SEC Filing

SEI Investments Company

Date: July 18, 2012

/s/ Dennis J. McGonigle

Dennis J. McGonigle

Chief Financial Officer

SEI

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Form 8-K

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 8-K

CURRENT REPORT

Pursuant to Section 13 or 15(d) of the

Securities Exchange Act of 1934

July 18, 2012

Date of report (Date of earliest event reported)

SEI Investments Company

(Exact name of registrant as specified in its charter)

Pennsylvania

0-10200

23-1707341

(State or other jurisdiction

of incorporation)

(Commission

File No.)

(I.R.S. Employer

Identification No.)

1 Freedom Valley Drive

Oaks, Pennsylvania 19456

(Address of principal executive offices) (Zip Code)

(610) 676-1000

(Registrants’ telephone number, including area code)

Not applicable

(Former name or former address, if changed since last report)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

¨	Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

¨	Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

¨	Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

¨	Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Item 2.02.

Results of Operations and Financial Condition.

On Wednesday, July 18, 2012, SEI Investments Company issued a press release announcing its financial and operating results for the second quarter ended June 30, 2012. A copy of the press release is furnished as Exhibit 99.1 and incorporated in this Item 2.02 by reference.

As provided in General Instruction B.2 to Form 8-K, the information furnished in this Item 2.02, and Exhibit 99.1 hereto shall not be deemed “filed” for purposes of Section 18 of the Securities and Exchange Act of 1934, as amended, nor shall it be deemed incorporated by reference in any filing with the Securities and Exchange Commission, except as shall be expressly provided by specific reference in such filing.

Item 9.01.

Financial Statements and Exhibits.

(d)

Exhibits.


99.1		Press Release dated July 18, 2012 of SEI Investments Company related to the Company’s financial and operating results for the second quarter ended June 30, 2012.

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, as amended, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

EXHIBIT INDEX


Exhibit Number		Description

99.1		Press Release dated July 18, 2012 of SEI Investments Company related to the Company’s financial and operating results for the second quarter ended June 30, 2012.

Press Release

Exhibit 99.1

LOGO


Investor Contact:		Media Contact:
Murray Louis		Dana Grosser
SEI		SEI
+1 610-676-1932		+1 610-676-2459
mlouis@seic.com		dgrosser@seic.com
Pages: 9

FOR IMMEDIATE RELEASE

SEI REPORTS SECOND-QUARTER 2012 FINANCIAL RESULTS

OAKS, Pa., July 18, 2012 — SEI Investments Company (NASDAQ:SEIC) today announced financial results for second-quarter 2012. Diluted earnings per share were $.28 in second-quarter 2012 compared to $.29 in second-quarter 2011.


Consolidated Overview	For the Three Months							For the Six Months
(In thousands, except earnings per share)	Ended June 30,							Ended June 30,
	2012		2011		%			2012		2011		%

Revenues	$	241,237	$	237,760		1	%	$	479,135	$	470,253		2	%
Net Income attributable to SEI		49,555		53,603		(8	%)		99,520		111,331		(11	%)
Diluted Earnings Per Share	$	0.28	$	0.29		(3	%)	$	0.56	$	0.59		(5	%)

“Second-quarter 2012 results reflect continued solid sales activity and improving profits and margins across our core business segments,” said Alfred P. West, Jr., SEI Chairman and CEO.

“Global financial market uncertainty and market volatility affected our results, particularly earnings from LSV. Despite this, we continue to see strong and growing interest in the solutions we offer from the markets we serve. We are confident we are on the right track and the investments we are making will enable us to significantly increase shareholder value.”

Summary of Second-Quarter Results by Business Segment


(In thousands)	For the Three Month Period									For the Six Month Period
	Ended June 30,									Ended June 30,
	2012			2011			%			2012			2011			%
Private Banks:
Revenues	$	88,303		$	87,873			—		$	176,291		$	174,582			1	%
Expenses		84,886			86,274			(2	%)		172,403			168,677			2	%

Operating Profit	$	3,417		$	1,599			114	%	$	3,888		$	5,905			(34	%)
Operating Margin		4	%		2	%					2	%		3	%

Investment Advisors:
Revenues		49,375			49,768			(1	%)		98,843			97,876			1	%
Expenses		29,025			27,734			5	%		58,326			54,774			6	%

Operating Profit		20,350			22,034			(8	%)		40,517			43,102			(6	%)
Operating Margin		41	%		44	%					41	%		44	%

Institutional Investors:
Revenues		55,895			54,731			2	%		109,212			107,916			1	%
Expenses		28,740			27,406			5	%		56,840			54,359			(5	%)

Operating Profit		27,155			27,325			(1	%)		52,372			53,557			(2	%)
Operating Margin		49	%		50	%					48	%		50	%

