Loring Ward International Ltd.

Loring Ward International Ltd.

November 09, 2005 16:35 ET

Loring Ward Reports Results for Third Quarter 2005

WINNIPEG, MANITOBA--(CCNMatthews - Nov. 9, 2005) -

Note to reporters and editors: Loring Ward's earnings conference call will be Webcast on www.ccnmatthews.com/LoringWardQ3 Thursday, November 10 at 11:00 a.m. ET. Please join us and log on five minutes before the call.

Loring Ward International Ltd. today released its financial results for the third quarter ended September 30, 2005.

Third Quarter Financial Highlights

The results for the three months ended September 30, 2005 show a $1.8 million or 50.7% increase in the Company's operating income over the same period last year. The Asset Management and Family Office segments contributed an increase of $1.5 million in operating income. The transactions concluded by the Company with respect to its Sports Representation segment in 2005 significantly reduced operating costs of that segment, resulting in an improvement of $0.3 million to operating income. Results also include the following (all figures referenced are in U.S. Dollars):

- Earnings before interest, income taxes, depreciation, and amortization ("EBITDA") were $2.1 million, up $0.5 million, a 29.4% increase from the $1.6 million reported in the third quarter of 2004. The increase in EBITDA is due to the net impact of the items noted above;

- Client assets under management totaled $3.4 billion, up $830 million, a 32.8% from the $2.5 billion reported in the third quarter of 2004;

- Revenue for the quarter was $20.3 million, an increase of $1.5 million or 8% over the $18.8 million reported for the same period a year ago. All segments contributed to growth in revenues with the exception of the Sports Representation segment; and

- Net earnings for the quarter were $0.7 million, up $0.4 million or 102.8% from the $0.3 million reported in the corresponding period in 2004.

Third Quarter Operational Highlights

Highlights for the third quarter focused on the transition of the Company's remaining executive responsibilities and corporate functions from Canada to the United States and positioning the Company for growth going forward. Highlights included:

- reaching an agreement in principle to sell certain assets of its Canadian wealth management business to a company controlled by a related party;

- essentially completing the transition of corporate staffing to the United States;

- continuing to actively seek ways to streamline operations and improve efficiency;

- consolidation of the Company's common stock on the basis of one (1) share for each ten (10) shares completed on August 9, 2005; and

- election of Donald J. Herrema as Chairman of its Board of Directors.

Continuing as Canadian Corporation

At Loring Ward's 2005 Annual Meeting, shareholders authorized the Board, if it so determines, to seek continuance of the Company as a U.S. Corporation. The Board has determined that it is in the best interest of the Company and shareholders to remain a Canadian unlisted public company at the present time. Continuing as a Canadian company allows us to remain a public entity at a cost that is reasonable for a company of our size; particularly relative to U.S. regulatory costs. As a result of this decision, we will be evaluating the benefits of a stock exchange listing in Canada in an effort to increase the potential for improved liquidity for shareholders and to enhance our access to the capital markets.

"During the past nine months we have been working on a variety of initiatives to focus our organization and position us for growth going forward. These efforts are concentrated on improving our operational efficiency, enhancing our product and service offering and seeking to add value to each client's experience with Loring Ward," said Donald J. Herrema, Chairman and Chief Executive Officer. "While we are satisfied with our progress so far, there is more to be accomplished and we are striving to do so."

About Loring Ward

Loring Ward International Ltd. provides wealth, career and life management services to some of America's most enterprising and successful individuals and families, primarily through its Family Office and Advisor Services businesses. It is an unlisted Canadian public company with principal operating subsidiaries in California and New York. The company's U.S. corporate offices are headquartered in New York. For more information, please visit www.loringward.com.

This document contains forward-looking statements relating to the Company's objectives and strategies, as well as statements of our beliefs, plans, expectations and intentions. These statements are not guarantees of future performance and may involve uncontrollable and unforeseen risks and uncertainties. Actual outcomes and results may differ materially because of many factors, including those discussed in this report and other public filings. Consequently, readers should not place any undue reliance on such forward-looking statements. In addition, these forward-looking statements relate to the date on which they are made. The Company disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.

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