

$

0.57

 

$

0.57

 

Adjustments:

 

 

 

 

 

 

 

 

 

 

 

 

Amortization of intangible assets

 

 

 

 

 

11,029

 

 

8,272

 

 

0.15

 

 

0.15

 

Non-GAAP Adjusted

$

1,102,032

 

$

62,505

 

$

54,893

 

$

38,964

 

$

0.72

 

$

0.72

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Year Ended December 31, 2020

(in thousands)

Revenues

Non-GAAP

Operating

earnings

Pretax earnings

Net income

attributable to

Crawford & Company(2)

Diluted

earnings per

CRD-A

share

Diluted

earnings per

CRD-B

share

GAAP

$

982,492

 

$

71,830

 

$

39,088

 

$

28,296

 

$

0.54

 

$

0.52

 

Adjustments:

 

 

 

 

 

 

 

 

 

 

 

 

Goodwill impairment

 

 

 

 

 

17,674

 

 

14,209

 

 

0.27

 

 

0.27

 

Restructuring and other costs, net

 

 

 

 

 

8,133

 

 

4,927

 

 

0.09

 

 

0.09

 

Gain on disposition of businesses, net

 

 

 

 

 

(13,763

)

 

(10,807

)

 

(0.20

)

 

(0.20

)

Amortization of intangible assets

 

 

 

 

 

11,653

 

 

8,740

 

 

0.16

 

 

0.16

 

Non-GAAP Adjusted

$

982,492

 

$

71,830

 

$

62,785

 

$

45,365

 

$

0.86

 

$

0.84

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(1) The income tax impact of goodwill impairment was based on the estimated annual effective income tax rate. Due to the non-discrete income tax treatment of the first quarter 2020 goodwill impairment, the income tax benefit normalized as income was earned during the remainder of the year, resulting in a lower full year income tax benefit during 2020.

Following is information regarding the weighted average shares used in the computation of basic and diluted earnings per share:

 

Three Months Ended

Year Ended

(in thousands)

December 31,

2021

December 31,

2020

December 31,

2021

December 31,

2020

Weighted-Average Shares Used to Compute Basic Earnings Per Share:

 

 

 

 

 

 

 

 

Class A Common Stock

 

30,681

 

 

30,692

 

 

30,760

 

 

30,605

 

Class B Common Stock

 

21,640

 

 

22,510

 

 

22,237

 

 

22,527

 

Weighted-Average Shares Used to Compute Diluted Earnings Per Share:

 

 

 

 

 

 

 

 

Class A Common Stock

 

31,249

 

 

30,981

 

 

31,743

 

 

30,857

 

Class B Common Stock

 

21,640

 

 

22,510

 

 

22,237

 

 

22,527

 

 

 

 

 

 

 

 

 

 

Further information regarding the Company’s operating results for the quarter and twelve months ended December 31, 2021, financial position as of December 31, 2021, and cash flows for the twelve months ended December 31, 2021 is shown on the attached unaudited condensed consolidated financial statements.

About Crawford®

Based in Atlanta, Crawford & Company (NYSE: CRD-A and CRD-B) is the world’s largest publicly listed independent provider of claims management and outsourcing solutions to carriers, brokers and corporations with an expansive global network serving clients in more than 70 countries. The Company’s two classes of stock are substantially identical, except with respect to voting rights and the Company’s ability to pay greater cash dividends on the non-voting Class A Common Stock (CRD-A) than on the voting Class B Common Stock (CRD-B), subject to certain limitations. In addition, with respect to mergers or similar transactions, holders of CRD-A must receive the same type and amount of consideration as holders of CRD-B, unless different consideration is approved by the holders of 75 percent of CRD-A, voting as a class. More information is available at www.crawco.com.

Earnings per share may be different between CRD-A and CRD-B due to the payment of a higher per share dividend on CRD-A than CRD-B, and the impact that has on the earnings per share calculation according to generally accepted accounting principles.

Tag: Crawford-Financial, Crawford-Investor-News-and-Events

For further information regarding this press release, please call Bruce Swain at (404) 300-1051.

