News & Events

Quarterly Results Call


Quarterly Results Call


KANSAS CITY, Mo., April 27, 2017 /PRNewswire/ -- DST Systems, Inc. (NYSE: DST) reported consolidated net income attributable to DST of $246.4 million ($7.71 per diluted share) for the first quarter 2017 compared to $58.1 million ($1.70 per diluted share) for the first quarter 2016. Income from continuing operations attributable to DST Systems, Inc. ("DST Earnings"), which excludes discontinued operations, was $243.5 million ($7.62 per diluted share) for the first quarter 2017 compared to $39.6 million ($1.16 per diluted share) for the first quarter 2016. Taking into account certain nonGAAP adjustments, DST Earnings were $46.5 million ($1.45 per diluted share) for the first quarter 2017 compared to $38.7 million ($1.13 per diluted share) for the first quarter 2016.

Steve Hooley, Chairman and CEO of DST, said, "We are very pleased with the operating results for the first quarter as well as the completion of our previously announced acquisitions of State Street's ownership in both Boston Financial Data Services, Inc. ("BFDS") and International Financial Data Services Limited ("IFDS U.K."). We are confident that the single-operator model for these businesses will allow us to significantly enhance our clients' experience and improve the execution of our long-term growth strategy."

Mr. Hooley continued, "BFDS currently services approximately one-third of the U.S. Mutual Fund Industry assets utilizing DST's recordkeeping software. The addition of BFDS' operations will allow us to further engage our clients with additional business process outsourcing service offerings, while driving enhanced quality and leveraging our increased scale.

"Similar to DST in the United States, IFDS U.K. services the U.K. and European collective funds market, providing services to 13 of the top 20 asset managers in the U.K. market. The business has a compelling upside for future growth, including the opportunity to offer a more seamless development and implementation of our wealth management platform in the U.K. while continuing to also service the collectives market in the U.K."

Mr. Hooley concluded, "Combined, the transactions are expected to increase DST's annual operating revenues by approximately $660.0 million and generate incremental operating income of $40.0 million and diluted EPS accretion of $0.33 to $0.41 per share within the first 12 months following the acquisition dates, before synergies, restructuring costs and amortization. As we begin to integrate the companies and carry out our key initiatives, we expect to unlock meaningful synergies that will deliver both strategic and financial gains. Looking ahead, we expect to achieve synergies of $20.0 million within 18 months of closing, primarily resulting from the integration of BFDS. Additionally, we expect to make key operational changes to improve the future IFDS U.K. margins. The transactions better position us to continue providing market leading services and solutions to our clients while demonstrating DST's commitment to maximizing value for both the Company and its shareholders."

Please click here to view the Financial Release.

A telephone replay of the call will be available from April 27, 2017, at 10:30 A.M. Central Time through May 4, 2017, at 11:00 P.M. Central Time. The replay number for domestic callers is (800) 585-8367, and for international callers is (404) 537-3406, with the access code of 89614766.

To listen to the live or recorded webcast of the conference call please click the link below and enter your registration information.

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