PR Newswire
OAKS, Pa., Jan. 25, 2023
OAKS, Pa., Jan. 25, 2023 /PRNewswire/ -- SEI Investments Company (NASDAQ:SEIC) today announced financial results for the fourth-quarter 2022. Diluted earnings per share were $0.83 in fourth-quarter 2022 compared to $1.03 in fourth-quarter 2021.
Consolidated Overview | ||||||||||||
(In thousands, except | For the Three Months | For the Twelve Months | ||||||||||
2022 | 2021 | % | 2022 | 2021 | % | |||||||
Revenues | $456,590 | $501,650 | (9) % | $1,991,037 | $1,918,309 | 4 % | ||||||
Net income | 112,224 | 145,300 | (23) % | 475,467 | 546,593 | (13) % | ||||||
Diluted earnings per share | $0.83 | $1.03 | (19) % | $3.46 | $3.81 | (9) % |
"2022 was a year of evolution for SEI. As we reposition our company's future, we've made—and continue to make—the changes we believe are necessary to execute against our strategy to drive growth. As we look at the year ahead, we will work to grow our revenue, improve the overall efficiency and scale of our business, and invest wisely in our future. I'm excited for what lies ahead as we deliver increased value for our employees, clients, and shareholders," said CEO Ryan Hicke.
"Our financial results for 2022 reflect our focus on growth through new client signings, important recontracts, and successful delivery of our solutions to our markets. Numerous economic factors continue to create change in our industry and challenges for our markets. We believe this environment presents growth opportunities, and we remain committed to our vision for SEI's future."
Summary of Fourth-Quarter Results by Business Segment
(In thousands) | For the Three Months | For the Twelve Months | ||||||||||
2022 | 2021 | % | 2022 | 2021 | % | |||||||
Private Banks: | ||||||||||||
Revenues | $115,233 | $129,268 | (11) % | $575,625 | $493,570 | 17 % | ||||||
Expenses | 113,533 | 117,739 | (4) % | 473,209 | 462,796 | 2 % | ||||||
Operating Profit | 1,700 | 11,529 | (85) % | 102,416 | 30,774 | 233 % | ||||||
Operating Margin | 1 % | 9 % | 18 % | 6 % | ||||||||
Investment Advisors: | ||||||||||||
Revenues | 105,777 | 125,491 | (16) % | 447,766 | 482,949 | (7) % | ||||||
Expenses | 62,605 | 64,067 | (2) % | 251,650 | 240,334 | 5 % | ||||||
Operating Profit | 43,172 | 61,424 | (30) % | 196,116 | 242,615 | (19) % | ||||||
Operating Margin | 41 % | 49 % | 44 % | 50 % | ||||||||
Institutional Investors: | ||||||||||||
Revenues | 74,771 | 87,848 | (15) % | 323,353 | 343,805 | (6) % | ||||||
Expenses | 40,820 | 45,374 | (10) % | 172,252 | 168,070 | 2 % | ||||||
Operating Profit | 33,951 | 42,474 | (20) % | 151,101 | 175,735 | (14) % | ||||||
Operating Margin | 45 % | 48 % | 47 % | 51 % | ||||||||
Investment Managers: | ||||||||||||
Revenues | 156,076 | 154,518 | 1 % | 624,918 | 581,157 | 8 % | ||||||
Expenses | 104,330 | 91,046 | 15 % | 404,850 | 348,655 | 16 % | ||||||
Operating Profit | 51,746 | 63,472 | (18) % | 220,068 | 232,502 | (5) % | ||||||
Operating Margin | 33 % | 41 % | 35 % | 40 % | ||||||||
Investments in New Businesses: | ||||||||||||
Revenues | 4,733 | 4,525 | 5 % | 19,375 | 16,828 | 15 % | ||||||
Expenses | 10,450 | 13,364 | (22) % | 45,159 | 53,219 | (15) % | ||||||
Operating Loss | (5,717) | (8,839) | NM | (25,784) | (36,391) | NM | ||||||
Totals: | ||||||||||||
Revenues | $456,590 | $501,650 | (9) % | $1,991,037 | $1,918,309 | 4 % | ||||||
Expenses | 331,738 | 331,590 | — % | 1,347,120 | 1,273,074 | 6 % | ||||||
Corporate Overhead Expenses | 30,804 | 26,662 | 16 % | 168,164 | 91,854 | 83 % | ||||||
Income from Operations | $94,048 | $143,398 | (34) % | $475,753 | $553,381 | (14) % |
Fourth-Quarter Business Highlights:
Earnings Conference Call
A conference call to review earnings is scheduled for 4:30 p.m. Eastern time on Jan. 25, 2023. 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: 9166923.
