Q4 2022 GAAP revenue $1,338.3 million, up 3.4%, Fully Diluted GAAP Earnings Per Share $0.81, down 13.8%

Adjusted revenue $1,339.1 million, up 3.3%, Adjusted Diluted Earnings Per Share $1.16, down 9.4%

WINDSOR, Conn., Feb. 7, 2023 /PRNewswire/ -- SS&C Technologies Holdings, Inc. (NASDAQ: SSNC), a global provider of investment, financial and healthcare software-enabled services and software, today announced its financial results for the fourth quarter and full year ended December 31, 2022.

Fourth Quarter and Full Year 2022 Highlights:

• SS&C generated net cash from operating activities of $369.7 million for the three months ended December 31, 2022, and $1,134.3 million for the twelve months ended December 31, 2022.

• Q4 2022 we bought back 1.8 million shares for $90.7 million, at an average price of $50.14 per share.

• We paid down $166.2 million in debt in Q4 2022, bringing our net leverage ratio to 3.40 times consolidated EBITDA attributable to SS&C.

• SS&C reported GAAP net income attributable to SS&C of $207.5 million and adjusted consolidated EBITDA attributable to SS&C of $518.6 million for Q4 2022.

• GAAP net income margin for Q4 2022 was 15.5%. Adjusted consolidated EBITDA margin for Q4 2022 was 38.7%, a 70 basis point increase from Q3 2022.

• Completed the acquisition of Complete Financial Ops, Inc., expanding our fund administration capabilities in servicing venture capital and family office funds.

"SS&C finished out 2022 in line with our expectations," says Bill Stone, Chairman and Chief Executive Officer. "We announced several large renewals and new client wins, including two major lift outs, which we think will be a revenue driver over the next several years. We continue to deploy Blue Prism digital workers across our organization. 180 digital workers have been implemented as of year end 2022, with initial successes in our GIDS and fund services businesses. We look forward to the productivity and efficiency increases as we accelerate Blue Prism's deployment across our organization."

Operating Cash Flow

SS&C generated net cash from operating activities of $1,134.3 million for the twelve months ended December 31, 2022, compared to $1,429.0 million for the same period in 2021, a 20.6% decrease.  SS&C ended the fourth quarter with $440.1 million in cash and cash equivalents and $7,132.3 million in gross debt.  SS&C's net debt balance as defined in our credit agreement, which excludes cash and cash equivalents of $134.1 million held at DomaniRx, LLC was $6,826.3 million as of December 31, 2022.  SS&C's consolidated net leverage ratio as defined in our credit agreement stood at 3.40 times consolidated EBITDA attributable to SS&C as of December 31, 2022. SS&C's net secured leverage ratio stood at 2.40 times consolidated EBITDA attributable to SS&C as of December 31, 2022.

Guidance

SS&C does not provide reconciliations of guidance for Adjusted Revenues and Adjusted Net Income to comparable GAAP measures, in reliance on the unreasonable efforts exception provided under Item 10(e)(1)(i)(B) of Regulation S-K.  SS&C is unable, without unreasonable efforts, to forecast certain items required to develop meaningful comparable GAAP financial measures.  These items include acquisition transactions and integration, foreign exchange rate changes, as well as other non-cash and other adjustments as defined under the Company's Credit agreement, that are difficult to predict in advance in order to include in a GAAP estimate.  The unavailable information could have a significant impact on Q1 2023 and FY 2023 GAAP financial results.

Non-GAAP Financial Measures

Adjusted revenue, adjusted operating income, adjusted consolidated EBITDA, adjusted net income and adjusted diluted earnings per share are non-GAAP measures.  See the accompanying notes for the reconciliations and definitions for each of these non-GAAP measures and the reasons our management believes these measures provide useful information to investors regarding our financial condition and results of operations.

Earnings Call and Press Release

SS&C's Q4 2022 earnings call will take place at 5:00 p.m. eastern time today, February 7, 2023.  The call will discuss Q4 2022 results and business outlook.  Interested parties may dial 888-210-4650 (US and Canada) or 646-960-0327 (International), and request the "SS&C Technologies Fourth Quarter 2022 Earnings Conference Call"; conference ID #4673675.  In connection with the earnings call, a presentation will be available on SS&C's website at http://investor.ssctech.com/results.cfm. A replay will be available after 8:00 p.m. eastern time on February 7, 2023, until midnight on February 14, 2023.  The replay dial-in number is 800-770-2030 (US and Canada) or 647-362-9199 (International); access code #4673675.  The call will also be available for replay on SS&C's website after February 7, 2023; access: http://investor.ssctech.com/results.cfm.

Certain information contained in this press release relating to, among other things, the Company's financial guidance for the first quarter and full year of 2023 constitute forward-looking statements for purposes of the safe harbor provisions under the Private Securities Litigation Reform Act of 1995.  Forward-looking statements include statements concerning plans, objectives, goals, strategies, expectations, intentions, projections, developments, future events, performance, underlying assumptions, and other statements that are other than statements of historical facts. Without limiting the foregoing, the words "believes", "anticipates", "plans", "expects", "estimates", "projects", "forecasts", "may", "assume", "intend", "will", "continue", "opportunity", "predict", "potential", "future", "guarantee", "likely", "target", "indicate", "would", "could" and "should" and similar expressions are intended to identify forward-looking statements, although not all forward-looking statements are accompanied by such words.  Such statements reflect management's best judgment based on factors currently known but are subject to risks and uncertainties, which could cause actual results to differ materially from those anticipated.  Such risks and uncertainties include, but are not limited to, the state of the economy and the financial services industry and other industries in which the Company's clients operate, the Company's ability to realize anticipated benefits from its acquisitions, including DST Systems, Inc., the effect of customer consolidation on demand for the Company's products and services, the increasing focus of the Company's business on the hedge fund industry, the variability of revenue as a result of activity in the securities markets, the ability to retain and attract clients, fluctuations in customer demand for the Company's products and services, the intensity of competition with respect to the Company's products and services, the exposure to litigation and other claims, terrorist activities and other catastrophic events, disruptions, attacks or failures affecting the Company's software-enabled services, risks associated with the Company's foreign operations, privacy concerns relating to the collection and storage of personal information, evolving regulations and increased scrutiny from regulators, the Company's ability to protect intellectual property assets and litigation regarding intellectual property rights, delays in product development, investment decisions concerning cash balances, regulatory and tax risks, risks associated with the Company's joint ventures, changes in accounting standards, risks related to the Company's substantial indebtedness, the market price of the Company's stock prevailing from time to time, and the risks discussed in the "Risk Factors" section of the Company's most recent Annual Report on Form 10-K and Quarterly Report on Form 10-Q, which are on file with the Securities and Exchange Commission and can also be accessed on our website.  Forward-looking statements speak only as of the date on which they are made and, except to the extent required by applicable securities laws, we undertake no obligation to update or revise any forward-looking statements.

About SS&C Technologies

SS&C is a global provider of services and software for the financial services and healthcare industries. Founded in 1986, SS&C is headquartered in Windsor, Connecticut, and has offices around the world. Some 20,000 financial services and healthcare organizations, from the world's largest companies to small and mid-market firms, rely on SS&C for expertise, scale, and technology.

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