Although its revenues increased during the year, IPC Financial Network Inc. is reporting a wider loss for the year ended August 31, 2001.

The financial planning firm incurred a loss of $9.7 million or 19¢ per share for the year compared to a loss of $4.1 million or 11¢ per share for the year ended August 31, 2000.

Contributing to the greater loss was $8.2 million of amortization, up from $3.7 million in 2000. IPC says the increase in amortization is the result of acquisitions completed by the company.

Also contributing to the higher loss in fiscal 2001 was an increase in interest and financing costs to $700,000 from $500,000 in fiscal 2000. Additional financing was required by the Company to continue its strategy to build assets under administration through acquisitions.

Earnings before interest, taxes and amortization declined to ($700,000) or (1¢) per share compared to fiscal 2000’s EBITDA of $200,000, or 1¢ per share.

“EBITDA results were below expectations in fiscal 2001 primarily due to reduced revenues. IPC remained focused on integrating all of its previously announced acquisitions; the benefits of that integration will be seen in early 2002”, says Steve Meehan, CEO IPC Financial Network Inc.

“Although markets were not conducive to our meeting our financial targets, we are pleased with the progress we have made in our subsidiary businesses: Counsel Wealth Management, Banking and Insurance and we feel those results will be reflected as they begin to represent a larger portion of our overall revenues. In addition we believe fiscal 2002 will see a stabilization of equity markets and an overall increase in our revenues relative to fiscal 2001.”

IPC says revenues were $74.5 million in fiscal 2001, an increase of $28.6 million from fiscal 2000. The growth in revenues is mainly due to the acquisition of the AFP group of companies, KPLV group of companies, and Equisure Securities Ltd..

Operating expenses were $21 million in fiscal 2001 up from $11.1 million in fiscal 2000. The increase in operating expenses was due to several initiatives started during fiscal 2001 that are expected to have positive benefits on the company’s future results. IPC began its cost reduction program by integrating several prior year acquisitions. Further integration of acquired companies are expected to occur in fiscal 2002.
2001.”