EX-99.1 2 dex991.htm INVESTOR PRESENTATION ON MAY 20,2009 Investor Presentation on May 20,2009
SunTrust Robinson Humphrey
Unconference
May 20, 2009
Exhibit 99.1

2
Forward-looking
Statements,
Segment
Operating
Earnings and Non-GAAP Financial Information
Forward
Looking
Statements:
This presentation contains forward-looking statements, including statements about the future financial condition, results of operations and
earnings outlook of Crawford & Company.  Statements, both qualitative and quantitative, that are not historical may be “forward-looking”
statements as defined in the Private Securities Litigation Reform Act of 1995.  Forward-looking statements involve a number of risks and
uncertainties that could cause actual results to differ materially from historical experience or Crawford & Company’s present expectations. 
Accordingly, no one should place undue reliance on forward-looking statements, which speak only as of the date on which they are made. 
Crawford
&
Company
does
not
undertake
to
update
forward-looking
statements
to
reflect
the
impact
of
circumstances
or
events
that
may
arise
or not arise after the date the forward-looking statements are made. Results for any interim period presented herein are not necessarily
indicative
of
results
to
be
expected
for
the
full
year
or
for
any
other
future
period.
For
further
information
regarding
Crawford
&
Company,
and
the risks and uncertainties involved in forward-looking statements, please read Crawford & Company’s reports filed with the United States
Securities
and
Exchange
Commission
and
available
at
www.sec.gov
or
in
the
Investor
Relations
section
of
Crawford
&
Company’s
website
at
www.crawfordandcompany.com.
Segment
Operating
Earnings:
Under Statement of Financial Accounting Standards Number 131, Disclosures about Segments of an Enterprise and Related Information,
segment operating earnings is the primary measure used by the Company to evaluate the results of each of its four operating segments. 
Segment operating earnings exclude income taxes, interest expense, amortization of customer-relationship intangible assets, stock option
expense,
earnings
or
loss
attributable
to
noncontrolling
interests,
and
certain
other
nonrecurring
gains
and
expenses.
Non-GAAP
Financial
Information:
For additional information about the Non-GAAP financial information presented herein, see the Appendix beginning on slide 35.

3
•
World’s largest fully-integrated independent
provider of global claims management solutions.
•
Four reporting segments:
–
International Operations
•
Serves the global insurance industry and multi-national
corporations
–
U.S. Property & Casualty
•
Serves the U.S. insurance company market
–
Broadspire
•
Serves large national accounts, carriers and self-
insured entities
–
Legal Settlement Administration
•
Provides administration for class action settlements
and bankruptcy matters
Our Market Leading Global Businesses

4
Positioned for a Global Economy
More than 700 locations in 63 countries

5
Agenda
•
Crawford Strategic Objectives
•
Financial Results
•
Segment Overview
•
Summary
“We intend to continue to build upon our
operational improvements as we move
through 2009.”
-
Jeffrey T. Bowman, President & CEO

6
WORKING
TOGETHER:
the
Crawford
Difference
The
Crawford
Difference
lives
in
our:
•
Expansive global footprint
•
Innovative technological solutions
•
Fresh approach to our service delivery model
•
Employee expertise, and
•
Razor-sharp focus on consistently delivering industry-leading
results to our clients. 
It is the result of more than 9,000 employees
working together everyday and in every way to build
the
Crawford Difference

7
Strategic Goals: 2009 -
2011
•
Leverage and grow Crawford & Company’s position as
the world’s largest independent provider of claims
solutions.
•
Further improve working capital management.
•
Implement innovative, value-added solutions that drive
quality and results.
•
Become a premier employer.

8
The Crawford System of Claims Solutions
SM
The
System
is
the
most
comprehensive
global,
integrated
solution
for
all corporate, insurer, and re-insurer claims administration.

