Atlanta-based Crawford & Company announced its financial results for the second quarter ended June 30. Second quarter 2003 revenues before reimbursements totaled $176.3 million compared with $178.0 million in the 2002 second quarter. Second quarter 2003 net income was $6.1 million, growing from $4.9 million for the 2002 second quarter. Second quarter 2003 net income per share was $0.12 per share, up 20 percent from $0.10 in the prior-year quarter.
Operating earnings (earnings before special credit, net corporate interest and taxes) in the 2003 second quarter totaled $10.7 million compared with $8.8 million in the comparable 2002 quarter. Operating earnings in the 2003 six-month period totaled $17.1 million compared with $16.8 million in the comparable 2002 period.
U.S. revenues before reimbursements were $121.9 million in the second quarter of 2003 compared with $131.7 million in the 2002 second quarter. Revenues from the insurance company market were $62.2 million in the 2003 second quarter compared with $68.3 million in the 2002 period, reflecting a continued softening in the company’s U.S. insurance company referrals for high-frequency, low-severity claims in the current quarter. Lower medical bill auditing revenues associated with the previously reported non-renewal of a contract with a major domestic insurer contributed $2.8 million of this decline. Revenues from self-insured clients were $42.1 million in the 2003 second quarter compared with $49.1 million in the 2002 quarter, primarily reflecting declines in U.S. employment levels and associated injury rates which have contributed to a reduction in workers’ compensation claims. Class action services revenues were $17.6 million for the 2003 second quarter, compared with $14.3 million in the comparable year-ago quarter, up 23 percent due to the award of a new class action settlement in the quarter.
Second quarter 2003 international revenues grew to $54.5 million from $46.3 million for the same period in 2002. This growth is partly due to the company’s third quarter 2002 acquisition of the loss adjusting business of Robertson and Company in Australia. During the 2003 second quarter, the U.S. dollar weakened significantly against the British pound and the euro, resulting in a net exchange rate benefit in the quarter. Excluding the benefit of exchange rate fluctuations, international revenues would have been $48.8 million in the 2003 second quarter.
Total revenues before reimbursements for the year-to-date period ended June 30, 2003 were $343.6 million compared with $349.8 million in 2002. Operating earnings through June 2003 totaled $17.1 million compared with $16.8 million in 2002. Net income for the current year-to-date period totaled $9.3 million, or $0.19 per share, compared with $13.0 million, or $0.27 per share, reported in the prior year. Net income in the 2002 first quarter included a payment received from a former vendor in full settlement of a business dispute of $3.8 million, net of related income tax expense, or $0.08 per share.
U.S. revenues before reimbursements for the 2003 six-month period were $236.9 million compared with $258.3 million in 2002. International revenues before reimbursements were $106.6 million in 2003 compared with $91.5 million during 2002. Excluding the benefit of exchange rate fluctuations, international revenues would have been $96.9 million in the current year-to- date period.
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