EX-99.1 5 earningsrelease42215ex991.htm PRESS RELEASE
Exhibit 99.1
Investor Contact: Media Contact:
Nicole Vattimo Dana Grosser
SEI SEI
+1 610-676-4385 +1 610-676-2459
nvattimo@seic.com dgrosser@seic.com
Pages: 8
FOR IMMEDIATE RELEASE
SEI REPORTS FIRST-QUARTER 2015 FINANCIAL RESULTS
Income from Operations Increases 19 Percent
OAKS, Pa., April 22, 2015 -- SEI Investments Company (NASDAQ:SEIC) today announced financial results for the first-quarter 2015. Diluted earnings per share were $.50 in first-quarter 2015 compared to $.43 in first-quarter 2014. Diluted earnings per share for first-quarter 2015 and 2014 reflect pre-tax gains of $2.8 million, or $.01 per share, and $5.6 million, or $.02 per share, respectively, from the sale of SEI Asset Korea.

Consolidated Overview |  |  |  |  |  |
(In thousands, except earnings per share) |  | For the Three Months Ended March 31, |  |
|  | 2015 |  | 2014 |  | %
Revenues |  |  | $325,444 |  |  |  | $302,386 |  |  | 8%
Net income |  | 84,611 |  |  | 74,820 |  |  | 13%
Diluted earnings per share |  |  | $0.50 |  |  |  | $0.43 |  |  | 16%

"Our results for the first quarter demonstrate the success we are having in growing our company, increasing profitability, and expanding our customer base," said Alfred P. West, Jr., SEI Chairman and CEO. "SEI's business model, our ability to execute, and the completeness of our offerings enable us to manage through the mixed nature of global markets.
"Across our company, we are investing in products and services that position us well for long-term, sustainable growth as we work to meet the evolving needs of our clients and markets."

Summary of First-Quarter Results by Business Segment

(In thousands) |  | For the Three Months Ended March 31, |  |
|  | 2015 |  | 2014 |  | %
Private Banks: |  |  |  |  |  |
Revenues |  |  | $111,213 |  |  |  | $105,179 |  |  | 6%
Expenses |  | 99,256 |  |  | 100,190 |  |  | (1)%
Operating Profit |  | 11,957 |  |  | 4,989 |  |  | 140%
Gain on sale of subsidiary |  | 2,791 |  |  | 5,582 |  |  | NM
Interest income |  | 180 |  |  | — |  |  | NM
Total Profit |  | 14,928 |  |  | 10,571 |  |  | NM
Operating Margin (A) |  | 11 | % |  | 5 | % |  |
Investment Advisors: |  |  |  |  |  |
Revenues |  | 74,015 |  |  | 66,424 |  |  | 11%
Expenses |  | 39,059 |  |  | 34,577 |  |  | 13%
Operating Profit |  | 34,956 |  |  | 31,847 |  |  | 10%
Operating Margin |  | 47 | % |  | 48 | % |  |
Institutional Investors: |  |  |  |  |  |
Revenues |  | 73,548 |  |  | 68,657 |  |  | 7%
Expenses |  | 35,211 |  |  | 34,095 |  |  | 3%
Operating Profit |  | 38,337 |  |  | 34,562 |  |  | 11%
Operating Margin |  | 52 | % |  | 50 | % |  |
Investment Managers: |  |  |  |  |  |
Revenues |  | 65,367 |  |  | 61,008 |  |  | 7%
Expenses |  | 40,623 |  |  | 39,184 |  |  | 4%
Operating Profit |  | 24,744 |  |  | 21,824 |  |  | 13%
Operating Margin |  | 38 | % |  | 36 | % |  |
Investments in New Businesses: |  |  |  |  |  |
Revenues |  | 1,301 |  |  | 1,118 |  |  | 16%
Expenses |  | 4,866 |  |  | 4,249 |  |  | 15%
Operating Loss |  | (3,565 | ) |  | (3,131 | ) |  | NM
Totals: |  |  |  |  |  |
Revenues |  |  | $325,444 |  |  |  | $302,386 |  |  | 8%
Expenses |  | 219,015 |  |  | 212,295 |  |  | 3%
Corporate overhead expenses |  | 13,359 |  |  | 11,699 |  |  | 14%
Income from operations |  |  | $93,070 |  |  |  | $78,392 |  |  | 19%

