PR Newswire
OAKS, Pa., Jan. 26, 2022
OAKS, Pa., Jan. 26, 2022 /PRNewswire/ -- SEI Investments Company (NASDAQ: SEIC) today announced financial results for the fourth-quarter 2021. Diluted earnings per share were $1.03 in fourth-quarter 2021 compared to $0.86 in fourth-quarter 2020.
Consolidated Overview | ||||||||||||
(In thousands, except | For the Three Months | For the Twelve Months | ||||||||||
2021 | 2020 | % | 2021 | 2020 | % | |||||||
Revenues | $501,650 | $443,723 | 13% | $1,918,309 | $1,684,058 | 14% | ||||||
Net income | 145,300 | 125,882 | 15% | 546,593 | 447,286 | 22% | ||||||
Diluted earnings per share | $1.03 | $0.86 | 20% | $3.81 | $3.00 | 27% |
"Our record financial results for 2021 reflect continued sales momentum, success in delivering our solutions to our markets, and positive capital markets. We've made significant progress in executing against our growth strategy," said Alfred P. West, Jr., SEI Chairman and CEO.
"We believe our recent acquisitions enhance our capabilities, expand our competitive market presence, and enhance our growth opportunities in our markets. We also continued our research and development investments that have advanced our technology and new business initiatives. At the core of our long-term success is a talented, dedicated workforce and tremendous leadership across SEI globally.
"As we continue to connect our markets to their future potential through our technology and investment solutions, we are well-positioned to continue seizing growth opportunities that will lead to increased shareholder value."
Summary of Fourth-Quarter Results by Business Segment | ||||||||||||
(In thousands) | For the Three Months | For the Twelve Months | ||||||||||
2021 | 2020 | % | 2021 | 2020 | % | |||||||
Private Banks: | ||||||||||||
Revenues | $129,268 | $119,654 | 8% | $493,570 | $455,393 | 8% | ||||||
Expenses | 117,739 | 115,039 | 2% | 462,796 | 446,481 | 4% | ||||||
Operating Profit | 11,529 | 4,615 | 150% | 30,774 | 8,912 | 245% | ||||||
Operating Margin | 9% | 4% | 6% | 2% | ||||||||
Investment Advisors: | ||||||||||||
Revenues | 125,491 | 108,346 | 16% | 482,949 | 407,564 | 18% | ||||||
Expenses | 64,067 | 51,813 | 24% | 240,334 | 205,913 | 17% | ||||||
Operating Profit | 61,424 | 56,533 | 9% | 242,615 | 201,651 | 20% | ||||||
Operating Margin | 49% | 52% | 50% | 49% | ||||||||
Institutional Investors: | ||||||||||||
Revenues | 87,848 | 82,318 | 7% | 343,805 | 317,627 | 8% | ||||||
Expenses | 45,374 | 36,893 | 23% | 168,070 | 149,909 | 12% | ||||||
Operating Profit | 42,474 | 45,425 | (6)% | 175,735 | 167,718 | 5% | ||||||
Operating Margin | 48% | 55% | 51% | 53% | ||||||||
Investment Managers: | ||||||||||||
Revenues | 154,518 | 129,647 | 19% | 581,157 | 489,462 | 19% | ||||||
Expenses | 91,046 | 80,204 | 14% | 348,655 | 308,999 | 13% | ||||||
Operating Profit | 63,472 | 49,443 | 28% | 232,502 | 180,463 | 29% | ||||||
Operating Margin | 41% | 38% | 40% | 37% | ||||||||
Investments in New Businesses: | ||||||||||||
Revenues | 4,525 | 3,758 | 20% | 16,828 | 14,012 | 20% | ||||||
Expenses | 13,364 | 15,180 | (12)% | 53,219 | 52,871 | 1% | ||||||
Operating Loss | (8,839) | (11,422) | NM | (36,391) | (38,859) | NM | ||||||
Totals: | ||||||||||||
Revenues | $501,650 | $443,723 | 13% | $1,918,309 | $1,684,058 | 14% | ||||||
Expenses | 331,590 | 299,129 | 11% | 1,273,074 | 1,164,173 | 9% | ||||||
Corporate Overhead Expenses | 26,662 | 20,584 | 30% | 91,854 | 73,998 | 24% | ||||||
Income from Operations | $143,398 | $124,010 | 16% | $553,381 | $445,887 | 24% |
Fourth-Quarter Business Highlights:
Earnings Conference Call
A conference call to review earnings is scheduled for 4:30 p.m. Eastern time on Jan. 26, 2022. Investors may listen to the call at seic.com/ir-events. Investors may also listen to a replay by telephone at (USA) 866-207-1041; (International) 402-970-0847; Access Code: 1785544.
