##### 



Hub International Revenue Increases Sharply in Third Quarter CHICAGO(BUSINESS WIRE)Oct. 28, 2004Hub International Limited (NYSE:HBG)(TSX:HBG):  
    
    Revenue increases 47% for quarter, 23% year to date
    
    Talbot stock based compensation leads to reduced net earnings, as previously announced
    
    Net earnings decline 83% for third quarter; 13% year to date
    
    Adjusted net earnings (see tables) rise 44% for quarter, 26% year to date
    
    Organic growth rate averages 2% in third quarter, 7% year to date Hub International Limited(NYSE:HBG)(TSX:HBG) today reported a decline in net earnings for the third quarter and the first nine
months of 2004, as expected, due to the impact of non-cash stock based compensation related to the July 1, 2004 acquisition of
Talbot Financial Corporation (Talbot). Net earnings declined 83% to $1.1 million in the third quarter from $6.8 million in the same period a year earlier, while earnings
per diluted share declined 82% to $0.04 per share from $0.22 a year earlier. As shown in the table below, the earnings figure
included the impact of $6.9 million in non-cash stock based compensation to executives of Talbot. (See discussion of this item later
in release.) Excluding the impact of the Talbot earnout and other adjustments noted in the table below, net earnings would have
increased 44% to $7.6 million and diluted earnings per share would have increased 35% to $0.23 in the third quarter 2004, as
compared to the third quarter 2003. (in thousands of U.S.
dollars, except per share amounts)Net
    
    DilutedEarnings
    
    EPSThree months ended September 30, 2004 reported net
earnings
    
    $
    1,146
    
    
    $
    0.04Impact of foreign exchange
    
    
    (404
    )
    
    
    (0.01
    )Non-cash stock based compensation  Talbot
    
    
    6,889
    
    
    
    0.20Adjusted September 30, 2004 results
    
    $
    7,631
    
    
    $
    0.23Three months ended September 30, 2003 reported net
earnings
    
    $
    6,820
    
    
    $
    0.22Impact of foreign exchange
    
    
    (518
    )
    
    
    (0.02
    )Proceeds from life insurance
    
    
    (1,000
    )
    
    
    (0.03
    )Adjusted September 30, 2003 results
    
    $
    5,302
    
    
    $
    0.17
 Revenue increased 47% to $94.9 million in the quarter ended September 30, 2004 from $64.7 million a year earlier, including the
benefit of acquired brokerages and organic growth. Net acquisitions and divestitures completed since September 30, 2003 added
approximately $110 million to Hubs annualized revenue base. Hub posted third quarter organic growth, the equivalent of same-store
sales, of 2%, including a decline of 3% in the United States and an increase of 9% (4% excluding foreign exchange effects) in
Canada. Net of foreign exchange effects, overall organic growth was 0%. Although we were pleased with the performance of our largest acquisitions this yearTalbot and Bush, Cotton & Scottthird quarter
results suffered from a softening rate environment, said Martin P . Hughes, chairman and chief executive officer. In a declining
rate environment, both new business and renewal business carry lower premiums, while increased capacity results in more competition
for the clients business. In spite of these challenges, for the quarter nearly half of our hubs generated organic growth rates well above our long-term
target average of 5%. We are working aggressively to address the specific shortfalls in underperforming brokerages. On a consolidated basis, commission income increased 49% to $90.3 million from $60.8 million in the same period of 2003. Third
quarter contingent commissions and volume overrides declined 1% to $1.9 million while other income grew 37% to $2.8 million from
$2.0 million.




