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Waddell & Reed Financial, Inc. Reports Fourth Quarter Results
Overland Park, KS, Jan. 31, 2011 Waddell & Reed Financial, Inc. (NYSE: WDR) today reported fourth quarter net income of $46.4 million, or $0.54 per diluted share, compared to net income of $40.5 million, or $0.47 per diluted share, in the third quarter of 2010 and net income of $33.3 million, or $0.39 per diluted share, during the fourth quarter of 2009.
Sales during the quarter totaled $5.6 billion, an increase of 21% sequentially and 1% compared to the same period last year. Inflows were $1.2 billion, compared to $658 million during the previous quarter and $2.7 billion during the fourth quarter of 2009.
Annual sales were $21.7 billion, a 10% increase over $19.7 billion in sales during 2009 and the highest annual sales volume in the companys history. This year marked the 5th consecutive year of organic growth with inflows of $5.4 billion representing a rate of 7.8%, compared with the industrys long-term rate of 3.1% (excluding money market flows) or organic decay of 2.5% for the industrys total asset flows.
We ended 2010 with good momentum and, overall, turned in strong investment sales and operating results for the year. Despite a challenging backdrop, Waddell & Reed achieved numerous important successes, said Hank Herrmann, Chairman and Chief Executive Officer of Waddell & Reed Financial, Inc. Sales reached an all-time high and our organic growth rate was more than twice that of the industry. Our financial advisors made meaningful improvement in productivity, and our Wholesale channel saw increased sales diversification. Additionally, sales in our Institutional channel improved in both traditional and subadvisory business. While markets in 2010 were volatile, we were able to showcase our asset management strength with a number of funds achieving top rankings.
Quarterly sales in our Advisors channel rose 11% sequentially to $935 million. Inflows of $10 million during the quarter compared well to outflows of $137 million during the previous quarter, although the latter was negatively impacted by a $110 million internal exchange between distribution channels. The productivity of our sales force continues to improve. Productivity per advisor reached its highest level during the quarter at $34.2 thousand and, on an annual basis, improved 28% compared to 2009.
The following information was filed by Waddell Reed Financial Inc (WDR) on Monday, January 31, 2011 as an 8K 2.02 statement, which is an earnings press release pertaining to results of operations and financial condition. It may be helpful to assess the quality of management by comparing the information in the press release to the information in the accompanying 10-K Annual Report statement of earnings and operation as management may choose to highlight particular information in the press release.
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