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.