SSNC - Earnings call transcript Q4 2018 | SS&C Technologies Holdings, Inc.

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Operator

Good afternoon. My name is Chantelle and I'll be your conference operator today. At this time, I would like to welcome everyone to the SS&C Technologies Fourth Quarter and Full Year 2018 Earnings Call. [Operator Instructions] Thank you.

Justine Stone, you may begin your conference.

Justine Stone

everyone. Hi, Day full for year Valentine’s our us thank and QX XXXX and Happy joining you for Welcome earnings call. Head Stone, Justine of for Relations I'm SS&C Investor Technologies. Rahul Chairman today Patrick and Chief Chief Bill me our and Stone, Officer. With Executive Operating is Pedonti, Officer; Kanwar, Financial Officer; President Chief and

forward-looking the to we as started, prospects, result with Securities XXXX. our for forward-looking about represent Harbor indicated future of be under statements our expectations plans important the on Risk most and February These these recent statement. provide, we those Please the as we get provisions may our Annual of in review today, remarks materially today and statements Before note XX-K, differ SEC the Litigation of XXXX. make outlook financial accessed including file Factors a constitute XX, we need on by on of which is from Harbor purposes website. of Safe Report section that various factors, statements Act also various the results can Form the discussed including Reform expectations, Actual Safe only those Private the forward-looking

these forward-looking obligation the company may it elect to do specifically disclaims While any so. statements, update to

During now Investor in reconciliation www.ssctech.com. Bill. turn at is today's included located today's of non-GAAP of call, in will to is certain we GAAP section over A will the measures financial the be release, our to these measures. I measures financial referring to comparable non-GAAP financial Relations earnings call website which

Bill Stone

Thanks everyone. Justine, thanks, and

diluted adjusted earnings robust. share and earned million and X,XXX.X the adjusted share. Both very in the revenue are revenue we Our per $X.XX are in a share earnings adjusted adjusted diluted per results revenue

Our consolidated and EBITDA $XXX margin our million XX.X%. was was

year per our while paydown $X.XX quarterly strong increase or topline per from QX $X.XX $X.XX to annually. Directors Board and at solid we X.X our our growth share financial for debt. dividends businesses XX% shareholders in rewarding continue core organic our warrant was We X.X. believe drove the of Our performance. approved share results rapidly

We closed with of our and in our last it Day robotic business of turn There and X.XX. hosted U.S., sell-side initiatives had featured over traction our current an XXX have since product. our leverage Day our opportunities April management Analyst paid now process in Rahul. is we key first intelligence, their machine with November more debt the Last demo DST analysts. is buy-side pursuits attended markets. Each smart which ratio over Analyst and singularity biggest several million down demo being we of learning, we automation boost units active $XXX acquisition predictive by and embedded of than presented regions and and also the U.K. of in The to artificial and a analytics. I’ll Canada XX the accounting over insurance asset system significant is newest

Rahul Kanwar

new Bill. quarter and of opportunities Thanks customers. for had on mandate remain high winning identify levels terms a We in strong focused our service new

for Healthcare to Shoreman, business. recent our Administration now in of and Share Bremner Joe Jeff our DelMastro and Daniel DST hired businesses Zologic added talented Rowley. O'Connor the of DVC Time Primatics Officer Bernie markets acquisitions, Hedge people. Chief Head Chief is We've integration some business. with progress Revenue Robert new is at and and Domestic joined made our Fund to Maxwell have We warrant business our Services to in for Christy group Officer have Financial Revenue very Technology as the financial responsibility the our

to unit focus heads to to review of initiatives. our in New of had I start all add XXXX new week Just the business York last our and

acquisitions products and of and and us building out Eze XXXX are in the capabilities in new including several DST, marketplace. and Intralinks combined We rolling services differentiate our

to at million We we opportunities find recent all by acquisitions DST expect now to and synergy annual our XXX April run XXXX. generate of continue rate synergies

continue of regulatory our and Diamond estate alternatives businesses Black several growth our We also particularly real see in including organic analytic to strong and business.

run will mention selected investment an A firm assets services advanced their chose launch. GlobeOp from platform and through individual fund administration solutions an reporting chose all process firms large the Now management Diamond A AWD. GlobeOp product partnership key Intralinks the chose SS&C fund existing fund Hong A M&A some existing activity and who solutions. with regions GlobeOp business X.X A regulatory deals for for administration across launch to product Patrick firm an of operations I capabilities. financials. new business. their to will Two chose compliance to billion for shop key lines billion for billion in business Four equity fund rating client and X XXXX. SS&C Eze chose approach investor in future as looking DST's its portfolio QX to fundraising over spinoff is now each all our OMS XX assets turn over advisory clients client and plus it Black win. sighting for Kong-based I

