EX-99.1 5 seic-33113xex991.htm PRESS RELEASE
Investor Contact: Media Contact:
Murray Louis Dana Grosser
SEI SEI
+1 610-676-1932 +1 610-676-2459
mlouis@seic.com dgrosser@seic.com
Pages: 8
FOR IMMEDIATE RELEASE
SEI REPORTS FIRST-QUARTER 2013 FINANCIAL RESULTS
Results Include Gain from Sale of SEI Asset Korea
OAKS, Pa., April 24, 2013 -- SEI Investments Company (NASDAQ:SEIC) today announced financial results for first-quarter 2013. Diluted earnings per share were $.41 in first-quarter 2013 compared to $.28 in first-quarter 2012. First-quarter 2013 includes a gain of $.08 diluted earnings per share from the sale of SEI Asset Korea, of which SEI owned approximately 56.1 percent.

Consolidated Overview |  | For the Three Months
(In thousands, except earnings per share) |  | Ended March 31,
|  | 2013 |  | 2012 |  | %
Revenues |  | $ | 271,879 |  |  | $ | 237,898 |  |  | 14 | %
Net Income attributable to SEI |  | 71,920 |  |  | 49,965 |  |  | 44 | %
Diluted Earnings Per Share |  |  | $0.41 |  |  |  | $0.28 |  |  | 46 | %

"The first quarter of 2013 continued the progress we made during 2012 across all of our businesses. A combination of new client implementations, improved financial markets, and positive sales activity contributed to our operating results during the quarter,” said Alfred P. West, Jr., SEI Chairman and CEO.
"Our results so far this year have been encouraging. SEI will continue to execute against our long-term strategy, including a focus on new client acquisition and development of the products and services necessary for long-term success. As always, we are committed to enhancing shareholder value."

Summary of First-Quarter Results by Business Segment

(In thousands) |  | For the Three Months
|  | Ended March 31,
|  | 2013 |  | 2012 |  | %
Private Banks: |  |  |  |  |  |
Revenues |  |  | $98,746 |  |  |  | $87,988 |  |  | 12 | %
Expenses |  | 96,298 |  |  | 87,517 |  |  | 10 | %
Operating Profit |  |  | $2,448 |  |  |  | $471 |  |  | 420 | %
Gain on sale of subsidiary |  | 22,112 |  |  | — |  |  | N/M |
Total Profit |  |  | $24,560 |  |  |  | $471 |  |  | N/M |
Operating Margin (A) |  | 2 | % |  | 1 | % |  |
Investment Advisors: |  |  |  |  |  |
Revenues |  | 55,191 |  |  | 49,468 |  |  | 12 | %
Expenses |  | 31,625 |  |  | 29,301 |  |  | 8 | %
Operating Profit |  | 23,566 |  |  | 20,167 |  |  | 17 | %
Operating Margin |  | 43 | % |  | 41 | % |  |
Institutional Investors: |  |  |  |  |  |
Revenues |  | 63,162 |  |  | 53,317 |  |  | 18 | %
Expenses |  | 31,509 |  |  | 28,100 |  |  | 12 | %
Operating Profit |  | 31,653 |  |  | 25,217 |  |  | 26 | %
Operating Margin |  | 50 | % |  | 47 | % |  |
Investment Managers: |  |  |  |  |  |
Revenues |  | 53,820 |  |  | 46,211 |  |  | 16 | %
Expenses |  | 35,162 |  |  | 30,426 |  |  | 16 | %
Operating Profit |  | 18,658 |  |  | 15,785 |  |  | 18 | %
Operating Margin |  | 35 | % |  | 34 | % |  |
Investments in New Businesses: |  |  |  |  |  |
Revenues |  | 960 |  |  | 914 |  |  | 5 | %
Expenses |  | 3,738 |  |  | 3,698 |  |  | 1 | %
Operating Loss |  | (2,778 | ) |  | (2,784 | ) |  | N/M |

(A) Percentage determined exclusive of gain on sale of subsidiary.

First-Quarter Business Commentary:

• | Revenues increased in first-quarter 2013 as compared to both first-quarter 2012 and fourth-quarter 2012. Gains were realized in all core business segments and all major product lines, including Asset management, administration, and distribution fees and Information processing and software servicing fees.

• | Net income attributable to SEI increased in first-quarter 2013 as compared to both first-quarter 2012 and fourth-quarter 2012. This was driven by the increase in first-quarter 2013 revenues when compared to both periods. Additionally, the previously disclosed sale of SEI Asset Korea was completed on March 28, 2013 resulting in a gain of $22.1 million, or $.08 diluted earnings per share.

