Email Contact Phone Company Visit Website

London Office

1 St Martin’s Le Grand
London
GB

Surbiton London Office

DST House St Mark's Hill
Surbiton
GB

South Africa Office

DST House 12 Sherborne Road Parktown 2193
Johannesburg
ZA

Telephone

860-298-4653

Contact

Lese Amato
[email protected]
Back to all SS&C announcements

Advent Software Reports Second Quarter 2014 Results

Advent Software, Inc. (NASDAQ: ADVS), a leading provider of software and services to the global investment management industry, announced today its financial results for the second quarter ended June 30, 2014.

“We are pleased to report that Advent had an excellent second quarter with record revenues, robust profitability, and growing operating cash flow,” said Pete Hess, Chief Executive Officer of Advent. “Increasing demand for Advent’s solutions, including Advent Direct® Investor Management, and continued client loyalty are evidence of our strong competitive position.”

SECOND QUARTER 2014 RESULTS

GAAP Results for Continuing Operations
The Company reported quarterly revenue of $100.4 million for the second quarter of 2014, compared to $96.1 million in the second quarter of 2013, a 4% increase. 

Operating income for the second quarter of 2014 was $21.8 million, or 21.7% of revenue, compared to a loss of $5.8 million for the second quarter of 2013. Advent’s results for the second quarter of 2013 included costs associated with its recapitalization transaction. These costs, on a pre-tax basis, were composed of $6.7 million of third party costs which were not included in capitalized debt issue costs and $21.9 million of stock-based compensation expense associated with the modification of equity awards. 

Net income for the second quarter of 2014 was $12.7 million, compared to a loss of $4.2 million in the second quarter of 2013. On a fully diluted basis, earnings per share in the second quarter of 2014 were $0.24 compared to a loss of $0.08 in the second quarter of 2013.

Operating cash flow in the second quarter of 2014 was $22.4 million, compared with $21.9 million in the second quarter of 2013. 

Cash and cash equivalents totaled $41 million as of June 30, 2014, compared to $45 million as of March 31, 2014. Total outstanding debt as of June 30, 2014 was $280 million compared to $295 million as of March 31, 2014. 

Deferred revenue as of June 30, 2014 was $183.1 million, compared to $187.8 million as of March 31, 2014.

The Company repurchased approximately 426,000 shares of its common stock in the second quarter of 2014 for a total cash outlay of $12.4 million and at an average price of $29.11 per share.

Non-GAAP Results for Continuing Operations
Non-GAAP operating income for the second quarter of 2014 was $33.2 million, or 33.1% of revenue, a 7% increase compared to $31.0 million, or 32.3% of revenue, in the second quarter of 2013. 

On a fully diluted basis, non-GAAP earnings per share were $0.38 in the second quarter of 2014 and represent a 4% increase from non-GAAP diluted net income per share of $0.37 in the second quarter of 2013.

The reconciliation between GAAP and non-GAAP financial measures is provided at the end of this press release. 

HIGHLIGHTS

  • Advent’s Black Diamond Platform Surpasses 500-Client Milestone. Advent’s Black Diamond platform has surpassed 540 clients and has exceeded $245 billion in assets on its portfolio management, reporting, and rebalancing platform. The client base has increased by more than 125 percent and assets by more than 240 percent since its acquisition by Advent in June 2011.
  • Award-Winning Solutions & Company: Advent's solutions continued to receive industry awards and win honors around the world during the second quarter. Advent was awarded “Best Fund Accounting and Reporting Systems Firm” by Hedgeweek, as well as “Best Client Reporting Solution” by FTF News. In Europe, Advent was named “Best Portfolio Management Solution” at Wealth Briefing European Awards 2014 and “Best Technology – Fund Accounting” at the HFM Week European Hedge Fund Service Awards.
  • Continued Client Success: Advent had a strong second quarter, with a number of existing clients expanding their relationship with Advent, and many new noteworthy clients around the world, including Beta Capital Management, Carroll Financial Associates, Fiera Capital Corporation, Finix Services, Merced Capital L.P., Busey Wealth Management, Mesirow Financial Administrative Corp., William E. Hamm and Associates, Neon Capital Management, and the Georgia Division of Investment Services.
  • Quarterly Dividend: Advent's Board of Directors declared its first quarterly cash dividend to its shareholders during the second quarter of 2014. The quarterly cash dividend payment of $0.13 per common share was paid on July 15, 2014 to shareholders of record on June 30, 2014.

FINANCIAL GUIDANCE

Advent updates the following financial guidance for the third quarter and fiscal year 2014:

Guidance

Q3 2014

FY 2014

Total Revenue ($M)

$99-$102

$395-$403

GAAP Operating Margin

n/a

20.0%-20.5%

Stock Compensation Expense (% of revenue)

n/a

8.5%

Amortization of Intangibles (% of revenue)

n/a

2.0%

Restructing (% of revenue)

n/a

0.5%

Non-GAAP Operating Margin (% of revenue)

n/a

31.0%-31.5%

Operating Cash Flow ($M)

n/a

$105-$115

Capital Expenditures ($M)

n/a

$8-$11

Effective Tax Rate (GAAP)

n/a

35%-40%

Effective Tax Rate (non-GAAP)

n/a

35%