(April 26 – 14:50 ET) – IPC Financial Network Inc. is reporting its second quarter results for the three months ended February 29, 2000.

The results are slightly better than management’s expectations, showing a loss of $0.3 million, compared to net income of $0.07 million in the second quarter of fiscal 1999. Included in the results is amortization expense of $0.85 million, compared to $0.02 million in the same quarter of 1999.

Revenues increased more than three times to $12.4 million, compared with $4.0 million in the second quarter of fiscal 1999. EBITDA of $0.68 million was more than five times the EBITDA in the same quarter of 1999.

Shareholders’ equity increased to $39.0 million at the end of Q2 from $10.3 million at the end of the second quarter of fiscal 1999. Of this increase, $6.1 million occurred in Q2, of which $4.3 million was the result of two of the company’s largest shareholders, Almasa Capital Inc. and Lawrence & Co. exercising warrants to purchase common shares of the company.

“The second quarter shows a significant increase in overall revenue, margins and EBITDA. The increased revenue is partially attributed to stronger than expected mutual fund sales but is largely related to the completion of previously announced transactions. Increases in gross margin can be largely attributed to the success of the company’s Senior Associate Share Proram and the company’s ability to attract high calibre Financial Planners. Finally, increases in EBITDA are due to the synergies realized from integration of the newly acquired companies and continued efforts in leveraging the capabilities of its distribution network,” Steve Meehan, CEO, said in a press release.
-IE Staff