Siebert Announces Second Quarter 2020 Results
Siebert Financial Corp. (NASDAQ:SIEB) ("Siebert"), a provider of financial services, today announced results for the second quarter of 2020, reporting revenue of $12.6 million, net income of $0.5 million, and basic and diluted earnings per share ("EPS") of $0.02.
Gloria E. Gebbia, controlling shareholder and board member of Siebert, commented on the quarter saying, "We are pleased with our results and are excited to see our numerous acquisitions fueling growth for our company. In regard to the COVID-19 crisis, we have started reopening some of our branch offices while ensuring compliance with federal, state, and local laws as well as health and safety guidelines. We are proud of our employees' commitment to continue to provide exceptional service during these challenging times and plan to fully reopen our branch offices once it is safe and in compliance to do so. In addition, we entered into an agreement with East West Bank for a $10 million line of credit to continue to expand our business and add shareholder value."
Andrew H. Reich, CFO of Siebert, commented on Siebert's performance during the quarter saying, "Our recent acquisitions have been the primary driver of our revenue growth of $13.9 million or 103% in 2020 from the comparative 2019 period.* Despite the COVID-19 crisis, during the first half of 2020 we have almost surpassed our 2019 total year revenue and are on track to generate some of the highest revenues in the company's history. In addition, new business lines acquired from StockCross performed very well this quarter as stock loan and market making increased 74% and 31%, respectively, from the prior quarter."
*Results reported on the 2020 Q2 10Q are shown for Siebert and StockCross on a combined basis for historical periods in accordance with accounting guidance for common-control transactions.
Notice to Investors
This communication is provided for informational puroses 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 conducts operations through its wholly-owned subsidiary, Siebert Technologies, LLC., a developer of robo-advisory technology. Siebert also offers prime brokerage services through its fifth wholly-owned subsidiary, WPS Prime Services, LLC, a broker-dealer registered with the SEC (News - Alert). Siebert is headquartered in New York City with offices throughout the continental U.S. More information is available at www.siebert.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, global economic downturns resulting from extraordinary events such as the COVID-19 pandemic 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.
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.
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