8-K

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 8-K

CURRENT REPORT

Pursuant to Section 13 or 15(d)

of the Securities Exchange Act of 1934

Date of Report (Date of earliest event reported): October 28, 2020

SS&C TECHNOLOGIES HOLDINGS, INC.

(Exact name of Registrant as Specified in Its Charter)

Delaware	001-34675	71-0987913
(State or Other Jurisdiction of Incorporation)	(Commission File Number)	(IRS Employer Identification No.)

80 Lamberton Road, Windsor, CT	06095
(Address of Principal Executive Offices)	(Zip Code)

Registrant’s telephone number, including area code: (860) 298-4500

Not Applicable

(Former Name or Former Address, if Changed Since Last Report)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):

☐	Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
☐	Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
☐	Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
☐	Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).

☐ Emerging growth company

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.     ☐

Securities registered pursuant to Section 12(b) of the Act:

Title of each class	Trading Symbol	Name of each exchange on which registered
Common stock, par value $0.01 per share	SSNC	The Nasdaq Global Select Market

Item 2.02. Results of Operations and Financial Condition

On October 28, 2020, SS&C Technologies Holdings, Inc. (the “Company”) announced its financial results for the quarter ended September 30, 2020.  The full text of the press release issued in connection with the announcement is furnished as Exhibit 99.1 to this Current Report on Form 8-K. On October 28, 2020, the Company also posted a Q3 2020 Earnings Results Presentation dated October 28, 2020, on the Company's Investor Relations website at investor.ssctech.com.

The information in this Form 8-K (including Exhibit 99.1 and 99.2) shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934 (the “Exchange Act”) or otherwise subject to the liabilities of that section, nor shall it be deemed incorporated by reference in any filing under the Securities Act of 1933 or the Exchange Act, except as expressly set forth by specific reference in such a filing.

Item 9.01. Financial Statements and Exhibits

(d) Exhibits

The following exhibit relating to Item 2.02 shall be deemed to be furnished, and not filed:

99.1	Press Release, issued by the Company on October 28, 2020.
99.2	Q3 2020 Earnings Presentation dated October 28, 2020.
104	The cover page from this Current Report on Form 8-K, formatted in Inline XBRL

SIGNATURE

Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

	SS&C TECHNOLOGIES HOLDINGS, INC.
Date: October 28, 2020	By:	/s/ Patrick J. Pedonti
		Patrick J. Pedonti
		Senior Vice President and Chief Financial Officer

EX-99.1

Exhibit 99.1

SS&C Technologies Releases Third Quarter 2020 Earnings Results

Q3 2020 GAAP revenue $1,152.8 million, up 0.8%, Fully Diluted GAAP Earnings Per Share $0.60, up 66.7%

Adjusted revenue $1,156.2 million, up 0.5%, Adjusted Diluted Earnings Per Share $1.10, up 18.3%

WINDSOR, CT, October 28, 2020 (PR Newswire) SS&C Technologies Holdings, Inc. (NASDAQ: SSNC), a global provider of investment, financial, and healthcare software-enabled services and software, today announced its financial results for the third quarter ended September 30, 2020.

(in millions, except per share data):	Three months ended September 30, 2020	Three months ended September 30, 2019	Change
GAAP Results
Revenue	$1,152.8	$1,144.2	0.8%
Operating income	257.0	227.6	12.9%
Operating income margin	22.3%	19.9%	240 bp
Net income	159.4	95.0	67.8%
Diluted earnings per share	$0.60	$0.36	66.7%
Adjusted Non-GAAP Results (defined in Notes 1 – 4 below)
Adjusted revenue	$1,156.2	$1,150.8	0.5%
Adjusted operating income	448.8	425.6	5.5%
Adjusted operating income margin	38.8%	37.0%	180 bp
Adjusted net income	294.2	245.3	19.9%
Adjusted diluted earnings per share	$1.10	$0.93	18.3%

Third Quarter Highlights:

• Repurchased 3.1 million shares of common stock in Q3 2020, at an average price of $61.44 per share for $191.9 million.

• Net leverage ratio and net secured leverage ratio are 3.58 times and 2.52 times consolidated EBITDA, respectively.

• Adjusted consolidated EBITDA increased by $20.5 million to $466.3 million in Q3 2020.  Adjusted consolidated EBITDA margin was 40.3% of adjusted revenue, an increase from 38.7% of adjusted revenue in Q3 2019.

• Adjusted operating income margins were 38.8% of adjusted revenue in Q3 2020 compared to 37.0% in Q3 2019.

• Extended our partnership with St. James Place through 2034.

• On December 10, SS&C Intralinks is hosting a groundbreaking global virtual summit exploring how COVID-19 and other market realignments are reshaping the alternative investments landscape, and what lies ahead for investors and fund managers.

“Our third quarter results reflect the strength of SS&C’s business model as we weather the global pandemic” says Bill Stone, Chairman and Chief Executive officer. “This pandemic has created urgency within our workforce; our sales teams have focus and energy and this is translating into great pipelines. We secured two large retirement solutions contracts with ICMA and Nationwide. We are very excited about 2021. As we move to normalcy, the health of our employees will be the deciding factor as we embark on our reopening plan.”

Operating Cash Flow

SS&C generated net cash from operating activities of $755.1 million for the nine months ended September 30, 2020, compared to $755.0 million for the same period in 2019. SS&C ended the third quarter with $184.5 million in cash and cash equivalents and $6,910.7 million in gross debt, for a net debt balance of $6,726.2 million.  SS&C’s consolidated net leverage ratio as defined in our credit agreement stood at 3.58 times consolidated EBITDA as of September 30, 2020. SS&C’s net secured leverage ratio stood at 2.52 times consolidated EBITDA as of September 30, 2020.