Investment Managers:
Revenues		46,713			44,452			5	%		92,924			87,893			6	%
Expenses		30,163			29,282			3	%		60,589			57,281			6	%

Operating Profit		16,550			15,170			9	%		32,335			30,612			6	%
Operating Margin		35	%		34	%					35	%		35	%

Investments in New Businesses:
Revenues		951			936			2	%		1,865			1,986			(6	%)
Expenses		3,684			2,920			26	%		7,382			6,045			22	%

Operating Loss		(2,733	)		(1,984	)		38	%		(5,517	)		(4,059	)		36	%
Operating Margin		N/A			N/A						N/A			N/A

Totals:
Revenues	$	241,237		$	237,760			1	%	$	479,135		$	470,253			2	%
Expenses		176,498			173,616			2	%		355,540			341,136			4	%
Corporate overhead expenses		11,080			10,720			3	%		22,162			21,368			4	%
Noncontrolling interest reflected in segments		(139	)		(533	)		N/A			(454	)		(805	)		N/A

Income from operations	$	53,798		$	53,957			—		$	101,887		$	108,554			(6	%)

Second-Quarter Business Commentary:

•

Revenues increased in second-quarter 2012 as compared to both second-quarter 2011 and first-quarter 2012. This was driven by an increase in Asset management, administrative, and distribution fee revenues resulting from increased cash flows from new and existing clients and market appreciation in 2012, despite the market decline in second-quarter 2012.

•

Our average assets under management, excluding LSV, increased $7.4 billion, or six percent, to $126.6 billion in the second-quarter 2012 as compared to $119.2 billion during the second-quarter 2011 and increased $2.5 billion, or 2 percent, as compared to $124.1 billion during the first-quarter 2012 (See attached Ending and Average Asset Balances schedules for further details).

•

Sales events, net of client losses, during second-quarter 2012 totaled approximately $20.3 million and are expected to generate net annualized recurring revenues of approximately $15.7 million when contract values are fully realized.

•

Income from LSV decreased $6.8 million to $22.7 million in second-quarter 2012 as compared to $29.5 million in second-quarter 2011. The reduction in earnings was due to lower assets under management from market deprecation in second-quarter 2012 and a decrease in our ownership interest to 40 percent from 41 percent.

•

Net income attributable to SEI includes gains from SIV securities of $1.1 million in second-quarter 2012 compared to losses of $1.9 million in second-quarter 2011 and a gain of $2.9 million in first-quarter 2012.

•

The effective tax rates were 36.6 percent in the second-quarter 2012 and 34.7 percent in the second-quarter 2011. The increase in the tax rate was due to tax planning strategies which benefited the tax rate in second-quarter 2011.

•

In the second-quarter 2012, SEI purchased 2.25 million shares of its common stock for $42.2 million.

Earnings Conference Call

A conference call to review earnings is scheduled for 2:00 PM ET on July 18, 2012. Investors may listen to the call at www.seic.com/investors or listen at www.earnings.com, 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) 1-800-475-6701; (International) 320-365-3844, access code 254406.

About SEI

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, 2012, through its subsidiaries and partnerships in which the company has a significant interest, SEI manages or administers $424 billion in mutual fund and pooled or separately managed assets, including $182 billion in assets under management and $242 billion in client assets under administration. For more information, visit www.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)


	Three Months Ended June 30,
	2012			2011

Asset management, admin. and distribution fees	$	176,613		$	172,331
Information processing and software servicing fees		57,254			56,035
Transaction–based and trade execution fees		7,370			9,394


Total revenues		241,237			237,760

Subadvisory, distribution and other asset mgmt costs		25,884			26,304
Software royalties and other information processing costs		5,228			7,188
Brokerage commissions		5,634			6,599
Compensation, benefits and other personnel		80,531			72,613
Stock-based compensation		3,865			3,810
Consulting, outsourcing and professional fees		26,329			29,398
Data processing and computer related		11,659			11,610
Facilities, supplies and other costs		15,272			14,098
Amortization		7,407			6,792
Depreciation		5,630			5,391


Total expenses		187,439			183,803

Income from operations		53,798			53,957

Net gain (loss) on investments		664			(1,948	)
Interest and dividend income		1,440			1,436
Interest expense		(113	)		(155	)
Equity in earnings of unconsolidated affiliate		22,712			29,530


Net income before income taxes		78,501			82,820

Income taxes		28,762			28,707


Net income		49,739			54,113


Less: Net income attributable to the noncontrolling interest		(184	)		(510	)


