Summit Financial Services Group Announces Results for the Three- and Nine-Months Ended September 30, 2012

BOCA RATON, Fla., Nov. 14, 2012 /PRNewswire/ -- Summit Financial Services Group, Inc. (OTC Bulletin Board: SFNS) announced financial results for the three- and nine-month periods ended September 30, 2012. For the three-month period ended September 30, 2012 (the "2012 Quarter"), the Company reported revenues of $18.4 million, which represented an increase of $0.8 million, or 4%, from the $17.7 million in revenues reported for the three-month period ended September 30, 2011 (the "2011 Quarter"). For the 2012 Quarter, the Company reported net income of $326,000, or an increase of 9% from net income of $300,000 reported for the 2011 Quarter.

For the nine-month period ended September 30, 2012 (the "2012 Period"), the Company reported revenues of $53.8 million, which represented an increase of $1.6 million, or 3%, from the $52.2 million in revenues reported for the nine-months ended September 30, 2011 (the "2011 Period").  For the 2012 Period, the Company reported net income of $1,210,000, or a decrease of 3% from net income of $1,253,000 reported for the 2011 Period.

Marshall Leeds, the Company's Chairman, Chief Executive Officer and President, stated: "Our growth in revenues during both the 2012 Quarter and 2012 Period is reflective of our ongoing commitment to recruiting and retaining the finest advisors in the industry.  EBITDA, as adjusted, which we also consider in evaluating our operations, decreased during the 2012 Quarter to $895,000 compared with $993,000 for the 2011 Quarter.  EBITDA, as adjusted, decreased during the 2012 Period to $3,094,000 from $3,141,000 reported for the 2011 Period."  Mr. Leeds continued: "The success of the Company will always be directly related to the commitment and dedication of our financial advisors, their staffs and our home office associates.  As always, I would like to thank each of these individuals for their contribution towards the execution of the Company's growth strategy." 

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 310 registered representatives, and its business plan is focused primarily on increasing its network of affiliated registered representatives through recruitment as well as by acquisitions.

All of the above numbers have been rounded for ease of presentation.

The following table presents a reconciliation of EBITDA, as adjusted, to net income as reported:

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.

(1)   Certain amounts from the 2011 Quarter have been reclassified to conform to the current year presentation.  These reclassifications had no impact on the reported net income for the 2011 Quarter.

(2)   Certain amounts from the 2011 Period have been reclassified to conform to the current year presentation.  These reclassifications had no impact on the reported net income for the 2011 Period.

"Forward-looking" Statements

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.