9
Strategic Objectives
•
Execute global launch of The Crawford System of Claims
Solutions
to
dramatize
our
competitive
advantages,
reinforce
our industry leadership, and clarify our portfolio of businesses.
•
Expand Key Account Management to improve sales and
marketing initiatives to win more business.
•
Continue focus on employee training and development.
•
Ensure that our pay for performance culture builds a results
oriented business.
•
Implement a global Intranet to improve internal communications.
SM

10
Strategic Objectives, cont’d
•
Implement Information and Communications Technology strategies
to leverage technology gains to maximize operating efficiencies and
improve data management.
•
Continue
successful
rollout
of
RiskTech
within
Broadspire
•
Remain a target-driven organization that meets it promises to clients,
employees and shareholders.

Financial Review

12
Diversified Business and Clients
Fiscal 2008 Revenues of $1.05 Billion
•
Property and Casualty
Services
•
Global Technical Services
•
Global Marine and
Transportation
•
Global Markets
42.4%
29.7%
7.1%
International
Operations
U.S. Property & Casualty
•
Property and Casualty Services
•
Catastrophe Management Services
•
Auto Appraisal Services
•
Centralized Claim Administration
•
Strategic Warranty Services
20.7%
Legal Settlement Administration
•
Class Actions
–
Securities
–
Product Liability
•
Bankruptcy Administration
Broadspire
•
Workers’
Compensation  and
Liability Claims Administration
•
Medical and Case Management
•
Long-Term Care Services
•
Integrated Disability Management
•
Risk Management Information
Systems (RSG)
•
Claim Triage Solution (e-Triage)
•
No single client over 6% of total revenue
•
Top 20 Clients represent 34.7% of total revenue
•
Top 50 Clients represent 48.5% of total revenue

13
Fiscal 2008 Financials
Year Ended December 31
2008
2007
% Change
Revenues:
Revenues Before Reimbursements
$1,048,582
$975,143
8%
Reimbursements
87,334
76,135
15%
Total Revenues
1,135,916
1,051,278
8%
Costs and Expenses:
Cost of Services Provided, Before Reimbursements
770,724
733,392
5%
Reimbursements
87,334
76,135
15%
Total Cost of Services
858,058
809,527
6%
Selling, General, and Administrative Expenses
215,625
211,737
2%
Corporate Interest Expense, Net
17,622
17,326
2%
Restructuring Costs
3,300
-
nm
Total Costs and Expenses
1,094,605
1,038,590
5%
Gain on Sale of Former Corporate Headquarters
-
4,844
nm
Gains on Sales of Businesses
2,512
3,980
-37%
Income Before Income Taxes
43,823
21,512
104%
Provision for Income Taxes
11,564
5,396
114%
Net Income
$32,259
$16,116
100%
Earnings Per Share:
Basic
$0.64
$0.32
98%
Diluted
$0.62
$0.32
94%
nm = not meaningful
* does not reflect accounting principles adopted in fiscal 2009
CONDENSED CONSOLIDATED STATEMENTS OF INCOME*
(In Thousands, Except Earnings Per Share and Percentages)
Unaudited

14
Fiscal 2008 Financials
Crawford & Company
Balance Sheet Highlights*
As of December 31, 2008 and December 31, 2007
in thousands, except percentages
    December 31,
    December 31,
                2008
                2007
Change
Cash and cash equivalents
$73,124
$50,855
$22,269
Accounts receivable, net
157,430
178,528
(21,098)
Work in process
99,115
136,652
(37,537)
     Total receivables
256,545
315,180
(58,635)
Deferred revenues, net                   
95,670
111,036
(15,366)
Pension liabilities
179,542
76,977
102,565
Current portion of long-term debt, capital leases
and short-term borrowings
15,650
31,864
(16,214)
Long-term debt
181,206
183,449
(2,243)
     Total debt
196,856
215,313
(18,457)
Total stockholders' equity
175,551
254,215
(78,664)
Net debt
123,732
164,458
(40,726)
Total debt / capitalization
53%
46%
*Does not reflect accounting principles adopted in fiscal 2009

