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SS&C Technologies Reports Record Revenue of $120.9 Million

Published on 10 Aug 2012

SS&C Technologies Holdings, Inc. (NASDAQ: SSNC) announced its financial results for the quarter that ended June 30, 2012.

“I am delighted to report that our second quarter revenue of $120.9 million rose 31.6 percent year-over-year,” said Bill Stone, Chairman and Chief Executive Officer, SS&C Technologies Holdings, Inc. “Q2 was a transformational quarter for SS&C. We began the quarter with 1,492 personnel and ended with 4,034. Our people in all of our businesses stayed focused, tended to our customers and delivered solid results. Organic adjusted revenue rose 3.4% as we overcame some customer attrition and the daily focus on the two large acquisitions. Hans Hufschmid, founder and chief executive officer of GlobeOp, has decided to move on to pursue other opportunities. We wish him all the best and he will continue in a consultative role with the company until January 2013. Rahul Kanwar, Senior Vice President and Managing Director, will assume overall responsibility for the SS&C GlobeOp Business reporting to Normand Boulanger, President and Chief Operating Officer.“

“We are bringing forward powerful new products and services to market and as our teams gather momentum we are receiving good feedback from the marketplace. We are already beginning to see synergies across our businesses.”

Results

The Company reported revenue of $120.9 million for the second quarter of 2012, compared to $91.8 million in the second quarter of 2011, an increase of 31.6 percent.

GAAP operating income for the second quarter of 2012 was $21.1 million, or 17.5 percent of revenue, down from $22.9 million in 2011’s second quarter, or 24.9 percent of revenue. GAAP net loss for the second quarter of 2012 was $5.8 million compared to net income of $13.0 million in the second quarter of 2011.

On a GAAP fully diluted basis, loss per share in the second quarter of 2012 was $0.07 compared to fully diluted earnings per share of $0.16 in the second quarter of 2011.

Adjusted revenue (a non-GAAP measure defined in note 1 to the attached Condensed Consolidated Financial Information) in the second quarter of 2012 was $121.2 million compared to $91.8 million in the second quarter of 2011, an increase of 32.0 percent.

Adjusted operating income (a non-GAAP measure defined in note 2 to the attached Condensed Consolidated Financial Information) in the second quarter of 2012 was $45.9 million, or 37.8 percent of adjusted revenue. This represents a 28.0 percent increase compared to adjusted operating income of $35.8 million and 39.0 percent of adjusted revenue in the second quarter of 2011.

Adjusted net income (a non-GAAP measure defined in note 4 to the attached Condensed Consolidated Financial Information) for the second quarter of 2012 was $27.2 million compared to $21.3 million in 2011’s second quarter, an increase of 27.9 percent.

Adjusted diluted earnings per share (a non-GAAP measure defined in note 4 to the attached Condensed Consolidated Financial Information) in the second quarter of 2012 was $0.33 per share compared to $0.26 per share in the second quarter of 2011, an increase of 26.9 percent.

The Company’s results for the second quarter of 2012 include the results of the PORTIA business, which the company acquired from Thomson Reuters on May 9, 2012, and GlobeOp Financial Services, which the company acquired on May 31, 2012, in each case from the respective acquisition date.
 

Annual Run Rate Basis
Annual Run Rate Basis (ARRB) recurring revenue, defined as the addition of maintenance and software-enabled services revenue, was $107.9 million for the second quarter of 2012, an annual run-rate of $431.5 million. This represents an increase of 33.2 percent from $81.0 million and $323.8 million run-rate in the same period in 2011 and an increase of 28.3 percent from Q1 2012’s $84.1 million and $336.3 million run-rate. We believe ARRB of our recurring revenue is a good indicator of visibility into future revenue.

Operating Cash Flow
SS&C ended the quarter with $134.5 million in cash, and $1,147.1 million in debt for a net debt balance of $1,012.6 million. We generated net cash from operating activities of $35.7 million for the six months ended June 30, 2012, compared to $41.1 million for the same period in 2011.

Guidance
SS&C announces the following financial guidance for the second quarter and fiscal year 2012:

Guidance	Q3 2012	FY 2012
Adjusted Revenue ($M)	$166.0 - $170.0	$554.0 - $562.5
Adjusted Net Income ($M)	$30.5 - $31.5	$112.7 - $115.0
Cash from Operating Activities ($M)	N/A	$108.0 - $112.0
Capital Expenditures (% of revenue)	N/A	2.8% - 3.2%

Non-GAAP Financial Measures
Adjusted revenue, adjusted operating income, adjusted consolidated EBITDA, adjusted net income and adjusted diluted earnings per share are non-GAAP measures. See the accompanying notes to the attached Condensed Consolidated Financial Information for the reconciliations and definitions for each of these non-GAAP measures and the reasons our management believes these measures provide useful information to investors regarding our financial condition and results of operations.

 

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