SS&C’s COVID-19 Response

SS&C is operating in a global public health crisis.  Covid-19’s impact is devastating to many and nations are being tested from human and economic perspectives.  As long as the duration and scale of the pandemic and economic slowdown remains we expect markets to be volatile. The slowdown in the global economy will take time to recover.

Due to this uncertainty, we have withdrawn our quarterly and 2020 guidance.  We are providing 2020 scenario analysis, based on a number of assumptions, which can be found in our Q3 2020 earnings results slides at investor.ssctech.com.

Non-GAAP Financial Measures

Adjusted revenue, adjusted operating income, adjusted consolidated EBITDA, adjusted net income and adjusted diluted earnings per share are non-GAAP measures. See the accompanying notes for the reconciliations and definitions for each of these non-GAAP measures and the reasons our management believes these measures provide useful information to investors regarding our financial condition and results of operations.

Earnings Call and Press Release

SS&C’s Q3 2020 earnings call will take place at 5:00 p.m. eastern time today, October 28, 2020. The call will discuss Q3 2020 results and business outlook. Interested parties may dial 844-343-4183 (US and Canada) or 647-689-5128 (International), and request the “SS&C Technologies Third Quarter 2020 Conference Call”; conference ID #1834904.  In connection with the earnings call, a presentation will be available on SS&C’s website at http://investor.ssctech.com/results.cfm. A replay will be available after 10:00 p.m. eastern time on October 28, 2020, until midnight on November 4, 2020. The replay dial-in number is 800-585-8367 or 416-621-4642; access code #1834904. The call will also be available for replay on SS&C’s website after October 28, 2020; access: http://investor.ssctech.com/results.cfm.

Certain information contained in this press release relating to, among other things, the Company’s scenario analysis, constitute forward-looking statements for purposes of the safe harbor provisions under the Private Securities Litigation Reform Act of 1995.  Forward-looking statements include statements concerning plans, objectives, goals, strategies, expectations, intentions, projections, developments, future events, performance, underlying assumptions, and other statements that are other than statements of historical facts.Without limiting the foregoing, the words “believes”, “anticipates”, “plans”, “expects”, “estimates”, “projects”, “forecasts”, “may”, “assume”, “intend”, “will”, “continue”, “opportunity”, “predict”, “potential”, “future”, “guarantee”, “likely”, “target”, “indicate”, “would”, “could” and “should” and similar expressions are intended to identify forward-looking statements, although not all forward-looking statements are accompanied by such words.  Such statements reflect management’s best judgment based on factors currently known but are subject to risks and uncertainties, which could cause actual results to differ materially from those anticipated.  Such risks and uncertainties include, but are not limited to, the state of the economy and the financial services industry and

other industries in which the Company’s clients operate, the Company’s ability to realize anticipated benefits from its acquisitions, including DST Systems, Inc.,  the effect of customer consolidation on demand for the Company’s products and services, the increasing focus of the Company’s business on the hedge fund industry, the variability of revenue as a result of activity in the securities markets, the ability to retain and attract clients, fluctuations in customer demand for the Company’s products and services, the intensity of competition with respect to the Company’s products and services, the exposure to litigation and other claims, terrorist activities and other catastrophic events, disruptions, attacks or failures affecting the Company’s software-enabled services, risks associated with the Company’s foreign operations, privacy concerns relating to the collection and storage of personal information, evolving regulations and increased scrutiny from regulators,  the Company’s ability to protect intellectual property assets and litigation regarding intellectual property rights, delays in product development, investment decisions concerning cash balances, regulatory and tax risks, risks associated with the Company’s joint ventures, changes in accounting standards, risks related to the Company’s substantial indebtedness, the market price of the Company’s stock prevailing from time to time, and the risks discussed in the “Risk Factors” section of the Company’s most recent Annual Report on Form 10-K and Quarterly Report on Form 10-Q, which are on file with the Securities and Exchange Commission and can also be accessed on our website.  Forward-looking statements speak only as of the date on which they are made and, except to the extent required by applicable securities laws, we undertake no obligation to update or revise any forward-looking statements.

About SS&C Technologies

SS&C is a global provider of services and software for the financial services and healthcare industries. Founded in 1986, SS&C is headquartered in Windsor, Connecticut, and has offices around the world. Some 18,000 financial services and healthcare organizations, from the world's largest companies to small and mid-market firms, rely on SS&C for expertise, scale, and technology.

Follow SS&C on Twitter, Linkedin and Facebook.

For more information

Patrick Pedonti

Chief Financial Officer

Tel: +1-860-298-4738

E-mail: InvestorRelations@sscinc.com

Justine Stone

Investor Relations

Tel: +1-212-367-4705

E-mail: InvestorRelations@sscinc.com

SS&C Technologies Holdings, Inc. and Subsidiaries

Condensed Consolidated Statements of Comprehensive Income

(in millions, except per share data)

(unaudited)

