EXHIBIT 99.1
Hub International Increases Quarterly Revenue and Net Margin;
Broker Posts 6% Organic Growth as Rates Moderate
CHICAGO--(BUSINESS WIRE)--July 29, 2004--Hub International Limited
(NYSE:HBG)(TSX:HBG):
-- 2Q revenue increases 11% while net earnings increase 15%
-- First half revenue increases 13% while net earnings increase
12%
-- Company posts 6% organic growth for quarter, 9% YTD
-- Full-year earnings guidance updated
Hub International Limited (NYSE:HBG)(TSX:HBG) reported today that
strong organic growth and operating efficiencies led to higher
revenue, net earnings and margins in the second quarter ended June 30,
2004.
Revenue increased 11% to $82.2 million from $74.2 million a year
earlier, bolstered by an organic growth rate--comparable to same store
sales--of 6% along with the contribution of recently acquired units,
including Bush, Cotton & Scott. Net earnings increased 15% to $11.6
million, or $0.35 per diluted share, versus $10.1 million, or $0.31
per diluted share, in the same period of 2003.
"Second quarter improvements were particularly strong in
comparison to more recent quarters, considering that rate increases
continued to moderate and we obtained only a one percentage point
benefit from a stronger Canadian dollar," said Martin P. Hughes,
chairman and chief executive officer. "We are encouraged by the
overall performance of our operating units."
In reviewing second quarter results, Hughes noted that commission
income increased 11% to $77.0 million from $69.4 million, while
contingent commissions and volume overrides--additional payments made
by insurers on the basis of profitability and volume--increased 5% to
$3.0 million from $2.9 million. Other income, including fees,
increased 22% to $2.2 million from $1.8 million a year ago.
In the United States, second quarter revenue increased 14% to
$50.7 million from $44.7 million, including organic growth of 4%.
Commissions increased 13% to $46.8 million from $41.3 million, while
contingent commissions and volume overrides remained constant at $2.2
million. Other income, including fees for risk management services,
investment income and other items increased 43% to $1.7 million from
$1.2 million in 2003.
Canadian revenue increased 7% to $31.5 million in the second
quarter of 2004 from $29.5 million in the same period of 2003,
including a three percentage point impact from foreign exchange rate
increases. Organic growth was a strong 9%, or 6% when foreign exchange
impacts are eliminated. Commissions increased 7% to $30.1 million from
$28.1 million, while contingent commissions and volume overrides
increased 22% to $0.8 million from $0.7 million. Other income
decreased 17% to $0.6 million from $0.7 million in 2003.
Cash compensation increased 6% to $42.1 million from $39.9
million, while non-cash stock based compensation grew 35% to $1.7
million from $1.3 million in the second quarter of 2003. As a
percentage of revenue, cash compensation expense decreased to 51% from
54% a year earlier, benefiting from both expense control and
previously reported changes in Hub's management bonus plan. The
increase of non-cash stock based compensation expense reflects
amortization of restricted share units granted in the first quarter of
2004 as part of the change in the company's management bonus plan.
Selling, occupancy and administration expenses increased 17% to $16.1
million, or 20% of revenue, from $13.8 million, or 19% of revenue, a
year earlier.
Hub's pre-tax income increased 19% to $18.6 million, or 23% of
revenue, from $15.6 million, or 21% of revenue, a year earlier, while
the company's effective income tax rate increased to 38% from 35% for
2003. The most recent tax rate of 38% is in line with the company's
previous guidance of 36% to 39%.
As a result, net earnings increased 15% to $11.6 million or $0.35
per diluted share, from $10.1 million, or $0.31 per diluted share, in
the second quarter of 2003. Foreign exchange impacts added less than
$0.01 per diluted share to net earnings in the second quarter, while
the company benefited from a gain of approximately $0.02 per diluted
share on the sale of two smaller operations in Canada. Weighted
average diluted shares outstanding grew 3% to 34.9 million shares from
33.9 million shares, primarily due to the issuance of restricted share
units in the first quarter of 2004.
Revenue and Earnings Grow in First Half
For the first half of 2004, revenue increased 13% to $161.6
million from $143.0 million in 2003, benefiting from a 9% organic
growth rate and the contribution of acquired operations. Foreign
exchange benefits added about three percentage points of the
first-half increase in revenue. Net earnings increased 12% to $21.2
million, or $0.64 per diluted share, versus $19.0 million, or $0.59
per diluted share in the first half of 2003. During the first quarter,
the company recognized a non-cash charge of $2.6 million (pre-tax) or
approximately $0.05 net per diluted share, as the company wrote off
trademarks as part of a corporate branding initiative.