---



##### 



In the United States, third quarter revenue increased 75% to $66.5 million from $38.0 million a year earlier, largely due to the
acquisitions of Talbot and Bush, Cotton & Scott. Commissions increased 79% to $62.7 million from $35.0 million, while contingent
commissions and volume overrides grew 2% to $1.6 million. Other income grew 63% to $2.2 million from $1.4 million. In Canada, revenue grew 6% to $28.4 million from $26.7 million in the third quarter of 2003. Commissions rose 7% to $27.6 million
from $25.7 million, while contingent commissions and volume overrides fell 14% to $0.3 million and other income fell 17% to $0.5
million from $0.6 million. A stronger Canadian dollar added approximately 5 percentage points to the revenue growth rate in Canada
in the third quarter 2004. Cash compensation increased 56% in the third quarter to $57.6 million, or 61% of revenue, from $36.9 million, or 57% of revenue, a
year earlier. The increase in compensation expense as a percentage of revenue reflected both negative organic growth in the United
States and a relatively higher cash compensation ratio at Talbot. Non-cash stock based compensation increased to $8.3 million from
$1.4 million, primarily as a result of the earnout to Talbot management. Selling, occupancy and administration expense increased 41%
to $19.6 million from $14.0 million, but decreased to 21% of revenue from 22% a year earlier, aided by expense control. Pre-tax income in the third quarter declined 59.2% to $4.1 million from $10.0 million, largely due to the impact of non-cash stock
based compensation earned by Talbot management. Because this expense is not deductible for tax purposes, Hubs effective tax rate
increased to 72% from 32% in the same quarter of 2003. NINE-MONTH RESULTS REFLECT STRONG GROWTH For the first nine months of 2004, Hub posted a 23% increase in revenue to $256.5 million from $207.7 million in the prior year,
largely due to the impact of acquired brokerages and a 7% organic growth rate. Commissions grew 24% to $228.9 million from $184.8
million, while contingent commissions and volume overrides grew 16% to $19.9 million from $17.2 million. Other income grew 33% to
$7.7 million from $5.8 million. The benefits of a stronger Canadian dollar added approximately 3 percentage points to the revenue
growth rate for the first nine months of 2004. U.S. revenue grew 30% to $166.0 million in the first nine months of 2004 from $127.9 million, including the impact of acquisitions
and a 2% organic growth rate. Commissions increased 32% to $146.6 million from $111.3 million. Contingent commissions and volume
overrides rose 7% to $13.4 million from $12.6 million, while other income increased 47% to $5.9 million from $4.0 million. Canadian revenue rose 13% to $90.5 million in the first nine months of 2004 from $79.8 million, due large ly to a 15% organic growth
rate. Commissions rose 12% to $82.3 million from $73.4 million, while contingent commissions and volume overrides increased 42% to
$6.5 million from $4.6 million. Other income declined 2% to $1.7 million from $1.8 million. A stronger Canadian dollar added
approximately 8 percentage points to the revenue growth rate for Canadian operations. Cash compensation increased 23% to $140.3 million in the first nine months of 2004 from $113.7 million a year earlier, remaining
constant as a percentage of revenue at 55%. Non-cash stock based compensation expense increased to $11.7 million from $3.6 million,
due to both the Talbot earnout and the issuance of restricted share units in the first quarter 2004 as part of a restructuring of
the management bonus plan. Selling, occupancy and administration expense increased 25% to $51.3 million from $40.9 million,
remaining constant at 20% of revenue. Pre-tax earnings declined 6% to $37.6 million in the first nine months of 2004 from $39.9 million, including the impact of the
Talbot earnout. Hubs effective tax rate increased to 40% from 35%, due largely to the non-cash stock based compensation related to
Talbot, which is not deductible for tax purposes. Net earnings decreased 13% to $22.4 million in the first nine months of 2004 from $25.8 million in the same period of 2003,
reflecting the impact of the Talbot earnout and the first quarter 2004 write-down of intangibles related to a corporate branding
effort, offset somewhat by foreign exchange benefits. Net earnings declined 16% per diluted share to $0.68 from $0.81. Excluding the
impact of the Talbot earnout and other adjustments noted in the table below, net earnings would have increased 26% to $29.7 million
and diluted earnings per share would have increased 20% to $0.89 for the first nine months of 2004, as compared to the first nine
months of 2003. (in thousands of U.S.
dollars, except per share amounts)Net
    
    DilutedEarnings
    
    EPSNine months ended September 30, 2004 reported net
earnings
    
    $
    22,360
    
    
    $
    0.68Impact of foreign exchange
    
    
    (1,235
    )
    
    
    (0.04
    )Impact of write-off of trademarks
    
    
    1,656
    
    
    
