• Quarterly retention rate is based on a rolling prior twelve months. • Acquisitions are not included in retention rate calculation until one year postacquisition. Note: Retention rates calculated for financial services businesses Adjusted net income and adjusted diluted EPS attributable to SS&C | --- | --- | --- | --- | --- | --- | --- | |-------------------------------------------------|---------|---------|---------|-------------|----------|----------| | $341.3 | $334.4 | $289.6 | $298.8 | $296.6 | $1,342 ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended September 30, 2022 ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 (Exact name of Registrant as specified in its charter) Delaware 71-0987913 (State or other jurisdiction of incorporation or organization) (I.R.S. Employer Identification No.) 80 Lamberton Road Windso ...

SS&C Technologies Holdings, Inc. (NASDAQ:SSNC) Q3 2022 Results Conference Call October 27, 2022 5:00 PM ET Company Participants Justine Stone - Head of Investor Relations Bill Stone - Chairman and Chief Executive Officer Patrick Pedonti - Senior Vice President and Chief Financial Officer Rahul Kanwar - President and Chief Operating Officer Conference Call Participants Andrew Schmidt - Citigroup Alexander Kramm - UBS Investment Bank Peter Heckmann - D.A. Davidson Jeffrey Schmitt - William Blair & Company Kev ...

PART 1. FINANCIAL INFORMATION [Item 1. Financial Statements (unaudited)](index=4&type=section&id=Item%201.%20Financial%20Statements%20(unaudited)) Unaudited financial statements for Q2 2022 show increased assets and revenues, but decreased net income and operating cash flow due to acquisitions [Condensed Consolidated Balance Sheets](index=4&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) Total assets increased to **$17.50 billion** by June 30, 2022, driven by goodwill from acquisitions, while liabilities rose due to increased long-term debt Condensed Consolidated Balance Sheet Highlights (in millions) | Account | June 30, 2022 | December 31, 2021 | | :--- | :--- | :--- | | **Total Assets** | **$17,500.3** | **$17,333.0** | | Cash and cash equivalents | $438.3 | $564.0 | | Goodwill | $8,866.8 | $8,045.5 | | Intangible and other assets, net | $4,358.1 | $3,805.3 | | **Total Liabilities** | **$11,386.1** | **$11,109.8** | | Long-term debt, net of current portion | $7,234.5 | $5,901.5 | | **Total Stockholders' Equity** | **$6,112.1** | **$6,223.2** | [Condensed Consolidated Statements of Comprehensive Income](index=5&type=section&id=Condensed%20Consolidated%20Statements%20of%20Comprehensive%20Income) Q2 2022 total revenues grew to **$1.33 billion**, but operating income and net income declined significantly year-over-year Q2 and Six Months Performance Comparison (in millions, except EPS) | Metric | Q2 2022 | Q2 2021 | Six Months 2022 | Six Months 2021 | | :--- | :--- | :--- | :--- | :--- | | Total Revenues | $1,328.7 | $1,259.0 | $2,623.7 | $2,492.4 | | Gross Profit | $624.3 | $595.0 | $1,244.1 | $1,154.1 | | Operating Income | $245.6 | $312.9 | $537.4 | $582.0 | | Net Income Attributable to SS&C | $110.6 | $189.8 | $282.7 | $364.7 | | Diluted EPS | $0.42 | $0.71 | $1.06 | $1.36 | [Condensed Consolidated Statements of Cash Flows](index=6&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) Operating cash flow decreased, while investing activities saw a **$1.67 billion** outflow primarily due to business acquisitions Cash Flow Summary for Six Months Ended June 30 (in millions) | Cash Flow Activity | 2022 | 2021 | | :--- | :--- | :--- | | Net cash provided by operating activities | $447.5 | $562.3 | | Net cash used in investing activities | $(1,673.6) | $(17.9) | | Net cash provided by financing activities | $69.2 | $1,175.8 | | Net (decrease) increase in cash | $(1,178.6) | $1,718.6 | - Cash paid for business acquisitions, net of cash acquired, was **$1,597.1 million** for the first six months of 2022, compared to a net cash inflow of **$7.3 million** in the same period of 2021[11](index=11&type=chunk) [Notes to Condensed Consolidated Financial Statements](index=10&type=section&id=Notes%20to%20Condensed%20Consolidated%20Financial%20Statements) Notes