Delaware | 71-0987913 | |
(State or other jurisdiction of incorporation or organization) | (I.R.S. Employer Identification Number) |
John A. Burgess, Esq. | Keith F. Higgins, Esq. | |
James R. Burke, Esq. | Christopher J. Austin, Esq. | |
Justin L. Ochs, Esq. | Ropes & Gray LLP | |
Wilmer Cutler Pickering Hale and Dorr LLP | ||
60 State Street | ||
Boston, Massachusetts 02109 | ||
(617) 526-6000 |
The information contained in this prospectus is not complete and may be changed. Neither we nor the selling stockholders may sell these securities until the registration statement filed with the Securities and Exchange Commission is effective. This prospectus is not an offer to sell these securities and it is not soliciting offers to buy these securities in any state where the offer or sale is not permitted. |
Proceeds to | ||||||||||||||||
Underwriting Discounts and | Proceeds to | Selling | ||||||||||||||
Price to Public | Commissions | SS&C Holdings | Stockholders | |||||||||||||
Per Share | $ | $ | $ | $ | ||||||||||||
Total | $ | $ | $ | $ |
Morgan Stanley | Credit Suisse | JPMorgan |
Jefferies & Company | Wachovia Securities |
• Portfolio Management/Accounting | • Fund Administration Services | |
• Financial Modeling | • Loan Management/Accounting | |
• Trading/Treasury Operations | • Money Market Processing |
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• | Our business is affected by changes in the state of the general economy and the financial markets, and a slowdown or prolonged downturn in the general economy or the financial |
• | We face significant competition with respect to our products and services, which may result in price reductions, reduced gross margins or loss of market share. | |
• | If we cannot attract, train and retain qualified managerial, technical and sales personnel, we may not be able to provide adequate technical expertise and customer service to our clients or maintain focus on our business strategy. | |
• | Our substantial indebtedness could adversely affect our financial health and prevent us from fulfilling our obligations under our 113/4% senior subordinated notes due 2013 and our senior credit facilities. |
4
• | Carlyle capitalized SS&C Holdings with an aggregate equity contribution of $381.0 million; | |
• | William C. Stone, SS&C’s Chairman of the Board and Chief Executive Officer, contributed $165.0 million of equity in the form of stock and rollover options, and certain other management and employee option holders contributed approximately $9.0 million of additional equity in the form of rollover options, to SS&C Holdings; | |
• | SS&C entered into senior secured credit facilities consisting of: |
– | a $75.0 million revolving credit facility, of which $10.0 million was drawn at closing; and | |
– | a $275.0 million term loan B facility, which was fully drawn at closing and of which the equivalent of $75.0 million was drawn in Canadian dollars by one of SS&C’s Canadian subsidiaries; |
5
• | SS&C issued and sold $205.0 million in aggregate principal amount of 113/4% senior subordinated notes due 2013; |
5
• | all outstanding options to purchase shares of SS&C’s common stock became fully vested and immediately exercisable, and each outstanding option (other than options held by (1) non-employee directors, (2) certain individuals identified in a schedule to the Merger Agreement and (3) individuals who held options that were exercisable for fewer than 100 shares of SS&C’s common stock) were, subject to certain conditions, assumed by SS&C Holdings and converted into an option to acquire common stock of SS&C Holdings; and | |
• | all in-the-money warrants to purchase shares of SS&C’s common stock were cancelled in exchange for cash equal to the excess of the transaction price over the exercise price of the warrants. |
Time of | Time of Initial | |||||||
Transaction | Public Offering | |||||||
Per Share | $ | $ | ||||||
Aggregate | $ | million | $ | million |
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Common stock offered by SS&C Technologies Holdings, Inc. | shares | |
Common stock offered by the selling stockholders | shares | |
Total | ||
Common stock to be outstanding after this offering | shares |
Over-allotment option offered by |
Use of proceeds | We intend to use |
Proposed NASDAQ Global Market symbol | “SSNC” |
• |
• |
• | 1,250,000 shares of common stock reserved as of the date of this prospectus for future issuance under our 2008 stock incentive plan. |
• | no exercise of outstanding options after |
• | a 7.5-for-1 stock split of our common stock that was effected on April 23, 2008; |
• | the effectiveness upon the closing of this offering of our restated certificate of incorporation and our amended and restated bylaws, which contain provisions customary for public companies, as more fully described below under “Description of Capital Stock”; and | |
• | no exercise by the underwriters of their over-allotment option. |
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Predecessor | Successor | Combined | Successor | |||||||||||||||||||||||||
Year | January 1 | November 23 | Year | Year | ||||||||||||||||||||||||
Ended | through | through | Ended | Ended | Six Months | |||||||||||||||||||||||
December 31, | November 22, | December 31, | December 31, | December 31, | Ended June 30, | |||||||||||||||||||||||
2004 | 2005 | 2005 | 2005(1) | 2006 | 2006 | 2007 | ||||||||||||||||||||||
(In thousands, except per share and percentage data) | ||||||||||||||||||||||||||||
Statement of Operations Data: | ||||||||||||||||||||||||||||
Revenues: | ||||||||||||||||||||||||||||
Software licenses | $ | 17,250 | $ | 20,147 | $ | 3,587 | $ | 23,734 | $ | 22,925 | $ | 10,362 | $ | 11,494 | ||||||||||||||
Maintenance | 36,433 | 44,064 | 3,701 | 47,765 | 55,222 | 26,348 | 30,233 | |||||||||||||||||||||
Professional services | 11,320 | 12,565 | 2,520 | 15,085 | 19,582 | 10,128 | 9,043 | |||||||||||||||||||||
Software-enabled services | 30,885 | 67,193 | 7,857 | 75,050 | 107,740 | 52,182 | 65,472 | |||||||||||||||||||||
Total revenues | 95,888 | 143,969 | 17,665 | 161,634 | 205,469 | 99,020 | 116,242 | |||||||||||||||||||||
Total cost of revenues | 33,770 | 59,004 | 7,627 | 66,631 | 100,016 | 47,801 | 61,750 | |||||||||||||||||||||
Gross profit | 62,118 | 84,965 | 10,038 | 95,003 | 105,453 | 51,219 | 54,492 | |||||||||||||||||||||
Operating expenses: | ||||||||||||||||||||||||||||
Selling, marketing, general and administrative | 18,748 | 25,078 | 2,504 | 27,582 | 37,964 | 16,648 | 20,810 | |||||||||||||||||||||
Research and development | 13,957 | 19,199 | 2,071 | 21,270 | 23,620 | 11,804 | 13,037 | |||||||||||||||||||||
Merger costs | — | 36,912 | — | 36,912 | — | — | — | |||||||||||||||||||||
Total operating expenses | 32,705 | 81,189 | 4,575 | 85,764 | 61,584 | 28,452 | 33,847 | |||||||||||||||||||||
Operating income | 29,413 | 3,776 | 5,463 | 9,239 | 43,869 | 22,767 | 20,645 | |||||||||||||||||||||
Interest income | 1,528 | 1,031 | 30 | 1,061 | 388 | 229 | 209 | |||||||||||||||||||||
Interest expense | — | (2,092 | ) | (4,920 | ) | (7,012 | ) | (47,427 | ) | (23,502 | ) | (22,764 | ) | |||||||||||||||
Other (expense) income, net | 99 | 655 | 258 | 913 | 456 | 827 | 580 | |||||||||||||||||||||
Income (loss) before income taxes | 31,040 | 3,370 | 831 | 4,201 | (2,714 | ) | 321 | (1,330 | ) | |||||||||||||||||||
Provision (benefit) for income taxes | 12,030 | 2,658 | — | 2,658 | (3,789 | ) | (1,240 | ) | (98 | ) | ||||||||||||||||||
Net income (loss) | $ | 19,010 | $ | 712 | $ | 831 | $ | 1,543 | $ | 1,075 | $ | 1,561 | $ | (1,232 | ) | |||||||||||||
Earnings (loss) per share(2) | ||||||||||||||||||||||||||||
Basic | $ | 0.90 | $ | 0.03 | $ | 0.12 | $ | 0.15 | $ | 0.22 | $ | (0.17 | ) | |||||||||||||||
Diluted | $ | 0.84 | $ | 0.03 | $ | 0.11 | $ | 0.15 | $ | 0.21 | $ | (0.17 | ) | |||||||||||||||
Weighted average shares outstanding(2) | ||||||||||||||||||||||||||||
Basic | 21,185 | 23,300 | 7,075 | 7,079 | 7,077 | 7,088 | ||||||||||||||||||||||
Diluted | 22,499 | 24,478 | 7,314 | 7,316 | 7,314 | 7,088 | ||||||||||||||||||||||
Other financial data: | ||||||||||||||||||||||||||||
Recurring revenue percentage(3) | 70.2 | % | 77.3 | % | 65.4 | % | 76.0 | % | 79.3 | % | 79.3 | % | 82.3 | % | ||||||||||||||
Consolidated EBITDA(4) | $ | 64,989 | $ | 8,588 | $ | 73,577 | $ | 83,998 | $ | 40,979 | $ | 44,182 |
Predecessor | Successor | Combined | Successor | |||||||||||||||||||||||||
Year | January 1 | November 23 | Year | Year | Year | |||||||||||||||||||||||
Ended | through | through | Ended | Ended | Ended | |||||||||||||||||||||||
December 31, | November 22, | December 31, | December 31, | December 31, | December 31, | |||||||||||||||||||||||
2004 | 2005 | 2005 | 2005(1) | 2006 | 2007 | |||||||||||||||||||||||
(In thousands, except per share and percentage data) | ||||||||||||||||||||||||||||
Statement of Operations Data: | ||||||||||||||||||||||||||||
Revenues: | ||||||||||||||||||||||||||||
Software licenses | $ | 17,250 | $ | 20,147 | $ | 3,587 | $ | 23,734 | $ | 22,925 | $ | 27,514 | ||||||||||||||||
Maintenance | 36,433 | 44,064 | 3,701 | 47,765 | 55,222 | 61,910 | ||||||||||||||||||||||
Professional services | 11,320 | 12,565 | 2,520 | 15,085 | 19,582 | 17,491 | ||||||||||||||||||||||
Software-enabled services | 30,885 | 67,193 | 7,857 | 75,050 | 107,740 | 141,253 | ||||||||||||||||||||||
Total revenues | 95,888 | 143,969 | 17,665 | 161,634 | 205,469 | 248,168 | ||||||||||||||||||||||
Total cost of revenues | 33,770 | 59,004 | 7,627 | 66,631 | 100,016 | 128,882 | ||||||||||||||||||||||
Gross profit | 62,118 | 84,965 | 10,038 | 95,003 | 105,453 | 119,286 | ||||||||||||||||||||||
Operating expenses: | ||||||||||||||||||||||||||||
Selling, marketing, general and administrative | 18,748 | 25,078 | 2,504 | 27,582 | 37,964 | 44,274 | ||||||||||||||||||||||
Research and development | 13,957 | 19,199 | 2,071 | 21,270 | 23,620 | 26,282 | ||||||||||||||||||||||
Merger costs | — | 36,912 | — | 36,912 | — | — | ||||||||||||||||||||||
Total operating expenses | 32,705 | 81,189 | 4,575 | 85,764 | 61,584 | 70,556 | ||||||||||||||||||||||
Operating income | 29,413 | 3,776 | 5,463 | 9,239 | 43,869 | 48,730 | ||||||||||||||||||||||
Interest income | 1,536 | 1,031 | 30 | 1,061 | 388 | 939 | ||||||||||||||||||||||
Interest expense | (8 | ) | (2,092 | ) | (4,920 | ) | (7,012 | ) | (47,427 | ) | (45,463 | ) | ||||||||||||||||
Other income, net | 99 | 655 | 258 | 913 | 456 | 1,911 | ||||||||||||||||||||||
Income (loss) before income taxes | 31,040 | 3,370 | 831 | 4,201 | (2,714 | ) | 6,117 | |||||||||||||||||||||
Provision (benefit) for income taxes | 12,030 | 2,658 | — | 2,658 | (3,789 | ) | (458 | ) | ||||||||||||||||||||
Net income | $ | 19,010 | $ | 712 | $ | 831 | $ | 1,543 | $ | 1,075 | $ | 6,575 | ||||||||||||||||
Earnings per share(2) | ||||||||||||||||||||||||||||
Basic | $ | 0.90 | $ | 0.03 | $ | 0.02 | $ | 0.02 | $ | 0.12 | ||||||||||||||||||
Diluted | $ | 0.84 | $ | 0.03 | $ | 0.02 | $ | 0.02 | $ | 0.12 | ||||||||||||||||||
Weighted average shares outstanding(2) | ||||||||||||||||||||||||||||
Basic | 21,185 | 23,300 | 53,063 | 53,093 | 53,157 | |||||||||||||||||||||||
Diluted | 22,499 | 24,478 | 54,853 | 54,867 | 55,953 | |||||||||||||||||||||||
Other financial data: | ||||||||||||||||||||||||||||
Recurring revenue percentage(3) | 70.2 | % | 77.3 | % | 65.4 | % | 76.0 | % | 79.3 | % | 81.9 | % | ||||||||||||||||
Consolidated EBITDA(4) | $ | 64,989 | $ | 8,588 | $ | 73,577 | $ | 83,998 | $ | 98,667 |
As of June 30, 2007 | ||||||||
Actual | As Adjusted | |||||||
(In thousands) | ||||||||
Balance Sheet Data: | ||||||||
Cash and cash equivalents | $ | 13,210 | $ | |||||
Working capital | 3,488 | |||||||
Total assets | 1,177,600 | |||||||
113/4% senior subordinated notes due 2013 | 205,000 | |||||||
Senior credit facility, including current portion | 258,757 | |||||||
Total stockholders’ equity | 586,722 |
As of December 31, 2007 | ||||||||
Actual | As Adjusted | |||||||
(In thousands) | ||||||||
Balance Sheet Data: | ||||||||
Cash and cash equivalents | $ | 19,175 | $ | |||||
Working capital | 8,016 | |||||||
Total assets | 1,190,495 | |||||||
113/4% senior subordinated notes due 2013 | 205,000 | |||||||
Senior credit facility, including current portion | 238,009 | |||||||
Total stockholders’ equity | 612,593 |
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(1) | Our combined results for the year ended December 31, 2005 represent the addition of the Predecessor period from January 1, 2005 through November 22, 2005 and the Successor period from November 23, 2005 through December 31, 2005. This combination does not comply with generally accepted accounting principles (GAAP) or with the rules for pro forma presentation, but is presented because we believe it provides the most meaningful comparison of our results. | |
(2) | Amounts for the Predecessor periods are computed based upon the capital structure in existence prior to the Acquisition. Amounts for the Successor periods are computed based upon the capital structure in existence subsequent to the Acquisition. | |
(3) | Recurring revenue percentage represents software-enabled services revenues and maintenance revenues as a percentage of total revenues. We do not believe that the recurring revenue percentage for the Successor period of 2005 is meaningful because such period is only five weeks in duration and not indicative of our overall trends. |
(4) | Consolidated EBITDA is a non-GAAP financial measure used in key financial covenants contained in our senior credit facilities, which are material facilities supporting our capital structure and providing liquidity to our business. Consolidated EBITDA is defined as earnings before interest, taxes, depreciation and amortization (EBITDA), further adjusted to exclude unusual items and other adjustments permitted in calculating covenant compliance under our senior credit facilities. We believe that the inclusion of supplementary adjustments to EBITDA applied in presenting Consolidated EBITDA is appropriate to provide additional information to investors to demonstrate compliance with the specified financial ratios and other financial condition tests contained in our senior credit facilities. Consolidated EBITDA is not presented for the year ended December 31, 2004 because we did not have any senior credit facilities that required the calculation of Consolidated EBITDA for that year. |
Management uses Consolidated EBITDA to gauge the costs of our capital structure on a day-to-day basis when full financial statements are unavailable. Management further believes that providing this information allows our investors greater transparency and a better understanding of our ability to meet our debt service obligations and make capital expenditures. |
The breach of covenants in our senior credit facilities that are tied to ratios based on Consolidated EBITDA could result in a default under that agreement, in which case the lenders could elect to declare all amounts borrowed due and payable and to terminate any commitments they have to provide further borrowings. Any such acceleration would also result in a default under our indenture. Any default and subsequent acceleration of payments under our debt agreements would have a material adverse effect on our results of operations, financial position and cash flows. Additionally, under our debt agreements, our ability to engage in activities such as incurring additional indebtedness, making investments and paying dividends is also tied to ratios based on Consolidated EBITDA. |
Consolidated EBITDA does not represent net income (loss) or cash flow from operations as those terms are defined by GAAP and does not necessarily indicate whether cash flows will be sufficient to fund cash needs. Further, our senior credit facilities require that Consolidated EBITDA be calculated for the most recent four fiscal quarters. As a result, the measure can be disproportionately affected by a particularly strong or weak quarter. Further, it may not be comparable to the measure for any subsequent four-quarter period or any complete fiscal year. |
Consolidated EBITDA is not a recognized measurement under GAAP, and investors should not consider Consolidated EBITDA as a substitute for measures of our financial performance and liquidity as determined in accordance with GAAP, such as net income, operating income or net cash provided by operating activities. Because other companies may calculate Consolidated EBITDA differently than we do, Consolidated EBITDA may not be comparable to similarly titled measures reported by other companies. |
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Consolidated EBITDA has other limitations as an analytical tool, when compared to the use of net income (loss), which is the most directly comparable GAAP financial measure, including: |
• | Consolidated EBITDA does not reflect the provision of income tax expense in our various jurisdictions; |
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• | Consolidated EBITDA does not reflect the significant interest expense we incur as a result of our debt leverage; | |
• | Consolidated EBITDA does not reflect any attribution of costs to our operations related to our investments and capital expenditures through depreciation and amortization charges; | |
• | Consolidated EBITDA does not reflect the cost of compensation we provide to our employees in the form of stock option awards; and | |
• | Consolidated EBITDA excludes expenses that we believe are unusual or non-recurring, but which others may believe are normal expenses for the operation of a business. |
Predecessor | Successor | Combined | Successor | ||||||||||||||||||||||||||
Period | |||||||||||||||||||||||||||||
Period | from | ||||||||||||||||||||||||||||
from | November 23, | Twelve | |||||||||||||||||||||||||||
January 1 | 2005 | Year | Year | Months | |||||||||||||||||||||||||
through | through | Ended | Ended | Ended | Six Months | ||||||||||||||||||||||||
November 22, | December 31, | December 31, | December 31, | June 30, | Ended June 30, | ||||||||||||||||||||||||
2005 | 2005 | 2005 | 2006 | 2007(a) | 2006 | 2007 | |||||||||||||||||||||||
(In thousands) | |||||||||||||||||||||||||||||
Net income (loss) | $ | 712 | $ | 831 | $ | 1,543 | $ | 1,075 | $ | (1,718 | ) | $ | 1,561 | $ | (1,232 | ) | |||||||||||||
Interest expense (income), net | 1,061 | 4,890 | 5,951 | 47,039 | 46,320 | 23,273 | 22,555 | ||||||||||||||||||||||
Income taxes | 2,658 | — | 2,658 | (3,789 | ) | (2,647 | ) | (1,240 | ) | (98 | ) | ||||||||||||||||||
Depreciation and amortization | 9,575 | 2,301 | 11,876 | 27,128 | 30,969 | 13,372 | 17,213 | ||||||||||||||||||||||
EBITDA | 14,006 | 8,022 | 22,028 | 71,453 | 72,924 | 36,966 | 38,438 | ||||||||||||||||||||||
Purchase accounting adjustments(b) | — | 616 | 616 | 3,017 | 323 | 2,555 | (139 | ) | |||||||||||||||||||||
Merger costs | 36,912 | — | 36,912 | — | — | — | — | ||||||||||||||||||||||
Capital-based taxes | — | — | — | 1,841 | 1,625 | 880 | 664 | ||||||||||||||||||||||
Unusual or non-recurring charges(c) | (737 | ) | (242 | ) | (979 | ) | 1,485 | 1,914 | (670 | ) | (241 | ) | |||||||||||||||||
Acquired EBITDA and cost savings(d) | 14,808 | 85 | 14,893 | 1,147 | 729 | 748 | 135 | ||||||||||||||||||||||
Stock-based compensation | — | — | — | 3,871 | 8,411 | — | 4,540 | ||||||||||||||||||||||
Other(e) | — | 107 | 107 | 1,184 | 1,469 | 500 | 785 | ||||||||||||||||||||||
Consolidated EBITDA | $ | 64,989 | $ | 8,588 | $ | 73,577 | $ | 83,998 | $ | 87,395 | $ | 40,979 | $ | 44,182 | |||||||||||||||
Predecessor | Successor | Combined | Successor | ||||||||||||||||||
Period | |||||||||||||||||||||
Period | from | ||||||||||||||||||||
from | November 23, | ||||||||||||||||||||
January 1 | 2005 | Year | Year | Year | |||||||||||||||||
through | through | Ended | Ended | Ended | |||||||||||||||||
November 22, | December 31, | December 31, | December 31, | December 31, | |||||||||||||||||
2005 | 2005 | 2005 | 2006 | 2007 | |||||||||||||||||
(In thousands) | |||||||||||||||||||||
Net income | $ | 712 | $ | 831 | $ | 1,543 | $ | 1,075 | $ | 6,575 | |||||||||||
Interest expense, net | 1,061 | 4,890 | 5,951 | 47,039 | 44,524 | ||||||||||||||||
Income taxes | 2,658 | — | 2,658 | (3,789 | ) | (458 | ) | ||||||||||||||
Depreciation and amortization | 9,575 | 2,301 | 11,876 | 27,128 | 35,047 | ||||||||||||||||
EBITDA | 14,006 | 8,022 | 22,028 | 71,453 | 85,668 | ||||||||||||||||
Purchase accounting adjustments(a) | — | 616 | 616 | 3,017 | (296 | ) | |||||||||||||||
Merger costs | 36,912 | — | 36,912 | — | — | ||||||||||||||||
Capital-based taxes | — | — | — | 1,841 | 1,721 | ||||||||||||||||
Unusual or non-recurring charges (income)(b) | (737 | ) | (242 | ) | (979 | ) | 1,485 | (1,718 | ) | ||||||||||||
Acquired EBITDA and cost savings(c) | 14,808 | 85 | 14,893 | 1,147 | 135 | ||||||||||||||||
Stock-based compensation | — | — | — | 3,871 | 10,979 | ||||||||||||||||
Other(d) | — | 107 | 107 | 1,184 | 2,158 | ||||||||||||||||
Consolidated EBITDA | $ | 64,989 | $ | 8,588 | $ | 73,577 | $ | 83,998 | $ | 98,667 | |||||||||||
(a) |
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Purchase accounting adjustments include (1) 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 the Transaction and (2) an adjustment to increase rent expense by the amount that would have been recognized if lease obligations were not adjusted to fair value at the date of the Transaction. |
Unusual or non-recurring charges include foreign currency gains and losses, gains and losses on the sales of marketable securities, equity earnings and losses on investments, proceeds |
Acquired EBITDA and cost savings reflects the EBITDA impact of significant businesses that were acquired during the period as if the acquisition occurred at the beginning of the period and cost savings to be realized from such acquisitions. |
Other includes management fees and related expenses paid to Carlyle and the non-cash portion of straight-line rent expense. |
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Combined | Successor | |||||||||||||||
Twelve Months | ||||||||||||||||
Twelve Months | Twelve Months | Twelve Months | Ended | |||||||||||||
Ended | Ended | Ended | June 30, 2007 | |||||||||||||
December 31, 2005 | December 31, 2006 | June 30, 2007 | (As adjusted)(5) | |||||||||||||
(In thousands, except ratio data) | ||||||||||||||||
Consolidated EBITDA(1) | $ | 73,577 | $ | 83,998 | $ | 87,395 | ||||||||||
Consolidated total leverage to Consolidated EBITDA ratio (current maximum covenant level: 6.75)(2) | 6.43 | 5.48 | 5.16 | |||||||||||||
Consolidated EBITDA to consolidated net interest coverage ratio (current minimum covenant level: 1.50)(3) | 10.87 | (4) | 1.88 | 2.00 |
Combined | Successor | |||||||||||||||
Twelve Months | ||||||||||||||||
Twelve Months | Twelve Months | Twelve Months | Ended | |||||||||||||
Ended | Ended | Ended | December 31, 2007 | |||||||||||||
December 31, 2005 | December 31, 2006 | December 31, 2007 | (As adjusted)(5) | |||||||||||||
(In thousands, except ratio data) | ||||||||||||||||
Consolidated EBITDA(1) | $ | 73,577 | $ | 83,998 | $ | 98,667 | $ | |||||||||
Consolidated total leverage to Consolidated EBITDA ratio (current maximum covenant level: 6.00)(2) | 6.43 | 5.48 | 4.30 | |||||||||||||
Consolidated EBITDA to consolidated net interest coverage ratio (current minimum covenant level: 1.70)(3) | 10.87 | (4) | 1.88 | 2.34 |
(1) | We reconcile our Consolidated EBITDA for the trailing four quarters to net income for the same period using the same methods set forth above. |
(2) | Consolidated total leverage ratio is defined in our senior credit facilities at the last day of any period of four consecutive fiscal quarters, as the ratio of (a) the principal amount of all debt at such date, minus the amount, up to a maximum amount of $30,000,000, of cash and cash equivalents to (b) Consolidated EBITDA. The maximum consolidated total leverage ratio for 2008 is 6.00. The maximum consolidated total leverage ratio for 2007 was 6.75 and for 2006 was 7.50. There was no maximum consolidated total leverage ratio covenant prior to June 30, 2006. |
(3) | Consolidated net interest coverage ratio is defined in our senior credit facilities as for any period, the ratio of (a) Consolidated EBITDA for such period to (b) total cash interest expense for such period with respect to all outstanding indebtedness minus total cash interest income for such period. The minimum consolidated net interest coverage ratio for 2008 is 1.70. The minimum consolidated net interest coverage ratio for 2007 was 1.50 and for 2006 was 1.40. There was no minimum consolidated net interest coverage ratio covenant prior to June 30, 2006. |
(4) | This ratio is not comparable because we did not incur debt under our existing senior credit facilities until November 2005 in connection with the Transaction. |
(5) | As adjusted to give effect to the sale by us of shares of our common stock in this offering at an assumed initial public offering price of $ per share (the midpoint of the range set forth on the cover of this prospectus), after deducting estimated underwriting discounts and commissions and estimated offering expenses payable by us, and the use of |
12
• | cancel or reduce planned expenditures for our products and services; | |
• | seek to lower their costs by renegotiating their contracts with us; | |
• | move their IT solutions in-house; | |
• | switch to lower-priced solutions provided by our competitors; or | |
• | exit the industry. |
• | the timing of the introduction and the market acceptance of new products, product enhancements or services by us or our competitors; | |
• | the lengthy and often unpredictable sales cycles of large client engagements; | |
• | the amount and timing of our operating costs and other expenses; |
13
• | the financial health of our clients; | |
• | changes in the volume of assets under our clients’ management; | |
• | cancellations of maintenanceand/or software-enabled services arrangements by our clients; | |
• | changes in local, national and international regulatory requirements; | |
• | changes in our personnel; | |
• | implementation of our licensing contracts and software-enabled services arrangements; | |
• | changes in economic and financial market conditions; and | |
• | changes in the mix in the types of products and services we provide. |
• | the level of demand for our products and services; | |
• | the level of client spending for information technology; | |
• | the level of competition from internal client solutions and from other vendors; | |
• | the quality of our client service; | |
• | our ability to update our products and services and develop new products and services needed by clients; | |
• | our ability to understand the organization and processes of our clients; and |
• | our ability to integrate and manage acquired businesses. |
14
14
15
• | combine operations, facilities and differing firm cultures; | |
• | retain the clients or employees of acquired entities; | |
• | generate market demand for new products and services; | |
• | coordinate geographically dispersed operations and successfully adapt to the complexities of international operations; | |
• | integrate the technical teams of these companies with our engineering organization; | |
• | incorporate acquired technologies and products into our current and future product lines; and | |
• | integrate the products and services of these companies with our business, where we do not have distribution, marketing or support experience for such products and services. |
15
16
16
17
• | we may find it difficult or costly to update our services and software and to develop new products and services quickly enough to meet our clients’ needs; |
17
• | we may find it difficult or costly to make some features of our software work effectively and securely over the Internet or with new or changed operating systems; | |
• | we may find it difficult or costly to update our software and services to keep pace with business, evolving industry standards, regulatory and other developments in the industries where our clients operate; and | |
• | we may be exposed to liability for security breaches that allow unauthorized persons to gain access to confidential information stored on our computers or transmitted over our network. |
18
• | changes in a specific country’s or region’s political or economic condition; | |
• | difficulties in obtaining U.S. export licenses; | |
• | potentially longer payment cycles; | |
• | increased costs associated with maintaining international marketing efforts; | |
• | foreign currency fluctuations; | |
• | the introduction of non-tariff barriers and higher duty rates; | |
• | foreign regulatory compliance; and | |
• | difficulties in enforcement of third-party contractual obligations and intellectual property rights. |
18
• | make it more difficult for us to satisfy our obligations with respect to our notes and our senior credit facilities; | |
• | require us to dedicate a substantial portion of our cash flow from operations to payments on our indebtedness, thereby reducing the availability of our cash flow to fund acquisitions, working capital, capital expenditures, research and development efforts and other general corporate purposes; | |
• | increase our vulnerability to and limit our flexibility in planning for, or reacting to, changes in our business and the industry in which we operate; | |
• | expose us to the risk of increased interest rates as borrowings under our senior credit facilities are subject to variable rates of interest; | |