About SEI®
SEI (NASDAQ:SEIC) delivers technology and investment solutions that connect the financial services industry. With capabilities across investment processing, operations, and asset management, SEI works with corporations, financial institutions and professionals, and ultra-high-net-worth families to solve problems, manage change, and help protect assets—for growth today and in the future. As of Dec. 31, 2021, SEI manages, advises, or administers approximately $1.3 trillion in assets. For more information, visit seic.com.
This release contains forward-looking statements within the meaning or the rules and regulations of the Securities and Exchange Commission. In some cases you can identify forward-looking statements by terminology, such as "may," "will," "expect," "believe" and "continue" or "appear." Our forward-looking statements include our current expectations as to:
We anticipate that we may deliver forward-looking statements during today's earnings call that include our current expectations as to the matters in this release and set forth above as well as:
You should not place undue reliance on our forward-looking statements, as they are based on the current beliefs and expectations of our management and subject to significant risks and uncertainties, many of which are beyond our control or are subject to change. Although we believe the assumptions upon which we base our forward-looking statements are reasonable, they could be inaccurate. Some of the risks and important factors that could cause actual results to differ from those described in our forward-looking statements can be found in the "Risk Factors" section of our Annual Report on Form 10-K for the year ended Dec. 31, 2020, filed with the Securities and Exchange Commission.
SEI INVESTMENTS COMPANY CONSOLIDATED STATEMENTS OF OPERATIONS (In thousands, except per share data) (Unaudited)
| ||||||||
For the Three Months | For the Twelve Months | |||||||
2021 | 2020 | 2021 | 2020 | |||||
Asset management, admin. and distribution fees | $403,565 | $353,610 | $1,547,016 | $1,345,649 | ||||
Information processing and software servicing fees | 98,085 | 90,113 | 371,293 | 338,409 | ||||
Total revenues | 501,650 | 443,723 | 1,918,309 | 1,684,058 | ||||
Subadvisory, distribution and other asset mgmt. costs | 56,458 | 46,973 | 218,068 | 181,618 | ||||
Software royalties and other information processing costs | 7,198 | 7,109 | 27,759 | 28,937 | ||||
Compensation, benefits and other personnel | 155,309 | 135,902 | 584,497 | 527,509 | ||||
Stock-based compensation | 10,278 | 6,556 | 41,451 | 27,014 | ||||
Consulting, outsourcing and professional fees | 57,543 | 59,566 | 223,200 | 227,916 | ||||
Data processing and computer related | 27,814 | 24,681 | 107,560 | 96,328 | ||||
Facilities, supplies and other costs | 19,909 | 17,467 | 69,760 | 64,915 | ||||
Amortization | 15,403 | 13,558 | 59,152 | 52,975 | ||||
Depreciation | 8,340 | 7,901 | 33,481 | 30,959 | ||||
Total expenses | 358,252 | 319,713 | 1,364,928 | 1,238,171 | ||||
Income from operations | 143,398 | 124,010 | 553,381 | 445,887 | ||||
Net (loss) gain on investments | (500) | 1,024 | (366) | (286) | ||||
Interest and dividend income | 934 | 986 | 3,649 | 6,568 | ||||
Interest expense | (209) | (153) | (563) | (609) | ||||
Equity in earnings of unconsolidated affiliate | 34,152 | 30,646 | 137,572 | 117,134 | ||||
Income before income taxes | 177,775 | 156,513 | 693,673 | 568,694 | ||||
Income taxes | 32,475 | 30,631 | 147,080 | 121,408 | ||||
Net income | $145,300 | $125,882 | $546,593 | $447,286 | ||||
Basic earnings per common share | $1.04 | $0.87 | $3.87 | $3.05 | ||||
