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SS&C Technologies Announces Results for Q2 2009
Aug 10, 2009
WINDSOR, CT - August 10, 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 June 30, 2009.  Revenue on a GAAP basis for the second quarter of 2009 was $67.3 million. This represents a decrease of $4.9 million, or 6.8%, from revenues over the same period in 2008, with $3.0 million of the decline resulting from the negative impact of foreign exchange and acquisitions contributing $4.1 million. Net income, on a GAAP basis, for the second quarter of 2009, was $3.5 million.

 

Adjusted operating income (a non-GAAP financial measure defined in note 1 to the attached Consolidated Condensed Financial Information) was $25.1 million for the three months ended June 30, 2009, compared to $26.8 million in the second quarter of the prior year, representing 37.3% and 37.1% of revenues, respectively.  GAAP operating income in the second quarter of 2009 was $15.8 million and includes amortization of $7.8 million and stock-based compensation of $1.5 million, compared to $17.3 million of operating income for the same period in 2008.  Consolidated EBITDA (a non-GAAP financial measure defined in note 2 of the Consolidated Condensed Financial Information) for the second quarter of 2009 was $28.1 million, compared to $29.2 million in the second quarter of 2008, a decrease of 3.7%.

Revenues/Operating Income
"While market conditions remain unpredictable we saw a positive turn in revenues from $63.7 million in the first quarter of 2009 to $67.3 million in the second quarter, a 5.5% increase," said Bill Stone, Chairman and CEO, SS&C Technologies. "We have continued to focus on productivity improvements and cost controls and as a result have maintained our high operating margins. For the rest of 2009, we see reasonably healthy sales pipeline activity around the world and as a result; believe our revenues will continue to stabilize in Q3 and Q4."

Acquisition
"During the second quarter, we acquired the assets and related business associated with Unisys Corporation's MAXIMIS software.  Sophisticated large investment management firms use MAXIMIS software for their investment accounting, regulatory and management reporting needs," noted Stone. "We feel this acquisition represents an excellent strategic fit within our institutional software and services offering, and we expect it will create new opportunities to sell to new and existing clients."

Fund Administration
"In Q2 and year to date, we started to see improved demand for our fund administration services for hedge funds, funds of funds and private equity funds.  We have seen an improvement in our pipeline for fund administration services.  We believe this is notable because of our independence, our financial stability and the quality of our in-house expertise and systems," said Stone.

Balance Sheet and Cash Flow
SS&C ended the quarter with $39.1 million in cash and cash equivalents, and $409.8 million in debt for a net debt balance of $370.7 million. We generated net cash from operating activities of $20.9 million for the six months ended June 30, 2009, compared to $25.0 million for the same period in 2008.  This decrease is related in part to an increase in income tax payments of $11.7 million compared to $8.0 million in the same period in 2008.

"We will continue to use cash to acquire new businesses, and pay down debt and deleverage our business. Our consolidated total leverage, as defined in our senior credit facilities, is now 3.3 times consolidated EBITDA compared to 6.8 times when we went private," said Stone.

Earnings Call
SS&C's Q2 2009 earnings call will take place at 10:00 a.m. eastern time on August 11th, 2009. The call will discuss Q2 2009 results. Interested parties may dial 877-680-2259 (US and Canada) or 706-679-6413 (International) and request the "SS&C Second Quarter 2009 Earnings Call", conference ID # 23784163. A replay will be available after 1:00 p.m. eastern time on August 11th, until midnight on August 18th, 2009. The dial-in number is 800-642-1687 (US and Canada) 706-645-9291 (International); access code # 23784163.

This press release contains forward-looking statements relating to, among other things, our expected revenue trend for Q3 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