SSNC - Earnings call transcript Q1 2020 | SS&C Technologies Holdings, Inc.

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Operator

Ladies and gentlemen, thank you for standing by, and welcome to the Q1 2020 conference earnings call. [Operator Instructions] I would now like to hand the conference over to your speaker today, Justine Stone. Ma'am, you may begin.

Justine Stone

Hi, everyone. Welcome and thank you for joining us for our Q1 2020 earnings call. Relations Technologies. Investor Stone, Justine for SS&C I'm With Executive Chief Officer; is Bill Officer. Operating and Chief Stone, Chairman Financial Rahul Chief and Pedonti, me Patrick today Officer; our Kanwar, President and

we we need Before started, to the statement. safe review harbor get

we various Private of we plans, safe outlook today about constitute harbor of Securities the forward-looking Act statements provisions Please prospects, remarks future the the including Litigation note Reform XXXX. make that purposes under financial provide, expectations, for the

from materially forward-looking XX, our a on differ our Actual indicated today, important by including these the any as to file as of while may results statements XXXX, forward-looking only annual in disclaims Form of statements forward-looking those obligation SEC elect is so. on Factors with can result factors, website. report do these which represent most recent statements section be and various expectations of to April XX-K, the also company accessed those the may discussed on specifically update it These Risk our

we Bill. session, turn that call yourself to please limit will and I one And the Q&A anticipate question a you to now one over request follow-up. As lengthy I

Bill Stone

world. safe I our of Thanks, the hope home. at assumptions everyone, remainder the quarter as our us for for for yours and are year Justine, navigate the and discuss joining and results you thanks, today. COVID-XX this healthy and I'll walk we through

quarter are up diluted up share, the billion earnings first revenues, adjusted X.X% million results Our in adjusted XX.X%. if $X.XX for $X.XXX or $X,XXX and in per

strong from growth for acquisition in with to close our growth. XX.X%, fund margin business over our and QX DST terminations by X% adjusted This organic up alternative performance that revenue $XXX.X EBITDA adjusted adjusted Our was year. consolidated of X.X%. XX driven points basis last EBITDA was administration was prior was the QX million, consolidated

QX XXXX QX. license pushed through and Business net up activities came work distancing XXXX. home from into was February. strong operating sales from cash in $XXX,XXX,XXX QX In some from million at social March, $XX.X

leverage Our leverage restrictions, total ratio billion you net debt ratio that are $X.X light max times plus our turns secured relevant, secured X.XX three Term room. X.XX our know, with times. are was to a on being was with and as available times, us only in of leverage net leverage available net X.XX represents

times. in are We unprecedented living

We review contingency taken plans personnel and have delivery. steps carefully and operations business covering prudent client

intended. minimal Overall, XX% client global SS&C have employees, We disruption to had and high. our moved protect as client we of have service in validated remote. now is operate our remains and they swiftly workforce satisfaction

during create the interest processing efficient from have home. the SS&C height We settlement services more to our operation. seen take ALPS uptick were us with crisis and on an clients for their One to they as example a outsourcing asking in is for customer of challenged resilient the work

Software saw a in Eze service client client Our inquiries. XX% spike

technology level the and Given long to increases, service. Health Vidado state worked our deployed our performed The team handwritten has documents and deliver products local volume scan SS&C outstanding remained service and hours continued SS&C high. to and government forms. AI-based to unprecedented

the to pandemic, surrounding guidance. XXXX we Due are withdrawing with our uncertainty local

our slides our earnings cash scenarios different margin on results given These are six and Please We best climate. and assumptions. our flow IR five refer to slides revenue, based economic possible website. posted scenarios, providing are current on estimates of

less over that $XX revenue or economy million a QX, means scenario, than $X.XX little QX, guidance. we our guidance. little recovers we flow or of recover million previous over than the until for $X.XXX expect don't In to If QX In have margins less this a in $XXX previous $X.X we our of and revenues scenario, our XX.X% the we expect cash billion EBITDA revenues billion expect that operating year. billion

scenario, $X.XXX and billion this operating in to have cash we flow. margins In EBITDA million $XX.X expect

QX XXXX see expect guidance. recovery $X.X operating EBITDA less margins in we don't We'll economic if million until our revenues have XXXX, and or of Finally, XX.X% than about previous we about cash billion $X.XX $XXX flow. billion

the turn impacts now call to Rahul, I'll the over depth. discuss to more in revenue

Rahul Kanwar

Thanks, Bill.