	Three Months Ended September 30,						Nine Months Ended September 30,
	2020			2019			2020			2019
Revenues:
Software-enabled services	$	958.4		$	960.0		$	2,892.9		$	2,894.7
License, maintenance and related		194.4			184.2			571.6			534.7
Total revenues		1,152.8			1,144.2			3,464.5			3,429.4
Cost of revenues:
Software-enabled services		551.6			567.9			1,685.0			1,727.9
License, maintenance and related		77.3			74.8			236.3			225.8
Total cost of revenues		628.9			642.7			1,921.3			1,953.7
Gross profit		523.9			501.5			1,543.2			1,475.7
Operating expenses:
Selling and marketing		85.2			88.0			260.9			261.3
Research and development		97.0			94.9			298.7			283.3
General and administrative		84.7			91.0			266.5			278.0
Total operating expenses		266.9			273.9			826.1			822.6
Operating income		257.0			227.6			717.1			653.1
Interest expense, net		(54.7	)		(98.5	)		(192.6	)		(304.4	)
Other income (expense), net		15.1			(10.3	)		18.8			27.1
Equity in earnings of unconsolidated affiliates, net		0.2			(0.1	)		(0.1	)		2.1
Gain (loss) on extinguishment of debt		0.4			—			(2.2	)		(7.1	)
Income before income taxes		218.0			118.7			541.0			370.8
Provision for income taxes		58.6			23.7			112.9			73.9
Net income	$	159.4		$	95.0		$	428.1		$	296.9
Basic earnings per share	$	0.62		$	0.38		$	1.67		$	1.17
Diluted earnings per share	$	0.60		$	0.36		$	1.61		$	1.12
Basic weighted average number of common shares outstanding		256.7			253.3			256.3			252.7
Diluted weighted average number of common and common equivalent shares outstanding		266.7			262.7			266.0			264.1
Net income	$	159.4		$	95.0		$	428.1		$	296.9
Other comprehensive income (loss), net of tax:
Change in unrealized loss on interest rate swaps		(0.1	)		(0.5	)		(2.8	)		(3.3	)
Foreign currency exchange translation adjustment		70.7			(62.6	)		(45.9	)		(31.8	)
Total other comprehensive income (loss), net of tax		70.6			(63.1	)		(48.7	)		(35.1	)
Comprehensive income	$	230.0		$	31.9		$	379.4		$	261.8

SS&C Technologies Holdings, Inc. and Subsidiaries

Condensed Consolidated Balance Sheets

(in millions)

(unaudited)

	September 30,		December 31,
	2020		2019
Assets
Current assets:
Cash and cash equivalents	$	184.5	$	152.8
Funds receivable and funds held on behalf of clients		781.5		1,729.9
Accounts receivable, net		647.8		669.7
Contract asset		19.6		20.0
Prepaid expenses and other current assets		182.3		204.5
Restricted cash		6.0		9.0
Total current assets		1,821.7		2,785.9
Property, plant and equipment, net		420.5		466.4
Operating lease right-of-use assets		353.2		375.3
Investments		184.2		160.1
Unconsolidated affiliates		224.1		234.8
Contract asset		84.7		78.6
Goodwill		7,984.2		7,959.9
Intangible and other assets, net		4,402.8		4,680.1
Total assets	$	15,475.4	$	16,741.1
Liabilities and Stockholders’ Equity
Current liabilities:
Current portion of long-term debt	$	77.8	$	76.3
Client funds obligations		781.5		1,729.9
Accounts payable		28.4		36.9
Income taxes payable		8.9		13.3
Accrued employee compensation and benefits		248.3		290.6
Interest payable		0.1		27.6
Other accrued expenses		274.0		268.4
Deferred revenue		319.9		333.2
Total current liabilities		1,738.9		2,776.2
Long-term debt, net of current portion		6,766.5		7,077.8
Operating lease liabilities		327.2		348.6
Other long-term liabilities		302.2		333.7
Deferred income taxes		957.3		1,088.7
Total liabilities		10,092.1		11,625.0
Total stockholders’ equity		5,383.3		5,116.1
Total liabilities and stockholders’ equity	$	15,475.4	$	16,741.1

SS&C Technologies Holdings, Inc. and Subsidiaries

Condensed Consolidated Statements of Cash Flows

(in millions)

(unaudited)

	Nine Months Ended September 30,
	2020			2019
Cash flow from operating activities:
Net income	$	428.1		$	296.9
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization		544.1			582.8
Equity in earnings of unconsolidated affiliates, net		0.1			(2.1	)
Cash distributions received from unconsolidated affiliates		8.0			2.3
Stock-based compensation expense		65.9			55.7
Net gains on investments		(17.3	)		(26.7	)
Amortization and write-offs of loan origination costs and original issue discounts		10.4			13.3
Loss on extinguishment of debt		1.3			—
Loss on sale or disposition of property and equipment		4.0			3.1
Deferred income taxes		(115.9	)		(73.6	)
Provision for doubtful accounts		6.0			4.0
Changes in operating assets and liabilities, excluding effects from acquisitions:
Accounts receivable		20.0			19.1
Prepaid expenses and other assets		(86.2	)		24.7
Contract assets		(4.0	)		(28.1	)
Accounts payable		(9.5	)		11.4
Accrued expenses and other liabilities		(80.9	)		(123.6	)
Income taxes prepaid and payable		38.9			(27.0	)
Deferred revenue		(57.9	)		22.8
Net cash provided by operating activities		755.1			755.0
Cash flow from investing activities:
Cash paid for business acquisitions, net of cash acquired		(113.5	)		3.2
Additions to property and equipment		(25.4	)		(48.0	)
Additions to capitalized software		(54.6	)		(51.1	)
Investments in securities		(60.8	)		(0.3	)
Proceeds from sales / maturities of investments		50.8			46.1
Distributions received from unconsolidated affiliates		—			2.1
Collection of other non-current receivables		7.6			7.7
Net cash used in investing activities		(195.9	)		(40.3	)
Cash flow from financing activities:
Cash received from debt borrowings		286.0			2,150.0
Repayments of debt		(616.3	)		(2,779.1	)
Fees paid for debt extinguishment and refinancing activities		—			(6.0	)
Net (decrease) increase in client funds obligations		(949.2	)		0.8
Proceeds from exercise of stock options		129.6			74.5
Withholding taxes paid related to equity award net share settlement		(8.1	)		(19.2	)
Purchases of common stock for treasury		(219.8	)		(60.3	)
Dividends paid on common stock		(99.9	)		(76.0	)
Net cash used in financing activities		(1,477.7	)		(715.3	)
Effect of exchange rate changes on cash, cash equivalents and restricted cash		(2.0	)		(1.8	)
Net decrease in cash, cash equivalents and restricted cash		(920.5	)		(2.4	)
Cash, cash equivalents and restricted cash, beginning of period		1,789.4			1,113.3
Cash, cash equivalents and restricted cash and cash equivalents, end of period	$	868.9		$	1,110.9
Reconciliation of cash, cash equivalents and restricted cash and cash equivalents:
Cash and cash equivalents	$	184.5		$	157.5
Restricted cash and cash equivalents		6.0			7.0
Restricted cash and cash equivalents included in funds receivable and funds held on behalf of clients		678.4			946.4
	$	868.9		$	1,110.9