This press release contains forward-looking statements, including statements about the expected future financial condition, results of operations and earnings outlook of Crawford & Company. Statements, both qualitative and quantitative, that are not historical facts may be “forward-looking statements” as defined in the Private Securities Litigation Reform Act of 1995 and other federal securities laws. Forward-looking statements involve a number of risks and uncertainties that could cause actual results to differ materially from historical experience or Crawford & Company’s present expectations. Accordingly, no one should place undue reliance on forward-looking statements, which speak only as of the date on which they are made. Crawford & Company does not undertake to update forward-looking statements to reflect the impact of circumstances or events that may arise or not arise after the date the forward-looking statements are made. For further information regarding Crawford & Company, including factors that could cause our actual financial condition, results or earnings to differ from those described in any forward-looking statements, please read Crawford & Company’s reports filed with the SEC and available at www.sec.gov and in the Investor Relations section of Crawford & Company’s website at www.crawco.com.

CRAWFORD & COMPANY

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

Unaudited

(In Thousands, Except Per Share Amounts and Percentages)

 

Three Months Ended December 31,

 

2021

 

2020

 

% Change

 

 

 

 

 

 

 

 

 

 

Revenues:

 

 

 

 

 

 

 

 

 

Revenues Before Reimbursements

 

$

292,894

 

 

$

257,421

 

 

 

14

%

Reimbursements

 

 

10,075

 

 

 

8,184

 

 

 

23

%

Total Revenues

 

 

302,969

 

 

 

265,605

 

 

 

14

%

 

 

 

 

 

 

 

 

 

 

Costs and Expenses:

 

 

 

 

 

 

 

 

 

Costs of Services Provided, Before Reimbursements

 

 

220,856

 

 

 

185,354

 

 

 

19

%

Reimbursements

 

 

10,075

 

 

 

8,184

 

 

 

23

%

Total Costs of Services

 

 

230,931

 

 

 

193,538

 

 

 

19

%

 

 

 

 

 

 

 

 

 

 

Selling, General, and Administrative Expenses

 

 

66,730

 

 

 

55,624

 

 

 

20

%

Corporate Interest Expense, Net

 

 

2,116

 

 

 

1,648

 

 

 

28

%

Restructuring and Other Costs, Net

 

 

-

 

 

 

2,419

 

 

nm

 

Total Costs and Expenses

 

 

299,777

 

 

 

253,229

 

 

 

18

%

 

 

 

 

 

 

 

 

 

 

Other Income (Expense), Net

 

 

796

 

 

 

(513

)

 

nm

 

 

 

 

 

 

 

 

 

 

 

Income Before Income Taxes

 

 

3,988

 

 

 

11,863

 

 

 

(66

)%

Provision for Income Taxes

 

 

2,389

 

 

 

2,459

 

 

 

(3

)%

 

 

 

 

 

 

 

 

 

 

Net Income

 

 

1,599

 

 

 

9,404

 

 

 

(83

)%

 

 

 

 

 

 

 

 

 

 

Net Loss (Income) Attributable to Noncontrolling Interests and Redeemable Noncontrolling Interests

 

 

54

 

 

 

(3

)

 

nm

 

 

 

 

 

 

 

 

 

 

 

Net Income Attributable to Shareholders of Crawford & Company

 

$

1,653

 

 

$

9,401

 

 

 

(82

)%

 

 

 

 

 

 

 

 

 

 

Earnings Per Share - Basic:

 

 

 

 

 

 

 

 

 

Class A Common Stock

 

$

0.03

 

 

$

0.18

 

 

 

(83

)%

Class B Common Stock

 

$

0.03

 

 

$

0.18

 

 

 

(83

)%

 

 

 

 

 

 

 

 

 

 

Earnings Per Share - Diluted:

 

 

 

 

 

 

 

 

 

Class A Common Stock

 

$

0.03

 

 

$

0.18

 

 

 

(83

)%

Class B Common Stock

 

$

0.03

 

 

$

0.18

 

 

 

(83

)%

 

 

 

 

 

 

 

 

 

 

Cash Dividends Per Share:

 

 

 

 

 

 

 

 

 

Class A Common Stock

 

$

0.06

 

 

$

0.05

 

 

 

20

%

Class B Common Stock

 

$

0.06

 

 

$

0.05

 

 

 

