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<P style="TEXT-ALIGN: center"><B><FONT face="TimesNewRomanPS-BoldMT,Times New Roman,Times,serif">UNITED STATES<BR>
</FONT></B><B><FONT face="TimesNewRomanPS-BoldMT,Times New Roman,Times,serif">SECURITIES AND EXCHANGE COMMISSION<BR>
Washington, D.C. 20549 <BR>
__________</FONT></B></P>
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     <TD noWrap align=center><B><FONT face="TimesNewRomanPS-BoldMT,Times New Roman,Times,serif">FORM 8-K</FONT></B></TD></TR></TABLE></P>
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     <TD noWrap align=center><B><FONT face="TimesNewRomanPS-BoldMT,Times New Roman,Times,serif">CURRENT REPORT</FONT></B><BR>
<B><FONT face="TimesNewRomanPS-BoldMT,Times New Roman,Times,serif">Pursuant to Section 13 or 15(d) of the</FONT></B><BR>
<B><FONT face="TimesNewRomanPS-BoldMT,Times New Roman,Times,serif">Securities Exchange Act of 1934</FONT></B></TD></TR></TABLE></P>
<P style="TEXT-ALIGN: left"><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">Date of Report (Date of earliest event reported): July 1, 2010</FONT></P>
<P style="TEXT-ALIGN: center"><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">Investors Capital Holdings, Ltd.<BR>
</FONT><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">(Exact name of registrant as specified in its charter)</FONT></P>
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     <TD noWrap align=center><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">Delaware</FONT>&nbsp;</TD>
     <TD noWrap align=center><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">333-43664</FONT>&nbsp;</TD>
     <TD noWrap align=center><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">04-3284631</FONT>&nbsp;</TD></TR>
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     <TD noWrap align=center><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">(State or Other Jurisdiction</FONT>&nbsp;</TD>
     <TD noWrap align=center><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">(Commission</FONT>&nbsp;</TD>
     <TD noWrap align=center><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">(IRS Employer</FONT>&nbsp;</TD></TR>
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     <TD noWrap align=center><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">of Incorporation)</FONT>&nbsp;</TD>
     <TD noWrap align=center><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">File Number)</FONT>&nbsp;</TD>
     <TD noWrap align=center><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">Identification No.)</FONT>&nbsp;</TD></TR></TABLE></DIV><BR>
<P style="TEXT-ALIGN: center"><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">230 Broadway East<BR>
Lynnfield, MA 01940<BR>
</FONT><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">(Address of Principal Executive Offices) (Zip Code)</FONT></P>
<P style="TEXT-ALIGN: center"><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">Registrant's telephone number, including area code: (800) 949-1422</FONT></P>
<P style="TEXT-ALIGN: left"><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:</FONT></P>
<P style="TEXT-ALIGN: left"><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">[] (Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)</FONT></P>
<P style="TEXT-ALIGN: left"><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">[] (Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)</FONT></P>
<P style="TEXT-ALIGN: left"><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">[] (Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))</FONT></P>
<P style="TEXT-ALIGN: left"><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">[] (Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))</FONT></P>
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<P style="TEXT-ALIGN: left"><B><FONT face="TimesNewRomanPS-BoldMT,Times New Roman,Times,serif">Item 2.02 Results of Operations and Financial Condition.</FONT></B></P>
<P style="TEXT-ALIGN: left"><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">On July 1, 2010 the Registrant issued a news release, a copy of which is set forth in Exhibit 2.02 hereto, announcing financial results for the Registrant for the fiscal year ended March 31, 2010.</FONT></P>
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     <TD noWrap align=center><B><FONT face="TimesNewRomanPS-BoldMT,Times New Roman,Times,serif">SIGNATURES</FONT></B></TD></TR></TABLE></P>
<P style="TEXT-ALIGN: left"><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.</FONT></P>
<P style="TEXT-ALIGN: left"><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Investors Capital Holdings, Ltd.</FONT></P>
<P style="TEXT-ALIGN: left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">By <U>/s/ </U></FONT><I><FONT face="TimesNewRomanPS-ItalicMT,Times New Roman,Times,serif"><U>Timothy B. Murphy&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U><BR>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </FONT></I><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">Timothy B. Murphy, Chief Executive Officer</FONT></P>
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     <TD noWrap><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">Date: July 1, 2010</FONT></TD></TR></TABLE></P>
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     <TD noWrap align=right><B><FONT face="TimesNewRomanPS-BoldMT,Times New Roman,Times,serif">Exhibit 2.02</FONT></B></TD></TR></TABLE></P>
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     <TD noWrap><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">From Investors Capital Corporation</FONT><BR>
<BR>
<FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">NEWS RELEASE</FONT><BR>
<BR>
<FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">Contact:</FONT><BR>
<FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">Robert Foney, Chief Marketing Officer</FONT><BR>
<FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">781.477.4814</FONT><BR>
<FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">rfoney@investorscapital.com</FONT><BR>
<FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">www.investorscapital.com</FONT></TD></TR></TABLE></P>
<P style="TEXT-ALIGN: left"><B><FONT face="TimesNewRomanPS-BoldMT,Times New Roman,Times,serif">Investors Capital Posts Net Profit for FY 2010</FONT></B></P>
<P style="TEXT-ALIGN: left"><B><FONT face="TimesNewRomanPS-BoldMT,Times New Roman,Times,serif">Prudent expense management and focus on quality advisors results in profits; New advisor average GDC tops $250k</FONT></B></P>
<P style="TEXT-ALIGN: left"><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">Lynnfield, Mass. (July 1, 2010) - Investors Capital Holdings, Ltd. (NYSE Amex: ICH), a financial services holding company, posted annual net income of $0.32 million for the fiscal year (FY) ended March 31, 2010 compared to a net loss of $1.83 million for the prior period (FY 2009).</FONT></P>
<P style="TEXT-ALIGN: left"><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">Adjusted EBITDA was $1.48 million for FY 2010 compared to a negative $0.26 million in FY 2009. Adjusted EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization), described below, is a key metric utilized by the firm in evaluating its financial performance.</FONT></P>
<P style="TEXT-ALIGN: left"><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">The turnaround, achieved despite a market-driven 3.0% decline in overall revenue, was aided by a 6.4% increase in advisory revenue and a 21.4% decrease in operating expenses from the implementation of cost cutting initiatives.</FONT></P>
<P style="TEXT-ALIGN: left"><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">The rise in the Company's advisory revenues reflects an increase in assets under management, surpassing the $1 billion level in FY 2010 due to rising markets, improved managed portfolio performance, and additional investor contributions. Advisory services are delivered through Investors Capital Advisory Services (ICAS), the investment advisory division of Investors Capital Corporation (ICC), ICH's wholly-owned broker-dealer and registered investment advisor subsidiary.</FONT></P>
<P style="TEXT-ALIGN: left"><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">The Company reduced its operating expenses by 21.4% for FY 2010, including a 40.3% decline in advertising and communications expense, a 39.2% decrease in regulatory, legal and professional expenses, and a 12.3% drop in compensation and benefits. These reductions enabled the Company to post operating income of $0.86 million in FY 2010 compared to an operating loss of $2.17 million in FY 2009.</FONT></P>
<P style="TEXT-ALIGN: left"><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">Investors Capital continues to benefit from improving overall quality of its registered representatives, a key component of its strategy for achieving growth in revenues and net income.</FONT></P>
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<P style="TEXT-ALIGN: left"><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">The firm strives continually to improve the quality of its representatives by helping them grow their practices, terminating representatives with low-production or quality of services, and recruiting more established, higher-quality representatives. Assisted by these efforts, the firm's average revenue per representative rose to $137,961 for FY 2010, an increase of 12.1% compared to FY 2009.</FONT></P>
<P style="TEXT-ALIGN: left"><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">An even more encouraging trend relates to newly recruited advisors. New representatives joining Investors Capital from other broker/dealers in FY 2010 had an average trailing 12-month gross production of $254,052, compared with $247,742 for FY 2009, and $217,717 for FY 2008, a testament to the firm's increased brand awareness and recruiting success.</FONT></P>
