Technology
SS&C Technologies Releases Q2 2024 Earnings Results, Announces $1 Billion Common Stock Repurchase Program
Published
2 years agoon
By
Q2 2024 GAAP revenue $1,451.5 million, up 6.5%, Fully Diluted GAAP Earnings Per Share $0.75, up 47.1%
Record Adjusted revenue $1,452.4 million, up 6.5%, Adjusted Diluted Earnings Per Share $1.27, up 17.6%
WINDSOR, Conn., July 25, 2024 /PRNewswire/ — SS&C Technologies Holdings, Inc. (NASDAQ: SSNC), a global provider of investment, financial and healthcare software and software-enabled services, today announced its financial results for the second quarter ended June 30, 2024.
Three Months Ended
June 30,
Six Months Ended
June 30,
(in millions, except per share data):
2024
2023
Change
2024
2023
Change
GAAP Results
Revenue
$1,451.5
$1,362.6
6.5 %
$2,886.5
$2,725.3
5.9 %
Operating income
327.6
288.2
13.7 %
660.5
568.3
16.2 %
Operating income margin
22.6 %
21.2 %
140 bps
22.9 %
20.9 %
200 bps
Diluted earnings per share attributable to
SS&C
$0.75
$0.51
47.1 %
$1.38
$1.00
38.0 %
Net income attributable to SS&C
190.3
130.7
45.6 %
347.9
256.7
35.5 %
Adjusted Non-GAAP Results (defined in Notes 1 – 4 below)
Adjusted revenue
$1,452.4
$1,363.4
6.5 %
$2,888.2
$2,726.8
5.9 %
Adjusted operating income attributable to
SS&C
541.7
485.8
11.5 %
1,081.7
978.8
10.5 %
Adjusted operating income margin
37.3 %
35.6 %
170 bps
37.5 %
35.9 %
160 bps
Adjusted diluted earnings per share
attributable to SS&C
$1.27
$1.08
17.6 %
$2.55
$2.22
14.9 %
Adjusted consolidated EBITDA attributable
to SS&C
558.9
502.4
11.2 %
1,115.7
1,011.3
10.3 %
Adjusted consolidated EBITDA margin
38.5 %
36.8 %
170 bps
38.6 %
37.1 %
150 bps
Second Quarter 2024 Highlights:
Q2 2024 GAAP Revenue growth and Adjusted Revenue growth were 6.5 percentAdjusted Organic Revenue Growth was 6.4 percent, Financial Services Recurring Revenue Growth was 7.7 percent.Q2 2024 we bought back 3.7 million shares for $227.0 million, at an average price of $62.17 per share. This is the highest share buyback of any quarter in our history.SS&C reported GAAP net income attributable to SS&C of $190.3 million, up 45.6 percent and adjusted consolidated EBITDA attributable to SS&C of $558.9 million for Q2 2024, up 11.2 percent.GAAP operating income margin for Q2 2024 was 22.6 percent. Adjusted consolidated EBITDA margin for Q2 2024 was 38.5 percent.SS&C will host a 2024 Analyst Day on September 18th at the Nasdaq Marketsite in New York City.SS&C Deliver, our annual client conference, will be October 6-8 in New Orleans, Louisiana, and will feature David Rubenstein, co-Founder and co-Chairman of the Carlyle Group as our keynote speaker.
“SS&C’s momentum continued into the second quarter; we reported 6.4 percent organic revenue growth and $1.27 in adjusted diluted EPS, up 17.6 percent” says Bill Stone, Chairman and Chief Executive Officer. “The strong results SS&C delivered in the first half of 2024 are indicative of the work we have put in over the last few years. We will continue to be aggressive with stock buy backs as long as we feel our stock is undervalued. Our goal is to maximize long term shareholder value.”
Operating Cash Flow
SS&C generated net cash from operating activities of $565.4 million for the six months ended June 30, 2024, compared to $584.2 million for the same period in 2023, a 3.2% decrease. SS&C ended the second quarter with $462.7 million in cash and cash equivalents and $6,653.1 million in gross debt. SS&C’s net debt balance as defined in our credit agreement, which excludes cash and cash equivalents of $88.5 million held at DomaniRx, LLC was $6,278.9 million as of June 30, 2024. SS&C’s consolidated net leverage ratio as defined in our credit agreement stood at 2.84 times consolidated EBITDA attributable to SS&C as of June 30, 2024. SS&C’s net secured leverage ratio stood at 1.60 times consolidated EBITDA attributable to SS&C as of June 30, 2024.
SS&C Announces $1 Billion Common Stock Repurchase Program
SS&C announced that as part of the Company’s capital allocation strategy to maximize long-term stockholder value, its Board of Directors (“Board”) has authorized the renewal of the stock repurchase program, which will enable the Company to repurchase up to $1 billion in the aggregate of the Company’s outstanding shares of common stock. Under the renewed program, SS&C’s proposed repurchases may be made from time to time in one or more transactions on the open market or in privately negotiated purchase and/or through other legally permissible means, depending on market conditions and in accordance with applicable rules and regulations promulgated under the Securities Exchange Act of 1934, as amended.
The timing and amount of any shares repurchased will be determined by the Company’s management based on its evaluation of market conditions and other factors. Repurchases may also be made under a Rule 10b5-1 plan, which would permit shares to be repurchased when the Company might otherwise be precluded from doing so under insider trading laws. The repurchase program may be suspended or discontinued at any time. Any repurchased shares will be available for use in connection with the SS&C’s stock plans and for other corporate purposes. The Company’s authority to repurchase shares under the renewed program shall continue until the one year anniversary of the Board’s authorization, unless earlier terminated by the Board.
