Gloria E. Gebbia, controlling shareholder and board member of Siebert, commented on the results for 2019 saying, “There were many highlight moments in 2019 for our company. We started out the year by acquiring 15% of StockCross Financial Services, Inc. (“StockCross”), a clearing broker dealer, and in July we were included in the Russell 2000® Index as part of the 2019 Russell U.S. Indexes reconstitution, further solidifying our visibility in the capital markets.
“In December 2019, we completed the acquisition of Weeden Prime Services, LLC (“Weeden Prime”), a leading prime brokerage service provider, which provides a new customer base of institutional clients as well as opportunities related to new clearing relationships. We also see substantial cross-selling opportunities for our institutional and retail clients.
“We saw a significant opportunity in StockCross and decided to buy the company and merge it with and into our broker-dealer subsidiary, MSCO, effective January 1, 2020. StockCross provides an array of new business lines to Siebert such as clearing operations, market-making, equity stock plan services, IRA custodianship, and securities lending. StockCross’ equity stock plan service business exposes us to public companies on a global level, enabling us to further our account growth and build relationships with established technology partners.
“In addition, the service personnel and depth of management of the combined companies will enable Siebert to enhance the client experience. We plan on building upon our current positive results with these acquisitions and look forward to what the future holds for our company.”
Andrew H. Reich, CFO of Siebert, commented on Siebert’s performance during 2019 saying, “Our assets under management increased 33% from the prior year due to organic growth of retail customer assets as well as the acquisition of institutional customer assets through Weeden Prime.
“For the first month we owned Weeden Prime, it achieved almost $1 million in revenue and approximately $203,000 in net income. In addition, we are starting to see the benefits of implementing numerous cost saving measures as well as having diverse customer revenue streams during volatile periods of the market.
“While the bulk of our revenue currently comes from our retail brokerage business, Weeden Prime and StockCross have historically generated respectively, $11-13 million and $12-14 million in annual revenue. If Weeden Prime and StockCross continue to generate revenue at historical rates, they will increase as well as diversify our revenue streams into new business lines and customer bases.
“These new acquisitions have already made a positive impact on our financial results and strategically position us for continued growth in the future. While our future results are subject to the unknown economic impact of the coronavirus (COVID-19) pandemic, we remain focused on driving results for our shareholders and moving this company to the next level.”
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 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, Weeden Prime Services, LLC, a broker-dealer registered with the SEC. Siebert is headquartered in New York City with 18 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 FTSE Russell
FTSE Russell is a global index leader that provides innovative benchmarking, analytics and data solutions for investors worldwide. FTSE Russell calculates thousands of indexes that measure and benchmark markets and asset classes in more than 70 countries, covering 98% of the investable market globally.
FTSE Russell index expertise and products are used extensively by institutional and retail investors globally. For over 30 years, leading asset owners, asset managers, ETF providers and investment banks have chosen FTSE Russell indexes to benchmark their investment performance and create ETFs, structured products and index-based derivatives.
FTSE Russell is wholly owned by London Stock Exchange Group. For more information, visit www.ftserussell.com.
About StockCross Financial Services, Inc.
StockCross Financial Services, Inc. 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 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 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.