Printer Friendly


 ATLANTA, Oct. 18 /PRNewswire/ -- F.L. Minix, chairman and chief executive officer, announced today that Crawford & Company's (NYSE: CRDA CRDB) third quarter 1993 pretax income increased to $18.7 million, from $18.2 million reported for the comparable quarter of 1992, in spite of a decline in revenues.
 Minix stated that the improvement in pretax income was erased by substantially higher income taxes resulting from the Clinton tax legislation, as well as from a higher effective tax on foreign operations. The year-to-date effect of higher income taxes reduced third quarter 1993 earnings by $1.2 million ($0.03 per share). Consequently, Minix said, net income for the third quarter 1993 totaled $10.2 million ($0.28 per share), a decline of 7.3 percent from the $11 million ($0.31 per share) reported for the third quarter of 1992.
 Minix stated that revenues for the third quarter of 1993 totaled $144.3 million, 3.8 percent below the year earlier period. Revenues from HealthCare Management Services achieved a modest gain over the previous year, while Claims Administration revenues from insurance companies and self-insured corporations declined by 4 percent, reflecting lower claim frequency and competitive pricing pressures which still characterize the market environment.
 Minix noted that lower third quarter 1993 catastrophe revenues contributed to the revenue decline, since hurricane revenues of $2 million were reported in the third quarter of 1992. The fourth quarter of 1992 also benefited from hurricane revenues totaling approximately $17 million.
 Minix also stated that selling, general and administrative expenses for the third quarter of 1993 reflected reduced incentive compensation accruals, as well as a $1.1 million partial recovery of bankrupt accounts receivable written off during the fourth quarter of 1992.
 For the first nine months of 1993, revenues totaled $438.7 million, up 1 percent over the same period of 1992. Pretax income increased to $50.2 million from $48.6 million, but after higher income taxes, 1993 income before accounting changes was $29.1 million ($.81 per share) compared with $29.3 million ($0.82 per share) for the previous year.
 Further information regarding the company's operating results for the three-month and nine-month periods ended Sept. 30 is shown on the following comparative statements of income.
 Crawford & Company is a diversified service firm which provides claims services, risk, management services, health care management and risk control services, as well as risk management information systems, to insurance companies, corporations and self-insured entities. Crawford & Company is publicly traded on the New York Stock Exchange under the symbols CRDA and CRDB.
 Comparative Statements of Income
 (In thousands of dollars, except share and per share data)
 3 mos. ended Sept. 30 1993 1992 Pct. chg.
 Revenues $144,308 $149,973 (3.8)
 Costs and expenses:
 Cost of services 99,232 101,380 (2.1)
 Selling, general and admin. 26,342 30,406 (13.4)
 Total costs and expenses 125,574 131,786 (4.7)
 Pretax income 18,734 18,187 3.0
 Income taxes 8,580 7,230 18.7
 Net income $ 10,154 $ 10,957 (7.3)
 Earnings per share $ 0.28 $ 0.31 (9.7)
 Wtd. avg. no. of Class A and
 Class B common shares outst. 36,008,118 35,869,593
 9 mos. ended Sept. 30 1993 1992 Pct. chg.
 Revenues $438,684 $434,315 1.0
 Costs and expenses:
 Cost of services 301,200 300,698 0.2
 Selling, general and admin. 87,296 85,047 2.6
 Total costs and expenses 388,496 385,745 0.7
 Pretax income 50,188 48,570 3.3
 Income taxes 21,080 19,280 9.3
 Income before cumulative effects
 of accounting changes 29,108 29,290 (0.6)
 Cumulative effects of
 accounting changes (see note) (2,575) ---
 Net income $ 26,533 $ 29,290 (9.4)
 Per share amounts:
 Before cumulative effects of
 accounting changes $ 0.81 $ 0.82
 Cumulative effects of
 accounting changes (see note) $ (0.07) $ 0.00
 Earnings per share 0.74 0.82 (9.8)
 Wtd. avg. no. of Class A and
 Class B common shares outst. 35,974,073 35,819,546
 NOTE: Effective Jan. 1, 1993, the company adopted new accounting standards for postretirement benefits other than pensions, other postemployment benefits, and income taxes, by reflecting the cumulative effects of the changes in income upon adoption. The cumulative effects (to Jan 1, 1993) of these accounting changes are detailed below (in 000's):
 Post retirement benefits other than pensions,
 net of related income taxes of $1,890 $ 2,835
 Other postemployment benefits, net of
 related income taxes of $160 $ 240
 Income taxes $ (500)
 Total $ 2,575
 -0- 10/18/93
 /CONTACT: Donald R. Chapman of Crawford & Company, 404-847-4412/

CO: Crawford & Company ST: Georgia IN: INS SU: ERN

BR-RA -- AT006 -- 3269 10/18/93 10:12 EDT
COPYRIGHT 1993 PR Newswire Association LLC
No portion of this article can be reproduced without the express written permission from the copyright holder.
Copyright 1993 Gale, Cengage Learning. All rights reserved.

Article Details
Printer friendly Cite/link Email Feedback
Publication:PR Newswire
Date:Oct 18, 1993

Terms of use | Copyright © 2017 Farlex, Inc. | Feedback | For webmasters