Good afternoon. My name is Jennifer and I will be your conference facilitator today. At this time, I would like to welcome everyone to the Crawford & Company Fourth 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, Thursday, March 10, 2016. Now, I would like to introduce Allen W. Nelson, Crawford & Company’s General Counsel and Chief Administrative Officer.

Thank you, Jennifer. 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 benefit pension plans, our expectations related to future revenues and expenses, expectations regarding the timing, costs and synergies related to our 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 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-K for the year-ended December 31, 2015, which is 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. I would now like to introduce Mr. Harsha Agadi, Interim President and Chief Executive Officer of Crawford & Company. Harsha, you may begin our conference.

Good afternoon, and welcome to our fourth quarter and full-year 2015 earnings call. Joining me today are Bruce Swain, our CFO; and Allen Nelson, our General Counsel and Chief Administrative Officer. After our prepared remarks, we will open the call for your questions. For the fourth quarter of 2015, we delivered revenues before reimbursements of $284.9 million, which was flat compared to the $285.5 million that we achieved in the year ago period. Consolidated operating earnings for the fourth quarter grew 24% year-over-year to $19 million. Strength in the U.S. Services segment aided by the cost takeout achieved from our restructuring initiatives drove the better results. Importantly, our operating earnings were ahead of our stated expectation and are representative of the new culture of meeting and exceeding target that we are instilling throughout the company on a daily basis. For the full-year 2015, revenues before reimbursements were $1.17 billion, representing a 2% increase over the $1.14 billion in revenues that we recorded in 2014. Full-year consolidated operating earnings were $70.4 million, down from the $73.1 million earned in 2014. In reviewing our results in more detail what can be seen is the continued strong performance from our higher growth more predictable businesses such as Broadspire and our U.S. Services segment, largely driven by Contractor Connection. Broadspire, for instance, delivered 9% revenue growth along with 200 basis points of margin expansion, leading to operating earnings growth of 55% for the full year 2015. Organic growth, new client wins, higher client retention, and increased medical management services referrals all contributed to the robust growth. Our U.S. Services segment delivered full-year 2015 revenue growth before reimbursements of 13% along with 500 basis points of margin expansion leading to operating earnings growth of approximately 81%. Growth in Contractor Connections and outsourcing project with a…

Thank you, Harsha. Companywide revenues before reimbursements in the 2015 fourth quarter were $284.9 million compared with $285.5 million in the prior year’s fourth quarter. The company’s selling, general, and administrative expenses or SG&A totaled $62.3 million, up from $57.9 million in the prior year quarter. As a percentage of revenues, these costs increased to 22% of revenues in the 2015 fourth quarter from 20% of revenues in the prior year quarter. This increase is primarily due to SG&A cost from the acquired GAB Robins organization and increased incentive compensation expenses. During the 2015 fourth quarter, the company recorded a non-cash goodwill impairment charge of $49.3 million, or $0.86 per share after tax related to the former EMEA/AP and Americas, excluding Contractor Connection reporting units. This charge did not affect the company’s liquidity or operating results in any period nor will it in the future. Also during the 2015 fourth quarter, the company recorded additional restructuring and special charges of $18 million, or $0.25 per share after tax. These charges were associated with the ongoing implementation of the Global Business Services Center, GAB Robins integration, and other restructuring activities and operating and administrative areas around the world. The company’s effective tax rate is distortive this year due to our overall pretax loss, driven in part by our goodwill impairment, restructuring costs, and special charges during 2015. And net operating losses in certain international operations with lower tax rates forward the losses are unable to be benefited from a tax perspective. Our net loss attributable to shareholders of Crawford & Company totaled $51.7 million in the 2015 fourth quarter, compared to net income of $3.3 million in the 2014 period. Fourth quarter 2015 diluted loss per share was $0.93 for CRD.A and $0.95 for CRD.B. On a non-GAAP basis before goodwill…

Thank you, Bruce. On our third quarter call, we updated our full-year guidance, which called for operating earnings of $62.5 million at the midpoint of the range. We ended the year with operating earnings just above $70 million in large part due to the aggressive restructuring initiatives that we implemented through the year. Importantly, these results are an affirmation of the culture that we are instilling at Crawford, a culture of meeting and beating our goals both internally and externally. Looking forward, I’m optimistic that 2016 [Technical Difficulties] will see strong margin expansion, given the significant progress made, combined with incremental opportunities that we see to reduce expenses further. Our continued vigilance on costs will not only restore Crawford’s profitability, but also position the company to drive organic operating growth – earnings growth beginning in 2017. Along those lines, I’m pleased to report that we have started the year ahead of our initial expectations as our cost reduction efforts have gained traction. Our businesses are performing well and we’re heading in the right direction as a company. I look forward to updating you on our continued progress on subsequent calls. Operator, please open the call to questions.

[Operator Instructions] Your first question comes from the line of Mark Hughes with SunTrust.

Hello, this is actually Kevin Alloway on for Mark today. Just to start with, what is the duration of the large outsourcing agreement you’re currently boosting the U.S. segment? And what sort of run rate should we be expecting there?