    0.05Impact of non-cash stock based compensation  Talbot
    
    
    6,889
    
    
    
    0.20Adjusted September 30, 2004 results
    
    $
    29,670
    
    
    $
    0.89Nine months ended September 30, 2003 reported net
earnings
    
    $
    25,833
    
    
    $
    0.81Impact of foreign exchange
    
    
    (1,229
    )
    
    
    (0.04
    )Life insurance proceeds
    
    
    (1,000
    )
    
    
    (0.03
    )Adjusted September 30, 2003 results
    
    $
    23,604
    
    
    $
    0.74FULL-YEAR GUIDANCE CONFIRMED TOWARD LOWER END OF RANGE
 After reviewing third quarter results, rate trends and other factors, the company maintained its earnings guidance at $0.80  $0.84
per diluted share for 2004,




---



##### 



with a bias toward the lower end of the range. Rates have declined more rapidly than anticipated earlier in the year, which is leading to a slower rate of organic growth and a
more challenging earnings outlook. In addition, we are absorbing higher than anticipated costs related to compliance with
Sarbanes-Oxley and the ongoing inquiry into contingent commissions by the New York Attorney Generals office, Hughes said. As we
noted at the start of this year, 2004 is a period of internal investment and repositioning to strengthen our platform for our next
phase of growth. While we are no less confident of our ability to implement our growth strategies over the long term, the near term
outlook is challenging from an earnings perspective. Given all the circumstances, we do not plan to offer an earnings forecast for
2005. HUB ADDRESSES CONCERNS REGARDING COMPENSATION PRACTICES As reported earlier, Hubs New York based brokerage has been subpoenaed by the New York Attorney Generals office for information on
compensation practices, including contingent commissions, and is fully cooperating. Further, as a result of the ongoing debate
regarding, and inquiries into, compensation practices in the insurance brokerage industry, Hub has initiated the following to ensure
continued high levels of service and ethical standards:  
    
    Creation of an internal task force
    
    Engagement of outside counsel to conduct a review
    
    Expanded communications with clients
    
    Establishment of a toll-free hotline for customer inquiries (1-866-857-4073) We want to make it easy for clients to obtain answers to any questions about our practices Hughes said. In addition to the
hotline, we are developing expanded information content for our website and increasing direct outreach to clients and other
stakeholders. Understanding the Talbot Compensation Charge Hub discloses the impact of non-cash stock based compensation related to Talbot in order to give investors increased insight into
Hubs results of operations and the effective cost of the Talbot acquisition. Both the $90 million cash paid to Safeco Corporation and the future issuance of restricted and non-restricted Hub shares to
approximately 70 Talbot executives are components of the total consideration paid to acquire Talbot. This total consideration is
within Hubs target range of paying 5-7 times EBITDA (earnings before interest, taxes, depreciation and amortization, a non-GAAP
measure) for acquired brokerages. The executives of Talbot were not shareholders prior to the sale, and therefore non-cash stock based compensation they receive under
terms of the purchase agreement is recorded as compensation expense. This compensation expense, which is not deductible for tax
purposes, will be charged to earnings through the first quarter 2007 and will affect earnings comparisons through 2007, making it
difficult for investors to analyze the companys results in comparison to prior years and industry peers. In the third quarter 2004, Hub recorded $6.9 million of non-cash stock based compensation based on a total estimated earnout
liability of approximately $48 million. The amount of non-cash stock based compensation may vary from quarter to quarter based on
the profitability of Talbot. Based on the current expected earnout of $48 million, the estimated charge to earnings will be: 2004 $13.8 million
2005 $21.8 million
2006 $10.9 million
2007 $ 1.5 million Conference Call and Webcast Scheduled Hub International will discuss financial results and guidance on a conference call scheduled for 9:30 a.m. (CT), 10:30 a.m. (ET)
today , October 28, 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,
exchange rates, resolution of regulatory issues, including those related to compensation arrangements with insurance companies, the
actual costs of resolution of contingent liabilities 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 nine months ended September 30, 2004
(in thousands of U.S. dollars, except percentages) NetAdjustmentsRevenue
    