SS&C Technologies Holdings, Inc. and Subsidiaries

Disclosures Relating to Non-GAAP Financial Measures

Note 1. Reconciliation of Revenues to Adjusted Revenues

Adjusted revenues represents revenues adjusted to include a) amounts that would have been recognized if deferred revenue were not adjusted to fair value at the date of acquisition and b) amounts that would have been recognized if not for adjustments to deferred revenue and retained earnings related to the adoption of ASC 606.  Adjusted revenues is presented because we use this measure to evaluate performance of our business against prior periods and believe it is a useful indicator of the underlying performance of our business.  Adjusted revenues is not a recognized term under generally accepted accounting principles (“GAAP”).  Adjusted revenues does not represent revenues, as that term is defined under GAAP, and should not be considered as an alternative to revenues as an indicator of our operating performance.  Adjusted revenues as presented herein is not necessarily comparable to similarly titled measures presented by other companies.  Below is a reconciliation of adjusted revenues to revenues, the GAAP measure we believe to be most directly comparable to adjusted revenues.

	Three Months Ended September 30,				Nine Months Ended September 30,
(in millions)	2020		2019		2020		2019
Revenues	$	1,152.8	$	1,144.2	$	3,464.5	$	3,429.4
ASC 606 adoption impact		1.4		4.0		4.2		12.1
Purchase accounting adjustments impact on revenue		2.0		2.6		6.3		15.1
Adjusted revenues	$	1,156.2	$	1,150.8	$	3,475.0	$	3,456.6

The following is a breakdown of software-enabled services and license, maintenance and related revenues and adjusted software-enabled services and license, maintenance and related revenues.

	Three Months Ended September 30,				Nine Months Ended September 30,
(in millions)	2020		2019		2020		2019
Software-enabled services	$	958.4	$	960.0	$	2,892.9	$	2,894.7
License, maintenance and related		194.4		184.2		571.6		534.7
Total revenues	$	1,152.8	$	1,144.2	$	3,464.5	$	3,429.4
Software-enabled services	$	960.3	$	962.8	$	2,898.3	$	2,910.4
License, maintenance and related		195.9		188.0		576.7		546.2
Total adjusted revenues	$	1,156.2	$	1,150.8	$	3,475.0	$	3,456.6

Note 2. Reconciliation of Operating Income to Adjusted Operating Income

Adjusted operating income represents operating income adjusted for amortization of intangible assets, stock-based compensation, purchase accounting adjustments for deferred revenue and related costs, ASC 606 adoption impact and other expenses. Adjusted operating income is presented because we use this measure to evaluate performance of our business and believe it is a useful indicator of our underlying performance.  Adjusted operating income is not a recognized term under GAAP.  Adjusted operating income does not represent operating income, as that term is defined under GAAP, and should not be considered as an alternative to operating income as an indicator of our operating performance. Adjusted operating income as presented herein is not necessarily comparable to similarly titled measures by other companies.  The following is a reconciliation between adjusted operating income and operating income, the GAAP measure we believe to be most directly comparable to adjusted operating income.

	Three Months Ended September 30,				Nine Months Ended September 30,
(in millions)	2020		2019		2020		2019
Operating income	$	257.0	$	227.6	$	717.1	$	653.1
Amortization of intangible assets		153.9		160.2		463.9		489.8
Stock-based compensation		21.3		17.1		65.9		55.7
Purchase accounting adjustments (1)		10.2		11.4		30.1		41.0
ASC 606 adoption impact		1.5		4.1		4.4		12.3
Other (2)		4.9		5.2		41.7		20.8
Adjusted operating income	$	448.8	$	425.6	$	1,323.1	$	1,272.7

(1) Purchase accounting adjustments include (a) an adjustment to increase revenues by the amount that would have been recognized if deferred revenue were not adjusted to fair value at the date of acquisition, (b) an adjustment to increase personnel and commissions expense by the amount that would have been recognized if prepaid commissions and deferred personnel costs were not adjusted to fair value at the date of the acquisitions and (c) an adjustment to decrease depreciation expense by the amount that would not have been recognized if property, plant and equipment were not adjusted to fair value at the date of acquisition.

(2) Other includes expenses and income that are permitted to be excluded per the terms of our Credit Agreement from Consolidated EBITDA, a financial measure used in calculating our covenant compliance. These include expenses and income related to foreign currency transactions, facilities and workforce restructuring, legal settlements and business acquisitions.

