Loring Ward International Ltd. experienced net income of US$1.1 million for the second quarter ended June 30, an improvement of US$0.6 million or 107.5% over the corresponding period for 2005.
Earnings per share for the quarter grew to US$0.12, representing an increase of 103.2% over the prior year. These results were caused primarily by improvements in the company’s asset management and advisory services segment, mainly due to a 38% increase in client assets under management in combination with expense control achievements resulting in operating margin of 24.5% vs. 15.3% in the prior year. Results also include the following as compared to the second quarter of 2005.
Client assets under management totalled US$4.0 billion, up US$1.1 billion or 38%; revenue was US$18.9 million, a decrease of US$0.2 million or 1.2 %. Although revenue from the asset management and advisory services segment increased US$2.1 million or 26.1%, revenue from the business and financial management segment decreased US$0.7 million or 8.1% and revenue from the sports representation segment declined US$1.6 million or 68.8% as a result of the company reducing its involvement in this segment in 2005;
Corporate costs were US$2.4 million, a reduction of US$0.8 million or 26.1% and operating income decreased by US$1.4 million or 26.2%. The US$1.2 million or 101.8% increase in operating income from the company’s asset management and advisory services segment was more than offset by reduced operating income in the business and financial management segment, as well as the sports representation segment as a result of the company reducing its involvement in this segment in 2005. Included in Other Income is US$1.1 million related to a litigation settlement.
“We intend to continue expanding our investment in and focus on our core growth segment, Asset Management & Advisory Services, building on the momentum we are experiencing in this business, while managing down operating expenses and corporate costs.” stated Robert Herrmann, CEO of Loring Ward International Ltd.