SEI in het kort
SEI Reports First-Quarter 2011 Financial Results
OAKS, Pa., April 27, 2011 - SEI Investments Company (NASDAQ:SEIC) today announced financial results for first-quarter 2011. Diluted earnings per share were $.31 in first-quarter 2011 and first-quarter 2010. These results include gains from Structured Investment Vehicles (SIV) securities of $6.9 million or approximately $.02 diluted earnings per share in first quarter 2011 compared to $17.3 million or approximately $.05 diluted earnings per share in first-quarter 2010.
|Consolidated Overview (In thousands, except earnings per share)|
|For the Three Months Ended March 31,|
|Net Income attributable to SEI||57,728||59,420||(3%)|
|Diluted Earnings Per Share||$0.31||$0.31||-|
“Compared to a year ago, our first-quarter results reflect improved capital markets and growing acceptance for all of our services,” said Alfred P. West, Jr., SEI Chairman and CEO. “First-quarter profits reflect increased spending on both development and operational support for the Global Wealth Platform as we increased development for U.S. entry and enhanced our U.K. services. We are confident we are well-positioned for long-term growth in both of these markets.”
|Summary of First-Quarter Results by Business Segment (In thousands)|
|For the Three Month Period Ended March 31,|
|Investments in New Businesses:|
|Corporate overhead expenses||10,648||9,717||10%|
|Noncontrolling interest reflected in segments||(272)||(309)||N/A|
|Income from operations||$54,597||$53,345||2%|
First-Quarter Business Commentary:
- Sales events, net of client losses, during first-quarter 2011 totaled $13.8 million and are expected to generate net annualized recurring revenues of approximately $12.5 million.
- Asset management, administration, and distribution fee revenues increased primarily due to higher asset balances under management and administration from existing clients because of improved capital markets.
- Assets under management increased $6.9 billion to $179.2 billion at March 31, 2011, as compared to $172.3 billion at December 31, 2010.
- Total consolidated expenses in first-quarter 2011 reflect increased spending on the Global Wealth Platform (GWP). During the first-quarter 2011, we incurred additional costs related to production and maintenance to run the platform as well as additional costs associated with the ongoing development of GWP. We estimate these additional costs to be approximately $3.0 million above fourth-quarter 2010 levels.
- Net income attributable to SEI and diluted earnings per share results include gains from SIV securities of $6.9 million or approximately $.02 diluted earnings per share in first-quarter 2011 compared to $17.3 million or approximately $.05 diluted earnings per share in first-quarter 2010. Excluding the gains from SIV securities, diluted earnings per share were $.29 in first-quarter 2011 compared to $.26 in first-quarter 2010.
- In the first-quarter 2011, SEI purchased 1,725,000 shares of its common stock for $39.5 million.
Earnings Conference Call
A conference call to review earnings is scheduled for 2:00 PM ET on April 27, 2011. Investors may listen to the call at www.seic.com/investors or listen at www.earnings.com, a service of Thomson Streetevents. The call may also be accessed at numerous financial services web sites including AOL and Yahoo. Investors may also listen to replays at these web sites, or by telephone at (USA) 1-800-475-6701; (International) 320-365-3844, access code 199003.
SEI (NASDAQ:SEIC) is a leading global provider of investment processing, fund processing, and investment management business outsourcing solutions that help corporations, financial institutions, financial advisors, and ultra-high-net-worth families create and manage wealth. As of March 31, 2011, through its subsidiaries and partnerships in which the company has a significant interest, SEI manages or administers $429 billion in mutual fund and pooled assets or separately managed assets, including $179 billion in assets under management and $250 billion in client assets under administration. For more information, visit www.seic.com.
Many of the statements in this release may be considered “forward looking statements” and include discussions about future operations, strategies and financial results. Forward-looking statements are based upon estimates and assumptions that involve risks and uncertainties, many of which are beyond our control or are subject to change. Although we believe our assumptions are reasonable, they could be inaccurate. Our actual future revenues and income could differ materially from our expected results. We have no obligation to publicly update or revise any forward-looking statements.