Patrick Pedonti

million. $XXX.X couple adjusted QX other The XXXX. Commonwealth smaller for revenue acquisitions Rahul. you, was $XX.X adjustments million Intralinks revenue excluding operating XXX%, and a recognition of for DST up million EPS new revenue was or diluted XXXX. We DST, a the standard the Advent and and the fourth adjusted quarter, in $X.XX acquired had $XXX.X increased for revenue and adjustment XXXX increased implementing adjusted contributes were X,XXX,XXX,XXX GAAP the $X.XX, very of Intralinks Eze quarter income and GAAP QX acquisitions increase EPS net the over deferred acquisitions. income revenue Thank and revenues of the was adjusted XXX%, strong Total million quarter. and X,XXX Results of of adjusted XX% over

quarter basis fourth the quarter of quarter. DST’s margins in XXXX. $XXX.X strength the in margins alternatives improved was implemented a in growth rate businesses. an margins Foreign currencies currency synergies exchange $XXX quarter improved as XX.X% and had the operating fourth million in increase sequentially of reached weakness unfavorable for driven for income in quarter as or the and on the business. $X.X million from annual DST by the the an the third Organic the or impact XX.X% our fourth December in XXX% quarter run core constant fourth to $XXX.X of in X.X% were Adjusted of due XX.X% foreign million, operating X.X% and Operating business XXXX. quarter the cost million was

cost million We $XXX target have synergies April rate run to annual our by DST XXXX. increased

The million XXXX In year. period costs debt related net income net the X.X XXXX. in our Diluted negatively expense $XXX positive million based mostly ended of Intralinks with million compensation, expenses impacted the $XXX.X Operating by The to an accounting the of cost new and and of The to was the million tax cash million, a year the fourth standards of of purchase due quarter $X.X debt of of XX% million non-cash offering of we shares of DST, over during XX.X%. cost increase of to in million costs of term provision as gross XXXX. cost, the of assets, XX% adjusted acquisition compared for due the operating $XX.X billion and X.XX% to pre-tax total of consolidated debt balance adjustments, in and related use - on XXXX, $XX.X mark-to-market million and for financing increase equity shares XX And stock ended $X.X facility quarter income increased weighted amortization same or down our $X.X a $XX.X to to EBITDA the million of recognition the we includes during was effective fourth in DST net sheet adjusted for the issued million increased rate the of $X,XXX,XXX.XXX million diluted of since $X.XXX the paid and Intralinks. flow excludes was for the million provision months issuance $X.X quarter million acquisition $XXX income partially amortized transaction stock quarter related issued was the XXX% option impact. for including on million million shares tax was On quarter acquisitions revenues tax was adoption Adjusted the XXX, $XX.X $XX.X position and Foreign $XXX.X months: exchange acquisition. to for shares $XXX common investments intangible only for had of severance year. year Net an acquisition $XX.X related EPS of $XXX.X net million and $X.X fourth the acquisition or GAAP impact full $XXX in XXth. of we flow the debt debt of XX income. million adjusted financing interest severance XX.X% November Adjusted compared was flow to non-cash $X.XX. billion completed of XX cash borrowed in million reductions. We quarter were cash, XXXX. in issuance the QX Eze cash adjustments of was on $X,XXX,XXX,XXX. average to and non-operating impact rate quarter revenue or associated and the of million from $XX.X the related the to OID. interest of we XX%. the the adjustment GAAP staff with the adjusted XX.X% or Highlights net year, Intralinks the million The million costs QX, X.XX% DST recorded We The $XXX

$XXX For rate we in interest interest the quarter to The $XXX the of was million in million X.XX%. average paid XXXX. year compared

we million to year in million full $XX cash the of For $XXX taxes XXXX. paid compared

leasehold dividends million IT improvements compared and to year XXXX, improvement. expansion, used receivable software for as we December as for days accounts of at $XX.X as capital XXXX. stock $XX significant and paid DSO XX.X XX.X of common of million we for September facilities compared mostly a $XX.X the – million well capitalized Our days was capitalized expenditures software. declared and And as in to We