15
Fiscal 2008 Financials
Crawford & Company
Free Cash Flow  (non-GAAP)
For the years ended December 31, 2008 and 2007
In Thousands
2008
2007
Variance
Net Income
$32,259
$16,116
$16,143
Plus: Depreciation / Non-Cash Items
38,923
31,692
7,231
Less: Special Credits
(2,512)
(8,824)
6,312
Less: Working Capital Growth
20,221
(15,151)
35,372
Less: U.S. Pension Contributions
(17,916)
(549)
(17,367)
Operating Cash Flow
70,975
23,284
47,691
Less: Capital Expenditures
(19,336)
(21,553)
2,217
Less: Internally Developed Software
(12,675)
(6,556)
(6,119)
Less: Mandatory Principal Payments
(2,100)
(2,100)
-
Free Cash Flow (non-GAAP)
$36,864
($6,925)
$43,789

16
First Quarter 2009 Financials
Quarter Ended March 31
2009
2008
% Change
Revenues:
    Revenues Before Reimbursements
$236,083
$255,512
-8%
    Reimbursements
14,200
19,161
-26%
Total Revenues
250,283
274,673
-9%
Costs and Expenses:
         Cost of Services Before Reimbursements
175,162
186,953
-6%
         Reimbursements
14,200
19,161
-26%
    Total Cost of Services
189,362
206,114
-8%
    Selling, General, and Administrative
51,488
50,503
2%
    Corporate Interest Expense, Net
3,485
4,416
-21%
    Restructuring Costs
1,815
-
              
nm
Total Costs and Expenses
246,150
261,033
-6%
Income Before Income Taxes
4,133
13,640
-70%
Provision for Income Taxes
1,120
4,644
-76%
Net Income
3,013
8,996
-67%
Add:  Net Loss Attributable to Noncontrolling Interests
69
           
72
           
-4%
Net Income Attributable to Crawford & Company
$3,082
$9,068
-66%
Earnings Per Share - Basic and Diluted
$0.06
$0.18
-67%
nm = not meaningful
CRAWFORD  &  COMPANY
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
Unaudited
(In Thousands, Except Earnings Per Share Amounts and Percentages)

17
Revenue and Earnings Per Share Bridge
1
st
Quarter
2008
to
2009
In millions, except per share amounts
Revenues before
Reimbursements
Net
Income
attributable
to Crawford
& Company
Diluted
EPS
1
st
quarter 2008 results
$255.5
$9.1
$0.18
(Less)/Add:
Foreign currency impact in 2009
(23.4)
(1.4)
(0.03)
Increase in pension expense in 2009
-
(2.3)
(0.05)
Restructuring costs in 2009
-
(1.2)
(0.02)
Bad debt recovery in 2008
-
(0.9)
(0.02)
Operating changes
4.0
(0.2)
(  
-
)
1
st
quarter 2009 results
$236.1
$3.1
$0.06

Operating Segments

19
60
70
80
90
100
110
1Q 2009
1Q 2008
Revenue
6
6.5
7
7.5
8
8.5
9
1Q 2009
1Q 2008
Operating Earnings
$ in millions
$ in millions
First Quarter 2009 Financials
$90.9
$106.7
$7.5
$9.0
Revenues down $23.4 million due to strong U.S. dollar
Revenues increased 7.0% on a constant dollar basis
Summary Results, International Operations
For the quarters ended March 31, 2009 and 2008
in thousands except percentages
Unaudited
2009
2008
% Change
Revenues
90,872
$    
106,710
$ 
-14.8%
Total Operating Expenses
83,407
97,723
-14.6%
Operating Earnings
7,465
$      
8,987
$     
-16.9%
Operating Margin
8.2%
8.4%

