EX-99.1 2 a5275744ex991.txt INVESTORS CAPITAL HOLDINGS, LTD. EXHIBIT 99.1 Exhibit 99.1 Investors Capital Holdings' Posts Gain in Revenue of 6.7% for Second Fiscal Quarter LYNNFIELD, Mass.--(BUSINESS WIRE)--Nov. 15, 2006--Investors Capital Holdings, Ltd. (AMEX: ICH) today announced results for the second fiscal quarter ended September 30, 2006. Total revenue was approximately $17.3 million, an increase of $1.08 million or 6.7% for the quarter ended September 30, 2006, compared with total revenue of approximately $16.2 million for the quarter ended September 30, 2005. Operating loss for the second fiscal quarter was $79,909, slightly improved from an operating loss of $81,015 from the comparative quarter last year. Net loss for the second fiscal quarter ended September 30, 2006 was $169,835 or $0.03 per share, versus a net loss of $42,836 or $0.01 per share, from the comparative quarter ended September 30, 2005. 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 Services, 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. INVESTORS CAPITAL HOLDINGS, LTD. AND SUBSIDIARIES ====================================================================== CONDENSED CONSOLIDATED BALANCE SHEETS Periods Ended September 30, March 31, 2006 2006 ------------- ------------ Cash and Cash Equivalents $4,787,037 $7,718,682 Current and Other Assets 8,774,783 6,834,647 Property and Equipment, net 1,036,043 772,498 ------------- ------------ Total Assets $14,597,863 $15,325,827 ============= ============ Current Liabilities 4,261,863 4,739,744 Total Liabilities 4,261,863 4,739,744 Total Stockholders' Equity 10,336,000 10,586,083 ------------- ------------ Total Liabilities and Stockholders' Equity $14,597,863 $15,325,827 ============= ============ INVESTORS CAPITAL HOLDINGS, LTD. AND SUBSIDIARIES ====================================================================== CONDENSED CONSOLIDATED STATEMENTS OF INCOME Quarters Ended September 30, September 30, 2006 2005 ------------- ------------- Revenues Commission 15,289,439 14,359,465 Advisory Fees 1,444,068 1,299,799 Other Fee Income 129,635 98,440 Interest, dividend and investment 188,245 178,230 Marketing revenue 204,533 234,310 ------------- ------------- Total Revenue 17,255,919 16,170,244 Commission and advisory fees 16,733,507 15,659,264 ------------- ------------- Gross Profit 3,115,594 2,861,814 Operating Expenses: Advertising 231,797 1,820,456 Communications 134,633 145,926 ------------- ------------- Total Selling Expenses 366,430 1,966,382 Compensation and Benefits 1,710,572 1,383,911 Regulatory, Legal and Professional 730,702 875,714 Occupancy 231,503 169,891 Other Administrative Expenses 156,296 185,331 ------------- ------------- Total Administrative Expenses 2,829,073 2,614,847 Total Operating Expenses 3,195,503 2,942,829 Operating (Loss) income (79,909) (81,015) Other expense: 7,570 15,517 Net (Loss) income before taxes (87,479) (96,532) Benefit (Provision) for income taxes (82,356) 53,695 Net (Loss) income (169,835) (42,835) Basic earnings per common share $(0.03) $(0.01) 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