SS&C Technologies Holdings (Nasdaq:SSNC), a global provider of software-enabled services and financial services software, today announced its financial results for the fourth quarter and full year ended December 31, 2010.
"2010 was the highest-ever revenue year in SS&C's history and we believe we can continue our success in 2011," said Bill Stone, Chairman and Chief Executive Officer, SS&C Technologies Holdings, Inc.
The Company reported quarterly revenue of $86.1 million for the fourth quarter of 2010, compared to $71.0 million in the fourth quarter of 2009, or an increase of 21.2%. Total annual revenues for the year ended December 31, 2010 were $328.9 million, a 21.4% increase over the $270.9 million in 2009.
GAAP operating income for the fourth quarter of 2010 was $21.0 million, or 24.4% of revenue, up from $19.1 million in 2009's fourth quarter. Operating income for the year ended December 31, 2010 was $79.8 million compared to $67.1 million for 2009.
Net income for the fourth quarter of 2010 was $9.2 million compared to $6.0 million in the fourth quarter of 2009. Net income for the year ended December 31, 2010 was $32.4 million compared to $19.0 million for 2009, a 70.4% increase.
On a fully diluted basis, earnings per share in the fourth quarter of 2010 were $0.12 and represent a 33.3% increase from $0.09 in the fourth quarter of 2009. On a fully diluted basis, earnings per share for the year ended December 31, 2010 were $0.44 and represent a 46.7% increase compared to 2009's $0.30 per diluted share.
Adjusted Revenue, which is adjusted for one-time purchase accounting adjustments (a non-GAAP measure defined in note 1 to the attached Condensed Consolidated Financial Information), was $86.1 million for the fourth quarter of 2010, an increase of $15.0 million or 21.1% from $71.1 million in the same period for 2009.
Adjusted operating income (a non-GAAP financial measure defined in note 2 to the attached Condensed Consolidated Financial Information) in the fourth quarter of 2010 was $34.1 million, or 39.6% of revenue. This represents a 17.6% increase compared to $229.0.0 million and 40.8% of revenue, in the fourth quarter of 2009. Adjusted operating income for the year ended December 31, 2010 was $129.2 million. This represents a 21.3% increase compared to adjusted operating income of $106.5 million for 2009.
Adjusted net income (a non-GAAP measure defined in note 4 to the attached Condensed Consolidated Financial Information) for the fourth quarter of 2010 was $18.2 million compared to $13.3 million in 2009's fourth quarter, a 36.6% increase. Adjusted net income for the year ended December 31, 2010 was $65.6 million and represented a 40.7% increase compared to $46.6 million for 2009.
Adjusted diluted earnings per share (a non-GAAP measure defined in note 4 to the attached Condensed Consolidated Financial Information) in the fourth quarter were $0.24 and represent a 14.3% increase from $0.21 in the fourth quarter of 2009. Adjusted diluted earnings per share for the year ended December 31, 2010 were $0.90 and represented a 23.3% increase compared to $0.73 per share in 2009.
SS&C generated net cash from operating activities of $75.6 million for the year ended December 31, 2010, compared to $59.9 million for the same period in 2009, representing a 26.3% increase. We ended 2010 with $84.8 million of cash on the balance sheet. SS&C's leverage ratio as defined in our credit agreement stood at 1.85 for the year ended 2010, down from 6.8 when we went private in November of 2005.
Annual Run Rate Basis
Annual Run Rate Basis (ARRB) recurring revenue, defined as the addition of maintenance and software-enabled services revenue, was $74.7 million for the fourth quarter of 2010, an annual run-rate of $298.9 million. This represents an increase of 24.5% from $60.0 million and $240.0 million run-rate in the same period in 2009 and an increase of 3.6% from Q3 2010's $72.1 million and $288.6 million run-rate. We believe ARRB of our recurring revenue is a good indicator of visibility.
The Company acquired three businesses in 2010 including Geller Investment Partnership Services (GIPS), the thinklink business from TD Ameritrade, and TimeShareWare. GIPS provides accounting, reporting, performance, tax and investor services for the private equity industry. The thinklink software platform is an internet-deployed trade order management and execution solution with more than fifty institutional sell-side clients. The TimeShareWare acquisition includes software solutions for shared-ownership resorts and has more than 500 product installations around the world including Marriott, Group RCI, Holiday Inn Vacation Club Vacations, and more.
Fourth Quarter Highlights
• Continued Software-Enabled Services Growth: SS&C increased its software-enabled services business to $56.1 million, an increase of 32.2% over $42.5 million in the same period in 2009. Revenues from software-enabled services accounted for 65.2% of total revenue in the fourth quarter of 2010.
• Record Quarter for Revenues: A 20.4% increase in license revenue in the fourth quarter of 2010 over the same period in 2009 combined with a 32.2% increase in software-enabled services led to SS&C's highest-ever quarterly revenue of $86.1 million in the fourth quarter of 2010.
• New York City Office Consolidation: SS&C renegotiated and added to its space in mid-town Manhattan to support growth in fund administration, financial training, and municipal finance businesses, and bringing in Geller Investment Partnership Services private equity fund administration business.
• TimeShareWare Acquisition: SS&C extended its real estate property offering with TimeShareWare's platform technology based on a three-tier Service Oriented Architecture (SOA) to manage all aspects of resort industry management.
• Key Client Wins: SS&C signed key Q4 client deals including a global bank's Corporate Trust and Agency Services for SS&C's Money Market Manager; a U.S.-based financial services organization will use LMS Loan Suite to manage its US$14 billion loan portfolio; a large U.S. independent broker/dealer selected SS&C's Recon, Fiera Capital Management expanded its relationship with SS&C and chose its Global Wealth Platform; a large Canadian bank licensed SS&C MarginMan to process precious metals and foreign exchange, and Solmar Hotels & Resorts selected SS&C's TimeShareWare Professional to manage sales and marketing, lead management, property management, and online rental operations.
• SAS No. 70 and CICA 5970 Audits: In the fourth quarter, SS&C completed 14 independent audits of its selected controls, processes and procedures in compliance with the American Institute of Certified Public Accountants' (AICPA) (SAS) No. 70 for service organizations and the Canadian Institute of Chartered Accountants (CICA) Section 5970. Completion of the SAS 70 designation acknowledges that SS&C's processes and controls have been evaluated and tested by an independent service auditor: PricewaterhouseCoopers. The examinations included its data centers, the Company's SaaS solutions and its full service fund administration and institutional outsourcing services platform.
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