Exhibit 99.1
Investors Capital Holdings' Revenue
Climbs Twenty Nine Percent In First Fiscal Quarter
LYNNFIELD, Mass.--(BUSINESS WIRE)--Aug. 17, 2006--Investors
Capital Holdings, Ltd. (AMEX: ICH) today announced that for the first
fiscal quarter ended June 30, 2006, total revenues increased by more
than $4.4 million, or 29% percent to $19.6 million, as compared to
revenues of $15.2 million for the comparative quarter ended June 30,
2005.
Net loss for the first fiscal quarter ended June 30, 2006 was
$597,622 or $0.10 per share, versus net income of $107,226 or $0.02
per share, from the comparative quarter ended June 30, 2005. Operating
loss for the first fiscal quarter was $1,033,417, as compared to
operating income of $206,968 from the comparative quarter last year.
"Our impressive first quarter revenue growth can be directly
attributed to the talent of our registered representatives and the
sales and marketing initiatives we have instituted to aid them in
growing their independent practices," said Ted Charles, Chief
Executive Officer and Chairman, Investors Capital Holdings, Ltd.
"Despite a one-time stock award, which suppressed our excellent
revenue growth and impacted our operating and net income, we are
confident the company will continue its impressive growth and improve
its profit margin moving forward."
Charles continued, "Our broker-dealer, Investors Capital
Corporation, benefited from a substantial increase in its securities
and insurance business, while our investment advisor subsidiary,
Investors Capital Advisory, continued to excel. We also continued to
see sales growth across our investment centers in Massachusetts, New
Hampshire and Florida."
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
Periods Ended
June 30, 2006 March 31, 2006
-------------- --------------
Cash and Cash Equivalents $ 7,060,525 $ 7,718,682
Current and Other Assets 6,558,553 6,834,647
Property and Equipment, net 827,269 772,498
-------------- --------------
Total Assets $ 14,446,347 $ 15,325,827
============== ==============
Current Liabilities 4,051,456 4,739,744
Total Liabilities 4,051,456 4,739,744
Total Stockholders' Equity 10,394,881 10,586,083
-------------- --------------
Total Liabilities and Stockholders'
Equity $ 14,446,337 $ 15,325,827
============== ==============
INVESTORS CAPITAL HOLDINGS, LTD. AND SUBSIDIARIES
=================================================
CONDENSED CONSOLIDATED STATEMENTS OF
INCOME
Quarters Ended
June 30, 2006 June 30, 2005
------------- -------------
Revenues
Commission $ 17,458,902 $ 13,368,068
Advisory Fees 1,568,429 1,155,982
Other Fee Income 66,397 103,438
Other Income and Marketing 508,444 565,748
------------- -------------
Total Revenue 19,602,172 15,193,236
Commission and advisory fees 15,815,220 11,982,282
------------- -------------
Gross Profit 3,786,952 3,210,954
Operating Expenses:
Advertising 269,627 242,607
Communications 65,767 155,508
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Total Selling Expenses 335,394 398,115
Compensation and Benefits 2,716,025 1,735,128
Regulatory, Legal and Professional 1,202,340 473,144
Occupancy 234,006 154,091
Other Administrative Expenses 332,604 243,508
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Total Administrative Expenses 4,484,975 2,605,871
Total Operating Expenses 4,820,369 3,003,986
Operating (Loss) income (1,033,417) 206,968
Other expense: 8,032 3,334
Net (Loss) income before taxes (1,041,449) 203,634
Benefit (Provision) for income taxes 443,827 (96,408)
Net (Loss) income (597,622) 107,226
Basic earnings per common share $ (0.10) $ 0.02
Diluted earnings per common share $ (0.10) $ 0.02
CONTACT: Investors Capital Holdings, Ltd.
Timothy Murphy, 781-593-8565 ext. 4726
Chief Financial Officer
tmurphy@investorscapital.com
or
Darren Horwitz, 781-593-8565 ext. 4761
Manager, Corporate Communications
dhorwitz@investorscapital.com