Guidance
Q3 2024
FY 2024
Adjusted Revenue ($M)
$1,420.0 – $1,460.0
$5,706.2 – $5,866.2
Adjusted Net Income attributable to SS&C ($M)
$304.6 – $320.6
$1,246.3 – $1,326.3
Interest Expense1 ($M)
$107.0 – $109.0
$435.0 – $443.0
Adjusted Diluted Earnings per Share attributable to SS&C
$1.21 – $1.27
$4.98 – $5.22
Cash from Operating Activities ($M)
–
$1,305.0 – $1,385.0
Capital Expenditures (% of revenue)
–
4.1% – 4.5%
Diluted Shares (M)
251.6 – 252.6
250.9 – 253.9
Effective Income Tax Rate (%)
26 %
26 %
1Interest expense is net of deferred financing cost amortization and original issue discount
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 certain items required to develop meaningful comparable GAAP financial measures. These items include acquisition transactions and integration, foreign exchange rate changes, as well as other non-cash and other adjustments as defined under the Company’s Credit agreement, that are difficult to predict in advance in order to include in a GAAP estimate. The unavailable information could have a significant impact on Q3 2024 and FY 2024 GAAP financial results.
Non-GAAP Financial Measures
Adjusted revenue, adjusted operating income, adjusted consolidated EBITDA, adjusted net income and adjusted diluted earnings per share are non-GAAP measures. See the accompanying notes for the reconciliations and definitions for each of these non-GAAP measures and the reasons our management believes these measures provide useful information to investors regarding our financial condition and results of operations.
Earnings Call and Press Release
SS&C’s second quarter 2024 earnings call will take place at 5:00 p.m. eastern time today, July 25, 2024. The call will discuss second quarter 2024 results. Interested parties may dial 888-210-4650 (US and Canada) or 646-960-0327 (International), and request the “SS&C Technologies Second Quarter 2024 Earnings Conference Call”; conference ID #4673675. In connection with the earnings call, a presentation will be available on SS&C’s website at www.ssctech.com. The call will be available for replay via the webcast on SS&C’s website; access: https://investor.ssctech.com/financials/quarterly-results/default.aspx
Certain information contained in this press release relating to, among other things, the Company’s financial guidance for the third quarter and full year of 2024 constitute forward-looking statements for purposes of the safe harbor provisions under the Private Securities Litigation Reform Act of 1995. Forward-looking statements include statements concerning plans, objectives, goals, strategies, expectations, intentions, projections, developments, future events, performance, underlying assumptions, and other statements that are other than statements of historical facts. Without limiting the foregoing, the words “believes”, “anticipates”, “plans”, “expects”, “estimates”, “projects”, “forecasts”, “may”, “assume”, “intend”, “will”, “continue”, “opportunity”, “predict”, “potential”, “future”, “guarantee”, “likely”, “target”, “indicate”, “would”, “could” and “should” and similar expressions are intended to identify forward-looking statements, although not all forward-looking statements are accompanied by such words. Such statements reflect management’s best judgment based on factors currently known but are subject to risks and uncertainties, which could cause actual results to differ materially from those anticipated. Such risks and uncertainties include, but are not limited to, the state of the economy and the financial services industry and other industries in which the Company’s clients operate, the Company’s ability to realize anticipated benefits from its acquisitions, including DST Systems, Inc., the effect of customer consolidation on demand for the Company’s products and services, the increasing focus of the Company’s business on the hedge fund industry, the variability of revenue as a result of activity in the securities markets, the ability to retain and attract clients, fluctuations in customer demand for the Company’s products and services, the intensity of competition with respect to the Company’s products and services, the exposure to litigation and other claims, terrorist activities and other catastrophic events, disruptions, attacks or failures affecting the Company’s software-enabled services, risks associated with the Company’s foreign operations, privacy concerns relating to the collection and storage of personal information, evolving regulations and increased scrutiny from regulators, the Company’s ability to protect intellectual property assets and litigation regarding intellectual property rights, delays in product development, investment decisions concerning cash balances, regulatory and tax risks, risks associated with the Company’s joint ventures, changes in accounting standards, risks related to the Company’s substantial indebtedness, the market price of the Company’s stock prevailing from time to time, and the risks discussed in the “Risk Factors” section of the Company’s most recent Annual Report on Form 10-K and Quarterly Report on Form 10-Q, which are on file with the Securities and Exchange Commission and can also be accessed on our website. Forward-looking statements speak only as of the date on which they are made and, except to the extent required by applicable securities laws, we undertake no obligation to update or revise any forward-looking statements.
About SS&C Technologies
SS&C is a global provider of services and software for the financial services and healthcare industries. Founded in 1986, SS&C is headquartered in Windsor, Connecticut, and has offices around the world. Some 20,000 financial services and healthcare organizations, from the world’s largest companies to small and mid-market firms, rely on SS&C for expertise, scale, and technology.
