- Revenues Increase Six Percent to Record $276 Million -
NEW YORK, Jan. 26 /PRNewswire-FirstCall/ -- BISYS, a leading provider of
outsourcing solutions for the financial services sector, today reported the
results of its fiscal second quarter ended December 31, 2004.
For the fiscal second quarter, BISYS reported net income of $21.9 million
or $0.18 per diluted share, as compared to net income of $20.3 million or
$0.17 per diluted share for the same period in fiscal 2004. Results for the
fiscal 2005 second quarter include investment gains of $2.8 million or $0.02
per diluted share net of tax, and restructuring, impairment and other charges
of $1.5 million or $0.01 per diluted share net of tax. Results for the fiscal
second quarter of 2004 include restructuring charges of $1.4 million or $0.01
per diluted share net of tax. Excluding investment gains and restructuring
charges, pro forma net income was $20.6 million or $0.17 per diluted share for
the fiscal 2005 second quarter, as compared to $21.7 million or $0.18 per
diluted share for the comparable fiscal 2004 quarter.
Revenues for the fiscal 2005 second quarter increased to $276 million, up
six percent from $261 million in the same period last year. Net cash provided
by operating activities was $59.0 million as compared to $58.8 million in the
same period last year.
BISYS reported net income of $43.6 million or $0.36 per diluted share for
the six months ended December 31, 2004, as compared to net income of $26.2
million or $0.22 per diluted share for the six months ended December 31, 2003.
Results for the six months ended December 31, 2004 include investment gains of
$5.4 million or $0.04 per diluted share net of tax, and restructuring,
impairment and other charges of $1.8 million or $0.01 per diluted share net of
tax. 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 Services group. Excluding
investment gains and restructuring, impairment, and other charges, pro forma
net income for the six months ended December 31, 2004 was $40.0 million or
$0.33 per diluted share, as compared to pro forma net income of $40.6 million
or $0.34 per diluted share for the same period last year. BISYS' six months
revenues increased to $544.0 million, up nine percent over fiscal 2004 six
months' revenues of $498.0 million.
BISYS President and CEO, Russell Fradin, said: "BISYS' financial results
were in line with our expectations and consistent with our stated objectives
for fiscal 2005 again this quarter. Our Investment Services and Insurance
Services groups generated internal revenue growth of approximately 8% and 9%
respectively, compared to the same quarter last fiscal year, while margins
were stronger sequentially for both these groups. Although internal revenue in
our Information Services group declined approximately 5% as the result of an
acquisition-related client loss we experienced last year, the business
performed well and consistent with our expectations. We also continued to
generate solid cash flow in each of our businesses."
The Company has included the above pro forma information concerning
investment gains and 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. (BSG) provides outsourcing solutions that enable
investment firms, insurance companies, and banks to more efficiently serve
their customers, grow their businesses, and respond to evolving regulatory
requirements. Its Investment Services group provides administration and
distribution services for mutual funds, hedge funds, private equity funds,
retirement plans and other investment products. Through its Insurance Services
group, BISYS is the nation's largest independent wholesale distributor of life
insurance and a leading independent wholesale distributor of commercial
property/casualty insurance, long-term care, disability, and annuity products.
BISYS' Information Services group provides industry-leading information
processing, back-office operations, and imaged payment solutions to financial
institutions and major corporations. Headquartered in New York, BISYS
generates more than $1 billion in annual revenues worldwide. 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: 2004 2003 2004 2003
Revenues $276,338 $261,381 $544,467 $497,815
Operating cost and expenses:
Service and operating 177,793 166,314 352,132 316,233
Selling, general and
administrative 55,460 49,397 106,940 95,526
Amortization of intangible
assets 6,987 6,693 14,137 12,499
Restructuring, impairment and
other charges 2,350 2,151 2,838 14,775
Total expenses 242,590 224,555 476,047 439,033
Operating earnings 33,748 36,826 68,420 58,782
Interest income 626 282 1,106 607
Interest expense (4,526) (4,735) (9,377) (9,399)
Investment gains 4,331 - 8,524 -
Income before income taxes 34,179 32,373 68,673 49,990
Income taxes 12,304 12,059 25,067 23,833
Net income $21,875 $20,314 $43,606 $26,157
Basic earnings per share $0.18 $0.17 $0.36 $0.22
Diluted earnings per share $0.18 $0.17 $0.36 $0.22
Weighted average shares
outstanding 119,698 119,350 119,797 119,578
Weighted average equivalent shares
outstanding 120,561 120,091 120,507 120,730
THREE MONTHS ENDED SIX MONTHS ENDED
DECEMBER 31, DECEMBER 31,
Pro forma: 2004 2003 2004 2003
Reported net income $21,875 $20,314 $43,606 $26,157
Subtract: Investment gains, net
of tax (2,772) - (5,414) -
Add: Restructuring, impairment
and other charges, net of tax 1,504 1,350 1,811 14,483
Pro forma net income $20,607 $21,664 $40,003 $40,640
Diluted earnings per share:
Reported net income $0.18 $0.17 $0.36 $0.22
Subtract: Investment gains, net
of tax (0.02) - (0.04) -
Add: Restructuring, impairment
and other charges, net of tax 0.01 0.01 0.01 0.12
Pro forma net income $0.17 $0.18 $0.33 $0.34
THE BISYS GROUP, INC.
SUMMARY CONSOLIDATED FINANCIAL DATA
(Unaudited)
(In thousands)
THREE MONTHS ENDED SIX MONTHS ENDED
DECEMBER 31, DECEMBER 31,
Business Segment Data: 2004 2003 2004 2003
Revenues:
Investment Services $149,195 $138,211 $298,630 $266,382
Insurance Services 73,323 66,488 139,959 122,666
Information Services 53,820 56,682 105,878 108,767
Total $276,338 $261,381 $544,467 $497,815
Operating earnings (loss)*:
Investment Services $18,500 $16,457 $36,768 $32,870
Insurance Services 14,275 13,841 26,266 24,301
Information Services 12,258 14,839 23,832 27,726
Corporate (8,935) (6,160) (15,608) (11,340)
Total $36,098 $38,977 $71,258 $73,557
* Excludes the impact of restructuring, impairment and other charges.
DECEMBER 31, JUNE 30,
Balance Sheet Data: 2004 2004
Cash and cash equivalents $144,606 $139,872
Restricted cash 49,007 67,125
Accounts receivable, net 100,121 96,385
Insurance premiums and
commissions receivable, net 121,967 87,154
Total assets 1,598,461 1,612,240
Insurance premiums and
commissions payable 148,170 126,173
Short-term borrowings - 66,000
Long-term debt, including
current maturities 400,000 400,000
Stockholders' equity 818,653 784,982
Other Financial Data: THREE MONTHS ENDED SIX MONTHS ENDED
DECEMBER 31, DECEMBER 31,
2004 2003 2004 2003
Capital expenditures $6,629 $7,315 $14,830 $16,802
Net cash provided by operating
activities $58,960 $58,775 $78,309 $85,207
Effective tax rate, excluding
impact of restructuring,
impairment and other charges 36.00% 37.25% 36.49% 37.25%
SOURCE The 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:
Daniel Briggs, Vice President, Finance and
Investor Relations of The BISYS Group, Inc., +1-212-907-6134
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