SEI Investments : FY 2024 Earnings release

SEIC

Investor contact:

Media contact:

Brad Burke

Leslie Wojcik

SEI

SEI

+1 610-676-5350

+1 610-676-4191

bburke2@seic.com

lwojcik@seic.com

Pages:

10

FOR IMMEDIATE RELEASE

SEI Reports Fourth-Quarter 2024 Financial Results

OAKS, Pa., Jan. 29, 2025 - SEI Investments Company (NASDAQ:SEIC) today announced financial results for the fourth quarter 2024. Relative to the fourth quarter 2023, EPS increased by 31%, and revenue and operating income grew by 15% and 43%, respectively, with operating margins increasing to 26%.

Consolidated Overview

(In thousands, except

For the Three Months

For the Twelve Months

earnings per share)

Ended December 31,

Ended December 31,

2024

2023

%

2024

2023

%

Revenues

$557,190

$484,858

15%

$2,125,151

$1,919,793

11%

Operating income

145,544

101,684

43%

551,741

424,524

30%

Operating margin

26 %

21 %

25%

26 %

22 %

17%

Net income

155,771

120,731

29%

581,191

462,258

26%

Diluted earnings per share

$1.19

$0.91

31%

$4.41

$3.46

27%

"Our record 2024 results reflect consistent execution against our growth strategy, particularly the progress we have driven in the last 18 months. Our net sales events in 2024 increased 58% from 2023 -representing a mix across our entire organization and reinforcing the high level of market engagement for our enterprise capabilities," said CEO Ryan Hicke.

"We are focused on maximizing our return on invested capital across our segments and solutions globally. SEI has real momentum, and our employees' commitment to delivering for our clients and embracing an enterprise-first mindset has been core to igniting that momentum. We're excited for what's ahead in 2025 and to continue delivering long-term value for our stakeholders."

1

Summary of Fourth-Quarter Results by Business Segment

For the Three Months

For the Twelve Months

(In thousands)

Ended December 31,

Ended December 31,

2024

2023

%

2024

2023

%

Private Banks:

Revenues

$140,142

$123,337

14%

$541,414

$496,317

9%

Expenses

120,414

110,656

9%

460,375

448,490

3%

Operating Profit

19,728

12,681

56%

81,039

47,827

69%

Operating Margin

14 %

10 %

15 %

10 %

Investment Advisors:

Revenues

139,267

109,719

27%

509,408

436,298

17%

Expenses

76,839

67,138

14%

282,902

259,142

9%

Operating Profit

62,428

42,581

47%

226,506

177,156

28%

Operating Margin

45 %

39 %

44 %

41 %

Institutional Investors:

Revenues

70,812

69,794

1%

285,723

289,708

(1)%

Expenses

38,315

39,118

(2)%

154,701

165,455

(6)%

Operating Profit

32,497

30,676

6%

131,022

124,253

5%

Operating Margin

46 %

44 %

46 %

43 %

Investment Managers:

Revenues

191,262

168,571

13%

728,390

645,254

13%

Expenses

118,130

110,713

7%

453,085

419,196

8%

Operating Profit

73,132

57,858

26%

275,305

226,058

22%

Operating Margin

38 %

34 %

38 %

35 %

Investments in New Businesses:

Revenues

15,707

13,437

17%

60,216

52,216

15%

Expenses

19,296

17,826

8%

74,699

70,745

6%

Operating Loss

(3,589)

(4,389)

(18)%

(14,483)

(18,529)

(22)%

Totals:

Revenues

$557,190

$484,858

15%

$2,125,151

$1,919,793

11%

Expenses

372,994

345,451

8%

1,425,762

1,363,028

5%

Corporate Overhead Expenses

38,652

37,723

2%

147,648

132,241

12%

Income from Operations

$145,544

$101,684

43%

$551,741

$424,524

30%

2

Fourth-Quarter Business Highlights:

3

Earnings Conference Call

A conference call and presentation to review earnings is scheduled for 5 p.m. Eastern time on Jan. 29, 2025. Investors and the public may review the presentation and listen to the call and replay at seic.com/ir-events.

About SEIĀ®

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 help drive growth, make confident decisions, and protect futures. As of Dec. 31, 2024, SEI manages, advises, or administers approximately $1.6 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:

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, 2023, filed with the Securities and Exchange Commission.

