<PAGE>
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
-----------
FORM 11-K
ANNUAL REPORT PURSUANT TO SECTION 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
FOR THE FISCAL YEAR ENDED DECEMBER 31, 1998
Commission file number 001-13913
WADDELL & REED FINANCIAL, INC.
SAVINGS AND INVESTMENT PLAN
(Full title of the Plan)
------------------------
WADDELL & REED FINANCIAL, INC.
6300 Lamar Avenue
Overland Park, Kansas 66202
913-236-2000
(Name of issuer of securities held pursuant to the Plan)
<PAGE>
WADDELL & REED FINANCIAL, INC.
SAVINGS AND INVESTMENT PLAN
Financial Statements and Schedules
December 31, 1998 and 1997
(With Independent Auditors' Report Thereon)
<PAGE>
[Letterhead]
INDEPENDENT AUDITORS' REPORT
The Plan Administrators
Waddell & Reed Financial, Inc.
Savings and Investment Plan:
We have audited the accompanying statements of net assets available for benefits
of Waddell & Reed Financial, Inc. Savings and Investment Plan as of December 31,
1998 and 1997 and the related statements of changes in net assets available for
benefits for the years then ended. These financial statements are the
responsibility of the Plan's management. Our responsibility is to express an
opinion on these financial statements based on our audits.
We conducted our audits in accordance with generally accepted auditing
standards. Those standards require that we plan and perform the audit to obtain
reasonable assurance about whether the financial statements are free of material
misstatement. An audit includes examining, on a test basis, evidence supporting
the amounts and disclosures in the financial statements. An audit also includes
assessing the accounting principles used and significant estimates made by
management, as well as evaluating the overall financial statement presentation.
We believe that our audits provide a reasonable basis for our opinion.
In our opinion, the financial statements referred to above present fairly, in
all material respects, the net assets available for benefits of Waddell & Reed
Financial, Inc. Savings and Investment Plan as of December 31, 1998 and 1997 and
the changes in its net assets available for benefits for the years then ended,
in conformity with generally accepted accounting principles.
Our audits were made for the purpose of forming an opinion on the basic
financial statements taken as a whole. The supplementary information included in
Schedules 1 and 2 is presented for the purpose of additional analysis and is not
a required part of the basic financial statements but is supplementary
information required by the Department of Labor's Rules and Regulations for
Reporting and Disclosure under the Employee Retirement Income Security Act of
1974. The fund information in the statements of net assets available for
benefits and statements of changes in net assets available for benefits is
presented for purposes of additional analysis rather than to present the net
assets available for benefits and changes in net assets available for benefits
for each fund. The supplementary schedule and fund information have been
subjected to the auditing procedures applied in the audits of the basic
financial statements and, in our opinion, are fairly stated in all material
respects in relation to the basic financial statements taken as a whole.
/s/ KPMG LLP
May 21, 1999
<PAGE>
WADDELL & REED FINANCIAL, INC.
SAVINGS AND INVESTMENT PLAN
Statements of Net Assets Available for Benefits
December 31, 1998 and 1997
<TABLE>
<CAPTION>
DECEMBER 31, 1998
---------------------------------------------------------------------------
WADDELL & WADDELL &
REED REED UNITED
TORCHMARK FINANCIAL, INC. FINANCIAL, INC. GROUP
CORPORATION CLASS A CLASS B OF MUTUAL TOTAL
STOCK STOCK STOCK FUNDS PLAN
------------ --------------- --------------- ---------- ----------
<S> <C> <C> <C> <C> <C>
Cash $ -- -- -- -- --
Investments:
Torchmark Corporation common stock 6,752,971 -- -- -- 6,752,971
Waddell & Reed Financial, Inc. Class A stock -- 3,672,695 -- -- 3,672,695
Waddell & Reed Financial, Inc. Class B stock -- -- 1,233,692 -- 1,233,692
United Group of Mutual Funds (note 3) -- -- -- 44,671,828 44,671,828
Receivable from participating employees -- 29,652 -- 52,222 81,874
Receivable from participating employers -- 11,411 -- 22,063 33,474
----------- -------------- --------------- ----------- ----------