    
    
    
    
    Total
    
    For
    
    OrganicThird quarter
    
    Total
    
    Growth
    
    (Acquisitions)
    
    Growth2004
    
    2003
    
    Change ($)
    
    (%)
    
    And Disposals
    
    (%)TotalCommission
Income
    
    $
    90,269
    
    
    $
    60,772
    
    
    $
    29,497
    
    
    
    49
    %
    
    $
    (27,534
    )
    
    
    3
    %Contingent
Commissions
and Volume
Overrides
    
    
    1,865
    
    
    
    1,884
    
    
    
    (19
    )
    
    
    -1
    %
    
    
    (465
    )
    
    
    -26
    %Other Income
    
    
    2,768
    
    
    
    2,015
    
    
    
    753
    
    
    
    37
    %
    
    
    (803
    )
    
    
    -2
    %Total
    
    $
    94,902
    
    
    $
    64,671
    
    
    $
    30,231
    
    
    
    47
    %
    
    $
    (28,802
    )
    
    
    2
    %USACommission
Income
    
    $
    62,658
    
    
    $
    35,031
    
    
    $
    27,627
    
    
    
    79
    %
    
    $
    (28,305
    )
    
    
    -2
    %Contingent
Commissions
and Volume
Overrides
    
    
    1,605
    
    
    
    1,580
    
    
    
    25
    
    
    
    2
    %
    
    
    (466
    )
    
    
    -28
    %Other Income
    
    
    2,229
    
    
    
    1,369
    
    
    
    860
    
    
    
    63
    %
    
    
    (834
    )
    
    
    2
    %Total
    
    $
    66,492
    
    
    $
    37,980
    
    
    $
    28,512
    
    
    
    75
    %
    
    $
    (29,605
    )
    
    
    -3
    %CanadaCommission
Income
    
    $
    27,611
    
    
    $
    25,741
    
    
    $
    1,870
    
    
    
    7
    %
    
    $
    771
    
    
    
    10
    %Contingent
Commissions
and Volume
Overrides
    
    
    260
    
    
    
    304
    
    
    
    (44
    )
    
    
    -14
    %
    
    
    1
    
    
    
    -14
    %Other Income
    
    
    539
    
    
    
    646
    
    
    
    (107
    )
    
    
    -17
    %
    
    
    31
    
    
    
    -12
    %Total
    
    $
    28,410
    
    
    $
    26,691
    
    
    $
    1,719
    
    
    
    6
    %
    
    $
    803
    
    
    
    9
    %
 NetAdjustmentsRevenue
    
    
    
    
    
    Total
    
    For
    
    OrganicFirst nine months
    
    Total
    
    Growth
    
    (Acquisitions)
    
    Growth2004
    
    2003
    
    Change ($)
    
    (%)
    
    And Disposals
    
    (%)TotalCommission
Income
    
    $
    228,858
    
    
    $
    184,755
    
    
    $
    44,103
    
    
    
    24
    %
    
    $
    (32,238
    )
    
    
    6
    %Contingent
Commissions
and Volume
Overrides
    
    
    19,940
    
    
    
    17,150
    
    
    
    2,790
    
    
    
    16
    %
    
    
    (530
    )
    
    
    13
    %Other Income
    
    
    7,684
    
    
    
    5,798
    
    
    
    1,886
    
    
    
    33
    %
    
    
    (1,484
    )
    
    
    7
    %Total
    
    $
    256,482
    
    
    $
    207,703
    
    
    $
    48,779
    
    
    
    23
    %
    
    $
    (34,252
    )
    
    
    7
    %USACommission
Income
    
    $
    146,593
    
    
    $
    111,324
    
    
    $
    35,269
    
    
    
    32
    %
    
    $
    (33,396
    )
    
    
    2
    %Contingent
Commissions
and Volume
Overrides
    
    
    13,437
    
    
    
    12,575
    
    
    
    862
    
    
    
    7
    %
    
    
    (531
    )
    
    
    3
    %Other Income
    
    
    5,948
    
    
    
    4,032
    
    
    
    1,916
    
    
    
