SS&C Technologies, a global provider of financial services software and software-enabled services, today announced results for the quarter ended September 30, 2008.
Revenue on a GAAP basis for the third quarter of 2008 was $71.0 million. This represents a 11.8% increase in revenues over the same period in 2007. Revenue for the first nine months of 2008 was $211.7 million, a 17.8% increase from the same period in 2007. Net income, on a GAAP basis, for the third quarter of 2008, was $4.8 million.
Adjusted operating income (a non-GAAP financial measure defined in note 1 to the attached Consolidated Condensed Financial Information) was $27.2 million for the three months ended September 30, 2008, compared to $23.3 million in the third quarter of the prior year. The adjusted operating income increase was 16.6%. GAAP operating income in the third quarter of 2008 was $15.6 million and includes amortization of $7.5 million and stock based compensation of $2.1 million. Consolidated EBITDA (a non-GAAP financial measure defined in note 2 of the Consolidated Condensed Financial Information) for the third quarter of 2008 was $28.8 million, compared to $25.5 million in the third quarter of 2007. Consolidated EBITDA for the nine months ended September 30, 2008 was $84.9 million compared to $69.7 million for the same period in 2007, a 21.7% increase.
"During the course of 2008, SS&C has fared well, despite the impact economic conditions have had on our customers' businesses. We continue to receive positive feedback about our product suite and service offerings," noted Bill Stone, Chairman and CEO, SS&C Technologies. "We believe if we focus on delivering world-class service to our customers, they will continue to select us as they launch new investment mandates and upgrade their infrastructures."
"Demand for our products and services is most evident in the institutions that are consolidating and driving operating efficiencies. Revenue from our software-enabled services was $43.7 million during the third quarter of 2008, a 17.0% increasease over the third quarter of 2007," added Stone.
Micro Design Services Acquisition
During the fourth quarter, SS&C acquired Micro Design Services (MDS) for $17.8 million in cash and assumed certain liabilities. The company specializes in the design and development of real-time, mission-critical order routing and execution services.
Balance Sheet and Cash Flow
SS&C ended the quarter with $30.3 million cash and $414.6 million in debt for a net debt balance of $384.3 million. We generated net cash from operating activities of $43.1 million for the nine months ended September 30, 2008, which is after paying $10.7 million in income taxes compared to an income tax refund of $1.6 million in 2007. Excluding the effects of income tax, our nine month operating cash increased by 39.5%.
"We will continue to use cash to acquire new businesses, and pay down our debt and deleverage our business. Our consolidated total leverage, as defined in our senior credit facilities is now 3.4 times consolidated EBITDA compared to 6.8 times when we went private," said Stone.
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