20
International (excluding U.S.) Property &
Casualty Insurance Market Opportunities
Crawford
#2
#3
Regional/Local Providers
•
Only 4.4% of dollars spent by rest of world (ROW) carriers on claims
are outsourced to third party independent adjusters.
•
Very
few
global
claims
providers
–
Crawford
is
the
largest
•
As ROW insurance carriers look to consolidate claims services
vendors, small firms lose market share.
ROW Unallocated Loss Adjusting Expenses
$41.1 Billion
95.6%
$1.9 Billion
4.4%
$985 Million
51.8%
$140 Million
7.4%
ROW Outsourced Loss Adjusting Expenses
$445 Million
23.4%
Source: Crawford & Company (estimate)
$330 Million
17.4%
Insurance Carrier Internal Claims Dept.
Outsourced

21
0
10
20
30
40
50
60
1Q 2009
1Q 2008
Revenue
5.7
5.8
5.9
6.0
6.1
6.2
6.3
1Q 2009
1Q 2008
Operating Earnings
$ in millions
$ in millions
$49.5
$55.1
$5.9
$6.2
Catastrophe revenues up $3.0 million due to severe weather
Cases up nearly 7% in 2009 quarter
Prior year period includes bad debt recovery of $389,000
First Quarter 2009 Financials
Summary Results, U.S. Property & Casualty
For the quarters ended March 31, 2009 and 2008
in thousands except percentages
Unaudited
2009
2008
% Change
Revenues
55,052
$    
49,510
$   
11.2%
Total Operating Expenses
48,882
43,561
12.2%
Operating Earnings
6,170
$      
5,949
$     
3.7%
Operating Margin
11.2%
12.0%

22
Insurance Carrier Internal Claims Dept.
Outsourced
4,000+ Local & Regional Providers
National Providers
Crawford
U.S. Unallocated Loss Adjusting Expenses
$21.7
Billion
86.1%
$3.5 Billion
13.9%
$3 Billion
86%
$280 Million
8%
U.S. Outsourced Loss Adjusting Expenses
$216 Million
6%
Source: Cochran, Caronia
& Co. and Crawford & Company
•
Approximately 14% of dollars spent by U.S. carriers on claims services are
outsourced to third parties
–
High propensity to outsource non-core lines and/or non-core states
•
Outsourced claims service provider market is highly fragmented
–
Crawford is the market leader with approximately 6%
•
As insurance carriers look to consolidate claims services vendors, small firms lose
market share
–
Most U.S. carriers are dramatically reducing the number of vendors on “approved lists”
U.S. Insurance Market

23
U.S. Property & Casualty Growth
Opportunities
•
Strategic Growth
–
Target large insurers who are consolidating their vendor lists and
strive to ensure Crawford is named an approved vendor
•
Continuous quality improvement
•
Efforts toward training and product development
–
Target markets
•
Small and mid-market carriers
•
Managing general agents (London Market)
•
Non-standard insurers
•
Property & casualty programs run by self-insured entities
•
Organic Growth
–
Key account plans for top clients
–
Account managers for each major client
–
Easily accessible database of client instructions

24
40
50
60
70
80
90
1Q 2009
1Q 2008
Revenue
-3
-2
-1
0
1
2
1Q 2009
1Q 2008
Operating Earnings (Loss)
$ in millions
$ in millions
$74.6
$80.3
$1.7
($2.0)
Revenues and earnings declined due to lower workers’
compensation claim referrals
Impact of economic crisis being felt most by this segment
First Quarter 2009 Financials
Summary Results, Broadspire
For the quarters ended March 31, 2009 and 2008
in thousands except percentages
Unaudited
2009
2008
% Change
Revenues
74,601
$    
80,313
$   
-7.1%
Total Operating Expenses
76,555
78,566
-2.6%
Operating Earnings (Loss)
(1,954)
$     
1,747
$     
nm
Operating Margin
-2.6%
2.2%

25
Broadspire Positioning
Third Largest TPA in Workers’
Compensation/Liability Market
Products and Services:
Workers’
Compensation Claims Services
Auto and General Liability Claims Services
Medical and Disability Management Services
Long-Term Care Services
Risk Management Information Systems (Risk Sciences Group)
Claim Triage Solution (e-Triage)
Broadspire
Competitor
A
Competitor
B
Competitor
C
Competitor
D
Claim
X
X
X
X
X
RMIS
X
X
X
X
X
Med Bill Review
X
X
TCM/UM
X
X
FCM
X
Peer Review
X
Claim Triage
X
Long Term Care
X
Comparison of Services Provided with Inhouse
Resources

