Hub earnings up 15% on U.S. and Canadian success

Chicago-based broker Hub International (TSX: HBG) saw improvement in its results coming from a variety of sources for the second quarter ending June 30, 2004 growth was experienced both organically and through acquisition, while both Canadian and U.S. operations performed well.
Net earnings were up 15% for the second quarter of this year, to US$11.6 million (US$0.35 per share) from US$10.1 million (US$0.31 per share) a year earlier. Revenue grew 14% to US$50.7 million from US$44.7 million, with organic growth of 4% over the same comparative period, the company notes.
U.S. revenue was up 14% to US$50.7 million for the second quarter of this year from US$44.7 million the year prior, with organic growth of 4%. Over the same period, Canadian revenue was up 7% to US$31.5 million from US$29.5 million, with organic growth of 9%.
For the first six months of 2004, net earnings were up 12% to US$21.2 million (US$0.64 per diluted share) from US$19.0 million (US$0.59 per diluted share) in the first half of 2003. Revenue was up 13% to US$161.6 million from US$143.0 million, with a 9% organic growth rate, over the same comparative period.
U.S. revenue was up 11% to US$99.5 million for the first half of this year from US$90.0 million a year ago. At the same time, Canadian revenue grew 17% to US$62.1 million from $53.1 million.
“Second quarter improvements were particularly strong in comparison to more recent quarters, considering that rate increases continued to moderate and we obtained only a one percentage point benefit from a stronger Canadian dollar,” says Hub International CEO Martin P. Hughes. “We are encouraged by the overall performance of our operating units.”
The company did declare a quarterly dividend 0f $0.05 per share, however, it lowered its earnings guidance for 2004 to us$0.80-$0.85 per share, down from its earlier projection of US$1.13-$1.17 per share, as a result of the cost of acquisitions, such as the recent major purchase of Talbot Financial.