<P style="TEXT-ALIGN: left"><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">Investors Capital's net capital position was a healthy $3.39 million at March 31, 2010 (an excess of $2.91 million) versus $1.94 million (an excess of $1.41 million) a year earlier. The firm's net capital ratio improved to 2.13:1 for FY 2010 compared to 4.10:1 for FY 2009. The SEC Uniform Net Capital Rule (Rule 15c3-1) requires that ICC maintain net capital of $100,000 and a ratio of specified aggregate indebtedness to net capital (a "net capital ratio") not to exceed 15 to 1.</FONT></P>
<P style="TEXT-ALIGN: left"><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">"When I look around at the current environment we're in, there are many lessons to be learned," said Timothy B. Murphy, President and CEO of Investors Capital Holdings, Ltd. "We see net capital violations and firms growing too fast by sacrificing quality for quantity. Our strategy of controlled growth, prudent management of expenses, and long-term vision to maximize operational efficiency has enabled us to thrive during the recent market disruption."</FONT></P>
<P style="TEXT-ALIGN: left"><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">"If we continue to do what we do best, live our brand, and provide our representatives with 5-star service every day, we put ourselves in the best possible position to recruit higher-end advisors and drive consistent growth for many years to come," Mr. Murphy added.</FONT></P>
<P style="TEXT-ALIGN: left"><B><FONT face="TimesNewRomanPS-BoldMT,Times New Roman,Times,serif">About Investors Capital Holdings, Ltd.:</FONT></B></P>
<P style="TEXT-ALIGN: left"><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">Investors Capital Holdings, Ltd. (NYSE Amex: ICH) of Lynnfield, Massachusetts is a financial services holding company that operates primarily through its independent broker/dealer and investment advisor subsidiary, Investors Capital Corporation. Our mission is to provide premier, concierge-level service and support to our valued registered representatives, including advisory programs, strategic practice management and marketing services, and technology, to help them grow their businesses and exceed their clients' expectations. Business units include Investors Capital Corporation, ICC Insurance Agency, Inc., and Investors Capital Holdings Securities Corporation. For more information, please call (800) 949-1422 x4814 or visit www.investorscapital.com.</FONT></P>
<P style="TEXT-ALIGN: left"><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">Certain statements contained in this press release that are not historical fact may be deemed to be forward-looking statements under federal securities laws. There are many factors that could cause our future actual results to differ materially from those suggested by or forecast in the forward-looking statements. Such factors include, but are not limited to, general economic conditions, interest rate fluctuations, regulatory changes affecting the financial services industry, competitive factors effecting demand for our services, availability of funding, and other risks including those identified in the Company's Securities and Exchange Commission filings.</FONT></P>
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<P style="TEXT-ALIGN: left"><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">Investors Capital Holdings, Ltd., 230 Broadway, Lynnfield, Massachusetts 01940, Distributor.</FONT></P>
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     <TD align=center colSpan=4><B><FONT face="Times New Roman" size=2>INVESTORS CAPITAL HOLDINGS, LTD. AND SUBSIDIARIES</FONT></B></TD></TR>
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     <TD align=center colSpan=4><B><FONT face="Times New Roman" size=2>CONSOLIDATED BALANCE SHEETS</FONT></B></TD></TR>
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     <TD noWrap align=left><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD>
     <TD noWrap align=center><B><FONT face="Times New Roman" size=2>March 31,</FONT></B><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD>
     <TD noWrap align=center></TD>
     <TD noWrap align=center><B><FONT face="Times New Roman" size=2>March 31,</FONT></B><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD></TR>
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     <TD noWrap align=left><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD>
     <TD style="BORDER-BOTTOM: #000000 2px solid" noWrap align=center><B><FONT face="Times New Roman" size=2>2010</FONT></B><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD>
     <TD noWrap align=center></TD>
     <TD style="BORDER-BOTTOM: #000000 2px solid" noWrap align=center><B><FONT face="Times New Roman" size=2>2009</FONT></B><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD></TR>
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     <TD noWrap align=left><B><FONT face="Times New Roman" size=2>Assets</FONT></B><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD>
     <TD noWrap align=left><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD>
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     <TD noWrap align=left><B><FONT face="Times New Roman" size=2>Current Assets</FONT></B><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD>
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     <TD noWrap align=left><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD></TR>
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     <TD noWrap align=left><FONT face="Times New Roman" size=2>Cash and cash equivalents</FONT><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD>
     <TD noWrap align=right><FONT face="Times New Roman" size=2>$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 5,812,865</FONT><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD>
     <TD noWrap align=right></TD>
     <TD noWrap align=right><FONT face="Times New Roman" size=2>$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 6,151,613</FONT><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD></TR>
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     <TD noWrap align=left><FONT face="Times New Roman" size=2>Deposit with clearing organization, restricted</FONT><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD>
     <TD noWrap align=right><FONT face="Times New Roman" size=2>175,000</FONT><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD>
     <TD noWrap align=right></TD>
     <TD noWrap align=right><FONT face="Times New Roman" size=2>175,000</FONT><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD></TR>
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     <TD noWrap align=left><FONT face="Times New Roman" size=2>Accounts receivable</FONT><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD>
     <TD noWrap align=right><FONT face="Times New Roman" size=2>6,042,188</FONT><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD>
     <TD noWrap align=right></TD>
     <TD noWrap align=right><FONT face="Times New Roman" size=2>5,198,575</FONT><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD></TR>
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     <TD noWrap align=left><FONT face="Times New Roman" size=2>Accounts receivable - Fidelity Bond</FONT><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD>
     <TD noWrap align=right><FONT face="Times New Roman" size=2>-</FONT><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD>
     <TD noWrap align=right></TD>
     <TD noWrap align=right><FONT face="Times New Roman" size=2>956,223</FONT><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD></TR>
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     <TD noWrap align=left><FONT face="Times New Roman" size=2>Note receivable</FONT><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD>
     <TD noWrap align=right><FONT face="Times New Roman" size=2>140,598</FONT><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD>
     <TD noWrap align=right></TD>
     <TD noWrap align=right><FONT face="Times New Roman" size=2>8,674</FONT><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD></TR>
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     <TD noWrap align=left><FONT face="Times New Roman" size=2>Loans receivable from registered representatives (current), net of allowance</FONT><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD>
     <TD noWrap align=right><FONT face="Times New Roman" size=2>769,263</FONT><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD>
     <TD noWrap align=right></TD>
     <TD noWrap align=right><FONT face="Times New Roman" size=2>737,571</FONT><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD></TR>
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     <TD noWrap align=left><FONT face="Times New Roman" size=2>Prepaid income taxes</FONT><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD>
     <TD noWrap align=right><FONT face="Times New Roman" size=2>559,007</FONT><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD>
     <TD noWrap align=right></TD>
     <TD noWrap align=right><FONT face="Times New Roman" size=2>295,608</FONT><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD></TR>
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     <TD noWrap align=left><FONT face="Times New Roman" size=2>Securities owned, at fair value</FONT><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD>
     <TD noWrap align=right><FONT face="Times New Roman" size=2>57,933</FONT><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD>
     <TD noWrap align=right></TD>
     <TD noWrap align=right><FONT face="Times New Roman" size=2>85,436</FONT><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD></TR>
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     <TD noWrap align=left><FONT face="Times New Roman" size=2>Investments</FONT><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD>
     <TD noWrap align=right><FONT face="Times New Roman" size=2>50,000</FONT><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD>
     <TD noWrap align=left></TD>
     <TD noWrap align=left><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD></TR>
