01—Abstract
Summary
Summary of the 10-Q filed October 30, 2024. Cited figures are marked; the original filing is the authoritative source.
SS&C Technologies Holdings, Inc. reported third-quarter 2024 total revenues of $1,465.8 milliona, up from $1,365.9 million a year earlier, with net income attributable to SS&C common stockholders of $164.4 million compared with $156.0 million.
For the nine months ended September 30, 2024, total revenues were $4,352.3 millionb versus $4,091.2 million, and net income attributable to common stockholders was $512.3 million versus $412.7 million. Management attributes the three-month revenue increase primarily to organic growth of $87.5 million, led by the SS&C GlobeOp fund administration, Global Investor and Distribution Solutions, Wealth and Investment Technologies and virtual data room businesses, with acquisitions and favorable currency translation contributing the rest. The company's balance sheet grew substantially during the period, with total assets of $18,438.4 million at September 30, 2024, and total debt of $7,202.7 million, up from $6,720.0 million at December 31, 2023.
Debt rose after a May 2024 refinancing that included $3,935.0 millionc of incremental term B-8 loans and $750.0 million of 6.5% senior notes due 2032, and a September 2024 incremental term A-9 borrowing of $800.0 million used partly to finance the $671 million cash acquisition of Battea-Class Action Services, LLC. Operating cash flow for the nine months was $902.0 million, while cash paid for acquisitions was $646.9 million and $369.3 million was spent on share repurchases.
Management stated it was in compliance with all financial and non-financial covenants as of September 30, 2024, and reported a 1.74x consolidated net secured leverage ratio against a 6.25x covenant requirement. The company also disclosed that it has been exploring a sale of certain real estate assets with a carrying value of approximately $49 milliond, with an estimated loss of approximately $35 million if held-for-sale criteria were met.
02—Key points
Key Highlights
- Third-quarter total revenues rose to $1,465.8 million from $1,365.9 million, with organic revenue growth of $87.5 million.
- Net income attributable to SS&C common stockholders was $164.4 million for the quarter, versus $156.0 million a year earlier; diluted EPS was $0.65 versus $0.61.
- Nine-month operating income increased to $985.6 million from $874.7 million, and net cash from operating activities was $902.0 million versus $826.7 million.
- Total debt increased to $7,202.7 million at September 30, 2024, driven by the May 2024 refinancing and the $800.0 million Term A-9 borrowing tied to the Battea acquisition.
- The Battea-Class Action Services, LLC acquisition, closed September 27, 2024 for approximately $671 million in cash, contributed $4.1 million of revenue in the period from acquisition date.
- The Board authorized a new $1 billion stock repurchase program in July 2024; the company repurchased $369.3 million of shares in the nine months and paid $182.6 million in dividends.
- Management reported a 1.74x consolidated net secured leverage ratio against a 6.25x covenant maximum and stated compliance with all covenants as of September 30, 2024.
03—One dollar
Follow one dollar
Of each $1.00 of revenue in Q3 FY2024, SS&C Technologies Holdings kept $0.11.
- Revenue$1.47B100.0%
- Cost of revenue−$761.6M52.0%
- Gross profit$704.2M48.0%
- Operating costs−$379.1M25.9%
- Operating income$325.1M22.2%
- Interest, other & tax−$160.7M11.0%
- Net income$164.4M11.2%
04—Financials
Financial Highlights
Figures from 10-QQ3 FY2024filed October 30, 2024Financial Statements
Q3 FY2024 against Q3 FY2023
| Line item | Q3 FY2024Q3 FY2023 | Change |
|---|---|---|
| Revenue | $1.47B$1.37B | +7.3% |
| Cost of Revenue | $761.60M$711.50M | +7.0% |
| Gross Profit | $704.20M$654.40M | +7.6% |
| R&D Expenses | $131.30M$117.70M | +11.6% |
| Operating Expenses | $379.10M$348.00M | +8.9% |
| Operating Income | $325.10M$306.40M | +6.1% |
| Interest Expense | $109.60M$120.60M | −9.1% |
| Net Income | $164.40M$156.00M | +5.4% |
| EPS (Basic) | $0.67$0.63 | +6.3% |
| EPS (Diluted) | $0.65$0.61 | +6.6% |
| Shares Outstanding (Basic) | 246.10M247.50M | −0.6% |
| Shares Outstanding (Diluted) | 254.10M253.90M | +0.1% |
05—Questions
Frequently Asked Questions
How did SS&C's revenue and profitability trend in the third quarter of 2024?
Total revenues were $1,465.8 million, up from $1,365.9 million, and operating income was $325.1 million compared with $306.4 million. Net income attributable to SS&C common stockholders was $164.4 million, up from $156.0 million, and basic EPS was $0.67 versus $0.63. The filing attributes the revenue increase primarily to organic growth of $87.5 million.
What drove the increase in the company's debt during 2024?
Total debt rose to $7,202.7 million from $6,720.0 million at December 31, 2023. The May 2024 refinancing added $3,935.0 million of term B-8 loans and $750.0 million of 6.5% senior notes due 2032, and the September 2024 incremental joinder added $800.0 million of term A-9 loans. Proceeds were used to repay existing term loans and partly finance the Battea acquisition.
What acquisition did SS&C complete in 2024, and what did it cost?
SS&C acquired all outstanding stock of Battea-Class Action Services, LLC on September 27, 2024 for approximately $671 million in cash plus transaction costs. The filing describes Battea as a provider of securities class action claims and settlement recovery services, and reports goodwill of $323.5 million from the preliminary purchase price allocation.
How much did SS&C return to shareholders in the first nine months of 2024?
The company repurchased common stock for $369.3 million and paid $182.6 million in dividends on common stock during the nine months ended September 30, 2024. In July 2024 the Board authorized a new program allowing repurchases of up to $1 billion of common stock.
Is SS&C in compliance with its debt covenants?
Yes. The filing states that as of September 30, 2024 the company was in compliance with all financial and non-financial covenants. Its consolidated net secured leverage ratio was 1.74x against a maximum covenant requirement of 6.25x for the Revolving Credit Facility.
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