noted current non-AUA-related administration even see and albeit alternatives ranges. environment, XXXX, We're grow historical due have at up We will business our expect continue minimum end our market drivers. while thresholds fixed be that revenue on expecting the to various face hold this muted, of we're significant through at impact times of to in to the we fees, the fund volatility, pleased in to business lower the

sales primarily is wealth conversions. new the to large-scale and delayed in level switch on eager from customers due are delayed reduction business new some from where for while and business not mode launches continuity funds, delaying in and declines. impact agency slowdown new to competitors, scenarios retention The customers high our but asset client transfer The decisions assume

negative the of financial FX reduction businesses, benefit see In also new and on from volatility, an market Eze, get interest software pound the largely including OMS We our trading incremental in and some EMS offsets from British which trading, and software sales. we reduced balances. expected earnings markets impact our software,

M&A the a benefit data extended assume derive and from the current in remain At resulting Intralinks, pipeline longer still usage. rooms new our deals, scenarios open revenue some decline, of

to as pivot We such have restructuring to ability corporate other some applications of the rooms, efforts. also data

see growth result institutional particularly are expected reduced to investment software until customers Our a as conditions normalize. guidance, of delaying and Advent new license purchases, our management and initial from start businesses, to

slowdown SS&C Health, to on mandates. continue in purchasing We in with decisions new some demand see

by we the claims expectations. reduction activities around XXXX is Algorithmics preventative is business expect initial A high-quality which a with spot so to we elective up $XX guidance scenario, our the a and have procedures. Algorithmics, management. offset have bright million. on recovery in driven is of processing, in talented medical COVID-related be revenue high high-end And

technology. SS&C's including customer deals existing services key A managed long-standing with development. relationship Health, some and XXXX. provider care mention SS&C with retirement for QX DST services, a with will client we extended their through outsourcing Now interface An shows professional relationship

bank wealth chose of Kong SS&C sought data upgraded AWD private a New admin SS&C's operations. its multinational A large arm middle Hong their single-family and GlobeOp to platform. existing improve SS&C's An management through fund model, The services. core office capital client office enhance fund York-based, platform its SightLine

office, existing administration of a their SS&C a this to contemplating allowed An in their expanded to billion previously processes solution their Advent relationship were of deep provide SS&C family quickly. partnership internal accounting. They for products understanding assets A funds. building GlobeOp us firm suite structures fund A and client chose real fund $X trust assets including in-house. include a

Connecticut-based A Middle manager analytics capabilities fund and existing portfolio APX access the East, AUM client for from laptop Eze platform. based analysts The tablet. asset $XXX million and bank or managers Syncova cloud to A in Greenwich, licensed with Investrack. upgraded to hedge Eclipse firm the a was the an impressed

I turn now will financials. run it the over to Patrick through to

Patrick Pedonti

Thanks.

acquisitions. first for XXXX for revenue of Our of for million results of net revenues impact acquired income GAAP $X,XXX adjustment the the XXX million, revenue excluding adoption for GAAP the $X,XXX.X and the revenue Algorithmics was of million, was the EPS $X.XX. of Intralinks quarter $XX.X and standard DST Adjusted deferred and

was Adjusted Adjusted revenue over X.X%, strong $X.XX, QX Overall, XX.X% XXXX. increased we income increase X.X%. was diluted a a and up had quarter. EPS operating adjusted

million acquisitions $XX Investrack, in XXXX. quarter. increased total in contributed and $XX.X or Algorithmics of X.X% the Captricity revenue over The QX million Adjusted

Institutional And Foreign Management strength driven of alternatives the million had growth constant-currency X.X%. by $X.X basis Investment impact exchange X.X%, on the in unfavorable an or Eze adjusted a and businesses. organic was

X.X% the Adjusted $XXX.X XXXX. million, operating of first from $XX.X quarter of or income was an million increase

$X.X quarter XX.X% exchange a of the Foreign of margins XXXX to in in on in first positive had And quarter first million operating the impact adjusted expenses XX.X% the from XXXX. improved of quarter.

