SS&C Technologies : Q2 2021 Earnings Slides

SS&C Technologies (NASDAQ:SSNC)

Q2 2021 Earnings Results

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Forward-looking statements are only predictions that relate to future events or our future performance and are subject to known and unknown risks, uncertainties, assumptions, and other factors that may cause actual results, outcomes, levels of activity, performance, developments, or achievements to be materially different from any future results, outcomes, levels of activity, performance, developments, or achievements expressed, anticipated, or implied by these forward-looking statements. Other factors that could affect actual results, outcomes, levels of activity, performance, developments or achievements can be found under the heading "Risk Factors" in SS&C Technologies Holdings, Inc.'s most recent Annual Report on Form 10-K and Quarterly Report on Form 10-Q. As a result, we cannot guarantee future results, outcomes, levels of activity, performance, developments, or achievements, and there can be no assurance that our expectations, intentions, anticipations, beliefs, or projections will result or be achieved or accomplished.

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Q2 2021 Highlights

• 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.
• On July 28th, the board authorized a common stock repurchase program of up to $1.0 billion, effective for one year.

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Q2 2021 financial highlights

Metric	Q2 2021	Q2 2020	$ +/-	% +/-
Adjusted Revenues ($M)	$1,261.0	$1,140.8	$120.2	10.5%
Adjusted Operating Income ($M)	$495.8	$430.1	$65.7	15.3%
Adjusted Consolidated EBITDA ($M)	$511.1	$448.4	$62.7	14.0%
Adjusted Net Income ($M)	$331.6	$276.1	$55.5	20.1%
Adjusted Diluted Earnings Per Share	$1.24	$1.04	$0.20	19.2%
Operating Cash Flow for six months ended	$562.3	$555.7	$6.6	1.2%
June 30 ($M)

Note: See appendix for reconciliation of non-GAAP financial measures

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Debt review and capital allocation

• Operating cash flow was $562.3 M for the six months ended June 30, 2021
• • Paid $144.2 M in cash taxes through Q2 2021 vs. $34.7 M through Q2 2020
• Debt
• • Paid down $183.1 M in debt for the first six months in 2021
  • Net leverage ratio is 3.12x LTM consolidated EBITDA, secured net leverage ratio is 2.09x LTM consolidated EBITDA of $1,947.9 M
• Shareholder Returns
• • Repurchased 2.0 million shares of common stock in Q2 2021 at an average price of $73.44 per share for $143.6 million.
  • Quarterly dividend payout of $0.16 per share

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