Hub Revenue Rises 30%, Re-Branding Campaign Planned

Broker network consolidator Hub International Ltd. (TSX: HBG) boosted total revenue by 30% year-on-year to a record US$286.4 million for the 2003 financial year (2002: $220.0 million).

Net earnings for the year came in at $38.5 million, equal to $1.14 a share, up from the $31.9 million, or $1.06 per share, reported for the year prior. Both the company’s Canadian and U.S. operations performed strongly, with Canada posting revenue of $109.1 million (2002: $85.8 million) while the U.S. brokerage operations boosted revenue to $177.2 million (2002: $134.1 million).

Hub closed 2003 with cash and cash equivalents of $82.1 million, an increase of 102% over the end of 2002.Despite these strong results, Hub International CEO Martin Hughes says the company did not achieve an increase in its net margin, or its goals for acquisition set for 2003. During the spring and summer of 2004, all Hub brokerages will be re-branded to operate under the Hub name, a move which will result in a $2.6 million charge on its first quarter 2004 results. Also, the company has begun to implement a plan to reduce compensation, including the transfer of approximately $15.1 million of restricted share units to management in lieu of cash.