- Revenue Increases 13 Percent to Record $263 Million -
- Internal Revenue Growth Improves Across All Business Groups -
- Net Cash Provided by Operating Activities Increases 29 Percent
to $58.8 Million -
NEW YORK, Jan. 21 /PRNewswire-FirstCall/ -- BISYS, a leading provider of
business process outsourcing solutions for the financial services sector,
today reported the results of its fiscal second quarter ended December 31,
2003.
For the fiscal second quarter, BISYS reported net income of $20.0 million
or $0.17 per diluted share, as compared to net income of $28.7 million or
$0.24 per diluted share for the same period in fiscal 2003. Actual results for
the fiscal second quarter of 2004 include restructuring charges of $1.4
million or $0.01 per diluted share net of tax, primarily related to the
implementation of the reorganization plan for certain business operations as
announced in September 2003. Excluding restructuring charges, pro forma net
income was $21.4 million or $0.18 per diluted share for the fiscal 2004 second
quarter, in line with analysts' consensus expectations.
Revenue for the quarter was $263.3 million, an increase of 13 percent from
$233.1 million in the same period last year. Net cash provided by operating
activities was $58.8 million, an increase of more than 29 percent from $45.4
million in the same period last year.
BISYS reported net income of $24.9 million or $0.21 per diluted share for
the six months ended December 31, 2003, as compared to net income of $45.5
million or $0.37 per diluted share for the six months ended December 31, 2002.
Actual results for the six months ended December 31, 2003 include
restructuring, impairment, and other charges of $14.5 million or $0.12 per
diluted share net of tax, primarily related to the integration, consolidation,
and reorganization of certain business operations, particularly in the
Company's European Fund Services division and the Insurance and Education
Services group. Actual results for the six months ended December 31, 2002
include restructuring charges of $7.5 million or $0.06 per diluted share net
of tax, related to the integration, consolidation, and relocation of certain
business operations, primarily as a result of acquisition activity.
Excluding restructuring, impairment, and other charges, pro forma net
income for the six months ended December 31, 2003 was $39.3 million or $0.33
per diluted share, as compared to pro forma net income of $53.1 million or
$0.44 per diluted share for the same period last year. BISYS' six months
revenue increased to $500.7 million, up nine percent over fiscal 2003 six
months revenue of $460.5 million.
The Company has included the above pro forma information concerning
restructuring, impairment, and other charges to assist investors in analyzing
BISYS' results of operations. The Company has elected to provide this
information to enable investors to perform meaningful comparisons of past,
present, and future operating results, and as a means to emphasize the results
of core, ongoing operations.
About BISYS
The BISYS Group, Inc. (NYSE: BSG), headquartered in New York City,
provides business process outsourcing solutions that enable investment firms,
insurance companies, and banks to capitalize on convergence by entering new
segments of the financial services industry. BISYS currently supports more
than 22,000 domestic and international financial institutions and corporate
clients through three business units. Its Investment Services group provides
administration and distribution services for approximately 370 clients,
representing approximately 2,200 mutual funds, hedge funds, private equity
funds, and other alternative investment products with approximately $750
billion in assets under administration. BISYS' largest group also provides
retirement services to more than 18,000 companies in partnership with 40 of
the nation's leading banks and investment management companies, and offers
analytical research and competitive information through its Financial Research
Corporation (FRC) subsidiary. Through its Insurance and Education Services
group, BISYS is the nation's largest independent distributor of life insurance
and the premier provider of the support services required to sell traditional
and variable life, long-term care, disability, and annuity products. BISYS is
also the nation's second largest independent wholesale distributor of
commercial property/casualty insurance. This group complements its insurance
distribution services with a comprehensive compliance management solution that
supports insurance and investment firms and professionals with more than 215
certification and continuing education training courses, and a sophisticated
suite of products and services that automates the entire licensing process.
BISYS' Information Services group supports approximately 1,450 banks,
insurance companies, and corporations with industry-leading information
processing and imaging solutions, turnkey asset retention solutions, and
specialized corporate banking solutions. Additional information is available
at http://www.bisys.com.