• | Our average assets under management, excluding LSV, increased $20.9 billion, or 17 percent, to $145.0 billion in the first-quarter 2013, as compared to $124.1 billion during the first-quarter 2012, and increased $6.5 billion, or five percent, as compared to $138.5 billion during the fourth-quarter 2012. Ending asset balances for the first-quarter 2013 do not include assets related to SEI Asset Korea (see attached Ending and Average Asset Balances schedules for further details).

• | Sales events, net of client losses, during first-quarter 2013 totaled approximately $19.6 million and are expected to generate net annualized recurring revenues of approximately $16.8 million when contract values are fully realized.

• | Income from LSV increased in first-quarter 2013 to $27.8 million as compared to $27.3 million in first-quarter 2012 due to an increase in assets under management. Our ownership interest in LSV was approximately 39.8 percent in first-quarter 2013 and 41.2 percent in first-quarter 2012.

• | The effective tax rates were 34.9 percent in first-quarter 2013 and 37.2 percent in first-quarter 2012 and 35.0 percent in fourth-quarter 2012. The first-quarter 2013 tax rate was benefited by the reinstatement of the research and development tax credit partially offset by additional foreign taxes caused by the sale of SEI Asset Korea. The increase in the tax rate in the first-quarter 2012 was due to the expiration of the research and development tax credits. The fourth-quarter 2012 tax rate was benefited by state tax planning.

• | In first-quarter 2013, we repurchased 1.3 million shares of our common stock for $36.2 million.

Earnings Conference Call
A conference call to review earnings is scheduled for 2:00 PM ET on April 24, 2013. 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 291281.
About SEI
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, 2013, through its subsidiaries and partnerships in which the company has a significant interest, SEI manages or administers $495 billion in mutual fund and pooled or separately managed assets, including $206 billion in assets under management and $289 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)
(Unaudited)

|  | For the Three Months Ended March 31,
|  | 2013 |  | 2012
Asset management, admin. and distribution fees |  |  | $198,633 |  |  |  | $172,954 |
Information processing and software servicing fees |  | 64,532 |  |  | 56,200 |
Transaction–based and trade execution fees |  | 8,714 |  |  | 8,744 |
Total revenues |  | 271,879 |  |  | 237,898 |
Subadvisory, distribution and other asset mgmt costs |  | 27,934 |  |  | 28,003 |
Software royalties and other information processing costs |  | 7,487 |  |  | 6,941 |
Brokerage commissions |  | 6,512 |  |  | 6,307 |
Compensation, benefits and other personnel |  | 88,610 |  |  | 78,543 |
Stock-based compensation |  | 5,293 |  |  | 4,033 |
Consulting, outsourcing and professional fees |  | 31,849 |  |  | 26,955 |
Data processing and computer related |  | 12,058 |  |  | 11,465 |
Facilities, supplies and other costs |  | 18,148 |  |  | 14,508 |
Amortization |  | 8,242 |  |  | 7,622 |
Depreciation |  | 5,704 |  |  | 5,432 |
Total expenses |  | 211,837 |  |  | 189,809 |
Income from operations |  | 60,042 |  |  | 48,089 |
Net gain on investments |  | 280 |  |  | 3,205 |
Interest and dividend income |  | 1,053 |  |  | 1,487 |
Interest expense |  | (113 | ) |  | (161 | )
Equity in earnings of unconsolidated affiliates |  | 27,588 |  |  | 27,330 |
Gain on sale of subsidiary |  | 22,112 |  |  | — |
Net income before income taxes |  | 110,962 |  |  | 79,950 |
Income taxes |  | 38,692 |  |  | 29,715 |
Net income |  | 72,270 |  |  | 50,235 |
Less: Net income attributable to the noncontrolling interest |  | (350 | ) |  | (270 | )
Net income attributable to SEI |  |  | $71,920 |  |  |  | $49,965 |
Diluted earnings per common share |  |  | $0.41 |  |  |  | $0.28 |
Shares used to calculate diluted earnings per share |  | 176,005 |  |  | 177,668 |
Basic earnings per common share |  |  | $0.42 |  |  |  | $0.28 |
Shares used to calculate basic earnings per share |  | 172,598 |  |  | 176,348 |

