Willis Group reported growth in commissions and fees for the third quarter, but a net loss from continuing operations of $27 million, after reporting a loss stemming from paying off high cost debt and fees related to the accelerated payoff.
These results compare to reported earnings per diluted share of 15 cents in the third quarter of 2012. Foreign currency movements had no net impact on earnings per diluted share during the quarter.
Adjusted net income from continuing operations, which excludes the after-tax impact of the decision to accelerate the payment of $60 million in debt, was 19 cents a share. This compared to 22 cents in the same quarter of the prior year.
However, management said both reported and adjusted results in the third quarter of 2012 would have been 7 cents per share lower had a change in compensation policy been effective from the beginning of 2012.
“Once again we delivered strong top line results, our fourth consecutive quarter of mid-single digit organic growth with positive contributions from each of our businesses,” said Willis Group CEO, Dominic Casserley.
Casserley said this was in line with goals disclosed at the firm's annual investor conference in July. These goals were growing revenues with positive operating leverage to improve cash flow and deliver strong shareholder returns.
He said the decisions made in the third quarter had the overall effect of strengthening the company's by effectively refinancing portions of our nearer term debt into new debt with maturities out ten and thirty years.
“We accomplished that while decreasing our overall debt costs,” he said.
Total revenues, which includes commissions and fees, investment income, and other income, were $795 million in the third quarter of 2013, an increase of 5.4% compared to the year ago quarter.
Total reported commissions and fees for Willis Group improved to $791 million in the third quarter of 2013, up from $749 million in the prior year quarter. Commissions and fees in the third quarter of 2013 were unfavorably impacted by $4 million of foreign currency movements.
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