Hub financial results rise

Hub International Limited (NYSE/TSX: HBG) has experienced strong improvement in both its revenue and key expense ratios for the three months and nine months ended September 30, 2006.The company reports that its revenue increased 29% to US$126.5 million in the Q3from US$98.3 million a year earlier, while net earnings from continuing operations increased to US$7.0 million, or US$0.17 per diluted share, from a loss of US$0.3 million or a loss of US$0.01 per diluted share, in the prior-year period.”Net earnings reflect a number of items that can complicate comparisons between periods,” according to a press release from Hub. When adjusted for these items, Hub says net earnings from continuing operations increased 12% to US$9.3 million in the Q3 from US$8.4 million a year ago. Diluted weighted average shares outstanding increased 34% to US$41.1 million from US$30.6 million a year earlier.Hub says the increase is attributable primarily to the issuance of common shares in a May 2006 public offering and in connection with acquisitions, while at the same time the prior year figure for the same quarter was lower than would otherwise be the case as the company’s common share equivalents, such as options, restricted share units and convertible debt, were not dilutive. As a result, Hub explains the diluted earnings per share from continuing operations, when adjusted for the items in the attached tables, declined to US$0.23 from US$0.27 a year ago.