Adjusted revenue of million QX in for in consolidated million was $X.X which EBITDA, Net and $XXX.X non-cash costs $XX.X interest first and over expense X.X% was amortized of release, financing Note and or XXXX. million earnings defined increased OID. adjusted the quarter includes XX.X% is our three

compared quarter XX% the first pre-tax X.XX% notes, average quarter a $XX.X The quarter GAAP to or our including the of tax recorded XXXX. the of senior in of the in income. rate facility, in was We credit amended million provision X.XX% for

of depreciation was adjustment costs, $XXX $XX.X of adjustment to OID; amortization XXX to net $X.X first to related of of mark-to-market revenue related costs million of deferred severance and impact. compensation; income non-cash and million for related million earnings $XX.X adjustment, our rates intangible million reductions; and excludes of debt of $X.X assets; in amortization Effective adjusted of costs revaluation million financing mostly million to standard; on extinguishment purchase $XX.X foreign $X loss adjustments $X.X Adjusted non-operating was used $X.XX. and staff on related $XXX.X exchange repricing of $X.X of the revenue adjusted of tax stock-based quarter; including million million unconsolidated XX%. income income assets; and net was and affiliates; amortized and million Adjusted of EPS accounting $X.X equity of ASC of investments; million, million loss we $XX.X net million of

and position $XX.X Operating was of quarter, we $X compared to flow million XXXX. cash same March cash a increase of ended or in our On for approximately months net with the the $XXX.X cash a three for billion. the debt flow and X.X% cash million approximately $XXX million, period

million debt from $X,XXX of we $XX.X on revolver since as necessary. our highlights to down quarter, near-term acquired DST. a few $XXX million debt million, and provide A our of liquidity -- borrowed paid We've gross precaution we if we the paid

we last to the million paid In cash cash taxes period In paid the quarter, period year. $XX.X last same quarter, year. million the $XXX.X $XX.X compared to interest compared of of in million in the same million $XX.X we

by payments into Act. the as be We QX our deferring will provided Cares tax

was year. leasehold to of days XX.X period revenue $XX.X software, million mostly days of or $XX.X declared same million XXXX of capitalized expenditures, in In DSO XX.X as capital IT we X.X% XXXX. receivable, million, And quarter, the as we and of increase Accounts December the and of days cash, improvements. dividend $XX.X adjusted from used XX.X March last compared an a for

$X,XXX of LTM and times. the March EBITDA times acquired $XX secured X.XX Based leverage was and to ratio acquisitions. total Our X.XX debt consolidated $X billion, of million as our of million and about on cost includes was related was savings EBITDA, net

we're conditions, our market economic the providing year recovery. On our due three for and unpredictability the view of timing guidance for scenarios of specific the depending withdrawing on to year, the and the current

be in outflows assumptions to we've used will and our will be scenario, impacted, and to be deals that markets will and launches our will inflows business assumed be in A we've fund administration continue volatile, volatile large-scale continue fund AUA, outsourcing few deals delayed. license

assumed in to service, we're client our use rates rates But retention we'll plans on retention and be the our as our and Bill focusing recent mentioned, high, continue for will most year. be

year Foreign growth as plan. million the result, and currency exchange, the levels, our will plus current assumed XX-month in that assumed term will between the approximately and Adjusted approximately loan range that impact bps. be year, current for facility a the remainder adjusted compared which current -- X% organic of negative rates business will is our we've in the X%. XXX be We've interest original $XX LIBOR the spread, our for to

manage expenses we'll and by be side, hiring, business will for and controlling in this expenditures expense our staff the investing revenues. X.X% variable of continue expenses the approximately but period long-term our during capital we'll On

rate, in tax rate adjusted earnings range of tax we've the On XX%, the be XX% GAAP to to for the for XX%. assumed

Difficulty] [Technical

Bill Stone

drops. fairly Patrick So

$X.XXX the economic that million and approximately income third we billion, shares of assumes XXX.X conditions results: start of diluted scenario billion, first quarter operating adjusted $X.XX in revenue XXXX. billion. following assumption, cash expect of Under improving net adjusted $X.XXX the the of this flow So

economic start of The second that improving quarter conditions the scenario XXXX. assumes fourth in

revenue flow billion, cash assumption, and billion, we Under this billion. of million adjusted income results, the of of diluted of following shares $X.XXX expect net adjusted XXX.X approximately $X.XX $X.X operating

of The under $X.XXX billion, conditions diluted of million that the billion; flow and improving assumes billion. XXXX. approximately we following $X.XX income cash XXX.X third expect adjusted start this adjusted of operating shares scenario revenues net $X.X the of And assumption, don't economic until results;

turn over for it Patrick comments. will to now final me

on thanks, But Patrick. pass thanks, the up can You Patrick.