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SS&C Technologies Holdings, Inc. and Subsidiaries
Condensed Consolidated Statements of Comprehensive Income
(in millions, except per share data)
(unaudited)
Three Months Ended June 30,
Six Months Ended June 30,
2024
2023
2024
2023
Revenues:
Software-enabled services
$
1,192.4
$
1,106.5
$
2,380.1
$
2,220.7
License, maintenance and related
259.1
256.1
506.4
504.6
Total revenues
1,451.5
1,362.6
2,886.5
2,725.3
Cost of revenues:
Software-enabled services
654.0
628.6
1,287.8
1,259.6
License, maintenance and related
99.2
92.9
193.2
187.6
Total cost of revenues
753.2
721.5
1,481.0
1,447.2
Gross profit
698.3
641.1
1,405.5
1,278.1
Operating expenses:
Selling and marketing
142.6
137.1
283.5
276.9
Research and development
128.7
119.6
249.6
237.8
General and administrative
99.4
96.2
211.9
195.1
Total operating expenses
370.7
352.9
745.0
709.8
Operating income
327.6
288.2
660.5
568.3
Interest expense, net
(113.3)
(118.0)
(229.3)
(229.9)
Other income, net
0.6
14.9
7.2
20.3
Equity in earnings of unconsolidated affiliates, net
17.3
9.4
19.6
15.1
Loss on extinguishment of debt
(27.7)
—
(28.8)
(0.6)
Income before income taxes
204.5
194.5
429.2
373.2
Provision for income taxes
13.8
63.6
80.5
116.1
Net income
190.7
130.9
348.7
257.1
Net income attributable to noncontrolling interest
(0.4)
(0.2)
(0.8)
(0.4)
Net income attributable to SS&C common stockholders
$
190.3
$
130.7
$
347.9
$
256.7
Basic earnings per share attributable to SS&C common stockholders
$
0.77
$
0.53
$
1.41
$
1.03
Diluted earnings per share attributable to SS&C common stockholders
$
0.75
$
0.51
$
1.38
$
1.00
Basic weighted-average number of common shares outstanding
246.2
248.5
246.6
249.5
Diluted weighted-average number of common and common equivalent
shares outstanding
252.3
255.0
252.7
256.0
Net income
$
190.7
$
130.9
$
348.7
$
257.1
Other comprehensive income (loss), net of tax:
Foreign currency exchange translation adjustment
2.7
66.2
(44.9)
108.2
Change in defined benefit pension obligation
0.1
(0.1)
0.1
—
Total other comprehensive income (loss), net of tax
2.8
66.1
(44.8)
108.2
Comprehensive income
193.5
197.0
303.9
365.3
Comprehensive income attributable to noncontrolling interest
(0.4)
(0.2)
(0.8)
(0.4)
Comprehensive income attributable to SS&C common stockholders
$
193.1
$
196.8
$
303.1
$
364.9
SS&C Technologies Holdings, Inc. and Subsidiaries
Condensed Consolidated Balance Sheets
(in millions)
(unaudited)
June 30,
December 31,
2024
2023
Assets
Current assets:
Cash and cash equivalents
$
462.7
$
432.2
Funds receivable and funds held on behalf of clients
1,624.2
2,615.6
Accounts receivable, net
868.4
799.4
Contract asset
40.7
36.1
Prepaid expenses and other current assets
132.8
165.8
Restricted cash
3.3
2.4
Total current assets
3,132.1
4,051.5
Property, plant and equipment, net
304.7
315.3
Operating lease right-of-use assets
203.9
221.4
Investments
181.2
184.7
Unconsolidated affiliates
337.1
345.2
Contract asset
101.7
99.7
Goodwill
8,935.3
8,969.5
Intangible and other assets, net
3,709.2
3,915.2
Total assets
$
16,905.2
$
18,102.5
Liabilities and Equity
Current liabilities:
Current portion of long-term debt
$
39.0
$
51.5
Client funds obligations
1,624.2
2,615.6
Accounts payable
57.2
80.3
Income taxes payable
1.0
22.3
Accrued employee compensation and benefits
221.6
270.2
Interest payable
36.1
29.4
Other accrued expenses
229.7
232.3
Deferred revenue
482.9
470.3
Total current liabilities
2,691.7
3,771.9
Long-term debt, net of current portion
6,575.1
6,668.5
Operating lease liabilities
183.0
199.1
Other long-term liabilities
198.9
248.7
Deferred income taxes
769.7
816.6
Total liabilities
10,418.4
11,704.8
SS&C stockholders’ equity
6,427.9
6,339.6
Noncontrolling interest
58.9
58.1
Total equity
6,486.8
6,397.7
Total liabilities and equity
$
16,905.2
$
18,102.5
SS&C Technologies Holdings, Inc. and Subsidiaries
Condensed Consolidated Statements of Cash Flows
(in millions)
(unaudited)
Six Months Ended June 30,
2024
2023
Cash flow from operating activities:
Net income
$
348.7
$
257.1
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization
333.0
331.8
Equity in earnings of unconsolidated affiliates, net
(19.6)
(15.1)
Distributions received from unconsolidated affiliates
2.5
16.2
Stock-based compensation expense
95.7
75.4
Net losses (gains) on investments
0.6
(1.8)
Amortization and write-offs of loan origination costs and original issue discounts
5.2
6.9
Loss on extinguishment of debt
28.8
0.6
(Gain) loss on sale or disposition of property and equipment
(0.1)
6.9
Deferred income taxes
(49.4)
(52.7)
Provision for credit losses
9.7
8.0
Changes in operating assets and liabilities, excluding effects from acquisitions:
Accounts receivable
(83.3)
(28.2)
Prepaid expenses and other assets
16.5
62.7
Contract assets
(7.2)
9.0
Accounts payable
(37.4)
(5.0)
Accrued expenses and other liabilities
(90.2)
(106.4)
Income taxes prepaid and payable
(8.3)
0.9
Deferred revenue
20.2
17.9
Net cash provided by operating activities
565.4
584.2
Cash flow from investing activities:
Cash paid for business acquisitions, net of cash acquired and asset acquisitions
(0.9)
(0.1)
Additions to property and equipment
(15.8)
(24.2)
Proceeds from sale of property and equipment
3.2
—
Additions to capitalized software
(100.2)
(97.2)
Proceeds from sales / maturities of investments
0.2
2.1
Distributions received from unconsolidated affiliates
24.5
—
Collection of other non-current receivables
5.0
5.0
Net cash used in investing activities
(84.0)
(114.4)
Cash flow from financing activities:
Cash received from debt borrowings, net of original issue discount
4,745.0
175.0
Repayments of debt
(4,850.1)
(344.8)
Payment of deferred financing fees
(30.0)
—
Net decrease in client funds obligations
(1,151.6)
(613.6)
Proceeds from exercise of stock options
103.7
45.1
Withholding taxes paid related to equity award net share settlement
(14.9)
(1.6)
Purchases of common stock for treasury
(279.9)
(244.1)
Dividends paid on common stock
(119.8)
(101.2)
Net cash used in financing activities
(1,597.6)
(1,085.2)
Effect of exchange rate changes on cash, cash equivalents and restricted cash
(3.9)
0.6
Net decrease in cash, cash equivalents and restricted cash
(1,120.1)
(614.8)
Cash, cash equivalents and restricted cash, beginning of period
2,998.6
1,337.6
Cash, cash equivalents and restricted cash and cash equivalents, end of period
$
1,878.5
$
722.8
Reconciliation of cash, cash equivalents and restricted cash and cash equivalents:
Cash and cash equivalents
$
462.7
$
439.7
Restricted cash and cash equivalents
3.3
2.5
Restricted cash and cash equivalents included in funds receivable and funds held on behalf of
clients
1,412.5
280.6
$
1,878.5
$
722.8
SS&C Technologies Holdings, Inc. and Subsidiaries
Disclosures Relating to Non-GAAP Financial Measures
Note 1. 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 deferred revenue and retained earnings related to the adoption of ASC 606. Adjusted revenues is presented because we use this measure to evaluate performance of our business against prior periods and believe it is a useful indicator of the underlying performance of our business. Adjusted revenues is not a recognized term under generally accepted accounting principles (“GAAP”). Adjusted revenues does not represent revenues, as that term is defined under GAAP, and should not be considered as an alternative to revenues as an indicator of our operating performance. Adjusted revenues as presented herein is not necessarily comparable to similarly titled measures presented by other companies. Below is a reconciliation of adjusted revenues to revenues, the GAAP measure we believe to be most directly comparable to adjusted revenues.
