/EINPresswire.com/ -- OAKS, PA -- (Marketwired) -- 07/27/16 -- SEI Investments Company (NASDAQ: SEIC) today announced financial results for the second-quarter 2016. Diluted earnings per share were $.49 in second-quarter 2016 compared to $.51 in second-quarter 2015.

Consolidated Overview
                           For the Three              For the Six
(In thousands, except         Months                    Months
 earnings per share)       Ended June 30,            Ended June 30,
                           2016     2015     %       2016     2015     %
                         -------- -------- -----   -------- -------- -----

Revenues                 $343,831 $337,745     2%  $678,094 $663,189     2%
Net income                 81,005   86,240    (6)%  158,502  170,851    (7)%
Diluted earnings per
 share                   $   0.49 $   0.51    (4)% $   0.96 $   1.00    (4)%

"Our second-quarter results reflect the broad market adoption of our solutions across our business segments," said Alfred P. West, Jr., SEI Chairman and CEO. "The new client signings and growth of existing client relationships demonstrate the success we are having in our markets.

"Our larger and more complex client signings are proof of our ability to compete successfully in highly regulated, dynamic markets. Implementing these clients and sustaining this success requires an increase in our technology and operational investments. These investments position us to deliver long-term sustainable growth and increased shareholder value."

Summary of Second-Quarter Results by Business Segment

                        For the Three
                           Months                For the Six Months
(In thousands)         Ended June 30,              Ended June 30,
                       2016      2015      %       2016      2015      %
                     --------  --------  -----   --------  --------  -----
Private Banks:
  Revenues           $114,836  $115,333     --%  $228,197  $226,546      1%
  Expenses            102,862   104,727     (2)%  206,603   203,983      1%
                     --------  --------          --------  --------
  Operating Profit     11,974    10,606     13%    21,594    22,563     (4)%
  Gain on sale of
   subsidiary              --        --     --%     2,791     2,791     --%
                     --------  --------          --------  --------
  Segment Profit       11,974    10,606     13%    24,385    25,354     (4)%
  Operating Margin
   (A)                     10%        9%                9%       10%

Investment Advisors:
  Revenues             81,883    77,753      5%   158,562   151,768      4%
  Expenses             44,721    40,857      9%    89,495    79,916     12%
                     --------  --------          --------  --------
  Operating Profit     37,162    36,896      1%    69,067    71,852     (4)%
  Operating Margin         45%       47%               44%       47%

Institutional
 Investors:
  Revenues             74,674    75,980     (2)%  147,571   149,528     (1)%
  Expenses             36,550    36,528     --%    71,932    71,739     --%
                     --------  --------          --------  --------
  Operating Profit     38,124    39,452     (3)%   75,639    77,789     (3)%
  Operating Margin         51%       52%               51%       52%

Investment Managers:
  Revenues             70,938    67,280      5%   140,856   132,647      6%
  Expenses             46,968    42,141     11%    92,243    82,764     11%
                     --------  --------          --------  --------
  Operating Profit     23,970    25,139     (5)%   48,613    49,883     (3)%
  Operating Margin         34%       37%               35%       38%

Investments in New
 Businesses:
  Revenues              1,500     1,399      7%     2,908     2,700      8%
  Expenses              5,355     4,803     11%    10,587     9,669      9%
                     --------  --------          --------  --------
  Operating Loss       (3,855)   (3,404)    NM     (7,679)   (6,969)    NM

Totals:
  Revenues           $343,831  $337,745      2%  $678,094  $663,189      2%
  Expenses            236,456   229,056      3%   470,860   448,071      5%
  Corporate overhead
   expenses            13,852    12,771      8%    26,899    26,130      3%
                     --------  --------          --------  --------
  Income from
   operations        $ 93,523  $ 95,918     (2)% $180,335  $188,988     (5)%
                     ========  ========          ========  ========
(A) Percentages determined exclusive of gain on sale of subsidiary.

