Financial and Operating Highlights (unaudited)
(Dollars in millions, except percentages and per share amounts)
For the Years Ended December 31,

2013

2012

% Change
Revenues Before Reimbursements (1)
$1,163.4
$1,176.7
(1)%
Net Income Attributable to Shareholders of Crawford & Company
$ 51.0
$ 48.9
4%
Cash Provided by Operating Activities
$ 77.8
$ 92.9
(16)%
Diluted Earnings per Share—CRDA
$ 0.93
$ 0.91
2%
Earnings per Share—CRDB
$ 0.90
$ 0.87
3%
Return on Average Shareholders Investment
30.3%
36.3%
(6)%

(1) Measurements of financial performance not calculated in accordance with U.S. Generally Accepted Accounting Principles ("GAAP") should be considered as supplements to, and not substitutes for, performance measurements calculated or derived in accordance with GAAP. Any such measures are not necessarily comparable to other similarly-titled measurements employed by other companies.
Condensed Consolidated Statements of Income (unaudited)
(In thousands, except per share amounts)
Year Ended December 31,

2013

2012

2011
Revenues from Services:
Revenues Before Reimbursements
$1,163,445
$1,176,717
$1,125,355
Reimbursements
89,985
89,421
86,007
Total Revenues
1,253,430
1,266,138
1,211,362
Costs and Expenses:
Costs of services provided, before reimbursements
846,442
846,638
831,922
Reimbursements
89,985
89,421
86,007
Total costs of services
936,427
936,059
917,929
Selling, general, and administrative expenses
232,307
228,411
221,470
Corporate interest expense, net of interest income of $$967, and
$1,020, respectively
6,423
8,607
15,911
Special charges and credits
11,332
(2,379)
Total Costs and Expenses
1,175,157
1,184,409
1,152,931
Other Income
2,829
1,711
Income Before Income Taxes
81,102
83,440
58,431
Provision for Income Taxes
29,766
33,686
12,739
Net Income
51,336
49,754
45,692
Net Income Attributable to Noncontrolling Interests
358
866
288
Net Income Attributable to Shareholders of Crawford & Company
$ 50,978
$ 48,888
$ 45,404
Earnings Per Share—Basic:
Class A Common Stock
$ 0.95
$ 0.92
$ 0.86
Class B Common Stock
$ 0.91
$ 0.88
$ 0.84
Earnings Per Share—Diluted:
Class A Common Stock
$ 0.93
$ 0.91
$ 0.85
Class B Common Stock
$ 0.90
$ 0.87
$ 0.83
Weighted-Average Shares Used to Compute Basic Earnings Per Share:
Class A Common Stock
29,853
29,536
28,820
Class B Common Stock
24,690
24,693
24,697
Weighted-Average Shares Used to Compute Diluted Earnings Per Share:
Class A Common Stock
30,855
30,272
29,549
Class B Common Stock
24,690
24,693
24,697
Cash Dividends Per Share:
Class A Common Stock
$ 0.18
$ 0.20
$ 0.10
Class B Common Stock
$ 0.14
$ 0.16
$ 0.08

This financial information should be read with the Company’s audited consolidated financial statements and notes thereto, and related information included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2013, as filed with the Securities and Exchange Commission.
Condensed Consolidated Statements of Comprehensive Income (unaudited)
(In thousands)
Year Ended December 31,

2013

2012

2011
Net Income
$51,336
$49,754
$45,692
Other Comprehensive Income (Loss):
Net foreign currency translation (loss) gain
(4,283)
(2,787)
2,009
Amounts reclassified into net income for defined benefit pension
plans, net of tax provision of $4,220, $3,283, and $3,573,
respectively
8,834
6,340
6,909
Net unrealized gain (loss) on defined benefit plans arising during
the year, net of tax (provision) benefit of ($13,846), $18,109, and
$6,512, respectively
15,671
(39,934)
(9,452)
Interest rate swap agreement loss reclassified into income, net
of tax benefit of $0, $253, and $274, respectively
414
568
Interest rate swap agreement loss recognized during the period,
net of tax benefit of $0, $0, and $67, respectively
(111)
Other Comprehensive Income (Loss)
20,222
(35,967)
(77)
Comprehensive Income
71,558
13,787
45,615
Comprehensive income (loss) attributable to noncontrolling interests
309
777
(508)
Comprehensive Income Attributable to Shareholders of Crawford & Company
71,249
13,010
46,123