Three Months Ended June 30,
Six Months Ended June 30,
(in millions)
2024
2023
2024
2023
Revenues
$
1,451.5
$
1,362.6
$
2,886.5
$
2,725.3
ASC 606 adoption impact
(0.7)
(0.8)
(1.5)
(1.7)
Purchase accounting adjustments impact on revenue
1.6
1.6
3.2
3.2
Adjusted revenues
$
1,452.4
$
1,363.4
$
2,888.2
$
2,726.8
The following is a breakdown of software-enabled services and license, maintenance and related revenues and adjusted software-enabled services and license, maintenance and related revenues.
Three Months Ended June 30,
Six Months Ended June 30,
(in millions)
2024
2023
2024
2023
Software-enabled services
$
1,192.4
$
1,106.5
$
2,380.1
$
2,220.7
License, maintenance and related
259.1
256.1
506.4
504.6
Total revenues
$
1,451.5
$
1,362.6
$
2,886.5
$
2,725.3
Software-enabled services
$
1,193.3
$
1,107.4
$
2,381.8
$
2,222.3
License, maintenance and related
259.1
256.0
506.4
504.5
Total adjusted revenues
$
1,452.4
$
1,363.4
$
2,888.2
$
2,726.8
Note 2. 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 expenses. Adjusted operating income is presented because we use this measure to evaluate performance of our business and believe it is a useful indicator of our underlying performance. Adjusted operating income is not a recognized term under GAAP. Adjusted operating income does not represent operating income, as that term is defined under GAAP, and should not be considered as an alternative to operating income as an indicator of our operating performance. Adjusted operating income as presented herein is not necessarily comparable to similarly titled measures by other companies. The following is a reconciliation between adjusted operating income and operating income, the GAAP measure we believe to be most directly comparable to adjusted operating income.
Three Months Ended June 30,
Six Months Ended June 30,
(in millions)
2024
2023
2024
2023
Operating income
$
327.6
$
288.2
$
660.5
$
568.3
Amortization of intangible assets
149.1
147.9
296.7
294.7
Stock-based compensation
50.6
33.5
95.7
75.4
Purchase accounting adjustments (1)
3.1
3.6
6.1
8.4
ASC 606 adoption impact
(0.6)
(0.8)
(1.3)
(1.5)
Acquisition related (2)
0.3
3.1
1.1
5.4
Facilities and workforce restructuring
7.4
10.9
19.6
28.7
Other (3)
5.3
—
5.5
0.6
Adjusted operating income
$
542.8
$
486.4
$
1,083.9
$
980.0
Adjusted operating income attributable to noncontrolling interest (4)
(1.1)
(0.6)
(2.2)
(1.2)
Adjusted operating income attributable to SS&C common stockholders
$
541.7
$
485.8
$
1,081.7
$
978.8
(1)
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 at the date of acquisition, (b) an adjustment to increase personnel and
commissions expense by the amount that would have been recognized if prepaid commissions and deferred personnel costs were
not adjusted to fair value at the date of the acquisitions and (c) an adjustment to decrease depreciation expense by the amount that
would not have been recognized if property, plant and equipment were not adjusted to fair value at the date of acquisition.
(2)
Acquisition related includes costs related to both current acquisitions and the resolution of pre-acquisition matters for prior period
acquisitions.
(3)
Other includes additional expenses and income that are permitted to be excluded per the terms of our Credit Agreement from
Consolidated EBITDA, a financial measure used in calculating our covenant compliance.
(4)
In 2021, we entered into a joint venture named DomaniRx, LLC in which we are the majority interest holder and primary
beneficiary. As such, we consolidate DomaniRx, LLC as a variable interest entity. Adjusted operating income attributable to
noncontrolling interest represents adjusted operating income based on the ownership interest retained by the respective
noncontrolling parties.
