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SS&C Technologies Announces Results for Q1 2009
May 12, 2009
WINDSOR, CT - May 12, 2009 - SS&C Technologies, Inc. (www.ssctech.com), a global provider of financial services software and software-enabled services, today announced results for the quarter ended March 31, 2009. Revenue on a GAAP basis for the first quarter of 2009 was $63.7 million. This is a decrease of $4.8 million from revenues over the same period in 2008, with $4.2 million of the decline resulting from the negative impact of foreign exchange.  Net income, on a GAAP basis, for the first quarter of 2009, was $3.9 million, an increase of 4% over the same period in 2008.

 

Adjusted operating income (a non-GAAP financial measure defined in note 1 to the attached Consolidated Condensed Financial Information) was $23.1 million for the three months ended March 31, 2009, compared to $24.6 million in the first quarter of the prior year, a decrease of 6%. GAAP operating income in the first quarter of 2009 was $14.5 million and includes amortization of $7.4 million and stock-based compensation of $1.3 million, compared to $15.8 million of operating income for the same period in 2008, a decrease of 9%. Consolidated EBITDA (a non-GAAP financial measure defined in note 2 of the Consolidated Condensed Financial Information) for the first quarter of 2009 was $25.2 million, compared to $26.8 million in the first quarter of 2008, a decrease of 6%.

Revenues/Operating Income
"SS&C continues to perform in very difficult markets. Many of our largest customers have reduced capital spending and cut back on information technology projects. The assets under management of many of our fund administration clients have shrunk as markets declined and our clients deleveraged. Given this backdrop, a 6% decline in consolidated EBITDA is an excellent result. Our EBITDA margin has remained strong at 39.6% and our decision to reduce our workforce by 9% on November 1, 2008, appears prescient,” said Bill Stone, Chairman and CEO, SS&C Technologies. “While revenue has declined for three straight quarters, we are optimistic this trend will change in Q2. We continue to garner new clients and we are being selected by large, sophisticated organizations for our independence, financial strength and the quality of our service and software offerings.”

Acquisition
“During the first quarter, we acquired the assets and business of Evare, LLC, a Burlington, Massachusetts-based provider for financial data acquisition, transformation and delivery. Financial institutions spend a considerable amount of time each day in gathering disparate data in disparate formats to conduct reconciliations and communicate with various counterparties and customers. Evare's high powered service and deep understanding of the complexities of these processes offer a broad range of financial service participants considerable operational cost savings,” noted Stone. “Our clients have responded well to this deal and we are working diligently on integrating our Securities Valuation Corporation data as well as our SSCNet and Recon product to the Evare offerings.”

Balance Sheet and Cash Flow
SS&C ended the quarter with $35.5 million in cash and cash equivalents, and $407.5 million in debt for a net debt balance of $372.0 million. We generated net cash from operating activities of $11.0 million for the three months ended March 31, 2009, compared to $19.4 million for the same period in 2008. This decrease is related in part to an increase in tax payments of $4.3 million. Income taxes paid in the quarter were $7.4 million compared with $3.1 million in same period in 2008. Other items affecting operating cash flow included an increase in accounts receivable DSO and the effect of increased bonus payments in Q1 2009 compared with Q1 2008.

Earnings Call
SS&C's Q1 2009 earnings call will take place at 11:00 a.m. eastern time on May 13, 2009. The call will discuss Q1 2009 results. Interested parties may dial 877-680-2259 (US and Canada) or 706-679-6413 (International) and request the "SS&C First Quarter 2009 Earnings Call", conference ID #99528797. A replay will be available after 1:00 p.m. eastern time on May 13th, until midnight on May 20th, 2009. The dial-in number is 800-642-1687 (US and Canada) 706-645-9291 (International); access code #99528797.

This press release contains forward-looking statements relating to, among other things, our expected revenue trend for Q2 2009 and our plans to acquire new businesses. Such statements reflect management's best judgment based on factors currently known but are subject to risks and uncertainties, which could cause actual results to differ materially from those anticipated. Such risks and uncertainties include, but are not limited to, the state of the economy and the financial services industry, the Company's ability to finalize large client contracts, fluctuations in customer demand for the Company's products and services, intensity of competition from application vendors, delays in product development, the Company's ability to control expenses, terrorist activities, the Company's ability to integrate acquired businesses, the effect of the acquisitions on customer demand for the Company's products and services, and those risks described in the Company's filings with the Securities and Exchange Commission, including without limitation, the Company's Annual Report on Form 10-K for the year ended December 31, 2008. The Company cautions investors that it may not update any or all of the foregoing forward-looking statements.

About SS&C Technologies
SS&C delivers investment and financial management services and software focused exclusively on the financial services industry. By leveraging expertise in common investment business functions, SS&C cost effectively serves clients in the different industry segments, including: 1) insurance entities and pension funds, 2) institutional asset management, 3) hedge funds and family offices, 4) treasury, banks and credit unions 5) municipal finance, 6) real estate property management, 7) commercial lending and 8) financial markets. Additional information is available at www.ssctech.com.

Click here to view the finncial earnigns statement in PDF format.

 

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Patrick Pedonti 
Chief Financial Officer, SS&C Technologies 
Tel: 1-860-298-4738 
E-mail: InvestorRelations@sscinc.com

Justine Stone Investor, Relations, SS&C Technologies
Tel: 1- 212-367-4705
E-mail: InvestorRelations@sscinc.com

Media Contacts 
Sean Welch 
PAN Communications
Tel: (407) 734-7330
E-mail: ssc@pancomm.com