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.”

Part of the StockCross acquisition included a new division and additional business line focused on equity compensation for public companies. Now launched, Siebert Corporate Services will now provide equity compensation management and technology solutions to public companies and their employees. In regard to the recent Siebert acquisition, Eric Tassell, SVP of Corporate Services, said, “We are extremely excited to grow our corporate services division within Siebert. Currently we manage over 100 public companies across over 125 countries and adding Corporate Services truly improves Siebert’s global presence. We are looking forward to build Siebert Corporate Services into a premiere partner in the equity compensation landscape.”

New Fin-Tech Partnership

Siebert’s continued growth was a catalyst to further expand its technology and online client experience. The company recently agreed to a partnership with InvestCloud, a leading innovative tech provider of flexible and fully integrated digital apps for financial services, to provide a variety of enhancements and upgrades to Siebert's online and mobile client experience, including a state of the art Robo Advisor product. John Wise, InvestCloud’s Co-founder, CEO and Chairman, said, “With a long and well-respected history, Siebert is a great example of a firm on the leading edge of digital transformation. Embarking on a digital transformation journey will benefit Siebert greatly – improving operational efficiency from front to back, while also providing exceptional client-centric experiences.” The full press release regarding this partnership can be found here.

*Results reported on the 2020 Q1 10Q 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. The company 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 also owns StockCross Digital Solutions, Ltd., an inactive subsidiary headquartered in Bermuda. Siebert is headquartered in New York City with 18 offices throughout the continental U.S. More information is available at www.siebert.com.

About InvestCloud Inc.

InvestCloud is a global company specializing in digital platforms that enable the development of financial solutions, pre-integrated into the Cloud. The company offers on-demand client experiences and intuitive operations solutions using an ever-expanding library of modular apps, resulting in powerful products. Headquartered in Los Angeles with additional offices in New York, Toronto and London, InvestCloud supports more than $2 trillion in assets across 700+ diverse clients – from some of the biggest banks in the world, wealth managers, institutional investors and institutional asset managers to family offices, asset services companies and financial platforms. For more information, visit www.investcloud.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.

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