detail accounting policies, significant acquisitions like **Blue Prism** for **$1.6 billion**, and ongoing legal proceedings related to DST ERISA matters - The company adopted ASU 2021-08 for business combinations as of January 1, 2022, which changes the accounting for contract assets and liabilities from acquired contracts[17](index=17&type=chunk) - On March 16, 2022, the company acquired **Blue Prism Group plc** for approximately **$1.6 billion** in cash, a leader in enterprise robotics process automation[32](index=32&type=chunk) - The company is involved in multiple legal proceedings related to the DST 401(k) Profit Sharing Plan, alleging breaches of fiduciary duties under ERISA. An accrued liability of **$43.4 million** was recorded in Q3 2021[69](index=69&type=chunk)[71](index=71&type=chunk) [Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations](index=22&type=section&id=Item%202.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management discusses Q2 2022 revenue growth driven by acquisitions, increased operating expenses, and strong liquidity despite significant acquisition-related cash outflows - Q2 2022 revenue increased by **$69.7 million (5.5%)**, with acquisitions contributing **$65.6 million** and organic growth adding **$27.9 million**, offset by a **$23.8 million** negative impact from foreign currency translation[85](index=85&type=chunk) - Operating expenses for Q2 2022 rose by **$96.6 million (34.2%)**, driven by **$55.6 million** from acquisitions and a **$49.2 million** increase in organic expenses related to personnel, travel, and IT[94](index=94&type=chunk) Consolidated EBITDA Reconciliation (in millions) | Metric | Twelve Months Ended June 30, 2022 | | :--- | :--- | | Net income | $717.5 | | EBITDA | $1,802.9 | | **Consolidated EBITDA** | **$2,047.9** | | Consolidated EBITDA attributable to SS&C common stockholders | $2,045.6 | - The company was in compliance with its debt covenants as of June 30, 2022, with a maximum consolidated net secured leverage ratio of **2.48**, well below the requirement of **6.25x**[132](index=132&type=chunk) [Results of Operations](index=22&type=section&id=Results%20of%20Operations) Q2 2022 total revenues increased **5.5%** to **$1.33 billion** due to acquisitions and organic growth, but operating income declined due to surging expenses Revenue Growth Analysis (Q2 2022 vs Q2 2021) | Revenue Stream | 2022 (in millions) | 2021 (in millions) | % Change | | :--- | :--- | :--- | :--- | | Software-enabled services | $1,070.7 | $1,057.1 | 1.3% | | License, maintenance and related | $258.0 | $201.9 | 27.8% | | **Total revenues** | **$1,328.7** | **$1,259.0** | **5.5%** | - The increase in License, maintenance and related revenues was primarily due to acquisitions, which added **$58.5 million**[85](index=85&type=chunk) - Interest expense increased in Q2 and H1 2022 compared to 2021 due to higher average interest rates and higher average debt balances following the Blue Prism acquisition financing[96](index=96&type=chunk) [Liquidity and Capital Resources](index=26&type=section&id=Liquidity%20and%20Capital%20Resources) Liquidity is supported by operating cash flow and credit facilities, despite **$1.6 billion** in acquisition-related cash outflows and significant debt financing Cash Flow Summary - Six Months Ended June 30 (in millions) | Activity | 2022 | 2021 | | :--- | :--- | :--- | | Operating activities | $447.5 | $562.3 | | Investing activities | $(1,673.6) | $(17.9) | | Financing activities | $69.2 | $1,175.8 | - In March 2022, the company entered into an Incremental Joinder to its credit agreement, adding a **$650.0 million** Term B-6 Loan and an **$880.0 million** Term B-7 Loan to finance the Blue Prism acquisition[48](index=48&type=chunk) - In July 2022, the Board authorized a new stock repurchase program for up to **$1 billion** of common stock. During the first six months of 2022, the company repurchased **2.3 million** shares for **$170.9 million**[52](index=52&type=chunk) [Item 3. Quantitative and Qualitative Disclosures About Market Risk](index=31&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) The