Hi-Alta revenues rise, earnings diluted

Broker consolidator Hi-Alta Capital Inc. (TSE: HIA) reported a 40% rise in net income to $345,226 for the 1999 financial year compared with the prior year’s earnings. However, earnings came in lower at 3 a share (1998: 4 a share) due to the dilution affect of debenture conversions to common stock. The debentures, amounting to approximately $15 million in total, are held by insurance company investors. Further dilution of earnings a share can be expected in the year ahead until all of the debentures have been converted, says president Scott Tannas.

The broker consolidator’s asset base rose by 66% year-on-year to $45.8 million. Revenue volume also nearly doubled to $15.7 million (1998: $8.6 million). Total annual premium volume increased to $90 million from the $48 million level at the end of the 1998 financial year. Hi-Alta has also announced that it will not proceed with its intent to acquire investment fund manager University Avenue Financial Corporation (CDNX: UAF). A significant rise in funds under management since the beginning of this year resulted in a re-evaluation of the acquisition cost. “Both parties agree that, as a result of the revenue increase, the offer is no longer in the best interests of the shareholders of UAF.”