• | place us at a competitive disadvantage compared to our competitors that have less debt; and | |
• | limit our ability to borrow additional funds. |
19
19
• | incur additional indebtedness; | |
• | sell assets, including capital stock of restricted subsidiaries; | |
• | agree to payment restrictions affecting SS&C’s restricted subsidiaries; | |
• | pay dividends; | |
• | consolidate, merge, sell or otherwise dispose of all or substantially all of SS&C’s assets; | |
• | make strategic acquisitions; | |
• | enter into transactions with SS&C’s affiliates; | |
• | incur liens; and | |
• | designate any of SS&C’s subsidiaries as unrestricted subsidiaries. |
20
• | declare all borrowings outstanding, together with accrued interest and other fees, to be immediately due and payable; or | |
• | prevent us from making payments on the notes, |
20
21
• | fluctuations in our quarterly financial results or the quarterly financial results of companies perceived to be similar to us; | |
• | changes in estimates of our financial results or recommendations by securities analysts; | |
• | failure of any of our products to achieve or maintain market acceptance; | |
• | changes in market valuations of similar companies; | |
• | success of competitive products; | |
• | changes in our capital structure, such as future issuances of securities or the incurrence of additional debt; | |
• | announcements by us or our competitors of significant products, contracts, acquisitions or strategic alliances; | |
• | regulatory developments in the United States, foreign countries or both; | |
• | litigation involving our company, our general industry or both; | |
• | additions or departures of key personnel; | |
• | investors’ general perception of us; and | |
• | changes in general economic, industry and market conditions. |
21
22
Date Available for Sale | ||
Into Public Market | ||
shares | On the date of this prospectus. | |
shares | 90 days after the date of this prospectus. | |
shares | 180 days after the date of this prospectus, subject to extension in specified instances, due tolock-up agreements between the holders of these shares and the underwriters. However, the underwriters can waive the provisions of theselock-up agreements and allow these stockholders to sell their shares at any time. | |
22
23
• | limitations on the removal of directors; | |
• | a classified board of directors so that not all members of our board are elected at one time; | |
• | advance notice requirements for stockholder proposals and nominations; | |
• | the inability of stockholders to call special meetings; | |
• | the ability of our board of directors to make, alter or repeal our bylaws; | |
• | the ability of our board of directors to designate the terms of and issue new series of preferred stock without stockholder approval, which could be used to institute a rights plan, or a poison pill, that would work to dilute the stock ownership of a potential hostile acquirer, likely preventing acquisitions that have not been approved by our board of directors; and | |
• | a prohibition on stockholders from acting by written consent if William C. Stone and investment funds affiliated with Carlyle cease to collectively hold a majority of our outstanding common stock. |
23
24
2524
• | the effect of a slowdown or prolonged downturn in the general economy or the financial |
• | the effect of any further or accelerated consolidations in the financial services industry; | |
• | our ability to retain and attract clients and key personnel; | |
• | the integration of acquired businesses; | |
• | our ability to continue to derive substantial revenues from the licensing of, or provision of software-enabled services relating to, certain of our licensed software, and the provision of maintenance and professional services in support of such licensed software; | |
• | our ability to adapt to rapidly changing technology and evolving industry standards, and our ability to introduce new products and services; | |
• | challenges in maintaining and expanding our international operations; | |
• | the effects of war, terrorism and other catastrophic events; | |
• | the risk of increased interest rates due to the variable rates of interest on certain of our indebtedness; and | |
• | other risks and uncertainties, including those listed under the caption “Risk Factors.” |
2625
• |
• | the balance of our net proceeds from this offering for working capital and other general corporate purposes, including potential acquisitions. |
2726
2827
• | on an actual |
• | on an as adjusted basis to |
(2) | the sale of shares of common stock that we are offering at an assumed initial public offering price of $ per share, after deducting estimated underwriting discounts and commissions and estimated offering expenses payable by us, |
(3) | the issuance of shares of common stock upon the exercise of options held by certain selling stockholders in connection with this offering and the receipt of the aggregate exercise price for such options. |
As of June 30, 2007 | ||||||||
Actual | As Adjusted | |||||||
(In thousands) | ||||||||
Cash and cash equivalents | $ | 13,210 | $ | |||||
Senior credit facilities | $ | 258,757 | $ | |||||
113/4% senior subordinated notes due 2013 | 205,000 | |||||||
Total debt, including current portion | 463,757 | |||||||
Stockholders’ equity: | ||||||||
Common stock, par value $0.01 per share; 10,000 shares authorized, 7,088 shares issued, actual; shares authorized, shares issued, as adjusted | 71 | |||||||
Additional paid-in capital | 564,064 | |||||||
Accumulated other comprehensive income | 21,989 | |||||||
Retained earnings | 674 | |||||||
Less: cost of common stock in treasury, 1 share | (76 | ) | ||||||
Total stockholders’ equity | 586,722 | |||||||
Total capitalization, including current portion of long-term debt | $ | 1,050,479 | $ | |||||
As of December 31, 2007 | ||||||||
Actual | As Adjusted | |||||||
(In thousands) | ||||||||
Cash and cash equivalents | $ | 19,175 | $ | |||||
Senior credit facilities | $ | 238,009 | $ | |||||
113/4% senior subordinated notes due 2013 | 205,000 | |||||||
Total debt, including current portion | 443,009 | |||||||
Stockholders’ equity: | ||||||||
Preferred stock, par value $0.01 per share; no shares authorized, issued or outstanding, actual; 5,000 shares authorized and no shares issued or outstanding, as adjusted | — | |||||||
Common stock, par value $0.01 per share; 100,000 shares authorized, actual and as adjusted; 53,165 shares issued and 53,157 shares outstanding, actual; shares issued and shares outstanding, as adjusted | 532 | |||||||
Additional paid-in capital | 570,043 | |||||||
Accumulated other comprehensive income | 33,615 | |||||||
Retained earnings | 8,481 | |||||||
Less: cost of common stock in treasury, 8 shares actual and as adjusted | (78 | ) | ||||||
Total stockholders’ equity | 612,593 | |||||||
Total capitalization, including current portion of long-term debt | $ | 1,055,602 | $ | |||||
28
• |
• |
• | 1,250,000 shares of common stock reserved as of the date of this prospectus for future issuance under our 2008 stock incentive plan. |
29
Assumed initial public offering price per share | $ | |||||||
Net tangible book value per share as of | $ | |||||||
Increase per share attributable to new investors | ||||||||
Net tangible book value per share after this offering | ||||||||
Dilution per share to new investors | $ | |||||||
Shares Purchased | Total Consideration | Average Price | ||||||||||||||||||
Number | Percent | Amount | Percent | Per Share | ||||||||||||||||
Existing stockholders | % | $ | % | $ | ||||||||||||||||
New investors | $ | |||||||||||||||||||
Total | % | $ | % | |||||||||||||||||
30
• | the percentage of shares of common stock held by existing stockholders will decrease to approximately % of the total number of shares of our common stock outstanding after this offering; and | |
• | the number of shares held by new investors will increase to , or approximately %, of the total number of shares of our common stock outstanding after this offering. |
3031
3132
Predecessor | Successor | Combined | Successor | |||||||||||||||||||||||||||||||||
Period from | Period from | |||||||||||||||||||||||||||||||||||
January 1, | November 23, | Year | Year | |||||||||||||||||||||||||||||||||
2005 through | 2005 through | Ended | Ended | Six Months Ended | ||||||||||||||||||||||||||||||||
Year Ended December 31, | November 22, | December 31, | December 31, | December 31, | June 30, | |||||||||||||||||||||||||||||||
2002 | 2003 | 2004 | 2005 | 2005 | 2005 | 2006 | 2006 | 2007 | ||||||||||||||||||||||||||||
(In thousands, except per share and percentage data) | ||||||||||||||||||||||||||||||||||||
Statement of operations data: | ||||||||||||||||||||||||||||||||||||
Revenues: | ||||||||||||||||||||||||||||||||||||
Software licenses | $ | 15,631 | $ | 14,233 | $ | 17,250 | $ | 20,147 | $ | 3,587 | $ | 23,734 | $ | 22,925 | $ | 10,362 | $ | 11,494 | ||||||||||||||||||
Maintenance | 27,850 | 31,318 | 36,433 | 44,064 | 3,701 | 47,765 | 55,222 | 26,348 | 30,233 | |||||||||||||||||||||||||||
Professional services | 6,326 | 6,757 | 11,320 | 12,565 | 2,520 | 15,085 | 19,582 | 10,128 | 9,043 | |||||||||||||||||||||||||||
Software-enabled services | 12,627 | 13,223 | 30,885 | 67,193 | 7,857 | 75,050 | 107,740 | 52,182 | 65,472 | |||||||||||||||||||||||||||
Total revenues | 62,434 | 65,531 | 95,888 | 143,969 | 17,665 | 161,634 | 205,469 | 99,020 | 116,242 | |||||||||||||||||||||||||||
Cost of revenues: | ||||||||||||||||||||||||||||||||||||
Software licenses | 1,316 | 1,788 | 2,258 | 2,963 | 856 | 3,819 | 9,216 | 4,548 | 4,781 | |||||||||||||||||||||||||||
Maintenance | 5,640 | 6,248 | 8,462 | 10,393 | 1,499 | 11,892 | 20,415 | 9,863 | 13,108 | |||||||||||||||||||||||||||
Professional services | 5,412 | 4,387 | 6,606 | 7,849 | 861 | 8,710 | 12,575 | 6,293 | 7,022 | |||||||||||||||||||||||||||
Software-enabled services | 8,621 | 8,003 | 16,444 | 37,799 | 4,411 | 42,210 | 57,810 | 27,097 | 36,839 | |||||||||||||||||||||||||||
Total cost of revenues | 20,989 | 20,426 | 33,770 | 59,004 | 7,627 | 66,631 | 100,016 | 47,801 | 61,750 | |||||||||||||||||||||||||||
Gross profit | 41,445 | 45,105 | 62,118 | 84,965 | 10,038 | 95,003 | 105,453 | 51,219 | 54,492 | |||||||||||||||||||||||||||
Operating expenses: | ||||||||||||||||||||||||||||||||||||
Selling and marketing | 9,078 | 8,393 | 10,734 | 13,134 | 1,364 | 14,498 | 17,598 | 7,895 | 9,283 | |||||||||||||||||||||||||||
Research and development | 11,760 | 11,180 | 13,957 | 19,199 | 2,071 | 21,270 | 23,620 | 11,804 | 13,037 | |||||||||||||||||||||||||||
General and administrative | 7,721 | 7,154 | 8,014 | 11,944 | 1,140 | 13,084 | 20,366 | 8,753 | 11,527 | |||||||||||||||||||||||||||
Write-off of purchased in-process research and development | 1,744 | — | — | — | — | — | — | — | — | |||||||||||||||||||||||||||
Merger costs | — | — | — | 36,912 | — | 36,912 | — | — | — | |||||||||||||||||||||||||||
Total operating expenses | 30,303 | 26,727 | 32,705 | 81,189 | 4,575 | 85,764 | 61,584 | 28,452 | 33,847 | |||||||||||||||||||||||||||
Operating income | 11,142 | 18,378 | 29,413 | 3,776 | 5,463 | 9,239 | 43,869 | 22,767 | 20,645 | |||||||||||||||||||||||||||
Interest income | 1,431 | 912 | 1,528 | 1,031 | 30 | 1,061 | 388 | 229 | 209 | |||||||||||||||||||||||||||
Interest expense | — | (2,092 | ) | (4,920 | ) | (7,012 | ) | (47,427 | ) | (23,502 | ) | (22,764 | ) | |||||||||||||||||||||||
Other income (expense), net | (273 | ) | 47 | 99 | 655 | 258 | 913 | 456 | 827 | 580 | ||||||||||||||||||||||||||
Income (loss) before income taxes | 12,300 | 19,337 | 31,040 | 3,370 | 831 | 4,201 | (2,714 | ) | 321 | (1,330 | ) | |||||||||||||||||||||||||
Provision (benefit) for income taxes | 4,995 | 7,541 | 12,030 | 2,658 | — | 2,658 | (3,789 | ) | (1,240 | ) | (98 | ) | ||||||||||||||||||||||||
Net income (loss) | $ | 7,305 | $ | 11,796 | $ | 19,010 | $ | 712 | $ | 831 | $ | 1,543 | $ | 1,075 | 1,561 | (1,232 | ) | |||||||||||||||||||
Earnings (loss) per share(1) | ||||||||||||||||||||||||||||||||||||
Basic | $ | 0.38 | $ | 0.63 | $ | 0.90 | $ | 0.03 | $ | 0.12 | $ | 0.15 | $ | 0.22 | $ | (0.17 | ) | |||||||||||||||||||
Diluted | $ | 0.36 | $ | 0.59 | $ | 0.84 | $ | 0.03 | $ | 0.11 | $ | 0.15 | $ | 0.21 | $ | (0.17 | ) | |||||||||||||||||||
Weighted average shares outstanding(1) | ||||||||||||||||||||||||||||||||||||
Basic | 19,473 | 18,617 | 21,185 | 23,300 | 7,075 | 7,079 | 7,077 | 7,088 | ||||||||||||||||||||||||||||
Diluted | 20,531 | 19,832 | 22,499 | 24,478 | 7,314 | 7,316 | 7,314 | 7,088 | ||||||||||||||||||||||||||||
Statement of cash flows data: | ||||||||||||||||||||||||||||||||||||
Net cash provided by (used in): | ||||||||||||||||||||||||||||||||||||
Operating activities | $ | 15,495 | $ | 23,711 | $ | 28,524 | $ | 32,116 | $ | 4,915 | $ | 30,709 | $ | 16,801 | $ | 22,748 | ||||||||||||||||||||
Investment activities | (2,738 | ) | (15,321 | ) | (89,220 | ) | (110,495 | ) | (877,261 | ) | (18,626 | ) | (13,442 | ) | (8,770 | ) | ||||||||||||||||||||
Financing activities | (23,290 | ) | (12,081 | ) | 74,074 | 69,161 | 868,655 | (16,427 | ) | (4,699 | ) | (12,796 | ) | |||||||||||||||||||||||
Other financial data: | ||||||||||||||||||||||||||||||||||||
Recurring revenue percentage(2) | 64.8 | % | 68.0 | % | 70.2 | % | 77.3 | % | 65.4 | % | 76.0 | % | 79.3 | % | 79.3 | % | 82.3 | % | ||||||||||||||||||
Consolidated EBITDA(3) | $ | 64,989 | $ | 8,588 | $ | 73,577 | $ | 83,998 | $ | 40,979 | $ | 44,182 | ||||||||||||||||||||||||
Balance sheet data (at period end): | ||||||||||||||||||||||||||||||||||||
Cash, cash equivalents and marketable securities | $ | 41,719 | $ | 52,381 | $ | 130,835 | $ | 15,584 | $ | 11,718 | $ | 13,210 | ||||||||||||||||||||||||
Working capital (deficit) | 36,699 | 42,009 | 116,418 | 7,283 | (1,312 | ) | 3,488 | |||||||||||||||||||||||||||||
Total assets | 75,480 | 82,585 | 185,663 | 1,176,371 | 1,152,521 | 1,177,600 | ||||||||||||||||||||||||||||||
Long-term debt | — | — | — | 478,143 | 466,235 | 461,077 | ||||||||||||||||||||||||||||||
Total stockholders’ equity | 57,270 | 61,588 | 156,094 | 557,133 | 563,132 | 586,722 |
Predecessor | Successor | |||||||||||||||||||||||||||
Period from | Period from | Combined | Successor | |||||||||||||||||||||||||
January 1, | November 23, | Year | Year | Year | ||||||||||||||||||||||||
Year Ended | 2005 through | 2005 through | Ended | Ended | Ended | |||||||||||||||||||||||
December 31, | November 22, | December 31, | December 31, | December 31, | December 31, | |||||||||||||||||||||||
2003 | 2004 | 2005 | 2005 | 2005 | 2006 | 2007 | ||||||||||||||||||||||
(In thousands, except per share and percentage data) | ||||||||||||||||||||||||||||
Statement of operations data: | ||||||||||||||||||||||||||||
Revenues: | ||||||||||||||||||||||||||||
Software licenses | $ | 14,233 | $ | 17,250 | $ | 20,147 | $ | 3,587 | $ | 23,734 | $ | 22,925 | $ | 27,514 | ||||||||||||||
Maintenance | 31,318 | 36,433 | 44,064 | 3,701 | 47,765 | 55,222 | 61,910 | |||||||||||||||||||||
Professional services | 6,757 | 11,320 | 12,565 | 2,520 | 15,085 | 19,582 | 17,491 | |||||||||||||||||||||
Software-enabled services | 13,223 | 30,885 | 67,193 | 7,857 | 75,050 | 107,740 | 141,253 | |||||||||||||||||||||
Total revenues | 65,531 | 95,888 | 143,969 | 17,665 | 161,634 | 205,469 | 248,168 | |||||||||||||||||||||
Cost of revenues: | ||||||||||||||||||||||||||||
Software licenses | 1,788 | 2,258 | 2,963 | 856 | 3,819 | 9,216 | 9,616 | |||||||||||||||||||||
Maintenance | 6,248 | 8,462 | 10,393 | 1,499 | 11,892 | 20,415 | 26,038 | |||||||||||||||||||||
Professional services | 4,387 | 6,606 | 7,849 | 861 | 8,710 | 12,575 | 14,277 | |||||||||||||||||||||
Software-enabled services | 8,003 | 16,444 | 37,799 | 4,411 | 42,210 | 57,810 | 78,951 | |||||||||||||||||||||
Total cost of revenues | 20,426 | 33,770 | 59,004 | 7,627 | 66,631 | 100,016 | 128,882 | |||||||||||||||||||||
Gross profit | 45,105 | 62,118 | 84,965 | 10,038 | 95,003 | 105,453 | 119,286 | |||||||||||||||||||||
Operating expenses: | ||||||||||||||||||||||||||||
Selling and marketing | 8,393 | 10,734 | 13,134 | 1,364 | 14,498 | 17,598 | 19,701 | |||||||||||||||||||||
Research and development | 11,180 | 13,957 | 19,199 | 2,071 | 21,270 | 23,620 | 26,282 | |||||||||||||||||||||
General and administrative | 7,154 | 8,014 | 11,944 | 1,140 | 13,084 | 20,366 | 24,573 | |||||||||||||||||||||
Merger costs | — | — | 36,912 | — | 36,912 | — | — | |||||||||||||||||||||
Total operating expenses | 26,727 | 32,705 | 81,189 | 4,575 | 85,764 | 61,584 | 70,556 | |||||||||||||||||||||
Operating income | 18,378 | 29,413 | 3,776 | 5,463 | 9,239 | 43,869 | 48,730 | |||||||||||||||||||||
Interest income | 914 | 1,536 | 1,031 | 30 | 1,061 | 388 | 939 | |||||||||||||||||||||
Interest expense | (2 | ) | (8 | ) | (2,092 | ) | (4,920 | ) | (7,012 | ) | (47,427 | ) | (45,463 | ) | ||||||||||||||
Other income, net | 47 | 99 | 655 | 258 | 913 | 456 | 1,911 | |||||||||||||||||||||
Income (loss) before income taxes | 19,337 | 31,040 | 3,370 | 831 | 4,201 | (2,714 | ) | 6,117 | ||||||||||||||||||||
(Benefit) provision for income taxes | 7,541 | 12,030 | 2,658 | — | 2,658 | (3,789 | ) | (458 | ) | |||||||||||||||||||
Net income | $ | 11,796 | $ | 19,010 | $ | 712 | $ | 831 | $ | 1,543 | $ | 1,075 | $ | 6,575 | ||||||||||||||
Earnings per share(1) | ||||||||||||||||||||||||||||
Basic | $ | 0.63 | $ | 0.90 | $ | 0.03 | $ | 0.02 | $ | 0.02 | $ | 0.12 | ||||||||||||||||
Diluted | $ | 0.59 | $ | 0.84 | $ | 0.03 | $ | 0.02 | $ | 0.02 | $ | 0.12 | ||||||||||||||||
Weighted average shares outstanding(1) | ||||||||||||||||||||||||||||
Basic | 18,617 | 21,185 | 23,300 | 53,063 | 53,093 | 53,157 | ||||||||||||||||||||||
Diluted | 19,832 | 22,499 | 24,478 | 54,853 | 54,867 | 55,953 | ||||||||||||||||||||||
Statement of cash flows data: | ||||||||||||||||||||||||||||
Net cash provided by (used in): | ||||||||||||||||||||||||||||
Operating activities | $ | 23,711 | $ | 28,524 | $ | 32,116 | $ | 4,915 | $ | 30,709 | $ | 57,057 | ||||||||||||||||
Investing activities | (15,321 | ) | (89,220 | ) | (110,495 | ) | (877,261 | ) | (18,626 | ) | (12,839 | ) | ||||||||||||||||
Financing activities | (12,081 | ) | 74,074 | 69,161 | 868,655 | (16,427 | ) | (37,408 | ) | |||||||||||||||||||
Other financial data: | ||||||||||||||||||||||||||||
Recurring revenue percentage(2) | 68.0 | % | 70.2 | % | 77.3 | % | 65.4 | % | 76.0 | % | 79.3 | % | 81.9 | % | ||||||||||||||
Consolidated EBITDA(3) | $ | 64,989 | $ | 8,588 | $ | 73,577 | $ | 83,998 | $ | 98,667 | ||||||||||||||||||
Balance sheet data (at period end): | ||||||||||||||||||||||||||||
Cash, cash equivalents and marketable securities | $ | 52,381 | $ | 130,835 | $ | 15,584 | $ | 11,718 | $ | 19,175 | ||||||||||||||||||
Working capital (deficit) | 42,009 | 116,418 | 7,283 | (1,312 | ) | 8,016 | ||||||||||||||||||||||
Total assets | 82,585 | 185,663 | 1,176,371 | 1,152,521 | 1,190,495 | |||||||||||||||||||||||
Long-term debt, net of current portion | — | — | 478,143 | 466,235 | 440,580 | |||||||||||||||||||||||
Total stockholders’ equity | 61,588 | 156,094 | 557,133 | 563,132 | 612,593 |
(1) | Amounts for the Predecessor periods are computed based upon the capital structure in existence prior to the Acquisition. Amounts for the Successor periods are computed based upon the capital structure in existence subsequent to the Acquisition. | |
(2) | Recurring revenue percentage represents software-enabled services revenues and maintenance revenues as a percentage of total revenues. We do not believe that the recurring revenue percentage for the Successor |
32
period of 2005 is meaningful because such period is only five weeks in duration and not indicative of our overall trends. |
33
(3) | Consolidated EBITDA is a non-GAAP financial measure used in key financial covenants contained in our senior credit facilities, which are material facilities supporting our capital structure and providing liquidity to our business. Consolidated EBITDA is defined as earnings before interest, taxes, depreciation and amortization (EBITDA), further adjusted to exclude unusual items and other adjustments permitted in calculating covenant compliance under our senior credit facilities. We believe that the inclusion of supplementary adjustments to EBITDA applied in presenting Consolidated EBITDA is appropriate to provide additional information to investors to demonstrate compliance with the specified financial ratios and other financial condition tests contained in our senior credit facilities. Consolidated EBITDA is not presented for the years ended December 31, |
Management uses Consolidated EBITDA to gauge the costs of our capital structure on a day-to-day basis when full financial statements are unavailable. Management further believes that providing this information allows our investors greater transparency and a better understanding of our ability to meet our debt service obligations and make capital expenditures. |
The breach of covenants in our senior credit facilities that are tied to ratios based on Consolidated EBITDA could result in a default under that agreement, in which case the lenders could elect to declare all amounts borrowed due and payable and to terminate any commitments they have to provide further borrowings. Any such acceleration would also result in a default under our indenture. Any default and subsequent acceleration of payments under our debt agreements would have a material adverse effect on our results of operations, financial position and cash flows. Additionally, under our debt agreements, our ability to engage in activities such as incurring additional indebtedness, making investments and paying dividends is also tied to ratios based on Consolidated EBITDA. |
Consolidated EBITDA does not represent net income (loss) or cash flow from operations as those terms are defined by GAAP and does not necessarily indicate whether cash flows will be sufficient to fund cash needs. Further, our senior credit facilities require that Consolidated EBITDA be calculated for the most recent four fiscal quarters. As a result, the measure can be disproportionately affected by a particularly strong or weak quarter. Further, it may not be comparable to the measure for any subsequent four-quarter period or any complete fiscal year. |
Consolidated EBITDA is not a recognized measurement under GAAP, and investors should not consider Consolidated EBITDA as a substitute for measures of our financial performance and liquidity as determined in accordance with GAAP, such as net income, operating income or net cash provided by operating activities. Because other companies may calculate Consolidated EBITDA differently than we do, Consolidated EBITDA may not be comparable to similarly titled measures reported by other companies. Consolidated EBITDA has other limitations as an analytical tool, when compared to the use of net income (loss), which is the most directly comparable GAAP financial measure, including: |
• | Consolidated EBITDA does not reflect the provision of income tax expense in our various jurisdictions; | |
• | Consolidated EBITDA does not reflect the significant interest expense we incur as a result of our debt leverage; | |
• | Consolidated EBITDA does not reflect any attribution of costs to our operations related to our investments and capital expenditures through depreciation and amortization charges; | |
• | Consolidated EBITDA does not reflect the cost of compensation we provide to our employees in the form of stock option awards; and | |
• | Consolidated EBITDA excludes expenses that we believe are unusual or non-recurring, but which others may believe are normal expenses for the operation of a business. |
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The following is a reconciliation of net income to Consolidated EBITDA as defined in our senior credit facilities. |
Predecessor | Successor | Combined | Successor | ||||||||||||||||||||||||||
Period | |||||||||||||||||||||||||||||
Period | from | Twelve | |||||||||||||||||||||||||||
from | November 23, | Months | |||||||||||||||||||||||||||
January 1 | 2005 | Year | Year | Ended | |||||||||||||||||||||||||
through | through | Ended | Ended | June | Six Months | ||||||||||||||||||||||||
November 22, | December 31, | December 31, | December 31, | 30, | Ended June 30, | ||||||||||||||||||||||||
2005 | 2005 | 2005 | 2006 | 2007(a) | 2006 | 2007 | |||||||||||||||||||||||
(In thousands) | |||||||||||||||||||||||||||||
Net income (loss) | $ | 712 | $ | 831 | $ | 1,543 | $ | 1,075 | $ | (1,718 | ) | $ | 1,561 | $ | (1,232 | ) | |||||||||||||
Interest expense (income), net | 1,061 | 4,890 | 5,951 | 47,039 | 46,320 | 23,273 | 22,555 | ||||||||||||||||||||||
Income taxes | 2,658 | — | 2,658 | (3,789 | ) | (2,647 | ) | (1,240 | ) | (98 | ) | ||||||||||||||||||
Depreciation and amortization | 9,575 | 2,301 | 11,876 | 27,128 | 30,969 | 13,372 | 17,213 | ||||||||||||||||||||||
EBITDA | 14,006 | 8,022 | 22,028 | 71,453 | 72,924 | 36,966 | 38,438 | ||||||||||||||||||||||
Purchase accounting adjustments(b) | — | 616 | 616 | 3,017 | 323 | 2,555 | (139 | ) | |||||||||||||||||||||
Merger costs | 36,912 | — | 36,912 | — | — | — | — | ||||||||||||||||||||||
Capital-based taxes | — | — | — | 1,841 | 1,625 | 880 | 664 | ||||||||||||||||||||||
Unusual or non-recurring charges(c) | (737 | ) | (242 | ) | (979 | ) | 1,485 | 1,914 | (670 | ) | (241 | ) | |||||||||||||||||
Acquired EBITDA and cost savings(d) | 14,808 | 85 | 14,893 | 1,147 | 729 | 748 | 135 | ||||||||||||||||||||||
Stock-based compensation | — | — | — | 3,871 | 8,411 | — | 4,540 | ||||||||||||||||||||||
Other(e) | — | 107 | 107 | 1,184 | 1,469 | 500 | 785 | ||||||||||||||||||||||
Consolidated EBITDA | $ | 64,989 | $ | 8,588 | $ | 73,577 | $ | 83,998 | $ | 87,395 | $ | 40,979 | $ | 44,182 | |||||||||||||||
Predecessor | Successor | Combined | Successor | ||||||||||||||||||
Period | |||||||||||||||||||||
Period | from | ||||||||||||||||||||
from | November 23, | ||||||||||||||||||||
January 1 | 2005 | Year | Year | Year | |||||||||||||||||
through | through | Ended | Ended | Ended | |||||||||||||||||
November 22, | December 31, | December 31, | December 31, | December 31, | |||||||||||||||||
2005 | 2005 | 2005 | 2006 | 2007 | |||||||||||||||||
(In thousands) | |||||||||||||||||||||
Net income | $ | 712 | $ | 831 | $ | 1,543 | $ | 1,075 | $ | 6,575 | |||||||||||
Interest expense, net | 1,061 | 4,890 | 5,951 | 47,039 | 44,524 | ||||||||||||||||
Income taxes | 2,658 | — | 2,658 | (3,789 | ) | (458 | ) | ||||||||||||||
Depreciation and amortization | 9,575 | 2,301 | 11,876 | 27,128 | 35,047 | ||||||||||||||||
EBITDA | 14,006 | 8,022 | 22,028 | 71,453 | 85,668 | ||||||||||||||||
Purchase accounting adjustments(a) | — | 616 | 616 | 3,017 | (296 | ) | |||||||||||||||
Merger costs | 36,912 | — | 36,912 | — | �� | — | |||||||||||||||
Capital-based taxes | — | — | — | 1,841 | 1,721 | ||||||||||||||||
Unusual or non-recurring charges (income)(b) | (737 | ) | (242 | ) | (979 | ) | 1,485 | (1,718 | ) | ||||||||||||
Acquired EBITDA and cost savings(c) | 14,808 | 85 | 14,893 | 1,147 | 135 | ||||||||||||||||
Stock-based compensation | — | — | — | 3,871 | 10,979 | ||||||||||||||||
Other(d) | — | 107 | 107 | 1,184 | 2,158 | ||||||||||||||||
Consolidated EBITDA | $ | 64,989 | $ | 8,588 | $ | 73,577 | $ | 83,998 | $ | 98,667 | |||||||||||
Purchase accounting adjustments include (1) 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 the Transaction and (2) an adjustment to increase rent expense by the amount that would have been recognized if lease obligations were not adjusted to fair value at the date of the Transaction. |
Unusual or non-recurring charges include foreign currency gains and losses, gains and losses on the sales of marketable securities, equity earnings and losses on investments, proceeds |
Acquired EBITDA and cost savings reflects the EBITDA impact of significant businesses that were acquired during the period as if the acquisition occurred at the beginning of the period and cost savings to be realized from such acquisitions. |
Other includes management fees and related expenses paid to Carlyle and the non-cash portion of straight-line rent expense. |
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Combined | Successor | |||||||||||||||
Twelve Months | ||||||||||||||||
Twelve Months | Twelve Months | Twelve Months | Ended | |||||||||||||
Ended | Ended | Ended | June 30, 2007 | |||||||||||||
December 31, 2005 | December 31, 2006 | June 30, 2007 | (As Adjusted)(5) | |||||||||||||
(In thousands, except ratio data) | ||||||||||||||||
Consolidated EBITDA(1) | $ | 73,577 | $ | 83,998 | $ | 87,395 | ||||||||||
Consolidated total leverage to Consolidated EBITDA ratio (current maximum covenant level: 6.75)(2) | 6.43 | 5.48 | 5.16 | |||||||||||||
Consolidated EBITDA to consolidated net interest coverage ratio (current minimum covenant level: 1.50)(3) | 10.87 | (4) | 1.88 | 2.00 |
Combined | Successor | |||||||||||||||
Twelve Months | ||||||||||||||||
Twelve Months | Twelve Months | Twelve Months | Ended | |||||||||||||
Ended | Ended | Ended | December 31, 2007 | |||||||||||||
December 31, 2005 | December 31, 2006 | December 31, 2007 | (As Adjusted)(5) | |||||||||||||
(In thousands, except ratio data) | ||||||||||||||||
Consolidated EBITDA(1) | $ | 73,577 | $ | 83,998 | $ | 98,667 | ||||||||||
Consolidated total leverage to Consolidated EBITDA ratio (current maximum covenant level: 6.00)(2) | 6.43 | 5.48 | 4.30 | |||||||||||||
