OAKS, Pa., July 19, 2018 /PRNewswire/ -- SEI Investments Company (NASDAQ: SEIC) today announced financial results for the second-quarter 2018. Diluted earnings per share were $0.75 in second-quarter 2018 compared to $0.57 in second-quarter 2017.
Consolidated Overview |
||||||||||||||||
(In thousands, except |
For the Three Months |
For the Six Months |
||||||||||||||
2018 |
2017 |
% |
2018 |
2017 |
% | |||||||||||
Revenues |
$404,830 |
$372,331 |
9% |
$810,428 |
$732,315 |
11% | ||||||||||
Net income |
121,677 |
91,769 |
33% |
261,515 |
180,506 |
45% | ||||||||||
Diluted earnings per share |
$0.75 |
$0.57 |
32% |
$1.61 |
$1.11 |
45% |
"Second-quarter financial results reflect increased adoption of our solutions across our markets, as well as continued migration to SEI's platforms, most notably the SEI Wealth PlatformSM," said Alfred P. West, Jr., SEI Chairman and CEO.
"We continue to acquire new clients, enhance our platforms, and create scale while executing our long-term strategy. We feel that this puts us on track to generate sustainable growth for our shareholders."
Summary of Second-Quarter Results by Business Segment | ||||||||||||||||
(In thousands) |
For the Three Months |
For the Six Months |
||||||||||||||
2018 |
2017 |
% |
2018 |
2017 |
% | |||||||||||
Private Banks: |
||||||||||||||||
Revenues |
$121,126 |
$116,184 |
4% |
$243,290 |
$228,818 |
6% | ||||||||||
Expenses |
114,842 |
112,353 |
2% |
227,044 |
220,903 |
3% | ||||||||||
Operating Profit |
6,284 |
3,831 |
64% |
16,246 |
7,915 |
105% | ||||||||||
Operating Margin |
5 |
% |
3 |
% |
7 |
% |
3 |
% |
||||||||
Investment Advisors: |
||||||||||||||||
Revenues |
99,890 |
92,746 |
8% |
199,082 |
180,984 |
10% | ||||||||||
Expenses |
53,052 |
49,380 |
7% |
105,505 |
96,919 |
9% | ||||||||||
Operating Profit |
46,838 |
43,366 |
8% |
93,577 |
84,065 |
11% | ||||||||||
Operating Margin |
47 |
% |
47 |
% |
47 |
% |
46 |
% |
||||||||
Institutional Investors: |
||||||||||||||||
Revenues |
83,434 |
78,068 |
7% |
168,925 |
155,072 |
9% | ||||||||||
Expenses |
40,871 |
38,668 |
6% |
82,120 |
77,496 |
6% | ||||||||||
Operating Profit |
42,563 |
39,400 |
8% |
86,805 |
77,576 |
12% | ||||||||||
Operating Margin |
51 |
% |
50 |
% |
51 |
% |
50 |
% |
||||||||
Investment Managers: |
||||||||||||||||
Revenues |
97,566 |
83,616 |
17% |
194,421 |
164,103 |
18% | ||||||||||
Expenses |
63,321 |
53,847 |
18% |
126,659 |
105,912 |
20% | ||||||||||
Operating Profit |
34,245 |
29,769 |
15% |
67,762 |
58,191 |
16% | ||||||||||
Operating Margin |
35 |
% |
36 |
% |
35 |
% |
35 |
% |
||||||||
Investments in New Businesses: |
||||||||||||||||
Revenues |
2,814 |
1,717 |
64% |
4,710 |
3,338 |
41% | ||||||||||
Expenses |
5,940 |
5,124 |
16% |
11,038 |
10,004 |
10% | ||||||||||
Operating Loss |
(3,126) |
(3,407) |
NM |
(6,328) |
(6,666) |
NM | ||||||||||
Totals: |
||||||||||||||||
Revenues |
$404,830 |
$372,331 |
9% |
$810,428 |
$732,315 |
11% | ||||||||||
Expenses |
278,026 |
259,372 |
7% |
552,366 |
511,234 |
8% | ||||||||||
Corporate overhead expenses |
16,514 |
15,732 |
5% |
31,456 |
30,337 |
4% | ||||||||||
Income from operations |
$110,290 |
$97,227 |
13% |
$226,606 |
$190,744 |
19% |
Second-Quarter Business Highlights:
Earnings Conference Call
A conference call to review earnings is scheduled for 4:30 p.m. Eastern time on July 19, 2018. Investors may listen to the call at seic.com/ir-events. Investors may also listen to a replay by telephone at (USA) 800-475-6701; (International) 320-365-3844, access code 451477.