Net income attributable to SEI	$	49,555		$	53,603


Diluted earnings per common share	$	0.28		$	0.29


Shares used to calculate diluted earnings per common share		175,913			187,020


Basic earnings per common share	$	0.28		$	0.29


Shares used to calculate basic earnings per common share		174,830			184,585

SEI INVESTMENTS COMPANY

CONSOLIDATED STATEMENTS OF OPERATIONS

(In thousands, except per share data)

(Unaudited)


	Six Months Ended June 30,
	2012			2011

Asset management, admin. and distribution fees	$	349,567		$	339,835
Information processing and software servicing fees		113,454			111,859
Transaction–based and trade execution fees		16,114			18,559


Total revenues		479,135			470,253

Subadvisory, distribution and other asset mgmt costs		54,351			52,600
Software royalties and other information processing costs		11,705			14,205
Brokerage commissions		11,941			13,180
Compensation, benefits and other personnel		159,074			143,638
Stock-based compensation		7,898			7,542
Consulting, outsourcing and professional fees		53,284			55,396
Data processing and computer related		23,124			22,913
Facilities, supplies and other costs		29,780			28,200
Amortization		15,029			13,023
Depreciation		11,062			11,002


Total expenses		377,248			361,699

Income from operations		101,887			108,554

Net gain on investments		3,869			5,330
Interest and dividend income		2,927			2,980
Interest expense		(274	)		(359	)
Equity in earnings of unconsolidated affiliate		50,042			58,479


Net income before income taxes		158,451			174,984

Income taxes		58,477			62,831


Net income		99,974			112,153


Less: Net income attributable to the noncontrolling interest		(454	)		(822	)


Net income attributable to SEI	$	99,520		$	111,331


Diluted earnings per common share	$	0.56		$	0.59


Shares used to calculate diluted earnings per common share		176,791			187,757


Basic earnings per common share	$	0.57		$	0.60


Shares used to calculate basic earnings per common share		175,589			185,186

SEI INVESTMENTS COMPANY

CONDENSED BALANCE SHEETS

(In thousands)

(Unaudited)


	June 30, 2012		December 31, 2011
Assets

Cash and short-term investments	$	347,494	$	420,986
Restricted cash		6,000		6,000
Receivables, net		202,594		167,909
Securities owned		21,057		20,949
Other current assets		18,265		19,107


Total current assets		595,410		634,951

Property and equipment, net		135,011		129,548
Marketable securities		134,491		139,333
Capitalized software, net		312,815		309,133
Investment in unconsolidated affiliate		63,553		60,954
Other assets, net		23,582		20,640


Total assets	$	1,264,862	$	1,294,559


Liabilities

Current liabilities	$	105,383	$	151,073
Deferred income taxes		91,819		93,751
Other Long-term liabilities		10,632		8,276

Total SEI Investments Company shareholders’ equity		1,040,102		1,025,316
Noncontrolling interest		16,926		16,143

Total Equity		1,057,028		1,041,459

Total liabilities and equity	$	1,264,862	$	1,294,559

SEI INVESTMENTS COMPANY

ENDING ASSET BALANCES

(In millions)

(Unaudited)


	Jun. 30, 2011		Sept. 30, 2011		Dec. 31, 2011		Mar. 31, 2012		Jun. 30, 2012
Private Banks:
Equity/Fixed Income prgms.	$	16,720	$	15,442	$	16,435	$	17,180	$	16,848
Collective Trust Fund prgms.		504		476		450		435		335
Liquidity funds		4,918		5,529		5,553		5,549		5,063

Total assets under mgmt.	$	22,142	$	21,447	$	22,438	$	23,164	$	22,246

Client assets under admin.		10,994		9,845		10,355		10,916		10,719

Total assets	$	33,136	$	31,292	$	32,793	$	34,080	$	32,965

Investment Advisors:
Equity/Fixed Income prgms.	$	28,410	$	24,757	$	26,639	$	29,722	$	29,153
Collective Trust Fund prgms.		1,499		1,392		1,298		1,199		705
Liquidity funds		1,651		2,653		2,505		1,643		1,880

Total assets under mgmt.	$	31,560	$	28,802	$	30,442	$	32,564	$	31,738

Institutional Investors:
Equity/Fixed Income prgms.	$	51,180	$	46,259	$	49,051	$	54,537	$	55,548
Collective Trust Fund prgms.		482		510		492		424		415
Liquidity funds		3,146		3,356		3,888		3,725		2,958

Total assets under mgmt.	$	54,808	$	50,125	$	53,431	$	58,686	$	58,921

Investment Managers:
Equity/Fixed Income prgms.	$	50	$	64	$	57	$	62	$	61
Collective Trust Fund prgms.		10,372		10,896		11,255		12,781		13,004
Liquidity funds		179		195		152		147		226

