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 20, 2004
(Date of Report)
SEI Investments Company
(Exact name of registrant as specified in 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 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 19, 2004 |
Item 12. Disclosure of Results of Operations and Financial Condition.
On Monday, April 19, 2004, SEI Investments Company issued a press release announcing its first quarter earnings for the fiscal quarter ending March 31, 2004. A copy of the press release is attached hereto as Exhibit 99.1.
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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 20, 2004 |
By: |
/s/ Dennis J. McGonigle | ||
| Dennis J. McGonigle | ||||
| Chief Financial Officer | ||||
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EXHIBIT INDEX
| Exhibit Number |
Description | |
| 99.1 | Press Release of SEI Investments Company, dated April 19, 2004 |
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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 2004 Results
Earnings Up 12%, Revenues Gain 9%
Oaks, PA—April 19, 2004—SEI Investments Company (NASDAQ:SEIC) today announced financial results for first-quarter 2004, reporting an increase in revenues, net income and earnings per share versus first-quarter 2003.
Consolidated Overview
| (In thousands, except earnings per share) | For the Three Months Ended march 31, |
||||||||
| 2004 |
2003 |
% |
|||||||
| Revenues |
$ | 167,161 | $ | 152,841 | 9 | % | |||
| Net Income Before Taxes |
61,818 | 55,695 | 11 | % | |||||
| Net Income |
39,409 | 35,088 | 12 | % | |||||
| Diluted Earnings Per Share |
$ | .37 | $ | .32 | 16 | % | |||
“I am pleased to report continued progress in our results,” said Alfred P. West, Jr., SEI Chairman and CEO.
“While we continue to experience modest increases in revenues, net income and earnings per share, we are most encouraged at being able to deliver these results at a time when we are making significant investment in the development of our new strategies for all our markets. The market’s interest in our new solutions and an improving business climate give us cause to be optimistic about our long-term future.”
Summary of First-Quarter 2004 and Year-to-Date Results by Business Segment
| (In thousands) | For the Three Month Period Ended March 31, |
||||||||||
| 2004 |
2003 |
% |
|||||||||
| Private Banking and Trust: |
|||||||||||
| Revenues |
$ | 74,593 | $ | 79,060 | (6 | )% | |||||
| Operating Profit |
$ | 27,503 | $ | 33,601 | (18 | )% | |||||
| Operating Margin |
37 | % | 43 | % | |||||||
| Investment Advisors: |
|||||||||||
| Revenues |
43,183 | 35,913 | 20 | % | |||||||
| Operating Profit |
23,821 | 19,603 | 22 | % | |||||||
| Operating Margin |
55 | % | 55 | % | |||||||
| Enterprises: |
|||||||||||
| Revenues |
16,235 | 14,024 | 16 | % | |||||||
| Operating Profit |
7,844 | 6,436 | 22 | % | |||||||
| Operating Margin |
48 | % | 46 | % | |||||||
| Money Managers: |
|||||||||||
| Revenues |
16,904 | 12,403 | 36 | % | |||||||
| Operating Profit |
2,916 | 1,970 | 48 | % | |||||||
| Operating Margin |
17 | % | 16 | % | |||||||
| Investments in New Businesses: |
|||||||||||
| Revenues |
16,246 | 11,441 | 42 | % | |||||||
| Operating Loss |
(4,725 | ) | (4,446 | ) | 6 | % | |||||
| Operating Margin |
(29 | )% | (39 | )% | |||||||
| Consolidated Segment Totals: |
|||||||||||
| Revenues |
$ | 167,161 | $ | 152,841 | 9 | % | |||||
| Segment Profit |
$ | 57,359 | $ | 57,164 | — | ||||||
| Segment Margin |
34 | % | 37 | % | |||||||
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First-Quarter Business Commentary:
| • | The Private Banking & Trust segment showed declines vs. year ago and prior quarter levels due to previously reported losses in fund processing revenues as well as one-time investment processing revenues. |
| • | The Investment Advisors, Enterprises, Money Managers and Investments in New Business segments all posted revenue gains vs. both year ago and prior quarter levels. |
| • | Income from Operations was down slightly vs. year ago and prior quarter as investments in our strategies, and sales and marketing expenses, increased to cover the development and distribution of our new solutions. |
| • | Assets under management grew to a record high of $96.1 billion. |
| • | In the first-quarter 2004, SEI purchased 948,000 shares of its common stock for $31.8 million. |
Earnings Conference Call
A conference call to review earnings is scheduled for 2:00 PM EDST on April 19, 2004. Investors may listen to the call at www.seic.com, or at www.fulldisclosure.com, a service of CCBN Streetevents. The call may also be accessed at numerous financial services web sites such as AOL, Forbes, Motley Fool 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 727605.
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, 2004, SEI administers over $272 billion in mutual fund and pooled assets, manages over $96 billion in assets, processes almost $50 trillion of investment transactions annually and operates 22 offices in 11 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.
