- Revenue Increases to Record $253 Million -
- Record Cash from Operations of $61 Million -
NEW YORK, July 29 /PRNewswire-FirstCall/ -- BISYS, a leading provider of
business process outsourcing solutions for the financial services sector,
today reported the results for its fiscal fourth quarter and the fiscal year
ended June 30, 2003.
For the fiscal fourth quarter, BISYS reported net income of $33.8 million
or $0.28 per diluted share, as compared to net income of $37.3 million or
$0.30 per diluted share for the same period in fiscal 2002. Revenue for the
quarter was $253.2 million, an increase of six percent from $238.7 million in
the same period last year. Cash from operations for the quarter reached a
record of $61.3 million.
BISYS reported net income of $111.8 million or $0.92 per diluted share for
the year ended June 30, 2003, as compared to net income of $115.9 million or
$0.94 per diluted share for the year ended June 30, 2002. Actual results for
the year ended June 30, 2003 and 2002 include restructuring charges of
$7.5 million or $0.06 per diluted share net of tax, and $4.0 million or $0.03
per diluted share net of tax, respectively, related to the integration,
consolidation, and relocation of certain business operations, primarily as a
result of acquisition activity. Excluding restructuring charges, pro forma
net income for the year ended June 30, 2003 was $119.4 million or $0.98 per
diluted share, as compared to pro forma net income of $119.8 million or
$0.97 per diluted share for the same period last year. BISYS' annual revenue
increased to $958.4 million, up 11 percent over fiscal 2002 annual revenue of
$865.7 million. Cash from operations for fiscal year 2003 was $179.8 million,
an increase of $50.9 million, or 39 percent, over the previous year.
The company has included the above pro forma information concerning
restructuring 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 20,000 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 more than $650 billion in
assets. BISYS' largest group also provides retirement services to more than
15,000 companies in partnership with 40 of the nation's leading banks and
investment management companies, and offers analytical research and
competitive intelligence 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, annuity, long-term care, and disability products. BISYS is also the
nation's seventh largest property/casualty (P&C) wholesaler and the third
largest independent wholesaler of commercial lines of P&C 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 225 certification and continuing education
training courses, and a sophisticated suite of licensing-related products and
services. BISYS' Information Services group provides information processing
and imaging solutions to more than 1,150 financial institutions. This group
also supports more than 120 insurance companies with a suite of asset
retention solutions, and provides complete program management for
corporate-sponsored cash management accounts. 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 YEAR ENDED
JUNE 30, JUNE 30,
Statement of Operations Data: 2003 2002 2003 2002
Revenues $253,187 $238,727 $958,419 $865,705
Operating cost and expenses:
Service and operating 146,073 131,379 558,824 488,411
Selling, general and
administrative 45,657 39,488 176,728 157,743
Amortization of intangible
assets 5,348 3,961 18,822 13,125
Restructuring charges - - 12,079 6,475
Total expenses 197,078 174,828 766,453 665,754
Operating earnings 56,109 63,899 191,966 199,951
Interest income 297 396 1,475 3,599
Interest expense (4,718) (4,154) (18,146) (15,701)
Income before income taxes 51,688 60,141 175,295 187,849
Income taxes 17,881 22,852 63,472 71,988
Net income $33,807 $37,289 $111,823 $115,861
Basic earnings per share $0.28 $0.31 $0.93 $0.98
Diluted earnings per share $0.28 $0.30 $0.92 $0.94
Weighted average shares
outstanding 119,618 119,422 119,597 118,623
Weighted average equivalent
shares outstanding 121,306 124,524 121,721 123,859
Pro forma:
Reported net income $33,807 $37,289 $111,823 $115,861
Addback:
Restructuring charges, net of
tax - - 7,549 3,982
Pro forma net income 33,807 37,289 119,372 119,843
Diluted earnings per share:
Reported net income $0.28 $0.30 $0.92 $0.94
Addback:
Restructuring charges, net of
tax - - 0.06 0.03
Pro forma net income $0.28 $0.30 $0.98 $0.97
THE BISYS GROUP, INC.
SUMMARY CONSOLIDATED FINANCIAL DATA
(Unaudited)
(In thousands)
THREE MONTHS ENDED YEAR ENDED
JUNE 30, JUNE 30,
Business Segment Data: 2003 2002 2003 2002
Revenues:
Investment Services $130,684 $124,787 $498,531 $449,930
Insurance and Education
Services 66,545 62,113 244,835 218,185
Information Services 55,958 51,827 215,053 197,590
Total $253,187 $238,727 $958,419 $865,705
Operating earnings (loss)*:
Investment Services $23,433 $24,495 $77,556 $77,449
Insurance and Education
Services 20,971 28,562 88,532 94,847
Information Services 17,378 16,389 59,387 54,895
Corporate (5,673) (5,547) (21,430) (20,765)
Total $56,109 $63,899 $204,045 $206,426
* Excludes the impact of restructuring charges.
JUNE 30, JUNE 30,
Balance Sheet Data: 2003 2002
Cash and cash equivalents $106,161 $78,371
Accounts receivable, net 96,237 101,851
Insurance premiums and
commissions receivable, net 169,780 95,146
Total assets 1,526,893 1,246,151
Insurance premiums and
commissions payable 79,398 -
Short-term borrowings 172,000 93,000
Long-term debt 300,000 300,000
Stockholders' equity 785,061 682,618
Other Financial Data: THREE MONTHS ENDED YEAR ENDED
JUNE 30, JUNE 30,
2003 2002 2003 2002
Capital expenditures $9,285 $14,570 $43,106 $39,310
Net cash provided by operating
activities $61,298 $39,954 $179,810 $128,946
Effective tax rate 34.6% 38.0% 36.2% 38.3%
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:
Andrew C. Corbin, Executive Vice President,
Chief Financial Officer of The BISYS Group, Inc., +1-212-907-6079
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