SS&C Technologies Holdings Inc. Banks a Solid Quarter

By Steve

Credit: SS&C Technologies Holdings,

SS&C Technologies Holding Inc. reported third-quarter results Tuesday after the market close, and shares were little changed as a result. But don't take that as an indication that SS&C didn't perform well.

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Let's have a deeper look at what SS&C accomplished during the quarter:

SS&C Technologies results: The raw numbers

Data Source: SS&C Technologies Holdings,

What happened with SS&C Technologiesthis quarter?

  • Adjusted results exceeded SS&C's guidance for non-GAAP revenue of $305 million to $311 million, and non-GAAP net income of $61.9 million to $64.7 million.Analysts' consensus estimates called for adjusted revenue of $308.6 million, and adjusted earnings of $0.62 per share.
  • Adjusted consolidated EBITDA rose 59.3% to $130.8 million.
  • GAAP revenue -- which excludes $30.5 million in purchase accounting adjustments to deferred revenue from its now-closedacquisition of Advent-- rose 45.8% year over year to $280.9 million.
  • That includes a 47.3% increase in recurring subscription revenue to $260.8 million, and a 28.9% increase in non-recurring revenue to $20.1 million.
  • GAAP net loss was $34.6 million, or $0.36 per share, including items such as stock-based compensation, acquisition costs, and losses on debt extinguishment
  • Cash flow from operations was $19.9 million in Q3, and $120.6 million for the first nine months of 2015, compared with $164.3 million in the first nine months of 2014. This decrease was primarily due to $66.4 million in financing and acquisition costs related to Advent and other pending acquisitions.
  • The company completed the acquisition of Advent Software in early July.
  • It acquired Primatics Financial for $122 million in cash, expanding loan accounting and reporting technology and services.
  • It acquired Varden Technologies for an undisclosed sum, expanding client and advisor communication solutions for investment firms.
  • It also acquired Citigroup's Alternative Investor Services business for $425 million, including its Hedge Fund and Private Equity Fund Services.
  • Organic growth came in just under 3%.
  • Q3 ended with $503.8 million in cash and $2.9 million in gross debt.

What management had to saySS&C Technologies CEO Bill Stone stated:

Looking forwardFor the current quarter, SS&C expects adjusted revenue of $312 million to $320 million (up around 63.7% at the midpoint), and adjusted net income of $68.4 million to $72.2 million. On a per-share basis, adjusted net income in Q4 should be roughly $0.67 to $0.71, up from $0.62 per share in the same year-ago period.

Finally, for the full year 2015, adjusted revenue should be $1.0426 billion to $1.0506 billion, with adjusted net income of $248.4 million to $252.2 million. Adjusted net income per share for fiscal 2015 should be in the range of $2.60 to $2.64. By comparison, analysts' consensus called for full-year adjusted revenue and earnings of $1.05 billion and $2.57 per share, respectively.

In the end, there were no big surprises from SS&C Technologies this quarter, but instead a solid, slightly better-than-expected performance from a company making measured progress toward its strategic goals. As SS&C selectively continues its habit of making complementary acquisitions, while at the same time maintaining steady organic growth, I suspect its share price will follow suit over the long term.

The article SS&C Technologies Holdings Inc. Banks a Solid Quarter originally appeared on

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