Summit Financial Services Group Announces Results for the Three- and Nine-Months Ended September 30, 2013

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."

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:

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.

"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.