Company: CRD-A
Filing Date: 2025-03-03
Form Type: 10-K
Source: 0000950170-25-030894
Chunk: 39

Company: CRAWFORD & CO
Filing Date: 2025-03-03
Form: 10-K
Item: Item 1B
Chunk 39
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 primarily due to a $36.2 million increase in revenues and improved staff utilization. Excluding indirect expenses, gross profit increased from $60.4 million or 15.8% of revenues before reimbursements in 2023, to $77.5 million, or 18.5% of revenues before reimbursements in 2024.

In the Broadspire segment, operating earnings increased from $41.9 million, or 11.8% of revenues before reimbursements in 2023, to $52.4 million, or 13.5% of revenues before reimbursements in 2024, primarily due to a $32.4 million increase in revenues. Excluding indirect expenses, gross profit increased from $88.6 million, or 24.9% of revenues before reimbursements in 2023, to $97.5 million, or 25.1% of revenues before reimbursements in 2024.

In the Platform Solutions segment, operating earnings decreased from $28.5 million, or 12.7% of revenues before reimbursements in 2023, to $11.2 million, or 6.4% of revenues before reimbursements in 2024, primarily due to a ($48.0) million decrease in revenues from staff argumentation within the Networks service line. Excluding indirect expenses, gross profit decreased from $51.6 million, or 22.9% of revenues before reimbursements in 2023, to $34.9 million, or 20.1% of revenues before reimbursements in 2024.

Cost of services provided, before reimbursements, increased $16.9 million, or 1.9% for 2024 compared with 2023. This increase was primarily due to an increase in compensation expense, within our North America Loss Adjusting, International Operations and Broadspire segments, partially offset by decreases in compensation expense in our Platforms Solutions segment. This increase was consistent with the increase in revenues of $25.4 million, or 2.0%.

Selling, general, and administrative ("SG&A") expenses increased $13.2 million, or 4.6%, in 2024, as compared with 2023. This increase was primarily due to increases in professional fees and IT costs, partially offset by the benefit from contingent earnout adjustments. 

Contingent earnout adjustments represent the fair value adjustment of earnout liabilities arising from recent acquisitions. This benefit totaled $1.1 million for