BOCA RATON, Fla., May 17 /PRNewswire-FirstCall/ -- Summit Financial Services Group, Inc. (OTC Bulletin Board: SFNS) announced financial results for the three month period ended March 31, 2010 (the "2010 Quarter"). For the 2010 Quarter, the Company reported revenues of $15.1 million, which represented an increase of approximately $7.0 million, or 85%, from the $8.1 million in revenues reported for the same period of the prior year (the "2009 Quarter"). For the 2010 Quarter, the Company reported pre-tax income of approximately $7,000 versus a loss of approximately $86,000 for the 2009 Quarter. For the 2010 Quarter, the Company reported a net loss of approximately $136,000 versus a net loss of approximately $86,000 for the 2009 Quarter.

Marshall Leeds, the Company's Chairman, Chief Executive Officer and President, stated: "We believe that the significant increase in our revenues is due in large part to the success of our recruiting strategy, as well as improved investor confidence. While our pre-tax earnings for the 2010 Quarter were affected by approximately $454,000 in stock based compensation, the Company generated positive EBITDA, as adjusted, of $626,209, which we consider to be a principal metric of our success. This compares with EBITDA, as adjusted, of $127,419 for the 2009 Quarter." Mr. Leeds continued: "As always, I want to recognize and thank the hard-working, dedicated Summit financial advisors, their staffs and our home office associates, whose efforts make such outcomes possible."

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 305 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: 




                                             March 31,
                                             ---------
                                      2010                 2009
                                      ----                 ----
    Net income (loss) as reported            $(135,880)           $(86,122)
    Add: Depreciation                           48,676              19,311
        Amortization - notes                   115,910              40,030
        Non-cash Compensation                  454,503             154,200
        Income tax expense                     143,000                   -
                                               -------                 ---

    EBITDA, as adjusted                       $626,209            $127,419

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 March 31, 2010



                                        For The Three
                                            Months
                                         Ended March
                                                  31,
                                             ------------
                                   2010                2009
                                   ----                ----
                          (Unaudited)          (Unaudited)
    Revenues
        Commissions         $14,520,117                     $7,670,490
        Interest and
         dividends              339,095                        301,176
        Other                   200,048                        106,342
                                -------

                             15,059,260                      8,078,008


    Expenses
        Commissions and
         clearing costs      12,490,593                      6,248,791
        Employee
         compensation and
         benefits             1,719,259                      1,192,329
        Occupancy and
         equipment              214,855                        155,777
        Communications          102,529                        112,895
        Depreciation and
         amortization            38,783                         19,311
        Other operating
         expenses               486,081                        435,027

                             15,052,100                      8,164,130

    Income (loss) before
     income taxes                 7,160                        (86,122)

    Provision for income
     taxes                      143,000                              -

    Net income (loss)         $(135,840)                      $(86,122)

    Basic income (loss)
     per common share            $(0.01)                        $(0.00)

    Diluted income
     (loss) per common
     share                       $(0.01)                        $(0.00)

    Weighted average
     common shares
     outstanding:
        Basic                25,726,863                     25,458,634

        Diluted              25,726,863                     25,458,634

"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 Brokerage Services, Inc.