SEI INVESTMENTS COMPANY
CONDENSED BALANCE SHEETS
(In thousands)
(Unaudited)

|  | March 31, |  | December 31,
|  | 2013 |  | 2012
Assets |  |  |  |
Cash and short-term investments |  |  | $452,099 |  |  |  | $452,247 |
Restricted cash |  | 5,500 |  |  | 6,000 |
Receivables, net |  | 247,137 |  |  | 202,818 |
Securities owned |  | 21,107 |  |  | 20,088 |
Other current assets |  | 21,705 |  |  | 20,251 |
Total current assets |  | 747,548 |  |  | 701,404 |
Property and equipment, net |  | 123,153 |  |  | 127,581 |
Marketable securities |  | 78,148 |  |  | 81,778 |
Capitalized software, net |  | 305,352 |  |  | 307,490 |
Investment in unconsolidated affiliates |  | 77,165 |  |  | 77,398 |
Other assets, net |  | 11,244 |  |  | 14,173 |
Total assets |  |  | $1,342,610 |  |  |  | $1,309,824 |
Liabilities |  |  |  |
Current liabilities |  |  | $148,727 |  |  |  | $152,005 |
Deferred income taxes |  | 85,386 |  |  | 93,458 |
Other Long-term liabilities |  | 7,400 |  |  | 7,032 |
Total SEI Investments Company shareholders’ equity |  | 1,101,097 |  |  | 1,038,180 |
Noncontrolling interest |  | — |  |  | 19,149 |
Total Equity |  | 1,101,097 |  |  | 1,057,329 |
Total liabilities and equity |  |  | $1,342,610 |  |  |  | $1,309,824 |

SEI INVESTMENTS COMPANY
ENDING ASSET BALANCES
(In millions)
(Unaudited)

|  | Mar. 31, |  | Jun. 30, |  | Sept. 30, |  | Dec. 31, |  | Mar. 31,
|  | 2012 |  | 2012 |  | 2012 |  | 2012 |  | 2013
Private Banks: |  |  |  |  |  |  |  |  |  |
Equity/Fixed Income prgms. |  |  | $17,180 |  |  |  | $16,848 |  |  |  | $17,960 |  |  |  | $18,862 |  |  |  | $12,446 |
Collective Trust Fund prgms. |  | 435 |  |  | 335 |  |  | 147 |  |  | 11 |  |  | 9 |
Liquidity funds |  | 5,549 |  |  | 5,063 |  |  | 5,342 |  |  | 6,008 |  |  | 5,143 |
Total assets under mgmnt. |  |  | $23,164 |  |  |  | $22,246 |  |  |  | $23,449 |  |  |  | $24,881 |  |  |  | $17,598 |
Client assets under admin. |  | 10,916 |  |  | 10,719 |  |  | 11,611 |  |  | 12,178 |  |  | 12,970 |
Total assets |  |  | $34,080 |  |  |  | $32,965 |  |  |  | $35,060 |  |  |  | $37,059 |  |  |  | $30,568 |
Investment Advisors: |  |  |  |  |  |  |  |  |  |
Equity/Fixed Income prgms. |  |  | $29,722 |  |  |  | $29,153 |  |  |  | $30,864 |  |  |  | $31,220 |  |  |  | $34,166 |
Collective Trust Fund prgms. |  | 1,199 |  |  | 705 |  |  | 370 |  |  | 14 |  |  | 15 |
Liquidity funds |  | 1,643 |  |  | 1,880 |  |  | 1,868 |  |  | 2,514 |  |  | 2,094 |
