- Achieved one of the highest quarterly revenues in the company’s
recent history, increasing 130% from Siebert’s first quarter of
2019*
- The acquisition of StockCross added significant revenue through
its business lines of clearing operations, market-making, equity
stock plan services, and securities lending
- The acquisition of StockCross added approximately $1.5 billion
in assets under management and 30,000 retail accounts as of January
1, 2020
Siebert Financial Corp. (NASDAQ:SIEB) (“Siebert”), a provider of
financial services, today announced results for the first quarter
of 2020, reporting revenue of $14.8 million, net income of $1.0
million, and basic and diluted earnings per share ("EPS") of
$0.03.
Quarterly Results and COVID-19 Impact
Gloria E. Gebbia, controlling shareholder and board member of
Siebert, commented on the quarter saying, “In regard to the
COVID-19 crisis, we are very thankful for the healthcare
specialists, first responders and all those who are on the front
line in every industry helping those who have been affected during
this challenging time. I am very proud of our employees and we have
been able to continue to meet the needs of our clients through our
technology-based platforms and services. To protect our employees,
clients and business partners, we have implemented remote work
arrangements for nearly 100% of our employees, have restricted
business travel and have limited access to our retail branches.
"Throughout this challenging time, our unwavering focus on
continuing to meet the needs of our clients is made possible by the
significant contributions of our employees, and we remain committed
to serving our clients while protecting our employees’
wellbeing."
Andrew H. Reich, CFO of Siebert, commented on Siebert’s
performance during the quarter saying, “In the midst of the
COVID-19 crisis we remain focused on driving results for the
company and achieved very positive results this quarter. Moving
forward in these uncertain times takes thoughtful consideration of
our strategic options and I am confident in our management team and
employees’ ability to execute them well. We look to emerge from
this crisis a more streamlined and profitable company."
Increased Revenue and New Business Lines
Mr. Reich continued, “Despite the COVID-19 crisis, in the first
quarter of 2020 we achieved one of the highest quarterly revenues
in the company’s recent history, with revenue increasing $8.4
million or 130% from Siebert’s first quarter of 2019*, primarily
due to the addition of our recent acquisitions. The new business
lines acquired from StockCross have added incremental revenue
streams such as interest income from clearing operations, market
making and stock borrow / stock loan. StockCross’ retail client
base has allowed us to continue to expand our retail operations
while adding new revenue streams through our existing and
recently-added equity stock plan services accounts. We are
beginning to see the benefits of implementing numerous cost saving
measures and synergies of our recent acquisitions as well as having
diverse customer revenue streams during volatile periods of the
market.”
Part of the StockCross acquisition included a new division and
additional business line focused on equity compensation for public
companies. Now launched, Siebert Corporate Services will now
provide equity compensation management and technology solutions to
public companies and their employees. In regard to the recent
Siebert acquisition, Eric Tassell, SVP of Corporate Services, said,
“We are extremely excited to grow our corporate services division
within Siebert. Currently we manage over 100 public companies
across over 125 countries and adding Corporate Services truly
improves Siebert’s global presence. We are looking forward to build
Siebert Corporate Services into a premiere partner in the equity
compensation landscape.”
New Fin-Tech Partnership
Siebert’s continued growth was a catalyst to further expand its
technology and online client experience. The company recently
agreed to a partnership with InvestCloud, a leading innovative tech
provider of flexible and fully integrated digital apps for
financial services, to provide a variety of enhancements and
upgrades to Siebert's online and mobile client experience,
including a state of the art Robo Advisor product. John Wise,
InvestCloud’s Co-founder, CEO and Chairman, said, “With a long and
well-respected history, Siebert is a great example of a firm on the
leading edge of digital transformation. Embarking on a digital
transformation journey will benefit Siebert greatly – improving
operational efficiency from front to back, while also providing
exceptional client-centric experiences.” The full press release
regarding this partnership can be found here.
*Results reported on the 2020 Q1 10Q are shown for Siebert and
StockCross on a combined basis for historical periods in accordance
with accounting guidance for common-control transactions.
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, WPS
Prime Services, LLC, a broker-dealer registered with the SEC.
Siebert also owns StockCross Digital Solutions, Ltd., an inactive
subsidiary headquartered in Bermuda. Siebert is headquartered in
New York City with 18 offices throughout the continental U.S. More
information is available at www.siebert.com.
About InvestCloud Inc.
InvestCloud is a global company specializing in digital
platforms that enable the development of financial solutions,
pre-integrated into the Cloud. The company offers on-demand client
experiences and intuitive operations solutions using an
ever-expanding library of modular apps, resulting in powerful
products. Headquartered in Los Angeles with additional offices in
New York, Toronto and London, InvestCloud supports more than $2
trillion in assets across 700+ diverse clients – from some of the
biggest banks in the world, wealth managers, institutional
investors and institutional asset managers to family offices, asset
services companies and financial platforms. For more information,
visit www.investcloud.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 judgement 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, global economic downturns
resulting from extraordinary events such as the COVID-19 pandemic
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.
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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version on businesswire.com: https://www.businesswire.com/news/home/20200528005648/en/
Investor Relations: Siebert Financial Corp. John T. Gebbia (310)
432-2196
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