Good afternoon. My name is Maya, and I will be your conference facilitator today. At this time, I would like to welcome everyone to the Crawford & Company Third Quarter 2012 Earnings Release Conference Call. In conjunction with this call, a supplementary financial presentation is available on our website, at www.crawfordandcompany.com, under the Investor Relations section. [Operator Instructions] As a reminder, ladies and gentlemen, this conference is being recorded today, Monday, November 5, 2012. Some of the matters to be discussed in the conference call and in the supplementary financial presentation may include forward-looking statements that involve risks and uncertainties, these statements may include but are not limited to statements regarding the funded status of our defined benefit pension plan, our expectations related to future revenues and expenses, our long-term liquidity requirements and our ability to pay dividends in the future. The company’s actual results achieved in future quarters could differ materially from results that may imply by such forward-looking statements. The company undertakes no obligation to publicly release revisions to any forward-looking statements made in the conference call to reflect events or circumstances occurring after the date of the call or to reflect the occurrence of unanticipated events. In addition, you are reminded that operating results for any historical period are not necessarily indicated of result 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 10-K for the year ended December 31, 2012, filed for the Securities and Exchange Commission, particularly the information under the headings: business; risk factors; legal proceedings; and managements discussion; and analyze of financial condition and results of operations, as well as the subsequent company filings with the SEC. This presentation also includes certain non-GAAP financial measures as defined under SEC rules. As required, a reconciliation is provided for those measures to the most direct compared GAAP measures. I would now like to introduce Mr. Jeffrey Bowman, President and Chief Executive Officer of Crawford & Company. Mr. Bowman, you may begin your conference.

Thank you, Maya. A warm welcome to our investors, clients, and employees this afternoon. I’m Jeffrey Bowman, President and CEO of Crawford & Company. Joining me from the global executive management team this afternoon are Bruce Swain, our CFO; and Allen Nelson, our General Counsel and Chief Administrative Officer. Let me start by saying that our thoughts and prayers, and sympathy and condolences are with our employees class and their families affected by the devastation that has taken place through Superstorm Sandy in the northeast part of the U.S. particularly in New Jersey and in the Metropolitan New York area, as well as in Caribbean in Jamaica and the Bahamas. We have employees who have experienced significant damage to their homes. And as a cooperation we have mobilized our Crawford Cares program to assist them financially. By all accounts from the first time reports from our staff along with the televised images we are seeing, this is an unprecedented event with far-reaching consequences and challenges. Our Crawford role is to support our clients in responding to the insurance claims made and assist businesses and individuals get back to some sense of normality as quickly as possible. So getting back to the third quarter results, I will begin with some opening comments on our third quarter results. Bruce will then review the third quarter financials in more detail and which will be followed by a review of our business performance, comments on our strategic initiatives and conclude with our corporate focus, and an update on our increased 2012 guidance. There is no doubt that 2012 is shaping up as the strong year for Crawford & Company. We talk about our business model being a portfolio of companies that have different dynamics. 50% to 60% of our base business is driven by…

Companywide revenues before reimbursements in the 2012 third quarter were $302.1 million, up 7% from the $283 million in the prior year’s third quarter. Strong results in our Legal Settlement Administration and EMEA/AP segments drove this improvement. Our net income attributable to Crawford & Company totaled $18.2 million in the 2012 third quarter, up 19% over the $15.3 million in the 2011 period. Third quarter 2012 diluted earnings per share were $0.33 per CRDA and CRDB compared to earnings per share of each class of $0.28 in the 2011 period. The Company selling, general and administrative expenses or SG&A totaled $59.2 million or 19.6% of revenues in the 2012 third quarter increasing 10% over $53.6 million or 18.9% of revenues in the prior year quarter. This increase in costs is primarily due to higher professional indemnity, self insurance expense and professional fees. During the 2012 third quarter, the Company incurred a pretax charge of $333,000 related to the completion of a project to outsource certain aspects of our U.S. Technology Infrastructure. This special charge decreased earnings per share by less than $0.01 in the 2012 third quarter. During the 2011 third quarter the Company recorded a special credit of $7 million or $0.11 per share of CRDA and CRDB after related income taxes resulting from an arbitration award. During 2012 the Company paid a higher dividend on its CRDA common stock and then on CRDB shares. This dividend differential can sometimes result in different earnings per share for each class of stock, due to the 2 class method of computing EPS as required by current accounting guidance. Reference to EPS in this call will generally be only for CRDB as that it’s the more diluted measure. Compared to the 2011 period revenues net income attributable to Crawford & Company in…