Total assets under mgmnt. |  |  | $32,564 |  |  |  | $31,738 |  |  |  | $33,102 |  |  |  | $33,748 |  |  |  | $36,275 |
Institutional Investors: |  |  |  |  |  |  |  |  |  |
Equity/Fixed Income prgms. |  |  | $54,537 |  |  |  | $55,548 |  |  |  | $59,852 |  |  |  | $62,160 |  |  |  | $64,214 |
Collective Trust Fund prgms. |  | 424 |  |  | 415 |  |  | 153 |  |  | 102 |  |  | 101 |
Liquidity funds |  | 3,725 |  |  | 2,958 |  |  | 3,272 |  |  | 2,454 |  |  | 2,810 |
Total assets under mgmnt. |  |  | $58,686 |  |  |  | $58,921 |  |  |  | $63,277 |  |  |  | $64,716 |  |  |  | $67,125 |
Investment Managers: |  |  |  |  |  |  |  |  |  |
Equity/Fixed Income prgms. |  |  | $62 |  |  |  | $61 |  |  |  | $65 |  |  |  | $67 |  |  |  | $73 |
Collective Trust Fund prgms. |  | 12,781 |  |  | 13,004 |  |  | 15,433 |  |  | 16,197 |  |  | 17,656 |
Liquidity funds |  | 147 |  |  | 226 |  |  | 396 |  |  | 408 |  |  | 522 |
Total assets under mgmnt. |  |  | $12,990 |  |  |  | $13,291 |  |  |  | $15,894 |  |  |  | $16,672 |  |  |  | $18,251 |
Client assets under admin. (A) |  | 228,327 |  |  | 231,549 |  |  | 240,965 |  |  | 244,671 |  |  | 275,632 |
Total assets |  |  | $241,317 |  |  |  | $244,840 |  |  |  | $256,859 |  |  |  | $261,343 |  |  |  | $293,883 |
Investments in New Businesses: |  |  |  |  |  |  |  |  |  |
Equity/Fixed Income prgms. |  |  | $568 |  |  |  | $551 |  |  |  | $534 |  |  |  | $513 |  |  |  | $552 |
Liquidity funds |  | 34 |  |  | 30 |  |  | 29 |  |  | 43 |  |  | 42 |
Total assets under mgmnt. |  |  | $602 |  |  |  | $581 |  |  |  | $563 |  |  |  | $556 |  |  |  | $594 |
LSV Asset Management: |  |  |  |  |  |  |  |  |  |
Equity/Fixed Income prgms. |  |  | $60,607 |  |  |  | $54,922 |  |  |  | $58,886 |  |  |  | $60,947 |  |  |  | $66,311 |
Total: |  |  |  |  |  |  |  |  |  |
Equity/Fixed Income prgms (B) (D) |  |  | $162,676 |  |  |  | $157,083 |  |  |  | $168,161 |  |  |  | $173,769 |  |  |  | $177,762 |
Collective Trust Fund prgms. |  | 14,839 |  |  | 14,459 |  |  | 16,103 |  |  | 16,324 |  |  | 17,781 |
Liquidity funds |  | 11,098 |  |  | 10,157 |  |  | 10,907 |  |  | 11,427 |  |  | 10,611 |
Total assets under mgmnt. |  |  | $188,613 |  |  |  | $181,699 |  |  |  | $195,171 |  |  |  | $201,520 |  |  |  | $206,154 |
Client assets under admin. (C) |  | 239,243 |  |  | 242,268 |  |  | 252,576 |  |  | 256,849 |  |  | 288,602 |
Total assets |  |  | $427,856 |  |  |  | $423,967 |  |  |  | $447,747 |  |  |  | $458,369 |  |  |  | $494,756 |

