Crawford Reports Drop in Income, Revenues

Atlanta-based Crawford & Company reported lower revenues and income for both the third quarter and nine months ended September 30, 2002, compared with the same periods the previous year.

Third quarter 2002 revenues before reimbursements were $175.9 million compared with $181.4 million in the 2001 third quarter. Operating earnings (earnings before amortization of goodwill, net corporate interest and taxes) in the third quarter totaled $10.1 million compared with $12.8 million in the 2001 quarter. Net income was $5.6 million, or $0.11 per share, in the 2002 third quarter compared with $6.7 million, or $0.14 per share, in the period in 2001..

Third quarter 2002 net income per share was increased by $0.01 per share due to the company’s adoption of Statement of Financial Accounting Standard 142, “Goodwill and Other Intangible Assets.” This change increased net income per share by $0.04 for the current year-to-date period.

Total revenues before reimbursements for the nine months ended September 30, 2002 were $525.7 million compared with $547.4 million in 2001. Operating earnings (before nonrecurring credit in the 2002 first quarter) through September 30, 2002 totaled $26.9 million compared with $44.6 million in 2001. Net income for the period totaled $18.7 million, or $0.38 per share, compared with $23.6 million, or $0.49 per share, reported in the prior year.

Domestic revenues before reimbursements for the 2002 nine-month period were $387.1 million compared with $404.8 million in 2001. International revenues before reimbursements were $138.6 million in 2002 compared with $142.5 million during 2001. Excluding the adverse impact of exchange rate fluctuations due to the overall strength of the U.S. dollar during the year, international revenues would have totaled $140.1 million for the current year- to-date period.