Assante Corp. reported net earnings of $5.3 million in the first quarter of 2002, compared to a net loss of $1.9 million during the same period last year.

The company notes that the $7.2 million increase in net earnings over the corresponding quarter last year was due to several factors including the adoption of the new accounting standard relating to goodwill recommended by the Canadian Institute of Chartered Accountants.

Revenues for the quarter were down slightly to $98.7 million, below the $99.1 million reported a year ago, as strong performances in investment management and business management were offset by lower Canadian distribution revenues in the quarter.

Earnings before interest, income tax, depreciation and amortization and restructuring costs were $20.2 million, an increase of approximately $1.6 million over the first quarter of 2001. Assante also generated $16 million in after-tax cash flow, representing an increase of $2.5 million.

Canadian assets under management grew by $531 million to $5.4 billion in the first quarter of 2002. This increase was comprised of net sales of $381 million and market growth of $150 million. Assets under management in the United States increased by $235 million to $1.3 billion. Assets under administration increased by approximately $500 million to $23.1 billion during the quarter.

“We attribute our positive results to several factors, including strong and growing demand for face-to-face advice, particularly from investors seeking to find less volatile long-term solutions for their evolving and complex wealth management needs,” said Assante president and CEO Martin Weinberg.

“These results also highlight the benefit of having invested significant resources in consolidating and branding our operations in Canada over the last few years,” said Weinberg. “We are now focusing on continuing to build on our U.S. operations to achieve similar results.”