About SEI
Now in its 50th year of business, 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 June 30, 2018, through its subsidiaries and partnerships in which the company has a significant interest, SEI manages, advises or administers $882 billion in hedge, private equity, mutual fund and pooled or separately managed assets, including $331 billion in assets under management and $545 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, including our expectations as to the revenue that we believe will be generated by sales events that occurred during the quarter. 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.
Investor Contact: |
Media Contact: |
Lindsey Opsahl |
Leslie Wojcik |
SEI |
SEI |
+1 610-676-4052 |
+1 610-676-4191 |
SEI INVESTMENTS COMPANY | ||||||||||||
CONSOLIDATED STATEMENTS OF OPERATIONS | ||||||||||||
(In thousands, except per share data) | ||||||||||||
(Unaudited) | ||||||||||||
For the Three Months |
For the Six Months | |||||||||||
2018 |
2017 |
2018 |
2017 | |||||||||
Asset management, admin. and distribution fees |
$316,508 |
$289,682 |
$632,717 |
$569,143 |
||||||||
Information processing and software servicing fees |
88,322 |
82,649 |
177,711 |
163,172 |
||||||||
Total revenues |
404,830 |
372,331 |
810,428 |
732,315 |
||||||||
Subadvisory, distribution and other asset mgmt. costs |
45,209 |
43,907 |
90,414 |
87,059 |
||||||||
Software royalties and other information processing costs |
7,977 |
11,319 |
16,695 |
23,290 |
||||||||
Compensation, benefits and other personnel |
127,375 |
109,555 |
251,652 |
218,498 |
||||||||
Stock-based compensation |
5,323 |
6,259 |
10,518 |
12,439 |
||||||||
Consulting, outsourcing and professional fees |
50,441 |
48,335 |
99,148 |
91,484 |
||||||||
Data processing and computer related |
21,133 |
18,990 |
41,724 |
37,315 |
||||||||
Facilities, supplies and other costs |
17,783 |
17,575 |
35,396 |
33,500 |
||||||||
Amortization |
12,161 |
12,565 |
24,015 |
24,587 |
||||||||
Depreciation |
7,138 |
6,599 |
14,260 |
13,399 |
||||||||
Total expenses |
294,540 |
275,104 |
583,822 |
541,571 |
||||||||
Income from operations |
110,290 |
97,227 |
226,606 |
190,744 |
||||||||
Net (loss) gain on investments |
(139) |
44 |
(549) |
391 |
||||||||
Interest and dividend income |
3,162 |
1,686 |
5,664 |
3,029 |
||||||||
Interest expense |
(132) |
(114) |
(389) |
(226) |
||||||||
Equity in earnings of unconsolidated affiliate |
41,073 |
36,315 |
81,680 |
69,880 |
||||||||
Income before income taxes |
154,254 |
135,158 |
313,012 |
263,818 |
||||||||
Income taxes |
32,577 |
43,389 |
51,497 |
83,312 |
||||||||
Net income |
$121,677 |
$91,769 |
$261,515 |
$180,506 |
||||||||
Basic earnings per common share |
$0.77 |
$0.58 |
$1.66 |
$1.14 |
||||||||
Shares used to calculate basic earnings per share |
157,542 |
158,325 |
157,488 |
158,708 |
||||||||
Diluted earnings per common share |
$0.75 |
$0.57 |
$1.61 |
$1.11 |
||||||||
Shares used to calculate diluted earnings per share |
162,225 |
161,709 |
162,825 |
162,226 |
||||||||
Dividends declared per common share |
$0.30 |
$0.28 |
$0.30 |
$0.28 |
SEI INVESTMENTS COMPANY | ||||||
CONSOLIDATED BALANCE SHEETS | ||||||
(In thousands) | ||||||
(Unaudited) | ||||||
June 30, |
December 31, | |||||
2018 |