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     <TD noWrap align=left><FONT face="Times New Roman" size=2>Prepaid expenses</FONT><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" noWrap align=right><FONT face="Times New Roman" size=2>957,674</FONT><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD>
     <TD noWrap align=right></TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" noWrap align=right><FONT face="Times New Roman" size=2>858,679</FONT><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD></TR>
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     <TD noWrap align=left><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD>
     <TD noWrap align=right><FONT face="Times New Roman" size=2>14,564,528</FONT><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD>
     <TD noWrap align=right></TD>
     <TD noWrap align=right><FONT face="Times New Roman" size=2>14,467,379</FONT><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD></TR>
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     <TD noWrap align=left><B><FONT face="Times New Roman" size=2>Property and equipment, net</FONT></B><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD>
     <TD noWrap align=right><FONT face="Times New Roman" size=2>774,182</FONT><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD>
     <TD noWrap align=right></TD>
     <TD noWrap align=right><FONT face="Times New Roman" size=2>950,620</FONT><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD></TR>
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     <TD noWrap align=left><B><FONT face="Times New Roman" size=2>Long Term Investments</FONT></B><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD>
     <TD noWrap align=left><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD>
     <TD noWrap align=left></TD>
     <TD noWrap align=left><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD></TR>
<TR vAlign=bottom>
     <TD noWrap align=left><FONT face="Times New Roman" size=2>Loans receivable from registered representatives</FONT><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD>
     <TD noWrap align=right><FONT face="Times New Roman" size=2>292,884</FONT><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD>
     <TD noWrap align=right></TD>
     <TD noWrap align=right><FONT face="Times New Roman" size=2>129,358</FONT><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD></TR>
<TR vAlign=bottom>
     <TD noWrap align=left><FONT face="Times New Roman" size=2>Note receivable</FONT><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD>
     <TD noWrap align=right><FONT face="Times New Roman" size=2>595,000</FONT><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD>
     <TD noWrap align=right></TD>
     <TD noWrap align=right><FONT face="Times New Roman" size=2>747,617</FONT><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD></TR>
<TR vAlign=bottom>
     <TD noWrap align=left><FONT face="Times New Roman" size=2>Investments</FONT><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD>
     <TD noWrap align=right><FONT face="Times New Roman" size=2>184,319</FONT><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD>
     <TD noWrap align=right></TD>
     <TD noWrap align=right><FONT face="Times New Roman" size=2>127,143</FONT><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD></TR>
<TR vAlign=bottom>
     <TD noWrap align=left><FONT face="Times New Roman" size=2>Non-qualified deferred compensation investment</FONT><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD>
     <TD noWrap align=right><FONT face="Times New Roman" size=2>929,897</FONT><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD>
     <TD noWrap align=right></TD>
     <TD noWrap align=right><FONT face="Times New Roman" size=2>533,665</FONT><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD></TR>
<TR vAlign=bottom>
     <TD noWrap align=left><FONT face="Times New Roman" size=2>Cash surrender value life insurance policies</FONT><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" noWrap align=right><FONT face="Times New Roman" size=2>551,398</FONT><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD>
     <TD noWrap align=right></TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" noWrap align=right><FONT face="Times New Roman" size=2>406,089</FONT><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD></TR>
<TR vAlign=bottom>
     <TD noWrap align=left><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD>
     <TD noWrap align=right><FONT face="Times New Roman" size=2>2,553,498</FONT><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD>
     <TD noWrap align=right></TD>
     <TD noWrap align=right><FONT face="Times New Roman" size=2>1,943,872</FONT><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD></TR>
<TR vAlign=bottom>
     <TD noWrap align=left><B><FONT face="Times New Roman" size=2>Other Assets</FONT></B><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD>
     <TD noWrap align=left><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD>
     <TD noWrap align=left></TD>
     <TD noWrap align=left><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD></TR>
<TR vAlign=bottom>
     <TD noWrap align=left><FONT face="Times New Roman" size=2>Other assets</FONT><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD>
     <TD noWrap align=right><FONT face="Times New Roman" size=2>25,069</FONT><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD>
     <TD noWrap align=right></TD>
     <TD noWrap align=right><FONT face="Times New Roman" size=2>44,511</FONT><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD></TR>
<TR vAlign=bottom>
     <TD noWrap align=left><FONT face="Times New Roman" size=2>Deferred tax asset, net</FONT><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD>
     <TD noWrap align=right><FONT face="Times New Roman" size=2>838,773</FONT><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD>
     <TD noWrap align=right></TD>
     <TD noWrap align=right><FONT face="Times New Roman" size=2>1,097,952</FONT><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD></TR>
<TR vAlign=bottom>
     <TD noWrap align=left><FONT face="Times New Roman" size=2>Deferred tax asset, net</FONT><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" noWrap align=right><FONT face="Times New Roman" size=2>138,497</FONT><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD>
     <TD noWrap align=right></TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" noWrap align=right><FONT face="Times New Roman" size=2>-</FONT><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD></TR>
<TR vAlign=bottom>
     <TD noWrap align=left><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD>
     <TD noWrap align=right><FONT face="Times New Roman" size=2>1,002,339</FONT><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD>
     <TD noWrap align=right></TD>
     <TD noWrap align=right><FONT face="Times New Roman" size=2>1,142,463</FONT><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD></TR>
<TR>
     <TD colSpan=4><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD></TR>
<TR vAlign=bottom>
     <TD noWrap align=left><B><FONT face="Times New Roman" size=2>TOTAL ASSETS</FONT></B><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD>
     <TD style="BORDER-BOTTOM: #000000 3px double" noWrap align=right><B><FONT face="Times New Roman" size=2>$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 18,894,547</FONT></B><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD>
     <TD noWrap align=right></TD>
     <TD style="BORDER-BOTTOM: #000000 3px double" noWrap align=right><B><FONT face="Times New Roman" size=2>$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;18,504,334</FONT></B><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD></TR>
<TR>
     <TD colSpan=4><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD></TR>
<TR vAlign=bottom>
     <TD noWrap align=left><B><FONT face="Times New Roman" size=2>Liabilities and Stockholders' Equity</FONT></B><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD>
     <TD noWrap align=left><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD>
     <TD noWrap align=left></TD>
     <TD noWrap align=left><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD></TR>
<TR vAlign=bottom>
     <TD noWrap align=left><B><FONT face="Times New Roman" size=2>Current Liabilities</FONT></B><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD>
     <TD noWrap align=left><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD>
     <TD noWrap align=left></TD>
     <TD noWrap align=left><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD></TR>
<TR vAlign=bottom>
     <TD noWrap align=left><FONT face="Times New Roman" size=2>Accounts payable</FONT><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD>
     <TD noWrap align=right><FONT face="Times New Roman" size=2>$ 817,761</FONT><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD>
     <TD noWrap align=right></TD>
     <TD noWrap align=right><FONT face="Times New Roman" size=2>$ 2,029,286</FONT><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD></TR>
<TR vAlign=bottom>
     <TD noWrap align=left><FONT face="Times New Roman" size=2>Accrued expenses</FONT><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD>
     <TD noWrap align=right><FONT face="Times New Roman" size=2>2,358,656</FONT><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD>
     <TD noWrap align=right></TD>
     <TD noWrap align=right><FONT face="Times New Roman" size=2>2,347,761</FONT><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD></TR>
<TR vAlign=bottom>
     <TD noWrap align=left><FONT face="Times New Roman" size=2>Commissions payable</FONT><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD>
     <TD noWrap align=right><FONT face="Times New Roman" size=2>3,488,415</FONT><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD>
     <TD noWrap align=right></TD>
     <TD noWrap align=right><FONT face="Times New Roman" size=2>2,860,093</FONT><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD></TR>
<TR vAlign=bottom>
     <TD noWrap align=left><FONT face="Times New Roman" size=2>Notes payable</FONT><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD>
