Founded in 1937, Waddell & Reed (NYSE:WDR) is one of the first mutual fund companies in America. And it still knows how to grow its business.

In the latest quarterly report, net income was $24.6 million, or $0.30 per share, which is up from $22.8 million, or $0.028 per share. During the past quarter, revenues increased 14.8% to $173.1 million.

If not for one-time charges, the company would have posted net profits of $25.5 million, or $0.31 per share. A large portion of the charge came from employee separation costs from a subsidiary of the company, Austin Calvert & Flavin.

Waddell & Reed has a comprehensive financial services platform, providing investment advisory services, distribution, and administrative services to mutual funds, institutions, and separately managed accounts. Besides having its own family of mutual funds, the company also distributes a variety of other funds, such as the Advisors Funds, the Ivy Funds, the Target Funds, and InvestEd.

What's more, management has been making critical changes over the past year. There was a $32.5 million settlement to resolve alleged misrepresentations of variable annuities (part of the company's Torchmark unit). The company has also been focusing on improving the productivity of its advisors.

Of course, industry trends are quite favorable for Waddell & Reed. The company focuses on middle-income and mass affluent individuals, families, and businesses. As these groups get closer to retirement, they are seeking higher-quality financial advice. And, by all accounts, it's a long-term trend. So long as Waddell & Reed can avoid trouble -- in terms of the questionable sales practices that have checkered its past -- it should be able to continue its steady growth.

Fool contributor Tom Taulli does not own shares mentioned in this article.