NEW YORK--(BUSINESS WIRE)--Siebert Financial Corp. (NASDAQ:SIEB) announced financial results for the first quarter ending March 31, 2017.
Gloria E. Gebbia, majority shareholder and board member of Siebert Financial said, “We are pleased with our first quarter results as we focus on streamlining operations and rebuilding our infrastructure. Siebert founder Muriel ‘Mickie’ Siebert was a visionary who built a great business. This is a wonderful enterprise, and we are committed to serving our clients’ financial needs with superior customer service and product development to help them achieve their wealth management objectives.”
Immediately following the change in ownership in December 2016, under the direction of our strong management team and Andrew Reich, we began to execute the strategic plan of the Company’s business including streamlining the firm’s operations, rebuilding the firm’s technologic infrastructure to prepare for growth, moving the firm’s call center and adjusting the firm’s cost structure. The results of these efforts were reported in the Company’s Form 10-Q for the first quarter of 2017. “We are proud of those results and our being profitable in the first quarter of 2017,” added Gloria Gebbia.
For additional information, please refer to our Quarterly Report on Form 10-Q for the period ended March 31, 2017 filed with the SEC on May 12, 2017. You may also access the Form 10-Q through our website.
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.
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Item 1. Financial Statements. Siebert Financial Corp. & Subsidiaries |
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| Consolidated Statements of Financial Condition (Unaudited) - USD ($) | Mar. 31, 2017 | Dec. 31, 2016 | ||||||||
| ASSETS | ||||||||||
| Cash and cash equivalents | $ | 2,047,000 | $ | 2,730,000 | ||||||
| Receivable from brokers | 733,000 | 606,000 | ||||||||
| Securities owned, at fair value | 0 | 92,000 | ||||||||
| Furniture, equipment and leasehold improvements, net | 215,000 | 46,000 | ||||||||
| Prepaid expenses and other assets | 403,000 | 342,000 | ||||||||
|
|
3,398,000 | 3,816,000 | ||||||||
| Liabilities: | ||||||||||
| Accounts payable and accrued liabilities | 284,000 | 738,000 | ||||||||
| Accrued settlement liability | 0 | 825,000 | ||||||||
|
|
284,000 | 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 outstanding as of March 31, 2017 and 22,085,126 shares issued and outstanding as of December 31, 2016 | 221,000 | 221,000 | ||||||||
| Additional paid-in capital | 7,692,000 | 6,889,000 | ||||||||
| (Accumulated deficit) | (4,799,000 | ) | (4,857,000 | ) | ||||||
|
|
3,114,000 | 2,253,000 | ||||||||
|
|
$ | 3,398,000 | $ | 3,816,000 | ||||||
See notes to condensed consolidated financial statements.
| Consolidated Statements of Operations (Unaudited) - USD ($) | 3 Months Ended | ||||||||
| Mar. 31, 2017 | Mar. 31, 2016 | ||||||||
| Revenues: | |||||||||
| Commissions and fees | $ | 1,183,000 | $ | 1,210,000 | |||||
| Margin interest, marketing and distribution fees | 1,080,000 | 868,000 | |||||||
| Investment banking | 5,000 | 12,000 | |||||||
| Trading profits | 109,000 | 265,000 | |||||||
| Interest and dividends | 2,000 | 143,000 | |||||||
|
|
2,379,000 | 2,498,000 | |||||||
| Expenses: | |||||||||
| Employee compensation and benefits | 1,039,000 | 1,287,000 | |||||||
| Clearing fees, including floor brokerage | 263,000 | 238,000 | |||||||
| Professional fees | 425,000 | 670,000 | |||||||
| Advertising and promotion | 20,000 | 66,000 | |||||||
| Communications | 80,000 | 130,000 | |||||||
| Occupancy | 142,000 | 182,000 | |||||||
| Other general and administrative | 352,000 | 426,000 | |||||||
|
|
2,321,000 | 2,999,000 | |||||||
|
Net income (loss) |
$ | 58,000 | $ | (501,000 | ) | ||||
|
Net income loss per share of common stock |
|
|
|
|
|
||||
|
Continuing operations |
$ |
.00 |
$ |
(.02 |
) |
||||
|
Basic and diluted |
$ |
.00 |
$ |
(.02 |
) |
||||
|
Weighted average shares outstanding |
|
|
|
|
|
||||
|
Basic |
22,085,126 | 22,085,126 | |||||||
|
Diluted |
22,085,126 | 22,085,126 | |||||||
See notes to condensed consolidated financial statements.
| Consolidated Statements of Cash Flows (Unaudited) - USD ($) | 3 Months Ended | |||||||||
| Mar. 31, 2017 | Mar. 31, 2016 | |||||||||
| Cash flows from operating activities: | ||||||||||
|
Net income (loss) |
$ | 58,000 | $ | (501,000 | ) | |||||
|
Adjustments to reconcile net income (loss) to net cash used in operating activities: |
||||||||||
| Depreciation and amortization | 46,000 | 68,000 | ||||||||
| Interest accrued on note receivable from business sold to former affiliate | 0 | (140,000 | ) | |||||||
| Changes in: | ||||||||||
| Securities owned, at fair value | 92,000 | (84,000 | ) | |||||||
| Advance to former affiliate | 0 | (82,000 | ) | |||||||
| Receivable from brokers | (127,000 | ) | 101,000 | |||||||
| Prepaid expenses and other assets | (61,000 | ) | (12,000 | ) | ||||||
| Accounts payable and accrued liabilities | (476,000 | ) | (606,000 | ) | ||||||
| Net cash used in operating activities | (468,000 | ) | (1,256,000 | ) | ||||||
| Cash flows from investing activities: | ||||||||||
| Purchase of furniture, equipment and leasehold improvements | (215,000 | ) | (18,000 | ) | ||||||
| Collection of receivable from former affiliate | 0 | 493,000 | ||||||||
| Net cash (used in) provided by investing activities | (215,000 | ) | 475,000 | |||||||
| Net decrease in cash and cash equivalents | (683,000 | ) | (781,000 | ) | ||||||
| Cash and cash equivalents - beginning of period | 2,730,000 | 9,420,000 | ||||||||
| Cash and cash equivalents - end of period |
$ |
2,047,000 | $ | 8,639,000 | ||||||
|
Supplemental Schedule Of Non-Cash Financing Activities: |
||||||||||
|
Payment by parent of expenses |
$ |
803,000 |
— |
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See notes to condensed consolidated financial statements.
