Hub’s Profit Rise Moderates For 1-Q

Broker network consolidator Hub International (TSX: HBG) increased net income year-on-year by 8% to US$9.6 million for the first quarter 2004 compared with the US$8.9 million posted for the same period the year prior. The company achieved this despite a US$1.7 million after-tax write-off incurred during the financial year from incorporating all operations under the Hub brand, a company statement observes.

Net earnings translate to US29 a share for the most recent quarter, compared to US28 a share from a year ago. Revenue for the latest quarter was up 15% to US$79.3 million from the US$68.9 million reported for the same quarter of 2003. Commission income rose year-on-year by 13% to US$61.6 million from US$54.5 million, with contingent commissions and volume overrides showing a 21% increase to US$15.0 million from the US$12.4 million posted for the comparative period the year before.

The company’s Canadian operations delivered a stellar performance, with revenue rising by 30% to US$30.6 million for this year’s first quarter compared with the US$23.6 million reported a year ago. About 17% of this growth resulted from strengthening of the Canadian dollar relative to U.S. currency.

The company’s U.S. operations produced revenue growth of 8% for the first quarter of this year, with the tally amounting to US$48.8 million against the US$45.3 million made for the same period a year ago. Hub will issue a dividend of US5 per every common share for the first quarter result of 2004.