Second-Quarter Business Highlights:

• Revenue growth in the quarter was primarily driven by higher Asset management, administration, and distribution fees from improved cash flows from new and existing clients. The market volatility occurring during the course of the preceding 12 months negatively impacted our asset-based fee revenues and partially offset our revenue growth.
• Sales events, net of client losses, during second-quarter 2016 totaled approximately $29.1 million and are expected to generate net annualized recurring revenues of approximately $23.4 million when contract values are fully realized.
• Our average assets under management, excluding LSV, increased $11.9 billion, or seven percent, to $189.1 billion, as compared to $177.1 billion during the second-quarter 2015 (see attached Average Asset Balances schedules for further details).
• Our average assets under administration increased $37.5 billion, or nine percent, to $433.7 billion in the second-quarter 2016, as compared to $396.2 billion during the second-quarter 2015 (see attached Average Asset Balances schedules for further details).
• Our earnings from LSV decreased by $8.0 million, or 21 percent, to $30.3 million in second-quarter 2016 as compared to $38.3 million in second-quarter 2015. The decline in earnings was due to lower assets under management from market volatility and reduced performance fees.
• We capitalized $10.1 million and $8.1 million of software development costs in second-quarter 2016 and 2015, respectively, of which $8.5 million and $6.3 million are related to continued enhancements to the SEI Wealth Platform.
• Amortization expense related to the SEI Wealth Platform increased to $11.1 million during the second-quarter 2016 as compared to $10.6 million during the second-quarter 2015 due to continued enhancements.
• Our operating expenses, primarily personnel costs, in our Investment Advisors and Investment Managers segments increased. These expenses primarily consist of operational and marketing costs and are mainly related to servicing existing clients and acquiring new clients. Additionally, sales compensation expense in our Investment Managers segment increased due to new business activity.
• The strengthening of the U.S. dollar against the British pound and Canadian dollar during 2016 negatively impacted our revenues and operating income of our Private Banks and Institutional Investors segments. A prolonged period of a strengthening U.S. dollar against these currencies could have a further negative impact to our revenues and operating profits of these segments.
• Our effective tax rates were 35.2 percent in second-quarter 2016 and 35.6 percent in second-quarter 2015.
• We repurchased 1.5 million shares of our common stock for $73.5 million during the second-quarter 2016.

Earnings Conference Call
A conference call to review earnings is scheduled for 2 p.m. Eastern time on July 27, 2016. Investors may listen to the call at seic.com/investors. 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 398089.

About SEI
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, 2016, through its subsidiaries and partnerships in which the company has a significant interest, SEI manages or administers $707 billion in mutual fund and pooled or separately managed assets, including $269 billion in assets under management and $438 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. 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 OPERATIONS
                    (In thousands, except per share data)
                                 (Unaudited)

                                 For the Three Months   For the Six Months
                                    Ended June 30,        Ended June 30,
                                 --------------------  --------------------
                                    2016       2015       2016       2015
                                 ---------  ---------  ---------  ---------

Asset management, admin. and
 distribution fees               $ 262,275  $ 256,748  $ 513,712  $ 503,516
Information processing and
 software servicing fees            74,992     73,699    148,391    144,352
Transaction-based and trade
 execution fees                      6,564      7,298     15,991     15,321
                                 ---------  ---------  ---------  ---------

Total revenues                     343,831    337,745    678,094    663,189

Subadvisory, distribution and
 other asset mgmt costs             40,870     40,872     80,065     79,389
Software royalties and other
 information processing costs        7,677      8,057     15,425     15,566
Brokerage commissions                5,093      5,431     12,201     11,403
Compensation, benefits and other
 personnel                         102,282     98,999    204,213    193,185
Stock-based compensation             4,189      3,859      7,978      7,609
Consulting, outsourcing and
 professional fees                  39,575     36,969     78,081     72,597
Data processing and computer
 related                            15,782     14,527     31,500     27,927
Facilities, supplies and other
 costs                              17,122     16,659     33,119     33,718
Amortization                        11,284     10,611     22,296     20,969
Depreciation                         6,434      5,843     12,881     11,838
                                 ---------  ---------  ---------  ---------

