- Revenue Increases 11 Percent to Record $272 Million -
NEW YORK, April 22 /PRNewswire-FirstCall/ -- BISYS, a leading provider of
business process outsourcing solutions for the financial services sector,
today reported the results of its fiscal third quarter ended March 31, 2004.
For the fiscal third quarter, BISYS reported net income of $3.2 million or
$0.03 per diluted share, as compared to net income of $32.5 million or $0.27
per diluted share for the same period in fiscal 2003. Revenue for the quarter
was $272.3 million, an increase of 11.2 percent from $244.8 million in the
same period last year.
Actual results for the third quarter of fiscal 2004 include an additional
provision in the Life Insurance division of $15.5 million or $0.13 per diluted
share net of tax for a change in estimated losses in the commissions
receivable portfolio and restructuring, impairment and other charges of $6.8
million or $0.06 per diluted share net of tax, primarily for 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. Included in the aforementioned $6.8 million charge
is $3.1 million net of tax, for estimated additional contractual obligations
in the Life Insurance division. Excluding the additional loss provision and
the restructuring, impairment and other charges, pro forma net income was
$25.5 million or $0.21 per diluted share for the third quarter of fiscal 2004.
According to Russ Fradin, BISYS' president and CEO, "During our fiscal
third quarter, we generated solid internal revenue growth of five percent
compared to the year ago period and strong cash flow. Our largest business
group, Investment Services, experienced strong revenue growth compared to the
year ago period, and improved operating earnings on a sequential basis
compared to our second fiscal quarter ended December 31, 2003. Our
Information Services group grew both revenue and operating earnings compared
to the year ago period. While our Insurance and Education Services group has
underperformed, principally because of the performance of our Life Insurance
Services division, we are taking the actions necessary to position the
division for future growth, and we expect our Life Insurance results to
improve in fiscal year 2005. For the company in total, we believe that our
strong revenue growth and consistent cash flows demonstrate the fundamental
strength of our business, and that our sound strategic positioning will
provide opportunities for future growth."
BISYS reported net income of $28.0 million or $0.23 per diluted share for
the nine months ended March 31, 2004, as compared to net income of $78.0
million or $0.64 per diluted share for the nine months ended March 31, 2003.
BISYS' nine months revenue increased to $773.0 million, up 9.6 percent over
fiscal 2003 nine months revenue of $705.2 million. Net cash provided by
operating activities for the nine months ended March 31, 2004 was $139
million, an increase of more than 18 percent from $119 million in the same
period last year.
Actual results for the nine months ended March 31, 2004 include the
additional provision in the Life Insurance division of $15.5 million or $0.13
per diluted share net of tax for a change in estimated losses in the
commissions receivable portfolio and restructuring, impairment, and other
charges of $21.3 million or $0.18 per diluted share net of tax. Actual results
for the nine months ended March 31, 2003 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 the additional loss provision and
the restructuring, impairment, and other charges, pro forma net income for the
nine months ended March 31, 2004 was $64.8 million or $0.54 per diluted share,
as compared to pro forma net income of $85.6 million or $0.70 per diluted
share for the same period last year.
The Company has included the above pro forma information concerning the
additional loss provision and the 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 380 clients,
representing more than 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 automate 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 NINE MONTHS ENDED
MARCH 31, MARCH 31,
Statement of Operations Data: 2004 2003 2004 2003
Revenues $272,295 $244,776 $773,008 $705,232
Operating cost and expenses:
Service and operating * 197,582 141,076 518,785 412,751
Selling, general and
administrative 48,673 43,892 144,199 131,071
Amortization of intangible assets 7,235 4,809 19,734 13,474
Restructuring, impairment and
other charges 10,815 - 25,590 12,079
Total expenses 264,305 189,777 708,308 569,375
Operating earnings 7,990 54,999 64,700 135,857
Interest income 391 270 998 1,178
Interest expense (4,741) (4,475) (14,140) (13,428)
Income before income taxes 3,640 50,794 51,558 123,607
Income taxes 456 18,286 23,517 45,591
Net income $3,184 $32,508 $28,041 $78,016
Basic earnings per share $0.03 $0.27 $0.23 $0.65
Diluted earnings per share $0.03 $0.27 $0.23 $0.64
Weighted average shares
outstanding 120,217 119,565 119,774 119,501
Weighted average equivalent shares
outstanding 121,439 120,771 120,901 121,628
* Includes the impact of a change in estimated losses in the commissions
receivable portfolio in the Life Insurance division of $24,700 in 2004.
THREE MONTHS ENDED NINE MONTHS ENDED
MARCH 31, MARCH 31,
Pro forma: 2004 2003 2004 2003
Reported net income $3,184 $32,508 $28,041 $78,016
Addback:
Additional provision for change in
estimated losses, net of tax 15,499 - 15,499 -
Restructuring, impairment and other
charges, net of tax 6,786 - 21,269 7,549
Pro forma net income $25,469 $32,508 $64,809 $85,565
Diluted earnings per share:
Reported net income $0.03 $0.27 $0.23 $0.64
Addback:
Additional provision for change in
estimated losses, net of tax 0.13 - 0.13 -
Restructuring, impairment and other
charges, net of tax 0.06 - 0.18 0.06
Pro forma net income $0.21 $0.27 $0.54 $0.70
THE BISYS GROUP, INC.
SUMMARY CONSOLIDATED FINANCIAL DATA
(Unaudited)
(In thousands)
THREE MONTHS ENDED NINE MONTHS ENDED
MARCH 31, MARCH 31,
Business Segment Data: 2004 2003 2004 2003
Revenues:
Investment Services $148,295 $125,050 414,677 $367,847
Insurance and Education Services 67,421 63,761 192,985 178,290
Information Services 56,579 55,965 165,346 159,095
Total $272,295 $244,776 $773,008 $705,232
Operating earnings (loss)*:
Investment Services $18,034 $20,167 50,904 $54,123
Insurance and
Education Services ** (10,781) 24,154 11,448 67,561
Information Services 16,900 15,779 44,626 42,009
Corporate (5,348) (5,101) (16,688) (15,757)
Total $18,805 $54,999 $90,290 $147,936
* Excludes the impact of restructuring, impairment and other charges.
** Includes the impact of a change in estimated losses in the commissions
receivable portfolio in the Life Insurance division of $24,700 in 2004.
MARCH 31, JUNE 30,
Balance Sheet Data: 2004 2003
Cash and cash equivalents $88,962 $79,558
Restricted cash 61,995 26,603
Accounts receivable, net 99,202 96,237
Insurance premiums and commissions
receivable, net 135,522 169,780
Total assets 1,630,806 1,526,893
Insurance premiums and commissions payable 107,656 79,398
Short-term borrowings 70,000 172,000
Long-term debt 400,000 300,000
Stockholders' equity 817,348 785,061
Other Financial Data: THREE MONTHS ENDED NINE MONTHS ENDED
MARCH 31, MARCH 31,
2004 2003 2004 2003
Capital expenditures $10,961 $8,643 $27,763 $33,821
Net cash provided by operating
activities $54,089 $56,290 $139,296 $118,512
Effective tax rate, excluding impact
of restructuring, impairment
and other charges 31.02% 36.00% 36.08% 36.90%
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:
Daniel Briggs, Vice President Finance and
Investor Relations, The BISYS Group, Inc., +1-212-907-6134
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