Broker networks produce mixed bag of results

Two of the public broker consolidator networks, Vector Intermediaries Inc. (V:VTE), and Hi-Alta Capital Inc. (TSE:HIA), have produced a mixed bag of financial results for the first quarter of this year.

Vector’s revenue for the first quarter remained static at $3.067 million compared with that of the same period the year prior. However, the network consolidator reduced operating and interest related expenses, resulting in a significantly lower bottom-line loss of $156,372 (1 a share) against the net loss of $361,152 (4 a share) reported for the same quarter last year. Vector plans on disposing of all its Save-Smart outlets by the end of May this year, which the company predicts will produce an improvement to the bottom-line by the beginning of the third quarter.

Hi-Alta lifted revenue by more than 40% to $4.742 million for first quarter 2000 compared with the $3.357 million reported for the same period last year. However, the company’s net loss of $89,802 for the first quarter was nearly double the $49,949 disclosed for the same period in 1999. The company has also launched term-deposit and GIC products through its Western Insurance Network brokerage outlets. “In many of the communities we serve, consumers have little or no choice in financial institutions or even financial products and services. The Western Insurance Network provides a solid foundation from which we can introduce financial products and services to many rural markets…We plan to add RRSPs and RESPs…the third phase…will include commercial and residential mortgages, leasing and loan programs, and mutual funds,” says president Scott Tannas.