Crawford & Company (CRD-A) Q2 2024 earnings summary

Executive summary

• Q2 2024 revenues before reimbursements declined 3% year-over-year to $314.2M, mainly due to lower weather-related claims, while Broadspire and International Operations delivered strong growth and North America Loss Adjusting was flat; Platform Solutions saw a sharp decline.

• Net income attributable to shareholders was $8.6M, up slightly from $8.4M in Q2 2023; diluted EPS remained flat at $0.17 for both share classes.

• Broadspire and GTS set new quarterly revenue and earnings records, with International Operations also posting strong results.

• $23M in new and enhanced business was added in the quarter, with a robust pipeline for the remainder of 2024.

• The company continues to invest in technology, innovation, and talent to drive long-term growth and maintain market leadership.

Financial highlights

• Q2 2024 revenue was $314.2M, down from $324.6M in Q2 2023; adjusted operating earnings were $22.1M (7.0% margin), slightly down from $22.8M (7.0%).

• GAAP net income attributable to shareholders was $8.6M; non-GAAP net income was $12.4M, up from $12.0M.

• Adjusted EBITDA was $30.6M (9.7% margin), compared to $31.5M (9.7%) in Q2 2023.

• Cash and cash equivalents at June 30, 2024, were $46.7M, down from $58.4M at year-end 2023; total debt rose to $233.8M from $209.1M.

• Free cash flow for the first half of 2024 was $(35.9)M, down from $9.2M in the prior year period.

Outlook and guidance

• Management expects continued growth in non-weather businesses and is prepared for increased weather-related claims if severe events occur.

• The company is well-positioned to respond to seasonal storm activity and continues to focus on strategic growth, with a strong business pipeline and balanced revenue model.

• Broadspire's profitability and growth momentum are expected to be sustainable due to ongoing investments and high client retention.

• International segment profitability is on a multi-year recovery path, with further improvements anticipated.

• Management expects the effective tax rate for 2024 to be approximately 32% to 34%.