$ 6,752,971 3,713,758 1,233,692 44,746,113 56,446,534
----------- -------------- --------------- ----------- ----------
----------- -------------- --------------- ----------- ----------
Net assets available for benefits:
Allocated to terminated/withdrawn
participants $ -- -- -- 20,941 20,941
Unallocated 6,752,971 3,713,758 1,233,692 44,725,172 56,425,593
----------- --------------- ---------------- ----------- ----------
$ 6,752,971 3,713,758 1,233,692 44,746,113 56,446,534
----------- --------------- ---------------- ----------- ----------
----------- --------------- ---------------- ----------- ----------
</TABLE>
<TABLE>
<CAPTION>
DECEMBER 31, 1997
----------------------------------------
UNITED
TORCHMARK GROUP
CORPORATION OF MUTUAL TOTAL
STOCK FUNDS PLAN
----------- ----------- -----------
<S> <C> <C> <C>
Cash 52,681 18 52,699
Investments:
Torchmark Corporation common stock 13,549,459 -- 13,549,459
Waddell & Reed Financial, Inc. Class A stock -- -- --
Waddell & Reed Financial, Inc. Class B stock -- -- --
United Group of Mutual Funds (note 3) -- 38,251,188 38,251,188
Receivable from participating employees 8,497 51,626 60,123
Receivable from participating employers 3,283 22,051 25,334
----------- ---------- ----------
13,613,920 38,324,883 51,938,803
----------- ---------- ----------
----------- ---------- ----------
Net assets available for benefits:
Allocated to terminated/withdrawn
participants 25,179 15,930 41,109
Unallocated 13,588,741 38,308,953 51,897,694
----------- ---------- ----------
13,613,920 38,324,883 51,938,803
----------- ---------- ----------
----------- ---------- ----------
</TABLE>
See accompanying notes to financial statements.
2
<PAGE>
WADDELL & REED FINANCIAL, INC.
SAVINGS AND INVESTMENT PLAN
Statements of Changes in Net Assets Available for Benefits
Years ended December 31, 1998 and 1997
<TABLE>
<CAPTION>
YEAR ENDED DECEMBER 31, 1998
-----------------------------------------------------------------------------
WADDELL & WADDELL &
REED REED UNITED
TORCHMARK FINANCIAL, INC. FINANCIAL, INC. GROUP
CORPORATION CLASS A CLASS B OF MUTUAL TOTAL
STOCK STOCK STOCK FUNDS PLAN
----------- --------------- --------------- ----------- -----------
<S> <C> <C> <C> <C> <C>
Investment income:
Dividends - stock $ 147,609 28,980 -- -- 176,589
Dividends on mutual funds -- -- -- 5,070,623 5,070,623
Interest income 2,244 1,189 -- -- 3,433
----------- --------------- --------------- ----------- -----------
Investment income 149,853 30,169 -- 5,070,623 5,250,645
----------- --------------- --------------- ----------- -----------
Net appreciation (depreciation) of
investments (note 3) (1,261,060) 408,303 1,233,692 3,119,139 3,500,074
----------- --------------- --------------- ----------- -----------
Contributions (note 4):
Employees 256,600 364,239 -- 1,652,709 2,273,548
Employers 29,027 147,151 -- 720,145 896,323
----------- --------------- --------------- ----------- -----------
285,627 511,390 -- 2,372,854 3,169,871
----------- --------------- --------------- ----------- -----------
Withdrawals (1,605,042) (81,869) -- (5,725,948) (7,412,859)
----------- --------------- --------------- ----------- -----------
Increase (decrease) before exchanges (2,430,622) 867,993 1,233,692 4,836,668 4,507,731
----------- --------------- --------------- ----------- -----------
Exchanges:
Purchases 82,054 2,852,867 -- 12,299,507 15,234,428
Sales (4,512,381) (7,102) -- (10,714,945) (15,234,428)
----------- --------------- --------------- ----------- -----------
(4,430,327) 2,845,765 -- 1,584,562 --
----------- --------------- --------------- ----------- -----------
Net increase (decrease) (6,860,949) 3,713,758 1,233,692 6,421,230 4,507,731
Net assets available for benefits:
Beginning of year 13,613,920 -- -- 38,324,883 51,938,803
----------- --------------- --------------- ----------- -----------
End of year $ 6,752,971 3,713,758 1,233,692 44,746,113 56,446,534
----------- --------------- --------------- ----------- -----------
----------- --------------- --------------- ----------- -----------
</TABLE>
<TABLE>
<CAPTION>
YEAR ENDED DECEMBER 31, 1997
--------------------------------------------------
UNITED
TORCHMARK GROUP
CORPORATION OF MUTUAL TOTAL
STOCK FUNDS PLAN
---------------- -------------- --------------
<S> <C> <C> <C>
Investment income:
Dividends - stock $ 196,275 -- 196,275
Dividends on mutual funds -- 4,562,769 4,562,769
