Lynnfield, Mass.-based Investors Capital Holdings, the financial-services holding company of independent broker/dealer Investors Capital Corporation, has reported net income of $0.21 million for its second fiscal quarter ended September 30, 2009, vs. a net loss of $0.49 million for same quarter of 2008.

The firm also posted a profit for its first fiscal quarter ended June 30, 2009.

“Prudent spending and effective cost cutting were primary catalysts in the financial turnaround,” says President and CEO Timothy B. Murphy. “For the second quarter in a row, we’ve managed to generate a profit in a market that has depressed total revenues for Investors Capital and other firms in our space.”

Total revenues for the most recent quarter fell 18.0 percent to $18.9 million from $23.1 million in the prior quarter. The firm decreased total operating expenses 28.3% to $3.4 million for the quarter from $4.7 million in the prior period,.

Adjusted EBITDA, a key metric utilized by the firm in evaluating its financial performance, was $0.59 million compared to $0.10 million for the prior period.

“New advisor interest in Investors Capital has been strong and recruiting has been very robust, a testament to our unique brand as well as the promise of the independent channel,” explains. Murphy. “Achieving our corporate goals for profitability and service is compelling evidence that Investors Capital is well-positioned to capitalize on its potential in the years to come.”

As of September 30, 2009, Investors Capital has 637 financial advisors in its network, down from 687 a year ago. The company says – as part of the Quality over Quantity campaign, it is “bringing on higher-producing advisors.”

For example, advisors that joined in the 2009 fiscal year (ending March 31, 2009) had average trailing-12 month fees and commissions of $248,000. In addition, lower-producing advisors are exiting the firm.