Siebert Financial Corp. (NASDAQ: SIEB) (“Siebert”)a mission-driven financial services provider, today announced its financial results for the second quarter ended June 30, 2022.
Second Quarter 2022 Financial Highlights
Revenues of $11.7 million compared to $16.8 million in the second quarter of 2021
Operating loss* of $0.5 million compared to operating profit of $1.9 million in the second quarter of 2021
Net income available to common shareholders of $0.7 million compared to net income available to common shareholders of $1.4 million in the second quarter of 2021
Earnings per share of $0.02 compared to $0.05 in the second quarter of 2021
Retail client net worth of $13.8 billion, up from $16.8 billion at the end of 2021
“Throughout the first half of 2022, we have adapted to changing business and economic conditions that have impacted capital markets and our customers,” said Gloria E. Gebbia, majority shareholder and board member. of directors of Siebert. “The diversity of our business led to improved financial results compared to last quarter, as clients turned to us for our expertise and guidance in this volatile environment. We remain focused on our growth strategy and the investments we have made to modernize our offerings and meet customer demand. As we enter the second half of the year, we remain confident in our ability to navigate this environment and are well positioned to capitalize on the evolving needs of our customers as a mission-driven company. We look forward to launching our corresponding clearing services which will further diversify our business. We are taking advantage of this difficult environment to work closely with our customers while remaining focused on our long-term growth opportunities.
Andrew Reich, Siebert’s Chief Financial Officer, said, “We delivered strong results this quarter despite continued pressure from challenging market conditions. The strong performance of our financing and securities advisory businesses helped partially offset the decline in fees and expenses, principal transactions and market making revenues compared to the prior year period. Our Securities Finance division delivered another record quarter with year-over-year revenue growth of 85% in the second quarter and 89% year-to-date compared to the first half of 2021. The improvement of our operating loss this quarter includes an unrealized loss of $0.6 million on our U.S. government securities portfolio, compared to $2.2 million in the first quarter of 2022. Looking ahead, we remain focused on sustained revenue growth and disciplined expense management while adapting to changing market conditions. This quarter, we have started to benefit from rising interest rates and expect this trend to continue in the second half. **
*Operating profit and operating loss represent the line item titled “Income (loss) before provision for (benefit of) income taxes” in Siebert’s 2022 Q2 10-Q statements of earnings.
**Refer to Siebert Q2 10-Q 2022, 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 does not constitute an offer to sell or 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 hold a seat on the NYSE and the first to lead 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 advice and insurance offerings, prime brokerage, capital introduction and corporate stock plan administration solutions. For more than 50 years, Siebert has been a mission-driven company that values its customers, shareholders and employees. More information is available at www.siebert.com.
Caution Regarding Forward-Looking Statements
Statements contained in this press release, which are not historical facts, including statements regarding our beliefs and expectations, are “forward-looking statements” within the meaning of the United States Private Securities Litigation Reform Act of 1995. Statements forward-looking statements include statements preceded by, followed by, or that include the words “may”, “could”, “should”, “should”, “believe”, “expect”, “anticipate”, “plan”, ” estimate”, “target”, “plan”, “intent” 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 the beliefs, objectives and expectations of our management as of the date hereof, are based on our management’s best judgment. All forward-looking statements speak only as of the date they are made. These 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 conditions , social and political, 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 customers and counterparties; risk of liability in the event of errors in the netting functions; Systemic risk; system 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 issues; inability to maintain relationships with employees, customers, business partners or government entities; the inability to realize synergies or implement integration plans and other consequences associated with the risks and uncertainties detailed in our filings with the SEC, including our most recent filings on Forms 10-K and 10-Q.
We caution you that the above list of factors is not exclusive and that new factors may emerge or changes to previous factors may occur which could affect our business. We undertake no obligation to publicly update or revise any such statements, whether as a result of new information, future events or otherwise, except as required by federal securities laws.
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