Investors Capital Holdings Ltd. posted net income of $261,682 for its first quarter ended June 30 compared with a $1.3 million loss for the same period last year, company officials reported Tuesday. Officials attributed the company's income turnaround to expense-reduction moves made in the fourth quarter of fiscal 2011.
Total company expenses fell $1.91 million or 8.6%, resulting in operating income of $450,000 versus an operating loss of $820,000 in its first quarter last year.
ICH's first-quarter revenue decreased 3 percent to $20.8 million compared with $21.4 million in first quarter 2011. Officials said the decline resulted from a reduction in commission revenue, which accounts for an estimated 77 percent of total revenue.
Commission revenue fell 4.9 percent to $16.1 million versus $16.9 million in last year's first quarter, due to lower trading volume resulting from cautious investor sentiment brought on by fluctuating, uncertain market conditions, ICH said. Advisory fees, which constitute 19.8 percent of total revenue, declined 1.7 percent to $4.11 million, compared to $4.18 million for the same quarter last year.
The firm's average revenue per representative, based on a rolling
12-month period, rose at the end of the first quarter to $169,934, an
increase of 5.6% over $160,943 for the prior rolling 12-month period.
Lynnfield, Mass.-based Investors Capital Holdings is a financial services holding company that operates primarily through its broker-dealer and investment advisor subsidiary, Investors Capital Corporation.