Q3 2024 GAAP revenue $1,465.8 million, up 7.3%, Fully Diluted GAAP
Earnings Per Share $0.65, up
6.6%
Record Adjusted revenue $1,466.8 million, up 7.3%, Adjusted Diluted
Earnings Per Share $1.29, up
10.3%
WINDSOR,
Conn., Oct. 24, 2024 /PRNewswire/
-- SS&C Technologies Holdings, Inc. (NASDAQ: SSNC), a
global provider of investment, financial and healthcare software
and software-enabled services, today announced its financial
results for the third quarter ended September 30, 2024.
|
Three Months
Ended
September 30,
|
|
Nine Months
Ended
September 30,
|
|
|
(in millions, except
per share data):
|
2024
|
2023
|
Change
|
2024
|
2023
|
Change
|
|
GAAP
Results
|
|
|
|
|
|
|
|
Revenue
|
$1,465.8
|
$1,365.9
|
7.3 %
|
$4,352.3
|
$4,091.2
|
6.4 %
|
|
Operating
income
|
325.1
|
306.4
|
6.1 %
|
985.6
|
874.7
|
12.7 %
|
|
Operating income
margin
|
22.2 %
|
22.4 %
|
-20 bps
|
22.6 %
|
21.4 %
|
120 bps
|
|
Diluted earnings per
share attributable to
SS&C
|
$0.65
|
$0.61
|
6.6 %
|
$2.02
|
$1.62
|
24.7 %
|
|
Net income attributable
to SS&C
|
164.4
|
156.0
|
5.4 %
|
512.3
|
412.7
|
24.1 %
|
|
Adjusted Non-GAAP
Results (defined in Notes 1 - 4 below)
|
|
|
|
|
Adjusted
revenue
|
$1,466.8
|
$1,366.7
|
7.3 %
|
$4,355.0
|
$4,093.5
|
6.4 %
|
|
Adjusted operating
income attributable to
SS&C
|
548.8
|
517.4
|
6.1 %
|
1,630.5
|
1,496.2
|
9.0 %
|
|
Adjusted operating
income margin
|
37.4 %
|
37.9 %
|
-50 bps
|
37.4 %
|
36.6 %
|
80 bps
|
|
Adjusted diluted
earnings per share
attributable to SS&C
|
$1.29
|
$1.17
|
10.3 %
|
$3.83
|
$3.39
|
13.0 %
|
|
Adjusted consolidated
EBITDA attributable
to SS&C
|
566.2
|
533.9
|
6.0 %
|
1,681.9
|
1,545.2
|
8.8 %
|
|
Adjusted consolidated
EBITDA margin
|
38.6 %
|
39.1 %
|
-50 bps
|
38.6 %
|
37.7 %
|
90 bps
|
Third Quarter 2024 Highlights:
- Q3 2024 GAAP Revenue growth and Adjusted Revenue growth were
7.3 percent
- Adjusted Organic Revenue Growth was 6.4 percent, Financial
Services Recurring Revenue Growth was 7.2 percent.
- Q3 2024 we bought back 1.2 million shares for $89.4 million, at an average price of
$72.72 per share.
- SS&C reported GAAP net income attributable to SS&C of
$164.4 million, up 5.4 percent and
adjusted consolidated EBITDA attributable to SS&C of
$566.2 million for Q3 2024, up 6.0
percent.
- GAAP operating income margin for Q3 2024 was 22.2 percent.
Adjusted consolidated EBITDA margin for Q3 2024 was 38.6
percent.
- SS&C completed its acquisition of Battea-Class Action
Services on September 27, 2024 for a
purchase price of approximately $670
million.
"SS&C reported strong results for Q3 2024, with organic
revenue up 6.4 percent, accompanied by $1.29 in adjusted earnings per share, up 10.1
percent," says Bill Stone, Chairman
and Chief Executive Officer. "A few weeks ago we hosted over 1,000
clients, prospects, and partners in New
Orleans for our annual SS&C Deliver Conference. We
showcased SS&C's strengths in emerging technology, best
practice operational solutions, and deep industry expertise.
Feedback has been overwhelmingly positive and we look forward to
another great event in Scottsdale,
AZ in 2025."
Operating Cash Flow
SS&C generated net cash from operating activities of
$902.0 million for the nine months
ended September 30, 2024, compared to
$826.7 million for the same period in
2023, a 9.1% increase. SS&C ended the third quarter with
$694.7 million in cash and cash
equivalents and $7,243.1 million in
gross debt. SS&C's net debt balance as defined in our
credit agreement, which excludes cash and cash equivalents of
$159.0 million held at DomaniRx, LLC
was $6,707.3 million as of
September 30, 2024. SS&C's
consolidated net leverage ratio as defined in our credit agreement
stood at 2.94 times consolidated EBITDA attributable to SS&C as
of September 30, 2024. SS&C's net
secured leverage ratio stood at 1.74 times consolidated EBITDA
attributable to SS&C as of September 30,
2024.
Guidance
|
|
Q4
2024
|
|
FY
2024
|
|
Adjusted Revenue
($M)
|
|
$1,460.0 –
$1,500.0
|
|
$5,815.0 –
$5,855.0
|
|
Adjusted Net Income
attributable to SS&C
($M)
|
|
$329.0 –
$345.0
|
|
$1,299.0 –
$1,315.0
|
|
Interest
Expense1 ($M)
|
|
$110.0 –
$112.0
|
|
$442.0 –
$444.0
|
|
Adjusted Diluted
Earnings per Share
attributable to SS&C
|
|
$1.29 –
$1.35
|
|
$5.12 –
$5.18
|
|
Cash from Operating
Activities ($M)
|
|
–
|
|
$1,330.0 –
$1,370.0
|
|
Capital Expenditures (%
of revenue)
|
|
–
|
|
4.1% – 4.5%
|
|
Diluted Shares
(M)
|
|
254.6 –
255.6
|
|
253.6 –
253.8
|
|
Effective Income Tax
Rate (%)
|
|
26 %
|
|
26 %
|
|
|
1Interest
expense is net of deferred financing cost amortization and original
issue discount
|
SS&C does not provide reconciliations of guidance for
Adjusted Revenues and Adjusted Net Income to comparable GAAP
measures, in reliance on the unreasonable efforts exception
provided under Item 10(e)(1)(i)(B) of Regulation S-K.