     <TD noWrap align=right><FONT face="Times New Roman" size=2>1,130,922</FONT><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD>
     <TD noWrap align=right></TD>
     <TD noWrap align=right><FONT face="Times New Roman" size=2>1,044,805</FONT><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD></TR>
<TR vAlign=bottom>
     <TD noWrap align=left><FONT face="Times New Roman" size=2>Unearned revenues</FONT><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD>
     <TD noWrap align=right><FONT face="Times New Roman" size=2>101,931</FONT><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD>
     <TD noWrap align=right></TD>
     <TD noWrap align=right><FONT face="Times New Roman" size=2>94,259</FONT><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD></TR>
<TR vAlign=bottom>
     <TD noWrap align=left><FONT face="Times New Roman" size=2>Securities sold, not yet purchased, at fair value</FONT><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" noWrap align=right><FONT face="Times New Roman" size=2>5,693</FONT><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD>
     <TD noWrap align=right></TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" noWrap align=right><FONT face="Times New Roman" size=2>7,056</FONT><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD></TR>
<TR vAlign=bottom>
     <TD noWrap align=left><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD>
     <TD noWrap align=right><FONT face="Times New Roman" size=2>7,903,378</FONT><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD>
     <TD noWrap align=right></TD>
     <TD noWrap align=right><FONT face="Times New Roman" size=2>8,383,260</FONT><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD></TR>
<TR vAlign=bottom>
     <TD noWrap align=left><FONT face="Times New Roman" size=2>Long-Term Liabilities</FONT><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD>
     <TD noWrap align=left><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD>
     <TD noWrap align=left></TD>
     <TD noWrap align=left><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD></TR>
<TR vAlign=bottom>
     <TD noWrap align=left><FONT face="Times New Roman" size=2>Non-qualified deferred compensation plan</FONT><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" noWrap align=right><FONT face="Times New Roman" size=2>793,735</FONT><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD>
     <TD noWrap align=right></TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" noWrap align=right><FONT face="Times New Roman" size=2>541,993</FONT><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD></TR>
<TR vAlign=bottom>
     <TD noWrap align=left><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD>
     <TD noWrap align=right><FONT face="Times New Roman" size=2>793,735</FONT><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD>
     <TD noWrap align=right></TD>
     <TD noWrap align=right><FONT face="Times New Roman" size=2>541,993</FONT><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD></TR>
<TR vAlign=bottom>
     <TD noWrap align=left><B><FONT face="Times New Roman" size=2>Total liabilities</FONT></B><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" noWrap align=right><FONT face="Times New Roman" size=2>8,697,113</FONT><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD>
     <TD noWrap align=right></TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" noWrap align=right><FONT face="Times New Roman" size=2>8,925,253</FONT><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD></TR>
<TR>
     <TD colSpan=4><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD></TR>
<TR vAlign=bottom>
     <TD noWrap align=left><FONT face="Times New Roman" size=2>Commitments and contingencies (Note 15</FONT><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD>
     <TD noWrap align=left><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD>
     <TD noWrap align=left></TD>
     <TD noWrap align=left><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD></TR>
<TR vAlign=bottom>
     <TD noWrap align=left><B><FONT face="Times New Roman" size=2>Stockholders' Equity:</FONT></B><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD>
     <TD noWrap align=left><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD>
     <TD noWrap align=left></TD>
     <TD noWrap align=left><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD></TR>
<TR vAlign=bottom>
     <TD noWrap align=left><FONT face="Times New Roman" size=2>Common stock, $.01 par value, 10,000,000 shares authorized;</FONT><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD>
     <TD noWrap align=left><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD>
     <TD noWrap align=left></TD>
     <TD noWrap align=left><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD></TR>
<TR vAlign=bottom>
     <TD noWrap align=left><FONT face="Times New Roman" size=2>6,595,804 issued and 6,591,919 outstanding at March 31, 2010;</FONT><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD>
     <TD noWrap align=left><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD>
     <TD noWrap align=left></TD>
     <TD noWrap align=left><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD></TR>
<TR vAlign=bottom>
     <TD noWrap align=left><FONT face="Times New Roman" size=2>6,570,177 issued and 6,566,292 outstanding at March 31, 2009</FONT><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD>
     <TD noWrap align=right><FONT face="Times New Roman" size=2>65,958</FONT><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD>
     <TD noWrap align=right></TD>
     <TD noWrap align=right><FONT face="Times New Roman" size=2>65,702</FONT><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD></TR>
<TR vAlign=bottom>
     <TD noWrap align=left><FONT face="Times New Roman" size=2>Additional paid-in capital</FONT><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD>
     <TD noWrap align=right><FONT face="Times New Roman" size=2>12,095,862</FONT><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD>
     <TD noWrap align=right></TD>
     <TD noWrap align=right><FONT face="Times New Roman" size=2>11,852,467</FONT><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD></TR>
<TR vAlign=bottom>
     <TD noWrap align=left><FONT face="Times New Roman" size=2>Accumulated deficit</FONT><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD>
     <TD noWrap align=right><FONT face="Times New Roman" size=2>(1,964,084)</FONT><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD>
     <TD noWrap align=right></TD>
     <TD noWrap align=right><FONT face="Times New Roman" size=2>(2,285,622)</FONT><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD></TR>
<TR vAlign=bottom>
     <TD noWrap align=left><FONT face="Times New Roman" size=2>Less: Treasury stock, 3,885 shares at cost</FONT><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD>
     <TD noWrap align=right><FONT face="Times New Roman" size=2>(30,135)</FONT><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD>
     <TD noWrap align=right></TD>
     <TD noWrap align=right><FONT face="Times New Roman" size=2>(30,135)</FONT><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD></TR>
<TR vAlign=bottom>
     <TD noWrap align=left><FONT face="Times New Roman" size=2>Accumulated other comprehensive income</FONT><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" noWrap align=right><FONT face="Times New Roman" size=2>29,833</FONT><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD>
     <TD noWrap align=right></TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" noWrap align=right><FONT face="Times New Roman" size=2>(23,331)</FONT><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD></TR>
<TR vAlign=bottom>
     <TD noWrap align=left><FONT face="Times New Roman" size=2>Total stockholders' equity</FONT><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD>
     <TD noWrap align=right><FONT face="Times New Roman" size=2>10,197,434</FONT><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD>
     <TD noWrap align=right></TD>
     <TD noWrap align=right><FONT face="Times New Roman" size=2>9,579,081</FONT><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD></TR>
<TR vAlign=bottom>
     <TD noWrap align=left><B><FONT face="Times New Roman" size=2>TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY</FONT></B><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD>
     <TD style="BORDER-BOTTOM: #000000 3px double" noWrap align=right><B><FONT face="Times New Roman" size=2>$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 18,894,547</FONT></B><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD>
     <TD noWrap align=right></TD>
     <TD style="BORDER-BOTTOM: #000000 3px double" noWrap align=right><B><FONT face="Times New Roman" size=2>$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;18,504,334</FONT></B><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD></TR></TABLE></DIV><BR>
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<TR>
     <TD width="46%"></TD>
     <TD width="26%"></TD>
     <TD width="2%"></TD>
     <TD width="26%"></TD></TR>
<TR vAlign=bottom>
     <TD align=center colSpan=4><B><FONT face="Times New Roman" size=2>INVESTORS CAPITAL HOLDINGS, LTD. AND SUBSIDIARIES</FONT></B></TD></TR>
<TR vAlign=bottom>
     <TD align=center colSpan=4><B><FONT face="Times New Roman" size=2>CONSOLIDATED STATEMENTS OF OPERATIONS</FONT></B></TD></TR>
<TR height=20>
     <TD align=center colSpan=4></TD></TR>
<TR vAlign=bottom>
     <TD noWrap align=left><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD>
     <TD noWrap align=center colSpan=3><B><FONT face="Times New Roman" size=2>YEARS ENDED</FONT></B></TD></TR>
<TR vAlign=bottom>
     <TD noWrap align=left><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD>
     <TD noWrap align=center colSpan=3><B><FONT face="Times New Roman" size=2>March 31,</FONT></B></TD></TR>
<TR vAlign=bottom>
     <TD noWrap align=left><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD>
