Western Financial results on the right track (October 01, 2002)

September 30, 2002 | Last updated on October 1, 2024
1 min read

Second-quarter results for Western Financial Service (TSX: WES), formerly Hi-Alta Capital, are on track to hit the company’s yearend targets. Revenue is up 21.4% for the quarter ending June 2002 to $7.6 million, versus $6.2 million for the same period a year earlier. Net income rose to $477,662 for the most recent quarter compared to $420,159 reported a year ago. However, earnings dropped to 3 a share from the 4 a share declared for the same period in 2001. The broker network consolidator notes that the number of outstanding shares in issue increased, while the company faced one-time costs relating to recent debenture and issuer bid transactions.

For the first six months of this year, revenue climbed by 19.4%, to $13.5 million from $11.3 million for the first half of 2001 while earnings clocked in at 6 a share. Net income for the first six months of this year increased by 63% to $904,397 compared with the $556,956 reported for the same period in 2001. “Same-store sales showed strong growth with a 7.8% increase over the first six months of 2001,” says Western Financial president CEO Scott Tannas. “Also, despite a challenging operating environment, our same-store customer count is up 2% in 2002, ahead of the industry average.”

The company recently announced its name change, and plans to move into agency banking and investments on top of its insurance business. “New products and services were introduced subsequent to the end of the second quarter and early returns are positive,” states a company release. The company also recently added two Saskatchewan brokerages to the network.