Siebert Financial Corp. Reports Financial Results for First Quarter of 2020

Siebert Financial Corp. (NASDAQ:SIEB) (“Siebert”), a provider of financial services, today announced results for the first quarter of 2020, reporting revenue of $14.8 million, net income of $1.0 million, and basic and diluted earnings per share ("EPS") of $0.03.

Quarterly Results and COVID-19 Impact

Gloria E. Gebbia, controlling shareholder and board member of Siebert, commented on the quarter saying, “In regard to the COVID-19 crisis, we are very thankful for the healthcare specialists, first responders and all those who are on the front line in every industry helping those who have been affected during this challenging time. I am very proud of our employees and we have been able to continue to meet the needs of our clients through our technology-based platforms and services. To protect our employees, clients and business partners, we have implemented remote work arrangements for nearly 100% of our employees, have restricted business travel and have limited access to our retail branches.

"Throughout this challenging time, our unwavering focus on continuing to meet the needs of our clients is made possible by the significant contributions of our employees, and we remain committed to serving our clients while protecting our employees’ wellbeing."

Andrew H. Reich, CFO of Siebert, commented on Siebert’s performance during the quarter saying, “In the midst of the COVID-19 crisis we remain focused on driving results for the company and achieved very positive results this quarter. Moving forward in these uncertain times takes thoughtful consideration of our strategic options and I am confident in our management team and employees’ ability to execute them well. We look to emerge from this crisis a more streamlined and profitable company."

Increased Revenue and New Business Lines

Mr. Reich continued, “Despite the COVID-19 crisis, in the first quarter of 2020 we achieved one of the highest quarterly revenues in the company’s recent history, with revenue increasing $8.4 million or 130% from Siebert’s first quarter of 2019*, primarily due to the addition of our recent acquisitions. The new business lines acquired from StockCross have added incremental revenue streams such as interest income from clearing operations, market making and stock borrow / stock loan. StockCross’ retail client base has allowed us to continue to expand our retail operations while adding new revenue streams through our existing and recently-added equity stock plan services accounts. We are beginning to see the benefits of implementing numerous cost saving measures and synergies of our recent acquisitions as well as having diverse customer revenue streams during volatile periods of the market.”