basis. adjusting We evaluating service are all are this and new our operations, an ongoing normal, productivity to we and customer on

flow and strong trying times a generate the reiterate equivalents for billion and in of in these are $XXX.X cash $X expect in we to resiliency business reported at of year. SS&C's as cash cash We March XXst, We least model. to million the operating company

same, we strategy paydown in capital Our prioritize debt towards will methodically high allocate opportunistic allocation will and remain and quality capital manner. the a acquisitions

services with a and to base market client XX,XXX and of billions. want of its and open sells is a strong a questions, addressable which I educated worldwide over and As we at SS&C begin workforce, hundreds highly in products to call stands reiterate, for the company a total to SS&C markets the strong. productive XX,XXX

with IPO cash on SS&C a disruption, has or we SS&C who, flow little per little respectively. revenue, redeployed no its to workforce is nimble and of Since innovative by our XX% and -- our company XX%, March and compounded or annually XX% work-from-home. share XXXX, adjusted XX, XX%, with revenue

open now will up I it questions for

Justine Stone

there? Manisha, are you

Operator

Yes, do the we Alex Kramm, a UBS. Alex have line Cram. question from of

Alex Kramm

Yes, you? all for hey, Thanks good Alex here. how are Kramm, UBS. detail the

level. -- the retention things that going rate XX% is your assumption the out remain that of your one to of me this on guidance, One at to stood was

I'm the this there's a funds out why I question this that, maybe you didn't I to takes the be this may puts of it is environment, wanted what bit make guess, under? I little hedge outlined, certain I a touch worse? saying, so flush mean, a and comfortable if what it? why out get is going more guess, bit really I is that's or a I to more. risk little guess there, could results, there you just bad if you and are carnage into which is a are XXXX Just is that mean, flowing

Bill Stone

obviously, won't shutting head. mean, what so XX%. very the you business, doors. Well, have the Alex, we I of goes nail little out But If the hit is on far, seen out everybody be it

the business, companies to you or in as to saw launch. where think more you administration I in X% had that the it's most But quick banks major mutual seen growth QX, of fund we complexes not fund don't major fold. as of and have most think the are insurance We or going

no be has looking So business I a this our strength, change three, really private it's think five they this it and focus -- space, they you're and resilient, at top I four, short-term, could shown equity. we've alternative quarters of an on to -- it's the to catalyst remarkable be but the think house. not and is it hedge SS&C's a it that the growth, may seen and And And to need all be have really out, do. the going in and continue. fund will not -- a we way all they're And administrator they up experts, certainly not

know don't Rahul, to if So, have I add. anything, you

Rahul Kanwar

six weeks figure funds. if you to said, which Well, we've I they've are in at and is with I were activities what what this current seen some going more would how looking us. environment business think, the slowdown just that seen echo out plans we people But to to more anything, eight in continuity opportunity folks have can start their what in is outsource are where customers, new if trying to and they done last

Alex Kramm

one becoming you lever. of were of messaging bit All queue. But quarter back just pricing jump the Great. a things one, right. bigger a the little was I'll then last And and another maybe in quick that

Just basically now? Or people different in is table? inflators just environment, wondering to that story right we again, is as be worry more, to that going still are if next to the off kind that of a about Is this this things that have maybe happening? need revisit year normal

Bill Stone

calls, have two Well, a on as of implemented this. lot we the I last spoke we -- mean, we

That us, was XXX% was probably guessing maybe. XX%, us the behind Alex. XX% it now, range, in So maybe XX%, it's I'm doesn't it but behind mean

or And and is really center not transpired see modest not nearly depending it on increase revisit, in December, it's what's maybe now we'll And sustainable. again was. then December. whether and we'll front between a obviously, as So as

Alex Kramm

enough. All right. in I'll Thank queue. you. back the Fair jump

Operator

line We another of question have Schmidt. from the Andrew

Andrew Schmidt

expect Hey, you QX as taking guys. just on a about questions. revenue a could it trajectory growth? this talk should to Andrew revenue my Or on bit return you for just recovery, cetera, Schmidt on Question QX et from that throughout progress is terms And basis. you of year. what a when Citi. a quarterly when in quarterly more little think we Maybe comment clarification, a Thanks comment just we bottoming out? recovery, about is the

Bill Stone

then at trying give Well, the rapid. all to not accelerator maybe the is but say is -- as us maybe of looking comment, Andrew, the Rahul we're that, COVID are you're I do being think what that scenarios pandemic I'll you an comment trying to I can your company. is some and in businesses, would Gilead rest unless or our pharmaceutical The navigate other to

get hesitant delivering we board. licenses, the that approval don't And so from launches are has the capital you sometimes fund an are expectation scenarios which large to expected. we the see improvements, us perpetual get yes, to that you about capital People

So business think are in there's likely. of a are lot outsourcing that, large-scale when people continuity mandates mode, like less I things

And so world's could comes economy yes, this to strength. back Rahul, happen is comment? what full an you analysis would of while the

Rahul Kanwar

Sure.

