Ss&c Technologies Holdings, Inc. · NASDAQ:SSNC
Ss&c Technologies — Q3 2022 Earnings Presentation
22 slides from Ss&c Technologies's earnings presentation, Oct 27, 2022
Slide 1: SS&C Technologies Q3 2022 Earnings Results
SS&C Technologies (NASDAQ:SSNC) Q3 2022 Earnings Results
Slide 2: Safe Harbor Statement
Safe Harbor Statement This presentation contains forward-looking statements, as defined by federal and state securities laws, which are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Forward-looking statements include statements concerning plans,
Slide 3: Q3 2022 Highlights
Q3 2022 total company revenue growth was 7.5% on a constant currency basis. Q3 2022 organic growth was 1.6%, with continued strong performance from our Advent, I&IM, Private Markets and Retirement business units. Q3 2022 financial services organic growth, excluding the healthcare business, was 3.3%,
Slide 4: Advancing toward our Goals
Advancing toward our Goals Operating in a weaker economic backdrop, SS&C is committed to driving revenue growth and exiting 2022 with margins consistent with historical averages. Pricing Pricing review, automatic escalators incorporated into more contracts In-process conversations with customers abo
Slide 5: Q3 2022 financial highlights
Q3 2022 financial highlights Metric Q3 2022 Q3 2021 $ +/- % +/- Adjusted Revenues ($M) $1,322.0 $1,266.3 $55.7 4.4% Adjusted Operating Income attributable to SS&C ($M) $486.1 $524.1 ($38.0) (7.3%) Adjusted Consolidated EBITDA attributable to SS&C ($M) $501.7 $538.9 ($37.2) (6.9%) Adjusted Consolidat
Slide 6: Debt review and capital allocation
Operating cash flow was $764.6 million for the nine months ended September 30, 2022 Debt Net leverage ratio is 3.51x, secured net leverage ratio is 2.52x LTM consolidated EBITDA attributable to SS&C of $2,006.8 million. Paid down $55.6 million in debt in Q3 2022. We are committed to reducing our deb
Slide 7: Consistent Leverage Reduction
Consistent Leverage Reduction Our covenant requirement is 6.25x net secured leverage as per our debt agreement Plan to reduce leverage to 3.0x
Slide 8: Organic Growth Calculations
Organic Growth Calculations 2022 Q1 2022 Q2 2022 Q3 2022 Total Adjusted Revenues ($M) 1,296.2 1,330.0 1,322.0 Fx ($M) 8.7 24.0 32.7 Acquisitions ($M) (17.4) (65.6) (68.2) Organic Revenues ($M) 1,287.5 1,288.4 1,286.5 Adjustments ($M) 0.9 0.2 0.1 Adjusted Organic Revenues ($M) 1,288.4 1,288.6 1,286.6
Slide 9: Adjusted Organic Growth by Business
Adjusted Organic Growth by Business Business 2021 Revenue Base Q2 2022 Growth Q3 Revenue Growth Alternatives $1.1 B 8.8% 4.0% Private markets grew 18% Advent $540 M 8.2% 7.8% DST Financial Services $1.8 B (3.5%) (2.2%) I&IM $280 M 4.9% 15.7% Gaining traction with Aloha and Singularity Healthcare $37
Slide 10: Adjusted revenue and margins
Adjusted revenue and margins Adjusted revenue ($M) Adjusted consolidated EBITDA margin (%) Note: See appendix for reconciliation of non-GAAP financial measures
Slide 11: Revenue retention rates
Quarterly retention rate is based on a rolling prior twelve months. Yearly retention is the average of four quarters. Acquisitions are not included in retention rate calculation until one year post-acquisition. Revenue retention rates
Slide 12: Adjusted net income and adjusted diluted EPS attributable to SS&C
Adjusted net income and adjusted diluted EPS attributable to SS&C Adjusted net income attributable to SS&C ($M) Adjusted diluted EPS attributable to SS&C Note: See appendix for reconciliation of non-GAAP financial measures
Slide 13: Alternative Assets under Administration ($B)
Alternative Assets under Administration ($B)
Slide 14: Guidance
Guidance SS&C does not provide reconciliations of guidance for Adjusted Revenues and Adjusted Net Income to comparable GAAP measures, in reliance on the unreasonable efforts exception provided under Item 10(e)(1)(i)(B) of Regulation S-K. SS&C is unable, without unreasonable efforts, to forecast cert
Slide 15: Appendix: Disclosures relating to non-GAAP financial measures
Appendix Disclosures relating to non-GAAP financial measures
Slide 16: Reconciliation of revenues to adjusted revenues
Reconciliation of revenues to adjusted revenues Adjusted revenues represents revenues adjusted to include a) amounts that would have been recognized if deferred revenue were not adjusted to fair value at the date of acquisition and b) amounts that would have been recognized if not for adjustments to
Slide 17: Reconciliation of operating income to adjusted operating income
Reconciliation of operating income to adjusted operating income Adjusted operating income represents operating income adjusted for amortization of intangible assets, stock-based compensation, purchase accounting adjustments for deferred revenue and related costs, ASC 606 adoption impact and other ex
Slide 18: Reconciliation of net income to EBITDA and adjusted consolidated EBITDA
Reconciliation of net income to EBITDA, consolidated EBITDA and adjusted consolidated EBITDA EBITDA represents net income before interest expense, income taxes, depreciation and amortization. Consolidated EBITDA, defined under our Credit Agreement entered into in April 2018, as amended, is used in c
Slide 19: Reconciliation of net income to EBITDA and adjusted consolidated EBITDA
Reconciliation of net income to EBITDA, consolidated EBITDA and adjusted consolidated EBITDA Acquired EBITDA reflects the EBITDA impact of significant businesses that were acquired during the period as if the acquisition occurred at the beginning of the period, as well as cost savings enacted in con
Slide 20: Reconciliation of net income to adjusted net income and adjusted EPS
Reconciliation of net income to adjusted net income attributable to SS&C and diluted earnings per share to adjusted diluted earnings per share attributable to SS&C Adjusted net income and adjusted diluted earnings per share attributable to SS&C represent net income and earnings per share attributabl
Slide 21: Reconciliation of net income to adjusted net income and diluted EPS
Reconciliation of net income to adjusted net income and diluted earnings per share to adjusted diluted earnings per share Purchase accounting adjustments include (a) an adjustment to increase revenues by the amount that would have been recognized if deferred revenue were not adjusted to fair value a
Slide 22: Smart People, Superb Technology
SMART PEOPLE _ SUPERB TECHNOLOGY
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