    47
    %
    
    
    (1,529
    )
    
    
    10
    %Total
    
    $
    165,978
    
    
    $
    127,931
    
    
    $
    38,047
    
    
    
    30
    %
    
    $
    (35,456
    )
    
    
    2
    %CanadaCommission
Income
    
    $
    82,265
    
    
    $
    73,431
    
    
    $
    8,834
    
    
    
    12
    %
    
    $
    1,158
    
    
    
    14
    %Contingent
Commissions
and Volume
Overrides
    
    
    6,503
    
    
    
    4,575
    
    
    
    1,928
    
    
    
    42
    %
    
    
    1
    
    
    
    42
    %Other Income
    
    
    1,736
    
    
    
    1,766
    
    
    
    (30
    )
    
    
    -2
    %
    
    
    45
    
    
    
    1
    %Total
    
    $
    90,504
    
    
    $
    79,772
    
    
    $
    10,732
    
    
    
    13
    %
    
    $
    1,204
    
    
    
    15
    %




---



##### 



HUB INTERNATIONAL LIMITED
Consolidated Statements of Earnings
For the three months and nine months ended September 30, 2004 and 2003
(in thousands of U.S. dollars, except per share amounts) Third quarter
    
    First nine months2004
    
    2003
    
    2004
    
    2003(Unaudited)
    
    (Unaudited)
    
    (Unaudited)
    
    (Unaudited)RevenueCommission income
    
    $
    90,269
    
    
    $
    60,772
    
    
    $
    228,858
    
    
    $
    184,755Contingent
commissions and
volume overrides
    
    
    1,865
    
    
    
    1,884
    
    
    
    19,940
    
    
    
    17,150Other
    
    
    2,768
    
    
    
    2,015
    
    
    
    7,684
    
    
    
    5,79894,902
    
    
    
    64,671
    
    
    
    256,482
    
    
    
    207,703ExpensesCompensation
    
    
    57,593
    
    
    
    36,855
    
    
    
    140,344
    
    
    
    113,744Selling, occupancy
and administration
    
    
    19,647
    
    
    
    13,974
    
    
    
    51,286
    
    
    
    40,888Depreciation
    
    
    1,962
    
    
    
    1,551
    
    
    
    5,279
    
    
    
    4,462Interest expense
    
    
    2,330
    
    
    
    1,269
    
    
    
    5,692
    
    
    
    4,152Intangible asset
amortization
    
    
    1,904
    
    
    
    840
    
    
    
    3,621
    
    
    
    2,397Gain on disposal of
subsidiaries, property,
equipment and other
assets
    
    
    (981
    )
    
    
    (290
    )
    
    
    (1,540
    )
    
    
    (281
    )Non-cash stock
based compensation
    
    
    8,346
    
    
    
    1,355
    
    
    
    11,661
    
    
    
    3,575Loss on write-off
of trademarks
    
    
    
    
    
    
    
    
    
    
    2,587
    
    
    
    Loss/(gain) on put
option liability
    
    
    
    
    
    
    73
    
    
    
    
    
    
    
    (167
    )Proceeds from life
insurance
    
    
    
    
    
    
    (1,000
    )
    
    
    
    
    
    
    (1,000
    )90,801
    
    
    
    54,627
    
    
    
    218,930
    
    
    
    167,770Net earnings before
income taxes
    
    
    4,101
    
    
    
    10,044
    
    
    
    37,552
    
    
    
    39,933Provision for income
tax expense (benefit)Current
    
    
    5,032
    
    
    
    6,074
    
    
    
    16,762
    
    
    
    15,339Future
    
    
    (2,077
    )
    
    
    (2,850
    )
    
    
    (1,570
    )
    
    
    (1,239
    )2,955
    
    
    
    3,224
    
    
    
    15,192
    
    
    
    14,100Net earnings
    
    
    1,146
    
    
    
    6,820
    
    
    
    22,360
    
    
    
    25,833Interest on
subordinated
convertible debentures
    
    
    
    
    
    
    471
    
    
    
    1,425
    
    
    
    1,414Dividends in lieu of
restricted share units
    
    
    23
    
    
    
