SS&C Technologies (SSNC) Tops Q1 EPS by 7c

SS&C Technologies (NASDAQ: SSNC) reported Q1 EPS of $1.03, $0.07 better than the analyst estimate of $0.96. Revenue for the quarter came in at $1.18 billion versus the consensus estimate of $1.17 billion.

First Quarter Highlights:

• Cash flow provided by operations for Q1 2020 was $147.7 million, up 7.5 percent from $137.4 million in Q1 2019.
• Paid down $2,142.3 million of net debt since our April 2018 acquisition of DST Systems, bringing our net leverage ratio to 3.74 times consolidated EBITDA, and our net secured leverage ratio to 2.67 times consolidated EBITDA.
• In the first quarter, SS&C drew down $246 million of its available capacity under the Revolving Credit Facility as a precautionary measure in order to increase liquidity and preserve financial flexibility in light of current uncertainty resulting from the COVID-19 pandemic.
• Adjusted operating income margins were 37.7 percent of adjusted revenue in Q1 2020 compared to 36.6 percent in Q1 2019.
• Adjusted consolidated EBITDA increased 4.5 percent to $463.5 million in Q1 2020. Adjusted consolidated EBITDA margin was 39.3 percent of adjusted revenue.
• SS&C acquired Captricity, the maker of Vidado data transformation platform on March 24, 2020.
• SS&C announced our plan to acquire Capita's Life Insurance and Pension Servicing business in Ireland on April 21, 2020. We expect this acquisition to close in Q2 2020.
• SS&C today announced our plan to acquire Innovest for a total consideration of $120.0 million. We expect this acquisition to close in Q2 2020.

"The COVID-19 global pandemic has quickly and broadly altered how the world conducts business. The health and safety of our employees and our clients is paramount, and SS&C moved swiftly to ensure our 23,000 employees were informed, protected, and prepared," says Bill Stone, Chairman and CEO of SS&C Technologies. "These times are unprecedented, and they call for focus, innovation and real customer commitments. The transition to working remotely was seamless, in large part due to the long hours worked by our CTO, Anthony Caiafa and his IT and infrastructure team, Blair Williams and his business continuity team, and all of our client service teams dealt with an influx of volume. SS&C's products and services are mission critical, and now more than ever clients depend on our expertise and hardened infrastructure."

For earnings history and earnings-related data on SS&C Technologies (SSNC) click here.

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