SS&C Technologies, a global provider of financial services software and software-enabled services, today announced results for the quarter ended September 30, 2009.
Revenue on a GAAP basis for the third quarter of 2009 was $68.9 million. This represents a decrease of $2.1 million, or 3.0%, from revenues over the same period in 2008. Revenue for the first nine months of 2009 was $199.9 million, a 5.6% decrease from the same period in 2008. Net income, on a GAAP basis, for the third quarter of 2009 and nine months ended September 30, 2009, was $5.6 million and $13.0 million, respectively.
Adjusted operating income (a non-GAAP financial measure defined in note 1 to the attached Consolidated Condensed Financial Information) was $27.1 million for the three months ended September 30, 2009, compared to $27.2 million in the third quarter of the prior year a decrease of 0.3%. Adjusted operating income was $75.3 million for the nine months ended September 30, 2009 compared to $78.6 million in 2008, a decrease of 4.2%.
Consolidated EBITDA (a non-GAAP financial measure defined in note 2 of the Consolidated Condensed Financial Information) for the third quarter of 2009 was $28.7 million, compared to $28.8 million in the third quarter of 2008, a decrease of 0.6%. Consolidated EBITDA for the nine months ended September 30, 2009 was $83.0 million compared to $84.9 million for the same period in 2008, a 2.2% decrease.
Revenues/Operating Income
"Revenues continued to stabilize, growing from $67.3 million in the second quarter to $68.9 million in the third quarter of 2009," said Bill Stone, Chairman and CEO, SS&C Technologies. "We continue to focus on our operating margins, and our adjusted operating income has increased to 39.3% of revenues for the three months ended September 30, 2009 compared to 38.3% for the same period in 2008."
Business Environment
"In Q3 and year to date, we continued to see demand despite the challenging financial market conditions," said Stone. "Regulators and investors are driving demand for more sophisticated reporting and increased transparency. We are confident that our breadth and depth of solutions combined with our deep domain expertise can help our clients in these increasingly complex markets."
Balance Sheet and Cash Flow
SS&C ended the quarter with $52.5 million in cash and cash equivalents, and $402.6 million in debt. We generated net cash from operating activities of $45.0 million for the nine months ended September 30, 2009, compared to $43.1 million for the same period in 2008.
"We will continue to use cash to acquire new businesses, pay down debt and deleverage our business. Our consolidated total leverage, as defined in our senior credit facilities, is now 3.3 times consolidated EBITDA compared to 6.8 times when we went private," said Stone.