Q4 2020 Crawford & Co Earnings Call
Good morning, My name is Sharon and I will be your conference facilitator today at.
And at this time I would like to welcome everyone to the Crawford and company fourth quarter, 2020 earnings release conference call in conjunction with this call a supplementary financial presentation is available on our website at www Dot Crocco Dot com under the Investor Relations section on the line have been placed on.
Mute to prevent any background noise. After the Speakers' remarks, there'll be a question and answer period instructions will follow at that time should anyone need assistance at any time. During this conference. Please press Star then zero and an operator will assist you as a reminder, ladies and gentlemen. This conference is being recorded today Friday March 5th 2021.
Some of the matters to be discussed in this conference call and and the supplementary financial presentation may include forward looking statements that involve risks and uncertainties. These statements may relate to among other things the impact of COVID-19 are expected future operating results and financial condition, our ability to grow our revenues and reduce our operating expenses.
Expectations regarding our anticipated contributions to our underfunded defined benefit pension plans collectability of our billed and Unbilled accounts receivable financial results from our recently.
And he said acquisitions, our continued compliance with the financial and other covenants contained in our financing financing agreements, our long term capital and resource and liquidity requirements and our ability to pay dividends and the future. The company's actual results achieved in future quarters could differ materially from results that maybe implied by such forward looking statements the company.
Undertakes no obligation to publicly release revisions to any forward looking statements made in this conference call true effect reflect events or circumstances occurring after the date of the call or to reflect the occurrence of unanticipated events and.
And you are reminded that operating results for any historical period are not necessarily indicative of results to be expected for any future period.
For a complete discussion regarding factors, which could affect the company's financial performance. Please refer to the company's form and Kate for the quarter ended December 31, 2020 filed with the Securities and Exchange Commission, particularly the information under the headings risk factors and management's discussion and analysis and names.
And the condition and results of operations as well as subsequent company filings with the SEC. This presentation also incur.
Include certain non-GAAP financial measures as defined under the channel as required a reconciliation is provided for those measures to those most directly comparable GAAP measures.
I would now like to introduce and its really Irma Chief Executive Officer of Crawford and company you May begin your conference.
Thank you so much Sharon good morning, and welcome to our fourth quarter and full year 2020 earnings call. Joining me today is Bruce Swain, our Chief Financial Officer, Joseph Blanco, Our President and Tammy Stevenson, Our general counsel and after our prepared remarks, we will open the call for your questions.
First and foremost our thoughts go out to everyone impacted by winter Storm Marie and Terry.
Book tragedy, and the middle of a pandemic.
This was undoubtedly a surprise for everyone and we are extremely proud of how our team has responded to this unprecedented event. We currently have close to 1000 employees contractors and seasonal workers mobilized for it.
2020 market unit resilience tenacity and innovation over.
Over the last year, we have seen the world transform and demonstrate a phenomenal ability to adapt during a period of extreme adversity and.
Crawford, we moved quickly to acclimate to this rapidly changing environment, we shifted to working from home ramped our remote claims handling capabilities helped our clients adopt self service technologies and continue to introduce new solutions to meet the unique challenges of a world and locked down.
In many ways. The COVID-19 pandemic has highlighted profit strength it.
It has pushed us to accelerate our innovation, but also think differently as we swiftly pivoted to address the demands of a world that changed overnight.
At the same time, it reinforced that our purpose driven approach and prioritizing the safety and well being of our people is the bedrock of our resilient performance.
Along those line, we introduced new and enhanced business solutions that have specifically targeted the unique challenges of the pandemic.
These have included advancements do we go look.
But expansion of our contractor program specialty services to address Covid related workers compensation claims event cancellation claims and business interruption claims.
These solutions are low dust to thrive amid a rapidly changing environment wireless establishing crawford as an innovator within the marketplace.
Turning to our financial results. We ended the year strong delivering full year 2020 results that continued to exceed expectations driven by the strength of our core business and most importantly, the perseverance of our employees.
