SEI Investments Reports First-Quarter 2007 Results

Net Income up 15%

OAKS, Pa., April 25 /PRNewswire-FirstCall/ -- SEI Investments Company (Nasdaq: SEIC) today announced financial results for first-quarter 2007, reporting increases in revenues, net income and earnings per share, compared to the corresponding period for the prior year.



    Consolidated Overview                   For the Three Months
    (In thousands, except                     Ended March 31,
     earnings per share)             2007            2006              %

    Revenues                       $322,725        $277,133           16%
    Net Income Before Taxes         100,919          86,740           16%
    Net Income                       63,377          54,906           15%
    Diluted Earnings Per Share         $.62            $.54           15%


"We are satisfied with our quarterly results, especially since we are shifting into the execution stage of our new strategies," said Alfred P. West, Jr., SEI Chairman and CEO.

"We continue to be encouraged by the successful beta of the global wealth platform. The investments we are making are on schedule and our transformation is well underway. In the long run, we remain firm in our belief that what we are doing will help us provide our clients with increased opportunities for success and allow us to grow our future revenues and profits more rapidly."



             Summary of First-Quarter Results by Business Segment

    (In thousands)                    For the Three Month Period Ended
                                                   March 31,
                                        2007            2006             %
    Private Banks
      Revenues                        $97,738         $88,302           11%
      Expenses                         77,993          64,532           21%
      Operating Profit                $19,745         $23,770          (17%)
      Operating Margin                    20%             27%

    Investment Advisors:
      Revenues                         61,563          55,297           11%
      Expenses                         29,374          26,217           12%
      Operating Profit                 32,189          29,080           11%
      Operating Margin                    52%             53%

    Institutional Investors:
      Revenues                         46,629          38,528           21%
      Expenses                         28,173          24,450           15%
      Operating Profit                 18,456          14,078           31%
      Operating Margin                    40%             37%

    Investment Managers:
      Revenues                         33,994          27,285           25%
      Expenses                         24,902          22,473           11%
      Operating Profit                  9,092           4,812           89%
      Operating Margin                    27%             18%

    Investments in New Businesses:
      Revenues                          1,630           1,687           (3%)
      Expenses                          4,852           5,560          (13%)
      Operating Loss                   (3,222)         (3,873)          17%
      Operating Margin                    n/a             n/a

    LSV
      Revenues                         81,171          66,034           23%
      Expenses (1)                     49,897          40,938           22%
      Operating profit                 31,274          25,096           25%
                                          39%             38%
    Consolidated Segment Totals:
      Revenues                       $322,725        $277,133           16%
      Expenses                        215,191         184,170           17%
      Operating Profit               $107,534         $92,963           16%
      Operating Margin                    33%             34%

    (1) Includes $42,672 and $34,293 for the three month period ended March
        31, 2007 and 2006, respectively, of minority interest to the other
        partners of LSV.

A reconciliation of the totals reported for the business segments to the applicable line items in the Consolidated Statements of Income for the three month periods ended March 31, 2007 and 2006 are as follows:


                                                Three months ended March 31,
                                                       2007           2006

    Total operating profit from business segments   $107,534        $92,963

    Corporate overhead expenses                      (10,127)        (9,922)
    Minority interest reflected in segments           43,592         35,616
    LSV Employee Group Expenses (1)                   (1,820)        (1,806)

    Income from operations                          $139,179       $116,851

    (1) Includes $1,805 of Amortization expense related to intangible assets.
        The amortization is offset through Minority interest since SEI does
        not have any ownership in LSV Employee Group LLC.


    First-Quarter Business Commentary:

    -- First-quarter results reflect the consolidation of all of SEI's banking
       business into the Private Banks segment.  This consolidation has a
       positive effect on revenue growth rates and a negative effect on
       operating margins when compared to the Private Bank and Trust segment
       as reported in prior years.
    -- For the first time, year over year revenue comparisons reflect the
       consolidation of LSV in both reporting periods; resulting in more
       normal year over year revenue growth for the company.
    -- The company's percentage ownership in LSV remained at 43 percent. In
       the first-quarter 2007, the company recognized $31.3 million as its
       portion of the earnings from LSV versus $25.1 million in first-quarter
       2006.
    -- All major business segments reported double digit revenue gains
       versus year ago.
    -- The Investment Advisors, Institutional Investors, Investment Managers
       and LSV segments all realized double digit operating profit growth
       versus year ago levels.
    -- The tax rate for the first-quarter 2007 was just over 37%.
    -- Assets under management grew by $8.5 billion during first-quarter 2007
       to $190.0 billion.
    -- In the first-quarter 2007, SEI purchased 743,400 shares of its common
       stock for $45.3 million.

Earnings Conference Call

A conference call to review earnings is scheduled for 2:00 PM EDT on April 25, 2007. Investors may listen to the call at www.seic.com, 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 870768.

About SEI

SEI (Nasdaq: SEIC) is a leading global provider of outsourced asset management, investment processing and investment operations solutions. The company's innovative solutions help corporations, financial institutions, financial advisors, and affluent families create and manage wealth. As of March 31, 2007, through its subsidiaries and partnerships in which the company has a significant interest, SEI administers $382.4 billion in mutual fund and pooled assets and manages $190.0 billion in assets. SEI serves clients, conducts or is registered to conduct business and/or operations, from more than 20 offices in over a dozen 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.