Thanks, Bruce. As I stated earlier our consolidated revenue on cases increased sequentially for the Group versus the second quarter of 2012. The case volume decreased slightly against the third 2011, reflecting continued mild weather and a benign event environments in the U.S. and Canada. For the quarter, group case volume decreased less than 1% from a year ago. Our EMEA/AP segment results were driven primarily by the ongoing handling of catastrophic flood losses in Thailand. Also during the quarter our Legal Settlement Administration segment was heavily involved in Deepwater Horizon class action settlement. The Americas segment saw a sequential increase in claims activity in the 2012 third quarter resulting from Hurricane Isaac in the U.S. and catastrophe related claims in Canada. Given recent events we are mobilizing our resources to assist our clients, with claims from Superstorm Sandy, and currently have 320 catastrophe adjusters deployed. These adjusters are handling household claims, which engage our field force and Contractor Connection resources through to the Global Technical Services claims involving the infrastructure of New York and New Jersey. We also had small operations in Jamaica and Bahamas working Sandy claims as well. We have also seen an improvement in the Broadspire segment where workers’ compensation claims increased 9.2% in the quarter and 11.8% year-to-date. In the quarter our client retention rate was extremely high and we are pleased with these developments. During the third quarter we also added new members to the global executive management team. With our continual goal to improve global client and business development we have added Emanuel Lauria, he brings 25 years in the broker community and he is now responsible for deploying our consolidated sales capacity throughout our business units. We also added Vince Cole as our Global Strategy and Business Performance Director, tasked ensuring alignment…

[Operator Instructions] Your first question comes from Mark Hughes from SunTrust.

On the Sandy claims volume, how did that 320 adjusters compare to other storms? What do you feel like the feedbacks you’re getting from your clients are about sustainability of these sort of assignments? I’ll ask also the, in times past, it seems like may be some of these disaster events, have that a little more compressed in time? How long do you think this will extend? I know it’s early, but what do you think?

Thanks for that, Mark. And its’ still very early in the process, I mean we literally are just a week into the events. There is no doubt that with the Sandy Superstorm, the actual number of people impacted was far greater than say the Irene situation that we handled last year in the Northeast. This one is also affected, we think with more commercial losses. And I think we can report to my carriers that there’s still significant claims to come in from the prior year. I’ll give you a reference claim. I mean, we handled in Irene 14,000 claims, and we’re already at 17,000 this year with the Sandy. So I think each event is different. I could take you back over several years, but in terms of resourcing, we are working very hard at that, and our induction centers are open, and we are processing individuals through those induction centers as we speak.

But Thailand and Australia, it seems like you continue to generate meaningful revenue from those catastrophes. What should we assume about the pace of that in the fourth quarter into 2013?

Thailand has probably another minimum of 9 months to run through the end of the second quarter probably next year. There is a great deal of difference; all the claims were handling in Thailand are commercial. And we have a lot of adjusters working on those claims and most of it is around business interruption and continuous business interruption. And that will be an extended period going through to the half-year, next year. Australia, we’ve significantly worked on all of those files and that will be coming back to a normality in terms of events have taken place in Australia.

In the Broadspire business, the workers’ comp claims, what has been the underlying trend, if you take aside new customers, look at your same clients you’ve been serving, what’s your feeling about that claims frequency there?

The plans that we’ve been working with so many years, I think there is a stabilization that’s taken place, and we’re seeing a slight uptick in a number of different industries, especially in temporary employment companies and healthcare companies. But our main increase has come from winning new accounts, and that’s the best way, to have that.