$XXX quarter EBITDA $XXX.X expectations our of range was LTM in to million - on as for net of use covenant income of EBITDA, the $XXX.X of million compliance acquisition. first $X,XXX,XXX,XXX. in current adjusted (ph) related range debt, December. of is $XXX.X million. the and which the to for savings Based to Adjusted required as includes and was outlook year our of X.XXx $XXX $X,XXX,XXX,XXX XXXX, shares Our quarter cost full net the the first in to revenue diluted million $X,XXX,XXX,XXX the our consolidated average million total An the XXXX, we December for

range the of year $X,XXX,XXX,XXX, in to million net which adjusted full $XXX currently organic the to and X.X%. growth of expecting Adjusted revenue X.X% to of $X,XXX,XXX,XXX For million million. $X,XXX,XXX to of diluted Represents $XXX.X in income shares range $XXX.X revenue the

year. XX$ And We I'll expect the in X% full activities rate the to revenue. in adjusted $X,XXX,XXX,XXX of to X.X% be it back be for tax expenditures $X,XXX,XXX,XXX, operating of will capital total Bill. Cash flow range over and range to turn to of the the

Bill Stone

Thanks Patrick.

we're we proud in went know with revenue. looking XXXX, public in XXXX $XXX when accomplishments our to of You finished back and million we in when

Looking forward world. see we throughout opportunities significant the

initiatives, we our succeed. deliver on technology force ramp we As and expect up to sales our

conferences of those. throughout the will to investor year We see meetings some be hope and at at you and

it Now I'll to question. over turn

Operator

Rayna [Operator from Your comes Instructions] ISI, Kumar Evercore is Your line with question open. first

Rayna Kumar

alternatives organic the expectations business then the revenue in pull [indiscernible]? for Could in XXXX out and the - and your fourth growth you for quarter rate

Patrick Pedonti

not it. Yes, the the in didn't rate fourth that is really the hear growth sure alternatives question? I organic I'm quarter

Bill Stone

and in the Yes, guidance. QX

Patrick Pedonti

was fourth In the fourth the the also guidance is X.X%. growth and in XXXX, organic X.X%, quarter QX quarter alternatives

Rayna Kumar

healthcare is client - also that options can bookings growth you SS&C at healthcare see if and about that DST's little And does business, business, strategic looking bit retention in for talk the SS&C a new the business? as

Patrick Pedonti

successes some Sales. Senior in is We the in We're look Chief as brought and following stronger. on people. Vice reporting quarters. are Officer, great not. forward optimistic The to business Danny We Revenue [indiscernible] getting our we President as in DelMastro

Operator

Your Kramm question comes UBS. next from with Alex

is open. line Your

Alex Kramm

the organic topic a think if to X.X% rate focusy lower. the like that at the to at for of I you heard remember X.X, mid-point, X.X growth here, on X% I I I right the if staying guidance at Just on second pointing maybe to you a too not everyone correctly obviously seems little of that were Day but a Analyst growth be bit think kind like

cetera. maybe changed discuss bit what's has last just in et little going in quarter and hedge I few the months? So obviously what seen land on mean fourth has fund everybody

Thanks. here? thinking what's the bit your a has changed or change So little

Bill Stone

I there's here, really Alex. whole don't think a big change

also that that of that businesses, a kinds and of time I into is a think our we acquisitions lumpier deeper these and lot as we here. deals it's just taking get size lot deeper of have

just the trying a think and that the we're how is of the is to so have So that growth tenth out. I based that of range we a I still organic just deals wider. on sides have They're in percent think few

Alex Kramm

team topic you Intralinks to and selling I terms job they wins just growth bit doing deals was same but this talked past sort seen you're improve a in integrating in anything organic early I mean on switching of And that on of side? now. the about remarks of a the then the be stuff may or you there at heard of or then all any individually now. cross over just opportunity you I more fruits from on on before even that sales just everybody you what’s revenue Intralinks can maybe are not that reckless the some of labor been just a real buyings using already think working cost are that like that DST DST what's little customer existing happening the that or in color these hopeful that these better kind given prepared already on restructuring right are know

Bill Stone

think that O'Connor Yes, commented January Rahul the I already Domestic X. on said in of and and Financial as business. ground has I Officer Revenue since He Chief is people right reorganized Services Bernie came