2017 | |||||
Assets |
||||||
Current Assets: |
||||||
Cash and cash equivalents |
$693,442 |
$744,247 |
||||
Restricted cash |
3,509 |
3,505 |
||||
Receivables from investment products |
53,386 |
56,666 |
||||
Receivables, net of allowance for doubtful accounts of $605 and $695 |
314,631 |
282,706 |
||||
Securities owned |
28,981 |
21,526 |
||||
Other current assets |
36,248 |
31,158 |
||||
Total Current Assets |
1,130,197 |
1,139,808 |
||||
Property and Equipment, net of accumulated depreciation of $323,992 and $309,955 |
144,330 |
146,428 |
||||
Capitalized Software, net of accumulated amortization of $372,249 and $350,045 |
312,814 |
310,405 |
||||
Investments Available for Sale |
89,019 |
87,983 |
||||
Investments in Affiliated Funds, at fair value |
5,739 |
6,034 |
||||
Investment in Unconsolidated Affiliate |
51,810 |
59,492 |
||||
Goodwill |
65,249 |
52,990 |
||||
Intangible Assets, net of accumulated amortization of $3,248 and $1,552 |
33,852 |
28,578 |
||||
Deferred Contract Costs |
21,521 |
? |
||||
Deferred Income Taxes |
2,360 |
2,767 |
||||
Other Assets, net |
33,815 |
18,884 |
||||
Total Assets |
$1,890,706 |
$1,853,369 |
||||
Liabilities and Equity |
||||||
Current Liabilities: |
||||||
Accounts payable |
$7,519 |
$5,268 |
||||
Accrued liabilities |
193,832 |
265,058 |
||||
Deferred revenue |
5,587 |
4,723 |
||||
Total Current Liabilities |
206,938 |
275,049 |
||||
Borrowings Under Revolving Credit Facility |
? |
30,000 |
||||
Long-term Taxes Payable |
9,629 |
10,629 |
||||
Deferred Income Taxes |
56,871 |
48,472 |
||||
Other Long-term Liabilities |
26,386 |
12,380 |
||||
Total Liabilities |
299,824 |
376,530 |
||||
Shareholders' Equity: |
||||||
Common stock, $.01 par value, 750,000 shares authorized; 156,800 and 157,069 |
1,568 |
1,571 |
||||
Capital in excess of par value |
1,094,771 |
1,027,709 |
||||
Retained earnings |
522,764 |
467,467 |
||||
Accumulated other comprehensive loss, net |
(28,221) |
(19,908) |
||||
Total Shareholders' Equity |
1,590,882 |
1,476,839 |
||||
Total Liabilities and Shareholders' Equity |
$1,890,706 |
$1,853,369 |
ENDING ASSET BALANCES | ||||||||||||||||
(In millions) (Unaudited) | ||||||||||||||||
Jun. 30, |
Sept. 30, |
Dec 31, |
Mar. 31, |
Jun. 30, | ||||||||||||
2017 |
2017 |
2017 |
2018 |
2018 | ||||||||||||
Private Banks: |
||||||||||||||||
Equity and fixed-income programs |
$20,185 |
$21,196 |
$22,764 |
$22,917 |
$22,448 |
|||||||||||
Collective trust fund programs |
4 |
4 |
4 |
4 |
4 |
|||||||||||
Liquidity funds |
3,589 |
3,345 |
3,864 |
3,537 |
3,471 |
|||||||||||
Total assets under management |
$23,778 |
$24,545 |
$26,632 |
$26,458 |
$25,923 |
|||||||||||
Client assets under administration |
20,951 |
22,107 |
22,980 |
22,411 |
22,435 |
|||||||||||
Total assets |
$44,729 |
$46,652 |
$49,612 |
$48,869 |
$48,358 |
|||||||||||
Investment Advisors: |
||||||||||||||||
Equity and fixed-income programs |
$57,358 |
$59,455 |
$61,908 |
$62,176 |
$62,227 |
|||||||||||
Collective trust fund programs |
5 |
5 |
5 |
5 |
5 |
|||||||||||
Liquidity funds |
2,451 |
2,327 |
2,414 |
2,399 |
3,101 |
|||||||||||
Total assets under management |
$59,814 |
$61,787 |
$64,327 |
$64,580 |
$65,333 |
|||||||||||
Institutional Investors: |
||||||||||||||||
