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 April 17, 2003 (Date of Report) SEI Investments Company (Exact name of registrant as specified in charter) Pennsylvania 0-10200 23-1707341 (State or other jurisdiction (Commission (I.R.S. Employer of incorporation) File No.) 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 of former address, if changed since last report)
Item 7. Financial Statements and Exhibits. (c) Exhibits. 99.1 Press Release of SEI Investments Company, dated April 17, 2003 Item 9. Regulation FD Disclosure The information included in this section is intended to be included in "Item 12. Disclosure of Results of Operations and Financial Condition" and is included under this Item 9 in accordance with SEC Release No. 33-8216. On Thursday, April 17, 2003, SEI Investments Company issued a press release announcing its first quarter earnings for the fiscal quarter ending March 31, 2003. A copy of the press release is attached hereto as Exhibit 99.1.
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. SEI Investments Company Date: April 21, 2003 By: /s/ Dennis J. McGongile ----------------------------- Dennis J. McGongile Chief Financial Officer
EXHIBIT INDEX Exhibit Number Description - -------------- ----------- 99.1 Press Release of SEI Investments Company, dated April 17, 2003
Exhibit 99.1 For Immediate Release Contact: Mark Samuels, SVP Murray Louis, VP Larry Wexler Voice: 610.676.2024 610.676.1932 610.676.1440 E-Mail: msamuels@seic.com mlouis@seic.com lwexler@seic.com ----------------- --------------- ---------------- Pages: Seven SEI Investments Reports First-Quarter 2003 Earnings up 3% -------------------------------------------- Oaks, PA--April 17, 2003--SEI Investments Company (NASDAQ:SEIC) today announced financial results for first-quarter 2003, reporting increases in net income and earnings per share over the corresponding period for the prior year. Consolidated Overview For the Three Months (In thousands, except earnings per share) Ended March 31, -------------------------------- 2003 2002 % ---- ---- -- Revenues $150,605 $159,215 (5%) Net income before taxes 55,695 53,970 3% Net income 35,088 34,001 3% Diluted earnings per share $.32 $.30 7% "We are hopeful that 2003 will mark the end of the `decision freeze' and that 2004 will be the first of a string of positive years," said Alfred P. West, Jr., Chairman and CEO. "We will continue to invest in our strategic new business initiatives. We feel these are key investments which have potential for high payoff in the future, and we will not jeopardize that for the sake of short-term profits. We expect to accelerate these investments starting in the second quarter." Summary of First-Quarter 2003 Results by Business Segment 1
(In thousands) For the Three Month Period Ended March 31, ----------------------------------- 2003 2002 % ---- ---- -- Private Banking and Trust: Revenues $76,895 $82,958 (7%) Operating profit $33,601 $33,825 (1%) Operating margin 44% 41% Investment Advisors: Revenues 35,913 38,891 (8%) Operating profit 19,603 17,983 9% Operating margin 55% 46% Enterprises: Revenues 14,024 14,732 (5%) Operating profit 6,436 5,388 19% Operating margin 46% 37% Money Managers: Revenues 12,332 10,797 14% Operating profit 1,970 2,424 (19%) Operating margin 16% 22% Investments in New Businesses: Revenues 11,441 11,837 (3%) Operating loss (4,446) (3,289) (35%) Operating margin (39%) (28%) Consolidated Segment Totals: Revenues $150,605 $159,215 (5%) Operating profit $57,164 $56,331 1% Operating margin 38% 35% First-Quarter Business Commentary: . Private Banking & Trust year-over-year revenues were affected by losses in the mutual fund processing business as well as weakness in non-recurring revenues due to reduced transaction and one-time fees. . Continued weakness in the equity markets significantly affected revenues in all markets, with particular impact on the Investment Advisors and Enterprises segments. . While both the Enterprises and Investments in New Businesses segments experienced good new business quarters, weak capital markets offset most of the gains. . Expense management and leverage of existing operations continue to produce strong operating margins. o SEI purchased 1.6 million shares of its common stock at an average price of $24.58 for approximately $39 million in the first-quarter 2003. 2
Earnings Conference Call A conference call to review earnings is scheduled for 2:00 PM EDST, April 17, 2003. Investors may listen to the call at www.seic.com, or listen at ------------ www.companyboardroom.com, a service of CCBN. The call may also be accessed at - ------------------------ numerous financial services web sites including AOL, Motley Fool and Yahoo. Investors may also listen to replays (beginning at 9:00 PM) at these web sites, or by telephone at (USA) 1-800-475-6701, (International) 320-365-3844, access code 680584. About SEI SEI Investments (NASDAQ:SEIC) is a leading global provider of asset management and investment technology solutions. The company's innovative solutions help corporations, financial institutions, financial advisors, and affluent families create and manage wealth. As of the period ending March 31, 2003, SEI administers $230 billion in mutual fund and pooled assets, manages $78 billion in assets, processes almost $50 trillion of investment transactions annually and operates 21 offices in 10 countries. For more information, visit www.seic.com. ------------ Many of our responses 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. 3
