Siebert Reports Fourth Quarter and Full Year 2022 Financial Results

Rhea-AI Summary

Siebert Financial Corp. (NASDAQ: SIEB) reported a challenging financial year for 2022. Total revenue decreased to $50.1 million, down from $67.5 million in 2021. The company faced a pretax loss of $4.3 million, contrasting with a pretax income of $6.8 million the previous year. Net loss attributable to common stockholders was $2.0 million, versus a net income of $5.1 million in 2021, leading to a loss per share of $0.06, compared to earnings of $0.16 per share in 2021. Management expressed confidence in future growth despite recent setbacks.

Positive

• Securities Finance division achieved 22% topline growth in 2022.
• Management anticipates reversal of unrealized losses on government securities by the end of 2023.

Negative

• Revenue declined by $17.4 million year-over-year.
• Pretax loss of $4.3 million compared to prior year's income.
• Net loss for the year of $2.0 million vs. $5.1 million profit in 2021.

NEW YORK--(BUSINESS WIRE)-- Siebert Financial Corp. (NASDAQ: SIEB) (“Siebert”), a diversified provider of financial services, today reported financial results for the fourth quarter and full year ended December 31, 2022.

Full Year 2022 Financial Highlights

• Revenue of $50.1 million compared to $67.5 million in 2021
• Pretax loss* of $4.3 million compared to pretax income of $6.8 million in 2021
• Siebert achieved pretax income of $4.3 million in 2022 excluding certain non-operating expenses of $4.7 million and an unrealized loss on its U.S. government securities of $3.9 million
• Net loss available to common stockholders of $2.0 million compared to net income available to common stockholders of $5.1 million in 2021
• Loss per share of $0.06 compared to earnings per share of $0.16 in 2021

Management Commentary

“During a volatile and challenging market environment in 2022, Siebert continued to build the foundation for future growth,” said Gloria E. Gebbia, controlling shareholder and board member of Siebert. “While our performance this year was disappointing primarily due to certain expenses that are not ongoing, we remain confident in our offerings and have numerous initiatives underway to build a more diversified business, capitalize on the evolving needs of our clients and position Siebert for success. We continue to expand our corporate services offering and broker-dealer capabilities while strengthening Siebert’s presence in the Greater Miami area to have further geographical reach for our clients. Looking ahead, we remain well-positioned to empower our clients’ success and will continue to build on Muriel Siebert’s legacy and modernize our offerings to meet client demand.”

Andrew Reich, CFO of Siebert, commented: “While we had an net loss in 2022, a substantial portion of this loss was driven by certain non-operating expenses of $4.7 million as well as a temporary unrealized loss of $3.9 million on our U.S. government securities portfolio, which we anticipate to be reversed over the maturities of the securities (the large majority of which mature by the end of 2023). Siebert achieved pretax income of $4.3 million in 2022 excluding these items.

Our Securities Finance division delivered 22% topline growth in 2022 and remains a key growth driver for Siebert. We also benefited from the rising interest rate environment and remain well positioned to benefit from that trend throughout 2023. Looking ahead, we remain focused on returning to profitability and continue to identify opportunities to drive revenue growth while optimizing our expenses. While the economic outlook remains uncertain, we are well positioned with a strong balance sheet and a diversified business model.”**

*Pretax income / loss represents the line item captioned “Income (loss) before provision for (benefit from) income taxes” in the statements of operations in Siebert’s 2022 10-K.

**Refer to Siebert’s 2022 10-K, Item 7. Management’s Discussion and Analysis of Financial Condition and Results of Operations for further detail.

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, and corporate stock plan administration solutions. For over 50 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 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; 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/20230329005919/en/

Investor Relations:

Alex Kovtun and Matt Glover

Gateway Group, Inc.

949-574-3860

sieb@gatewayir.com

Source: Siebert Financial Corp.

FAQ

What were Siebert Financial Corp.'s 2022 revenue results?

Siebert reported revenue of $50.1 million for 2022, down from $67.5 million in 2021.

How did Siebert's net income change in 2022?

The net loss available to common stockholders for 2022 was $2.0 million, compared to a net income of $5.1 million in 2021.

What was the earnings per share for Siebert in 2022?

Siebert reported a loss per share of $0.06 for 2022, compared to earnings per share of $0.16 in 2021.

What future outlook did Siebert management provide?

Management expressed confidence in future growth initiatives and plans to capitalize on evolving client needs.