Hey, this is Bruce. We anticipate that to run through 2016, based on our current agreement with the client, but that could extend into the future years as well.

Okay. And is that…

And I’d like to add that the outsourcing contract is not as large as you might imagine. But at the same time, we plan beyond all of these thing on a continuous basis, but go ahead.

So I was going to ask, is that projection included in your 2016 guidance, or that will go through 2016?

Yes.

Okay, great. And then maybe if you could give a little more detail around the deceleration you’re expecting to see in Garden City in 2016? And you mentioned I think maybe to position your growth in 2017 there?

Yes, I think what I would tell you is with the deepwater horizon slowing down, as claims volume is coming down. We’re going to see a drop, but we can’t tell you the precision on the drop other than we have not only planned for it, it is baked into our guidance. So in my opinion, it will not have a major material impact, if anything as you can see with the guidance we’re taking our numbers up from a year ago.

Okay, great. Thanks. And then one more, it looks like you’re expecting a little bit lower top line for your 2016 for revenue before reimbursement. Just wondering why and then is that mostly related to the Garden City stuff, or is it coming from some other places as well?

It’s probably coming from two main places. One, there’s going to be some drag from FX that we’re going to see in 2016 compared to 2015, given the relative strength of the U.S. dollar. But then also we expect for the Garden City revenues to be down year-over-year as the large projects continue to roll off into 2016.

Okay, great. That’s it from me. Thanks.

Your next question comes from the line of Greg Peters with Raymond James.

Good afternoon, Harsha and Bruce.

Hi, Greg.

Thank you for the call. Harsha, could you just step back, I know, you are operating in interim capacity as CEO of the company. But it seems like you’re making a lot of decisions and putting the organization in a lot prospectively better place than it was before. And I’m just curious, does that mean that you’re going to be considering removing the interim title?

First of all, Greg, I appreciate all your positive comments. I’m not authorized to remove the interim title until the Board makes that decision. But I also want to tell you maybe I should kind of bring this up at the time that the Board is involved in proceeding forward with the CEO search. The search is on. The search firm has been appointed and being in the interim role, I really cannot kind of delve into a deeper, because we need to, for governance perspective, the Chairman of the Board has to run the search as opposed to myself. And if the Board approaches me with the opportunity, I think, I will have that conversation with the Board. But clearly, the company is moving forward not just because of the interim CEO, frankly, the management team at Crawford is very, very strong. All our lines of business are well run by our business leaders that are very focused and Our Chief Financial Officer, our CIO, Our Chief Administrative Officer, our Chief of Development and Strategy, and our Chief People Officer are fixated on supporting the four businesses. Our execution is only continuing to improve each day, Greg. So I’m sitting in an envious position of taking credit when I should not be.

Harsha, just as a follow-up, because you are executing on a lot of changes internally. Often times it’s hard for us on the outside to gauge whether you’re trimming fact or actually to follow the expression cutting into the bone. What kind of metrics are you watching to make sure that, in fact, you’re not harming the organizational infrastructure yet getting rid of the required fat that you’ve isolated in or working on?

Yes, what we did do, Greg, just to make sure where we were doing this the right way, you’ll always make mistakes. But we did bring in a outside firm that actually has the expertise in these kinds of restructuring activities. And they identified very specific areas using benchmark of other similar companies and where we identified, if you will, excess costs, and we’ve been very thoughtful in how we have trimmed our costs. But really our focus was to bring our costs in line if you will with today’s business environment, one. And then the second really was to make sure our centralized services or our shared services is that efficient as it can be. And I would tell you there’s always room to improve. But the good news is, I have a strong executive management team that can challenge as well as keep balance as we try to do this.

Right.

And I’ll say this is in a very light manner that being primarily vegetarian, I don’t cut to the bone typically.

That’s a funny comment. Just one final question for you. Can you provide us an update on how Contractor Connection is doing? That seem to be a pretty interesting business that sort of fit within the Crawford family. And have your cuts affected any of their business and or the outlook for that segment?

Sure. First of all, I think in the way we reduced our costs, we have kept our non-weather dependent businesses that are growing quite nicely, we have left them largely untouched and undisturbed.

Okay.

So they can continue to grow. Where Contractor Connections has been doing well? I’d call it par excellent in execution. They execute extremely well. They’re methodical almost military like in how they go after increasing their business and executing project. Now, the one other piece that in addition to all of that is Contractor Connection it is just starting to embark on a consumer testing program and this will be the first year where we’re going to do a very, very limited test. And if that is successful, we will continue to expand it, but that will only increase if you will the top line as well as the margin dollars as time continues. And I can tell you, I don’t see a slowdown at this time on Contractor Connections.

Perfect. Thank you very much for your answers.

Thank you, Greg.

Thanks, Greg.

And we have no other questions in queue at this time. And I would like to turn the conference back over to Mr. Agadi.

Okay. Thank you. If there’s no other questions, I thank everybody for being on the call. And we hope to see you at the next quarterly earnings release and best wishes and regards to all inside and outside the company.