Note 3. Reconciliation of Net Income to EBITDA, Consolidated EBITDA and Adjusted Consolidated EBITDA

EBITDA represents net income before interest expense, income taxes, depreciation and amortization. Consolidated EBITDA, defined under our Credit Agreement entered into in April 2018, as amended, is used in calculating covenant compliance, and is EBITDA adjusted for certain items. Consolidated EBITDA is calculated by subtracting from or adding to EBITDA items of income or expense described below. Adjusted Consolidated EBITDA is calculated by subtracting acquired EBITDA (as defined below) from Consolidated EBITDA. EBITDA, Consolidated EBITDA and Adjusted Consolidated EBITDA are presented because we use these measures to evaluate performance of our business and believe them to be useful indicators of an entity’s debt capacity and its ability to service debt. EBITDA, Consolidated EBITDA and Adjusted Consolidated EBITDA are not recognized terms under GAAP and should not be considered in isolation or as alternatives to operating income, net income or cash flows from operating activities as indicators of our operating performance. These measures are not necessarily comparable to similarly titled measures by other companies.  The following is a reconciliation of EBITDA, Consolidated EBITDA and Adjusted Consolidated EBITDA to net income.

	Three Months Ended September 30,						Nine Months Ended September 30,						Twelve Months Ended September 30,
(in millions)	2020			2019			2020			2019			2020
Net income	$	159.4		$	95.0		$	428.1		$	296.9		$	569.7
Interest expense, net		54.7			98.5			192.6			304.4			293.1
Provision for income taxes		58.6			23.7			112.9			73.9			132.2
Depreciation and amortization		180.0			190.1			544.1			582.8			736.4
EBITDA		452.7			407.3			1,277.7			1,258.0			1,731.4
Stock-based compensation		21.3			17.1			65.9			55.7			82.6
Acquired EBITDA and cost savings (1)		—			5.5			2.3			39.8			8.0
Non-cash portion of straight-line rent expense		0.1			(0.1	)		(0.2	)		0.3			(0.3	)
(Gain) loss on extinguishment of debt		(0.4	)		—			2.2			7.1			2.2
Equity in earnings of unconsolidated affiliates, net		(0.2	)		0.1			0.1			(2.1	)		(1.4	)
Purchase accounting adjustments (2)		1.5			1.9			5.2			12.4			6.8
ASC 606 adoption impact		1.5			4.1			4.4			12.3			11.1
Other (3)		(10.2	)		15.4			22.9			(6.3	)		36.3
Consolidated EBITDA	$	466.3		$	451.3		$	1,380.5		$	1,377.2		$	1,876.7
Less:  acquired EBITDA and cost savings (1)		—			(5.5	)		(2.3	)		(39.8	)		(8.0	)
Adjusted Consolidated EBITDA	$	466.3		$	445.8		$	1,378.2		$	1,337.4		$	1,868.7

(1) Acquired EBITDA reflects the EBITDA impact of significant businesses that were acquired during the period as if the acquisition occurred at the beginning of the period, as well as cost savings enacted in connection with acquisitions.

(2) Purchase accounting adjustments include (a) an adjustment to increase revenues by the amount that would have been recognized if deferred revenue were not adjusted to fair value at the date of acquisition and (b) an adjustment to increase personnel and commissions expense by the amount that would have been recognized if prepaid commissions and deferred personnel costs were not adjusted to fair value at the date of the acquisitions.

(3) Other includes expenses and income that are permitted to be excluded per the terms of our Credit Agreement from Consolidated EBITDA, a financial measure used in calculating our covenant compliance. These include expenses and income related to foreign currency transactions, investment gains and losses, facilities and workforce restructuring, legal settlements, business acquisitions and other items.

Note 4. Reconciliation of Net Income to Adjusted Net Income and Diluted Earnings Per Share to Adjusted Diluted Earnings Per Share

Adjusted net income and adjusted diluted earnings per share represent net income and earnings per share before amortization of intangible assets and deferred financing costs, stock-based compensation, purchase accounting adjustments and other items. We

consider adjusted net income and adjusted diluted earnings per share to be important to management and investors because they represent our operational performance exclusive of the effects of amortization of intangible assets and deferred financing costs, stock-based compensation, purchase accounting adjustments, loss on extinguishment of debt and other items, that are not operational in nature or comparable to those of our competitors. Adjusted net income and adjusted diluted earnings per share are not recognized terms under GAAP.  Adjusted net income and adjusted diluted earnings per share do not represent net incomeor diluted earningsper share, as those terms are defined under GAAP, and should not be considered as alternatives to net incomeor diluted earningsper share as indicators of our operating performance.  Adjusted net income and adjusted diluted earnings per share as presented herein are not necessarily comparable to similarly titled measures presented by other companies.  Below is a reconciliation of adjusted net income and adjusted diluted earnings per share to net income and diluted earningsper share, the GAAP measures we believe to be most directly comparable to adjusted net income and adjusted diluted earnings per share.

	Three Months Ended September 30,						Nine Months Ended September 30,
(in millions, except per share data)	2020			2019			2020			2019
GAAP – Net income	$	159.4		$	95.0		$	428.1		$	296.9
Plus: Amortization of intangible assets		153.9			160.2			463.9			489.8
Plus: Amortization of deferred financing costs and original issue discount		3.4			4.5			10.4			13.3
Plus: Stock-based compensation		21.3			17.1			65.9			55.7
(Less) Plus: (Gain) loss on extinguishment of debt		(0.4	)		—			2.2			7.1
Plus: Purchase accounting adjustments (1)		10.2			11.4			30.1			41.0
Plus: ASC 606 adoption impact		1.5			4.1			4.4			12.3
(Less) Plus: Equity in earnings of unconsolidated affiliates, net		(0.2	)		0.1			0.1			(2.1	)
(Less) Plus: Other (2)		(10.2	)		15.4			22.9			(6.3	)
Income tax effect (3)		(44.7	)		(62.5	)		(183.8	)		(181.4	)
Adjusted net income	$	294.2		$	245.3		$	844.2		$	726.3
Adjusted diluted earnings per share	$	1.10		$	0.93		$	3.17		$	2.75
GAAP diluted earnings per share	$	0.60		$	0.36		$	1.61		$	1.12
Diluted weighted-average shares outstanding		266.7			262.7			266.0			264.1

(1) Purchase accounting adjustments include (a) an adjustment to increase revenues by the amount that would have been recognized if deferred revenue were not adjusted to fair value at the date of acquisition, (b) an adjustment to increase personnel and commissions expense by the amount that would have been recognized if prepaid commissions and deferred personnel costs were not adjusted to fair value at the date of the acquisitions and (c) an adjustment to decrease depreciation expense by the amount that would not have been recognized if property, plant and equipment were not adjusted to fair value at the date of acquisition.