I in that the assumed towards scenario end assumes to things QX in is recovery the terms general, think start QX. we've the what trajectory, of normalize of

QX our is scenario, the QX almost we one In the as good and previously. So quarter same delayed. quarter a building -- as it's have of thing, would way but we're up QX anticipated back is nearly perhaps

So so again, see until from don't And buy doesn't benefit that again of forward. XXXX, work. getting timings. quarter QX end things normalize better we're all historical XXXX. that and back are people start the just the full These the of to of until start we first really year, the the to at happen. levels people XXXX, to don't that end really of that is towards once are of And going assuming In QX, these in

Andrew Schmidt

implementing the of are context. the what to scenario in hearing terms the slower can clients of and -- just consulting is with Thank question But from mean, just proportion comment what you're will -- of positive clients what's guess, get about you And better is back maybe in you've my to that? revenues like that analysis, been pretty the in of, correspond just a to that, just proportion some like a with cycle? what when I made you. just follow-up, Okay. that. things bit can clients see just implementations recently. then maybe just comments maybe it versus That's and delayed sounds a little for outsource what start terms prepared and talk you they hearing more solutions? on sales then Any And I helpful you be how

Bill Stone

mean I've we talking at in again, complementary had marketplace. been levels, to and most true week our most we Well, of our been not this have lot I and to I it the two, we can our the -- I clients response have and services a COVID-XX service. did people, and crisis, of XX,XXX why? And quite understand, know XX of senior or redeployed if disruptions don't in that's financial around a them

a So to where And back hill. through things when chance say, that's you when that never to light come can I differentiate then can be go And be a normal, to to can start again. and crisis a the you on we shining yourself, think I want I people have in turn?

of and the we that us our away, times. have these to got just the and are to going to fingers be all it don't snap continue diligent. goes goes we're but think easiest And I of to so hope away, We've pandemic execute, not

great have think think we I have I team, focus. that's to doing. and they've We been what a And

Andrew Schmidt

much, Thank Great. you guys. very

Operator

a have do Peter We the Heckman. from of line question

Peter Heckmann

recent two us are aggregate give analysis? that your Could possible, Captricity pending the the revenue for Hey, you in you in acquisitions if afternoon, estimate everyone. a included scenario me not And of deals? good the and most the confirm could

Patrick Pedonti

Yes, this Patrick. is

$XX they've in high remainder And Captricity, had of hard June close idea, XXXX. but and around you give was about in they revenue $XX the X, have in to single-digits some revenue. Innovest million predict, million it's they're for probably assuming to probably they'll the been were growing then And year, revenue. So in -- an the probably of this of impact year -- we

Peter Heckmann

Patrick, that's Capita deal? the

Patrick Pedonti

Capita. Capita. That's is Captricity already included.

Peter Heckmann

net you just slide X% on the then fund as of And see Perfect. Rahul, is between can you just color the us last AUA, of give on follow-up, just on little right. of deck flows sequential a that? bit interplay All a right. about talk market decline. within Can funds, That's action the -- a I and

Rahul Kanwar

Sure.

sales the start So particularly we a of quarter, pretty had good QX. at

our equity at there into there's particularly is, and good see see So those The end hedge business and to are have as we in some real assets both And in included of current some assets asset recovery as starting as on. our well. -- obviously, -- March, did there sales business business levels private funds. coming market we and the inflows continue fund to declines well in good

Peter Heckmann

in Got it. should And we notable it. Got any think about? mix the that change

Rahul Kanwar

not really. No,

Peter Heckmann

Thank you very much. Okay.

Operator

Tandon. a Instructions] [Operator from line the have And Mayank we question of

Mayank Tandon

Bill especially of Good thank of a the later scenarios. Well, piece what or better visibility not is be you piece But that maybe more is might could various want or the render recovery you. recurring Just a Rahul, you would project-centric visibility feel in as on contract have evening. under could long-term some the variable vulnerable. is XXXX? maybe the that in to get then the for much downturn how truly of the of scenarios be have the revenue terms you is and comment these more which prolonged, under conservative that exposed, that

