Well, here are the sieb earnings results. We haven't seen much action on the stock, and what momentum there was seems to have died. Any thoughts on where we go from here with SIEB?
NEW YORK, May 13 /PRNewswire/ -- Siebert Financial Corp. (NASDAQ:SIEB.O)
today announced financial results for the first quarter of the year ended
March 31, 1999.
Muriel F. Siebert, President and Chairwoman, noted that, "Executed retail
trades for the first quarter of 1999 were up 107% over the 1998 quarter.
Although the number of executions was up dramatically, revenue did not
increase at the same pace as the increased level of trading because electronic
executions increased to 37% of all executions from 16.5% in the prior year and
electronic trades produce lower revenue per trade than traditional telephone
commission revenue. We're pleased with the strong performance shown by our
Company. We hope to see growth in SiebertNet(TM) that keeps pace with this
expanding segment of the market. Though the accelerating volume on our
SiebertNet web-site has reduced average commissions per customer trade
overall, the total number of trades dramatically increased. Electronic trades
approached 50% of retail trades in the month of April."
The Company reported revenues of approximately $7.1 million for the first
quarter of 1999, compared to $6.6 million for the first quarter of 1998.
However, revenues for the first quarter of 1999 exclude $1.9 million of net
revenues for Siebert, Brandford, Shank & Co., LLC, which began operations as a
separate entity on July 1, 1998 and has been treated as an equity investment
since that date. Revenues for 1998 included $1.3 million from Siebert,
Brandford, Shank & Co., LLC. Revenues, other than from Siebert, Brandford,
Shank & Co., LLC increased 33% for the first quarter from the same quarter of
1998. Net income for the quarter totaled approximately $1.0 million, or
$.05 cents per share, up 28% over the $805,000, or $.04 cents per share,
reported for the same quarter a year ago.
As previously reported, the Company's rights offering, which was concluded
in January, 1999, was to provide working capital to build up and promote
SiebertNet, the Company's internet trading site. To the extent that the net
proceeds from the rights offering are used to develop the Company's internet
retail brokerage business, many expenditures will be expensed as made, while
revenues, if any, generated from the expenditures are likely to be realized in
subsequent accounting periods. This may have a material adverse effect on the
Company's results of operations in future quarters.
The Company also recently announced revised terms of its merger with
Andrew Peck & Associates, Inc., which is expected to close sometime during the
next several weeks.
Siebert Financial Corp. is a holding company, which conducts all its
operations through its wholly owned subsidiary, Muriel Siebert & Co., Inc.
("Siebert"). A member of the New York Stock Exchange, Siebert was one of the
first stock brokerage firms in the U.S. to adopt a discounted commission
schedule on May 1, 1975 when discounting was first permitted.
Siebert conducts its municipal investment banking activities through
Siebert, Brandford, Shank & Co., LLC, a separate affiliate specializing in
municipal and financial advisory services.
Siebert is based in New York City with additional retail branches in Boca
Raton, Palm Beach, Surfside and Naples, FL; Beverly Hills, CA and Morristown,
NJ. In addition, Siebert, Brandford, Shank & Co. has offices in New York
City, San Francisco, Los Angeles, Seattle, Houston, Chicago, Detroit and
Dallas. |