Equity and fixed-income programs |
$81,723 |
$85,763 |
$87,587 |
$85,607 |
$83,687 |
|||||||||||
Collective trust fund programs |
80 |
82 |
78 |
72 |
73 |
|||||||||||
Liquidity funds |
2,468 |
3,699 |
2,937 |
2,727 |
2,594 |
|||||||||||
Total assets under management |
$84,271 |
$89,544 |
$90,602 |
$88,406 |
$86,354 |
|||||||||||
Advised assets |
4,255 |
3,626 |
3,942 |
4,185 |
4,544 |
|||||||||||
Total assets |
$88,526 |
$93,170 |
$94,544 |
$92,591 |
$90,898 |
|||||||||||
Investment Managers: |
||||||||||||||||
Equity and fixed-income programs |
$92 |
$93 |
$96 |
$97 |
$95 |
|||||||||||
Collective trust fund programs |
42,662 |
46,087 |
49,340 |
45,062 |
45,213 |
|||||||||||
Liquidity funds |
999 |
799 |
743 |
732 |
496 |
|||||||||||
Total assets under management |
$43,753 |
$46,979 |
$50,179 |
$45,891 |
$45,804 |
|||||||||||
Client assets under administration (A) |
476,543 |
493,538 |
495,447 |
507,694 |
522,700 |
|||||||||||
Total assets |
$520,296 |
$540,517 |
$545,626 |
$553,585 |
$568,504 |
|||||||||||
Investments in New Businesses: |
||||||||||||||||
Equity and fixed-income programs |
$997 |
$1,052 |
$1,104 |
$1,114 |
$1,120 |
|||||||||||
Liquidity funds |
46 |
71 |
53 |
72 |
106 |
|||||||||||
Total assets under management |
$1,043 |
$1,123 |
$1,157 |
$1,186 |
$1,226 |
|||||||||||
Advised assets |
69 |
54 |
49 |
49 |
807 |
|||||||||||
Total assets |
$1,112 |
$1,177 |
$1,206 |
$1,235 |
$2,033 |
|||||||||||
LSV Asset Management: |
||||||||||||||||
Equity and fixed-income programs (B) |
$95,700 |
$102,901 |
$107,690 |
$108,186 |
$106,505 |
|||||||||||
Total: |
||||||||||||||||
Equity and fixed-income programs (C) |
$256,055 |
$270,460 |
$281,149 |
$280,097 |
$276,082 |
|||||||||||
Collective trust fund programs |
42,751 |
46,178 |
49,427 |
45,143 |
45,295 |
|||||||||||
Liquidity funds |
9,553 |
10,241 |
10,011 |
9,467 |
9,768 |
|||||||||||
Total assets under management |
$308,359 |
$326,879 |
$340,587 |
$334,707 |
$331,145 |
|||||||||||
Advised assets |
4,324 |
3,680 |
3,991 |
4,234 |
5,351 |
|||||||||||
Client assets under administration (D) |
497,494 |
515,645 |
518,427 |
530,105 |
545,135 |
|||||||||||
Total assets |
$810,177 |
$846,204 |
$863,005 |
$869,046 |
$881,631 |
|||||||||||
(A) Client assets under administration in the Investment Managers segment include $42.7 billion of assets that require limited | ||||||||||||||||
(B) Equity and fixed-income programs include assets managed by LSV in which fees are based on performance only. A portion | ||||||||||||||||
(C) Equity and fixed-income programs include $5.7 billion of assets invested in various asset allocation funds at June 30, 2018. | ||||||||||||||||
(D) In addition to the numbers presented, SEI also administers an additional $11.6 billion in Funds of Funds assets (as of |
AVERAGE ASSET BALANCES | ||||||||||||||||
(In millions) (Unaudited) | ||||||||||||||||
2nd Qtr. |
3rd Qtr. |
4th Qtr. |
1st Qtr. |
2nd Qtr. | ||||||||||||
2017 |
2017 |
2017 |
2018 |
2018 | ||||||||||||
Private Banks: |
||||||||||||||||
Equity and fixed-income programs |
$19,610 |
$20,699 |
$21,748 |
$23,412 |
$22,870 |
|||||||||||
Collective trust fund programs |
5 |
4 |
4 |
4 |
4 |
|||||||||||
Liquidity funds |
3,677 |
3,555 |
3,584 |
3,720 |
3,516 |
|||||||||||