(2) Other includes expenses and income that are permitted to be excluded per the terms of our Credit Agreement from Consolidated EBITDA, a financial measure used in calculating our covenant compliance. These include expenses and income related to foreign currency transactions, investment gains and losses, facilities and workforce restructuring, legal settlements, business acquisitions and other items.

(3) An estimated normalized effective tax rate of approximately 26% for the three and nine months ended September 30, 2020 and 2019, respectively, has been used to adjust the provision for income taxes for the purpose of computing adjusted net income.

EX-99.2

SS&C Technologies (NASDAQ:SSNC) Q3 2020 Earnings Results

Safe Harbor Statement This presentation contains forward-looking statements, as defined by federal and state securities laws, which are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Forward-looking statements include statements concerning plans, objectives, goals, strategies, expectations, intentions, projections, developments, future events, performance or products, underlying assumptions, and other statements which are other than statements of historical facts. In some cases, you can identify forward-looking statements by terminology such as ''may,'' ''will,'' ''should,'' “hope,'' "expects,'' ''intends,'' ''plans,'' ''anticipates,'' "contemplates," ''believes,'' ''estimates,'' ''predicts,'' ''projects,'' ''potential,'' ''continue,'' and other similar terminology or the negative of these terms. From time to time, we may publish or otherwise make available forward-looking statements of this nature. All such forward-looking statements, whether written or oral, and whether made by us or on our behalf, are expressly qualified by the cautionary statements described on this message including those set forth below. All statements contained in this presentation are made only as of the date of this presentation. In addition, except to the extent required by applicable securities laws, we undertake no obligation to update or revise any forward-looking statements to reflect events, circumstances, or new information after the date of the information or to reflect the occurrence or likelihood of unanticipated events, and we disclaim any such obligation. Forward-looking statements are only predictions that relate to future events or our future performance and are subject to known and unknown risks, uncertainties, assumptions, and other factors that may cause actual results, outcomes, levels of activity, performance, developments, or achievements to be materially different from any future results, outcomes, levels of activity, performance, developments, or achievements expressed, anticipated, or implied by these forward-looking statements. Other factors that could affect actual results, outcomes, levels of activity, performance, developments or achievements can be found under the heading “Risk Factors” in SS&C Technologies Holdings, Inc.’s most recent Annual Report on Form 10-K and Quarterly Report on Form 10-Q. As a result, we cannot guarantee future results, outcomes, levels of activity, performance, developments, or achievements, and there can be no assurance that our expectations, intentions, anticipations, beliefs, or projections will result or be achieved or accomplished.

SS&C’s Response to the COVID-19 Pandemic Maintaining Business Continuity, Operational capabilities, and Employee Safety Supporting our Clients through this unprecedented time We have instituted safety measures including work from home, work rotations for essential functions and closing of locations following the recommendations of regulators and health organizations around the world. The primary goal is to ensure our clients’ and every SS&C employee's health and safety. 99% of our global workforce is working from home at this time. 4 international offices have reopened. Plan on reopening more locations in the next several months. We have been reaching out to our customers offering our assistance, expertise and technological resources. The challenges of COVID-19 are proving the value of our investments in worldwide resiliency. We are providing capability via technology at scale and we are meeting our deliverables. Increased inbound interest for cloud hosting and outsourced services as firms in this remote working environment look to us to provide access to production systems, and augment their staff and processing capability. SS&C Health is developing a flu vaccine campaign to increase flu vaccine penetration within the market. Ultimately will use this campaign design for similar outreach, including COVID-19 vaccinations. Feedback from clients has been overwhelmingly positive, service levels remain very high. Proven, resilient business model 95.3% revenue retention LTM as of September 30, 2020. SS&C has high contractually recurring revenue base. Less than 3.0% of 2019 revenues were from perpetual licenses and professional services. Cash flow provided by operations was $755.1 million for the nine months ended September 30, 2020 Adjusted diluted earnings per share in Q3 2020 were $1.10 per share, up 18.3%.

COVID-19 Scenario Analysis Assumptions Economic Decline (Late 2021 Recovery) Baseline (Mid 2021 Recovery) Infection rate stabilizes and improves from this point starting in Q4 Continued return to work with 50% of workforce expected back by end of Q1 2021 Vaccine approved in Q4 and distribution begins with estimates of large scale vaccination for early to mid 2021 Buying behavior in Q4 improves and customers show increasing willingness to embark on large scale projects. Infection rates remain at current levels Some reopening and return to work but majority of employees remain at home Vaccine process continues but approvals and distribution not expected to commence until early to mid 2021 Customer appetite and buying behavior consistent with current levels Economic Improvement (Early 2021 Recovery) Infection rate escalating from current levels Vaccine approval, production and distribution is delayed to mid to late 2021 Customers remain hesitant about capital expenditures and large scale projects

