Earnings Call Excerpt
SEI Investments Co. (SEIC)
Q3 2009 Earnings Call
October 21, 2009 2:00 pm ET
Executives
Al West – Chairman and Chief Executive Officer
Dennis McGonigle – Chief Financial Officer
Kathy Heilig – Controller
Joe Ujobai
Wayne Withrow
[Ed Lockland]
Steve Meyer
Analysts
Glenn Greene – Oppenheimer & Company
Jeff Hopson – Stifel Nicolaus & Company
Robert Lee – Keefe, Bruyette & Woods
Tom McCrohan – Janney Montgomery Scott
[Eric Connelly - Robico]
Presentation
Operator
Welcome to the SEI Third Quarter Earnings conference call. (Operator Instructions) Now I would like to turn the conference over to our host Mr. Al West, Chairman and CEO.
Al West
With me are all of our segment leader, as well as Dennis McGonigle, SEI's CFO and Kathy Heilig, SEI's Controller. Now I'll start by recapping the third quarter and then I'll turn it over to Dennis first to expand on a few financial matters and as well to cover LSV in the investment and new business segment. After that each of the business segments will comment on the results of their segments. Then finally Kathy Heilig will provide you with some important companywide statistics.
Now as usual we'll field questions at the end of each report, so let me start with the third quarter. Third quarter earnings grew by 53% from a year ago on a revenue decline of 13%. Diluted earnings per share for the first quarter of $0.27 represents a 50% increase from the $0.18 reported for the first quarter of 2008.
Now earnings for the quarter were affected by a series of one-time items which netted to a one-time increase to earnings of $4.9 million or $0.015 per share. Now Dennis will give you a more detail up date of the ebbs and flows of third quarter one-time items in a few minutes.
Now our 13% drop in revenues compared to the third quarter of 2008 is result of lower capital markets a year ago. Now since a good portion of our revenues are directly tied to assets under management and administration, lower capital market decrease our revenues. Now also during the third quarter our non-cash asset balances under management grew by $20.5 billion SEI's assets under management grew by approximately $11.5 billion during the quarter while LSV's assets under management grew by approximately $9 billion.
Now global 60/40 portfolio was up 12.9% during the quarter. In addition during the third quarter we repurchased 975,000 shares of stock at an average of just under $19 per share. Now that translates to $18.5 million of stock repurchases during the quarter.
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