SS&C is unable, without unreasonable efforts, to forecast
certain items required to develop meaningful comparable GAAP
financial measures. These items include acquisition
transactions and integration, foreign exchange rate changes, as
well as other non-cash and other adjustments as defined under the
Company's Credit agreement, that are difficult to predict in
advance in order to include in a GAAP estimate. The
unavailable information could have a significant impact on Q4 2024
and FY 2024 GAAP financial results.
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 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 third quarter 2024 earnings call will take place at
5:00 p.m. eastern time today,
October 24, 2024. The call will
discuss third quarter 2024 results. Interested parties may
dial 888-210-4650 (US and Canada)
or 646-960-0327 (International), and request the "SS&C
Technologies Third Quarter 2024 Earnings Conference Call";
conference ID #4673675. In connection with the earnings call,
a presentation will be available on SS&C's website at
www.ssctech.com. The call will be available for replay via
the webcast on SS&C's website; access:
https://investor.ssctech.com/financials/quarterly-results/default.aspx
Certain information contained in this press release relating
to, among other things, the Company's financial guidance for the
fourth quarter and full year of 2024 constitute forward-looking
statements for purposes of the safe harbor provisions under the
Private Securities Litigation Reform Act of 1995.
Forward-looking statements include statements concerning plans,
objectives, goals, strategies, expectations, intentions,
projections, developments, future events, performance, underlying
assumptions, and other statements that are other than statements of
historical facts. Without limiting the foregoing, the
words "believes", "anticipates", "plans", "expects", "estimates",
"projects", "forecasts", "may", "assume", "intend", "will",
"continue", "opportunity", "predict", "potential", "future",
"guarantee", "likely", "target", "indicate", "would", "could" and
"should" and similar expressions are intended to identify
forward-looking statements, although not all forward-looking
statements are accompanied by such words. 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 and other
industries in which the Company's clients operate, the Company's
ability to realize anticipated benefits from its acquisitions,
including DST Systems, Inc., the effect of customer consolidation
on demand for the Company's products and services, the increasing
focus of the Company's business on the hedge fund industry, the
variability of revenue as a result of activity in the securities
markets, the ability to retain and attract clients, fluctuations in
customer demand for the Company's products and services, the
intensity of competition with respect to the Company's products and
services, the exposure to litigation and other claims, terrorist
activities and other catastrophic events, disruptions, attacks or
failures affecting the Company's software-enabled services, risks
associated with the Company's foreign operations, privacy concerns
relating to the collection and storage of personal information,
evolving regulations and increased scrutiny from regulators, the
Company's ability to protect intellectual property assets and
litigation regarding intellectual property rights, delays in
product development, investment decisions concerning cash balances,
regulatory and tax risks, risks associated with the Company's joint
ventures, changes in accounting standards, risks related to the
Company's substantial indebtedness, the market price of the
Company's stock prevailing from time to time, and the risks
discussed in the "Risk Factors" section of the Company's most
recent Annual Report on Form 10-K and Quarterly Report on Form
10-Q, which are on file with the Securities and Exchange Commission
and can also be accessed on our website. Forward-looking
statements speak only as of the date on which they are made and,
except to the extent required by applicable securities laws, we
undertake no obligation to update or revise any forward-looking
statements.
About SS&C Technologies
SS&C is a global provider of services and software for the
financial services and healthcare industries. Founded in 1986,
SS&C is headquartered in Windsor,
Connecticut, and has offices around the world. Some 20,000
financial services and healthcare organizations, from the world's
largest companies to small and mid-market firms, rely on SS&C
for expertise, scale, and technology.
Follow SS&C on Twitter, LinkedIn and Facebook.