I has $XX increased by pipeline he million. think our

competitors. really Danny think as their in We all an opportunities in opportunity DelMastro healthcare to we I of see country the the the on midmarket everywhere has see last two over behemoth spoken been three go the one business. the midmarket we big or otherwise has calls

for it. and So we we think opportunity exploiting that's tremendous us on a plan

and pretty or so. days we optimistic where to similar report about So we’re hope sit XX in we progress

Operator

Perlin Dan next Markets. question comes Your Capital from with RBC

line open. Your is

Dan Perlin

obviously the for question significant. take or - crank to DST million like him so what incremental way led And to guide is kind twofold, see the be all get up original kind was - get it there able to wondering My the I one put fast why you to I’m been happy raised is to kind what it’s synergies what going from the of here. is getting guess you of I'm secondly out bogie out clearly to to that of XX XXXX so? did

Bill Stone

contractors a it's be were were we Dan or we to billion trap that over, and what make sure about place we revenue. right. big We to doing in Again sober doors, pretty conservative right XX,XXX took wanted trying so XXXX were on and when employees, X.X stepping them somewhat

Services a right I Nick it's have a Technology more done is we release not the they've them and think think I Mike centers they Chief go who Financial really participated ways around had data Willie as hardworking opportunities or people number us. big arms other the Caiafa, our the So a they or legs and quite a Domestic that guy Wright is that that got big people still after spend have John internationally have more the really and made ones hand really our just The are job. we big has it and retirement kind Boehm Officer DST his getting of Anthony and good we Slattery big. helped spend, in a Willie's Sleightholme have to nice at whether Healthcare. They sea Jonathan capable Metzger contribution. in in smart or of Terry

Dan Perlin

turns of of get I deleveraging clear always of is to the leverage you anyway sort and now in is changed at right significant? the you're to X.X target by pretty of and Understood down get can X your kind been has update just just that pace XXXX,

Patrick Pedonti

on our X.X around it we’ll free use certainly current in paydown be plan to you XXXX debt times. Based flow all cash

times. four below be we’ll So

Dan Perlin

you And you to on deals D&A us of towards of and done down then I you know you got a is more that the we look appetite just lot you part just do on vein, that additional before it opportunities be so get that to can as to be But leverage get remind expecting kind market at and acquisitions. going the you've looks? there step other can so that, already appetite your should same Thanks. lot and that back do of to or in so in and is how is pipeline

Bill Stone

leverage the may sidelines. would as anything the unfortunate earnings cash X.Xx. our going for much hopefully, that and did in that’s radar. But get our that's what best do wouldn’t we're certainly increase strategic of debt all we’re that’s buy what's Yes, you on glued that's say increase point to and use the happens past We our flow. when in as so been to not We shareholders our we I and

April as think probably paydown quickly at were We’re of we’re we said looking that to semblance good I all debt in that And acquisitions have some million of going the XXX XX five tuck-in XXXX that's pretty we've purchasing. number. a possibly or of since them four time

Now EBITDA. XXX XX larger are few are there million one revenue there's that a million out in that in

one We’re those. not a of X.X for spending billion

So there and we kind get or not what are is we price. to believe what properties we’ll of have whether can out see discipline

Operator

from comes Credit Zelnick Brad Your next question with Suisse.

line open. is Your

Kevin Ma

so us in I early It's on question. terms update obvious be Brad, the cross Can apparent with may become you early? of that far still it’s Kevin are synergy opportunities weren’t as of seeing acquisitions know an sort progress targets. Ma Intralinks taking now And but what you for those thanks give so that for into more

Rahul Kanwar

three nice done had Intralinks job and Jeff about integration the and So we’re really process. this their Shoreman of teams Eze positive full is a we starting and have and Intralinks year both Rahul,

already have implemented We some synergies.

target process. for on that most on revenue certainly we that the were focused the at We’re creation pointed you the out start And of the you had or thing timeline plan joint is as know opportunities. the on

So management back-office services. in we've we’re system whereas conjunction and deals order some sold with and the doing middle already as

that to continue. expect We

services And We’re equity trying we’re also we’re firm firms and looking and funded to customer things in their of real the has Eze and and fund services providing firms administration some biggest world at the close administration our those that are product plans seek the the and Intralinks new that asset private to. Eclipse building. to many to that bring development in base for of their same provide then or

overlap some there's and started process far. so getting natural cross-sell So good and so that is progress

Kevin Ma

I the And in would the missed the that it synergies mind but quarter breaking of cost you with for each achieved were down acquisitions?

