Lindsey Morden 1-Q earnings rebound

International adjusting firm Lindsey Morden (TSX: LM), which operates in Canada as Cunningham Lindsey, saw its earnings rebound for the first quarter of 2005 to $5.2 million versus a loss of $21.1 million reported for the same period a year ago. This translates to earnings of 37 a share for the latest reporting period compared with 2004’s first quarter loss of $1.53 a share.

The company’s overall revenue rose to $109.0 million for the first quarter of 2005 (2004 1-Q: $103.6 million). Lindsey Morden’s Canadian revenue increased to $13.0 million (2004 1-Q: $11.2 million), while significant growth was seen in its “international operations” (excluding the U.S., U.K. and Europe), where revenue jumped to $16.4 million from $12.5 million a year earlier. Operating earnings in Canada rose to $354,000 for first-quarter 2005 from $186,000 in first quarter 2004. U.S. operations were able to post operating earnings of $405,000 for the latest reporting period compared with a loss of $238,000 disclosed the year prior. Significant progress was again seen in international operations, where operating revenue reached $7.1 million for the first-quarter of 2005 versus the $2.4 million reported a year ago.

The company’s turnaround was built on growth in international operations and also the end of the negative impact from discontinued and disposed operations. In the first quarter of 2004, these two factors had contributed a combined negative impact of $23.6 million.

“The first quarter profit is the result of outstanding work performed throughout the company,” says CEO Jan Christiansen. “The activity from last fall’s hurricanes in Florida and the Caribbean continues to generate positive returns and we continue to be encouraged by the market gains made by our U.S. and U.K. operations, as well as the progress of the reorganization of our operations in the Netherlands.”