Form: 10-Q

Quarterly report pursuant to Section 13 or 15(d)

April 22, 2015


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.

2



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 PlatformSM 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.




4



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





5



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




6



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.



7



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





8