At the same time, we strengthened our balance sheet by reducing our net debt to $69 million at year and its lowest since 2013.
For the year, we reported better than expected GAAP revenues before reimbursement of $982 million or GAAP GAAP net income attributable to shareholders was $28 million and our GAAP EPS was <unk> 54 cents for CRD, a and 52 cents for CRD B additional.
Additionally, we generated $93 million and operating cash flow during 2020, the highest since 2016.
On a non-GAAP basis, we reported full year revenues before reimbursement of $988 million operating.
Earnings were $73 million for the full year, 2020 and adjusted EBITDA was $106 million or 11% of revenues in 2020.
As mentioned in prior quarters, our business is affected by the seasonality and weather driven factors.
As such we tend to see benign weather in the first and fourth quarters and higher claims volume and the second and third quarter given the summer summer storm season.
Although the nature of our operations means and whether it will remain a driver of our results. We continue to promote the growth of non weather related business and our portfolio.
According to the Aon Global Cat recap, we saw a number of U S cat events during the fourth quarter.
This resulted in about $16 billion and economic losses, with an estimate of $12 billion and insured losses.
During the fourth quarter, we worked through the inventories from the August and September U S cat events and saw increased claims volume from storms and UK and Australia.
Total revenue from weather surge events was approximately $131 million for the full year, 2020 up from $83 million in 2019, bolstering <unk> 2020 results.
From an economic standpoint.
Fourth quarter global business activity generally increase from prior quarters, but has not yet recovered to pre COVID-19 levels.
While COVID-19 continues to impact our Tpa business claims volume is seeing sequential monthly improvement.
This was aided by an uptake and COVID-19 claims during December. Additionally, we remain engaged and business interruption claims and key markets, particularly the U K.
Let's turn our attention to the global service lines now.
Crawford claims solutions saw $38 million of additional revenue from two of the top five U S insurance carriers and 2020.
We also saw a 20% improvement and case and take and the fourth quarter compared to the prior year quarter, driven by improved client uptake of wiggle low.
In fact, we saw the highest ever look volume and 2020, marking a 15% increase over 2019 for Regal book.
True to our vision, we continue to re imagine how we manage claims simplifying and streamlining the process.
And fourth quarter example of this was the launch of new digital solutions across all our operations and the addition of video functionality to Hugo look to further enhance the remote adjusting capabilities of our self service app.
And Crawford specialty solutions.
We continue.
Continued traction from new carrier clients and the U S. A line contractor connection to deliver its strongest second quarter or second half in recent history.
Fourth quarter, 2020 case volume was 11% higher than the prior year period, and average daily assignment levels and the fourth quarter of 2020, but 4% higher than 2019.
Our global technical services business saw notable market activity as we continued our business development efforts.
Additionally, our GTS business is positioned to continue benefiting from business interruption claims we remain focused on identifying international opportunities to enhance our GTS business and we are pleased with the number of strategic Gtsi ours, we have made in the U S and internationally.
And our Tpa business U S client retention for full year 2020 was 96%.
Claims volume is also seeing sequential monthly improvements.
And while claims volume continued to be down compared to June 2019, we did see improvement and the month of December which was largely driven by disability and COVID-19 claims and the U S.
In 2020, we received over 19000, and COVID-19 claims and the U S alone.
85% of which were workers' compensation and lost time claims.
Our medical management services show activities still trending below pre COVID-19 levels due to a delay and non essential medical services. Despite these challenges this business remains a meaningful contributor to our top and bottom line.
We expect it to return to normal levels once economic activity resumes.
As you likely saw we recently announced a new operating model. This reflects the strategic evolution of our business to re imagine the claims ecosystem enhance client service and drive clarity on execution of revenue and profit expansion initiatives.
The new structure simplified the business by realigning Crawford to three key businesses.
Loss, adjusting third party administration and platform solutions and positions the company to lead the industry and Ono in innovation and service quality and expertise.
Loss adjusting services, the global property and casualty carrier market.