20

%

CRAWFORD & COMPANY

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

Unaudited

(In Thousands, Except Per Share Amounts and Percentages)

 

Year Ended December 31,

 

2021

 

2020

 

% Change

 

 

 

 

 

 

 

 

 

 

Revenues:

 

 

 

 

 

 

 

 

 

Revenues Before Reimbursements

 

$

1,102,032

 

 

$

982,492

 

 

 

12

%

Reimbursements

 

 

37,199

 

 

 

33,703

 

 

 

10

%

Total Revenues

 

 

1,139,231

 

 

 

1,016,195

 

 

 

12

%

 

 

 

 

 

 

 

 

 

 

Costs and Expenses:

 

 

 

 

 

 

 

 

 

Costs of Services Provided, Before Reimbursements

 

 

810,231

 

 

 

703,617

 

 

 

15

%

Reimbursements

 

 

37,199

 

 

 

33,703

 

 

 

10

%

Total Costs of Services

 

 

847,430

 

 

 

737,320

 

 

 

15

%

 

 

 

 

 

 

 

 

 

 

Selling, General, and Administrative Expenses

 

 

244,850

 

 

 

218,952

 

 

 

12

%

Corporate Interest Expense, Net

 

 

6,559

 

 

 

7,923

 

 

 

(17

)%

Goodwill Impairment

 

 

-

 

 

 

17,674

 

 

nm

 

Restructuring and Other Costs, Net

 

 

-

 

 

 

8,133

 

 

nm

 

Gain on Disposition of Businesses, Net

 

 

-

 

 

 

(13,763

)

 

nm

 

Total Costs and Expenses

 

 

1,098,839

 

 

 

976,239

 

 

 

13

%

 

 

 

 

 

 

 

 

 

 

Other Income (Expense), Net

 

 

3,472

 

 

 

(868

)

 

nm

 

 

 

 

 

 

 

 

 

 

 

Income Before Income Taxes

 

 

43,864

 

 

 

39,088

 

 

 

12

%

Provision for Income Taxes

 

 

13,316

 

 

 

12,013

 

 

 

11

%

 

 

 

 

 

 

 

 

 

 

Net Income

 

 

30,548

 

 

 

27,075

 

 

 

13

%

 

 

 

 

 

 

 

 

 

 

Net Loss Attributable to Noncontrolling Interests and Redeemable Noncontrolling Interests

 

 

144

 

 

 

1,221

 

 

 

(88

)%

 

 

 

 

 

 

 

 

 

 

Net Income Attributable to Shareholders of Crawford & Company

 

$

30,692

 

 

$

28,296

 

 

 

8

%

 

 

 

 

 

 

 

 

 

 

Earnings Per Share - Basic:

 

 

 

 

 

 

 

 

 

Class A Common Stock

 

$

0.58

 

 

$

0.54

 

 

 

7

%

Class B Common Stock

 

$

0.58

 

 

$

0.52

 

 

 

12

%

 

 

 

 

 

 

 

 

 

 

Earnings Per Share - Diluted:

 

 

 

 

 

 

 

 

 

Class A Common Stock

 

$

0.57

 

 

$

0.54

 

 

 

6

%

Class B Common Stock

 

$

0.57

 

 

$

0.52

 

 

 

10

%

 

 

 

 

 

 

 

 

 

 

Cash Dividends Per Share:

 

 

 

 

 

 

 

 

 

Class A Common Stock

 

$

0.24

 

 

$

0.19

 

 

 

26

%

Class B Common Stock

 

$

0.24

 

 

$

0.17

 

 

 

41

%

CRAWFORD & COMPANY

CONDENSED CONSOLIDATED BALANCE SHEETS

As of December 31, 2021 and December 31, 2020

Unaudited

(In Thousands, Except Par Values)

 

 

 

 

 

 

 

 

 

December 31,

 

December 31,

 

 

2021

 

2020

ASSETS

 

 

 

 

 

 

 

 

 

 

 

 

 

Current Assets:

 

 

 

 

 

 

Cash and Cash Equivalents

 

$

53,228

 

 

$

44,656

 

Accounts Receivable, Net

 

 

134,458

 

 

 

123,060

 