Note 3. 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 calculating covenant compliance, and is EBITDA adjusted for certain items. Consolidated EBITDA is calculated by subtracting from or adding to EBITDA items of income or expense described below. Adjusted Consolidated EBITDA is calculated by subtracting acquired EBITDA (as defined below) from Consolidated EBITDA. EBITDA, Consolidated EBITDA and Adjusted Consolidated EBITDA are presented because we use these measures to evaluate performance of our business and believe them to be useful indicators of an entity’s debt capacity and its ability to service debt. EBITDA, Consolidated EBITDA and Adjusted Consolidated EBITDA are not recognized terms under GAAP and should not be considered in isolation or as alternatives to operating income, net income or cash flows from operating activities as indicators of our operating performance. These measures are not necessarily comparable to similarly titled measures by other companies. The following is a reconciliation of EBITDA, Consolidated EBITDA and Adjusted Consolidated EBITDA to net income.
Three Months Ended June 30,
Six Months Ended June 30,
Twelve
Months
Ended
June 30,
(in millions)
2024
2023
2024
2023
2024
Net income
$
190.7
$
130.9
$
348.7
$
257.1
$
700.2
Interest expense, net
113.3
118.0
229.3
229.9
469.2
Provision for income taxes
13.8
63.6
80.5
116.1
213.4
Depreciation and amortization
167.5
166.0
333.0
331.8
671.6
EBITDA
485.3
478.5
991.5
934.9
2,054.4
Stock-based compensation
50.6
33.5
95.7
75.4
179.7
Acquired EBITDA and cost savings (1)
—
—
—
—
—
Loss on extinguishment of debt
27.7
—
28.8
0.6
30.4
Equity in earnings of unconsolidated affiliates, net
(17.3)
(9.4)
(19.6)
(15.1)
(104.6)
Purchase accounting adjustments (2)
1.9
2.3
3.8
4.3
8.7
ASC 606 adoption impact
(0.6)
(0.8)
(1.3)
(1.5)
(2.9)
Foreign currency translation losses
1.1
1.7
5.8
1.2
4.4
Investment gains (3)
(1.4)
(3.0)
(12.0)
(14.2)
(16.7)
Facilities and workforce restructuring
7.5
10.9
19.7
28.7
47.7
Acquisition related (4)
0.1
(7.5)
0.9
(5.2)
6.1
Other (5)
5.1
(3.2)
4.6
3.4
8.8
Consolidated EBITDA
$
560.0
$
503.0
$
1,117.9
$
1,012.5
$
2,216.0
Acquired EBITDA and cost savings (1)
—
—
—
—
—
Adjusted Consolidated EBITDA
$
560.0
$
503.0
$
1,117.9
$
1,012.5
$
2,216.0
Adjusted Consolidated EBITDA attributable to noncontrolling interest (6)
(1.1)
(0.6)
(2.2)
(1.2)
(3.9)
Adjusted Consolidated EBITDA attributable to SS&C common stockholders
$
558.9
$
502.4
$
1,115.7
$
1,011.3
$
2,212.1
(1)
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 connection with acquisitions.
(2)
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 at the date of acquisitions (b) an adjustment to increase personnel and
commissions expense by the amount that would have been recognized if prepaid commissions and deferred personnel costs were
not adjusted to fair value at the date of the acquisitions and (c) an adjustment to increase or decrease rent expense by the amount
that would have been recognized if lease obligations were not adjusted to fair value at the date of acquisitions.
(3)
Investment gains includes unrealized fair value adjustments of investments and dividend income received on investments.
(4)
Acquisition related includes costs related to both current acquisitions and the resolution of pre-acquisition matters for prior period
acquisitions.
(5)
Other includes additional expenses and income that are permitted to be excluded per the terms of our Credit Agreement from
Consolidated EBITDA, a financial measure used in calculating our covenant compliance.
(6)
In 2021, we entered into a joint venture named DomaniRx, LLC in which we are the majority interest holder and primary
beneficiary. As such, we consolidate DomaniRx, LLC as a variable interest entity. Adjusted Consolidated EBITDA attributable
to noncontrolling interest represents adjusted Consolidated EBITDA based on the ownership interest retained by the respective
noncontrolling parties.
Note 4. Reconciliation of Net Income to Adjusted Net Income and Diluted Earnings Per Share Attributable to SS&C 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 attributable to SS&C before amortization of intangible assets and deferred financing costs, stock-based compensation, purchase accounting adjustments and other items. We consider adjusted net income and adjusted diluted earnings per share attributable to SS&C to be important to management and investors because they represent our operational performance exclusive of the effects of amortization of intangible assets and deferred financing costs, stock-based compensation, purchase accounting adjustments, loss on extinguishment of debt and other items, that are not operational in nature or comparable to those of our competitors. Adjusted net income and adjusted diluted earnings per share are not recognized terms under GAAP. Adjusted net income and adjusted diluted earnings per share do not represent net income or diluted earnings per share, as those terms are defined under GAAP, and should not be considered as alternatives to net income or diluted earnings per share as indicators of our operating performance. Adjusted net income and adjusted diluted earnings per share attributable to SS&C as presented herein are not necessarily comparable to similarly titled measures presented by other companies. Below is a reconciliation of adjusted net income and adjusted diluted earnings per share attributable to SS&C to net income and diluted earnings per share attributable to SS&C, the GAAP measures we believe to be most directly comparable to adjusted net income and adjusted diluted earnings per share.
