SIEB Siebert Financial Corporation

Highlights and Recent Developments

• Emphasis on Streamlining Operations and Rebuilding Infrastructure
• Investing in Technology and New Products for Growth
• Q1 Total Revenues $2.4 million; 4.8% reduction from Q1 2016
• Q1 Total Expenses $2.3 million, a decrease of 22.6% from Q1 2016
• Q1 Income $58,000 versus a net loss of $501,000 for Q1 2016
• Stockholder’s Equity $3.1 million at March 31, 2017
• Total Client Assets $7.3 Billion at March 31, 2017

Siebert Financial Corp. (NASDAQ:SIEB) announced financial results for the first quarter ending March 31, 2017.

Gloria E. Gebbia, majority shareholder and board member of Siebert Financial said, “We are pleased with our first quarter results as we focus on streamlining operations and rebuilding our infrastructure. Siebert founder Muriel ‘Mickie’ Siebert was a visionary who built a great business. This is a wonderful enterprise, and we are committed to serving our clients’ financial needs with superior customer service and product development to help them achieve their wealth management objectives.”

Immediately following the change in ownership in December 2016, under the direction of our strong management team and Andrew Reich, we began to execute the strategic plan of the Company’s business including streamlining the firm’s operations, rebuilding the firm’s technologic infrastructure to prepare for growth, moving the firm’s call center and adjusting the firm’s cost structure. The results of these efforts were reported in the Company’s Form 10-Q for the first quarter of 2017. “We are proud of those results and our being profitable in the first quarter of 2017,” added Gloria Gebbia.

For additional information, please refer to our Quarterly Report on Form 10-Q for the period ended March 31, 2017 filed with the SEC on May 12, 2017. You may also access the Form 10-Q through our website.

About Siebert Financial Corp.

Siebert Financial is a holding company that conducts its retail discount brokerage business through its wholly-owned subsidiary, Muriel Siebert & Co., Inc. The firm became a member of the NYSE in 1967, when Ms. Siebert became the first woman to own a seat on the Exchange. In addition, in 2014 the Company began business as a registered investment advisor through a wholly-owned subsidiary, Siebert Investment Advisors, Inc. Siebert Financial is based in New York City with additional retail branches in Boca Raton, FL and Jersey City, NJ.www.siebertnet.com

Cautionary note regarding forward-looking statements

Statements in this press release that are not statements of historical or current fact constitute “forward looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. Such forward looking statements involve risks and uncertainties and known and unknown factors that could cause the actual results of the Siebert Financial Corp. (the “Company”) to be materially different from historical results or from any future results expressed or implied by such forward looking statements, including without limitation: changes in general economic and market conditions; changes and prospects for changes in interest rates; fluctuations in volume and prices of securities; changes in demand for brokerage services; competition within and without the brokerage business, including the offer of broader services; competition from electronic discount brokerage firms offering greater discounts on commissions than the Company; the prevalence of a flat fee environment; limited trading opportunities; the method of placing trades by the Company’s customers; computer and telephone system failures; the level of spending by the Company on advertising and promotion; trading errors and the possibility of losses from customer non-payment of amounts due; other increases in expenses and changes in net capital or other regulatory requirements. As a result of these and other factors, the Company may experience material fluctuations in its operating results on a quarterly or annual basis, which could materially and adversely affect its business, financial condition, operating results, and stock price, as well as other risks detailed in the Company’s filings with the Securities and Exchange Commission (“SEC”). Accordingly, investors are cautioned not to place undue reliance on any such “forward-looking statements. The Company undertakes no obligation to update the information contained herein or to publicly announce the result of any revisions to such “forward-looking statements” to reflect future events or developments. An investment in the Company involves various risks, including those mentioned above and those, which are detailed from time to time in the Company’s SEC filings, copies of which may be obtained from the Company or through the SEC’s website.

Notice to Investors

This communication is provided for informational purposes only and is neither an offer to sell nor a solicitation of an offer to buy any securities in the United States or elsewhere.

       

Item 1. Financial Statements.

