OAKS, PA — (Marketwired) — 10/22/14 — SEI Investments Company (NASDAQ: SEIC) today announced financial results for the third-quarter 2014. Diluted earnings per share were $.49 in third-quarter 2014 compared to $.38 in third-quarter 2013. Our tax rate during third-quarter 2014 was 34.7 percent compared to 28.5 percent in third-quarter 2013. This differential in our tax rate equates to a positive impact of $.03 diluted earnings per share to our third-quarter 2013 earnings.
“Third-quarter results reflect ongoing progress across all of our business segments,” said Alfred P. West, Jr., SEI Chairman and CEO. “SEI–s continued success reflects our clients– recognition of the value of our solutions. Our financial results affirm the strength of our diversified portfolio of offerings, and, as always, we remain committed to long-term sustainable growth and increasing shareholder value.”
Revenues increased in third-quarter 2014 as compared to both third-quarter 2013 and second-quarter 2014. 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 $24.6 billion, or 17 percent, to $168.5 billion in the third-quarter 2014, as compared to $143.9 billion during the third-quarter 2013, and increased $4.1 billion, or three percent, as compared to $164.3 billion during the second-quarter 2014.
Our average assets under administration increased $54.0 billion, or 18 percent, to $360.4 billion in the third-quarter 2014, as compared to $306.4 billion during the third-quarter 2013, and increased $11.9 billion, or three percent, as compared to $348.4 billion during the second-quarter 2014 (see attached Ending and Average Asset Balances schedules for further details).
Revenue growth was also driven by increased information processing fees in our Private Banks segment. The increase was primarily attributable to higher fees from the growth in assets processed on the SEI Wealth Platform(SM).
Sales events, net of client losses, during third-quarter 2014 totaled approximately $27.5 million and are expected to generate net annualized recurring revenues of approximately $25.6 million when contract values are fully realized.
All four core business segments realized revenue and profit margin growth as compared to third-quarter 2013 results. Operating margins in all four core business segments improved primarily from increased recurring revenues generated from the higher levels of assets under management and administration.
Income from LSV increased $6.9 million, or 22 percent, to $38.2 million in third-quarter 2014 as compared to $31.3 million in third-quarter 2013 due to an increase in assets under management from market appreciation and an increase in performance fees earned by LSV.
Stock-based compensation expense during the third-quarter 2014 decreased by $7.3 million primarily due to the acceleration of expense recognition during the comparable period of 2013 for stock options that achieved performance vesting targets earlier than originally estimated.
Amortization expense related to capitalized software increased to $9.8 million during the third-quarter 2014 as compared to $8.8 million during the third-quarter 2013 due to continued releases of the SEI Wealth Platform(SM).
The effective tax rates were 34.7 percent in third-quarter 2014, 28.5 percent in third-quarter 2013, and 35.7 percent in second-quarter 2014. Our third-quarter 2013 tax rate benefited by a one-time adjustment due to a Pennsylvania Tax Law change enacted on July 18, 2013.
In third-quarter 2014, we repurchased 2.0 million shares of our common stock for $75.2 million.
A conference call to review earnings is scheduled for 2 p.m. Eastern time on October 22, 2014. Investors may listen to the call at . 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 339136.
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 September 30, 2014, through its subsidiaries and partnerships in which the company has a significant interest, SEI manages or administers $612 billion in mutual fund and pooled or separately managed assets, including $249 billion in assets under management and $363 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.
Nicole Vattimo
SEI
+1 610-676-4385
Dana Grosser
SEI
+1 610-676-2459