NEW YORK--(BUSINESS WIRE)--Siebert Financial Corp. (NASDAQ:SIEB) (“Siebert”), a provider of financial services, today announced results for the second quarter of 2019, reporting net income of $1.0 million, basic and diluted earnings per share (EPS) of $0.04, and revenue of $7.1 million.
“This was a tremendous quarter with many milestones to celebrate. From the financial perspective, in comparison to the first quarter of 2019, revenue was up 10% and operating profit was up 5%. In addition, we are proud to be included in the Russell 2000 ® Index as part of the 2019 Russell U.S. Indexes reconstitution,” said Gloria E. Gebbia, controlling shareholder and board member of Siebert.
Mrs. Gebbia continued, “A major development to enhance our growth was signing a binding letter of intent to acquire the remaining 85% of StockCross. The acquisition of StockCross will add market-making, equity stock plan services, IRA custodianship, securities lending, and clearing capability to Siebert. At the close of the transaction, Siebert will gain $1 billion in customer assets, three retail branches, as well as additional service personnel and depth of management.
“We believe that this transaction will enhance our recent revenue growth and provide significant opportunities for cost synergies. The acquisition of StockCross will create a better capitalized and more efficient company that is optimally positioned to meet the rapidly changing marketplace and our customers’ needs,“ added Mrs. Gebbia.
Selected Financial Highlights
The following table summarizes the results for the below periods (unaudited):
2019 |
|||||||||
Three Months Ended June 30 |
Three Months Ended March 31 |
Increase / (Decrease) |
|||||||
Revenue |
$ |
7,061,000 |
$ |
6,429,000 |
$ |
632,000 |
|||
Operating profit |
$ |
1,441,000 |
$ |
1,375,000 |
$ |
66,000 |
|||
Basic and diluted EPS |
$ |
0.04 |
$ |
0.04 |
$ |
— |
|||
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., 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., a registered investment advisor, and its insurance business through its wholly-owned subsidiary, Park Wilshire Companies Inc., a licensed insurance agency. Siebert’s fourth wholly-owned subsidiary, KCA Technologies, LLC, is a developer of robo-advisory technology. Siebert is headquartered in New York City with 12 offices throughout the continental U.S. Siebert is under common control with StockCross Financial Services, Inc. More information is available at www.siebertnet.com.
About StockCross Financial Services, Inc.
StockCross Financial Services, Inc. (“StockCross”) is one of the largest privately-owned brokerage firms in the nation. Established in 1971, it has spent many years providing financial guidance and excellent customer service to its clients. Branch offices are located throughout the nation and are staffed with knowledgeable and experienced representatives. Online investment services and phone support offer clients around the world instant and current information on their accounts. StockCross consistently delivers on its full scope of offerings including market making, fixed-income products, online or broker-assisted equity trading, securities lending, and equity stock plan services across the globe through advanced online trading capabilities. StockCross is a clearing broker-dealer and IRA custodian providing clearing and custody services for its clients and Muriel Siebert & Co., Inc. StockCross is headquartered in Beverly Hills. Member FINRA | SIPC | EST. 1971.
About FTSE Russell
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For more information, visit www.ftserussell.com.
Cautionary Note Regarding Forward-Looking Statements
The statements contained in this press release that are not historical facts, including statements about our beliefs and expectations, are “forward-looking statements” within the meaning of the U.S. Private Securities Litigation Reform Act of 1995. Forward-looking statements include statements preceded by, followed by or that include the words “may,” “could,” “would,” “should,” “believe,” “expect,” “anticipate,” “plan,” “estimate,” “target,” “project,” “intend” and similar words or expressions. In addition, any statements that refer to expectations, projections, or other characterizations of future events or circumstances are forward-looking statements.
These forward-looking statements, which reflect our management’s beliefs, objectives, and expectations as of the date hereof, are based on the best judgement of our management. All forward-looking statements speak only as of the date on which they are made. Such forward-looking statements are subject to certain risks, uncertainties and assumptions relating to factors that could cause actual results to differ materially from those anticipated in such statements, including, without limitation, the following: economic, social and political conditions and other securities industry risks; interest rate risks; liquidity risks; credit risk with clients and counterparties; risk of liability for errors in clearing functions; systemic risk; systems failures, delays and capacity constraints; network security risks; competition; reliance on external service providers; new laws and regulations affecting our business; net capital requirements; extensive regulation, regulatory uncertainties and legal matters; failure to maintain relationships with employees, customers, business partners or governmental entities; the inability to achieve synergies or to implement integration plans and other consequences associated with risks and uncertainties detailed in our filings with the SEC, including our most recent filings on Forms 10-K and 10-Q.
The forward-looking statements contained herein speak only as of the date on which the statements were made. We caution that the foregoing list of factors is not exclusive, and new factors may emerge, or changes to the foregoing factors may occur, that could impact our business. We undertake no obligation to publicly update or revise these statements, whether as a result of new information, future events or otherwise, except to the extent required by the federal securities laws.