Three Months Ended June 30,
Six Months Ended June 30,
(in millions, except per share data)
2024
2023
2024
2023
GAAP – Net income
$
190.7
$
130.9
$
348.7
$
257.1
Amortization of intangible assets
149.1
147.9
296.7
294.7
Amortization of deferred financing costs and original issue discount
2.0
3.4
5.3
6.9
Stock-based compensation
50.6
33.5
95.7
75.4
Loss on extinguishment of debt
27.7
—
28.8
0.6
Purchase accounting adjustments (1)
3.1
3.6
6.1
8.4
ASC 606 adoption impact
(0.6)
(0.8)
(1.3)
(1.5)
Equity in earnings of unconsolidated affiliates, net
(17.3)
(9.4)
(19.6)
(15.1)
Foreign currency translation losses
1.1
1.7
5.8
1.2
Investment losses (gains) (2)
0.7
(0.8)
0.6
(1.8)
Facilities and workforce restructuring
7.5
10.9
19.7
28.7
Acquisition related (3)
0.1
(7.5)
0.9
(5.2)
Other (4)
5.2
(2.9)
4.5
3.9
Income tax effect (5)
(99.0)
(33.7)
(146.3)
(83.9)
Adjusted net income
$
320.9
$
276.8
$
645.6
$
569.4
Adjusted net income attributable to noncontrolling interest (6)
(1.3)
(0.6)
(2.4)
(1.2)
Adjusted net income attributable to SS&C common stockholders
$
319.6
$
276.2
$
643.2
$
568.2
Adjusted diluted earnings per share attributable to SS&C common
stockholders
$
1.27
$
1.08
$
2.55
$
2.22
GAAP diluted earnings per share attributable to SS&C common
stockholders
$
0.75
$
0.51
$
1.38
$
1.00
Diluted weighted-average shares outstanding
252.3
255.0
252.7
256.0
(1)
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 at the date of acquisition, (b) an adjustment to increase personnel and
commissions expense by the amount that would have been recognized if prepaid commissions and deferred personnel costs were
not adjusted to fair value at the date of the acquisitions and (c) an adjustment to decrease depreciation expense by the amount that
would not have been recognized if property, plant and equipment were not adjusted to fair value at the date of acquisition.
(2)
Investment gains includes unrealized fair value adjustments of investments. In prior periods, investment gains also included
dividend income received on investments. Prior period amounts have been revised for consistent presentation.
(3)
Acquisition related includes costs related to both current acquisitions and the resolution of pre-acquisition matters for prior period
acquisitions.
(4)
Other includes additional expenses and income that are permitted to be excluded per the terms of our Credit Agreement from
Consolidated EBITDA, a financial measure used in calculating our covenant compliance.
(5)
An estimated normalized effective tax rate of approximately 26% for the three and six months ended June 30, 2024 and 2023 has
been used to adjust the provision for income taxes for the purpose of computing adjusted net income.
(6)
In 2021, we entered into a joint venture named DomaniRx, LLC in which we are the majority interest holder and primary
beneficiary. As such, we consolidate DomaniRx, LLC as a variable interest entity. Adjusted net income attributable to
noncontrolling interest represents adjusted net income based on the ownership interest retained by the respective noncontrolling
parties.
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SOURCE SS&C
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Technology
Global Security & Technology Summit Unveils Month-Long Program of Activities Ahead of December Event
Published
6 hours agoon
October 24, 2026By
RIYADH, Saudi Arabia, Oct. 24, 2026 /PRNewswire/ — The Organizing Committee of the Global Security & Technology Summit (GSTS) held an introductory session today at the Ministry of Interior’s headquarters in Riyadh, bringing together representatives from the government, private, and nonprofit sectors to introduce the program of activities leading up to the summit. The upcoming summit will be held in Riyadh under the patronage of HRH Prince Mohammed bin Salman bin Abdulaziz Al Saud, Crown Prince and Prime Minister, under the supervision of HRH Prince Abdulaziz bin Saud bin Naif bin Abdulaziz Al Saud, Minister of Interior, and organized by the Ministry of Interior in cooperation with Tuwaiq Academy.
During the session, the Organizing Committee presented the comprehensive GSTS program, comprising three key components: GSTS Month, running from November 1 to 30, 2026; the Global Security & Innovation Fair (SAIF), taking place from November 24 to 26, 2026; and the main Summit, scheduled for December 18 to 20, 2026, in Riyadh. Together, these events form an integrated program designed to advance security and technology innovation, strengthen national capabilities, and foster international cooperation.
GSTS Month will feature working groups, boot camps, training programs, knowledge-sharing sessions, and technical workshops across Saudi Arabia’s 13 administrative regions, delivered both in person and remotely in collaboration with specialized entities. The month-long program aims to develop national capabilities, identify emerging talent, enrich knowledge-sharing opportunities, and equip professionals with the knowledge and skills needed to develop innovative solutions to future security and technology challenges.
The main Summit will bring together global leaders, decision-makers, experts, and innovators to explore the future of security and technology, promote the integration of advanced technologies within the security sector, strengthen national capabilities, support innovation, and foster international cooperation, further positioning the Kingdom as a global hub for security and technology.
Showcasing the latest technological breakthroughs and security solutions, the summit will bring together government entities, private sector organizations, academic institutions, and research centers to facilitate knowledge exchange and collaboration across key fields, including cybersecurity, artificial intelligence (AI), the Internet of Things (IoT), smart security solutions, emerging technologies, and crisis management. The program will also feature main sessions, specialized discussions, and interactive exhibitions. Registration is available at gsts.sa.
Advisor to HRH the Minister of Interior and Chairman of the GSTS Organizing Committee, Ahmed Altowayan, stated that the summit builds on Saudi Arabia’s efforts to establish an advanced security and technology ecosystem focused on knowledge and innovation, keeping pace with rapid developments and future challenges.
Mr. Altowayan noted that the summit is a global platform for strengthening cooperation and exchanging expertise, anticipating future developments in security and technology, and developing strategic partnerships and innovative solutions that enhance the efficiency and readiness of security systems.
Vice Chairman of the GSTS Organizing Committee, Eng. Abdulaziz Alhammadi, said that the summit will offer a range of integrated programs and activities focused on enhancing national skills, encouraging innovation, and supporting international cooperation.
He added that GSTS Month will help build national capabilities, discover talent, and develop skills, with SAIF providing a platform for innovators and researchers from around the world to showcase leading technological solutions, while the main Summit will bring together leaders and experts to discuss the future of security and technology and explore new strategic partnership opportunities.