Patrick Pedonti

implemented are run right annual These rate synergies.

Kevin Ma

right. That’s

Patrick Pedonti

So combined are million was XXX million. Intralinks and as XX about DST at

Operator

comes next Buckingham. Hugh question Miller Your from with

is Your line open.

Hugh Miller

mentioned little opportunity the you You opportunity about wondering you're guys color could provide the in more viewing the how a had on the current in bit and for that flush I market that addressable business? of DST kind if And out for segment. revenue a little market maybe that middle was DST

Bill Stone

million XXX in forXXX is of in XXX million a revenue approximately current And national have to number million opportunities any our The obviously pipeline. revenue I again we business think. large

that. Optum business Healthcare and or benefit additional with that And Cigna in have Scripts. management is and health right Express administration with the by of CVS closed insurance now most our are optimistic the of We dominated just And some we country. Aetna businesses lots United and around there businesses health pharmacy think or plans pharmacy health about we’re

four two relatively three we if over to And the we we we’re number great a time next currently execute a short XX. So of shot period be think about or years. in number have

Hugh Miller

thank what number? Is for you. for other That's count One diluted a share below share for. XXXX looking guidance great that the and repurchase assumption there any we bit are follow-up just was color in

Patrick Pedonti

is repurchase in number. that There no share

Operator

next question Your comes with Peter from Davidson. Heckmann

open. is line Your

Peter Heckmann

that clarification that the through growth? quarter Patrick, so, think guidance what organic said implied admin? mean first growth a Just for organic X.X in if you If you’ve gone overall did and I would this, be apologize was you was X.X, had

Patrick Pedonti

alternatives business. that fact of XXXX the QX X.X in for Yes, was the

XXXX, QX, the range end. the the and organic is X.X% growth on mid-point For to X.X% is low X%

Peter Heckmann

treating And then Are going calculation and DST has attrition that if correctly, are you and hit was the year. remember to it U.K. you how growth thinking it from that I about this basis? organic some in

Patrick Pedonti

I mean DST in becomes organic right mid-April.

calculations acquired any the you, we the gave quarter, acquisition that adjustments making in we might first them. still point And we're So this revenue. at lost have not that they for not business before

this straight a just now. right is So calculation

Peter Heckmann

valuations terms had Seems was trends. acquisition from Haven't you Black comment, space growth; talk adviser area that much are of that Rahul, several prohibited? you really it's that like SS&C benefiting in Diamond seen right space thinking can an a the about solution; then present seeing And about made expanding space? how the from secular now? as in activity you that Are strong

Rahul Kanwar

set, couple at the bought we're we (ph) to extend got our link doing of we and I do combination bought to a really things to a solution Diamond in as business are and such at base look that. as we've on think other with I out and capability primarily the well things think some have growth and but deals that as as we're complementary And own We things will Salentica small that's acquisitions. or growth done think look rebalance they we way good ones. and in new products that a opportunities. core a Black now, Modestspark, our really some we'll focused at looked keep our to building general of I continue We've and we'll customer particularly we some

Operator

Chris from William Shutler comes Blair. question with next Your

is line open. Your

Andrew Nicholas

have about alts did of have This asked is business. but A one the for Nicholas questions actually Andrew on Chris. lot been my I

said market. negative you from at strong in particularly my quarter you around fourth quarter X% expect which X.X% growth first the organic given perspective or least think that is I

and bit where pricing something new launches, whether from So a could little in else? assets, you on to just new it you net expect fund from growth that wondering or expand where you're be if business come seeing that strength

Patrick Pedonti

X.X% think is and think markets did right, I middle the what I well. we in so as in that of those QX, choppy Yes,

very So services a for the from capability people primary we we're relative at them no of our for really got our good – source right. momentum pretty do are competitive revenue a then good takeaways, competitors, That's mandates opportunity. lot look new competing those where and everyday have we've than as sales some of technology standpoint,

So I it's been would source say for going in strong to that's growth that's so kind true assets predominant and that's keep guidance. assets very our of XXXX, very business, the our real we're equity business. Real basis in hedge private that also and true think has we going in continuing in and for particular the the

Andrew Nicholas

revenue then about understand might Patrick; maintenance be a it license looking in into of case? at Can me the like million why and looks that for quarter-over-quarter, P&L the quarters touch went each two but maintenance help same licensing cost revenue that actually million or looking of and $XX over last you period. And maybe $XX the one grew down

Patrick Pedonti

is the There one-time couple were DST that growth think cost And as of I that business [indiscernible]. helped structure deals in their last several the quarters. down license over

the So I there. that's think biggest impact

Andrew Nicholas

to Okay, DST. so primarily

Operator

Your next with & Mayank Company. Needham comes from question Tandon

line is open. Your

Mayank Tandon

over on but curious that driver could there that be on for of globally I anything be the it's the out if focused investors you your I to talk the over there's of business for Bill, regulatory past tailwind be not think more that been time? be any tailwind or might a in would a can see about changes headwind might horizon a you time?

