FOR IMMEDIATE RELEASE
Contact:
Andrew C. Corbin
Executive Vice President, Chief Financial Officer
(212) 907-6079
The BISYS Group, Inc.
(NYSE: BSG)
www.bisys.com
BISYS(R) REPORTS FISCAL FOURTH QUARTER RESULTS
-- Revenue Increases to Record $253 Million --
-- Record Cash from Operations of $61 Million --
NEW YORK, N.Y. (July 29, 2003) - BISYS, a leading provider of business process
outsourcing solutions for the financial services sector, today reported the
results for its fiscal fourth quarter and the fiscal year ended June 30, 2003.
For the fiscal fourth quarter, BISYS reported net income of $33.8 million or
$0.28 per diluted share, as compared to net income of $37.3 million or $0.30 per
diluted share for the same period in fiscal 2002. Revenue for the quarter was
$253.2 million, an increase of six percent from $238.7 million in the same
period last year. Cash from operations for the quarter reached a record of $61.3
million.
BISYS reported net income of $111.8 million or $0.92 per diluted share for the
year ended June 30, 2003, as compared to net income of $115.9 million or $0.94
per diluted share for the year ended June 30, 2002. Actual results for the year
ended June 30, 2003 and 2002 include restructuring charges of $7.5 million or
$0.06 per diluted share net of tax, and $4.0 million or $0.03 per diluted share
net of tax, respectively, related to the integration, consolidation, and
relocation of certain business operations, primarily as a result of acquisition
activity. Excluding restructuring charges, pro forma net income for the year
ended June 30, 2003 was $119.4 million or $0.98 per diluted share, as compared
to pro forma net income of $119.8 million or $0.97 per diluted share for the
same period last year. BISYS' annual revenue increased to $958.4 million, up 11
percent over fiscal 2002 annual revenue of $865.7 million. Cash from operations
for fiscal year 2003 was $179.8 million, an increase of $50.9 million, or 39
percent, over the previous year.
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The company has included the above pro forma information concerning
restructuring charges to assist investors in analyzing BISYS' results of
operations. The company has elected to provide
this information to enable investors to perform meaningful comparisons of past,
present, and future operating results, and as a means to emphasize the results
of core, ongoing operations.
ABOUT BISYS
The BISYS Group, Inc. (NYSE: BSG), headquartered in New York City, provides
business process outsourcing solutions that enable investment firms, insurance
companies, and banks to capitalize on convergence by entering new segments of
the financial services industry. BISYS currently supports more than 20,000
domestic and international financial institutions and corporate clients through
three business units. Its INVESTMENT SERVICES group provides administration and
distribution services for approximately 380 clients, representing more than
2,200 mutual funds, hedge funds, private equity funds, and other alternative
investment products with more than $650 billion in assets. BISYS' largest group
also provides retirement services to more than 15,000 companies in partnership
with 40 of the nation's leading banks and investment management companies, and
offers analytical research and competitive intelligence through its Financial
Research Corporation (FRC) subsidiary. Through its INSURANCE AND EDUCATION
SERVICES group, BISYS is the nation's largest independent distributor of life
insurance and the premier provider of the support services required to sell
traditional and variable life, annuity, long-term care, and disability products.
BISYS is also the nation's seventh largest property/casualty (P&C) wholesaler
and the third largest independent wholesaler of commercial lines of P&C
insurance. This group complements its insurance distribution services with a
comprehensive compliance management solution that supports insurance and
investment firms and professionals with more than 225 certification and
continuing education training courses, and a sophisticated suite of
licensing-related products and services. BISYS' INFORMATION SERVICES group
provides information processing and imaging solutions to more than 1,150
financial institutions. This group also supports more than 120 insurance
companies with a suite of asset retention solutions, and provides complete
program management for corporate-sponsored cash management accounts. Additional
information is available at www.bisys.com.
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Except for the historical information contained herein, the matters discussed in
the press release are forward-looking statements within the meaning of the
safe-harbor provisions of the Private Securities Litigation Reform Act of 1995.
These forward-looking statements are subject to risks and uncertainties that may
cause actual results to differ materially, including but not limited to
economic, competitive, governmental and technological factors affecting the
Company's operations, markets, services and related products, prices and other
factors discussed in the Company's periodic filings with the Securities and
Exchange Commission.
