Siebert Financial Corp. (NASDAQ:SIEB) today reported financial results for the three and nine months ended September 30, 2017.
Gloria E. Gebbia, majority shareholder and board member of Siebert Financial said, "Our firm has a strong, stable foundation, and our results for the first nine months of the year reflect the quality of our efforts on behalf of our clients. As we continue to make investments in our business, we are in an excellent position to capitalize on growth opportunities to improve the customer experience and further position us for the future.”
Siebert Financial Corp. has continuously served clients throughout the United States and globally for five decades. The firm will celebrate its 50th Anniversary with a New York Stock Exchange bell ringing ceremony on December 22 to commemorate founder Muriel Siebert’s groundbreaking achievement in becoming the first woman to both own a seat on the NYSE and head one of its member firms, Muriel Siebert & Co., Inc. in 1967. Muriel Siebert overcame tremendous challenges to gain international recognition as Wall Street’s First Woman of Finance and a trailblazing icon of the financial world. She was also a pioneer in the discount brokerage field, transforming her firm into a discount brokerage in 1975 on the first day NYSE members were allowed to negotiate commissions.
“For 50 years, Siebert Financial has maintained its steadfast focus on excellence in serving our client's financial needs. Mickie Siebert was a savvy visionary who established our firm on the core values of integrity and the safety of investments, and we remain deeply committed to upholding these standards while working to help our clients achieve their financial goals. We are honored and look forward to celebrating her legacy at the NYSE,” she added.
For additional information, please refer to our Quarterly Report on Form 10-Q for the period ended September 30, 2017 filed with the SEC on November 9, 2017. You may also access the Form 10-Q through our website. https://www.siebertnet.com/documents/Siebert_3Q17_11-09-17.pdf
About Siebert Financial Corp.
Siebert Financial is a holding company that conducts its retail discount brokerage business through its wholly-owned subsidiary, Muriel Siebert & Co., Inc. The firm became a member of the NYSE in 1967, when Ms. Siebert became the first woman to own a seat on the Exchange. In addition, in 2014 the Company began business as a registered investment advisor through a wholly-owned subsidiary, Siebert Investment Advisors, Inc. Siebert Financial is based in New York City with additional retail branches in Boca Raton, FL and Jersey City, NJ. 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 the 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 changes in interest rates; fluctuations in volume and prices 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 of 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.
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.
FOR: SIEBERT FINANCIAL CORP.
120 Wall Street 25th Floor
New
York, NY 10005
| Item 1. Financial Statements. | ||||||||||
| Siebert Financial Corp. & Subsidiaries | ||||||||||
Consolidated Statements of Financial Condition (Unaudited) - USD ($) | ||||||||||
Sep. 30, 2017 | Dec. 31, 2016 | |||||||||
| Cash and cash equivalents | $ | 3,215,000 | $ | 2,730,000 | ||||||
| Receivable from brokers | 1,100,000 | 606,000 | ||||||||
| Securities owned, at fair value | 0 | 92,000 | ||||||||
| Furniture, equipment and leasehold improvements, net | 306,000 | 46,000 | ||||||||
| Prepaid expenses and other assets | 354,000 | 342,000 | ||||||||
| 4,975,000 | 3,816,000 | |||||||||
| Liabilities: | ||||||||||
| Accounts payable and accrued liabilities | 494,000 | 738,000 | ||||||||
| Accrued settlement liability | 0 | 825,000 | ||||||||
| Total liabilities | 494,000 | 1,563,000 | ||||||||
| Commitments and contingent liabilities | ||||||||||
Stockholders' equity: | ||||||||||
Common stock, $.01 par value; 49,000,000 shares authorized,
22,085,126 shares issued and | 221,000 | 221,000 | ||||||||
