Atlanta-based Crawford & Company released financial results for the second quarter of 2002, including $178 million in revenues before reimbursements compared to $186.5 million in the second quarter of 2001.
Operating earnings in the second quarter totaled $8.8 million compared with $16.5 million in the comparable 2001 period. Net income was $4.9 million, or $0.10 per share, in the 2002 period compared with $8.8 million, or $0.18 per share, in 2001.
Second quarter 2002 net income per share was increased by $0.02 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 $0.03 for the current year-to-date period.
U.S. revenues before reimbursements were $131.7 million in the second quarter of 2002 compared with $139.2 million in the 2001 second quarter. Revenues from the insurance company market were $68.3 million in the 2002 second quarter compared with $76.4 million in the 2001 period. These results reflect a continued softening in the company’s U.S. insurance company referrals for high frequency, low severity claims and lower catastrophic claim referrals in the current quarter. Revenues from self-insured clients increased slightly during the second quarter, to $49.1 million in 2002 from $49.0 million in 2001. Class action services revenues grew to $14.3 million during the 2002 second quarter, compared with $13.7 million in the comparable 2001 period.
Second quarter 2002 international revenues were $46.3 million compared with $47.3 million for the same period in 2001. Lower revenues in the U.K., due to declining incoming case volumes, have offset higher claims referrals in the company’s Canadian operations in the current year quarter. Excluding the adverse impact of exchange rate fluctuations due to the strong U.S. dollar, international revenues would have been $47.3 million in the 2002 second quarter.
Total revenues before reimbursements for the year-to-date period ended June 30, 2002 were $349.8 million compared with $366.0 million in 2001. Operating earnings through June 2002 totaled $16.8 million compared with $31.8 million in 2001. Net income for the current year-to-date period totaled $13.0 million, or $0.27 per share, compared with $17.0 million, or $0.35 per share, reported in the prior year.
Domestic revenues before reimbursements for the 2002 six-month period were $258.3 million compared with $270.7 million in 2001. International revenues before reimbursements were $91.5 million in 2002 compared with $95.3 million during 2001. Excluding the adverse impact of exchange rate fluctuations due to the strong U.S. dollar, international revenues would have totaled $94.2 million for the current year-to-date period.
Topics USA Profit Loss
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