(November 16 – 11:00 ET) –
Assante Corp. is reporting
improved financial results for the
third quarter ended September 30.
Fully-diluted earnings came in at
3¢ per share, up from 1¢ per share
in the period a year ago.
Assante has doubled its cash
flow year over year, and increased
it 12.7% from the second quarter.
Assets under administration doubled
year over year to $22 billion and
assets under management increased
to $3.4 billion from $2.5 billion
a year ago.
Assante says that the primary
reasons for its improved
performance include: an increase
in sales of Assante’s exclusive
products; revenues from
distributors acquired since
September 1998; and revenues from
NKS Management, Inc. and
Philpott, Bills & Stoll,
recently acquired business
management firms.
Advisor compensation has
increased from 50% of revenues in
the second quarter to 53.8% this
quarter. Selling and administrative
expenses also doubled.
The firm is also restating its
revenue and expenses from June 1998,
reducing them to $38 million and
$28 million respectively.
Pre-acquisition revenues and
expenses of a subsidiary that were
not eliminated on consolidation,
the company says.
Assante has completed its Y2K
testing and remediation. It plans
to focus on its contingency plans
in the fourth quarter and Y2K
readiness of its recent
acquisitions.
-IE Staff
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