SEI INVESTMENTS CO - FORM 10-Q - EX-99.1 - PRESS RELEASE

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EX-32 - SECTION 906 CEO AND CFO CERTIFICATION - SEI INVESTMENTS CO	seic-63015ex32.htm
EX-31.2 - SECTION 302 CFO CERTIFICATION - SEI INVESTMENTS CO	seic-63015ex312.htm
EX-31.1 - SECTION 302 CEO CERTIFICATION - SEI INVESTMENTS CO	seic-63015ex311.htm
10-Q - FORM 10-Q - SEI INVESTMENTS CO	seic-6301510q.htm

Exhibit 99.1

Investor Contact: Media Contact:

Nicole Vattimo Dana Grosser

SEI SEI

+1 610-676-4385 +1 610-676-2459

nvattimo@seic.com dgrosser@seic.com

Pages: 8

FOR IMMEDIATE RELEASE

SEI REPORTS SECOND-QUARTER 2015 FINANCIAL RESULTS

Company Announces Sale of SEI Wealth Platform^SM to a Major U.S. Banking Client

OAKS, Pa., July 22, 2015 -- SEI Investments Company (NASDAQ:SEIC) today announced financial results for the second-quarter 2015. Diluted earnings per share were $.51 in second-quarter 2015 compared to $.48 in second-quarter 2014.



Consolidated Overview
(In thousands, except earnings per share)	For the Three Months Ended June 30,					For the Six Months Ended June 30,
	2015		2014		%	2015		2014		%

Revenues		$337,745		$318,815	6%		$663,189		$621,201	7%
Net income	86,240		82,813		4%	170,851		157,633		8%
Diluted earnings per share		$0.51		$0.48	6%		$1.00		$0.91	10%

"Our second-quarter results reflect progress across all of our business segments," said Alfred P. West, Jr., SEI Chairman and CEO. "During the quarter, sales results across the company were strong. They included the sale of our SEI Wealth Platform to a current major U.S. client, a significant validation of our Private Banks strategy. These results are further evidence that what we are building and delivering is being accepted by our target markets.

"While challenges remain and the global environment continues to be dynamic, our commitment to long-term, sustainable growth and increased shareholder value is unwavering."

Summary of Second-Quarter Results by Business Segment



(In thousands)	For the Three Months Ended June 30,							For the Six Months Ended June 30,
	2015			2014			%	2015			2014			%
Private Banks:
Revenues		$115,333			$114,182		1%		$226,546			$219,361		3%
Expenses	104,727			98,957			6%	203,983			199,147			2%
Operating Profit	10,606			15,225			(30)%	22,563			20,214			12%
Gain on sale of subsidiary	—			—			—%	2,791			5,582			NM
Segment Profit	10,606			15,225			NM	25,354			25,796			NM
Operating Margin (A)	9		%	13		%		10		%	9		%

Investment Advisors:
Revenues	77,753			70,046			11%	151,768			136,470			11%
Expenses	40,857			35,679			15%	79,916			70,256			14%
Operating Profit	36,896			34,367			7%	71,852			66,214			9%
Operating Margin	47		%	49		%		47		%	49		%

Institutional Investors:
Revenues	75,980			70,994			7%	149,528			139,651			7%
Expenses	36,528			35,025			4%	71,739			69,120			4%
Operating Profit	39,452			35,969			10%	77,789			70,531			10%
Operating Margin	52		%	51		%		52		%	51		%

Investment Managers:
Revenues	67,280			62,451			8%	132,647			123,459			7%
Expenses	42,141			39,449			7%	82,764			78,633			5%
Operating Profit	25,139			23,002			9%	49,883			44,826			11%
Operating Margin	37		%	37		%		38		%	36		%

Investments in New Businesses:
Revenues	1,399			1,142			23%	2,700			2,260			19%
Expenses	4,803			4,451			8%	9,669			8,700			11%
Operating Loss	(3,404		)	(3,309		)	NM	(6,969		)	(6,440		)	NM

Totals:
Revenues		$337,745			$318,815		6%		$663,189			$621,201		7%
Expenses	229,056			213,561			7%	448,071			425,856			5%
Corporate overhead expenses	12,771			11,624			10%	26,130			23,323			12%
Income from operations		$95,918			$93,630		2%		$188,988			$172,022		10%

(A) Percentages determined exclusive of gain on sale of subsidiary.