Consolidated EBITDA to consolidated net interest coverage ratio (current minimum covenant level: 1.70)(3) | 10.87 | (4) | 1.88 | 2.34 |
(1) | We reconcile our Consolidated EBITDA for the trailing four quarters to net income for the same period using the same methods set forth above. |
(2) | Consolidated total leverage ratio is defined in our senior credit facilities at the last day of any period of four consecutive fiscal quarters, as the ratio of (a) the principal amount of all debt at such date, minus the amount, up to a maximum amount of $30,000,000 of cash and cash equivalents to (b) Consolidated EBITDA. The maximum consolidated total leverage ratio for 2008 is 6.00. The maximum consolidated total leverage ratio for 2007 was 6.75 and for 2006 was 7.50. There was no maximum consolidated total leverage ratio covenant prior to June 30, 2006. |
(3) | Consolidated net interest coverage ratio is defined in our senior credit facilities as for any period, the ratio of (a) Consolidated EBITDA for such period to (b) total cash interest expense for such period with respect to all outstanding indebtedness minus total cash interest income for such period. The minimum consolidated net interest coverage ratio for 2008 is 1.70. The minimum consolidated net interest coverage ratio for 2007 was 1.50 and for 2006 was 1.40. There was no minimum consolidated net interest coverage ratio covenant prior to June 30, 2006. |
(4) | This ratio is not comparable because we did not incur debt under our existing senior credit facilities until November 2005 in connection with the Transaction. |
(5) | As adjusted to give effect to the sale by us of shares of our common stock in this offering at an assumed initial public offering price of $ per share (the midpoint of the range set forth on the cover of this prospectus), after deducting estimated underwriting discounts and commissions and estimated offering expenses payable by us, and the use of |
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Weighted Average | ||||||||
Amortization | ||||||||
Carrying Value | Period | |||||||
(In millions) | ||||||||
Customer relationships | $ | 197.1 | 11.5 years | |||||
Completed technology | $ | 55.7 | 8.5 years | |||||
Trade names | $ | 17.2 | 13.9 years | |||||
Exchange relationships | $ | 1.4 | 10 years | |||||
Other | $ | 0.7 | 3 years |
Weighted Average | ||||||||
Carrying Value | Amortization | |||||||
(In millions) | Period | |||||||
Customer relationships | $ | 197.1 | 11.5 years | |||||
Completed technology | $ | 55.7 | 8.5 years | |||||
Trade names | $ | 17.2 | 13.9 years | |||||
Exchange relationships | $ | 1.4 | 10 years | |||||
Other | $ | 0.7 | 3 years |
Acquired Business | Acquisition Date | Description | ||||||
Northport | March 12, 2007 | Alternative investment fund management services | ||||||
Zoologic | August 31, 2006 | Web-based training software | ||||||
Cogent Management | March 3, 2006 | Alternative investment fund management services | ||||||
Open Information Systems | October 31, 2005 | Money market processing software and services | ||||||
MarginMan | August 24, 2005 | Collateralized trading software and services | ||||||
Financial Interactive | June 3, 2005 | Investor relations software and services | ||||||
Financial Models Company | April 19, 2005 | Investment management software and services | ||||||
EisnerFast | February 28, 2005 | Alternative investment fund management services | ||||||
Achievement Technologies | February 11, 2005 | Facilities management software | ||||||
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3940
• | significant underperformance relative to historical or projected future operating results; | |
• | significant changes in the manner of our use of the acquired assets or the strategy for our overall business; and | |
• | significant negative industry or economic trends. |
4041
• | the value of our business as determined at arm’s length in connection with the Transaction; | |
• | significant business milestones that may have affected the value of our business subsequent to the Transaction; | |
• | the continued risks associated with our business; | |
• | the economic outlook in general and the condition and outlook of our industry; | |
• | our financial condition and expected operating results; | |
• | our level of outstanding indebtedness; | |
• | the market price of stocks of publicly traded corporations engaged in the same or similar lines of business; and |
• | as of July 31, 2006 and March 31, 2007, analyses using a weighted average of three generally accepted valuation procedures: the income approach, the market approach |
Weighted-Average Fair Value of | ||||||||||||||||||||||||||||
Fair Value | Options by Vesting Type(1): | |||||||||||||||||||||||||||
of | Change | |||||||||||||||||||||||||||
Exercise | Underlying | in | ||||||||||||||||||||||||||
Grant Date | Shares | Price | Stock | Time | Performance | Control | ||||||||||||||||||||||
August 2006 | 1,165,831 | $ | 74.50 | $ | 74.50 | $ | 31.08 | $ | 32.98 | $ | 21.23 | |||||||||||||||||
November 2006 | 10,500 | 74.50 | 74.50 | 30.75 | 32.61 | 21.23 | ||||||||||||||||||||||
March 2007 | 23,000 | 74.50 | 74.50 | 30.69 | 32.54 | (2 | ) | |||||||||||||||||||||
May 2007 | 17,500 | 98.91 | 98.91 | 40.85 | 43.32 | (2 | ) | |||||||||||||||||||||
June 2007 | 3,000 | 98.91 | 98.91 | 41.37 | 43.89 | (2 | ) |
Weighted-Average Fair Value of | ||||||||||||||||||||||||
Fair Value | Options by Vesting Type(1): | |||||||||||||||||||||||
of | Change | |||||||||||||||||||||||
Shares | Exercise | Underlying | in | |||||||||||||||||||||
Grant Date | Under Option | Price | Stock | Time | Performance | Control | ||||||||||||||||||
August 2006 | 8,743,732 | $ | 9.93 | $ | 9.93 | $ | 4.14 | $ | 4.40 | $ | 2.83 | |||||||||||||
November 2006 | 78,750 | 9.93 | 9.93 | 4.10 | 4.35 | 2.83 | ||||||||||||||||||
March 2007 | 172,500 | 9.93 | 9.93 | 4.09 | 4.34 | 0.99 | ||||||||||||||||||
May 2007 | 131,250 | 13.19 | 13.19 | 5.45 | 5.78 | 1.21 | ||||||||||||||||||
June 2007 | 22,500 | 13.19 | 13.19 | 5.52 | 5.85 | 1.15 |
(1) | The weighted-average fair value of options by vesting type represents the value as determined under SFAS 123R at the grant date. These fair values do not reflect the re-valuation of certain options related to modifications effected in April 2007 and March 2008 or the resolutions approved by our board of directors in April 2008 relating to performance-based and superior options, as more fully described in | |
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4243
• | the |
• | the changes that will result in our capital structure as a result of this offering, including the anticipated reduction in outstanding debt resulting from the redemption of $71.75 million in principal amount of our 113/4% senior subordinated notes due | |
Options | Intrinsic Value | |||||||
Unvested | ||||||||
Vested |
• | the vesting of the remaining 2006 and 2007 performance-based options that did not otherwise vest during 2007; |
• | the conversion of all superior options granted under the 2006 Equity Incentive Plan, which are described on page 83, into performance-based options, with one-third of the options vesting in each of |
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2008, 2009 and 2010 based upon our EBITDA for these years falling within designated EBITDA target ranges; |
• | the elimination of the annual EBITDA targets originally established for 2009 through 2011, with new target ranges to be established by our board annually; and |
• | a modification to the performance-based options such that any performance-based options that do not vest in any given year as a result of not attaining that year’s EBITDA target range, shall vest based upon our EBITDA for the following year falling within the targeted range for the following year. |
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Successor | Combined | Successor | Predecessor | |||||||||||||||||||||||||
Period from | Period from | |||||||||||||||||||||||||||
November 23, | January 1, | |||||||||||||||||||||||||||
Year Ended | Year Ended | 2005 through | 2005 through | Year Ended | Percent Change | |||||||||||||||||||||||
December 31, | December 31, | December 31, | November 22, | December 31, | From Prior Year | |||||||||||||||||||||||
2006 | 2005 | 2005 | 2005 | 2004 | 2006 | 2005 | ||||||||||||||||||||||
Revenues: | ||||||||||||||||||||||||||||
Software licenses | $ | 22,925 | $ | 23,734 | $ | 3,587 | $ | 20,147 | $ | 17,250 | (3.4 | )% | 37.6 | % | ||||||||||||||
Maintenance | 55,222 | 47,765 | 3,701 | 44,064 | 36,433 | 15.6 | 31.1 | |||||||||||||||||||||
Professional services | 19,582 | 15,085 | 2,520 | 12,565 | 11,320 | 29.8 | 33.3 | |||||||||||||||||||||
Software-enabled services | 107,740 | 75,050 | 7,857 | 67,193 | 30,885 | 43.6 | 143.0 | |||||||||||||||||||||
Total revenues | $ | 205,469 | $ | 161,634 | $ | 17,665 | $ | 143,969 | $ | 95,888 | 27.1 | 68.6 | ||||||||||||||||
Successor | Combined | Successor | Predecessor | |||||||||||||||||||||||||
Period from | Period from | |||||||||||||||||||||||||||
November 23, 2005 | January 1, 2005 | |||||||||||||||||||||||||||
Year Ended | Year Ended | Year Ended | through | through | Percent Change | |||||||||||||||||||||||
December 31, | December 31, | December 31, | December 31, | November 22, | from Prior Year | |||||||||||||||||||||||
2007, | 2006 | 2005 | 2005 | 2005 | 2007 | 2006 | ||||||||||||||||||||||
Revenues: | ||||||||||||||||||||||||||||
Software licenses | $ | 27,514 | $ | 22,925 | $ | 23,734 | $ | 3,587 | $ | 20,147 | 20.0 | % | (3.4 | )% | ||||||||||||||
Maintenance | 61,910 | 55,222 | 47,765 | 3,701 | 44,064 | 12.1 | 15.6 | |||||||||||||||||||||
Professional services | 17,491 | 19,582 | 15,085 | 2,520 | 12,565 | (10.7 | ) | 29.8 | ||||||||||||||||||||
Software-enabled services | 141,253 | 107,740 | 75,050 | 7,857 | 67,193 | 31.1 | 43.6 | |||||||||||||||||||||
Total revenues | $ | 248,168 | $ | 205,469 | $ | 161,634 | $ | 17,665 | $ | 143,969 | 20.8 | 27.1 | ||||||||||||||||
Successor | ||||||||||||
Six Months | Six Months | |||||||||||
Ended June 30, | Ended June 30, | Percent | ||||||||||
2007 | 2006 | Change | ||||||||||
Revenues: | ||||||||||||
Software licenses | $ | 11,494 | $ | 10,362 | 10.9 | % | ||||||
Maintenance | 30,233 | 26,348 | 14.7 | |||||||||
Professional services | 9,043 | 10,128 | (10.7 | ) | ||||||||
Software-enabled services | 65,472 | 52,182 | 25.5 | |||||||||
Total revenues | $ | 116,242 | $ | 99,020 | 17.4 | |||||||
45
Successor | Combined | Predecessor | Successor | |||||||||||||||||
Six Months | ||||||||||||||||||||
Year Ended | Year Ended | Year Ended | Ended | |||||||||||||||||
December 31, | December 31, | December 31, | June 30, | |||||||||||||||||
2006 | 2005 | 2004 | 2007 | 2006 | ||||||||||||||||
Revenues: | ||||||||||||||||||||
Software licenses | 11.2 | % | 14.7 | % | 18.0 | % | 9.9 | % | 10.5 | % | ||||||||||
Maintenance | 26.9 | 29.6 | 38.0 | 26.0 | 26.6 | |||||||||||||||
Professional services | 9.5 | 9.3 | 11.8 | 7.8 | 10.2 | |||||||||||||||
Software-enabled services | 52.4 | 46.4 | 32.2 | 56.3 | 52.7 |
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Year Ended December 31, | ||||||||||||
2007 | 2006 | 2005 | ||||||||||
Revenues: | ||||||||||||
Software licenses | 11.1 | % | 11.2 | % | 14.7 | % | ||||||
Maintenance | 25.0 | 26.9 | 29.6 | |||||||||
Professional services | 7.0 | 9.5 | 9.3 | |||||||||
Software-enabled services | 56.9 | 52.4 | 46.4 |
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48
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48
50
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Payments Due by Period | ||||||||||||||||||||
Less Than | More Than | |||||||||||||||||||
Contractual Obligations | Total | 1 Year | 1-3 Years | 3-5 Years | 5 Years | |||||||||||||||
Short-term and long-term debt(1) | $ | 471,929 | $ | 2,674 | $ | 5,348 | $ | 8,348 | $ | 455,559 | ||||||||||
Interest payments(2) | 280,788 | 43,594 | 86,744 | 85,834 | 64,616 | |||||||||||||||
Operating lease obligations(3) | 48,758 | 8,098 | 13,964 | 11,955 | 14,741 | |||||||||||||||
Purchase obligations(4) | 3,940 | 1,754 | 1,168 | 509 | 509 | |||||||||||||||
Total contractual obligations | $ | 805,415 | $ | 56,120 | $ | 107,224 | $ | 106,646 | $ | 535,425 |
Less than | More than | |||||||||||||||||||||||
Contractual Obligations | Total | 1 Year | 1-3 Years | 3-5 Years | 5 Years | All Other | ||||||||||||||||||
Short-term and long-term debt(1) | $ | 443,009 | $ | 2,429 | $ | 4,857 | $ | 230,723 | $ | 205,000 | $ | — | ||||||||||||
Interest payments(2) | 218,047 | 40,784 | 80,890 | 72,285 | 24,088 | — | ||||||||||||||||||
Operating lease obligations(3) | 45,676 | 7,665 | 14,729 | 12,428 | 10,854 | — | ||||||||||||||||||
Purchase obligations(4) | 3,058 | 1,924 | 604 | 509 | 21 | — | ||||||||||||||||||
FIN 48 liability and interest(5) | 6,712 | — | — | — | — | 6,712 | ||||||||||||||||||
Total contractual obligations | $ | 716,502 | $ | 52,802 | $ | 101,080 | $ | 315,945 | $ | 239,963 | $ | 6,712 | ||||||||||||
(1) | Short-term and long-term debt obligations do not reflect our intention to redeem up to 35% of our senior subordinated notes. If we redeem 35% of our senior subordinated notes with the net proceeds from this offering, our payments due in more than five years will be reduced by $71.8 million. |
(2) | Reflects interest payments on our term loan facility at an assumed interest rate of three-month LIBOR of |
51
(3) | We are obligated under noncancelable operating leases for office space and office equipment. The lease for the corporate facility in Windsor, Connecticut |
53
(4) | Purchase obligations include the minimum amounts committed under contracts for goods and services. |
(5) | As of December 31, 2007, our FIN 48 liability and related net interest payable were $6.5 million and $0.2 million, respectively. We are unable to reasonably estimate the timing of FIN 48 liability and interest payments in individual years beyond 12 months due to uncertainties in the timing of the effective settlement of tax positions. |
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• | Consolidated EBITDA does not reflect the provision of income tax expense in our various jurisdictions; | |
• | Consolidated EBITDA does not reflect the significant interest expense we incur as a result of our debt leverage; | |
• | Consolidated EBITDA does not reflect any attribution of costs to our operations related to our investments and capital expenditures through depreciation and amortization charges; | |
• | Consolidated EBITDA does not reflect the cost of compensation we provide to our employees in the form of stock option awards; and | |
• | Consolidated EBITDA excludes expenses that we believe are unusual or non-recurring, but which others may believe are normal expenses for the operation of a business. |
5654
Successor | Combined | Successor | Predecessor | ||||||||||||||||||||||
Period from | |||||||||||||||||||||||||
November 23, | Period from | ||||||||||||||||||||||||
2005 | January 1 | ||||||||||||||||||||||||
Six Months Ended | Year Ended | Year Ended | through | through | |||||||||||||||||||||
June 30, | December 31, | December 31, | December 31, | November 22, | |||||||||||||||||||||
2007 | 2006 | 2006 | 2005 | 2005 | 2005 | ||||||||||||||||||||
(In thousands) | |||||||||||||||||||||||||
Net income (loss) | $ | (1,232 | ) | $ | 1,561 | $ | 1,075 | $ | 1,543 | $ | 831 | $ | 712 | ||||||||||||
Interest expense (income), net | 22,555 | 23,273 | 47,039 | 5,951 | 4,890 | 1,061 | |||||||||||||||||||
Income taxes | (98 | ) | (1,240 | ) | (3,789 | ) | 2,658 | — | 2,658 | ||||||||||||||||
Depreciation and amortization | 17,213 | 13,372 | 27,128 | 11,876 | 2,301 | 9,575 | |||||||||||||||||||
EBITDA | 38,438 | 36,966 | 71,453 | 22,028 | 8,022 | 14,006 | |||||||||||||||||||
Purchase accounting adjustments(1) | (139 | ) | 2,555 | 3,017 | 616 | 616 | — | ||||||||||||||||||
Merger costs | — | — | — | 36,912 | — | 36,912 | |||||||||||||||||||
Capital-based taxes | 664 | 880 | 1,841 | — | — | — | |||||||||||||||||||
Unusual or non-recurring charges(2) | (241 | ) | (670 | ) | 1,485 | (979 | ) | (242 | ) | (737 | ) | ||||||||||||||
Acquired EBITDA and cost savings(3) | 135 | 748 | 1,147 | 14,893 | 85 | 14,808 | |||||||||||||||||||
Stock-based compensation | 4,540 | — | 3,871 | — | — | — | |||||||||||||||||||
Other(4) | 785 | 500 | 1,184 | 107 | 107 | — | |||||||||||||||||||
Consolidated EBITDA | $ | 44,182 | $ | 40,979 | $ | 83,998 | $ | 73,577 | $ | 8,588 | $ | 64,989 | |||||||||||||
Successor | Combined | Successor | Predecessor | ||||||||||||||||||
Period from | |||||||||||||||||||||
November 23, | Period from | ||||||||||||||||||||
2005 | January 1 | ||||||||||||||||||||
Year Ended | Year Ended | Year Ended | through | through | |||||||||||||||||
December 31, | December 31, | December 31, | December 31, | November 22, | |||||||||||||||||
2007 | 2006 | 2005 | 2005 | 2005 | |||||||||||||||||
(In thousands) | |||||||||||||||||||||
Net income | $ | 6,575 | $ | 1,075 | $ | 1,543 | $ | 831 | $ | 712 | |||||||||||
Interest expense, net | 44,524 | 47,039 | 5,951 | 4,890 | 1,061 | ||||||||||||||||
Income tax (benefit) provision | (458 | ) | (3,789 | ) | 2,658 | — | 2,658 | ||||||||||||||
Depreciation and amortization | 35,047 | 27,128 | 11,876 | 2,301 | 9,575 | ||||||||||||||||
EBITDA | 85,688 | 71,453 | 22,028 | 8,022 | 14,006 | ||||||||||||||||
Purchase accounting adjustments(1) | (296 | ) | 3,017 | 616 | 616 | — | |||||||||||||||
Merger costs | — | — | 36,912 | — | 36,912 | ||||||||||||||||
Capital-based taxes | 1,721 | 1,841 | — | — | — | ||||||||||||||||
Unusual or non-recurring charges(2) | (1,718 | ) | 1,485 | (979 | ) | (242 | ) | (737 | ) | ||||||||||||
Acquired EBITDA and cost savings(3) | 135 | 1,147 | 14,893 | 85 | 14,808 | ||||||||||||||||
Stock-based compensation | 10,979 | 3,871 | — | — | — | ||||||||||||||||
Other(4) | 2,158 | 1,184 | 107 | 107 | — | ||||||||||||||||
Consolidated EBITDA, as defined | $ | 98,667 | $ | 83,998 | $ | 73,577 | $ | 8,588 | $ | 64,989 | |||||||||||
(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 the Transaction and (b) an adjustment to increase rent expense by the amount that would have been recognized if lease obligations were not adjusted to fair value at the date of the Transaction. |
(2) | Unusual or non-recurring charges include foreign currency gains and losses, gains and losses on the sales of marketable securities, equity earnings and losses on investments, proceeds |
(3) | Acquired EBITDA and cost savings reflects the EBITDA impact of significant businesses that were acquired during the period as if the acquisition occurred at the beginning of the period and cost savings to be realized from such acquisitions. |
(4) | Other includes management fees and related expenses paid to Carlyle and the non-cash portion of straight-line rent expense. |
Covenant | Actual | |||||||
Requirements | Ratios | |||||||
Maximum consolidated total leverage to Consolidated EBITDA Ratio | 6.75 | x | 5.16 | x | ||||
Minimum Consolidated EBITDA to consolidated net interest coverage ratio | 1.50 | x | 2.00 | x |
Covenant | Actual | |||||||
Requirements | Ratios | |||||||
Maximum consolidated total leverage to Consolidated EBITDA Ratio | 6.75 | x | 4.30 | x | ||||
Minimum Consolidated EBITDA to consolidated net interest coverage ratio | 1.50 | x | 2.34 | x |
55
57
56
5857
Real Estate | ||||||||||||||||||||||||||||||||||||||||||||
Alternative | Corporate | Institutional | Insurance & | Municipal | Leasing/ | |||||||||||||||||||||||||||||||||||||||
Selected | Investment | Treasury | Financial | Assets | Pension | Commercial | Finance | Property | ||||||||||||||||||||||||||||||||||||
Functionality | Managers | Groups | Institutions | Managers | Funds | Lenders | Groups | Managers | ||||||||||||||||||||||||||||||||||||
Portfolio Management/Accounting | ü | ü | ü | ü | ü | |||||||||||||||||||||||||||||||||||||||
Trading/Treasury Operations | ü | ü | ü | ü | ü | |||||||||||||||||||||||||||||||||||||||
Financial Modeling | ü | ü | ü | |||||||||||||||||||||||||||||||||||||||||
SS&C Fund Services | ü | |||||||||||||||||||||||||||||||||||||||||||
Loan Management/Accounting | ü | ü | ü | |||||||||||||||||||||||||||||||||||||||||
Money Market Processing | ü | |||||||||||||||||||||||||||||||||||||||||||
Property Management | ü |
5958
6059
6160
6261
6362
• | provide complementary products or services in the financial services industry; | |
• | address a highly specialized problem or a market niche in the financial services industry; | |
• | expand our global reach into strategic geographic markets; | |
• | have solutions that lend themselves to being delivered as software-enabled services; and | |
• | possess proven technology and an established client base that will provide a source of ongoing revenues and to whom we may be able to sell existing products and services. |
6463
Acquired Products and | ||||||
Date | Acquired Business | Contract Purchase Price* | Services Currently Offered | |||
March 1995 | Chalke | $10,000,000 | PTS | |||
November 1997 | Mabel Systems | $850,000 and 109,224 shares | Mabel | |||
December 1997 | Shepro Braun Systems | 1,500,000 shares | Total Return, Antares | |||
March 1998 | Quantra | $2,269,800 and 819,028 shares | SKYLINE | |||
April 1998 | The Savid Group | $821,500 | Debt & Derivatives | |||
March 1999 | HedgeWare | 1,028,524 shares | AdvisorWare | |||
March 1999 | Brookside | 41,400 shares | Consulting services | |||
November 2001 | Digital Visions | $1,350,000 | PortPro, The BANC Mall, PALMS | |||
January 2002 | Real-Time, USA | $4,000,000 | Real-Time, Lightning | |||
November 2002 | DBC | $4,500,000 | Municipal finance products | |||
December 2003 | Amicorp Fund Services | $1,800,000 | Fund services | |||
January 2004 | Investment Advisory Network | $3,000,000 | Compass, Portfolio Manager | |||
February 2004 | NeoVision Hypersystems | $1,600,000 | Heatmaps | |||
April 2004 | OMR Systems | $19,671,000 | TradeThru, Xacct | |||
February 2005 | Achievement Technologies | $470,000 | SamTrak | |||
February 2005 | EisnerFast | $25,300,000 | Fund services | |||
April 2005 | Financial Models Company | $159,000,000 | FMC suite of products | |||
June 2005 | Financial Interactive | 358,424 shares and warrants to purchase 50,000 shares | FundRunner | |||
August 2005 | MarginMan | $5,600,000 | MarginMan | |||
October 2005 | Open Information Systems | $24,000,000 | Money Market Manager, Information Manager | |||
March 2006 | Cogent Management | $12,250,000 | Fund services | |||
August 2006 | Zoologic | $3,000,000 | Education and training courseware | |||
March 2007 | Northport | $5,000,000 | Fund services |
6564
Products | Typical Users | Vertical Markets Served | ||||
Portfolio Management/Accounting | ||||||
AdvisorWare Altair CAMRA CAMRA D Class Debt & Derivatives FundRunner FundRunnerInvestorsite FundRunnerMarathon Lightning Pacer Pages PALMS PortPro Recon SS&C Wealth Management Suite Front Office Sylvan Total Return | Portfolio managers Asset managers Fund administrators Investment advisors Accountants Auditors Alternative investment managers Brokers/dealers | Alternative investment managers Corporate treasury groups Financial institutions Institutional asset managers Insurance and pension funds | ||||
Trading/Treasury Operations | ||||||
Antares Heatmaps MarginMan Suite Front Office TradeDesk TradeThru | Securities traders Financial institutions Risk managers Foreign exchange traders Asset managers | Alternative investment managers Corporate treasury groups Financial institutions Institutional asset managers Insurance and pension funds | ||||
6665
Products | Typical Users | Vertical Markets Served | ||||
Financial Modeling | ||||||
AnalyticsExpress DBC (family of products) Finesse HD PTS | CEO/CFOs Risk managers Actuarial professionals Bank asset/liability managers Investment bankers State/local treasury staff Financial advisors | Insurance and pension funds Financial institutions Municipal finance groups | ||||
Loan Management/Accounting | ||||||
LMS Loan Suite LMS Originator LMS Servicer The BANC Mall | Mortgage originators Commercial lenders Mortgage loan servicers Mortgage loan portfolio managers Real estate investment managers Bank/credit union loan officers | Commercial lenders Financial institutions Insurance and pension funds | ||||
Property Management | ||||||
SKYLINE (family of products) SamTrak | Real estate investment managers Real estate leasing agents Real estate property managers Facility managers | Real estate leasing/property managers | ||||
Money Market Processing | ||||||
Information Manager Money Market Manager | Financial institutions Custodians Security lenders Cash managers | Financial institutions | ||||
Training | ||||||
Zoologic Learning Solutions | Financial institutions Asset managers Hedge fund managers Investment bankers | All verticals | ||||
Services | Typical Users | Vertical Markets Served | ||||
Software-enabled services | ||||||
SS&C Direct SS&C Fund Services SSCNet SVC | Portfolio managers Asset managers Fund administrators Investment advisors Alternative investment managers Securities traders | Alternative investment managers Financial institutions Institutional asset managers Insurance and pension funds | ||||
6766
6867
6968
• | general bond structures, | |
• | revenue bonds, | |
• | housing bonds, | |
• | student loans, and | |
• | Federal Housing Administration — insured revenue bonds and securitizations. |
7069
• commercial | • retirement communities | |||
• residential | • universities | |||
• retail | • hospitals |
7170
• | hosting of a company’s application software, | |
• | automated workflow integration, | |
• | automated quality control mechanisms, and | |
• | extensive interface and connectivity services to custodian banks, data service providers, depositories and other external entities. |
• hedge fund managers | • investment managers | |||
• funds of funds managers | • commodity pool operators | |||
• commodity trading advisors | • proprietary traders | |||
• family offices | • private equity groups | |||
• private wealth groups | • separate managed accounts |
7271
7372
• | content-rich, periodic software and serviceseBriefingstargeted at clients and prospects in each of our vertical and geographic markets, | |
• | regular product-focused webinars, | |
• | seminars and symposiums, | |
• | trade shows and conferences, and | |
• | e-marketing campaigns. |
7473
7574
• |
• |
• |
• |
• |
7675
7776
Name | Age | Position | ||||
William C. Stone | 52 | Chairman of the Board and Chief Executive Officer | ||||
Normand A. Boulanger | President, Chief Operating Officer and Director | |||||
Patrick J. Pedonti | Senior Vice President and Chief Financial Officer | |||||
Stephen V.R. Whitman | Senior Vice President, General Counsel and Secretary | |||||
William A. Etherington(1)(2) | Director | |||||
Allan M. Holt(1)(3) | Director | |||||
Todd R. Newnam(2) | Director | |||||
Claudius (Bud) E. Watts IV(1)(2)(3) | Director | |||||
Kenneth | 62 | Director Nominee |
(1) | Member of our Compensation Committee. | |
(2) | Member of our Audit Committee. |
(3) | Member of our Nominating Committee as of the closing of this offering. |
(4) | Mr. Daly will become a director upon the closing of this offering and join our Audit |
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• | appointing, approving the compensation of, and assessing the independence of our independent registered public accounting firm; | |
• | overseeing the work of our independent registered public accounting firm, including through the receipt and consideration of reports from our independent registered public accounting firm; | |
• | reviewing and discussing with management and our independent registered public accounting firm our annual and quarterly financial statements and related disclosures; | |
• | coordinating our board of directors’ oversight of internal control over financial reporting, disclosure controls and procedures and our code of business conduct and ethics; | |
• | establishing procedures for the receipt and retention of accounting related complaints and concerns; | |
• | approving any related person transactions; and | |
• | preparing the audit committee report required by the rules of the Securities and Exchange Commission. |
• | reviewing and approving, or making recommendations to our board of directors with respect to, the compensation of our chief executive officer and our other executive officers; | |
• | overseeing and administering our cash and equity incentive plans; | |
• | reviewing and making recommendations to our board with respect to director compensation; and | |
• | preparing the compensation committee report required by Securities and Exchange Commission rules. |
• | identifying individuals qualified to become members of our board of directors; | |
• | recommending to our board of directors the persons to be nominated for election as directors and to each of the board’s committees; and |
79
• | reviewing and making recommendations to our board of directors with respect to management succession planning. |
80
• | attract, retain and motivate the best possible executive talent; | |
• | reward successful performance by the executive officers and the company; and | |
• | align the interests of executive officers with those of our stockholders by providing long-term equity compensation. |
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• | base salary; | |
• | discretionary annual cash bonuses; | |
• | stock option awards; | |
• | perquisites; and | |
• | severance and change-of-control benefits. |
