H.D. Vest is continuing to cut its roster of advisors after trimming 16 percent in the last year. The parent company, “We could still see another 300-or-so reductions by year-end, then would expect to return to a normalized environment in 2019,” Clendening said.
On June 30, there were 3,709 advisors, down from 4,426 a year earlier. The pace of additional cuts outlined by the CEO would bring the base down about 22 percent from June 30, 2017. Blucora has implemented productivity standards that required an advisor to have $1 million in client assets by May this year and $2.5 million by January.
For the second quarter ended June 30, Blucora had net income of $35.2 million, up sharply from $3.5 million a year earlier. Much of this year's improvement stemmed from the fact the year ago quarter included other losses of $20.4 million, most of which stemmed from a loss on extinguishment of debt of $19.6 million. In the most recently ended quarter, other losses were $2.8 million of which $15 million was the debt loss
Revenue for the most recently ended quarter was $157.8 million, an increase of 13.4 percent from $139.2 million a year earlier. Revenue from wealth management was slight more than $92 million, up 7.9 percent, from $85.3 million in last year’s corresponding period. Tax software revenue for the second quarter was $65.7 million, a rise of $53.9 million a year ago.
Operating income for the tax business rose significantly. The company ended the recent quarter with $42.1 million, up 20.8 percent from $36.5 million. HD Vest’s operating income of slightly less than three million was 4.4-percent higher than $12.4 million the prior year.
Clendening also discussed the initial to enroll accounting firms with multiple partners and offices in the advisor ranks. Four have been added so far with another seven firms in the licenses stage. He said the nine firms have about $23 million in cumulative accounting revenue and an estimated $2.3 billion in client assets.
