- 2018 Revenue rises 129% from the prior
year to $30.0 million
- 2018 Net income rises 455% from the
prior year to $12.0 million
- 2018 Basic and diluted earnings per
share (EPS) rises 340% from the prior year to $0.44 per share
Siebert Financial Corp. (NASDAQ:SIEB) (“Siebert”), a provider of
financial services, filed its 10K and reported results for its
fiscal year ending December 31, 2018.
“I am extremely proud of our financial results for 2018 and how
far we have come as a company. This year we made several
acquisitions to expand our product offerings, reach new clients,
and bolster our strategic position; KCA Technologies, LLC to
develop our Robo-Advisor, Park Wilshire Companies Inc. to offer
insurance products; and in January 2019, we acquired approximately
15% of StockCross Financial Services, Inc. (“StockCross”) in light
of the successful integration of their retail assets we purchased
at the end of 2017,” said Gloria E. Gebbia, controlling shareholder
and board member of Siebert. “While the bulk of our revenue
currently comes from our retail brokerage business through Muriel
Siebert & Co. Inc., these new acquisitions have already made a
positive impact on our financial results and strategically position
us for sustained success and continued growth in the future. We
look forward to what the future holds for our incredible
company.”
Siebert Turnaround Story
Andrew H. Reich, Siebert CFO, said, “Our 2018 results are a
remarkable milestone in the story of Siebert’s turnaround. Not only
did we have an outstanding year, but looking at the financial
results over the recent history of the company, the drastic shift
from sustained losses to profitability over the past two years is
quite remarkable.
"Our financial performance is a result of our strong management
team and outstanding employees. During 2018, the retail assets
acquired from StockCross contributed significantly to our revenue
and net income and Park Wilshire Companies Inc. added close to $1
million in revenue in less than a year of operation. We also
believe that StockCross will continue to be a valuable partner for
the long term.
“We are also very excited about how the market has responded to
our results. Over the past two years, our stock price has increased
almost 400%, rising from approximately $3.00 in the beginning of
2017 to approximately $14.50 at the end of 2018. In addition, in
June 2018, we were selected to join the Russell 3000 Index, further
solidifying our visibility in the capital markets.”
Selected Financial Highlights
The following table summarizes the year end results for 2018 and
2017 (in thousands, except per share amounts):
Year Ended December 31, 2018
2017 Change Revenue $ 30,036 $ 13,110 129 %
Income before income taxes $ 7,360 $ 2,310 219 % Net income $
11,962 $ 2,157 455 % Basic and diluted EPS $ 0.44 $ 0.10 340 %
Assets $ 18,177 $ 6,025 202 % Stockholders’ equity $ 17,174 $ 5,212
230 %
SIEBERT FINANCIAL CORP. &
SUBSIDIARIES CONSOLIDATED STATEMENTS OF INCOME
Year Ended December 31, 2018
2017 Revenue: Margin interest, marketing and
distribution fees $ 10,928,000 $ 6,600,000 Commissions and fees
9,504,000 4,801,000 Principal transactions 9,020,000 1,639,000
Advisory fees 478,000 51,000 Interest 106,000
19,000 Total revenue 30,036,000 13,110,000 Expenses:
Employee compensation and benefits 13,817,000 5,075,000 Clearing
fees, including execution costs 2,852,000 1,031,000 Professional
fees 1,963,000 2,135,000 Other general and administrative 1,859,000
1,510,000 Technology and communications 1,008,000 410,000 Rent and
occupancy 988,000 437,000 Depreciation and amortization 144,000
115,000 Advertising and promotion 45,000
87,000 Total expenses 22,676,000 10,800,000 Income
before (benefit) for (from) income taxes 7,360,000 2,310,000
(Benefit) provision (from) for income taxes (4,602,000 )
153,000 Net income $ 11,962,000 $
2,157,000 Net income per share of common stock Basic and
diluted $ 0.44 $ 0.10 Weighted average shares
outstanding Basic and diluted 27,157,188
22,507,798
SIEBERT FINANCIAL
CORP. & SUBSIDIARIES CONSOLIDATED STATEMENTS OF
FINANCIAL CONDITION December 31, 2018
December 31, 2017 ASSETS Cash and cash equivalents $
7,229,000 $ 3,765,000 Receivables from clearing and other brokers
2,030,000 1,396,000 Receivable from related party 1,000,000 283,000
Receivable from lessors 171,000 — Other receivables 96,000 —
Prepaid expenses and other assets 470,000 234,000 Furniture,
equipment and leasehold improvements, net 468,000 263,000 Software,
net 1,137,000 84,000 Deferred tax assets 5,576,000
— $ 18,177,000 $ 6,025,000
LIABILITIES AND STOCKHOLDERS’ EQUITY Liabilities
Accounts payable and accrued liabilities $ 699,000 $ 561,000 Lease
incentive obligation 171,000 — Due to clearing brokers and related
parties 133,000 127,000 Income taxes payable —
125,000 1,003,000 813,000 Commitments and
Contingencies Stockholders’ equity Common stock, $.01 par
value; 49,000,000 shares authorized, 27,157,188shares issued and
outstanding as of December 31, 2018 and December 31, 2017 271,000
271,000 Additional paid-in capital 7,641,000 7,641,000 Retained
earnings/(Accumulated deficit) 9,262,000
(2,700,000 ) 17,174,000 5,212,000
$ 18,177,000 $ 6,025,000
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.
About Siebert Financial Corp.
Siebert Financial Corp. is a holding company that conducts its
retail discount brokerage business through its wholly-owned
subsidiary, Muriel Siebert & Co., Inc., which became a member
of the NYSE in 1967 when Ms. Siebert became the first woman to own
a seat on the Exchange and the first to head one of its member
firms. The company conducts its investment advisory business
through its wholly-owned subsidiary, Siebert AdvisorNXT, Inc., a
registered investment advisor, its insurance business through its
wholly-owned subsidiary, Park Wilshire Companies Inc., a licensed
insurance agency, and KCA Technologies, LLC, its wholly-owned
subsidiary and developer of robo-advisory technology. Siebert is
headquartered in New York City with 12 retail branches throughout
the continental United States. Siebert is under common control with
StockCross. More information is available at
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 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 change in interest
rates; fluctuations in volume and price 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 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.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20190329005398/en/
Siebert Financial Corp.120 Wall StreetNew York, NY 10005
Investor Relations:Yesenia Berdugo, 212-644-2435Office of the
Administratorir@siebertnet.com
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