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• | 40% of the options are “time-based” options that vest as to 25% of the number of shares underlying the option on November 23, 2006 and as to 1/36 of the number of shares underlying the option each month thereafter until fully vested on November 23, 2009. The time-based options become fully vested and exercisable immediately prior to the effective date of a liquidity event, as |
82
• | 40% of the options are “performance-based” options that vest based on the determination by our board of directors or compensation committee as to whether our |
• | 20% of the options are “superior” options, |
83
• | conversion of our outstanding superior options into performance-based options that vest based on our EBITDA performance in 2008, 2009 and 2010 (and 2011 for options awarded in 2007); |
• | vesting in full of the 2006 and 2007 performance-based options; |
• | elimination of pre-determined EBITDA ranges from the option agreements and provision for the annual proposal of EBITDA ranges by management, subject to approval by our board of directors; |
• | “rolling over” of performance-based options that do not vest (in whole or in part) in any given year into performance-based options for the following year, except as otherwise provided by our board of directors; and |
• | amendment of the definition of “liquidity event.” |
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Name and | Stock | Option | All Other | |||||||||||||||||||||||||
Principal Position | Year | Salary($) | Bonus($) | Awards($) | Awards($)(1) | Compensation($) | Total($) | |||||||||||||||||||||
William C. Stone, Chief Executive Officer | 2006 | $ | 500,000 | $ | 895,000 | — | $ | 597,582 | $ | 3,224 | (2) | $ | 1,995,806 | |||||||||||||||
Normand A. Boulanger, Chief Operating Officer | 2006 | 350,000 | 440,000 | — | 448,188 | 3,264 | (3) | 1,241,452 | ||||||||||||||||||||
Patrick J. Pedonti, Chief Financial Officer | 2006 | 200,000 | 165,000 | — | 224,094 | 3,160 | (4) | 592,254 | ||||||||||||||||||||
Stephen V.R. Whitman, General Counsel | 2006 | 190,000 | 100,000 | — | 119,515 | 3,264 | (5) | 412,779 | ||||||||||||||||||||
Kevin Milne, Senior Vice President — International(6) | 2006 | 317,867 | — | — | — | 148,765 | (7) | 466,632 |
Name and | Option | All Other | ||||||||||||||||||||||
Principal Position | Year | Salary($) | Bonus($) | Awards($)(1) | Compensation($) | Total($) | ||||||||||||||||||
William C. Stone, | 2007 | $ | 591,667 | $ | 1,175,000 | $ | 1,713,901 | $ | 3,552 | (2) | $ | 3,484,120 | ||||||||||||
Chief Executive Officer | 2006 | 500,000 | 895,000 | 597,582 | 3,552 | 1,996,134 | ||||||||||||||||||
Normand A. Boulanger, | 2007 | 395,833 | 600,000 | 1,285,437 | 3,360 | (3) | 2,284,630 | |||||||||||||||||
Chief Operating Officer | 2006 | 350,000 | 440,000 | 448,188 | 3,240 | 1,241,508 | ||||||||||||||||||
Patrick J. Pedonti, | 2007 | 222,917 | 225,000 | 642,734 | 3,887 | (4) | 1,094,538 | |||||||||||||||||
Chief Financial Officer | 2006 | 200,000 | 165,000 | 224,094 | 3,774 | 592,414 | ||||||||||||||||||
Stephen V.R. Whitman, | 2007 | 203,750 | 150,000 | 342,811 | 4,213 | (5) | 700,774 | |||||||||||||||||
General Counsel | 2006 | 190,000 | 100,000 | 119,515 | 3,722 | 412,819 |
(1) | The amounts in this column for 2006 and 2007 reflect the dollar amount earned for financial reporting purposes for |
(2) | Consists of our contribution of $3,000 to Mr. Stone’s account under the SS&C 401(k) savings plan and our payment of |
(3) | Consists of our contribution of $3,000 to Mr. Boulanger’s account under the SS&C 401(k) savings plan and our payment of |
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(4) | Consists of our contribution of $3,000 to Mr. Pedonti’s account under the SS&C 401(k) savings plan and our payment of |
(5) | Consists of our contribution of $3,000 to Mr. Whitman’s account under the SS&C 401(k) savings plan and our payment of | |
• | The employment of Mr. Stone as the chief executive officer of SS&C Holdings and SS&C; | |
• | An initial term through November 23, 2008, with automatic one-year renewals until terminated either by Mr. Stone or us; | |
• | An annual base salary of at least $500,000; | |
• | An opportunity to receive an annual bonus in an amount to be established by our board of directors based on achieving individual and company performance goals mutually determined by our board and |
86
Mr. Stone. If Mr. Stone is employed at the end of any calendar year, his annual bonus will not be less than $450,000 for that year; |
• | A grant of options to purchase shares of our common stock representing 2% of our outstanding common stock on November 23, 2005; |
• | Certain severance payments and benefits. If we terminate Mr. Stone’s employment without cause, if Mr. Stone resigns for good reason (including, under certain circumstances, |
• | Certain restrictive covenants, including a non-competition covenant pursuant to which Mr. Stone will be prohibited from competing with SS&C and its affiliates during his employment and for a period equal to the later of (1) four years following the effective time of the merger, in the case of a termination by us for cause or a resignation by Mr. Stone without good reason, and (2) two years following Mr. Stone’s termination of employment for any reason. |
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• | the then-outstanding shares of our common stock or the common stock of SS&C, or | |
• | the combined voting power of our then-outstanding voting securities or the then-outstanding voting securities of SS&C entitled to vote generally in the election of directors (in each case, other than any acquisition by us, Carlyle Partners IV, L.P. (an investment fund affiliated with Carlyle), Mr. Stone, any employee or group of employees of ours, or affiliates of any of the foregoing, or |
87
by any employee benefit plan (or related trust) sponsored or maintained by us or any of our affiliates); or |
• | individuals whose election, or nomination for election by our stockholders, was approved by at least a majority of the directors comprising the board of directors on the effective date of Mr. Stone’s employment agreement and any individuals subsequently elected to our board of directors pursuant to the stockholders agreement or | |
• | individuals nominated or designated for election by Carlyle Partners IV, L.P. |
All Other | ||||||||||||||||||||
Option Awards: | ||||||||||||||||||||
Estimated Future | Number of | Exercise or | ||||||||||||||||||
Payouts Under Equity | Securities | Base Price | Grant Date Fair | |||||||||||||||||
Grant | Incentive Plan Awards | Underlying | of Option | Value of Option | ||||||||||||||||
Name | Date(1) | Target(#) | Options(#) | Awards ($/Sh) | Awards(5) | |||||||||||||||
William C. Stone | 8/9/06 | — | 70,993 | (2) | $ | 74.50 | $ | 31.08 | ||||||||||||
8/9/06 | 70,993 | (3) | — | 74.50 | 32.98 | |||||||||||||||
8/9/06 | 35,496 | (4) | 74.50 | 21.23 | ||||||||||||||||
Normand A. Boulanger | 8/9/06 | — | 53,245 | (2) | 74.50 | 31.08 | ||||||||||||||
8/9/06 | 53,245 | (3) | — | 74.50 | 32.98 | |||||||||||||||
8/9/06 | 26,622 | (4) | — | 74.50 | 21.23 | |||||||||||||||
Patrick J. Pedonti | 8/9/06 | — | 26,623 | (2) | 74.50 | 31.08 | ||||||||||||||
8/9/06 | 26,622 | (3) | — | 74.50 | 32.98 | |||||||||||||||
8/9/06 | 13,311 | (4) | — | 74.50 | 21.23 | |||||||||||||||
Stephen V.R. Whitman | 8/9/06 | — | 14,199 | (2) | 74.50 | 31.08 | ||||||||||||||
8/9/06 | 14,198 | (3) | — | 74.50 | 32.98 | |||||||||||||||
8/9/06 | 7,099 | (4) | — | 74.50 | 21.23 | |||||||||||||||
Kevin Milne | 8/9/06 | — | 8,874 | (2) | 74.50 | 31.08 | ||||||||||||||
8/9/06 | 8,874 | (3) | — | 74.50 | 32.98 | |||||||||||||||
8/9/06 | 4,437 | (4) | — | 74.50 | 21.23 |
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89
• | to prescribe, amend and rescind rules and regulations relating to our 2006 equity incentive plan, | |
• | to determine the type or types of awards to be granted under our 2006 equity incentive plan, | |
• | to select the persons to whom awards may be granted under our 2006 equity incentive plan, | |
• | to grant awards and to determine the terms and conditions of such awards, | |
• | to construe and interpret our 2006 equity incentive plan and | |
• | to amend, suspend or terminate our 2006 equity incentive plan. |
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• | each option will vest, depending on the classification of the option as a time option, performance option or superior option, as follows: |
° |
° | A certain percentage of the performance options will vest based on the administrator’s determination as to whether our EBIDTA for each fiscal year 2006 through 2010 (2007 through 2011 for options awarded in 2007) |
90
° | The |
• | any portion of an option that is unvested at the time of a participant’s termination of service with us will be forfeited to us; and | |
• | any portion of an option that is vested but unexercised at the time of a participant’s termination of service with us may not be exercised after the first to occur of the following: |
° | the expiration date of the option, which will be no later than ten years from the date of grant, |
° |
° | the date of the termination of service for cause and | |
° | twelve months following the termination of service by reason of the participant’s death or disability. |
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• | to adopt, amend and repeal rules and regulations relating to our 2008 stock incentive plan; |
• | to determine the type or types of awards to be granted under our 2008 stock incentive plan; |
• | to select the persons to whom awards may be granted under our 2008 stock incentive plan; |
• | to grant awards and to determine the terms and conditions of such awards; |
• | to delegate to one or more of our officers the power to grant awards under our 2008 stock incentive plan to our employees or officers (other than executive officers); |
• | to construe and interpret our 2008 stock incentive plan; and |
• | to amend, suspend or terminate our 2008 stock incentive plan, subject in certain instances to stockholder approval. |
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• | each option will vest as to 25% of the number of shares underlying the option on the first anniversary of the date of grant and will continue to vest as to an additional 1/36 of the remaining number of shares underlying the option on the day of the month of the date of grant each month thereafter until the fourth anniversary of the date of grant; |
• | options will become fully vested and exercisable immediately prior to the effective date of a change in control as defined in the stock option agreement; |
• | any portion of an option that is unvested at the time of a participant’s termination of service with us will be forfeited to us; and |
• | any portion of an option that is vested but unexercised at the time of a participant’s termination of service with us may not be exercised after the first to occur of the following: |
° | the expiration date of the option, which will be no later than ten years from the date of grant, |
° | 90 days following the date of the termination of service for any reason other than cause, death or disability, |
° | the date of the termination of service for cause, and |
° | twelve months following the termination of service by reason of the participant’s death or disability. |
• | provide that awards shall be assumed, or substantially equivalent awards shall be distributed, by the acquiring or succeeding corporation; |
• | upon written notice to a participant, provide that the participant’s unexercised awards will terminate immediately prior to the consummation of such corporate event unless exercised by the participant within a specified period following the date of notice; |
• | provide that outstanding awards shall become exercisable, realizable or deliverable, or restrictions applicable to an award shall lapse, in whole or in part prior to or upon such corporate event; |
• | in the event of a corporate event under the terms of which holders of our common stock will receive a cash payment for each share surrendered in connection with the corporate event, make or provide for a cash payment to participants in exchange for the termination of all such awards; |
• | provide that, in connection with our liquidation or dissolution, awards shall convert into the right to receive liquidation proceedings (net of any applicable exercise price or tax withholdings); and |
• | any combination of the foregoing. |
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Equity | ||||||||||||||||||||
Incentive | ||||||||||||||||||||
Plan Awards: | ||||||||||||||||||||
Number of | ||||||||||||||||||||
Number of | Number of | Securities | ||||||||||||||||||
Securities | Securities | Underlying | ||||||||||||||||||
Underlying | Underlying | Unexercised | ||||||||||||||||||
Unexercised | Unexercised | Unearned | Option | Option | ||||||||||||||||
Options (#) | Options(#) | Options | Exercise | Expiration | ||||||||||||||||
Name | Exercisable | Unexercisable | (#)(3) | Price ($) | Date | |||||||||||||||
William C. Stone | 75,000 | (1) | — | — | $ | 7.334 | 2/17/2010 | |||||||||||||
75,000 | (1) | — | — | 6.60 | 5/31/2011 | |||||||||||||||
150,000 | (1) | — | — | 15.986 | 4/8/2013 | |||||||||||||||
19,227 | (2) | 51,766 | (2) | — | 74.50 | 8/9/2016 | ||||||||||||||
— | — | 70,993 | (3) | 74.50 | 8/9/2016 | |||||||||||||||
— | — | 35,496 | (4) | 74.50 | 8/9/2016 | |||||||||||||||
Normand A. Boulanger | 25,000 | (1) | — | — | 35.70 | 10/18/2014 | ||||||||||||||
37,500 | (1) | — | — | 14.962 | 2/6/2013 | |||||||||||||||
14,420 | (2) | 38,825 | (2) | — | 74.50 | 8/9/2016 | ||||||||||||||
— | — | 53,245 | (3) | 74.50 | 8/9/2016 | |||||||||||||||
— | — | 26,622 | (4) | 74.50 | 8/9/2016 | |||||||||||||||
Patrick J. Pedonti | 15,000 | (1) | — | — | 16.56 | 8/1/2012 | ||||||||||||||
7,210 | (2) | 19,413 | (2) | — | 74.50 | 8/9/2016 | ||||||||||||||
— | — | 26,622 | (3) | 74.50 | 8/9/2016 | |||||||||||||||
— | — | 13,311 | (4) | 74.50 | 8/9/2016 | |||||||||||||||
Stephen V.R. Whitman | 7,461 | (1) | — | — | 14.962 | 2/6/2013 | ||||||||||||||
3,845 | (2) | 10,354 | (2) | — | 74.50 | 8/9/2016 | ||||||||||||||
— | — | 14,198 | (3) | 74.50 | 8/9/2016 | |||||||||||||||
— | — | 7,099 | (4) | 74.50 | 8/9/2016 | |||||||||||||||
Kevin Milne(5) | — | — | — | — | — |
Equity | ||||||||||||||||||||
Incentive | ||||||||||||||||||||
Plan Awards: | ||||||||||||||||||||
Number of | ||||||||||||||||||||
Number of | Number of | Securities | ||||||||||||||||||
Securities | Securities | Underlying | ||||||||||||||||||
Underlying | Underlying | Unexercised | ||||||||||||||||||
Unexercised | Unexercised | Unearned | Option | Option | ||||||||||||||||
Options (#) | Options(#) | Options | Exercise | Expiration | ||||||||||||||||
Name | Exercisable | Unexercisable | (#)(3) | Price ($) | Date | |||||||||||||||
William C. Stone | 562,500 | (1) | — | — | $ | 0.98 | 2/17/2010 | |||||||||||||
562,500 | (1) | — | — | 0.88 | 5/31/2011 | |||||||||||||||
1,125,000 | (1) | — | — | 2.13 | 4/8/2013 | |||||||||||||||
277,320 | (2) | 255,126 | (2) | — | 9.93 | 8/9/2016 | ||||||||||||||
191,692 | (3) | — | 340,754 | (3) | 9.93 | 8/9/2016 | ||||||||||||||
— | — | 266,223 | (4) | 9.93 | 8/9/2016 | |||||||||||||||
Normand A. Boulanger | 187,500 | (1) | — | — | 4.76 | 10/18/2014 | ||||||||||||||
281,250 | (1) | — | — | 2.00 | 2/6/2013 | |||||||||||||||
207,990 | (2) | 191,346 | (2) | — | 9.93 | 8/9/2016 | ||||||||||||||
143,767 | (3) | — | 255,569 | (3) | 9.93 | 8/9/2016 | ||||||||||||||
— | — | 199,668 | (4) | 9.93 | 8/9/2016 | |||||||||||||||
Patrick J. Pedonti | 112,499 | (1) | — | — | 2.21 | 8/1/2012 | ||||||||||||||
103,995 | (2) | 95,673 | (2) | — | 9.93 | 8/9/2016 | ||||||||||||||
71,887 | (3) | — | 127,781 | (3) | 9.93 | 8/9/2016 | ||||||||||||||
— | — | 99,834 | (4) | 9.93 | 8/9/2016 | |||||||||||||||
Stephen V.R. Whitman | 55,957 | (1) | — | — | 2.00 | 2/6/2013 | ||||||||||||||
55,462 | (2) | 51,026 | (2) | — | 9.93 | 8/9/2016 | ||||||||||||||
38,340 | (3) | — | 68,148 | (3) | 9.93 | 8/9/2016 | ||||||||||||||
— | — | 53,244 | (4) | 9.93 | 8/9/2016 |
(1) | These options were granted under our prior 1998 stock incentive plan and are fully vested. |
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(2) | This option is a time-based option awarded under our 2006 equity incentive plan that vests as to 25% of the number of shares underlying the option on November 23, 2006 and as to 1/36 of the number of shares underlying the option on the day of the month of the date of the grant each month thereafter until fully vested on November 23, 2009. The time-based options become fully vested and exercisable immediately prior to the effective date of a liquidity event, as |
(3) | This option is a performance-based option awarded under our 2006 equity incentive plan that vests based on the determination by our board of directors or compensation committee as to whether our EBITDA for each fiscal year 2006 through 2010 |
(4) | This option | |
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Payments to | Without Cause, For | For Cause or | ||||||||||||||||||
William C. Stone | Good Reason or | Without | ||||||||||||||||||
Upon Termination | Upon Notice of | Good Reason | Liquidity | |||||||||||||||||
or Liquidity Event | Non-Renewal | (1) | Event(2) | Disability | Death | |||||||||||||||
Base salary | $ | 1,000,000 | (3) | $ | — | $ | — | $ | — | $ | — | |||||||||
Target annual bonus | 900,000 | (4) | — | — | 450,000 | (5) | 450,000 | (5) | ||||||||||||
Stock Options(6) | — | (7) | — | — | — | (7) | — | (7) | ||||||||||||
Health and welfare benefits | 33,986 | (8) | — | — | — | — | ||||||||||||||
Tax gross up payment | 2,363,761 | (9) | — | — | — | — | ||||||||||||||
Disability benefits | — | — | — | — | — | |||||||||||||||
Life insurance proceeds | — | — | — | — | ||||||||||||||||
Total | $ | 4,297,747 | $ | — | $ | — | $ | 450,000 | $ | 450,000 |
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Without Cause, For | ||||||||||||||||||||
Good Reason | ||||||||||||||||||||
(Including Certain | ||||||||||||||||||||
Payments to | Changes of | For Cause or | ||||||||||||||||||
William C. Stone | Control) or | Without | ||||||||||||||||||
Upon Termination | Upon Notice of | Good Reason | Liquidity | |||||||||||||||||
or Liquidity Event | Non-Renewal | (1) | Event(2) | Disability | Death | |||||||||||||||
Base salary | $ | 1,200,000 | (3) | $ | — | $ | — | $ | — | $ | — | |||||||||
Target annual bonus | 900,000 | (4) | — | — | 450,000 | (5) | 450,000 | (5) | ||||||||||||
Stock options(6) | (7) | — | (7) | (7) | ||||||||||||||||
Health and welfare benefits | 37,351 | (8) | — | — | — | — | ||||||||||||||
Tax gross up payment | 2,612,318 | (9) | — | — | — | — | ||||||||||||||
Disability benefits | — | — | — | — | — | |||||||||||||||
Life insurance proceeds | — | — | — | — | ||||||||||||||||
Total | $ | $ | — | $ | $ | $ |
(1) | In the event that Mr. Stone’s employment is terminated for cause or without good reason, he will be entitled to unpaid base salary through the date of the termination, payment of any annual bonus earned with respect to a completed fiscal year of SS&C that is unpaid as of the date of termination and any benefits due to him under any employee benefit plan, policy, program, arrangement or agreement. |
(2) | Liquidity event is defined in our 2006 equity incentive plan. Time-based options will become fully vested and exercisable immediately prior to the effective date of a liquidity event. Performance-based options, including superior options that convert into performance-based options upon the closing of this offering, will vest in whole or in part immediately prior to the effective date of a liquidity event if proceeds from the liquidity event equal or exceed a certain target. |
(3) | Consists of 200% of |
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(4) | Consists of 200% of |
(5) | Consists of a cash payment equal to the amount of Mr. Stone’s target annual bonus for |
(6) | Based upon an exercise price of |
(7) | Vesting acceleration with respect to unvested options to purchase an aggregate of |
(8) | Represents three years of coverage under SS&C’s medical, dental and vision benefit plans. | |
(9) | In the event that the severance and other benefits provided for in Mr. Stone’s employment agreement or otherwise payable to him in connection with a change in control constitute “parachute payments” within the meaning of Section 280G of the Internal Revenue Code of 1986 and will be subject to the excise tax imposed by Section 4999 of the Code, then Mr. Stone shall receive (a) a payment from us sufficient to pay such excise tax, and (b) an additional payment from us sufficient to pay the excise tax and federal and state income taxes arising from the payments made by us to Mr. Stone pursuant to this sentence. |
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Number of Shares | ||||||||
Underlying | Value of Unvested | |||||||
Name | Unvested Options (#) | Options ($)(1) | ||||||
Normand A. Boulanger | $ | |||||||
Patrick J. Pedonti | ||||||||
Stephen V.R. Whitman |
(1) | The value of unvested options was calculated by multiplying the number of shares underlying unvested options by |
Fees Earned | ||||||||||||
or Paid in | ||||||||||||
Cash | Option Awards | Total | ||||||||||
Name | ($)(1) | ($)(2) | ($) | |||||||||
William Etherington | $ | 27,500 | $ | 77,700 | $ | 105,200 |
Fees Earned | ||||||||||||
or Paid in | ||||||||||||
Cash | Option Awards | Total | ||||||||||
Name | ($)(1) | ($)(2) | ($) | |||||||||
William Etherington | $ | 32,500 | — | $ | 32,500 |
(1) | For his service as a director, Mr. Etherington is paid an annual retainer fee of $25,000 and $2,500 for each board meeting attended in person. Mr. Etherington was paid an aggregate of |
(2) | Upon his election to the board of directors in 2006, Mr. Etherington was granted an option to purchase |
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• | the related person’s interest in the related person transaction; | |
• | the approximate dollar value of the amount involved in the related person transaction; | |
• | the approximate dollar value of the amount of the related person’s interest in the transaction without regard to the amount of any profit or loss; | |
• | whether the transaction was undertaken in the ordinary course of our business; | |
• | whether the terms of the transaction are no less favorable to us than terms that could have been reached with an unrelated third party; |
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• | the purpose of, and the potential benefits to us of, the transaction; and | |
• | any other information regarding the related person transaction or the related person in the context of the proposed transaction that would be material to investors in light of the circumstances of the particular transaction. |
• | interests arising solely from the related person’s position as an executive officer of another entity (whether or not the person is also a director of such entity), that is a participant in the transaction, where (a) the related person and all other related persons own in the aggregate less than a 10% equity interest in such entity and (b) the related person and his or her immediate family members are not involved in the negotiation of the terms of the transaction and do not receive any special benefits as a result of the transaction, and (c) the amount involved in the transaction equals less than the greater of $200,000 or 5% of the annual gross revenues of the company receiving payment under the transaction; and | |
• | a transaction that is specifically contemplated by provisions of our charter or bylaws. |
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• | each person we know to be the beneficial owner of more than 5% of the outstanding shares of common stock; | |
• | each of our named executive officers; |
• | each of our directors and director nominees; |
• | all of our executive officers and directors as a |
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• | each of our other selling stockholders. |
Shares | Shares | |||||||||||||||||||||||||||||||
Offered | Shares Beneficially | Offered | ||||||||||||||||||||||||||||||
Assuming the | Owned After the | Assuming the | Shares Beneficially | |||||||||||||||||||||||||||||
Underwriters’ | Offering Assuming | Underwriters’ | Owned After the Offering | |||||||||||||||||||||||||||||
Shares | Over- | the Underwriters’ | Over- | Assuming the | ||||||||||||||||||||||||||||
Beneficially | Allotment | Over-Allotment | Allotment | Underwriters’ Over- | ||||||||||||||||||||||||||||
Owned Prior | Option is | Option is Not | Option is | Allotment Option is | ||||||||||||||||||||||||||||
to the Offering | Not | Exercised | Exercised in | Exercised in Full(1) | ||||||||||||||||||||||||||||
Number | Percent | Exercised | Number | Percent | Full(1) | Number | Percent | |||||||||||||||||||||||||
Beneficial Owner | ||||||||||||||||||||||||||||||||
TCG Holdings, L.L.C.(2) | 5,114,095 | 72.2 | % | |||||||||||||||||||||||||||||
William A. Etherington(3) | 2,500 | * | ||||||||||||||||||||||||||||||
Allan M. Holt(4) | — | — | ||||||||||||||||||||||||||||||
Claudius (Bud) E. Watts IV(4) | — | — | ||||||||||||||||||||||||||||||
Todd Newnam(4) | — | — | ||||||||||||||||||||||||||||||
William C. Stone(5) | 2,300,617 | 31.0 | % | |||||||||||||||||||||||||||||
Normand A. Boulanger(6) | 92,228 | 1.3 | % | |||||||||||||||||||||||||||||
Patrick J. Pedonti(7) | 29,864 | * | ||||||||||||||||||||||||||||||
Stephen V.R. Whitman(8) | 15,388 | * | �� | |||||||||||||||||||||||||||||
Kevin Milne | — | — | ||||||||||||||||||||||||||||||
Kenneth Daly | — | — | ||||||||||||||||||||||||||||||
All directors and executive officers as a group (8 persons)(9) | 2,440,597 | 32.3 | % |
Shares Beneficially Owned Prior to the Offering | Shares Beneficially Owned After the Offering | |||||||||||||||||||
Number | Percent | Shares Offered | Number | Percent | ||||||||||||||||
Beneficial Owner | ||||||||||||||||||||
5% Stockholders: | ||||||||||||||||||||
TCG Holdings, L.L.C.(1) | 38,355,712 | 72.2 | % | |||||||||||||||||
William C. Stone(2) | 17,448,539 | 31.2 | % | |||||||||||||||||
Other Directors, Director Nominees and Named Executive Officers: | ||||||||||||||||||||
Normand A. Boulanger(3) | 837,149 | 1.6 | % | |||||||||||||||||
Kenneth Daly | — | — | ||||||||||||||||||
William A. Etherington(4) | 18,750 | * | ||||||||||||||||||
Allan M. Holt(5) | — | — |
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Shares Beneficially Owned Prior to the Offering | Shares Beneficially Owned After the Offering | |||||||||||||||||||
Number | Percent | Shares Offered | Number | Percent | ||||||||||||||||
Todd R. Newnam(5) | — | — | ||||||||||||||||||
Claudius (Bud) E. Watts IV(5) | — | — | ||||||||||||||||||
Patrick J. Pedonti(6) | 296,714 | * | ||||||||||||||||||
Stephen V.R. Whitman(7) | 154,199 | * | ||||||||||||||||||
All directors and executive officers as a group (8 persons)(8) | 18,755,351 | 32.8 | % | |||||||||||||||||
Other Selling Stockholders: |
* | Represents less than one percent of the outstanding shares of common stock. |
(1) | ||
TC Group IV, L.P. is the sole general partner of Carlyle Partners IV, L.P. and CP IV Coinvestment, L.P., the record holders of |
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Coinvestment, L.P. may be considered an affiliate or associated person of a broker-dealer that is not participating in this offering. Each represents that it acquired its shares in the ordinary course of business and at the time of purchase had no agreements or understandings, directly or indirectly, with any person to distribute the securities. The principal address and principal offices of TCG Holdings, L.L.C. and certain affiliates isc/o The Carlyle Group, 1001 Pennsylvania Avenue, N.W., Suite 220 South, Washington, D.C.20004-2505. |
(2) | Includes 2,741,197 shares subject to outstanding stock options exercisable on or within the60-day period following December 31, 2007. |
(3) | Consists of |
(4) | Consists of 18,750 shares subject to outstanding stock options exercisable on or within the60-day period following December 31, 2007. |
(5) | Does not include |
Consists of |
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• | liens; | |
• | sale-leaseback transactions; | |
• | debt; | |
• | dividends and other restricted payments; | |
• | redemptions and stock repurchases; | |
• | consolidations, mergers and acquisitions; | |
• | asset dispositions; | |
• | investments, loans and advances; | |
• | changes in line of business; |
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• | changes in fiscal year; | |
• | restrictive agreements with subsidiaries; | |
• | transactions with affiliates; | |
• | amendments or prepayments of subordinated indebtedness; and | |
• | speculative hedging agreements. |
• | delivery of financial and other information to the administrative agent; | |
• | notice to the administrative agent upon the occurrence of certain events of default, litigation and other material events; | |
• | conduct of business and maintenance of existence; | |
• | payment of material taxes and other governmental charges; | |
• | maintenance of properties, licenses and insurance; | |
• | access to books and records by the lenders; | |
• | compliance with applicable laws and regulations; and |
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• | further assurances and maintenance of collateral. |
