SS&C Technologies Holdings, Inc. (NASDAQ:SSNC) Q4 2017 Earnings Conference Call - Preliminary Transcript

Feb 15, 2018 • 05:00 pm ET


SS&C Technologies Holdings, Inc. (NASDAQ:SSNC) Q4 2017 Earnings Conference Call - Preliminary Transcript


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Good day, ladies and gentlemen, and welcome to SS&C Technologies Fourth Quarter 2017 Earnings Conference Call. At this time, all participants are in a listen-only mode. Later, we'll conduct a question-and-answer session, and instructions will follow at that time. [Operator Instructions] And as a reminder, this conference is being recorded.

Now I would like to turn the conference over to Justine Stone. Please go ahead.

Justine Stone

Hi, everyone. Welcome and thank you for joining us for our Q4 and full-year 2017 earnings call. I'm Justine Stone, Investor Relations for SS&C. Today on the call with me is Bill Stone, Chairman and Chief Executive Officer; Norm Boulanger, President and Chief Operating Officer; Rahul Kanwar, Executive Vice President and Head of SS&C GlobeOp; and Patrick Pedonti, SVP and our Chief Financial Officer.

Before we get started, we need to review the Safe Harbor statement. Please note that various remarks we make today about future expectations, plans and prospects, including the financial outlook we provide constitute forward-looking statements for the purposes of the Safe Harbor provisions under the Private Securities Litigation Reform Act of 1995.

Actual results may differ materially from those indicated by these forward-looking statements as a result of various important factors, including those discussed in the risk factor section of our most recent annual report on Form 10-K, which is on file with the SEC, and can also be accessed via our Web site. These forward-looking statements represent our expectations only on of today February 15, 2018. While the company may elect to update these forward-looking statements, it specifically disclaims any obligation to do so.

During today's call, we'll be referring to certain non-GAAP measures. A reconciliation of these non-GAAP financial measures to comparable GAAP financial measures is included in today's earnings release, which is located in the Investor Relations section of our Web site at

I'll now turn the call over to Bill.

Bill Stone

Thanks, Justine, and thanks everyone for being with us on our fourth quarter and 2017 year-end call. We're proud to report record revenue and earnings for both the fourth quarter and the year, and adjusted consolidated EBITDA margins over 43%. That's 43%. We now have annual adjusted revenue over $1.68 billion; over $695 million adjusted consolidated EBITDA, and over $470 million in operating cash flow.

We earned $1.93 in adjusted diluted earnings per share, up from $1.64 in 2016. And for those of you that would like 2015, at $1.33. But from '16 to '17 that's a 17.7% increase. SS&C success in 2017 was widespread around our organizations. The integrations of Citi Alternative Investment Services, Conifer, and Wells Fund Administration Businesses are nearly complete with EBITDA margins approach 40%.

We acquired Modestspark, an enhancement to our Black Diamond platform and CommonWealth Canadian fund administrator. Product adoption was strong across all our addressable markets.

Geneva continues to be a market leader for complex asset managers and fund administrators. Technology and services targeting loan portfolio accounting including SS&C Primatics, Precision LM, and our loan and credit fund administration systems