(A) Percentages determined exclusive of gain on sale of subsidiary and interest income.
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First-Quarter Business Highlights:

• | Revenue growth was primarily driven by higher Asset management, administration, and distribution fees from market appreciation and improved cash flows from new and existing clients.

• | Our average assets under management, excluding LSV, increased $14.9 billion, or nine percent, to $172.5 billion in the first-quarter 2015, as compared to $157.6 billion during the first-quarter 2014 (see attached Average Asset Balances schedules for further details).

• | Our average assets under administration increased $48.7 billion, or 14 percent, to $384.7 billion in the first-quarter 2015, as compared to $336.0 billion during the first-quarter 2014 (see attached Average Asset Balances schedules for further details).

• | Revenue growth was also driven by increased Information processing and software servicing fees in our Private Banks segment. The increase was primarily attributable to higher fees from the growth in assets processed on the SEI Wealth Platform SM and increased non-recurring professional services fees.

• | Sales events, net of client losses, during first-quarter 2015 totaled approximately $30.9 million and are expected to generate net annualized recurring revenues of approximately $23.6 million when contract values are fully realized.

• | Income from LSV increased $2.1 million, or seven percent, to $34.3 million in first-quarter 2015 as compared to $32.2 million in first-quarter 2014 due to an increase in assets under management and an increase in performance fees earned by LSV.

• | We recorded pre-tax gains of $2.8 million, or $.01 diluted earnings per share, and $5.6 million, or $.02 diluted earnings per share, from the sale of SEI AK in first-quarter 2015 and 2014, respectively.

• | Amortization expense related to capitalized software was $10.3 million during the first-quarter 2015 as compared to $9.2 million during the first-quarter 2014 due to continued enhancements to the SEI Wealth Platform.

• | Our effective tax rates were 35.4 percent in first-quarter 2015 and 35.9 percent in first-quarter 2014.

• | In first-quarter 2015, we repurchased 1.5 million shares of our common stock for $65.3 million.

3

Earnings Conference Call
A conference call to review earnings is scheduled for 2 p.m. Eastern time on April 22, 2015. Investors may listen to the call at seic.com/investors. The call may also be accessed at many financial services websites, including Google Finance and Yahoo Finance. Investors may also listen to replays at these websites, or by telephone at (USA) 800-475-6701; (International) 320-365-3844, access code 358144.
About SEI
SEI (NASDAQ:SEIC) is a leading global provider of investment processing, investment management, and investment operations solutions that help corporations, financial institutions, financial advisors, and ultra-high-net-worth families create and manage wealth. As of March 31, 2015, through its subsidiaries and partnerships in which the company has a significant interest, SEI manages or administers $648 billion in mutual fund and pooled or separately managed assets, including $258 billion in assets under management and $390 billion in client assets under administration. For more information, visit 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.
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SEI INVESTMENTS COMPANY
CONSOLIDATED STATEMENTS OF OPERATIONS
(In thousands, except per share data)
(Unaudited)

