Press Release

For Immediate Release

SS&C Technologies Releases Third Quarter 2020 Earnings Results


Q3 2020 GAAP revenue $1,152.8 million, up 0.8%, Fully Diluted GAAP Earnings Per Share $0.60, up 66.7%
Adjusted revenue $1,156.2 million, up 0.5%, Adjusted Diluted Earnings Per Share $1.10, up 18.3%

WINDSOR, CT, October 28, 2020 (PR Newswire) SS&C Technologies Holdings, Inc. (NASDAQ: SSNC), a global provider of investment, financial, and healthcare software-enabled services and software, today announced its financial results for the third quarter ended September 30, 2020.

(in millions, except per share data): Three months ended September 30, 2020 Three months ended September 30, 2019 Change
GAAP Results      
Revenue $1,152.8 $1,144.2 0.8%
Operating income 257.0 227.6 12.9%
Operating income margin 22.3% 19.9% 240 bp
Net income 159.4 95.0 67.8%
Diluted earnings per share $0.60 $0.36 66.7%

Adjusted Non-GAAP Results (defined in Notes 1 – 4 below)
Adjusted revenue $1,156.2 $1,150.8 0.5%
Adjusted operating income 448.8 425.6 5.5%
Adjusted operating income margin 38.8% 37.0% 180 bp
Adjusted net income 294.2 245.3 19.9%
Adjusted diluted earnings per share $1.10 $0.93 18.3%

Third Quarter Highlights:

  • Repurchased 3.1 million shares of common stock in Q3 2020, at an average price of $61.44 per share for $191.9 million.
  • Net leverage ratio and net secured leverage ratio are 58 times and 2.52 times consolidated EBITDA, respectively.
  • Adjusted consolidated EBITDA increased by $20.5 million to $466.3 million in Q3 2020. Adjusted consolidated EBITDA margin was 40.3% of adjusted revenue, an increase from 38.7% of adjusted revenue in Q3 2019.
  • Adjusted operating income margins were 38.8% of adjusted revenue in Q3 2020 compared to 37.0% in Q3 2019.
  • Extended our partnership with St. James Place through 2034.
  • On December 10, SS&C Intralinks is hosting a groundbreaking global virtual summit exploring how COVID-19 and other market realignments are reshaping the alternative investments landscape, and what lies ahead for investors and fund managers.

“Our third quarter results reflect the strength of SS&C’s business model as we weather the global pandemic” says Bill Stone, Chairman and Chief Executive officer. “This pandemic has created urgency within our workforce; our sales teams have focus and energy and this is translating into great pipelines. We secured two large retirement solutions contracts with ICMA-RC and Nationwide. We are very excited about 2021. As we move to normalcy, the health of our employees will be the deciding factor as we embark on our reopening plan.”

Operating Cash Flow

SS&C generated net cash from operating activities of $755.1 million for the nine months ended September 30, 2020, compared to $755.0 million for the same period in 2019.  SS&C ended the third quarter with $184.5 million in cash and cash equivalents and $6,910.7 million in gross debt, for a net debt balance of $6,726.2 million.  SS&C’s consolidated net leverage ratio as defined in our credit agreement stood at 3.58 times consolidated EBITDA as of September 30, 2020. SS&C’s net secured leverage ratio stood at 2.52 times consolidated EBITDA as of September 30, 2020.

SS&C’s COVID-19 Response

SS&C is operating in a global public health crisis.  Covid-19’s impact is devastating to many and nations are being tested from human and economic perspectives.  As long as the duration and scale of the pandemic and economic slowdown remains we expect markets to be volatile. The slowdown in the global economy will take time to recover.

Due to this uncertainty, we have withdrawn our quarterly and 2020 guidance.  We are providing 2020 scenario analysis, based on a number of assumptions, which can be found in our Q3 2020 earnings results slides at investor.ssctech.com.

