Hub International: Earnings Up 319%
NU Online News Service, Aug. 9, 3:20 p.m. EST?Insurance broker Hub International reported a second-quarter income jump of 319 percent over 2001, fueled by the firm's acquisition strategy and an increase in commission income.
The Chicago and Toronto, Canada- based company reported that net income for the second quarter, ending June 30 of this year, was $10.7 million. This is compared to $2.6 million for the second quarter of 2001, an increase of $8.1 million.
Earnings per share rose 193 percent for the same period, going from 14 cents per share in 2001 to 41 cents per share in 2002.
The results were based on revenue of $57.3 million for the second quarter of 2002, compared to $29.3 million for 2001, an increase of 95 percent or $28 million.
For the six months, net earnings increased 212 percent, or $10.7 million, going from $5 million in 2001 to $15.7 million in 2002. Earnings per share increased 133 percent, the firm said, rising from 27 cents in 2001 to 63 cents in 2002.
Revenues for the six months of 2002 stood at $106.8 million, up 86 percent, or $49.4 million, compared to $57.4 million for the six months of 2001.
During the six-month period, Hub reported that $44.5 million of revenue was attributable to acquisition and $93.6 million was the result of commission income that increased $43.1 million, or 85 percent, from 2001.
The firm also reported that its U.S. public offering of 6.9 million shares in June of this year resulted in net case proceeds of $88.1 million at $14 per share.
The firm said the public offering and the $43.5 million sale of Old Lyme, an insurance company, enabled Hub to pay out $123 million in bank debt, long-term debt, and a convertible subordinated debenture.
The firm reported total liabilities at $244 million.
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