Crawford & Company (CRD-A) Q3 2024 earnings summary

Executive summary

• Q3 2024 revenues before reimbursements were $329.4M, nearly flat year-over-year, with strong growth in Broadspire and International Operations offsetting declines in North America Loss Adjusting and Platform Solutions due to lower weather-related activity.

• Net income attributable to shareholders was $9.5M, down from $12.3M in Q3 2023, and diluted EPS was $0.19, down from $0.25; non-GAAP diluted EPS was $0.22, down from $0.35 (CRD-A) and $0.36 (CRD-B).

• Broadspire and U.S. GTS achieved record quarterly revenues, while International Operations saw revenue growth and margin expansion.

• $24.4M in new and enhanced business was added in the quarter, reflecting ongoing growth initiatives.

• Management emphasized the strength of diversified business lines, sustainable growth, and operational excellence.

Financial highlights

• Q3 2024 consolidated revenues before reimbursements were $329.4M (flat year-over-year); net income attributable to shareholders was $9.5M, down 23% year-over-year.

• GAAP diluted EPS was $0.19, down from $0.25; non-GAAP diluted EPS was $0.22, down from $0.35 (CRD-A) and $0.36 (CRD-B).

• Non-GAAP operating earnings were $21.8M (6.6% margin), down from $29.9M (9.1%) in Q3 2023.

• Adjusted EBITDA was $29.6M (9.0% margin), down from $38.6M (11.7%) year-over-year.

• Cash and cash equivalents at quarter-end were $52.3M; total debt was $238.4M.

Outlook and guidance

• Q4 2024 is expected to benefit from $20–$30M in incremental weather-related revenue due to recent hurricanes, with most of the impact realized in Q4 unless further storms develop.

• Long-term outlook remains optimistic, with continued focus on non-weather businesses, technology, and operational excellence.

• International business growth expected to stabilize to low single digits; GTS segment targeted for low double-digit growth.

• Management expects the effective tax rate for 2024 to be approximately 33% to 35%.

• No material changes to critical accounting policies or market risk exposures since year-end 2023.