News Release
Contact:
Robert Foney, Chief Marketing Officer
781.477.4814
rfoney@investorscapital.com
www.investorscapital.com
Investors Capital Holdings Posts Profitable First Quarter Results
First quarterly profit since quarter-end December 2007
Lynnfield, Mass. (August 20, 2009) - Investors Capital Holdings, Ltd. (NYSE AMEX: ICH), a financial services holding company, posted net income of $0.05 million for its first fiscal quarter ended June 30, 2009 (“the quarter”) versus a net loss of $0.27 million for the comparative quarter ended June 30, 2008 (“prior period”). This is the firm’s first profitable quarter since the quarter ended December 2007.
“Profitability and continued service excellence are our two ongoing corporate goals, and I’m proud to say that we achieved both in the first quarter,” said Timothy B. Murphy, President and Chief Executive Officer of Investors Capital Holdings, Ltd. “Through prudent, effective cost-cutting, we managed to generate a profit in a market where our total revenues declined over 18 percent, while continuing to provide our advisors with premier service.”
Total revenues declined 18.7% to $18.6 million for the quarter from $22.9 million in the prior period. However, the firm decreased total operating expenses 34.4% to $3.2 million for the quarter from $4.9 million for the comparative quarter ended June 30, 2008. This allowed the firm to post operating income of $0.29 million for the quarter versus an operating loss of $0.58 million for the prior period. The turnaround in operating income reflects the substantial reduction in operating expenses.
Adjusted EBITDA is a key metric utilized by the firm in evaluating its financial performance (1). For the first quarter, adjusted EBITDA was $0.54 million compared to $0.09 million for the prior period.
“We’ve added revenue growth as a third corporate goal going forward,” said Mr. Murphy. “We see a tremendous opportunity to grow Investors Capital over the short- and long-term. We are optimistic about the future of the independent channel and believe we are well-positioned to capitalize on that potential in the years to come.”
Click here to view PDF of Investors Capital Holdings’ first quarter results.
About Investors Capital Holdings, Ltd.:
Investors Capital Holdings, Ltd. (NYSE AMEX:ICH) of Lynnfield, Massachusetts is a diversified financial services holding company that operates primarily through its independent broker/dealer and investment advisor subsidiary, Investors Capital Corporation.
Our mission is to provide premier, concierge-level service and support to our valued registered representatives, including advisory programs, strategic practice management and marketing services, and 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.