SEI INVESTMENTS CO - FORM 10-Q - EX-99.2 - PRESS RELEASE DATED APRIL 20, 2016

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EX-31.2 - SECTION 302 CFO CERTIFICATION - SEI INVESTMENTS CO	seic-33116ex312.htm
10-Q - FORM 10-Q - SEI INVESTMENTS CO	seic-3311610q.htm
EX-32 - SECTION 906 CEO AND CFO CERTIFICATION - SEI INVESTMENTS CO	seic-33116ex32.htm
EX-31.1 - SECTION 302 CEO CERTIFICATION - SEI INVESTMENTS CO	seic-33116ex311.htm
EX-99.1 - PRESS RELEASE DATED APRIL 19, 2016 - SEI INVESTMENTS CO	seic-pressreleasestockrepu.htm

Exhibit 99.2

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 FIRST-QUARTER 2016 FINANCIAL RESULTS

OAKS, Pa., April 20, 2016 -- SEI Investments Company (NASDAQ:SEIC) today announced financial results for the first-quarter 2016. Diluted earnings per share were $.47 in first-quarter 2016 compared to $.50 in first-quarter 2015. Diluted earnings per share in first-quarter 2016 and 2015 each reflect pre-tax gains of $2.8 million, or $.01 per share, from the sale of SEI Asset Korea.



Consolidated Overview
(In thousands, except earnings per share)	For the Three Months Ended March 31,
	2016		2015		%

Revenues		$334,263		$325,444	3%
Net income	77,497		84,611		(8)%
Diluted earnings per share		$0.47		$0.50	(6)%

"Our results for the first quarter reflect the growing adoption of our platform solutions across our target markets and customer bases while we manage through capital market volatility," said Alfred P. West, Jr., SEI Chairman and CEO. "SEI's sales success during the quarter is a testament to the relevance of our offerings to our clients’ businesses.

"In all segments of our company, we are continuously investing in products and services that will position us well for the long term, while creating sustainable growth and increased shareholder value.”

Summary of First-Quarter Results by Business Segment



(In thousands)	For the Three Months Ended March 31,
	2016			2015			%
Private Banks:
Revenues		$113,361			$111,213		2%
Expenses	103,741			99,256			5%
Operating Profit	9,620			11,957			(20)%
Gain on sale of subsidiary	2,791			2,791			NM
Segment Profit	12,411			14,748			NM
Operating Margin (A)	8		%	11		%

Investment Advisors:
Revenues	76,679			74,015			4%
Expenses	44,774			39,059			15%
Operating Profit	31,905			34,956			(9)%
Operating Margin	42		%	47		%

Institutional Investors:
Revenues	72,897			73,548			(1)%
Expenses	35,382			35,211			—%
Operating Profit	37,515			38,337			(2)%
Operating Margin	51		%	52		%

Investment Managers:
Revenues	69,918			65,367			7%
Expenses	45,275			40,623			11%
Operating Profit	24,643			24,744			—%
Operating Margin	35		%	38		%

Investments in New Businesses:
Revenues	1,408			1,301			8%
Expenses	5,232			4,866			8%
Operating Loss	(3,824		)	(3,565		)	NM

Totals:
Revenues		$334,263			$325,444		3%
Expenses	234,404			219,015			7%
Corporate overhead expenses	13,047			13,359			(2)%
Income from operations		$86,812			$93,070		(7)%

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

First-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 second half of 2015 and early 2016 negatively impacted our asset-based fee revenues and partially offset our revenue growth.


•	Sales events, net of client losses, during first-quarter 2016 totaled approximately $38.6 million and are expected to generate net annualized recurring revenues of approximately $33.2 million when contract values are fully realized.


•	Our average assets under management, excluding LSV, increased $8.2 billion, or five percent, to $180.7 billion, as compared to $172.5 billion during the first-quarter 2015 (see attached Average Asset Balances schedules for further details).


•	Our average assets under administration increased $20.0 billion, or five percent, to $404.7 billion in the first-quarter 2016, as compared to $384.7 billion during the first-quarter 2015 (see attached Average Asset Balances schedules for further details).


•	Information processing and software servicing fees in our Private Banks segment increased $2.7 million in the first-quarter 2016 compared to the prior year period primarily due to increased assets from new and existing clients processed on the SEI Wealth Platform^SM.


•	Our earnings from LSV decreased by $5.2 million, or 15 percent, to $29.2 million in first-quarter 2016 as compared to $34.3 million in first-quarter 2015. The decline in earnings was due to lower assets under management from unfavorable market conditions and reduced performance fees.


•	We capitalized $9.5 million and $8.0 million of software development costs in first-quarter 2016 and 2015, respectively, of which $7.6 million and $7.3 million are related to continued enhancements to the SEI Wealth Platform.


•	Amortization expense related to the SEI Wealth Platform increased to $11.0 million during the first-quarter 2016 as compared to $10.3 million during the first-quarter 2015 due to continued enhancements.


