Company Achieves Record Quarterly Revenue of $97 Million
Advent Software, Inc. (NASDAQ: ADVS), a leading provider of software and services to the global investment management industry, announced its financial results for the third quarter ended September 30, 2013.
“Advent delivered record revenues and solid profitability, demonstrating the value customers continue to place on our solutions,” said Pete Hess, Chief Executive Officer at Advent. “Third quarter highlights also included our successful annual client conference, AdventConnect, where we shared a well-received preview of our new cloud-based solution platform, which launches next year. It’s exciting to see the enthusiasm as we continue to sharpen our focus on our clients’ success.”
THIRD QUARTER 2013 RESULTS
GAAP Results for Continuing Operations
The Company reported quarterly revenue of $96.8 million for the third quarter of 2013, compared to $90.2 million in the third quarter of 2012, a 7% increase.
Operating income for the third quarter of 2013 was $17.4 million, or 18.0% of revenue, compared to $12.6 million or 14.0% of revenue for the third quarter of 2012.
Net income for the third quarter of 2013 was $9.8 million compared to $7.7 million in the third quarter of 2012.
On a fully diluted basis, earnings per share in the third quarter of 2013 were $0.18, compared to $0.15 in the third quarter of 2012.
Operating cash flow in the third quarter of 2013 was $22.8 million, compared with $25.3 million in the third quarter of 2012.
Cash, cash equivalents and marketable securities totaled $41 million as of September 30, 2013, compared to $404 million as of June 30, 2013. On July 9, 2013, the Company paid a one-time special cash dividend of $9 per share totaling approximately $470 million. The special dividend was financed with cash on hand and proceeds from Advent's recently closed $425 million senior credit facility. Total outstanding debt as of September 30, 2013 was $350 million compared to $225 million as of June 30, 2013.
Deferred revenue as of September 30, 2013 was $173 million, compared to $174 million as of June 30, 2013.
Non-GAAP Results for Continuing Operations
Non-GAAP operating income for the third quarter of 2013 was $29.0 million, or 30.0% of revenue. This represents a 39% increase compared to $20.8 million, or 23.1% of revenue, in the third quarter of 2012. On a fully diluted basis, non-GAAP earnings per share were $0.31 in the third quarter of 2013 and represent a 22% increase from non-GAAP diluted earnings per share of $0.26 in the third quarter of 2012.
The reconciliation between GAAP and non-GAAP financial measures is provided at the end of this press release.
THIRD QUARTER HIGHLIGHTS
- Continued Market Demand: Advent saw continued success across all of its client segments, from hedge funds and asset managers to family offices, fund administrators and the growing advisory market. The Company added new clients including: Crabel Capital Management, Seer Capital Management LP, Whitebox Advisors, Evercore Wealth Management, Cain, Watters & Associates, Essex Financial Services, Watermark Asset Management, Sparebanken Vest, Herald Investment Management, and CACEIS. Existing clients that expanded their relationship with Advent or migrated to a new Advent platform included: Vastardis Fund Services, Sentinel Investments, Weeden Prime Services, Swift Run Capital Management, Towneley Capital Management, Brown Advisory, and BTIG.
- Client Conference Success: With over 1,000 attendees, AdventConnect 2013 was the Company’s largest client conference in its 30 year history. At the conference, Advent unveiled a number of new enhancements and product solutions including Geneva® 10.0, Tamale RMS® 7.0 and Advent Direct™.
Advent updates the following financial guidance for the fourth quarter and fiscal year 2013:
Total Revenue ($M)
YoY Revenue Growth
3% - 5%
GAAP Operating Margin
11.0% - 11.5%
Stock Compensation Expense (% of revenue)
Amortization of Intangibles
(% of revenue)
Recapitalization Costs (% of revenue)
Restructuring Charges (% of revenue)
Non-GAAP Operating Margin
29.5% - 30.0%
Operating Cash Flow ($M)
$93 - $97
Capital Expenditures ($M)
$8 - $10
Effective Tax Rate (GAAP)
25% - 30%
Effective Tax Rate (non-GAAP)