Total assets under management |
$23,292 |
$24,258 |
$25,336 |
$27,136 |
$26,390 |
|||||||||||
Client assets under administration |
21,166 |
21,441 |
22,759 |
23,398 |
22,605 |
|||||||||||
Total assets |
$44,458 |
$45,699 |
$48,095 |
$50,534 |
$48,995 |
|||||||||||
Investment Advisors: |
||||||||||||||||
Equity and fixed-income programs |
$56,319 |
$58,406 |
$60,730 |
$62,650 |
$62,890 |
|||||||||||
Collective trust fund programs |
5 |
5 |
5 |
5 |
5 |
|||||||||||
Liquidity funds |
2,390 |
2,335 |
2,235 |
2,290 |
2,429 |
|||||||||||
Total assets under management |
$58,714 |
$60,746 |
$62,970 |
$64,945 |
$65,324 |
|||||||||||
Institutional Investors: |
||||||||||||||||
Equity and fixed-income programs |
$80,561 |
$84,520 |
$86,573 |
$87,207 |
$85,045 |
|||||||||||
Collective trust fund programs |
85 |
80 |
80 |
77 |
72 |
|||||||||||
Liquidity funds |
2,861 |
3,177 |
3,052 |
2,905 |
2,621 |
|||||||||||
Total assets under management |
$83,507 |
$87,777 |
$89,705 |
$90,189 |
$87,738 |
|||||||||||
Advised assets |
3,687 |
3,552 |
3,796 |
4,383 |
4,301 |
|||||||||||
Total assets |
$87,194 |
$91,329 |
$93,501 |
$94,572 |
$92,039 |
|||||||||||
Investment Managers: |
||||||||||||||||
Equity and fixed-income programs |
$84 |
$92 |
$99 |
$96 |
$109 |
|||||||||||
Collective trust fund programs |
41,615 |
44,824 |
47,772 |
49,243 |
45,646 |
|||||||||||
Liquidity funds |
937 |
952 |
843 |
834 |
649 |
|||||||||||
Total assets under management |
$42,636 |
$45,868 |
$48,714 |
$50,173 |
$46,404 |
|||||||||||
Client assets under administration (A) |
470,701 |
486,158 |
494,201 |
506,951 |
522,679 |
|||||||||||
Total assets |
$513,337 |
$532,026 |
$542,915 |
$557,124 |
$569,083 |
|||||||||||
Investments in New Businesses: |
||||||||||||||||
Equity and fixed-income programs |
$954 |
$1,016 |
$1,079 |
$1,105 |
$1,090 |
|||||||||||
Liquidity funds |
64 |
55 |
54 |
70 |
95 |
|||||||||||
Total assets under management |
$1,018 |
$1,071 |
$1,133 |
$1,175 |
$1,185 |
|||||||||||
Advised assets |
73 |
73 |
50 |
50 |
813 |
|||||||||||
Total assets |
$1,091 |
$1,144 |
$1,183 |
$1,225 |
$1,998 |
|||||||||||
LSV Asset Management: |
||||||||||||||||
Equity and fixed-income programs (B) |
$94,010 |
$100,244 |
$106,112 |
$109,904 |
$108,380 |
|||||||||||
Total: |
||||||||||||||||
Equity and fixed-income programs |
$251,538 |
$264,977 |
$276,341 |
$284,374 |
$280,384 |
|||||||||||
Collective trust fund programs |
41,710 |
44,913 |
47,861 |
49,329 |
45,727 |
|||||||||||
Liquidity funds |
9,929 |
10,074 |
9,768 |
9,819 |
9,310 |
|||||||||||
Total assets under management |
$303,177 |
$319,964 |
$333,970 |
$343,522 |
$335,421 |
|||||||||||
Advised assets |
3,760 |
3,625 |
3,846 |
4,433 |
5,114 |
|||||||||||
Client assets under administration |
491,867 |
507,599 |
516,960 |
530,349 |
545,284 |
|||||||||||
Total assets |
$798,804 |
$831,188 |
$854,776 |
$878,304 |
$885,819 |
|||||||||||
(A) Client assets under administration in the Investment Managers segment in Q2 2018 include approximately $13.9 billion of | ||||||||||||||||
(B) Equity and fixed-income programs include assets managed by LSV in which fees are based on performance only. A portion |
SOURCE SEI Investments Company
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