Commission income increased 12% to $138.6 million from $124.0
million, while contingent commissions and volume overrides--additional
payments made by insurers on the basis of profitability and volume
- --increased 18% to $18.1 million from $15.3 million. Other income,
including fees for risk management services, investment income and
other items, increased 30% to $4.9 million from $3.8 million a year
ago.
In the United States, first-half revenue increased 11% to $99.5
million from $90.0 million, including organic growth of 4%.
Commissions increased 10% to $83.9 million from $76.3 million, while
contingent commissions and volume overrides increased 8% to $11.8
million from $11.0 million. Other income increased 40% to $3.7 million
from $2.7 million in 2003.
Canadian revenue increased 17% to $62.1 million in the first half
of 2004 from $53.1 million in the same period of 2003, with an organic
growth rate of 18%. Approximately nine percentage points of the
first-half growth in Canadian revenue resulted from strengthening of
the Canadian dollar against the U.S. dollar. Commissions increased 15%
to $54.7 million from $47.7 million, while contingent commissions and
volume overrides increased 46% to $6.2 million from $4.3 million.
Other income increased 7% to $1.2 million from $1.1 million in 2003.
Six-month cash compensation expense increased 8% to $82.8 million
from $76.9 million, while non-cash stock based compensation grew 49%
to $3.3 million from $2.2 million in the first six months of 2003. As
a percentage of revenue, cash compensation expense decreased to 51%
from 54% a year earlier, reflecting the benefits of higher contingent
commissions, which do not have payroll cost associated with them, and
changes to the company's management bonus plan. Selling, occupancy and
administration expenses increased 18% to $31.6 million, or 20% of
revenue, from $26.9 million, or 19% of revenue, a year earlier.
Hub's pre-tax income increased 12% to $33.5 million, or 21% of
revenue, from $29.9 million, or 21% of revenue, a year earlier, while
the company's effective tax rate remained relatively unchanged at
36.6% versus 36.4% for the first six months of 2003. As a result, net
earnings increased 12% to $21.2 million, or $0.64 per diluted share,
from $19.0 million or $0.59 per diluted share, in 2003. The weighted
average number of diluted shares outstanding grew 3% to 34.7 million
shares from 33.6 million shares, similar to the second quarter 2004
increase.
Talbot Acquisition Expands Revenue Base, Reduces GAAP Earnings
Expectations
Hub has made substantial progress in expanding its U.S. footprint
during 2004, announcing two major acquisitions that increase the
company's penetration of the Southwest and Western United States. As
previously reported, the second quarter acquisition of Seattle-based
Bush, Cotton & Scott, L.L.C., adds approximately $9 million to Hub's
annual revenue base and is expected to be accretive to earnings.
On July 1, 2004, Hub completed the largest acquisition in its
history, closing on the purchase of Talbot Financial Corporation,
based in Albuquerque, New Mexico, from Safeco Corporation. Talbot adds
approximately $100 million to Hub's revenue base on an annualized
basis and brings a skilled management team to continue the company's
growth.
"Talbot has strong concentration of middle market clients in the
West, Southwest and Mountain States, which is similar to the rest of
Hub's U.S. operations, and many of their key insurer relationships are
also important insurers for Hub," Hughes said. "The management team is
committed to building revenue and closing the gap between Talbot's and
Hub's profitability levels. Based on results for the first six months
of 2004, it is anticipated that Talbot's combined cash compensation,
selling, occupancy, administration and depreciation costs will be in
the range of 78%-80% of revenue for the year. In 2003, the comparable
percentage for Hub was 76.5%."
Hughes noted that Talbot's margins are higher in the first half of
the year than in the second half, due to the benefits of contingent
commissions and volume overrides--which have no payroll cost
offset--in the first and second quarters.
"Talbot has talented staff, strong customer relationships and the
potential to build its efficiency and profit margins as a part of
Hub," Hughes said. "We are very enthusiastic about this acquisition."
Although Talbot is expected to grow and build its efficiency, the
accounting treatment for the Talbot acquisition will yield a negative
effect on Hub's GAAP earnings, the effective tax rate and non-cash
stock based compensation expense through 2007. This negative impact
results from the structure of the transaction, Hughes noted.
