Good afternoon. My name is Patsy and I will be your conference facilitator today. At this time, I would like to welcome everyone to the Crawford & Company’s Second Quarter 2015 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. All lines have been placed on mute to prevent any background noise. After the speakers’ remarks, there will be a question-and-answer period and instructions will follow at that time. [Operator Instructions] As a reminder, ladies and gentlemen, this conference is being recorded today, Monday, August 3, 2015. Now I would like to introduce Allen W. Nelson, Crawford & Company’s General Counsel and Chief Administrative Officer.

Thank you, Patsy. Some of the matters to be discussed in this 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 pension benefit plans, our expectations related to future revenues and expenses, expectations regarding the timing, costs and synergies from our recently announced Global Business Services Center, our acquisition of GAB Robins in the UK as well as other restructuring activities, 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 the 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 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 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 10-Q for the quarter ended June 30, 2015 filed with the Securities and Exchange Commission, particularly the information under the headings, Business, Risk Factors, Legal Proceedings and Management’s Discussion and Analysis of Financial Condition and Results of Operations, as well as 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 directly comparable GAAP measures. For participants of the call, we have also been made aware that there are some issues relating to the filings made via the EDGAR service such that some of the images in the filings are not appearing in the filed documents. There are no images in the release that affect any reported data and the release that set out by NASDAQ OMX is correct and complete. Additionally, the slide deck is normally accompanies the release and which was also filed with the SEC is available on the Crawford & Company’s website. Now, I would like to introduce Mr. Jeffrey Bowman, President and Chief Executive Officer of Crawford & Company. Jeff, you may begin our conference.

Thank you, Allen. Good afternoon and welcome to our investors, clients and employees. I’m Jeffrey Bowman, President and CEO of Crawford & Company. Joining me from the global executive management team this afternoon is Bruce Swain, our Chief Financial Officer; and Allen Nelson, our General Counsel and Chief Administrative Officer. I will begin with a brief overview of our second quarter 2015 results, followed by an update on the progress that we have achieved executing our strategic initiatives. Bruce will then review the financials in more details and I will wrap up with an update of our 2015 guidance. For the second quarter, we have reported company-wide revenues before reimbursements of $304.4 million, which compares to $288.2 million in the year ago period. Our operating earnings were $17.7 million, compared to $20.9 million in the 2014 second quarter. Second quarter 2015 diluted earnings per share were $0.08 for CRDA and $0.06 for CRDB compared to diluted earnings per share of $0.19 for CRDA and $0.18 for CRDB for the year ago quarter. Before special charges recorded in the period, our second quarter earnings on a non-GAAP basis were $0.14 per share for CRDA and $0.12 per share for CRDB. As I have discussed on previous calls, the operating environment has been extremely challenging, given the persistent lack of weather events resulting in a shift from higher margin property claims to high volume low value claims. Through the second quarter, this difficult environment continued and became even more severe in our EMEA/AP operations. Additionally, our Legal Settlement Administration segment saw a decline in revenue and margin contraction, giving a lack – given a lack of assignments. As I will discus in more detail, later in the call, these two issues are causing us to reduce our second half guidance. While the…

Companywide revenues before reimbursements in the 2015 second quarter were $304.4 million, compared with $288.2 million in the prior year’s second quarter. The company’s selling, general, and administrative expenses, or SG&A, totaled $57.2 million, down from $60.9 million in the prior year quarter. As a percentage of revenues, these costs declined to 19% of revenues in the 2015 second quarter from 21% of revenues in the prior year quarter. The company incurred a special charge of $4.2 million related to restructuring activities that are ongoing for the GBSC project and GAB Robins integration. Our net income attributable to shareholders at Crawford & Company totaled $4.1 million in the 2015 second quarter, down from $10.5 million in the 2014 period. Second quarter 2015 diluted earnings per share were $0.08 for CRDA and $0.06 for CRDB compared to diluted earnings per share of $0.19 for CRDA, and $0.18 for CRDB in the 2014 period. On a non-GAAP basis, before special charges, second quarter 2015 diluted earnings per share were $0.14 for CRDA and $0.12 for CRDB. I will now review the second quarter performance at each of our business units starting with the Americas segment. As Jeff mentioned, the benign weather in the U.S. persisted into the 2015 second quarter and a stronger U.S. dollar reduced revenues by 5% during the period. However, this was more than offset by higher special project revenues in the U.S. and the positive impact that the cost reduction activities commenced earlier in the year. Revenues from the Americas segment totaled $99.2 million, up from $93.6 million reported in last year’s second quarter. This overall increase was due to higher revenues associated with an outsourcing special project with a major U.S. property and casualty insurer. Operating earnings in our Americas segment were $9.9 million in the 2015…