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, 2022, SEI manages, advises, or administers approximately $1.2 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, 2021, 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 | |||||||
2022 | 2021 | 2022 | 2021 | |||||
Asset management, admin. and distribution fees | $365,239 | $403,565 | $1,514,063 | $1,547,016 | ||||
Information processing and software servicing fees | 91,351 | 98,085 | 476,974 | 371,293 | ||||
Total revenues | 456,590 | 501,650 | 1,991,037 | 1,918,309 | ||||
Subadvisory, distribution and other asset mgmt. costs | 46,247 | 56,458 | 196,732 | 218,068 | ||||
Software royalties and other information processing costs | 7,143 | 7,198 | 29,006 | 27,759 | ||||
Compensation, benefits and other personnel | 174,497 | 155,309 | 720,029 | 584,497 | ||||
Stock-based compensation | 8,064 | 10,278 | 39,403 | 41,451 | ||||
Consulting, outsourcing and professional fees | 57,693 | 57,543 | 242,013 | 223,200 | ||||
Data processing and computer related | 32,151 | 27,814 | 125,171 | 107,560 | ||||
Facilities, supplies and other costs | 17,529 | 19,909 | 74,993 | 69,760 | ||||
Amortization | 10,503 | 15,403 | 54,280 | 59,152 | ||||
Depreciation | 8,715 | 8,340 | 33,657 | 33,481 | ||||
Total expenses | 362,542 | 358,252 | 1,515,284 | 1,364,928 | ||||
Income from operations | 94,048 | 143,398 | 475,753 | 553,381 | ||||
Net gain (loss) on investments | 1,437 | (500) | (3,078) | (366) | ||||
Interest and dividend income | 6,645 | 934 | 13,308 | 3,649 | ||||
Interest expense | (145) | (209) | (749) | (563) | ||||
Other income | 3,379 | — | 3,379 | — | ||||
Equity in earnings of unconsolidated affiliate | 31,741 | 34,152 | 120,667 | 137,572 | ||||
Income before income taxes | 137,105 | 177,775 | 609,280 | 693,673 | ||||
Income taxes | 24,881 | 32,475 | 133,813 | 147,080 | ||||
Net income | $112,224 | $145,300 | $475,467 | $546,593 | ||||
Basic earnings per common share | $0.83 | $1.04 | $3.49 | $3.87 | ||||
Shares used to calculate basic earnings per share | 134,714 | 139,080 | 136,071 | 141,216 | ||||
Diluted earnings per common share | $0.83 | $1.03 | $3.46 | $3.81 | ||||
Shares used to calculate diluted earnings per share | 135,818 | 141,305 | 137,423 | 143,312 | ||||
Dividends declared per common share | $0.43 | $0.40 | $0.83 | $0.77 |
SEI INVESTMENTS COMPANY | ||||
CONSOLIDATED BALANCE SHEETS | ||||
(In thousands) | ||||
(Unaudited) | ||||
December 31, | December 31, | |||
2022 | 2021 | |||
Assets | ||||
Current Assets: | ||||
Cash and cash equivalents | $853,008 | $831,407 | ||
Restricted cash | 351 | 351 | ||
Receivables from investment products | 62,014 | 59,036 | ||
Receivables, net of allowance for doubtful accounts of $901 and $1,602 | 457,084 | 441,609 | ||
Securities owned | 32,148 | 28,267 | ||
Other current assets | 48,703 | 43,559 | ||
Total Current Assets | 1,453,308 | 1,404,229 | ||
Property and Equipment, net of accumulated depreciation of $440,861 and $409,248 | 181,029 | 178,869 | ||
Operating Lease Right-of-Use Assets | 24,992 | 33,614 | ||
Capitalized Software, net of accumulated amortization of $586,744 and $545,307 | 237,302 | 243,446 | ||
