BOCA RATON, Fla., Aug. 14 /PRNewswire-FirstCall/ -- Summit Financial Services Group, Inc. (OTC Bulletin Board: SFNS) announced financial results for the three- and six month-periods ended June 30, 2009. For the three month period ended June 30, 2009, the Company reported revenues of $10.2 million, which represented an increase of $1.6 million, or 19%, from the $8.6 million in revenues reported for the three month period ended June 30, 2008 (the "2008 Quarter"). For the 2009 Quarter, the Company reported net income of $89,000, or a decrease of 40% from net income of $150,000 reported for the 2008 Quarter.
For the six month period ended June 30, 2009 (the "2009 Period"), the Company reported revenues of $18.3 million, which represented an increase of $1.0 million, or 6%, from the $17.3 million in revenues reported for the six months ended June 30, 2008 (the "2008 Period"). For the 2008 Period, the Company reported net income of $3,000, or a decrease of 98% from net income of $202,000 reported for the 2008 Period.
Marshall Leeds, the Company's Chairman, Chief Executive Officer and President, stated: "From a revenue perspective, we are pleased to see that our success in recruiting an increasing number of advisors has allowed us to grow our revenues in both the three- and six-month periods. Although the income we reported in each of the periods was lower than in the comparable periods of the previous year, the Company continued to generate positive EBITDA, which we consider a significant measure of our success. For the three-month period, the Company generated EBITDA of $264,000, as adjusted, and $392,000, as adjusted, for the six month period." Mr. Leeds continued: "Our growth would not be possible without the hard work of our financial advisors, their staffs and our home office associates, and we are thankful for the commitment of these dedicated individuals."
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 275 registered representatives, 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:
Three Months Ended, Six Months Ended June 30 June 30, 2009 2008 2009 2008 Net Income as reported $89,421 $149,773 $3,299 $202,037 Add: Depreciation 18,242 21,682 37,553 39,487 Amortization - customer list 44,976 89,952 Amortization - notes 58,403 18,147 98,434 33,123 Non-cash compensation 98,764 94,057 252,964 267,411 Income tax expense 105,567 111,327 EBITDA, as adjusted $264,830 $434,202 $392,250 $743,337
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 Quarter Ended June 30, 2009 For The Three Months Ended June 30, 2009 2008 (Unaudited) (Unaudited) Revenues Commissions $9,743,970 $8,168,257 Interest and dividends 322,733 302,798 Other 133,545 95,166 10,200,248 8,566,221 Expenses Commissions and clearing costs 8,180,070 6,483,744 Employee compensation and benefits 1,146,344 1,184,231 Occupancy and equipment 154,533 159,563 Communications 99,905 115,373 Depreciation and amortization 18,242 66,658 Other operating expenses 511,733 301,312 10,110,827 8,310,881 Income before income taxes 89,421 255,340 Provision for income taxes 0 105,567 Net income $89,421 $149,773 Basic income per common share $0.00 $0.01 Diluted income per common share $0.00 $0.00 Weighted average common shares outstanding: Basic 25,458,634 25,852,457 Diluted 29,996,406 30,255,719 Summit Financial Services Group, Inc. Condensed Consolidated Statements of Income Six Months Ended June 30, 2009 For The Six Months Ended June 30, 2009 2008 (Unaudited) (Unaudited) Revenues Commissions $17,414,460 $16,452,827 Interest and dividends 623,909 642,969 Other 239,887 194,468 18,278,256 17,290,264 Expenses Commissions and clearing costs 14,428,861 13,304,413 Employee compensation and benefits 2,338,673 2,428,589 Occupancy and equipment 310,310 317,885 Communications 212,800 216,404 Depreciation and amortization 37,553 129,439 Other operating expenses 946,760 580,170 18,274,957 16,976,900 Income before income taxes 3,299 313,364 Provision for income taxes (0) 111,327 Net income $3,299 $202,037 Basic income per common share $0.00 $0.01 Diluted income per common share $0.00 $0.01 Weighted average common shares outstanding: Basic 25,458,634 25,854,140 Diluted 30,186,254 31,353,832
"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.
For additional investor relations information, contact Summit Financial Services Group, Inc., Boca Raton, Florida - Steven C. Jacobs, CFO, 561-338-2600.
SOURCE Summit Financial Services Group, Inc.