Anthony Clark losses widen, but U.S. revenue rises

Anthony Clark International Insurance Brokers Ltd. (TSX: ACL, NASDAQ: ACKBF) is reporting deeper losses for the first nine months ending December 31, 2004 of $2.39 million, or $0.30 per share. This compares with a loss of $969,400, or $0.12 per share, for the same period in 2003.
The loss also widened in the quarter ending December 31, 2004, to $974,200, or $0.12 per share, versus a loss of $582,200, or $0.06 per share, in the third quarter of fiscal 2003.
The company did report a strong rise in revenue, however, with the nine-month period in 2004 producing $8.19 million in revenue, nearly double the $4.64 million reported in 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.
Growth was largely in the U.S., as a result of several acquisition 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.
However, expenses also grew over the same 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 to $1.97 million in third-quarter 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.”