|
SS&C
Technologies Holdings, Inc. and Subsidiaries
Condensed
Consolidated Statements of Comprehensive Income
(in
millions, except per share
data)
(unaudited)
|
|
|
|
|
|
Three Months Ended
September 30,
|
|
|
Nine Months Ended
September 30,
|
|
|
|
2024
|
|
|
2023
|
|
|
2024
|
|
|
2023
|
|
|
Revenues:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Software-enabled
services
|
|
$
|
1,206.2
|
|
|
$
|
1,122.1
|
|
|
$
|
3,586.3
|
|
|
$
|
3,342.8
|
|
|
License, maintenance
and related
|
|
|
259.6
|
|
|
|
243.8
|
|
|
|
766.0
|
|
|
|
748.4
|
|
|
Total
revenues
|
|
|
1,465.8
|
|
|
|
1,365.9
|
|
|
|
4,352.3
|
|
|
|
4,091.2
|
|
|
Cost of
revenues:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Software-enabled
services
|
|
|
661.9
|
|
|
|
617.8
|
|
|
|
1,949.7
|
|
|
|
1,877.4
|
|
|
License, maintenance
and related
|
|
|
99.7
|
|
|
|
93.7
|
|
|
|
292.9
|
|
|
|
281.3
|
|
|
Total cost of
revenues
|
|
|
761.6
|
|
|
|
711.5
|
|
|
|
2,242.6
|
|
|
|
2,158.7
|
|
|
Gross profit
|
|
|
704.2
|
|
|
|
654.4
|
|
|
|
2,109.7
|
|
|
|
1,932.5
|
|
|
Operating
expenses:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Selling and
marketing
|
|
|
144.1
|
|
|
|
134.7
|
|
|
|
427.6
|
|
|
|
411.6
|
|
|
Research and
development
|
|
|
131.3
|
|
|
|
117.7
|
|
|
|
380.9
|
|
|
|
355.5
|
|
|
General and
administrative
|
|
|
103.7
|
|
|
|
95.6
|
|
|
|
315.6
|
|
|
|
290.7
|
|
|
Total operating
expenses
|
|
|
379.1
|
|
|
|
348.0
|
|
|
|
1,124.1
|
|
|
|
1,057.8
|
|
|
Operating
income
|
|
|
325.1
|
|
|
|
306.4
|
|
|
|
985.6
|
|
|
|
874.7
|
|
|
Interest expense,
net
|
|
|
(109.6)
|
|
|
|
(120.6)
|
|
|
|
(338.9)
|
|
|
|
(350.5)
|
|
|
Other income
(expense), net
|
|
|
9.3
|
|
|
|
(5.0)
|
|
|
|
16.5
|
|
|
|
15.3
|
|
|
Equity in earnings of
unconsolidated affiliates, net
|
|
|
1.1
|
|
|
|
27.5
|
|
|
|
20.7
|
|
|
|
42.6
|
|
|
Loss on extinguishment
of debt
|
|
|
(1.3)
|
|
|
|
(0.5)
|
|
|
|
(30.1)
|
|
|
|
(1.1)
|
|
|
Income before income
taxes
|
|
|
224.6
|
|
|
|
207.8
|
|
|
|
653.8
|
|
|
|
581.0
|
|
|
Provision for income
taxes
|
|
|
60.0
|
|
|
|
51.2
|
|
|
|
140.5
|
|
|
|
167.3
|
|
|
Net income
|
|
|
164.6
|
|
|
|
156.6
|
|
|
|
513.3
|
|
|
|
413.7
|
|
|
Net income
attributable to noncontrolling interest
|
|
|
(0.2)
|
|
|
|
(0.6)
|
|
|
|
(1.0)
|
|
|
|
(1.0)
|
|
|
Net income attributable
to SS&C common stockholders
|
|
$
|
164.4
|
|
|
$
|
156.0
|
|
|
$
|
512.3
|
|
|
$
|
412.7
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic earnings per
share attributable to SS&C common stockholders
|
|
$
|
0.67
|
|
|
$
|
0.63
|
|
|
$
|
2.08
|
|
|
$
|
1.66
|
|
|
Diluted earnings per
share attributable to SS&C common stockholders
|
|
$
|
0.65
|
|
|
$
|
0.61
|
|
|
$
|
2.02
|
|
|
$
|
1.62
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic weighted-average
number of common shares outstanding
|
|
|
246.1
|
|
|
|
247.5
|
|
|
|
246.4
|
|
|
|
248.8
|
|
|
Diluted
weighted-average number of common and common equivalent
shares outstanding
|
|
|
254.1
|
|
|
|
253.9
|
|
|
|
253.3
|
|
|
|
255.3
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income
|
|
$
|
164.6
|
|
|
$
|
156.6
|
|
|
$
|
513.3
|
|
|
$
|
413.7
|
|
|
Other comprehensive
income (loss), net of tax:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Foreign currency
exchange translation adjustment
|
|
|
159.0
|
|
|
|
(113.0)
|
|
|
|
114.1
|
|
|
|
(4.8)
|
|
|
Change in defined
benefit pension obligation
|
|
|
—
|
|
|
|
—
|
|
|
|
0.1
|
|
|
|
—
|
|
|
Total other
comprehensive income (loss), net of tax
|
|
|
159.0
|
|
|
|
(113.0)
|
|
|
|
114.2
|
|
|
|
(4.8)
|
|
|
Comprehensive
income
|
|
|
323.6
|
|
|
|
43.6
|
|
|
|
627.5
|
|
|
|
408.9
|
|
|
Comprehensive income
attributable to noncontrolling interest
|
|
|
(0.2)
|
|
|
|
(0.6)
|
|
|
|
(1.0)
|
|
|
|
(1.0)
|
|
|
Comprehensive income
attributable to SS&C common stockholders
|
|
$
|
323.4
|
|
|
$
|
43.0
|
|
|
$
|
626.5
|
|
|
$
|
407.9
|
|
|
SS&C
Technologies Holdings, Inc. and Subsidiaries
Condensed
Consolidated Balance Sheets
(in
millions)
(unaudited)
|
|
|
|
|
|
September 30,
|
|
|
December 31,
|
|
|
|
2024
|
|
|
2023
|
|
|
Assets
|
|
|
|
|
|
|
|
Current
assets:
|
|
|
|
|
|
|
|
Cash and cash
equivalents
|
|
$
|
694.7
|
|
|
$
|
432.2
|
|
|
Funds receivable and
funds held on behalf of clients
|
|
|
2,081.5
|
|
|
|
2,615.6
|
|
|
Accounts receivable,
net
|
|
|
934.0
|
|
|
|
799.4
|
|
|
Contract
asset
|
|
|
47.2
|
|
|
|
36.1
|
|
|
Prepaid expenses and
other current assets
|
|
|
129.8
|
|
|
|
165.8
|
|
|
Restricted
cash
|
|
|
3.5
|
|
|
|
2.4
|
|
|
Total current
assets
|
|
|
3,890.7
|
|
|
|
4,051.5