company faces market risks from interest rate fluctuations, equity price changes, and foreign currency exposure, particularly with the British pound - A **100 basis point** increase in interest rates would increase annual interest expense by approximately **$53.5 million** due to the company's **$5.35 billion** in variable rate debt[139](index=139&type=chunk) - The company has **$61.4 million** in investments subject to equity price risk; a **10%** change in fair value would impact net income by approximately **$4.6 million**, net of tax[140](index=140&type=chunk) - About **29%** of revenues for the first six months of 2022 came from outside the U.S., creating exposure to foreign currency exchange rate risk, particularly with the British pound[141](index=141&type=chunk) [Item 4. Controls and Procedures](index=32&type=section&id=Item%204.%20Controls%20and%20Procedures) Management concluded that disclosure controls and procedures were effective as of June 30, 2022, with no material changes to internal control over financial reporting - The CEO and CFO concluded that as of June 30, 2022, the company's disclosure controls and procedures were effective at the reasonable assurance level[143](index=143&type=chunk) - No changes occurred during the fiscal quarter ended June 30, 2022, that have materially affected, or are reasonably likely to materially affect, the company's internal control over financial reporting[144](index=144&type=chunk) PART II. OTHER INFORMATION [Item 1. Legal Proceedings](index=33&type=section&id=Item%201.%20Legal%20Proceedings) Information on legal proceedings, including ongoing DST ERISA matters, is incorporated by reference from Note 14 of the financial statements - Information regarding significant legal proceedings, particularly the DST ERISA matters, is detailed in Note 14 of the Condensed Consolidated Financial Statements and is incorporated by reference[147](index=147&type=chunk) - Management believes that the final outcome of other legal proceedings arising from the normal course of business will not have a material adverse effect on the company's consolidated financial condition, operations, or cash flows[148](index=148&type=chunk) [Item 1A. Risk Factors](index=33&type=section&id=Item%201A.%20Risk%20Factors) No material changes have occurred to the risk factors previously disclosed in the 2021 Annual Report on Form 10-K - As of the filing date of this report, no material changes have been made to the risk factors disclosed in the 2021 Annual Report on Form 10-K[149](index=149&type=chunk) [Item 2. Unregistered Sales of Equity Securities and Use of Proceeds](index=33&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) The company did not repurchase any common stock during the second quarter of 2022 - There were no repurchases of the company's common stock in the second quarter of 2022[150](index=150&type=chunk) [Item 6. Exhibits](index=34&type=section&id=Item%206.%20Exhibits) This section lists exhibits filed with the Quarterly Report, including CEO and CFO certifications and Inline XBRL data files - The exhibits filed with this report include certifications from the CEO and CFO under Sections 302 and 906 of the Sarbanes-Oxley Act[154](index=154&type=chunk) - The filing includes various Inline XBRL documents for interactive data purposes[154](index=154&type=chunk)

SS&C Technologies Holdings, Inc. (NASDAQ:SSNC) Q2 2022 Results Conference Call July 27, 2022 5:00 PM ET Company Participants Justine Stone - Head, IR Bill Stone - Chairman and CEO Rahul Kanwar - President and COO Patrick Pedonti - CFO Conference Call Participants Alex Kramm - UBS Financial Peter Heckmann - D.A. Davidson Andrew Schmidt - Citi Patrick O’Shaughnessy - Raymond James Chris Donat - Piper Sandler Kevin McVeigh - Credit Suisse Jeff Schmitt - William Blair Operator Ladies and gentlemen, thank you fo ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended March 31, 2022 ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission File Number 001-34675 SS&C TECHNOLOGIES HOLDINGS, INC. (Exact name of Registrant as specified in its charter) (State or other jurisdiction of incorporation or ...