Interest income 1,465 -- 1,465
---------------- -------------- --------------
Investment income 197,740 4,562,769 4,760,509
---------------- -------------- --------------
Net appreciation (depreciation) of
investments (note 3) 5,677,961 939,719 6,617,680
---------------- -------------- --------------
Contributions (note 4):
Employees 241,749 1,546,095 1,787,844
Employers 101,911 665,204 767,115
---------------- -------------- --------------
343,660 2,211,299 2,554,959
---------------- -------------- --------------
Withdrawals (542,376) (2,181,306) (2,723,682)
---------------- -------------- --------------
Increase (decrease) before exchanges 5,676,985 5,532,481 11,209,466
---------------- -------------- --------------
Exchanges:
Purchases 335,566 4,617,877 4,953,443
Sales (1,129,560) (3,823,883) (4,953,443)
---------------- -------------- --------------
(793,994) 793,994 --
---------------- -------------- --------------
Net increase (decrease) 4,882,991 6,326,475 11,209,466
Net assets available for benefits:
Beginning of year 8,730,929 31,998,408 40,729,337
---------------- -------------- --------------
End of year $ 13,613,920 38,324,883 51,938,803
---------------- -------------- --------------
---------------- -------------- --------------
</TABLE>
See accompanying notes to financial statements.
3
<PAGE>
WADDELL & REED FINANCIAL, INC.
SAVINGS AND INVESTMENT PLAN
Notes to Financial Statements
December 31, 1998 and 1997
(1) SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
(a) BASIS OF PRESENTATION
The accompanying financial statements have been prepared on the
accrual basis of accounting and present the net assets available for
benefits and changes in those net assets of the Waddell & Reed
Financial, Inc. (the Plan), formally the United Investors Management
Company Savings and Investment Plan.
The Plan currently allows contributions to be invested in mutual fund
shares, Torchmark Corporation common stock and Waddell & Reed
Financial, Inc. Class A common stock. The United Group of
Mutual Funds are managed by Waddell & Reed Investment Management
Company, Inc. which is a participating employer in the Plan. The
Compass Bank serves as Trustee for the Plan.
The Plan had 793 and 786 participants at December 31, 1998 and 1997,
respectively. At December 31, 1998, 165 of the 793 participants in the
Plan are former employees of United Investors Management Company and
subsidiaries that have elected not to withdraw from the Plan.
The number of accounts in each fund was as follows:
<TABLE>
<CAPTION>
DECEMBER 31,
--------------------
1998 1997
-------- ---------
<S> <C> <C>
Torchmark Corporation common stock 182 241
Waddell & Reed Financial, Inc. Class A 316 --
Waddell & Reed Financial, Inc. Class B 127 --
United Group of Mutual Funds 1,515 1,654
-------- ---------
-------- ---------
</TABLE>
Since the Plan's participants are allowed to invest in more than one
stock or mutual fund, the number of accounts in all funds is greater
than the total number of participants.
(b) VALUATION OF SECURITIES
Investments in mutual fund shares are stated at net asset value based
upon market quotations as of December 31. Torchmark Corporation common
stock and Waddell & Reed Financial, Inc. Class A and Class B common
stock are stated at market value based upon market quotations as of
December 31. Securities transactions are recorded on the trade date
(the date the order to buy or sell is executed).
(c) DIVIDEND INCOME
Dividend income is recorded on the ex-dividend date.
(d) ADMINISTRATIVE EXPENSES
Administrative expenses are paid by the participating employers which
are listed in note 4.
4 (Continued)
<PAGE>
WADDELL & REED FINANCIAL, INC.
SAVINGS AND INVESTMENT PLAN
Notes to Financial Statements
December 31, 1998 and 1997
(e) FORFEITURES
Forfeitures are held by the Plan for one year and are then used to
reduce the employer's current year contribution.
(f) FEDERAL INCOME TAXES
The Plan has received a favorable determination letter from the
Internal Revenue Service, dated January 4, 1996, indicating that it is
qualified under Section 401(a) of the Internal Revenue Code and,
therefore, the related trust is exempt from tax under Section 501(a)
of the Internal Revenue Code.
The Plan Administrator is not aware of any activity or transactions
that may adversely affect the qualified status of the Plan.