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Redemption Period | Price | |||
2009 | 105.8750 | % | ||
2010 | 102.9375 | % | ||
2011 and thereafter | 100.0 | % |
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• | incur additional indebtedness; | |
• | sell assets, including capital stock of restricted subsidiaries; | |
• | agree to payment restrictions affecting SS&C’s restricted subsidiaries; | |
• | pay dividends; | |
• | make certain investments; | |
• | consolidate, merge, sell or otherwise dispose of all or substantially all of SS&C’s assets; | |
• | enter into transactions with SS&C’s affiliates; | |
• | incur liens; and | |
• | designate any of SS&C’s subsidiaries as unrestricted subsidiaries. |
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Shares Eligible | ||||||
Comment | ||||||
Date of Prospectus | Shares sold in the offering | |||||
90 Days after Date of Prospectus | Shares saleable under Rules 144 and 701 that are not subject to a lock-up | |||||
180 Days after Date of Prospectus | Lock-up released; shares saleable under Rules 144 and 701 | |||||
• | offer, pledge, sell, contract to sell, sell any option or contract to purchase, purchase any option or contract to sell, grant any option, right or warrant to purchase, lend or otherwise transfer or dispose of, directly or indirectly, any shares of our common stock or any securities convertible into or exercisable or exchangeable for common stock; or | |
• | enter into any swap or other arrangement that transfers to another, in whole or in part, any of the economic consequences of ownership of our common stock, |
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• | 1% of the number of shares of our common stock then outstanding, which will equal approximately shares immediately after this offering; or | |
• | the average weekly trading volume in our common stock on the NASDAQ Global Market during the four calendar weeks preceding the filing of a notice on Form 144 with respect to such sale. |
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• | an individual who is a citizen or resident of the United States; | |
• | a corporation or any other organization taxable as a corporation for U.S. federal income tax purposes, created or organized in the United States or under the laws of the United States or of any state thereof or the District of Columbia; | |
• | an estate, the income of which is included in gross income for U.S. federal income tax purposes regardless of its source; or | |
• | a trust if (1) a U.S. court is able to exercise primary supervision over the trust’s administration and one or more U.S. persons have the authority to control all of the trust’s substantial decisions or (2) the trust has a valid election in effect under applicable U.S. Treasury Regulations to be treated as a U.S. person. |
• | insurance companies; | |
• | tax-exempt organizations; | |
• | financial institutions; | |
• | brokers or dealers in securities; | |
• | regulated investment companies; | |
• | pension plans; |
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• | controlled foreign corporations; | |
• | passive foreign investment companies; | |
• | owners that hold our common stock as part of a straddle, hedge, conversion transaction, synthetic security or other integrated investment; and | |
• | certain U.S. expatriates. |
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• | the gain is effectively connected with a U.S. trade or business and, if an applicable income tax treaty so provides, is attributable to a permanent establishment or a fixed base maintained by suchnon-U.S. holder, in which case thenon-U.S. holder generally will be taxed at the graduated U.S. federal income tax rates applicable to U.S. persons (as defined in the Code) and, if thenon-U.S. holder is a foreign corporation, the branch profits tax described above in “Distributions on Our Common Stock” also may apply; | |
• | thenon-U.S. holder is a nonresident alien individual who is present in the United States for 183 days or more in the taxable year of the disposition and certain other conditions are met, in which case thenon-U.S. holder will be subject to a 30% tax (or such lower rate as may be specified by an applicable |
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income tax treaty between the United States and such holder’s country of residence) on the net gain derived from the disposition, which may be offset by U.S. source capital losses of thenon-U.S. holder, if any; or |
• | we are or have been, at any time during the five-year period preceding such disposition (or thenon-U.S. holder’s holding period, if shorter) a “U.S. real property holding corporation” unless our common stock is regularly traded on an established securities market and thenon-U.S. holder holds no more than 5% of our outstanding common stock, directly or indirectly during the shorter of the5-year period ending on the date of the disposition or the period that thenon-U.S. holder held our common stock. If we are determined to be a U.S. real property holding corporation and the foregoing exception does not apply, then a purchaser may withhold 10% of the proceeds payable to anon-U.S. holder from a sale of our common stock and thenon-U.S. holder generally will be taxed on its net gain derived from the disposition at the graduated U.S. federal income tax rates applicable to U.S. persons (as defined in the Code). Generally, a corporation is a U.S. real property holding corporation only if the fair market value of its U.S. real property interests equals or exceeds 50% of the sum of the fair market value of its worldwide real property interests plus its other assets used or held for use in a trade or business. Although there can be no assurance, we do not believe that we are, or have been, a U.S. real property holding corporation, or that we are likely to become one in the future. No assurance can be provided that our common stock will be regularly traded on an established securities market for purposes of the rules described above. |
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Number of | ||||
Name | Shares | |||
Morgan Stanley & Co. Incorporated | ||||
Credit Suisse Securities (USA) LLC | ||||
J.P. Morgan Securities Inc. | ||||
Jefferies & Company, Inc. | ||||
Wachovia Capital Markets, LLC | ||||
Total | ||||
Total | ||||||||||||
Per Share | No Exercise | Full Exercise | ||||||||||
Public offering price | $ | $ | $ | |||||||||
Underwriting discounts and commissions to be paid by: | ||||||||||||
Us | $ | $ | $ | |||||||||
The selling stockholders | $ | $ | $ | |||||||||
Proceeds, before expenses, to us | $ | $ | $ | |||||||||
Proceeds, before expenses, to selling stockholders | $ | $ | $ |
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• | offer, pledge, sell, contract to sell, sell any option or contract to purchase, purchase any option or contract to sell, grant any option, right or warrant to purchase, lend or otherwise transfer or dispose of, directly or indirectly, any shares of our common stock or any securities convertible into or exercisable or exchangeable for common stock; or | |
• | enter into any swap or other arrangement that transfers to another, in whole or in part, any of the economic consequences of ownership of our common stock, |
• | the sale of shares to the underwriters; | |
• | transactions by any person other than us relating to shares of common stock or other securities acquired in open market transactions after the completion of the offering of the shares; | |
• | transfers of shares of common stock or any security convertible into our common stock as a bona fide gift; | |
• | transfers to family members or to trusts for the benefit of the stockholder or family members of the stockholder, in each case, for estate planning purposes; | |
• | distributions of shares of common stock or any security convertible into or exercisable for common stock to partners, members or equityholders of the stockholder; |
• | a stockholder’s entry into a written trading plan designed to comply with Rule 10b5-1 under the Securities Exchange Act of 1934, provided that no sales are made pursuant to such trading plan during the restricted period; or |
• | the exercise of an option to purchase shares of common stock granted under a stock incentive plan or stock purchase plan described in this prospectus or the acceptance of restricted stock awards from us and the disposition of shares of restricted stock to us pursuant to the terms of such plan. |
• | during the last 17 days of the180-day restricted period we issue an earnings release or a material news event relating to us occurs; or |
• | prior to the expiration of the180-day restricted period, we announce that we will release earnings results during the16-day period beginning on the last day of the180-day restricted period, |
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• | the purchaser is entitled under applicable provincial securities laws to purchase the shares without the benefit of a prospectus qualified under those securities laws, | |
• | where required by law, that the purchaser is purchasing as principal and not as agent, |
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• | the purchaser has reviewed the text above under Resale Restrictions, and | |
• | the purchaser acknowledges and consents to the provision of specified information concerning its purchase of the shares to the regulatory authority that by law is entitled to collect the information. |
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F-1
June 30, | December 31, | |||||||
2007 | 2006 | |||||||
(In thousands) | ||||||||
(Unaudited) | ||||||||
ASSETS | ||||||||
Current assets | ||||||||
Cash and cash equivalents | $ | 13,210 | $ | 11,718 | ||||
Accounts receivable, net of allowance for doubtful accounts of $1,602 and $1,670, respectively | 36,941 | 31,695 | ||||||
Prepaid expenses and other current assets | 8,185 | 7,823 | ||||||
Deferred income taxes | 283 | — | ||||||
Total current assets | 58,619 | 51,236 | ||||||
Property and equipment | ||||||||
Leasehold improvements | 2,584 | 2,850 | ||||||
Equipment, furniture, and fixtures | 15,774 | 12,168 | ||||||
18,358 | 15,018 | |||||||
Less accumulated depreciation | (7,098 | ) | (4,999 | ) | ||||
Net property and equipment | 11,260 | 10,019 | ||||||
Goodwill | 844,484 | 820,470 | ||||||
Intangible and other assets, net of accumulated amortization of $39,691 and $24,260, respectively | 263,237 | 270,796 | ||||||
Total assets | $ | 1,177,600 | $ | 1,152,521 | ||||
LIABILITIES AND STOCKHOLDERS’ EQUITY | ||||||||
Current liabilities | ||||||||
Current portion of long-term debt | $ | 2,680 | $ | 5,694 | ||||
Accounts payable | 2,374 | 2,305 | ||||||
Income taxes payable | 2,688 | 191 | ||||||
Accrued employee compensation and benefits | 4,927 | 8,961 | ||||||
Other accrued expenses | 7,139 | 7,157 | ||||||
Interest payable | 2,130 | 2,177 | ||||||
Deferred income taxes | — | 384 | ||||||
Deferred maintenance and other revenue | 33,421 | 25,679 | ||||||
Total current liabilities | 55,359 | 52,548 | ||||||
Long-term debt, net of current portion | 461,077 | 466,235 | ||||||
Other long-term liabilities | 6,114 | 1,088 | ||||||
Deferred income taxes | 68,328 | 69,518 | ||||||
Total liabilities | 590,878 | 589,389 | ||||||
Commitments and contingencies (Note 8) | ||||||||
Stockholders’ equity | ||||||||
Common stock | 71 | 71 | ||||||
Additional paid-in capital | 564,064 | 559,524 | ||||||
Accumulated other comprehensive income | 21,989 | 1,699 | ||||||
Retained earnings | 674 | 1,906 | ||||||
586,798 | 563,200 | |||||||
Less: cost of common stock in treasury | (76 | ) | (68 | ) | ||||
Total stockholders’ equity | 586,722 | 563,132 | ||||||
Total liabilities and stockholders’ equity | $ | 1,177,600 | $ | 1,152,521 | ||||
F-2
Six Months Ended | ||||||||
June 30, | June 30, | |||||||
2007 | 2006 | |||||||
(In thousands, except | ||||||||
per share data) | ||||||||
(Unaudited) | ||||||||
Revenues: | ||||||||
Software licenses | $ | 11,494 | $ | 10,362 | ||||
Maintenance | 30,233 | 26,348 | ||||||
Professional services | 9,043 | 10,128 | ||||||
Software-enabled services | 65,472 | 52,182 | ||||||
Total revenues | 116,242 | 99,020 | ||||||
Cost of revenues: | ||||||||
Software licenses | 4,781 | 4,548 | ||||||
Maintenance | 13,108 | 9,863 | ||||||
Professional services | 7,022 | 6,293 | ||||||
Software-enabled services | 36,839 | 27,097 | ||||||
Total cost of revenues | 61,750 | 47,801 | ||||||
Gross profit | 54,492 | 51,219 | ||||||
Operating expenses: | ||||||||
Selling and marketing | 9,283 | 7,895 | ||||||
Research and development | 13,037 | 11,804 | ||||||
General and administrative | 11,527 | 8,753 | ||||||
Total operating expenses | 33,847 | 28,452 | ||||||
Operating income | 20,645 | 22,767 | ||||||
Interest expense, net | (22,555 | ) | (23,273 | ) | ||||
Other income, net | 580 | 827 | ||||||
(Loss) income before income taxes | (1,330 | ) | 321 | |||||
Benefit for income taxes | (98 | ) | (1,240 | ) | ||||
Net (loss) income | $ | (1,232 | ) | $ | 1,561 | |||
Basic earnings (loss) per share | $ | (0.17 | ) | $ | 0.22 | |||
Basic weighted average number of common shares outstanding | 7,088 | 7,077 | ||||||
Diluted earnings (loss) per share | $ | (0.17 | ) | $ | 0.21 | |||
Diluted weighted average number of common and common equivalent shares outstanding | 7,088 | 7,314 | ||||||
F-3
Six Months Ended | ||||||||
June 30, | June 30, | |||||||
2007 | 2006 | |||||||
(In thousands) (Unaudited) | ||||||||
Cash flow from operating activities: | ||||||||
Net (loss) income | $ | (1,232 | ) | $ | 1,561 | |||
Adjustments to reconcile net income to net cash provided by operating activities: | ||||||||
Depreciation and amortization | 17,213 | 13,372 | ||||||
Foreign exchange gains on debt | (754 | ) | (682 | ) | ||||
Amortization of loan origination costs | 1,145 | 1,265 | ||||||
Equity earnings on long-term investment | — | (72 | ) | |||||
Gain (loss) on sale or disposal of property and equipment | 53 | (1 | ) | |||||
Deferred income taxes | (3,716 | ) | (1,927 | ) | ||||
Stock-based compensation expense | 4,540 | — | ||||||
Provision for doubtful accounts | 408 | 187 | ||||||
Changes in operating assets and liabilities, excluding effects from acquisitions: | ||||||||
Accounts receivable | (4,394 | ) | 1,173 | |||||
Prepaid expenses and other assets | (131 | ) | (1,149 | ) | ||||
Income taxes receivable | — | 3,948 | ||||||
Accounts payable | (30 | ) | (45 | ) | ||||
Accrued expenses | 430 | (7,546 | ) | |||||
Income taxes payable | 2,146 | (247 | ) | |||||
Deferred maintenance and other revenues | 7,070 | 6,964 | ||||||
Net cash provided by operating activities | 22,748 | 16,801 | ||||||
Cash flow from investing activities: | ||||||||
Additions to property and equipment | (3,434 | ) | (1,944 | ) | ||||
Proceeds from sale of property and equipment | — | 2 | ||||||
Cash paid for business acquisitions, net of cash acquired | (5,136 | ) | (11,500 | ) | ||||
Cash paid for long-term investment | (200 | ) | — | |||||
Net cash used in investing activities | (8,770 | ) | (13,442 | ) | ||||
Cash flow from financing activities: | ||||||||
Cash received from borrowings | 5,200 | 13,400 | ||||||
Repayment of debt | (18,070 | ) | (18,171 | ) | ||||
Income tax benefit related to exercise of stock options | 82 | — | ||||||
Exercise of options | — | 72 | ||||||
Purchase of common stock for treasury | (8 | ) | — | |||||
Net cash used in financing activities | (12,796 | ) | (4,699 | ) | ||||
Effect of exchange rate changes on cash | 310 | 314 | ||||||
Net increase (decrease) in cash and cash equivalents | 1,492 | (1,026 | ) | |||||
Cash and cash equivalents, beginning of period | 11,718 | 15,584 | ||||||
Cash and cash equivalents, end of period | $ | 13,210 | $ | 14,558 | ||||
F-4
F-5
Fair Value of | Intrinsic Value at | |||||||||||||||
Grant Date | Shares | Exercise Price | Underlying Stock | Time of Grant | ||||||||||||
March 2007 | 23,000 | $ | 74.50 | $ | 74.50 | — | ||||||||||
May 2007 | 17,500 | 98.91 | 98.91 | — | ||||||||||||
June 2007 | 3,000 | 98.91 | 98.91 | — |
F-6
Six Months | ||||
Ended | ||||
June 30, 2007 | ||||
Statements of operations classification: | ||||
Cost of maintenance | $ | 101 | ||
Cost of professional services | 146 | |||
Cost of software-enabled services | 979 | |||
Total cost of revenues | 1,226 | |||
Selling and marketing | 740 | |||
Research and development | 471 | |||
General and administrative | 2,103 | |||
Total operating expenses | 3,314 | |||
�� | ||||
Total stock-based compensation expense | $ | 4,540 | ||
Six Months Ended | ||||||||
June 30, | June 30, | |||||||
2007 | 2006 | |||||||
Net (loss) income | $ | (1,232 | ) | $ | 1,561 | |||
Foreign currency translation gains | 19,242 | 8,040 | ||||||
Unrealized gains on interest rate swaps, net of tax | 1,048 | 2,743 | ||||||
Total comprehensive income | $ | 19,058 | $ | 12,344 | ||||
F-7
June 30, | December 31, | |||||||
2007 | 2006 | |||||||
Senior credit facility, revolving portion, weighted-average interest rate of 8.10% | $ | — | $ | 3,000 | ||||
Senior credit facility, term loan portion, weighted-average interest rate of 7.36% and 7.73%, respectively | 258,757 | 263,929 | ||||||
113/4% senior subordinated notes due 2013 | 205,000 | 205,000 | ||||||
463,757 | 471,929 | |||||||
Short-term borrowings and current portion of long-term debt | (2,680 | ) | (5,694 | ) | ||||
Long-term debt | $ | 461,077 | $ | 466,235 | ||||
Tangible assets acquired, net of cash received | $ | 714 | ||
Acquired client relationships and contracts | 1,500 | |||
Goodwill | 3,303 | |||
Deferred revenue | (350 | ) | ||
Other liabilities assumed | (34 | ) | ||
Consideration paid, net of cash received | $ | 5,133 | ||
F-8
F-9
Six Months Ended | ||||||||
June 30, | June 30, | |||||||
2007 | 2006 | |||||||
United States | $ | 70,970 | $ | 58,801 | ||||
Canada | 18,575 | 16,923 | ||||||
Americas excluding United States and Canada | 1,718 | 1,882 | ||||||
Europe | 22,584 | 19,465 | ||||||
Asia Pacific and Japan | 2,395 | 1,949 | ||||||
$ | 116,242 | $ | 99,020 | |||||
F-10
Six Months Ended | ||||||||
June 30, | June 30, | |||||||
2007 | 2006 | |||||||
Portfolio management/accounting | $ | 90,974 | $ | 73,012 | ||||
Trading/treasury operations | 13,069 | 14,383 | ||||||
Financial modeling | 4,363 | 4,714 | ||||||
Loan management/accounting | 2,056 | 2,207 | ||||||
Property management | 2,617 | 2,841 | ||||||
Money market processing | 2,159 | 1,863 | ||||||
Training | 1,004 | — | ||||||
$ | 116,242 | $ | 99,020 | |||||
F-11
Six Months Ended | ||||||||
June 30, | June 30, | |||||||
2007 | 2006 | |||||||
Weighted average common shares outstanding — used in calculation of basic earnings per share | 7,088 | 7,077 | ||||||
Weighted average common stock equivalents — options | — | 237 | ||||||
Weighted average common and common equivalent shares outstanding — used in calculation of diluted earnings per share | 7,088 | 7,314 | ||||||
F-12
F-13F-2
Successor | ||||||||
December 31, | December 31, | |||||||
2007 | 2006 | |||||||
(In thousands, | ||||||||
except per share data) | ||||||||
ASSETS | ||||||||
Current assets: | ||||||||
Cash and cash equivalents | $ | 19,175 | $ | 11,718 | ||||
Accounts receivable, net of allowance for doubtful accounts of $1,248 and $1,670, respectively (Note 3) | 39,546 | 31,695 | ||||||
Prepaid expenses and other current assets | 9,585 | 7,823 | ||||||
Deferred income taxes | 1,169 | — | ||||||
Total current assets | 69,475 | 51,236 | ||||||
Property and equipment: | ||||||||
Leasehold improvements | 4,522 | 2,850 | ||||||
Equipment, furniture, and fixtures | 17,532 | 12,168 | ||||||
22,054 | 15,018 | |||||||
Less accumulated depreciation | (9,014 | ) | (4,999 | ) | ||||
Net property and equipment | 13,040 | 10,019 | ||||||
Goodwill | 860,690 | 820,470 | ||||||
Intangible and other assets, net of accumulated amortization of $55,572 and $24,260, respectively | 247,290 | 270,796 | ||||||
Total assets | $ | 1,190,495 | $ | 1,152,521 | ||||
LIABILITIES AND STOCKHOLDERS’ EQUITY | ||||||||
Current liabilities: | ||||||||
Current portion of long-term debt (Note 6) | $ | 2,429 | $ | 5,694 | ||||
Accounts payable | 2,558 | 2,305 | ||||||
Income taxes payable | 3,181 | 191 | ||||||
Accrued employee compensation and benefits | 11,668 | 8,961 | ||||||
Other accrued expenses | 10,053 | 7,157 | ||||||
Interest payable | 2,090 | 2,177 | ||||||
Deferred income taxes (Note 5) | — | 384 | ||||||
Deferred maintenance and other revenue | 29,480 | 25,679 | ||||||
Total current liabilities | 61,459 | 52,548 | ||||||
Long-term debt, net of current portion (Note 6) | 440,580 | 466,235 | ||||||
Other long-term liabilities | 10,216 | 1,088 | ||||||
Deferred income taxes (Note 5) | 65,647 | 69,518 | ||||||
Total liabilities | 577,902 | 589,389 | ||||||
Commitments and contingencies | ||||||||
Stockholders’ equity (Notes 4 and 9): | ||||||||
Common stock, $0.01 par value, 100,000 shares authorized; 53,165 shares and 53,163 shares issued, respectively, and 53,157 shares and 53,156 shares outstanding, respectively | 532 | 532 | ||||||
Additional paid-in capital | 570,043 | 559,063 | ||||||
Accumulated other comprehensive income | 33,615 | 1,699 | ||||||
Retained earnings | 8,481 | 1,906 | ||||||
612,671 | 563,200 | |||||||
Less: cost of common stock in treasury, 8 shares and 7 shares, respectively | (78 | ) | (68 | ) | ||||
Total stockholders’ equity | 612,593 | 563,132 | ||||||
Total liabilities and stockholders’ equity | $ | 1,190,495 | $ | 1,152,521 | ||||
F-3
(In thousands, except per share data) | ||||||||||||||||
Successor | Predecessor | |||||||||||||||
Period from | Period from | |||||||||||||||
November 23, | January 1, 2005 | |||||||||||||||
Year Ended | Year Ended | 2005 through | through | |||||||||||||
December 31, | December 31, | December 31, | November 22, | |||||||||||||
2007 | 2006 | 2005 | 2005 | |||||||||||||
Revenues: | ||||||||||||||||
Software licenses | $ | 27,514 | $ | 22,925 | $ | 3,587 | $ | 20,147 | ||||||||
Maintenance | 61,910 | 55,222 | 3,701 | 44,064 | ||||||||||||
Professional services | 17,491 | 19,582 | 2,520 | 12,565 | ||||||||||||
Software-enabled services | 141,253 | 107,740 | 7,857 | 67,193 | ||||||||||||
Total revenues | 248,168 | 205,469 | 17,665 | 143,969 | ||||||||||||
Cost of revenues: | ||||||||||||||||
Software licenses | 9,616 | 9,216 | 856 | 2,963 | ||||||||||||
Maintenance | 26,038 | 20,415 | 1,499 | 10,393 | ||||||||||||
Professional services | 14,277 | 12,575 | 861 | 7,849 | ||||||||||||
Software-enabled services | 78,951 | 57,810 | 4,411 | 37,799 | ||||||||||||
Total cost of revenues | 128,882 | 100,016 | 7,627 | 59,004 | ||||||||||||
Gross profit | 119,286 | 105,453 | 10,038 | 84,965 | ||||||||||||
Operating expenses: | ||||||||||||||||
Selling and marketing | 19,701 | 17,598 | 1,364 | 13,134 | ||||||||||||
Research and development | 26,282 | 23,620 | 2,071 | 19,199 | ||||||||||||
General and administrative | 24,573 | 20,366 | 1,140 | 11,944 | ||||||||||||
Merger costs related to the Transaction | — | — | — | 36,912 | ||||||||||||
Total operating expenses | 70,556 | 61,584 | 4,575 | 81,189 | ||||||||||||
Operating income | 48,730 | 43,869 | 5,463 | 3,776 | ||||||||||||
Interest income | 939 | 388 | 30 | 1,031 | ||||||||||||
Interest expense | (45,463 | ) | (47,427 | ) | (4,920 | ) | (2,092 | ) | ||||||||
Other income, net | 1,911 | 456 | 258 | 655 | ||||||||||||
Income (loss) before income taxes | 6,117 | (2,714 | ) | 831 | 3,370 | |||||||||||
(Benefit) provision for income taxes (Note 5) | (458 | ) | (3,789 | ) | — | 2,658 | ||||||||||
Net income | $ | 6,575 | $ | 1,075 | $ | 831 | $ | 712 | ||||||||
Basic earnings per share | $ | 0.12 | $ | 0.02 | $ | 0.02 | $ | 0.03 | ||||||||
Basic weighted average number of common shares outstanding | 53,157 | 53,093 | 53,063 | 23,300 | ||||||||||||
Diluted earnings per share | $ | 0.12 | $ | 0.02 | $ | 0.02 | $ | 0.03 | ||||||||
Diluted weighted average number of common and common equivalent shares outstanding | 55,953 | 54,867 | 54,853 | 24,478 | ||||||||||||
F-4
Successor | ||||||||
December 31, | December 31, | |||||||
2006 | 2005 | |||||||
(In thousands, except per share data) | ||||||||
ASSETS | ||||||||
Current assets: | ||||||||
Cash and cash equivalents | $ | 11,718 | $ | 15,584 | ||||
Accounts receivable, net of allowance for doubtful accounts of $1,670 and $2,092, respectively (Note 3) | 31,695 | 32,862 | ||||||
Income taxes receivable | — | 8,176 | ||||||
Prepaid expenses and other current assets | 7,823 | 6,236 | ||||||
Total current assets | 51,236 | 62,858 | ||||||
Property and equipment: | ||||||||
Leasehold improvements | 2,850 | 2,422 | ||||||
Equipment, furniture, and fixtures | 12,168 | 8,298 | ||||||
15,018 | 10,720 | |||||||
Less accumulated depreciation | (4,999 | ) | (431 | ) | ||||
Net property and equipment | 10,019 | 10,289 | ||||||
Goodwill | 820,470 | 818,180 | ||||||
Intangible and other assets, net of accumulated amortization of $24,260 and $1,870, respectively | 270,796 | 285,044 | ||||||
Total assets | $ | 1,152,521 | $ | 1,176,371 | ||||
LIABILITIES AND STOCKHOLDERS’ EQUITY | ||||||||
Current liabilities: | ||||||||
Current portion of long-term debt (Note 6) | $ | 5,694 | $ | 10,438 | ||||
Accounts payable | 2,305 | 2,367 | ||||||
Income taxes payable | 191 | — | ||||||
Accrued employee compensation and benefits | 8,961 | 9,048 | ||||||
Other accrued expenses | 7,157 | 8,769 | ||||||
Interest payable | 2,177 | 3,082 | ||||||
Deferred income taxes (Note 5) | 384 | 1,305 | ||||||
Deferred maintenance and other revenue | 25,679 | 20,566 | ||||||
Total current liabilities | 52,548 | 55,575 | ||||||
Long-term debt, net of current portion (Note 6) | 466,235 | 478,143 | ||||||
Other long-term liabilities | 1,088 | 1,257 | ||||||
Deferred income taxes (Note 5) | 69,518 | 84,263 | ||||||
Total liabilities | 589,389 | 619,238 | ||||||
Commitments and contingencies | ||||||||
Stockholders’ equity (Notes 4 and 10): | ||||||||
Common stock, $0.01 par value per share, 10,000 shares authorized; 7,088 and 7,075 shares issued and outstanding, respectively | 71 | 71 | ||||||
Additional paid-in capital | 559,524 | 554,894 | ||||||
Accumulated other comprehensive income | 1,699 | 1,337 | ||||||
Retained earnings | 1,906 | 831 | ||||||
563,200 | 557,133 | |||||||
Less: cost of common stock in treasury, 1 share and 0 shares, respectively | (68 | ) | — | |||||
Total stockholders’ equity | 563,132 | 557,133 | ||||||
Total liabilities and stockholders’ equity | $ | 1,152,521 | $ | 1,176,371 | ||||
Successor | Predecessor | |||||||||||||||
Period from | ||||||||||||||||
November 23, | Period from | |||||||||||||||
2005 | January 1, | |||||||||||||||
Year Ended | Year Ended | through | 2005 | |||||||||||||
December 31, | December 31, | December 31, | through | |||||||||||||
(in thousands) | 2007 | 2006 | 2005 | November 22, 2005 | ||||||||||||
Cash flow from operating activities: | ||||||||||||||||
Net income | $ | 6,575 | $ | 1,075 | $ | 831 | $ | 712 | ||||||||
Adjustments to reconcile net income to net cash provided by operating activities: | ||||||||||||||||
Depreciation and amortization | 35,047 | 27,128 | 2,301 | 9,575 | ||||||||||||
Stock compensation expense | 10,979 | 3,871 | — | — | ||||||||||||
Foreign exchange gains on debt | (768 | ) | (15 | ) | — | — | ||||||||||
Income tax benefit related to exercise of stock options | — | — | — | 3,177 | ||||||||||||
Amortization of loan origination costs | 2,317 | 2,754 | 159 | 82 | ||||||||||||
Equity losses (earnings) in long-term investment | 187 | (456 | ) | — | — | |||||||||||
Net realized gains on marketable securities | — | — | — | (641 | ) | |||||||||||
Loss (gain) on sale or disposition of property and equipment | 105 | 4 | (15 | ) | 15 | |||||||||||
Deferred income taxes | (6,115 | ) | (10,112 | ) | (1,107 | ) | (337 | ) | ||||||||
Provision for doubtful accounts | 336 | 424 | 41 | 945 | ||||||||||||
Changes in operating assets and liabilities, excluding effects from acquisitions: | ||||||||||||||||
Accounts receivable | (6,635 | ) | 2,509 | (395 | ) | (5,442 | ) | |||||||||
Prepaid expenses and other assets | (1,723 | ) | (2,044 | ) | (798 | ) | (1,287 | ) | ||||||||
Income taxes receivable | — | 7,844 | 654 | (8,286 | ) | |||||||||||
Accounts payable | 101 | (114 | ) | (801 | ) | 240 | ||||||||||
Accrued expenses | 10,745 | (3,088 | ) | 4,178 | 34,891 | |||||||||||
Income taxes payable | 2,790 | (247 | ) | (3 | ) | (619 | ) | |||||||||
Deferred maintenance and other revenue | 3,116 | 1,176 | (130 | ) | (909 | ) | ||||||||||
Net cash provided by operating activities | 57,057 | 30,709 | 4,915 | 32,116 | ||||||||||||
Cash flow from investing activities: | ||||||||||||||||
Additions to property and equipment | (7,717 | ) | (4,223 | ) | (276 | ) | (2,488 | ) | ||||||||
Proceeds from sale of property and equipment | 8 | 1 | 15 | 3 | ||||||||||||
Cash paid for business acquisitions, net of cash acquired (Note 10) | (5,130 | ) | (13,979 | ) | — | (207,919 | ) | |||||||||
Additions to capitalized software | — | (425 | ) | — | — | |||||||||||
Acquisition of SS&C Technologies, Inc. | — | — | (877,000 | ) | — | |||||||||||
Purchase of long-term investment | — | — | — | (2,000 | ) | |||||||||||
Purchases of marketable securities | — | — | — | (88,250 | ) | |||||||||||
Sales of marketable securities | — | — | — | 190,159 | ||||||||||||
Net cash used in investing activities | (12,839 | ) | (18,626 | ) | (877,261 | ) | (110,495 | ) | ||||||||
Cash flow from financing activities: | ||||||||||||||||
