Cunningham Lindsey Group Inc. consolidated revenue for the quarter ended March 31 increased by approximately $12.9 million to $116.8 million compared to revenue of $103.9 million the quarter ended March 31, 2006.

Net earnings for the first quarter of 2007 were $2.5 million ($0.11 per share) compared to a net loss of $1.5 million ($0.07 loss per share) for the first quarter of 2006. Net earnings for the first quarter of 2007 included an after-tax profit of $1.7 million from the sale of our European headquarters building in Amsterdam.

International operations and operations in Europe and the Britain reported improvements in revenue compared to the first quarter of 2006, which was in part, due to the strengthening of the British pound against the Canadian dollar relative to the first quarter of 2006. However, operations in Canada and the U.S. reported declines in revenue compared to the first quarter of 2006.

“CLGI had an improved first quarter of 2007 compared to the same period in 2006,” stated Jan Christiansen, president and CEO of Cunningham Lindsey Group Inc. “A number of our operating subsidiaries are benefiting from an increase in their core claims volumes, which I attribute to our ongoing commitment to quality. As well, our focus on profitability is beginning to be reflected in our results.

“Our Canadian operations increased their operating earnings in the first quarter of 2007 compared to the same period in 2006, due to cost reductions and returns on their investments in people and technology made in 2006,” he added.

“Our U.S. operations continued their strong growth performance in non-catastrophe related work, but the lack of hurricanes in the fall of 2006 did impact their financial results. Our U.S. operations continue to focus on reducing their infrastructure costs,” Christiansen noted.

“Our British operations had an outstanding first quarter of 2007. Their growth in local currency revenue and earnings for the first quarter was driven by an increase in normal claims volume and claims from the windstorms in January 2007,” he stated.

“Our European operations had mixed results for the first quarter of 2007,” he went on to say. “CL Europe closed the sale of their headquarters, which generated a $2.4 million pre-tax profit. Our Netherlands office benefited from the windstorms in January 2007, and generated increased operating earnings on slightly less revenue compared to the same period in 2006. However, CL Europe’s overall performance was impacted by a $0.7 million cost to close down a local office in France.

“CL International performed well, in spite of the lack of significant catastrophe events. CL International had strong revenue from their operations in the United States in the first quarter of 2007 and opened a new office in Abu Dhabi, in continuance of their efforts to develop their operations in the Middle East region,” Christiansen concluded.