Bill Stone

the it dramatically. to impact. through March It just depending various we when more crack have revenue various let I'll not so volatility more you But can continued that Mayank, our does asset side. the or Rahul has Well, and a like impact saw funds revenue of about -- point that kind and have the think side prices the that April, very a asset in values all is private from quick get from in ultimately hedge swinging take you on basis in equity we decline like of sales comment. per funds fund But kinds funds, of buffers streams, components charges has that of in and the

and per per financial and returns like that or that, tax charges. do are We statements piece year stuff all

asset recurring our have software think, ASC maintenance anyway. on term and fees, values XXX-defined we revenue Those already with our are do is not -- and our I are impacted other The similar, contracts, not is impact. maintenance all licenses, in which set on

our recurring of or that is FX that all will business impacted. revenue that is of per gets it our to almost not The on than be volumes that, of on our trades, volatility we or on more by revenue So paid asset tied data network get values. number piece some Eze's like, businesses that will be and

Rahul, insulated. pretty can we're you So add? maybe

Rahul Kanwar

just I have degree variability Bill, the of think, driver, a some I tried external we've to tied would where those. conservative on in view add to do that take businesses we some

Mayank, we've visibility far what's the seen have what as Bill said get so we're not, into we've do on good will based then, think business, now pretty a but earlier, in maybe So lot visibility. we I pretty got -- what things and -- worse good okay

Mayank Tandon

one just to expenses do you more And of, that again, one Patrick, if could early laid how And that beyond out? in the were XXXX? you levers Thank for case more prolonged That's to pull much Patrick. helpful. have very then have them downturn the a quick you goes size you. you

Patrick Pedonti

projections the for think three million expenses the of took it's year. our But it think original I I somewhere million and out ranges $XX $XX Well, scenarios. that from between to we

Mayank Tandon

it. Got

Patrick Pedonti

down from also being We're significantly quarter. LIBOR this benefiting

But has our we've that's rate item. dropped significantly on LIBOR. XX-month from quarter rate plan, so Now the LIBOR us for LIBOR the helping the line in out, too, interest first the assumed

Mayank Tandon

Thank you.

Operator

question your the And next comes line from Jackson of Ader.

Jackson Ader

things the Jackson over you large on. delayed, launches is that downside, have assets Bill, being Ader deals the I delayed. on products But large either Great. do they see fund delayed get getting maybe time understand deals. or to are purchasing either outsourcing in to that SS&C? JPMorgan modified from deals maybe or Thanks. any moving fewer I It's question more the are risk these less

Bill Stone

the going to really be I that. Jackson, it's know, opposite You think of

back business. you other to If kind things outsourcing the services that go investment Madoff rocked of really and

wanted You know, run People people strong People wanted experts controls. things. businesses these were in by independence. that wanted internal

right? accounting like businesses, accounting and systems So these really banking systems. It's with are businesses, these systems businesses. They're doing businesses, accounting are so not they're

three we think here living people to fashion. that are by And all an have. expert talking somewhat you're we a the for people of understand in What what accountants they And that training. I XX,XXX do

with enhanced, So to right? move greatly ability quickly is our and confidence

We're used to or FAS and about. ASC some rule rule very or or taxing and XX XXX other are arcane or EITF authorities FAS regulators XX that accounting XX-XX intense reporting

I saying, start that's get steeped and they well, a think significant things we'll better clients look beneficiary I So think somebody around we be really these in and that. of

Jackson Ader

out And makes little sense. the took follow-up Okay. quarter. That you debt revolver bit then question, Thank you. a more from the in particular this

how of be debt recovery, some either be of time of may thinking should levels paydown? we to upside the the or some of either of -- lines at pace these we look -- As maybe about

Bill Stone

in flow. operating impact the XXXX. I in one $X.XX the most think still three Well, expect billion in think will with recoveries I all cash scenarios, be We

to money our for our obviously, and pay expense. So interest of we plenty CapEx have,

And capital million a allocation the obviously, when with my look standpoint, $XXX that down acquisitions. we we that you so at -- good pay debt. of can a from guess go do like that to vast will is And majority

that acquisitions interest a we good any in businesses There for marketplace the done we're hasn't take reasonableness at years over we are if at of the and been getting this have historical rates couple think really year, I reasonable low. prices. last

So to are number gains their we would equity companies things had and and that are these for rates for people they interest see private think for great where that SS&C spiced. looking be and general get I operate the gains where are mean, now firms with very And and and something in prowling the may anymore, to even want feed pack. the capabilities that difficult not entrepreneurs I of

So we're there.

We have the capital.

We expertise. the have

the where are. we so we're have We capability, and management optimistic

Jackson Ader

Thank Great. you.

Operator

Sabadra. question of We line another the from Ashish have

Ashish Sabadra

you could quick any Maybe missed Thanks guidance about give for think growth quarter? should of the a just second how question. the or taking on question. in color my it, If I we kind

Bill Stone

No.