|SEI INVESTMENTS COMPANY CONSOLIDATED STATEMENTS OF OPERATIONS
(In thousands, except per share data)
|Three Months Ended March 31,|
|Asset management, admin. and distribution fees||$167,504||$152,938|
|Information processing and software servicing fees||55,824||58,626|
|Transaction–based and trade execution fees||9,165||9,971|
|Subadvisory, distribution and other asset mgmt costs||26,296||25,583|
|Software royalties and other information processing costs||7,017||6,074|
|Compensation, benefits and other personnel||71,025||67,216|
|Stock based compensation||3,732||6,657|
|Consulting, outsourcing and professional fees||25,998||20,707|
|Data processing and computer related||11,303||9,928|
|Facilities, supplies and other costs||14,102||13,494|
|Income from operations||54,597||53,345|
|Net gain on investments||7,278||17,479|
|Interest and dividend income||1,544||1,700|
|Equity in earnings of unconsolidated affiliate||28,949||24,074|
|Income before taxes||92,164||96,127|
|Less: Net income attributable to noncontrolling interest||(312)||(438)|
|Net income attributable to SEI||$57,728||$59,420|
|Diluted earnings per common share||$0.31||$0.31|
|Shares used to calculate diluted earnings per common share||188,495||191,062|
|Basic earnings per common share||$0.31||$0.31|
|Shares used to calculate basic earnings per common share||185,787||189,948|
|SEI INVESTMENTS COMPANY CONDENSED BALANCE SHEETS (In thousands)|
|March 31, 2011||December 31, 2010|
|Cash and short-term investments||$498,039||$496,292|
|Other current assets||18,513||17,655|
|Total current assets||702,747||683,719|
|Property and equipment, net||142,333||140,568|
|Capitalized software, net||299,006||294,332|
|Investment in unconsolidated affiliate||69,237||64,409|
|Other assets, net||16,328||14,831|
|Deferred income taxes||94,074||92,253|
|Total SEI Investments Company shareholders’ equity||1,077,069||1,041,570|
|Total liabilities and equity||$1,378,035||$1,377,223|
|SEI INVESTMENTS COMPANY ASSET BALANCES (In millions) (Unaudited)|
|Mar. 31, 2010||Jun. 30, 2010||Sep. 30, 2010||Dec. 31, 2010||Mar. 31, 2011|
|Equity/Fixed Income prgms.||$12,635||$11,769||$12,842||$13,512||$14,809|
|Collective Trust Fund prgm.||1,023||640||615||626||576|
|Total assets under mgmt.||$18,987||$17,584||$18,491||$19,258||$20,602|
|Client assets under admin.||11,429||10,335||10,557||10,672||11,227|
|Equity/Fixed Income prgms.||$26,222||$23,699||$26,091||$27,680||$28,296|
|Collective Trust Fund prgm.||2,284||2,066||2,028||1,820||1,618|
|Total assets under mgmt.||$30,237||$28,400||$30,372||$31,141||$31,465|
|Equity/Fixed Income prgms.||$45,891||$43,506||$47,667||$48,699||$51,287|
|Collective Trust Fund prgm.||657||643||641||623||608|
|Total assets under mgmt.||$49,746||$46,707||$51,783||$52,704||$55,097|
|Equity/Fixed Income prgms.||$2||$1||$1||$1||$37|
|Collective Trust Fund prgm.||7,639||7,366||7,781||8,177||8,841|
|Total assets under mgmt.||$8,088||$7,795||$8,205||$8,491||$9,017|
|Client assets under admin. (A)||220,807||220,459||227,777||233,079||238,335|
|Investments in New Businesses:|
|Equity/Fixed Income prgms.||$534||$496||$533||$569||$598|
|Total assets under mgmt.||$606||$570||$615||$634||$654|
|LSV Asset Management:|
|Equity/Fixed Income prgms.||$54,189||$47,822||$54,492||$60,058||$62,370|
|Equity/Fixed Income prgms (B)||$139,473||$127,293||$141,626||$150,519||$157,397|
|Collective Trust Fund prgm.||11,603||10,715||11,065||11,246||11,643|
|Total assets under mgmt.||$161,853||$148,878||$163,958||$172,286||$179,205|
|Client assets under admin. (C)||232,236||230,794||238,334||243,751||249,562|
(B) Equity/Fixed Income programs include $2.3 billion of assets invested in various asset allocation funds at March 31, 2011.
(C) In addition to the numbers presented, SEI also administers an additional $5.1 billion in Funds of Funds assets (as of March 31, 2011) on which SEI does not earn an administration fee.