Anthony Clark loss reflects cost charges

Anthony Clark International Insurance Brokers Ltd. (TSX: ACL) continues to bleed red ink, with its financial return for the first three quarters of the current financial year (ending December 2004) showing a net loss of $2.39 million compared with a loss of $969,400 shown for the same period the year before. The latest return equates to a loss of 30 a share against the 12 a share result of the previous year.

The brokerage’s loss for its third quarter also widened to $974,200 versus the $582,200 loss reported for the same period the year prior. The company did, however, post a strong rise in revenue for the nine-month period in 2004, which came in at $8.19 million, nearly double the $4.64 million reported for the first three quarters of 2003. For the third quarter of 2004, revenue grew 54% to $3.15 million from $2.04 million in third-quarter 2003.

Anthony Clark’s business growth was largely achieved in the U.S., as a result of several acquisitions in late 2003, as well as 2004. For the first nine months of 2004, U.S. operations posted revenue of $4.39 million, up from $673,700 a year earlier. Over the same comparative period, Canadian revenue dropped to $3.80 million from $3.97 million.

The broker network’s expenses also increased over the same reporting periods as the company expanded its operations through acquisition. For the first three quarters of 2004, expenses reached $8.40 million, up from $4.82 million for the same period in 2003. And, in the third quarter of 2004 alone, expenses reached $3.12 million, compared with $1.97 million declared for the third quarter of 2003. In its financial release, Anthony Clark notes, “we look forward to revenue and operational improvements over the next year, primarily due to the full effects of new acquisitions being reflected and additional streamlining of costs in our U.S. operations”