SEI INVESTMENTS COMPANY CONSOLIDATED STATEMENTS OF INCOME (In thousands, except per share data) Three Months Ended March 31, ---------------------------- 2003 2002 ----------- ---------- Revenues $150,605 $159,215 Operating and development expenses 66,552 68,736 Sales and marketing expenses 26,889 34,148 General and administrative expenses 5,651 5,709 ----------- ----------- Income before interest and taxes 51,513 50,622 Equity in earnings of unconsolidated affiliate 3,614 2,679 Net loss on investments (106) -- Interest income 1,242 1,150 Interest expense (568) (481) ----------- ---------- Income before taxes 55,695 53,970 Income taxes 20,607 19,969 ----------- ---------- Net income $35,088 $34,001 =========== ========== Diluted earnings per common share $.32 $.30 =========== ========== Shares used to calculate diluted earnings per common share 109,566 114,984 =========== ========== Basic earnings per common share $.33 $.31 =========== ========== Shares used to calculate basic earnings per common share 105,766 109,396 =========== ========== 4
SEI INVESTMENTS COMPANY CONDENSED BALANCE SHEETS (In thousands) March 31, December 31, 2003 2002 ------------ ------------ Assets Cash and short-term investments $144,836 $165,724 Restricted Cash 10,000 10,000 Receivables 84,470 74,642 Other current assets 12,596 11,069 ------------ ------------ Total current assets 251,902 261,435 Property and Equipment, net 104,926 104,258 Investments available for sale 60,741 62,433 Other assets 35,098 36,021 ------------ ------------ Total assets $452,667 $464,147 ============ ============ Liabilities Current liabilities $125,366 $134,247 Long-term debt 28,111 33,500 Deferred income taxes 6,366 6,393 Shareholders' Equity 292,824 290,007 ------------ ------------ Total liabilities and shareholders' equity $452,667 $464,147 ============ ============ 5
SEI Investments Business Segments (In thousands) Three Months ended Mar. 31, --------------------------- 2003 2002 -------- -------- Private Banking and Trust: Revenues $76,895 $82,958 Operating and development expenses 35,141 38,424 Sales and marketing expenses 8,153 10,709 -------- -------- Operating profit 33,601 33,825 Operating margin 44% 41% Investment Advisors: Revenues 35,913 38,891 Operating and development expenses 10,028 10,275 Sales and marketing expenses 6,282 10,633 -------- -------- Operating profit 19,603 17,983 Operating margin 55% 46% Enterprises: Revenues 14,024 14,732 Operating and development expenses 3,562 4,618 Sales and marketing expenses 4,026 4,726 -------- -------- Operating profit 6,436 5,388 Operating margin 46% 37% Money Managers: Revenues 12,332 10,797 Operating and development expenses 7,314 5,467 Sales and marketing expenses 3,048 2,906 -------- -------- Operating profit 1,970 2,424 Operating margin 16% 22% Investments in New Businesses: Revenues 11,441 11,837 Operating and development expenses 10,507 9,952 Sales and marketing expenses 5,380 5,174 -------- -------- Operating loss (4,446) (3,289) Operating margin (39%) (28%) Consolidated Segment Totals: Revenues $150,605 $159,215 Operating and development expenses 66,552 68,736 Sales and marketing expenses 26,889 34,148 -------- -------- Operating profit $57,164 $56,331 Operating margin 38% 35% General and Administrative expenses 5,651 5,709 Income from operations $51,513 $50,622 Operating margin 34% 32% 6
SEI INVESTMENTS COMPANY ASSET BALANCES (In millions) Mar. 31, June 30, Sept. 30, Dec. 31, Mar. 31, 2002 2002 2002 2002 2003 ---- ---- ---- ---- ---- Private Banking & Trust Equity/Fixed Income prgms. $3,046 $2,842 $2,863 $3,332 $3,635 Liquidity funds 12,870 13,221 13,084 12,811 13,257 ------ ------ ------ ------ ------ Total assets under mgmt. 15,916 16,063 15,947 16,143 16,892 Client assets under admin. 95,801 93,539 85,931 83,652 72,078 ------ ------ ------ ------ ------ Total assets under admin. $111,717 $109,602 $101,878 $99,795 $88,970 Investment Advisors Equity/Fixed Income prgms. $26,520 $24,421 $21,876 $22,708 $22,287 Liquidity funds 1,460 1,385 1,340 1,444 1,558 ----- ----- ----- ----- ----- Total assets under mgmt. $27,980 $25,806 $23,216 $24,152 $23,845 Enterprises Equity/Fixed Income prgms. $11,194 $10,837 $10,098 $11,107 $10,864 Liquidity funds 4,143 4,428 4,145 5,148 4,277 ----- ----- ----- ----- ----- Total assets under mgmt. $15,337 $15,265 $14,243 $16,255 $15,141 Money Managers Equity/Fixed Income prgms. $2,936 $3,319 $4,040 $4,436 $5,072 Liquidity funds 1,298 1,006 1,086 1,350 1,151 ----- ----- ----- ----- ----- Total assets under mgmt. 4,234 4,325 5,126 5,786 6,223 Client assets under admin. 78,172 75,370 71,256 74,523 74,964 ------ ------ ------ ------ ------ Total assets under admin. $82,406 $79,695 $76,382 $80,309 $81,187 Investments in New Businesses Equity/Fixed Income prgms. $8,065 $7,844 $7,318 $7,544 $7,654 Liquidity funds 345 380 108 219 73 --- --- --- --- -- Total assets under mgmt. 8,410 8,224 7,426 7,763 7,727 Client assets under admin. 3,992 3,854 4,020 4,894 5,229 ----- ----- ----- ----- ----- Total assets under admin. $12,402 $12,078 $11,446 $12,657 $12,956 Unconsolidated Affiliate Equity/Fixed Income prgms $7,085 $7,099 $6,255 $7,874 $8,391 Consolidated Equity/Fixed Income prgms. $58,846 $56,362 $52,450 $57,001 $57,903 Liquidity funds 20,116 20,420 19,763 20,972 20,316 ------ ------ ------ ------ ------ Total assets under mgmt. 78,962 76,782 72,213 77,973 78,219 Client assets under admin. 177,965 172,763 161,207 163,069 152,271 ------- ------- ------- ------- ------- Total assets under admin. $256,927 $249,545 $233,420 $241,042 $230,490 7