Welcome!

News Feed Item

Summit Financial Services Group Announces Corrected 2013 Year End Results

BOCA RATON, Fla., March 10, 2014 /PRNewswire/ -- On March 4, 2014, Summit Financial Services Group, Inc. (OTC: SFNS) issued a press release announcing its financial results for the year ended December 31, 2013.  The provision for income taxes set forth in the release was incorrectly stated.  Accordingly, the following revised press release is being issued, which supersedes the prior release with the corrected information regarding Summit's 2013 year end results.

For 2013, the Company reported revenues of $87.62 million, which represented an increase of $14.38 million, or approximately 20%, from the $73.24 million in revenues reported for 2012.  For 2013, the Company reported net income of $2.55 million, which represented an increase of $0.96 million, or 60%, from the $1.59 million reported in 2012.

Marshall Leeds, the Company's Chairman, Chief Executive Officer and President, stated: "I am extremely pleased to report an increase in revenues, pre-tax and after-tax earnings. Our results for 2013 benefitted from an overall improvement in investor confidence (as reflected by the increases in the major market indices), as well as our continued focus on recruiting and retaining financial advisors.  EBITDA, as adjusted (which we consider a significant measure of our success) increased to $5.29 million, or by almost 19%, over the $4.46 million in EBITDA, as adjusted, reported for 2012.  As always, I would like to thank everyone at Summit for their hard work and dedication during 2013."

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 adviser, 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 315 producing financial advisors, and its business plan is focused primarily on increasing its network of affiliated registered representatives through recruitment as well as by acquisitions.

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:

 


2013

2012

Net income as reported (unaudited)

$

2,548,565

$

1,592,015

Add:  Depreciation


199,894


202,714


Amortization –notes receivable


189,960


196,124


Stock-based compensation


702,740


732,804


Income tax expense


1,648,000


1,736,000

EBITDA, as adjusted

$

5,289,159

$

4,459,657

 

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 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-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.

 

Summit Financial Services Group, Inc.

Condensed Consolidated Statements of Income

Years Ended December 31, 2013 and 2012





2013

(unaudited)

2012

 

Revenues





Commissions

$

81,837,841

$

68,208,147

Interest and dividends


819,911


998,490

Other revenue


4,961,121


4,029,863



87,618,873


73,236,500

Expenses





Commissions and clearing costs


69,237,380


58,136,808

Employee compensation and benefits


7,515,074


6,504,601

Occupancy and equipment


791,195


778,271

Communications


456,051


457,476

Depreciation and amortization


199,894


202,714

Other operating expenses


5,222,714


3,828,615



83,422,308


69,908,485

 

Income before provision for income taxes


4,196,565


3,328,015

Provision for income taxes


1,648,000


1,736,000

Net income

$

2,548,565

$

1,592,015






Basic income per common share

$

0.12

$

0.06

Diluted income per common share

$

0.10

$

0.05

Weighted average common shares outstanding:





Basic


20,384,803


26,484,699

Diluted


25,391,683


31,490,344

 

Summit Financial Services Group, Inc.

Consolidated Statements of Financial Condition

Years Ended December 31, 2013 and 2012





















2013

(unaudited)





2012

 


ASSETS









Cash and cash equivalents


$

12,086,794



$

7,966,800


Deposits held at clearing brokers



128,867




128,823


Commissions receivable and other, net



1,542,846




2,142,327


Notes receivable, net



694,330




438,383


Other receivables, net



230,330




317,752


Securities owned, at fair value



3,379




9,695


Prepaid expenses and other assets



1,536,533




840,255


Property and equipment, net



401,705




411,863


Goodwill



500,714




500,714


Total assets


$

17,125,498



$

12,756,612











LIABILITIES AND STOCKHOLDERS' EQUITY









Liabilities









Accounts payable and accrued expenses


$

2,691,539



$

1,821,704


Accrued commissions expense



2,343,279




2,869,656


Total liabilities



5,034,818




4,691,360





Commitments and contingencies







Stockholders' equity









Preferred stock, undesignated; par value $0.0001 per share; authorized 4,850,000 shares; none issued and outstanding







Preferred stock, Series A, 12% cumulative convertible; par value $0.0001 per share; authorized 150,000 shares; -0- issued and outstanding at December 31, 2013; 125,000 issued and outstanding (liquidation preference of $125,000) at December 31, 2012