     <TD style="BORDER-BOTTOM: #000000 2px solid" noWrap align=center><B><FONT face="Times New Roman" size=2>2010</FONT></B><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD>
     <TD noWrap align=center></TD>
     <TD style="BORDER-BOTTOM: #000000 2px solid" noWrap align=center><B><FONT face="Times New Roman" size=2>2009</FONT></B><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD></TR>
<TR vAlign=bottom>
     <TD noWrap align=left><B><FONT face="Times New Roman" size=2>Revenues:</FONT></B><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD>
     <TD noWrap align=left><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD>
     <TD noWrap align=left></TD>
     <TD noWrap align=left><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD></TR>
<TR vAlign=bottom>
     <TD noWrap align=left><FONT face="Times New Roman" size=2>Commission</FONT><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD>
     <TD noWrap align=right><FONT face="Times New Roman" size=2>$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 64,997,188</FONT><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD>
     <TD noWrap align=right></TD>
     <TD noWrap align=right><FONT face="Times New Roman" size=2>$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;68,219,314</FONT><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD></TR>
<TR vAlign=bottom>
     <TD noWrap align=left><FONT face="Times New Roman" size=2>Advisory fees</FONT><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD>
     <TD noWrap align=right><FONT face="Times New Roman" size=2>11,798,894</FONT><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD>
     <TD noWrap align=right></TD>
     <TD noWrap align=right><FONT face="Times New Roman" size=2>11,090,508</FONT><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD></TR>
<TR vAlign=bottom>
     <TD noWrap align=left><FONT face="Times New Roman" size=2>Other fee income</FONT><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD>
     <TD noWrap align=right><FONT face="Times New Roman" size=2>1,013,718</FONT><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD>
     <TD noWrap align=right></TD>
     <TD noWrap align=right><FONT face="Times New Roman" size=2>804,877</FONT><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD></TR>
<TR vAlign=bottom>
     <TD noWrap align=left><FONT face="Times New Roman" size=2>Marketing revenue</FONT><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD>
     <TD noWrap align=right><FONT face="Times New Roman" size=2>995,767</FONT><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD>
     <TD noWrap align=right></TD>
     <TD noWrap align=right><FONT face="Times New Roman" size=2>981,100</FONT><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD></TR>
<TR vAlign=bottom>
     <TD noWrap align=left><FONT face="Times New Roman" size=2>Other income</FONT><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" noWrap align=right><FONT face="Times New Roman" size=2>382,370</FONT><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD>
     <TD noWrap align=right></TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" noWrap align=right><FONT face="Times New Roman" size=2>511,589</FONT><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD></TR>
<TR vAlign=bottom>
     <TD noWrap align=left><FONT face="Times New Roman" size=2>Total revenue</FONT><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD>
     <TD noWrap align=right><FONT face="Times New Roman" size=2>79,187,937</FONT><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD>
     <TD noWrap align=right></TD>
     <TD noWrap align=right><FONT face="Times New Roman" size=2>81,607,388</FONT><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD></TR>
<TR>
     <TD colSpan=4><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD></TR>
<TR vAlign=bottom>
     <TD noWrap align=left><FONT face="Times New Roman" size=2>Commission and advisory fees</FONT><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" noWrap align=right><FONT face="Times New Roman" size=2>64,045,046</FONT><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD>
     <TD noWrap align=right></TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" noWrap align=right><FONT face="Times New Roman" size=2>65,609,588</FONT><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD></TR>
<TR>
     <TD colSpan=4><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD></TR>
<TR vAlign=bottom>
     <TD noWrap align=left><B><FONT face="Times New Roman" size=2>Gross profit</FONT></B><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" noWrap align=right><FONT face="Times New Roman" size=2>15,142,891</FONT><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD>
     <TD noWrap align=right></TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" noWrap align=right><FONT face="Times New Roman" size=2>15,997,800</FONT><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD></TR>
<TR>
     <TD colSpan=4><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD></TR>
<TR vAlign=bottom>
     <TD noWrap align=left><FONT face="Times New Roman" size=2>Operating expenses:</FONT><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD>
     <TD noWrap align=left><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD>
     <TD noWrap align=left></TD>
     <TD noWrap align=left><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD></TR>
<TR>
     <TD colSpan=4><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD></TR>
<TR vAlign=bottom>
     <TD noWrap align=left><FONT face="Times New Roman" size=2>Advertisement and marketing</FONT><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD>
     <TD noWrap align=right><FONT face="Times New Roman" size=2>744,933</FONT><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD>
     <TD noWrap align=right></TD>
     <TD noWrap align=right><FONT face="Times New Roman" size=2>1,279,756</FONT><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD></TR>
<TR vAlign=bottom>
     <TD noWrap align=left><FONT face="Times New Roman" size=2>Communications</FONT><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" noWrap align=right><FONT face="Times New Roman" size=2>653,393</FONT><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD>
     <TD noWrap align=right></TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" noWrap align=right><FONT face="Times New Roman" size=2>1,060,641</FONT><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD></TR>
<TR vAlign=bottom>
     <TD noWrap align=left><FONT face="Times New Roman" size=2>Selling expenses</FONT><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" noWrap align=right><FONT face="Times New Roman" size=2>1,398,326</FONT><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD>
     <TD noWrap align=right></TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" noWrap align=right><FONT face="Times New Roman" size=2>2,340,397</FONT><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD></TR>
<TR>
     <TD colSpan=4><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD></TR>
<TR vAlign=bottom>
     <TD noWrap align=left><FONT face="Times New Roman" size=2>Compensation and benefits</FONT><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD>
     <TD noWrap align=right><FONT face="Times New Roman" size=2>8,007,675</FONT><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD>
     <TD noWrap align=right></TD>
     <TD noWrap align=right><FONT face="Times New Roman" size=2>9,135,686</FONT><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD></TR>
<TR vAlign=bottom>
     <TD noWrap align=left><FONT face="Times New Roman" size=2>Regulatory, legal and professional</FONT><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD>
     <TD noWrap align=right><FONT face="Times New Roman" size=2>2,312,812</FONT><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD>
     <TD noWrap align=right></TD>
     <TD noWrap align=right><FONT face="Times New Roman" size=2>3,805,231</FONT><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD></TR>
<TR vAlign=bottom>
     <TD noWrap align=left><FONT face="Times New Roman" size=2>Occupancy</FONT><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD>
     <TD noWrap align=right><FONT face="Times New Roman" size=2>853,548</FONT><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD>
     <TD noWrap align=right></TD>
     <TD noWrap align=right><FONT face="Times New Roman" size=2>1,032,914</FONT><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD></TR>
<TR vAlign=bottom>
     <TD noWrap align=left><FONT face="Times New Roman" size=2>Other administrative expenses</FONT><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD>
     <TD noWrap align=right><FONT face="Times New Roman" size=2>1,687,644</FONT><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD>
     <TD noWrap align=right></TD>
     <TD noWrap align=right><FONT face="Times New Roman" size=2>1,815,393</FONT><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD></TR>
<TR vAlign=bottom>
     <TD noWrap align=left><FONT face="Times New Roman" size=2>Interest expense</FONT><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" noWrap align=right><FONT face="Times New Roman" size=2>26,213</FONT><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD>
     <TD noWrap align=right></TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" noWrap align=right><FONT face="Times New Roman" size=2>36,845</FONT><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD></TR>
<TR vAlign=bottom>
     <TD noWrap align=left><FONT face="Times New Roman" size=2>Administrative expenses</FONT><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" noWrap align=right><FONT face="Times New Roman" size=2>12,887,892</FONT><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD>
     <TD noWrap align=right></TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" noWrap align=right><FONT face="Times New Roman" size=2>15,826,069</FONT><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD></TR>
<TR>
     <TD colSpan=4><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD></TR>
<TR vAlign=bottom>