|
|
|
Property, plant and
equipment, net
|
|
|
309.4
|
|
|
|
315.3
|
|
|
Operating lease
right-of-use assets
|
|
|
193.8
|
|
|
|
221.4
|
|
|
Investments
|
|
|
184.6
|
|
|
|
184.7
|
|
|
Unconsolidated
affiliates
|
|
|
327.7
|
|
|
|
345.2
|
|
|
Contract
asset
|
|
|
115.2
|
|
|
|
99.7
|
|
|
Goodwill
|
|
|
9,374.4
|
|
|
|
8,969.5
|
|
|
Intangible and other
assets, net
|
|
|
4,042.6
|
|
|
|
3,915.2
|
|
|
Total
assets
|
|
$
|
18,438.4
|
|
|
$
|
18,102.5
|
|
|
Liabilities and
Equity
|
|
|
|
|
|
|
|
Current
liabilities:
|
|
|
|
|
|
|
|
Current portion of
long-term debt
|
|
$
|
47.1
|
|
|
$
|
51.5
|
|
|
Client funds
obligations
|
|
|
2,081.6
|
|
|
|
2,615.6
|
|
|
Accounts
payable
|
|
|
43.6
|
|
|
|
80.3
|
|
|
Income taxes
payable
|
|
|
7.7
|
|
|
|
22.3
|
|
|
Accrued employee
compensation and benefits
|
|
|
280.1
|
|
|
|
270.2
|
|
|
Interest
payable
|
|
|
19.7
|
|
|
|
29.4
|
|
|
Other accrued
expenses
|
|
|
275.9
|
|
|
|
232.3
|
|
|
Deferred
revenue
|
|
|
464.0
|
|
|
|
470.3
|
|
|
Total current
liabilities
|
|
|
3,219.7
|
|
|
|
3,771.9
|
|
|
Long-term debt, net of
current portion
|
|
|
7,155.6
|
|
|
|
6,668.5
|
|
|
Operating lease
liabilities
|
|
|
175.4
|
|
|
|
199.1
|
|
|
Other long-term
liabilities
|
|
|
203.4
|
|
|
|
248.7
|
|
|
Deferred income
taxes
|
|
|
796.2
|
|
|
|
816.6
|
|
|
Total
liabilities
|
|
|
11,550.3
|
|
|
|
11,704.8
|
|
|
SS&C stockholders'
equity
|
|
|
6,814.1
|
|
|
|
6,339.6
|
|
|
Noncontrolling
interest
|
|
|
74.0
|
|
|
|
58.1
|
|
|
Total equity
|
|
|
6,888.1
|
|
|
|
6,397.7
|
|
|
Total liabilities and
equity
|
|
$
|
18,438.4
|
|
|
$
|
18,102.5
|
|
|
SS&C
Technologies Holdings, Inc. and Subsidiaries
Condensed
Consolidated Statements of Cash Flows
(in
millions)
(unaudited)
|
|
|
|
Nine Months Ended
September 30,
|
|
|
|
2024
|
|
|
2023
|
|
|
Cash flow from
operating activities:
|
|
|
|
|
|
|
|
Net income
|
|
$
|
513.3
|
|
|
$
|
413.7
|
|
|
Adjustments to
reconcile net income to net cash provided by operating
activities:
|
|
|
|
|
|
|
|
Depreciation and
amortization
|
|
|
504.3
|
|
|
|
500.4
|
|
|
Equity in earnings of
unconsolidated affiliates, net
|
|
|
(20.7)
|
|
|
|
(42.6)
|
|
|
Distributions received
from unconsolidated affiliates
|
|
|
13.1
|
|
|
|
21.2
|
|
|
Stock-based
compensation expense
|
|
|
147.9
|
|
|
|
117.5
|
|
|
Net (gains) losses on
investments
|
|
|
(2.5)
|
|
|
|
0.9
|
|
|
Amortization and
write-offs of loan origination costs and original issue
discounts
|
|
|
6.7
|
|
|
|
10.2
|
|
|
Loss on extinguishment
of debt
|
|
|
30.1
|
|
|
|
1.1
|
|
|
Loss on sale or
disposition of property and equipment
|
|
|
—
|
|
|
|
7.6
|
|
|
Deferred income
taxes
|
|
|
(52.6)
|
|
|
|
(89.1)
|
|
|
Provision for credit
losses
|
|
|
13.7
|
|
|
|
9.8
|
|
|
Changes in operating
assets and liabilities, excluding effects from
acquisitions:
|
|
|
|
|
|
|
|
Accounts
receivable
|
|
|
(100.4)
|
|
|
|
(69.0)
|
|
|
Prepaid expenses and
other assets
|
|
|
5.5
|
|
|
|
27.6
|
|
|
Contract
assets
|
|
|
(25.3)
|
|
|
|
0.5
|
|
|
Accounts
payable
|
|
|
(40.8)
|
|
|
|
(5.3)
|
|
|
Accrued expenses and
other liabilities
|
|
|
(75.7)
|
|
|
|
(73.8)
|
|
|
Income taxes prepaid
and payable
|
|
|
(8.9)
|
|
|
|
(16.3)
|
|
|
Deferred
revenue
|
|
|
(5.7)
|
|
|
|
12.3
|
|
|
Net cash provided by
operating activities
|
|
|
902.0
|
|
|
|
826.7
|
|
|
Cash flow from
investing activities:
|
|
|
|
|
|
|
|
Cash paid for business
acquisitions, net of cash acquired and asset
acquisitions
|
|
|
(646.9)
|
|
|
|
(0.1)
|
|
|
Additions to property
and equipment
|
|
|
(41.7)
|
|
|
|
(40.7)
|
|
|
Proceeds from sale of
property and equipment
|
|
|
3.3
|
|
|
|
—
|
|
|
Additions to
capitalized software
|
|
|
(149.7)
|
|
|
|
(140.9)
|
|
|
Investments in
securities
|
|
|
—
|
|
|
|
(0.6)
|
|
|
Proceeds from sales /
maturities of investments
|
|
|
0.3
|
|
|
|
7.7
|
|
|
Distributions received
from unconsolidated affiliates
|
|
|
24.4
|
|
|
|
—
|
|
|
Collection of other
non-current receivables
|
|
|
7.7
|
|
|
|
7.5
|
|
|
Net cash used in
investing activities
|
|
|
(802.6)
|
|
|
|
(167.1)
|
|
|
Cash flow from
financing activities:
|
|
|
|
|
|
|
|
Cash received from
debt borrowings, net of original issue discount
|
|
|
5,545.0
|
|
|
|
275.0
|
|
|
Repayments of
debt
|
|
|
(5,060.1)
|
|
|
|
(499.5)
|
|
|
Payment of deferred
financing fees
|
|
|
(36.6)
|
|
|
|
—
|
|
|
Net decrease in client
funds obligations
|
|
|
(952.2)
|
|
|
|
(163.7)
|
|
|
Proceeds from exercise
of stock options
|
|
|
271.1
|
|
|
|
79.2
|
|
|
Withholding taxes paid
related to equity award net share settlement
|
|
|
(20.3)
|
|
|
|