13


Common stock, par value $0.0001 per share; authorized 100,000,000 shares; 21,984,076 issued and 21,969,164 outstanding at December 31, 2013; 20,290,567 issued and 20,275,655 outstanding at December 31, 2012



2,200




2,028


Additional paid-in capital



9,592,514




8,499,138


Unearned stock-based compensation



(1,264,820)




(1,666,572)


Treasury stock, 14,912 shares, at cost



(10,884)




(10,884)


Retained earnings



3,771,670




1,241,529


Total stockholders' equity



12,090,680




8,065,252





Total liabilities and stockholders' equity


$

17,125,498



$

12,756,612


























 

"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, the consummation of the Company's previously announced merger with a wholly owned subsidiary of RCS Capital Corporation, investor confidence and the performance of the securities markets, and the availability of suitable financial advisor candidates for the Company's recruitment. As indicated in the Company's Form 8-K, dated March 10, 2014, to which this press release is filed as an exhibit, RCS Capital Corporation plans to file with the SEC a Registration Statement on Form S-4 in connection with the proposed merger and Summit plans to file with the SEC and mail to their respective shareholders a proxy statement in connection with the proposed transaction, which will be included in RCS Capital Corporation's Registration Statement on Form S-4.

THE COMPANY'S ANNUAL REPORT ON FORM 10-K FOR THE YEAR ENDED DECEMBER 31, 2013, AS WELL AS THE REGISTRATION STATEMENT AND THE PROXY STATEMENT/PROSPECTUS RELATED TO THE PROPOSED MERGER WITH RCS CAPITAL CORPORATION, WILL CONTAIN IMPORTANT INFORMATION ABOUT SUMMIT, RCS CAPITAL CORPORATION, THE PROPOSED MERGER AND RELATED MATTERS. INVESTORS AND SECURITY HOLDERS ARE URGED TO READ THESE DOCUMENTS CAREFULLY WHEN THEY BECOME AVAILABLE, INCLUDING THE RISKS ASSOCIATED WITH THE MERGER, SUCH AS CERTAIN LIMITATIONS ON THE MANNER IN WHICH WE CAN CONDUCT OUR BUSINESS UNTIL THE CLOSING, THE LIKELIHOOD OF A SIGNIFICANT DROP IN THE PRICE OF OUR STOCK IF THE MERGER DOES NOT CLOSE, AND A MAY 30, 2014 DEADLINE TO CLOSE UNLESS CERTAIN CONDITIONS HAVE BEEN MET AND/OR WAIVED BY THE APPROPRIATE PARTY.  THERE CAN BE NO ASSURANCE THAT EITHER PARTY WILL GRANT SUCH WAIVER(S) IN THE EVENT ALL OF THE CONDITIONS REQUIRED TO BE MET AS OF MAY 30 HAVE NOT BEEN MET.

 

SOURCE Summit Financial Services Group, Inc.

More Stories By PR Newswire

Copyright © 2007 PR Newswire. All rights reserved. Republication or redistribution of PRNewswire content is expressly prohibited without the prior written consent of PRNewswire. PRNewswire shall not be liable for any errors or delays in the content, or for any actions taken in reliance thereon.

