G&E president and CEO Barry M. Barovick and CFO Ian Y. Bress held a teleconference to discuss financial results for the three-month period that ended Sept. 30, the firm's first fiscal quarter. According to Barovick, an already sluggish economy further eroded by the World Trade Center bombings caused a 29% drop in first quarter total revenue compared to last year, from $108.1 million to $76.8 million. Fiscal 2002 first quarter earnings before interest, income taxes, depreciation and amortization (EBITDA) was a loss of $573,000, compared with earnings of $7.7 million a year ago

"Transaction volume was light during July and August following an economic slowdown, which only increased following the events of Sept. 11," Barovick said. He added, however, "we did begin to see [business] pick up in October, so there may be some pent up demand."

Transaction services fees were $62.9 million for the quarter, roughly 32% lower than the $92.7 million generated in the same quarter a year ago. Property management services fees decreased roughly 10% to $13.8 million compared with $15.4 million a year earlier. The company reported a first quarter operating loss of $3.4 million compared with operating income of $4.8 million a year ago.