Cash received from other borrowings | 5,200 | 17,400 | — | 83,000 | ||||||||||||
Repayment of debt and acquired debt | (42,688 | ) | (34,518 | ) | (2,345 | ) | (8,016 | ) | ||||||||
Issuance of common stock | — | 663 | — | 930 | ||||||||||||
Exercise of options | 1 | 96 | — | 2,549 | ||||||||||||
Income tax benefit related to exercise of stock options | 89 | — | — | — | ||||||||||||
Purchase of common stock for treasury | (10 | ) | (68 | ) | — | (5,584 | ) | |||||||||
Cash received from borrowings for the Transaction | — | — | 490,000 | — | ||||||||||||
Initial capital contributions | — | — | 381,000 | — | ||||||||||||
Common stock dividends | — | — | — | (3,718 | ) | |||||||||||
Net cash (used in) provided by financing activities | (37,408 | ) | (16,427 | ) | 868,655 | 69,161 | ||||||||||
Effect of exchange rate changes on cash | 647 | 478 | 26 | (446 | ) | |||||||||||
Net increase (decrease) in cash and cash equivalents | 7,457 | (3,866 | ) | (3,665 | ) | (9,664 | ) | |||||||||
Cash and cash equivalents, beginning of period | 11,718 | 15,584 | 19,249 | 28,913 | ||||||||||||
Cash and cash equivalents, end of period | $ | 19,175 | $ | 11,718 | $ | 15,584 | $ | 19,249 | ||||||||
Supplemental disclosure of cash paid (refunded) for: | ||||||||||||||||
Interest | $ | 43,451 | $ | 45,549 | $ | 3,491 | $ | 1,384 | ||||||||
Income taxes, net | $ | (1,627 | ) | $ | (635 | ) | $ | 407 | $ | 7,441 | ||||||
Supplemental disclosure of non-cash investing activities See Note 10 for a discussion of acquisitions |
F-14F-5
Successor | Predecessor | ||||||||||||||||
Period from | Period from | ||||||||||||||||
November 23, | January 1, | ||||||||||||||||
Year Ended | 2005 through | 2005 through | Year Ended | ||||||||||||||
December 31, | December 31, | November 22, | December 31, | ||||||||||||||
2006 | 2005 | 2005 | 2004 | ||||||||||||||
(In thousands, except per share data) | |||||||||||||||||
Revenues: | |||||||||||||||||
Software licenses | $ | 22,925 | $ | 3,587 | $ | 20,147 | $ | 17,250 | |||||||||
Maintenance | 55,222 | 3,701 | 44,064 | 36,433 | |||||||||||||
Professional services | 19,582 | 2,520 | 12,565 | 11,320 | |||||||||||||
Software-enabled services | 107,740 | 7,857 | 67,193 | 30,885 | |||||||||||||
Total revenues | 205,469 | 17,665 | 143,969 | 95,888 | |||||||||||||
Cost of revenues: | |||||||||||||||||
Software licenses | 9,216 | 856 | 2,963 | 2,258 | |||||||||||||
Maintenance | 20,415 | 1,499 | 10,393 | 8,462 | |||||||||||||
Professional services | 12,575 | 861 | 7,849 | 6,606 | |||||||||||||
Software-enables services | 57,810 | 4,411 | 37,799 | 16,444 | |||||||||||||
Total cost of revenues | 100,016 | 7,627 | 59,004 | 33,770 | |||||||||||||
Gross profit | 105,453 | 10,038 | 84,965 | 62,118 | |||||||||||||
Operating expenses: | |||||||||||||||||
Selling and marketing | 17,598 | 1,364 | 13,134 | 10,734 | |||||||||||||
Research and development | 23,620 | 2,071 | 19,199 | 13,957 | |||||||||||||
General and administrative | 20,366 | 1,140 | 11,944 | 8,014 | |||||||||||||
Merger costs related to the Transaction | — | — | 36,912 | — | |||||||||||||
Total operating expenses | 61,584 | 4,575 | 81,189 | 32,705 | |||||||||||||
Operating income | 43,869 | 5,463 | 3,776 | 29,413 | |||||||||||||
Interest income | 388 | 30 | 1,031 | 1,528 | |||||||||||||
Interest expense | (47,427 | ) | (4,920 | ) | (2,092 | ) | — | ||||||||||
Other income, net | 456 | 258 | 655 | 99 | |||||||||||||
(Loss) income before income taxes | (2,714 | ) | 831 | 3,370 | 31,040 | ||||||||||||
(Benefit) provision for income taxes (Note 5) | (3,789 | ) | — | 2,658 | 12,030 | ||||||||||||
Net income | $ | 1,075 | $ | 831 | $ | 712 | $ | 19,010 | |||||||||
Basic earnings per share | $ | 0.15 | $ | 0.12 | $ | 0.03 | $ | 0.90 | |||||||||
Basic weighted average number of common shares outstanding | 7,079 | 7,075 | 23,300 | 21,185 | |||||||||||||
Diluted earnings per share | $ | 0.15 | $ | 0.11 | $ | 0.03 | $ | 0.84 | |||||||||
Diluted weighted average number of common and common equivalent shares outstanding | 7,316 | 7,314 | 24,478 | 22,499 | |||||||||||||
Common Stock | Accumulated | |||||||||||||||||||||||||||||||
Number | Additional | Other | Total | Total | ||||||||||||||||||||||||||||
of Issued | Paid-in | Retained | Comprehensive | Treasury | Stockholders’ | Comprehensive | ||||||||||||||||||||||||||
Shares | Amount | Capital | Earnings | Income | Stock | Equity | Income | |||||||||||||||||||||||||
(In thousands, except per share amounts) | ||||||||||||||||||||||||||||||||
Predecessor | ||||||||||||||||||||||||||||||||
Balance, at December 31, 2004 | 31,276 | $ | 313 | $ | 185,032 | $ | 23,029 | $ | 1,140 | $ | (53,420 | ) | $ | 156,094 | ||||||||||||||||||
Net income | — | — | — | 712 | — | — | 712 | $ | 712 | |||||||||||||||||||||||
Foreign exchange translation adjustment | — | — | — | — | 7,215 | — | 7,215 | 7,215 | ||||||||||||||||||||||||
Change in unrealized gain on investments, net of tax | — | — | — | — | (654 | ) | — | (654 | ) | (654 | ) | |||||||||||||||||||||
Total comprehensive income | $ | 7,273 | ||||||||||||||||||||||||||||||
Exercise of options | 390 | 4 | 2,545 | — | — | — | 2,549 | |||||||||||||||||||||||||
Issuance of common stock | 406 | 4 | 10,220 | — | — | — | 10,224 | |||||||||||||||||||||||||
Issuance of warrants | — | — | 691 | — | — | — | 691 | |||||||||||||||||||||||||
Purchase of common stock | — | — | — | — | — | (5,584 | ) | (5,584 | ) | |||||||||||||||||||||||
Cash dividends declared — $0.08 per share | — | — | — | (1,868 | ) | — | — | (1,868 | ) | |||||||||||||||||||||||
Income tax benefit related to exercise of stock options | — | — | 3,177 | — | — | — | 3,177 | |||||||||||||||||||||||||
Balance, at November 22, 2005 | 32,072 | $ | 321 | $ | 201,665 | $ | 21,873 | $ | 7,701 | $ | (59,004 | ) | $ | 172,556 | ||||||||||||||||||
Successor | ||||||||||||||||||||||||||||||||
Initial capital contributions | 53,063 | $ | 531 | $ | 554,434 | $ | — | $ | — | $ | — | $ | 554,965 | |||||||||||||||||||
Net income | — | — | — | 831 | — | — | 831 | $ | 831 | |||||||||||||||||||||||
Foreign exchange translation adjustment | — | — | — | — | 1,232 | — | 1,232 | 1,232 | ||||||||||||||||||||||||
Change in unrealized gain on interest rate swaps, net of tax | — | — | — | — | 105 | — | 105 | 105 | ||||||||||||||||||||||||
Total comprehensive income | $ | 2,168 | ||||||||||||||||||||||||||||||
Balance, at December 31, 2005 | 53,063 | $ | 531 | $ | 554,434 | $ | 831 | $ | 1,337 | $ | — | $ | 557,133 | |||||||||||||||||||
Net income | — | — | — | 1,075 | — | — | 1,075 | $ | 1,075 | |||||||||||||||||||||||
Foreign exchange translation adjustment | — | — | — | — | (273 | ) | — | (273 | ) | (273 | ) | |||||||||||||||||||||
Change in unrealized gain on interest rate swaps, net of tax | — | — | — | — | 635 | — | 635 | 635 | ||||||||||||||||||||||||
Total comprehensive income | $ | 1,437 | ||||||||||||||||||||||||||||||
Stock-based compensation expense | — | — | 3,871 | — | — | — | 3,871 | |||||||||||||||||||||||||
Issuance of common stock | 67 | 1 | 662 | — | — | — | 663 | |||||||||||||||||||||||||
Exercise of options | 33 | — | 96 | — | — | — | 96 | |||||||||||||||||||||||||
Purchase of common stock | — | — | — | — | — | (68 | ) | (68 | ) | |||||||||||||||||||||||
Balance, at December 31, 2006 | 53,163 | $ | 532 | $ | 559,063 | $ | 1,906 | $ | 1,699 | $ | (68 | ) | $ | 563,132 | ||||||||||||||||||
Net income | — | — | — | 6,575 | — | — | 6,575 | $ | 6,575 | |||||||||||||||||||||||
Foreign exchange translation adjustment | — | — | — | — | 34,490 | — | 34,490 | 34,490 | ||||||||||||||||||||||||
Change in unrealized gain on interest rate swaps, net of tax | — | — | — | — | (2,574 | ) | — | (2,574 | ) | (2,574 | ) | |||||||||||||||||||||
Total comprehensive income | $ | 38,491 | ||||||||||||||||||||||||||||||
Stock-based compensation expense | — | — | 10,979 | — | — | — | 10,979 | |||||||||||||||||||||||||
Exercise of options | 2 | — | 1 | — | — | — | 1 | |||||||||||||||||||||||||
Purchase of common stock | — | — | — | — | — | (10 | ) | (10 | ) | |||||||||||||||||||||||
Balance, at December 31, 2007 | 53,165 | $ | 532 | $ | 570,043 | $ | 8,481 | $ | 33,615 | $ | (78 | ) | $ | 612,593 | ||||||||||||||||||
F-15F-6
Successor | Predecessor | ||||||||||||||||
Period from | Period from | ||||||||||||||||
November 23, | January 1, | ||||||||||||||||
Year Ended | 2005 through | 2005 through | Year Ended | ||||||||||||||
December 31, | December 31, | November 22, | December 31, | ||||||||||||||
2006 | 2005 | 2005 | 2004 | ||||||||||||||
(In thousands) | |||||||||||||||||
Cash flow from operating activities: | |||||||||||||||||
Net income | $ | 1,075 | $ | 831 | $ | 712 | $ | 19,010 | |||||||||
Adjustments to reconcile net income to net cash provided by operating activities: | |||||||||||||||||
Depreciation and amortization | 27,128 | 2,301 | 9,575 | 4,593 | |||||||||||||
Stock compensation expense | 3,871 | — | — | — | |||||||||||||
Foreign exchange gains on debt | (15 | ) | — | — | — | ||||||||||||
Amortization of loan origination costs | 2,754 | 159 | 82 | — | |||||||||||||
Equity earnings in long-term investment | (456 | ) | — | — | — | ||||||||||||
Net realized (gains) losses on equity investments | — | — | (641 | ) | 26 | ||||||||||||
Loss (gain) on sale or disposition of property and equipment | 4 | (15 | ) | 15 | (7 | ) | |||||||||||
Deferred income taxes | (10,112 | ) | (1,107 | ) | (337 | ) | 1,134 | ||||||||||
Provision for doubtful accounts | 424 | 41 | 945 | (378 | ) | ||||||||||||
Income tax benefit related to exercise of stock options | — | — | 3,177 | 2,720 | |||||||||||||
Changes in operating assets and liabilities, excluding effects from acquisitions: | |||||||||||||||||
Accounts receivable | 2,509 | (395 | ) | (5,442 | ) | 1,664 | |||||||||||
Prepaid expenses and other assets | (2,044 | ) | (798 | ) | (1,287 | ) | 271 | ||||||||||
Income taxes receivable | 7,844 | 654 | (8,286 | ) | — | ||||||||||||
Accounts payable | (114 | ) | (801 | ) | 240 | (340 | ) | ||||||||||
Accrued expenses | (3,088 | ) | 4,178 | 34,891 | 2,596 | ||||||||||||
Income taxes payable | (247 | ) | (3 | ) | (619 | ) | 521 | ||||||||||
Deferred maintenance and other revenue | 1,176 | (130 | ) | (909 | ) | (3,286 | ) | ||||||||||
Net cash provided by operating activities | 30,709 | 4,915 | 32,116 | 28,524 | |||||||||||||
Cash flow from investing activities: | |||||||||||||||||
Additions to property and equipment | (4,223 | ) | (276 | ) | (2,488 | ) | (1,345 | ) | |||||||||
Proceeds from sale of property and equipment | 1 | 15 | 3 | 7 | |||||||||||||
Cash paid for business acquisitions, net of cash acquired (Note 11) | (13,979 | ) | — | (207,919 | ) | (23,541 | ) | ||||||||||
Additions to capitalized software | (425 | ) | — | — | — | ||||||||||||
Acquisition of SS&C Technologies, Inc. | — | (877,000 | ) | — | — | ||||||||||||
Purchase of long-term investment | — | — | (2,000 | ) | — | ||||||||||||
Purchases of marketable securities | — | — | (88,250 | ) | (165,556 | ) | |||||||||||
Sales of marketable securities | — | — | 190,159 | 101,215 | |||||||||||||
Net cash used in investing activities | (18,626 | ) | (877,261 | ) | (110,495 | ) | (89,220 | ) | |||||||||
Cash flow from financing activities: | |||||||||||||||||
Cash received from other borrowings | 17,400 | — | 83,000 | — | |||||||||||||
Repayment of debt and acquired debt | (34,518 | ) | (2,345 | ) | (8,016 | ) | — | ||||||||||
Issuance of common stock | 663 | — | 930 | 74,795 | |||||||||||||
Exercise of options | 96 | — | 2,549 | 2,203 | |||||||||||||
Purchase of common stock for treasury | (68 | ) | — | (5,584 | ) | — | |||||||||||
Cash received from borrowings for the Transaction | — | 490,000 | — | — | |||||||||||||
Initial capital contributions | — | 381,000 | — | — | |||||||||||||
Common stock dividends | — | — | (3,718 | ) | (2,924 | ) | |||||||||||
Net cash (used in) provided by financing activities | (16,427 | ) | 868,655 | 69,161 | 74,074 | ||||||||||||
Effect of exchange rate changes on cash | 478 | 26 | (446 | ) | 274 | ||||||||||||
Net (decrease) increase in cash and cash equivalents | (3,866 | ) | (3,665 | ) | (9,664 | ) | 13,652 | ||||||||||
Cash and cash equivalents, beginning of period | 15,584 | 19,249 | 28,913 | 15,261 | |||||||||||||
Cash and cash equivalents, end of period | $ | 11,718 | $ | 15,584 | $ | 19,249 | $ | 28,913 | |||||||||
Supplemental disclosure of cash flow information | |||||||||||||||||
Interest paid | $ | 45,094 | $ | 2,702 | $ | 1,872 | $ | 9 | |||||||||
Income tax refunds, net of payments | $ | (635 | ) | $ | — | $ | — | $ | — | ||||||||
Income taxes paid, net of refunds | $ | — | $ | 407 | $ | 7,441 | $ | 7,713 | |||||||||
Supplemental disclosure of non-cash investing activities | |||||||||||||||||
See Note 11 for a discussion of acquisitions. | |||||||||||||||||
Supplemental disclosure of non-cash financing activities | |||||||||||||||||
Dividends declared but not paid | — | — | — | $ | 1,850 | ||||||||||||
F-16
Common Stock | Accumulated | |||||||||||||||||||||||||||||||
Number | Additional | Other | Total | Total | ||||||||||||||||||||||||||||
of Issued | Paid-in | Retained | Comprehensive | Treasury | Stockholders’ | Comprehensive | ||||||||||||||||||||||||||
Shares | Amount | Capital | Earnings | Income | Stock | Equity | Income | |||||||||||||||||||||||||
(In thousands, except per share amounts) | ||||||||||||||||||||||||||||||||
Predecessor | ||||||||||||||||||||||||||||||||
Balance, at December 31, 2003 | 26,806 | $ | 268 | $ | 105,359 | $ | 8,793 | $ | 588 | $ | (53,420 | ) | $ | 61,588 | ||||||||||||||||||
Net income | — | — | — | 19,010 | — | — | 19,010 | $ | 19,010 | |||||||||||||||||||||||
Foreign exchange translation adjustment | — | — | — | — | 263 | — | 263 | 263 | ||||||||||||||||||||||||
Change in unrealized gain on investments, net of tax | — | — | — | — | 289 | — | 289 | 289 | ||||||||||||||||||||||||
Total comprehensive income | $ | 19,562 | ||||||||||||||||||||||||||||||
Exercise of options | 391 | 4 | 2,199 | — | — | — | 2,203 | |||||||||||||||||||||||||
Issuance of common stock | 4,079 | 41 | 74,754 | — | — | — | 74,795 | |||||||||||||||||||||||||
Cash dividends declared — $0.22 per share | — | — | — | (4,774 | ) | — | — | (4,774 | ) | |||||||||||||||||||||||
Income tax benefit related to exercise of stock options | — | — | 2,720 | — | — | — | 2,720 | |||||||||||||||||||||||||
Balance, at December 31, 2004 | 31,276 | $ | 313 | $ | 185,032 | $ | 23,029 | $ | 1,140 | $ | (53,420 | ) | $ | 156,094 | ||||||||||||||||||
Net income | — | — | — | 712 | — | — | 712 | $ | 712 | |||||||||||||||||||||||
Foreign exchange translation adjustment | — | — | — | — | 7,215 | — | 7,215 | 7,215 | ||||||||||||||||||||||||
Change in unrealized gain on investments, net of tax | — | — | — | — | (654 | ) | — | (654 | ) | (654 | ) | |||||||||||||||||||||
Total comprehensive income | $ | 7,273 | ||||||||||||||||||||||||||||||
Exercise of options | 390 | 4 | 2,545 | — | — | — | 2,549 | |||||||||||||||||||||||||
Issuance of common stock | 406 | 4 | 10,220 | — | — | — | 10,224 | |||||||||||||||||||||||||
Issuance of warrants | — | — | 691 | — | — | — | 691 | |||||||||||||||||||||||||
Purchase of common stock | — | — | — | — | — | (5,584 | ) | (5,584 | ) | |||||||||||||||||||||||
Cash dividends declared — $0.08 per share | — | — | — | (1,868 | ) | — | — | (1,868 | ) | |||||||||||||||||||||||
Income tax benefit related to exercise of stock options | — | — | 3,177 | — | — | — | 3,177 | |||||||||||||||||||||||||
Balance, at November 22, 2005 | 32,072 | $ | 321 | $ | 201,665 | $ | 21,873 | $ | 7,701 | $ | (59,004 | ) | $ | 172,556 | ||||||||||||||||||
Successor | ||||||||||||||||||||||||||||||||
Initial capital contributions | 7,075 | $ | 71 | $ | 554,894 | $ | — | $ | — | $ | — | $ | 554,965 | |||||||||||||||||||
Net income | — | — | — | 831 | — | — | 831 | $ | 831 | |||||||||||||||||||||||
Foreign exchange translation adjustment | — | — | — | — | 1,232 | — | 1,232 | 1,232 | ||||||||||||||||||||||||
Change in unrealized gain on interest rate swaps, net of tax | — | — | — | — | 105 | — | 105 | 105 | ||||||||||||||||||||||||
Total comprehensive income | $ | 2,168 | ||||||||||||||||||||||||||||||
Balance, at December 31, 2005 | 7,075 | $ | 71 | $ | 554,894 | $ | 831 | $ | 1,337 | $ | — | $ | 557,133 | |||||||||||||||||||
Net income | — | — | — | 1,075 | — | — | 1,075 | $ | 1,075 | |||||||||||||||||||||||
Foreign exchange translation adjustment | — | — | — | — | (273 | ) | — | (273 | ) | (273 | ) | |||||||||||||||||||||
Change in unrealized gain on interest rate swaps, net of tax | — | — | — | — | 635 | — | 635 | 635 | ||||||||||||||||||||||||
Total comprehensive income | $ | 1,437 | ||||||||||||||||||||||||||||||
Stock-based compensation expense | — | — | 3,871 | — | — | — | 3,871 | |||||||||||||||||||||||||
Issuance of common stock | 9 | — | 663 | — | — | — | 663 | |||||||||||||||||||||||||
Exercise of options | 4 | — | 96 | — | — | — | 96 | |||||||||||||||||||||||||
Purchase of common stock | — | — | — | — | — | (68 | ) | (68 | ) | |||||||||||||||||||||||
Balance, at December 31, 2006 | 7,088 | $ | 71 | $ | 559,524 | $ | 1,906 | $ | 1,699 | $ | (68 | ) | $ | 563,132 | ||||||||||||||||||
F-17
1. | Organization |
Sources | Uses | |||||||||
Senior credit facilities Revolving credit facility | $ | 10,000 | Consideration paid to stockholders and optionholders | $ | 768,416 | |||||
Term loan facility | 275,000 | Repayment of existing debt and legal fees | 75,153 | |||||||
Senior subordinated notes due 2013 | 205,000 | Converted share and option consideration | 173,965 | |||||||
Cash on hand | 6,000 | Transaction costs | 33,431 | |||||||
Equity contribution — cash | 381,000 | Total uses | $ | 1,050,965 | ||||||
Equity contribution — non-cash | 173,965 | |||||||||
�� | ||||||||||
Total sources | $ | 1,050,965 | ||||||||
F-18F-7
Assets acquired, net of cash received | $ | 235,088 | ||
Completed technology | 55,700 | |||
Acquired client contracts and relationships | 197,100 | |||
Trade names | 17,200 | |||
Other intangible assets | 2,070 | |||
Goodwill | 806,587 | |||
Deferred income taxes | (79,817 | ) | ||
Debt assumed | (75,000 | ) | ||
Other liabilities assumed | (107,963 | ) | ||
Total purchase price | 1,050,965 | |||
Non-cash equity contribution | (173,965 | ) | ||
Cash used in acquisition of SS&C | $ | 877,000 | ||
F-19F-8
2. | Summary of Significant Accounting Policies |
F-20F-9
F-21F-10
F-22F-11
Predecessor | ||||||||
Period from | ||||||||
January 1 | ||||||||
through | ||||||||
November 23, | ||||||||
2005 | 2004 | |||||||
Net income, as reported | $ | 712 | $ | 19,010 | ||||
Add back: compensation expense recorded in period | 31,700 | — | ||||||
Deduct: total stock-based employee compensation determined under fair value based method for all awards, net of related tax effects | (3,473 | ) | (1,293 | ) | ||||
Net income, pro forma | $ | 28,939 | $ | 17,717 | ||||
Predecessor | ||||
Period from | ||||
January 1 | ||||
through | ||||
November 23, | ||||
2005 | ||||
Net income, as reported | $ | 712 | ||
Add back: compensation expense recorded in period | 31,700 | |||
Deduct: total stock-based employee compensation determined under fair value based method for all awards, net of related tax effects | (3,473 | ) | ||
Net income, pro forma | $ | 28,939 | ||
F-12
F-23
Description | Useful Life | |
Equipment | 3-5 years | |
Furniture and fixtures | 7-10 years | |
Leasehold improvements | Shorter of lease term or estimated useful life |
F-13
Balance at December 31, 2005 | $ | 818,180 | ||
Adjustments related to the Transaction | (9,045 | ) | ||
2006 acquisitions | 11,891 | |||
Adjustments to previous acquisitions | (67 | ) | ||
Effect of foreign currency translation | (489 | ) | ||
Balance at December 31, 2006 | $ | 820,470 | ||
Balance at December 31, 2006 | $ | 820,470 | ||
2007 acquisition | 3,303 | |||
Adjustments to previous acquisitions | 15 | |||
Income tax benefit on rollover options exercised | (89 | ) | ||
Effect of foreign currency translation | 36,991 | |||
Balance at December 31, 2007 | $ | 860,690 | ||
F-24
December 31, | ||||||||
2006 | 2005 | |||||||
Customer relationships | $ | 202,353 | $ | 197,222 | ||||
Completed technology | 56,454 | 55,937 | ||||||
Trade names | 17,268 | 17,203 | ||||||
Other | 2,070 | 2,074 | ||||||
278,145 | 272,436 | |||||||
Less: accumulated depreciation | (24,260 | ) | (1,870 | ) | ||||
$ | 253,885 | $ | 270,566 | |||||
December 31, | ||||||||
2007 | 2006 | |||||||
Customer relationships | $ | 210,128 | $ | 202,353 | ||||
Completed technology | 59,593 | 56,454 | ||||||
Trade names | 17,411 | 17,268 | ||||||
Other | 2,272 | 2,070 | ||||||
289,404 | 278,145 | |||||||
Less: accumulated amortization | (55,430 | ) | (24,260 | ) | ||||
$ | 233,974 | $ | 253,885 | |||||
2007 | $ | 28,873 | ||
2008 | 28,786 | |||
2009 | 28,158 | |||
2010 | 27,145 | |||
2011 | 25,818 | |||
$ | 138,780 |
2008 | $ | 30,115 | ||
2009 | 29,365 | |||
2010 | 28,224 | |||
2011 | 26,797 | |||
2012 | 25,073 | |||
$ | 139,574 |
F-14
F-25
F-15
F-26
F-16
Successor | Predecessor | ||||||||||||||||
Period | Period | ||||||||||||||||
from | from | ||||||||||||||||
Year | November 23 | January 1 | Year | ||||||||||||||
Ended | through | through | Ended | ||||||||||||||
December 31, | December 31, | November 22, | December 31, | ||||||||||||||
2006 | 2005 | 2005 | 2004 | ||||||||||||||
Weighted average common shares outstanding | 7,079 | 7,075 | 23,300 | 21,185 | |||||||||||||
Weighted average common stock equivalents — options | 237 | 239 | 1,178 | 1,314 | |||||||||||||
Weighted average common and common equivalent shares outstanding | 7,316 | 7,314 | 24,478 | 22,499 |
Successor | Predecessor | ||||||||||||||||
Period from | Period from | ||||||||||||||||
Year | Year | November 23 | January 1 | ||||||||||||||
Ended | Ended | through | through | ||||||||||||||
December 31, | December 31, | December 31, | November 22, | ||||||||||||||
2007 | 2006 | 2005 | 2005 | ||||||||||||||
Weighted average common shares outstanding | 53,157 | 53,093 | 53,063 | 23,300 | |||||||||||||
Weighted average common stock equivalents — options | 2,796 | 1,774 | 1,790 | 1,178 | |||||||||||||
Weighted average common and common equivalent shares outstanding | 55,953 | 54,867 | 54,853 | 24,478 |
F-27
3. | Accounts Receivable |
Successor | ||||||||
December 31, | December 31, | |||||||
2007 | 2006 | |||||||
Accounts receivable | $ | 29,546 | $ | 24,679 | ||||
Unbilled accounts receivable | 11,248 | 8,686 | ||||||
Allowance for doubtful accounts | (1,248 | ) | (1,670 | ) | ||||
Total accounts receivable | $ | 39,546 | $ | 31,695 | ||||
Successor | Predecessor | ||||||||||||||||
Period from | Period from | ||||||||||||||||
November 23 | January 1 | ||||||||||||||||
Year Ended | through | through | Year Ended | ||||||||||||||
December 31, | December 31, | November 22, | December 31, | ||||||||||||||
Allowance for Doubtful Accounts: | 2006 | 2005 | 2005 | 2004 | |||||||||||||
Balance at beginning of period | $ | 2,092 | $ | 2,057 | $ | 766 | $ | 1,449 | |||||||||
Charge (benefit) to costs and expenses | 424 | 41 | 945 | (378 | ) | ||||||||||||
Write-offs, net of recoveries | (853 | ) | (6 | ) | (280 | ) | (305 | ) | |||||||||
Other adjustments | 7 | — | 626 | — | |||||||||||||
Balance at end of period | $ | 1,670 | $ | 2,092 | $ | 2,057 | $ | 766 | |||||||||
Successor | Predecessor | ||||||||||||||||
Period from | Period from | ||||||||||||||||
November 23 | January 1 | ||||||||||||||||
Year Ended | Year Ended | through | through | ||||||||||||||
December 31, | December 31, | December 31, | November 22, | ||||||||||||||
Allowance for Doubtful Accounts: | 2007 | 2006 | 2005 | 2005 | |||||||||||||
Balance at beginning of period | $ | 1,670 | $ | 2,092 | $ | 2,057 | $ | 766 | |||||||||
Charge to costs and expenses | 336 | 424 | 41 | 945 | |||||||||||||
Write-offs, net of recoveries | (823 | ) | (853 | ) | (6 | ) | (280 | ) | |||||||||
Other adjustments | 65 | 7 | — | 626 | |||||||||||||
Balance at end of period | $ | 1,248 | $ | 1,670 | $ | 2,092 | $ | 2,057 | |||||||||
F-17
4. | Stockholders’ Equity |
5. | Income Taxes |
Successor | Predecessor | ||||||||||||||||
Period from | Period from | ||||||||||||||||
November 23 | January 1 | ||||||||||||||||
Year Ended | through | through | Year Ended | ||||||||||||||
December 31, | December 31, | November 22, | December 31, | ||||||||||||||
2006 | 2005 | 2005 | 2004 | ||||||||||||||
U.S. | $ | (10,670 | ) | $ | (159 | ) | $ | 1,650 | $ | 30,634 | |||||||
Foreign | 7,956 | 990 | 1,720 | 406 | |||||||||||||
(Loss) income before taxes | $ | (2,714 | ) | $ | 831 | $ | 3,370 | $ | 31,040 | ||||||||
F-28
Successor Predecessor Period from Period from November 23 January 1 Year Ended Year Ended through through December 31, December 31, December 31, November 22, 2007 2006 2005 2005 U.S $ (11,417 ) $ (10,670 ) $ (159 ) $ 1,650 Foreign 17,534 7,956 990 1,720 Income (loss) before taxes $ 6,117 $ (2,714 ) $ 831 $ 3,370
Successor | Predecessor | ||||||||||||||||
Period from | Period from | ||||||||||||||||
November 23 | January 1 | ||||||||||||||||
Year Ended | through | through | Year Ended | ||||||||||||||
December 31, | December 31, | November 22, | December 31, | ||||||||||||||
2006 | 2005 | 2005 | 2004 | ||||||||||||||
Current: | |||||||||||||||||
Federal | $ | 1,168 | $ | 334 | $ | (61 | ) | $ | 8,802 | ||||||||
Foreign | 3,556 | 467 | 2,002 | 227 | |||||||||||||
State | 75 | 90 | 371 | 2,020 | |||||||||||||
Deferred: | |||||||||||||||||
Federal | (6,116 | ) | (575 | ) | 234 | 497 | |||||||||||
Foreign | (2,776 | ) | (258 | ) | (92 | ) | — | ||||||||||
State | 304 | (58 | ) | 204 | 484 | ||||||||||||
Total | $ | (3,789 | ) | $ | — | $ | 2,658 | $ | 12,030 | ||||||||
Successor | Predecessor | ||||||||||||||||
Period from | Period from | ||||||||||||||||
November 23 | January 1 | ||||||||||||||||
Year Ended | Year Ended | through | through | ||||||||||||||
December 31, | December 31, | December 31, | November 22, | ||||||||||||||
2007 | 2006 | 2005 | 2005 | ||||||||||||||
Current: | |||||||||||||||||
Federal | $ | 460 | $ | 1,168 | $ | 334 | $ | (61 | ) | ||||||||
Foreign | 4,406 | 3,556 | 467 | 2,002 | |||||||||||||
State | 99 | 75 | 90 | 371 | |||||||||||||
Deferred: | |||||||||||||||||
Federal | (6,262 | ) | (6,116 | ) | (575 | ) | 234 | ||||||||||
Foreign | 441 | (2,776 | ) | (258 | ) | (92 | ) | ||||||||||
State | 398 | 304 | (58 | ) | 204 | ||||||||||||
Total | $ | (458 | ) | $ | (3,789 | ) | $ | — | $ | 2,658 | |||||||
F-18
Successor | Predecessor | ||||||||||||||||
Period from | Period from | ||||||||||||||||
November 23 | January 1 | ||||||||||||||||
Year Ended | through | through | Year Ended | ||||||||||||||
December 31, | December 31, | November 22, | December 31, | ||||||||||||||
2006 | 2005 | 2005 | 2004 | ||||||||||||||
Computed “expected” tax expense (benefit) | $ | (949 | ) | $ | 290 | $ | 1,180 | $ | 10,864 | ||||||||
Increase (decrease) in income tax expense resulting from: | |||||||||||||||||
State income taxes (net of federal income tax benefit) | 248 | 21 | 373 | 1,627 | |||||||||||||
Tax-exempt interest income | — | — | (175 | ) | (267 | ) | |||||||||||
Foreign operations | (1,905 | ) | (303 | ) | (390 | ) | 61 | ||||||||||
Rate change impact on deferred tax assets | (1,228 | ) | — | — | (126 | ) | |||||||||||
Deal costs (non-deductible) | — | — | 1,516 | — | |||||||||||||
Other | 45 | (8 | ) | 154 | (129 | ) | |||||||||||
(Benefit) provision for income taxes | $ | (3,789 | ) | $ | — | $ | 2,658 | $ | 12,030 | ||||||||
Successor | Predecessor | ||||||||||||||||
Period from | Period from | ||||||||||||||||
November 23 | January 1 | ||||||||||||||||
Year Ended | Year Ended | through | through | ||||||||||||||
December 31, | December 31, | December 31, | November 22, | ||||||||||||||
2007 | 2006 | 2005 | 2005 | ||||||||||||||
Computed “expected” tax expense (benefit) | $ | 2,141 | $ | (949 | ) | $ | 290 | $ | 1,180 | ||||||||
Increase (decrease) in income tax expense resulting from: | |||||||||||||||||
State income taxes (net of federal income tax benefit) | 321 | 248 | 21 | 373 | |||||||||||||
Tax-exempt interest income | — | — | — | (175 | ) | ||||||||||||
Foreign operations | (1,883 | ) | (1,905 | ) | (303 | ) | (390 | ) | |||||||||
Rate change impact on deferred tax liabilities | (1,536 | ) | (1,228 | ) | — | — | |||||||||||
Deal costs (non-deductible) | — | — | — | 1,516 | |||||||||||||
Uncertain tax positions | 646 | — | — | — | |||||||||||||
Other | (147 | ) | 45 | (8 | ) | 154 | |||||||||||
(Benefit) provision for income taxes | $ | (458 | ) | $ | (3,789 | ) | $ | — | $ | 2,658 | |||||||
F-29F-19
Successor | ||||||||||||||||
2006 | 2005 | |||||||||||||||
Deferred | Deferred | Deferred | Deferred | |||||||||||||
Tax | Tax | Tax | Tax | |||||||||||||
Assets | Liabilities | Assets | Liabilities | |||||||||||||
Purchased in-process research and development | $ | 1,635 | $ | — | $ | 2,244 | $ | — | ||||||||
Net operating loss carryforwards | 8,730 | — | 4,815 | — | ||||||||||||
Acquired technology | 9,250 | — | 2,254 | — | ||||||||||||
Accounts receivable | 287 | — | 497 | — | ||||||||||||
Tax credit carryforwards | 2,356 | — | 2,101 | — | ||||||||||||
Accrued expenses | 921 | — | 633 | — | ||||||||||||
Fixed assets | 726 | — | 623 | — | ||||||||||||
Deferred revenue | — | — | — | 1,528 | ||||||||||||
Intangible assets | — | 88,879 | — | 94,391 | ||||||||||||
Prepaid expenses | — | 94 | — | 181 | ||||||||||||
Capitalized software | 4 | — | — | 15 | ||||||||||||
Other | 842 | — | — | 392 | ||||||||||||
Total | 24,751 | 88,973 | 13,167 | 96,507 | ||||||||||||
Valuation allowance | (5,680 | ) | — | (2,228 | ) | — | ||||||||||