Siebert Financial Corp. & Subsidiaries

Consolidated Statements of Financial Condition (Unaudited) - USD ($) Mar. 31, 2017 Dec. 31, 2016 ASSETS Cash and cash equivalents $ 2,047,000 $ 2,730,000 Receivable from brokers 733,000 606,000 Securities owned, at fair value 0 92,000 Furniture, equipment and leasehold improvements, net 215,000 46,000 Prepaid expenses and other assets   403,000     342,000  

 

  3,398,000     3,816,000   Liabilities: Accounts payable and accrued liabilities 284,000 738,000 Accrued settlement liability   0     825,000  

 

  284,000     1,563,000   Commitments and contingent liabilities Stockholders' equity: Common stock, $.01 par value; 49,000,000 shares authorized, 22,085,126 shares issued and outstanding as of March 31, 2017 and 22,085,126 shares issued and outstanding as of December 31, 2016 221,000 221,000 Additional paid-in capital 7,692,000 6,889,000 (Accumulated deficit)   (4,799,000 )   (4,857,000 )

 

  3,114,000     2,253,000  

 

$ 3,398,000   $ 3,816,000    

See notes to condensed consolidated financial statements.

    Consolidated Statements of Operations (Unaudited) - USD ($) 3 Months Ended Mar. 31, 2017     Mar. 31, 2016 Revenues:     Commissions and fees $ 1,183,000 $ 1,210,000 Margin interest, marketing and distribution fees 1,080,000 868,000 Investment banking 5,000 12,000 Trading profits 109,000 265,000 Interest and dividends   2,000       143,000  

 

  2,379,000       2,498,000   Expenses: Employee compensation and benefits 1,039,000 1,287,000 Clearing fees, including floor brokerage 263,000 238,000 Professional fees 425,000 670,000 Advertising and promotion 20,000 66,000 Communications 80,000 130,000 Occupancy 142,000 182,000 Other general and administrative   352,000       426,000  

 

  2,321,000       2,999,000  

Net income (loss)

$ 58,000     $ (501,000 )

Net income loss per share of common stock

 

 

 

 

 

Continuing operations

$

.00

   

$

(.02

)

Basic and diluted

$

.00

   

$

(.02

)

 

Weighted average shares outstanding

 

 

 

 

 

Basic

22,085,126 22,085,126

Diluted

22,085,126 22,085,126  

See notes to condensed consolidated financial statements.

        Consolidated Statements of Cash Flows (Unaudited) - USD ($) 3 Months Ended Mar. 31, 2017     Mar. 31, 2016 Cash flows from operating activities:

Net income (loss)

$ 58,000 $ (501,000 )

Adjustments to reconcile net income (loss) to net cash used in operating activities:

Depreciation and amortization 46,000 68,000 Interest accrued on note receivable from business sold to former affiliate 0 (140,000 ) Changes in: Securities owned, at fair value 92,000 (84,000 ) Advance to former affiliate 0 (82,000 ) Receivable from brokers (127,000 ) 101,000 Prepaid expenses and other assets (61,000 ) (12,000 ) Accounts payable and accrued liabilities   (476,000 )       (606,000 ) Net cash used in operating activities   (468,000 )       (1,256,000 ) Cash flows from investing activities: Purchase of furniture, equipment and leasehold improvements (215,000 ) (18,000 ) Collection of receivable from former affiliate   0         493,000   Net cash (used in) provided by investing activities (215,000 ) 475,000 Net decrease in cash and cash equivalents (683,000 ) (781,000 ) Cash and cash equivalents - beginning of period   2,730,000         9,420,000   Cash and cash equivalents - end of period

$

2,047,000 $ 8,639,000

Supplemental Schedule Of Non-Cash Financing Activities:

Payment by parent of expenses

$

803,000

       

—

   

See notes to condensed consolidated financial statements.

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Investors:Siebert Financial Corp.Yesenia Berdugo, 212-644-2435Office of the AdministratororMedia:LHK Communications LLCLaura Hynes-Keller, 212-758-8602laurahk@lhkcommunications.com