Modest revenue growth paired with 7% decrease in expenses results in
consecutive quarters of operating income and profits

Company Website:
http://www.joinicc.com
LYNNFIELD, Mass. -- (Business Wire)
Investors Capital Holdings, Ltd. (NYSE MKT: ICH, the “Company”), a
financial services holding company, posted second quarter net income of
$0.28 million on total revenue of $20.32 million for the period ended
September 30, 2012 (the “quarter end”). Continued expense reduction
initiatives coupled with slight revenue growth translated into
consecutive operating and net income postings for the first two quarters
of the fiscal year. Second-quarter expenses continued to decline in all
major expense categories. Investors Capital Holdings, Ltd. operates
primarily through its wholly-owned subsidiary, Investors Capital
Corporation (“ICC”), a dually registered broker-dealer and investment
advisory firm.
Total revenue increased 0.8% to $20.32 million compared to revenue of
$20.17 million for the quarter ended September 30, 2011 (the “prior
period”). The increase was due to a rise in commission revenue and other
fee income, but offset by a decline in advisory fees. Commission revenue
rose 0.8% to $15.78 million, compared to $15.66 million in the prior
period. Advisory fees declined 2.5% to $3.98 million, compared to $4.08
million in the prior period.
Results of operations were positively impacted by reduced operating
costs in all major categories. Total expenses decreased $1.67 million or
7.7%. Total compensation costs declined as the Company realigned
operating expenses with top-line revenues and profit margins. The firm
reported operating income of $0.43 million compared to an operating loss
of $1.39 million for the prior period. Net income was $0.28 million for
the quarter compared to a net loss of $0.88 million for the prior period.
Investors Capital continues to benefit from enhancing the overall
quality of its representatives by providing broad practice management
solutions to assist its advisors in growing their practices and
recruiting established, high-performing representatives. The firm’s
average revenue per representative, based on a rolling 12-month period,
rose at the end of the second quarter to $169,373, an increase of 0.1%
over $169,130 for the prior rolling 12-month period.
Adjusted EBITDA was $0.56 million compared to negative $0.37 million for
the prior period. Adjusted EBITDA, a non-GAAP financial measure
described below, is a key metric utilized by the firm in evaluating its
financial performance.
“We continue to invest in the revenue-generating areas of our business,
supplementing the success of our recruiting efforts with proven, organic
growth initiatives such as practice management, advisory services,
information technology, and value-added events,” said Tim Murphy,
President and CEO of Investors Capital Holdings, Ltd. “By continually
focusing on the basics of our business and being more committed than
ever to providing 5-Star Service to our advisors, we look forward to
turning our current earnings successes into sustainable long-term
growth.”
About Investors Capital Holdings, Ltd.:
Investors Capital Holdings, Ltd. (NYSE MKT: ICH) of Lynnfield,
Massachusetts is a financial services holding company that operates
primarily through its broker/dealer and investment advisor subsidiary,
Investors Capital Corporation. Our mission is to provide 5-Star Service
and support to our valued registered representatives, including top
notch advisory programs, strategic practice management and marketing
services, and transformational technology, to help them grow their
businesses and exceed their clients’ expectations. Business units
include Investors Capital Corporation, ICC Insurance Agency, Inc., and
Investors Capital Holdings Securities Corporation. For more information,
please call (800) 949-1422 x4814 or visit www.investorscapital.com.
Certain statements contained in this press release that are not
historical fact may be deemed to be forward-looking statements under
federal securities laws. There are many factors that could cause our
future actual results to differ materially from those suggested by or
forecast in the forward-looking statements. Such factors include, but
are not limited to, general economic conditions, interest rate
fluctuations, regulatory changes affecting the financial services
industry, competitive factors effecting demand for our services,
availability of funding, and other risks including those identified in
the Company’s Securities and Exchange Commission filings.