Non-GAAP Financial Measures

Adjusted revenue, adjusted operating income, adjusted consolidated EBITDA, adjusted net income and adjusted diluted earnings per share are non-GAAP measures.  See the accompanying notes for the reconciliations and definitions for each of these non-GAAP measures and the reasons our management believes these measures provide useful information to investors regarding our financial condition and results of operations.

Earnings Call and Press Release

SS&C’s Q3 2020 earnings call will take place at 5:00 p.m. eastern time today, October 28, 2020.  The call will discuss Q3 2020 results and business outlook.  Interested parties may dial 844-343-4183 (US and Canada) or 647-689-5128 (International), and request the “SS&C Technologies Third Quarter 2020 Conference Call”; conference ID #1834904.  In connection with the earnings call, a presentation will be available on SS&C’s website at http://investor.ssctech.com/results.cfm. A replay will be available after 10:00 p.m. eastern time on October 28, 2020, until midnight on November 4, 2020.  The replay dial-in number is 800-585-8367 or 416-621-4642; access code #1834904.  The call will also be available for replay on SS&C’s website after October 28, 2020; access: http://investor.ssctech.com/results.cfm.

Certain information contained in this press release relating to, among other things, the Company’s scenario analysis, constitute forward-looking statements for purposes of the safe harbor provisions under the Private Securities Litigation Reform Act of 1995.  Forward-looking statements include statements concerning plans, objectives, goals, strategies, expectations, intentions, projections, developments, future events, performance, underlying assumptions, and other statements that are other than statements of historical facts.  Without limiting the foregoing, the words “believes”, “anticipates”, “plans”, “expects”, “estimates”, “projects”, “forecasts”, “may”, “assume”, “intend”, “will”, “continue”, “opportunity”, “predict”, “potential”, “future”, “guarantee”, “likely”, “target”, “indicate”, “would”, “could” and “should” and similar expressions are intended to identify forward-looking statements, although not all forward-looking statements are accompanied by such words.  Such statements reflect management’s best judgment based on factors currently known but are subject to risks and uncertainties, which could cause actual results to differ materially from those anticipated.  Such risks and uncertainties include, but are not limited to, the state of the economy and the financial services industry and other industries in which the Company’s clients operate, the Company’s ability to realize anticipated benefits from its acquisitions, including DST Systems, Inc.,  the effect of customer consolidation on demand for the Company’s products and services, the increasing focus of the Company’s business on the hedge fund industry, the variability of revenue as a result of activity in the securities markets, the ability to retain and attract clients, fluctuations in customer demand for the Company’s products and services, the intensity of competition with respect to the Company’s products and services, the exposure to litigation and other claims, terrorist activities and other catastrophic events, disruptions, attacks or failures affecting the Company’s software-enabled services, risks associated with the Company’s foreign operations, privacy concerns relating to the collection and storage of personal information, evolving regulations and increased scrutiny from regulators,  the Company’s ability to protect intellectual property assets and litigation regarding intellectual property rights, delays in product development, investment decisions concerning cash balances, regulatory and tax risks, risks associated with the Company’s joint ventures, changes in accounting standards, risks related to the Company’s substantial indebtedness, the market price of the Company’s stock prevailing from time to time, and the risks discussed in the “Risk Factors” section of the Company’s most recent Annual Report on Form 10-K and Quarterly Report on Form 10-Q, which are on file with the Securities and Exchange Commission and can also be accessed on our website.  Forward-looking statements speak only as of the date on which they are made and, except to the extent required by applicable securities laws, we undertake no obligation to update or revise any forward-looking statements.

About SS&C Technologies

SS&C is a global provider of services and software for the financial services and healthcare industries. Founded in 1986, SS&C is headquartered in Windsor, Connecticut, and has offices around the world. Some 18,000 financial services and healthcare organizations, from the world's largest companies to small and mid-market firms, rely on SS&C for expertise, scale, and technology.

Click here to view the financial earnings statement in PDF format.


Contact(s):

  Patrick Pedonti
  Chief Financial Officer
  Tel: +1 860-298-4738

  Justine Stone
  Investor Relations
  Tel: +1 212-367-4705
  E-mail: InvestorRelations@sscinc.com