Investors Capital Holdings (ICH), the parent company of the Lynnfield, Mass.-based broker-dealer of the same name, said Wednesday that it had net income of $280,000 on total revenue of $20.32 million for the period ended Sept. 30. This represents a gain of $0.04 per share vs. a loss of $0.13 a year ago.
In the second fiscal quarter, revenue rose close to 1% from last year thanks to a jump in commission revenue and other fee income, the company says. Commission revenue rose 0.8% to $15.78 million, compared to $15.66 million in the year-ago period. Advisory fees, however, declined 2.5% to $3.98 million, compared to $4.08 million in the same period last year.
The company says that ongoing expense reductions and revenue growth translated into consecutive operating and net income postings for the first two quarters of the fiscal year. It has about 450 advisors and some $8 billion in assets under management.
“We continue to invest in the revenue-generating areas of our business, supplementing the success of our recruiting efforts with proven, organic growth initiatives such as practice management, advisory services, information technology, and value-added events,” said President and CEO Tim Murphy (left) in a press release.
The firm reported operating income of $430,000 compared to an operating loss of $1.39 million a year ago. Net income was $280,000 for the quarter compared to a net loss of $880,000 12 months earlier.
“Investors Capital continues to benefit from enhancing the overall quality of its representatives by providing broad practice management solutions to assist its advisors in growing their practices and recruiting established, high-performing representatives,” the company said in a statement.