Hub invested $90 million to purchase all of the common shares of
Satellite Acquisition Corporation, a corporation formed by senior
management at Talbot. In turn, Satellite purchased 100% of Talbot from
Safeco for $90 million in cash. Hub will purchase Talbot management's
special shares of Satellite over the next three years, using a
combination of both restricted and unrestricted common shares of Hub.
Payments will be made September 31, 2005, March 31, 2006 and March 31,
2007 and will be based upon Talbot's earnings for the twelve month
periods ending December 31, 2004, 2005 and 2006, respectively.
Because Talbot's management team did not have an ownership stake
in Talbot prior to the transaction, the common stock issued to them by
Hub is recorded as a charge to earnings in the form of non-cash stock
based compensation expense. In a more traditional acquisition
structure, the management team would exchange its own equity for Hub
shares and the transaction would not impact the income statement.
Hub previously disclosed an amount of $26 million as the minimum
anticipated non-cash stock based compensation to be paid out over a
three-year period to Talbot management, with indications that the
actual amount could rise beyond the $40 million range if profitability
goals are attained. Based on Talbot's financial performance through
the first half of 2004 and further improvements anticipated through
2006, the company anticipates earn out payments could possibly reach
the $45-$50 million range.
"Although increased non-cash stock based compensation expense will
reduce Hub's reported earnings under GAAP, such increases will also
reflect a growing revenue and earnings base for Talbot," Hughes said.
"In addition, higher earn out payments reduce the relative cost of the
acquisition on an earnings-multiple basis," Hughes added. "Our
acquisition discipline is to purchase companies at a 5-7 multiple of
EBITDA (earnings before interest, taxes, depreciation and
amortization) and this acquisition meets that standard. Consequently,
we are confident this investment will be highly rewarding."
(Please see more detailed insights regarding the Talbot
acquisition in the supplemental table attached to this earnings
release.)
Hub Updates Outlook and Guidance for 2004
Reflecting the expected impact of Talbot, Bush Cotton & Scott,
other recent acquisitions and divestitures, and financial performance
through the first half, Hub updated its earnings guidance for 2004 to
a range of $0.80 - $0.84 per diluted share. This updated guidance
compares with prior guidance of $1.13-$1.17 per diluted share and 2003
reported earnings of $1.14 per diluted share.
GUIDANCE REFLECTING
IMPACT OF TALBOT
- ----------------------------------------------------------------------
Diluted EPS Guidance Excluding Talbot $1.13-$1.17
- ----------------------------------------------------------------------
EPS impact of Talbot earnings (July - December '04)
excluding non-cash stock based compensation $0.03-$0.05
- ----------------------------------------------------------------------
Non-cash stock based compensation ($0.36)-($0.38)
- ----------------------------------------------------------------------
Updated 2004 Hub Diluted EPS Guidance $0.80-.$0.84
- ----------------------------------------------------------------------
"We are maintaining our underlying forecast for the full year,
while conservatively increasing our guidance $0.03 to $0.05 per
diluted share for the impact of Talbot, excluding the impact of
non-cash stock based compensation," Hughes said. "Rates have moderated
in the United States and softened more rapidly than expected in
Canada. In addition, we are now beginning to integrate the largest
acquisition in our history. At the same time, we expect Talbot's
operations to be accretive in the second half of this year, excluding
the impact of non-cash stock based compensation and we are achieving
good results across North America. Looking forward, we expect that
Talbot's operations will be more accretive (excluding non-cash stock
based compensation) to our earnings on a full year basis, as Talbot
historically has generated a disproportionate amount of its earnings
in the first half of the year. Based on historical patterns and actual
results for Hub and Talbot for the first six months of 2004, we
estimate that Talbot's operations would have added approximately $0.17
- - $0.21 to our diluted EPS for 2004, excluding any impact of non-cash
stock based compensation, if we had owned Talbot for the entire year.
Conference Call and Webcast Scheduled
Hub International will discuss financial results and updated
guidance on a conference call scheduled for 9:30 a.m. (CT), 10:30 a.m.
(ET) today, July 29, 2004. This call is being webcast by Thompson/CCBN
and can be accessed at Hub International's web site at
www.hubinternational.com. The webcast is also being distributed
through the Thomson StreetEvents Network to both institutional and
individual investors. Individual investors can listen to the call at
www.fulldisclosure.com, Thomson/CCBN's individual investor portal,
powered by StreetEvents. Institutional investors can access the call
via Thomson's password-protected event management site, StreetEvents
(www.streetevents.com).
