Exhibit 99.2
Investors Capital Holdings Celebrates Eight Consecutive Quarters of
Revenue Growth and Four Consecutive Quarters of Profitability
LYNNFIELD, Mass.--(BUSINESS WIRE)--Aug. 16, 2004--
Diversified Financial Services Firm Gains Momentum Returning 345%
Increase in Net Income for First Fiscal Quarter of 2005
Investors Capital Holdings, Ltd. (AMEX: ICH), today celebrated two
important milestones announcing that the Company has increased
revenues for eight consecutive quarters, while boosting profitability
during each of the last four quarters. Such momentum was felt
throughout the business which enjoyed a substantial increase in net
income of approximately $204,000, a 345% increase and revenue of $14.3
million, a gain of more than 47% for the first fiscal quarter-ended
June 30, 2004 (in comparison to the first fiscal quarter-ended June
30, 2003). Basic earnings per share were $0.04 and diluted earnings
per share were $0.03, compared to a $0.01 basic and diluted per share
loss from the first fiscal quarter-ended June 30, 2003.
"We are very pleased to report that Investors Capital Holdings
posted positive results for the first fiscal quarter of 2005 and we
are confident that we will continue to demonstrate strong growth as we
head into the second half of the year," said Ted Charles, Investors
Capital Holdings' Chairman and Chief Executive Officer. "Our continued
success is the direct result of the diversity of our business, which
saw strong performance from our brokerage, advisory and insurance
divisions."
Tim Murphy, CFO of Investors Capital Holdings added, "In addition
to our strong income and revenue results, the company also displayed
significant growth in operating income as gross profit from operations
rose by more than $1.1 million, a 67.9% increase from the first fiscal
quarter of last year."
Some factors that positively affected Investors Capital Holdings'
results include:
-- Effective management of administrative costs against the
Company's profit margin
-- By automating key business processes, and strengthening
the company's back-end technology and Web-based reporting
systems, Investors Capital Holdings provided their
national network of financial representatives with
superior tools to conduct more business and process more
trades. As a result, Investors Capital Holdings benefited
from "economies of scale" from fixed trading costs,
enabling the Company to execute more transactions while
stabilizing administrative expenses.
-- Increased marketing presence resulting from recruiting,
business development, advertising and public relations
initiatives
-- Investors Capital Holdings recognized heightened sales
volumes due in large part to the Company's greater focus
on marketing. Through intensive recruiting programs, the
Company continued to augment its registered representative
network with highly knowledgeable financial professionals.
Investors Capital Holdings also enhanced its workshops,
regional and national events, and seminar training
programs to support financial advisors in driving more
business and attracting new clients.
-- New product offerings create new revenue opportunities
-- With the introduction of EPASS (Eastern Point Advisors
Select Strategies), from Eastern Point Advisors, a
registered investment advisory subsidiary of Investors
Capital Holdings, the company was able to provide new
revenue opportunities for its financial professionals.
EPASS was introduced to offer clients active portfolio
management strategies constructed by some of the most
respected institutional managers such as Bear Stearns
and Neuberger Berman.
In addition, Eastern Point Advisors' newest mutual
fund, Eastern Point Advisors Rising Dividend Growth
Fund, introduced in March 2004, was embraced by
clients looking for a strong dividend bearing
investment option that invests in common stocks of
companies that have increased their dividends annually
for at least the last ten years.
About Eastern Point Advisors
Incorporated in 1995, Eastern Point Advisors is a registered
investment advisory subsidiary of Investors Capital Holdings (AMEX:
ICH) providing professionally managed portfolios of mutual funds,
variable annuities, and individual equity securities.
Eastern Point Advisors offers fee-based customizable money
management programs, and is the advisor to Eastern Point Advisors
Twenty Fund (ICTWX) and Eastern Point Advisors Rising Dividend Growth
Fund (ICRDX). The Twenty Fund is comprised of 20-30 mid- to large-cap
companies primarily of U.S. origin. The Rising Dividend Growth Fund
only invests in publicly traded securities, with a focus on common
stocks that have increased their dividends annually for a minimum of
10 percent per year for at least 10 years.
For enrollment information, please call (800) 462-4610, or visit
www.easternpoint.com.
About Investors Capital Holdings
Investors Capital Holdings (AMEX: ICH), of Lynnfield, Mass., is a
diversified financial services company founded to meet consumer 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 900 experienced financial
professionals located throughout the United States. Eastern Point
Advisors, Inc. is a registered investment advisory firm managing
portfolios for individual and institutional clients, as well as the
advisor to Eastern Point Advisors Twenty Fund and Eastern Point
Advisors Rising Dividend Growth Fund.
ICC Insurance Agency, Inc. is geared toward helping independent
brokers develop their life, disability, long-term care, and health
insurance businesses, and provides brokers with access to multiple
insurance carriers and products.
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.
For a prospectus containing more complete information, including
charges, expenses, risks, and investment objective, or for updated
performance call (800) 949-1422. Please read the prospectus carefully
before investing or sending money.
Investors Capital Corporation, Lynnfield, Massachusetts,
Distributor.
INVESTORS CAPITAL HOLDINGS, LTD. AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
(Unaudited)
QUARTERS ENDED
June 30,
2004 2003
------------- -------------
Current Assets $ 11,865,087 $ 9,383,619
---------- ---------
Property and Equipment, net 525,431 534,551
------- -------
Other Assets 372,691 544,886
------- -------
Total Assets $ 12,763,209 $ 10,463,056
============= =============
Current Liabilities $ 3,065,188 $ 2,042,563
--------- ---------
Long-term Liabilities 84,867 220,684
------ -------
Total Liabilities 3,150,055 2,263,247
--------- ---------
Total Stockholders' Equity 9,613,154 8,199,809
--------- ---------
Total Liabilities and Stockholders'
Equity $ 12,763,209 $ 10,463,056
============= =============
INVESTORS CAPITAL HOLDINGS, LTD. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
(Unaudited)
QUARTERS ENDED
June 30,
2004 2003
------------- -------------
Total Revenues $ 14,315,198 $ 9,728,483
---------- ---------
Commission and Advisory Fees 11,572,118 8,094,941
---------- ---------
Gross Profit 2,743,080 1,633,542
--------- ---------
Total Operating Expenses 2,362,263 1,729,982
--------- ---------
Operating income (loss) 380,817 (96,440)
------- -------
Interest and Income Taxes 176,801 12,998
------- ------
Net income (loss) $ 204,016 ($83,442)
============= =============
Earnings per common share
Diluted earnings per common share: $ 0.03 ($0.01)
============= =============
Basic earnings per common share: $ 0.04 ($0.01)
============= =============
CONTACT: Investors Capital
Chief Financial Officer
Timothy Murphy, 781-593-8565 ext. 226
tmurphy@investorscapital.com
or
Manager, Corporate Communications and Investor Relations
Darren Horwitz, 781-593-8565 ext. 261
dhorwitz@investorscapital.com