SS&C Technologies, Inc., a global provider of financial services software and outsourcing solutions, today announced record revenue results for the first quarter ended March 31, 2006.
Reported revenue on a GAAP basis for the first quarter of 2006 was $48.4 million. Included in reported revenue for the first quarter is a $1.4 million reduction in revenue caused by purchase accounting adjustments to reflect November 23, 2005 deferred revenue at its estimated fair value. Excluding the purchase accounting adjustment, revenue for the first quarter of 2006 was $49.8 million, an 82% increase from the first quarter of 2005. Net loss, on a GAAP basis, for the first quarter of 2006, was $0.2 million.
Adjusted operating income was $18.0 million for the three months ended March 31, 2006, compared to $9.9 million in the first quarter of the prior year. The operating income increase is 82%. GAAP operating income in the first quarter of 2006 was $11.4 million and includes amortization of $5.5 million and deferred revenue adjustment and other purchase accounting items of $1.1 million. GAAP operating income in the first quarter of 2005 was $9.2 million and includes amortization of $0.8 million.
Consolidated EBITDA (as defined in note 2 of the Consolidated, Condensed Financial Information) for the first quarter of 2006 was $20.0 million, compared to $19.3 million in the first quarter of 2005.
Bill Stone, SS&C's Chairman and CEO, commenting on recent results said, "We continue to stay focused on our business and execute on our strategy. As a result, we had a strong first quarter with record revenues and adjusted operating income. Our recurring revenues (defined as maintenance and outsourcing revenues) increased to $38.0 million in the first quarter, an increase of $17.7 million, or 87% from Q1 2005 and represented 79% of total revenues. As our recurring revenues have increased, we have continued to focus on controlling expenses and driving operating margins; adjusted operating income was 37% of revenues in the first quarter compared with 36% in the first quarter of 2005, a 100 basis point improvement."
"This quarter, we reached a new high in outsourcing revenues at $24.9 million, a 139% increase over Q1 2005," said Stone. "Outsourcing revenues are growing organically and through acquisitions, as banks, asset managers, funds of funds and hedge funds continue to recognize the benefits of outsourcing their back-offices. Growth came in several forms, including FMC's outsourcing business, fund administration services we provide to hedge funds, and treasury operations provided by our TradeThru product."
Balance Sheet and Acquisitions
"We ended the quarter with $13.2 million cash on our balance sheet after reducing our debt position by $5.3 million and spending $11.9 million, net of cash acquired, for Cogent Management, Inc.," said Stone. "SS&C has remained committed to its core operating philosophy of generating operating cash and using this cash to deleverage the business or add to the business through "tuck-in" acquisitions. We continue to believe this is a very strong business model which will reward all of our stakeholders."Download the document now 18.5 kb (Adobe Acrobat Document)