Investors Capital Holdings, Ltd. (NYSE Amex: ICH, the “Company”), a financial services holding company, posted year-end total revenue of $81.04 million for the period ended March 31, 2012 (the “year end”). Revenue decreased 4.9% compared to revenue of $85.25 million for the year ended March 31, 2011 (“prior year end”). 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 decreased due primarily to a decline in commission revenue, which accounts for 78.3% of total revenue. Commission revenue fell 6.9% to $63.44 million, compared to $68.11 million in the prior year end due to a decline in brokerage activity resulting from a flat stock market, prolonged economic uncertainty, and the effects of the ongoing debt crisis in Europe.
Advisory fees, which now comprise 19.7% of total revenue, rose 6.5% to $15.96 million, compared to $14.98 million in the prior period. Advisory fee revenue grew due to both increased advisor activity and investment contributions.
Total expenses decreased $2.57 million or 3.0%, principally as a result of decreases in marketing and promotion, brokerage and clearing fees, and commissions and advisor fees paid to representatives. The Company reported a $2.66 million operating loss compared to an operating loss of $1.02 million for the prior year end and posted a net loss of $2.33 million compared to a net loss of $0.91 million for the prior year end. This year’s operating loss is principally attributed to one-time costs of $1.32 million incurred for the S-3 registration involving the sale of the founder’s shares, as well as other costs for litigation-related defense, settlement and insurance costs, and finally a deferred tax asset valuation allowance of approximately $489,000.Investors Capital continues to benefit from enhancing the overall quality of its representatives by assistance with expanding their skills and practices, recruiting established, high-quality representatives, and terminating lower-producing representatives. The firm’s average revenue per representative, based on a rolling 12-month period, rose at year end to $175,877, an increase of 8.8% over $161,642 for the prior rolling 12-month period.
Select the service that is right for you!COMPARE ALL SERVICES
Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.
- Real Money + Doug Kass + 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV