Crawford & Company (CRDA) swung to a net profit for the quarter ended Sep. 30, 2016. The company has made a net profit of $10.94 million in the quarter, against a net loss of $0.86 million in the last year period.
Revenue during the quarter dropped 4.71 percent to $295.39 million from $309.98 million in the previous year period.
Total expenses come down
However, the adjusted EBITDA for the quarter stood at $34.68 million compared with $32.84 million in the prior year period. At the same time, adjusted EBITDA margin improved 115 basis points in the quarter to 11.74 percent from 10.59 percent in the last year period.
For financial year 2016, Crawford & Company forecasts revenue to be in the range of $1,080 million to $1,100 million. The Company projects net income to be in the range of $31 million to $34 million and expects adjusted net income to be in the range of $39 million to $42 million. It forecasts operating income to be in the range of $85 million to $90 million.
Meanwhile, income from fees and commission for the quarter declined 5.47 percent or $16.05 million to $277.29 million.
Mr. Harsha V. Agadi, chief executive officer of Crawford & Company, stated, "Our third quarter results are a clear indication that the strategic initiatives implemented beginning over a year ago are unlocking the potential that exists at Crawford as we strive to deliver more predictable financial results regardless of the market backdrop. While the environment remained challenging once again this quarter, we achieved our best performance of the year as operating earnings grew 14%, year over year, driven by 160 basis points of margin expansion. Importantly, all four of our business segments generated double digit operating margins this quarter." Mr. Agadi concluded, "While our operating earnings have expanded by 40% year to date, we believe significant untapped potential remains across our global operations."
Operating cash flow improves significantly
Crawford & Company has generated cash of $50.08 million from operating activities during the nine month period, up 136.92 percent or $28.94 million, when compared with the last year period.
The company has spent $23.20 million cash to meet investing activities during the nine month period as against cash outgo of $94.74 million in the last year period.
The company has spent $28.88 million cash to carry out financing activities during the nine month period as against cash inflow of $83.52 million in the last year period.
Cash and cash equivalents stood at $71.66 million as on Sep. 30, 2016, up 22.86 percent or $13.33 million from $58.33 million on Sep. 30, 2015.
Assets, liabilities fall
Total assets decreased 10.34 percent or $88.36 million to $765.83 million on Sep. 30, 2016. On the other hand, total liabilities were at $616.44 million as on Sep. 30, 2016, down 8.99 percent or $60.92 million from year-ago.
Return on assets stood at 1.78 percent in the quarter, up 1.63 from 0.15 percent in the last year period. Return on equity was at 7.33 percent in the quarter against a negative 0.48 percent in the last year period.
Total debt was at $214.58 million as on Sep. 30, 2016, down 17.12 percent or $44.31 million from year-ago. Shareholders equity stood at $149.39 million as on Sep. 30, 2016, down 15.51 percent or $27.43 million from year-ago. As a result, debt to equity ratio went down 3 basis points to 1.44 percent in the quarter from 1.46 percent in the last year period.
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