Second-Quarter Business Highlights:


•	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.


•	Sales events, net of client losses, during second-quarter 2015 totaled approximately $45.2 million and are expected to generate net annualized recurring revenues of approximately $32.0 million when contract values are fully realized. Net annualized recurring and one-time revenues include a significant sale of the SEI Wealth Platform to a current major U.S. client.


•	Our average assets under management, excluding LSV, increased $12.8 billion, or eight percent, to $177.1 billion in the second-quarter 2015, as compared to $164.3 billion during the second-quarter 2014 (see attached Average Asset Balances schedules for further details).


•	Our average assets under administration increased $47.7 billion, or 14 percent, to $396.2 billion in the second-quarter 2015, as compared to $348.4 billion during the second-quarter 2014 (see attached Average Asset Balances schedules for further details).


•	Revenues from Information processing and software servicing fees in our Private Banks segment declined due to $6.0 million, or $.02 diluted earnings per share, in non-recurring professional services fees from a single project recorded in the second-quarter 2014.


•	Income from LSV increased $3.8 million, or 11 percent, to $38.3 million in second-quarter 2015 as compared to $34.5 million in second-quarter 2014 due to an increase in assets under management and an increase in performance fees earned by LSV.


•	Amortization expense related to the SEI Wealth Platform was $10.6 million during the second-quarter 2015 as compared to $9.5 million during the second-quarter 2014 due to continued enhancements.


•	Our operating expenses related to personnel costs in our Investment Advisors and Investment Managers segments increased. These increased operational costs are mainly related to servicing new and existing clients. In addition, sales compensation expense in our Private Banks segment increased due to the significant sales event mentioned above.


•	Our effective tax rates were 35.6 percent in second-quarter 2015 and 35.7 percent in second-quarter 2014.


•	In second-quarter 2015, we repurchased 1.3 million shares of our common stock for $61.0 million.

Earnings Conference Call

A conference call to review earnings is scheduled for 2 p.m. Eastern time on July 22, 2015. 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 364810.

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, 2015, through its subsidiaries and partnerships in which the company has a significant interest, SEI manages or administers $661 billion in mutual fund and pooled or separately managed assets, including $262 billion in assets under management and $399 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 Ended June 30,						For the Six Months Ended June 30,
	2015			2014			2015			2014

Asset management, admin. and distribution fees		$256,748			$236,191			$503,516			$461,262
Information processing and software servicing fees	73,699			75,828			144,352			145,006
Transaction–based and trade execution fees	7,298			6,796			15,321			14,933

Total revenues	337,745			318,815			663,189			621,201

Subadvisory, distribution and other asset mgmt costs	40,872			37,244			79,389			71,256
Software royalties and other information processing costs	8,057			8,417			15,566			16,970
Brokerage commissions	5,431			5,119			11,403			11,098
Compensation, benefits and other personnel	98,999			92,470			193,185			186,894
Stock-based compensation	3,859			2,872			7,609			5,695
Consulting, outsourcing and professional fees	36,969			33,404			72,597			68,337
Data processing and computer related	14,527			13,378			27,927			25,998
Facilities, supplies and other costs	16,659			17,366			33,718			33,218
Amortization	10,611			9,584			20,969			18,798
Depreciation	5,843			5,331			11,838			10,915

Total expenses	241,827			225,185			474,201			449,179

Income from operations	95,918			93,630			188,988			172,022

Net (loss) gain on investments	(38		)	391			212			527
Interest and dividend income	755			721			1,724			1,498
Interest expense	(114		)	(114		)	(227		)	(227		)
Equity in earnings of unconsolidated affiliates	37,289			34,226			71,322			66,117
Gain on sale of subsidiary	—			—			2,791			5,582

