Anthony Clark earnings down despite revenue growth

Staffing costs took a bite out of earnings for Calgary-based brokerage Anthony Clark International Insurance Brokers Ltd. (TSX: ACL). The company posted revenue for the three months ending June 30 of $1.40 million, versus $1.25 million for the same period a year earlier. This was largely on the basis of new business commissions, while about $136,300 was due to premium increases. However, new business came at a cost, with salary and wage expenses jumping to $864,898 for the most recent quarter, versus $682,962 a year earlier. The net effect was a drop in earnings (EBITDA) to $244,728 for the most recent quarter, from $244,728 the year prior. Earnings per share held at $0.01. At the same time net earnings as a percentage of revenue dropped to 3% from 8%.Another hindrance to earnings growth was the increase in interest and financing costs related to debt financing availability, which jumped to $74,093 in the most recent quarter, to $2,614 during the same period a year earlier.At the end of June, the company held working capital of more than $4 million, up from $3.9 million at the end of March, 2003. “Based upon the corporation’s liquid position at June 30, 2003, the corporate has sufficient cash to meet its short-term needs and potential brokerage acquisitions within the next 12-month period,” states the company’s Sedar filing.Shareholder equity was up to $7.28 million at the end of June, versus $7.24 million at the end of March, 2003.