Crawford & Co. Q1 1995 Financial Summary
Business Context and Reporting Period
This Form 10-Q covers the three-month period ended March 31, 1995. Crawford & Co. operates as a professional services firm, reporting revenues primarily from services provided. The financial statements are unaudited and presented in thousands of dollars.
Key Financial Metrics
| Metric | Q1 1995 | Q1 1994 |
|---|---|---|
| Revenues | $148,649 | $148,792 |
| Net Income | $9,478 | $10,087 |
| Earnings Per Share | $0.27 | $0.28 |
| Operating Cash Flow | ($1,546) | $15,031 |
| Cash and Equivalents (End of Period) | $24,680 | $48,668 |
| Total Debt (Short-term + Long-term) | $18,874 | N/A |
| Current Ratio | 2.09 | N/A |
Note: Total debt for Q1 1995 is calculated as Short-term borrowings ($7,314) plus Current installments of long-term debt ($1,572) plus Long-term debt ($9,988). The filing does not provide a comparative total debt figure for Q1 1994.
Material Changes vs. Prior Period
- Revenue: Remained essentially flat, decreasing slightly by $143 (0.1%) compared to Q1 1994.
- Profitability: Net income declined by $609 (6.0%) to $9,478. This was driven by a $2,089 increase in Selling, general and administrative expenses, partially offset by a $1,224 decrease in the cost of services provided.
- Cash Flow: Operating cash flow turned negative at ($1,546), a significant deterioration from the $15,031 positive flow in Q1 1994. This was primarily due to a $16,245 outflow for prepaid expenses and other assets and a $9,190 reduction in accounts payable and accrued liabilities.
- Liquidity: Cash and cash equivalents decreased by $14,288 during the quarter, dropping from $38,968 to $24,680.
- Capital Structure: The company repurchased $3,512 of common stock and paid $4,895 in dividends during the quarter.
Outlook, Risks, and Unusual Items
The filing text provided does not contain specific management commentary, forward-looking guidance, or a discussion of risks and contingencies beyond the standard financial data. No unusual items were explicitly detailed in the provided text, though the significant increase in prepaid expenses and the stock repurchase program represent notable cash outflows.
Investor Verification Checklist
- Verify the nature of the $16,245 increase in "Prepaid expenses and other assets" which drove the negative operating cash flow.
- Confirm the sustainability of the $3,512 stock repurchase program given the decline in operating cash generation.
- Review the allowance for doubtful accounts, which increased to $10,452, to assess credit risk exposure.
- Monitor the trend in Selling, general and administrative expenses, which rose significantly despite flat revenues.