OAKS, PA — (Marketwire) — 07/21/11 — SEI Investments Company (NASDAQ: SEIC) today announced financial results for second-quarter 2011. Diluted earnings per share were $.29 in second-quarter 2011 compared to $.28 in second-quarter 2010.
“Our second-quarter results came in essentially flat versus both year-ago and first-quarter levels,” said Alfred P. West, Jr., SEI Chairman and CEO. “These results reflect the increased Global Wealth Platform spending, which is preparing us to launch GWP in the US for our bank and advisor segments. While we-re excited about the opportunity that GWP provides, we are not satisfied with short-term performance. We are working hard to increase revenues and control costs. While we believe our accelerated spending will continue to put pressure on financial results in the short-term, particularly in the banking segment, we are confident that we are well-positioned for long-term growth in all of our business segments.”
Second-Quarter Business Commentary:
Asset management, administration, and distribution fee revenues increased, primarily due to higher asset balances under management and administration from existing clients as a result of improved capital markets.
Assets under management increased $1.1 billion to $180.3 billion at June 30, 2011, as compared to $179.2 billion at March 31, 2011.
Sales events, net of client losses, during second-quarter 2011 totaled $9.0 million and are expected to generate net annualized recurring revenues of approximately $8.4 million.
Total consolidated expenses in second-quarter 2011 reflect increased spending on the Global Wealth Platform. During the second-quarter 2011, we incurred additional costs related to system enhancements to meet new and existing client requirements as well as production and maintenance costs to run the platform. These costs mainly include personnel, consulting, and outsourcing and are the primary cause for the expense increase in the Private Banks segment.
Prior-year Private Banks segment revenues and profits include $5.0 million of one-time contract termination fees from a bank client lost as a result of an acquisition.
Net income attributable to SEI includes losses from SIV securities of $1.9 million in second-quarter 2011 compared to gains of $3.9 million in second-quarter 2010.
The effective tax rates were 34.7 percent for the second-quarter 2011 as compared to 37.8 percent for the second-quarter 2010. The decrease in the tax rate was due to tax planning strategies.
In the second-quarter 2011, SEI purchased 2.5 million shares of its common stock for $55.7 million.
In the second-quarter 2011, we made a $20.0 million payment on our long-term debt. As of June 30, 2011, the remaining balance on our debt is $40.0 million.
A conference call to review earnings is scheduled for 2:00 PM ET on July 21, 2011. 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) 1-866-847-7860; (International) 703-639-1427, access code 210438.
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 June 30, 2011, through its subsidiaries and partnerships in which the company has a significant interest, SEI manages or administers $430 billion in mutual fund and pooled assets or separately managed assets, including $180 billion in assets under management and $250 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.
(A) Client assets under administration in the Investment Managers segment include $52.2 billion of assets balances that require limited services and therefore are at fee levels below our normal full service assets (as of June 30, 2011).
(B) Equity/Fixed Income programs include $2.4 billion of assets invested in various asset allocation funds at June 30, 2011.
(C) In addition to the numbers presented, SEI also administers an additional $4.7 billion in Funds of Funds assets (as of June 30, 2011) on which SEI does not earn an administration fee.
Murray Louis
SEI
(610) 676-1932
Dana Grosser
SEI
(610) 676-2459