Except for the historical information contained herein, the matters
discussed in the press release are forward-looking statements within the
meaning of the safe-harbor provisions of the Private Securities Litigation
Reform Act of 1995. These forward-looking statements are subject to risks and
uncertainties that may cause actual results to differ materially, including
but not limited to economic, competitive, governmental and technological
factors affecting the Company's operations, markets, services and related
products, prices and other factors discussed in the Company's periodic filings
with the Securities and Exchange Commission.
THE BISYS GROUP, INC.
SUMMARY CONSOLIDATED FINANCIAL DATA
(Unaudited)
(In thousands, except per share data)
THREE MONTHS ENDED SIX MONTHS ENDED
DECEMBER 31, DECEMBER 31,
Statement of Operations Data: 2003 2002 2003 2002
Revenues $263,331 $233,112 $500,713 $460,456
Operating cost and expenses:
Service and operating 168,691 136,126 321,203 271,675
Selling, general and
administrative 49,397 42,593 95,526 87,179
Amortization of intangible
assets 6,693 4,393 12,499 8,665
Restructuring, impairment and
other charges 2,151 - 14,775 12,079
Total expenses 226,932 183,112 444,003 379,598
Operating earnings 36,399 50,000 56,710 80,858
Interest income 282 535 607 908
Interest expense (4,735) (4,568) (9,399) (8,953)
Income before income taxes 31,946 45,967 47,918 72,813
Income taxes 11,900 17,238 23,061 27,305
Net income $20,046 $28,729 $24,857 $45,508
Basic earnings per share $0.17 $0.24 $0.21 $0.38
Diluted earnings per share $0.17 $0.24 $0.21 $0.37
Weighted average shares
outstanding 119,350 119,273 119,578 119,393
Weighted average equivalent shares
outstanding 120,091 120,967 120,730 121,886
Pro forma:
Reported net income $20,046 $28,729 $24,857 $45,508
Addback:
Restructuring, impairment and
other charges, net of tax 1,350 - 14,483 7,549
Pro forma net income 21,396 28,729 39,340 53,057
Diluted earnings per share:
Reported net income $0.17 $0.24 $0.21 $0.37
Addback:
Restructuring, impairment and
other charges, net of tax 0.01 - 0.12 0.06
Pro forma net income $0.18 $0.24 $0.33 $0.44
THE BISYS GROUP, INC.
SUMMARY CONSOLIDATED FINANCIAL DATA
(Unaudited)
(In thousands)
THREE MONTHS ENDED SIX MONTHS ENDED
DECEMBER 31, DECEMBER 31,
Business Segment Data: 2003 2002 2003 2002
Revenues:
Investment Services $138,211 $121,853 $266,382 $242,797
Insurance and Education Services 68,438 58,830 125,564 114,529
Information Services 56,682 52,429 108,767 103,130
Total $263,331 $233,112 $500,713 $460,456
Operating earnings (loss)*:
Investment Services $16,457 $17,872 $32,870 $33,956
Insurance and Education Services 13,414 23,738 22,229 43,407
Information Services 14,839 13,825 27,726 26,230
Corporate (6,160) (5,435) (11,340) (10,656)
Total $38,550 $50,000 $71,485 $92,937
* Excludes the impact of restructuring, impairment and other charges.
DECEMBER 31, JUNE 30,
Balance Sheet Data: 2003 2003
Cash and cash equivalents $85,054 $79,558
Restricted cash 56,324 26,603
Accounts receivable, net 95,055 96,237
Insurance premiums and commissions
receivable, net 189,000 169,780
Total assets 1,663,795 1,526,893
Insurance premiums and commissions
payable 129,666 79,398
Short-term borrowings 200,000 172,000
Long-term debt 300,000 300,000
Stockholders' equity 806,874 785,061
Other Financial Data: THREE MONTHS ENDED SIX MONTHS ENDED
DECEMBER 31, DECEMBER 31,
2003 2002 2003 2002
Capital expenditures $7,315 $11,277 $16,802 $25,178
Net cash provided by operating
activities $58,775 $45,418 $85,207 $62,222
Effective tax rate, excluding impact
of restructuring,
impairment and other charges 37.25% 37.50% 37.25% 37.50%
SOURCE BISYS Group, Inc.
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Related links:
http://www.bisys.com
Company News On-Call:
http://www.prnewswire.com/comp/851938.html
CONTACT:
James L. Fox, Executive Vice President and
Chief Financial Officer of The BISYS Group, Inc., +1-212-907-6015
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