SS&C Technologies (NASDAQ:SSNC) Q1 2022 Earnings Results 1 Safe Harbor Statement 2 This presentation contains forward-looking statements, as defined by federal and state securities laws, which are made pursuant to the safe harbor provisions of 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 or products, underlying assumptions, an ...

SS&C Technologies Holdings, Inc. (NASDAQ:SSNC) Q1 2022 Earnings Conference Call April 28, 2022 5:00 PM ET Company Participants Justine Stone - Head of Investor Relations Bill Stone - Chairman and Chief Executive Officer Rahul Kanwar - President and Chief Operating Officer Patrick Pedonti - Senior Vice President and Chief Financial Officer Conference Call Participants Alex Kramm - UBS Andrew Schmidt - Citi Peter Heckmann - Davidson Jonathan - Morgan Stanley Kevin McVeigh - Credit Suisse Chris Donat - Piper S ...

Part I [Business](index=4&type=section&id=Item%201.%20Business) SS&C Technologies provides software-enabled services and software to financial services and healthcare, focusing on recurring revenue and strategic acquisitions - FY2021 Financial Highlights | Metric | Value (USD Million) | | :--- | :--- | | Total Revenues | $5,051.0 | | North American Revenues | 76% of Total | | International Revenues | 24% of Total | - The company's business model is characterized by high revenue retention rates, averaging over **95%** in the last five years for its software-enabled services and maintenance contracts[20](index=20&type=chunk) - SS&C is the world's largest hedge fund and private equity administrator and the largest mutual fund transfer agent, serving over **20,000 clients** across financial services and healthcare[16](index=16&type=chunk)[18](index=18&type=chunk) - The company employs a disciplined acquisition strategy, having acquired **59 businesses** since 1995 to expand its product offerings, client base, and intellectual property[39](index=39&type=chunk)[44](index=44&type=chunk) Overview - SS&C provides a broad range of software-enabled services and specialized software products to the global financial services and healthcare industries, with **24,000+ employees** and **125 offices globally**[18](index=18&type=chunk) - The company's healthcare business (SS&C Health) focuses on modernizing medical and pharmacy claims processing, data analytics, and improving member experience for health plans and pharmacy benefit managers[19](index=19&type=chunk) Market Trends - Key industry trends driving demand include the acceleration of outsourcing and cloud solutions due to COVID-19, increasing product complexity, evolving regulatory changes, a focus on digital transformation (including AI and RPA), and demands for greater transparency and efficiency[24](index=24&type=chunk) - The healthcare industry is undergoing a transformation driven by an aging population, rising costs, regulatory oversight, and a shift to virtual care, creating opportunities for data interoperability and population health management solutions[25](index=25&type=chunk) Competitive Strengths - A core strength is the use of its own proprietary software to deliver software-enabled services, which enhances operating margins and allows for rapid, scalable updates[26](index=26&type=chunk) - SS&C is the largest independent alternative fund administrator and mutual fund transfer agent, providing transparency and avoiding conflicts of interest that can arise with non-independent providers[29](index=29&type=chunk)[30](index=30&type=chunk) - The company owns and operates a global data center footprint and a private cloud, ensuring high uptime and limiting reliance on third parties[32](index=32&type=chunk) Business Strategies - The company aims to build on its leadership by investing in internal development and opportunistically acquiring products and services to meet the specialized needs of the financial services industry[34](index=34&type=chunk) - SS&C plans to strengthen its international presence, which accounted for **24% of revenues in 2021**, with a particular