Unbilled Revenues, at Estimated Billable Amounts

 

 

118,722

 

 

 

103,528

 

Income Taxes Receivable

 

 

4,936

 

 

 

1,269

 

Prepaid Expenses and Other Current Assets

 

 

34,576

 

 

 

29,490

 

Total Current Assets

 

 

345,920

 

 

 

302,003

 

 

 

 

 

 

 

 

Net Property and Equipment

 

 

33,721

 

 

 

36,402

 

 

 

 

 

 

 

 

Other Assets:

 

 

 

 

 

 

Operating Lease Right-of-Use Asset, Net

 

 

99,369

 

 

 

109,315

 

Goodwill

 

 

116,526

 

 

 

66,537

 

Intangible Assets Arising from Business Acquisitions, Net

 

 

97,571

 

 

 

71,176

 

Capitalized Software Costs, Net

 

 

75,802

 

 

 

71,021

 

Deferred Income Tax Assets

 

 

21,266

 

 

 

25,595

 

Other Noncurrent Assets

 

 

62,464

 

 

 

70,935

 

Total Other Assets

 

 

472,998

 

 

 

414,579

 

 

 

 

 

 

 

 

Total Assets

 

$

852,639

 

 

$

752,984

 

 

 

 

 

 

 

 

LIABILITIES AND SHAREHOLDERS’ INVESTMENT

 

 

 

 

 

 

 

 

 

 

 

 

 

Current Liabilities:

 

 

 

 

 

 

Short-Term Borrowings

 

$

10,704

 

 

$

1,837

 

Accounts Payable

 

 

48,470

 

 

 

41,544

 

Accrued Compensation and Related Costs

 

 

96,018

 

 

 

81,848

 

Self-Insured Risks

 

 

13,222

 

 

 

11,390

 

Income Taxes Payable

 

 

1,200

 

 

 

5,822

 

Operating Lease Liability

 

 

25,238

 

 

 

32,745

 

Other Accrued Liabilities

 

 

76,884

 

 

 

40,375

 

Deferred Revenues

 

 

32,119

 

 

 

27,233

 

Total Current Liabilities

 

 

303,855

 

 

 

242,794

 

 

 

 

 

 

 

 

Noncurrent Liabilities:

 

 

 

 

 

 

Long-Term Debt and Finance Leases, Less Current Installments

 

 

164,315

 

 

 

111,758

 

Operating Lease Liability

 

 

88,408

 

 

 

93,228

 

Deferred Revenues

 

 

23,786

 

 

 

24,136

 

Accrued Pension Liabilities

 

 

17,892

 

 

 

53,886

 

Other Noncurrent Liabilities

 

 

42,986

 

 

 

40,254

 

Total Noncurrent Liabilities

 

 

337,387

 

 

 

323,262

 

 

 

 

 

 

 

 

Shareholders’ Investment:

 

 

 

 

 

 

Class A Common Stock, $1.00 Par Value

 

 

30,996

 

 

 

30,847

 

Class B Common Stock, $1.00 Par Value

 

 

20,812

 

 

 

22,510

 

Additional Paid-in Capital

 

 

74,229

 

 

 

67,193

 

Retained Earnings

 

 

266,369

 

 

 

265,245

 

Accumulated Other Comprehensive Loss

 

 

(180,441

)

 

 

(198,856

)

Shareholders’ Investment Attributable to Shareholders of Crawford & Company

 

 

211,965

 

 

 

186,939

 

Noncontrolling Interests

 

 

(568

)

 

 

(11

)

Total Shareholders’ Investment

 

 

211,397

 

 

 

186,928

 

 

 

 

 

 

 

 

Total Liabilities and Shareholders’ Investment

 

$

852,639

 

 

$

752,984

 

 

CRAWFORD & COMPANY

SUMMARY RESULTS BY OPERATING SEGMENT WITH DIRECT COMPENSATION AND OTHER EXPENSES

Unaudited

(In Thousands, Except Percentages)

 

 

 

 

 

 

 

 

 

 

 

 

 

Three Months Ended December 31,

 

 

Crawford Loss Adjusting

 

%

 

Crawford Platform Solutions

 

%

 

Crawford TPA Solutions

 

%

 

 

2021

 

