SS&C Technologies Holdings, Inc. (NASDAQ:SSNC) Q4 2019 Earnings Conference Call - Final Transcript

Feb 12, 2020 • 05:00 pm ET


SS&C Technologies Holdings, Inc. (NASDAQ:SSNC) Q4 2019 Earnings Conference Call - Final Transcript


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Ladies and gentlemen, thank you for standing by, and welcome to the SS&C Technologies Fourth Quarter and Full Year 2019 Earnings Call. [Operator Instructions].

I would now like to hand the conference over to your speaker today, Justine Stone. Thank you. Please go ahead.

Justine Stone

Hi, everyone. Welcome and thank you for joining us for our Q4 and full year 2019 earnings call. I'm Justine Stone, Investor Relations for SS&C Technologies. With me today is Bill Stone, Chairman and Chief Executive Officer; Rahul Kanwar, President and Chief Operating Officer; and Patrick Pedonti, 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 Factors section of our most recent Annual Report on Form 10-K, which is on file with the SEC and can also be accessed on our website. These forward-looking statements represent our expectations only as of today, February 12, 2020. While the company may elect to update these forward-looking statements, it specifically disclaims any obligation to do so.

During today's call, we will be referring to certain non-GAAP financial 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 website at I'd also like to request that when we get to the question-and-answer section of the call, please limit yourself to one question and one follow-up.

Thank you. And I will now turn the call over to Bill.

William C. Stone

Thanks, everyone for joining us today. Our results for the fourth quarter are $1.212 billion in adjusted revenue and $1.08 in adjusted diluted earnings per share. Our adjusted consolidated EBITDA was $490.5 million and our adjusted consolidated EBITDA margin was 40.5%, up 180 basis points from Q3. Q4 organic revenue growth was 4.7%. The beat was largely driven by revenue growth in our software businesses and strong growth in our fund administration business.

2019 net cash from operating activities came in very strong at $573 million for the fourth quarter and $1,328.3 million for the year. Our 2019 adjusted net income was $1,010.9 million, giving us a 131% cash conversion rate. We paid down $1.123 billion in debt last year and over $2 billion since the April '18 DST acquisition.

Our secured net leverage ratio was 2.7 and our total net leverage ratio was 3.77. In January this year, we re-priced our secured credit facilities from LIBOR plus 2.25% to LIBOR plus 1.75%. We expect to save over $25 million annually in interest costs.

We've closed on the Algorithmics acquisition, which brings a host of software and services covering market risk, credit