Available for Sale and Equity Securities | 128,201 | 129,541 | ||
Investments in Affiliated Funds, at fair value | 6,366 | 6,916 | ||
Investment in Unconsolidated Affiliate | 104,673 | 107,918 | ||
Goodwill | 115,599 | 117,232 | ||
Intangible Assets, net of accumulated amortization of $30,261 and $17,716 | 55,532 | 68,782 | ||
Deferred Contract Costs | 37,928 | 36,236 | ||
Deferred Income Taxes | 4,936 | 2,983 | ||
Other Assets, net | 33,687 | 24,936 | ||
Total Assets | $2,383,553 | $2,354,702 | ||
Liabilities and Equity | ||||
Current Liabilities: | ||||
Accounts payable | $13,283 | $10,312 | ||
Accrued liabilities | 359,363 | 324,382 | ||
Current portion of long-term operating lease liabilities | 10,344 | 11,328 | ||
Deferred revenue | 14,893 | 9,721 | ||
Total Current Liabilities | 397,883 | 355,743 | ||
Borrowings Under Revolving Credit Facility | — | 40,000 | ||
Long-term Income Taxes Payable | 803 | 803 | ||
Deferred Income Taxes | — | 48,876 | ||
Long-term Operating Lease Liabilities | 18,786 | 27,639 | ||
Other Long-term Liabilities | 12,257 | 20,878 | ||
Total Liabilities | 429,729 | 493,939 | ||
Shareholders' Equity: | ||||
Common stock, $0.01 par value, 750,000 shares authorized; 134,162 and 138,449 shares issued and outstanding | 1,342 | 1,384 | ||
Capital in excess of par value | 1,307,162 | 1,246,608 | ||
Retained earnings | 694,287 | 632,614 | ||
Accumulated other comprehensive loss, net | (48,967) | (19,843) | ||
Total Shareholders' Equity | 1,953,824 | 1,860,763 | ||
Total Liabilities and Shareholders' Equity | $2,383,553 | $2,354,702 |
ENDING ASSET BALANCES | ||||||||||
(In millions) (Unaudited) | ||||||||||
Dec. 31, | Mar. 31, | Jun. 30, | Sept. 30, | Dec. 31, | ||||||
2021 | 2022 | 2022 | 2022 | 2022 | ||||||
Private Banks: | ||||||||||
Equity and fixed-income programs | $26,281 | $25,335 | $22,277 | $20,131 | $22,377 | |||||
Collective trust fund programs | 6 | 7 | 7 | 7 | 7 | |||||
Liquidity funds | 4,724 | 4,225 | 3,666 | 3,778 | 3,201 | |||||
Total assets under management | $31,011 | $29,567 | $25,950 | $23,916 | $25,585 | |||||
Client assets under administration | 4,481 | 4,449 | 3,923 | 4,161 | 4,151 | |||||
Total assets | $35,492 | $34,016 | $29,873 | $28,077 | $29,736 | |||||
Investment Advisors: | ||||||||||
Equity and fixed-income programs | $81,686 | $77,614 | $65,783 | $62,579 | $66,240 | |||||
Liquidity funds | 4,317 | 4,610 | 8,292 | 5,200 | 5,436 | |||||
Total Platform assets under management | $86,003 | $82,224 | $74,075 | $67,779 | $71,676 | |||||
Platform-only assets | 14,564 | 14,151 | 12,642 | 12,609 | 13,931 | |||||
Total Platform assets | $100,567 | $96,375 | $86,717 | $80,388 | $85,607 | |||||
Institutional Investors: | ||||||||||
Equity and fixed-income programs | $91,719 | $87,358 | $75,506 | $69,621 | $73,178 | |||||
Collective trust fund programs | 5 | 6 | 5 | 6 | 5 | |||||
Liquidity funds | 2,118 | 2,150 | 1,654 | 1,640 | 1,557 | |||||
Total assets under management | $93,842 | $89,514 | $77,165 | $71,267 | $74,740 | |||||
Client assets under advisement | 4,857 | 4,778 | 4,218 | 4,204 | 4,314 | |||||
