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Investors Capital Holdings Revenue Dips in Q3

^{Published on 2009-02-23 16:06:59, Last Modified on 2009-02-23 16:08:49 - Market Wire}
 

LYNNFIELD, Mass.--([ BUSINESS WIRE ])--Investors Capital Holdings, Ltd. (AMEX: ICH), a financial services holding company, posted revenues of $18.4 million for the quarter ended December 31, 2008, down $4.9 million, or 21.1% compared to the year ago quarter ("prior period"). The firm experienced a $4.6 million, or 23.3%, decrease in commissions, primarily in direct and mutual fund business, coupled with a modest 2.6% decrease in investment advisory revenues.

"We're doing all the right things to survive this global downturn," said Timothy B. Murphy, President and Chief Executive Officer of Investors Capital Holdings. "Our net capital ratio is in great shape; our service satisfaction scores are up; our total operating expenses are down; and we're providing our advisors with weekly practice management conference calls, marketing and branding assistance, and mentoring relationships to help them survive and, in some cases, thrive in this market. Our revenues may be down, but everyone's revenues in our industry are down. We're in a global recession. However, we anticipate that these same conditions will be presenting us with historic opportunities to attract productive reps from other segments of the industry."

Average representative production remained consistent at approximately $133,000 for the current and prior period, based on 646 and 674 registered representatives, respectively. This is reflective of management's continuing efforts in recruiting established, high-quality representatives; assisting our existing advisors with growing their practices; and removing lower quality representatives.

The firm garnered a high Net Promoter^® score during the quarter. A measure of customer satisfaction, the score was obtained by applying a formula to ratings of our representatives' answers to the question "How likely is it that you would recommend our company to a friend or colleague?"

Total operating expenses decreased 3.1% to $4.8 million from $4.9 million for the prior period. The Company posted a net loss for the quarter of $0.61 million or ($0.10) per share versus net income of $0.05 million or $0.01 per share for the prior period. Our net capital position remained strong.

About Investors Capital Holdings, Ltd.:

Investors Capital Holdings, Ltd. (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 services and technology to help them grow their businesses and exceed their clients' expectations. Business units include Investors Capital Corporation, Investors Capital Advisory Services, ICC Insurance Agency, Inc., and Investors Capital Holdings Securities Corporation. For more information, please call (800) 949-1422 x4814 or visit [ www.investorscapital.com ].