# # #

4

SEI INVESTMENTS COMPANY

CONSOLIDATED STATEMENTS OF OPERATIONS (In thousands, except per share data) (Unaudited)

For the Three Months

For the Twelve Months

Ended December 31,

Ended December 31,

2024

2023

2024

2023

Asset management, admin. and distribution fees

$439,520

$383,571

$1,677,143

$1,514,815

Information processing and software servicing fees

117,670

101,287

448,008

404,978

Total revenues

557,190

484,858

2,125,151

1,919,793

Subadvisory, distribution and other asset mgmt. costs

50,427

47,106

191,706

189,263

Software royalties and other information processing costs

8,726

8,505

34,229

32,289

Compensation, benefits and other personnel

200,347

184,508

770,881

714,099

Stock-based compensation

21,402

7,850

58,626

31,308

Consulting, outsourcing and professional fees

52,548

54,850

211,806

231,469

Data processing and computer related

38,863

34,735

151,653

137,036

Facilities, supplies and other costs

20,487

27,011

79,282

85,836

Amortization

10,585

9,818

41,869

38,669

Depreciation

8,261

8,791

33,358

35,300

Total expenses

411,646

383,174

1,573,410

1,495,269

Income from operations

145,544

101,684

551,741

424,524

Net (loss) gain from investments

(559)

1,704

2,790

2,757

Interest and dividend income

12,947

11,574

48,897

41,027

Interest expense

(144)

(187)

(563)

(583)

Other income

-

-

8,151

-

Equity in earnings of unconsolidated affiliate

33,366

35,413

135,741

126,930

Income before income taxes

191,154

150,188

746,757

594,655

Income taxes

35,383

29,457

165,566

132,397

Net income

$155,771

$120,731

$581,191

$462,258

Basic earnings per common share

$1.21

$0.92

$4.47

$3.49

Shares used to calculate basic earnings per share

128,642

131,269

130,073

132,593

Diluted earnings per common share

$1.19

$0.91

$4.41

$3.46

Shares used to calculate diluted earnings per share

131,421

132,160

131,727

133,728

Dividends declared per common share

$0.49

$0.46

$0.95

$0.89

5

SEI INVESTMENTS COMPANY

CONSOLIDATED CONDENSED BALANCE SHEETS

(In thousands) (Unaudited)

December 31,

December 31,

2024

2023

Assets

Current Assets:

Cash and cash equivalents

$839,891

$834,697

Restricted cash

302

301

Receivables from investment products

54,118

55,886

Receivables, net of allowance for doubtful accounts of $1,435 and $663

567,634

501,434

Securities owned

29,583

31,334

Other current assets

60,282

54,464

Total Current Assets

1,551,810

1,478,116

Property and Equipment, net of accumulated depreciation of $493,219 and $474,034

159,643

171,364

Operating Lease Right-of-Use Assets

28,905

22,477

Capitalized Software, net of accumulated amortization of $641,071 and $612,971

236,023

239,783

Investments

315,567

273,510

Goodwill and Intangible Assets, net

247,657

219,776

Deferred Contract Costs

45,855

40,221

Deferred Income Taxes

51,984

37,709

Other Assets, net

47,162

37,047

Total Assets

$2,684,606

$2,520,003

Liabilities and Equity

Current Liabilities:

Accounts payable

$13,081

$10,618

Accrued liabilities

347,513

318,945

Current portion of long-term operating lease liabilities

7,900

8,118

Deferred revenue

12,019

15,366

Total Current Liabilities

380,513

353,047

Long-term Income Taxes Payable

803

803

Long-term Operating Lease Liabilities

24,235

17,235

Other Long-term Liabilities

26,943

17,090

Total Liabilities

432,494

388,175

Shareholders' Equity:

Common stock, $0.01 par value, 750,000 shares authorized; 126,840 and 131,178

shares issued and outstanding

1,268

1,312

Capital in excess of par value

1,539,816

1,404,962

Retained earnings

758,003

762,586

Accumulated other comprehensive loss, net

(46,975)

(37,032)

Total Shareholders' Equity

2,252,112

2,131,828

Total Liabilities and Shareholders' Equity

$2,684,606

$2,520,003

6

SEI INVESTMENTS COMPANY

CONSOLIDATED CONDENSED STATEMENTS OF CASH FLOWS

(In thousands) (Unaudited)

Cash flows from operating activities: Net income

Adjustments to reconcile net income to net cash provided by operating activities Net cash provided by operating activities

Net cash used in investing activities Net cash used in financing activities

Effect of exchange rate changes on cash, cash equivalents and restricted cash Net increase (decrease) in cash, cash equivalents and restricted cash

Cash, cash equivalents and restricted cash, beginning of period Cash, cash equivalents and restricted cash, end of period

For the Twelve Months Ended December 31,

20242023

$581,191 $462,258

$41,152 ($15,228)

$622,343 $447,030

($117,302) ($141,543)

($494,401) ($331,324)

(5,445)7,476

5,195 (18,361)

834,998 853,359

$840,193 $834,998

7

ENDING ASSET BALANCES (In millions) (Unaudited)

Dec. 31,

Mar. 31,

Jun. 30,

Sept. 30,

Dec. 31,

2023

2024

2024

2024

2024

Private Banks:

