SS&C Technologies Holdings, Inc. (NASDAQ:SSNC) Q4 2015 Earnings Conference Call - Final Transcript

Feb 16, 2016 • 05:00 pm ET


SS&C Technologies Holdings, Inc. (NASDAQ:SSNC) Q4 2015 Earnings Conference Call - Final Transcript


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William Stone

our offerings to loan portfolios and banks. We have enhanced our Fund Services portal to include performance attribution and tax optimization modules. Very impressive analytical tools that we believe may help performance for our fund administrative and other clients. Finally, we have added the capability of servicing RIAs with Black Diamond, one of the products that we acquired with the Advent acquisition and it services one of the fastest growing segments in financial services, the RIA market.

This quarter SS&C has also received approval from the Securities and Exchange Commission to bring its disruptive cloud-based post-trade matching service, SSNCNet to the U.S. market. We own about 80% of the Canadian market today and we've been trying to get this exemption for 10 years. Our technologists have had a free hand to develop the SSNCNet technology and we're excited to bring it to the United States and we will be at a compelling price point.

At SS&C, we value and thank our shareholders for their continued support. We aim to maximize shareholder value and our capital allocation strategy reflects this objective. In 2015, our operating cash flow was $230.6 million and that was after paying $67 million in financing charges and other expenses with the Advent and Primatics acquisitions that went through our operating cash flow. So otherwise it would have been about $300 million.

We spent $2.7 billion on acquisitions this year. We believe these acquisitions are a good way to deliver shareholder return. We continued our quarterly dividend and gave a total of $45 million back to our shareholders. And now with $2.4 billion in net debt on our balance sheet, we will focus on bringing our leverage down quickly.

Now, I will turn it over to Norm.

Normand Boulanger

Thanks, Bill. SS&C saw successes in a number of different ways throughout 2015. We were able to close four acquisitions in the past 14 months, including Advent Software. All of these acquisitions bring new software and capabilities. Today and in the future, technology ownership will be a key part of our strategy. As part of SS&C, Advent had its biggest quarter in three years and Black Diamond, our premier RIA solution had their biggest quarter ever. The cross-sale and up-sale opportunities are gaining momentum and this quarter included an Advent client that switched to full outsourcing with SS&C, increasing revenue five times. We launched the new generation of Advent hosting and integrated data services, Advent OnDemand, which is growing faster than expected. Geneva Advent's sophisticated portfolio management platform continues to be market leading and remains the premier choice for fund administrators and prime brokers.

Our Institutional business also remained strong. Customers increasingly choose more holistic solution than a traditional license. For example, we see a trend in providing co-source trade reconciliation solutions to large insurance companies as well as new license clients opting to host software in our data centers rather than internally. A strong area of growth within Institutional Investment Management is our loan service and the mortgage REIT solutions.