Form: 8-K

Current report filing

April 21, 2003

PRESS RELEASE

Published on April 21, 2003

Exhibit 99.1

For Immediate Release

Contact: Mark Samuels, SVP Murray Louis, VP Larry Wexler
Voice: 610.676.2024 610.676.1932 610.676.1440
E-Mail: msamuels@seic.com mlouis@seic.com lwexler@seic.com
----------------- --------------- ----------------
Pages: Seven


SEI Investments Reports First-Quarter 2003 Earnings up 3%

--------------------------------------------


Oaks, PA--April 17, 2003--SEI Investments Company (NASDAQ:SEIC) today announced
financial results for first-quarter 2003, reporting increases in net income and
earnings per share over the corresponding period for the prior year.


Consolidated Overview For the Three Months
(In thousands, except earnings per share) Ended March 31,
--------------------------------
2003 2002 %
---- ---- --

Revenues $150,605 $159,215 (5%)
Net income before taxes 55,695 53,970 3%
Net income 35,088 34,001 3%
Diluted earnings per share $.32 $.30 7%



"We are hopeful that 2003 will mark the end of the `decision freeze' and that
2004 will be the first of a string of positive years," said Alfred P. West, Jr.,
Chairman and CEO. "We will continue to invest in our strategic new business
initiatives. We feel these are key investments which have potential for high
payoff in the future, and we will not jeopardize that for the sake of short-term
profits. We expect to accelerate these investments starting in the second
quarter."


Summary of First-Quarter 2003 Results by Business Segment


1



(In thousands) For the Three Month Period Ended
March 31,
-----------------------------------
2003 2002 %
---- ---- --
Private Banking and Trust:
Revenues $76,895 $82,958 (7%)
Operating profit $33,601 $33,825 (1%)
Operating margin 44% 41%

Investment Advisors:
Revenues 35,913 38,891 (8%)
Operating profit 19,603 17,983 9%
Operating margin 55% 46%

Enterprises:
Revenues 14,024 14,732 (5%)
Operating profit 6,436 5,388 19%
Operating margin 46% 37%

Money Managers:
Revenues 12,332 10,797 14%
Operating profit 1,970 2,424 (19%)
Operating margin 16% 22%

Investments in New Businesses:
Revenues 11,441 11,837 (3%)
Operating loss (4,446) (3,289) (35%)
Operating margin (39%) (28%)

Consolidated Segment Totals:
Revenues $150,605 $159,215 (5%)
Operating profit $57,164 $56,331 1%
Operating margin 38% 35%



First-Quarter Business Commentary:

. Private Banking & Trust year-over-year revenues were affected by
losses in the mutual fund processing business as well as weakness in
non-recurring revenues due to reduced transaction and one-time fees.

. Continued weakness in the equity markets significantly affected
revenues in all markets, with particular impact on the Investment
Advisors and Enterprises segments.

. While both the Enterprises and Investments in New Businesses segments
experienced good new business quarters, weak capital markets offset
most of the gains.

. Expense management and leverage of existing operations continue to
produce strong operating margins. o SEI purchased 1.6 million shares
of its common stock at an average price of $24.58 for approximately
$39 million in the first-quarter 2003.


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Earnings Conference Call

A conference call to review earnings is scheduled for 2:00 PM EDST, April 17,
2003. Investors may listen to the call at www.seic.com, or listen at
------------
www.companyboardroom.com, a service of CCBN. The call may also be accessed at
- ------------------------
numerous financial services web sites including AOL, Motley Fool and Yahoo.
Investors may also listen to replays (beginning at 9:00 PM) at these web sites,
or by telephone at (USA) 1-800-475-6701, (International) 320-365-3844, access
code 680584.

About SEI

SEI Investments (NASDAQ:SEIC) is a leading global provider of asset management
and investment technology solutions. The company's innovative solutions help
corporations, financial institutions, financial advisors, and affluent families
create and manage wealth. As of the period ending March 31, 2003, SEI
administers $230 billion in mutual fund and pooled assets, manages $78 billion
in assets, processes almost $50 trillion of investment transactions annually and
operates 21 offices in 10 countries. For more information, visit www.seic.com.
------------

Many of our responses 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 INCOME
(In thousands, except per share data)

Three Months Ended March 31,
----------------------------
2003 2002
----------- ----------

Revenues $150,605 $159,215

Operating and development expenses 66,552 68,736
Sales and marketing expenses 26,889 34,148
General and administrative expenses 5,651 5,709
----------- -----------

Income before interest and taxes 51,513 50,622

Equity in earnings of unconsolidated affiliate 3,614 2,679
Net loss on investments (106) --
Interest income 1,242 1,150
Interest expense (568) (481)
----------- ----------

Income before taxes 55,695 53,970

Income taxes 20,607 19,969
----------- ----------

Net income $35,088 $34,001
=========== ==========


Diluted earnings per common share $.32 $.30
=========== ==========

Shares used to calculate diluted
earnings per common share 109,566 114,984
=========== ==========


Basic earnings per common share $.33 $.31
=========== ==========

Shares used to calculate basic
earnings per common share 105,766 109,396
=========== ==========



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SEI INVESTMENTS COMPANY
CONDENSED BALANCE SHEETS
(In thousands)