    36
    
    
    
    88
    
    
    
    76Diluted net earnings
    
    $
    1,169
    
    
    $
    7,327
    
    
    $
    23,873     $
    
    
    
    27,323Earnings per shareBasic
    
    $
    0.04
    
    
    $
    0.23
    
    
    $
    0.74
    
    
    $
    0.88Diluted
    
    $
    0.04
    
    
    $
    0.22
    
    
    $
    0.68
    
    
    $
    0.81Weighted average
shares outstanding- Basic (000s)
    
    
    30,292
    
    
    
    29,327
    
    
    
    30,192
    
    
    
    29,326Weighted average
shares outstanding- Diluted (000s)
    
    
    32,666
    
    
    
    33,830
    
    
    
    35,006
    
    
    
    33,927




---



##### 



HUB INTERNATIONAL LIMITED
Consolidated Balance Sheets
As of September 30, 2004 and December 31, 2003
(in thousands of U.S. dollars) 2004
    
    2003(Unaudited)AssetsCurrent assets:Cash and cash equivalents
    
    $
    78,108
    
    
    $
    82,052Trust cash
    
    
    65,671
    
    
    
    54,534Accounts and other receivables
    
    
    140,585
    
    
    
    163,728Income taxes receivable
    
    
    6,668
    
    
    
    6,768Future income taxes
    
    
    5,389
    
    
    
    2,865Prepaid expenses
    
    
    8,371
    
    
    
    4,449Total current assets
    
    
    304,792
    
    
    
    314,396Goodwill
    
    
    368,881
    
    
    
    305,862Other intangible assets
    
    
    90,635
    
    
    
    42,903Property and equipment
    
    
    27,442
    
    
    
    24,181Future income taxes
    
    
    7,578
    
    
    
    6,458Other assets
    
    
    10,945
    
    
    
    6,803Total assets
    
    $
    810,273
    
    
    $
    700,603Liabilities and Shareholders EquityCurrent liabilities:Accounts payable and accrued liabilities
    
    $
    226,521
    
    
    $
    226,168Income taxes payable
    
    
    4,370
    
    
    
    3,804Future income taxes
    
    
    322
    
    
    
    114Current portion long-term debt and capital leases
    
    
    6,602
    
    
    
    3,362Total current liabilities
    
    
    237,815
    
    
    
    233,448Long-term debt and capital leases
    
    
    148,272
    
    
    
    75,437Subordinated convertible debentures
    
    
    35,000
    
    
    
    35,000Future income taxes
    
    
    16,597
    
    
    
    13,928Total liabilities
    
    
    437,684
    
    
    
    357,813Commitments and contingenciesShareholders equityShare capital
    
    
    259,445
    
    
    
    254,845Issuable shares
    
    
    51
    
    
    
    721Contributed surplus
    
    
    11,053
    
    
    
    4,806Cumulative translation account
    
    
    21,894
    
    
    
    20,062Retained earnings
    
    
    80,146
    
    
    
    62,356Total shareholders equity
    
    
    372,589
    
    
    
    342,790Total liabilities and shareholders equity
    
    $
    810,273
    
    
    $
    700,603




---



##### 



HUB INTERNATIONAL LIMITED
Consolidated Statements of Cash Flows
For the three months and nine months ended September 30, 2004 and 2003
(in thousands of U.S. dollars) Third quarter
    
    First nine months2004
    
    2003
    
    2004
    
    2003(Unaudited)
    
    (Unaudited)
    
    (Unaudited)
    
    (Unaudited)Operating activitiesNet earnings
    
    $
    1,146
    
    
    $
    6,820
    
    
    $
    22,360
    
    
    $
    25,833Items not affecting
working capital:Amortization and
depreciation
    
    
    3,866
    
    
    
    2,391
    
    
    
    8,900
    
    
    
    6,859Gain on disposal of
subsidiaries,
property, equipment
and other assets
    
    
    (981
    )
    
    
    (290
    )
    
    
    (1,540
    )
    
    
    (281
    )Non-cash stock
based compensation
    
    
    8,346
    
    
    
