Company: CRD-A
Filing Date: 2025-03-03
Form Type: 10-K
Source: 0000950170-25-030894
Chunk: 63

Company: CRAWFORD & CO
Filing Date: 2025-03-03
Form: 10-K
Item: Item 1B
Chunk 63
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TEs in 2023 compared with an average of 2,022 FTEs in 2022.

Expenses Other than Reimbursements, Direct Compensation, Fringe Benefits & Non-Employee Labor

North America Loss Adjusting segment expenses other than reimbursements, direct compensation, fringe benefits, and non-employee labor increased from $57.2 million in 2022 to $65.8 million in 2023, and increased as a percent of segment revenues before reimbursements from 20.8% in 2022 to 21.7% in 2023. The increase in costs and the increase in the percent of revenues before reimbursements was due to the increased revenues and an increase in technology investments.

INTERNATIONAL OPERATIONS SEGMENT

Operating Earnings (Loss) 

Our International Operations segment reported operating earnings of $11.2 million, or 2.9% of revenues before reimbursements in 2023, as compared to an operating loss of $(12.9) million, or (3.6)% of revenues before reimbursements in 2022. This increase in operating earnings was due to increased revenues in the U.K., Europe, Asia and Latin America, and cost reductions in various international operations. The 2022 period included $4.1 million of severance expense for cost reduction actions in certain international operations. 

Excluding indirect expenses, gross profit increased from $41.1 million, or 11.5% of revenues before reimbursements in 2022, to $60.4 million, or 15.8% of revenues before reimbursements in 2023. This increase was due to increased revenues and cost reductions in various operations.

34

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

    In thousands (except percentages)

    Based on actual exchange rates
     
    Based on exchange ratesfor December 31, 2022

    Year Ended December 31,
     
    2023
     
    2022
     
    Variance
     
    2022
     
    Variance

    Revenues
     
    $382,393
     
    $357,452
     
    7.0%
     
    $391,645
     
    9.6%

    Direct expenses
     
    322,025
     
    316,371
     
    1.8%