(1.7)
|
|
|
Purchases of common
stock for treasury
|
|
|
(369.3)
|
|
|
|
(341.0)
|
|
|
Dividends paid on
common stock
|
|
|
(182.6)
|
|
|
|
(160.9)
|
|
|
Proceeds from
noncontrolling interests
|
|
|
14.9
|
|
|
|
—
|
|
|
Net cash used in
financing activities
|
|
|
(790.1)
|
|
|
|
(812.6)
|
|
|
Effect of exchange
rate changes on cash, cash equivalents and restricted
cash
|
|
|
2.2
|
|
|
|
(4.2)
|
|
|
Net decrease in cash,
cash equivalents and restricted cash
|
|
|
(688.5)
|
|
|
|
(157.2)
|
|
|
Cash, cash equivalents
and restricted cash, beginning of period
|
|
|
2,998.6
|
|
|
|
1,337.6
|
|
|
Cash, cash
equivalents and restricted cash and cash equivalents, end of
period
|
|
$
|
2,310.1
|
|
|
$
|
1,180.4
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation of
cash, cash equivalents and restricted cash and cash
equivalents:
|
|
|
Cash and cash
equivalents
|
|
$
|
694.7
|
|
|
$
|
447.6
|
|
|
Restricted cash and
cash equivalents
|
|
|
3.5
|
|
|
|
2.3
|
|
|
Restricted cash and
cash equivalents included in funds receivable and funds held on
behalf of
clients
|
|
|
1,611.9
|
|
|
|
730.5
|
|
|
|
$
|
2,310.1
|
|
|
$
|
1,180.4
|
|
SS&C Technologies Holdings, Inc. and
Subsidiaries
Disclosures Relating to Non-GAAP Financial
Measures
Note 1. Reconciliation of Revenues to Adjusted
Revenues
Adjusted revenues represents revenues adjusted to include a)
amounts that would have been recognized if deferred revenue were
not adjusted to fair value at the date of acquisition and b)
amounts that would have been recognized if not for adjustments to
deferred revenue and retained earnings related to the adoption of
ASC 606. Adjusted revenues is presented because we use this
measure to evaluate performance of our business against prior
periods and believe it is a useful indicator of the underlying
performance of our business. Adjusted revenues is not a
recognized term under generally accepted accounting principles
("GAAP"). Adjusted revenues does not represent revenues, as
that term is defined under GAAP, and should not be considered as an
alternative to revenues as an indicator of our operating
performance. Adjusted revenues as presented herein is not
necessarily comparable to similarly titled measures presented by
other companies. Below is a reconciliation of adjusted
revenues to revenues, the GAAP measure we believe to be most
directly comparable to adjusted revenues.
|
|
Three Months
Ended
September 30,
|
|
|
Nine Months
Ended
September 30,
|
|
|
(in
millions)
|
|
2024
|
|
|
2023
|
|
|
2024
|
|
|
2023
|
|
|
Revenues
|
|
$
|
1,465.8
|
|
|
$
|
1,365.9
|
|
|
$
|
4,352.3
|
|
|
$
|
4,091.2
|
|
|
ASC 606 adoption
impact
|
|
|
(0.7)
|
|
|
|
(0.8)
|
|
|
|
(2.2)
|
|
|
|
(2.5)
|
|
|
Purchase accounting
adjustments impact on revenue
|
|
|
1.7
|
|
|
|
1.6
|
|
|
|
4.9
|
|
|
|
4.8
|
|
|
Adjusted
revenues
|
|
$
|
1,466.8
|
|
|
$
|
1,366.7
|
|
|
$
|
4,355.0
|
|
|
$
|
4,093.5
|
|
The following is a breakdown of software-enabled services and
license, maintenance and related revenues and adjusted
software-enabled services and license, maintenance and related
revenues.
|
|
Three Months
Ended
September 30,
|
|
|
Nine Months
Ended
September 30,
|
|
|
(in
millions)
|
|
2024
|
|
|
2023
|
|
|
2024
|
|
|
2023
|
|
|
Software-enabled
services
|
|
$
|
1,206.2
|
|
|
$
|
1,122.1
|
|
|
$
|
3,586.3
|
|
|
$
|
3,342.8
|
|
|
License, maintenance
and related
|
|
|
259.6
|
|
|
|
243.8
|
|
|
|
766.0
|
|
|
|
748.4
|
|
|
Total
revenues
|
|
$
|
1,465.8
|
|
|
$
|
1,365.9
|
|
|
$
|
4,352.3
|
|
|
$
|
4,091.2
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Software-enabled
services
|
|
$
|
1,207.3
|
|
|
$
|
1,123.1
|
|
|
$
|
3,589.1
|
|
|
$
|
3,345.4
|
|
|
License, maintenance
and related
|
|
|
259.5
|
|
|
|
243.6
|
|
|
|
765.9
|
|
|
|
748.1
|
|
|
Total adjusted
revenues
|
|
$
|
1,466.8
|
|
|
$
|
1,366.7
|
|
|
$
|
4,355.0
|
|
|
$
|
4,093.5
|
|
Note 2. Reconciliation of Operating Income to Adjusted
Operating Income
Adjusted operating income represents operating income adjusted
for amortization of intangible assets, stock-based compensation,
purchase accounting adjustments for deferred revenue and related
costs, ASC 606 adoption impact and other expenses. Adjusted
operating income is presented because we use this measure to
evaluate performance of our business and believe it is a useful
indicator of our underlying performance. Adjusted operating
income is not a recognized term under 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 by other
companies. 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.
