Hub International: Earnings Up 319%

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NU Online News Service, Aug. 9, 3:20 p.m.EST?Insurance broker Hub International reported asecond-quarter income jump of 319 percent over 2001, fueled by thefirm's acquisition strategy and an increase in commissionincome.

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The Chicago and Toronto, Canada- based company reported that netincome for the second quarter, ending June 30 of this year, was$10.7 million. This is compared to $2.6 million for the secondquarter of 2001, an increase of $8.1 million.

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Earnings per share rose 193 percent for the same period, goingfrom 14 cents per share in 2001 to 41 cents per share in 2002.

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The results were based on revenue of $57.3 million for thesecond quarter of 2002, compared to $29.3 million for 2001, anincrease of 95 percent or $28 million.

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For the six months, net earnings increased 212 percent, or $10.7million, going from $5 million in 2001 to $15.7 million in 2002.Earnings per share increased 133 percent, the firm said, risingfrom 27 cents in 2001 to 63 cents in 2002.

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Revenues for the six months of 2002 stood at $106.8 million, up86 percent, or $49.4 million, compared to $57.4 million for the sixmonths of 2001.

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During the six-month period, Hub reported that $44.5 million ofrevenue was attributable to acquisition and $93.6 million was theresult of commission income that increased $43.1 million, or 85percent, from 2001.

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The firm also reported that its U.S. public offering of 6.9million shares in June of this year resulted in net case proceedsof $88.1 million at $14 per share.

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The firm said the public offering and the $43.5 million sale ofOld Lyme, an insurance company, enabled Hub to pay out $123 millionin bank debt, long-term debt, and a convertible subordinateddebenture.

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The firm reported total liabilities at $244 million.

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