| Additional paid-in capital | 7,692,000 | 6,889,000 | ||||||||
| Deficit | (3,432,000 | ) | (4,857,000 | ) | ||||||
| 4,481,000 | 2,253,000 | |||||||||
| $ | 4,975,000 | $ | 3,816,000 | |||||||
Consolidated Statements of Operations (Unaudited) - USD ($) | 3 Months Ended | 9 Months Ended | ||||||||||||||||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | |||||||||||||||
| Revenues: | ||||||||||||||||||
| Commissions and fees | $ | 1,077,000 | $ | 1,078,000 | $ | 3,295,000 | $ | 3,519,000 | ||||||||||
| Margin interest, marketing and distribution fees | 1,850,000 | 862,000 | 4,477,000 | 2,687,000 | ||||||||||||||
| Investment banking | 4,000 | 11,000 | 16,000 | 34,000 | ||||||||||||||
| Trading profits | 154,000 | 131,000 | 360,000 | 521,000 | ||||||||||||||
| Interest and dividends | 4,000 | 141,000 | 9,000 | 422,000 | ||||||||||||||
| 3,089,000 | 2,223,000 | 8,157,000 | 7,183,000 | |||||||||||||||
| Expenses: | ||||||||||||||||||
| Employee compensation and benefits | 1,031,000 | 1,236,000 | 3,069,000 | 3,723,000 | ||||||||||||||
| Clearing fees, including floor brokerage | 252,000 | 203,000 | 819,000 | 677,000 | ||||||||||||||
| Professional fees | 372,000 | 1,178,000 | 1,265,000 | 2,763,000 | ||||||||||||||
| Advertising and promotion | 16,000 | 38,000 | 61,000 | 171,000 | ||||||||||||||
| Communications | 56,000 | 120,000 | 192,000 | 382,000 | ||||||||||||||
| Occupancy | 86,000 | 179,000 | 306,000 | 558,000 | ||||||||||||||
| Other general and administrative | 275,000 | 409,000 | 1,020,000 | 1,278,000 | ||||||||||||||
| Total operating expenses | 2,088,000 | 3,363,000 | 6,732,000 | 9,552,000 | ||||||||||||||
| Income/(Loss) from continuing operations | 1,001,000 | (1,140,000 | ) | 1,425,000 | (2,369,000 | ) | ||||||||||||
| Income tax benefit/(expense) | 0 | 0 | 0 | 0 | ||||||||||||||
| Net income (loss) | $ | 1,001,000 | $ | (1,140,000 | ) | $ | 1,425,000 | $ | (2,369,000 | ) | ||||||||
| Net income (loss) per share of common stock - Basic and diluted | $ | 0.05 | $ | (0.05) | $ | 0.06 | $ | (0.11) | ||||||||||
| Weighted average shares outstanding - Basic and diluted | 22,085,126 | 22,085,126 | 22,085,126 | 22,085,126 | ||||||||||||||
Consolidated Statements of Cash Flows (Unaudited) - USD ($) | 9 Months Ended | |||||||||
Sep. 30, 2017 | Sep. 30, 2016 | |||||||||
| Cash flows from operating activities: | ||||||||||
| Net income (loss) | $ | 1,425,000 | $ | (2,369,000 | ) | |||||
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities: | ||||||||||
| Depreciation and amortization | 90,000 | 205,000 | ||||||||
| Interest accrued on note receivable from business sold to former affiliate | 0 | (411,000 | ) | |||||||
| Changes in: | ||||||||||
| Securities owned, at fair value | 92,000 | (96,000 | ) | |||||||
| Receivable from brokers | (494,000 | ) | 46,000 | |||||||
| Prepaid expenses and other assets | (12,000 | ) | 237,000 | |||||||
| Accounts payable and accrued liabilities | (266,000 | ) | (652,000 | ) | ||||||
| Net cash provided by (used in) operating activities | 835,000 | (3,040,000 | ) | |||||||
| Cash flows from investing activities: | ||||||||||
| Purchase of furniture, equipment and leasehold improvements | (350,000 | ) | (37,000 | ) | ||||||
| Collection of receivable from former affiliate | 0 | 493,000 | ||||||||
| Net cash provided by (used in) investing activities | (350,000 | ) | 456,000 | |||||||
| Net increase (decrease) in cash and cash equivalents | 485,000 | (2,584,000 | ) | |||||||
| Cash and cash equivalents - beginning of period | 2,730,000 | 9,420,000 | ||||||||
| Cash and cash equivalents - end of period | 3,215,000 | 6,836,000 | ||||||||
| Supplemental Schedule Of Non-Cash Financing Activities: | ||||||||||
| Payment by parent of expenses | $ | 803,000 | $ | 0 | ||||||
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Contacts:
Siebert Financial Corp.
Office of the Administrator
Yesenia
Berdugo, 212-644-2435
or
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Laura
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