Fund Structure to Provide Investment Flexibility and Growth Opportunities for Investment AdvisorsOAKS, Pa., Dec. 12, 2024 /PRNewswire/ -- SEI® (NASDAQ:SEIC) today announced the filing of an exemptive application with the Securities and Exchange Commission (SEC), seeking approval to establish an ETF multi-share class structure of mutual funds administered and distributed by SEI.As industry demand for this fund structure has increased, SEI has evaluated the ETF multi-share class model and how it can help effe ...

New, Fully Bundled Technology Solution to Deliver Real-time UMH and Tax CapabilitiesOAKS, Pa., Dec. 11, 2024 /PRNewswire/ -- SEI® (NASDAQ: SEIC) today announced the acquisition of LifeYield, a Boston-based, tax-smart technology provider. Through this acquisition, SEI will be the first in the industry to provide real-time, automated unified managed household (UMH) capabilities in a cost-effective, fully bundled overlay solution, providing the industry with the ability to look across all account registrations ...

Integrated Custody and Technology Solution Powers Connected Experience and Business Growth OAKS, Pa., Nov. 21, 2024 /PRNewswire/ -- SEI® (NASDAQ:SEIC) today announced that Front Street Capital Management (Front Street) has selected SEI for custody and technology solutions, embracing a tightly integrated, single infrastructure that provides an end-to-end experience across every aspect of an advisor's business, including a dedicated service and relationship management model.Front Street is moving more than $6 ...

New SEI-Managed and Third-Party Investment Options Further Bolster Flexibility for AdvisorsOAKS, Pa., Nov. 18, 2024 /PRNewswire/ -- SEI® (NASDAQ: SEIC) today announced the launch of a new lineup of separately managed account (SMA) strategies, offered through the Managed Account Solutions program1 and designed to increase flexibility in both equity and fixed income solutions. The additions include SEI-managed strategies and third-party strategies from exceptional global investment firms, including AllianceBe ...

SEI's Turnkey Operational Platform and Comprehensive Suite of Services Provide Scale and StabilityOAKS, Pa., Nov. 18, 2024 /PRNewswire/ -- SEI® (NASDAQ:SEIC) today announced that Brown Advisory selected the Advisors' Inner Circle Fund® (AIC) series trust as its operational platform to launch the Brown Advisory Flexible Equity ETF (NASDAQ:BAFE), the firm's first ETF. A fundamental active strategy focused on U.S. companies, Brown Advisory's Flexible Equity ETF is managed by a tenured team with an existing foo ...