FY 2020 COVID-19 Scenario Analysis Update Metric Economic Decline (Late 2021 Recovery) Baseline (Mid 2021 Recovery) Economic Improvement (Early 2021 Recovery) Adjusted Revenues ($M) $4,600.0 $4,625.0 $4,650.0 Adjusted Net Income ($M) $1,110.0 $1,120.0 $1,130.0 Diluted Shares Outstanding (M) 265.5 266.3 267.0 Operating Cash Flow ($M) $1,100.0 $1,115.0 $1,130.0 Capital Expenditures (% of Revenue) 2.4% 2.4% 2.4% EBITDA Margin (% of Revenue) 39.3% 39.4% 39.5% Revenue Assumptions Revenue retention remains consistent with historical levels, 95.0% - 96.0% Nonrecurring revenue (perpetual license and maintenance) and sales to new customers are impacted in the near term Fund services business continues to perform at the lower end of historical ranges Large scale outsourcing deals and license sales continue but at lower levels than originally assumed Capita and any future acquisitions are not incorporated in our scenarios and would be additive to revenue and earnings Expense Assumptions Incremental expenses are controlled Reduced hiring Marketing reductions Travel and expense remains dormant for remainder of 2020 Interest rates stay at current levels

Q3 2020 financial highlights Metric Q3 2020 Q3 2019 $ +/- % +/- Adjusted Revenues ($M) $1,156.2 $1,150.8 $5.4 0.5% Adjusted Operating Income ($M) $448.8 $425.6 $23.2 5.5% Adjusted Consolidated EBITDA ($M) $466.3 $445.8 $20.5 4.6% Adjusted Net Income ($M) $294.2 $245.3 $48.9 19.9% Adjusted Diluted Earnings Per Share $1.10 $0.93 $0.17 18.3% Operating Cash Flow for nine months ended September 30, 2020 ($M) $755.1 $755.0 $0.1 0.0% Note: See appendix for reconciliation of non-GAAP financial measures

Operating cash flow was $755.1 M for the nine months ended September 30, 2020 Debt Net leverage ratio is 3.58x LTM consolidated EBITDA, secured net leverage ratio is 2.52x LTM consolidated EBITDA of $1,876.7 M Shareholder Returns Repurchased 3.1 M shares of common stock in Q3 2020, at an average price of $61.44 per share for $191.9 M Paid $35.9 M in dividends in Q3 2020 Debt review and capital allocation

Organic Growth Calculations 2020 1Adjustments include $1.3 M for out-of-pocket expense reimbursements, and $15.0 M for DST clients that terminated pre-acquisition. 2Adjustments include $5.7 M for out-of-pocket expense reimbursements, and $11.2 M for DST clients that terminated pre-acquisition. 3Adjustments include $4.6 M for out-of-pocket expense reimbursements, and $10.0 M for DST clients that terminated pre-acquisition. Q1 2020 Q2 2020 Q3 2020 Total Adjusted Revenues ($M) 1,178.0 1,140.8 1,156.2 Fx ($M) 5.5 7.2 (6.5) Acquisitions ($M) (18.3) (25.1) (29.8) Organic Revenues ($M) 1,165.2 1,122.9 1,119.9 Adjustments ($M) 16.31 16.92 14.63 Adjusted Organic Revenues ($M) 1,181.5 1,139.8 1,134.5 Adjusted Organic Revenue Growth Rate (%) 2.8% (1.4)% (1.4)%

Adjusted revenue and margins Adjusted revenue ($M) Adjusted consolidated EBITDA margin (%) Note: See appendix for reconciliation of non-GAAP financial measures

Quarterly retention rate is based on a rolling prior twelve months. Yearly retention is the average of four quarters. Acquisitions are not included in retention rate calculation until one year post-acquisition. Revenue retention rates

Adjusted net income and adjusted diluted EPS Adjusted net income ($M) Adjusted diluted EPS Note: See appendix for reconciliation of non-GAAP financial measures

Alternative Assets under Administration ($B)

Appendix Disclosures relating to non-GAAP financial measures

Reconciliation of revenues to adjusted revenues Adjusted revenues represents revenues adjusted to include a) amounts that would have been recognized if deferred revenue were not adjusted to fair value at the date of acquisition and b) amounts that would have been recognized if not for adjustments to deferred revenue and retained earnings related to the adoption of ASC 606. Adjusted revenues is presented because we use this measure to evaluate performance of our business against prior periods and believe it is a useful indicator of the underlying performance of our business. Adjusted revenues is not a recognized term under generally accepted accounting principles (“GAAP”). Adjusted revenues does not represent revenues, as that term is defined under GAAP, and should not be considered as an alternative to revenues as an indicator of our operating performance. Adjusted revenues as presented herein is not necessarily comparable to similarly titled measures presented by other companies. Below is a reconciliation of adjusted revenues to revenues, the GAAP measure we believe to be most directly comparable to adjusted revenues. The following is a breakdown of software-enabled services and license, maintenance and related revenues and adjusted software-enabled services and license, maintenance and related revenues.

Reconciliation of operating income to adjusted operating income Adjusted operating income represents operating income adjusted for amortization of intangible assets, stock-based compensation, purchase accounting adjustments for deferred revenue and related costs, ASC 606 adoption impact and other expenses. Adjusted operating income is presented because we use this measure to evaluate performance of our business and believe it is a useful indicator of our underlying performance. Adjusted operating income is not a recognized term under GAAP. Adjusted operating income does not represent operating income, as that term is defined under GAAP, and should not be considered as an alternative to operating income as an indicator of our operating performance. Adjusted operating income as presented herein is not necessarily comparable to similarly titled measures by other companies. The following is a reconciliation between adjusted operating income and operating income, the GAAP measure we believe to be most directly comparable to adjusted operating income. Purchase accounting adjustments include (a) an adjustment to increase revenues by the amount that would have been recognized if deferred revenue were not adjusted to fair value at the date of acquisition, (b) an adjustment to increase personnel and commissions expense by the amount that would have been recognized if prepaid commissions and deferred personnel costs were not adjusted to fair value at the date of the acquisitions and (c) an adjustment to decrease depreciation expense by the amount that would not have been recognized if property, plant and equipment were not adjusted to fair value at the date of acquisition. Other includes expenses and income that are permitted to be excluded per the terms of our Credit Agreement from Consolidated EBITDA, a financial measure used in calculating our covenant compliance. These include expenses and income related to foreign currency transactions, facilities and workforce restructuring, legal settlements and business acquisitions.