focus on the Asia Pacific region[40](index=40&type=chunk) - Profitability is expected to increase through margin expansion driven by innovative end-to-end solutions, operating leverage, automation, and a reduction in real estate footprint[41](index=41&type=chunk)[42](index=42&type=chunk) Our Acquisitions Selected Major Acquisitions (2018-2020) | Acquisition Date | Acquired Business | Contract Purchase Price (USD millions) | Acquired Capabilities | | :--- | :--- | :--- | :--- | | May 2020 | Innovest | $120.0 | Web-based trust accounting and asset servicing solutions | | Nov 2019 | Algorithmics | $88.8 | Cloud-based risk analytics and regulatory solutions | | Nov 2018 | Intralinks Holdings, Inc. | $1,500.0 | Cloud-based virtual data rooms and secure collaboration | | Oct 2018 | Eze Software Group, LLC | $1,450.0 | Strengthened front-to-back office technology | | Apr 2018 | DST Systems, Inc. | $5,400.0 | Provided scale across asset management and healthcare | Products and Services - Software-enabled services include SS&C GlobeOp fund administration (over **$2.2 trillion in assets under administration**), Global Investor and Distribution Solutions (GIDS), retirement solutions, and the Black Diamond Wealth Platform[50](index=50&type=chunk) - Healthcare services encompass pharmacy solutions, including the DomaniRx joint venture with Humana and Anthem, healthcare administration, and health outcomes optimization[53](index=53&type=chunk)[54](index=54&type=chunk) - Software license offerings include portfolio/investment accounting platforms like Geneva and Advent Portfolio Exchange (APX), portfolio management software, and trading software such as Eze Eclipse and Moxy[56](index=56&type=chunk)[57](index=57&type=chunk)[58](index=58&type=chunk) Competition - The market is fragmented and competitive. In hedge funds and private markets, SS&C competes with large custodian banks like State Street and BNY Mellon. In asset management, competitors include SimCorp and internal IT departments[75](index=75&type=chunk)[77](index=77&type=chunk) - In healthcare, competition comes from integrated providers like United Health and CVS Health, where SS&C's independence (not being owned by a health plan) is a key differentiator[78](index=78&type=chunk) - In wealth management, competitors include Envestnet, Orion, and large custodians like Charles Schwab and Fidelity[81](index=81&type=chunk) Human Capital - As of December 31, 2021, the company had over **24,900 full-time employees**, with approximately **14,200 in international operations**[90](index=90&type=chunk) Employee Distribution by Function | Function | Number of Employees | | :--- | :--- | | Client support, consulting and services | 19,000 | | Research and development | 3,500 | | Finance and administration | 1,300 | | Sales and marketing | 1,100 | [Risk Factors](index=19&type=section&id=Item%201A.%20Risk%20Factors) The company faces significant business, legal, regulatory, financial, and ownership risks, including economic downturns, cybersecurity threats, evolving regulations, substantial indebtedness, and CEO control Risks Relating to Our Business - The business is highly sensitive to the health of the general economy and financial markets, as downturns could cause clients to reduce spending, delay payments, or process fewer transactions[99](index=99&type=chunk)[100](index=100&type=chunk) - Failure to successfully integrate acquired companies could disrupt operations, divert management attention, and prevent the realization of anticipated benefits like cost savings and synergies[103](index=103&type=chunk)[104](index=104&type=chunk) - Cybersecurity threats are a significant risk, as disruptions, attacks, or failures in software-enabled services could lead to data loss, financial loss, liability, and reputational harm[113](index=113&type=chunk) - A substantial portion of operations are conducted outside the U.S. (**28% of 2021 revenues**), exposing the company to risks such as currency fluctuations, political instability, and complex