BOCA RATON, Fla., Nov. 14, 2013 /PRNewswire/ -- Summit Financial Services Group, Inc. (OTC Bulletin Board: SFNS) announced financial results for the three- and nine-month periods ended September 30, 2013. For the three-month period ended September 30, 2013 (the "2013 Quarter"), the Company reported revenues of $22.4 million, which represented an increase of $4.0 million, or 21%, from the $18.4 million in revenues reported for the three-month period ended September 30, 2012 (the "2012 Quarter"). For the 2013 Quarter, the Company reported net income of $1.06 million, or an increase of 224% from net income of $0.33 million reported for the 2012 Quarter.

For the nine-month period ended September 30, 2013 (the "2013 Period"), the Company reported revenues of $65.3 million, which represented an increase of $11.5 million, or 21%, from the $53.8 million in revenues reported for the nine-month period ended September 30, 2012 (the "2012 Period"). For the 2013 Period, the Company reported net income of $2.52 million, or an increase of 108% from net income of $1.21 million reported for the 2012 Period.

Marshall Leeds, the Company's Chairman, Chief Executive Officer and President, stated: "While our results for the three- and nine-month periods benefitted from the overall improvement in investor confidence, they are also reflective of our ongoing commitment to recruit and retain the finest advisors in the industry. As a result of these activities, including the commitment and dedication of our financial advisors, their staffs and our home office associates, the Company was able to increase EBITDA, as adjusted, to $1.42 million in the 2013 quarter compared with $0.90 million for the 2012 Quarter. EBITDA, as adjusted, which the Company considers a significant measure in evaluating its operations, also increased during the 2013 Period to $4.67 million from $3.09 million reported for the 2012 Period."

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 305 registered representatives, and its business plan is focused primarily on increasing its network of affiliated registered representatives through recruitment.

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:


                                                                                                                                        
                                                                                Three Months
                                                                                    Ended                            Nine Months Ended
                                                                                                                                        
                                                                                September 30                           September 30,
                                                                                                                                                                                                
                                                                       2013                        2012                           2013                                                         2012
                                                                       ----                        ----                           ----                                                         ----
                                                                                                                                                                                          
                                                                                                                                                                                          
    Net Income as reported                                                          $1,055,587                                $325,988              $2,521,176                $1,210,149
                                                                                                                                                                                          
    Add:                                           Depreciation                                  49,176                                  52,016                   148,566                   153,117
                                                                                                                                                                                          
                                                   Amortization - notes                          43,550                                  47,559                   133,794                   125,800
                                                                                                                                                                                          
                                                   Stock-based compensation                     174,925                                 140,393                   539,011                   605,039
                                                                                                                                                                                          
                                                   Income tax expense                           100,000                                 329,172                 1,328,000                 1,000,000
                                                                                                                                                                                          
                                                                                                                                                                                          
                                                                                                                                                                                          
    EBITDA, as adjusted                                                             $1,423,238                                $895,128              $4,670,547                $3,094,105
                                                                                      ========                                ========                ========                  ========

Earnings before interest, taxes, depreciation and amortization, or EBITDA, adjusted for stock-based 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. 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-based 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

                                      Quarter Ended September 30, 2013


                                                                                  For the Three Months
                                                                                          Ended
                                                                                     September 30,

                                                                          2013                        2012
                                                                   (Unaudited)                 (Unaudited)

    Revenues

      Commissions                                                              $20,467,406                 $17,360,920

      Interest and dividends                                                       202,005                     232,473

      Other revenue                                                              1,733,493                     848,762
                                                                                 ---------                     -------

                                                                               $22,402,904                 $18,442,155

    Expenses

      Commissions and related costs                                             17,301,144                  14,847,878

      Employee compensation and benefits                                         1,905,832                   1,631,139

      Occupancy and equipment                                                      196,776                     198,346

      Communications                                                               113,926                     111,131

      Depreciation and amortization                                                 49,176                      52,016

      Other operating expenses                                                   1,680,463                     946,485
                                                                                 ---------                     -------

                                                                               $21,247,317                 $17,786,995
                                                                                 ---------                   ---------


      Income before provision for income taxes                                   1,155,587                     655,160

      Provision for income taxes                                                   100,000                     329,172
                                                                                   -------                     -------


      Net income                                                                $1,055,587                    $325,988
                                                                                ==========                    ========

      Basic income per common share                                                  $0.05                       $0.01
                                                                                     =====                       =====

      Diluted income per common share                                                $0.04                       $0.01
                                                                                     =====                       =====

      Weighted average common shares outstanding

         Basic                                                                  20,362,486                  26,670,082
                                                                                ==========                  ==========

         Diluted                                                                25,502,219                  31,822,469
                                                                                ==========                  ==========




                                    Summit Financial Services Group, Inc.

                                 Condensed Consolidated Statements of Income

                                    Nine Months Ended September 30, 2013


                                                                                   For the Nine Months
                                                                                          Ended
                                                                                     September 30,

                                                                          2013                        2012
                                                                   (Unaudited)                 (Unaudited)

    Revenues

      Commissions                                                              $60,788,331                 $50,555,223

      Interest and dividends                                                       605,961                     737,690

      Other revenue                                                              3,907,873                   2,497,888
                                                                                 ---------                   ---------

                                                                               $65,302,165                 $53,790,801

    Expenses

      Commissions and related costs                                             51,380,208                  43,054,449

      Employee compensation and benefits                                         5,691,952                   4,971,329

      Occupancy and equipment                                                      591,232                     584,285

      Communications                                                               338,574                     342,888

      Depreciation and amortization                                                148,566                     153,117

      Other operating expenses                                                   3,302,457                   2,474,584
                                                                                 ---------                   ---------

                                                                               $61,452,989                 $51,580,652
                                                                                 ---------                   ---------


      Income before provision for income taxes                                   3,849,176                   2,210,149

      Provision for income taxes                                                 1,328,000                   1,000,000
                                                                                 ---------                   ---------


      Net income                                                                $2,521,176                  $1,210,149
                                                                                ==========                  ==========

      Basic income per common share                                                  $0.12                       $0.05
                                                                                     =====                       =====

      Diluted income per common share                                                $0.10                       $0.04
                                                                                     =====                       =====

      Weighted average common shares outstanding

         Basic                                                                  20,328,516                  26,616,082
                                                                                ==========                  ==========

         Diluted                                                                25,263,257                  31,748,614
                                                                                ==========                  ==========

"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.