CRAWFORD & COMPANY 1001 SUMMIT BOULEVARD ATLANTA, GEORGIA 30319 (404) 300-1000
FOR IMMEDIATE RELEASE
From: Jeffrey T. Bowman
Chief Executive Officer __________________________________________________________________________________________________
Crawford & Company Reports 2011 Fourth Quarter Results
Revenues Reach Annual Record of $1.125 Billion
Full Year Earnings Increase 60%
Crawford & Company (www.crawfordandcompany.com) (NYSE: CRDA and CRDB), the world's largest independent provider of claims management solutions to insurance companies and self-insured entities, today announced its financial results for the fourth quarter and year ended December 31, 2011.
Full year consolidated revenues before reimbursements totaled a record of more than $1.125 billion for 2011, increasing $94.9 million from 2010. Net income attributable to shareholders of Crawford & Company in 2011 was $45.4 million, increasing 60% over net income in 2010 of $28.3 million. Full year 2011 diluted earnings per share were $0.85 for CRDA and $0.83 for CRDB, respectively, compared with diluted earnings per share for each class of $0.53 in the prior year.
The 2011 difference in earnings per share between CRDA and CRDB is due to the payment of a higher per share dividend on CRDA than CRDB beginning in the the third quarter of 2011, and the impact that has on the earnings per share calculation according to generally accepted accounting principles. Further references in this release will generally be only to CRDB, as that presents a more dilutive measure.
Fourth quarter 2011 consolidated revenues before reimbursements totaled $265.6 million, a decrease of 12% from $301.5 million in the 2010 fourth quarter. Fourth quarter 2011 net income attributable to shareholders of Crawford & Company was $4.5 million, decreasing 70% from $14.8 million in the 2010 fourth quarter. Fourth quarter 2011 diluted earnings per CRDB share was $0.08 compared with diluted earnings per share of $0.28 in the prior-year quarter.
During the 2011 fourth quarter, the Company recorded $4.6 million in special charges, consisting of a $3.4 million write-off of deferred financing costs related to the repayment of its then-outstanding Term Loan B and $1.2 million in severance expense related to the Broadspire segment. The Company also recorded a tax benefit of $5.5 million related to a change in the valuation allowance for foreign tax credits. In the third quarter of 2011, the Company recorded a gain of $7.0 million ($5.9 million net of tax) related to the final settlement of a previously disclosed arbitration award. Excluding the arbitration award, tax adjustment, and other special charges, 2011 fourth quarter and full-year net income attributable to shareholders of Crawford & Company would have been $1.9 million and $37.0 million, respectively, and diluted earnings per CRDB share would have been $0.03 and $0.67, respectively.
The following information was filed by Crawford Co (CRDA) on Monday, February 13, 2012 as an 8K 2.02 statement, which is an earnings press release pertaining to results of operations and financial condition. It may be helpful to assess the quality of management by comparing the information in the press release to the information in the accompanying 10-K Annual Report statement of earnings and operation as management may choose to highlight particular information in the press release.