local regulations[134](index=134&type=chunk)[135](index=135&type=chunk) Legal or Regulatory Risks - The business is subject to increasing and evolving U.S. and foreign regulations, including privacy, data protection, and financial services rules. Violations could result in significant fines, sanctions, or reputational damage[146](index=146&type=chunk) - Privacy concerns related to the collection and storage of personal information are a key risk, with evolving frameworks like the E.U.'s GDPR and California's CCPA imposing strict requirements and significant potential penalties for non-compliance[157](index=157&type=chunk) - The role as a fund administrator exposes the company to potential claims and litigation from clients, investors, or regulators in the event of fund losses, fraud, or insolvency[155](index=155&type=chunk) Risks Relating to Our Indebtedness - As of December 31, 2021, the company had substantial total indebtedness of **$5,979.7 million**, which could require dedicating a significant portion of cash flow to debt service and limit financial flexibility[162](index=162&type=chunk) - The agreements governing the company's debt contain restrictive covenants that limit its ability to, among other things, incur additional debt, make certain investments, and pay dividends[165](index=165&type=chunk)[166](index=166&type=chunk) - The planned replacement of LIBOR with an alternative reference rate like SOFR may adversely affect interest expense on the company's **$3,974.5 million** of variable interest rate debt[170](index=170&type=chunk) Risks Relating to Ownership of Our Common Stock - William C. Stone, the Chairman and CEO, beneficially owned approximately **13.3%** of the outstanding common stock as of February 17, 2022, giving him significant influence over company policy and stockholder matters[174](index=174&type=chunk) - Provisions in the company's certificate of incorporation and bylaws, such as a classified board and limitations on calling special meetings, could discourage or prevent a change of control[177](index=177&type=chunk)[178](index=178&type=chunk) [Properties](index=36&type=section&id=Item%202.%20Properties) The company leases its Windsor, CT headquarters and operates 125 global facilities, with **59% of office space leased** and **41% owned** - The company leases its corporate offices in Windsor, CT, and has facilities in approximately **125 other locations globally**[181](index=181&type=chunk) - Approximately **59%** of the company's office space is leased, with the remaining **41%** being owned[181](index=181&type=chunk) [Legal Proceedings](index=36&type=section&id=Item%203.%20Legal%20Proceedings) The company faces ongoing litigation related to the DST 401(k) Profit Sharing Plan, incurring a **$43.4 million legal accrual** in Q3 2021 for ERISA fiduciary duty breaches - The company is defending multiple legal proceedings, including a class action lawsuit and individual arbitrations, related to the DST 401(k) Profit Sharing Plan, alleging breaches of fiduciary duty under ERISA[484](index=484&type=chunk)[489](index=489&type=chunk) - In Q3 2021, an accrued liability and expense of **$43.4 million** was recorded in connection with the ongoing DST ERISA litigation and associated arbitration awards[483](index=483&type=chunk) Part II [Market for Registrant's Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities](index=36&type=section&id=Item%205.%20Market%20for%20Registrant's%20Common%20Equity%2C%20Related%20Stockholder%20Matters%20and%20Issuer%20Purchases%20of%20Equity%20Securities) SS&C common stock trades on Nasdaq, with a **$1 billion stock repurchase program** authorized in July 2021, and **$837.1 million remaining** as of year-end - In July 2021, the Board authorized a stock repurchase program of up to **$1 billion**. As of December 31, 2021, **$837.1 million** remains available for repurchase[186](index=186&type=chunk) Comparison of Cumulative Total Return (2016-2021) | | 12/31/2016 | 12/31/2021 | | :--- | :--- | :--- | | SS&C Technologies Holdings, Inc. | $100 | $298 | | Nasdaq Composite - Total Returns | $100 | $305 | [Management's Discussion and Analysis of Financial Condition and Results of Operations](index=38&type=section&id=Item%207.