EX-99.1 3 y90882exv99w1.txt PRESS RELEASE FOR IMMEDIATE RELEASE Contact: James L. Fox Executive Vice President and Chief Financial Officer (212) 907-6015 The BISYS Group, Inc. (NYSE: BSG) www.bisys.com BISYS(R) REPORTS FISCAL FIRST QUARTER RESULTS -- Revenue Increases Four Percent to $237 Million -- NEW YORK, N.Y. (October 21, 2003) -- BISYS, a leading provider of business process outsourcing solutions for the financial services sector, today reported the results of its fiscal first quarter ended September 30, 2003. For the fiscal first quarter, BISYS reported net income of $4.8 million or $0.04 per diluted share, as compared to net income of $16.8 million or $0.14 per diluted share for the same period in fiscal 2003. Actual results for the fiscal first quarter of 2004 include restructuring, impairment, and other charges of $0.11 per diluted share or $13.1 million, including a net tax charge of $0.5 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 and Education Services group. Actual results for the fiscal first quarter of 2003 include restructuring charges of $0.06 per diluted share or $7.5 million, net of a tax benefit of $4.5 million, 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 was $17.9 million or $0.15 per diluted share for the fiscal 2004 first quarter, as compared to $24.3 million or $0.20 per diluted share for the comparable fiscal 2003 quarter. Revenue for the fiscal first quarter 2004 increased to $237.4 million, up four percent from $227.3 million in the same period last year. -more- The Company has included 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 370 clients, representing approximately 2,100 mutual funds, hedge funds, private equity funds, and other alternative investment products with approximately $700 billion in assets under administration. BISYS' largest group also provides retirement services to more than 17,000 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, long-term care, disability, and annuity products. BISYS is also the nation's third largest independent wholesale broker 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 automates 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 www.bisys.com. -more- 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. -tables to follow- THE BISYS GROUP, INC. SUMMARY CONSOLIDATED FINANCIAL DATA (Unaudited) (In thousands, except per share data)
THREE MONTHS ENDED SEPTEMBER 30, Income Statement Data: 2003 2002 --------- --------- Revenues $ 237,382 $ 227,344 --------- --------- Operating cost and expenses: Service and operating 152,512 135,549 Selling, general and administrative 46,129 44,586 Amortization of intangible assets 5,806 4,272 Restructuring, impairment and other charges 12,624 12,079 --------- --------- Total expenses 217,071 196,486 --------- --------- Operating earnings 20,311 30,858 Interest income 325 373 Interest expense (4,664) (4,385) --------- --------- Income before income taxes 15,972 26,846 Income taxes 11,161 10,067 --------- --------- Net income $ 4,811 $ 16,779 ========= ========= Basic earnings per share $ 0.04 $ 0.14 Diluted earnings per share $ 0.04 $ 0.14 Weighted average shares outstanding 119,805 119,535 Weighted average equivalent shares outstanding 121,467 122,647 Pro forma: Reported net income $ 4,811 $ 16,779 Addback: Restructuring, impairment and other charges, net of tax 13,133 7,549 Pro forma net income $ 17,944 $ 24,328 Diluted earnings per share: Reported net income $ 0.04 $ 0.14 Addback: Restructuring, impairment and other charges, net of tax 0.11 0.06 Pro forma net income $ 0.15 $ 0.20
THE BISYS GROUP, INC. SUMMARY CONSOLIDATED FINANCIAL DATA (Unaudited) (In thousands)
THREE MONTHS ENDED SEPTEMBER 30, Business Segment Data: 2003 2002 --------- --------- Revenues: Investment Services $ 128,171 $ 120,944 Insurance and Education Services 57,126 55,699 Information Services 52,085 50,701 --------- --------- Total $ 237,382 $ 227,344 ========= ========= Operating earnings (loss)*: Investment Services $ 16,413 $ 16,084 Insurance and Education Services 8,815 19,669 Information Services 12,887 12,405 Corporate (5,180) (5,221) --------- --------- Total $ 32,935 $ 42,937 ========= =========
* Excludes the impact of restructuring, impairment and other charges in fiscal years 2004 and 2003. --------------------------------------------------------------------------------
SEPTEMBER 30, JUNE 30, Balance Sheet Data: 2003 2003 ------------- ---------- Cash and cash equivalents $ 76,475 $ 79,558 Accounts receivable, net 94,532 96,237 Insurance premiums and commissions receivable, net 149,999 169,780 Total assets 1,487,291 1,526,893 Insurance premiums and commissions payable 53,407 79,398 Short-term borrowings 163,000 172,000 Long-term debt 300,000 300,000 Stockholders' equity 773,914 785,061
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Other Financial Data: THREE MONTHS ENDED SEPTEMBER 30, 2003 2002 ------- ------- Capital expenditures $ 9,487 $13,901 Net cash provided by operating activities $26,432 $16,804 Effective tax rate, excluding impact of restructuring, impairment and other charges 37.25% 37.50%