Siebert Financial Corp. (NASDAQ: SIEB), a provider of financial
and advisory services, filed its 10Q and reported results for its
third quarter ended September 30, 2018.
“We are pleased with Siebert’s financial performance this
quarter and we continue to see substantial year over year revenue
and earnings growth due to the acquisition of the retail assets
from StockCross, the increase in interest rates, and our efforts to
drive operational efficiency,” said Gloria E. Gebbia, controlling
shareholder and board member of Siebert Financial Corp. “We joined
the Russell 3000® Index last quarter and through our outstanding
results, we continue to prove that we have earned our place in the
index.”
“We are very excited about the recent acquisition of robo
technology company KCA Technologies, LLC,” said Mark Malek, Chief
Investment Officer of Siebert AdvisorNXT. “This acquisition
enhances our AdvisorNXT product as we further develop our platform
and expand key functionalities. This product will increase the
breadth of our total offering aimed at customers within new
demographics and complements our goal of new client
acquisition.”
Third Quarter 2018 Financial Highlights
Three Months
Nine Months Ended September
30, Ended September 30, Financial Highlights
2018
2017 %
Change 2018
2017
% Change
Total Revenue $ 7,884,000
$ 3,089,000 155 % $ 23,549,000 $ 8,157,000 189 % Net Income $
3,119,000 $ 1,001,000 212 % $ 6,611,000 $ 1,425,000 364 % Earnings
per share (rounded) $ 0.11 $ 0.05 120 % $ 0.24 $ 0.06 300 %
Retail Customer Metrics
2018
2017 %
Change
Retail customer accounts with
positions
39,247 27,020 45 %
Retail customer net worth (in
billions)
$ 11.7 $ 7.5 56 %
Third Quarter 2018 Financial Results
Total revenue for the three months ended September 30, 2018
increased to $7,884,000 from $3,089,000 for the corresponding
period in 2017, primarily driven by an increase in revenue related
to our acquisition of the retail assets from StockCross and an
increase in interest bearing earnings.
Net income for the three months ended September 30, 2018
increased to $3,119,000 or $0.11 per share from $1,001,000 or $0.05
per share for the corresponding period in 2017.
As of September 30, 2018, we had $7,341,000 in highly liquid
cash and cash equivalents. Total stockholders' equity was
$11,824,000 as of September 30, 2018 as compared to $5,212,000 as
of December 31, 2017.
For additional information please refer to our Quarterly Report
on Form 10-Q for the period ended September 30, 2018 filed with the
SEC on November 14, 2018. You may also access the Form 10-Q through
our website at www.siebertnet.com.
Acquisition of KCA Technologies, LLC (KCAT)
On August 21, 2018, Siebert acquired all the issued and
outstanding membership interests of KCA Technologies, LLC (KCAT)
from Kennedy Cabot Acquisition, LLC (KCA), a certain related party
of Siebert, for approximately $690,000. KCAT is a robo technology
company initially tasked with developing a sophisticated Robo
Platform product for Siebert AdvisorNXT. The Robo Platform provides
clients with an automated wealth management solution intended to
maximize portfolio returns based on the client’s specific risk
tolerance. The Robo Platform utilizes Modern Portfolio Theory to
create optimal portfolios for each client by selecting low-cost,
well-managed exchange traded funds (ETFs) and exchange traded notes
(ETNs), and automatically rebalances portfolios in light of
prevailing market conditions. Within the Robo Platform, the client
has the option of using a pure robo track, or can opt for a hybrid
approach, which combines the robo track with a traditional wealth
manager to help manage their portfolio and make investment
recommendations.
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 owner of certain intellectual property and related
computer software for optimizing investment portfolios. Siebert
Financial Corp. is based in New York City with 12 retail branches
throughout the continental United States. More information is
available at www.siebertnet.com.
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.
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; and 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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version on businesswire.com: https://www.businesswire.com/news/home/20181114005846/en/
Investors:Siebert Financial Corp.Yesenia Berdugo,
212-644-2435Office of the AdministratororMedia:LHK Communications,
LLCLaura Hynes-Keller, 212-758-8602
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