NEWS RELEASE C2005-09
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DST Systems, Inc. | Contact:
333 West 11th Street | Thomas A. McDonnell (816) 435-8684
Kansas City, MO | President and Chief Executive Officer
64105-159 |
| Kenneth V. Hager (816) 435-8603
NYSE Symbol: DST | Vice President and Chief Financial Officer
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FOR IMMEDIATE RELEASE Page 1
DST SYSTEMS, INC. ANNOUNCES SALE OF VIDEO/BROADBAND
CABLE/SATELLITE TV CUSTOMER CARE AND BILLING BUSINESS TO AMDOCS
LIMITED
July 5, 2005 - DST Systems, Inc. (NYSE: DST) today announced the sale and
closing of its Video Broadband/Cable/Satellite TV Customer Care and Billing
business (the "Business") to Amdocs Limited (NYSE: DOX) for $237.8 million in
cash. The Business, which essentially represents DST's customer management
segment, has approximately 700 employees and recorded operating revenues of
$183 million for 2004. In the first quarter of 2005 operating revenues were
$45 million. Included in the revenues were $49 million for 2004 and $13
million for the first quarter of 2005 representing inter-segment revenue for
output services.
As part of the transaction, DST through its subsidiary DST Output will
continue to provide electronic and print/mail services to customers of the
Business under a long term contract with Amdocs. DST Output will be a
preferred vendor of such services for customers of Amdocs in the United
States. Under a separate agreement with Amdocs, DST will also continue to
provide support of its AWD software for customers of the Business who
currently utilize AWD.
DST expects to recognize a net after-tax gain of approximately $100 million
and receive after tax proceeds of approximately $150 million in the third
quarter 2005 in connection with the sale. DST expects the transaction to be
somewhat dilutive to earnings per share. DST does not plan to account for the
transaction as a discontinued operation due to the on-going cash flows that
will be recorded by DST from the Business post close.
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The information and comments above may include forward-looking statements
respecting DST and its businesses. Such information and comments are based on
DST's views as of today, and actual actions or results could differ. There
could be a number of factors affecting future actions or results, including
those set forth in DST's latest periodic financial report (Form 10-K or 10-Q)
filed with the Securities and Exchange Commission. All such factors should be
considered in evaluating any forward-looking comment. The Company will not
update any forward-looking statements in this press release to reflect future
events.