Investors Capital Holdings, Ltd., 230 Broadway, Lynnfield, Massachusetts
01940, Distributor.
|
|
| | |
|
|
|
| | |
INVESTORS CAPITAL HOLDINGS, LTD. AND SUBSIDIARIES |
CONDENSED CONSOLIDATED BALANCE SHEETS (UNAUDITED) |
| | | | September 30, 2012 | | | | | | March 31, 2012 |
Assets | | | | | | | | | | |
Current Assets | | | | | | | | | | |
Cash and cash equivalents
| | |
$
|
4,482,284
| | | | | |
$
|
4,537,713
| |
Deposit with clearing organization, restricted
| | | |
175,000
| | | | | | |
175,000
| |
Accounts receivable
| | | |
4,928,839
| | | | | | |
4,525,157
| |
Loans receivable from registered representatives (current), net of
allowance
| | | |
597,150
| | | | | | |
654,560
| |
Prepaid income taxes
| | | |
171,138
| | | | | | |
137,658
| |
Securities owned at fair value
| | | |
257,375
| | | | | | |
235,454
| |
Prepaid expenses
| | | |
801,595
|
| | | | | |
674,780
|
|
| | | |
11,413,381
| | | | | | |
10,940,322
| |
| | | | | | | | | |
|
Property and equipment, net | | | |
223,091
| | | | | | |
340,007
| |
| | | | | | | | | |
|
Long Term Assets | | | | | | | | | | |
Loans receivable from registered representatives
| | | |
985,948
| | | | | | |
1,002,621
| |
Non-qualified deferred compensation investment
| | | |
1,565,853
| | | | | | |
1,327,806
| |
Cash surrender value life insurance policies
| | | |
159,510
|
| | | | | |
157,991
|
|
| | | |
2,711,311
| | | | | | |
2,488,418
| |
Other Assets | | | | | | | | | | |
Deferred tax asset, net
| | | |
1,104,770
| | | | | | |
1,550,010
| |
Other asset
| | | |
1,324
| | | | | | |
-
| |
Capitalized software, net
| | | |
129,823
|
| | | | | |
172,240
|
|
| | | |
1,235,917
| | | | | | |
1,722,250
| |
| | | | | | | | | |
|
TOTAL ASSETS | | | $ | 15,583,700 |
| | | | | $ | 15,490,997 |
|
| | | | | | | | | |
|
Liabilities and Stockholders' Equity | | | | | | | | | | |
Current Liabilities | | | | | | | | | | |
Accounts payable
| | |
$
|
1,006,260
| | | | | |
$
|
820,540
| |
Accrued expenses
| | | |
1,367,248
| | | | | | |
1,408,324
| |
Commissions payable
| | | |
2,830,750
| | | | | | |
2,787,467
| |
Notes payable
| | | |
307,296
| | | | | | |
1,605,688
| |
Unearned revenues
| | | |
452,561
| | | | | | |
146,198
| |
Securities sold, not yet purchased, at fair value
| | | |
17,996
|
| | | | | |
8,186
|
|
| | | |
5,982,111
| | | | | | |
6,776,403
| |
Long-Term Liabilities | | | | | | | | | | |
Non-qualified deferred compensation plan
| | | |
1,712,358
|
| | | | | |
1,458,169
|
|
| | | |
1,712,358
| | | | | | |
1,458,169
| |
| | | | | | | | | |
|
Total liabilities | | | |
7,694,469
|
| | | | | |
8,234,572
|
|
| | | | | | | | | |
|
Stockholders' Equity: | | | | | | | | | | |
Common stock, $.01 par value, 10,000,000 shares authorized;
| | | | | | | | | | |
6,684,242 issued and 6,680,357 outstanding at September 30, 2012
| | | | | | | | | | |
6,689,009 issued and 6,685,124 outstanding at March 31, 2012
| | | |
66,841
| | | | | | |
66,890
| |
Additional paid-in capital
| | | |
12,516,665
| | | | | | |
12,425,713
| |
Accumulated deficit
| | | |
(4,664,140
|
)
| | | | | |
(5,206,043
|
)
|
Less: Treasury stock, 3,885 shares at cost
| | | |
(30,135
|
)
| | | | | |
(30,135
|
)
|
Total stockholders' equity
| | | |
7,889,231
| | | | | | |
7,256,425
| |
| | | | | | | | | |
|
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY | | | $ | 15,583,700 |
| | | | | $ | 15,490,997 |
|
|
|
|
|
|
|
| |
|
| | | | | | | |
INVESTORS CAPITAL HOLDINGS, LTD. AND SUBSIDIARIES | | | | | | | | |
CONSOLIDATED STATEMENTS OF OPERATIONS | | | | | | | | |
(UNAUDITED) | | | THREE MONTHS ENDED |
| | | September 30, |
| | | 2012 | | | | | 2011 |
|
Revenue: | | | | | | | | |
Commissions
| |
$
|
15,779,387
| | | |
$
|
15,658,586
| |
Advisory fees
| | |
3,979,313
| | | | |
4,083,036
| |
