Investors Capital Holdings, Ltd. (NYSE MKT: ICH, the “Company”), a financial services holding company, posted net income of $0.37 million on total revenue of $84.89 million for the fiscal year ended March 31, 2013 (the “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.
Timothy B. Murphy, President & CEO, Investors Capital Corporation and Investors Capital Holdings, Ltd. (Photo: Business Wire)
Total revenue increased 4.7% to $84.89 million compared to total revenue of $81.04 million for the fiscal year ended March 31, 2012 (the “prior period”). The recruitment of higher-producing registered representatives, improved financial markets, rising recurring revenues, and an increase in other fee income all combined to create a profitable year.
Commission revenue rose 3.4% to $65.58 million, compared to $63.44 million in the prior period. Increased sales of mutual funds, variable annuities, and other investment products pushed commission revenue higher. Advisory fees also rose, increasing 2.8% to $16.41 million, compared to $15.96 million in the prior period. Asset value growth, increases in investment contributions as well as more advisors conducting advisory business led to the increase in advisory fee revenue.
Total expenses increased slightly: increases in commissions and advisory fees paid to registered representatives and regulatory, legal, and professional fees were offset by decreases in compensation and benefits, brokerage and commissions, and occupancy and equipment. Expenses rose 0.7% to $84.30 million compared to $83.70 million for the prior period.The company reported operating income of $0.59 million compared to an operating loss of $2.66 million for the prior period. Net income was $0.37 million for the fiscal year compared to a net loss of $2.33 million for the prior period. The firm’s profitability was due to an increase in other fee income as well as rebounding financial markets.