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SEI INVESTMENTS COMPANY
CONSOLIDATED STATEMENTS OF INCOME
(In thousands, except per share data)
| Three Months Ended March 31, |
||||||||
| 2004 |
2003 |
|||||||
| Revenues |
$ | 167,161 | $ | 152,841 | ||||
| Operating and development expenses |
78,732 | 68,290 | ||||||
| Sales and marketing expenses |
31,070 | 27,387 | ||||||
| General and administrative expenses |
7,786 | 5,651 | ||||||
| Income before interest and taxes |
49,573 | 51,513 | ||||||
| Equity in earnings of unconsolidated affiliate |
9,003 | 3,614 | ||||||
| Net gain (loss) on investments |
2,935 | (106 | ) | |||||
| Interest income |
933 | 1,242 | ||||||
| Interest expense |
(626 | ) | (568 | ) | ||||
| Income before taxes |
61,818 | 55,695 | ||||||
| Income taxes |
22,409 | 20,607 | ||||||
| Net income |
$ | 39,409 | $ | 35,088 | ||||
| Diluted earnings per common share |
$ | .37 | $ | .32 | ||||
| Shares used to calculate diluted earnings per common share |
107,449 | 109,566 | ||||||
| Basic earnings per common share |
$ | .38 | $ | .33 | ||||
| Shares used to calculate basic earnings per common share |
104,878 | 105,766 | ||||||
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SEI INVESTMENTS COMPANY
CONDENSED BALANCE SHEETS
(In thousands)
| March 31, 2004 |
December 31, 2003 | |||||
| Assets | ||||||
| Cash and short-term investments |
$ | 194,189 | $ | 199,953 | ||
| Restricted cash |
31,501 | 53,481 | ||||
| Receivables |
91,354 | 86,612 | ||||
| Other current assets |
13,247 | 12,367 | ||||
| Total current assets |
330,291 | 352,413 | ||||
| Property and equipment, net |
112,171 | 113,064 | ||||
| Investments available for sale |
66,651 | 70,560 | ||||
| Other assets |
66,205 | 56,592 | ||||
| Total assets |
$ | 575,318 | $ | 592,629 | ||
| Liabilities | ||||||
| Current liabilities |
$ | 167,754 | $ | 193,474 | ||
| Long-term debt |
18,556 | 23,944 | ||||
| Deferred income taxes |
12,698 | 11,438 | ||||
| Shareholders’ Equity | 376,310 | 363,773 | ||||
| Total liabilities and shareholders’ equity |
$ | 575,318 | $ | 592,629 | ||
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SEI Investments Business Segments
| (In thousands) | Three Months ended Mar. 31, |
|||||||
| 2004 |
2003 |
|||||||
| Private Banking and Trust: |
||||||||
| Revenues* |
||||||||
| Investment processing fees |
55,853 | 56,678 | ||||||
| Fund processing fees |
9,701 | 12,335 | ||||||
| Investment management fees |
9,039 | 10,047 | ||||||
| Total Revenues |
74,593 | 79,060 | ||||||
| Operating and development expenses |
37,810 | 36,879 | ||||||
| Sales and marketing expenses |
9,280 | 8,580 | ||||||
| Operating Profit |
27,503 | 33,601 | ||||||
| Operating Margin |
37 | % | 43 | % | ||||
| Investment Advisors: |
||||||||
| Revenues |
43,183 | 35,913 | ||||||
| Operating and development expenses |
12,496 | 10,028 | ||||||
| Sales and marketing expenses |
6,866 | 6,282 | ||||||
| Operating Profit |
23,821 | 19,603 | ||||||
| Operating Margin |
55 | % | 55 | % | ||||
| Enterprises: |
||||||||
| Revenues |
16,235 | 14,024 | ||||||
| Operating and development expenses |
4,070 | 3,562 | ||||||
| Sales and marketing expenses |
4,321 | 4,026 | ||||||
| Operating Profit |
7,844 | 6,436 | ||||||
| Operating Margin |
48 | % | 46 | % | ||||
| Money Managers: |
||||||||
| Revenues* |
16,904 | 12,403 | ||||||
| Operating and development expenses |
10,474 | 7,314 | ||||||
| Sales and marketing expenses |
3,514 | 3,119 | ||||||
| Operating Profit |
2,916 | 1,970 | ||||||
| Operating Margin |
17 | % | 16 | % | ||||
| Investments in New Businesses: |
||||||||
| Revenues |
16,246 | 11,441 | ||||||
| Operating and development expenses |
13,882 | 10,507 | ||||||
| Sales and marketing expenses |
7,089 | 5,380 | ||||||
| Operating Loss |
(4,725 | ) | (4,446 | ) | ||||
| Operating Margin |
(29 | )% | (39 | )% | ||||
