Crawford & Company, a provider of claims management solutions, has released its Q3 results which show that net income has more than doubled to $24.4 million, compared with $11.0 million in the same period last year.
However, on a non-GAAP basis, the company’s net income totalled $15.2 million in Q3, compared with $11.9 mn Q3 2019.
The company also announced the revenues before reimbursements came to a total of $253.1 million, compared with $254.7 million for Q3 last year.
Crawford estimates that COVID-19 negatively impacted its revenues in the range of $21.0 to $25.0 million for the three months ended September 30, 2020, whilst negatively impacting its revenues in the range of $46.0 to $54.0 million for the nine months ended September 30, 2020.
It’s expected that the ongoing global economic slowdown resulting from COVID-19 could have a material impact to its results of operations, financial condition and cash flow in one or more future quarters.
Rohit Verma, chief executive officer of Crawford & Company, stated: “Crawford delivered strong third quarter 2020 results that grew sequentially from the second quarter and exceeded third quarter 2019 results.
“Our results were driven by the strength of our core business and further propelled by the surge in weather-related activity in the U.S. Importantly, we expanded profitability, driving non-GAAP operating earnings to $28.2 million during the quarter.
“Additionally, we continue to see traction from our large-scale clients and momentum remains strong, winning over $22.5 million of new and enhanced business in the quarter. Our financial position remains very healthy, with operating cash flow up 35% over the prior year-to-date period and net debt at the lowest level since 2013.
“As we enter the fourth quarter, we remain focused on maintaining our market leadership position through a culture of innovation and unparalleled solutions. Our commitment to our people and service excellence to clients lead our priorities as we carry out our purpose of restoring and enhancing lives, businesses and communities.
“As a result, we are confident in our financial strength and our ability to deliver superior results for our shareholders over the long term.”
