SS&C Technologies (SSNC) Tops Q4 EPS by 11c, Revenues Beat; Offers Q1 & FY20 Revenue Outlook

SS&C Technologies (NASDAQ: SSNC) reported Q4 EPS of $1.08, $0.11 better than the analyst estimate of $0.97. Revenue for the quarter came in at $1.21 billion versus the consensus estimate of $1.17 billion.

Fourth Quarter and Full Year 2019 Highlights:

• Cash flow provided by operations for Q4 2019 was $573.3 million, up 80.5 percent from $317.7 million in Q4 2018.
• Cash flow provided by operations was $1,328.3 million for the twelve months ended December 31, 2019 a 107.5 percent increase from $640.1 million for the prior twelve months.
• Paid down $1,123.8 million of net debt in the twelve months ended December 31, 2019, and paid down $2,046.6 million of net debt since our April 2018 acquisition of DST Systems, bringing our net leverage ratio to 3.77 times consolidated EBITDA, and our net secured leverage ratio to 2.70 times consolidated EBITDA.
• Adjusted operating income margins were 38.8 percent of adjusted revenue in Q4 2019 compared to 37.2 percent in Q4 2018.
• Adjusted consolidated EBITDA increased 10.3 percent to $490.5 million in Q4 2019. Adjusted consolidated EBITDA margin was 40.5 percent of adjusted revenue.
• In Q4 2019, SS&C increased its common stock dividend to $0.125 per quarter, a 25.0 percent increase.
• SS&C completed the Algorithmics acquisition on December 2, 2019.

"SS&C finished 2019 strong, with fourth quarter record adjusted revenue of $1,212.2 million, up 7.0 percent, and record adjusted diluted earnings per share of $1.08, up 13.7 percent. Operating cash flow was up 107.5 percent in 2019, and we reduced our leverage ratio to 3.77x," says Bill Stone, Chairman and Chief Executive Officer. "Going into a new decade, we are confident in our financial strength and the resiliency of SS&C's business model. The financial services and healthcare markets we serve are complex and demanding. The investments we make in expertise, talent, innovative technology, and value-add services have and will pay dividends well into the future."

GUIDANCE:

SS&C Technologies sees Q1 2020 revenue of $1.15-1.19 billion, versus the consensus of $1.17 billion.

SS&C Technologies sees FY2020 revenue of $4.692-4.852 billion, versus the consensus of $4.78 billion.

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

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