SAIF will take place at the Riyadh International Convention & Exhibition Center, bringing together innovators, researchers, technology talents, and industry experts from around the world to showcase promising innovations and projects across 14 fields of technology and innovation. The fair will provide opportunities to engage with project owners, including students, graduates, and entrepreneurs, and explore the different stages of innovation development through interactive zones, panel discussions on emerging security and innovation trends, and knowledge-sharing workshops led by specialists. Visitor registration is open to participants from within and outside the Kingdom through saifair.sa.
The introductory session also featured contributions from representatives of government, private, and nonprofit sector entities, alongside members of the media. Discussions focused on developing national capabilities in security and technology, strengthening students’ technical expertise, translating scientific research into practical solutions, and supporting Saudi companies in developing security and technology solutions and advancing digital transformation.
Organized by the Ministry of Interior in cooperation with Tuwaiq Academy, GSTS is produced by Tahaluf, with the Ministry of Education serving as Strategic Scientific Partner, Tahakom as Founding Partner, and Elm as Principal Partner.
Registration for participants from within and outside the Kingdom is available at gsts.sa.
Click here to view the media kit.
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Technology
Axon Announces Body 5: Next-Generation Camera Built for the AI Era
Published
11 hours agoon
October 24, 2026By
Axon Body 5 delivers 25x the AI processing power of earlier-generation cameras, with upgraded connectivity, audio and battery life to support real-time situational awareness in the field
SCOTTSDALE, Ariz., Oct. 24, 2026 /PRNewswire/ — Axon (Nasdaq: AXON), the global leader in public safety technology, today announced Axon Body 5, its newest body-worn camera designed to bring more powerful intelligence, connectivity and real-time support directly to officers in the field.
For years, Axon body cameras have helped agencies capture critical evidence and create greater transparency. Body 5 is built to help officers during the call, with information, assistance and backup on the spot.
“Officers shouldn’t have to choose between getting information and watching the scene. With Axon Body 5, they don’t,” said Rick Smith, Axon Founder and CEO. “They capture a license or document with the camera, keep their hands free and eyes up, and get information faster than writing it down and calling it in by radio. An officer fully engaged with the person in front of them, not down at a notepad, is a safer officer and a better-served community.”
Axon Body 5: Built for the AI Era
Built from the ground up for the AI era, Axon Body 5 delivers 25x the AI processing power than earlier generation Axon body cameras, alongside advancements in connectivity, audio, video and battery life. Together, these upgrades give the camera the physical power to run smarter AI features — both today and as new AI tools are developed in the future — while also making it more dependable for officers to use every day.
For the first time, Axon is also introducing two versions of its latest flagship camera: Axon Body 5 and Axon Body 5 Pro.
Both models feature several key advancements, including:
25x more processing power for AI: A powerful new computing architecture creates the capacity to support current and future AI features directly on the body camera.Enhanced video: Improved video captures clearer evidence across challenging environments, including better low-light performance.Improved connectivity: Seamless connectivity in urban and remote environments – and more precise location capability – helps officers, cameras and remote support teams stay connected when timely information matters most.Longer battery life: 20% more battery life than the previous generation helps keep the camera ready and connected throughout an officer’s shift.
The Axon Body 5 Pro will continue to gain new AI capabilities as they become available, growing along with the AI Era Plan. Additionally, new hardware features include:
A near-focus camera: An additional dedicated camera lens lets officers scan driver’s licenses to check status and search for wants or warrants in seconds, without returning to the patrol vehicle, with relevant information sent to Axon Fusus to support real-time operations.Front-facing speakers: Four additional speakers project even more powerful audio toward the person an officer is speaking with, helping real-time translations from Axon Assistant carry more clearly over heavy traffic or crowd noise. Additional memory: Extra space lets the camera run several AI tools at once, helping officers stay better informed and work faster.
Bringing More of Axon’s AI Era Into the Field
Axon Body 5 helps officers get more out of the Axon AI Era Plan by bringing smart tools right to the scene. Axon’s portfolio already supports public safety professionals across a growing range of tasks. For example, Draft One helps officers turn body-camera audio into high-quality report drafts and Axon Assistant provides voice-based information access and real-time translation.
Increasingly, Axon is also bringing AI into real-time operations.
Axon Guardian is a new category of AI features within the AI Era Plan that was specifically created to work with an officer’s field-based devices – starting with body cameras and in-car cameras – to improve safety. Guardian is designed to flag potential risks as situations unfold and create alerts when additional attention may be needed. Two of the first features include:
Escalation Detection: When an Axon Body 4 or Axon Body 5 camera is activated and recording, Guardian has the ability to detect potential conflicts in real time and create an alert in Axon Fusus. A human reviews the livestream and decides if additional support or action is needed.Approach Alert: When active on Axon Fleet 3, Guardian can detect if the door of a stopped vehicle opens and alert the officer through the in-car display and their body-worn camera.
Combined, Axon Body 5 and the expanding AI Era portfolio demonstrate the importance of AI as a critical resource to assist public safety professionals before, during and after an incident — reducing administrative burden, improving situational awareness and helping protect more lives.
Innovating Responsibly
Axon’s Responsible Innovation framework guides the development of all of its products. Designed with this in mind, Axon Body 5 and Guardian prioritize human oversight and maintain agency control over data. As a key part of the responsible innovation process, Axon’s independent Ethics and Equity Advisory Council was created to help responsibly develop and deploy new technologies with transparency, while aligning with community expectations.
General availability dates for Axon Body 5 and Axon Guardian will be announced soon. Product features and capabilities vary by configuration. For more information on Axon’s current products and services: Axon Product Catalog – Axon.com.