Total expenses                     250,308    241,827    497,759    474,201

Income from operations              93,523     95,918    180,335    188,988

Net gain (loss) on investments         250        (38)       124        212
Interest and dividend income         1,033        755      2,116      1,724
Interest expense                      (187)      (114)      (301)      (227)
Equity in earnings of
 unconsolidated affiliates          30,285     37,289     59,477     71,322
Gain on sale of subsidiary              --         --      2,791      2,791
                                 ---------  ---------  ---------  ---------

Income before income taxes         124,904    133,810    244,542    264,810

Income taxes                        43,899     47,570     86,040     93,959
                                 ---------  ---------  ---------  ---------

Net income                          81,005     86,240    158,502    170,851
                                 ---------  ---------  ---------  ---------

Basic earnings per common share  $    0.50  $    0.52  $    0.98  $    1.03
                                 =========  =========  =========  =========

Shares used to calculate basic
 earnings per share                161,795    166,152    162,404    166,423
                                 =========  =========  =========  =========

Diluted earnings per common
 share                           $    0.49  $    0.51  $    0.96  $    1.00
                                 =========  =========  =========  =========

Shares used to calculate diluted
 earnings per share                165,088    169,973    165,616    170,338
                                 =========  =========  =========  =========

Dividends declared per common
 share                           $    0.26  $    0.24  $    0.26  $    0.24
                                 =========  =========  =========  =========


                           SEI INVESTMENTS COMPANY
                         CONSOLIDATED BALANCE SHEETS
                               (In thousands)
                                 (Unaudited)

                                                    June 30,   December 31,
                                                      2016         2015
                                                  -----------  ------------
Assets
  Current Assets:
    Cash and cash equivalents                     $   594,767  $    679,661
    Restricted cash                                     5,500         5,500
    Receivables from investment products               47,066        48,098
    Receivables, net of allowance for doubtful
     accounts of $946 and $649                        242,084       223,023
    Securities owned                                   21,290        21,235
    Other current assets                               30,213        26,207
                                                  -----------  ------------
      Total Current Assets                            940,920     1,003,724

  Property and Equipment, net of accumulated
   depreciation of $272,292 and $259,501              138,696       143,977
  Capitalized Software, net of accumulated
   amortization of $281,407 and $259,358              288,070       290,522
  Investments Available for Sale                       88,372        81,294
  Investments in Affiliated Funds, at fair value        4,420         4,039
  Investment in Unconsolidated Affiliates              41,996        49,580
  Deferred Income Taxes                                 4,041            --
  Other Assets, net                                    13,856        15,492
                                                  -----------  ------------
      Total Assets                                $ 1,520,371  $  1,588,628
                                                  ===========  ============

Liabilities and Equity
  Current Liabilities:
    Accounts payable                              $     3,541  $      4,511
    Accrued liabilities                               145,717       217,587
    Deferred revenue                                    3,479         2,385
                                                  -----------  ------------
      Total Current Liabilities                       152,737       224,483

  Deferred Income Taxes                                67,089        63,028
  Other Long-term Liabilities                          12,262        11,397
                                                  -----------  ------------
      Total Liabilities                               232,088       298,908

  Shareholders' Equity:
    Common stock, $.01 par value, 750,000 shares
     authorized; 161,191 and 163,733 shares
     issued and outstanding                             1,612         1,637
    Capital in excess of par value                    933,434       910,513
    Retained earnings                                 380,664       402,860
    Accumulated other comprehensive loss, net         (27,427)      (25,290)
                                                  -----------  ------------
      Total Shareholders' Equity                    1,288,283     1,289,720
                                                  -----------  ------------
      Total Liabilities and Shareholders' Equity  $ 1,520,371  $  1,588,628
                                                  ===========  ============


                           SEI INVESTMENTS COMPANY
                            ENDING ASSET BALANCES
                                (In millions)
                                 (Unaudited)