Thanks, Bruce. Let me now speak to the guidance for the year. Given the challenges that we are dealing within our EMEA/AP and Legal Settlement Administration operations, we’re reducing our full year guidance. However, we are optimistic that our margins will begin to expand throughout the balance of the year. As previously disclosed, 2015 guidance will include both the impact of acquisitions and special charges related to the GAB acquisitions, the Global Business Services Center, and restructuring activities in EMEA/AP and Americas segment. In the aggregate, these 2015 charges will total approximately $20 million pre-tax or $0.26 per share in diluted earnings per CRDB share. As a result, our guidance is as follows. Consolidated revenues before reimbursements between $1.16 billion and $1.18 billion. Consolidated operating earnings between $70 million and $80 million. Consolidated cash provided by operating activities between $30 million and $40 million. Reflecting the special charges discussed, net income attributable to shareholders of Crawford & Company on a GAAP basis between $20 million and $25 million, or $0.37 to $0.47 per CRDA share, and $0.30 to $0.40 diluted earnings per CRDB share. Before the special charges, net income attributable to shareholders of Crawford & Company of between $34.5 million and $39.5 million, or $0.63 to $0.73 per CRDA share and $0.56 to $0.66 diluted earnings per CRDB share. To conclude, we are moving with a real sense of urgency to remove costs in order to deliver our segment margin goals. As evidenced by the benefits that our American segment achieved this quarter, as they delivered their margin goal of 10%. While UK labor laws have been an impediment, our EMEA/AP segment will begin to see the financial benefits of our headcount reduction beginning in the third quarter with margin expansion expected through the second half of this year. Our Broadspire segment is performing well and already seeing the benefits of their move into the GBSC as their margins have expanded 400 basis points quarter-over-quarter. Lastly, we are diligently working to offset the wind-down of several large projects in our Legal Settlement Administration business as we begin to reduce costs and develop new products offerings. Thank you for your time and we look forward to your questions. Operator will you please explain the process for asking questions to our audience.

Thank you. [Operator Instructions] And your first question comes from Mark Hughes with SunTrust.

Thank you. Good afternoon.

Hi, Mark, how are you?

Good, thank you. The margin outlook within the EMEA/AP business, I think you described a delay related to right-sizing in the UK. Is that – are there any further approvals that are required there? Or do you have a good visibility for when those expense saves will come online? And then is there any additional revenue that is required in order to get the margins moving back up?

Okay. We – on the 3rd of March, we got all of the approvals that required from the authorities – through the competitive markets authority, so we’re past that one. We’re in the process. We’ve laid off a significant amount of personnel in the last few weeks of the second half of the year and those benefit should start falling into place in the third and fourth quarters in the EMEA/AP. So we’re pretty confident that with the significant number of people we’ve already taken out that we should see the margin improvements started to come in. What we’re very confident about is that the – on the revenue side, we had complimentary clients within both the GAB and the Crawford organizations and there was very little overlap between the two. We’re in the process of renewing some RFPs there, but we’re pretty confident that the client attrition is virtually zero. It’s the actual claims count that that has caused us the problem in the first half of the year. So assuming we’ve flattened out as an organization on that basis, we see that’s starting to move up again in both margin and profitability.

Right. So you’re – I’m sorry, your sense is your claim counts have flattened out?

Yes, we’re hoping so. I mean, you know, that’s what the trends are telling us for the July period.

Okay, good.

I mean you saw that drop down and then it’s sort of flattened out and started to move up a little bit.

The 15,000 claims, the accident and the health claims that shifted over to Broadspire. What impact on the profitability within the Broadspire? Were those – was that more profitable business or just the incremental revenue, you got some nice operating leverage there?

Yes, Mark, this is Bruce. Those are what we would characterize as pretty light touch, high frequency, low severity claims. So there we do get some operating margin from those, but I think that that most of the leverage that you saw on the increased margin and Broadspire was due to the increase in their workers comp and medical management business one, but then also some benefits that they’re seeing from the GBSC as their kind of early adopters of that strategy. They were kind of first movers. So, they’re seeing some benefits there as well.

All right, last year, your operating margins in Broadspire improved sequentially in the Q3 and then again in the Q4. Is there some seasonality that should lead to a repeating patent this year?

The seasonality we see in Broadspire has traditionally been kind of a weak first quarter and then strong second and third quarters and then it’s continued on into the fourth, a lot of it depends upon claims incurred by our customers, but we’re continuing to migrate functions into the GBSC. We expect to get further improvements there. And it’s a business that we’re very excited about. We’ve been quite pleased with their performance this year.