|
|
Three Months
Ended
September 30,
|
|
|
Nine Months
Ended
September 30,
|
|
|
(in
millions)
|
|
2024
|
|
|
2023
|
|
|
2024
|
|
|
2023
|
|
|
Operating
income
|
|
$
|
325.1
|
|
|
$
|
306.4
|
|
|
$
|
985.6
|
|
|
$
|
874.7
|
|
|
Amortization of
intangible assets
|
|
|
152.4
|
|
|
|
150.6
|
|
|
|
449.1
|
|
|
|
445.3
|
|
|
Stock-based
compensation
|
|
|
52.2
|
|
|
|
42.1
|
|
|
|
147.9
|
|
|
|
117.5
|
|
|
Purchase accounting
adjustments (1)
|
|
|
3.4
|
|
|
|
3.6
|
|
|
|
9.5
|
|
|
|
12.0
|
|
|
ASC 606 adoption
impact
|
|
|
(0.7)
|
|
|
|
(0.8)
|
|
|
|
(2.0)
|
|
|
|
(2.3)
|
|
|
Acquisition related
(2)
|
|
|
1.6
|
|
|
|
2.4
|
|
|
|
2.7
|
|
|
|
7.8
|
|
|
Facilities and
workforce restructuring
|
|
|
14.0
|
|
|
|
13.8
|
|
|
|
33.6
|
|
|
|
42.5
|
|
|
Other (3)
|
|
|
1.7
|
|
|
|
0.2
|
|
|
|
7.2
|
|
|
|
0.8
|
|
|
Adjusted operating
income
|
|
$
|
549.7
|
|
|
$
|
518.3
|
|
|
$
|
1,633.6
|
|
|
$
|
1,498.3
|
|
|
Adjusted operating
income attributable to noncontrolling interest (4)
|
|
|
(0.9)
|
|
|
|
(0.9)
|
|
|
|
(3.1)
|
|
|
|
(2.1)
|
|
|
Adjusted operating
income attributable to SS&C common
stockholders
|
|
$
|
548.8
|
|
|
$
|
517.4
|
|
|
$
|
1,630.5
|
|
|
$
|
1,496.2
|
|
|
|
|
(1)
|
Purchase accounting
adjustments include (a) an adjustment to increase revenues by the
amount that would have been recognized if deferred revenue were not
adjusted to fair value at the date of acquisition, (b) an
adjustment to increase personnel and commissions expense by the
amount that would have been recognized if prepaid commissions and
deferred personnel costs were not adjusted to fair value at the
date of the acquisitions and (c) an adjustment to decrease
depreciation expense by the amount that would not have been
recognized if property, plant and equipment were not adjusted to
fair value at the date of acquisition.
|
|
(2)
|
Acquisition related
includes costs related to both current acquisitions and the
resolution of pre-acquisition matters for prior period
acquisitions.
|
|
(3)
|
Other includes
additional expenses and income that are permitted to be excluded
per the terms of our Credit Agreement from Consolidated EBITDA, a
financial measure used in calculating our covenant
compliance.
|
|
(4)
|
In 2021, we entered
into a joint venture named DomaniRx, LLC in which we are the
majority interest holder and primary beneficiary. As such, we
consolidate DomaniRx, LLC as a variable interest entity. Adjusted
operating income attributable to noncontrolling interest represents
adjusted operating income based on the ownership interest retained
by the respective noncontrolling parties.
|
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 April 2018, as amended, 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 (as defined below) 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 as indicators of our
operating performance. These measures are not necessarily
comparable to similarly titled measures by other companies.
The following is a reconciliation of EBITDA, Consolidated EBITDA
and Adjusted Consolidated EBITDA to net income.
