Exhibit 99.1
Investors Capital Holdings Celebrates Its End of Fiscal Year with 23% Increase
in Revenue While Approaching Its First 20 Million Dollar Quarter
LYNNFIELD, Mass.--(BUSINESS WIRE)--June 30, 2006--
Company's Service First Strategy Combined With Strength of Financial
Representatives Continues To Drive Impressive Growth.
Investors Capital Holdings, Ltd. (AMEX: ICH) today reported that total
revenue for the fiscal year-ended March 31, 2006, was approximately $68 million,
an increase of more than 23% from total revenue of $55.2 million from the prior
year. Net income was $449,638, while basic and diluted earnings per share were
$0.08 for fiscal year-ended March 31, 2006 as compared to net income of $619,109
and basic and diluted earnings per share of $0.11 and $0.10 respectively for
fiscal year-ended March 31, 2005.
In addition to strong growth within the Company's primary broker dealer
business, Investors Capital Corporation, the advisory services sector
experienced approximately 40% growth in sales to $5.2 million. This increase was
largely due to greater awareness of the company's fee-based managed platforms.
"The close of Investors Capital Holdings fourth quarter and 2005 fiscal
year marks not only a period of strong operating performance for the company,
including record revenues and our first $20 million quarter, but also further
demonstrates that our service first strategy is working," said Ted Charles,
president and CEO, Investors Capital Holdings. "Driving these impressive results
is a dedicated Investors Capital staff committed to a program of unparalleled
service for our nationwide network of representatives and our concerted effort
to increase assets under management in our numerous fee-based platforms."
Charles continued, "As a result of the unflagging effort of our experienced
team, we have continued to attract the nation's top financial professionals
while further developing our strong advisory business. Today, our goal to become
one of the nation's leading independent broker dealers by building our
reputation, strengthening our marketing effort, and constantly upgrading our
service, is not only within reach, but is a reality."
About Investors Capital Holdings
Investors Capital Holdings (AMEX:ICH) of Lynnfield, MA is a diversified
financial services company founded to meet consumer needs in today's financial
markets. The company owns and operates Investors Capital Corporation, Investors
Capital Advisory, Eastern Point Advisors and ICC Insurance Agency, Inc.
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 Corporation, Lynnfield, Massachusetts, Distributor.
(Tables to Follow)
INVESTORS CAPITAL HOLDINGS, LTD. AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
YEARS ENDED
March 31,
2006 2005
----------- -----------
Cash and Cash Equivalents $ 7,718,682 $ 8,618,261
----------- -----------
Current and Other Assets 6,834,647 4,920,179
----------- -----------
Property and Equipment, net 772,498 571,198
----------- -----------
Total Assets $15,325,827 $14,109,638
============ ============
Current Liabilities 4,739,744 3,926,855
----------- -----------
Long-term Liabilities -0- -0-
----------- -----------
Total Liabilities 4,739,744 3,926,855
----------- -----------
Total Stockholders' Equity 10,586,083 10,182,783
----------- -----------
Total Liabilities and Stockholders' Equity $15,325,827 $14,109,638
============ ============
INVESTORS CAPITAL HOLDINGS, LTD. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
YEARS ENDED
March 31,
2006 2005
------------ ------------
Revenues
Commission $ 60,028,731 $ 48,660,052
Advisory Fees 5,147,907 3,702,556
Other Fee Income 1,142454 1,189,737
Other Income and Marketing 1,659,776 1,613,189
------------ ------------
Total Revenue 67,978,868 55,165,534
Commission and advisory fees 54,609,596 44,025,004
------------ ------------
Gross Profit 13,369,272 11,140,530
------------ ------------
Operating Expenses:
Compensation and Benefits 6,344,945 5,713,028
Regulatory, Legal and Professional 2,965,689 1,527,256
Advertising 895,658 763,192
Occupancy 695,003 585,646
Communications 603,964 536,386
Other Administrative Expenses 968,825 1,055,368
------------ ------------
Total Operating Expenses 12,474,084 10,180,876
------------ ------------
Operating income 895,188 959,654
------------ ------------
Other expense: 24,222 71,512
------------ ------------
Income before taxes 870,966 888,142
------------ ------------
Provision for income taxes 421,328 269,033
------------ ------------
Net income $ 449,638 $ 619,109
============= =============
Basic earnings per common share $ 0.08 $ 0.11
Diluted earnings per common share $ 0.08 $ 0.10
============= =============
CONTACT: Investors Capital Holdings, Ltd.
Timothy Murphy, 781-593-8565 ext. 226
Chief Financial Officer
tmurphy@investorscapital.com
or
Darren Horwitz, 781-593-8565 ext. 261
Manager, Corporate Communications
dhorwitz@investorscapital.com