26
U.S. TPA Market Opportunities
•
Self-insured entities and captives outsource practically all of
their claims services
•
Outsourced total claims management is fragmented
•
Local and regional providers unable to leverage technology
investment
9 Largest Providers
Broadspire
Local and Regional Providers
$0.4 Billion
$3.2 Billion
Unallocated Loss Adjusting Expenses
Outsourced Loss Adjusting Expenses
$1.8 Billion
55.9%
$1.1 Billion
34.1%
$312 Million
10.0%
Source: Cochran, Caronia & Co. and Crawford & Company
Internal
Outsourced

27
10.0
12.0
14.0
16.0
18.0
20.0
1Q 2009
1Q 2008
Revenue
0.0
0.5
1.0
1.5
2.0
2.5
1Q 2009
1Q 2008
Operating Earnings
$ in millions
$ in millions
$15.6
$19.0
$2.5
$1.5
Revenues and operating earnings decrease reflects ongoing
slowdown in class action settlements
Bankruptcy-related revenues increasing
Backlog of $39.0 million
First Quarter 2009 Financials
Summary Results, Legal Settlement Administration
For the quarters ended March 31, 2009 and 2008
in thousands except percentages
Unaudited
2009
2008
% Change
Revenues
15,558
$    
18,979
$   
-18.0%
Total Operating Expenses
14,031
16,482
-14.9%
Operating Earnings
1,527
$      
2,497
$     
-38.8%
Operating Margin
9.8%
13.2%

28
Products and Services
•
The Garden City Group, Inc. (GCG) provides these core services:
–
GCG Class Action Services
provides technology-intensive
administrative services for plaintiff and defense counsel and corporate
defendants to expedite high-volume class action settlements.
•
GCG Class Action Services has administered a diverse portfolio of
litigation settlements, including:
–
sensitive and high-profile consumer, employment, human rights, mass tort,
antitrust, product liability and securities cases.
–
GCG Bankruptcy Services
offers cost-effective, end-to-end solutions
for managing the administration of bankruptcy cases under Chapter
11.
–
GCG Communications
specializes in legal notice programs for
successful case administration. GCG Communications offers a range
of complementary services for developing and implementing effective
legal notice programs worldwide.

29
0
5
10
15
20
25
30
35
AB Data,
Ltd.
Berdon
LLP
Complete
Claims
Solutions, LLC
Heffler
Radetich
&
Saitra
LLP
Gilardi
and
Co., LLC
Garden
City Group
Securities Class Action Cases
Source: RiskMetrics
Group (SCAS Top 100 since 1995, September 30, 2008)
4
4
4
11
26
33
GCG has handled one-third of the largest 100 securities class action cases

Summary

31
Crawford is “Positioned for Growth”
•
Access to growing global markets
•
Increasing market share both domestic and internationally
•
Crawford expects to benefit from global consolidation of TPA
vendors
•
Diverse customer base
•
High customer retention rates
•
Emphasis on quality and value provided sustains client confidence
•
Disciplined management
•
Improved  financial performance
•
Consolidated revenues, earnings, margins, and cash flows
improved in 2008
•
Investment in enhanced technology in all business
units

32
Execution Strategy
•
Relentless dedication to outstanding execution
•
Each strategic action and intention translated into monthly,
measurable, objectives and outcomes
•
Systematic tracking of interim milestones better enables leadership
control and proactive decision making
•
Reinforce accountability, results orientation and strategic success
throughout the year
•
Provide an effective and more detailed map for the enterprise and
each business unit to achieve 2009 objectives