By combining our volume and large and complex services into one loss adjusting unit, we create a one stop shop for the full spectrum of loss adjusting needful carriers of all sizes MGA and the Lloyds syndicates.
Our team approach loss adjusting gifts Crawford and unprecedented span of expertise and resources and allows us to provide cost effective solutions to our clients.
This unit, but service claims of all sizes from really small to very large, allowing us to become simpler to access for our customers seeking loss adjusting services of any level and any expertise.
Our strategy for loss adjusting is to drive improved margin through efficiency on the volume claim side, while growing by investing and the expertise on the large and complex line side.
Moving to the Tpa business, our focus will be and building intelligent and end to end claims solutions, which can be embedded seamlessly into our clients' processes.
This business provides third party administration services to customers, including corporations municipalities, Mga's captives and small to mid sized carriers.
Our focus here will be to further improve margin through digitization and scaling through organic and inorganic strategies.
This new structure will allow us to specialize our approach to local markets and transcend boarders for our global clients.
Our platform solution business is focused on creating alternatives to traditional loss adjusted.
This unit is aimed at attracting carriers of all sizes MGH and the Lloyds syndicates.
While exploring implementing and executing on solutions that re imagine the loss adjusting ecosystem.
Platform solutions consists of contractor connection and network services, such as Cat response, we go look and our newly formed profit inspection services.
We believe business and this segment have compelling transaction and economics and considerable growth potential.
Focus for this segment will be continued innovation and scaling and we expect it to be a major top and bottom line contributor in the coming years.
Our new organization design also reflects our thoughtful approach to succession planning as part of this change we have created several new regional leadership roles that have been filled through internal candidates.
This is a strong demonstration of the depth of talent and experience within our teams. In addition to global business leadership changes the new reporting structure of our international country President has been realigned under Joseph Blanco and this allows us to flattened the structure and reduce layers between strategy and execution, while creating a more impactful cultural evolution.
Crawford's emphasis on our people and delivering service excellence to our clients remains at the forefront of our priorities.
And our investment in new technologies and service capabilities has enabled us to sustain or exceed pre pandemic client service delivery levels.
Whether we are thrilled to announce we.
And at the fourth quarter with a total NPS of 45.
As a reminder, any score above 30 is considered strong for our industry.
Moving surveyed over 70% of our top line across all geographies, we collected a record number of 955 client responses through the quarter, marking a 45% increase in scores collected.
Over the prior year.
We will continue to reference our NPS as part of our standard operation to further improve client service.
We have entered 2021 with a robust financial position.
Operating with the liquidity necessary to respond and adapt to your new economic reality and the evolving client demands that it brings.
As of December 31, our net funded debt to adjusted EBITDA was 111 times and operating cash flow increased 24% over the last year to $93 million.
Based on our strong financial position and liquidity on February 11, the board increased the quarterly dividend to <unk> <unk> per share for both CRD, a and CRD b and increase of 20% per share from the prior quarter.
Crawford has paid cash dividends per share of <unk> 19 for CRD, a and <unk> 17 cents for CRD, b, providing a meaningful yield to shareholders and 2020.
We were also pleased to announce the reinstatement of our share repurchase program as of January 'twenty, one 2020, one which remains an important component of our capital allocation strategy.
As we navigate 2021, we remain focused on bolstering our cash generation capability, while delivering value to our shareholders.
Our strong earnings and balance sheet enable us to more confidently make long term investments.
Allowing us to further extend our global footprint and recent acquisitions and the launch of new innovative solutions.
As a reminder, in the fourth quarter, we welcomed Crawford Carwile, which established Crawford as the largest loss adjusting company in Latin America.
We also welcomed HBA group, which adds to our Tpa solutions segment and in Australia, and the larger Asia region.
We continue to expand differentiation through digital collaboration and data insights.
As part of this we recently announced the launch of our Serbia, which will support the digital transformation of property claims.
This cutting edge platform was designed to improve efficiency accuracy and consistency and the estimating process and is just one of the many capabilities that will position us as the industry leader in digital transformation.
On that note I would like to turn the call over to Joseph Blanco Joseph.
