(December 1 – 13:50 ET) –
IPC Financial Network Inc.
is reporting a net loss of $1.0
million for the year ended August
31, 1999 compared to net income of
$0.4 million for the year ended
August 31, 1998.
Included in the determination
of net income in 1999 is $0.5
million of amortization compared
to $29,000 in 1998. Basic loss per
share in 1999 was $0.04, compared
to basic earnings per share of
$0.02 in 1998.
Revenue increased in 1999 to
$18.2 million from $17.5 million
in 1998. Increased earnings
resulted primarily from the
purchase of MoneyWatch Consultants
Ltd. MoneyWatch Consultants Ltd.
now operates under the name IPC
Investment Corp.(BC) Limited.
Gross margins increased to 19.0% in
1999 from 13.4% in 1998 as a result
of the purchase of the books of
business from sales representatives
of Investment Planning Counsel of
Canada Limited.
Operating expenses increased to
$2.6 million in 1999 from $1.1
million in 1998 as several
initiatives were put in place to
manage the growth of the
distribution network and meet the
needs of our representatives and
their clients. Business development
expenses increased in 1999 to
$1.4 million from $0.6 million
in 1998 and are a reflection of
IPC’s continuing evolution from a
mutual fund dealership to a fully
integrated publicly traded
financial services company.
Subsequent to the year-end, IPC
entered into an agreement to
purchase 100% of the common shares
of Multi Mutual Inc.
The consideration for this
acquisition is 1,800,000 special
preferred shares of IPC, 1,250,558
common shares of IPC and $450,000
cash. IPC also entered into
agreements with certain IPC
Investment Corp. (BC) Limited
sales representatives to
purchase their books of business by
issuing 1,256,225 in common shares
in IPC.
-IE Staff
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