May 1, 2005 by Canadian Underwriter
International adjusters Lindsey Morden (TSX: LM), which operates in Canada as Cunningham Lindsey, saw its earnings rebound for the first quarter ending March 31, 2005 to post net income of $5.2 million versus a loss of $21.1 million in the first quarter of 2004. This translates to net earnings of $0.37 for the quarter versus a net loss per share of $1.53 per share a year earlier.
The company’s overall revenue was up to $109.0 million in the first quarter of 2005 (Q1 2004: $103.6 million). In Canada, revenue was up to $13.0 million (Q1 2004: $11.2 million), while significant growth was seen in “international” operations (excluding the U.S., U.K. and Europe), where revenue jumped to $16.4 million from $12.5 million a year earlier.
Operating earnings in Canada rose to $354,000 for first-quarter 2005 from $186,000 in first quarter 2004. U.S. operations were able to turn the ship around to post operating earnings of $405,000 compared to a loss of $238,000 a year earlier. And significant progress was again seen in international operations, where operating revenue reached $7.1 million in the first-quarter compared to $2.4 million a year prior.
The company’s turnaround was built on growth in international operations and also the end of the negative impact from discontinued and disposed operations. In the first quarter of 2004, these two factors had contributed a combined negative impact of $23.6 million.
“The first quarter profit is the result of outstanding work performed throughout the company,” says CEO Jan Christiansen. “The activity from last fall’s hurricanes in Florida and the Caribbean continues to generate positive returns and we continue to be encouraged by the market gains made by our United States and United Kingdom operations, as well as the progress of the reorganization of our operations in the Netherlands.”