NEW YORK--(BUSINESS WIRE)--Siebert Financial Corp. (NASDAQ:SIEB) (“Siebert”), a provider of financial services, today announced results for the third quarter of 2019, reporting net income of $1.1 million, basic and diluted earnings per share ("EPS") of $0.04, and revenue of $7.1 million.
“We are very pleased to achieve our best financial quarter of 2019 on the heels of exciting new developments for our company. A major development this quarter was signing a binding agreement to acquire Weeden Prime Services, LLC (“Weeden Prime”). This acquisition will significantly increase and diversify our revenue, as well as bring a very experienced and dynamic management team led by their president, Andrew Formato, to the Siebert family. Weeden Prime’s business is complementary to our existing revenue streams and offers significant opportunities for our growth. We are waiting for final regulatory approval and anticipate the acquisition closing by the end of 2019,” said Gloria E. Gebbia, controlling shareholder and board member of Siebert.
Andrew H. Reich, CFO of Siebert, elaborated on the results of the quarter, saying, “We achieved our best financial quarter of 2019 in terms of revenue, operating income and net income. Notably, net income increased 11% from the previous quarter, with revenue and operating income increasing marginally. It is also incredible to note that revenue and operating income grew every quarter of 2019. We are also excited about the Weeden Prime acquisition, as it will add significant assets under management and will drive the next level of overall growth for our company.”
Selected Financial Highlights
The following table summarizes the results for the below periods (unaudited):
|
2019 |
||||||||
Three Months Ended
|
Three Months Ended
|
Increase /
|
|||||||
Revenue |
$ |
7,144,000 |
$ |
7,061,000 |
$ |
83,000 |
|||
Operating income |
$ |
1,457,000 |
$ |
1,441,000 |
$ |
16,000 |
|||
Net income |
$ |
1,104,000 |
$ |
992,000 |
$ |
112,000 |
|||
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 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, Siebert Technologies, LLC., is a developer of robo-advisory technology. Siebert is headquartered in New York City with 13 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 Weeden Prime Services, LLC
Weeden Prime is a technology-powered prime brokerage business focused on providing institutional quality services to hedge funds and family offices. With a focus on capital raising and cutting-edge technology, Weeden Prime has successfully created an ideal platform which clients can leverage in seeking to grow their businesses. Weeden Prime offers a comprehensive global platform that includes dynamic proprietary risk management and analytics technology (“Armor”), institutional equity, outsourced trading, automated allocation technology and sophisticated portfolio reporting. More information is available at www.weedenprime.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 judgment 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.
