Waddell & Reed Financial, Inc. ended the second quarter with net income of $23.4 million, or 27 cents per share, down from $35.2 million, or 40 cents per share, in the year-ago period.

The latest figure included a charge to general and administrative costs of $548,000 for severance and other costs related to the recent sale of subsidiary Austin, Calvert & Flavin, Inc. Excluding the charges for the sales of ACF and other-than-temporary impairments, total net income would have been marginally increased to $23.7 million, or 28 cents per share.

The firm recorded gross sales in the advisor channel of $783 million and net flows of $140 million, both of which were lower than the year-ago numbers. The company's wholesale channel posted gross sales of $4.1 billion, which was 10 percent lower compared to the year-ago period.

The company's institutional channel saw $526 million in gross sales, which was 21 percent lower than Q2 of last year. Net inflows remained positive at $92 million.

As a result of the ACF sale, Waddell & Reed will no longer include the subsidiary's AUM in their institutional channel beginning in Q3 of 2009.

Waddell & Reed sold ACF to TTC Holdings, Inc. on July 15. 

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