Exhibit 99.4
HUB INTERNATIONAL LIMITED
Unaudited Pro Forma Consolidated Statement of Earnings (1)
For the year ended December 31, 2002 | |||||||||||||
Hub International | Fifth Third Insurance | ||||||||||||
Limited | Services, Inc. | Pro Forma | |||||||||||
(in thousands of U.S. dollars, except per share amounts) | |||||||||||||
Revenue | |||||||||||||
Commission income | $ | 200,792 | $ | 24,164 | $ | 224,956 | |||||||
Contingent commissions and volume overrides | 11,464 | 1,606 | 13,070 | ||||||||||
Other | 7,704 | 287 | 7,991 | ||||||||||
219,960 | 26,057 | 246,017 | |||||||||||
Expenses | |||||||||||||
Compensation | 118,678 | 15,228 | 133,906 | ||||||||||
Selling, occupancy and administration | 44,932 | 3,366 | 48,298 | ||||||||||
Depreciation | 5,492 | 229 | 5,721 | ||||||||||
Interest expense | 7,317 | — | 7,317 | ||||||||||
Goodwill and other intangible asset amortization | 1,671 | 42 | 1,713 | ||||||||||
Gain on disposal of investment held for sale, property, equipment and other assets | (2,679 | ) | — | (2,679 | ) | ||||||||
Gain on put option liability | (186 | ) | — | (186 | ) | ||||||||
Non-cash stock option compensation | 1,078 | — | 1,078 | ||||||||||
176,303 | 18,865 | 195,168 | |||||||||||
Net earnings before income taxes | 43,657 | 7,192 | 50,849 | ||||||||||
Provision for income tax expense | 14,256 | 2,877 | 17,133 | ||||||||||
Net earnings | $ | 29,401 | $ | 4,315 | $ | 33,716 | |||||||
Interest on subordinated convertible debentures | 2,520 | — | 2,520 | ||||||||||
Net diluted earnings | $ | 31,921 | $ | 4,315 | $ | 36,236 | |||||||
Earnings per share | |||||||||||||
Basic | $ | 1.27 | $ | 0.19 | $ | 1.45 | |||||||
Diluted | $ | 1.06 | $ | 0.14 | $ | 1.20 | |||||||
Weighted average shares outstanding — Basic (000’s) | 23,181 | 23,181 | 23,181 | ||||||||||
Weighted average shares outstanding — Diluted (000’s) | 30,199 | 30,199 | 30,199 |
(1) | The amounts presented in our unaudited pro forma consolidated statement of earnings are prepared as follows: Hub International Limited amounts are in accordance with Canadian generally accepted accounting principles (Canadian GAAP); Fifth Third Insurance Services, Inc. amounts are in accordance with United States generally accepted accounting principles (U.S. GAAP). There are no material differences between Canadian GAAP and U.S. GAAP as it relates to the amounts for Fifth Third Insurance Services, Inc. |