•	Although revenues increased in our Investment Advisors and Investment Managers segments, higher personnel and other operating costs mainly related to servicing new and existing clients and increased technology development spending in these segments caused operating margins to decline.


•	We recorded pre-tax gains of $2.8 million, or $.01 diluted earnings per share, from the sale of SEI Asset Korea in first-quarter 2016 and 2015.


•	Our effective tax rates were 35.2 percent in first-quarter 2016 and 35.4 percent in first-quarter 2015.


•	We repurchased 2.1 million shares of our common stock for $80.6 million during the first-quarter 2016.

Earnings Conference Call

A conference call to review earnings is scheduled for 2 p.m. Eastern time on April 20, 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 391245.

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 March 31, 2016, through its subsidiaries and partnerships in which the company has a significant interest, SEI manages or administers $684 billion in mutual fund and pooled or separately managed assets, including $265 billion in assets under management and $419 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 March 31,
	2016			2015

Asset management, admin. and distribution fees		$251,437			$246,768
Information processing and software servicing fees	73,399			70,653
Transaction–based and trade execution fees	9,427			8,023

Total revenues	334,263			325,444

Subadvisory, distribution and other asset mgmt costs	39,195			38,517
Software royalties and other information processing costs	7,748			7,509
Brokerage commissions	7,108			5,972
Compensation, benefits and other personnel	101,931			94,186
Stock-based compensation	3,789			3,750
Consulting, outsourcing and professional fees	38,506			35,628
Data processing and computer related	15,718			13,400
Facilities, supplies and other costs	15,997			17,059
Amortization	11,012			10,358
Depreciation	6,447			5,995

Total expenses	247,451			232,374

Income from operations	86,812			93,070

Net (loss) gain on investments	(126		)	250
Interest and dividend income	1,083			969
Interest expense	(114		)	(113		)
Equity in earnings of unconsolidated affiliates	29,192			34,033
Gain on sale of subsidiary	2,791			2,791

Income before income taxes	119,638			131,000

Income taxes	42,141			46,389

Net income	77,497			84,611

Basic earnings per common share		$0.48			$0.51

Shares used to calculate basic earnings per share	163,013			166,695

Diluted earnings per common share		$0.47			$0.50

Shares used to calculate diluted earnings per share	166,145			170,703

SEI INVESTMENTS COMPANY

CONSOLIDATED BALANCE SHEETS

(In thousands)

(Unaudited)



	March 31,			December 31,
	2016			2015
Assets
Current Assets:
Cash and cash equivalents		$638,253			$679,661
Restricted cash	5,500			5,500
Receivables from investment products	51,633			48,098
Receivables, net	229,558			223,023
Securities owned	21,264			21,235
Other current assets	28,829			26,207
Total Current Assets	975,037			1,003,724

Property and Equipment, net	141,790			143,977
Capitalized software, net	289,044			290,522
Investments available for sale	78,356			81,294
Investments in affiliated funds, at fair value	4,183			4,039
Investment in unconsolidated affiliates	44,247			49,580
Deferred income taxes	4,117			—
Other assets, net	14,072			15,492
Total Assets		$1,550,846			$1,588,628

Liabilities and Equity
Current Liabilities:
Accounts payable		$4,354			$4,511
Accrued liabilities	165,005			217,587
Deferred revenue	2,936			2,385
Total Current Liabilities	172,295			224,483

Deferred income taxes	66,410			63,028
Other long-term liabilities	11,676			11,397
Total Liabilities	250,381			298,908

Shareholders' Equity:
Common stock	1,619			1,637
Capital in excess of par value	912,506			910,513
Retained earnings	408,684			402,860
Accumulated other comprehensive loss, net	(22,344		)	(25,290		)
Total Shareholders' Equity	1,300,465			1,289,720
Total Liabilities and Shareholders' Equity		$1,550,846			$1,588,628

SEI INVESTMENTS COMPANY

ENDING ASSET BALANCES

(In millions)

(Unaudited)



	Mar. 31,		Jun. 30,		Sept. 30,		Dec 31,		Mar. 31,
	2015		2015		2015		2015		2016
Private Banks:
Equity/Fixed Income programs		$19,296		$19,686		$18,243		$18,150		$18,370
Collective Trust Fund programs	9		13		3		4		4
Liquidity funds	5,551		5,280		5,469		5,835		5,521
Total assets under management		$24,856		$24,979		$23,715		$23,989		$23,895
Client assets under administration	17,643		17,485		16,896		17,532		18,324
Total assets		$42,499		$42,464		$40,611		$41,521		$42,219

Investment Advisors:
Equity/Fixed Income programs		$45,800		$46,951		$43,988		$46,123		$47,357
Collective Trust Fund programs	8		8		9		7		7
Liquidity funds	3,047		2,817		4,677		4,924		5,051
Total assets under management		$48,855		$49,776		$48,674		$51,054		$52,415