2020

 

Change

 

2021

 

2020

 

Change

 

2021

 

2020

 

Change

 

 

 

 

 

 

 

 

 

 

Revenues Before Reimbursements

$

123,129

 

 

$

111,397

 

 

10.5

%

 

$

70,641

 

 

$

50,206

 

 

40.7

%

 

$

99,124

 

 

$

95,818

 

 

3.5

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Direct Compensation, Fringe Benefits & Non-Employee Labor

 

85,055

 

 

 

67,518

 

 

26.0

%

 

 

49,076

 

 

 

33,612

 

 

46.0

%

 

 

65,437

 

 

 

59,139

 

 

10.6

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

% of Revenues Before Reimbursements

 

69.1

%

 

 

60.6

%

 

 

 

 

69.5

%

 

 

66.9

%

 

 

 

 

66.0

%

 

 

61.7

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Expenses Other than Reimbursements, Direct Compensation, Fringe Benefits & Non-Employee Labor

 

33,208

 

 

 

27,628

 

 

20.2

%

 

 

11,168

 

 

 

9,883

 

 

13.0

%

 

 

30,585

 

 

 

29,880

 

 

2.4

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

% of Revenues Before Reimbursements

 

27.0

%

 

 

24.8

%

 

 

 

 

15.8

%

 

 

19.7

%

 

 

 

 

30.9

%

 

 

31.2

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total Operating Expenses

 

118,263

 

 

 

95,146

 

 

24.3

%

 

 

60,244

 

 

 

43,495

 

 

38.5

%

 

 

96,022

 

 

 

89,019

 

 

7.9

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating Earnings (1)

$

4,866

 

 

$

16,251

 

 

(70.1

)%

 

$

10,397

 

 

$

6,711

 

 

54.9

%

 

$

3,102

 

 

$

6,799

 

 

(54.4

)%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

% of Revenues Before Reimbursements

 

4.0

%

 

 

14.6

%

 

 

 

 

14.7

%

 

 

13.4

%

 

 

 

 

3.1

%

 

 

7.1

%

 

 

Twelve Months Ended December 31,

 

 

Crawford Loss Adjusting

 

%

 

Crawford Platform Solutions

 

%

 

Crawford TPA Solutions

 

%

 

 

2021

 

2020

 

Change

 

2021

 

2020

 

Change

 

2021

 

2020

 

Change

 

 

 

 

 

 

 

 

 

 

Revenues Before Reimbursements

$

475,587

 

$

438,491

 

8.5

%

$

228,481

 

$

172,609

 

32.4

%

$

397,964

 

$

371,392

 

7.2

%

 

 

 

 

 

 

 

 

 

 

Direct Compensation, Fringe Benefits & Non-Employee Labor

 

315,158

 

 

269,817

 

16.8

%

 

149,201

 

 

108,707

 

37.3

%

 

256,845

 

 

234,179

 

9.7

%

 

 

 

 

 

 

 

 

 

 

% of Revenues Before Reimbursements

 

66.3

%

 

61.5

%

 

 

65.3

%

 

63.0

%

 

 

64.5

%

 

63.1

%

 

 

 

 

 

 

 

 

 

 

 

Expenses Other than Reimbursements, Direct Compensation, Fringe Benefits & Non-Employee Labor

 

137,439

 

 

127,570

 

7.7

%

 

42,946

 

 

36,252

 

18.5

%

 

123,552

 

 

116,706

 

5.9

%

 

 

 

 

 

 

 

 

 

 

% of Revenues Before Reimbursements

 

28.9

%

 

29.1

%

 

 

18.8

%

 

21.0

%

 

 

31.0

%

 

31.4

%

 

 

 

 

 

 

 

 

 

 

 

Total Operating Expenses

 

452,597

 

 

397,387

 

13.9

%

 

192,147

 

 

144,959

 

32.6

%

 

380,397

 

 

350,885

 

8.4

%

 

 

 

 

 

 

 

 

 

 

Operating Earnings (1)

$

22,990

 

$

41,104

 

(44.1

)%

$

36,334

 

$

27,650

 

31.4

%

$

17,567

 

$

20,507

 

(14.3

)%

 

 

 

 

 

 

 

 

 

 

% of Revenues Before Reimbursements

 

4.8

%

 

9.4

%

 

 

15.9

%

 

16.0

%

 

 

4.4

%

 

5.5

%

 

 

(1) A non-GAAP financial measurement which represents net income attributable to the applicable reporting segment excluding income taxes, net corporate interest expense, stock option expense, amortization of customer-relationship intangible assets, goodwill impairment, restructuring costs, gain on disposition of businesses, and certain unallocated corporate and shared costs and credits. See pages 5 and 6 for additional information about segment operating earnings.

