(May 26 – 11:05 ET) – Assante Corporation has reported a net loss of $12.1 million in the first quarter ended March 31, 2000 as compared to earnings of $400,000 in 1999. The loss includes a $23 million restructuring charge and goodwill charges of $6.5 million.
Revenue increased 57% to $116 million for the quarter from $73.9 million for the same period last year. Assante also increased its earnings before interest, income tax, depreciation and amortization, before restructuring costs, by 62% to $19.6 million, a $7.6 million increase over the first quarter in 1999.
The companies in the sports and entertainment channel acquired since July 1999 added revenues of $12.7 million, up 19% from the last year’s quarter. The increase is partly attributable to the acquisitions of Steinberg, Moorad & Dunn Inc. and Maximum Sports Management Inc., occurring in late 1999 and KRT Management Inc. this year.
Assets under administration, including directed assets grew by 34% year over year to $25.9 billion compared to $19.4 billion a year ago. Assets under management, up 24%, climbed to $3.9 billion from $3.1 billion last year.
As for expenses, advisor compensation increased to $66.1 million during the quarter, up from $43.2 million in 1999. Advisor compensation was at 57% of revenues this year, compared to 58% a year ago.
-IE Staff