Shares used to calculate basic earnings per share | 139,080 | 144,077 | 141,216 | 146,709 | ||||
Diluted earnings per common share | $1.03 | $0.86 | $3.81 | $3.00 | ||||
Shares used to calculate diluted earnings per share | 141,305 | 146,140 | 143,312 | 149,003 | ||||
Dividends declared per common share | $0.40 | $0.37 | $0.77 | $0.72 |
SEI INVESTMENTS COMPANY CONSOLIDATED BALANCE SHEETS (In thousands) (Unaudited)
| ||||
Dec. 31, | Dec. 31, | |||
2021 | 2020 | |||
Assets | ||||
Current Assets: | ||||
Cash and cash equivalents | $825,210 | $784,626 | ||
Restricted cash | 351 | 3,101 | ||
Receivables from investment products | 59,036 | 55,271 | ||
Receivables, net of allowance for doubtful accounts of $1,602 and $1,100 | 441,609 | 385,219 | ||
Securities owned | 28,267 | 34,064 | ||
Other current assets | 43,559 | 38,696 | ||
Total Current Assets | 1,398,032 | 1,300,977 | ||
Property and Equipment, net of accumulated depreciation of $409,248 and $378,639 | 178,869 | 189,052 | ||
Operating Lease Right-of-Use Assets | 33,614 | 38,397 | ||
Capitalized Software, net of accumulated amortization of $545,307 and $491,739 | 243,446 | 270,977 | ||
Available for Sale and Equity Securities | 129,541 | 105,419 | ||
Investments in Affiliated Funds, at fair value | 6,916 | 6,166 | ||
Investment in Unconsolidated Affiliate | 107,918 | 98,433 | ||
Goodwill and Intangible Assets, net | 186,014 | 88,793 | ||
Deferred Contract Costs | 36,236 | 33,781 | ||
Deferred Income Taxes | 8,809 | 2,972 | ||
Other Assets, net | 24,936 | 32,289 | ||
Total Assets | $2,354,331 | $2,167,256 | ||
Liabilities and Equity | ||||
Current Liabilities: | ||||
Accounts payable | $10,312 | $7,766 | ||
Accrued liabilities | 318,185 | 299,845 | ||
Current portion of long-term operating lease liabilities | 11,328 | 8,579 | ||
Deferred revenue | 9,721 | 1,085 | ||
Total Current Liabilities | 349,546 | 317,275 | ||
Borrowings Under Revolving Credit Facility | 40,000 | — | ||
Long-term Income Taxes Payable | 803 | 803 | ||
Deferred Income Taxes | 54,702 | 55,159 | ||
Long-term Operating Lease Liabilities | 27,639 | 34,058 | ||
Other Long-term Liabilities | 20,878 | 20,054 | ||
Total Liabilities | 493,568 | 427,349 | ||
Shareholders' Equity: | ||||
Common stock, $0.01 par value, 750,000 shares authorized; 138,449 and 143,396 | 1,384 | 1,434 | ||
Capital in excess of par value | 1,246,608 | 1,190,001 | ||
Retained earnings | 632,614 | 565,270 | ||
Accumulated other comprehensive loss, net | (19,843) | (16,798) | ||
Total Shareholders' Equity | 1,860,763 | 1,739,907 | ||
Total Liabilities and Shareholders' Equity | $2,354,331 | $2,167,256 |
ENDING ASSET BALANCES (In millions) (Unaudited)
| ||||||||||
Dec. 31, | Mar. 31, | Jun. 30, | Sept. 30, | Dec. 31, | ||||||
2020 | 2021 | 2021 | 2021 | 2021 | ||||||
Private Banks: | ||||||||||
Equity and fixed-income programs | $25,498 | $25,098 | $26,264 | $25,618 | $26,281 | |||||
Collective trust fund programs | 6 | 7 | 7 | 6 | 6 | |||||
Liquidity funds | 3,778 | 3,793 | 3,654 | 3,988 | 4,724 | |||||
Total assets under management | $29,282 | $28,898 | $29,925 | $29,612 | $31,011 | |||||
Client assets under administration | 26,346 | 4,379 | 4,412 | 4,675 | 4,481 | |||||
Total assets | $55,628 | $33,277 | $34,337 | $34,287 | $35,492 | |||||
Investment Advisors: | ||||||||||
Equity and fixed-income programs | $71,248 | $73,819 | $78,053 | $78,560 | $81,686 | |||||
Liquidity funds | 3,832 | 3,584 | 3,550 | 3,477 | 4,317 | |||||
Total Platform assets under management | $75,080 | $77,403 | $81,603 | $82,037 | $86,003 | |||||
Platform-only assets (E) | 11,862 | 12,538 | 13,566 | 13,728 | 14,564 | |||||
Total Platform assets (E) | $86,942 | $89,941 | $95,169 | $95,765 | $100,567 | |||||