Equity and fixed-income programs

$24,496

$25,282

$25,031

$26,565

$25,523

Collective trust fund programs

4

5

5

5

4

Liquidity funds

3,916

2,733

2,699

2,948

2,688

Total assets under management

$28,416

$28,020

$27,735

$29,518

$28,215

Client assets under administration

7,267

8,024

7,813

8,349

8,340

Total assets

$35,683

$36,044

$35,548

$37,867

$36,555

Investment Advisors:

Equity and fixed-income programs

$71,634

$74,715

$74,556

$78,361

$76,283

Liquidity funds

4,812

4,722

4,301

2,790

3,105

Total Platform assets under management

$76,446

$79,437

$78,857

$81,151

$79,388

Platform-only assets

18,324

20,516

21,908

24,501

25,244

Platform-only assets-deposit program

843

897

894

2,447

2,398

Total Platform assets

$95,613

$100,850

$101,659

$108,099

$107,030

Institutional Investors:

Equity and fixed-income programs

$77,208

$75,969

$75,542

$79,252

$75,481

Collective trust fund programs

1

1

1

1

1

Liquidity funds

1,734

2,179

2,309

1,829

1,511

Total assets under management

$78,943

$78,149

$77,852

$81,082

$76,993

Client assets under advisement

6,120

6,862

7,886

8,038

5,955

Total assets

$85,063

$85,011

$85,738

$89,120

$82,948

Investment Managers:

Collective trust fund programs (A)

$156,376

$161,660

$192,747

$204,429

$202,384

Liquidity funds

114

202

221

233

188

Total assets under management

$156,490

$161,862

$192,968

$204,662

$202,572

Client assets under administration

920,757

959,904

998,315

1,022,515

1,032,812

Total assets

$1,077,247

$1,121,766

$1,191,283

$1,227,177

$1,235,384

Investments in New Businesses:

Equity and fixed-income programs

$2,174

$2,269

$2,285

$2,825

$2,747

Liquidity funds

209

223

631

246

297

Total assets under management

$2,383

$2,492

$2,916

$3,071

$3,044

Client assets under advisement

1,150

1,248

1,886

2,021

2,185

Client assets under administration

14,807

15,411

14,848

15,110

14,791

Total assets

$18,340

$19,151

$19,650

$20,202

$20,020

LSV Asset Management:

Equity and fixed-income programs (B)

$89,312

$93,616

$90,197

$93,855

$86,501

Total:

Equity and fixed-income programs (C)

$264,824

$271,851

$267,611

$280,858

$266,535

Collective trust fund programs

156,381

161,666

192,753

204,435

202,389

Liquidity funds

10,785

10,059

10,161

8,046

7,789

Total assets under management

$431,990

$443,576

$470,525

$493,339

$476,713

Client assets under advisement

7,270

8,110

9,772

10,059

8,140

Client assets under administration (D)

942,831

983,339

1,020,976

1,045,974

1,055,943

Platform-only assets

19,167

21,413

22,802

26,948

27,642

Total assets

$1,401,258

$1,456,438

$1,524,075

$1,576,320

$1,568,438

8

AVERAGE ASSET BALANCES (In millions) (Unaudited)

4th Qtr.

1st Qtr.

2nd Qtr.

3rd Qtr.

4th Qtr.

2023

2024

2024

2024

2024

Private Banks:

Equity and fixed-income programs

$23,309

$24,593

$24,859

$25,823

$26,067

Collective trust fund programs

5

4

5

5

4

Liquidity funds

3,808

3,902

2,734

2,858

2,814

Total assets under management

$27,122

$28,499

$27,598

$28,686

$28,885

Client assets under administration

7,083

7,753

7,884

8,074

8,395

Total assets

$34,205

$36,252

$35,482

$36,760

$37,280

Investment Advisors:

Equity and fixed-income programs

$68,369

$72,689

$73,793

$76,111

$77,866

Liquidity funds

5,046

4,649

4,348

4,264

3,031

Total Platform assets under management

$73,415

$77,338

$78,141

$80,375

$80,897

Platform-only assets

17,201

19,198

20,897

23,194

25,109

Platform-only assets-deposit program

281

849

886

1,176

2,186

Total Platform assets

$90,897

$97,385

$99,924

$104,745

$108,192

Institutional Investors:

Equity and fixed-income programs

$73,644

$76,414

$75,203

$77,473

$77,399

Collective trust fund programs

3

1

1

1

1

Liquidity funds

1,682

1,812

1,893

2,046

2,154

Total assets under management

$75,329

$78,227

$77,097

$79,520

$79,554

Client assets under advisement

4,607

6,498

7,508

7,925

6,991

Total assets

$79,936

$84,725

$84,605

$87,445

$86,545

Investment Managers:

Collective trust fund programs (A)