|
|
Three Months
Ended
September 30,
|
|
|
Nine Months
Ended
September 30,
|
|
|
Twelve
Months
Ended
September 30,
|
|
|
(in
millions)
|
|
2024
|
|
|
2023
|
|
|
2024
|
|
|
2023
|
|
|
2024
|
|
|
Net income
|
|
$
|
164.6
|
|
|
$
|
156.6
|
|
|
$
|
513.3
|
|
|
$
|
413.7
|
|
|
$
|
708.3
|
|
|
Interest expense,
net
|
|
|
109.6
|
|
|
|
120.6
|
|
|
|
338.9
|
|
|
|
350.5
|
|
|
|
458.3
|
|
|
Provision for income
taxes
|
|
|
60.0
|
|
|
|
51.2
|
|
|
|
140.5
|
|
|
|
167.3
|
|
|
|
222.2
|
|
|
Depreciation and
amortization
|
|
|
171.3
|
|
|
|
168.5
|
|
|
|
504.3
|
|
|
|
500.4
|
|
|
|
674.4
|
|
|
EBITDA
|
|
|
505.5
|
|
|
|
496.9
|
|
|
|
1,497.0
|
|
|
|
1,431.9
|
|
|
|
2,063.2
|
|
|
Stock-based
compensation
|
|
|
52.2
|
|
|
|
42.1
|
|
|
|
147.9
|
|
|
|
117.5
|
|
|
|
189.8
|
|
|
Acquired EBITDA and
cost savings (1)
|
|
|
0.8
|
|
|
|
—
|
|
|
|
19.4
|
|
|
|
—
|
|
|
|
34.5
|
|
|
Loss on extinguishment
of debt
|
|
|
1.3
|
|
|
|
0.5
|
|
|
|
30.1
|
|
|
|
1.1
|
|
|
|
31.1
|
|
|
Equity in earnings of
unconsolidated affiliates, net
|
|
|
(1.1)
|
|
|
|
(27.5)
|
|
|
|
(20.7)
|
|
|
|
(42.6)
|
|
|
|
(78.2)
|
|
|
Purchase accounting
adjustments (2)
|
|
|
1.9
|
|
|
|
2.4
|
|
|
|
5.7
|
|
|
|
6.7
|
|
|
|
8.3
|
|
|
ASC 606 adoption
impact
|
|
|
(0.7)
|
|
|
|
(0.8)
|
|
|
|
(2.0)
|
|
|
|
(2.3)
|
|
|
|
(2.7)
|
|
|
Foreign currency
translation (gains) losses
|
|
|
(4.2)
|
|
|
|
2.5
|
|
|
|
1.6
|
|
|
|
3.7
|
|
|
|
(2.3)
|
|
|
Investment (gains)
losses (3)
|
|
|
(5.3)
|
|
|
|
0.5
|
|
|
|
(17.3)
|
|
|
|
(13.7)
|
|
|
|
(22.5)
|
|
|
Facilities and
workforce restructuring
|
|
|
13.9
|
|
|
|
13.8
|
|
|
|
33.6
|
|
|
|
42.5
|
|
|
|
47.9
|
|
|
Acquisition related
(4)
|
|
|
1.8
|
|
|
|
3.9
|
|
|
|
2.7
|
|
|
|
(1.3)
|
|
|
|
3.9
|
|
|
Other (5)
|
|
|
1.8
|
|
|
|
0.5
|
|
|
|
6.4
|
|
|
|
3.8
|
|
|
|
10.0
|
|
|
Consolidated
EBITDA
|
|
$
|
567.9
|
|
|
$
|
534.8
|
|
|
$
|
1,704.4
|
|
|
$
|
1,547.3
|
|
|
$
|
2,283.0
|
|
|
Acquired EBITDA and
cost savings (1)
|
|
|
(0.8)
|
|
|
|
—
|
|
|
|
(19.4)
|
|
|
|
—
|
|
|
|
(34.5)
|
|
|
Adjusted Consolidated
EBITDA
|
|
$
|
567.1
|
|
|
$
|
534.8
|
|
|
$
|
1,685.0
|
|
|
$
|
1,547.3
|
|
|
$
|
2,248.5
|
|
|
Adjusted Consolidated
EBITDA attributable to noncontrolling
interest (6)
|
|
|
(0.9)
|
|
|
|
(0.9)
|
|
|
|
(3.1)
|
|
|
|
(2.1)
|
|
|
|
(4.0)
|
|
|
Adjusted Consolidated
EBITDA attributable to SS&C common
stockholders
|
|
$
|
566.2
|
|
|
$
|
533.9
|
|
|
$
|
1,681.9
|
|
|
$
|
1,545.2
|
|
|
$
|
2,244.5
|
|
|
|
|
(1)
|
Acquired EBITDA
reflects the EBITDA impact of significant businesses that were
acquired during the period as if the acquisition occurred at the
beginning of the period, as well as cost savings enacted in
connection with acquisitions.
|
|
(2)
|
Purchase accounting
adjustments include (a) an adjustment to increase revenues by the
amount that would have been recognized if deferred revenue were not
adjusted to fair value at the date of acquisitions (b) an
adjustment to increase personnel and commissions expense by the
amount that would have been recognized if prepaid commissions and
deferred personnel costs were not adjusted to fair value at the
date of the acquisitions and (c) an adjustment to increase or
decrease rent expense by the amount that would have been recognized
if lease obligations were not adjusted to fair value at the date of
acquisitions.
|
|
(3)
|
Investment gains
includes unrealized fair value adjustments of investments and
dividend income received on investments.
|
|
(4)
|
Acquisition related
includes costs related to both current acquisitions and the
resolution of pre-acquisition matters for prior period
acquisitions.
|
|
(5)
|
Other includes
additional expenses and income that are permitted to be excluded
per the terms of our Credit Agreement from Consolidated EBITDA, a
financial measure used in calculating our covenant
compliance.
|
|
(6)
|
In 2021, we entered
into a joint venture named DomaniRx, LLC in which we are the
majority interest holder and primary beneficiary. As such, we
consolidate DomaniRx, LLC as a variable interest entity. Adjusted
Consolidated EBITDA attributable to noncontrolling interest
represents adjusted Consolidated EBITDA based on the ownership
interest retained by the respective noncontrolling
parties.
|
Note 4. Reconciliation of Net Income to Adjusted Net Income
and Diluted Earnings Per Share Attributable to SS&C to Adjusted
Diluted Earnings Per Share Attributable to SS&C
Adjusted net income and adjusted diluted earnings per share
attributable to SS&C represent net income and earnings per
share attributable to SS&C before amortization of intangible
assets and deferred financing costs, stock-based compensation,
purchase accounting adjustments and other items. We consider
adjusted net income and adjusted diluted earnings per share
attributable to SS&C to be 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, purchase
accounting adjustments, loss on extinguishment of debt and other
items, that are not operational in nature or comparable to those of
our competitors. Adjusted net income and adjusted diluted
earnings per share are not recognized terms under GAAP.
