SS&C Technologies Holdings, Inc (SSNC) has reported a 587.32 percent jump in profit for the quarter ended Mar. 31, 2017. The company has earned $48.15 million, or $0.23 a share in the quarter, compared with $7 million, or $0.03 a share for the same period last year. On the other hand, adjusted net income for the quarter stood at $92.93 million, or $0.44 a share compared with $75.42 million or $0.37 a share, a year ago. Revenue during the quarter grew 25.78 percent to $407.70 million from $324.13 million in the previous year period. Gross margin for the quarter expanded 117 basis points over the previous year period to 46.66 percent. Total expenses were 77.99 percent of quarterly revenues, down from 84.44 percent for the same period last year. This has led to an improvement of 644 basis points in operating margin to 22.01 percent.
Operating income for the quarter was $89.72 million, compared with $50.44 million in the previous year period.
However, the adjusted operating income for the quarter stood at $155.44 million compared to $135.19 million in the prior year period. At the same time, adjusted operating margin contracted 358 basis points in the quarter to 38.13 percent from 41.71 percent in the last year period.
“SS&C had a strong start to 2017, with adjusted revenues up 19.4 percent and adjusted diluted earnings per share up 18.9 percent for the first quarter,” says Bill Stone, chairman and chief executive officer. “Our businesses continue to perform, and hedge fund asset flow indicators suggest renewed confidence. We are also actively expanding our service offering for long-only and institutional outsourcing, as well as the creation of our newest SS&C GlobeOp division servicing Real Assets. We believe real estate, infrastructure, and property management solutions present a big opportunity.”
For the second-quarter, Ss&C Technologies Holdings forecasts adjusted revenue to be in the range of $408 million to $416 million. Ss&C Technologies Holdings forecasts adjusted revenue to be in the range of $1,664 million to $1,686 million for fiscal year 2017. Ss&C Technologies Holdings expects adjusted net income to be in the range of $93.70 million to $98 million for the second-quarter. For the financial year 2017, Ss&C Technologies Holdings expects adjusted net income to be in the range of $399 million to $412 million.
Operating cash flow improves significantly
SS&C Technologies Holdings, Inc has generated cash of $56.52 million from operating activities during the quarter, up 203.60 percent or $37.91 million, when compared with the last year period. The company has spent $7.46 million cash to meet investing activities during the quarter as against cash outgo of $322.53 million in the last year period.
The company has spent $59.49 million cash to carry out financing activities during the quarter as against cash outgo of $27.93 million in the last year period.
Cash and cash equivalents stood at $108.84 million as on Mar. 31, 2017, up 4.01 percent or $4.20 million from $104.64 million on Mar. 31, 2016.
Working capital turns negative
Working capital of SS&C Technologies Holdings, Inc has turned negative to $70.52 million on Mar. 31, 2017 from positive $34.36 million on Mar. 31, 2016. Current ratio was at 0.85 as on Mar. 31, 2017, down from 1.09 on Mar. 31, 2016.
Days sales outstanding went down to 46 days for the quarter compared with 61 days for the same period last year.
At the same time, days payable outstanding was almost stable at 7 days for the quarter, when compared with the previous year period.
Debt comes down
SS&C Technologies Holdings, Inc has recorded a decline in total debt over the last one year. It stood at $2,444.55 million as on Mar. 31, 2017, down 10.26 percent or $279.47 million from $2,724.02 million on Mar. 31, 2016. Total debt was 43.20 percent of total assets as on Mar. 31, 2017, compared with 47.04 percent on Mar. 31, 2016. Debt to equity ratio was at 1.05 as on Mar. 31, 2017, down from 1.27 as on Mar. 31, 2016. Interest coverage ratio improved to 3.09 for the quarter from 1.52 for the same period last year.
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