Reconciliation of net income to EBITDA, consolidated EBITDA and adjusted consolidated EBITDA EBITDA represents net income before interest expense, income taxes, depreciation and amortization. Consolidated EBITDA, defined under our Credit Agreement entered into in April 2018, as amended, is used in calculating covenant compliance, and is EBITDA adjusted for certain items. Consolidated EBITDA is calculated by subtracting from or adding to EBITDA items of income or expense described below. Adjusted Consolidated EBITDA is calculated by subtracting acquired EBITDA (as defined below) from Consolidated EBITDA. EBITDA, Consolidated EBITDA and Adjusted Consolidated EBITDA are presented because we use these measures to evaluate performance of our business and believe them to be useful indicators of an entity’s debt capacity and its ability to service debt. EBITDA, Consolidated EBITDA and Adjusted Consolidated EBITDA are not recognized terms under GAAP and should not be considered in isolation or as alternatives to operating income, net income or cash flows from operating activities as indicators of our operating performance. These measures are not necessarily comparable to similarly titled measures by other companies. The following is a reconciliation of EBITDA, Consolidated EBITDA and Adjusted Consolidated EBITDA to net income.

Reconciliation of net income to EBITDA, consolidated EBITDA and adjusted consolidated EBITDA Acquired EBITDA reflects the EBITDA impact of significant businesses that were acquired during the period as if the acquisition occurred at the beginning of the period, as well as cost savings enacted in connection with acquisitions. Purchase accounting adjustments include (a) an adjustment to increase revenues by the amount that would have been recognized if deferred revenue were not adjusted to fair value at the date of acquisition and (b) an adjustment to increase personnel and commissions expense by the amount that would have been recognized if prepaid commissions and deferred personnel costs were not adjusted to fair value at the date of the acquisitions. Other includes expenses and income that are permitted to be excluded per the terms of our Credit Agreement from Consolidated EBITDA, a financial measure used in calculating our covenant compliance. These include expenses and income related to foreign currency transactions, investment gains and losses, facilities and workforce restructuring, legal settlements, business acquisitions and other items.

Reconciliation of net income to adjusted net income and diluted earnings per share to adjusted diluted earnings per share Adjusted net income and adjusted diluted earnings per share represent net income and earnings per share before amortization of intangible assets and deferred financing costs, stock-based compensation, purchase accounting adjustments and other items. We consider adjusted net income and adjusted diluted earnings per share to be important to management and investors because they represent our operational performance exclusive of the effects of amortization of intangible assets and deferred financing costs, stock-based compensation, purchase accounting adjustments, loss on extinguishment of debt and other items, that are not operational in nature or comparable to those of our competitors. Adjusted net income and adjusted diluted earnings per share are not recognized terms under GAAP. Adjusted net income and adjusted diluted earnings per share do not represent net income or diluted earnings per share, as those terms are defined under GAAP, and should not be considered as alternatives to net income or diluted earnings per share as indicators of our operating performance. Adjusted net income and adjusted diluted earnings per share as presented herein are not necessarily comparable to similarly titled measures presented by other companies. Below is a reconciliation of adjusted net income and adjusted diluted earnings per share to net income and diluted earnings per share, the GAAP measures we believe to be most directly comparable to adjusted net income and adjusted diluted earnings per share.

Reconciliation of net income to adjusted net income and diluted earnings per share to adjusted diluted earnings per share Purchase accounting adjustments include (a) an adjustment to increase revenues by the amount that would have been recognized if deferred revenue were not adjusted to fair value at the date of acquisition, (b) an adjustment to increase personnel and commissions expense by the amount that would have been recognized if prepaid commissions and deferred personnel costs were not adjusted to fair value at the date of the acquisitions and (c) an adjustment to decrease depreciation expense by the amount that would not have been recognized if property, plant and equipment were not adjusted to fair value at the date of acquisition. Other includes expenses and income that are permitted to be excluded per the terms of our Credit Agreement from Consolidated EBITDA, a financial measure used in calculating our covenant compliance. These include expenses and income related to foreign currency transactions, investment gains and losses, facilities and workforce restructuring, legal settlements, business acquisitions and other items. An estimated normalized effective tax rate of approximately 26% for the three and nine months ended September 30, 2020 and 2019, respectively, has been used to adjust the provision for income taxes for the purpose of computing adjusted net income.

XML

Document And Entity Information	Oct. 28, 2020
Cover [Abstract]
Document Type	8-K
Amendment Flag	false
Document Period End Date	Oct. 28, 2020
Entity Registrant Name	SS&C TECHNOLOGIES HOLDINGS, INC
Entity Central Index Key	0001402436
Entity Emerging Growth Company	false
Entity File Number	001-34675
Entity Incorporation, State or Country Code	DE
Entity Tax Identification Number	71-0987913
Entity Address, Address Line One	80 Lamberton Road
Entity Address, City or Town	Windsor
Entity Address, State or Province	CT
Entity Address, Postal Zip Code	06095
City Area Code	860
Local Phone Number	298-4500
Written Communications	false
Soliciting Material	false
Pre-commencement Tender Offer	false
Pre-commencement Issuer Tender Offer	false
Security12b Title	Common stock, par value $0.01 per share
Trading Symbol	SSNC
Security Exchange Name	NASDAQ