33
2009 Guidance
•
Reaffirming Full Year 2009 Guidance:
–
Consolidated revenue before reimbursements between $960
million and $980 million
–
Consolidated operating earnings between $50.5 million and
$55.8 million
–
After reflecting stock-based compensation expense, net
corporate interest expense, customer-relationship intangible
amortization expense, special items and income taxes, net
income attributed to Crawford & Company on a GAAP basis
between $22.0 million and $25.0 million
–
Earnings per share of $.41 to $.47

34
WORKING
TOGETHER:
the
Crawford
Difference
“Crawford & Company will be known as a target driven
corporation that meets its promises to clients and
shareholders.”
Jeffrey T. Bowman
President and CEO

35
Appendix: Non-GAAP Financial Information
Reimbursements for Out-of-Pocket Expenses
In the normal course of our business, we sometimes pay for certain out-of-pocket expenses that are reimbursed by our clients. Under GAAP,
these out-of-pocket expenses and associated reimbursements are reported as revenues and expenses in our Consolidated Statement of
Income. In this presentation, we do not believe it is informative to include the GAAP-required gross up of our revenues and expenses for
these pass-through reimbursed expenses. The amounts of reimbursed expenses and related revenues offset each other in our
Consolidated Statement of Income with no impact to our net income. Unless noted in this presentation, revenue and expense amounts
exclude reimbursements for out-of-pocket expenses.
Net debt
Management believes that net debt is useful because it provides investors with an estimate of what the Company’s debt would be if all available
cash
was
used
to
pay
down
the
debt
of
the
Company.
The
measure
is
not
meant
to
imply
that
management
plans
to
use
all
available
cash
to pay down debt.
Deferred Revenues, net
Deferred
Revenues,
net
is
computed
as
the
sum
of
the
current
and
noncurrent
deferred
revenue
as
reported
on
our
consolidated
balance
sheet
less
the
sum
of
the
current
and
noncurrent
receivable
held
in
trust
to
be
released
to
us
as
payment
to
service
this
revenue.
The
current
portion
of
the
receivable
held
in
trust
is
reported
as
a
component
of
Accounts
receivable
and
the
noncurrent
portion
is
reported
as
a
component
of
Other
Noncurrent
Assets
in
our
consolidated
balance
sheet.
The
funds
represented
by
the
amount
of
the
receivable
held
in
trust are released to the Company over time to partially offset the costs of servicing the deferred revenue.  Management believes that
subtracting the receivable held in trust from deferred revenue provides investors with a snapshot of what the net cash costs will be to
service the deferred revenue in the future.
Free Cash Flow
Management believes free cash flow is useful to investors as it presents the amount of cash the Company has generated that can be used for
other purposes, including additional contributions to the Company’s defined benefit pension plans, discretionary prepayments of
outstanding
borrowings
under
our
credit
agreement,
and
return
of
capital
to
shareholders,
among
other
purposes.
It
does
not
represent
the residual cash flow of the Company available for discretionary expenditures. 

36
Appendix: Non-GAAP Financial Information
Crawford and Company
(in $000's)
March 31,
December 31,
December 31,
2009
2008
2007
Deferred Revenues, Net
Deferred revenues, current
57,280
$    
59,679
$       
64,363
$       
Deferred revenues, noncurrent
39,758
42,795
58,925
Total deferred revenues
97,038
102,474
123,288
Less:
Receivable held in trust included in accounts receivable
2,267
2,121
4,693
Receivable held in trust included in other noncurrent assets
4,230
4,683
7,559
Deferred revenues, net
90,541
$    
95,670
$       
111,036
$     
Net debt
Short-term borrowings
9,758
$      
13,366
$       
29,389
$       
Current installments of long-term debt and capital leases
2,316
2,284
2,475
Long-term debt and capital leases, less current installments
180,565
181,206
183,449
Total debt
192,639
196,856
215,313
Less:
Cash and cash equivalents
42,526
73,124
50,855
Net debt
150,113
$  
123,732
$     
164,458
$     

SunTrust Robinson Humphrey
Unconference
May 20, 2009