Investors Capital Holdings, says it had net income of $430,000 for the quarter ended December 31, 2009, vs. a net loss of $610,000 in the same quarter a year ago. Thus, the firm has had been able to report three successive profitable quarters, despite the weak economic conditions.
A tight focus on reducing operating expenses and market-driven increases in trading and assets were major factors, the company says.
"Our recent string of earnings successes have come from steadfast focus on our long-term vision and goals, including recruitment of high-producing, profitable advisors, coupled with aggressive short-term strategic execution," says Timothy B. Murphy, president and CEO.
Total revenues rose about 15 percent to $21.1 million for the quarter, with commission revenues totaling $17.2 million and advisory fee revenues $3.2 million. Gross profit rose to $4.2 million from $4.0 million in the prior period.
The firm decreased its total operating expenses 28.0 percent to $3.5 million for the quarter from $4.8 million a year ago.
In terms of its advisor headcount, Investors Capital says some 550 representatives are now affiliated with the broker-dealer, down from over 600 a year ago. The company says that it is "emphasizing recruiting quality over quantity and culling lower-producing representatives."
The average recruited FA in recent months has about $228,600 in trailing-12-month sales, or production. And some $1,000,000-sales teams joined in 2009.
In addition, the company plans to pursue some "very aggressive" recruiting goals over the next three years, which it is confident it can hit.
Investors Capital is based in Lynnfield, Mass, and is the parent company of the broker-dealer Investors Capital Corporation.