This financial information should be read with the Company’s audited consolidated financial statements and notes thereto, and related information included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2013, as filed with the Securities and Exchange Commission.
Condensed Consolidated Balance Sheets (unaudited)
(In thousands)
December 31,

2013

2012
ASSETS
Current Assets:
Cash and cash equivalents
$ 75,953
$ 71,157
Accounts receivable, less allowance for doubtful accounts of $10,234
and $10,584, respectively
160,350
164,708
Unbilled revenues, at estimated billable amounts
105,791
124,881
Income taxes receivable
5,150
Prepaid expenses and other current assets
22,437
26,019
Total Current Assets
369,681
386,765
Property and Equipment:
Property and Equipment
155,326
155,359
Less accumulated depreciation
(109,643)
(109,312)
Net Property and Equipment
45,683
46,047
Other Assets:
Goodwill
132,777
131,995
Intangible assets arising from business acquisitions, net
82,103
89,027
Capitalized software costs, net
72,761
67,299
Deferred income tax assets
61,375
99,288
Other noncurrent assets
25,678
26,994
Total Other Assets
374,694
414,603
TOTAL ASSETS
$790,058
$847,415

(In thousands)
December 31,

2013

2012
LIABILITIES AND SHAREHOLDERS' INVESTMENT
Current Liabilities:
Short-term borrowings
$35,000
$13,275
Accounts payable
50,941
54,975
Accrued compensation and related costs
98,656
103,552
Self-insured risks
13,100
14,120
Income taxes payable
3,476
4,357
Deferred income taxes
15,063
16,267
Deferred rent
16,062
16,946
Other accrued liabilities
34,270
37,465
Deferred revenues
49,950
56,379
Current installments of long-term debt and capital leases
875
838
Total Current Liabilities
317,393
318,174
Noncurrent Liabilities:
Long-term debt and capital leases, less current installments
101,770
152,293
Deferred revenues
26,893
26,438
Self-insured risks
12,530
13,893
Accrued pension liabilities
102,960
168,216
Other noncurrent liabilities
20,979
26,602
Total Noncurrent Liabilities
265,132
387,442
Shareholders' Investment
Class A common stock, $1.00 par value, 50,000 shares authorized, 29,875 and 29,335
shares issued and outstanding, respectively.
29,875
29,335
Class B common stock, $1.00 par value, 50,000 shares authorized, 24,690 shares
issued and outstanding
24,690
24,690
Additional paid-in capital
39,285
35,550
Retained earnings
285,165
246,105
Accumulated other comprehensive loss
(179,210)
(199,481)
Shareholders' Investment Attributable to Shareholders of Crawford & Company
199,805
136,199
Noncontrolling interests
7,728
5,600
Total Shareholders' Investment
207,533
141,799
TOTAL LIABILITIES AND SHAREHOLDERS' INVESTMENT
$790,058
$847,415

This financial information should be read with the Company's audited consolidated financial statements and notes thereto, and related information included in the Company's Annual Report on Form 10-K for the year ended December 31, 2013, as filed with the Securities and Exchange Commission.
Condensed Consolidated Statements of Cash Flows (unaudited)
(In thousands)
Year Ended December 31,