Adjusted net income and adjusted diluted earnings per share 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 attributable to SS&C as
presented herein are not necessarily comparable to similarly titled
measures presented by other companies. Below is a
reconciliation of adjusted net income and adjusted diluted earnings
per share attributable to SS&C to net income and diluted
earnings per share attributable to SS&C, the GAAP measures we
believe to be most directly comparable to adjusted net income and
adjusted diluted earnings per share.
|
|
Three Months
Ended
September 30,
|
|
|
Nine Months
Ended September 30,
|
|
|
(in millions, except
per share data)
|
|
2024
|
|
|
2023
|
|
|
2024
|
|
|
2023
|
|
|
GAAP – Net
income
|
|
$
|
164.6
|
|
|
$
|
156.6
|
|
|
$
|
513.3
|
|
|
$
|
413.7
|
|
|
Amortization of
intangible assets
|
|
|
152.4
|
|
|
|
150.6
|
|
|
|
449.1
|
|
|
|
445.3
|
|
|
Amortization of
deferred financing costs and original issue discount
|
|
|
1.4
|
|
|
|
3.3
|
|
|
|
6.7
|
|
|
|
10.2
|
|
|
Stock-based
compensation
|
|
|
52.2
|
|
|
|
42.1
|
|
|
|
147.9
|
|
|
|
117.5
|
|
|
Loss on extinguishment
of debt
|
|
|
1.3
|
|
|
|
0.5
|
|
|
|
30.1
|
|
|
|
1.1
|
|
|
Purchase accounting
adjustments (1)
|
|
|
3.4
|
|
|
|
3.6
|
|
|
|
9.5
|
|
|
|
12.0
|
|
|
ASC 606 adoption
impact
|
|
|
(0.7)
|
|
|
|
(0.8)
|
|
|
|
(2.0)
|
|
|
|
(2.3)
|
|
|
Equity in earnings of
unconsolidated affiliates, net
|
|
|
(1.1)
|
|
|
|
(27.5)
|
|
|
|
(20.7)
|
|
|
|
(42.6)
|
|
|
Foreign currency
translation (gains) losses
|
|
|
(4.2)
|
|
|
|
2.5
|
|
|
|
1.6
|
|
|
|
3.7
|
|
|
Investment (gains)
losses (2)
|
|
|
(3.1)
|
|
|
|
2.7
|
|
|
|
(2.5)
|
|
|
|
0.9
|
|
|
Facilities and
workforce restructuring
|
|
|
13.9
|
|
|
|
13.8
|
|
|
|
33.6
|
|
|
|
42.5
|
|
|
Acquisition related
(3)
|
|
|
1.8
|
|
|
|
3.9
|
|
|
|
2.7
|
|
|
|
(1.3)
|
|
|
Other (4)
|
|
|
1.8
|
|
|
|
0.8
|
|
|
|
6.3
|
|
|
|
4.7
|
|
|
Income tax effect
(5)
|
|
|
(55.4)
|
|
|
|
(53.6)
|
|
|
|
(201.7)
|
|
|
|
(137.6)
|
|
|
Adjusted net
income
|
|
$
|
328.3
|
|
|
$
|
298.5
|
|
|
$
|
973.9
|
|
|
$
|
867.8
|
|
|
Adjusted net income
attributable to noncontrolling interest (6)
|
|
|
(1.2)
|
|
|
|
(1.2)
|
|
|
|
(3.6)
|
|
|
|
(2.3)
|
|
|
Adjusted net income
attributable to SS&C common stockholders
|
|
$
|
327.1
|
|
|
$
|
297.3
|
|
|
$
|
970.3
|
|
|
$
|
865.5
|
|
|
Adjusted diluted
earnings per share attributable to SS&C common
stockholders
|
|
$
|
1.29
|
|
|
$
|
1.17
|
|
|
$
|
3.83
|
|
|
$
|
3.39
|
|
|
GAAP diluted earnings
per share attributable to SS&C common
stockholders
|
|
$
|
0.65
|
|
|
$
|
0.61
|
|
|
$
|
2.02
|
|
|
$
|
1.62
|
|
|
Diluted
weighted-average shares outstanding
|
|
|
254.1
|
|
|
|
253.9
|
|
|
|
253.3
|
|
|
|
255.3
|
|
|
|
|
(1)
|
Purchase accounting
adjustments include (a) an adjustment to increase revenues by the
amount that would have been recognized if deferred revenue were not
adjusted to fair value at the date of acquisition, (b) an
adjustment to increase personnel and commissions expense by the
amount that would have been recognized if prepaid commissions and
deferred personnel costs were not adjusted to fair value at the
date of the acquisitions and (c) an adjustment to decrease
depreciation expense by the amount that would not have been
recognized if property, plant and equipment were not adjusted to
fair value at the date of acquisition.
|
|
(2)
|
Investment gains
includes unrealized fair value adjustments of investments. In
prior periods, investment gains also included dividend income
received on investments. Prior period amounts have been
revised for consistent presentation.
|
|
(3)
|
Acquisition related
includes costs related to both current acquisitions and the
resolution of pre-acquisition matters for prior period
acquisitions.
|
|
(4)
|
Other includes
additional expenses and income that are permitted to be excluded
per the terms of our Credit Agreement from Consolidated EBITDA, a
financial measure used in calculating our covenant
compliance.
|
|
(5)
|
An estimated normalized
effective tax rate of approximately 26% for the three and nine
months ended September 30, 2024 and 2023 has been used to adjust
the provision for income taxes for the purpose of computing
adjusted net income.
|
|
(6)
|
In 2021, we entered
into a joint venture named DomaniRx, LLC in which we are the
majority interest holder and primary beneficiary. As such, we
consolidate DomaniRx, LLC as a variable interest entity. Adjusted
net income attributable to noncontrolling interest represents
adjusted net income based on the ownership interest retained by the
respective noncontrolling parties.
|
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SOURCE SS&C