XML 31 R20.htm IDEA: XBRL DOCUMENT v3.22.2
Segment Information
 6 Months Ended
Jun. 30, 2022
Segment Reporting [Abstract]  
Segment Information

10. Segment Information

As of January 1, 2022, the Company has realigned its operating segments by moving to a geographic reporting structure consisting of North America Loss Adjusting, International Operations, Broadspire, and Platform Solutions. The Company's revised reportable segments are comprised of the following:

•
North America Loss Adjusting, which services the North American property and casualty market. This is comprised of the previously reported Crawford Loss Adjusting segment in the U.S. and Canada, including Global Technical Services and edjuster. The Canadian operations include all operations within that country, including those previously reported within the Crawford TPA Solutions and Crawford Platform Solutions segments.
•
International Operations, which services the global property and casualty market outside North America. This is comprised of the previously reported Crawford Loss Adjusting segment outside of North America, including Crawford Legal Services which was previously within the Crawford TPA Solutions segment. The International Operations include all operations within the respective countries, including those previously reported within the Crawford TPA Solutions and Crawford Platform Solutions segments.
•
Broadspire, which provides third party administration for workers' compensation, auto and liability, disability absence management, medical management, and accident and health to corporations, brokers and insurers in the U.S.
•
Platform Solutions, which consists of the Contractor Connection, Networks, and Subrogation service lines in the U.S. The Networks service line includes Catastrophe operations and WeGoLook.

 

Financial information for the three and six months ended June 30, 2022 and 2021 related to the Company's reportable segments, including a reconciliation from segment operating earnings to income before income taxes, the most directly comparable GAAP financial measure, is presented below:

 

 

 

Three Months Ended

 

 

Six Months Ended

 

(in thousands)

 

June 30,
2022

 

 

June 30,
2021

 

 

June 30,
2022

 

 

June 30,
2021

 

Revenues:

 

 

 

 

 

 

 

 

 

 

 

 

North America Loss Adjusting

 

$

65,775

 

 

$

56,212

 

 

$

130,213

 

 

$

112,510

 

International Operations

 

 

93,710

 

 

 

91,269

 

 

 

182,982

 

 

 

177,736

 

Broadspire

 

 

80,114

 

 

 

75,902

 

 

 

156,568

 

 

 

150,178

 

Platform Solutions

 

 

53,746

 

 

 

44,074

 

 

 

102,607

 

 

 

80,214

 

Total segment revenues before reimbursements

 

 

293,345

 

 

 

267,457

 

 

 

572,370

 

 

 

520,638

 

Reimbursements

 

 

10,306

 

 

 

9,088

 

 

 

19,070

 

 

 

18,062

 

Total revenues

 

$

303,651

 

 

$

276,545

 

 

$

591,440

 

 

$

538,700

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Segment Operating Earnings (Loss)

 

 

 

 

 

 

 

 

 

 

 

 

North America Loss Adjusting

 

$

2,695

 

 

$

3,081

 

 

$

6,831

 

 

$

7,442

 

International Operations

 

 

(707

)

 

 

2,126

 

 

 

(3,774

)

 

 

1,453

 

Broadspire

 

 

7,667

 

 

 

6,570

 

 

 

14,101

 

 

 

13,304

 

Platform Solutions

 

 

4,596

 

 

 

9,091

 

 

 

12,633

 

 

 

13,109

 

Total segment operating earnings

 

 

14,251

 

 

 

20,868

 

 

 

29,791

 

 

 

35,308

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Deduct:

 

 

 

 

 

 

 

 

 

 

 

 

Unallocated corporate and shared costs, net

 

 

(1,373

)

 

 

(1,248

)

 

 

(3,825

)

 

 

(2,662

)

Net corporate interest expense

 

 

(1,780

)

 

 

(1,213

)

 

 

(3,298

)

 

 

(2,795

)

Stock option expense

 

 

(130

)

 

 

(264

)

 

 

(336

)

 

 

(404

)

Amortization of customer-relationship intangible assets

 

 

(2,060

)

 

 

(2,750

)

 

 

(3,786

)

 

 

(5,549

)

Contingent earnout adjustments

 

 

(303

)

 

 

—

 

 

 

(2,359

)

 

 

—

 

Income before income taxes

 

$

8,605

 

 

$

15,393

 

 

$

16,187

 

 

$

23,898

 

 

Operating earnings is the primary financial performance measure used by the Company's senior management and chief operating decision maker ("CODM") to evaluate the financial performance of the Company's operating segments and make resource allocation and certain compensation decisions. The Company believes this measure is useful to investors in that it allows them to evaluate segment operating performance using the same criteria used by the Company's senior management and CODM. Operating earnings will differ from net income computed in accordance with GAAP since operating earnings represents segment earnings before certain unallocated corporate and shared costs and credits, net corporate interest expense, stock option expense, amortization of customer-relationship intangible assets, contingent earnout adjustments, income taxes, and net income or loss attributable to noncontrolling interests.

Segment operating earnings includes allocations of certain corporate and shared costs. If the Company changes its allocation methods or changes the types of costs that are allocated to its four operating segments, prior period amounts presented in the current period financial statements are adjusted to conform to the current allocation process.

Intersegment transactions are not material for any period presented. Certain of the Company’s reportable segments represent the aggregation of certain business units which represent separate operating segments.

Revenues before reimbursements by major service line in the International Operations, Broadspire and Platform Solutions segments are shown in the following table. The Company considers all North America Loss Adjusting revenues to be primarily derived from one service line.

 

 

 

Three Months Ended

 

 

Six Months Ended

 

(in thousands)

 

June 30,
2022

 

 

June 30,
2021

 

 

June 30,
2022

 

 

June 30,
2021

 

International Operations

 

 

 

 

 

 

 

 

 

 

 

 

International Loss Adjusting

 

$

86,908

 

 

$

84,657

 

 

$

169,935

 

 

$

165,302

 

Crawford Legal Services

 

 

6,802

 

 

 

6,612

 

 

 

13,047

 

 

 

12,434

 

Total Revenues before Reimbursements--International Operations

 

$

93,710

 

 

$

91,269

 

 

$

182,982

 

 

$

177,736

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Broadspire

 

 

 

 

 

 

 

 

 

 

 

 

Claims Management

 

$

40,426

 

 

$

37,551

 

 

$

79,977

 

 

$

75,702

 

Medical Management

 

 

39,688

 

 

 

38,351

 

 

 

76,591

 

 

 

74,476

 

Total Revenues before Reimbursements--Broadspire

 

$

80,114

 

 

$

75,902

 

 

$

156,568

 

 

$

150,178

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Platform Solutions

 

 

 

 

 

 

 

 

 

 

 

 

Contractor Connection

 

$

17,396

 

 

$

19,534

 

 

$

32,659

 

 

$

36,051

 

Networks

 

 

32,505

 

 

 

24,540

 

 

 

60,031

 

 

 

44,163

 

Subrogation

 

 

3,845

 

 

 

—

 

 

 

9,917

 

 

 

—

 

Total Revenues before Reimbursements--Platform Solutions

 

$

53,746

 

 

$

44,074

 

 

$

102,607

 

 

$

80,214