You’re going to break out how much of the backlog is the Deepwater Horizon versus traditional Legal Settlement business?

Yes. We don’t break the backlog out. in that manner, we don’t want to think about any claims or programs in that disclosure, but in our 10-Q, we did talk about where we think that revenue comes in, in the future and we’ve got, of that backlog $48 million of it, we believe will be recognized in the fourth quarter of ‘12 with $70 million of it related to 2013.

Right. And then one final question, the cash flow for this year, the $45 million to $50 million cash from Ops. Bruce, could you give me a quick snapshot of the uses of that cash this year, and then as we look at next year, those requirements for cash maybe the same or different?

Yes. I think to get down to the free cash flow number, or CapEx this year, we’re projecting to be at about the $32 million level, and I think that that’s probably a number that is safe to assume for ‘13 as well. Once we get passed that, we look at obviously providing return to our shareholders through our dividend and investments back in the business to foster future growth. We’ll also look at paying down some debt de-levering, as we’ve been doing over the past few years as well to strengthen the Company’s balance sheet position.

Are there any pension liabilities at this point or pension payments that are required?

In 2012, we’ve made our required or we’ve made most of our required contribution that we have in ‘12 or requirement in the U.S. is $13 million. We do have future contributions that will be due in the U.S. and we have updated our future contributions in the 10-Q that we filed today. One thing that we’re getting a benefit from in terms of future pension contributions is the beneficial impact of this law, so-called MAP-21, which was a transportation bill that had some pension funding relief in it. And so we’ll be taking advantage of that, and our pension contributions while not low by any stretch of the imagination are much lower based upon market conditions that exist today, and again, we’ll have to re-measure this at the end of the year. but given the beneficial impact of MAP-21, our pension contributions in next 5 years will be much lower than those that we disclosed in our 2011 10-K. So if you look at our Q that we filed and line it up with a 10-K from last year, you’ll see the difference in it, I think significant decline which is good news.

And your next question comes from Chris Leikhim of William Blair.

I just wanted to follow-up quickly on the $5 million charge in the fourth quarter, if you guys could give us a couple more details on that, and also sort of what kind of profit initiatives you’re thinking about for 2013.

Okay. The restructuring charge is effectively a North American event, because this is the opportunity to take out some inefficiencies that we have in the organization, and create a high profit level for 2013. We’ve been working on this for a couple of weeks since the strategy plan was produced, so that that came through in the fourth quarter, in terms of initiatives for 2013, I mean our strategic plan has us very much focused on obviously developments within our Broadspire operations, our international expansion of their operations, looking at U.S. multinationals and how we can offer a completely one-stop shopping approach to claims overseas in the U.S. We’re looking at a number of developments in our European operations, in terms of volume based businesses and the same in our Asia Pacific. So it’s a mix of technology and new products being brought to the marketplace.

Okay, great. And those cost saves for 2013 are going to be both North America and Broadspire, is that right?

Right.

Okay. And then, as far as the legal settlement business ex-Deepwater, could you just talk a little bit about underlying trends that you see, and sort of where you’ve seen new wins, what sort of segments that you guys are seeing progress in.

Yes, I mean The Garden City Group obviously is a very well positioned in both class actions, bankruptcy and employee, employer, class actions as well. We don’t talk about individual clients or business sectors, but we see pricing as an issue at the moment in the organization that is obviously a decrease at the moment in the number of class actions filed, although we feel we’re well positioned to provide the quality of service to our clients on that basis. It’s going to be an interesting year in balance of 2012 and 2013 for the year class action industry.

[Operator Instructions] There are no further questions. I’ll turn the call back over to Mr. Bowman for his closing remarks.

Thank you. Thank you very much everyone for your time and questions this afternoon. I’d like to thank everyone for joining us, and wish you a great rest of the week. Thank you.

Thank you for participating in today’s Crawford & Company conference call. This call will be available for replay beginning at 6:00 p.m. today through 11:59 p.m. on November 26, 2012. The conference ID number for the replay is 53763973. The number to dial for the replay is 1 (855) 859-2056 or (404) 537-3406. Thank you. You may now disconnect.