- Total assets under management increased 33% from the prior year
due to organic growth of retail customer assets as well as
institutional customer assets acquired from Weeden Prime
- Effective January 1, 2020, Siebert acquired StockCross, a
clearing broker-dealer, for a total purchase price of approximately
$30 million paid in Siebert stock
- StockCross generates approximately $11-$13 million in annual
revenue through its business lines of clearing operations,
market-making, equity stock plan services, IRA custodianship and
securities lending
- Siebert gains approximately $2.9 billion in assets under
management and four offices through its acquisitions of Weeden
Prime and StockCross
- Starting January 1, 2020, Siebert’s total stockholders' equity
will be approximately $35 million as a result of these
acquisitions
Siebert Financial Corp. (NASDAQ:SIEB) (“Siebert”), a provider of
financial services, filed its 10K and reported results for its
fiscal year ending December 31, 2019.
Gloria E. Gebbia, controlling shareholder and board member of
Siebert, commented on the results for 2019 saying, “There were many
highlight moments in 2019 for our company. We started out the year
by acquiring 15% of StockCross Financial Services, Inc.
(“StockCross”), a clearing broker dealer, and in July we were
included in the Russell 2000® Index as part of the 2019 Russell
U.S. Indexes reconstitution, further solidifying our visibility in
the capital markets.
“In December 2019, we completed the acquisition of Weeden Prime
Services, LLC (“Weeden Prime”), a leading prime brokerage service
provider, which provides a new customer base of institutional
clients as well as opportunities related to new clearing
relationships. We also see substantial cross-selling opportunities
for our institutional and retail clients.
“We saw a significant opportunity in StockCross and decided to
buy the company and merge it with and into our broker-dealer
subsidiary, MSCO, effective January 1, 2020. StockCross provides an
array of new business lines to Siebert such as clearing operations,
market-making, equity stock plan services, IRA custodianship, and
securities lending. StockCross’ equity stock plan service business
exposes us to public companies on a global level, enabling us to
further our account growth and build relationships with established
technology partners.
“In addition, the service personnel and depth of management of
the combined companies will enable Siebert to enhance the client
experience. We plan on building upon our current positive results
with these acquisitions and look forward to what the future holds
for our company.”
Andrew H. Reich, CFO of Siebert, commented on Siebert’s
performance during 2019 saying, “Our assets under management
increased 33% from the prior year due to organic growth of retail
customer assets as well as the acquisition of institutional
customer assets through Weeden Prime.
“For the first month we owned Weeden Prime, it achieved almost
$1 million in revenue and approximately $203,000 in net income. In
addition, we are starting to see the benefits of implementing
numerous cost saving measures as well as having diverse customer
revenue streams during volatile periods of the market.
“While the bulk of our revenue currently comes from our retail
brokerage business, Weeden Prime and StockCross have historically
generated respectively, $11-13 million and $12-14 million in annual
revenue. If Weeden Prime and StockCross continue to generate
revenue at historical rates, they will increase as well as
diversify our revenue streams into new business lines and customer
bases.
“These new acquisitions have already made a positive impact on
our financial results and strategically position us for continued
growth in the future. While our future results are subject to the
unknown economic impact of the coronavirus (COVID-19) pandemic, we
remain focused on driving results for our shareholders and moving
this company to the next level.”
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 brokerage business through its wholly-owned subsidiary,
Muriel Siebert & Co., Inc., which became a member of the New
York Stock Exchange (“NYSE”) in 1967 when Ms. Siebert became the
first woman to own a seat on the NYSE 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, and its insurance business
through its wholly-owned subsidiary, Park Wilshire Companies, Inc.,
a licensed insurance agency. Siebert conducts operations through
its wholly-owned subsidiary, Siebert Technologies, LLC., a
developer of robo-advisory technology. Siebert also offers prime
brokerage services through its fifth wholly-owned subsidiary,
Weeden Prime Services, LLC, a broker-dealer registered with the
SEC. Siebert is headquartered in New York City with 18 offices
throughout the continental U.S. Siebert is under common control
with StockCross Financial Services, Inc. More information is
available at www.siebertnet.com.