I think the other thing Mark is what we’re really excited about is the disability management what we’ve now got going. We’ve won two accounts, which are significant for us. And we’re going start seeing that starting to ramp up after all of the investment and planning we put into launching that product. So you’re going to get the benefit of some of that in the third and fourth quarter as well.

And that is trying to limit disability claims costs, get people back to work that sort of thing?

Absolutely.

Yes, the backlog within the Legal Settlement business, the – if you take into account the trajectory on the gulf business plus the current level of backlog down a little bit year-over-year. And I would assume that implies maybe a slightly lower run rate on that that traditional business in the coming quarters. Where do you think Legal Settlement stabilizes? Are my assumption is correct there? And then where does it stabilize?

Well, we’re seeing a continual wind down on the special projects. And we see that continuing over the next couple of months, towards the year end. So I think, it’s going to be a downwards revision on GCG as they come off of the high-ends of the projects that they were on.

You know are you going to be able to keep ahead of that from a cost perspective that…

Absolutely…

Okay, good. The 11% margin is I think below where it had been prior to the special project.

Yes, that’s correct. I mean we’ve got price compression that we’ve had on some of those projects. I mean we have higher margin business. But, you know, we have a variable cost model there. So we’re in good shape for ensuring that revenue declines are matched by expense declines at the same time also to which we put a cost reduction plan into place within the organization within GCG as well.

And then a final question, the cash flow $30 million, $40 million, cash from operations, what are going to be the offsets to that CapEx, any pension expense or what’s the magnitude of the pension expense?

Yes, the pension expense is – and pension contributions are within that operating cash flow numbers that we…

Okay.

We see CapEx this year as being about $37 million for the year. So that will come off and then our dividends will projected to continue on at their pace. We announced the dividend today and I think I've just modeled that out in terms of what you’re operating – what your free cash flow is going to be at the end of the year.

And then what can you say regarding the pension expense for next year, the cash impact or I guess both expense and cash related assumption?

Yes, it’s probably a little soon to tell on the P&L side. On the cash side, in the U.S., we’ll put in $9 million and that’s the same amount that we’re putting in this year and under the highway [indiscernible] which is a Highway Bill or pension contributions through, I believe, 2018 will be $9 million a year in the U.S. And that’s the cash impact. Our expense will bounce around a little bit and that’s going to depend upon the discount rates that are in play at 12/31 each year as well as our end investment return assumptions that are there. So it’s probably a little too soon to tell when we get to the 2016 guidance at the end of the year, we will give some clarity on that.

Thank you.

[Operator Instructions] Our next question is from Kaitlyn Young with William Blair.

Hi, everyone. I'm in for Adam Klauber. Thanks for taking our questions.

Hi, Kaitlyn.

I know Mark covered a good bit of what we were looking to speak on [indiscernible] and filling a few areas. On the international just the cost profile, I know there is a lot of work being done right now that sort of turn in the ship on a margin perspective, but I guess just to digging a little bit more specifically what level of expense growth are you looking for in the back half of the year and going to 2016?

Are you talking about what we’re taking out of the organization in terms of cost…

Yes, or just sort of trending from the cost growth, is that going to be soon mitigated or…

In total, in both the Americas and the EMEA/AP organization, we will have taken out 650 staffs by the end of the 2015 year and that really is on an annualized savings basis is about $38 million and that’s both Americas and the EMEA/AP. And that’s approximately about $12 million for the Americas and about $20 plus million for EMEA/AP organization.

Okay, great, thank you. And then the Broadspire segment, obviously some really great growth last two quarters. Is high single-digit growth sustainable going forward for the rest of the year in 2016, I guess, where do you see the growth coming from?

Well, out target is to get to 10%. And we’re getting nearer and nearer of that as we’re winning more accounts and we’re looking for 2016 to be in the 10% range.

Okay, great, thanks. And I know that you guys already touched on the Legal Settlement Admin just sort of variable cost model embedded in that business structure. Does that mean I guess that the low double-digit margin is sort of kind of run rate and what you’ll scale to going forward or is there some opportunity above and beyond that?

Yes, I think, low to mid teens is probably what you should think about in that business and what you know a more normalized ex-Deepwater Horizon environment.

Okay, all right. Thank you very much.

Okay, thanks.

There are no further questions. I would now like to turn the call back over to Jeffrey Bowman for closing remarks.

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

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 September 2, 2015. The conference ID number for the replay is 23943884. The number to dial for the replay is 1-855-859-2056 or 404-537-3406. Thank you. You may now disconnect.