Siebert Financial Corp. Reports Third Quarter and Nine Months 2017 Financial Results

Recent Developments

  • Achieved Profitability for Three Straight Quarters since December 2016 Acquisition, with Third Quarter Profits Exceeding $1 million
  • Total Retail Customer Net Worth $7.5 Billion at September 30, 2017
  • Received Regulatory Approval for Approximately $3.8 Billion in Assets to be Transferred from Stockcross Financial Services to Siebert During 4Q to Bring Total AUM to More Than $11 Billion, Which Will Represent Over 50% Increase in AUM and a Projected Revenue Increase of More Than 100%
  • Continued Progress in Advancing Strategic Initiatives and Business Development Projects
  • Implemented Improvements to Streamline Operational Efficiencies and Reduce Costs
  • Further Strengthening of Relationships with Existing Clients and Enhancing Customer Experience with New Products and Technologies

Third Quarter Financial Highlights

  • Q3 Total Revenues $3.1 million, a 38.9% Increase from Q3 2016
  • Q3 Total Expenses $2.1 million, a decrease of 37.9% from Q3 2016
  • Q3 Net Income $1,001,000, as compared to a net loss of $1,140,000 for Q3 2016

First Nine Months Financial Highlights

  • Total Revenues for the nine months ended September 30, 2017 were $8.2 million, an increase of 13.6% from the same period in 2016
  • Total expenses for the nine months ended September 30, 2017 were $6.7 million, a decrease of 29.5% from the same period in 2016
  • Net income of $1,425,000 for the nine months ended September 30, 2017 as compared to a net loss of $2,369,000 from the same period in 2016
  • Stockholder’s Equity $4.5 million at September 30, 2017

NEW YORK--()--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.

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.

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.

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  
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
22,085,126 shares outstanding at September 30, 2017 and December 31, 2016, respectively

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

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  
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     $


  $ 0.06     $


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  


Siebert Financial Corp.
Office of the Administrator
Yesenia Berdugo, 212-644-2435
LHK Communications LLC
Laura Hynes-Keller
1500 Broadway, Ste. 505, New York, NY 10036

Release Summary

Siebert Financial Corp. Reports Third Quarter and Nine Months 2017 Financial Results



Siebert Financial Corp.
Office of the Administrator
Yesenia Berdugo, 212-644-2435
LHK Communications LLC
Laura Hynes-Keller
1500 Broadway, Ste. 505, New York, NY 10036