Investors Capital Holdings Ltd has a market cap of $21.5 million; its shares were traded at around $3.25 with a P/E ratio of 65 and P/S ratio of 0.3.
Highlight of Business Operations:Adjusted EBITDA is considered a non-GAAP financial measure as defined by Regulation G promulgated by the SEC under the Securities Act of 1933, as amended. Adjusted EBITDA should be considered in addition to, rather than as a substitute for, important GAAP financial measures including pre-tax income, net income and cash flows from operating activities. Items excluded from adjusted EBITDA are significant and necessary components to the operations of our business; therefore, adjusted EBITDA should only be used as a supplemental measure of our operating performance. First quarter 2010 EBITDA, as adjusted, was $0.11 million, a decrease of $0.43 million from first quarter 2009 EBITDA, as adjusted, of $0.54 million, primarily due to increased operating expenses.
The Company reported a $0.04 million operating loss and a $0.00 per share net loss in the current period versus $0.29 million operating income from operations or $0.01 per basic and diluted net income per share in the prior period.
Advisory services revenue increased by $1.0 million or 40.4% for quarter ended June 30, 2010 to $3.4 million, as compared to $2.4 million for the quarter ended June 30, 2009, largely due to market-related growth in asset values, as well as new investment contributions. Our advisor-directed managed assets program, A-MAP, where investment advisory services are provided directly by our independent representatives, continues to contribute the majority of advisory services revenue. Revenue from this program increased by $0.47 million or 35.1% due to an increase in assets under management which, in turn, reflected market-wide increases in asset values.
Our total expenses for the three months ended June 30, 2010 increased by $2.65 million, or 14.5%, primarily as a result of an increase in commissions and advisors fees of $2.15 million, or 14.9%, an increase in compensation of $0.34 million, or 20.2%, and an increase in regulatory, legal and professional fees of $0.19 million, or 30.7%, partially offset by a decrease in brokerage and clearing fees of $0.19 million, or 30.7%, and a decrease in other administrative costs by $0.11 million, or 37.5%.
As of June 30, 2010, cash and cash equivalents totaled $5.73 million as compared to $5.81 million as of March 31, 2010. Working capital as of June 30, 2010 was $6.85 million as compared to $6.66 million as of March 31, 2010. The ratio of current assets to current liabilities was 2.05 to 1 as of June 30, 2010 as compared to 1.84 to 1 as of March 31, 2010.
As of June 30, 2010, ICC had net capital of $3.27 million (i.e., an excess of $2.87 million) and a 1.82 to 1 net capital ratio as compared to net capital of approximately $3.39 million (i.e., an excess of $2.91 million) and a 2.13 to 1 net capital ratio as of March 31, 2010.
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