Income before income taxes	133,810			128,854			264,810			245,519

Income taxes	47,570			46,041			93,959			87,886

Net income	86,240			82,813			170,851			157,633

Basic earnings per common share		$0.52			$0.49			$1.03			$0.93

Shares used to calculate basic earnings per share	166,152			168,606			166,423			168,956

Diluted earnings per common share		$0.51			$0.48			$1.00			$0.91

Shares used to calculate diluted earnings per share	169,973			172,304			170,338			173,066

SEI INVESTMENTS COMPANY

CONSOLIDATED BALANCE SHEETS

(In thousands)

(Unaudited)



	June 30,			December 31,
	2015			2014
Assets
Current Assets:
Cash and cash equivalents		$624,841			$667,446
Restricted cash	6,635			5,801
Receivables from regulated investment companies	46,920			48,393
Receivables, net	218,141			194,419
Securities owned	21,204			21,175
Other current assets	22,846			18,193
Total Current Assets	940,587			955,427

Property and Equipment, net	128,697			125,535
Capitalized software, net	304,254			309,040
Investments available for sale	79,898			77,609
Investments in affiliated funds, at fair value	4,525			4,523
Investment in unconsolidated affiliates	50,765			54,290
Other assets, net	17,106			16,451
Total Assets		$1,525,832			$1,542,875

Liabilities and Equity
Current Liabilities:
Accounts payable		$6,139			$10,588
Accrued liabilities	131,746			207,429
Deferred income taxes, net	1,037			1,414
Deferred revenue	5,387			1,749
Total Current Liabilities	144,309			221,180

Deferred income taxes	64,300			63,755
Other long-term liabilities	11,241			10,327
Total Liabilities	219,850			295,262

Shareholders' Equity:
Common stock	1,659			1,667
Capital in excess of par value	882,355			834,615
Retained earnings	435,660			420,226
Accumulated other comprehensive loss, net	(13,692		)	(8,895		)
Total Shareholders' Equity	1,305,982			1,247,613
Total Liabilities and Shareholders' Equity		$1,525,832			$1,542,875

SEI INVESTMENTS COMPANY

ENDING ASSET BALANCES

(In millions)

(Unaudited)



	Jun. 30,		Sept. 30,		Dec 31,		Mar. 31,		Jun. 30,
	2014		2014		2014		2015		2015
Private Banks:
Equity/Fixed Income programs		$18,679		$18,634		$18,666		$19,296		$19,686
Collective Trust Fund programs	12		11		8		9		13
Liquidity funds	5,274		5,331		5,889		5,551		5,280
Total assets under management		$23,965		$23,976		$24,563		$24,856		$24,979
Client assets under administration	15,347		16,288		16,741		17,643		17,485
Total assets		$39,312		$40,264		$41,304		$42,499		$42,464

Investment Advisors:
Equity/Fixed Income programs		$42,125		$42,260		$43,845		$45,800		$46,951
Collective Trust Fund programs	13		9		9		8		8
Liquidity funds	2,696		3,086		3,173		3,047		2,817
Total assets under management		$44,834		$45,355		$47,027		$48,855		$49,776

Institutional Investors:
Equity/Fixed Income programs		$71,598		$72,006		$72,828		$74,178		$75,341
Collective Trust Fund programs	100		98		95		94		93
Liquidity funds	2,414		2,891		2,929		3,246		2,960
Total assets under management		$74,112		$74,995		$75,852		$77,518		$78,394

Investment Managers:
Equity/Fixed Income programs		$64		$64		$27		$25		$24
Collective Trust Fund programs	22,598		21,297		20,833		20,965		20,632
Liquidity funds	802		1,018		946		1,091		1,007
Total assets under management		$23,464		$22,379		$21,806		$22,081		$21,663
Client assets under administration (A)	337,492		346,841		355,890		372,116		381,963
Total assets		$360,956		$369,220		$377,696		$394,197		$403,626

