BOCA RATON, Fla., March 31, 2011 /PRNewswire/ -- Summit Financial Services Group, Inc. (OTC Bulletin Board: SFNS) announced financial results for its year ended December 31, 2010. For 2010, the Company reported revenues of approximately $62.46 million, which represented an increase of approximately $17.46 million, or approximately 39%, from the approximately $45.0 million in revenues reported for 2009. For 2010, the Company reported net income of approximately $1.30 million, which represented an increase of approximately $.94 million, or approximately 265%, from the approximately $.35 million reported in 2009.
Marshall Leeds, the Company's Chairman, Chief Executive Officer and President, stated: "2010 was a good year for the Company in terms of the growth of our revenues and earnings. Our results for the year were due in large part not only to an increase in financial advisors, but an improvement in investor confidence. As a result of these factors, the Company was able to realize not only a 39% increase in revenues, but a 265% increase in earnings. Furthermore, EBITDA, as adjusted (which we consider a significant measure of our success) increased to $3.51 million, or by 114%, over the $1.64 million in EBITDA, as adjusted, reported for the 2009 Period."
Mr. Leeds continued: "The significant growth in revenue and earnings was made possible by the hard work and dedication of our financial advisors and associates. For 2011, we will continue to focus on the growth of our financial advisor network, albeit in an environment of significant regulatory change. Regardless, we are optimistic that our strategy of recruiting the industry's finest advisors will permit the Company to continue to grow in a challenging environment."
The Company is a Florida-based financial services holding company that provides, through its operating subsidiary, Summit Brokerage Services, Inc. ("Summit Brokerage"), a broad range of securities brokerage and investment services to primarily individual investors. Summit Brokerage also sells insurance products, predominantly fixed and variable annuities and life insurance through its subsidiary, SBS Insurance Agency of Florida. Summit Brokerage also provides asset management services through its investment advisor, Summit Financial Group, Inc.
Summit Brokerage is registered with the Securities and Exchange Commission (SEC), and is a member of FINRA (f/k/a NASD), the Municipal Securities Rule Making Board, and the National Futures Association. The Company currently offers its services through a network of approximately 300 producing financial advisors, and its business plan is focused primarily on increasing its network of affiliated registered representatives through recruitment as well as by acquisitions.
The following table presents a reconciliation of EBITDA, as adjusted, to net income as reported:
Net income as reported
Amortization – advisor notes
Income tax expense
EBITDA, as adjusted
Earnings before interest, taxes, depreciation and amortization, or EBITDA, adjusted for non-cash compensation expense is a key metric the Company uses in evaluating its financial performance. 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. The Company considers EBITDA, as adjusted, important in monitoring and evaluating its financial performance on a consistent basis across various periods, as well as for purposes of, analyzing and evaluating financial and strategic planning decisions regarding future operating investments and potential acquisitions. The Company believes that EBITDA, as adjusted, eliminates items that are not part of its core operations, or do not involve a cash outlay, such as stock-related compensation. EBITDA, as adjusted, should be considered in addition to, rather than as a substitute for, pre-tax income, net income and cash flows from operating activities.
Summit Financial Services Group, Inc.
Condensed Consolidated Statements of Income
Year Ended December 31, 2010
Interest and dividends
Commissions and clearing costs
Employee compensation and benefits
Occupancy and equipment
Depreciation and amortization
Other operating expenses
Income before income taxes
Provision for income taxes
Basic income per common share
Diluted income per common share
Weighted average common shares outstanding:
This press release may contain "forward-looking" statements, as defined in the Private Securities Litigation Reform Act of 1995, as amended. Any such statements are made pursuant to the safe-harbor provisions of Section 21E of the Securities Exchange Act of 1934, as amended, and Section 27A of the Securities Act of 1933, as amended, and they involve a number of risks and uncertainties that could cause actual results to differ materially from those that may be anticipated by or from the forward-looking statements. Important factors that could cause such a difference are set forth in the Company's filings with the Securities and Exchange Commission and include, but are not limited to, investor confidence and the performance of the securities markets, and the availability of suitable candidates for the Company's acquisition or recruitment.
SOURCE Summit Financial Services Group, Inc.