Thank you rod throughout the pandemic, we and Crawford remained unified by our purpose, which enabled us to transcend the trials and tribulations of 2020, we are extremely thankful to all of our employees and their.
Their perseverance and dedication to delivering on our client commitments that drove our success in 2020.
The global COVID-19, pandemic presented a unique opportunity to demonstrate our commitment to the health and safety of our workforce at.
At the outset of the pandemic, we immediately formed a global incident response team transitioned all nonessential staff to work from home procured PPE for those roles deemed essential workers adopted safety protocols for field employees and delivered weekly health and safety updates to our global workforce.
Additionally, we modified our sick leave policies to support the health of all of our employees established physical and mental health and wellness programs and launch the parent support group.
As a key component to our success, we remain committed to protecting the safety and well being of all of our employees, while promoting a culture, where reflective of our restore values of respect empowerment sustainability training, one Crawford recognition and entrepreneurial spirit.
This is exemplified in the launch of our office of inclusion and diversity and early 2020 and the subsequent formation of a global diversity Council to work with our executive and country leadership teams to enhance our inclusion and diversity policies and practices.
Two key accomplishments for 2020, we're delivering unconscious bias training to our executive leadership team, our managers and our employees and launching two employee resource groups and the United States.
Additionally, in 2020, we conducted and employee pulse survey as well as a series of surveys throughout the year to help us manage our COVID-19 response.
Our overall response rate was 82% up from 76% in December of 2019, and favorable response rates increased across all categories of questions.
And we execute the way we lead the way we manage the way, we see ourselves and the way we work together.
We continue to look for opportunities across our enterprise to become more socially responsible and are increasingly integrating ESG best practices into our operations with that I will turn the call over to Bruce to review, our fourth quarter and full year results in more detail.
Thank you Joseph company wide revenues before reimbursements and the 2024th quarter were 257 4 million up four 1% over the $247 2 million and the prior year's fourth quarter on a non-GAAP basis, excluding the benefit of foreign exchange. The company saw revenues of 204.
$54 million.
On a non-GAAP basis net income attributable to shareholders was $12 2 million, resulting in fourth quarter 2020 diluted EPS of <unk> 23 for both <unk> and CRD b as compared to 2019 diluted EPS of <unk> 15 cents for CRD, a and <unk> 13 cents for CRD B.
The company's non-GAAP operating earnings totaled $18 8 million and the 2024th quarter or seven 4% of revenues compared with $16 7 million or six 8% of revenues and the prior year period.
Consolidated adjusted EBITDA was $27 9 million and the 2024th quarter or 11% of revenues compared to 200 compared to $27 5 million or 11, 1% of revenues and the 2019 quarter.
I will now review the fourth quarter performance of each of our segments, who all enjoyed solid improvements in operating earnings and the quarter.
Crawford claims solutions revenue totaled $99 million, increasing 17, 5% from $84 3 million reported in last year's quarter absent foreign exchange rate benefits of approximately $1 9 million fourth quarter 2020 revenues would have been $97 1 million.
The segment reported operating earnings of $8 million and the 2024th quarter were eight 1% of revenues more than doubling the $3 6 million from four 2% of revenues and the prior year quarter.
Crawford specialty solutions revenues were $64 3 million and the 2024th quarter down from $65 9 million and the prior year quarter.
Absent foreign exchange rate benefits of 1 million revenues would have been $63 3 million for the quarter.
Operating earnings and Crawford specialty solutions totaled $14 2 million.
Or 22, 1% of revenues and the 22020.
Fourth quarter, increasing over operating earnings of $11 2 million or 17% of revenues and the 2019 quarter.
Revenues for Crawford Tpa solutions were $94 1 million and into 2024th quarter.
Decreasing from $97 million and the 2019 period.
Absent foreign exchange rate benefits of 600004th quarter 2020 revenues would have been $93 6 million.
Crawford Tpa solutions operating earnings were $7 6 million during the fourth quarter of 2020 compared to last year's fourth quarter operating earnings of $6 1 million.
