IPC Financial Network Inc. reported a loss of $2.4 million for the third quarter of 2002, up more than 7% from the loss of a year ago, while revenues jumped more than 20% to $24.4 million for the period.
The Toronto-based financial planning company said its loss for the three months ended May 31 was up from $2.2 million in 2001. On a per-share basis, the loss in both years was 4¢.
IPC attributed part of the loss to amortization expense of $2.8 million vs $2.3 million a year earlier. For the nine months ended May 31, the loss was $8 million (13¢ per share) vs a loss of $6.3 million (13¢) for 2001.
IPC said the jump in revenues was the result of growth from the company’s existing businesses and the impact of recent acquisitions. Year-earlier revenues were $20.3 million. For the nine-month period, revenues were $66.0 million in 2002 vs $56.4 million for the same period last year.
Assets as of May 31, 2002 totalled $131.0 million, while shareholders’ equity was $74.6 million.
Profits before operating expenses increased to $8.1 million in Q3 from $5.4 million in the same period last year. The company said that was due mainly to higher margins earned in the company’s mutual fund, banking, and insurance businesses, as well as additional income from refinancing the company’s deferred sales commissions payable on mutual funds sold by Counsel Wealth Management. For the nine months, gross profit was $20.6 million up from $14.4 million for the same period last year.
Eearnings before interest, amortization and income taxes were $0.8 million in Q3 vs $0.2 million in 2001; for the nine months, EBITDA was $1.1 million vs a loss of $0.1 million a year earlier.
“Management is quite pleased with the company’s financial results for this period,” IPC CEO Steve Meehan said in a news release. “We have seen continued progress in our business model, which has enabled us to produce strong results in these turbulent stock markets. Much of that success can be attributed to the integration of our previous acquisitions and the continued growth of our subsidiary businesses, in particular Counsel Wealth Management, which has achieved net sales of $124.7 million in the third quarter.”