Mr. Leeds further stated: "We believe, however, that from challenging times often come unique opportunities. While the turmoil that has characterized the financial markets over the last six months will likely continue through 2009, this same turmoil has created an unparalleled recruiting environment for Summit. As a result, we believe that declines in per advisor revenue will be at least partially offset by the addition of several new financial advisors. As always, I would like to thank our home office staff, as well as our financial advisors and their staffs, for their hard work and dedication during these unprecedented, yet opportunistic, times. It is that hard work and dedication that has allowed the Company to position itself for continued success both today and in the future."
The Company is a
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 245 registered representatives, and its business plan is focused primarily on increasing its network of affiliated registered representatives through recruitment as well as by acquisitions.
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The following table presents a reconciliation of EBITDA, as adjusted, to net income as reported:
2008 2007 Net income as reported $240,047 $1,488,654 Add: Depreciation 81,791 55,142 Amortization - customer list 179,913 179,904 Amortization - forgivable advisor notes 89,810 51,514 Non-cash compensation 449,141 269,487 Income tax expense 299,605 30,394 EBITDA, as adjusted $1,340,307 $2,075,095
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, 2008 2008 2007 Revenues Commissions $32,269,835 $36,010,952 Interest and dividends 1,307,988 1,213,211 Other 343,326 316,603 33,921,149 37,540,766 Expenses Commissions and clearing costs 26,194,047 29,519,900 Employee compensation and benefits 4,597,796 3,943,210 Occupancy and equipment 625,301 615,201 Communications 421,068 353,960 Depreciation and amortization 261,704 235,046 Other operating expenses 1,281,581 1,354,401 33,381,497 36,021,718 Income before income taxes 539,652 1,519,048 Provision for income taxes 299,605 30,394 Net income $240,047 $1,488,654 Basic income per common share $0.01 $0.05 Diluted income per common share $0.01 $0.04 Weighted average common shares outstanding: Basic 25,697,561 28,210,280 Diluted 30,811,704 33,507,206
"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.