-tables to follow-
THE BISYS GROUP, INC.
SUMMARY CONSOLIDATED FINANCIAL DATA
(Unaudited)
(In thousands, except per share data)
THREE MONTHS ENDED YEAR ENDED
JUNE 30, JUNE 30,
Statement of Operations Data: 2003 2002 2003 2002
--------- --------- --------- ---------
Revenues $ 253,187 $ 238,727 $ 958,419 $ 865,705
--------- --------- --------- ---------
Operating cost and expenses:
Service and operating 146,073 131,379 558,824 488,411
Selling, general and administrative 45,657 39,488 176,728 157,743
Amortization of intangible assets 5,348 3,961 18,822 13,125
Restructuring charges -- -- 12,079 6,475
--------- --------- --------- ---------
Total expenses 197,078 174,828 766,453 665,754
--------- --------- --------- ---------
Operating earnings 56,109 63,899 191,966 199,951
Interest income 297 396 1,475 3,599
Interest expense (4,718) (4,154) (18,146) (15,701)
--------- --------- --------- ---------
Income before income taxes 51,688 60,141 175,295 187,849
Income taxes 17,881 22,852 63,472 71,988
--------- --------- --------- ---------
Net income $ 33,807 $ 37,289 $ 111,823 $ 115,861
========= ========= ========= =========
Basic earnings per share $ 0.28 $ 0.31 $ 0.93 $ 0.98
Diluted earnings per share $ 0.28 $ 0.30 $ 0.92 $ 0.94
Weighted average shares outstanding 119,618 119,422 119,597 118,623
Weighted average equivalent shares outstanding 121,306 124,524 121,721 123,859
Pro forma:
Reported net income $ 33,807 $ 37,289 $ 111,823 $ 115,861
Addback:
Restructuring charges, net of tax -- -- 7,549 3,982
Pro forma net income 33,807 37,289 119,372 119,843
Diluted earnings per share:
Reported net income $ 0.28 $ 0.30 $ 0.92 $ 0.94
Addback:
Restructuring charges, net of tax -- -- 0.06 0.03
Pro forma net income $ 0.28 $ 0.30 $ 0.98 $ 0.97
THE BISYS GROUP, INC.
SUMMARY CONSOLIDATED FINANCIAL DATA
(Unaudited)
(In thousands)
THREE MONTHS ENDED YEAR ENDED
JUNE 30, JUNE 30,
Business Segment Data: 2003 2002 2003 2002
--------- --------- --------- ---------
Revenues:
Investment Services $ 130,684 $ 124,787 $ 498,531 $ 449,930
Insurance and Education Services 66,545 62,113 244,835 218,185
Information Services 55,958 51,827 215,053 197,590
--------- --------- --------- ---------
Total $ 253,187 $ 238,727 $ 958,419 $ 865,705
========= ========= ========= =========
Operating earnings (loss)*:
Investment Services $ 23,433 $ 24,495 $ 77,556 $ 77,449
Insurance and Education Services 20,971 28,562 88,532 94,847
Information Services 17,378 16,389 59,387 54,895
Corporate (5,673) (5,547) (21,430) (20,765)
--------- --------- --------- ---------
Total $ 56,109 $ 63,899 $ 204,045 $ 206,426
========= ========= ========= =========
* Excludes the impact of restructuring charges.
JUNE 30, JUNE 30,
Balance Sheet Data: 2003 2002
---------- ----------
Cash and cash equivalents $ 106,161 $ 78,371
Accounts receivable, net 96,237 101,851
Insurance premiums and commissions receivable, net 169,780 95,146
Total assets 1,526,893 1,246,151
Insurance premiums and commissions payable 79,398 --
Short-term borrowings 172,000 93,000
Long-term debt 300,000 300,000
Stockholders' equity 785,061 682,618
Other Financial Data: THREE MONTHS ENDED YEAR ENDED
JUNE 30, JUNE 30,
2003 2002 2003 2002
------- ------- -------- --------
Capital expenditures $ 9,285 $14,570 $ 43,106 $ 39,310
Net cash provided by operating activities $61,298 $39,954 $179,810 $128,946
Effective tax rate 34.6% 38.0% 36.2% 38.3%