Lindsey Morden benefits from 2004 hurricane activity

Fairfax’s claims adjusting operation, Lindsey Morden Group Inc. (TSX: LM.SV), which operates in Canada as Cunningham Lindsey, ended 2004’s fourth quarter with net earnings of $4.81 million, or 35 a share. This compares with a net loss of $21.18 million, or $1.54 a share posted for the same period in 2003.

The fourth-quarter earnings boost helped to narrow the adjusting firm’s net loss for 2004 to $20.77 million, or $1.50 a share, versus the net loss of $30.0 million, or $2.18 a share, reported the year prior. The company posted a net loss of $24.63 million for 2004 as a result of disposal of operations, whereas in 2003, it posted a $34.59 million net loss from discontinued operations.

Revenue was up to $112.48 million in the fourth quarter of 2004, compared to $103.73 million for the same period a year earlier. Specifically, revenue in the U.S. grew to $17.53 million from $12.80 million over the comparative quarters. The company notes that international and U.S. operations benefited from increased revenue due to hurricane-related events.

For the full-year of 2004, the adjusting company’s revenue rose to $423.89 million compared with the $407.14 million reported for 2003. Lindsey Morden Group CEO Jan Christiansen points to the profitability achieved by all continuing operations in the third and fourth quarters of 2004. “We are also very encouraged by the positive customer feedback we are receiving as a result of our hurricane related services in our U.S. and international operations.”