Latest Stories
SYS-CON Events announced today that Juniper Networks (NYSE: JNPR), an industry leader in automated, scalable and secure networks, will exhibit at SYS-CON's 20th International Cloud Expo®, which will take place on June 6-8, 2017, at the Javits Center in New York City, NY. Juniper Networks challenges the status quo with products, solutions and services that transform the economics of networking. The company co-innovates with customers and partners to deliver automated, scalable and secure network...
Cognitive Computing is becoming the foundation for a new generation of solutions that have the potential to transform business. Unlike traditional approaches to building solutions, a cognitive computing approach allows the data to help determine the way applications are designed. This contrasts with conventional software development that begins with defining logic based on the current way a business operates. In her session at 18th Cloud Expo, Judith S. Hurwitz, President and CEO of Hurwitz & ...
Everyone wants to use containers, but monitoring containers is hard. New ephemeral architecture introduces new challenges in how monitoring tools need to monitor and visualize containers, so your team can make sense of everything. In his session at @DevOpsSummit, David Gildeh, co-founder and CEO of Outlyer, will go through the challenges and show there is light at the end of the tunnel if you use the right tools and understand what you need to be monitoring to successfully use containers in your...
The explosion of new web/cloud/IoT-based applications and the data they generate are transforming our world right before our eyes. In this rush to adopt these new technologies, organizations are often ignoring fundamental questions concerning who owns the data and failing to ask for permission to conduct invasive surveillance of their customers. Organizations that are not transparent about how their systems gather data telemetry without offering shared data ownership risk product rejection, regu...
@GonzalezCarmen has been ranked the Number One Influencer and @ThingsExpo has been named the Number One Brand in the “M2M 2016: Top 100 Influencers and Brands” by Analytic. Onalytica analyzed tweets over the last 6 months mentioning the keywords M2M OR “Machine to Machine.” They then identified the top 100 most influential brands and individuals leading the discussion on Twitter.
Grape Up is a software company, specialized in cloud native application development and professional services related to Cloud Foundry PaaS. With five expert teams that operate in various sectors of the market across the USA and Europe, we work with a variety of customers from emerging startups to Fortune 1000 companies.
Financial Technology has become a topic of intense interest throughout the cloud developer and enterprise IT communities. Accordingly, attendees at the upcoming 20th Cloud Expo at the Javits Center in New York, June 6-8, 2017, will find fresh new content in a new track called FinTech.
New competitors, disruptive technologies, and growing expectations are pushing every business to both adopt and deliver new digital services. This ‘Digital Transformation’ demands rapid delivery and continuous iteration of new competitive services via multiple channels, which in turn demands new service delivery techniques – including DevOps. In this power panel at @DevOpsSummit 20th Cloud Expo, moderated by DevOps Conference Co-Chair Andi Mann, panelists will examine how DevOps helps to meet th...
With major technology companies and startups seriously embracing Cloud strategies, now is the perfect time to attend @CloudExpo | @ThingsExpo, June 6-8, 2017, at the Javits Center in New York City, NY and October 31 - November 2, 2017, Santa Clara Convention Center, CA. Learn what is going on, contribute to the discussions, and ensure that your enterprise is on the right path to Digital Transformation.
SYS-CON Events announced today that Interoute, owner-operator of one of Europe's largest networks and a global cloud services platform, has been named “Bronze Sponsor” of SYS-CON's 20th Cloud Expo, which will take place on June 6-8, 2017 at the Javits Center in New York, New York. Interoute is the owner-operator of one of Europe's largest networks and a global cloud services platform which encompasses 12 data centers, 14 virtual data centers and 31 colocation centers, with connections to 195 add...
@DevOpsSummit at Cloud taking place June 6-8, 2017, at Javits Center, New York City, is co-located with the 20th International Cloud Expo and will feature technical sessions from a rock star conference faculty and the leading industry players in the world. The widespread success of cloud computing is driving the DevOps revolution in enterprise IT. Now as never before, development teams must communicate and collaborate in a dynamic, 24/7/365 environment. There is no time to wait for long developm...
SYS-CON Events announced today that Hitachi, the leading provider the Internet of Things and Digital Transformation, will exhibit at SYS-CON's 20th International Cloud Expo®, which will take place on June 6-8, 2017, at the Javits Center in New York City, NY. Hitachi Data Systems, a wholly owned subsidiary of Hitachi, Ltd., offers an integrated portfolio of services and solutions that enable digital transformation through enhanced data management, governance, mobility and analytics. We help globa...
The age of Digital Disruption is evolving into the next era – Digital Cohesion, an age in which applications securely self-assemble and deliver predictive services that continuously adapt to user behavior. Information from devices, sensors and applications around us will drive services seamlessly across mobile and fixed devices/infrastructure. This evolution is happening now in software defined services and secure networking. Four key drivers – Performance, Economics, Interoperability and Trust ...
Blockchain is a shared, secure record of exchange that establishes trust, accountability and transparency across supply chain networks. Supported by the Linux Foundation's open source, open-standards based Hyperledger Project, Blockchain has the potential to improve regulatory compliance, reduce cost and time for product recall as well as advance trade. Are you curious about Blockchain and how it can provide you with new opportunities for innovation and growth? In her session at 20th Cloud Exp...
Five years ago development was seen as a dead-end career, now it’s anything but – with an explosion in mobile and IoT initiatives increasing the demand for skilled engineers. But apart from having a ready supply of great coders, what constitutes true ‘DevOps Royalty’? It’ll be the ability to craft resilient architectures, supportability, security everywhere across the software lifecycle. In his keynote at @DevOpsSummit at 20th Cloud Expo, Jeffrey Scheaffer, GM and SVP, Continuous Delivery Busin...