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) In 2021, revenues grew **8.2% to $5.05 billion**, with gross margin improving to **47.7%**, net income reaching **$800.6 million**, and operating cash flow at **$1.43 billion** Results of Operations Revenues by Source (in millions) | Revenue Source | 2021 | 2020 | 2019 | % Change (2021 vs 2020) | | :--- | :--- | :--- | :--- | :--- | | Software-enabled services | $4,256.1 | $3,891.3 | $3,869.2 | 9.4% | | License, maintenance and related | $794.9 | $776.6 | $763.7 | 2.4% | | **Total revenues** | **$5,051.0** | **$4,667.9** | **$4,632.9** | **8.2%** | - The **8.2% revenue increase** in 2021 was primarily driven by **$272.7 million in organic growth** from strength in fund administration, Black Diamond, Geneva, and other services, supplemented by **$56.9 million from acquisitions**[201](index=201&type=chunk) Cost of Revenues and Gross Margin | Metric | 2021 | 2020 | 2019 | | :--- | :--- | :--- | :--- | | Total cost of revenues (USD millions) | $2,641.7 | $2,574.1 | $2,611.7 | | Gross margin percentage | 47.7% | 44.9% | 43.6% | - Total operating expenses increased **5.3%** in 2021 to **$1.17 billion**, driven by higher personnel and technology-related costs to support organic growth[209](index=209&type=chunk) Liquidity and Capital Resources Summary of Cash Flows (in millions) | Cash Flow Activity | 2021 | 2020 | 2019 | | :--- | :--- | :--- | :--- | | Operating activities | $1,429.0 | $1,184.7 | $1,328.3 | | Investing activities | ($148.2) | ($210.5) | ($140.5) | | Financing activities | $556.7 | ($1,428.1) | ($513.4) | - In 2021, the company used its operating cash flow to repay **$519.9 million of net debt**, pay **$174.0 million in dividends**, and purchase **$487.9 million of common stock** for treasury[197](index=197&type=chunk)[223](index=223&type=chunk) Contractual Obligations as of Dec 31, 2021 (in millions) | Obligation | Total | Less than 1 Year | 1-3 Years | 3-5 Years | More than 5 Years | | :--- | :--- | :--- | :--- | :--- | :--- | | Debt | $5,979.7 | $47.4 | $86.8 | $3,845.5 | $2,000.0 | | Interest payments | $902.1 | $184.5 | $366.6 | $241.0 | $110.0 | | Operating lease obligations | $389.3 | $72.4 | $113.1 | $75.1 | $128.7 | | **Total** | **$7,417.7** | **$386.4** | **$608.5** | **$4,184.1** | **$2,238.7** | Covenant Compliance Consolidated EBITDA Reconciliation (in millions) | Line Item | 2021 | 2020 | 2019 | | :--- | :--- | :--- | :--- | | Net income | $800.6 | $625.2 | $438.5 | | Interest expense, net | $201.6 | $245.9 | $404.9 | | Provision for income taxes | $236.4 | $150.6 | $93.2 | | Depreciation and amortization | $667.4 | $725.3 | $775.2 | | **EBITDA** | **$1,906.0** | **$1,747.0** | **$1,711.8** | | Other Adjustments | $162.1 | $109.3 | $165.7 | | **Consolidated EBITDA** | **$2,068.1** | **$1,856.3** | **$1,877.5** | - As of December 31, 2021, the company was in compliance with its debt covenants, with an actual consolidated net secured leverage ratio of **1.72x**, well below the maximum requirement of **6.25x**[263](index=263&type=chunk) Critical Accounting Estimates - Significant judgments are applied in accounting for investments, goodwill impairment testing, software capitalization, acquisition accounting (purchase price allocation), revenue recognition, stock-based compensation, and income taxes[265](index=265&type=chunk) - Goodwill is tested annually for impairment. The 2021 analysis indicated that the fair values of the company's two reporting units (health business and all other operations) significantly exceeded their carrying values[271](index=271&type=chunk)[366](index=366&type=chunk) [Quantitative and Qualitative Disclosures about Market Risk](index=52&type=section&id=Item%207A.