Bill Stone

and rolling we rules some other McCall an our we'll changes Mike going have to Well, Dodd-Frank. means flushed a on going going what's regulatory a or Whether the as get fair I be really Same to little we be how a to going whether right, tell. there's think there's or of or along that finally number environment GDPR that side, going us, ones DOL out regulatory which Mayank, out such lines. to more with and either we analytics of easier too. to on not in good ups share those things there's sell for that But regulatory runs hard start are more that that think not that means we're business. which and be into the there's with get is on

Mayank Tandon

housekeeping is on levels Then for have the a AUA and at is may there end? FX expense for and think headwind revenue of XXXX what you've and that? also the also mentioned was impacted we account expecting is missed that year items; it I couple item how by you're FX what already for Patrick, any if I should that

Rahul Kanwar

So AUA the of $X.XX QX was trillion. at end

Patrick Pedonti

FX is currently is XXXX X in rate. of on if our forecast rate, year, majority saying we're January - about, there's about FX currently $XX of And compare FX which it's average million in And the XXXX to the you a those negative first months year.

to they business $X pounds. on lot as QX, in there's British million So since FX, have million of about it's about DST of organic $X million in when $X comes in QX and a

the in flat $X FX $X second estimate current the now based third $X million right to fourth. of That's million on is current million rates. in million So the kind about $X and the

Mayank Tandon

hedges on we should expense offset vein? some or that in FX the to items by be also expense from side affected the expect same Is

Patrick Pedonti

the hedges any Indian some that have going March. that rupee But on in has hedges. are other DST expense to legacy we terminate than don't

where I pretty taper we QX, in benefit a based on down. are in and for similar rates QX expenses today, $X.X So then would probably it'd think and million had be

Operator

Chris question with Sandler next from comes Your O'Neill. Donat

Your open. line is

Chris Donat

course the of anything first we notable putting over just in about the the quarter question the front-half there I'm expect one in you'd estimates it. of with in synergies should growth guidance for Because the in a math it and of we of our EPS the ask XXXX to want year, implies quarter XXXX? wondering EPS just as quarterly pick be with faster simple if the Patrick, up $X.XX you year? there the back-half thinking about Is terms expense of make course year, about

Patrick Pedonti

becomes organic little essentially growth half do QX for expect to when becomes Intralinks partial the in of the stronger second in quarter. Eze be and We year, a organic

a think QX and a growth I in and in then little QX of see revenue in bit see QX. stronger So we'll jump

Chris Donat

anything And don’t cost that should like on expense nothing side I anything duplicative the facility the like eliminator notable terms we big? know of in facility aware be of or just

Patrick Pedonti

from think don't India cost to we’ll probably million we’re something million $X to big be to anything mean it be in-house. going have that. it $X double contractors I a while, mean or significant transition for like won't operations some I DST’s might but I

with that contractors from to kind duplication transition we operation and in-house As of facilities.

first of is benefit the in until got So that when cost little first because employees and higher X cap. in-house a million facilities then related - in particularly or there will X costs We a the seasonally quarter higher taxes to are they have duplicate higher quarter you’ve of quarter the much bit we payroll in be operations. costs to hit India expenses are might transition have we as higher in the million first

Chris Donat

dividend, your one on of we and are And the a the ratio about our wondered looking I'm at the then look have Was that can of to leverage board if process? most okay Board did they quarterly saying ask equity afford sure Bill debt. higher dividend question year-end at $X.XX kind between the but into threshold holders dividend the at XXXX paydown it. to I wanted or and happy another how factor look the we’re so below the trade-off thought

Bill Stone

at that about custodians tremendous created I saw flow whole in of in we the I think be ability increase the cash QX the million. ended of we two-tenths and outperformance money in we and amount QX, to to I XXX turn were vast Yeah of $XXX cover a money of that QX, think shareholders on confidence think to – XX our million. generate trying will QX the try think our would applaud. that ways good we’re And is the that in shareholders allocate dividend I $XX Chris our majority