[Cautionary Statement Regarding Forward-Looking Statements](index=4&type=section&id=Cautionary%20Statement%20Regarding%20Forward-Looking%20Statements) The report contains forward-looking statements concerning business strategy and market conditions that are subject to significant risks and uncertainties - This report contains forward-looking statements concerning business strategy, future profitability, capital expenditures, and market conditions, which are subject to various risks and uncertainties[6](index=6&type=chunk) - Key factors that could cause actual results to differ from forward-looking statements include spending levels in the power generation and oil/gas industries, geopolitical risks, inflation, interest rates, customer consolidation, and cyber-attacks[7](index=7&type=chunk)[8](index=8&type=chunk) - The company undertakes no obligation to update forward-looking statements, and investors are warned not to place undue reliance on them, with risks further detailed in the company's 10-K and this 10-Q[9](index=9&type=chunk) [PART I: FINANCIAL INFORMATION](index=7&type=section&id=PART%20I%3A%20FINANCIAL%20INFORMATION) This part presents the unaudited financial statements and management's analysis of the company's performance and condition [Financial Statements (Unaudited)](index=7&type=section&id=Item%201.%20Financial%20Statements%20(Unaudited)) The company's financial position was significantly altered by the September 2024 acquisition of Mobile Energy Rentals (MER), impacting assets, liabilities, revenue, and net income [Condensed Consolidated Financial Statements](index=7&type=section&id=Condensed%20Consolidated%20Financial%20Statements) This section presents the unaudited balance sheets, statements of operations, and cash flows for the reporting period Condensed Consolidated Balance Sheets (in thousands) | Account | September 30, 2024 | December 31, 2023 | | :--- | :--- | :--- | | **Total Current Assets** | $197,032 | $67,141 | | **Total Assets** | **$939,487** | **$468,297** | | **Total Current Liabilities** | $54,597 | $37,201 | | **Total Liabilities** | **$446,112** | **$152,717** | | **Total Stockholders' Equity** | **$493,375** | **$315,580** | Condensed Consolidated Statements of Operations (in thousands) | Metric | Three Months Ended Sep 30, 2024 | Three Months Ended Sep 30, 2023 | Nine Months Ended Sep 30, 2024 | Nine Months Ended Sep 30, 2023 | | :--- | :--- | :--- | :--- | :--- | | **Total Revenue** | $75,018 | $69,676 | $216,794 | $229,600 | | **Operating Income** | $5,267 | $10,000 | $27,077 | $40,661 | | **Net (Loss) Income** | $(2,210) | $7,638 | $14,914 | $31,816 | | **Diluted EPS** | $(0.04) | $0.16 | $0.30 | $0.64 | Condensed Consolidated Statements of Cash Flows (Nine Months Ended Sep 30, in thousands) | Cash Flow Activity | 2024 | 2023 | | :--- | :--- | :--- | | **Net cash provided by operating activities** | $46,267 | $64,678 | | **Net cash used in investing activities** | $(189,949) | $(54,830) | | **Net cash provided by (used in) financing activities** | $254,390 | $(15,232) | | **Net increase (decrease) in cash** | $110,708 | $(5,384) | [Notes to the Financial Statements](index=12&type=section&id=Notes%20to%20the%20Financial%20Statements) This section details the MER acquisition, segment reorganization, new debt, purchase commitments, and legal proceedings - On September 11, 2024, the company acquired Mobile Energy Rentals LLC (MER) for a total consideration of **$323.1 million**, comprising $186.4 million in equity and $136.7 million in cash, establishing the new Solaris Power Solutions segment[23](index=23&type=chunk)[28](index=28&type=chunk)[29](index=29&type=chunk) - Following the MER acquisition, the company reorganized into two reportable segments: **Solaris Logistics Solutions** (oil and gas well completion services) and **Solaris Power Solutions** (mobile power generation)[42](index=42&type=chunk)[43](index=43&type=chunk)[44](index=44&type=chunk) - To fund the MER acquisition, the company entered into a new **$325.0 million senior secured term loan** agreement on September 11, 2024, and subsequently established a new $75.0 million revolving credit facility[104](index=104&type=chunk)[111](index=111&type=chunk)[112](index=112&type=chunk) - The company has significant purchase commitments of **$219.2 million**, primarily for power equipment for the new Solaris Power Solutions segment, with payments due in 2024 and 2025[135](index=135&type=chunk) - The company has **significant customer concentration**, with three customers accounting for 21%, 13%, and 10% of Q3 2024 revenues, and two customers representing 21% and 12% of accounts receivable[130](index=130&type=chunk) - The company is involved in a lawsuit with Masaba Inc regarding alleged intellectual property infringement, which is currently stayed pending a patent review by the USPTO[134](index=134&type=chunk) [Management's Discussion and Analysis of Financial Condition and Results of Operations](index=40&type=section&id=Item%202.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management highlights the transformative MER acquisition, which created a new power solutions segment and diversified the company into high-growth distributed power markets [Executive Overview & Recent Developments](index=40&type=section&id=Executive%20Overview%20&%20Recent%20Developments) The company's recent acquisition of MER established a new power solutions segment and required new financing arrangements - The company now operates through two segments: **Solaris Logistics Solutions** (oil & gas) and **Solaris Power Solutions** (distributed power), following the acquisition of Mobile Energy Rentals (MER) on September 11, 2024[143](index=143&type=chunk)[144](index=144&type=chunk)[145](index=145&type=chunk) - To finance the MER acquisition and future growth, the company entered into a **$325.0 million senior secured term loan** and established a new revolving credit facility of up to $75.0 million[147](index=147&type=chunk)[148](index=148&type=chunk) [Market Trends and Outlook](index=42&type=section&id=Market%20Trends%20and%20Outlook) The company provides a market outlook for its logistics and power solutions segments, including growth plans and capital expenditures - **Solaris Logistics Solutions:** Expects a **~10% decline** in fully utilized systems in Q4 2024 due to seasonality, with long-term demand dependent on commodity prices and geopolitical risk[150](index=150&type=chunk) - **Solaris Power Solutions:** Demand is driven by accelerating power needs for data centers and energy customers against a backdrop of constrained grid infrastructure[151](index=151&type=chunk)[152](index=152&type=chunk) - The company plans to significantly increase its power generation fleet to approximately **535 MW by Q3 2025**, with an estimated 84% of this capacity already committed under multi-year agreements[153](index=153&type=chunk) - Total company capital expenditures are expected to be approximately **$295 million** over the next four quarters, primarily for the Power Solutions segment[154](index=154&type=chunk) [Results of Operations](index=43&type=section&id=Results%20of%20Operations) This section analyzes segment revenue performance, operating expenses, and the impact of acquisition-related costs Segment