Crawford & Company, a provider of claims management solutions, saw lower overall claims volume, due in part by a significant drop in global catastrophe-related insured losses, result in lower than expected revenues for fourth quarter 2019.
Harsha V. Agadi, president and Chief Executive Officer of the firm, also highlighted the effect of delays in the onboarding of new client wins on Q4 results.
“As we continue to experience weather-related claims volatility, predicting the quarter-to-quarter performance of the business is somewhat more difficult, but we remain confident in our long-term outlook,” he added.
To a significant extent, Crawford’s business depends on claim volumes. The firm has outlined that it cannot predict the future trend of claim volumes for a number of reasons, including the fact that the frequency and severity of weather-related claims and the occurrence of natural and man-made disasters, are generally not subject to accurate forecasting.
The company also announced it expects to record a non-cash goodwill impairment charge of between $13 million and $17 million in the 2019 fourth quarter related to its Crawford Claims Solutions segment.
In addition, the company is evaluating the recoverability of certain deferred tax assets.
This evaluation is expected to result in the recognition of a non-cash income tax valuation adjustment of between $2 million and $4 million.
Q4 revenues before reimbursements are expected to be in the range of $245 million to $249 million.
Net loss attributable to shareholders is expected to be in the range of $10 million to $12 million.
Consolidated adjusted operating earnings, on a non-GAAP basis, is expected to be in the range of $16.0 million to $18.0 million