Total assets | $98,699 | $94,292 | $81,383 | $75,471 | $79,054 | |||||
Investment Managers: | ||||||||||
Collective trust fund programs (A) | $92,549 | $85,411 | $142,035 | $137,538 | $141,285 | |||||
Liquidity funds | 423 | 284 | 271 | 248 | 199 | |||||
Total assets under management | $92,972 | $85,695 | $142,306 | $137,786 | $141,484 | |||||
Client assets under administration | 907,377 | 895,181 | 885,096 | 781,246 | 810,491 | |||||
Total assets | $1,000,349 | $980,876 | $1,027,402 | $919,032 | $951,975 | |||||
Investments in New Businesses: | ||||||||||
Equity and fixed-income programs | $2,096 | $2,057 | $1,903 | $1,813 | $1,912 | |||||
Liquidity funds | 240 | 305 | 242 | 221 | 215 | |||||
Total assets under management | $2,336 | $2,362 | $2,145 | $2,034 | $2,127 | |||||
Client assets under administration | 1,410 | 1,401 | 1,076 | 1,026 | 1,077 | |||||
Total assets | $3,746 | $3,763 | $3,221 | $3,060 | $3,204 | |||||
LSV Asset Management: | ||||||||||
Equity and fixed-income programs (B) | $98,984 | $95,962 | $81,940 | $75,380 | $83,753 | |||||
Total: | ||||||||||
Equity and fixed-income programs (C) | $300,766 | $288,326 | $247,409 | $229,524 | $247,460 | |||||
Collective trust fund programs | 92,560 | 85,424 | 142,047 | 137,551 | 141,297 | |||||
Liquidity funds | 11,822 | 11,574 | 14,125 | 11,087 | 10,608 | |||||
Total assets under management | $405,148 | $385,324 | $403,581 | $378,162 | $399,365 | |||||
Client assets under advisement | 6,267 | 6,179 | 5,294 | 5,230 | 5,391 | |||||
Client assets under administration (D) | 911,858 | 899,630 | 889,019 | 785,407 | 814,642 | |||||
Platform-only assets | 14,564 | 14,151 | 12,642 | 12,609 | 13,931 | |||||
Total assets | $1,337,837 | $1,305,284 | $1,310,536 | $1,181,408 | $1,233,329 |
(A) | Collective trust fund program assets in the Investment Managers segment are included in assets under management since |
(B) | Equity and fixed-income programs include $2.1 billion of assets managed by LSV in which fees are based solely on |
(C) | Equity and fixed-income programs include $6.4 billion of assets invested in various asset allocation funds (as of |
(D) | In addition to the assets presented, SEI also administers an additional $12.5 billion in Funds of Funds assets on which SEI |
AVERAGE ASSET BALANCES | ||||||||||
(In millions) (Unaudited) | ||||||||||
4th Qtr. | 1st Qtr. | 2nd Qtr. | 3rd Qtr. | 4th Qtr. | ||||||
2021 | 2022 | 2022 | 2022 | 2022 | ||||||
Private Banks: | ||||||||||
Equity and fixed-income programs | $25,999 | $25,637 | $23,713 | $22,115 | $21,839 | |||||
Collective trust fund programs | 6 | 6 | 7 | 7 | 7 | |||||
Liquidity funds | 4,452 | 4,403 | 3,795 | 3,742 | 3,395 | |||||
Total assets under management | $30,457 | $30,046 | $27,515 | $25,864 | $25,241 | |||||
Client assets under administration | 4,607 | 4,500 | 4,163 | 4,026 | 4,126 | |||||
Total assets | $35,064 | $34,546 | $31,678 | $29,890 | $29,367 | |||||
Investment Advisors: | ||||||||||
Equity and fixed-income programs | $80,703 | $77,576 | $70,436 | $67,464 | $66,100 | |||||
Liquidity funds | 3,644 | 5,151 | 7,070 | 5,380 | 5,127 | |||||
