Richmond, Va.-based Hilb Rogal & Hobbs Company reported net income declined 6.5 percent, reflecting reduced contingent commissions and a new accounting treatment.
Net income for the quarter decreased $1.8 million, to $25.9 million, or 71 cents per share, compared with $27.7 million, or 76 cents per share, in the first quarter of 2005. Total revenues were $183.8 million, compared with $183.3 million in the 2005 first quarter.
The brokerage's lower operating net income reflected reduced contingent commissions of $3.6 million, and the new accounting treatment for stock-based compensation resulted in $1.7 million of additional compensation expense for the 2006 first quarter, the company said.
Commissions and fees were $180.4 million for the quarter, compared with $180.3 million for the same period in 2005. Organic growth, which excluded contingent and override commissions, was 2.2 percent for the 2006 first quarter.
"Our financial performance in the quarter continued to reflect our investment in strategic talent that began last year," said Martin L. "Mell" Vaughan III, chairman and chief executive officer, in a statement last week. "The improvement in our organic growth (ex-contingents) is early evidence that we are headed in the right direction."
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