(g) USE OF ESTIMATES
The Plan Administrator has made a number of estimates and assumptions
relating to the reporting of assets and liabilities and the disclosure
of contingent assets and liabilities to prepare these financial
statements in conformity with generally accepted accounting
principles. Actual results could differ from those estimates.
(2) DESCRIPTION OF PLAN
The following brief description of the Plan is provided for general
information purposes only. Participants should refer to the Plan Agreement
for more complete information.
The Plan is a defined contribution (savings) plan covering substantially
all employees of Waddell & Reed Financial, Inc. and subsidiaries. The Plan
complies with the provisions of the Employee Retirement Income Security Act
of 1974, as amended. Plan administration is accomplished through a
committee of three persons who have authority to arbitrate disputes and
settle claims arising under the Plan.
(a) CONTRIBUTIONS
Each eligible employee may make "Basic Contributions" ranging from 1%
to 6% of eligible earnings. The Plan provides for a matching employer
contribution of 50% of the employee's contribution, not to exceed 3%
of the employee's salary.
Employees may make "Supplementary Contributions" to the Plan not to
exceed 10% of eligible earnings which are not matched by the
participating employers.
5 (Continued)
<PAGE>
WADDELL & REED FINANCIAL, INC.
SAVINGS AND INVESTMENT PLAN
Notes to Financial Statements
December 31, 1998 and 1997
(b) BENEFITS
Employees are fully vested as to their own contributions. Vesting in
employer contributions is graduated to 100% after six years of
employment. The vested portion of a participant's account balance is
paid in a Joint and 50% Survivor Annuity upon retirement, death, or
other termination of employment unless a participant chooses a
lump-sum distribution. The nonvested portion is retained by the Plan
until the separated participant incurs a "break in service," at which
time the remaining account balance is forfeited and applied to reduce
the employer's contribution in the following Plan year.
In accordance with regulations of the Internal Revenue Service, in the
event the Plan is terminated, all participants would immediately
become fully vested in their employer contribution accounts and Plan
assets would be distributed. Waddell & Reed Financial, Inc. does
not intend to terminate the Plan.
At December 31, 1998 and 1997, participants whose account balances
totaled $20,941 and $41,109, respectively, notified the Plan
Administrator that they had elected to withdraw from the Plan. Such
amounts are presented herein as a component of net assets, but are
presented as a liability of the Plan in Form 5500.
(3) TORCHMARK CORPORATION COMMON STOCK, WADDELL & REED FINANCIAL, INC. CLASS A
STOCK, WADDELL & REED FINANCIAL, INC. CLASS B STOCK, AND UNITED GROUP OF
MUTUAL FUNDS
The following table presents the number of shares and fair value of
Torchmark Corporation common stock, Waddell & Reed Financial, Inc. Class A
and B stock, and mutual fund investments as of December 31, 1998 and 1997.
Investments that represent 5% or more of the Plan's net assets are
separately identified.
<TABLE>
<CAPTION>
DECEMBER 31, 1998
-----------------------------------------------
NUMBER FAIR
OF SHARES COST VALUE
------------- -------------- --------------
<S> <C> <C> <C>
Torchmark Corporation common stock 650,575 $ 3,142,044 6,752,971
Waddell & Reed Financial, Inc. Class A stock 358,662 3,354,748 3,672,695
Waddell & Reed Financial, Inc. Class B stock 119,082 418,352 1,233,692
United Group of Mutual Funds shares:
United Cash Management 5,817,096 5,817,096 5,817,096
United International Growth 614,632 5,569,732 6,060,272
United Income 1,610,962 10,182,870 12,114,434
United New Concepts 744,498 4,802,830 7,072,732
United Science and Technology 296,972 2,094,918 2,963,784
Other United Funds 1,616,182 10,145,655 10,643,510
------------- -------------- --------------
38,613,101 44,671,828
-------------- --------------
Total investments $ 45,528,245 56,331,186
-------------- --------------
-------------- --------------
</TABLE>
6 (Continued)
<PAGE>
WADDELL & REED FINANCIAL, INC.