Institutional Investors: | ||||||||||
Equity and fixed-income programs | $90,869 | $92,040 | $93,010 | $89,441 | $91,719 | |||||
Collective trust fund programs | 98 | 95 | 5 | 5 | 5 | |||||
Liquidity funds | 2,128 | 2,909 | 2,516 | 2,599 | 2,118 | |||||
Total assets under management | $93,095 | $95,044 | $95,531 | $92,045 | $93,842 | |||||
Client assets under advisement | 4,063 | 4,333 | 4,566 | 4,698 | 4,857 | |||||
Total assets | $97,158 | $99,377 | $100,097 | $96,743 | $98,699 | |||||
Investment Managers: | ||||||||||
Collective trust fund programs | $ 75,214 | $ 78,304 | $ 87,012 | $ 87,488 | $ 92,549 | |||||
Liquidity funds | 424 | 449 | 473 | 568 | 423 | |||||
Total assets under management | $75,638 | $78,753 | $87,485 | $88,056 | $92,972 | |||||
Client assets under administration (A) | 760,397 | 831,819 | 875,942 | 861,605 | 907,377 | |||||
Total assets | $836,035 | $910,572 | $963,427 | $949,661 | $1,000,349 | |||||
Investments in New Businesses: | ||||||||||
Equity and fixed-income programs | $1,711 | $1,777 | $1,924 | $1,964 | $2,096 | |||||
Liquidity funds | 162 | 289 | 191 | 202 | 240 | |||||
Total assets under management | $1,873 | $2,066 | $2,115 | $2,166 | $2,336 | |||||
Client assets under administration | 1,299 | 1,355 | 1,422 | 1,378 | 1,410 | |||||
Total assets | $3,172 | $3,421 | $3,537 | $3,544 | $3,746 | |||||
LSV Asset Management: | ||||||||||
Equity and fixed-income programs (B) | $93,692 | $101,565 | $102,404 | $97,604 | $98,984 | |||||
Total: | ||||||||||
Equity and fixed-income programs (C) | $283,018 | $294,299 | $301,655 | $293,187 | $300,766 | |||||
Collective trust fund programs | 75,318 | 78,406 | 87,024 | 87,499 | 92,560 | |||||
Liquidity funds | 10,324 | 11,024 | 10,384 | 10,834 | 11,822 | |||||
Total assets under management | $368,660 | $383,729 | $399,063 | $391,520 | $405,148 | |||||
Client assets under advisement | 5,362 | 5,688 | 5,988 | 6,076 | 6,267 | |||||
Client assets under administration (D) | 786,743 | 836,198 | 880,354 | 866,280 | 911,858 | |||||
Platform-only assets | 11,862 | 12,538 | 13,566 | 13,728 | 14,564 | |||||
Total assets | $1,172,627 | $1,238,153 | $1,298,971 | $1,277,604 | $1,337,837 |
(A) | Client assets under administration in the Investment Managers segment include $12.4 billion of assets that are at fee |
(B) | Equity and fixed-income programs include $2.4 billion of assets managed by LSV in which fees are based on performance only (as of Dec. 31, 2021). |
(C) | Equity and fixed-income programs include $7.9 billion of assets invested in various asset allocation funds at Dec. 31, 2021. |
(D) | In addition to the numbers presented, SEI also administers an additional $14.4 billion in Funds of Funds assets (as of Dec. 31, 2021 on which SEI does not earn an administration fee. |
(E) | Platform assets under management and Platform-only assets combined are total Platform assets in the Investment Advisors segment. |
AVERAGE ASSET BALANCES (In millions) (Unaudited)
| ||||||||||
4th Qtr. | 1st Qtr. | 2nd Qtr. | 3rd Qtr. | 4th Qtr. | ||||||
2020 | 2021 | 2021 | 2021 | 2021 | ||||||
Private Banks: | ||||||||||
Equity and fixed-income programs | $24,284 | $25,139 | $26,056 | $26,232 | $25,999 | |||||
Collective trust fund programs | 6 | 6 | 7 | 6 | 6 | |||||
Liquidity funds | 3,712 | 3,876 | 3,833 | 3,916 | 4,452 | |||||
Total assets under management | $28,002 | $29,021 | $29,896 | $30,154 | $30,457 | |||||
Client assets under administration | 25,368 | 4,317 | 4,405 | 4,476 | 4,607 | |||||
Total assets | $53,370 | $33,338 | $34,301 | $34,630 | $35,064 | |||||
Investment Advisors: | ||||||||||