Total assets under mgmt.	$	10,601	$	11,155	$	11,464	$	12,990	$	13,291

Client assets under admin. (A)		238,432		223,620		221,198		228,327		231,549

Total assets	$	249,033	$	234,775	$	232,662	$	241,317	$	244,840

Investments in New Businesses:
Equity/Fixed Income prgms.	$	558	$	490	$	515	$	568	$	551
Liquidity funds		41		41		37		34		30

Total assets under mgmt.	$	599	$	531	$	552	$	602	$	581

LSV Asset Management
Equity/Fixed Income prgms.	$	60,626	$	49,444	$	53,712	$	60,607	$	54,922

Consolidated:
Equity/Fixed Income prgms (B)	$	157,544	$	136,456	$	146,409	$	162,676	$	157,083
Collective Trust Fund prgms.		12,857		13,274		13,495		14,839		14,459
Liquidity funds		9,935		11,774		12,135		11,098		10,157

Total assets under mgmt.	$	180,336	$	161,504	$	172,039	$	188,613	$	181,699

Client assets under admin. (C)		249,426		233,465		231,553		239,243		242,268

Total assets	$	429,762	$	394,969	$	403,592	$	427,856	$	423,967

(A)	Client assets under administration in the Investment Managers segment include $38.4 billion of assets balances that require limited services and therefore are at fee levels below our normal full service assets (as of June 30, 2012).

(B)	Equity/Fixed Income programs include $2.6 billion of assets invested in various asset allocation funds at June 30, 2012.

(C)	In addition to the numbers presented, SEI also administers an additional $4.6 billion in Funds of Funds assets (as of June 30, 2012) on which SEI does not earn an administration fee.

SEI INVESTMENTS COMPANY

AVERAGE ASSET BALANCES

(In millions)

(Unaudited)


	2nd Qtr. 2011		3rd Qtr. 2011		4th Qtr. 2011		1st Qtr. 2012		2nd Qtr. 2012
Private Banks:
Equity/Fixed Income prgms.	$	16,176	$	16,592	$	16,624	$	17,116	$	16,794
Collective Trust Fund prgms.		543		505		464		436		396
Liquidity funds		4,909		5,210		5,401		5,581		5,115

Total assets under mgmt.	$	21,628	$	22,307	$	22,489	$	23,133	$	22,305

Client assets under admin.		11,114		10,364		10,290		10,211		10,631

Total assets	$	32,742	$	32,671	$	32,779	$	33,344	$	32,936

Investment Advisors:
Equity/Fixed Income prgms.	$	28,502	$	26,658	$	26,094	$	28,426	$	29,103
Collective Trust Fund prgms.		1,544		1,442		1,314		1,238		984
Liquidity funds		1,576		2,224		2,499		2,015		1,806

Total assets under mgmt.	$	31,622	$	30,324	$	29,907	$	31,679	$	31,893

Institutional Investors:
Equity/Fixed Income prgms.	$	51,567	$	49,115	$	48,504	$	52,270	$	54,998
Collective Trust Fund prgms.		554		505		500		427		418
Liquidity funds		3,515		3,416		3,461		3,765		3,147

Total assets under mgmt.	$	55,636	$	53,036	$	52,465	$	56,462	$	58,563

Investment Managers:
Equity/Fixed Income prgms.	$	38	$	52	$	65	$	58	$	63
Collective Trust Fund prgms.		9,560		11,292		10,773		11,983		12,991
Liquidity funds		165		200		219		190		235

Total assets under mgmt.	$	9,763	$	11,544	$	11,057	$	12,231	$	13,289

Client assets under admin.		241,423		236,953		224,633		224,547		229,873

Total assets	$	251,186	$	248,497	$	235,690	$	236,778	$	243,162

Investments in New Businesses:
Equity/Fixed Income prgms.	$	561	$	525	$	515	$	549	$	550
Liquidity funds		42		42		42		39		33

Total assets under mgmt.	$	603	$	567	$	557	$	588	$	583

LSV Asset Management
Equity/Fixed Income prgms.	$	63,000	$	54,679	$	54,021	$	59,200	$	55,994

Consolidated:
Equity/Fixed Income prgms	$	159,844	$	147,621	$	145,823	$	157,619	$	157,502
Collective Trust Fund prgms.		12,201		13,744		13,051		14,084		14,789
Liquidity funds		10,207		11,092		11,622		11,590		10,336

Total assets under mgmt.	$	182,252	$	172,457	$	170,496	$	183,293	$	182,627

Client assets under admin.		252,537		247,317		234,923		234,758		240,504

Total assets	$	434,789	$	419,774	$	405,419	$	418,051	$	423,131

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