SAVINGS AND INVESTMENT PLAN
Notes to Financial Statements
December 31, 1998 and 1997
<TABLE>
<CAPTION>
DECEMBER 31, 1997
-----------------------------------------------
NUMBER FAIR
OF SHARES COST VALUE
------------- -------------- --------------
<S> <C> <C> <C>
Torchmark Corporation common stock 321,114 $ 5,079,168 13,549,459
-------------- --------------
United Group of Mutual Funds shares:
United Cash Management 3,325,493 3,325,493 3,325,493
United International Growth 598,816 5,252,769 5,473,179
United Income 247,358 6,757,251 9,387,255
United New Concepts 381,208 4,547,993 5,965,899
United Science and Technology 131,723 2,751,373 2,662,132
Other United Funds 1,637,557 11,208,126 11,437,230
------------- -------------- --------------
-------------
33,843,005 38,251,188
-------------- --------------
Total investments $ 38,922,173 51,800,647
-------------- --------------
-------------- --------------
</TABLE>
During 1998 and 1997, the Plan's investments (including investments bought
and sold, as well as held during the year) appreciated (depreciated) as
follows:
<TABLE>
<CAPTION>
1998 1997
-------------- -------------
<S> <C> <C>
Torchmark Corporation common stock $ (745,218) 5,677,961
Waddell & Reed Class A common stock 310,812 --
Waddell & Reed Class B common stock 815,340 --
United Group of Mutual Funds:
Accumulative 145,502 10,366
Asset Strategy 5,539 2,870
Bond 5,973 33,367
Continental Income 8,938 13,189
Gold and Government Securities (15,480) (111,127)
Government Securities 6,583 4,267
High Income (80,304) 80,591
High Income II (159,289) 80,837
Income (96,844) 1,078,580
International Growth 436,695 (98,640)
New Concepts 1,301,187 179,224
Retirement Shares 17,890 50,458
Science and Technology 1,047,655 (330,526)
Vanguard 495,095 (53,737)
-------------- -------------
3,119,140 939,719
-------------- -------------
Net appreciation $ 3,500,074 6,617,680
-------------- -------------
-------------- -------------
</TABLE>
7 (Continued)
<PAGE>
WADDELL & REED FINANCIAL, INC.
SAVINGS AND INVESTMENT PLAN
Notes to Financial Statements
December 31, 1998 and 1997
(4) CONTRIBUTIONS BY PARTICIPANTS AND PARTICIPATING EMPLOYERS
The contributions of each participating employer and its employees for the
years ended December 31 are as follows:
<TABLE>
<CAPTION>
1998 1997
---------------------------- ----------------------------
EMPLOYEES EMPLOYER EMPLOYEES EMPLOYER
-------------- ------------- -------------- -------------
<S> <C> <C> <C> <C>
United Investors Life $ 15,189 7,143 75,105 35,208
Waddell & Reed, Inc. 1,524,621 556,516 1,095,549 448,356
Waddell & Reed Asset
Management Company 9,600 4,800 56,700 25,596
Waddell & Reed Investment
Management Company 392,217 182,347 306,521 149,402
Waddell & Reed Services
Company 331,921 145,517 253,969 108,553
-------------- ------------- -------------- -------------
$ 2,273,548 896,323 1,787,844 767,115
-------------- ------------- -------------- -------------
-------------- ------------- -------------- -------------
</TABLE>
(5) RELATED PARTY TRANSACTIONS
The Plan purchased Torchmark Corporation common stock at the prevailing
market price in 1998 and 1997. The Plan purchased Waddell & Reed Financial,
Inc. Class A stock during 1998 at the prevailing market price. The Plan
also received Waddell & Reed Financial, Inc. Class B common stock as a
result of Waddell & Reed Financial, Inc.'s spin-off from Torchmark
Corporation.
8
<PAGE>
SCHEDULE 1
WADDELL & REED FINANCIAL, INC.
SAVINGS AND INVESTMENT PLAN
Item 27a - Schedule of Assets Held for Investment Purposes
December 31, 1998
<TABLE>
<CAPTION>
(B) (C)
IDENTITY OF DESCRIPTION OF INVESTMENT
ISSUER, BORROWER, INCLUDING MATURITY DATE, RATE (E)
LESSOR, OR OF INTEREST, COLLATERAL, PAR, (D) CURRENT
(A) SIMILAR PARTY OR MATURITY VALUE COST VALUE
- ------ ------------------------------------ ---------------------------------------------- -------------- ---------------
<S> <C> <C> <C> <C>
* Torchmark Corporation 650,575 shares of common stock $ 3,142,044 6,752,971
* Waddell & Reed Financial, Inc.
Class A 358,662 shares of common stock 3,354,748 3,672,695
* Waddell & Reed Financial, Inc.
