- Operating income increased 8% from the
fourth quarter of 2018, with operating margin increasing 2%
- Good results from Park Wilshire in the
first quarter of 2019
- New office openings in Jersey City and
Miami, reflecting business expansion and upgrading of technology
across the organization
Siebert Financial Corp. (NASDAQ:SIEB) (“Siebert”), a provider of
financial services, today announced results for the first quarter
of 2019, reporting net income of $1.0 million, basic and diluted
earnings per share (EPS) of $0.04, and revenue of $6.4 million.
“We entered 2019 on the heels of a record setting 2018 that saw
strong results across nearly every financial metric. The first
quarter of 2019 was weaker on a year over year basis due mostly to
market volatility, lower trading volume, and investment in
infrastructure and technology. Despite revenues being down year
over year, in comparison to the fourth quarter of 2018, operating
income was up 8% and revenue stayed relatively flat,” said Gloria
E. Gebbia, controlling shareholder and board member of Siebert.
“Additionally, we saw good results from Park Wilshire in the
first quarter of 2019. We are also exploring ways to invigorate our
customer channels, including the implementation of a program to
contact a targeted number of our clients – nearly $3 billion in AUM
– to proactively market new Siebert products and offerings. We see
this as an opportunity to generate new business from existing
clients.
“As we continue to expand our corporate footprint, we increased
our office space in Jersey City to nearly 11,000 square feet and
are in the process of establishing a large Miami office. Investing
in our office infrastructure, technology and internal processes is
key towards the long-term success of our business. Going forward,
we are excited to further energize our customer networks,
delivering value for our clients, partners and shareholders,” added
Mrs. Gebbia.
Selected Financial Highlights
The following table summarizes the results for the below periods
(unaudited):
Three Months Ended
March 31,
2019 2018
2017 Revenue $ 6,429,000
$ 8,177,000 $ 2,379,000
Operating income
$ 1,336,000 $ 2,106,000 $ 61,000 Net income $ 1,006,000 $ 1,693,000
$ 58,000 Basic and diluted EPS $ 0.04 $ 0.06 $ 0.00
SIEBERT FINANCIAL CORP. &
SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF
OPERATIONS
(unaudited)
Three Months Ended
March 31,
2019 2018 Revenue: Margin
interest, marketing and distribution fees $ 2,772,000 $ 2,535,000
Commissions and fees 1,864,000 2,674,000 Principal transactions
1,610,000 2,941,000 Advisory fees 168,000 16,000 Interest
15,000 11,000 Total Revenue 6,429,000 8,177,000
Expenses: Employee compensation and benefits 2,835,000
3,662,000 Clearing fees, including execution costs 654,000 902,000
Professional fees 502,000 608,000 Other general and administrative
385,000 386,000 Technology and communications 247,000 234,000 Rent
and occupancy 295,000 242,000 Depreciation and amortization 175,000
24,000 Advertising and promotion — 13,000
Total Expenses 5,093,000 6,071,000
Income before provision for income tax and
before earnings of equity method investment
1,336,000 2,106,000
Provision for income tax
369,000 413,000
Income before earnings of equity method
investment
967,000 1,693,000
Earnings of equity method investment
39,000 — Net income $ 1,006,000 $
1,693,000 Net income per share of common stock Basic and
diluted $ 0.04 $ 0.06 Weighted average shares
outstanding Basic and diluted 27,157,188
27,157,188
SIEBERT FINANCIAL CORP. &
SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF
FINANCIAL CONDITION
March 31, 2019 December 31, 2018
(unaudited) ASSETS Cash and cash equivalents $
3,767,000 $ 7,229,000 Receivables from clearing and other brokers
2,275,000 2,030,000 Receivable from related party 1,000,000
1,000,000 Receivable from lessors — 171,000 Other receivables
96,000 96,000 Prepaid expenses and other assets 568,000 470,000
Furniture, equipment and leasehold improvements, net 992,000
468,000 Software, net 1,404,000 1,137,000 Lease right-of-use assets
2,257,000 — Investment in related party 3,704,000 — Deferred tax
assets 5,486,000 5,576,000 $ 21,549,000
$ 18,177,000 LIABILITIES AND STOCKHOLDERS’ EQUITY
Liabilities: Accounts payable and accrued liabilities $ 579,000 $
699,000 Due to clearing brokers and related parties 64,000 133,000
Income tax payable
196,000 — Lease incentive obligation — 171,000 Lease liabilities
2,530,000 — 3,369,000 1,003,000
Commitments and Contingencies Stockholders’ equity:
Common stock, $.01 par value; 49,000,000
shares authorized, 27,157,188 shares issued and outstanding as of
March 31, 2019 and December 31, 2018
271,000 271,000 Additional paid-in capital 7,641,000 7,641,000
Retained earnings 10,268,000 9,262,000
18,180,000 17,174,000 $ 21,549,000 $
18,177,000
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. (“MSCO”), 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. (“AdvisorNXT”), a registered investment
advisor, and its insurance business through its wholly-owned
subsidiary, Park Wilshire Companies Inc. (“PWC”), a licensed
insurance agency. Siebert’s fourth wholly-owned subsidiary, KCA
Technologies, LLC (“KCAT”), is a developer of robo-advisory
technology. Siebert is headquartered in New York City with 13
retail branches throughout the continental United States. Siebert
is under common control with StockCross Financial Services, Inc.
(“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/20190515005956/en/
Siebert Financial Corp.120 Wall StreetNew York, NY 10005
Investor Relations:Melissa SheerKent Place
Communicationsmelissa@kentplacellc.com
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