2013

2012

2011
Cash Flows from Operating Activities:
Net income
$51,336
$49,754
$45,692
Reconciliation of net income to net cash provided by operating activities:
Depreciation and amortization
33,903
32,796
31,818
Arbitration award
(6,992)
Write-off of deferred financing costs on previous term loan
3,415
Deferred income taxes
15,625
19,355
(2,058)
Stock-based compensation costs
3,835
3,660
3,756
Loss (gain) on disposals of property and equipment, net
273
(136)
(143)
Changes in operating assets and liabilities, net of effects of acquisitions
and dispositions:
Accounts receivable, net
2,102
(4,197)
(13,594)
Unbilled revenues, net
16,528
(18,725)
18,099
Accrued or prepaid income taxes
(2,160)
(628)
284
Accounts payable and accrued liabilities
(22,328)
28,853
(6,383)
Deferred revenues
(5,895)
1,290
1,443
Accrued retirement costs
(22,086)
(15,639)
(36,633)
Prepaid expenses and other operating activities
6,711
(3,530)
(2,028)
Net cash provided by operating activities
77,844
92,853
36,676
Cash Flows from Investing Activities:
Acquisitions of property and equipment
(14,037)
(15,375)
(14,221)
Proceeds from disposals of property and equipment
47
417
Capitalization of computer software costs
(16,976)
(17,801)
(15,677)
Cash received in arbitration award
4,913
Payments for business acquisitions, net of cash acquired
(2,515)
(674)
(10,365)
Net cash used in investing activities
(33,528)
(33,803)
(34,933)
Cash Flows from Financing Activities:
Cash dividends paid
(8,840)
(9,880)
(4,872)
Payments related to shares received for withholding taxes under stock-based
compensation plans
(1,322)
(1,307)
(1,653)
Proceeds from shares purchased under employee stock-based compensation plans
1,884
520
602
Repurchases of common stock
(3,631)
(2,840)
Increase in short-term borrowings and revolving credit agreement
88,460
42,174
59,753
Payments on short-term borrowings and revolving credit agreement
(99,461)
(91,412)
(55,951)
Proceeds from long-term borrowings
248,254
Payments on long-term debt and capital lease obligations
(15,823)
(1,583)
(260,004)
Capitalized loan costs
(30)
(161)
(3,702)
Dividends paid to noncontrolling interests
(369)
(429)
(391)
Net cash used in financing activities
(39,132)
(64,918)
(17,964)
Effects of exchange rate changes on cash and cash equivalents
(388)
(588)
294
Increase Decrease in Cash and Cash Equivalents
4,796
(6,456)
(15,927)
Cash and Cash Equivalents at Beginning of Year
71,157
77,613
93,540
Cash and Cash Equivalents at End of Year
$75,953
$71,157
$77,613

This financial information should be read with the Company’s audited consolidated financial statements and notes thereto, and related information included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2013, as filed with the Securities and Exchange Commission.
Condensed Consolidated Statements of Shareholders' Investment (unaudited)

(In thousands)
Common Stock

Class A Non-Voting

Class B Voting

Additional Paid-In Capital

Retained Earnings

Accumulated Other Comprehensive Loss

Shareholders' Investment Attributable to Shareholders of Crawford & Company

Noncontrolling Interests

Total Shareholders' Investment
Balance at January 1, 2011
$28,002
$24,697
$32,348
$168,791
$(164,322)
$89,516
$5,715
$95,231
Net Income
45,404
45,404
288
45,692
Other comprehensive
income (loss)
719
719
(796)
(77)
Cash dividends paid
(4,872)
(4,872)
(4,872)
Stock-based compensation
3,756
3,756
3,756
Shares issued in
connection with
stock-based
compensation plans,
net
1,084
(2,135)
(1,051)
(1,051)
Dividends paid to
noncontrolling interests
(391)
(391)
Balance at December 31, 2011
29,086
24,697
33,969
209,323
(163,603)
133,472
4,816
138,288
Net income
48,888
48,888
866
49,754
Other comprehensive loss
(35,878)
(35,878)
(89)
(35,967)
Cash dividends paid
(9,880)
(9,880)
(9,880)
Stock-based compensation
3,660
3,660
3,660
Repurchases of common
stock
(607)
(7)
(2,226)
(2,840)
(2,840)
Shares issued in
connection with
stock-based
compensation plans,
net
856
(1,643)
(787)
(787)
Change in noncontrolling
interest due to
acquisition of
controlling interest
(436)
(436)
436
Dividends paid to
noncontrolling interests
(429)
(429)
Balance at December 31, 2012
29,335
24,690
35,550
246,105
(199,481)
136,199
5,600
141,799
Net income
50,978
50,978
358
51,336
Other comprehensive
income (loss)
20,271
20,271
(49)
20,222
Cash dividends paid
(8,840)
(8,840)
(8,840)
Stock-based compensation
3,835
3,835
3,835
Repurchases of common
stock
(553)
(3,078)
(3,631)
(3,631)
Shares issued in connection
with stock-based
compensation plans, net
1,093
(100)
993
993
Increase in value of
non­controlling interest
due to acquisition of a
controlling interest
2,188
2,188
Dividends paid to
noncontrolling interests
(369)
(369)
Balance at December 31, 2013
$29,875
$24,690
$39,285
$285,165
$(179,210)
$199,805
$7,728
$207,533