     <TD noWrap align=left><B><FONT face="Times New Roman" size=2>Total operating expenses</FONT></B><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD>
     <TD noWrap align=right><FONT face="Times New Roman" size=2>14,286,218</FONT><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD>
     <TD noWrap align=right></TD>
     <TD noWrap align=right><FONT face="Times New Roman" size=2>18,166,466</FONT><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD></TR>
<TR>
     <TD colSpan=4><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD></TR>
<TR vAlign=bottom>
     <TD noWrap align=left><FONT face="Times New Roman" size=2>Operating income (loss) before income taxes</FONT><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD>
     <TD noWrap align=right><FONT face="Times New Roman" size=2>856,673</FONT><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD>
     <TD noWrap align=right></TD>
     <TD noWrap align=right><FONT face="Times New Roman" size=2>(2,168,666)</FONT><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD></TR>
<TR>
     <TD colSpan=4><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD></TR>
<TR vAlign=bottom>
     <TD noWrap align=left><FONT face="Times New Roman" size=2>Provision (benefit) for income taxes</FONT><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" noWrap align=right><FONT face="Times New Roman" size=2>535,135</FONT><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD>
     <TD noWrap align=right></TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" noWrap align=right><FONT face="Times New Roman" size=2>(338,667)</FONT><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD></TR>
<TR>
     <TD colSpan=4><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD></TR>
<TR vAlign=bottom>
     <TD noWrap align=left><B><FONT face="Times New Roman" size=2>Net income (loss)</FONT></B><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD>
     <TD style="BORDER-BOTTOM: #000000 3px double" noWrap align=right><FONT face="Times New Roman" size=2>$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 321,538</FONT><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD>
     <TD noWrap align=right></TD>
     <TD style="BORDER-BOTTOM: #000000 3px double" noWrap align=right><FONT face="Times New Roman" size=2>$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (1,829,999)</FONT><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD></TR>
<TR>
     <TD colSpan=4><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD></TR>
<TR vAlign=bottom>
     <TD noWrap align=left><B><FONT face="Times New Roman" size=2>Earnings (loss) per common share</FONT></B><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD>
     <TD noWrap align=left><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD>
     <TD noWrap align=left></TD>
     <TD noWrap align=left><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD></TR>
<TR vAlign=bottom>
     <TD noWrap align=left><FONT face="Times New Roman" size=2>Basic earnings (loss) per common share:</FONT><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD>
     <TD style="BORDER-BOTTOM: #000000 3px double" noWrap align=right><FONT face="Times New Roman" size=2>$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 0.05</FONT><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD>
     <TD noWrap align=right></TD>
     <TD style="BORDER-BOTTOM: #000000 3px double" noWrap align=right><FONT face="Times New Roman" size=2>$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (0.29)</FONT><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD></TR>
<TR vAlign=bottom>
     <TD noWrap align=left><FONT face="Times New Roman" size=2>Diluted earnings per common share:</FONT><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD>
     <TD style="BORDER-BOTTOM: #000000 3px double" noWrap align=right><FONT face="Times New Roman" size=2>$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 0.05</FONT><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD>
     <TD noWrap align=center></TD>
     <TD style="BORDER-BOTTOM: #000000 3px double" noWrap align=center><FONT face="Times New Roman" size=2>N/A</FONT><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD></TR>
<TR>
     <TD colSpan=4><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD></TR>
<TR vAlign=bottom>
     <TD noWrap align=left><B><FONT face="Times New Roman" size=2>Dividends per common share:</FONT></B><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD>
     <TD noWrap align=left><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD>
     <TD noWrap align=left></TD>
     <TD noWrap align=left><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD></TR>
<TR vAlign=bottom>
     <TD style="TEXT-INDENT: 2px" noWrap align=left><FONT face="Times New Roman" size=2>Basic earnings per common share</FONT><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD>
     <TD style="BORDER-BOTTOM: #000000 3px double" noWrap align=right><FONT face="Times New Roman" size=2>$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; -</FONT><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD>
     <TD noWrap align=right></TD>
     <TD style="TEXT-INDENT: 2px; BORDER-BOTTOM: #000000 3px double" noWrap align=right><FONT face="Times New Roman" size=2>$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;-</FONT><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD></TR>
<TR vAlign=bottom>
     <TD style="TEXT-INDENT: 2px" noWrap align=left><FONT face="Times New Roman" size=2>Diluted earnings per common share</FONT><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD>
     <TD style="BORDER-BOTTOM: #000000 3px double" noWrap align=right><FONT face="Times New Roman" size=2>$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; -</FONT><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD>
     <TD noWrap align=right></TD>
     <TD style="TEXT-INDENT: 2px; BORDER-BOTTOM: #000000 3px double" noWrap align=right><FONT face="Times New Roman" size=2>$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;-</FONT><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD></TR>
<TR>
     <TD colSpan=4><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD></TR>
<TR vAlign=bottom>
     <TD noWrap align=left><B><FONT face="Times New Roman" size=2>Share data</FONT></B><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD>
     <TD noWrap align=left><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD>
     <TD noWrap align=left></TD>
     <TD noWrap align=left><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD></TR>
<TR vAlign=bottom>
     <TD noWrap align=left><FONT face="Times New Roman" size=2>Weighted average shares used in basic earnings per</FONT><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD>
     <TD noWrap align=left><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD>
     <TD noWrap align=left></TD>
     <TD noWrap align=left><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD></TR>
<TR vAlign=bottom>
     <TD style="TEXT-INDENT: 1px" noWrap align=left><FONT face="Times New Roman" size=2>common share calculations</FONT><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD>
     <TD noWrap align=right><FONT face="Times New Roman" size=2>6,503,476</FONT><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD>
     <TD noWrap align=right></TD>
     <TD noWrap align=right><FONT face="Times New Roman" size=2>6,415,385</FONT><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD></TR>
<TR vAlign=bottom>
     <TD noWrap align=left><FONT face="Times New Roman" size=2>Plus:Incremental shares from assumed exercise of</FONT><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD>
     <TD noWrap align=left><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD>
     <TD noWrap align=left></TD>
     <TD noWrap align=left><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD></TR>
<TR vAlign=bottom>
     <TD style="TEXT-INDENT: 1px" noWrap align=left><FONT face="Times New Roman" size=2>stock options</FONT><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" noWrap align=right><FONT face="Times New Roman" size=2>257,943</FONT><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD>
     <TD noWrap align=right></TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" noWrap align=right><FONT face="Times New Roman" size=2>389,604</FONT><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD></TR>
<TR vAlign=bottom>
     <TD noWrap align=left><FONT face="Times New Roman" size=2>Weighted average shares used in diluted earnings per</FONT><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD>
     <TD noWrap align=left><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD>
     <TD noWrap align=left></TD>
     <TD noWrap align=left><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD></TR>
<TR vAlign=bottom>
     <TD style="TEXT-INDENT: 1px" noWrap align=left><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>common share calculations</FONT>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 3px double" noWrap align=right><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>6,761,419</FONT>&nbsp;</TD>
     <TD noWrap align=right></TD>
     <TD style="BORDER-BOTTOM: #000000 3px double" noWrap align=right><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>6,804,989</FONT>&nbsp;</TD></TR></TABLE></DIV><BR>
</DIV>
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<DIV style="PADDING-RIGHT: 0%; PADDING-LEFT: 0%">
<P style="TEXT-ALIGN: left"><B><FONT face="TimesNewRomanPS-BoldMT,Times New Roman,Times,serif">Adjusted EBITDA</FONT></B></P>
<P style="TEXT-ALIGN: left"><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">Earnings before interest, taxes, depreciation and amortization ("EBITDA"), as adjusted by eliminating other non-cash expense, gains or losses on sales of assets, and various non-recurring items ("adjusted EBITDA"), is a key metric we use in evaluating our financial performance. Adjusted EBITDA eliminates items that we believe are not part of our core operations, are non-recurring items of revenue or expense, or do not involve a cash outlay, such as stock-related compensation. We consider adjusted EBITDA important in monitoring and evaluating our financial performance on a consistent basis across various periods. We also use adjusted EBITDA as a primary measure, among others, to analyze and evaluate financial and strategic planning decisions.</FONT></P>
