Lindsey Morden raise revenues, drop earnings

A dramatic rise in revenue — attributed to the inclusion of extensive international acquisitions in 1998 — and a corresponding decline in net earnings characterisze the second quarter results released by Lindsey Morden Group Inc., parent company of adjusters Cunningham Lindsey. Revenues at the six quarter mark of 1999 have hit $217.8 million compared to $87.5 million at the half year mark in 1998. This rise represents acquisitions in 1998 which included the purchase of UK adjusters Ellis & Buckle and Hambro Insurance Services.

The company’s net earnings dropped considerably from 1998’s half year mark — a gain of $1.5 million last year to a net loss of $2.0 million in 1999. The earning differential can be attributed to growing pains from the numerous 1998 acquisitions, with the company’s operating ratio rising to 101.7 this year compared to last year’s 96.6. The company does appear to be turning the corner on the decline. Operation costs are down resulting in net earnings of $270,000 in the second quarter, an improvement on the first three months, but still considerably smaller than last year’s second quarter $800,000 net earnings.