Siebert Reports 2020 Year End Results
Siebert Financial Corp. (NASDAQ: SIEB) reported a strong financial performance for 2020, with revenues of $54.9 million and net income of $3.0 million, marking basic and diluted earnings per share at $0.10. Significant growth was driven by WPS Prime Services, which increased revenue by 15%. The acquisition of WPS and recent hires from JPMorgan Chase & Co. are expected to enhance the Securities Finance Group. Additionally, Siebert's investment in OpenHand introduces a zero-commission trading platform, aimed at expanding its offerings for modern investors.
- Total revenue of $54.9 million for 2020, reflecting a growth of $26.3 million from 2019.
- Net income increased to $3.0 million, resulting in earnings per share of $0.10.
- WPS Prime Services revenue rose by 15%, with an operating income of $1.3 million.
- Securities Finance Group achieved highest quarterly revenue of over $1.5 million in Q4 2020, a 500% increase from Q4 2019.
- Strategic investment in OpenHand to provide zero-commission trading and expand technological offerings.
- None.
Siebert Financial Corp. (NASDAQ: SIEB) (“Siebert”), a provider of financial services, today announced results for the full year of 2020, reporting revenue of
Gloria E. Gebbia, controlling shareholder and board member of Siebert, commented on the results of the year saying, “We are excited to see our strategic acquisitions and new revenue streams driving growth for our company. In regard to the COVID-19 crisis, we have reopened our branch offices while ensuring compliance with federal, state, and local laws as well as health and safety guidelines. We have taken numerous steps to ensure that our employees and customers are operating in a safe environment and will continue to respond appropriately.
WPS Prime Services, LLC (“WPS”) had a standout year as revenue increased by
Another exciting development was the hiring of Anthony Palmeri from JPMorgan Chase & Co. and Jerry Losurdo from TD Prime Services, LLC and their team into our Securities Finance Group in November 2020. This very dynamic team will build upon the success of our current Securities Finance Group while leveraging their industry-leading expertise and connections to further drive results and continue the growth of Siebert.”
Andrew Reich, CFO of Siebert, commented on Siebert’s performance during the year saying, “Total revenue growth of
Alongside this revenue growth, we are strategically evaluating our key vendors to identify areas where we can optimize our cost structure while maintaining operational efficiency and the quality of the customer experience. We are beginning to transition into more cost-efficient locations which will benefit us starting this quarter.”
Investment in OpenHand
In January 2021, Siebert purchased an equity interest in OpenHand, a subscription-based brokerage platform that will provide zero-commission trading for equity and option transactions and will credit its members daily with rebates of revenues generated through its members’ trading activity, less operational expenses. Siebert will be the exclusive broker-dealer for all OpenHand account services and will benefit from their cloud-based technology which uses Amazon Web Services. This strategic, operational, and technological partnership will add an additional business line and expand our technology offerings for the next-generation investor.
*Results reported on the 2020 10K 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 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. Siebert 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. 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 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, 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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