Crawford & Company (CRDA) swung to a net profit for the quarter ended Dec. 31, 2016. The company has made a net profit of $7.76 million in the quarter, against a net loss of $51.67 million in the last year period.
Revenue during the quarter went down marginally by 2.29 percent to $293.62 million from $300.50 million in the previous year period.
Total expenses come down
Operating income for the quarter was $13.94 million, compared with an operating loss of $53.53 million in the previous year period.
However, the adjusted EBITDA for the quarter stood at $29.10 million compared with $28.44 million in the prior year period. At the same time, adjusted EBITDA margin improved 45 basis points in the quarter to 9.91 percent from 9.46 percent in the last year period.
For fiscal year 2017, Crawford & Company projects revenue to be in the range of $1,100 million to $1,130 million. The company expects net income to be in the range of $34 million to $39 million and forecasts adjusted net income to be in the range of $43 million to $48 million. It projects operating income to be in the range of $90 million to $100 million. After expected restructuring and special charges, net income attributable to shareholders of Crawford & Company between $0.63 to $0.73 diluted earnings per CRD-A share, and $0.55 to $0.65 diluted earnings per CRD-B share. Before expected restructuring and special charges, net income attributable to shareholders of Crawford & Company on a non-GAAP basis between 0.78 to $0.88 diluted earnings per CRD-A share, and $0.71 to $0.81 diluted earnings per CRD-B share.
Mr. Harsha V. Agadi, chief executive officer of Crawford & Company, stated, "Our vigilant focus on expense reduction positioned Crawford to deliver another strong quarter of operating margin expansion and earnings growth despite a difficult revenue environment. For the full year, this margin expansion contributed to 31% consolidated operating earnings growth and the related diluted CRD-A and CRD-B earnings per share growth of 49% and 58%, respectively, before restructuring and special charges. Additionally, the Company generated record cash flows from operating activities of $98.9 million during 2016. We will build on this momentum, and our focus will remain on generating organic growth while maintaining our cost vigilance. My team and I continue to be energized by the opportunity we see at Crawford, and we strive to unleash the Company's global potential and transform our business for the future."
Operating cash flow improves significantly
Crawford & Company has generated cash of $98.86 million from operating activities during the year, up 60.35 percent or $37.21 million, when compared with the last year.
The company has spent $32.97 million cash to meet investing activities during the year as against cash outgo of $101.18 million in the last year.
The company has spent $55.15 million cash to carry out financing activities during the year as against cash inflow of $67.89 million in the last year period.
Cash and cash equivalents stood at $81.57 million as on Dec. 31, 2016, up 7.23 percent or $5.50 million from $76.07 million on Dec. 31, 2015.
Assets, liabilities fall
Total assets decreased 6.07 percent or $47.55 million to $735.86 million on Dec. 31, 2016. On the other hand, total liabilities were at $576.60 million as on Dec. 31, 2016, down 12.51 percent or $82.46 million from year-ago.
Return on assets was at 1.38 percent in the quarter against a negative 6.36 percent in the last year period. Return on equity was at 4.87 percent in the quarter against a negative 41.55 percent in the last year period.
Total debt was at $188.01 million as on Dec. 31, 2016, down 23.97 percent or $59.27 million from year-ago. Shareholders equity stood at $159.26 million as on Dec. 31, 2016, up 28.08 percent or $34.91 million from year-ago. As a result, debt to equity ratio went down 81 basis points to 1.18 percent in the quarter from 1.99 percent in the last year period.
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