SIEB Siebert Financial Corporation

• 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.

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Siebert Financial Corp.120 Wall StreetNew York, NY 10005

Investor Relations:Yesenia Berdugo, 212-644-2435Office of the Administratorir@siebertnet.com