WINDSOR, Conn., May 9, 2011 (GLOBE NEWSWIRE) -- SS&C Technologies Holdings, Inc. (Nasdaq:SSNC), a global provider of investment and financial software-enabled services and software, today announced its financial results for the quarter that ended March 31, 2011.
"Celebrating our 25th year in business, I am pleased to report our record Q1 2011 revenue of $89.0 million, up 14 percent over Q1 2010. We believe revenue growth is an indication of the competitive strength of SS&C and its breadth and depth of software-enabled services and software," said Bill Stone, Chairman and Chief Executive Officer, SS&C Technologies Holdings, Inc. "We continue to enhance our growth opportunities and execute on our commitment to technology and service leadership, including cloud computing, mobility and transparency."
Results
The Company reported quarterly revenue of $89.0 million for the first quarter of 2011, compared to $78.2 million in the first quarter of 2010, an increase of 13.9 percent.
GAAP operating income for the first quarter of 2011 was $23.1 million, or 26.0 percent of revenue, up from $19.4 million in 2010's first quarter, or 24.8 percent of revenue, operating income was up 19 percent over 2010's first quarter. Net income for the first quarter of 2011 was $9.8 million compared to $9.0 million in the first quarter of 2010.
On a fully diluted basis, earnings per share in the first quarter of 2011 were $0.12 compared to $0.14 in the first quarter of 2010.
Adjusted operating income (a non-GAAP measure defined in note 2 to the attached Condensed Consolidated Financial Information) in the first quarter of 2011 was $34.1 million, or 38.3 percent of revenue. This represents a 13.2 percent increase compared to $30.1 million and 38.5 percent of revenue in the first quarter of 2010.
Adjusted net income (a non-GAAP measure defined in note 4 to the attached Condensed Consolidated Financial Information) for the first quarter of 2011 was $19.2 million compared to $14.1 million in 2010's first quarter, a 35.8 percent increase.
Adjusted diluted earnings per share (a non-GAAP measure defined in note 4 to the attached Condensed Consolidated Financial Information) in the first quarter of 2011 were $0.24 compared to $0.22 in the first quarter of 2010.
Annual Run Rate Basis
Annual Run Rate Basis (ARRB) recurring revenue, defined as the addition of maintenance and software-enabled services revenue, was $77.2 million for the first quarter of 2011, an annual run-rate of $308.7 million. This represents an increase of 14.8 percent from $67.2 million and $268.8 million run-rate in the same period in 2010 and an increase of 3.3 percent from Q4 2010's $74.7 million and $298.9 million run-rate. We believe ARRB of our recurring revenue is a good indicator of visibility into future revenue.
Acquisition
In the first quarter of 2011, SS&C acquired Glastonbury, Connecticut-based BenefitsXML, a provider of enterprise software solutions for employee benefit service providers. BenefitsXML's Benefits Real Time Information Exchange (BRIX) employee benefits administration system is a multi-tenant, multi-channel customer self-service platform that lowers service costs and improves employee satisfaction for both employer and employee benefit service providers. The acquisition adds 19 new SS&C employees based in Glastonbury, Connecticut.
Guidance and Lock-Up Release
SS&C announces the following financial guidance for the second quarter and fiscal year 2011:
SS&C also announced today the underwriters of the Company's follow-on public offering of common stock completed on February 9, 2011 have agreed that the transfer and sale restrictions set forth in the lock-up agreements executed in connection with the offering will terminate on May 12, 2011.
Results of SS&C Technologies, Inc.
Our operating subsidiary, SS&C Technologies, Inc., posted the same revenues and net income for the first quarter of 2011 as the Company.
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.
Earnings Call and Press Release
SS&C's Q1 earnings call will take place at 5:00 p.m. eastern time today, May 9, 2011. The call will discuss Q1 2011 results and our guidance and business outlook. Interested parties may dial 877-312-8798 (U.S. and Canada) or 253-237-1193 (International) and request the "SS&C Technologies 2011 First Quarter Earnings Conference Call," conference ID #62323242. A replay will be available after 8:00 p.m. eastern time on May 9, 2011, until midnight on May 16, 2011. The dial-in number is 800-642-1687 (U.S. and Canada), 706-645-9291 (International); access code #62323242. The call will also be available for replay on SS&C's website after May 10, 2011; access: .
This press release contains forward-looking statements relating to, among other things, our financial guidance for the second quarter of 2011 and full year 2011. 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 publicly available filings with the Securities and Exchange Commission. The Company cautions investors that it may not update any or all of the foregoing forward-looking statements.