Total | $ | 19,071 | $ | 88,973 | $ | 10,939 | $ | 96,507 | ||||||||
Successor | ||||||||||||||||
2007 | 2006 | |||||||||||||||
Deferred | Deferred | Deferred | Deferred | |||||||||||||
Tax | Tax | Tax | Tax | |||||||||||||
Assets | Liabilities | Assets | Liabilities | |||||||||||||
Net operating loss carryforwards | $ | 6,606 | $ | — | $ | 8,688 | $ | — | ||||||||
Deferred compensation | 4,418 | — | 1,161 | — | ||||||||||||
Purchased in-process research and development | 1,658 | — | 2,053 | — | ||||||||||||
Property and equipment | 985 | — | 726 | — | ||||||||||||
Accrued expenses | 887 | — | 890 | — | ||||||||||||
Tax credit carryforwards | 548 | — | 2,860 | — | ||||||||||||
Accounts receivable | 299 | — | 287 | — | ||||||||||||
Other | 293 | — | — | 844 | ||||||||||||
Acquired technology | — | 3,808 | — | 6,267 | ||||||||||||
Trade names | — | 5,440 | — | 5,931 | ||||||||||||
Other intangible assets | — | 5,616 | — | 2,612 | ||||||||||||
Customer relationships | — | 60,192 | — | 65,201 | ||||||||||||
Total | 15,694 | 75,056 | 16,665 | 80,855 | ||||||||||||
Valuation allowance | (5,116 | ) | — | (5,712 | ) | — | ||||||||||
Total | $ | 10,578 | $ | 75,056 | $ | 10,953 | $ | 80,855 | ||||||||
F-30F-20
Balance at January 1, 2007 | $ | 5,266 | ||
Increases related to current year tax positions | 452 | |||
Foreign exchange translation adjustment | 739 | |||
Balance at December 31, 2007 | $ | 6,457 | ||
6. | Debt and Derivative Instruments |
Successor | ||||||||
2006 | 2005 | |||||||
Senior credit facility, revolving portion, weighted-average interest rate of 8.10% and 6.57%, respectively(A) | $ | 3,000 | $ | 7,734 | ||||
Senior credit facility, term loan portion, weighted-average interest rate of 7.73% and 6.90%, respectively(A) | 263,929 | 275,833 | ||||||
113/4% Senior subordinated notes due 2013(B) | 205,000 | 205,000 | ||||||
Other | — | 14 | ||||||
471,929 | 488,581 | |||||||
Short-term borrowings and current portion of long-term debt | (5,694 | ) | (10,438 | ) | ||||
Long-term debt | $ | 466,235 | $ | 478,143 | ||||
Successor | ||||||||
2007 | 2006 | |||||||
Senior credit facility, revolving portion, weighted-average interest rate of 8.10%(A) | $ | — | $ | 3,000 | ||||
Senior credit facility, term loan portion, weighted-average interest rate of 7.04% and 7.73%, respectively(A) | 238,009 | 263,929 | ||||||
113/4% senior subordinated notes due 2013(B) | 205,000 | 205,000 | ||||||
443,009 | 471,929 | |||||||
Short-term borrowings and current portion of long-term debt | (2,429 | ) | (5,694 | ) | ||||
Long-term debt | $ | 440,580 | $ | 466,235 | ||||
F-21
(A) | Senior Credit Facilities |
F-31
F-22
(B) | 113/4% Senior Subordinated Notes due 2013 |
F-32
F-23
Successor | ||||
2007 | $ | 2,674 | ||
2008 | 2,674 | |||
2009 | 2,674 | |||
2010 | 2,674 | |||
2011 | 5,674 | |||
Thereafter | 455,559 | |||
$ | 471,929 | |||
Successor | ||||
2008 | $ | 2,429 | ||
2009 | 2,429 | |||
2010 | 2,429 | |||
2011 | 2,429 | |||
2012 | 228,293 | |||
Thereafter | 205,000 | |||
$ | 443,009 | |||
F-33
7. | Leases |
Year Ending December 31, | ||||
2007 | $ | 8,098 | ||
2008 | 7,297 | |||
2009 | 6,667 | |||
2010 | 6,540 | |||
2011 | 5,415 | |||
2012 and thereafter | 14,741 | |||
$ | 48,758 | |||
Year Ending December 31, | ||||
2008 | $ | 7,665 | ||
2009 | 7,363 | |||
2010 | 7,366 | |||
2011 | 6,443 | |||
2012 | 5,985 | |||
2013 and thereafter | 10,854 | |||
$ | 45,676 | |||
F-24
Year Ending December 31, | ||||
2007 | $ | 1,460 | ||
2008 | 1,255 | |||
2009 | 1,114 | |||
2010 | 1,127 | |||
2011 | 1,127 | |||
2012 and thereafter | 2,441 | |||
$ | 8,524 | |||
Year Ending December 31, | ||||
2008 | $ | 1,320 | ||
2009 | 1,181 | |||
2010 | 1,195 | |||
2011 | 1,195 | |||
2012 | 1,195 | |||
2013 and thereafter | 1,393 | |||
$ | 7,479 | |||
8. |
F-34
Defined Contribution Plans |
Stock Option and Purchase Plans |
F-25
F-35
F-26
Time-based Awards | Performance-based Awards | |||||||||||||||
2007 | 2006 | 2007 | 2006 | |||||||||||||
Expected term to exercise (years) | 4.0 | 4.0 | 4.5 | 4.5 | ||||||||||||
Expected volatility | 45.85 | % | 45.85 | % | 45.85 | % | 45.85 | % | ||||||||
Risk-free interest rate | 4.57 | % | 4.86 | % | 4.57 | % | 4.86 | % | ||||||||
Expected dividend yield | 0 | % | 0 | % | 0 | % | 0 | % |
Statement of operations classification | ||||
Cost of Maintenance | $ | 100 | ||
Cost of Professional services | 124 | |||
Cost of Software-enabled services | 785 | |||
Total cost of revenues | 1,009 | |||
Selling and marketing | 647 | |||
Research and development | 425 | |||
General and administrative | 1,790 | |||
Total operating expenses | 2,862 | |||
Total stock-based compensation expense | $ | 3,871 | ||
Successor | ||||||||
2007 | 2006 | |||||||
Statement of operations classification | ||||||||
Cost of maintenance | $ | 257 | $ | 100 | ||||
Cost of professional services | 343 | 124 | ||||||
Cost of software-enabled services | 2,452 | 785 | ||||||
Total cost of revenues | 3,052 | 1,009 | ||||||
Selling and marketing | 1,803 | 647 | ||||||
Research and development | 1,146 | 425 | ||||||
General and administrative | 4,978 | 1,790 | ||||||
Total operating expenses | 7,927 | 2,862 | ||||||
Total stock-based compensation expense | $ | 10,979 | $ | 3,871 | ||||
F-27
Weighted Average | ||||||||
Shares | Exercise Price | |||||||
Outstanding at December 31, 2005 (Rollover options) | 484,467 | 16.97 | ||||||
Granted | 1,176,331 | 74.50 | ||||||
Cancelled | (42,885 | ) | 74.50 | |||||
Exercised | (4,467 | ) | 21.34 | |||||
Outstanding at December 31, 2006 | 1,613,446 | 57.37 |
F-36
Shares Under | Weighted Average | |||||||
Option | Exercise Price | |||||||
Outstanding at December 31, 2005 (Rollover options) | 3,633,501 | $ | 2.26 | |||||
Granted | 8,822,482 | 9.93 | ||||||
Cancelled | (321,637 | ) | 9.93 | |||||
Exercised | (33,510 | ) | 2.85 | |||||
Outstanding at December 31, 2006 | 12,100,836 | 7.65 | ||||||
Granted | 326,250 | 11.47 | ||||||
Cancelled/forfeited | (270,375 | ) | 9.85 | |||||
Exercised | (1,687 | ) | 0.98 | |||||
Outstanding at December 31, 2007 | 12,155,024 | 7.70 | ||||||
Outstanding, Vested Options Currently Exercisable | Outstanding Options Expected to Vest | |||||||||||||||||||||||||||||
Weighted- | Weighted- | |||||||||||||||||||||||||||||
Aggregate | Average | Average | ||||||||||||||||||||||||||||
Weighted- | Intrinsic | Remaining | Weighted- | Aggregate | Remaining | |||||||||||||||||||||||||
Average | Value | Contractual | Average | Intrinsic | Contractual | |||||||||||||||||||||||||
Shares | Exercise Price | (In thousands) | Term (years) | Shares | Exercise Price | Value | Term (years) | |||||||||||||||||||||||
602,058 | $ | 28.60 | $ | 27,636 | 6.3 | 220,406 | $ | 74.50 | $ | — | 9.6 |
Outstanding Vested Options Currently Exercisable | Outstanding Options Expected to Vest | |||||||||||||||||||||||||||||
Weighted- | Weighted- | |||||||||||||||||||||||||||||
Aggregate | Average | Aggregate | Average | |||||||||||||||||||||||||||
Shares | Weighted- | Intrinsic | Remaining | Shares | Weighted- | Intrinsic | Remaining | |||||||||||||||||||||||
Under | Average | Value | Contractual | Under | Average | Value | Contractual | |||||||||||||||||||||||
Option | Exercise Price | (In thousands) | Term (years) | Option | Exercise Price | (In thousands) | Term (years) | |||||||||||||||||||||||
6,531,255 | $ | 5.71 | $ | 48,821 | 6.3 | 1,711,893 | $ | 10.05 | $ | 5,371 | 8.7 |
F-37F-28
Weighted Average | ||||||||
Shares | Exercise Price | |||||||
Outstanding at December 31, 2003 | 2,570,966 | $ | 5.92 | |||||
Granted | 284,798 | 22.81 | ||||||
Cancelled | (85,291 | ) | 17.68 | |||||
Exercised | (391,011 | ) | 5.64 | |||||
Outstanding at December 31, 2004 | 2,379,462 | 7.56 | ||||||
Granted | 137,200 | 26.99 | ||||||
Cancelled | (25,213 | ) | 16.92 | |||||
Exercised(1) | (1,522,515 | ) | 8.59 | |||||
Rollover options | (968,934 | ) | 8.48 | |||||
Outstanding at November 22, 2005 | — | — | ||||||
Shares Under | Weighted Average | |||||||
Option | Exercise Price | |||||||
Outstanding at December 31, 2004 | 2,379,462 | $ | 7.56 | |||||
Granted | 137,200 | 26.99 | ||||||
Cancelled | (25,213 | ) | 16.92 | |||||
Exercised(1) | (1,522,515 | ) | 8.59 | |||||
Rollover options | (968,934 | ) | 8.48 | |||||
Outstanding at November 22, 2005 | — | — | ||||||
(1) | Includes 1,132,676 options with a weighted-average exercise price of $9.29 that were cashed out in connection with the Transaction, with the same economic effect as an exercise and sale for the Transaction consideration. |
10. | Acquisitions |
F-29
F-38
Zoologic | Cogent | |||||||
Tangible assets acquired, net of cash received | $ | 535 | $ | 1,074 | ||||
Completed technology | 425 | — | ||||||
Trade names | 60 | — | ||||||
Acquired client relationships and contracts | 500 | 4,500 | ||||||
Goodwill | 2,524 | 9,367 | ||||||
Deferred revenue | (1,163 | ) | (756 | ) | ||||
Debt | — | (300 | ) | |||||
Deferred taxes | — | (1,755 | ) | |||||
Other liabilities assumed | (169 | ) | (236 | ) | ||||
Consideration paid, net of cash acquired | $ | 2,712 | $ | 11,894 | ||||
Northport | Zoologic | Cogent | ||||||||||
Tangible assets acquired, net of cash received | $ | 708 | $ | 505 | $ | 1,019 | ||||||
Completed technology | — | 425 | — | |||||||||
Trade names | — | 60 | — | |||||||||
Acquired client relationships and contracts | 1,500 | 500 | 4,500 | |||||||||
Goodwill | 3,303 | 2,535 | 9,328 | |||||||||
Deferred revenue | (350 | ) | (1,163 | ) | (756 | ) | ||||||
Debt | — | — | (300 | ) | ||||||||
Deferred taxes | — | — | (1,755 | ) | ||||||||
Other liabilities assumed | (31 | ) | (150 | ) | (142 | ) | ||||||
Consideration paid, net of cash acquired | $ | 5,130 | $ | 2,712 | $ | 11,894 | ||||||
F-30
F-39
F-31
F-40
OIS | MarginMan | FI | FMC | EisnerFast | Achievement | |||||||||||||||||||
Assets acquired, net of cash received | $ | 2,474 | $ | 105 | $ | 815 | $ | 16,223 | $ | 1,089 | $ | 3 | ||||||||||||
Completed technology | 5,275 | 1,447 | 1,306 | 9,683 | — | 210 | ||||||||||||||||||
Acquired client contracts and relationships | 4,000 | 2,266 | 2,078 | 37,103 | 8,587 | — | ||||||||||||||||||
Trade names | 230 | 76 | 138 | 814 | — | — | ||||||||||||||||||
Goodwill | 12,328 | 2,303 | 9,829 | 113,560 | 17,106 | 350 | ||||||||||||||||||
Deferred income taxes | — | — | (199 | ) | (13,835 | ) | — | — | ||||||||||||||||
Other liabilities assumed | (307 | ) | (516 | ) | (3,388 | ) | (11,633 | ) | (1,449 | ) | (91 | ) | ||||||||||||
Consideration paid, net of cash acquired | $ | 24,000 | $ | 5,681 | $ | 10,579 | $ | 151,915 | $ | 25,333 | $ | 472 | ||||||||||||
F-41F-32
OMR | NeoVision | IAN | ||||||||||
Assets acquired, net of cash received | $ | 8,134 | $ | 9 | $ | 232 | ||||||
Acquired client contracts, customer relationships and trade names | 3,800 | — | — | |||||||||
Completed technology | 4,400 | 430 | 1,100 | |||||||||
Goodwill | 9,249 | 1,259 | 1,892 | |||||||||
Liabilities assumed | (6,618 | ) | (91 | ) | (255 | ) | ||||||
Consideration paid, net of cash acquired | $ | 18,965 | $ | 1,607 | $ | 2,969 | ||||||
F-42
Period from | Period from | |||||||||||
November 23 | January 1 | |||||||||||
through | through | |||||||||||
December 31, | November 22, | |||||||||||
2006 | 2005 | 2005 | ||||||||||
Revenues | $ | 208,231 | $ | 18,274 | $ | 179,210 | ||||||
Net income | 1,425 | 907 | 3,664 |
Period from | Period from | |||||||||||||||
November 23 | January 1 | |||||||||||||||
through | through | |||||||||||||||
December 31, | November 22, | |||||||||||||||
2007 | 2006 | 2005 | 2005 | |||||||||||||
Revenues | $ | 248,854 | $ | 211,354 | $ | 18,506 | $ | 181,332 | ||||||||
Net income | 6,596 | 1,777 | 902 | 3,613 | ||||||||||||
Basic earnings per share | $ | 0.12 | $ | 0.03 | $ | 0.02 | $ | 0.15 | ||||||||
Diluted earnings per share | $ | 0.12 | $ | 0.03 | $ | 0.02 | $ | 0.15 |
Related Party Transactions |
Commitments and Contingencies |
F-33
F-43
Product and Geographic Sales Information |
F-34
F-44
Successor | Predecessor | ||||||||||||||||
Period from | Period from | ||||||||||||||||
November 23, | January 1, | ||||||||||||||||
2005 through | 2005 through | ||||||||||||||||
December 31, | November 22, | ||||||||||||||||
2006 | 2005 | 2005 | 2004 | ||||||||||||||
United States | $ | 122,341 | $ | 10,261 | $ | 91,542 | $ | 74,724 | |||||||||
Canada | 35,924 | 2,572 | 18,406 | — | |||||||||||||
Americas excluding United States and Canada | 2,850 | 370 | 3,163 | 3,688 | |||||||||||||
Europe | 40,150 | 4,151 | 27,737 | 14,965 | |||||||||||||
Asia Pacific and Japan | 4,204 | 311 | 3,121 | 2,511 | |||||||||||||
$ | 205,469 | $ | 17,665 | $ | 143,969 | $ | 95,888 | ||||||||||
Successor | Predecessor | ||||||||||||||||
Period from | Period from | ||||||||||||||||
November 23, | January 1, | ||||||||||||||||
2005 through | 2005 through | ||||||||||||||||
December 31, | November 22, | ||||||||||||||||
2007 | 2006 | 2005 | 2005 | ||||||||||||||
United States | $ | 147,104 | $ | 122,341 | $ | 10,261 | $ | 91,542 | |||||||||
Canada | 40,892 | 35,924 | 2,572 | 18,406 | |||||||||||||
Americas excluding United States and Canada | 4,672 | 2,850 | 370 | 3,163 | |||||||||||||
Europe | 49,612 | 40,150 | 4,151 | 27,737 | |||||||||||||
Asia Pacific and Japan | 5,888 | 4,204 | 311 | 3,121 | |||||||||||||
$ | 248,168 | $ | 205,469 | $ | 17,665 | $ | 143,969 | ||||||||||
2006 | 2005 | |||||||
United States | $ | 20,814 | $ | 17,518 | ||||
Canada | 5,057 | 6,733 | ||||||
Americas excluding United States and Canada | 85 | 81 | ||||||
Europe | 425 | 349 | ||||||
Asia Pacific and Japan | 125 | 91 | ||||||
$ | 26,506 | $ | 24,772 | |||||
2007 | 2006 | |||||||
United States | $ | 20,702 | $ | 20,814 | ||||
Canada | 4,580 | 5,057 | ||||||
Americas excluding United States and Canada | 134 | 85 | ||||||
Europe | 523 | 425 | ||||||
Asia Pacific and Japan | 124 | 125 | ||||||
$ | 26,063 | $ | 26,506 | |||||
Successor | Predecessor | ||||||||||||||||||||||||||||||||
Period from | Period from | Successor | Predecessor | ||||||||||||||||||||||||||||||
November 23, | January 1, | Period from | Period from | ||||||||||||||||||||||||||||||
2005 through | 2005 through | November 23, | January 1, | ||||||||||||||||||||||||||||||
December 31, | November 22, | 2005 through | 2005 through | ||||||||||||||||||||||||||||||
2006 | 2005 | 2005 | 2004 | December 31, | November 22, | ||||||||||||||||||||||||||||
2007 | 2006 | 2005 | 2005 | ||||||||||||||||||||||||||||||
Portfolio management/accounting | $ | 152,094 | $ | 12,883 | $ | 105,081 | $ | 60,568 | $ | 192,617 | $ | 152,094 | $ | 12,883 | $ | 105,081 | |||||||||||||||||
Trading/treasury operations | 27,686 | 2,458 | 21,143 | 17,785 | 29,341 | 27,686 | 2,458 | 21,143 | |||||||||||||||||||||||||
Financial modeling | 9,446 | 625 | 8,521 | 9,257 | 8,919 | 9,446 | 625 | 8,521 | |||||||||||||||||||||||||
Loan management/accounting | 5,296 | 790 | 3,499 | 3,101 | 5,120 | 5,296 | 790 | 3,499 | |||||||||||||||||||||||||
Property management | 5,983 | 569 | 5,192 | 5,177 | 5,514 | 5,983 | 569 | 5,192 | |||||||||||||||||||||||||
Money market processing | 4,083 | 340 | 533 | — | 4,498 | 4,083 | 340 | 533 | |||||||||||||||||||||||||
Training | 881 | — | — | — | 2,159 | 881 | — | — | |||||||||||||||||||||||||
$ | 205,469 | $ | 17,665 | $ | 143,969 | $ | 95,888 | $ | 248,168 | $ | 205,469 | $ | 17,665 | $ | 143,969 | ||||||||||||||||||
Subsequent Events |
F-45F-35
• | the vesting of the remaining 2006 and 2007 performance-based options that did not otherwise vest during 2007; |
• | the conversion of all superior options granted under the 2006 Equity Incentive Plan into performance-based options, with one-third of the options vesting in each of 2008, 2009 and 2010 based upon the Company’s EBITDA for these years falling within designated EBITDA target ranges; |
• | the elimination of the annual EBITDA targets originally established for 2009 through 2011, with new target ranges to be established by the Company’s board annually; and |
• | a modification to the performance-based options such that any performance-based options that do not vest in any given year as a result of not attaining that year’s EBITDA target range, shall vest based upon the Company’s EBITDA for the following year falling within the targeted range for the following year. |
Selected Quarterly Financial Data (Unaudited) |
Successor | ||||||||||||||||
First | Second | Third | Fourth | |||||||||||||
Quarter | Quarter | Quarter | Quarter | |||||||||||||
(In thousands) | ||||||||||||||||
2006 | ||||||||||||||||
Revenue | $ | 48,365 | $ | 50,655 | $ | 52,449 | $ | 54,000 | ||||||||
Gross profit | 25,069 | 26,150 | 26,641 | 27,593 | ||||||||||||
Operating income | 11,427 | 11,340 | 10,579 | 10,523 | ||||||||||||
Net income (loss) | (226 | ) | 1,787 | 359 | (845 | ) |
First | Second | Third | Fourth | |||||||||||||
Quarter | Quarter | Quarter | Quarter | |||||||||||||
(In thousands) | ||||||||||||||||
2007 | ||||||||||||||||
Revenue | $ | 55,914 | $ | 60,328 | $ | 63,483 | $ | 68,443 | ||||||||
Gross profit | 26,472 | 28,020 | 31,114 | 33,680 | ||||||||||||
Operating income | 11,047 | 9,598 | 13,902 | 14,183 | ||||||||||||
Net income (loss) | (173 | ) | (1,059 | ) | 2,221 | 5,586 |
Predecessor | Successor | |||||||||||||||||||
Period from | Period from | |||||||||||||||||||
October 1, | November 23, | |||||||||||||||||||
2005 through | 2005 through | |||||||||||||||||||
First | Second | Third | November 22, | December 31, | ||||||||||||||||
Quarter | Quarter | Quarter(1) | 2005(1) | 2005 | ||||||||||||||||
(In thousands) | ||||||||||||||||||||
2005 | ||||||||||||||||||||
Revenue | $ | 27,416 | $ | 40,713 | $ | 46,110 | $ | 29,730 | $ | 17,665 | ||||||||||
Gross profit | 17,608 | 24,086 | 26,869 | 16,402 | 10,038 | |||||||||||||||
Operating income (loss) | 9,163 | 10,741 | 11,939 | (28,067 | ) | 5,463 | ||||||||||||||
Net income (loss) | 5,969 | 6,589 | 6,995 | (18,841 | ) | 831 |
First | Second | Third | Fourth | |||||||||||||
Quarter | Quarter | Quarter | Quarter | |||||||||||||
(In thousands) | ||||||||||||||||
2006 | ||||||||||||||||
Revenue | $ | 48,365 | $ | 50,655 | $ | 52,449 | $ | 54,000 | ||||||||
Gross profit | 25,069 | 26,150 | 26,641 | 27,593 | ||||||||||||
Operating income | 11,427 | 11,340 | 10,579 | 10,523 | ||||||||||||
Net income (loss) | (226 | ) | 1,787 | 359 | (845 | ) |
F-46F-36
Successor | ||||||||
December 31, | December 31, | |||||||
2006 | 2005 | |||||||
(In thousands, except per share data) | ||||||||
ASSETS | ||||||||
Cash and cash equivalents | $ | — | $ | — | ||||
Investments in subsidiaries | 563,132 | 557,133 | ||||||
Total assets | $ | 563,132 | $ | 557,133 | ||||
LIABILITIES AND STOCKHOLDERS’ EQUITY | ||||||||
Commitments and contingencies | ||||||||
Stockholders’ equity: | ||||||||
Common stock, $0.01 par value per share, 10,000 shares authorized; 7,088 and 7,075 shares issued and outstanding, respectively | 71 | 71 | ||||||
Additionally paid-in capital | 559,524 | 554,894 | ||||||
Accumulated other comprehensive income | 1,699 | 1,337 | ||||||
Retained earnings | 1,906 | 831 | ||||||
563,200 | 557,133 | |||||||
Less: cost of common stock in treasury, 1 share and 0 shares, respectively | (68 | ) | — | |||||
Total stockholders’ equity | 563,132 | 557,133 | ||||||
Total liabilities and stockholders’ equity | $ | 563,132 | $ | 557,133 | ||||
Successor | ||||||||
December 31, | December 31, | |||||||
2007 | 2006 | |||||||
(In thousands) | ||||||||
ASSETS | ||||||||
Cash and cash equivalents | $ | — | $ | — | ||||
Investments in subsidiaries | 612,593 | 563,132 | ||||||
Total assets | $ | 612,593 | $ | 563,132 | ||||
LIABILITIES AND STOCKHOLDERS’ EQUITY | ||||||||
Commitments and contingencies | ||||||||
Stockholders’ equity: | ||||||||
Common stock, $0.01 par value, 100,000 shares authorized; 53,165 shares and 53,163 shares issued, respectively, and 53,157 and 53,156 shares outstanding, respectively | 532 | 532 | ||||||
Additional paid-in capital | 570,043 | 559,063 | ||||||
Accumulated other comprehensive income | 33,615 | 1,699 | ||||||
Retained earnings | 8,481 | 1,906 | ||||||
612,671 | 563,200 | |||||||
Less: cost of common stock in treasury, 8 shares and 7 shares, respectively | (78 | ) | (68 | ) | ||||
Total stockholders’ equity | 612,593 | 563,132 | �� | |||||
Total liabilities and stockholders’ equity | $ | 612,593 | $ | 563,132 | ||||
F-47
Period from | ||||||||
November 23, | ||||||||
Year Ended | 2005 through | |||||||
December 31, | December 31, | |||||||
2006 | 2005 | |||||||
(In thousands) | ||||||||
Revenues | $ | — | $ | — | ||||
Operating costs and expenses | — | — | ||||||
Equity in net income of subsidiaries, net of tax | 1,075 | 831 | ||||||
Net income | $ | 1,075 | $ | 831 | ||||
F-48
Period from | ||||||||
November 23, | ||||||||
2005 | ||||||||
Year Ended | through | |||||||
December 31, | December 31, | |||||||
2006 | 2005 | |||||||
(In thousands) | ||||||||
Cash flow from operating activities: | ||||||||
Net income | $ | 1,075 | $ | 831 | ||||
Equity in net income of subsidiaries, net of tax | (1,075 | ) | (831 | ) | ||||
Net cash provided by operating activities | — | — | ||||||
Cash flow from investing activities: | ||||||||
Investment in SS&C Technologies, Inc. | — | (381,000 | ) | |||||
Net cash used in investing activities | — | (381,000 | ) | |||||
Cash flow from financing activities: | ||||||||
Issuance of common stock | — | 381,000 | ||||||
Net cash provided by financing activities | — | 381,000 | ||||||
Effect of exchange rate changes on cash | — | — | ||||||
Net (decrease) increase in cash and cash equivalents | — | — | ||||||
Cash and cash equivalents, beginning of period | — | — | ||||||
Cash and cash equivalents, end of period | $ | — | $ | — | ||||
Supplemental disclosure of cash flow information | ||||||||
Interest paid | $ | — | $ | — | ||||
Income tax refunds, net of payments | $ | — | $ | — | ||||
Income taxes paid, net of refunds | $ | — | $ | — |
F-49
Common Stock | Accumulated | |||||||||||||||||||||||||||||||
Number | Additional | Other | Total | Total | ||||||||||||||||||||||||||||
of Issued | Paid-in | Retained | Comprehensive | Treasury | Stockholders’ | Comprehensive | ||||||||||||||||||||||||||
Shares | Amount | Capital | Earnings | Income | Stock | Equity | Income | |||||||||||||||||||||||||
(in thousands) | ||||||||||||||||||||||||||||||||
Successor | ||||||||||||||||||||||||||||||||
Sale of common stock | 7,075 | $ | 71 | $ | 554,894 | $ | — | $ | — | $ | — | $ | 554,965 | |||||||||||||||||||
Net income | — | — | — | 831 | — | — | 831 | 831 | ||||||||||||||||||||||||
Foreign exchange translation adjustment | — | — | — | — | 1,232 | — | 1,232 | 1,232 | ||||||||||||||||||||||||
Change in unrealized gain on interest rate swaps, net of tax | — | — | — | — | 105 | — | 105 | 105 | ||||||||||||||||||||||||
Total comprehensive income | 2,168 | |||||||||||||||||||||||||||||||
Balance, at December 31, 2005 | 7,075 | $ | 71 | $ | 554,894 | $ | 831 | $ | 1,337 | $ | — | $ | 557,133 | |||||||||||||||||||
Net income | — | — | — | 1,075 | — | — | 1,075 | 1,075 | ||||||||||||||||||||||||
Foreign exchange translation adjustment | — | — | — | — | (273 | ) | — | (273 | ) | (273 | ) | |||||||||||||||||||||
Change in unrealized gain on interest rate swaps, net of tax | — | — | — | — | 635 | — | 635 | 635 | ||||||||||||||||||||||||
Total comprehensive income | 1,437 | |||||||||||||||||||||||||||||||
Stock-based compensation expense | — | — | 3,871 | — | — | — | 3,871 | |||||||||||||||||||||||||
Issuance of common stock | 9 | — | 663 | — | — | — | 663 | |||||||||||||||||||||||||
Exercise of options | 4 | — | 96 | — | — | — | 96 | |||||||||||||||||||||||||
Purchase of common stock | — | — | — | — | — | (68 | ) | (68 | ) | |||||||||||||||||||||||
Balance, at December 31, 2006 | 7,088 | $ | 71 | $ | 559,524 | $ | 1,906 | $ | 1,699 | $ | (68 | ) | $ | 563,132 | ||||||||||||||||||
F-50F-37
Period from | ||||||||||||
November 23, | ||||||||||||
Year Ended | Year Ended | 2005 through | ||||||||||
December 31, 2007 | December 31, 2006 | December 31, 2005 | ||||||||||
(In thousands) | ||||||||||||
Revenues | $ | — | $ | — | $ | — | ||||||
Operating costs and expenses | — | — | — | |||||||||
Equity in net income of subsidiaries, net of tax | 6,575 | 1,075 | 831 | |||||||||
Net income | $ | 6,575 | $ | 1,075 | $ | 831 | ||||||
F-38
Period from | ||||||||||||
November 23, | ||||||||||||
Year Ended | Year Ended | 2005 through | ||||||||||
(In thousands) | December 31, 2007 | December 31, 2006 | December 31, 2005 | |||||||||
Cash flow from operating activities: | ||||||||||||
Net income | $ | 6,575 | $ | 1,075 | $ | 831 | ||||||
Equity in net income of subsidiaries, net of tax | (6,575 | ) | (1,075 | ) | (831 | ) | ||||||
Net cash provided by operating activities | — | — | — | |||||||||
Cash flow from investing activities: | ||||||||||||
Investment in SS&C Technologies, Inc. | — | — | (381,000 | ) | ||||||||
Net cash used in investing activities | — | — | (381,000 | ) | ||||||||
Cash flow from financing activities: | ||||||||||||
Issuance of common stock | — | — | 381,000 | |||||||||
Net cash provided by financing activities | — | — | 381,000 | |||||||||
Effect of exchange rate changes on cash | — | — | — | |||||||||
Net (decrease) increase in cash and cash equivalents | — | — | — | |||||||||
Cash and cash equivalents, beginning of period | — | — | — | |||||||||
Cash and cash equivalents, end of period | $ | — | $ | — | $ | — | ||||||
Supplemental disclosure of cash flow information | ||||||||||||
Interest paid | $ | — | $ | — | $ | — | ||||||
Income tax refunds, net of payments | $ | — | $ | — | $ | — | ||||||
Income taxes paid, net of refunds | $ | — | $ | — | $ | — |
F-39
Common Stock | Accumulated | |||||||||||||||||||||||||||||||
Number | Additional | Other | Total | Total | ||||||||||||||||||||||||||||
of Issued | Paid-in | Retained | Comprehensive | Treasury | Stockholders’ | Comprehensive | ||||||||||||||||||||||||||
Shares | Amount | Capital | Earnings | Income | Stock | Equity | Income | |||||||||||||||||||||||||
Successor | ||||||||||||||||||||||||||||||||
Sale of common stock | 53,063 | $ | 531 | $ | 554,434 | $ | — | $ | — | $ | — | $ | 554,965 | |||||||||||||||||||
Net income | — | — | — | 831 | — | — | 831 | $ | 831 | |||||||||||||||||||||||
Foreign exchange translation adjustment | — | — | — | — | 1,232 | — | 1,232 | 1,232 | ||||||||||||||||||||||||
Change in unrealized gain on interest rate swaps, net of tax | — | — | — | — | 105 | — | 105 | 105 | ||||||||||||||||||||||||
Total comprehensive income | $ | 2,168 | ||||||||||||||||||||||||||||||
Balance, at December 31, 2005 | 53,063 | $ | 531 | $ | 554,434 | $ | 831 | $ | 1,337 | $ | — | $ | 557,133 | |||||||||||||||||||
Net income | — | — | — | 1,075 | — | — | 1,075 | $ | 1,075 | |||||||||||||||||||||||
Foreign exchange translation adjustment | — | — | — | — | (273 | ) | — | (273 | ) | (273 | ) | |||||||||||||||||||||
Change in unrealized gain on interest rate swaps, net of tax | — | — | — | — | 635 | — | 635 | 635 | ||||||||||||||||||||||||
Total comprehensive income | $ | 1,437 | ||||||||||||||||||||||||||||||
Stock-based compensation expense | — | — | 3,871 | — | — | — | 3,871 | |||||||||||||||||||||||||
Issuance of common stock | 67 | 1 | 662 | — | — | — | 663 | |||||||||||||||||||||||||
Exercise of options | 33 | — | 96 | — | — | — | 96 | |||||||||||||||||||||||||
Purchase of common stock | — | — | — | — | — | (68 | ) | (68 | ) | |||||||||||||||||||||||
Balance, at December 31, 2006 | 53,163 | $ | 532 | $ | 559,063 | $ | 1,906 | $ | 1,699 | $ | (68 | ) | $ | 563,132 | ||||||||||||||||||
Net income | — | — | — | 6,575 | — | — | 6,575 | $ | 6,575 | |||||||||||||||||||||||
Foreign exchange translation adjustment | — | — | — | — | 34,490 | — | 34,490 | 34,490 | ||||||||||||||||||||||||
Change in unrealized gain on interest rate swaps, net of tax | — | — | — | — | (2,574 | ) | — | (2,574 | ) | (2,574 | ) | |||||||||||||||||||||
Total comprehensive income | $ | 38,491 | ||||||||||||||||||||||||||||||
Stock-based compensationexpense | — | — | 10,979 | — | — | — | 10,979 | |||||||||||||||||||||||||
Exercise of options | 2 | — | 1 | — | — | — | 1 | |||||||||||||||||||||||||
Purchase of common stock | — | — | — | — | — | (10 | ) | (10 | ) | |||||||||||||||||||||||
Balance, at December 31, 2007 | 53,165 | $ | 532 | $ | 570,043 | $ | 8,481 | $ | 33,615 | $ | (78 | ) | $ | 612,593 | ||||||||||||||||||
F-40
1. | Background and Basis of Presentation |
2. | Debt |
3. | Commitments and Contingencies |
F-51F-41
Item 13. | Other Expenses of Issuance and Distribution. |
Securities and Exchange Commission registration fee | $ | * | ||
* | ||||
NASDAQ Global Market listing fee | * | |||
Printing and engraving expenses | * | |||
Legal fees and expenses | * | |||
Accountants’ fees and expenses | * | |||
Director and officer liability insurance | * | |||
Blue Sky fees and expenses | * | |||
Transfer Agent’s fees and expenses | * | |||
Miscellaneous | * | |||
Total | $ | * | ||
* | To be filed by amendment. |
Item 14. | Indemnification of Directors and Officers. |
II-1
Item 15. | Recent Sales of Unregistered Securities. |
(a) | Issuances of Capital Stock. |
II-2
(b) | Stock Option Grants. |
Item 16. | Exhibits and Financial Statement Schedules. |
Number | Description | |||
1 | .1* | Form of Underwriting Agreement | ||
2 | .1† | Acquisition Agreement, dated February 25, 2005, by and between SS&C Technologies, Inc. and Financial Models Company Inc. is incorporated herein by reference to Exhibit 2.1 to SS&C Technologies, Inc.’s Current Report on Form 8-K, filed on March 2, 2005 (File No. 000-28430) | ||