<P style="TEXT-ALIGN: left"><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">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.</FONT></P>
<P style="TEXT-ALIGN: left"><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">Adjusted EBITDA may be reconciled with net income (loss) as follows:</FONT></P>
<DIV align=left>
<TABLE style="WIDTH: 412px; HEIGHT: 370px" cellSpacing=0 border=0>
<TR>
     <TD width="49%"></TD>
     <TD width="17%"></TD>
     <TD width="17%"></TD>
     <TD width="16%"></TD></TR>
<TR vAlign=bottom>
     <TD noWrap align=left>&nbsp;</TD>
     <TD style="TEXT-INDENT: 3px" noWrap align=center colSpan=3><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>Years Ended March 31,</FONT>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD noWrap align=left>&nbsp;</TD>
     <TD style="TEXT-INDENT: 1px; BORDER-BOTTOM: #000000 1px solid" noWrap align=center><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>2010</FONT>&nbsp;</TD>
     <TD noWrap align=center></TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" noWrap align=center><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>2009</FONT>&nbsp;</TD></TR>
<TR>
     <TD colSpan=4>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD noWrap align=left><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>Adjusted EBITDA:</FONT>&nbsp;</TD>
     <TD noWrap align=right><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 1,475,538</FONT></TD>
     <TD noWrap align=right></TD>
     <TD noWrap align=right><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (261,102)</FONT></TD></TR>
<TR>
     <TD colSpan=4>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD noWrap align=left><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>Adjustments to GAAP Net income (loss):</FONT>&nbsp;</TD>
     <TD noWrap align=left>&nbsp;</TD>
     <TD noWrap align=left></TD>
     <TD noWrap align=left>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD style="TEXT-INDENT: 1px" noWrap align=left><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>Income tax benefit</FONT>&nbsp;</TD>
     <TD noWrap align=right><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>(535,135)</FONT></TD>
     <TD noWrap align=right></TD>
     <TD style="TEXT-INDENT: 4px" noWrap align=right><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>351,658</FONT></TD></TR>
<TR vAlign=bottom>
     <TD style="TEXT-INDENT: 1px" noWrap align=left><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>Interest expense</FONT>&nbsp;</TD>
     <TD noWrap align=right><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>(26,213)</FONT></TD>
     <TD noWrap align=right></TD>
     <TD noWrap align=right><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>(36,845)</FONT></TD></TR>
<TR vAlign=bottom>
     <TD style="TEXT-INDENT: 1px" noWrap align=left><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>Income tax expense</FONT>&nbsp;</TD>
     <TD style="TEXT-INDENT: 10px" noWrap align=right><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>-</FONT></TD>
     <TD noWrap align=right></TD>
     <TD noWrap align=right><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>(12,991)</FONT></TD></TR>
<TR vAlign=bottom>
     <TD style="TEXT-INDENT: 1px" noWrap align=left><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>Depreciation</FONT>&nbsp;</TD>
     <TD noWrap align=right><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>(349,001)</FONT></TD>
     <TD noWrap align=right></TD>
     <TD noWrap align=right><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>(386,625)</FONT></TD></TR>
<TR vAlign=bottom>
     <TD style="TEXT-INDENT: 1px" noWrap align=left><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>Non-cash compensation</FONT>&nbsp;</TD>
     <TD noWrap align=right><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>(243,651)</FONT></TD>
     <TD noWrap align=right></TD>
     <TD noWrap align=right><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>(844,702)</FONT></TD></TR>
<TR vAlign=bottom>
     <TD style="TEXT-INDENT: 1px" noWrap align=left><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>Non-recurring professional fees to</FONT>&nbsp;</TD>
     <TD noWrap align=right>&nbsp;</TD>
     <TD noWrap align=right></TD>
     <TD noWrap align=right>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD style="TEXT-INDENT: 3px" noWrap align=left><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>evaluate strategic business opportunities</FONT>&nbsp;</TD>
     <TD style="TEXT-INDENT: 11px; BORDER-BOTTOM: #000000 1px solid" noWrap align=right><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>-</FONT></TD>
     <TD noWrap align=right></TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" noWrap align=right><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>(639,392)</FONT></TD></TR>
<TR>
     <TD colSpan=4>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD noWrap align=left><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>Net income (loss)</FONT>&nbsp;</TD>
     <TD style="TEXT-INDENT: 1px; BORDER-BOTTOM: #000000 3px double" noWrap align=right><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 321,538</FONT></TD>
     <TD noWrap align=right></TD>
     <TD style="BORDER-BOTTOM: #000000 3px double" noWrap align=right><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1,829,999)</FONT></TD></TR></TABLE></DIV><BR>
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{"company-data": {"conformed-name": "INVESTORS CAPITAL HOLDINGS LTD", "cik": "0001001871", "assigned-sic": "6799", "irs-number": "043284631", "state-of-incorporation": "MA", "fiscal-year-end": "0331"}, "filing-values": {"form-type": "8-K", "act": "34", "file-number": "333-43664", "film-number": "10931212"}, "business-address": {"street1": "230 BROADWAY EAST", "city": "LYNNFIELD", "state": "MA", "zip": "01940", "phone": "7815938565"}, "mail-address": {"street1": "230 BROADWAY", "city": "LYNNFIELD", "state": "MA", "zip": "01940"}}
eight-k.htm - Generated by SEC Publisher for SEC Filing
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
__________
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the
Securities Exchange Act of 1934
Date of Report (Date of earliest event reported): July 1, 2010
Investors Capital Holdings, Ltd.
(Exact name of registrant as specified in its charter)
Delaware
333-43664
04-3284631
(State or Other Jurisdiction
(Commission
(IRS Employer
of Incorporation)
File Number)
Identification No.)
230 Broadway East
Lynnfield, MA 01940
(Address of Principal Executive Offices) (Zip Code)
Registrant's telephone number, including area code: (800) 949-1422
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
[] (Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
[] (Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
[] (Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
[] (Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
Item 2.02 Results of Operations and Financial Condition.
On July 1, 2010 the Registrant issued a news release, a copy of which is set forth in Exhibit 2.02 hereto, announcing financial results for the Registrant for the fiscal year ended March 31, 2010.
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
Investors Capital Holdings, Ltd.
By
/s/
Timothy B. Murphy
Timothy B. Murphy, Chief Executive Officer
Date: July 1, 2010
Exhibit 2.02
From Investors Capital Corporation
NEWS RELEASE
Contact:
Robert Foney, Chief Marketing Officer
781.477.4814
rfoney@investorscapital.com
www.investorscapital.com
Investors Capital Posts Net Profit for FY 2010
Prudent expense management and focus on quality advisors results in profits; New advisor average GDC tops $250k
Lynnfield, Mass. (July 1, 2010) - Investors Capital Holdings, Ltd. (NYSE Amex: ICH), a financial services holding company, posted annual net income of $0.32 million for the fiscal year (FY) ended March 31, 2010 compared to a net loss of $1.83 million for the prior period (FY 2009).
Adjusted EBITDA was $1.48 million for FY 2010 compared to a negative $0.26 million in FY 2009. Adjusted EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization), described below, is a key metric utilized by the firm in evaluating its financial performance.
The turnaround, achieved despite a market-driven 3.0% decline in overall revenue, was aided by a 6.4% increase in advisory revenue and a 21.4% decrease in operating expenses from the implementation of cost cutting initiatives.
The rise in the Company's advisory revenues reflects an increase in assets under management, surpassing the $1 billion level in FY 2010 due to rising markets, improved managed portfolio performance, and additional investor contributions. Advisory services are delivered through Investors Capital Advisory Services (ICAS), the investment advisory division of Investors Capital Corporation (ICC), ICH's wholly-owned broker-dealer and registered investment advisor subsidiary.
The Company reduced its operating expenses by 21.4% for FY 2010, including a 40.3% decline in advertising and communications expense, a 39.2% decrease in regulatory, legal and professional expenses, and a 12.3% drop in compensation and benefits. These reductions enabled the Company to post operating income of $0.86 million in FY 2010 compared to an operating loss of $2.17 million in FY 2009.
Investors Capital continues to benefit from improving overall quality of its registered representatives, a key component of its strategy for achieving growth in revenues and net income.
The firm strives continually to improve the quality of its representatives by helping them grow their practices, terminating representatives with low-production or quality of services, and recruiting more established, higher-quality representatives. Assisted by these efforts, the firm's average revenue per representative rose to $137,961 for FY 2010, an increase of 12.1% compared to FY 2009.