Headquartered in Chicago, IL, Hub International is a leading North
American insurance brokerage that provides a broad array of property
and casualty, life and health, employee benefits, investment and risk
management products and services through offices located in the United
States and Canada.
This press release may contain forward-looking statements which
reflect our current views with respect to future events and financial
performance. These forward-looking statements relate, among other
things, to our plans and objectives for future operations and are
subject to uncertainties and other factors that could cause actual
results to differ materially from such statements. These uncertainties
and other factors include, but are not limited to, risks associated
with implementing our business strategies, identifying and
consummating acquisitions, integrating acquired brokerages, attaining
greater market share, developing and implementing effective
information technology systems, recruiting and retaining qualified
employees, fluctuations in the premiums charged by insurance companies
with corresponding fluctuations in our premium-based revenue, any loss
of services of key executives, industry consolidation, increased
competition in the industry, fluctuations in the demand for insurance
products and the passage of new legislation subjecting our business to
regulation in jurisdictions where we operate. We caution readers not
to place undue reliance on these forward-looking statements, which
speak only as of the date of this press release. Additional
information regarding these risks and other factors that could cause
Hub International's actual results to differ materially from our
expectations is contained in the company's filings with the Securities
and Exchange Commission and the Canadian securities commissions.
Except as otherwise required by federal securities laws, Hub
International undertakes no obligation to publicly update or revise
any forward-looking statements, whether as a result of new
information, future events or otherwise.
HUB INTERNATIONAL LIMITED
Consolidated Organic Growth
For the three months and six months ended June 30, 2004
(in thousands of U.S. dollars, except percentages)
Net
Revenue Adjustments
------------------ Total For Organic
Second quarter Total Growth (Acquisitions) Growth
2004 2003 Change ($) (%) And Disposals (%)
----------------------------------------------------------
Total
- ------------
Commission
Income $76,960 $69,442 $7,518 11% $(3,418) 6%
Contingent
Commissions
and Volume
Overrides 3,038 2,889 149 5% (64) 3%
Other Income 2,233 1,824 409 22% (299) 6%
----------------------------------------------------------
Total $82,231 $74,155 $8,076 11% $(3,781) 6%
----------------------------------------------------------
USA
- ------------
Commission
Income $46,843 $41,307 $5,536 13% $(3,892) 4%
Contingent
Commissions
and Volume
Overrides 2,189 2,195 (6) 0% (64) -3%
Other Income 1,670 1,170 500 43% (318) 16%
----------------------------------------------------------
Total $50,702 $44,672 $6,030 14% $(4,274) 4%
----------------------------------------------------------
Canada
- ------------
Commission
Income $30,117 $28,135 $1,982 7% $474 9%
Contingent
Commissions
and Volume
Overrides 849 694 155 22% - 22%
Other Income 563 654 (91) -17% 19 -11%
----------------------------------------------------------
Total $31,529 $29,483 $2,046 7% $493 9%
----------------------------------------------------------
Net
Revenue Adjustments
------------------ Total For Organic
First six months Total Growth (Acquisitions) Growth
2004 2003 Change ($) (%) And Disposals (%)
----------------------------------------------------------
Total
- ------------
Commission
Income $138,589 $123,983 $14,606 12% $(4,704) 8%
Contingent
Commissions
and Volume
Overrides 18,075 15,266 2,809 18% (65) 18%
Other Income 4,916 3,783 1,133 30% (681) 12%
----------------------------------------------------------
Total $161,580 $143,032 $18,548 13% $(5,450) 9%
----------------------------------------------------------
USA
- ------------
Commission
Income $83,935 $76,293 $7,642 10% $(5,091) 3%
Contingent
Commissions
and Volume
Overrides 11,832 10,995 837 8% (65) 7%
Other Income 3,719 2,663 1,056 40% (695) 14%
----------------------------------------------------------
Total $99,486 $89,951 $9,535 11% $(5,851) 4%
----------------------------------------------------------
Canada
- ------------
Commission
Income $54,654 $47,690 $6,964 15% $387 15%
Contingent
Commissions
and Volume
Overrides 6,243 4,271 1,972 46% - 46%