%20Quantitative%20and%20Qualitative%20Disclosures%20about%20Market%20Risk) The company faces interest rate risk on **$3.97 billion variable-rate debt**, equity price risk on **$67.0 million investments**, and foreign currency risk from **28% international revenues** - The company has significant interest rate risk. As of December 31, 2021, a **1% change in LIBOR** would result in an approximate **$39.7 million change in annual interest expense** on its variable interest rate debt[288](index=288&type=chunk) - The company is exposed to foreign currency exchange rate risk, as approximately **28% of its 2021 revenues** were generated from clients outside the United States, with a portion denominated in foreign currencies[290](index=290&type=chunk) [Financial Statements and Supplementary Data](index=53&type=section&id=Item%208.%20Financial%20Statements%20and%20Supplementary%20Data) The 2021 audited financial statements show **total assets of $17.3 billion**, **total revenues of $5.05 billion**, **net income of $800.0 million**, and **operating cash flow of $1.43 billion** Consolidated Balance Sheet Highlights (in millions) | Account | Dec 31, 2021 | Dec 31, 2020 | | :--- | :--- | :--- | | Total Assets | $17,333.0 | $15,923.6 | | Goodwill | $8,045.5 | $8,078.7 | | Total Liabilities | $11,109.8 | $10,207.1 | | Long-term Debt (net) | $5,901.5 | $6,388.5 | | Total Stockholders' Equity | $6,223.2 | $5,716.5 | Consolidated Income Statement Highlights (in millions) | Account | 2021 | 2020 | 2019 | | :--- | :--- | :--- | :--- | | Total Revenues | $5,051.0 | $4,667.9 | $4,632.9 | | Gross Profit | $2,409.3 | $2,093.8 | $2,021.2 | | Operating Income | $1,242.3 | $985.8 | $914.4 | | Net Income Attributable to SS&C | $800.0 | $625.2 | $438.5 | | Diluted EPS | $2.99 | $2.35 | $1.66 | [Controls and Procedures](index=88&type=section&id=Item%209A.%20Controls%20and%20Procedures) Management and external auditors confirmed the effectiveness of the company's disclosure controls and internal control over financial reporting as of December 31, 2021 - Based on an evaluation as of December 31, 2021, the CEO and CFO concluded that the company's disclosure controls and procedures were effective at a reasonable assurance level[498](index=498&type=chunk) - Management concluded that the company's internal control over financial reporting was effective as of December 31, 2021, a conclusion audited and supported by PricewaterhouseCoopers LLP[500](index=500&type=chunk)[501](index=501&type=chunk) Part III [Directors, Executive Officers, Corporate Governance, Executive Compensation, Security Ownership, and Principal Accountant Fees](index=90&type=section&id=Items%2010-14) Information for Items 10 through 14, covering governance, compensation, and security ownership, is incorporated by reference from the 2022 proxy statement - Information for Items 10, 11, 12, 13, and 14 is incorporated by reference from the registrant's definitive proxy statement for the 2022 annual meeting of stockholders[507](index=507&type=chunk)[508](index=508&type=chunk)[509](index=509&type=chunk) Part IV [Exhibits and Financial Statement Schedules](index=90&type=section&id=Item%2015.%20Exhibits%20and%20Financial%20Statement%20Schedules) This section lists all exhibits filed with the Form 10-K, including corporate governance documents, debt agreements, and management compensation plans - This section lists all exhibits filed with the Form 10-K, including corporate governance documents, debt agreements, and management compensation plans[514](index=514&type=chunk)[516](index=516&type=chunk)[518](index=518&type=chunk)

SS&C Technologies Holdings, Inc. (NASDAQ:SSNC) Q4 2021 Earnings Conference Call February 10, 2022 5:00 PM ET Company Participants Justine Stone - Head of IR Bill Stone - Chairman, CEO Rahul Kanwar - President, COO Patrick Pedonti - CFO Conference Call Participants Michael Young - Truist Securities Surinder Thind - Jefferies Andrew Schmidt - Citigroup Jackson Ader - JPMorgan Christopher Donat - Piper Sandler Kevin McVeigh - Credit Suisse Alex Kramm - UBS Patrick O’Shaughnessy - Raymond James Operator Thank ...