|  | For the Three Months Ended March 31,
|  | 2015 |  | 2014
Asset management, admin. and distribution fees |  |  | $246,768 |  |  |  | $225,071 |
Information processing and software servicing fees |  | 70,653 |  |  | 69,178 |
Transaction–based and trade execution fees |  | 8,023 |  |  | 8,137 |
Total revenues |  | 325,444 |  |  | 302,386 |
Subadvisory, distribution and other asset mgmt costs |  | 38,517 |  |  | 34,012 |
Software royalties and other information processing costs |  | 7,509 |  |  | 8,553 |
Brokerage commissions |  | 5,972 |  |  | 5,979 |
Compensation, benefits and other personnel |  | 94,186 |  |  | 94,424 |
Stock-based compensation |  | 3,750 |  |  | 2,823 |
Consulting, outsourcing and professional fees |  | 35,628 |  |  | 34,933 |
Data processing and computer related |  | 13,400 |  |  | 12,620 |
Facilities, supplies and other costs |  | 17,059 |  |  | 15,852 |
Amortization |  | 10,358 |  |  | 9,214 |
Depreciation |  | 5,995 |  |  | 5,584 |
Total expenses |  | 232,374 |  |  | 223,994 |
Income from operations |  | 93,070 |  |  | 78,392 |
Net gain on investments |  | 250 |  |  | 136 |
Interest and dividend income |  | 969 |  |  | 777 |
Interest expense |  | (113 | ) |  | (113 | )
Equity in earnings of unconsolidated affiliates |  | 34,033 |  |  | 31,891 |
Gain on sale of subsidiary |  | 2,791 |  |  | 5,582 |
Income before income taxes |  | 131,000 |  |  | 116,665 |
Income taxes |  | 46,389 |  |  | 41,845 |
Net income |  | 84,611 |  |  | 74,820 |
Basic earnings per common share |  |  | $0.51 |  |  |  | $0.44 |
Shares used to calculate basic earnings per share |  | 166,695 |  |  | 169,306 |
Diluted earnings per common share |  |  | $0.50 |  |  |  | $0.43 |
Shares used to calculate diluted earnings per share |  | 170,703 |  |  | 173,828 |

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

|  | March 31, |  | December 31,
|  | 2015 |  | 2014
Assets |  |  |  |
Current Assets: |  |  |  |
Cash and cash equivalents |  |  | $643,260 |  |  |  | $667,446 |
Restricted cash |  | 5,805 |  |  | 5,801 |
Receivables from regulated investment companies |  | 47,006 |  |  | 48,393 |
Receivables, net |  | 200,673 |  |  | 194,419 |
Securities owned |  | 21,192 |  |  | 21,175 |
Other current assets |  | 25,028 |  |  | 18,193 |
Total Current Assets |  | 942,964 |  |  | 955,427 |
Property and Equipment, net |  | 125,855 |  |  | 125,535 |
Capitalized software, net |  | 306,728 |  |  | 309,040 |
Investments available for sale |  | 74,222 |  |  | 77,609 |
Investments in affiliated funds, at fair value |  | 4,454 |  |  | 4,523 |
Investment in unconsolidated affiliates |  | 51,320 |  |  | 54,290 |
Other assets, net |  | 16,442 |  |  | 16,451 |
Total Assets |  |  | $1,521,985 |  |  |  | $1,542,875 |
Liabilities and Equity |  |  |  |
Current Liabilities: |  |  |  |
Accounts payable |  |  | $6,050 |  |  |  | $10,588 |
Accrued liabilities |  | 152,227 |  |  | 207,429 |
Deferred income taxes, net |  | 1,298 |  |  | 1,414 |
Deferred revenue |  | 3,618 |  |  | 1,749 |
Total Current Liabilities |  | 163,193 |  |  | 221,180 |
Deferred income taxes |  | 63,742 |  |  | 63,755 |
Other long-term liabilities |  | 10,791 |  |  | 10,327 |
Total Liabilities |  | 237,726 |  |  | 295,262 |
Shareholders' Equity: |  |  |  |
Common stock |  | 1,661 |  |  | 1,667 |
Capital in excess of par value |  | 854,995 |  |  | 834,615 |
Retained earnings |  | 445,368 |  |  | 420,226 |
Accumulated other comprehensive loss, net |  | (17,765 | ) |  | (8,895 | )
Total Shareholders' Equity |  | 1,284,259 |  |  | 1,247,613 |
Total Liabilities and Shareholders' Equity |  |  | $1,521,985 |  |  |  | $1,542,875 |