Investments in New Businesses:
Equity/Fixed Income programs		$659		$703		$736		$756		$779
Liquidity funds	38		118		98		106		57
Total assets under management		$697		$821		$834		$862		$836

LSV Asset Management:
Equity/Fixed Income programs		$82,026		$81,536		$82,665		$84,123		$86,334

Total:
Equity/Fixed Income programs (B)		$215,151		$215,203		$218,767		$224,178		$229,115
Collective Trust Fund programs	22,723		21,415		20,945		21,076		20,746
Liquidity funds	11,224		12,444		13,035		13,041		12,121
Total assets under management		$249,098		$249,062		$252,747		$258,295		$261,982

Client assets under administration (C)	352,839		363,129		372,631		389,759		399,448
Total assets		$601,937		$612,191		$625,378		$648,054		$661,430


(A)	Client assets under administration in the Investment Managers segment include $50.7 billion of assets balances that require limited services and therefore are at fee levels below our normal full service assets (as of June 30, 2015).


(B)	Equity/Fixed Income programs include $5.1 billion of assets invested in various asset allocation funds at June 30, 2015.


(C)	In addition to the numbers presented, SEI also administers an additional $6.1 billion in Funds of Funds assets (as of

June 30, 2015) on which SEI does not earn an administration fee.

SEI INVESTMENTS COMPANY

AVERAGE ASSET BALANCES

(In millions)

(Unaudited)



	2nd Qtr.		3rd Qtr.		4th Qtr.		1st Qtr.		2nd Qtr.
	2014		2014		2014		2015		2015
Private Banks:
Equity/Fixed Income programs		$17,829		$18,804		$18,606		$18,869		$19,872
Collective Trust Fund programs	12		12		10		8		12
Liquidity funds	5,429		5,466		5,537		5,755		5,256
Total assets under management		$23,270		$24,282		$24,153		$24,632		$25,140
Client assets under administration	15,069		15,707		16,451		17,504		17,823
Total assets		$38,339		$39,989		$40,604		$42,136		$42,963

Investment Advisors:
Equity/Fixed Income programs		$40,887		$42,389		$43,104		$44,809		$47,027
Collective Trust Fund programs	13		11		9		9		8
Liquidity funds	2,637		2,830		3,087		3,072		2,819
Total assets under management		$43,537		$45,230		$46,200		$47,890		$49,854

Institutional Investors:
Equity/Fixed Income programs		$70,706		$72,010		$72,771		$73,760		$75,426
Collective Trust Fund programs	134		98		96		95		94
Liquidity funds	2,664		2,883		2,973		3,021		3,354
Total assets under management		$73,504		$74,991		$75,840		$76,876		$78,874

Investment Managers:
Equity/Fixed Income programs		$68		$64		$64		$27		$25
Collective Trust Fund programs	22,447		22,123		21,140		21,108		21,387
Liquidity funds	824		962		904		1,066		1,010
Total assets under management		$23,339		$23,149		$22,108		$22,201		$22,422
Client assets under administration	333,373		344,661		355,903		367,206		378,347
Total assets		$356,712		$367,810		$378,011		$389,407		$400,769

Investments in New Businesses:
Equity/Fixed Income programs		$640		$688		$731		$755		$784
Liquidity funds	43		139		97		101		75
Total assets under management		$683		$827		$828		$856		$859

LSV Asset Management:
Equity/Fixed Income programs		$79,866		$82,402		$83,187		$83,439		$87,409

Total:
Equity/Fixed Income programs		$209,996		$216,357		$218,463		$221,659		$230,543
Collective Trust Fund programs	22,606		22,244		21,255		21,220		21,501
Liquidity funds	11,597		12,280		12,598		13,015		12,514
Total assets under management		$244,199		$250,881		$252,316		$255,894		$264,558

Client assets under administration	348,442		360,368		372,354		384,710		396,170
Total assets		$592,641		$611,249		$624,670		$640,604		$660,728

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