                               Jun. 30, Sept. 30, Dec. 31, Mar. 31, Jun. 30,
                                 2015      2015     2015     2016     2016
                               -------- --------- -------- -------- --------
Private Banks:
  Equity and fixed-income
   programs                    $ 19,686 $  18,243 $ 18,150 $ 18,370 $ 18,328
  Collective trust fund
   programs                          13         3        4        4        3
  Liquidity funds                 5,280     5,469    5,835    5,521    4,848
                               -------- --------- -------- -------- --------
  Total assets under
   management                  $ 24,979 $  23,715 $ 23,989 $ 23,895 $ 23,179
  Client assets under
   administration                17,485    16,896   17,532   18,324   18,537
                               -------- --------- -------- -------- --------
  Total assets                 $ 42,464 $  40,611 $ 41,521 $ 42,219 $ 41,716

Investment Advisors:
  Equity and fixed-income
   programs                    $ 46,951 $  43,988 $ 46,123 $ 47,357 $ 50,016
  Collective trust fund
   programs                           8         9        7        7        5
  Liquidity funds                 2,817     4,677    4,924    5,051    3,661
                               -------- --------- -------- -------- --------
  Total assets under
   management                  $ 49,776 $  48,674 $ 51,054 $ 52,415 $ 53,682

Institutional Investors:
  Equity and fixed-income
   programs                    $ 75,341 $  70,818 $ 72,263 $ 73,468 $ 75,944
  Collective trust fund
   programs                          93        96       96       97       88
  Liquidity funds                 2,960     2,655    2,883    2,390    2,526
                               -------- --------- -------- -------- --------
  Total assets under
   management                  $ 78,394 $  73,569 $ 75,242 $ 75,955 $ 78,558

Investment Managers:
  Equity and fixed-income
   programs                    $     24 $      59 $     66 $     72 $     73
  Collective trust fund
   programs                      20,632    19,863   32,117   32,385   33,841
  Liquidity funds                 1,007       848      832      733      750
                               -------- --------- -------- -------- --------
  Total assets under
   management                  $ 21,663 $  20,770 $ 33,015 $ 33,190 $ 34,664
  Client assets under
   administration (A)           381,963   376,133  390,282  400,579  419,139
                               -------- --------- -------- -------- --------
  Total assets                 $403,626 $ 396,903 $423,297 $433,769 $453,803

Investments in New Businesses:
  Equity and fixed-income
   programs                    $    779 $     752 $    764 $    803 $    820
  Liquidity funds                    57        51       47       41       37
                               -------- --------- -------- -------- --------
  Total assets under
   management                  $    836 $     803 $    811 $    844 $    857

LSV Asset Management:
  Equity and fixed-income
   programs                    $ 86,334 $  76,958 $ 78,335 $ 78,390 $ 78,352

Total:
  Equity and fixed-income
   programs (B)                $229,115 $ 210,818 $215,701 $218,460 $223,533
  Collective trust fund
   programs                      20,746    19,971   32,224   32,493   33,937
  Liquidity funds                12,121    13,700   14,521   13,736   11,822
                               -------- --------- -------- -------- --------
  Total assets under
   management                  $261,982 $ 244,489 $262,446 $264,689 $269,292

  Client assets under
   administration ©           399,448   393,029  407,814  418,903  437,676
                               -------- --------- -------- -------- --------
  Total assets                 $661,430 $ 637,518 $670,260 $683,592 $706,968
                               ======== ========= ======== ======== ========
(A) Client assets under administration in the Investment Managers segment
    include $50.0 billion of assets that require limited services and
    therefore are at fee levels below our normal full service assets (as of
    June 30, 2016).
(B) Equity and fixed-income programs include $4.6 billion of assets invested
    in various asset allocation funds at June 30, 2016.
© In addition to the numbers presented, SEI also administers an additional
    $12.0 billion in Funds of Funds assets (as of June 30, 2016) on which
    SEI does not earn an administration fee. Client assets under
    administration as of June 30, 2016 do not reflect $1.3 billion in Funds
    of Funds assets that were reported at December 31, 2015.


