Lindsey Morden Group Reports Q1 Net Loss

May 5, 2003

Toronto’s Lindesy Morden Group, a leading global provider of independent insurance claims services, announced a first quarter net loss of $1.991 million, compared to a $7.940 loss for the same period last year.

The company had gross revenues of $111.117 million during the period and operating costs of $109.276 million. It said that although there was little growth in its Canadian and U.S. operations, increased revenues from the U.K. and Europe were responsible for an approximate increase of 1 percent, or $1.2 million.

“After interest and income taxes, the Company’s net loss for the quarter was $2.0 million ($0.14 loss per share) compared to a loss of $7.9 million ($0.56 loss per share) in first quarter 2002, ” said the announcement. “Results for first quarter 2002 included other expenses of $9.9 million related to legal settlement expenses that included an amount to settle a claim brought against the Company by Eastgate Group Limited. No such non-recurring items were incurred in first quarter 2003.”

The bulletin also indicated that, “Free cash flow for the quarter (defined as cash flow from continuing operations less net capital expenditures after excluding restructuring and Eastgate litigation costs paid) was negative $8.1 million ($0.59 per share) compared to negative $0.7 million ($0.05 per share) for first quarter 2002.”

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