| Consolidated: |
||||||||
| Revenues |
$ | 167,161 | $ | 152,841 | ||||
| Operating and development expenses |
78,732 | 68,290 | ||||||
| Sales and marketing expenses |
31,070 | 27,387 | ||||||
| General and Administrative expenses |
7,786 | 5,651 | ||||||
| Income from Operations |
$ | 49,573 | $ | 51,513 | ||||
| Operating Margin |
30 | % | 34 | % | ||||
| * | Certain amounts for prior years have been reclassified to conform to current-year presentation. |
6
SEI INVESTMENTS COMPANY
ASSET BALANCES
(In millions)
| Mar. 31, 2003 |
June 30, 2003 |
Sept. 30, 2003 |
Dec. 31, 2003 |
Mar. 31, 2004 | |||||||||||
| Private Banking & Trust: |
|||||||||||||||
| Equity/Fixed Income prgms. |
$ | 2,403 | $ | 2,639 | $ | 2,615 | $ | 2,717 | $ | 2,759 | |||||
| Collective Trust Fund prgm |
1,232 | 1,240 | 1,265 | 1,326 | 1,357 | ||||||||||
| Liquidity funds |
13,257 | 12,653 | 11,026 | 8,424 | 8,312 | ||||||||||
| Total assets under mgmt. |
16,892 | 16,532 | 14,906 | 12,467 | 12,428 | ||||||||||
| Client assets under admin. |
72,078 | 60,124 | 61,174 | 61,285 | 62,775 | ||||||||||
| Total assets under admin. |
$ | 88,970 | $ | 76,656 | $ | 76,080 | $ | 73,752 | $ | 75,203 | |||||
| Investment Advisors: |
|||||||||||||||
| Equity/Fixed Income prgms. |
$ | 19,707 | $ | 22,075 | $ | 22,376 | $ | 24,150 | $ | 25,295 | |||||
| Collective Trust Fund prgm |
2,580 | 2,583 | 2,644 | 2,481 | 2,454 | ||||||||||
| Liquidity funds |
1,558 | 1,434 | 1,252 | 1,131 | 1,095 | ||||||||||
| Total assets under mgmt. |
$ | 23,845 | $ | 26,092 | $ | 26,272 | $ | 27,762 | $ | 28,844 | |||||
| Enterprises: |
|||||||||||||||
| Equity/Fixed Income prgms. |
$ | 10,135 | $ | 11,365 | $ | 12,049 | $ | 13,324 | $ | 13,303 | |||||
| Collective Trust Fund prgm |
729 | 735 | 741 | 776 | 783 | ||||||||||
| Liquidity funds |
4,277 | 5,148 | 4,861 | 3,443 | 3,802 | ||||||||||
| Total assets under mgmt. |
$ | 15,141 | $ | 17,248 | $ | 17,651 | $ | 17,543 | $ | 17,888 | |||||
| Money Managers: |
|||||||||||||||
| Equity/Fixed Income prgms. |
$ | 55 | $ | 50 | $ | 37 | $ | 41 | $ | 39 | |||||
| Collective Trust Fund prgm |
5,017 | 5,469 | 6,140 | 6,630 | 6,727 | ||||||||||
| Liquidity funds |
1,151 | 900 | 1,036 | 271 | 146 | ||||||||||
| Total assets under mgmt. |
6,223 | 6,419 | 7,213 | 6,942 | 6,912 | ||||||||||
| Client assets under admin. |
74,964 | 82,359 | 88,458 | 96,103 | 107,015 | ||||||||||
| Total assets under admin. |
$ | 81,187 | $ | 88,778 | $ | 95,671 | $ | 103,045 | $ | 113,927 | |||||
| Investments in New Businesses: |
|||||||||||||||
| Equity/Fixed Income prgms. |
$ | 7,654 | $ | 8,626 | $ | 8,874 | $ | 10,185 | $ | 11,511 | |||||
| Liquidity funds |
73 | 21 | 52 | 33 | 25 | ||||||||||
| Total assets under mgmt. |
7,727 | 8,647 | 8,926 | 10,218 | 11,536 | ||||||||||
| Client assets under admin. |
5,229 | 7,001 | 5,319 | 5,855 | 6,631 | ||||||||||
| Total assets under admin. |
$ | 12,956 | $ | 15,648 | $ | 14,245 | $ | 16,073 | $ | 18,167 | |||||
| Unconsolidated Affiliate: |
|||||||||||||||
| Equity/Fixed Income prgms |
$ | 8,391 | $ | 10,755 | $ | 12,435 | $ | 15,666 | $ | 18,444 | |||||
| Consolidated: |
|||||||||||||||
| Equity/Fixed Income prgms (A) |
$ | 48,345 | $ | 55,510 | $ | 58,386 | $ | 66,083 | $ | 71,351 | |||||
| Collective Trust Fund prgm |
9,558 | 10,027 | 10,790 | 11,213 | 11,321 | ||||||||||
| Liquidity funds |
20,316 | 20,156 | 18,227 | 13,302 | 13,380 | ||||||||||
| Total assets under mgmt. |
78,219 | 85,693 | 87,403 | 90,598 | 96,052 | ||||||||||
| Client assets under admin. |
152,271 | 149,484 | 154,951 | 163,243 | 176,421 | ||||||||||
| Total assets under admin. |
$ | 230,490 | $ | 235,177 | $ | 242,354 | $ | 253,841 | $ | 272,473 | |||||
| (A) | Equity/Fixed Income programs include $1,200 of assets invested in SEI’s Asset Allocation Funds at 3/31/04 |
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