Lindsey Morden losses widen on U.S. TPA sale

International adjuster Lindsey Morden (TSX: LM) saw its losses widen in the first quarter of 2004, up to $21.1 million from just $2.0 million in the first quarter of 2003.However, much of this loss stems from its U.S. operations, with the sale of the company’s third party administration business in March. Net loss for discontinued operations was $3.8 million in the first quarter, and the company also suffered a net loss as a result of the sale of $15.7 million. Previously, Lindsey Morden had seen much of its losses coming from its U.S. operations. U.S. operations posted reduced revenue for the quarter, although this was offset by continue growth in revenue for U.K. and international operations. Overall, revenue was relatively static at $103.6 million, down slightly from $104.0 million in the first quarter of 2003.At the same time, operating costs were down to $98.9 million from $99.4 million the year prior.Comparing net loss from continuing operations over the period, the loss widened to $1.5 million ($0.11 per share), from $0.3 million ($0.02 per share) in early 2003.Net free cash flow for the first quarter of 2004 was $16.6 million, far worse than the negative free cash flow of $3.9 million reported in the first quarter of 2003.