Revenue Comparison (in thousands) | Segment | Three Months Ended Sep 30, 2024 | Three Months Ended Sep 30, 2023 | Nine Months Ended Sep 30, 2024 | Nine Months Ended Sep 30, 2023 | | :--- | :--- | :--- | :--- | :--- | | **Solaris Logistics Solutions** | $70,279 | $69,676 | $212,055 | $229,600 | | **Solaris Power Solutions** | $4,739 | $— | $4,739 | $— | | **Total Revenues** | **$75,018** | **$69,676** | **$216,794** | **$229,600** | - Solaris Logistics Solutions revenue for the first nine months of 2024 **decreased by 8% YoY**, primarily due to a drop in fully utilized systems from 112 to 95[158](index=158&type=chunk) - Selling, General and Administrative (SG&A) expenses for the first nine months of 2024 **increased by 27% YoY** to $25.0 million, driven by higher headcount and professional fees[167](index=167&type=chunk) - Other operating expenses for the nine months ended Sep 30, 2024, were **$3.7 million**, primarily due to acquisition-related costs from the MER deal[168](index=168&type=chunk) [Liquidity and Capital Resources](index=48&type=section&id=Liquidity%20and%20Capital%20Resources) The company's liquidity is primarily sourced from operations and new debt facilities used to fund growth and shareholder returns - Primary liquidity sources are cash from operations and debt financing, with **$325.0 million in outstanding borrowings** under its term loan as of Sep 30, 2024[171](index=171&type=chunk)[172](index=172&type=chunk) - The company has a share repurchase program with **$15.4 million remaining available** as of Sep 30, 2024, though no shares were repurchased in Q3 2024[175](index=175&type=chunk) - Net cash from financing activities was **$254.4 million** for the nine months ended Sep 30, 2024, reflecting $295.0 million in net debt proceeds offset by dividends and share repurchases[181](index=181&type=chunk) [Critical Accounting Policies and Estimates](index=49&type=section&id=Critical%20Accounting%20Policies%20and%20Estimates) A new critical accounting policy for fair value measurements in business combinations has been introduced following the MER acquisition - A new critical accounting estimate has been added for **Fair Value Measurements in Business Combinations**, involving significant estimates for allocating purchase consideration in an acquisition[184](index=184&type=chunk)[185](index=185&type=chunk) [Quantitative and Qualitative Disclosures about Market Risk](index=51&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20about%20Market%20Risk) The company's primary market risk exposure has shifted to interest rate risk due to its new variable-rate debt - The company is exposed to interest rate risk from its variable-rate senior secured term loan, with rates tied to Term SOFR or a Base Rate plus a margin of 5.0% to 6.0%[187](index=187&type=chunk) - As of September 30, 2024, a hypothetical **100 basis point (1%) change in interest rates** would result in an estimated annual change in interest expense of approximately **$3.3 million**[188](index=188&type=chunk) [Controls and Procedures](index=51&type=section&id=Item%204.%20Controls%20and%20Procedures) Management concluded that disclosure controls were effective, though the assessment excluded the recently acquired and currently integrating MER business - Management, including the CEO and CFO, concluded that disclosure controls and procedures were **effective** as of September 30, 2024[189](index=189&type=chunk) - The assessment of internal controls **excluded the newly acquired MER business**, which is permissible under SEC guidance for up to one year post-acquisition[190](index=190&type=chunk)[191](index=191&type=chunk) - There were **no material changes** during the quarter that affected the company's internal control over financial reporting[192](index=192&type=chunk) [PART II: OTHER INFORMATION](index=53&type=section&id=PART%20II%3A%20OTHER%20INFORMATION) This part details legal proceedings, new risk factors, share repurchase activity, and other required disclosures [Legal Proceedings](index=53&type=section&id=Item%201.%20Legal%20Proceedings) The company is involved in an intellectual property lawsuit with Masaba Inc, which management believes is without merit - The company is involved in a lawsuit with Masaba Inc regarding alleged intellectual property infringement and does not expect the outcome to have a material adverse effect[193](index=193&type=chunk) [Risk Factors](index=53&type=section&id=Item%201A.%20Risk%20Factors) The company identifies new material risks following the MER acquisition, including challenges of entering a new market and significant additional debt - The company faces risks related to its entry into a new line of business (scaled distributed power solutions), including lack of management experience in the sector[195](index=195&type=chunk)[196](index=196&type=chunk) - **Significant additional indebtedness** ($325 million term loan) incurred for the MER acquisition may limit financial flexibility and dedicate cash flow to debt service[199](index=199&type=chunk)[200](index=200&type=chunk)[201](index=201&type=chunk) - The Solaris Power Solutions segment is **dependent on a limited number of key suppliers** for its specialized equipment, creating operational risk[202](index=202&type=chunk)[203](index=203&type=chunk) - The company's new power systems business involves **long sales cycles**, which require substantial upfront sales and marketing expenses[206](index=206&type=chunk) [Unregistered Sales of Equity Securities and Use of Proceeds](index=57&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) No unregistered sales of equity securities occurred, and no shares were repurchased under the company's plan in Q3 2024 - There were no unregistered sales of equity securities in the period[208](index=208&type=chunk) - **No shares were purchased** under the company's $50 million share repurchase plan during the three months ended September 30, 2024, with $15.4 million remaining available[209](index=209&type=chunk)[210](index=210&type=chunk) [Defaults upon Senior Securities](index=57&type=section&id=Item%203.%20Defaults%20upon%20Senior%20Securities) The company reports no defaults upon its senior securities - None[210](index=210&type=chunk) [Mine Safety Disclosures](index=57&type=section&id=Item%204.%20Mine%20Safety%20Disclosures) The company reports no mine safety disclosures for the period - None[210](index=210&type=chunk) [Other Information](index=57&type=section&id=Item%205.%20Other%20Information) No director or officer adopted or terminated a Rule 10b5-1 trading arrangement during the third quarter of 2024 - During Q3 2024, no director or officer adopted or terminated a Rule 10b5-1 trading arrangement[211](index=211&type=chunk) [Exhibits](index=58&type=section&id=Item%206.%20Exhibits) This section lists all exhibits filed with the report, including acquisition and debt agreements, and officer certifications [Signatures](index=62&type=section&id=SIGNATURES) The report is duly signed and authorized by the company's Chief Executive Officer and Chief Financial Officer - The report was duly signed and authorized on November 7, 2024, by William A. Zartler (Chairman and Chief Executive Officer) and Kyle S. Ramachandran (President and Chief Financial Officer)[217](index=217&type=chunk)