Operator

Andrew Your next question Citi. with comes from Schmidt

line Your open. is

Andrew Schmidt

we assume on your low end you what mostly for high comment the does about And when lumpy XXXX clarification and correspondingly DST deal FY talk pipeline a of the is revenue DST. for Just outlook a that outlook about think organic performance? then

Bill Stone

our larger I a side size our the standpoint lumpy an say the breadth increasingly deals and competitor. getting a businesses depth as from businesses. and are administration would capable Well we become both of both the it's DST The we fund first capabilities on standpoint expand

on larger. So the bid become of larger deals we the we the and deals then ask size that win have become to could the that size of have

So I we what think lumpiness that's and lumpy going to as deal. that's these create really talking would I I on a some say about am bigger swallow deals

that So take then second half question. maybe the you of could Patrick

Patrick Pedonti

in is about Yes, the try of million XX probably acquisition let year okay. revenue the in so yes, that range question portion million acquisitions $XX revenue the of that large range $XXX got think mostly we’ve acquisitions. which is XXX, about for guidance And answer I for was that DST million the me to a the is and

your does question. So that answer

Andrew Schmidt

was what It of DST of just the high-end the assumption more around variation kind and for low in the terms the end growth?

Patrick Pedonti

but. year or range for I think so of midpoint of Well X.X% at the the is DST the

Andrew Schmidt

Okay.

Patrick Pedonti

between probably is percent shift it’s There the something ranges. like probably another

Andrew Schmidt

revenue And discuss in then hedge follow-up just fund fourth XXXX? that a guess then how the performed expectation just helpful. to performance you will could if for at into retention and fund quarter that a be high-level I And hedge just then performance

Rahul Kanwar

revenue. talk performance I’ll we we not our we that and focused products look execution in of hedge many into services how have because on performance hedge our on So sales more general right cross-sell already ultimately we’re far correlated fund as clients as and about can fund to are

we mix XXXX kind think be And for again about and winners once as is of material towards fare extremely had view well really assumption I had have we client performance guide being we of didn’t can different don't right. that choppy then as that to markets a certainly future going do. because we we really don't and to So funds a going you we Patrick had when maybe talk we’re retention. what how to performance

Patrick Pedonti

retention last Yes, full for full at XX% the so XX months at we client year client year. on so we ended retention we for the the look if

Operator

Your with comes Stanley. next from question Brian Morgan Essex

is Your line open.

Brian Essex

know quick one as What been what guess think I what Intralinks. is just maybe like are for you to into changes guess and kind some sales be XXXX? I post ramping of a Bill mentioned and DST ramping is I you outlook the kind your productivity force just I of how up that you’ll for

Bill Stone

earlier the Well and Bernie the DST Services Healthcare as brought we our in we Business pointed DelMastro O'Connor Danny business in remarks Financial [indiscernible]. in Domestic in in we of brought and

have will opportunities. close what great adding are begin about to are opportunities we our our and And pipelines. to excited in you and people We we pretty as some that building to to hopefully sales I report and organization already were we’re those so group

Brian Essex

what in Any had versus better versus that once meaningful the know you maybe in of you productivity changes house other? of terms side the do business

Bill Stone

you out Clips, is the a Well big think provider that’s coming traction. we OMS brand obviously some as new that gotten called pretty they and a have product

As doing in Mr. that with are hurry, a good a acquisitions they think and Jeff aware Head of and I of our all Europe quite our job Owen we’re Mike as and of are Quinlan. Shoreman and

let’s pay faster operate at customers the our improves see our it reference. improve attention our if because in maybe same a we go time to way this and opportunities So way we can that

Brian Essex

take may then follow-up growth that if the Patrick, just I you quarter, was mentioned for could be but And can in alternatives organic off? you organic one think growth overall quick

Patrick Pedonti

In the fourth quarter?

Brian Essex

Right.