CRAWFORD & COMPANY

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

Year Ended December 31, 2021 and December 31, 2020

Unaudited

(In Thousands)

 

 

 

 

 

 

 

2021

 

2020

Cash Flows From Operating Activities:

 

 

 

 

 

 

Net income

 

$

30,548

 

 

$

27,075

 

Reconciliation of net income to net cash provided by operating activities:

 

 

 

 

 

 

Depreciation and amortization

 

 

40,176

 

 

 

40,111

 

Goodwill impairment

 

 

 

 

 

17,674

 

Deferred income taxes

 

 

(2,992

)

 

 

(9,005

)

Stock-based compensation

 

 

7,585

 

 

 

4,384

 

Gain on disposition of businesses, net

 

 

 

 

 

(13,763

)

Changes in operating assets and liabilities:

 

 

 

 

 

 

Accounts receivable, net

 

 

(5,475

)

 

 

5,063

 

Unbilled revenues, net

 

 

(9,979

)

 

 

(3,762

)

Accrued or prepaid income taxes

 

 

(7,232

)

 

 

9,311

 

Accounts payable and accrued liabilities

 

 

13,470

 

 

 

31,775

 

Deferred revenues

 

 

3,562

 

 

 

(1,074

)

Accrued retirement costs

 

 

(15,478

)

 

 

(10,790

)

Prepaid expenses and other operating activities

 

 

136

 

 

 

(3,821

)

Net cash provided by operating activities

 

 

54,321

 

 

 

93,178

 

 

 

 

 

 

 

 

Cash Flows From Investing Activities:

 

 

 

 

 

 

Acquisitions of property and equipment

 

 

(9,225

)

 

 

(14,226

)

Capitalization of computer software costs

 

 

(21,729

)

 

 

(23,154

)

Proceeds from settlement of life insurance policies

 

 

6,526

 

 

 

 

Payments for business acquisitions, net of cash acquired

 

 

(46,398

)

 

 

(9,983

)

Cash proceeds from disposition of businesses, net of cash disposed

 

 

 

 

 

19,968

 

Other investing activities

 

 

 

 

 

358

 

Net cash used in investing activities

 

 

(70,826

)

 

 

(27,037

)

 

 

 

 

 

 

 

Cash Flows From Financing Activities:

 

 

 

 

 

 

Cash dividends paid

 

 

(12,663

)

 

 

(9,645

)

Repurchases of common stock

 

 

(19,134

)

 

 

(2,666

)

Increases in short-term and revolving credit facility borrowings

 

 

113,312

 

 

 

108,142

 

Payments on short-term and revolving credit facility borrowings

 

 

(52,306

)

 

 

(169,675

)

Payments of contingent consideration on acquisitions

 

 

(1,544

)

 

 

 

Other financing activities

 

 

(3,008

)

 

 

(525

)

Net cash provided by (used in) financing activities

 

 

24,657

 

 

 

(74,369

)

 

 

 

 

 

 

 

Effects of exchange rate changes on cash and cash equivalents

 

 

881

 

 

 

1,082

 

Increase (Decrease) in cash, cash equivalents, and restricted cash(1)

 

 

9,033

 

 

 

(7,146

)

Cash, cash equivalents, and restricted cash at beginning of year(1)

 

 

44,656

 

 

 

51,802

 

Cash, cash equivalents, and restricted cash at end of period(1)

 

$

53,689

 

 

$

44,656

 

 

(1) The 2021 amounts include beginning restricted cash of $0 at December 31, 2020, and ending restricted cash of $461,000 at December 31, 2021, which we present as part of "Prepaid expenses and other current assets" on the Balance Sheets.

 

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