National Financial Partners has reported a net loss of $515.8m or $12.59 loss per diluted share in the first quarter of 2009, compared to a net income of $8.5m or $0.21 income per diluted share in the first quarter of 2008.
In the first quarter of 2009, the company’s revenue decreased $69.4m or 24.2% to $217m, compared to $286.4m in the first quarter of 2008.
According to the company, first quarter 2009 cash earnings was $18.1m, or $0.44 per diluted share, compared with $24.1m, or $0.59 per diluted share, in the first quarter of 2008. Cash earnings declined primarily as a result of a decline in same store revenue offset in part by lower commissions and fees, operating, management fees and general and administrative expenses.
As a percentage of revenue, first quarter gross margin declined only slightly to 17.0% from 17.3% in the prior year period, despite the revenue decline. As a percentage of revenue, higher operating expenses were partially offset by lower variable costs, which include commissions and fees and management fees expenses.
Jessica Bibliowicz, chairman, president and CEO at National Financial Partners, said: While revenue declined somewhat at our benefits firms, the economic environment had a greater impact on our life insurance firms, which accounted for most of the same store revenue decline in the quarter.