Other Income 1,197 1,120 77 7% 14 8%
----------------------------------------------------------
Total $62,094 $53,081 $9,013 17% $401 18%
----------------------------------------------------------
HUB INTERNATIONAL LIMITED
Consolidated Statements of Earnings
For the three months and six months ended June 30, 2004 and 2003
(in thousands of U.S. dollars, except per share amounts)
Second quarter First six months
--------------------- ----------------------
2004 2003 2004 2003
--------------------- ----------------------
(Unaudited)(Unaudited)(Unaudited)(Unaudited)
Revenue
Commission income $76,960 $69,442 $138,589 $123,983
Contingent commissions
and volume overrides 3,038 2,889 18,075 15,266
Other 2,233 1,824 4,916 3,783
--------------------- ----------------------
82,231 74,155 161,580 143,032
--------------------- ----------------------
Expenses
Compensation 42,114 39,877 82,751 76,889
Selling, occupancy and
administration 16,086 13,808 31,639 26,914
Depreciation 1,730 1,517 3,317 2,911
Interest expense 1,702 1,516 3,362 2,883
Intangible asset
amortization 936 756 1,717 1,557
(Gain)/loss on disposal of
subsidiaries, property,
equipment and other assets (597) 65 (559) 9
Loss on write-off of
trademarks - - 2,587 -
(Gain) on put option
liability - (267) - (240)
Non-cash stock based
compensation 1,701 1,258 3,315 2,220
--------------------- ----------------------
63,672 58,530 128,129 113,143
--------------------- ----------------------
Net earnings before income
taxes 18,559 15,625 33,451 29,889
--------------------- ----------------------
Provision for income tax
expense
Current 4,992 3,604 11,730 9,265
Future 1,976 1,912 507 1,611
--------------------- ----------------------
6,968 5,516 12,237 10,876
--------------------- ----------------------
Net earnings 11,591 10,109 21,214 19,013
Interest on subordinated
convertible debentures 475 472 950 943
Dividends in lieu of
restricted share units 65 40 65 40
--------------------- ----------------------
Diluted net earnings $12,131 $10,621 $22,229 $19,996
--------------------- ----------------------
--------------------- ----------------------
Earnings per share
Basic $0.38 $0.34 $0.70 $0.65
Diluted $0.35 $0.31 $0.64 $0.59
Weighted average shares
outstanding
- Basic (000's) 30,189 29,326 30,102 29,326
Weighted average shares
outstanding
- Diluted (000's) 34,905 33,930 34,711 33,632
HUB INTERNATIONAL LIMITED
Consolidated Balance Sheets
As of June 30, 2004 and December 31, 2003
(in thousands of U.S. dollars)
2004 2003
--------- ---------
(Unaudited)
Assets
Current assets:
Cash and cash equivalents $144,527 $82,052
Trust cash 57,207 54,534
Accounts and other receivables 174,119 163,728
Income taxes receivable 5,634 6,768
Future income taxes 3,452 2,865
Prepaid expenses 7,911 4,449
--------- ---------
Total current assets 392,850 314,396
Goodwill 311,935 305,862
Other intangible assets 46,538 42,903
Property and equipment 23,354 24,181
Future income taxes 6,997 6,458
Other assets 6,784 6,803
--------- ---------
Total assets $788,458 $700,603
--------- ---------
--------- ---------
Liabilities and Shareholders' Equity
Current liabilities:
Accounts payable and accrued liabilities $226,556 $226,168
Income taxes payable 2,520 3,804
Future income taxes 490 114
Current portion long-term debt and capital leases 2,428 3,362
--------- ---------
Total current liabilities 231,994 233,448
Long-term debt and capital leases 140,467 75,437
Subordinated convertible debentures 35,000 35,000
Future income taxes 14,883 13,928
--------- ---------
Total liabilities 422,344 357,813
--------- ---------
Commitments and Contingencies
Shareholders' equity
Share capital 258,638 254,845
Issuable shares 940 721
Contributed surplus 9,589 4,806
Cumulative translation account 16,420 20,062
Retained earnings 80,527 62,356
--------- ---------
Total shareholders' equity 366,114 342,790
--------- ---------
Total liabilities and shareholders' equity $788,458 $700,603
--------- ---------
--------- ---------
HUB INTERNATIONAL LIMITED
Consolidated Statements of Cash Flows
For the three months and six months ended June 30, 2004 and 2003
(in thousands of U.S. dollars)
Second quarter First six months
--------------------- ----------------------
2004 2003 2004 2003
--------------------- ----------------------
(Unaudited)(Unaudited)(Unaudited)(Unaudited)
Operating activities
Net earnings $11,591 $10,109 $21,214 $19,013
Items not affecting
working capital:
Amortization and
depreciation 2,666 2,273 5,034 4,468
(Gain)/loss on disposal of
subsidiaries, property,
