Siebert Financial Corp. Announces Third Quarter 2018 Results
NEW YORK--(BUSINESS WIRE)--Nov 14, 2018--Siebert Financial Corp. (NASDAQ: SIEB ), a provider of financial and advisory services, filed its 10Q and reported results for its third quarter ended September 30, 2018.
“We are pleased with Siebert’s financial performance this quarter and we continue to see substantial year over year revenue and earnings growth due to the acquisition of the retail assets from StockCross, the increase in interest rates, and our efforts to drive operational efficiency,” said Gloria E. Gebbia, controlling shareholder and board member of Siebert Financial Corp. “We joined the Russell 3000® Index last quarter and through our outstanding results, we continue to prove that we have earned our place in the index.”
“We are very excited about the recent acquisition of robo technology company KCA Technologies, LLC,” said Mark Malek, Chief Investment Officer of Siebert AdvisorNXT. “This acquisition enhances our AdvisorNXT product as we further develop our platform and expand key functionalities. This product will increase the breadth of our total offering aimed at customers within new demographics and complements our goal of new client acquisition.”
Third Quarter 2018 Financial Highlights
Third Quarter 2018 Financial Results
Total revenue for the three months ended September 30, 2018 increased to $7,884,000 from $3,089,000 for the corresponding period in 2017, primarily driven by an increase in revenue related to our acquisition of the retail assets from StockCross and an increase in interest bearing earnings.
Net income for the three months ended September 30, 2018 increased to $3,119,000 or $0.11 per share from $1,001,000 or $0.05 per share for the corresponding period in 2017.
As of September 30, 2018, we had $7,341,000 in highly liquid cash and cash equivalents. Total stockholders’ equity was $11,824,000 as of September 30, 2018 as compared to $5,212,000 as of December 31, 2017.
For additional information please refer to our Quarterly Report on Form 10-Q for the period ended September 30, 2018 filed with the SEC on November 14, 2018. You may also access the Form 10-Q through our website at www.siebertnet.com.
Acquisition of KCA Technologies, LLC (KCAT)
On August 21, 2018, Siebert acquired all the issued and outstanding membership interests of KCA Technologies, LLC (KCAT) from Kennedy Cabot Acquisition, LLC (KCA), a certain related party of Siebert, for approximately $690,000. KCAT is a robo technology company initially tasked with developing a sophisticated Robo Platform product for Siebert AdvisorNXT. The Robo Platform provides clients with an automated wealth management solution intended to maximize portfolio returns based on the client’s specific risk tolerance. The Robo Platform utilizes Modern Portfolio Theory to create optimal portfolios for each client by selecting low-cost, well-managed exchange traded funds (ETFs) and exchange traded notes (ETNs), and automatically rebalances portfolios in light of prevailing market conditions. Within the Robo Platform, the client has the option of using a pure robo track, or can opt for a hybrid approach, which combines the robo track with a traditional wealth manager to help manage their portfolio and make investment recommendations.
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 NYSE in 1967 when Ms. Siebert became the first woman to own a seat on the Exchange 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, its insurance business through its wholly-owned subsidiary, Park Wilshire Companies Inc., a licensed insurance agency, and KCA Technologies, LLC, its wholly-owned subsidiary and owner of certain intellectual property and related computer software for optimizing investment portfolios. Siebert Financial Corp. is based in New York City with 12 retail branches throughout the continental United States. More information is available at www.siebertnet.com.
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.
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 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 change in interest rates; fluctuations in volume and price 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 amounts due; and 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.
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Siebert Financial Corp.
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SOURCE: Siebert Financial Corp.
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