                           SEI INVESTMENTS COMPANY
                           AVERAGE ASSET BALANCES
                                (In millions)
                                 (Unaudited)

                                2nd Qtr. 3rd Qtr. 4th Qtr. 1st Qtr. 2nd Qtr.
                                  2015     2015     2015     2016     2016
                                -------- -------- -------- -------- --------
Private Banks:
  Equity and fixed-income
   programs                     $ 19,872 $ 19,080 $ 18,603 $ 17,644 $ 18,504
  Collective trust fund
   programs                           12        6        3        3        3
  Liquidity funds                  5,256    5,443    5,511    5,661    5,118
                                -------- -------- -------- -------- --------
  Total assets under management $ 25,140 $ 24,529 $ 24,117 $ 23,308 $ 23,625
  Client assets under
   administration                 17,823   17,504   17,775   17,248   18,436
                                -------- -------- -------- -------- --------
  Total assets                  $ 42,963 $ 42,033 $ 41,892 $ 40,556 $ 42,061

Investment Advisors:
  Equity and fixed-income
   programs                     $ 47,027 $ 45,992 $ 46,044 $ 45,175 $ 48,783
  Collective trust fund
   programs                            8        9        8        7        6
  Liquidity funds                  2,819    3,523    4,784    5,009    4,061
                                -------- -------- -------- -------- --------
  Total assets under management $ 49,854 $ 49,524 $ 50,836 $ 50,191 $ 52,850

Institutional Investors:
  Equity and fixed-income
   programs                     $ 75,426 $ 73,568 $ 72,463 $ 71,779 $ 74,984
  Collective trust fund
   programs                           94       93       96       98       96
  Liquidity funds                  3,354    2,843    3,109    2,834    2,868
                                -------- -------- -------- -------- --------
  Total assets under management $ 78,874 $ 76,504 $ 75,668 $ 74,711 $ 77,948

Investment Managers:
  Equity and fixed-income
   programs                     $     25 $     24 $     59 $     66 $     72
  Collective trust fund
   programs                       21,387   20,449   30,960   30,784   33,021
  Liquidity funds                  1,010      978      960      832      701
                                -------- -------- -------- -------- --------
  Total assets under management $ 22,422 $ 21,451 $ 31,979 $ 31,682 $ 33,794
  Client assets under
   administration                378,347  380,247  390,080  387,421  415,237
                                -------- -------- -------- -------- --------
  Total assets                  $400,769 $401,698 $422,059 $419,103 $449,031

Investments in New Businesses:
  Equity and fixed-income
   programs                     $    784 $    776 $    788 $    757 $    811
  Liquidity funds                     75       49       47       48       39
                                -------- -------- -------- -------- --------
  Total assets under management $    859 $    825 $    835 $    805 $    850

LSV Asset Management:
  Equity and fixed-income
   programs                     $ 87,409 $ 80,656 $ 79,634 $ 74,699 $ 79,733

Total:
  Equity and fixed-income
   programs                     $230,543 $220,096 $217,591 $210,120 $222,887
  Collective trust fund
   programs                       21,501   20,557   31,067   30,892   33,126
  Liquidity funds                 12,514   12,836   14,411   14,384   12,787
                                -------- -------- -------- -------- --------
  Total assets under management $264,558 $253,489 $263,069 $255,396 $268,800

  Client assets under
   administration (A)            396,170  397,751  407,855  404,669  433,673
                                -------- -------- -------- -------- --------
  Total assets                  $660,728 $651,240 $670,924 $660,065 $702,473
                                ======== ======== ======== ======== ========
(A) Client assets under administration during second-quarter 2016 do not
    reflect $1.3 billion in Funds of Funds assets that were reported during
    fourth-quarter 2015.

Investor Contact:
Nicole Vattimo
SEI
+1 610-676-4385
nvattimo@seic.com

Media Contact:
Dana Grosser
SEI
+1 610-676-2459
dgrosser@seic.com

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