Siebert Financial Corp. (NASDAQ: SIEB) ("Siebert"), a diversified provider of financial services, today reported financial results for the second quarter ended June 30, 2023.
This press release features multimedia. View the full release here: https://www.businesswire.com/news/home/20230807022960/en/
Second Quarter 2023 Financial Highlights
- Revenue of $17.6 million compared to $11.7 million in the second quarter of 2022
- Net income available to common stockholders of $2.7 million compared to $0.7 million in the second quarter of 2022
- Earnings per share of $0.07 compared to $0.02 in the second quarter of 2022
- Total retail customer net worth of $15.2 billion, an improvement compared to $13.5 billion at the end of 2022
Recent Business Highlights
- Closed the previously announced $17.4 million investment by Kakao Pay Corp. ("Kakao Pay") in Siebert on May 18, 2023
- Announced the appointment of John J. Gebbia as CEO and Chairman of Siebert as well as Simon Shin to Siebert's Board of Directors. Kakao Pay intends to acquire an additional 31.1% of Siebert of newly issued shares for approximately $60.5 million, subject to shareholder and regulatory approval.
- Signed a five-year lease in the World Financial Center in New York City, expanding presence in New York and providing savings on occupancy costs
Management Commentary
"I am excited to be leading Siebert during this pivotal time and am proud to report incredible results for the first quarter leading as CEO," said John J. Gebbia, CEO of Siebert. Our second quarter results demonstrate the diversity of our business model and how we're able to successfully navigate market conditions to execute on our growth strategy."
John J. Gebbia continued, "We are laser-focused on delivering on our strategic objectives, creating value for our stakeholders, and ultimately empowering our clients' success through our diversified offerings. We enter the second half of the year with significant momentum and continue to work closely with Kakao Pay on a variety of initiatives including launching correspondent clearing and various technology opportunities to expand our reach, enhance our offerings, and strengthen our value proposition. There is a tremendous opportunity ahead for Siebert to capture opportunities in the current market environment while supporting client needs in the future. I look forward to leading Siebert into its next chapter of growth and impact as we build on Muriel Siebert's legacy while creating long-term shareholder value."
Andrew Reich, CFO of Siebert, commented: "We delivered solid results this quarter as our business benefited from improved market conditions along with the rise in interest rates. Our stock loan department continues to grow and achieved one of its best quarters ever and we continue to see growth in the current interest rate environment. The additional capital from the Kakao Pay investment was immediately deployed and we are already seeing a positive contribution to our financial results. Our flexible balance sheet keeps us well-positioned to navigate the remainder of the year as we focus on profitable growth and the expansion of our capabilities."*
*Refer to Siebert's 2023 Q2 10-Q, Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations.
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 is a diversified financial services company that has been in business and a member of the NYSE since 1967 when Muriel Siebert became the first woman to own a seat on the NYSE and the first to head one of its member firms.
Siebert operates through its subsidiaries Muriel Siebert & Co., Inc., Siebert AdvisorNXT, Inc., Park Wilshire Companies, Inc., Rise Financial Services, LLC, Siebert Technologies, LLC and StockCross Digital Solutions, Ltd. Through these entities, Siebert provides a full range of brokerage and financial advisory services including securities brokerage, investment advisory and insurance offerings, securities lending, and corporate stock plan administration solutions. For over 55 years, Siebert has been a company that values its clients, shareholders, and employees. 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.
View source version on businesswire.com: https://www.businesswire.com/news/home/20230807022960/en/