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

|  |  | Mar. 31, |  | Jun. 30, |  | Sept. 30, |  | Dec 31, |  | Mar. 31,
|  |  | 2014 |  | 2014 |  | 2014 |  | 2014 |  | 2015
Private Banks: |  |  |  |  |  |  |  |  |  |  |
Equity/Fixed Income programs |  |  |  | $16,918 |  |  |  | $18,679 |  |  |  | $18,634 |  |  |  | $18,666 |  |  |  | $19,296 |
Collective Trust Fund programs |  |  | 14 |  |  | 12 |  |  | 11 |  |  | 8 |  |  | 9 |
Liquidity funds |  |  | 5,670 |  |  | 5,274 |  |  | 5,331 |  |  | 5,889 |  |  | 5,551 |
Total assets under management |  |  |  | $22,602 |  |  |  | $23,965 |  |  |  | $23,976 |  |  |  | $24,563 |  |  |  | $24,856 |
Client assets under administration |  |  | 15,641 |  |  | 15,347 |  |  | 16,288 |  |  | 16,741 |  |  | 17,643 |
Total assets |  |  |  | $38,243 |  |  |  | $39,312 |  |  |  | $40,264 |  |  |  | $41,304 |  |  |  | $42,499 |
Investment Advisors: |  |  |  |  |  |  |  |  |  |  |
Equity/Fixed Income programs |  |  |  | $39,981 |  |  |  | $42,125 |  |  |  | $42,260 |  |  |  | $43,845 |  |  |  | $45,800 |
Collective Trust Fund programs |  |  | 13 |  |  | 13 |  |  | 9 |  |  | 9 |  |  | 8 |
Liquidity funds |  |  | 2,802 |  |  | 2,696 |  |  | 3,086 |  |  | 3,173 |  |  | 3,047 |
Total assets under management |  |  |  | $42,796 |  |  |  | $44,834 |  |  |  | $45,355 |  |  |  | $47,027 |  |  |  | $48,855 |
Institutional Investors: |  |  |  |  |  |  |  |  |  |  |
Equity/Fixed Income programs |  |  |  | $69,194 |  |  |  | $71,598 |  |  |  | $72,006 |  |  |  | $72,828 |  |  |  | $74,178 |
Collective Trust Fund programs |  |  | 102 |  |  | 100 |  |  | 98 |  |  | 95 |  |  | 94 |
Liquidity funds |  |  | 2,505 |  |  | 2,414 |  |  | 2,891 |  |  | 2,929 |  |  | 3,246 |
Total assets under management |  |  |  | $71,801 |  |  |  | $74,112 |  |  |  | $74,995 |  |  |  | $75,852 |  |  |  | $77,518 |
Investment Managers: |  |  |  |  |  |  |  |  |  |  |
Equity/Fixed Income programs |  |  |  | $68 |  |  |  | $64 |  |  |  | $64 |  |  |  | $27 |  |  |  | $25 |
Collective Trust Fund programs |  |  | 22,633 |  |  | 22,598 |  |  | 21,297 |  |  | 20,833 |  |  | 20,965 |
Liquidity funds |  |  | 782 |  |  | 802 |  |  | 1,018 |  |  | 946 |  |  | 1,091 |
Total assets under management |  |  |  | $23,483 |  |  |  | $23,464 |  |  |  | $22,379 |  |  |  | $21,806 |  |  |  | $22,081 |
Client assets under administration (A) |  |  | 326,735 |  |  | 337,492 |  |  | 346,841 |  |  | 355,890 |  |  | 372,116 |
Total assets |  |  |  | $350,218 |  |  |  | $360,956 |  |  |  | $369,220 |  |  |  | $377,696 |  |  |  | $394,197 |
Investments in New Businesses: |  |  |  |  |  |  |  |  |  |  |
Equity/Fixed Income programs |  |  |  | $632 |  |  |  | $659 |  |  |  | $703 |  |  |  | $736 |  |  |  | $756 |
Liquidity funds |  |  | 49 |  |  | 38 |  |  | 118 |  |  | 98 |  |  | 106 |
Total assets under management |  |  |  | $681 |  |  |  | $697 |  |  |  | $821 |  |  |  | $834 |  |  |  | $862 |
LSV Asset Management: |  |  |  |  |  |  |  |  |  |  |
Equity/Fixed Income programs |  |  |  | $77,973 |  |  |  | $82,026 |  |  |  | $81,536 |  |  |  | $82,665 |  |  |  | $84,123 |
Total: |  |  |  |  |  |  |  |  |  |  |
Equity/Fixed Income programs (B) |  |  |  | $204,766 |  |  |  | $215,151 |  |  |  | $215,203 |  |  |  | $218,767 |  |  |  | $224,178 |
Collective Trust Fund programs |  |  | 22,762 |  |  | 22,723 |  |  | 21,415 |  |  | 20,945 |  |  | 21,076 |
Liquidity funds |  |  | 11,808 |  |  | 11,224 |  |  | 12,444 |  |  | 13,035 |  |  | 13,041 |
Total assets under management |  |  |  | $239,336 |  |  |  | $249,098 |  |  |  | $249,062 |  |  |  | $252,747 |  |  |  | $258,295 |
Client assets under administration (C) |  |  | 342,376 |  |  | 352,839 |  |  | 363,129 |  |  | 372,631 |  |  | 389,759 |
Total assets |  |  |  | $581,712 |  |  |  | $601,937 |  |  |  | $612,191 |  |  |  | $625,378 |  |  |  | $648,054 |