The operating margin and this segment was eight 1% and the 2020 quarter and six 3% and the 2019 quarter.
During the 2024th quarter, the company realized a $4 8 million benefit to operating earnings from the Canada emergency wage subsidy.
For the full year this benefit totaled $13 8 million.
Unallocated corporate costs were $11 $3 million and the fourth quarter of 2020 compared to cost of $4 1 million and the same period of 2019.
This increase was driven by higher self insurance expense and incentive compensation and professional fees, partially offset by benefits from the Canada emergency wage subsidy.
The company recognized net restructuring cost of two 4 million and the fourth quarter, consisting of severance asset impairment and lease termination cost of $6 2 million, partially offset by one time gains of $3 8 million and the quarter.
Crawford recognized a noncash goodwill impairment and the 2021st quarter.
The initial income tax benefit related to the impairment was normalized through our effective tax rate as we went through the year, resulting in a lower full year income tax benefit during.
During the 2024th quarter the impact of this treatment decrease the initial income tax benefit by 900000 or <unk> <unk> per share.
As disclosed last quarter and October 2020, the company acquired most of the remaining 85% equity interest and Crawford Carvallo and its subsidiaries.
The purchase price includes an initial lump sum payment of $11 6 million and a maximum of $11 7 million payable over the next six years based on achieving certain EBITDA performance goals.
Also as previously disclosed and November 2020, the company acquired a 100% of HPA group in Australia.
Purchase price includes an initial lump sum payment of $4 1 million net of a working capital adjustment.
And a maximum $3 2 million payable over the next four years based on achieving certain revenue and EBITDA performance goals.
We estimate that COVID-19 negatively impacted our revenues and the range of $45 million to $55 million and 2000 and 'twenty as compared to 2019.
We expect the ongoing global economic slowdown from COVID-19 could have a material impact to our results of operations financial condition, and cash flows and one or more future quarters absence, the absent the occurrence of weather surge events or new client growth.
The company's cash and cash equivalent position at December 31, 2020 totaled $44 7 million compared to $51 8 million at the 2019 year and.
The company made $9 million and contributions to which U S defined benefit pension plan, and 500000 to which U K plans for 2020.
Compared with no contributions to the U S plan and 700000 to the UK plans and 2019.
The company continued to strengthen its balance sheet during 2020 with total debt outstanding as of December 31, 2020, totaling $113 6 million compared with $177 million at the 2019 year and.
Net debt stood at $68 9 million as of December 31, 2020, marking the lowest level since 2013, while our leverage ratio under our credit agreement closed at 1.11 times. Additionally, our pension liability was down to $53 9 million at the end of the fourth quarter, marking a multiyear low.
We're also pleased with our operating cash flow for 2020 cash provide provided by operations totaled $93 2 million for 2020 compared to $75 2 million provided by operations and the prior year period.
The increase in cash provided by operating activities was primarily due to deferred payroll tax payments and the U S. Under the cares Act and a benefit from the Canada emergency wage subsidy.
Free cash flow increased by $1 7 million compared with 2019, reflecting higher operating cash flows partially offset by increased software development and capital expenditures and 2020 compared with 2019, our free cash flow generation remains a top priority for the company.
During 2020, the company repurchased over 155000 shares of CRD, a and 161000 shares of CRD B at an average cost of $8 42 per share.
The total cost of share repurchases during 2020 was $2 7 million.
The company did not repurchase any shares during the 2024th quarter. However, effective January one 2021. The company has restarted its share repurchase program as we continue to believe that our shares trade significantly below their intrinsic value.
Consistent with the practice that we began in 2020 the company has chosen not to provide guidance going forward.
With that I would like to turn the call back to ROE It for concluding remarks.
Thank you Bruce as we embark on 2021, we are confident and our outlook as we reap the benefits of our success from new and enhanced client wins.
Our strategy enables our growth plans and envision future as we continue to deliver innovative and market leading solutions.
Above all we remain committed to protecting the health and safety of our employees.
