OAKS, PA — (Marketwire) — 05/02/12 — SEI Investments Company (NASDAQ: SEIC) today announced financial results for first-quarter 2012. Diluted earnings per share were $.28 in first-quarter 2012 compared to $.31 in first-quarter 2011.
“Strong new sales and improving revenues over fourth-quarter 2011 drove first-quarter 2012 results,” said Alfred P. West, Jr., SEI Chairman and CEO.
“Despite uncertainty in the financial markets, we are seeing buyers return to our markets. During 2012, we will continue to focus on sales results, improving productivity and service quality, and increasing profits. We are confident that the investments we are making will enable us to significantly increase shareholder value.”
First-Quarter Business Commentary:
Revenues increased in first-quarter 2012 as compared to first-quarter 2011 and to fourth-quarter 2011 due to an increase in Asset management, administrative, and distribution fee revenues from improved cash-flows and market appreciation in first-quarter 2012. Our average assets under management, excluding LSV, increased $9.6 billion, or eight percent, to $124.1 billion in the first-quarter 2012 as compared to $114.5 billion during the first-quarter 2011 (See attached Ending and Average Asset Balances schedules for further details).
Sales events, net of client losses, during first-quarter 2012 totaled approximately $26.1 million and are expected to generate net annualized recurring revenues of approximately $23.5 million when contract values are fully realized. These sales events resulted in an increase in sales compensation expense when compared to first-quarter 2011 of $1.8 million.
Total consolidated expenses in first-quarter 2012 include approximately an additional $1.8 million in fees for other asset management distribution costs and employee severance costs.
Net income attributable to SEI includes gains from SIV securities of $2.9 million in first-quarter 2012 compared to gains of $6.9 million in first-quarter 2011.
The effective tax rates were 37.2 percent in the first-quarter 2012, 37.1 percent in the first-quarter 2011 and 34.7 percent in the fourth-quarter 2011. The increase in the tax rate in the first-quarter 2012 as compared to the fourth-quarter 2011 was due to the expiration of the research and development tax credit in first-quarter 2012 and tax planning strategies which benefited the tax rate in fourth-quarter 2011.
In the first-quarter 2012, SEI purchased 1.8 million shares of its common stock for $37.7 million.
A conference call to review earnings is scheduled for 2:00 PM ET on May 2, 2012. Investors may listen to the call at or listen at , 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) 1-877-777-1972; (International) 612-332-0636, access code 245414.
SEI (NASDAQ: SEIC) is a leading global provider of investment processing, fund processing, and investment management business outsourcing solutions that help corporations, financial institutions, financial advisors, and ultra-high-net-worth families create and manage wealth. As of March 31, 2012, through its subsidiaries and partnerships in which the company has a significant interest, SEI manages or administers $428 billion in mutual fund and pooled or separately managed assets, including $189 billion in assets under management and $239 billion in client assets under administration. For more information, visit .
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.
Murray Louis
SEI
+1 610-676-1932
Dana Grosser
SEI
+1 610-676-2459