(A) | Client assets under administration in the Investment Managers segment include $48.9 billion of assets balances that require limited services and therefore are at fee levels below our normal full service assets (as of March 31, 2015).

(B) | Equity/Fixed Income programs include $5.3 billion of assets invested in various asset allocation funds at March 31, 2015.

(C) | In addition to the numbers presented, SEI also administers an additional $6.7 billion in Funds of Funds assets (as of

March 31, 2015) on which SEI does not earn an administration fee.
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SEI INVESTMENTS COMPANY
AVERAGE ASSET BALANCES
(In millions)
(Unaudited)

|  |  | 1st Qtr. |  | 2nd Qtr. |  | 3rd Qtr. |  | 4th Qtr. |  | 1st Qtr.
|  |  | 2014 |  | 2014 |  | 2014 |  | 2014 |  | 2015
Private Banks: |  |  |  |  |  |  |  |  |  |  |
Equity/Fixed Income programs |  |  |  | $16,114 |  |  |  | $17,829 |  |  |  | $18,804 |  |  |  | $18,606 |  |  |  | $18,869 |
Collective Trust Fund programs |  |  | 14 |  |  | 12 |  |  | 12 |  |  | 10 |  |  | 8 |
Liquidity funds |  |  | 5,757 |  |  | 5,429 |  |  | 5,466 |  |  | 5,537 |  |  | 5,755 |
Total assets under management |  |  |  | $21,885 |  |  |  | $23,270 |  |  |  | $24,282 |  |  |  | $24,153 |  |  |  | $24,632 |
Client assets under administration |  |  | 15,366 |  |  | 15,069 |  |  | 15,707 |  |  | 16,451 |  |  | 17,504 |
Total assets |  |  |  | $37,251 |  |  |  | $38,339 |  |  |  | $39,989 |  |  |  | $40,604 |  |  |  | $42,136 |
Investment Advisors: |  |  |  |  |  |  |  |  |  |  |
Equity/Fixed Income programs |  |  |  | $39,005 |  |  |  | $40,887 |  |  |  | $42,389 |  |  |  | $43,104 |  |  |  | $44,809 |
Collective Trust Fund programs |  |  | 13 |  |  | 13 |  |  | 11 |  |  | 9 |  |  | 9 |
Liquidity funds |  |  | 2,806 |  |  | 2,637 |  |  | 2,830 |  |  | 3,087 |  |  | 3,072 |
Total assets under management |  |  |  | $41,824 |  |  |  | $43,537 |  |  |  | $45,230 |  |  |  | $46,200 |  |  |  | $47,890 |
Institutional Investors: |  |  |  |  |  |  |  |  |  |  |
Equity/Fixed Income programs |  |  |  | $67,697 |  |  |  | $70,706 |  |  |  | $72,010 |  |  |  | $72,771 |  |  |  | $73,760 |
Collective Trust Fund programs |  |  | 103 |  |  | 134 |  |  | 98 |  |  | 96 |  |  | 95 |
