GAAP Diluted EPS of $0.22, Up 83%, Adjusted Diluted EPS of $0.28, Up 16.7%
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, 2012.
"Our software-enabled services business continues to grow, up 12 percent. Fund administration is where we see a lot of potential and we believe we are in an excellent position," said Bill Stone, Chairman and Chief Executive Officer, SS&C Technologies Holdings, Inc. "We continue to see big opportunities in the fund services marketplace and we have won a number of large mandates in the second quarter. Form PF is an impetus and we believe we have the best solution and it is resonating with our prospects and customers. Although SS&C had a weak license quarter, we were able to recognize this and manage our expenses to continue to drive our earnings."
The Company reported quarterly revenue of $93.7 million for the first quarter of 2012, compared to $89.0 million in the first quarter of 2011, a 5.2 percent increase.
GAAP operating income for the first quarter of 2012 was $22.1 million, or 23.6 percent of revenue, down from $23.1 million in 2011's first quarter, or 26.0 percent of revenue. Operating income was down 4.5 percent from 2011's first quarter.
GAAP net income for the first quarter of 2012 was $17.9 million compared to $9.8 million in the first quarter of 2011, an 81.8 percent increase.
On a fully diluted basis, earnings per share in the first quarter of 2012 were $0.22 compared to $0.12 in the first quarter of 2011, an 83.3 percent increase.
The Company recorded transaction costs of $4.2 million in the first quarter related to the proposed offer to acquire GlobeOp Financial Services S.A. (GlobeOp) and the pending acquisition of the Thomson Reuters' PORTIA® business. In addition, in other income (expense) the Company recorded a gain of $4.4 million related to a currency hedge put in place for the proposed acquisition of GlobeOp.
Adjusted operating income (a non-GAAP measure defined in note 2 to the attached Condensed Consolidated Financial Information) in the first quarter of 2012 was $36.0 million, or 38.5 percent of revenue. This represents a 5.6 percent increase compared to $34.1 million and 38.3 percent of revenue in the first quarter of 2011.
Adjusted net income (a non-GAAP measure defined in note 4 to the attached Condensed Consolidated Financial Information) for the first quarter of 2012 was $23.1 million compared to $19.2 million in 2011's first quarter, a 20.4 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 2012 were $0.28 compared to $0.24 in the first quarter of 2011, a 16.7 percent increase.
Annual Run Rate Basis
Annual Run Rate Basis (ARRB) recurring revenue, defined as the addition of maintenance and software-enabled services revenue, was $84.1 million for the first quarter of 2012, an annual run-rate of $336.3 million. This represents an increase of 8.9 percent from $77.2 million and $308.7 million run-rate in the same period in 2011 and an increase of 0.9 percent from Q4 2011's $83.3 million and $333.2 million run-rate. We believe ARRB of our recurring revenue is a good indicator of visibility into future revenue.
Operating Cash Flow
SS&C ended the quarter with $41.9 million in cash, and $85.0 million in debt, for a net debt balance of $43.1 million. SS&C generated net cash from operating activities of $13.1 million for the quarter ended March 31, 2012, compared to $12.1 million for the same period in 2011, representing an 8.6 percent increase. SS&C's leverage ratio as defined in our credit agreement stood at 0.6 for the quarter ended March 31, 2012.
SS&C announces the following financial guidance for the second quarter and fiscal year 2012:
Total Revenue ($M)
$95.5 - $97.5
$392.0 - $400.0
Adjusted Net Income ($M)
$24.0 - $24.8
$99.0 - $103.5
Cash from Operating Activities ($M)
$115.0 - $120.0
Capital Expenditures (% of revenue)
2.2% - 2.7%
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.