While continuing to provide best in class service to our clients. Despite the current global environment.
In 2020, we responded adapted and innovated and delivered.
In 2021, we will continue to progress from a position of strength, finding new ways to excel for our clients, while delivering further value to our shareholders.
We look forward to the journey ahead, as we fulfill our purpose of restoring and enhancing lives businesses and communities.
Thank you for your time today operator, please open the call for questions.
At this time, if you would like to ask a question. Please press Star then the number one on your telephone keypad to withdraw your question press the pound key if youre using a speakerphone. Please pick up the handset before asking your question, we'll pause for a moment to compile the Q&A roster.
First question comes from Mark Hughes.
Please go ahead.
Yes, Thank you and good morning.
Good morning, Mark.
Bruce when we think about that.
Cash flow for 'twenty, and 'twenty, one and I know youre not providing guidance from curious will lose any.
Items that either were unusual help or hindrance in 'twenty, and 'twenty and anything that might move say it a different direction and 2021.
With a normal run rate and the <unk>.
And what impacts in the coming year right. So so within 2020, and we had a couple of benefits and operating cash flow one we deferred our.
U S unemployment.
<unk> and the U S.
Which was about $13 million.
That was under the cares Act.
Those are repaid in two installments in 2021 and 2022 under the act so.
And in 'twenty.
'twenty, one we'll have the normal.
Payroll tax deposits that we normally would plus at the end of the year, we will have to make up about six and a half million dollars of what we deferred in 2020.
We also benefited from the Canada emergency wage subsidy and.
And in 2020.
And that was a program put on by the Canadian government to subsidize companies for retaining their workforce.
That was about and.
On a cash basis about and 11 $8 million benefit for us and 2020.
That program is ongoing through the first half of this year, although at a reduced rate. So we won't see that subsidy, but we do expect for our business to improve as we exit out of out of Covid. So we're hopeful that we'll have kind of AR and offset there but.
But I would expect to see.
A little bit of pressure on operating cash flow just as a result of the cares act benefit that we got.
Going away and 'twenty one.
Understood.
Canada wage subsidy.
Was the $11 3 million and on that.
Allocated corporate costs.
Inclusive inclusive of the 4.8 so.
But for it would have been meaningfully higher.
The.
The corporate unallocated cost had a piece of the.
The Canadian and benefit.
And about about half of the benefit but the other half set and are set and our operating results.
So and what is the kind of a normalized run rate and maybe just looking backwards.
And any thoughts about how that will trend in 2020 one.
For the corporate unallocated cost yeah, yeah, Yeah, I mean, we certainly think that the fourth quarter was abnormally high.
And and that is not indicative of our run rate going forward. We can see some volatility there the thing that that tends to impact us the most or self insurance reserve true ups, but I think if you go back and look over the <unk>.
Last few quarters, Thats, probably more indicative of where we would be on that on that line item.
Okay, and then the Tpa business you had a nice sequential uptick in revenue was up and I think you've talked about the <unk>.
Some more COVID-19 claims business interruption and so strong.
Was that just.
That and then maybe some normalization and the economy what drove the sequential increase.
Mark we are seeing this is Roy and Mark we are seeing.
And uptake in the claim volume largely that has been driven by the COVID-19 claims and we certainly saw the impact of the increase and infections and the U S that happened between Thanksgiving and Christmas and that did come through in the month of December.
And.
And we're seeing some of that impact come through in January as well.
Orange seeing a secular increase and overall claims activity until economic activity comes back, but we feel very bullish that economic activity will be back later part of the year and and Tpa should be back on its full recovery and not just recovery, but actually doing better because of the wins that we've had and the last.
12 to 18 months.
And on that front any comment as we think about 2021 and the new business you might have one and will be coming on line.
Absent these COVID-19 and other economic effects.
And as your customer count growing.
Yes, the customer count is growing and I think we're also very encouraged by the carrier wins that we're seeing because they are the customer account is one but the revenue increase opportunity is much higher.
Because as the carriers add customers.