An even more encouraging trend relates to newly recruited advisors. New representatives joining Investors Capital from other broker/dealers in FY 2010 had an average trailing 12-month gross production of $254,052, compared with $247,742 for FY 2009, and $217,717 for FY 2008, a testament to the firm's increased brand awareness and recruiting success.
Investors Capital's net capital position was a healthy $3.39 million at March 31, 2010 (an excess of $2.91 million) versus $1.94 million (an excess of $1.41 million) a year earlier. The firm's net capital ratio improved to 2.13:1 for FY 2010 compared to 4.10:1 for FY 2009. The SEC Uniform Net Capital Rule (Rule 15c3-1) requires that ICC maintain net capital of $100,000 and a ratio of specified aggregate indebtedness to net capital (a "net capital ratio") not to exceed 15 to 1.
"When I look around at the current environment we're in, there are many lessons to be learned," said Timothy B. Murphy, President and CEO of Investors Capital Holdings, Ltd. "We see net capital violations and firms growing too fast by sacrificing quality for quantity. Our strategy of controlled growth, prudent management of expenses, and long-term vision to maximize operational efficiency has enabled us to thrive during the recent market disruption."
"If we continue to do what we do best, live our brand, and provide our representatives with 5-star service every day, we put ourselves in the best possible position to recruit higher-end advisors and drive consistent growth for many years to come," Mr. Murphy added.
About Investors Capital Holdings, Ltd.:
Investors Capital Holdings, Ltd. (NYSE Amex: ICH) of Lynnfield, Massachusetts is a financial services holding company that operates primarily through its independent broker/dealer and investment advisor subsidiary, Investors Capital Corporation. Our mission is to provide premier, concierge-level service and support to our valued registered representatives, including advisory programs, strategic practice management and marketing services, and technology, to help them grow their businesses and exceed their clients' expectations. Business units include Investors Capital Corporation, ICC Insurance Agency, Inc., and Investors Capital Holdings Securities Corporation. For more information, please call (800) 949-1422 x4814 or visit www.investorscapital.com.
Certain statements contained in this press release that are not historical fact may be deemed to be forward-looking statements under federal securities laws. There are many factors that could cause our future actual results to differ materially from those suggested by or forecast in the forward-looking statements. Such factors include, but are not limited to, general economic conditions, interest rate fluctuations, regulatory changes affecting the financial services industry, competitive factors effecting demand for our services, availability of funding, and other risks including those identified in the Company's Securities and Exchange Commission filings.
Investors Capital Holdings, Ltd., 230 Broadway, Lynnfield, Massachusetts 01940, Distributor.
# # #
INVESTORS CAPITAL HOLDINGS, LTD. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
March 31,
March 31,
2010
2009
Assets
Current Assets
Cash and cash equivalents
$                                   5,812,865
$                                   6,151,613
Deposit with clearing organization, restricted
175,000
175,000
Accounts receivable
6,042,188
5,198,575
Accounts receivable - Fidelity Bond
-
956,223
Note receivable
140,598
8,674
Loans receivable from registered representatives (current), net of allowance
769,263
737,571
Prepaid income taxes
559,007
295,608
Securities owned, at fair value
57,933
85,436
Investments
50,000
Prepaid expenses
957,674
858,679
14,564,528
14,467,379
Property and equipment, net
774,182
950,620
Long Term Investments
Loans receivable from registered representatives
292,884
129,358
Note receivable
595,000
747,617
Investments
184,319
127,143
Non-qualified deferred compensation investment
929,897
533,665
Cash surrender value life insurance policies
551,398
406,089
2,553,498
1,943,872
Other Assets
Other assets
25,069
44,511
Deferred tax asset, net
838,773
1,097,952
Deferred tax asset, net
138,497
-
1,002,339
1,142,463
TOTAL ASSETS
$                              18,894,547
$                              18,504,334
Liabilities and Stockholders' Equity
Current Liabilities
Accounts payable
$ 817,761
$ 2,029,286
Accrued expenses
2,358,656
2,347,761
Commissions payable
3,488,415
2,860,093
Notes payable
1,130,922
1,044,805
Unearned revenues
101,931
94,259
Securities sold, not yet purchased, at fair value
5,693
7,056
7,903,378
8,383,260
Long-Term Liabilities
Non-qualified deferred compensation plan
793,735
541,993
793,735
541,993
Total liabilities
8,697,113
8,925,253
Commitments and contingencies (Note 15
Stockholders' Equity:
Common stock, $.01 par value, 10,000,000 shares authorized;
6,595,804 issued and 6,591,919 outstanding at March 31, 2010;
6,570,177 issued and 6,566,292 outstanding at March 31, 2009
65,958
65,702
Additional paid-in capital
12,095,862
11,852,467
Accumulated deficit
(1,964,084)
(2,285,622)
Less: Treasury stock, 3,885 shares at cost
(30,135)
(30,135)
Accumulated other comprehensive income
29,833
(23,331)
Total stockholders' equity
10,197,434
9,579,081
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY
$                              18,894,547
$                              18,504,334
INVESTORS CAPITAL HOLDINGS, LTD. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS
YEARS ENDED
March 31,
2010
2009
Revenues:
Commission
$                                64,997,188
$                                 68,219,314
Advisory fees
11,798,894
11,090,508
Other fee income
1,013,718
804,877
Marketing revenue
995,767
981,100
Other income
382,370
511,589
Total revenue
79,187,937
81,607,388
Commission and advisory fees
64,045,046
65,609,588
Gross profit
15,142,891
15,997,800
Operating expenses:
Advertisement and marketing
744,933
1,279,756
Communications
653,393
1,060,641
Selling expenses
1,398,326
2,340,397
Compensation and benefits
8,007,675
9,135,686
Regulatory, legal and professional
2,312,812
3,805,231
Occupancy
853,548
1,032,914
Other administrative expenses
1,687,644
1,815,393
Interest expense
26,213
36,845
Administrative expenses
12,887,892
15,826,069
Total operating expenses
14,286,218
18,166,466
Operating income (loss) before income taxes
856,673
(2,168,666)
Provision (benefit) for income taxes
535,135
(338,667)
Net income (loss)
$                                     321,538
$                                (1,829,999)
Earnings (loss) per common share
Basic earnings (loss) per common share:
$                                           0.05
$                                         (0.29)
Diluted earnings per common share:
$                                           0.05
N/A
Dividends per common share:
Basic earnings per common share
$                                                 -
$                                                 -
Diluted earnings per common share
$                                                 -
$                                                 -
Share data
Weighted average shares used in basic earnings per
common share calculations
6,503,476
6,415,385
Plus:Incremental shares from assumed exercise of
stock options
257,943
389,604
Weighted average shares used in diluted earnings per
common share calculations
6,761,419
6,804,989
Adjusted EBITDA
Earnings before interest, taxes, depreciation and amortization ("EBITDA"), as adjusted by eliminating other non-cash expense, gains or losses on sales of assets, and various non-recurring items ("adjusted EBITDA"), is a key metric we use in evaluating our financial performance. Adjusted EBITDA eliminates items that we believe are not part of our core operations, are non-recurring items of revenue or expense, or do not involve a cash outlay, such as stock-related compensation. We consider adjusted EBITDA important in monitoring and evaluating our financial performance on a consistent basis across various periods. We also use adjusted EBITDA as a primary measure, among others, to analyze and evaluate financial and strategic planning decisions.
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.
Adjusted EBITDA may be reconciled with net income (loss) as follows:
Years Ended March 31,
2010
2009
Adjusted EBITDA:
$        1,475,538
$        (261,102)
Adjustments to GAAP Net income (loss):
Income tax benefit
(535,135)
351,658
Interest expense
(26,213)
(36,845)
Income tax expense
-
(12,991)
Depreciation
(349,001)
(386,625)
Non-cash compensation
(243,651)
(844,702)
Non-recurring professional fees to
evaluate strategic business opportunities
-
(639,392)
Net income (loss)
$           321,538
$     (1,829,999)