Patrick Pedonti

We not. have

Ashish Sabadra

a Okay. Patrick, cost expectations seeing margin cost color there takeouts And bit just exceeded on for and Are has a opportunities maybe margins. but on front? provided margin the then we're like takeout, quick on some on always you the question some for the margins. historically. more here potentially the The company pressure

Patrick Pedonti

Well, -- think Bill. go I ahead,

Bill Stone

Patrick. ahead, go No, Go ahead.

Patrick Pedonti

announce costs, Under quarter, did cost and workforce, some into continue in that additional workforce in. those bring staff will and that the to amount, then an this first We got we've some bring us India did built Yes. -- funds. our in-house reductions costs, additional plan, contractor, savings DSTs save variable reduce we so we we'll

So, while of other reductions business in included a cost amount assumptions runs revenue. at we've this a the lower additional significant

Bill Stone

And our all of are almost variable. costs remember,

that we entertainment, So what spend go to the spend the monthly? has millions we that who kind to positive lot being are to cost to the all and going in way. And conferences for is American structure the of profits, to business, to do all be proved which have change flexibility need change. now people you various think, and a like do of done virtually? on that millions -- need you mean, I now COVID-XX going -- So is, travel it's the you of I And spend a

Ashish Sabadra

pandemic. to Bill a very in That's a on the helpful, Yes. Congrats resilience solid the revenues quarter, and once see again global it's and of even good Patrick.

So thanks.

Operator

question James line next from Faucette. the comes our And of

Jonathan Lee

James Jonathan on Morgan Stanley. from is for This Hey. Lee

be of your the the disruption you prepared mentioned year? during rest you and you the a talk you that that some question, did think Can disruption see whether remarks. First minimal of in will headwind through

Bill Stone

that we and were India laptops we the home mean, good of really India, at telecom the work that only Well, so some had Gurgaon of routers, remote we thing areas the have that as upgraded make speed. to make And had Hyderabad and they them people on. Mumbai sure thousands lots up-to-date possible Pune. or in all also think -- gave a out to equipment sure shipped best of in infrastructure, to we I and when and shipped They disruptive everybody I didn't around in and we

Anthony and an I those team, Caiafa's and people I've team and really in any do here job. that number did the disruption. they appreciate the it. you, all people continue mean your Australia all in guys, U.K. outstanding at of have IT thank India, the of we job are to and a points Our outstanding or were first, real senior and people an India job, the major your talked to But the comments in our any us, clients, great done and for nice team

not come high in comments, of think the So we're that's not in back the pretty of -- something that's you but I grade. calls our right? that's reconciled is business, the kind dudes, and get office how yet, mean I kind I general, not so

Jonathan Lee

Got follow-up, asking any pricing concessions? it. customers as are And on for earlier, a Bill. there Thanks, touched you pricing

Bill Stone

have have I for don't pricing know we specifics for don't we asking can that pricing I asking that on tell people concessions. people you increases.

Rahul Kanwar

been or reductions systemic we really things for usual. And I'd demands that. that, as like to seen business Yes. any just price add haven't really Bill, It's

Bill Stone

turmoil like like about real turmoil, price. there sitting When you're asking not there's this,

how sew. about stitches, somebody asking if You're to knows

having quarters, operations. over multiple that stuff we're God, to have think our And right focus? done. knows who Thank I next or you. not that need into our own in whether internal get we the comes trouble But enough So we now,

Operator

the Alex Thank you. of Kramm. question next your line And comes from

Alex Kramm

Hello again.

things guess, of question specific a little if wonder of the earlier one in provide There was couple a I I of can bit be follow-ups. more little kind you've on a quantitative Just outside and that business more, item. some of actually your outlined. sensitivities you bit the

very Eze contributed saw. would So higher example you volumes that the in trading interested much from how for be

that give and sensitivity can has other also like, some on an update maybe acquired market the example, I you past. the us then updated us there Maybe market businesses think, in you've business, sensitivity. You've ALPS for some since

may much maybe then Intralinks any the items other around I M&A And transactional. how more, of and business guess, be

So I know those were four things.

dimensionalize to that another those think one move If could still really you things others, in a it few about guidance great be this year. your or way can would

