"We are pleased to announce first quarter earnings of $0.18 per share," remarked CEO Bill Stone. "Our ability to significantly increase our profits over last yearâs first quarter in todayâs tough market indicates that our strategies remain on target. Our recurring revenue streams continue to grow and our recent acquisitions are showing positive results."
Revenue, Balance Sheet, Cash Flow and Operating Earnings Strong
"Operating income in Q1 was $3.6 million, up from $0.7 million in Q1 2002, an increase of 439%," said Stone. "Total revenues increased 3% in the period. Maintenance revenues, however, increased by 12% and we have over $18 million of deferred revenue on our balance sheet. Our annualized return on equity for the first quarter was 16%. We continue to manage expenses wisely and are close to completing the consolidation efforts related to our acquisitions."
"Our balance sheet remains healthy and we are generating strong cash flow from operations," said Stone. "Total cash, cash equivalents and investments in marketable securities at quarter end were $48.4 million. We increased cash and marketable securities by $8.2 million, or $0.65 per basic share, excluding stock repurchases of $1.9 million and proceeds from option exercises of $0.4 million. Our strong cash position of $3.84 per share gives us the capacity to aggressively pursue accretive acquisitions, which add to our value and reinforce our recurring revenue model."
"At present, we expect Q2 2003 revenues to be in the range of $16.0 to $17.0 million and net income to be between $0.18 and $0.20 per diluted share," stated Stone. "For 2003, we anticipate revenue will be between $65 and $70 million and diluted earnings per share between $0.77 and $0.82."
First Quarter Highlights
SS&C Chief Operating Officer Norm Boulanger praised the performance of the municipal finance group, which was just acquired last November. "The transition after the DBC transaction has gone smoothly," said Boulanger. "The group has made an immediate contribution and remains focused on serving its clients. We quickly reached out to this new market segment and have had good feedback right out of the box." With respect to other markets, Boulanger remarked, "Performance was balanced. Our hedge fund business had a solid quarter and added Andor Capital Management as a client. Commercial lending did well, as did our Asia Pacific group. We rolled out a major release of CAMRA and introduced a new front-end origination system to our LMS loan management system. We also launched a new reporting and data visualization tool for actuarial software called AnalyticsExpress and signed several clients to long-term deals. At the beginning of April, we entered into an agreement to distribute LiveVault, a new online data backup and recovery service, with our products. We expect this service to be a nice complement to our product lines."
SS&C's Q1 2003 earnings call will take place at 6:00 p.m. Eastern Time today, April 16, 2003. Interested parties may dial 706-643-7858 (US, Canada and International) and request the "SS&C First Quarter Earnings Call". A replay will be available by dialing 706-645-9291 and entering the access code 9530986 after 9:00 p.m. today until April 30, 2003. A replay of the call will also be available after April 22, 2003 on our website.
This press release contains forward-looking statements relating to, among other things, the Companyâs expected revenues and earnings per share for the second quarter and full year of 2003. Such statements reflect managementâs 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 Companyâs ability to finalize large client contracts, fluctuations in customer demand for the Companyâs products and services, intensity of competition from other application vendors, terrorist activities, delays in product development, the Companyâs ability to control expenses, general economic and industry conditions, and those risks described in the Companyâs filings with the Securities and Exchange Commission, including without limitation, the Companyâs Annual Report on Form 10-K for the year ended December 31, 2002. SS&C cautions investors that it may not update any or all of the foregoing forward-looking statements.