Hub Up 27% For The Quarter

Hub reported a 30 percent increase in revenues for all of 2003, but the chairman of the firm said he is dissatisfied with the results and gives his company a ?B' grade in its performance.

The results reflected strong across-the-board growth in commissions, fees and interest income. Still, Martin P. Hughes, the Chicago-based firm's chairman and chief executive officer, said in an analysts conference call, "We can do better than that."

For the year, Hub reported revenues increased $66 million, going from $220 million to $286 million. Diluted net income increased 21 percent, or $6.6 million, going from $32 million, or $1.06 a share, to $38.5 million, or $1.14 a share.

Core commissions, which provide 91 percent of the firm's income, increased 29 percent to $259.5 million from $201 million for the year. The firm, which has a number of Canadian offices, said it was also helped by the strength of that country's currency.

Insurance premiums remain harder in Canada than the U.S., said Mr. Hughes, and the economy there did not fall into the deep recession the U.S. did, which also helped business. He said, however, that Hub expects business to soften as it is doing in sectors of the United States.

The firm plans to take a charge in the first quarter of next year of $2.6 million as it changes the name of all its acquired businesses from their local identity to Hub. The move is to reflect more centralization of management as it continues to acquire more firms as part of its growth strategy.

For 2004, the firm gave an earning guidance of between $1.18 and $1.22 a share.

Hub also announced it would pay a quarterly dividend of 5 cents a share payable on April 30 to shareholders of record as of April 15.