Bill Stone

kind for think. for those million. that I Protection not businesses. the about million banks backbone just deliver $XX it's largest $XX you mean, of Program Intralinks has one I think you're I Intralinks, range of tell And as much you're the or as been having the Alex, variability country go the impressive been then Payroll is U.S. maybe to pretty the the in Yes. would amount you through the talking you of might government. that in

that's also So strong it's quite dead. not help great M&A but that a for business. And was, been really business, not they is and what a have it obviously,

position comes strong we'll think as that in a back. be we So

about we businesses, we earnings, growth. cash and The flow we're other manage and like revenue also conservative and for it

you okay managing have in billion So out business I business. companies were about you million, now you without -- out to tantamount really that's if of of other going or think going $XX and manage businesses, $X

now it's But will right? not million you same have, in it's don't bonus our not $XXX this accountant may get think it tax I million. will big charge the hey, UBS. your That's a and the general -- guess My was revenues same. now a that Well, we You $XXX thing, get impacted. as at is quarter year

Alex Kramm

pretty sure. That's

Bill Stone

nature the That's if your our raise me, X%, to he fee you tells Yes. okay. And business. of say, wants

I So volatile sometimes the it as on to think outside. as it's looks not people don't

Alex Kramm

All right. one maybe just for last then And me.

where sounds strong capacity, that it M&A, the max your in assume but and like are I billion is guess, -- ever, your even you on is high? going Or back you mean, as in the going I would mentioned that capacity. comfortable I remarks, it's $X.X Just I you of, comfortable? number think, how prepared feel terms appetite

seeing there's that's could you're little And there in more like and a become a --or out seller is if attractive terms there things deal of it there? bunch that out that of forced deals sizes, are

Bill Stone

if $X.X says, smart right? going use mean, factor some then spend to out greedy. and be to And billion, when who in. I we're to guy right? remember, scared, Well, when need everyone's EBITDA, We're that that there's not Omaha secondly, we going EBITDA, we some So in X get $X.X get billion

lows, scared fixed now, lot -- not open. it people like a of So income right and -- markets and interest certainly markets open looks if historical wide are rates are are are at

do revenue over wise least about that, year $XXX there's so the And to in pick things. up be at going million We're to and we're And a want getting reasonable to it. prices. you opportunity

house to in the want in when pull hunting and your horns is So best. the your you hide don't

Alex Kramm

again. Thanks Understood.

Operator

question comes next of the from Your line Dan Perlin.

Matt Roswell

Yes. Good evening. channel? really Two revenue sitting quick growth I It's the you for in guess, give alternative actually questions, Roswell the organic did first in part, the Dan. Matt

Patrick Pedonti

the first For quarter?

Matt Roswell

Yes.

quarter. first the For

Patrick Pedonti

first -- the was was it it for X.X%. quarter, Yes,

Matt Roswell

component stock into the announced read the that why acquisition anything today, is there then you And of Okay. that? to

Bill Stone

I so little don't just mean, think we're everyone I so. a crazy, is liquidity crazy.

stock. stocks. happy a to So We it's of think our to -- portion not very restricted And the sellers we're were include much I money. get have

them, about So upside good little out that excited forward, as And for go there's hopefully, And it's really a we a and asset, hope. them. works better I it. we're for

Matt Roswell

Okay. a I of sort of you or a What when now you really deferral you're out clients, And that to could a disruption big think seeing do if demand? question. and it's end demand with go of talk

Bill Stone

of once. more than that things. pass, bond this different no stock too look of market people different are most than different no different It's of the that at shall world than right? a at no think whole the different, levels I no the Russian crisis, as, than senior Obviously, different X/XX, crash XXXX, this it is if companies lot at

an people the economic people looking lot in of everywhere, the and lot opportunities. world same awful and but And activity so of they There's in finance, start an smart it's reduction there's for of there's smart awful thing.

So that there offerings the upsized. debt that going as the that oversubscribed distressed of being place. all there's And launching of probably as you've large-scale bunch launches much to are all a are and funds out and are over credit down, slow most seen are

about world they people money, weren't So, have awash talked kidding. when in a

the and basically opportunity. other SS&C beneficiary. where Fed banks money of the see the central other of with will people that turning for restructurings think spigots to And on, for around there's money world, a plenty think I then going be I And all plenty the things real be and

Matt Roswell

Excellent. you. Thank Okay.

Operator

turn over further Bill remarks. And call further there to are the I for will no now questions. Stone

Bill Stone

to talking and Thank thanks, healthy, and forward you everybody, the at of Good night. you. look we quarter. safe the to And and end stay stay next

Operator

does call. conclude today's this conference And

You lines. may now disconnect your

SS&C Technologies (SSNC) 30 Apr 202020 Q1 Earnings call transcript