Profits up for Crawford and Company in Q3

Crawford and Company announced Nov. 5 its financial results for the period ending Sept. 30, reporting a company-wide increase in revenues and profits, a 43% increase in legal settlement administration revenue and a drop in revenue for the Americas region.

Total revenues (after reimbursements) for the third quarter were $324.2 million, up 7% from $308.2 million during the same period in 2011. All figures are in U.S. currency.

Atlanta-based Crawford and Company provides services for the insurance and risk management industry and to self-insured entities, including claims management, legal and technical services. It has 102 locations in Canada and its companies include Broadspire, a third-party administrator whose services include auto and general liability claims management, casualty services, medical and field case management and workers compensation.

Net income for the quarter was $18.5 million, up 21% from $15.3 million during the third quarter of 2011.

The increase in revenue and income was driven by improvements in the Broadspire segment, “strong performance” in the Europe, Middle East, Africa and Asia Pacific (EMEA/AP) regions and in the legal settlement administration business, CEO Jeffrey Bowman stated in a press release.

“We are mobilizing our resources to assist our clients in the aftermath of Superstorm Sandy,” Bowman stated. “We anticipate that this event will generate significant claims volumes for us in the 2012 fourth quarter.”

In the Americas region, Crawford and Company recorded revenues before reimbursements of $85.9 million in the third quarter, down 9% from $94.7 million during the same period in 2011. Third-quarter revenue before reimbursements for EMAE/AP was up 10% year-over-year, from $86.97 million in 2011 to $95.9 million in 2012. Q3 revenue before reimbursements for Broadspire was up 2%, from $58.9 million in 2011 to $59.8 million this year, while legal settlement administration revenue was up 43%, from $42.49 million in the third quarter 2011 to $60.6 million in the latest quarter of 2012.

For the company as a whole, revenue before reimbursements was $302.1 million during the third quarter of this year, up from $283 million during the same period in 2011.

For the nine months ending Sept. 30, Crawford and Company recorded net income of $35.4 million on revenues before reimbursements of $863.7 million, compared to net income of $40.9 million on revenues before reimbursements of $859.7 million during the same period in 2011.

Year-to-date, operating earnings for the Americas dropped 63% year-over-year (from $20.1 million in 2011 to $7.43 million in 2012). The same figure increased 48% for EMEA/AP (from $20.5 million to $30.3 million) and dropped 1% in legal settlement administration, from $42.5 million to $42.1 million. The firm recorded an operating loss for Broadspire of $417,000 during the first nine months of 2012, down from an operating loss of $9.184 million during the same period in 2011.

On its balance sheet as of Sept. 30, Crawford and Company recorded $66.4 million in cash and cash equivalents, $402.8 million in total current assets, $131.1 million in goodwill and $841.9 million in total assets. Total current liabilities were $310.1 million and total non-current liabilities were $361.9 million.