Equity and fixed-income programs | $68,398 | $73,240 | $76,840 | $79,602 | $80,703 | |||||
Liquidity funds | 3,788 | 3,619 | 3,370 | 3,403 | 3,644 | |||||
Total Platform assets under management | $72,186 | $76,859 | $80,210 | $83,005 | $84,347 | |||||
Platform-only assets (E) | 11,214 | 12,206 | 13,292 | 13,863 | 14,341 | |||||
Total Platform assets (E) | $83,400 | $89,065 | $93,502 | $96,868 | $98,688 | |||||
Institutional Investors: | ||||||||||
Equity and fixed-income programs | $86,277 | $91,349 | $93,458 | $91,965 | $90,557 | |||||
Collective trust fund programs | 102 | 96 | 68 | 5 | 5 | |||||
Liquidity funds | 2,271 | 2,621 | 2,681 | 2,742 | 2,391 | |||||
Total assets under management | $88,650 | $94,066 | $96,207 | $94,712 | $92,953 | |||||
Client assets under advisement | 3,746 | 4,146 | 4,516 | 4,658 | 4,812 | |||||
Total assets | $92,396 | $98,212 | $100,723 | $99,370 | $97,765 | |||||
Investment Managers: | ||||||||||
Collective trust fund programs | $ 69,349 | $ 78,035 | $ 84,553 | $ 89,441 | $ 90,457 | |||||
Liquidity funds | 411 | 490 | 469 | 532 | 491 | |||||
Total assets under management | $69,760 | $78,525 | $85,022 | $89,973 | $90,948 | |||||
Client assets under administration (A) | 754,350 | 817,330 | 853,810 | 851,183 | 879,718 | |||||
Total assets | $824,110 | $895,855 | $938,832 | $941,156 | $970,666 | |||||
Investments in New Businesses: | ||||||||||
Equity and fixed-income programs | $1,634 | $1,743 | $1,870 | $1,958 | $2,053 | |||||
Liquidity funds | 165 | 169 | 236 | 205 | 197 | |||||
Total assets under management | $1,799 | $1,912 | $2,106 | $2,163 | $2,250 | |||||
Client assets under advisement | 1,218 | 1,327 | 1,406 | 1,423 | 1,423 | |||||
Total assets | $3,017 | $3,239 | $3,512 | $3,586 | $3,673 | |||||
LSV Asset Management: | ||||||||||
Equity and fixed-income programs (B) | $88,182 | $97,476 | $103,583 | $99,924 | $97,381 | |||||
Total: | ||||||||||
Equity and fixed-income programs (C) | $268,775 | $288,947 | $301,807 | $299,681 | $296,693 | |||||
Collective trust fund programs | 69,457 | 78,137 | 84,628 | 89,452 | 90,468 | |||||
Liquidity funds | 10,347 | 10,775 | 10,589 | 10,798 | 11,175 | |||||
Total assets under management | $348,579 | $377,859 | $397,024 | $399,931 | $398,336 | |||||
Client assets under advisement | 4,964 | 5,473 | 5,922 | 6,081 | 6,235 | |||||
Client assets under administration (D) | 779,718 | 821,647 | 858,215 | 855,659 | 884,325 | |||||
Platform-only assets | 11,214 | 12,206 | 13,292 | 13,863 | 14,341 | |||||
Total assets | $1,144,475 | $1,217,185 | $1,274,453 | $1,275,534 | $1,303,237 |
(A) | Average client assets under administration in the Investment Managers segment during fourth-quarter 2021 include $12.3 |
(B) | Equity and fixed-income programs include $2.3 billion of average assets managed by LSV in which fees are based on performance only during fourth-quarter 2021. |
(C) | Equity and fixed-income programs include $7.9 billion of average assets invested in various asset allocation funds during fourth-quarter 2021. |
(D) | In addition to the numbers presented, SEI also administers an additional $14.0 billion of average assets in Funds of Funds assets during fourth-quarter 2021 on which SEI does not earn an administration fee. |
(E) | Platform assets under management and Platform-only assets combined are total Platform assets in the Investment Advisors segment. |
Investor Contact: | Media Contact: |
Lindsey Opsahl | Leslie Wojcik |
SEI | SEI |
+1 610-676-4052 | +1 610-676-4191 |
View original content:https://www.prnewswire.com/news-releases/sei-reports-fourth-quarter-2021-financial-results-301469006.html
SOURCE SEI Investments Company
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