$149,551

$156,737

$189,884

$198,839

$204,954

Liquidity funds

205

207

227

245

223

Total assets under management

$149,756

$156,944

$190,111

$199,084

$205,177

Client assets under administration

901,487

938,804

982,806

1,005,111

1,034,500

Total assets

$1,051,243

$1,095,748

$1,172,917

$1,204,195

$1,239,677

Investments in New Businesses:

Equity and fixed-income programs

$2,069

$2,200

$2,234

$2,432

$2,819

Liquidity funds

197

214

471

546

269

Total assets under management

$2,266

$2,414

$2,705

$2,978

$3,088

Client assets under advisement

1,080

1,194

2,014

1,885

2,110

Client assets under administration

14,781

15,147

14,713

14,973

14,961

Total assets

$18,127

$18,755

$19,432

$19,836

$20,159

LSV Asset Management:

Equity and fixed-income programs (B)

$84,492

$90,708

$90,849

$93,195

$88,880

Total:

Equity and fixed-income programs (C)

$251,883

$266,604

$266,938

$275,034

$273,031

Collective trust fund programs

149,559

156,742

189,890

198,845

204,959

Liquidity funds

10,938

10,784

9,673

9,959

8,491

Total assets under management

$412,380

$434,130

$466,501

$483,838

$486,481

Client assets under advisement

5,687

7,692

9,522

9,810

9,101

Client assets under administration (D)

923,351

961,704

1,005,403

1,028,158

1,057,856

Platform-only assets

17,482

20,047

21,783

24,370

27,295

Total assets

$1,358,900

$1,423,573

$1,503,209

$1,546,176

$1,580,733

9

SALES EVENTS

(In thousands) (Unaudited)

Net Recurring Sales Events

4th Qtr.

1st Qtr.

2nd Qtr.

3rd Qtr.

4th Qtr.

2023

2024

2024

2024

2024

Investment Processing-related Businesses:

Private Banks

$

2,210

$

247

$

4,331

$

9,417

$

9,245

Investment Managers

15,314

20,407

17,180

23,319

18,027

Total Investment Processing-related Businesses

$

17,524

$

20,654

$

21,511

$

32,736

$

27,272

Asset Management-related Businesses:

Private Banks-AMD

$

(1,068)

$

(85)

$

(494)

$

(854)

$

495

Investment Advisors

(5,277)

(942)

(3,299)

2,686

1,339

Institutional Investors

(4,151)

(4,649)

(1,787)

(576)

(2,673)

Total Asset Management-related Businesses

$

(10,496)

$

(5,676)

$

(5,580)

$

1,256

$

(839)

Newer Initiatives:

Investments in New Businesses

$

1,432

$

1,494

$

(43)

$

936

$

1,778

Total Net Recurring Sales Events

$

8,460

$

16,472

$

15,888

$

34,928

$

28,211

Non-Recurring Sales Events

4th Qtr.

1st Qtr.

2nd Qtr.

3rd Qtr.

4th Qtr.

2023

2024

2024

2024

2024

Investment Processing-related Businesses:

Private Banks

$

3,489

$

2,613

$

4,431

$

8,796

$

6,622

Investment Managers

1,000

1,213

930

712

2,465

Total Investment Processing-related Businesses

$

4,489

$

3,826

$

5,361

$

9,508

$

9,087

Newer Initiatives:

Investments in New Businesses

$

770

$

987

$

717

$

1,976

$

921

Total Non-Recurring Sales Events

$

5,259

$

4,813

$

6,078

$

11,484

$

10,008

Total Sales Events

4th Qtr.

1st Qtr.

2nd Qtr.

3rd Qtr.

4th Qtr.

2023

2024

2024

2024

2024

Investment Processing-related Businesses:

Private Banks

$

5,699

$

2,860

$

8,762

$

18,213

$

15,867

Investment Managers

16,314

21,620

18,110

24,031

20,492

Total Investment Processing-related Businesses

$

22,013

$

24,480

$

26,872

$

42,244

$

36,359

Asset Management-related Businesses:

Private Banks-AMD

$

(1,068)

$

(85)

$

(494)

$

(854)

$

495

Investment Advisors

(5,277)

(942)

(3,299)

2,686

1,339

Institutional Investors

(4,151)

(4,649)

(1,787)

(576)

(2,673)

Total Asset Management-related Businesses

$

(10,496)

$

(5,676)

$

(5,580)

$

1,256

$

(839)

Newer Initiatives:

Investments in New Businesses

$

2,202

$

2,481

$

674

$

2,912

$

2,699

Total Sales Events

$

13,719

$

21,285

$

21,966

$

46,412

$

38,219

10

Disclaimer

SEI Investments Company published this content on January 29, 2025, and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on January 29, 2025 at 21:04:08.782.