Patrick Pedonti

X.X% overall X.X% XXXX. organic At full growth for and the in of fourth the was year quarter

Operator

question next with from JPMorgan. Your Jackson comes Ader

is open. Your line

Jackson Ader

always margins. SS&C? that that and - for about is about at Bill from XX% of XX% target that talked first for would you to you, only already you it look I anything keep to you've know But DST that kind business as a it’s that year structurally we’re been there may had getting

Bill Stone

sure means job very the use a of make generate - or can really the that them that ability - well Well, satisfaction. margin I is XX% first we're think Right, margins two people. we and three think generally I one to hire use key we don't the customer is lot people, so versus person our to to talented places our we train

in they're with they're foreign that any so think also ex-pat. operations run foreigners. talented our expensive. we Right, So that general we but hardly don't we don't Not - use

we as And expired, places other move has don't until lease and try do to all will easier hit people. they out we those pretty jam leases. get do also tend the agreeable because breaking people break to So the well are stay then to lease that, going not together in it's that we We realize that We is just to that. people Kumbaya. to bonus remote generally do to Kumbaya pool people and them

Jackson Ader

call the Any pockets geographical strength for follow-up within alternatives Patrick. Rahul And a business of particular around to of question kind growth? then either out X.X% or that

Rahul Kanwar

we a I strong a fast the part think Asia-Pac has that very smaller be but obviously gets for been mitigated pretty of expect continue still in going us. that to XXXX. to little Right, business, so

Operator

UBS. comes question Your Alex Kramm next with from

Your line is open.

Alex Kramm

example little how that know Oppenheimer, you any there? bit about that hearing think example, I My same on market then any end in is follow-up more Invesco, here that think expect of in may real just specifically already don't actually that benefit of on kind talk that there, a M&A, what's and for think we've guess thought talk the also what you. talk you I in mean, markets end impact thing spending, but like I picture maybe market I we for you? may seen asked I'm but they're about it DST's actually picture while and so was I I happening an you quick, just to executives lot bigger are bigger comments how can when there? a expectation still sounds and

Bill Stone

manage, some Well, course know But they're end of wealthier, those markets. of that I paint. to is there's markets passive there's are dooms some and to money headwinds day not people lot as end getting great The you - world said it that is active. of scenario

a lot about ours and of groups are those close clients to technology out to coming services and really products new of delivering very We of that them rapidly. more getting we're have

advanced workflow hurry. which really highly, advanced a product, is we're Our generation our in work and highly, workstation functional. new distributor, whole out - building is a a And

we quarter product out rolled which in of WalletShare quarter was of in Our in to XXXX, XXXX. out the going rolled the we first rolled be Europe, fourth that

to going clients, their So your but to businesses accelerate a for and if you accelerate to advances their to start standpoint it's them the ability on cost. manage their both help technological in their it's accelerate businesses also revenue going

Operator

Your comes Rosenblatt Ken Securities. next with from question Hill

line Your open. is

Ken Hill

side of quarters overall couple on might just margins on thinking I you've of seen nice here the couple to with How think back you XX%. progress questions guys? rest that this are DST, bit maybe you over touched kind for this the about as lower a have side know but you that past expense get trajectory revenue little would year and of XX% higher push the what kind things throughout of or you on could the or

Bill Stone

by centers Obviously have I obviously have have teams of are think used of - data people have are at DST, we processing data centers we Eze, used the processing we processing by working and that things. data centers kinds all centers. historic data Intralinks, processing that used we are by

probably of out I came job he been are effective performance us. and new cost really highly and lot so for great he's very So Anthony who's Bloomberg with three capable, expense, Technology That's make to a of has Chief understanding us has. and very objectives redundant Caiafa Officer think and our talented, that doing XX very months, a how

with he's done and has so he a And great of very far job talented him. working number people

Ken Hill

one expense I one modeling guess interest from question. just

Just any the you guidance provide as the can have, aggressive given debt of expense issued all pay down and coming you interest far the for quarters up? couple as next guys

Patrick Pedonti

currently rates plus in and We're where today they up about from back our annual plan bonuses it'll Well, little that's our cash fourth X.X%. Typically at we interest quarter. to use at third, because expecting X.XX. the X.XX%, LIBOR pay slower to stay is pay we when down stable a employee then all fairly flow pick our second, quarter but debt. free first We're are

currently the and pick assuming than first stay pay stable for in other down and then - quarters. first it'll we're interest be rate will quarter slowest then that So quarter debt pretty three up the next the year

Operator

There further Stone. over at will Bill now I this are back time. the no questions turn to call

Bill Stone

you of you we some call rest for in and forward on to Again call of and to the then person look next thanks to everybody Thanks. you quarter. talking the listening our

Operator

concludes call. today's This conference

now may You disconnect.

SS&C Technologies (SSNC) 14 Feb 192018 Q4 Earnings call transcript