Class B 119,082 shares of common stock 418,352 1,233,692
* United Funds 1,610,962 shares of Income Fund 10,182,870 12,114,434
* United Funds 296,972 shares of Science and Technology 2,094,918 2,963,784
* United Funds 196,110 shares of Accumulative Fund 1,520,521 1,623,793
* United Funds 67,340 shares of Bond Fund 411,818 430,300
* United Funds 614,632 shares of International Growth 5,569,732 6,060,272
* United Funds 10,649 shares of Gold and Government 89,272 65,919
* United Funds 39,059 shares of Continental Income 289,634 312,473
* United Funds 198,090 shares of High Income 1,896,158 1,866,008
* United Funds 223,983 shares of Vanguard 1,614,889 2,062,879
* United Funds 744,498 shares of New Concepts 4,802,830 7,072,732
* United Funds 574,283 shares of High Income II 2,502,120 2,406,245
* United Funds 5,817,096 shares of Cash Management 5,817,096 5,817,096
* United Funds 229,780 shares of Government Securities 1,259,990 1,268,383
* United Funds 52,707 shares of Retirement Shares 430,242 473,306
* United Funds 24,181 shares of Asset Strategy 131,011 134,204
-------------- ---------------
Total funds 38,613,101 44,671,828
-------------- ---------------
Total investments $ 45,528,245 56,331,186
-------------- ---------------
-------------- ---------------
</TABLE>
* Indicates party-in-interest investment.
See accompanying independent auditors' report.
9
<PAGE>
SCHEDULE 2
WADDELL & REED FINANCIAL, INC.
SAVINGS AND INVESTMENT PLAN
Item 27d - Schedule of Reportable Transactions - Series
December 31, 1998
<TABLE>
<CAPTION>
(H)
(F) CURRENT VALUE
(A) (B) (C) (D) (E) EXPENSE (G) OF ASSET ON (I)
IDENTITY OF DESCRIPTION PURCHASE SELLING LEASE INCURRED WITH COST OF TRANSACTION NET GAIN
PARTY INVOLVED OF ASSET PRICE PRICE RENTALS TRANSACTION ASSET DATE OR LOSS
- ----------------- ------------------- ------------ ----------- --------- ------------- --------- ------------- ---------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
Waddell & Reed
Financial, Inc. Cash Management
Fund $ 2,968,955 -- -- -- 2,968,955 2,968,955 --
Waddell & Reed
Financial, Inc. Cash Management
Fund -- 2,968,955 -- -- 2,968,955 2,968,955 --
Waddell & Reed
Financial, Inc. Torchmark Corporation
common stock 1,997,528 5,218,993 -- -- 1,997,528 5,218,993 3,221,465
Waddell & Reed
Financial, Inc. Torchmark Corporation
common stock 106,505 -- -- -- 106,505 106,505 --
------------ ----------- --------- ------------ --------- ------------- ----------
------------ ----------- --------- ------------ --------- ------------- ----------
</TABLE>
See accompanying independent auditors' report.
10
<PAGE>
SIGNATURES
The Plan. Pursuant to the requirements of the Securities Exchange Act
of 1934, as amended, the Administrative Committee of the Plan has duly caused
this annual report to be signed on its behalf by the undersigned, hereunto duly
authorized, in the City of Overland Park, State of Kansas, on June 25, 1999.
WADDELL & REED FINANCIAL, INC.
SAVINGS AND INVESTMENT PLAN
(Now known as the Waddell & Reed Financial,
Inc. 401(k) and Thrift Plan)
By: /s/ Robert L. Hechler
------------------------------
Robert L. Hechler, Member
Administrative Committee
By: /s/ Michael D. Strohm
------------------------------
Michael D. Strohm, Member
Administrative Committee
By: /s/ William D. Howey, Jr.
------------------------------
William D. Howey, Jr., Member
Administrative Committee
<PAGE>
EXHIBIT 23
INDEPENDENT AUDITOR'S CONSENT
The Plan Administrators
Waddell & Reed Financial, Inc. Savings
and Investment Plan:
We consent to incorporation by reference in the Registration Statements (Form
S-8 No. 333-47567 and Form S-8 No. 333-69897) of Waddell & Reed Financial, Inc.
Savings and Investment Plan of our report dated May 21, 1999, relating to the
statements of net assets available for benefits of the Waddell & Reed Financial,
Inc. Savings and Investment Plan as of December 31, 1998 and 1997, and the
related statements of changes in net assets available for benefits for the years
then ended, which report is included in this Annual Report on Form 11-K for the
year ended December 31, 1998.
/s/ KPMG LLP
Kansas City, Missouri
June 25, 1999
