Monday, November 28, 2022

SS&C Technologies Releases Q2 2021 Earnings Results, Announces $1 Billion Common Stock Repurchase Program

By ET Bureau - July 29, 2021 4 mins read

SS&C Technologies Holdings, Inc. , a global provider of investment, financial and healthcare software-enabled services and software, today announced its financial results for the second quarter and full year ended June 30, 2021.

  • Adjusted organic revenue growth for Q2 2021 was 7.2%.
  • SS&C reported record adjusted consolidated EBTIDA of $511.1 million for the quarter, $1,003.0 million for the first six months 2021.
  • Repurchased 2.0 million shares of common stock in Q2 2021 at an average price of $73.44 per share for $143.6 million.
  • Paid down $183.1 million in debt for the first six months in 2021, bringing consolidated net leverage ratio to 3.12x and our secured net leverage ratio to 2.09x consolidated EBTIDA.
  • As of June 28, 2021, SS&C restructured the management of former DST financial services products and services offering to further align and integrate teams.
  • In July, SS&C announced it has entered into a joint venture with healthcare industry leaders to create a new cloud-native, API-driven claims adjudication platform, called DomaniRx. We believe this will shape the future of Pharmacy Benefit Management (PBM) and harmonize the payer and provider management user experience.

“SS&C continues to post strong results. Q2 2021 finished with 10.5% adjusted revenue growth, and 7.2% adjusted organic growth. We saw outperformance from all of our business units this quarter, and expect the momentum to carry into the second half of the year,” says Bill Stone, Chairman and Chief Executive Officer. “We simplified our organizational structure to focus on growth opportunities, and our teams delivered. Since Q1 2020 we have added $400 billion to our alternatives platform. We are also excited about opportunities we will generate from DomaniRx, the healthcare joint venture announced last week. Partnering with world class players will give us access to talent and ideas as we develop the next generation PBM platform.”

Also Read: Top 4 Strategies for Creating a Successful Internal IT Skills Program

Operating Cash Flow

SS&C generated net cash from operating activities of $562.3 million for the six months ended June 30, 2021, compared to $555.7 million for the same period in 2020.  SS&C ended the second quarter with $247.1 million in cash and cash equivalents and $6,325.6 million in gross debt, for a net debt balance of $6,078.5 million.  SS&C’s consolidated net leverage ratio as defined in our credit agreement stood at 3.12 times consolidated EBITDA as of June 30, 2021. SS&C’s net secured leverage ratio stood at 2.09 times consolidated EBITDA as of June 30, 2021.

SS&C Authorizes $1 Billion Common Stock Repurchase Program

SS&C announced that its Board of Directors (“Board”) has authorized a stock repurchase program, which will enable the Company to repurchase up to $1 billion in the aggregate of the Company’s outstanding shares of common stock.  This represents a $250 million increase from the Company’s previous stock repurchase program.  Under the renewed program, SS&C’s proposed repurchases may be made from time to time in one or more transactions on the open market or in privately negotiated purchase and/or through other legally permissible means, depending on market conditions and in accordance with applicable rules and regulations promulgated under the Securities Exchange Act of 1934, as amended. The timing and amount of any shares repurchased will be determined by the Company’s management based on its evaluation of market conditions and other factors. Repurchases may also be made under a Rule 10b5-1 plan, which would permit shares to be repurchased when the Company might otherwise be precluded from doing so under insider trading laws. The repurchase program may be suspended or discontinued at any time. Any repurchased shares will be available for use in connection with the SS&C’s stock plans and for other corporate purposes. The Company’s authority to repurchase shares under the renewed program shall continue until the one year anniversary of the Board’s authorization, unless earlier terminated by the Board.

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