About Axon
Axon (Nasdaq: AXON) is the global leader in public safety technology supporting state, local, federal and international public safety agencies with technology designed to Protect Life. Complementing its mission, Axon’s growing Enterprise market focuses on protecting critical infrastructure and frontline workers across multiple industries including corporate security, hospitality, retail and healthcare. Founder-led since 1993, Axon builds products with transparency and responsibility. From TASER energy devices to today’s connected network of hardware – including cameras, drones, and robotics – cloud software, sensors, and AI-tools, the Axon ecosystem helps seamlessly protect people and places when it matters most. To ensure these technologies align with community expectations, Axon’s independent Ethics & Equity Advisory Council guides the ethical, inclusive, and accountable design of its products and services. Learn more about the EEAC and Axon’s Responsible Innovation framework at Axon Responsibility.
Non-Axon trademarks are the property of their respective owners. Axon, TASER and the Delta Logo are trademarks of Axon Enterprise, Inc., some of which are registered in the US and other countries. For more information, visit www.axon.com/legal. All rights reserved.
Please visit https://investor.axon.com and https://www.axon.com/newsroom for more information.
Media Contact:
Kate MacKinnon
Vice President, Communications
press@axon.com
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SOURCE Axon
Technology
In HelloNation, Custom Fabrication Expert Mark Coyle Explains a Common Mistake in Custom Aluminum Design
Published
12 hours agoon
October 24, 2026By
The article explains why smart geometry, not thicker walls, creates stronger, more efficient aluminum components.
ROCHESTER, N.Y., Oct. 24, 2026 /PRNewswire/ — What early design choice causes many custom aluminum projects to become heavier, costlier, or harder to manufacture? That question is addressed in a HelloNation article featuring insights from Custom Fabrication Expert Mark Coyle of American Custom Metals, Inc. in Rochester, New York, that outlines how misunderstanding aluminum behavior leads designers to rely on thick walls instead of stronger geometry.
The article begins by explaining that many people assume thicker walls automatically make aluminum parts stronger. It notes that aluminum does not respond to wall thickness the way steel does. Instead, its performance is shaped by how the metal flows through the extrusion die. The article states that custom aluminum design is more effective when profiles use ribs, chambers, and flanges to create stiffness without adding unnecessary weight. This guidance helps readers understand why adding material often increases cost without improving strength.
The article also highlights that thicker walls change how aluminum moves during extrusion. When heavy areas fill more slowly, the metal cools unevenly and can develop stress that only appears later. The HelloNation piece explains that well-balanced geometry keeps extrusion smooth and predictable. This consistency makes it easier to maintain dimensional accuracy across long production runs. By focusing on geometry, custom aluminum design avoids the problems that come with slow extrusion speeds and uneven cooling.
Another insight in the article centers on how ribs and internal supports influence stability. It describes how a thin wall supported by a properly placed rib often performs better than a thick wall with no reinforcement. This happens because the rib helps distribute load, improve stiffness, and guide the aluminum as it cools. The article explains that this structural approach makes custom aluminum design more efficient and gives designers more control over how the final part behaves under pressure.
The article also shows why early collaboration between designer and fabricator prevents costly changes. It states that a fabricator familiar with extrusion can catch potential issues before a die is built. Small adjustments to corners or transitions can remove weak points or improve metal flow. The article notes that this teamwork keeps the design aligned with real-world production. By working together early, both sides reduce the risk of redesigning the die after the first test run.
Machining is another area where the article explains how wall thickness affects performance. Features such as deep pockets or sharp internal angles may require slow feed rates or special tooling. When walls are thicker than needed, those areas can become difficult to machine cleanly. The article states that thoughtful custom aluminum design makes machining more predictable. Small changes, such as adding radiused edges or sizing features to match standard tools, help shorten cycle times and prevent tool wear.
Thermal behavior receives detailed attention as well. The article explains that aluminum retains heat differently depending on the mass of each section. Thicker walls hold heat longer, which increases the chance of distortion during extrusion, machining, or finishing. When a design uses geometry to create strength, the material cools more evenly. This reduces warping and helps long profiles stay aligned. The article notes that stable cooling is important for components that require a precise fit and consistent shape throughout an entire production run.
Cost is also a key topic in the article. It states that heavier profiles increase material use, extrusion time, and tooling needs. A custom aluminum design that relies on geometry instead of mass lowers material consumption and keeps the fabrication process efficient. The article explains that lighter parts are easier to handle, ship, and assemble. This saves money across multiple stages of production and supports long-term manufacturing efficiency.
The article also notes that smart custom aluminum design creates profiles that behave predictably during extrusion and machining. Smooth transitions, balanced wall dimensions, and structural features help reduce the chance of distortion or dimensional drift. These elements also lower scrap rates and support reliable performance. By using geometry instead of excess material, designers build parts that maintain strength without compromising manufacturability.
As the article concludes, it emphasizes that avoiding thick walls is one of the best ways to improve performance and lower cost. It states that the most dependable custom aluminum components come from designs that use structural features to strengthen the profile. When designers understand how aluminum behaves at each stage of extrusion and machining, they create parts that are strong, efficient, and consistent from batch to batch. This approach turns custom aluminum design into a predictable process rather than a series of uncertain adjustments.
A Common Mistake in Custom Aluminum Design features insights from Mark Coyle, Custom Fabrication Expert of Rochester, NY, in HelloNation.
About HelloNation
HelloNation is America’s Good News Network, a premier media platform built on the idea that good news travels faster when real people tell real stories. Through its community-focused publications and innovative “edvertising” approach, HelloNation delivers content that informs, inspires, and spotlights the leaders making a meaningful impact in their communities.
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SOURCE HelloNation
Global Security & Technology Summit Unveils Month-Long Program of Activities Ahead of December Event
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In HelloNation, Custom Fabrication Expert Mark Coyle Explains a Common Mistake in Custom Aluminum Design
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