(A) | Client assets under administration in the Investment Managers segment include $54.1 billion of assets balances that require limited services and therefore are at fee levels below our normal full service assets (as of March 31, 2013).

(B) | Equity/Fixed Income programs include $3.3 billion of assets invested in various asset allocation funds at March 31, 2013.

(C) | In addition to the numbers presented, SEI also administers an additional $4.9 billion in Funds of Funds assets (as of

March 31, 2013) on which SEI does not earn an administration fee.

(D) | Equity/Fixed Income programs in the Private Banks segment for 2012 included assets related to SEI Asset Korea which was sold in first-quarter 2013. Assets for SEI Asset Korea for the four quarters of 2012 were $6.6 billion, $6.3 billion. $6.6 billion and $7.0 billion respectively.

SEI INVESTMENTS COMPANY
AVERAGE ASSET BALANCES
(In millions)
(Unaudited)

|  |  | 1st Qtr. |  | 2nd Qtr. |  | 3rd Qtr. |  | 4th Qtr. |  | 1st Qtr.
|  |  | 2012 |  | 2012 |  | 2012 |  | 2012 |  | 2013
Private Banks: |  |  |  |  |  |  |  |  |  |  |
Equity/Fixed Income prgms. |  |  |  | $17,116 |  |  |  | $16,794 |  |  |  | $17,527 |  |  |  | $18,301 |  |  |  | $19,197 |
Collective Trust Fund prgms. |  |  | 436 |  |  | 396 |  |  | 230 |  |  | 66 |  |  | 11 |
Liquidity funds |  |  | 5,581 |  |  | 5,115 |  |  | 5,401 |  |  | 5,229 |  |  | 5,556 |
Total assets under mgmnt. |  |  |  | $23,133 |  |  |  | $22,305 |  |  |  | $23,158 |  |  |  | $23,596 |  |  |  | $24,764 |
Client assets under admin. |  |  | 10,211 |  |  | 10,631 |  |  | 10,867 |  |  | 11,783 |  |  | 12,860 |
Total assets |  |  |  | $33,344 |  |  |  | $32,936 |  |  |  | $34,025 |  |  |  | $35,379 |  |  |  | $37,624 |
Investment Advisors: |  |  |  |  |  |  |  |  |  |  |
Equity/Fixed Income prgms. |  |  |  | $28,426 |  |  |  | $29,103 |  |  |  | $30,032 |  |  |  | $30,881 |  |  |  | $33,189 |
Collective Trust Fund prgms. |  |  | 1,238 |  |  | 984 |  |  | 532 |  |  | 158 |  |  | 14 |
Liquidity funds |  |  | 2,015 |  |  | 1,806 |  |  | 1,886 |  |  | 2,176 |  |  | 2,085 |
Total assets under mgmnt. |  |  |  | $31,679 |  |  |  | $31,893 |  |  |  | $32,450 |  |  |  | $33,215 |  |  |  | $35,288 |
Institutional Investors: |  |  |  |  |  |  |  |  |  |  |
Equity/Fixed Income prgms. |  |  |  | $52,270 |  |  |  | $54,998 |  |  |  | $57,763 |  |  |  | $61,304 |  |  |  | $63,642 |
Collective Trust Fund prgms. |  |  | 427 |  |  | 418 |  |  | 284 |  |  | 120 |  |  | 101 |
Liquidity funds |  |  | 3,765 |  |  | 3,147 |  |  | 3,253 |  |  | 3,493 |  |  | 2,960 |
Total assets under mgmnt. |  |  |  | $56,462 |  |  |  | $58,563 |  |  |  | $61,300 |  |  |  | $64,917 |  |  |  | $66,703 |
Investment Managers: |  |  |  |  |  |  |  |  |  |  |
Equity/Fixed Income prgms. |  |  |  | $58 |  |  |  | $63 |  |  |  | $62 |  |  |  | $68 |  |  |  | $68 |
Collective Trust Fund prgms. |  |  | 11,983 |  |  | 12,991 |  |  | 14,797 |  |  | 15,719 |  |  | 17,129 |
Liquidity funds |  |  | 190 |  |  | 235 |  |  | 287 |  |  | 395 |  |  | 511 |
Total assets under mgmnt. |  |  |  | $12,231 |  |  |  | $13,289 |  |  |  | $15,146 |  |  |  | $16,182 |  |  |  | $17,708 |
Client assets under admin. |  |  | 224,547 |  |  | 229,873 |  |  | 237,155 |  |  | 240,520 |  |  | 263,054 |
Total assets |  |  |  | $236,778 |  |  |  | $243,162 |  |  |  | $252,301 |  |  |  | $256,702 |  |  |  | $280,762 |
Investments in New Businesses: |  |  |  |  |  |  |  |  |  |  |
Equity/Fixed Income prgms. |  |  |  | $549 |  |  |  | $550 |  |  |  | $530 |  |  |  | $518 |  |  |  | $542 |
Liquidity funds |  |  | 39 |  |  | 33 |  |  | 35 |  |  | 33 |  |  | 38 |
Total assets under mgmnt. |  |  |  | $588 |  |  |  | $583 |  |  |  | $565 |  |  |  | $551 |  |  |  | $580 |
LSV Asset Management: |  |  |  |  |  |  |  |  |  |  |
Equity/Fixed Income prgms. |  |  |  | $59,200 |  |  |  | $55,994 |  |  |  | $57,164 |  |  |  | $59,383 |  |  |  | $64,448 |
Total: |  |  |  |  |  |  |  |  |  |  |
Equity/Fixed Income prgms (A) |  |  |  | $157,619 |  |  |  | $157,502 |  |  |  | $163,078 |  |  |  | $170,455 |  |  |  | $181,086 |
Collective Trust Fund prgms. |  |  | 14,084 |  |  | 14,789 |  |  | 15,843 |  |  | 16,063 |  |  | 17,255 |
Liquidity funds |  |  | 11,590 |  |  | 10,336 |  |  | 10,862 |  |  | 11,326 |  |  | 11,150 |
Total assets under mgmnt. |  |  |  | $183,293 |  |  |  | $182,627 |  |  |  | $189,783 |  |  |  | $197,844 |  |  |  | $209,491 |
Client assets under admin. |  |  | 234,758 |  |  | 240,504 |  |  | 248,022 |  |  | 252,303 |  |  | 275,914 |
Total assets |  |  |  | $418,051 |  |  |  | $423,131 |  |  |  | $437,805 |  |  |  | $450,147 |  |  |  | $485,405 |

(A) | Equity/Fixed Income programs in the Private Banks segment for 2012 and 2013 included average assets related to SEI Asset Korea which was sold in first-quarter 2013. Average assets for SEI Asset Korea for the four quarters of 2012 were $6.8 billion, $6.4 billion, $6.5 billion and $6.8 billion respectively. Average assets for the first-quarter 2013 were $7.0 billion.