Crawford & Co. Q1 1996 Financial Summary
Business Context and Reporting Period
This Form 10-Q covers the three-month period ended March 31, 1996, for Crawford & Co. The financial statements are unaudited and presented in thousands of dollars.
Key Financial Metrics
- Revenue: $161,563 (Year-to-Date 1996)
- Net Income: $10,431
- Earnings Per Share: $0.30
- Operating Cash Flow: $23,084
- Cash and Cash Equivalents: $50,841 (as of March 31, 1996)
- Total Debt: $19,205 (Short-term borrowings of $10,300 plus long-term debt of $8,905)
- Net Profit Margin: Approximately 6.5%
Material Changes vs. Prior Period
- Revenue Growth: Revenues increased 8.7% to $161,563 from $148,649 in the same period in 1995.
- Profitability: Net income rose 10.1% to $10,431 from $9,478. Income before taxes increased to $17,478 from $15,884.
- Cash Flow Improvement: Operating cash flow turned significantly positive at $23,084, compared to a negative $1,546 in the prior year period. This was driven by a $12,232 increase in accounts payable and accrued liabilities and a $3,477 change in prepaid/accrued taxes.
- Liquidity: Cash and cash equivalents increased by $10,039 during the quarter, rising from $40,802 to $50,841.
- Share Count: Weighted average shares outstanding decreased to 34,310,476 from 34,930,601, reflecting stock repurchases of $6,644.
Outlook, Risks, and Unusual Items
The filing text does not provide specific forward-looking guidance, management commentary on future risks, or details on contingencies beyond the standard financial presentation. No unusual items were explicitly highlighted in the provided text, though the significant swing in operating cash flow is attributed to changes in working capital components such as unbilled revenues and accrued liabilities.
Investor Verification Checklist
- Verify the sustainability of the $12.2 million increase in accounts payable and accrued liabilities driving operating cash flow.
- Confirm the impact of the $6.6 million stock repurchase program on future capital allocation.
- Review the allowance for doubtful accounts, which increased slightly to $10,344 against receivables of $111,755.
- Assess the trend in unbilled revenues, which increased by $4.5 million, indicating potential future revenue recognition.