That claim activity starts to show on an annualized basis last year, we won about $37 million of Tpa business and as you know from working with us that not all of that shows up and the first unit itself, but.
Gradually comes in and so we expect the impact of that to come in.
As well this year, so we feel very good about our tpa business, where it's heading.
And the investment that we've made there over the last 24 to 36 months, we feel is really starting to show.
Yeah and then.
One more question and when we think about the.
Q1, with the winter storm, presumably that is the catalyst for claims and I'm not sure how much of.
The carryover you had from the fourth quarter, but I Wonder if you could just comment on when we think about weather broadly as it impacts.
Contractor connection and.
You're you're adjusting business, how do we think about the <unk>.
Q1 in terms of.
Potentially stepped up activity.
Certainly when we look at Q1, we did carry some benefit from Australia and U K in terms of the storm activity that we saw.
And so we believe that inventories are still there for us to work through it and Q1, so we should see some of that impact.
The impact of the storm worry is it's early to comment on but the numbers look favorable in terms of the claims volume that is.
Coming to our and.
And we should have some more clarity coming through it and the next couple of weeks, but overall, we feel very good and very positive about how the year is unfolding so far.
Thank you very much.
Once again to ask a question. Please press star one on your telephone keypad. Once again that is star one to ask a question.
And we have a question from Alex Bolt and please go ahead.
Good morning.
And I'm, calling in for Greg Peters, Thanks for taking my question.
I guess my question surrounds and.
And.
The margin improvement that you've seen and I guess the specialty and.
And the claims business you know just kind of curious going forward, maybe past the pandemic. If you think you know how much you're able to retain of that margin improvement versus you know maybe some of that.
Might return.
Sure.
And as you know and during Q3 and Q4, there was quite a significant storm activity and the U S.
And we benefited from that storm activity, which also showed and our margins. Additionally, we've been adding new carrier clients, both in our specialty services business and and our traditional Ccs business, which we believe have.
Strong long term value.
The value to us so we expect that as the storm activity continues that we will see better margins and improved margins.
And then we certainly want to continue to make investment and the technology side to innovate and simplify the claims process, which should further enhance our margins, but as we said, we're not really providing guidance at this moment.
But I'd like to reiterate that we feel very favorably about how the euro progress for our loss adjusting business.
And our <unk> and <unk>.
Contractor connection business.
Okay, Okay, Great and then my other question is.
And I know, you're not providing guidance, but I was wondering if you could comment on the reporting changes and.
There's much change to the revenue mix I guess between the three segments with the reporting changes.
Bruce do you want to take that yeah sure I'll I'll take that so are our plan is that.
By the end of this month by the end of March will issue, an 8-K that has the.
And the historical financial results for 2020, and 2019, including by quarter.
Restated for the change and segments. So.
I think that that will will help clear things up for for you and and other.
Analysts and investors.
And kind of understand the historical results in.
In light of the new structure change.
Okay, Great I'll look out for that thanks for the answers and the insight.
Thank you Alex.
Once again to ask a question. Please press star one on your telephone keypad and you have a question from Mark Hughes. Please go ahead.
Yes. Thank you I was going to ask about the margins. So you.
And it gave a good answer and that one so I'm all set thank you.
Thanks, Mark Thank you.
And you have a question from David and once again and ask a question. Please press star one on your telephone keypad once again Thats star one to ask a question.
And we did not have any telephone questions. At this time I will turn the call over to Mr. Verma.
Thank you so much Sharon.
Let me first thank all our employees clients and shareholders for their continued trust and commitment to corporate and company.
Our strong 2020 results reinforce our confidence and the future of the company and we look forward to the journey ahead with you.
Wish you all well thank you so much and God bless.
Thank you for participating in todays Crawford and company conference call. This call will be available for replay beginning at 11 30, a M. Eastern time today through 11 59 P. M. Eastern time on April five 2021, the conference I'd number for the replay is 138 and eight three to nine the number to dial for the replay is.
805, 85867, or four one and six six to 146 14. Thank you you may now disconnect.
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