This financial information should be read with the Company’s audited consolidated financial statements and notes thereto, and related informations included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2013, as filed with the Securities and Exchange Commission.
Selected Financial Data (unaudited)
The following selected financial data should be read in conjunction with Item 7, "Management's Discussion and Analysis of Financial Condition and Results of Operations" and the audited consolidated financial statements and notes thereto contained in Item 8, "Financial Statements and Supplementary Data" included in the Company's Annual Report on Form 10-K for the year ended December 31, 2013, as filed with the Securities and Exchange Commission.
(In thousands, except per share amounts and percentages)
Year Ended December 31,

2013

2012

2011

2010

2009
Revenues before Reimbursements
$1,163,445
$1,176,717
$1,125,355
$1,030,417
$969,868
Reimbursements
89,985
89,421
86,007
80,384
78,334
Total Revenues
1,253,430
1,266,138
1,211,362
1,110,801
1,048,202
Total Costs of Services
936,427
936,059
917,929
839,247
792,325
Americas Operating Earnings(1)
18,532
11,878
20,007
20,748
29,394
EMEA/AP Operating Earnings(1)
32,158
48,481
28,096
24,828
23,401
Broadspire Operating Earnings (Loss)(1)
8,245
21
(11,417)
(11,712)
(1,602)
Legal Settlement Administration Operating Earnings(1)
46,752
60,284
51,307
47,661
13,130
Unallocated Corporate and Shared Costs and Credits, Net
(10,829)
(10,504)
(9,403)
(5,841)
(10,996)
Goodwill and Intangible Asset Impairment Charges
(10,788)
(140,945)
Net Corporate Interest Expense
(6,423)
(8,607)
(15,911)
(15,002)
(14,166)
Stock Option Expense
(948)
(408)
(450)
(761)
(914)
Amortization of Customer-Relationship Intangible Assets
(6,385)
(6,373)
(6,177)
(5,995)
(5,994)
Special (Charges) and Credits, Net
(11,332)
2,379
(4,650)
(4,059)
Income Taxes
(29,766)
(33,686)
(12,739)
(9,712)
(2,618)
Net Income Attributable to Noncontrolling Interests
(358)
(866)
(288)
(448)
(314)
Net Income (Loss) Attributable to Shareholders of 
Crawford & Company
$50,978
$48,888
$45,404
$28,328
$(115,683)
Earnings (Loss) Per CRDB Share(2):
Basic
$0.91
$0.88
$0.84
$0.54
$(2.23)
Diluted
$0.90
$0.87
$0.83
$0.53
$(2.23)
Current Assets
$369,681
$386,765
$369,549
$379,405
$325,715
Total Assets
$790,058
$847,415
$818,477
$820,674
$742,905
Current Liabilities
$317,393
$318,174
$286,749
$296,841
$258,998
Long-Term Debt, Less Current Installments
$101,770
$152,293
$211,983
$220,437
$173,061
Total Debt
$137,645
$166,406
$214,187
$223,328
$181,282
Shareholders’ Investment Attributable to Shareholders of
Crawford & Company
$199,805
$136,199
$133,472
$89,516
$56,682
Total Capital
$337,450
$302,605
$347,659
$312,844
$237,964
Current Ratio
1.2:1
1.2:1
1.3:1
1.3:1
1.3:1
Total Debt to Total Capital Ratio
40.8%
55.0%
61.6%
71.4%
76.2%
Return on Average Shareholders’ Investment
30.3%
36.3%
40.7%
38.8%
(99.6)%
Cash Provided by Operating Activities
$77,844
$92,853
$36,676
$26,167
$51,664
Cash Used in Investing Activities
$(33,528)
$(33,803)
$(34,933)
$(42,531)
$(31,169)
Cash (Used in) Provided by Financing Activities
$(39,132)
$(64,918)
$(17,964)
$39,520
$(26,555)
Shareholders’ Investment Attributable to
Shareholders of Crawford & Company Per Diluted Share
$3.60
$2.48
$2.46
$1.68
$1.09
Cash Dividends Per Share:
CRDA
$0.18
$0.20
$0.10
$
$
CRDB
$0.14
$0.16
$0.08
$
$
Weighted-Average Shares and Share-Equivalents:
Basic
54,543
54,229
53,517
52,664
51,830
Diluted
55,545
54,965
54,246
53,234
51,830