equipment and other assets (597) 65 (559) 9
Loss on write-off of
trademarks - - 2,587 -
(Gain) on put option
liability - (267) - (240)
Non-cash stock based
compensation 1,701 1,258 3,315 2,220
Future income taxes 1,976 1,912 507 1,611
Non-cash working capital
items
Trust cash (10,373) (6,154) 30 9,567
Accounts and other
receivables (60,051) (44,801) (8,773) (6,834)
Prepaid expenses (3,520) (2,435) (3,366) (3,724)
Accounts payable and
accrued liabilities 67,209 55,105 (2,925) 4,277
Other assets 128 (2,420) 256 (2,320)
Income taxes (1,566) (4,662) (176) (2,844)
--------------------- ----------------------
Net cash flows from
operating activities 9,164 9,983 17,144 25,203
--------------------- ----------------------
Investing activities
Property and equipment -
purchases (1,465) (1,458) (2,850) (3,036)
Property and equipment -
proceeds on sale 14 20 81 27
Purchase of
subsidiaries, net of
cash received (11,621) (1,161) (11,878) (12,385)
Sale of subsidiaries 3,929 160 3,929 451
Other assets (302) (705) 255 (721)
--------------------- ----------------------
Net cash flows used for
investing activities (9,445) (3,144) (10,463) (15,664)
--------------------- ----------------------
Financing activities
Long-term debt -
advances 65,000 65,000 65,000 65,000
Long-term debt and
capital leases -
repayments (3,680) (50,597) (4,690) (51,313)
Share capital - issued
for cash, net of issue
costs 412 - 480 (32)
Dividends paid (3,043) (3,038) (3,043) (3,038)
--------------------- ----------------------
Net cash flows from
financing activities 58,689 11,365 57,747 10,617
--------------------- ----------------------
Effect of exchange rate
changes on cash and cash
equivalents (1,185) 1,651 (1,953) 2,280
--------------------- ----------------------
Change in cash and cash
equivalents 57,223 19,855 62,475 22,436
Cash and cash equivalents
- Beginning of period 87,304 43,223 82,052 40,642
--------------------- ----------------------
Cash and cash equivalents
- End of period $144,527 $63,078 $144,527 $63,078
--------------------- ----------------------
--------------------- ----------------------
EARNOUT CALCULATION AND EXPENSE
Talbot's management team will receive Hub common stock valued at
2.1 times the value of Talbot's average annual EBITA profitability
levels (earnings before interest, taxes and amortization) achieved in
the three year period ending December 31, 2006. Payments will be
amortized over varying periods, commencing with the acquisition
closing date of July 1, 2004. The following table indicates possible
ranges of non-cash stock based compensation expense if specific levels
of average EBITA are achieved during the three-year period ended
December 31, 2006. The table also combines these payments with the
cash payment made to Safeco for the Talbot purchase to determine both
the total consideration paid for the acquisition and the purchase
amount as a multiple of EBITA levels.
The EBITA amounts set forth in the table below are for
illustrative purposes only. Actual EBITA achieved by Talbot may be
higher or lower than the amounts set forth in the table.
3-YEAR 3-YEAR 3-YEAR 3-YEAR
AVERAGE AVERAGE AVERAGE AVERAGE
EBITA OF EBITA OF EBITA OF EBITA OF
$20 MILLION $22 MILLION $24 MILLION $26 MILLION
- ----------------------------------------------------------------------
Amount paid to Safeco
7/1/2004 $90.0 $90.0 $90.0 $90.0
million million million million
- ----------------------------------------------------------------------
Non-cash stock based
compensation to
Talbot management $42.0 $46.2 $50.4 $54.6
million million million million
- ----------------------------------------------------------------------
Total consideration $132.0 $136.2 $140.4 $144.6
million million million million
- ----------------------------------------------------------------------
Acquisition multiple 6.6 6.3 5.9 5.6
- ----------------------------------------------------------------------
Note: The specific number of shares to be issued to Talbot
management and the specific amount of non-cash stock based
compensation expense will vary by reporting period and the average
price of Hub common stock at various measurement points. Additional
non-cash stock based compensation earned by Talbot management will be
accrued and paid according to varying schedules, depending on the
period in which it is earned.
CONTACT: Hub International Limited
Media Contact:
Dennis J. Pauls, 312-279-4880
Vice President and CFO
email: dpauls@hubinternational.com
or
Rosenbaum Advisors
Investor Contact:
Michael Rosenbaum, 847-749-1010
email: michael@rosenbaumadvisors.com