/C O R R E C T I O N -- Capstone Financial Group, Inc./

In the news release, Capstone Financial Group, Inc. Announces Q3 2014 Results, issued 18-Nov-2014 by Capstone Financial Group, Inc. over PR Newswire, we are advised by the company that the second paragraph, third sentence, should read "Financials for comparative period September 30, 2014 are currently being restated for an amended 2014 10-K filing the Company is preparing, as disclosed in a November 13, 2014 8-K filing." rather than "Financials for comparative period September 30, 2013 are currently being restated for an amended 2013 10-K filing the Company is preparing, as disclosed in a November 13, 2013 8-K filing." as originally issued inadvertently. The complete, corrected release follows:

Capstone Financial Group, Inc. Announces Q3 2014 Results

IRVINE, Calif., Nov. 18, 2014 /PRNewswire/ -- Capstone Financial Group, Inc. (OTCQB: CAPP) today reported financial results for the third quarter ended September 30, 2014.

EBITDA for the third quarter of 2014 was $51,802,224.  On a US GAAP basis, net income for the Company in the third quarter of 2014 was $34,158,526 and net income per share was $0.36.  The results are due to recently purchased warrants and options, their corresponding valuations, and the fair value accounting treatment the Company applied to them. Financials for comparative period September 30, 2014 are currently being restated for an amended 2014 10-K filing the Company is preparing, as disclosed in a November 13, 2014 8-K filing.

"We made meaningful progress in the third quarter, compared to the second quarter of 2014," said Darin Pastor, Chairman and CEO of Capstone Financial Group.  "The tremendous effort we've put forth for the past year is beginning to bear fruit."

"We are starting to get to where we envisioned Capstone would be," added George Schneider, President and Chief Investment Officer.  "We're pointed in the right direction, and hope to build on our recent success."

About Capstone Financial Group, Inc.
Founded in 2013, Capstone Financial Group, Inc is an exclusive holding company with executive offices in Irvine, Calif.  Capstone uses its own capital to acquire the outstanding stock of other companies, working closely and constructively with the management and boards of those companies, and aiming to significantly enhance their long-term earnings power and thus increase shareholder value.  The Company will also actively trade in its strategic investment positions and will enter into private securities transactions with those positions to capitalize on price fluctuations and realize profits or minimize losses.  For more information, visit www.capstonefinancialgroupinc.com.

Forward-Looking Statements
Statements in this press release relating to Capstone Financial Group, Inc.'s future plans, expectations, beliefs, intentions, and prospects, such as "forward-looking statements" are subject to material risks and uncertainties.  When used in this press release, the words "will", "future", "expect", "look forward to", similar expressions and any other statements that are not historical facts are intended to identify those assertions as forward-looking statements.  Any such statement may be influenced by a variety of factors, many of which are beyond the control of Capstone Financial Group, Inc. that could cause actual outcomes and results to be materially different from those projected, described, expressed or implied in this press release due to a number of risks and uncertainties.  Accordingly, no assurances can be given that any of the events anticipated by the forward-looking statements will transpire or occur.  All information set forth in this press release is current as of November 18, 2014.  Capstone Financial Group, Inc. undertakes no duty to (and disclaims any such obligation to) update any statement in light of new information or future events.

Use of Non-GAAP Measures
Capstone Financial Group, Inc. prepares its condensed financial statements in accordance with United States generally accepted accounting principles ("GAAP").  In addition to disclosing financial results prepared in accordance with GAAP, the Company discloses information regarding EBITDA, which adjusts net income (loss) from continuing operations to exclude taxes, interest, and depreciation and amortization.  EBITDA is not a measure of performance defined in accordance with GAAP.  However, EBITDA is used internally in planning and evaluating the company's operating performance.  Accordingly, management believes that disclosure of this metric offers investors an additional view of the company's operations that, when coupled with the GAAP results, provides a more complete understanding of the Company's financial results.  EBITDA should not be considered as an alternative to net income (loss) or to net cash used in operating activities as a measure of operating results or of liquidity.  A reconciliation of GAAP net income (loss) to EBITDA is included in the accompanying financial schedules.

 

CAPSTONE FINANCIAL GROUP, INC.
STATEMENTS OF OPERATIONS
(unaudited)
			Three months ended September 30, 2014			For the nine months ended September 30, 2014
Revenue:
	Realized gains on trading securities	$	3,841		$	18,055
	Unrealized gains on trading securities		52,090,075			54,522,426
	Consulting services		-			33,703
	Total revenue		52,093,916			54,574,184
Operating expenses:
	General and administrative		222,595			381,423
	Payroll expense		51,092			165,609
	Bad debt expense		(3,706)			40,361
	Professional fees		55,046			174,189
	Total operating expenses		325,027			761,582
Other income (expense):
	Other income		33,335			33,335
	Interest expense - related party		(10,853)			(36,001)
	Total other income (expense)		22,482			(2,666)
Net income before provision for income taxes			51,791,371			53,809,936
	Income tax provision (benefit)		17,632,845			18,200,000
Net income		$	34,158,526		$	35,609,936
Weighted average number of common shares outstanding - basic			93,980,460			93,724,753
Net income per share - basic		$	0.36		$	0.38

 

CAPSTONE FINANCIAL GROUP, INC.
RECONCILIATION OF NET INCOME TO EBITDA
		Three months ended September 30, 2014		For the nine months ended September 30, 2014
Net income		$            34,158,526		$                   35,609,936
Add back:
Interest Expense		10,853		36,001
Income Tax Expense		17,632,845		18,200,000
Depreciation and Amortization Expense		-		-
EBITDA		$            51,802,224		$                   53,845,937

 

SOURCE Capstone Financial Group, Inc.

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