- Revenue Increases Thirteen Percent to $268 Million -
NEW YORK, Oct. 26 /PRNewswire-FirstCall/ -- BISYS, a leading provider of
outsourcing solutions for the financial services sector, today reported the
results of its fiscal first quarter ended September 30, 2004.
For the fiscal first quarter, BISYS reported net income of $21.7 million
or $0.18 per diluted share, as compared to net income of $5.8 million or $0.05
per diluted share for the same period in fiscal 2004. Results for the fiscal
first quarter of 2005 include investment gains of $0.02 per diluted share or
$2.6 million net of tax. Results for the fiscal first quarter of 2004 include
restructuring, impairment, and other charges of $0.11 per diluted share or
$13.1 million, 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 was $19.4 million or $0.16 per diluted share for
the fiscal 2005 first quarter, as compared to $19.0 million or $0.16 per
diluted share for the comparable fiscal 2004 quarter.
Revenue for the fiscal first quarter 2005 increased to $268 million, up
thirteen percent from $236 million in the same period last year.
According to Russ Fradin, BISYS' president and CEO, "During our first
fiscal quarter, we generated strong internal revenue growth of ten percent
compared to the year ago period, and solid cash flow. Our largest business
group, Investment Services, experienced strong revenue growth as we added
significant new clients to our processing platforms. Our Insurance Services
group generated positive internal revenue growth for the first time in over a
year, reflecting stabilizing revenues in our Life Insurance Services division.
We are continuing to take the actions necessary to position the division for
improved performance. Our Information Services group performed well during
the quarter, but was impacted, as expected, by the loss of a large client last
year. For the company in total, we believe that our strong revenue growth and
solid cash flows continue to demonstrate the fundamental strength of our
business."
The Company has included the above pro forma information concerning
investment gains, 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) 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, imaging, and asset retention solutions to banks, insurance
companies and corporate clients. 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
SEPTEMBER 30,
Statement of Operations Data: 2004 2003
Revenues $268,129 $236,434
Operating cost and expenses:
Service and operating 174,339 149,919
Selling, general and administrative 51,480 46,129
Amortization of intangible assets 7,150 5,806
Restructuring, impairment and other
charges 488 12,624
Total expenses 233,457 214,478
Operating earnings 34,672 21,956
Interest income 480 325
Interest expense (4,851) (4,664)
Investment gains 4,193 --
Income before income taxes 34,494 17,617
Income taxes 12,763 11,774
Net income $21,731 $5,843
Basic earnings per share $0.18 $0.05
Diluted earnings per share $0.18 $0.05
Weighted average shares outstanding 120,000 119,805
Weighted average equivalent shares
outstanding 120,575 121,467
THREE MONTHS ENDED
SEPTEMBER 30,
Pro forma: 2004 2003
Reported net income $21,731 $5,843
Subtract: Investment gains, net of
tax (2,642) --
Add: Restructuring, impairment and
other charges, net of tax 307 13,133
Pro forma net income $19,397 $18,976
Diluted earnings per share:
Reported net income $0.18 $0.05
Subtract: Investment gains, net of tax (0.02) --
Add: Restructuring, impairment and
other charges, net of tax 0.00 0.11
Pro forma net income $0.16 $0.16
THE BISYS GROUP, INC.
SUMMARY CONSOLIDATED FINANCIAL DATA
(Unaudited)
(In thousands)
THREE MONTHS ENDED
SEPTEMBER 30,
Business Segment Data: 2004 2003
Revenues:
Investment Services $149,435 $128,171
Insurance Services 66,636 56,178
Information Services 52,058 52,085
Total $268,129 $236,434
Operating earnings (loss)*:
Investment Services $18,268 $16,413
Insurance Services 11,991 10,460
Information Services 11,574 12,887
Corporate (6,673) (5,180)
Total $35,160 $34,580
* Excludes the impact of restructuring, impairment and other
charges.
SEPTEMBER 30, JUNE 30,
Balance Sheet Data: 2004 2004
Cash and cash equivalents $95,509 $139,872
Restricted cash 56,986 67,125
Accounts receivable, net 101,506 96,385
Insurance premiums and commissions
receivable, net 84,393 87,154
Total assets 1,540,022 1,612,240
Insurance premiums and commissions
payable 111,158 126,173
Short-term borrowings 7,000 66,000
Long-term debt, including current
maturities 400,000 400,000
Stockholders' equity 803,172 784,982
Other Financial Data: THREE MONTHS ENDED
SEPTEMBER 30,
2004 2003
Capital expenditures $8,201 $9,487
Net cash provided by operating
activities $19,349 $26,432
Effective tax rate, excluding impact
of restructuring,
impairment and other charges 37.00% 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, +1-212-907-6134, The BISYS Group, Inc.
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