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SS&C Technologies Holdings 8-K Report, Financial Results (Feb 13, 2024)

Reports
Earnings & Results·Exhibits & Filings
Filing Date
Filed February 13, 2024
Period End
February 13, 2024
Security
SSNC
In the record · 2016–202610-K1210-Q328-K107

SSNC filed 12 annual reports (10-K), 32 quarterly reports (10-Q) and 107 current reports (8-K) between 2016 and 2026.

  1. Material agreement8-K · Mar ’17Mar ’17
  2. Leadership change8-K · Aug ’19Aug ’19
  3. Deal closed8-K · Mar ’22Mar ’22
  4. Leadership change8-K · May ’26May ’26

01—Abstract

Summary

Summary of the 8-K filed February 13, 2024. Cited figures are marked; the original filing is the authoritative source.

SS&C Technologies Holdings, Inc. reported financial results for the fourth quarter and full year ended December 31, 2023, as furnished in Exhibit 99.1 (press release) and Exhibit 99.2 (earnings presentation) to this Form 8-K.

For Q4 2023, GAAP revenue was $1,411.6 milliona, up 5.5% from $1,338.3 million, while fully diluted GAAP earnings per share were $0.77, down 4.9%. Adjusted revenue was a record $1,412.3 million, up 5.5%, and adjusted diluted earnings per share were $1.26, up 8.6%. For the full year 2023, GAAP revenue was $5,502.8 million, up 4.2%, and GAAP net income attributable to SS&C was $607.1 million, down 6.6%.

For the twelve months ended December 31, 2023, net cash from operating activities was $1,215.1 millionb, up 7.1%. During Q4 2023 the company repurchased 2.4 million shares for $130.7 million and paid down $150.2 million of debt. The consolidated net leverage ratio stood at 3.05 times consolidated EBITDA attributable to SS&C, and the net secured leverage ratio was 2.10 times.

Management provided 2024 guidance, including full-year adjusted revenue of $5,667.7 to $5,867.7 millionc, adjusted diluted EPS of $4.85 to $5.15, and cash from operating activities of $1,292.0 to $1,392.0 million. Q1 2024 adjusted diluted EPS guidance was $1.19 to $1.25. The company stated that it does not reconcile adjusted revenue and adjusted net income guidance to GAAP measures and that the unavailable information could significantly affect GAAP results.

02—Key points

Key Highlights

  1. Q4 2023 GAAP revenue of $1,411.6 million rose 5.5%; adjusted revenue reached a record $1,412.3 million, also up 5.5%.
  2. Q4 2023 GAAP diluted EPS was $0.77, down 4.9%, while adjusted diluted EPS was $1.26, up 8.6%.
  3. Full-year 2023 GAAP revenue was $5,502.8 million, up 4.2%, and GAAP operating income was $1,208.9 million, up 5.8%.
  4. Net cash from operating activities for 2023 was $1,215.1 million, up 7.1% from 2022.
  5. Q4 2023 share repurchases totaled 2.4 million shares for $130.7 million at an average price of $54.74, and $150.2 million of debt was repaid in the quarter.
  6. Consolidated net leverage ratio was 3.05 times consolidated EBITDA attributable to SS&C at December 31, 2023.
  7. 2024 guidance calls for adjusted revenue of $5,667.7 to $5,867.7 million and adjusted diluted EPS of $4.85 to $5.15.

03—Questions

Frequently Asked Questions

  1. How did SS&C perform in the fourth quarter of 2023?

    GAAP revenue was $1,411.6 million, up 5.5%, and adjusted revenue was a record $1,412.3 million, also up 5.5%. GAAP operating income was $334.2 million, up 10.9%, and GAAP net income attributable to SS&C was $194.4 million, down 6.3%. Adjusted consolidated EBITDA attributable to SS&C was $562.5 million, up 8.5%.

  2. What is the company's 2024 outlook?

    For FY 2024, SS&C guided to adjusted revenue of $5,667.7 to $5,867.7 million, adjusted net income attributable to SS&C of $1,221.4 to $1,321.4 million, adjusted diluted EPS of $4.85 to $5.15, and cash from operating activities of $1,292.0 to $1,392.0 million. For Q1 2024, adjusted diluted EPS guidance is $1.19 to $1.25.

  3. How is SS&C managing its debt and capital returns?

    In Q4 2023 the company paid down $150.2 million of debt and reported a consolidated net leverage ratio of 3.05 times, with a net secured leverage ratio of 2.10 times. It also repurchased 2.4 million shares for $130.7 million. Dividends paid on common stock totaled $220.9 million for the twelve months ended December 31, 2023.

  4. Why does the company emphasize non-GAAP measures?

    The company says adjusted revenue, adjusted operating income, adjusted consolidated EBITDA, adjusted net income and adjusted diluted EPS exclude items such as amortization of intangible assets, stock-based compensation, purchase accounting adjustments and other items. Management considers these measures useful for evaluating operational performance, and they are not recognized GAAP terms.

  5. Why are GAAP guidance reconciliations not provided?

    SS&C relies on the unreasonable efforts exception under Item 10(e)(1)(i)(B) of Regulation S-K. It says it cannot forecast without unreasonable efforts items such as acquisition transactions and integration, foreign exchange rate changes, and other non-cash adjustments, and these could have a significant impact on Q1 2024 and FY 2024 GAAP results.

04—Continue

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