Canadian investment technology outfit Financial Models Company is reporting a net loss for the year of C$4.2 million after accouning for corporate transaction costs of $10.6 million related to its takeover by SS&C Technologies.
The $10.6 million includes a fee of $6 million to French financial IT firm Linedata for terminating a prior acquisition agreement with FMC, with the remainder for legal, professional, investment advisory and other fees. The corporate transaction costs less related income tax had a negative effect on fourth quarter and fiscal 2005 net earnings of $9.0 million and $9.2 million, respectively.
SS&C, the successful bidder in a protracted takeover saga, is due to report its results and confirm the deal next week.
AT FMC, revenue for the fourth quarter decreased 5.2% to $17.9 million from $18.9 million in the fourth quarter of the prior year, while Ebitda decreased to a loss of $7.6 million from earnings of $2.3 million in Q4 2004. Fourth quarter adjusted ebitda, which is exclusive of the corporate transaction costs, increased to earnings of $2.7 million from earnings of $2.3 million a year earlier.
Revenue for the year was down 0.7% to $71.9 million from $72.4 million in the prior year, while ebitda for the year decreased to $0.6 million from $7.6 million in the prior year. Adjusted Ebitda, increased to $11.2 million from $7.6 million in the prior year.
Net loss for the year of $4.2 million, compares to net earnings of $2.5, in the prior year. Adjusted net earnings, which is exclusive of the corporate transaction costs and related income tax, increased to $5 million, from net earnings of $2.5 million, the prior year.