    1,355
    
    
    
    11,661
    
    
    
    3,575Loss on write-off
of trademarks
    
    
    
    
    
    
    
    
    
    
    2,587
    
    
    
    Loss/(gain) on put
option liability
    
    
    
    
    
    
    73
    
    
    
    
    
    
    
    (167
    )Future income taxes
    
    
    (2,077
    )
    
    
    (2,850
    )
    
    
    (1,570
    )
    
    
    (1,239
    )Non-cash working
capital items
Trust cash
    
    
    1,850
    
    
    
    106
    
    
    
    1,867
    
    
    
    9,673Accounts and other
receivables
    
    
    54,259
    
    
    
    50,028
    
    
    
    40,669
    
    
    
    38,626Prepaid expenses
    
    
    (203
    )
    
    
    283
    
    
    
    (3,837
    )
    
    
    (185
    )Accounts payable and
accrued liabilities
    
    
    (50,118
    )
    
    
    (44,340
    )
    
    
    (49,628
    )
    
    
    (38,463
    )Other assets
    
    
    128
    
    
    
    129
    
    
    
    384
    
    
    
    (2,191
    )Income taxes
    
    
    (837
    )
    
    
    4,165
    
    
    
    (981
    )
    
    
    1,318Net cash flows
from operating
activities
    
    
    15,379
    
    
    
    17,870
    
    
    
    30,872
    
    
    
    43,358Investing activitiesProperty and
equipment -
purchases
    
    
    (2,086
    )
    
    
    (1,547
    )
    
    
    (4,993
    )
    
    
    (4,589
    )Property and
equipment -
proceeds on sale
    
    
    60
    
    
    
    17
    
    
    
    142
    
    
    
    44Purchase of
subsidiaries, net
of cash received
    
    
    (78,495
    )
    
    
    452
    
    
    
    (90,385
    )
    
    
    (11,935
    )Sale of subsidiaries
    
    
    1,895
    
    
    
    613
    
    
    
    6,062
    
    
    
    1,064Other assets
    
    
    34
    
    
    
    176
    
    
    
    388
    
    
    
    (539
    )Net cash flows
used for
investing activities
    
    
    (78,592
    )
    
    
    (289
    )
    
    
    (88,786
    )
    
    
    (15,955
    )Financing activitiesLong-term debt -
advances
    
    
    
    
    
    
    250
    
    
    
    65,000
    
    
    
    65,250Long-term debt and
capital leases -
repayments
    
    
    (3,449
    )
    
    
    (688
    )
    
    
    (8,169
    )
    
    
    (52,184
    )Share capital -
issued for cash,
net of issue costs
    
    
    
    
    
    
    (28
    )
    
    
    480
    
    
    
    (59
    )Proceeds from sale
of executive plan
shares
    
    
    
    
    
    
    222
    
    
    
    
    
    
    
    222Dividends paid
    
    
    (1,527
    )
    
    
    (1,514
    )
    
    
    (4,570
    )
    
    
    (4,552
    )Net cash flows
from (used for)
financing activities
    
    
    (4,976
    )
    
    
    (1,758
    )
    
    
    52,741
    
    
    
    8,677Effect of exchange
rate changes on cash
and cash equivalents
    
    
    1,770
    
    
    
    160
    
    
    
    1,229
    
    
    
    2,339Change in cash and
cash equivalents
    
    
    (66,419
    )
    
    
    15,983
    
    
    
    (3,944
    )
    
    
    38,419Cash and cash
equivalents -Beginning of period
    
    
    144,527
    
    
    
    63,078
    
    
    
    82,052
    
    
    
    40,642Cash and cash
equivalents -End of period
    
    $
    78,108
    
    
    $
    79,061
    
    
    $
    78,108
    
    
    $
    79,061
 CONTACT: Hub International Limited, Chicago
Dennis J. Pauls, 312-279-4880
Media Contact
email: dennis.pauls@hubinternational.com
or
Rosenbaum Advisors
Michael Rosenbaum, 847-749-1010
Investor Contact
email: michael@rosenbaumadvisors.com 
SOURCE: Hub International Limited