Group 1 - SEI Investments Co. (SEIC) has formed a strategic partnership with Close Brothers Asset Management (CBAM) to support CBAM's operational growth and transformation [1][2] - The collaboration will provide CBAM with advanced technology and services, including data integration, migration, and orchestration, to help achieve its strategic goals [2][3] - SEIC will grant CBAM access to its SEI Wealth Platform and SEI Data Cloud, enabling real-time data and analytics, along with operational outsourcing solutions to enhance CBAM's capabilities [3] Group 2 - Jim London, CEO of SEI Investments Europe Limited, emphasized the partnership's alignment with SEIC's growth strategy and the importance of providing integrated technology and operations solutions to CBAM [4] - SEIC's recent initiatives include integrating investment vehicles from KKR & Co. into its platform and enhancing collaboration with Canoe Intelligence to improve operational efficiency for family offices [4] - Year-to-date, SEI Investments shares have increased by 25.9%, while the industry has seen a growth of 30.9%, with SEIC currently holding a Zacks Rank 1 (Strong Buy) [5]

Technology and Operational Outsourcing Drives Scale and GrowthLONDON, Nov. 6, 2024 /PRNewswire/ -- Close Brothers Asset Management (CBAM) and SEI® (NASDAQ:SEIC) today announced a strategic partnership to power CBAM's operational transformation and growth. CBAM will adopt the SEI Wealth PlatformSM (SWP) and SEI Data Cloud, which provides access to real-time data and analytics to leverage a fully integrated technology and operational outsourcing solution.CBAM, which manages approximately £20 billion in assets ...

