BOCA RATON, Fla., March 31 /PRNewswire-FirstCall/ -- Summit Financial Services Group, Inc. (OTC Bulletin Board: SFNS) announced financial results for its year ended December 31, 2008. For 2008, the Company reported revenues of $33.9 million, which represented a decrease of approximately $3.6 million, or 10%, from the $37.5 in revenues reported for 2007. For 2008, the Company reported net income of $.24 million, which represented a decrease of approximately $1.25 million, or 84%, from the $1.49 million reported in 2007.

Marshall Leeds, the Company's Chairman, Chief Executive Officer and President, stated: "We, like the rest of the financial services industry, have been impacted by the recent turmoil in the financial markets and the downturn in investor confidence. Despite the decrease in both our revenues and earnings, the Company generated in excess of $1.3 million in EBITDA, as adjusted, which we consider to be a principal metric of our success."

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 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 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.