SS&C Technologies : Q4 2022 Earnings Slides

SS&C Technologies (NASDAQ:SSNC)

Q4 2022 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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Q4 2022 Highlights

• SS&C generated net cash from operating activities of $369.7 million for the three months ended December 31, 2022, and $1,134.3 million for the twelve months ended December 31, 2022.
• Q4 2022 we bought back 1.8 million shares for $90.7 million, at an average price of $50.14 per share.
• We paid down $166.2 million in debt in Q4 2022, bringing our net leverage ratio to 3.40 times consolidated EBITDA attributable to SS&C.
• SS&C reported GAAP net income attributable to SS&C of $207.5 million and adjusted consolidated EBITDA attributable to SS&C of $518.6 million for Q4 2022.
• GAAP net income margin for Q4 2022 was 15.5%. Adjusted consolidated EBITDA margin for Q4 2022 was 38.7%, a 70 basis point increase from Q3 2022.
• Completed the acquisition of Complete Financial Ops, Inc., expanding our fund administration capabilities in servicing venture capital and family office funds.

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Q4 2022 financial highlights

Metric	Q4 2022	Q4 2021	$ +/-	% +/-
Adjusted Revenues ($M)	$1,339.1	$1,296.2	$42.9	3.3%
Adjusted Operating Income attributable to SS&C ($M)	$502.1	$507.5	($5.4)	(1.1%)
Adjusted Consolidated EBITDA attributable to SS&C ($M)	$518.6	$522.9	($4.3)	(0.8%)
Adjusted Consolidated EBITDA margin attributable to SS&C	38.7%	40.3%	(160 bps)	-
Adjusted Diluted Earnings Per Share attributable to SS&C	$1.16	$1.28	($0.12)	(9.4%)
Operating Cash Flow for the twelve months ended	$1,134.3	$1,429.0	($294.7)	(20.6%)
December 31st ($M)
Note: See appendix for reconciliation of non-GAAP financial measures

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Debt review and capital allocation

• Operating cash flow was $1,134.3 million for the twelve months ended December 31, 2022
• Debt
• • Net leverage ratio is 3.40x, secured net leverage ratio is 2.40x LTM consolidated EBITDA attributable to SS&C of $2,010.3 million.
  • Paid down $166.2 million in debt in Q4 2022.
• Shareholder Returns
• • Treasury stock buybacks for Q4 2022 were 1.8 million shares for $90.7 million, at an average price of $50.14 per share. For full year 2022, treasury stock buybacks were 7.8 million shares for $476.1 million at an average price of $61.01 per share.
  • Paid $201.3 million in common stock dividends for the twelve months ended December 31, 2022.
• Acquisitions
• • Completed the acquisition of Complete Financial Ops, Inc., expanding our fund administration capabilities in servicing venture capital and family office funds.

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