Financial Data and Key Metrics Changes - The company reported third quarter 2024 revenue of $75 million and adjusted EBITDA of $22 million, which includes only a 20-day contribution from the newly acquired Power Solutions business [11][30] - Adjusted pro forma net income was $4 million, with adjusted pro forma earnings per share at $0.08 [30] - The Logistics Solutions segment generated revenue of $70 million and adjusted EBITDA of $24 million, reflecting a 5% sequential decline in revenue [32] Business Line Data and Key Metrics Changes - The Solaris Logistics segment maintained an average of 91 fully utilized systems, flat compared to the second quarter [23] - The newly established Solaris Power Solutions segment generated approximately $5 million in revenue and $3 million in adjusted EBITDA during its 20-day contribution [34] - The company expects to deploy an average of at least 240 megawatts on contracted revenue during the fourth quarter, up from approximately 156 megawatts in the third quarter [37] Market Data and Key Metrics Changes - The demand for power solutions is driven by the rapid growth of artificial intelligence computing applications, particularly in data centers [16] - The company has signed new customer contracts for more than 80% of its pro forma capacity under agreements for two to four years [10] - The U.S. drilling and completion levels remained choppy, with activity in the Logistics Solutions segment expected to decline by roughly 10% in the fourth quarter due to seasonal impacts [25] Company Strategy and Development Direction - The company has rebranded to Solaris Energy Infrastructure to reflect its broader service offerings, including Power-as-a-Service [8] - The focus is on expanding the power solutions business organically and through acquisitions, with plans to grow the power generation fleet from approximately 150 megawatts to an expected 535 megawatts by the end of the third quarter of 2025 [20][21] - The company aims to enhance shareholder returns while investing in growth, with a commitment to returning approximately $190 million to shareholders since 2018 [11][28] Management's Comments on Operating Environment and Future Outlook - Management noted that delays for grid connectivity are extending, impacting customer needs for reliable power solutions [18][63] - The company anticipates a significant inflection in free cash flow during the second half of 2025 following the completion of current growth capital plans [27][46] - Management expressed confidence in the growth potential of the power solutions segment, driven by strong demand and long-term contracts [20][72] Other Important Information - The company closed on a $325 million senior secured term loan and finalized a new credit facility providing additional liquidity of up to $75 million [42] - The company generated operating cash flow of approximately $11 million and deployed $58 million for capital expenditures during the quarter [44] - The board approved a fourth quarter dividend of $0.12 per share, marking the 25th consecutive dividend payment [47] Q&A Session Summary Question: Availability of equipment and profitability per megawatt deployed - Availability of equipment remains tight, but the company has managed to secure some additional resources [50] - Profitability per megawatt is expected to remain flat to up over the next several years due to strong demand [52] Question: End market and customer distribution - Currently, 75% of power is directed towards data center customers, with significant demand from hyperscale facilities [54] Question: Options for solar turbine capacity beyond Q3 - The company is in active discussions regarding future commitments and contractual arrangements for additional capacity [58] Question: Capacity growth and market opportunities - The company has contracted approximately 450 megawatts, with visibility into additional growth opportunities for 2025 [72] Question: Natural gas requirements for profitability - Customers are responsible for purchasing gas, and the company's solutions are competitive with alternative baseload power [75]

Solaris Energy Infrastructure, Inc. (SEI) came out with quarterly earnings of $0.08 per share, missing the Zacks Consensus Estimate of $0.14 per share. This compares to earnings of $0.19 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of -42.86%. A quarter ago, it was expected that this company would post earnings of $0.11 per share when it actually produced earnings of $0.13, delivering a surprise of 18.18%.Over the last four qu ...