(1) This is a segment financial measure calculated in accordance with ASC Topic 280, and representing segment earnings (loss) before certain unallocated corporate and shared costs and credits, net corporate interest expense, stock option expense, amortization of customer-relationship intangible assets, special charges and credits, goodwill and intangible asset impairment charges, income tax expense, and net income attributable to noncontrolling interests.

(2) Earnings (loss) per share for CRDA and CRDB were the same for years 2009–2010. Beginning in 2011, a higher per share dividend was declared on nonvoting CRDA shares than on voting CRDB shares, impacting the earnings per share calculation according to generally accepted accounting principles. As a result, unless otherwise indicated, references to earnings per share refer to CRDB, which is a more dilutive presentation.
Comparison of Cumulative Five Year Total Return

The adjacent line graph compares the cumulative return on the Company's Class B Common Stock against the cumulative total return on (i) the Standard & Poor's Composite 500 Stock Index and (ii) the Standard & Poor's Property & Casualty Insurance Index for the five-year period commencing December 31, 2008 and ended December 31, 2013. The total shareholders' return model assumes reinvested dividends and is based on a $100 investment on December 31, 2008. We caution you not to draw any conclusions from the data in this performance graph, as past results do not necessarily indicate future performance. The foregoing graph is not, and shall not be deemed to be, filed as part of the Company's annual report on Form 10-K. Such a graph does not constitute soliciting material and should not be deemed filed or incorporated by reference into any filing of the Company under the Securities Act of 1933, or the Securities Exchange Act of 1934, except to the extent specifically incorporated by reference therein by the Company.


Indexed Returns Years Ending

Total Return to Shareholders
(Includes reinvestment of dividends)



Company/Index
 
ANNUAL RETURN PERCENTAGE
Years Ended


Dec '09


Dec '10


Dec '11


Dec '12


Dec '13
Crawford & Company (Class B)
(72.90)
(13.71)
83.75
33.86
17.83
S&P 500 Index
26.46
15.06
2.11
16.00
32.39
S&P Property-Casualty Insurance Index
12.35
8.94
(0.25)
20.11
38.29


Company/Index
Base
Period


Dec '08
ANNUAL RETURN PERCENTAGE
Years Ended


Dec '09


Dec '10


Dec '11


Dec '12


Dec '13
Crawford & Company (Class B)
100
27.10
23.38
42.97
57.52
67.77
S&P 500 Index
100
126.46
145.51
148.59
172.37
228.19
S&P Property-Casualty Insurance Index
100
112.35
122.38
122.08
146.63
202.78

Adjusted Diluted Earnings per CRDB Share on a non-GAAP Basis (1)

$1.00

0.80

0.60

0.40

0.20

0

'09

'10

'11

'12

'13

Revenues before Reimbursements(1)
($ in Millions)

$1,200

1,000

800

600

400

200

0

'09

'10

'11

'12

'13

Cases Received
(In Thousands)

1,500

1,200

900

600

300

0

'09

'10

'11

'12

'13

Consolidated Operating Earnings(1)
($ in Millions)

$120

100

80

60

40

20

0

'09

'10

'11

'12

'13

Net Debt(1)
($ in Millions)

$150

120

90

60

30

0

'09

'10

'11

'12

'13

Operating Cash Flows(1)
($ in Millions)

$100

80

60

40

20

0

'09

'10

'11

'12

'13


(1) Measurements of financial performance not calculated in accordance with U.S. Generally Accepted Accounting Principles ("GAAP") should be considered as supplements to, and not substitutes for, performance measurements calculated or derived in accordance with GAAP. Any such measures are not necessarily comparable to other similarly-titled measurements employed by other companies.