Other fee income
| | |
337,226
| | | | |
108,570
| |
Other revenue
| | |
226,839
| | | | |
319,721
|
|
Total revenue
| | |
20,322,765
| | | | |
20,169,913
|
|
| | | | | | | |
|
Expenses: | | | | | | | | |
Commissions and advisory fees
| | |
16,126,655
| | | | |
16,231,516
| |
Compensation and benefits
| | |
1,460,708
| | | | |
2,659,815
| |
Regulatory, legal and professional services
| | |
977,627
| | | | |
1,009,451
| |
Brokerage, clearing and exchange fees
| | |
364,697
| | | | |
519,511
| |
Technology and communications
| | |
327,240
| | | | |
309,016
| |
Marketing and promotion
| | |
231,424
| | | | |
337,053
| |
Occupancy and equipment
| | |
178,191
| | | | |
218,048
| |
Other administrative
| | |
221,748
| | | | |
266,875
| |
Interest
| | |
4,835
| | | | |
8,997
|
|
Total operating expenses
| | |
19,893,125
| | | | |
21,560,282
|
|
| | | | | | | |
|
Operating income (loss)
| | |
429,640
| | | | |
(1,390,369
|
)
|
| | | | | | | |
|
Provision (benefit) for income taxes
| | |
149,420
| | | | |
(513,007
|
)
|
| | | | | | | |
|
Net income (loss) | |
$
|
280,220
| | | |
$
|
(877,362
|
)
|
| | | | | | | |
|
Basic and diluted net income (loss) per share
| |
$
|
0.04
| | | |
$
|
(0.13
|
)
|
| | | | | | | |
|
Weighted average shares used in basic per share calculations
| | |
6,529,786
| | | | |
6,590,779
|
|
| | | | | | | |
|
Weighted average shares used in diluted per share calculations
| | |
6,656,165
| | | | |
6,590,779
|
|
Adjusted EBITDA
Adjusted EBITDA is defined as earnings before interest, taxes,
depreciation and amortization (“EBITDA”), adjusted by eliminating items
that we believe are not part of our core operations, are non-recurring
items of revenue or expense, or do not involve a cash outlay, such as
stock-related compensation. We consider adjusted EBITDA important in
monitoring and evaluating our financial performance on a consistent
basis across various periods. We also use adjusted EBITDA as a primary
measure, among others, to analyze and evaluate financial and strategic
planning decisions.
Adjusted EBITDA is considered a non-GAAP financial measure as defined by
Regulation G promulgated by the SEC under the Securities Act of 1933, as
amended. Adjusted EBITDA should be considered in addition to, rather
than as a substitute for, important GAAP financial measures including
pre-tax income, net income and cash flows from operating activities.
Items excluded from adjusted EBITDA are significant and necessary
components to the operations of our business; therefore, adjusted EBITDA
should only be used as a supplemental measure of our operating
performance.
Adjusted EBITDA is reconciled with GAAP net income as follows:
|
|
|
| |
|
|
| |
| | | | Quarter Ended September 30, |
| | | | 2012 | | | | 2011 |
| | | | | | | |
|
Adjusted EBITDA:
| | | |
$
|
563,387
| | | | |
$
|
(374,883
|
)
|
| | | | | | | |
|
Adjustments to conform Adjusted EBITDA to
| | | | | | | | |
GAAP Net income (loss):
| | | | | | | | |
Income tax provision
| | | | |
(149,420
|
)
| | | | |
513,007
| |
Interest expense
| | | | |
(4,835
|
)
| | | | |
(8,997
|
)
|
Depreciation and amortization
| | | | |
(80,996
|
)
| | | | |
(97,995
|
)
|
Non-cash compensation for transfer of
| | | | | | | | |
beneficial interest to former Chairman
| | | | | | | | |
(568,095
|
)
|
Non-cash compensation
| | | | |
(47,916
|
)
| | | | |
(19,858
|
)
|
Non-recurring professional fees
| | | |
|
-
|
| | | |
|
(320,541
|
)
|
| | | | | | | |
|
Net income (loss)
| | | |
$
|
280,220
|
| | | |
$
|
(877,362
|
)
|

Contacts:
Investors Capital Holdings, Ltd.
Robert Foney, 781-477-4814
Chief
Marketing Officer
rfoney@investorscapital.com
www.investorscapital.com
Source: Investors Capital Holdings, Ltd.
© 2025 Canjex Publishing Ltd. All rights reserved.