                           SEI INVESTMENTS COMPANY
                      CONSOLIDATED STATEMENTS OF INCOME
                    (In thousands, except per share data)
                                 (unaudited)

                                                  Three Months Ended March 31,
                                                       2007           2006

    Asset Management, admin. and
     distribution fees                              $256,398       $213,712
    Information processing and
     software servicing fees                          54,232         50,246
    Transaction-based and trade execution fees        12,095         13,175

    Total Revenues                                   322,725        277,133

    Commissions and Fees                              42,637         35,638
    Compensation, benefits and other personnel        84,278         75,679
    Consulting, outsourcing and professional fees     20,879         18,078
    Data processing and computer related              10,767          8,598
    Facilities, supplies and other costs              17,560         15,035
    Depreciation and amortization                      7,425          7,254

    Total Expenses                                   183,546        160,282

    Income from operations                           139,179        116,851

    Minority Interest                                (40,734)       (32,956)
    Net loss on investments                             (316)          (242)
    Interest income                                    4,051          2,654
    Interest expense                                  (1,261)        (1,155)
    Other income                                          --          1,588

    Income before taxes                              100,919         86,740

    Income taxes                                      37,542         31,834

    Net income                                       $63,377        $54,906

    Diluted earnings per common share                   $.62           $.54

    Shares used to calculate diluted
     earnings per common share                       102,351        101,311

    Basic earnings per common share                     $.64           $.56

    Shares used to calculate basic
     earnings per common share                        98,957         98,758



                           SEI INVESTMENTS COMPANY
                           CONDENSED BALANCE SHEETS
                                (In thousands)

                                                  (unaudited)
                                                    March 31,     December 31,
                                                       2007           2006
    Assets

    Cash and short-term investments                 $271,485       $286,948
    Restricted Cash                                   10,250         10,250
    Receivables                                      250,869        244,599
    Securities owned                                  16,558         16,431
    Other current assets                              30,293         28,245

        Total current assets                         579,455        586,473

    Property and Equipment, net                      134,435        130,732
    Investments available for sale                    75,560         71,690
    Capitalized Software, net                        197,044        180,014
    Goodwill                                          22,842         22,842
    Intangible asset                                  65,922         67,836
    Other assets                                      21,456         20,118

        Total assets                              $1,096,714     $1,079,705

    Liabilities

    Current liabilities                             $148,355       $196,127
    Long-term debt                                    62,719         67,538
    Deferred income taxes                             79,871         76,148
    Other long term liabilities                       10,091             --
    Minority Interest                                117,269        109,380

    Shareholders' Equity                             678,409        630,512

        Total liabilities and
         shareholders' equity                     $1,096,714     $1,079,705



                           SEI INVESTMENTS COMPANY
                                ASSET BALANCES
                                (In millions)

                          Mar. 31,   Jun. 30,   Sep. 30,   Dec. 31,   Mar. 31,
                            2006       2006       2006       2006       2007
    Private Banks:
      Equity/Fixed
       Income prgms.      $14,322    $14,517    $15,055    $16,806    $18,196
      Collective Trust
       Fund prgm.           1,581      1,459      1,460      1,251      1,148
      Liquidity funds       7,139      7,627      7,707      8,513      8,241
      Total assets
       under mgmt.        $23,042    $23,603    $24,222    $26,570    $27,585
      Client assets
       under admin.        19,775     19,210     15,001     14,738     14,864
      Total assets        $42,817    $42,813    $39,223    $41,308    $42,449

    Investment Advisors:
      Equity/Fixed
       Income prgms.      $31,815    $30,948    $32,205    $34,096    $35,225
      Collective
       Trust Fund
       prgm.                2,482      2,473      2,425      2,480      2,491
      Liquidity funds       1,017      1,306      1,263      1,421      1,404
      Total assets
       under mgmt.        $35,314    $34,727    $35,893    $37,997    $39,120

    Institutional
     Investors:
      Equity/Fixed
       Income prgms.      $32,083    $32,709    $34,674    $37,720    $39,504
      Collective
       Trust Fund
       prgm.                1,157      1,147      1,150      1,081      1,078
      Liquidity funds       4,076      3,823      4,167      3,371      5,072
      Total assets
       under mgmt.        $37,316    $37,679    $39,991    $42,172    $45,654

    Investment Managers:
      Equity/Fixed
       Income prgms.          $33        $34        $34        $30        $29
      Collective
       Trust Fund
       prgm.                9,096      8,923      9,009      8,675      8,300
      Liquidity funds         505        363        253        215        178
      Total assets
       under mgmt.         $9,634     $9,320     $9,296     $8,920     $8,507

      Client assets
       under admin.       151,688    153,406    161,000    170,344    177,520
      Total assets       $161,322   $162,726   $170,296   $179,264   $186,027

    Investments in
     New Businesses:
      Equity/Fixed
       Income prgms.         $617       $626       $685       $805       $843
      Liquidity funds          67         49         64         53         43
      Total assets
       under admin           $684       $675       $749       $858       $886

    LSV Asset
     Management
      Equity/Fixed
       Income prgms.      $54,128    $55,687    $58,785    $64,970    $68,225

    Consolidated:
      Equity/Fixed
       Income
       prgms (A,B)       $132,998   $134,521   $141,438   $154,427   $162,022
      Collective
       Trust Fund
       prgm.               14,316     14,002     14,044     13,487     13,017
      Liquidity
       funds (B)           12,804     13,168     13,454     13,573     14,938
      Total assets
       under mgmt.       $160,118   $161,691   $168,936   $181,487   $189,977

      Client assets
       under admin.       171,463    172,616    176,001    185,082    192,384
      Total assets       $331,581   $334,307   $344,937   $366,569   $382,361

    (A) Equity/Fixed Income programs include $3,646 of assets invested in
        SEI's Asset Allocation Funds at 3/31/07
    (B) In addition to the numbers presented, SEI also administers an
        additional $9,115 in Funds of Funds assets (as of March 31, 2007) on
        which SEI does not earn an administration fee.

SOURCE SEI Investments Company