SEI Investments Company (SEIC, Financial) filed Quarterly Report for the period ended 2009-03-31.
SEI Investments is a leading global provider of asset management and investment technology solutions. The company's innovative solutions help corporations financial institutions financial advisors and affluent families create and manage wealth. They provides global investment solutions to institutions and individuals and business solutions to investment intermediaries. They serve corporations banks insurance companies unions foundations endowments and individuals with a wide array of investment products and administration services. (Press Release) SEI Investments Company has a market cap of $2.88 billion; its shares were traded at around $15.05 with a P/E ratio of 16.4 and P/S ratio of 2.3. The dividend yield of SEI Investments Company stocks is 1.1%. SEI Investments Company had an annual average earning growth of 26.1% over the past 10 years. GuruFocus rated SEI Investments Company the business predictability rank of 5-star.
In March 2009, we purchased all of the Gryphon notes from the SDIT PO Fund and the SLAT PO Fund. The cash purchase price of $194.9 million paid to the Funds was equal to the amortized cost of these securities. In order to finance the purchases of the Gryphon notes, we borrowed $195.0 million through our credit facility during March 2009. We recorded losses of approximately $130.5 million as of March 31, 2009 due to this purchase and the earlier purchase of the Gryphon notes from the SDIT MM Fund in September 2008.
As a result of the purchases of the Gryphon Notes from the SDIT PO Fund and the SLAT PO Fund, our required capital contribution according to the Amended Capital Support Agreements was reduced by approximately $116.1 million during the first quarter of 2009. This reduction in our required contributions partially offset the investment losses incurred from the purchases of the Gryphon notes so that our net charge from SIV-related issues for the first quarter totaled $14.4 million. As of March 31, 2009, our required capital contribution to the Funds according to the Amended Capital Support Agreements was $57.9 million.
Also as a result of these purchases, the letters of credit posted to collateralize our obligations under the Amended Capital Support Agreements was reduced from an aggregate $195.0 million to $69.0 million (See Liquidity and Capital Resources section later in this discussion). Our borrowings of $195.0 million to finance the purchases of the Gryphon notes and outstanding letters of credit directly reduce the amount available for future borrowings under the credit facility. As of April 29, 2009, letters of credit of $69.0 million remained outstanding and our total borrowings through the credit facility remained at $195.0 million. Therefore, only the remaining $36.0 million of the credit facility is unrestricted and may be used for general purposes.
At March 31, 2009, the aggregate par value and market value of the SIVs covered by the Amended Capital Support Agreements on the books of the Funds was $123.9 million and $58.6 million, respectively. The aggregate par value of the Gryphon notes purchased from the Funds on our books was $208.7 million.
Our required capital contribution according to the Amended Capital Support Agreement with the SLAT PO Fund is based upon the amount necessary to restore the net asset value per share of the Fund to $0.9950. If we decide to purchase the remaining SIV securities from the SLAT PO Fund, our required purchase price would be equal to 100 percent of the amortized cost value of these securities. Therefore, we would expect to incur further losses of approximately $7.0 million from our intended purchase of the remaining SIV securities from the SLAT PO Fund based on actual values of the securities as of April 29, 2009.
Read the The complete ReportSEIC is in the portfolios of Ruane Cunniff of Ruane & Cunniff & Goldfarb Inc, Jean-Marie Eveillard of Arnhold & S. Bleichroeder Advisers, LLC.
SEI Investments is a leading global provider of asset management and investment technology solutions. The company's innovative solutions help corporations financial institutions financial advisors and affluent families create and manage wealth. They provides global investment solutions to institutions and individuals and business solutions to investment intermediaries. They serve corporations banks insurance companies unions foundations endowments and individuals with a wide array of investment products and administration services. (Press Release) SEI Investments Company has a market cap of $2.88 billion; its shares were traded at around $15.05 with a P/E ratio of 16.4 and P/S ratio of 2.3. The dividend yield of SEI Investments Company stocks is 1.1%. SEI Investments Company had an annual average earning growth of 26.1% over the past 10 years. GuruFocus rated SEI Investments Company the business predictability rank of 5-star.
Highlight of Business Operations:
Consolidated revenues declined $85.3 million, or 26 percent in the three month period ended March 31, 2009 compared to the same period a year ago. Net income decreased $14.7 million, or 30 percent in the three month period ended March 31, 2009 compared to the corresponding period a year ago. Diluted earnings per share were $.18 in the three month period ended March 31, 2009 compared to $.25 in the three month period ended March 31, 2008.In March 2009, we purchased all of the Gryphon notes from the SDIT PO Fund and the SLAT PO Fund. The cash purchase price of $194.9 million paid to the Funds was equal to the amortized cost of these securities. In order to finance the purchases of the Gryphon notes, we borrowed $195.0 million through our credit facility during March 2009. We recorded losses of approximately $130.5 million as of March 31, 2009 due to this purchase and the earlier purchase of the Gryphon notes from the SDIT MM Fund in September 2008.
As a result of the purchases of the Gryphon Notes from the SDIT PO Fund and the SLAT PO Fund, our required capital contribution according to the Amended Capital Support Agreements was reduced by approximately $116.1 million during the first quarter of 2009. This reduction in our required contributions partially offset the investment losses incurred from the purchases of the Gryphon notes so that our net charge from SIV-related issues for the first quarter totaled $14.4 million. As of March 31, 2009, our required capital contribution to the Funds according to the Amended Capital Support Agreements was $57.9 million.
Also as a result of these purchases, the letters of credit posted to collateralize our obligations under the Amended Capital Support Agreements was reduced from an aggregate $195.0 million to $69.0 million (See Liquidity and Capital Resources section later in this discussion). Our borrowings of $195.0 million to finance the purchases of the Gryphon notes and outstanding letters of credit directly reduce the amount available for future borrowings under the credit facility. As of April 29, 2009, letters of credit of $69.0 million remained outstanding and our total borrowings through the credit facility remained at $195.0 million. Therefore, only the remaining $36.0 million of the credit facility is unrestricted and may be used for general purposes.
At March 31, 2009, the aggregate par value and market value of the SIVs covered by the Amended Capital Support Agreements on the books of the Funds was $123.9 million and $58.6 million, respectively. The aggregate par value of the Gryphon notes purchased from the Funds on our books was $208.7 million.
Our required capital contribution according to the Amended Capital Support Agreement with the SLAT PO Fund is based upon the amount necessary to restore the net asset value per share of the Fund to $0.9950. If we decide to purchase the remaining SIV securities from the SLAT PO Fund, our required purchase price would be equal to 100 percent of the amortized cost value of these securities. Therefore, we would expect to incur further losses of approximately $7.0 million from our intended purchase of the remaining SIV securities from the SLAT PO Fund based on actual values of the securities as of April 29, 2009.
Read the The complete ReportSEIC is in the portfolios of Ruane Cunniff of Ruane & Cunniff & Goldfarb Inc, Jean-Marie Eveillard of Arnhold & S. Bleichroeder Advisers, LLC.