March 31, December 31,
2003 2002
------------ ------------
Assets

Cash and short-term investments $144,836 $165,724

Restricted Cash 10,000 10,000

Receivables 84,470 74,642

Other current assets 12,596 11,069
------------ ------------

Total current assets 251,902 261,435

Property and Equipment, net 104,926 104,258

Investments available for sale 60,741 62,433

Other assets 35,098 36,021
------------ ------------

Total assets $452,667 $464,147
============ ============



Liabilities

Current liabilities $125,366 $134,247

Long-term debt 28,111 33,500

Deferred income taxes 6,366 6,393

Shareholders' Equity 292,824 290,007
------------ ------------

Total liabilities and shareholders' equity $452,667 $464,147
============ ============


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SEI Investments Business Segments
(In thousands)
Three Months ended Mar. 31,
---------------------------
2003 2002
-------- --------
Private Banking and Trust:
Revenues $76,895 $82,958

Operating and development expenses 35,141 38,424
Sales and marketing expenses 8,153 10,709
-------- --------
Operating profit 33,601 33,825
Operating margin 44% 41%

Investment Advisors:

Revenues 35,913 38,891

Operating and development expenses 10,028 10,275
Sales and marketing expenses 6,282 10,633
-------- --------
Operating profit 19,603 17,983
Operating margin 55% 46%

Enterprises:
Revenues 14,024 14,732

Operating and development expenses 3,562 4,618
Sales and marketing expenses 4,026 4,726
-------- --------
Operating profit 6,436 5,388
Operating margin 46% 37%

Money Managers:
Revenues 12,332 10,797

Operating and development expenses 7,314 5,467
Sales and marketing expenses 3,048 2,906
-------- --------
Operating profit 1,970 2,424
Operating margin 16% 22%

Investments in New Businesses:
Revenues 11,441 11,837

Operating and development expenses 10,507 9,952
Sales and marketing expenses 5,380 5,174
-------- --------
Operating loss (4,446) (3,289)
Operating margin (39%) (28%)

Consolidated Segment Totals:
Revenues $150,605 $159,215

Operating and development expenses 66,552 68,736
Sales and marketing expenses 26,889 34,148
-------- --------
Operating profit $57,164 $56,331
Operating margin 38% 35%

General and Administrative expenses 5,651 5,709

Income from operations $51,513 $50,622
Operating margin 34% 32%





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SEI INVESTMENTS COMPANY
ASSET BALANCES
(In millions)



Mar. 31, June 30, Sept. 30, Dec. 31, Mar. 31,
2002 2002 2002 2002 2003
---- ---- ---- ---- ----
Private Banking & Trust

Equity/Fixed Income prgms. $3,046 $2,842 $2,863 $3,332 $3,635
Liquidity funds 12,870 13,221 13,084 12,811 13,257
------ ------ ------ ------ ------
Total assets under mgmt. 15,916 16,063 15,947 16,143 16,892

Client assets under admin. 95,801 93,539 85,931 83,652 72,078
------ ------ ------ ------ ------
Total assets under admin. $111,717 $109,602 $101,878 $99,795 $88,970

Investment Advisors

Equity/Fixed Income prgms. $26,520 $24,421 $21,876 $22,708 $22,287
Liquidity funds 1,460 1,385 1,340 1,444 1,558
----- ----- ----- ----- -----
Total assets under mgmt. $27,980 $25,806 $23,216 $24,152 $23,845

Enterprises

Equity/Fixed Income prgms. $11,194 $10,837 $10,098 $11,107 $10,864
Liquidity funds 4,143 4,428 4,145 5,148 4,277
----- ----- ----- ----- -----
Total assets under mgmt. $15,337 $15,265 $14,243 $16,255 $15,141

Money Managers

Equity/Fixed Income prgms. $2,936 $3,319 $4,040 $4,436 $5,072
Liquidity funds 1,298 1,006 1,086 1,350 1,151
----- ----- ----- ----- -----
Total assets under mgmt. 4,234 4,325 5,126 5,786 6,223

Client assets under admin. 78,172 75,370 71,256 74,523 74,964
------ ------ ------ ------ ------
Total assets under admin. $82,406 $79,695 $76,382 $80,309 $81,187

Investments in New Businesses

Equity/Fixed Income prgms. $8,065 $7,844 $7,318 $7,544 $7,654
Liquidity funds 345 380 108 219 73
--- --- --- --- --
Total assets under mgmt. 8,410 8,224 7,426 7,763 7,727

Client assets under admin. 3,992 3,854 4,020 4,894 5,229
----- ----- ----- ----- -----
Total assets under admin. $12,402 $12,078 $11,446 $12,657 $12,956

Unconsolidated Affiliate

Equity/Fixed Income prgms $7,085 $7,099 $6,255 $7,874 $8,391

Consolidated

Equity/Fixed Income prgms. $58,846 $56,362 $52,450 $57,001 $57,903
Liquidity funds 20,116 20,420 19,763 20,972 20,316
------ ------ ------ ------ ------
Total assets under mgmt. 78,962 76,782 72,213 77,973 78,219

Client assets under admin. 177,965 172,763 161,207 163,069 152,271
------- ------- ------- ------- -------
Total assets under admin. $256,927 $249,545 $233,420 $241,042 $230,490



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