Crawford & Company (NYSE:CRD.B) Q3 2019 Earnings Conference Call - Final Transcript

Nov 05, 2019 • 08:30 am ET


Crawford & Company (NYSE:CRD.B) Q3 2019 Earnings Conference Call - Final Transcript


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Good morning. My name is Shelby and I will be your conference facilitator today. At this time, I would like to welcome everyone to the Crawford & Company, Third Quarter 2019's Earnings Release Conference Call. In conjunction with this call, a supplementary financial presentation is available on our website at under the Investor Relations section.

[Operator Instructions]. After the speakers' remarks, there will be a question-and-answer period. Instructions will follow at that time. [Operator Instructions]. As a reminder, ladies and gentlemen, this conference is being recorded today, Tuesday, November 5th, 2019. Now, I would like to introduce Joseph Blanco, Crawford and Company's General Counsel.

Joseph O. Blanco

Thank you. Good morning. Some of the matters to be discussed in this conference call and in the supplementary financial presentation may include forward-looking statements that involve risks and uncertainties. These statements may relate to, among other things, our expected future operating results and financial condition; our ability to grow our revenues and reduce our operating expenses; expectations regarding our anticipated contributions to our underfunded defined benefit pension plans; collectability of our build and unbilled accounts receivable; financial results from our recently completed acquisitions; our continued compliance with the financial and other covenants contained in our financing agreements; our long-term capital resource and liquidity requirements; and our ability to pay dividends in the future.

The Company's actual results achieved in future quarters could differ materially from results that may be implied from such forward-looking statements. The Company undertakes no obligation to publicly release revisions to any forward-looking statements made in this conference call to reflect events or circumstances occurring after the date of the call or to reflect the occurrence of unanticipated events.

In addition, you're reminded that our operating results for any historical period are not necessarily indicative of results to be expected for any future period. For a complete discussion regarding factors which could affect the Company's financial performance, please refer to the Company's Form 10-Q for the quarter ended September 30th, 2019, filed with the Securities and Exchange Commission, particularly the information under the headings Risk Factors and Management's Discussion and Analysis of Financial Condition and Results of Operations, as well as subsequent Company filings with the SEC.

This presentation also includes certain non-GAAP financial measures as defined under SEC rules. As required, a reconciliation is provided for those measures to the most directly comparable GAAP measures. I would now like to introduce Mr. Harsha Agadi, President and Chief Executive Officer of Crawford & Company.

Harsha, you may begin your conference.

Harsha V. Agadi

Good morning and welcome to our third quarter 2019 earnings call. Joining me today are Bruce Swain, our Chief Financial Officer and Joseph Blanco, our General Counsel. After our prepared remarks, we will open the call for your questions.

Turning to our third quarter results, we delivered GAAP revenue before reimbursements of $254.7 million. On a constant currency basis, we delivered non-GAAP revenue before reimbursements of $262 million, representing nearly 3% growth as well as 270 basis points of margin expansion, both