Institutional Investors:
Equity/Fixed Income programs		$74,178		$75,341		$70,818		$72,263		$73,468
Collective Trust Fund programs	94		93		96		96		97
Liquidity funds	3,246		2,960		2,655		2,883		2,390
Total assets under management		$77,518		$78,394		$73,569		$75,242		$75,955

Investment Managers:
Equity/Fixed Income programs		$25		$24		$59		$66		$72
Collective Trust Fund programs	20,965		20,632		19,863		32,117		32,385
Liquidity funds	1,091		1,007		848		832		733
Total assets under management		$22,081		$21,663		$20,770		$33,015		$33,190
Client assets under administration (A)	372,116		381,963		376,133		390,282		400,579
Total assets		$394,197		$403,626		$396,903		$423,297		$433,769

Investments in New Businesses:
Equity/Fixed Income programs		$756		$779		$752		$764		$803
Liquidity funds	106		57		51		47		41
Total assets under management		$862		$836		$803		$811		$844

LSV Asset Management:
Equity/Fixed Income programs		$84,123		$86,334		$76,958		$78,335		$78,390

Total:
Equity/Fixed Income programs (B)		$224,178		$229,115		$210,818		$215,701		$218,460
Collective Trust Fund programs	21,076		20,746		19,971		32,224		32,493
Liquidity funds	13,041		12,121		13,700		14,521		13,736
Total assets under management		$258,295		$261,982		$244,489		$262,446		$264,689

Client assets under administration (C)	389,759		399,448		393,029		407,814		418,903
Total assets		$648,054		$661,430		$637,518		$670,260		$683,592


(A)	Client assets under administration in the Investment Managers segment include $49.2 billion of assets balances that require limited services and therefore are at fee levels below our normal full service assets (as of March 31, 2016).


(B)	Equity/Fixed Income programs include $4.6 billion of assets invested in various asset allocation funds at March 31, 2016.


(C)	In addition to the numbers presented, SEI also administers an additional $11.2 billion in Funds of Funds assets (as of

March 31, 2016) on which SEI does not earn an administration fee. Client assets under administration as of March 31, 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)



	1st Qtr.		2nd Qtr.		3rd Qtr.		4th Qtr.		1st Qtr.
	2015		2015		2015		2015		2016
Private Banks:
Equity/Fixed Income programs		$18,869		$19,872		$19,080		$18,603		$17,644
Collective Trust Fund programs	8		12		6		3		3
Liquidity funds	5,755		5,256		5,443		5,511		5,661
Total assets under management		$24,632		$25,140		$24,529		$24,117		$23,308
Client assets under administration	17,504		17,823		17,504		17,775		17,248
Total assets		$42,136		$42,963		$42,033		$41,892		$40,556

Investment Advisors:
Equity/Fixed Income programs		$44,809		$47,027		$45,992		$46,044		$45,175
Collective Trust Fund programs	9		8		9		8		7
Liquidity funds	3,072		2,819		3,523		4,784		5,009
Total assets under management		$47,890		$49,854		$49,524		$50,836		$50,191

Institutional Investors:
Equity/Fixed Income programs		$73,760		$75,426		$73,568		$72,463		$71,779
Collective Trust Fund programs	95		94		93		96		98
Liquidity funds	3,021		3,354		2,843		3,109		2,834
Total assets under management		$76,876		$78,874		$76,504		$75,668		$74,711

Investment Managers:
Equity/Fixed Income programs		$27		$25		$24		$59		$66
Collective Trust Fund programs	21,108		21,387		20,449		30,960		30,784
Liquidity funds	1,066		1,010		978		960		832
Total assets under management		$22,201		$22,422		$21,451		$31,979		$31,682
Client assets under administration	367,206		378,347		380,247		390,080		387,421
Total assets		$389,407		$400,769		$401,698		$422,059		$419,103

Investments in New Businesses:
Equity/Fixed Income programs		$755		$784		$776		$788		$757
Liquidity funds	101		75		49		47		48
Total assets under management		$856		$859		$825		$835		$805

LSV Asset Management:
Equity/Fixed Income programs		$83,439		$87,409		$80,656		$79,634		$74,699

Total:
Equity/Fixed Income programs		$221,659		$230,543		$220,096		$217,591		$210,120
Collective Trust Fund programs	21,220		21,501		20,557		31,067		30,892
Liquidity funds	13,015		12,514		12,836		14,411		14,384
Total assets under management		$255,894		$264,558		$253,489		$263,069		$255,396

Client assets under administration (A)	384,710		396,170		397,751		407,855		404,669
Total assets		$640,604		$660,728		$651,240		$670,924		$660,065

(A) Client assets under administration during first-quarter 2016 do not reflect $1.3 billion in Funds of Funds assets that were reported during fourth-quarter 2015.

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