About FTSE Russell
FTSE Russell is a global index leader that provides innovative
benchmarking, analytics and data solutions for investors worldwide.
FTSE Russell calculates thousands of indexes that measure and
benchmark markets and asset classes in more than 70 countries,
covering 98% of the investable market globally.
FTSE Russell index expertise and products are used extensively
by institutional and retail investors globally. For over 30 years,
leading asset owners, asset managers, ETF providers and investment
banks have chosen FTSE Russell indexes to benchmark their
investment performance and create ETFs, structured products and
index-based derivatives.
FTSE Russell is wholly owned by London Stock Exchange Group. For
more information, visit www.ftserussell.com.
About StockCross Financial Services, Inc.
StockCross Financial Services, Inc. is one of the largest
privately-owned brokerage firms in the nation. Established in 1971,
it has spent many years providing financial guidance and excellent
customer service to its clients. Branch offices are located
throughout the nation and are staffed with knowledgeable and
experienced representatives. Online investment services and phone
support offer clients around the world instant and current
information on their accounts. StockCross consistently delivers on
its full scope of offerings including market making, fixed-income
products, online or broker-assisted equity trading, securities
lending, and equity stock plan services across the globe through
advanced online trading capabilities. StockCross is a clearing
broker-dealer and IRA custodian providing clearing and custody
services for its clients and Muriel Siebert & Co., Inc.
StockCross is headquartered in Beverly Hills. Member FINRA | SIPC |
EST. 1971.
About Weeden Prime Services, LLC
Weeden Prime is a technology-powered prime brokerage business
focused on providing institutional quality services to hedge funds
and family offices. With a focus on capital raising and
cutting-edge technology, Weeden Prime has successfully created an
ideal platform which clients can leverage in seeking to grow their
businesses. Weeden Prime offers a comprehensive global platform
that includes institutional equity, outsourced trading, automated
allocation technology and sophisticated portfolio reporting. More
information is available at www.weedenprime.com.
Cautionary Note Regarding Forward-Looking Statements
The statements contained in this press release that are not
historical facts, including statements about our beliefs and
expectations, are “forward-looking statements” within the meaning
of the U.S. Private Securities Litigation Reform Act of 1995.
Forward-looking statements include statements preceded by, followed
by or that include the words “may,” “could,” “would,” “should,”
“believe,” “expect,” “anticipate,” “plan,” “estimate,” “target,”
“project,” “intend” and similar words or expressions. In addition,
any statements that refer to expectations, projections, or other
characterizations of future events or circumstances are
forward-looking statements.
These forward-looking statements, which reflect our management’s
beliefs, objectives, and expectations as of the date hereof, are
based on the best judgment of our management. All forward-looking
statements speak only as of the date on which they are made. Such
forward-looking statements are subject to certain risks,
uncertainties and assumptions relating to factors that could cause
actual results to differ materially from those anticipated in such
statements, including, without limitation, the following: economic,
social and political conditions and other securities industry
risks; interest rate risks; liquidity risks; credit risk with
clients and counterparties; risk of liability for errors in
clearing functions; systemic risk; systems failures, delays and
capacity constraints; network security risks; competition; reliance
on external service providers; new laws and regulations affecting
our business; net capital requirements; extensive regulation,
regulatory uncertainties and legal matters; failure to maintain
relationships with employees, customers, business partners or
governmental entities; the inability to achieve synergies or to
implement integration plans and other consequences associated with
risks and uncertainties detailed in our filings with the SEC,
including our most recent filings on Forms 10-K and 10-Q.
The forward-looking statements contained herein speak only as of
the date on which the statements were made. We caution that the
foregoing list of factors is not exclusive, and new factors may
emerge, or changes to the foregoing factors may occur, that could
impact our business. We undertake no obligation to publicly update
or revise these statements, whether as a result of new information,
future events or otherwise, except to the extent required by the
federal securities laws.
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Siebert Financial Corp. 120 Wall Street New York, NY 10005
Investor Relations: Siebert Financial Corp. John T. Gebbia (310)
432-2196
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