Broker network focuses on rationalization expenses

Canada Brokerlink Inc. posted first quarter results for this year showed business growth of 67%, and, at the same time, nearly doubling its assets to $67 million compared with the level for the same period in 1998. Revenue for first quarter of 1999 amounted to $6 million against the first quarter of 1998’s $3.6 million.

Rationalization initiatives, the company says, were completed in March 1999, this, however, contributed to an operating loss for the first quarter of 1999. Net income declined from 1998’s first quarter loss of $395,401 to a loss of $1.3 million in 1999, amounting to a loss per share of 4c. Brokerlink president Rick Glass is confident of the network’s ability to return to profitability this year.

The Hub Group Ltd. faired better than its counterpart for the first three months of 1999, posting revenue of $16.1 million with net earnings of $1.4 million. These are the first set of results the network has released since its initial public offering in February this year. The network’s earnings for the quarter amounted to 9c a share. Hub also announced the acquisition of two brokerages, Andrew Gauthier & Associates Inc., of Montreal, and The Independent Brokerage Group Inc., of Vancouver, BC. Combined revenue from these operations will boost the network’s annual commission revenue by $4.3 million, the directors say.