FOR IMMEDIATE RELEASE
Contact:
James L. Fox
Executive Vice President and Chief Financial Officer
(212) 907-6015
The BISYS Group, Inc.
(NYSE: BSG)
www.bisys.com
BISYS(R) REPORTS FISCAL FIRST QUARTER RESULTS
-- Revenue Increases Four Percent to $237 Million --
NEW YORK, N.Y. (October 21, 2003) -- BISYS, a leading provider of business
process outsourcing solutions for the financial services sector, today reported
the results of its fiscal first quarter ended September 30, 2003.
For the fiscal first quarter, BISYS reported net income of $4.8 million or $0.04
per diluted share, as compared to net income of $16.8 million or $0.14 per
diluted share for the same period in fiscal 2003. Actual results for the fiscal
first quarter of 2004 include restructuring, impairment, and other charges of
$0.11 per diluted share or $13.1 million, including a net tax charge of $0.5
million, primarily related to the integration, consolidation, and reorganization
of certain business operations, particularly in the Company's European Fund
Services division and the Insurance and Education Services group. Actual results
for the fiscal first quarter of 2003 include restructuring charges of $0.06 per
diluted share or $7.5 million, net of a tax benefit of $4.5 million, related to
the integration, consolidation, and relocation of certain business operations,
primarily as a result of acquisition activity.
Excluding restructuring, impairment, and other charges, pro forma net income was
$17.9 million or $0.15 per diluted share for the fiscal 2004 first quarter, as
compared to $24.3 million or $0.20 per diluted share for the comparable fiscal
2003 quarter.
Revenue for the fiscal first quarter 2004 increased to $237.4 million, up four
percent from $227.3 million in the same period last year.
-more-
The Company has included the above pro forma information concerning
restructuring, impairment, and other 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 22,000
domestic and international financial institutions and corporate clients through
three business units. Its INVESTMENT SERVICES group provides administration and
distribution services for approximately 370 clients, representing approximately
2,100 mutual funds, hedge funds, private equity funds, and other alternative
investment products with approximately $700 billion in assets under
administration. BISYS' largest group also provides retirement services to more
than 17,000 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, long-term
care, disability, and annuity products. BISYS is also the nation's third largest
independent wholesale broker of commercial property/casualty 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 215 certification and continuing education training
courses, and a sophisticated suite of products and services that automates the
entire licensing process. BISYS' INFORMATION SERVICES group supports
approximately 1,450 banks, insurance companies, and corporations with
industry-leading information processing and imaging solutions, turnkey asset
retention solutions, and specialized corporate banking solutions. Additional
information is available at www.bisys.com.
-more-
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
SEPTEMBER 30,
Income Statement Data: 2003 2002
--------- ---------
Revenues $ 237,382 $ 227,344
--------- ---------
Operating cost and expenses:
Service and operating 152,512 135,549
Selling, general and administrative 46,129 44,586
Amortization of intangible assets 5,806 4,272
Restructuring, impairment and other charges 12,624 12,079
--------- ---------
Total expenses 217,071 196,486
--------- ---------
Operating earnings 20,311 30,858
Interest income 325 373
Interest expense (4,664) (4,385)
--------- ---------
Income before income taxes 15,972 26,846
Income taxes 11,161 10,067
--------- ---------
Net income $ 4,811 $ 16,779
========= =========
Basic earnings per share $ 0.04 $ 0.14
Diluted earnings per share $ 0.04 $ 0.14
Weighted average shares outstanding 119,805 119,535
Weighted average equivalent shares outstanding 121,467 122,647
Pro forma:
Reported net income $ 4,811 $ 16,779
Addback:
Restructuring, impairment and other charges, net of tax 13,133 7,549
Pro forma net income $ 17,944 $ 24,328
Diluted earnings per share:
Reported net income $ 0.04 $ 0.14
Addback:
Restructuring, impairment and other charges, net of tax 0.11 0.06
Pro forma net income $ 0.15 $ 0.20
THE BISYS GROUP, INC.
SUMMARY CONSOLIDATED FINANCIAL DATA
(Unaudited)
(In thousands)
THREE MONTHS ENDED
SEPTEMBER 30,
Business Segment Data: 2003 2002
--------- ---------
Revenues:
Investment Services $ 128,171 $ 120,944
Insurance and Education Services 57,126 55,699
Information Services 52,085 50,701
--------- ---------
Total $ 237,382 $ 227,344
========= =========
Operating earnings (loss)*:
Investment Services $ 16,413 $ 16,084
Insurance and Education Services 8,815 19,669
Information Services 12,887 12,405
Corporate (5,180) (5,221)
--------- ---------
Total $ 32,935 $ 42,937
========= =========
* Excludes the impact of restructuring, impairment and other charges in
fiscal years 2004 and 2003.
- --------------------------------------------------------------------------------
SEPTEMBER 30, JUNE 30,
Balance Sheet Data: 2003 2003
------------- ----------
Cash and cash equivalents $ 76,475 $ 79,558
Accounts receivable, net 94,532 96,237
Insurance premiums and commissions receivable, net 149,999 169,780
Total assets 1,487,291 1,526,893
Insurance premiums and commissions payable 53,407 79,398
Short-term borrowings 163,000 172,000
Long-term debt 300,000 300,000
Stockholders' equity 773,914 785,061
- --------------------------------------------------------------------------------
Other Financial Data: THREE MONTHS ENDED
SEPTEMBER 30,
2003 2002
------- -------
Capital expenditures $ 9,487 $13,901
Net cash provided by operating activities $26,432 $16,804
Effective tax rate, excluding impact of restructuring,
impairment and other charges 37.25% 37.50%