Total Platform assets under management | $84,347 | $82,727 | $77,506 | $72,844 | $71,227 | |||||
Platform-only assets | 14,341 | 13,978 | 13,142 | 13,271 | 13,905 | |||||
Total Platform assets | $98,688 | $96,705 | $90,648 | $86,115 | $85,132 | |||||
Institutional Investors: | ||||||||||
Equity and fixed-income programs | $90,557 | $89,250 | $80,971 | $74,859 | $72,581 | |||||
Collective trust fund programs | 5 | 5 | 5 | 6 | 5 | |||||
Liquidity funds | 2,391 | 2,223 | 2,097 | 1,717 | 1,719 | |||||
Total assets under management | $92,953 | $91,478 | $83,073 | $76,582 | $74,305 | |||||
Client assets under advisement | 4,812 | 4,889 | 3,987 | 4,194 | 4,251 | |||||
Total assets | $97,765 | $96,367 | $87,060 | $80,776 | $78,556 | |||||
Investment Managers: | ||||||||||
Collective trust fund programs (A) | $90,457 | $86,633 | $131,435 | $143,817 | $140,494 | |||||
Liquidity funds | 491 | 432 | 285 | 250 | 275 | |||||
Total assets under management | $90,948 | $87,065 | $131,720 | $144,067 | $140,769 | |||||
Client assets under administration | 879,718 | 888,854 | 893,361 | 782,559 | 785,813 | |||||
Total assets | $970,666 | $975,919 | $1,025,081 | $926,626 | $926,582 | |||||
Investments in New Businesses: | ||||||||||
Equity and fixed-income programs | $2,053 | $2,025 | $2,016 | $1,939 | $1,890 | |||||
Liquidity funds | 197 | 286 | 262 | 231 | 208 | |||||
Total assets under management | $2,250 | $2,311 | $2,278 | $2,170 | $2,098 | |||||
Client assets under advisement | 1,423 | 1,397 | 1,165 | 1,126 | 1,075 | |||||
Total assets | $3,673 | $3,708 | $3,443 | $3,296 | $3,173 | |||||
LSV Asset Management: | ||||||||||
Equity and fixed-income programs (B) | $97,381 | $96,449 | $87,818 | $81,241 | $83,370 | |||||
Total: | ||||||||||
Equity and fixed-income programs (C) | $296,693 | $290,937 | $264,954 | $247,618 | $245,780 | |||||
Collective trust fund programs | 90,468 | 86,644 | 131,447 | 143,830 | 140,506 | |||||
Liquidity funds | 11,175 | 12,495 | 13,509 | 11,320 | 10,724 | |||||
Total assets under management | $398,336 | $390,076 | $409,910 | $402,768 | $397,010 | |||||
Client assets under advisement | 6,235 | 6,286 | 5,152 | 5,320 | 5,326 | |||||
Client assets under administration (D) | 884,325 | 893,354 | 897,524 | 786,585 | 789,939 | |||||
Platform-only assets | 14,341 | 13,978 | 13,142 | 13,271 | 13,905 | |||||
Total assets | $1,303,237 | $1,303,694 | $1,325,728 | $1,207,944 | $1,206,180 |
(A) | Collective trust fund program average assets in the Investment Managers segment are included in assets under |
(B) | Equity and fixed-income programs during fourth-quarter 2022 include $1.9 billion of average assets managed by LSV in |
(C) | Equity and fixed-income programs include $6.3 billion of average assets invested in various asset allocation funds during |
(D) | In addition to the assets presented, SEI also administers an additional $12.5 billion of average assets in Funds of Funds |
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-2022-financial-results-301730704.html
SOURCE SEI Investments Company
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