(March 7 – 16:45 ET) – Equisure Financial Network Inc.has posted its 1999 resulst. The Corporation’s net income, earnings and earnings before interest, taxes, depreciation and amortization declined for the first time in many years.
This decline is principally the result of a delay experienced during 1999 in the rollover of a significant portion of the Corporation’s general insurance portfolio to insurance companies where a higher compensation is paid. A combination of growth in our existing operations and contributions from new acquisitions were responsible for increasing our 1999 revenue, before discontinued operations, from $48.5 million to $64.7 million, an increase of 33%.
Shareholders equity increased from $88.5 million to $92.3 million. Assets climbed significantly from $192.3 million in 1998 to $252.7 million in 1999, an increase of 32%.
Earnings per share (EPS) including discontinued operations, rose to $0.23 per share in 1999, versus $0.15 in 1998. EBITDA per share including discontinued operations increased to $0.91 from $0.73. EBITDA per share from continuing operations for 1999 fell to $0.42 in 1999 from $0.63 in 1998. Earnings per share (EPS) before discontinued operations fell from $0.11 in 1998 to $0.04 in 1999, principally as a result of the aforementioned portfolio rollover delay and the 31% increase in the average number of common shares outstanding in 1999.
The Corporation’s effective tax rate continued to climb in 1999, rising to a record 74.9% from its previous high of 61.6% in 1998. The increase is primarily a result of the effect of the ongoing goodwill amortization.
Effective September 30, 1999, Equisure completed the sale of its mutual fund dealer, Balanced Planning Financial Group. During 1999 there was a resurgence of interest in mutual fund dealers and the Corporation was able to negotiate a sale of Balanced Planning for a gain of approximately $11.2 million.
During 1999 Equisure added eleven new insurance brokerages representing 23 offices and approximately $155 million of new premium volume to the network. Among the new additions were six brokerages in Quebec, two each in Ontario and Manitoba and one in Alberta. These acquisitions increased the number of Equisure insurance offices across Canada to 94 and annual premium volume to approximately $400 million
In 1999 the Corporation launched its new and innovative e-commerce insurance and financial service Internet company, moneyramp.com, and successfully set up its new securities firm, Equisure Securities Ltd.
-IE Staff