- Revenue approximately doubled to $54.9 million in 2020 compared
to $28.6 million in 2019, largely due to recent acquisitions*
- WPS revenue increased by approximately 15% and achieved
operating income of $1.3 million in 2020
- Hired Anthony Palmeri from JPMorgan Chase & Co. and Jerry
Losurdo from TD Prime Services, LLC to lead Siebert’s Securities
Finance Group in November 2020
- Our Securities Finance Group achieved its highest quarterly
revenue in 2020 Q4
- Invested in OpenHand, a zero-commission subscription-based
brokerage platform
Siebert Financial Corp. (NASDAQ: SIEB) (“Siebert”), a provider
of financial services, today announced results for the full year of
2020, reporting revenue of $54.9 million, net income of $3.0
million, and basic and diluted earnings per share of $0.10.
Gloria E. Gebbia, controlling shareholder and board member of
Siebert, commented on the results of the year saying, “We are
excited to see our strategic acquisitions and new revenue streams
driving growth for our company. In regard to the COVID-19 crisis,
we have reopened our branch offices while ensuring compliance with
federal, state, and local laws as well as health and safety
guidelines. We have taken numerous steps to ensure that our
employees and customers are operating in a safe environment and
will continue to respond appropriately.
WPS Prime Services, LLC (“WPS”) had a standout year as revenue
increased by 15% and operating income was $1.3 million. The strong
results within our first year of acquiring WPS is a testament to
the hard work of our employees and our loyal client base.
Another exciting development was the hiring of Anthony Palmeri
from JPMorgan Chase & Co. and Jerry Losurdo from TD Prime
Services, LLC and their team into our Securities Finance Group in
November 2020. This very dynamic team will build upon the success
of our current Securities Finance Group while leveraging their
industry-leading expertise and connections to further drive results
and continue the growth of Siebert.”
Andrew Reich, CFO of Siebert, commented on Siebert’s performance
during the year saying, “Total revenue growth of $26.3 million from
2019 reflects the successful integration and performance of our
StockCross and WPS acquisitions.* Despite the COVID-19 crisis and a
low-interest rate environment, we have achieved the highest annual
revenue of Siebert’s history. Our commissions and fees and
principal transactions have increased from last year, WPS has
performed incredibly well its first year under our ownership, and
we are already seeing the impact of Mr. Palmeri and Mr. Losurdo and
their team working alongside the strength of our current Securities
Finance Group. During 2020 Q4, the Securities Finance Group
achieved its highest quarterly revenue of over $1.5 million, which
represents an increase of over 500% from 2019 Q4.
Alongside this revenue growth, we are strategically evaluating
our key vendors to identify areas where we can optimize our cost
structure while maintaining operational efficiency and the quality
of the customer experience. We are beginning to transition into
more cost-efficient locations which will benefit us starting this
quarter.”
Investment in OpenHand
In January 2021, Siebert purchased an equity interest in
OpenHand, a subscription-based brokerage platform that will provide
zero-commission trading for equity and option transactions and will
credit its members daily with rebates of revenues generated through
its members’ trading activity, less operational expenses. Siebert
will be the exclusive broker-dealer for all OpenHand account
services and will benefit from their cloud-based technology which
uses Amazon Web Services. This strategic, operational, and
technological partnership will add an additional business line and
expand our technology offerings for the next-generation
investor.
*Results reported on the 2020 10K 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. Siebert 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 is
headquartered in New York City with offices throughout the
continental U.S. More information is available at
www.siebert.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, 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/20210310005843/en/
Investor Relations: Siebert Financial Corp. John T. Gebbia (310)
432-2196
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