On November 6, 2023, Crawford & Co (CRD.A, Financial), a leading global provider of claims management and outsourcing solutions, announced its financial results for the third quarter ended September 30, 2023. The company reported a record quarterly revenue, which drove earnings and margin expansion.
Financial Highlights
For Q3 2023, Crawford & Co (CRD.A, Financial) reported revenues before reimbursements of $325.6 million, a 10% increase over $294.9 million for the same period in 2022. The company's net income attributable to shareholders was $12.3 million, a significant improvement from a loss of $15.1 million in Q3 2022. Diluted earnings per share were $0.25 for both CRD-A and CRD-B, compared to a loss per share of $0.31 in the prior year's third quarter.
On a non-GAAP basis, the company's net income attributable to shareholders totaled $17.7 million in Q3 2023, more than double the $7.5 million reported in the same period last year. Diluted earnings per share on a non-GAAP basis were $0.35 for CRD-A and $0.36 for CRD-B, compared to $0.15 for both in Q3 2022.
Management Commentary
We continued our momentum of growth and profit expansion in the third quarter of 2023 delivering our twelfth consecutive quarter of growth. Revenues grew by 10% to a new quarterly record and profits more than doubled compared to last year. We have built a strong foundation focused on operational excellence at Crawford, and our technology plus people strategy is driving growth and margin improvement across the business," commented Rohit Verma, Chief Executive Officer of Crawford & Company.
Segment Performance
The North America Loss Adjusting segment saw revenues before reimbursements of $79.4 million in Q3 2023, an 18.8% increase from the same period in 2022. The International Operations segment reported revenues before reimbursements of $98.1 million, up 13.9% from Q3 2022. The Broadspire segment saw revenues before reimbursements of $88.3 million, a 12.7% increase from Q3 2022. However, the Platform Solutions segment reported a decrease in revenues before reimbursements to $59.8 million, down 6.0% from Q3 2022.
Balance Sheet and Cash Flow
As of September 30, 2023, the company's consolidated cash and cash equivalents totaled $49.2 million, compared to $46.0 million at the end of 2022. Total debt outstanding as of September 30, 2023, was $218.4 million, compared to $238.9 million at the end of 2022. The company's operations provided $68.1 million of cash during the first nine months of 2023, compared to $16.2 million used in the same period in 2022.
Explore the complete 8-K earnings release (here) from Crawford & Co for further details.
