Company: CRD-A
Filing Date: 2025-03-03
Form Type: 10-K
Source: 0000950170-25-030894
Chunk: 221

Company: CRAWFORD & CO
Filing Date: 2025-03-03
Form: 10-K
Item: Item 7
Chunk 221
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. The increase in the expense was due to the higher revenues. The decrease in the percent of revenues before reimbursements is due to the higher revenues and improved operating leverage.

PLATFORM SOLUTIONS SEGMENT

Operating Earnings

Our Platform Solutions segment recorded operating earnings of $28.5 million in 2023, or 12.7% of revenues before reimbursements, compared with operating earnings of $35.7 million in 2022, or 14.7% of revenues before reimbursements. The decrease in operating margin in 2023 was due to a decrease in revenues in our Networks service line.

Excluding indirect expenses, gross profit decreased from $56.3 million, or 23.1% of revenues before reimbursements in 2022, to $51.6 million, or 22.9% of revenues before reimbursements in 2023, as a result of the revenue decrease in our Networks service line.

38

Operating results for our Platform Solutions segment, including gross profit, are as shown in the following table:

    In thousands (except percentages)

    Year Ended December 31,
     
    2023
     
    2022
     
    Variance

    Revenues
     
    $225,459
     
    $243,711
     
    (7.5)%

    Direct expenses
     
    173,874
     
    187,420
     
    (7.2)%

    Gross profit
     
    51,585
     
    56,291
     
    (8.4)%

    Indirect expenses
     
    23,044
     
    20,545
     
    12.2%

    Total Platform Solutions Operating Earnings
     
    $28,541
     
    $35,746
     
    (20.2)%

    Gross profit margin
     
    22.9%
     
    23.1%
     
    (0.2)%

    Operating margin
     
    12.7%
     
    14.7%
     
    (2.0)%

Revenues before Reimbursements

Platform Solutions segment revenues are primarily derived from the property and casualty insurance company markets in the U.S. Revenues before reimbursements by service line were as follows:

    In thousands (except percentages)

    Year Ended December 31,