(November 16 – 09:40 ET) – Assante Corp. is reporting a loss for the third quater ended September 30.

The company had a loss of $1 million in the quarter compared to earnings of $1.9 million in the third quarter of 1999. Goodwill charges in the quarter were $7 million, more than double the charges recorded in the third quarter of 1999. Assante says the increase is a result of acquisitions completed in the last year.

Earnings before goodwill charges increased 14% from 1999, but slipped 5% on a fully-diluted per share basis to 7¢ from 8¢.

The firm reported revenue increased 18% to $94.3 million from $79.7 million for the same period last year. Earnings before interest, income tax, depreciation and amortization before restructuring costs is up by 26% to $19.1 million in the quarter. Revenue from the financial advisory channel increased just 7% to $79.1 million. The boost to EBITDA came from the sports and entertainment channel, acquired since June 1999, which contributed revenue of $15.3 million.

On the expense side, advisor compensation increased to $47.2 million from $42.9 million in 1999. Selling, general and administration costs increased to $27.8 million from $20.8 million. Overall, operating expenses increased by 8% in the financial advisory channel, faster than revenue growth.

Assets under administration, including directed assets grew by 12% year over year to $25.6 billion at September 30. Assante’s assets under management increased to $4.4 billion, a 28% increase on a year-over-year basis.

As of September 30, the company has incurred $10 million of the $23 million restructuring charge it took earlier this year. The impact of restructuring costs and an increase of current taxes of $3.8 million resulted in after-tax cash flow slipping to $8 million from $13.3 million in the third quarter of 1999.
-IE Staff