Liquidity funds |  |  | 2,571 |  |  | 2,664 |  |  | 2,883 |  |  | 2,973 |  |  | 3,021 |
Total assets under management |  |  |  | $70,371 |  |  |  | $73,504 |  |  |  | $74,991 |  |  |  | $75,840 |  |  |  | $76,876 |
Investment Managers: |  |  |  |  |  |  |  |  |  |  |
Equity/Fixed Income programs |  |  |  | $68 |  |  |  | $68 |  |  |  | $64 |  |  |  | $64 |  |  |  | $27 |
Collective Trust Fund programs |  |  | 22,004 |  |  | 22,447 |  |  | 22,123 |  |  | 21,140 |  |  | 21,108 |
Liquidity funds |  |  | 738 |  |  | 824 |  |  | 962 |  |  | 904 |  |  | 1,066 |
Total assets under management |  |  |  | $22,810 |  |  |  | $23,339 |  |  |  | $23,149 |  |  |  | $22,108 |  |  |  | $22,201 |
Client assets under administration |  |  | 320,644 |  |  | 333,373 |  |  | 344,661 |  |  | 355,903 |  |  | 367,206 |
Total assets |  |  |  | $343,454 |  |  |  | $356,712 |  |  |  | $367,810 |  |  |  | $378,011 |  |  |  | $389,407 |
Investments in New Businesses: |  |  |  |  |  |  |  |  |  |  |
Equity/Fixed Income programs |  |  |  | $623 |  |  |  | $640 |  |  |  | $688 |  |  |  | $731 |  |  |  | $755 |
Liquidity funds |  |  | 46 |  |  | 43 |  |  | 139 |  |  | 97 |  |  | 101 |
Total assets under management |  |  |  | $669 |  |  |  | $683 |  |  |  | $827 |  |  |  | $828 |  |  |  | $856 |
LSV Asset Management: |  |  |  |  |  |  |  |  |  |  |
Equity/Fixed Income programs |  |  |  | $76,306 |  |  |  | $79,866 |  |  |  | $82,402 |  |  |  | $83,187 |  |  |  | $83,439 |
Total: |  |  |  |  |  |  |  |  |  |  |
Equity/Fixed Income programs |  |  |  | $199,813 |  |  |  | $209,996 |  |  |  | $216,357 |  |  |  | $218,463 |  |  |  | $221,659 |
Collective Trust Fund programs |  |  | 22,134 |  |  | 22,606 |  |  | 22,244 |  |  | 21,255 |  |  | 21,220 |
Liquidity funds |  |  | 11,918 |  |  | 11,597 |  |  | 12,280 |  |  | 12,598 |  |  | 13,015 |
Total assets under management |  |  |  | $233,865 |  |  |  | $244,199 |  |  |  | $250,881 |  |  |  | $252,316 |  |  |  | $255,894 |
Client assets under administration |  |  | 336,010 |  |  | 348,442 |  |  | 360,368 |  |  | 372,354 |  |  | 384,710 |
Total assets |  |  |  | $569,875 |  |  |  | $592,641 |  |  |  | $611,249 |  |  |  | $624,670 |  |  |  | $640,604 |

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