About SS&C Technologies
Celebrating its 25th year, SS&C is a global provider of investment and financial software-enabled services and software focused exclusively on the global financial services industry. Founded in 1986, SS&C has its headquarters in Windsor, Connecticut and offices around the world. 5,000 financial services organizations, from the world's largest to local financial services organizations, manage and account for their investments using SS&C's products and services. These clients in the aggregate manage over $16 trillion in assets.
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SS&C Technologies Holdings, Inc. and Subsidiaries
Notes to Condensed Consolidated Financial Information
Note 1. Reconciliation of Revenue to Adjusted Revenue
Adjusted revenue represents revenue adjusted for one-time purchase accounting adjustments to fair value deferred revenue acquired in business combinations. Adjusted revenue is presented because we use this measure to evaluate the performance of our business against prior periods and believe it is a useful indicator of the underlying performance of the Company. Adjusted revenue is not a recognized term under generally accepted accounting principles (GAAP). Adjusted revenue does not represent revenue, as that term is defined under GAAP, and should not be considered as an alternative to revenue as an indicator of our operating performance. Adjusted revenue as presented herein is not necessarily comparable to similarly titled measures. The following is a reconciliation between adjusted revenue and revenue, the GAAP measure we believe to be most directly comparable to adjusted revenue.
Note 2. Reconciliation of Operating Income to Adjusted Operating Income
Adjusted operating income represents operating income adjusted for amortization of acquisition-related intangible assets and purchase accounting adjustments for deferred revenue and other expenses. Adjusted operating income is presented because we use this measure to evaluate the performance of our business and believe it is a useful indicator of the underlying performance of the Company. Adjusted operating income is not a recognized term under generally accepted accounting principles (GAAP). Adjusted operating income does not represent operating income, as that term is defined under GAAP, and should not be considered as an alternative to operating income as an indicator of our operating performance. Adjusted operating income as presented herein is not necessarily comparable to similarly titled measures. The following is a reconciliation between adjusted operating income and operating income, the GAAP measure we believe to be most directly comparable to adjusted operating income.
Note 3. Reconciliation of Net Income to EBITDA, Consolidated EBITDA and Adjusted Consolidated EBITDA
EBITDA represents net income before interest expense, income taxes, depreciation and amortization. Consolidated EBITDA, defined under our Credit Agreement entered into in November 2005, is used in calculating covenant compliance, and is EBITDA adjusted for certain items. Consolidated EBITDA is calculated by subtracting from or adding to EBITDA items of income or expense described below. Adjusted consolidated EBITDA is calculated by subtracting acquired EBITDA from consolidated EBITDA. EBITDA, consolidated EBITDA and adjusted consolidated EBITDA are presented because we use these measures to evaluate performance of our business and believe them to be useful indicators of an entity's debt capacity and its ability to service debt. EBITDA, consolidated EBITDA and adjusted consolidated EBITDA are not recognized terms under GAAP and should not be considered in isolation or as alternatives to operating income, net income or cash flows from operating activities. EBITDA, consolidated EBITDA and adjusted consolidated EBITDA do not represent net income, as that term is defined under GAAP, and should not be considered as alternatives to net income as an indicator of our operating performance. The following is a reconciliation between EBITDA, consolidated EBITDA and adjusted consolidated EBITDA and net income.
Note 4. Reconciliation of Net Income to Adjusted Net Income and Diluted Earnings Per Share to Adjusted Diluted Earnings Per Share
Adjusted net income and adjusted diluted earnings per share represent net income and earnings per share before amortization of intangible assets and deferred financing costs, stock-based compensation, capital-based taxes and other unusual and non-recurring items. Adjusted net income and adjusted diluted earnings per share are not recognized terms under GAAP, do not represent net income or diluted earnings per share, as those terms are defined under GAAP, and should not be considered as alternatives to net income or diluted earnings per share as indicators of our operating performance. Adjusted net income and adjusted diluted earnings per share are important to management and investors because they represent our operational performance exclusive of the effects of amortization of intangible assets and deferred financing costs, stock-based compensation, capital-based taxes and other unusual and non-recurring items that are not operational in nature or comparable to those of our competitors. The following is a reconciliation between adjusted net income and adjusted diluted earnings per share and net income and diluted earnings per share.
CONTACT: Patrick Pedonti Chief Financial Officer Tel: +1-860-298-4738 E-mail: investorrelations@sscinc.com
