Exhibit 99.1
Investors Capital Holdings Reports $3 Million Revenue Increase And
$481,000 Income Before Taxes For Second Quarter; Net income up over
one thousand percent
LYNNFIELD, Mass.--(BUSINESS WIRE)--Nov. 13, 2003--Investors
Capital Holdings (AMEX: ICH) today announced a record quarter, with
dramatic jumps in revenue and net income. For the second quarter ended
September 30, 2003, total revenues were up $3.2 million, or 39%, to
$11.4 million, as compared to revenues of $8.2 million for the same
quarter ended September 30, 2002. Net income for the second quarter
ended September 30, 2003 was $269,805, or $0.05 per share, up over
1,000% from the comparable quarter ended September 30, 2002.
Income before taxes for the second quarter was $481,000. Ted
Charles, chairman and chief executive officer for Investors Capital
Holdings, credits the jump in profit to a significant increase in
production across all segments of the business, as well as a
disciplined approach to cost control. "The resources we commit to
recruiting high-quality financial advisors, as well as the strong
relationships we forge with business partners to offer premier
financial products, work hand in hand to positively impact our bottom
line. Meanwhile, Investors Capital Holdings and our subsidiaries
continue to invest capital in our people, our systems, and our
programs to position us for expansion and success."
Charles continued, "Investors Capital Holdings' broker-dealer
subsidiary, Investors Capital Corporation, wrapped up its most
successful national convention in the company's history last month.
Our convention drew record numbers of registered financial advisors,
exhibitors and sponsors, and guests - over 900 professionals, in
total. We provided them with a multitude of networking opportunities,
nearly 70 workshops, and the chance to visit more than 60 exhibitors."
"Our national convention underscores our commitment to provide our
financial advisors with premier programs, products, and education. For
example, we continue to see tremendous demand for our seminar-selling
program that teaches our financial advisors not only how to
dramatically increase their own production, but more importantly, how
to assist their clients in achieving their financial goals. We plan to
double the number of seminar 'boot camps' for the coming year.
Additionally, our turn-key tax solutions program, already in operation
in several strategic geographic locations, will expand nationwide
later this year."
About Investors Capital Holdings
Investors Capital Holdings, of Lynnfield, Mass., is a diversified
financial services company founded to meet the consumers' needs in
today's financial markets. The company owns and operates Investors
Capital Corporation, Eastern Point Advisors, Inc. and ICC Insurance
Agency, Inc. Investors Capital Corporation is a nationally recognized,
independent broker-dealer comprised of approximately 1,000 experienced
financial professionals throughout the United States. Eastern Point
Advisors, Inc. is an investment advisory firm managing portfolios for
individual and institutional clients, as well as the advisor to the
Eastern Point Advisors Twenty Fund. ICC Insurance Agency, Inc.
provides insurance services to agents of Investors Capital
Corporation. For more information, please call (800) 949-1422 or visit
www.investorscapital.com.
Certain statements contained in this press release, which are not
historical fact, may be deemed to be forward-looking statements under
federal securities laws. There are many important factors that could
cause Investors Capital Holdings and its subsidiaries' actual results
to differ materially from those indicated in the forward-looking
statements. Such factors include, but are not limited to, general
economic conditions, including interest rate risk, regulatory changes
(legislative or otherwise) affecting the financial services industry,
competition, demand for Investors Capital Holdings and its
subsidiaries' services, availability of funding, and other risks
identified in Investors Capital Holdings' Securities and Exchange
Commission filings.
INVESTORS CAPITAL HOLDINGS, LTD. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(unaudited)
Three Months Ended
September 30,
2003 2002
Commissions and advisory fee income $11,368,848 $8,192,633
Commissions and advisory fees 9,044,889 6,693,999
Gross profit 2,323,959 1,498,634
Administrative and selling expenses:
Administrative 1,693,703 1,266,889
Selling 226,819 159,653
Total administrative and selling expenses 1,920,522 1,426,542
Operating income 403,437 72,092
Other income (expense):
Interest income 79,322 82,939
Interest expense (4,001) (1,414)
Other income (expense) 2,311 (62,591)
Net other income 77,632 18,934
Income before taxes 481,069 91,026
Provision for income taxes 211,264 67,059
Net income $ 269,805 $ 23,967
Basic and diluted earnings per common share:
Net income $ 0.05 $ --
INVESTORS CAPITAL HOLDINGS, LTD. AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEET HIGHLIGHTS
September 30, 2003
(unaudited)
Total Assets $11,371,587
Total Liabilities $ 2,849,367
Total Stockholders' Equity $ 8,522,220
CONTACT: Investors Capital Holdings
Chief Financial Officer
Timothy Murphy, 781-593-8565
tmurphy@investorscapital.com
or
Manager Public Relations/Investor Relations
Ann Kelly, 781-593-8565
annkelly@investorscapital.com