SEI Investments Company (Nasdaq: SEIC) today announced financial results for first-quarter 2006, reporting increases in revenues, net income and earnings per share, compared to the corresponding period for the prior year.
Revenues in the first-quarter 2006 include $66,034 from LSV Asset Management (LSV) due to the consolidation of its operations with SEI. Revenues in the first-quarter 2006 without LSV are $211,099, an increase of 14 percent.
"We are satisfied with our first quarter results, especially since we are shifting into the execution stage of our new strategies," said Alfred P. West, Jr., SEI Chairman and CEO.
"The investments we are making are on schedule, the market acceptance of our new solutions continues to be encouraging, and our transformation is well underway. In the long run, we remain firm in our belief that what we are doing will position us to provide our clients with increased opportunities for success and allow us to grow our future revenues and profits more rapidly."
First-Quarter Business Commentary:
In the first quarter, SEI began to consolidate the assets, liabilities and operations of LSV Asset Management and LSV Employee Group, as a result of an unsecured loan guaranty provided by SEI to LSV Employee Group. The company's percentage ownership in LSV remained at 43 percent and was unchanged as a result of this transaction. The Company recognized $25.1 million in 2006 versus $15.2 million in 2005 as its portion of the net earnings from LSV.
SEI adopted the provision of the new accounting standard FAS 123 in the first quarter 2006 that requires the recognition of stock-based compensation in the financial statements. SEI recognized approximately $4.5 million associated with its outstanding unvested stock options. This cost was spread across all segments, except LSV.
This report reflects the changes to the company's financial reporting as a result of previously announced organization changes discussed in prior earnings calls and the Form 8-K on April 5, 2006. The Form 8-K reclassifies 2005 financial information for our business segments as a result of the organization changes.
Private Banking & Trust revenue was essentially flat versus year ago reflecting the stabilization discussed in recent earnings calls.
Revenue and profit growth in the Enterprises segment is a result of new business and market appreciation in assets under management.
Investments in New Businesses reported smaller losses versus a year ago. The company expects to continue to incur operating losses in this segment as it launches its Global Wealth Platform, enters new global markets and continues to develop its High Net Worth and franchise offerings.
Assets under management grew by $11.6 billion during the first quarter to $160.1 billion. This growth included $6.3 billion from LSV and $5.3 billion from the business segments.
In the first quarter, SEI purchased 789,000 shares of its common stock for $31.9 million.Download the document now 38.2 kb (Adobe Acrobat Document)