SIEB Siebert Financial Corporation

• 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.

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Siebert Financial Corp.120 Wall StreetNew York, NY 10005

Investor Relations:Melissa SheerKent Place Communicationsmelissa@kentplacellc.com