- Revenue Increases Eight Percent to $267 Million -
- Record Cash From Operations of $65 Million -
NEW YORK, Aug. 10 /PRNewswire-FirstCall/ -- The BISYS Group, Inc., a
leading global provider of business process outsourcing solutions to the
financial services sector, today reported the results of its fiscal fourth
quarter and fiscal year ended June 30, 2004.
For the fiscal fourth quarter, BISYS reported net income of $18.0 million
or $0.15 per diluted share, as compared to net income of $31.0 million or
$0.26 per diluted share for the same period in fiscal 2003. Revenue for the
quarter was $267.2 million, an increase of eight percent from $247.4 million
in the same period last year. Cash from operations for the quarter reached a
record-high of $65.1 million.
Reported results for the fourth quarter of fiscal 2004 include
restructuring and other charges of $2.2 million or $0.02 per diluted share net
of taxes, 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. Excluding
restructuring and other charges, pro forma net income was $20.2 million or
$0.17 per diluted share for the fourth quarter of fiscal 2004.
According to Russ Fradin, BISYS' president and CEO, "During our fourth
fiscal 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 third fiscal quarter ended March 31, 2004. Our Information
Services group performed well during the quarter, but was impacted, as
expected, by the loss of a large client in the last quarter. While our
Insurance and Education Services group has underperformed, principally because
of the performance of our Life Insurance Services division, we are continuing
to take the actions necessary to position the division for future growth. For
the company in total, we believe that our continued revenue growth and strong
cash flows demonstrate the fundamental strength of our business, and that our
sound strategic positioning will provide opportunities for future growth."
"We are also pleased to report that today we filed our amended Form 10-K
for the 2003 Fiscal Year, and the required amended 10-Q filings. These
filings complete the restatement of our financial results. We look forward,
with these filings behind us, to continuing to focus on growing our businesses
and serving our customers throughout fiscal 2005."
BISYS reported net income of $63.6 million or $0.53 per diluted share for
the year ended June 30, 2004 as compared to net income of $98.2 million or
$0.81 per diluted share for the year ended June 30, 2003. Actual results for
the year ended June 30, 2004 include restructuring, impairment and other
charges of $23.5 million or $0.19 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. Actual results for the year ended
June 30, 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 restructuring, impairment and other charges,
pro forma net income for the year ended June 30, 2004 was $87.1 million or
$0.72 per diluted share as compared to pro forma net income of $105.8 million
or $0.87 per diluted share for the same period last year. BISYS' fiscal 2004
annual revenue increased to $1,037.3 million, up 11 percent over fiscal 2003
annual revenue of $933.6 million. Cash from operations for fiscal 2004 was
$204.3 million, an increase of $33.1 million, or 19 percent, over the previous
fiscal year.
The Company has included internal revenue growth, as well as 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 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 approximately
350 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 this 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: 2004 2003 2004 2003
Revenues $267,155 $247,412 $1,037,302 $933,639
Operating cost and expenses:
Service and operating 169,962 144,488 657,981 554,351
Selling, general and
administrative 53,147 45,657 197,346 176,728
Amortization of intangible
assets 7,244 5,348 26,978 18,822
Restructuring, impairment and
other charges 3,509 - 29,099 12,079
Total expenses 233,862 195,493 911,404 761,980
Operating earnings 33,293 51,919 125,898 171,659
Interest income 347 297 1,345 1,475
Interest expense (4,909) (4,718) (19,049) (18,146)
Income before income taxes 28,731 47,498 108,194 154,988
Income taxes 10,702 16,458 44,614 56,745
Net income $18,029 $31,040 $63,580 $98,243
Basic earnings per share $0.15 $0.26 $0.53 $0.82
Diluted earnings per share $0.15 $0.26 $0.53 $0.81
Weighted average shares
outstanding 120,205 119,618 119,872 119,597
Weighted average equivalent
shares outstanding 120,822 121,306 120,890 121,721
THREE MONTHS ENDED YEAR ENDED
JUNE 30, JUNE 30,
Pro forma: 2004 2003 2004 2003
Reported net income $18,029 $31,040 $63,580 $98,243
Addback:
Restructuring, impairment and
other charges, net of tax 2,202 - 23,471 7,549
Pro forma net income $20,231 $31,040 $87,051 $105,792
Diluted earnings per share:
Reported net income $0.15 $0.26 $0.53 $0.81
Addback:
Restructuring, impairment and
other charges, net of tax 0.02 - 0.19 0.06
Pro forma net income $0.17 $0.26 $0.72 $0.87
THE BISYS GROUP, INC.
SUMMARY CONSOLIDATED FINANCIAL
DATA
(Unaudited)
(In thousands)
THREE MONTHS ENDED YEAR ENDED
JUNE 30, JUNE 30,
Business Segment Data: 2004 2003 2004 2003
Revenues:
Investment Services $147,515 $130,684 562,192 498,531
Insurance and Education
Services 65,001 60,770 255,125 220,055
Information Services 54,639 55,958 219,985 215,053
Total $267,155 $247,412 $1,037,302 $933,639
Operating earnings (loss)*:
Investment Services $18,717 $23,433 69,621 $77,556
Insurance and Education
Services 9,810 16,781 49,163 68,225
Information Services 15,557 17,378 60,183 59,387
Corporate (7,282) (5,673) (23,970) (21,430)
Total $36,802 $51,919 $154,997 $183,738
* Excludes the impact of restructuring, impairment and other charges.
JUNE 30, JUNE 30,
Balance Sheet Data: 2004 2003
Cash and cash equivalents $139,872 $79,558
Restricted cash 67,125 26,603
Accounts receivable, net 96,385 96,237
Insurance premiums and commissions receivable, net 87,154 87,535
Total assets 1,621,992 1,458,142
Insurance premiums and commissions payable 126,173 81,840
Short-term borrowings 66,000 172,000
Long-term debt 400,000 300,000
Stockholders' equity 784,982 715,929
Other Financial Data: THREE MONTHS ENDED YEAR ENDED
JUNE 30, JUNE 30,
2004 2003 2004 2003
Capital expenditures $8,436 $9,285 $36,199 $43,106
Net cash provided by operating
activities $65,053 $52,728 $204,349 $171,240
Effective tax rate, excluding
impact of restructuring,
impairment and other charges 37.25% 34.65% 36.59% 36.68%
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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