2 | .2† | Purchase Agreement, dated February 28, 2005, by and among SS&C Technologies, Inc., EisnerFast LLC and EHS, LLC is incorporated herein by reference to Exhibit 2.1 to SS&C Technologies, Inc.’s Current Report on Form 8-K, filed on March 3, 2005 (File No. 000-28430) | ||
2 | .3† | Agreement and Plan of Merger, dated as of July 28, 2005, by and among the Registrant, Sunshine Merger Corporation and SS&C Technologies, Inc. is incorporated herein by reference to Exhibit 2.1 to SS&C Technologies, Inc.’s Current Report on Form 8-K, filed on July 28, 2005 (File No. 000-28430) | ||
2 | .4† | Amendment No. 1 to Agreement and Plan of Merger, dated as of August 25, 2005, by among the Registrant, Sunshine Merger Corporation and SS&C Technologies, Inc. is incorporated herein by reference to Exhibit 2.1 to SS&C Technologies, Inc.’s Current Report on Form 8-K, filed on August 30, 2005 (File No. 000-28430) | ||
3 | .1* | Certificate of Incorporation of the Registrant, as amended | ||
3 | .2* | Bylaws of the Registrant, as amended | ||
3 | .3* | Form of Restated Certificate of Incorporation of the Registrant (to be effective upon the closing of this offering) | ||
3 | .4* | Form of Amended and Restated Bylaws of the Registrant (to be effective upon the closing of this offering) | ||
4 | .1 | Indenture, dated as of November 23, 2005, among Sunshine Acquisition II, Inc., SS&C Technologies, Inc., the Guarantors named on the signature pages thereto, and Wells Fargo Bank, National Association, as Trustee, relating to the 113/4% Senior Subordinated Notes due 2013, including the form of 113/4% Senior Subordinated Note due 2013, is incorporated herein by reference to Exhibit 4.1 to SS&C Technologies, Inc’s Registration Statement on Form S-4, as amended (File No. 333-135139) (the “Form S-4”) |
Number | Description | |||
1 | .1 | Form of Underwriting Agreement | ||
2 | .1† | Acquisition Agreement, dated February 25, 2005, by and between SS&C Technologies, Inc. and Financial Models Company Inc. is incorporated herein by reference to Exhibit 2.1 to SS&C Technologies, Inc.’s Current Report on Form 8-K, filed on March 2, 2005 (File No. 000-28430) | ||
2 | .2† | Purchase Agreement, dated February 28, 2005, by and among SS&C Technologies, Inc., EisnerFast LLC and EHS, LLC is incorporated herein by reference to Exhibit 2.1 to SS&C Technologies, Inc.’s Current Report on Form 8-K, filed on March 3, 2005 (File No. 000-28430) | ||
2 | .3† | Agreement and Plan of Merger, dated as of July 28, 2005, by and among the Registrant, Sunshine Merger Corporation and SS&C Technologies, Inc. is incorporated herein by reference to Exhibit 2.1 to SS&C Technologies, Inc.’s Current Report on Form 8-K, filed on July 28, 2005 (File No. 000-28430) | ||
2 | .4† | Amendment No. 1 to Agreement and Plan of Merger, dated as of August 25, 2005, by among the Registrant, Sunshine Merger Corporation and SS&C Technologies, Inc. is incorporated herein by reference to Exhibit 2.1 to SS&C Technologies, Inc.’s Current Report on Form 8-K, filed on August 30, 2005 (File No. 000-28430) | ||
3 | .1 | Certificate of Incorporation of the Registrant, as amended | ||
3 | .2 | Bylaws of the Registrant, as amended | ||
3 | .3 | Form of Restated Certificate of Incorporation of the Registrant (to be effective upon the closing of this offering) | ||
3 | .4 | Form of Amended and Restated Bylaws of the Registrant (to be effective upon the closing of this offering) | ||
4 | .1 | Indenture, dated as of November 23, 2005, among Sunshine Acquisition II, Inc., SS&C Technologies, Inc., the Guarantors named on the signature pages thereto, and Wells Fargo Bank, National Association, as Trustee, relating to the 113/4% Senior Subordinated Notes due 2013, including the form of 113/4% Senior Subordinated Note due 2013, is incorporated herein by reference to Exhibit 4.1 to SS&C Technologies, Inc’s Registration Statement on Form S-4, as amended (File No. 333-135139) (the “Form S-4”) |
II-3
Number | Description | |||
4 | .2 | First Supplemental Indenture, dated as of April 27, 2006, among Cogent Management Inc., SS&C Technologies, Inc. and Wells Fargo Bank, National Association, as Trustee, relating to the 113/4% Senior Subordinated Notes due 2013, is incorporated herein by reference to Exhibit 4.2 to the Form S-4 | ||
4 | .3 | Guarantee of 113/4% Senior Subordinated Notes due 2013 by Financial Models Company Ltd., Financial Models Holdings Inc., SS&C Fund Administration Services LLC, OMR Systems Corporation and Open Information Systems, Inc. is incorporated herein by reference to Exhibit 4.3 to the Form S-4 | ||
4 | .4 | Guarantee of 113/4% Senior Subordinated Notes due 2013 by Cogent Management Inc. is incorporated herein by reference to Exhibit 4.4 to the Form S-4 | ||
4 | .5 | Registration Rights Agreement, dated as of November 23, 2005, among Sunshine Acquisition II, Inc., SS&C Technologies, Inc. and the Guarantors named therein, as Issuers, and Wachovia Capital Markets, LLC, J.P. Morgan Securities Inc. and Banc of America Securities LLC, as Initial Purchasers, is incorporated herein by reference to Exhibit 4.5 to the Form S-4 | ||
4 | .6 | Purchase Agreement, dated as of November 17, 2005, between Sunshine Acquisition II, Inc. and the Initial Purchasers named in Schedule I thereto is incorporated herein by reference to Exhibit 4.6 to the Form S-4 | ||
4 | .7 | Joinder Agreement, dated as of November 23, 2005, executed by SS&C Technologies, Inc., Financial Models Company Ltd., Financial Models Holdings Inc., SS&C Fund Administration Services LLC, OMR Systems Corporation and Open Information Systems, Inc. is incorporated herein by reference to Exhibit 4.7 to the Form S-4 | ||
4 | .8 | Joinder Agreement, dated as of April 27, 2006, executed by Cogent Management Inc. is incorporated herein by reference to Exhibit 4.8 to the Form S-4 | ||
4 | .9** | Specimen certificate evidencing shares of common stock | ||
5 | .1* | Opinion of Wilmer Cutler Pickering Hale and Dorr LLP | ||
10 | .1 | Credit Agreement, dated as of November 23, 2005, among Sunshine Acquisition II, Inc., SS&C Technologies, Inc., SS&C Technologies Canada Corp., the several lenders from time to time parties thereto, JPMorgan Chase Bank, N.A., as Administrative Agent, JPMorgan Chase Bank, N.A., Toronto Branch, as Canadian Administrative Agent, Wachovia Bank, National Association, as Syndication Agent, and Bank of America, N.A., as Documentation Agent, is incorporated herein by reference to Exhibit 10.1 to the Form S-4 | ||
10 | .2 | Guarantee and Collateral Agreement, dated as of November 23, 2005, made by the Registrant, Sunshine Acquisition II, Inc., SS&C Technologies, Inc. and certain of its subsidiaries in favor of JPMorgan Chase Bank, N.A., as Administrative Agent, is incorporated herein by reference to Exhibit 10.2 to the Form S-4 | ||
10 | .3 | CDN Guarantee and Collateral Agreement, dated as of November 23, 2005, made by SS&C Technologies Canada Corp. and 3105198 Nova Scotia Company in favor of JPMorgan Chase Bank, N.A., Toronto Branch, as Canadian Administrative Agent, is incorporated herein by reference to Exhibit 10.3 to the Form S-4 | ||
10 | .4 | Assumption Agreement, dated as of April 27, 2006, made by Cogent Management Inc., in favor of JPMorgan Chase Bank, N.A., as Administrative Agent, is incorporated herein by reference to Exhibit 10.4 to the Form S-4 | ||
10 | .5 | Stockholders Agreement, dated as of November 23, 2005, by and among the Registrant, Carlyle Partners IV, L.P., CP IV Coinvestment, L.P., William C. Stone and Other Executive Stockholders (as defined therein) is incorporated herein by reference to Exhibit 10.5 to the Form S-4 | ||
10 | .6 | Registration Rights Agreement, dated as of November 23, 2005, by and among the Registrant, Carlyle Partners IV, L.P., CP IV Coinvestment, L.P., William C. Stone and Other Executive Investors (as defined therein) is incorporated herein by reference to Exhibit 10.6 to the Form S-4 | ||
10 | .7 | Form of Service Provider Stockholders Agreement by and among the Registrant, Carlyle Partners IV, L.P., CP IV Coinvestment, L.P. and the Service Provider Stockholders (as defined therein) is incorporated herein by reference to Exhibit 10.7 to the Form S-4 |
Number | Description | |||
4 | .2 | First Supplemental Indenture, dated as of April 27, 2006, among Cogent Management Inc., SS&C Technologies, Inc. and Wells Fargo Bank, National Association, as Trustee, relating to the 113/4% Senior Subordinated Notes due 2013, is incorporated herein by reference to Exhibit 4.2 to the Form S-4 | ||
4 | .3 | Guarantee of 113/4% Senior Subordinated Notes due 2013 by Financial Models Company Ltd., Financial Models Holdings Inc., SS&C Fund Administration Services LLC, OMR Systems Corporation and Open Information Systems, Inc. is incorporated herein by reference to Exhibit 4.3 to the Form S-4 | ||
4 | .4 | Guarantee of 113/4% Senior Subordinated Notes due 2013 by Cogent Management Inc. is incorporated herein by reference to Exhibit 4.4 to the Form S-4 | ||
4 | .5 | Registration Rights Agreement, dated as of November 23, 2005, among Sunshine Acquisition II, Inc., SS&C Technologies, Inc. and the Guarantors named therein, as Issuers, and Wachovia Capital Markets, LLC, J.P. Morgan Securities Inc. and Banc of America Securities LLC, as Initial Purchasers, is incorporated herein by reference to Exhibit 4.5 to the Form S-4 | ||
4 | .6 | Purchase Agreement, dated as of November 17, 2005, between Sunshine Acquisition II, Inc. and the Initial Purchasers named in Schedule I thereto is incorporated herein by reference to Exhibit 4.6 to the Form S-4 | ||
4 | .7 | Joinder Agreement, dated as of November 23, 2005, executed by SS&C Technologies, Inc., Financial Models Company Ltd., Financial Models Holdings Inc., SS&C Fund Administration Services LLC, OMR Systems Corporation and Open Information Systems, Inc. is incorporated herein by reference to Exhibit 4.7 to the Form S-4 | ||
4 | .8 | Joinder Agreement, dated as of April 27, 2006, executed by Cogent Management Inc. is incorporated herein by reference to Exhibit 4.8 to the Form S-4 | ||
4 | .9* | Specimen certificate evidencing shares of common stock | ||
5 | .1** | Opinion of Wilmer Cutler Pickering Hale and Dorr LLP | ||
10 | .1 | Credit Agreement, dated as of November 23, 2005, among Sunshine Acquisition II, Inc., SS&C Technologies, Inc., SS&C Technologies Canada Corp., the several lenders from time to time parties thereto, JPMorgan Chase Bank, N.A., as Administrative Agent, JPMorgan Chase Bank, N.A., Toronto Branch, as Canadian Administrative Agent, Wachovia Bank, National Association, as Syndication Agent, and Bank of America, N.A., as Documentation Agent, is incorporated herein by reference to Exhibit 10.1 to the Form S-4 | ||
10 | .2 | Guarantee and Collateral Agreement, dated as of November 23, 2005, made by the Registrant, Sunshine Acquisition II, Inc., SS&C Technologies, Inc. and certain of its subsidiaries in favor of JPMorgan Chase Bank, N.A., as Administrative Agent, is incorporated herein by reference to Exhibit 10.2 to the Form S-4 | ||
10 | .3 | CDN Guarantee and Collateral Agreement, dated as of November 23, 2005, made by SS&C Technologies Canada Corp. and 3105198 Nova Scotia Company in favor of JPMorgan Chase Bank, N.A., Toronto Branch, as Canadian Administrative Agent, is incorporated herein by reference to Exhibit 10.3 to the Form S-4 | ||
10 | .4 | Assumption Agreement, dated as of April 27, 2006, made by Cogent Management Inc., in favor of JPMorgan Chase Bank, N.A., as Administrative Agent, is incorporated herein by reference to Exhibit 10.4 to the Form S-4 | ||
10 | .5 | Stockholders Agreement, dated as of November 23, 2005, by and among the Registrant, Carlyle Partners IV, L.P., CP IV Coinvestment, L.P., William C. Stone and Other Executive Stockholders (as defined therein) is incorporated herein by reference to Exhibit 10.5 to the Form S-4 | ||
10 | .6 | Registration Rights Agreement, dated as of November 23, 2005, by and among the Registrant, Carlyle Partners IV, L.P., CP IV Coinvestment, L.P., William C. Stone and Other Executive Investors (as defined therein) is incorporated herein by reference to Exhibit 10.6 to the Form S-4 | ||
10 | .7 | Form of Service Provider Stockholders Agreement by and among the Registrant, Carlyle Partners IV, L.P., CP IV Coinvestment, L.P. and the Service Provider Stockholders (as defined therein) is incorporated herein by reference to Exhibit 10.7 to the Form S-4 | ||
10 | .8 | Management Agreement, dated as of November 23, 2005, between the Registrant, William C. Stone and TC Group, L.L.C. is incorporated herein by reference to Exhibit 10.8 to the Form S-4 |
II-4
Number | Description | |||
10 | .8 | Management Agreement, dated as of November 23, 2005, between the Registrant, William C. Stone and TC Group, L.L.C. is incorporated herein by reference to Exhibit 10.8 to the Form S-4 | ||
10 | .9 | SS&C Technologies, Inc. Management Rights Agreement, dated as of November 23, 2005, by and among Carlyle Partners IV, L.P., CP IV Coinvestment, L.P., the Registrant and SS&C Technologies, Inc. is incorporated herein by reference to Exhibit 10.9 to the Form S-4 | ||
10 | .10 | 1998 Stock Incentive Plan, including form of stock option agreement, is incorporated herein by reference to Exhibit 10.10 to the Form S-4 | ||
10 | .11 | 1999 Non-Officer Employee Stock Incentive Plan, including form of stock option agreement, is incorporated herein by reference to Exhibit 10.11 to the Form S-4 | ||
10 | .12 | Form of Option Assumption Notice for 1998 Stock Incentive Plan and 1999 Non-Officer Employee Stock Incentive Plan is incorporated herein by reference to Exhibit 10.12 to the Form S-4 | ||
10 | .13* | 2006 Equity Incentive Plan, as amended | ||
10 | .14* | Form of Stock Option Grant Notice and Stock Option Agreement | ||
10 | .15 | Form of Dividend Equivalent Agreement is incorporated herein by reference to Exhibit 10.3 to SS&C Technologies, Inc.’s Current Report on Form 8-K, filed on August 15, 2006 (File No. 000-28430) (the “August 15, 2006 8-K”) | ||
10 | .16 | Form of Stock Award Agreement is incorporated herein by reference to Exhibit 10.4 to the August 15, 2006 8-K | ||
10 | .17 | Employment Agreement, dated as of November 23, 2005, by and between William C. Stone and the Registrant is incorporated herein by reference to Exhibit 10.13 to the Form S-4 | ||
10 | .18 | Contract of Employment between Kevin Milne and SS&C Technologies, Inc., effective as of June 9, 2004, is incorporated herein by reference to Exhibit 10.4 to SS&C Technologies, Inc.’s Quarterly Report on Form 10-Q for the quarterly period ended March 31, 2005 (File No. 000-28430) | ||
10 | .19 | Compromise Agreement, dated as of October 31, 2006, between Kevin Milne and SS&C Technologies Limited is incorporated herein by reference to SS&C Technologies, Inc.’s Annual Report on Form 10-K for the year ended December 31, 2006 (File No. 000-28430) | ||
10 | .20 | Description of Executive Officer Compensation Arrangements is incorporated herein by reference to Item 5.02 of SS&C Technologies, Inc.’s Current Report on Form 8-K, filed on March 16, 2007 (File No. 000-28430) | ||
10 | .21 | Lease Agreement, dated September 23, 1997, by and between SS&C Technologies, Inc. and Monarch Life Insurance Company, as amended by First Amendment to Lease dated as of November 18, 1997, is incorporated herein by reference to Exhibit 10.15 to SS&C Technologies, Inc.’s Annual Report on Form 10-K for the year ended December 31, 1997 (File No. 000-28430) | ||
10 | .22 | Second Amendment to Lease, dated as of April 1999, between SS&C Technologies, Inc. and New Boston Lamberton Limited Partnership is incorporated herein by reference to Exhibit 10.12 to SS&C Technologies, Inc.’s Annual Report on Form 10-K for the year ended December 31, 2004 (File No. 000-28430) (the “2004 10-K”) | ||
10 | .23 | Third Amendment to Lease, effective as of July 1, 1999, between SS&C Technologies, Inc. and New Boston Lamberton Limited Partnership is incorporated herein by reference to Exhibit 10.13 to the 2004 10-K | ||
10 | .24 | Fourth Amendment to Lease, effective as of June 7, 2005, between SS&C Technologies, Inc. and New Boston Lamberton Limited Partnership, is incorporated herein by reference to Exhibit 10.5 to SS&C Technologies, Inc.’s Quarterly Report on Form 10-Q for the quarterly period ended June 30, 2005 (File No. 000-28430) (the “Q2 2005 10-Q”) | ||
10 | .25** | Fifth Amendment to Lease, dated as of November 1, 2006, by and between SS&C Technologies, Inc. and New Boston Lamberton Limited Partnership | ||
10 | .26 | Lease Agreement, dated January 6, 1998, by and between Financial Models Company Inc. and Polaris Realty (Canada) Limited, as amended by First Amendment of Lease, dated as of June 24, 1998, and as amended by Second Lease Amending Agreement, dated as of November 13, 1998, is incorporated herein by reference to Exhibit 10.6 to the Q2 2005 10-Q |
Number | Description | |||
10 | .9 | SS&C Technologies, Inc. Management Rights Agreement, dated as of November 23, 2005, by and among Carlyle Partners IV, L.P., CP IV Coinvestment, L.P., the Registrant and SS&C Technologies, Inc. is incorporated herein by reference to Exhibit 10.9 to the Form S-4 | ||
10 | .10 | 1998 Stock Incentive Plan, including form of stock option agreement, is incorporated herein by reference to Exhibit 10.10 to the Form S-4 | ||
10 | .11 | 1999 Non-Officer Employee Stock Incentive Plan, including form of stock option agreement, is incorporated herein by reference to Exhibit 10.11 to the Form S-4 | ||
10 | .12 | Form of Option Assumption Notice for 1998 Stock Incentive Plan and 1999 Non-Officer Employee Stock Incentive Plan is incorporated herein by reference to Exhibit 10.12 to the Form S-4 | ||
10 | .13 | 2006 Equity Incentive Plan is incorporated herein by reference to Exhibit 10.1 to SS&C Technologies, Inc.’s Current Report onForm 8-K, filed on August 15, 2006 (FileNo. 333-135139) (the “August 15, 20068-K”) | ||
10 | .14 | Forms of 2006 Equity Incentive Plan Amended and Restated Stock Option Grant Notice and Amended and Restated Stock Option Agreement | ||
10 | .15 | Form of Dividend Equivalent Agreement is incorporated herein by reference to Exhibit 10.3 to the August 15, 20068-K | ||
10 | .16 | Form of Stock Award Agreement is incorporated herein by reference to Exhibit 10.4 to the August 15, 2006 8-K | ||
10 | .17 | Employment Agreement, dated as of November 23, 2005, by and between William C. Stone and the Registrant is incorporated herein by reference to Exhibit 10.13 to the Form S-4 | ||
10 | .18 | Description of Executive Officer Compensation Arrangements is incorporated herein by reference to Item 5.02 of SS&C Technologies, Inc.’s Current Report on Form 8-K, filed on March 18, 2008 (File No. 333-135139) | ||
10 | .19 | Lease Agreement, dated September 23, 1997, by and between SS&C Technologies, Inc. and Monarch Life Insurance Company, as amended by First Amendment to Lease dated as of November 18, 1997, is incorporated herein by reference to Exhibit 10.15 to SS&C Technologies, Inc.’s Annual Report on Form 10-K for the year ended December 31, 1997 (File No. 000-28430) | ||
10 | .20 | Second Amendment to Lease, dated as of April 1999, between SS&C Technologies, Inc. and New Boston Lamberton Limited Partnership is incorporated herein by reference to Exhibit 10.12 to SS&C Technologies, Inc.’s Annual Report on Form 10-K for the year ended December 31, 2004 (File No. 000-28430) (the “2004 10-K”) | ||
10 | .21 | Third Amendment to Lease, effective as of July 1, 1999, between SS&C Technologies, Inc. and New Boston Lamberton Limited Partnership is incorporated herein by reference to Exhibit 10.13 to the 2004 10-K | ||
10 | .22 | Fourth Amendment to Lease, effective as of June 7, 2005, between SS&C Technologies, Inc. and New Boston Lamberton Limited Partnership, is incorporated herein by reference to Exhibit 10.5 to SS&C Technologies, Inc.’s Quarterly Report on Form 10-Q for the quarterly period ended June 30, 2005 (File No. 000-28430) (the “Q2 2005 10-Q”) | ||
10 | .23 | First Amendment, dated as of March 6, 2007, to the Credit Agreement, dated as of November 23, 2005, among SS&C Technologies, Inc., SS&C Technologies Canada Corp., as CDN Borrower, the several banks and other financial institutions or entities from time to time parties to the Credit Agreement as lenders, Wachovia Bank, National Association, as Syndication Agent, JPMorgan Chase Bank, N.A., as administrative agent and JPMorgan Chase Bank, N.A., Toronto Branch, as Canadian Administrative Agent, is incorporated herein by reference to Exhibit 10.1 to SS&C Technologies, Inc.’s Current Report on Form 8-K, filed on March 9, 2007 (File No. 333-135139) | ||
10 | .24 | Lease Agreement, dated January 6, 1998, by and between Financial Models Company Inc. and Polaris Realty (Canada) Limited, as amended by First Amendment of Lease, dated as of June 24, 1998, and as amended by Second Lease Amending Agreement, dated as of November 13, 1998, is incorporated herein by reference to Exhibit 10.6 to the Q2 2005 10-Q | ||
10 | .25* | Fifth Amendment to Lease, dated as of November 1, 2006, by and between SS&C Technologies, Inc. and New Boston Lamberton Limited Partnership |
II-5
Number | Description | |||
10 | .27 | First Amendment, dated as of March 6, 2007, to the Credit Agreement, dated as of November 23, 2005, among SS&C Technologies, Inc., SS&C Technologies Canada Corp., as CDN Borrower, the several banks and other financial institutions or entities from time to time parties to the Credit Agreement as lenders, Wachovia Bank, National Association, as Syndication Agent, JPMorgan Chase Bank, N.A., as administrative agent and JPMorgan Chase Bank, N.A., Toronto Branch, as Canadian Administrative Agent, is incorporated herein by reference to Exhibit 10.1 to SS&C Technologies, Inc.’s Current Report on Form 8-K, filed on March 9, 2007 (File No. 000-28430) | ||
21 | ** | Subsidiaries of the Registrant | ||
23 | .1* | Consent of Wilmer Cutler Pickering Hale and Dorr LLP (included in Exhibit 5.1) | ||
23 | .2 | Consents of PricewaterhouseCoopers LLP | ||
24 | ** | Powers of Attorney (included in the signature pages to this registration statement) | ||
99 | .1** | Consent of Kenneth Daly |
Number | Description | |||
10 | .26 | 2008 Stock Incentive Plan | ||
10 | .27 | Form of 2008 Stock Incentive Plan Stock Option Grant Notice and Stock Option Agreement | ||
10 | .28 | Amendment No. 1, dated April 22, 2008, to the Stockholders Agreement dated as of November 23, 2005, by and among the Registrant, Carlyle Partners IV, L.P., CP IV Coinvestment, L.P. and William C. Stone | ||
10 | .29 | Amendment No. 1, dated April 22, 2008, to the Service Provider Stockholders Agreement dated as of November 23, 2005, by and among the Registrant, Carlyle Partners IV, L.P. and CP IV Coinvestment, L.P. | ||
10 | .30 | Amendment No. 1, dated April 22, 2008, to the Management Agreement dated as of November 23, 2005, by and among the Registrant, William C. Stone and TC Group, L.L.C. | ||
21 | Subsidiaries of the Registrant | |||
23 | .1** | Consent of Wilmer Cutler Pickering Hale and Dorr LLP (included in Exhibit 5.1) | ||
23 | .2 | Consents of PricewaterhouseCoopers LLP | ||
24 | * | Powers of Attorney (included in the signature pages to this registration statement) | ||
99 | .1* | Consent of Kenneth Daly |
* |
** |
† | The Registrant hereby agrees to furnish supplementally a copy of any omitted schedules to this agreement to the Securities and Exchange Commission upon its request. |
Item 17. | Undertakings. |
II-6
By: | /s/ William C. Stone |
Signatures | Title | Date | ||||
/s/ William C. Stone William C. Stone | Chairman of the Board and Chief Executive Officer (Principal Executive Officer) | |||||
/s/ Patrick J. Pedonti Patrick J. Pedonti | Senior Vice President and Chief Financial Officer (Principal Financial and Accounting Officer) | |||||
* Normand A. Boulanger | Director | |||||
* William A. Etherington | Director | |||||
* Allan M. Holt | Director | |||||
* Todd R. Newnam | Director | |||||
* Claudius E. Watts IV | Director |
* By: | /s/ Patrick J. Pedonti |
II-7
Number | Description | |||
1 | .1* | Form of Underwriting Agreement | ||
2 | .1† | Acquisition Agreement, dated February 25, 2005, by and between SS&C Technologies, Inc. and Financial Models Company Inc. is incorporated herein by reference to Exhibit 2.1 to SS&C Technologies, Inc.’s Current Report on Form 8-K, filed on March 2, 2005 (File No. 000-28430) | ||
2 | .2† | Purchase Agreement, dated February 28, 2005, by and among SS&C Technologies, Inc., EisnerFast LLC and EHS, LLC is incorporated herein by reference to Exhibit 2.1 to SS&C Technologies, Inc.’s Current Report on Form 8-K, filed on March 3, 2005 (File No. 000-28430) | ||
2 | .3† | Agreement and Plan of Merger, dated as of July 28, 2005, by and among the Registrant, Sunshine Merger Corporation and SS&C Technologies, Inc. is incorporated herein by reference to Exhibit 2.1 to SS&C Technologies, Inc.’s Current Report on Form 8-K, filed on July 28, 2005 (File No. 000-28430) | ||
2 | .4† | Amendment No. 1 to Agreement and Plan of Merger, dated as of August 25, 2005, by among the Registrant, Sunshine Merger Corporation and SS&C Technologies, Inc. is incorporated herein by reference to Exhibit 2.1 to SS&C Technologies, Inc.’s Current Report on Form 8-K, filed on August 30, 2005 (File No. 000-28430) | ||
3 | .1* | Certificate of Incorporation of the Registrant, as amended | ||
3 | .2* | Bylaws of the Registrant, as amended | ||
3 | .3* | Form of Restated Certificate of Incorporation of the Registrant (to be effective upon the closing of this offering) | ||
3 | .4* | Form of Amended and Restated Bylaws of the Registrant (to be effective upon the closing of this offering) | ||
4 | .1 | Indenture, dated as of November 23, 2005, among Sunshine Acquisition II, Inc., SS&C Technologies, Inc., the Guarantors named on the signature pages thereto, and Wells Fargo Bank, National Association, as Trustee, relating to the 113/4% Senior Subordinated Notes due 2013, including the form of 113/4% Senior Subordinated Note due 2013, is incorporated herein by reference to Exhibit 4.1 to SS&C Technologies, Inc’s Registration Statement on Form S-4, as amended (File No. 333-135139) (the “Form S-4”) | ||
4 | .2 | First Supplemental Indenture, dated as of April 27, 2006, among Cogent Management Inc., SS&C Technologies, Inc. and Wells Fargo Bank, National Association, as Trustee, relating to the 113/4% Senior Subordinated Notes due 2013, is incorporated herein by reference to Exhibit 4.2 to the Form S-4 | ||
4 | .3 | Guarantee of 113/4% Senior Subordinated Notes due 2013 by Financial Models Company Ltd., Financial Models Holdings Inc., SS&C Fund Administration Services LLC, OMR Systems Corporation and Open Information Systems, Inc. is incorporated herein by reference to Exhibit 4.3 to the Form S-4 | ||
4 | .4 | Guarantee of 113/4% Senior Subordinated Notes due 2013 by Cogent Management Inc. is incorporated herein by reference to Exhibit 4.4 to the Form S-4 | ||
4 | .5 | Registration Rights Agreement, dated as of November 23, 2005, among Sunshine Acquisition II, Inc., SS&C Technologies, Inc. and the Guarantors named therein, as Issuers, and Wachovia Capital Markets, LLC, J.P. Morgan Securities Inc. and Banc of America Securities LLC, as Initial Purchasers, is incorporated herein by reference to Exhibit 4.5 to the Form S-4 | ||
4 | .6 | Purchase Agreement, dated as of November 17, 2005, between Sunshine Acquisition II, Inc. and the Initial Purchasers named in Schedule I thereto is incorporated herein by reference to Exhibit 4.6 to the Form S-4 | ||
4 | .7 | Joinder Agreement, dated as of November 23, 2005, executed by SS&C Technologies, Inc., Financial Models Company Ltd., Financial Models Holdings Inc., SS&C Fund Administration Services LLC, OMR Systems Corporation and Open Information Systems, Inc. is incorporated herein by reference to Exhibit 4.7 to the Form S-4 | ||
4 | .8 | Joinder Agreement, dated as of April 27, 2006, executed by Cogent Management Inc. is incorporated herein by reference to Exhibit 4.8 to the Form S-4 | ||
4 | .9** | Specimen certificate evidencing shares of common stock | ||
5 | .1* | Opinion of Wilmer Cutler Pickering Hale and Dorr LLP |
Number | Description | |||
10 | .1 | Credit Agreement, dated as of November 23, 2005, among Sunshine Acquisition II, Inc., SS&C Technologies, Inc., SS&C Technologies Canada Corp., the several lenders from time to time parties thereto, JPMorgan Chase Bank, N.A., as Administrative Agent, JPMorgan Chase Bank, N.A., Toronto Branch, as Canadian Administrative Agent, Wachovia Bank, National Association, as Syndication Agent, and Bank of America, N.A., as Documentation Agent, is incorporated herein by reference to Exhibit 10.1 to the Form S-4 | ||
10 | .2 | Guarantee and Collateral Agreement, dated as of November 23, 2005, made by the Registrant, Sunshine Acquisition II, Inc., SS&C Technologies, Inc. and certain of its subsidiaries in favor of JPMorgan Chase Bank, N.A., as Administrative Agent, is incorporated herein by reference to Exhibit 10.2 to the Form S-4 | ||
10 | .3 | CDN Guarantee and Collateral Agreement, dated as of November 23, 2005, made by SS&C Technologies Canada Corp. and 3105198 Nova Scotia Company in favor of JPMorgan Chase Bank, N.A., Toronto Branch, as Canadian Administrative Agent, is incorporated herein by reference to Exhibit 10.3 to the Form S-4 | ||
10 | .4 | Assumption Agreement, dated as of April 27, 2006, made by Cogent Management Inc., in favor of JPMorgan Chase Bank, N.A., as Administrative Agent, is incorporated herein by reference to Exhibit 10.4 to the Form S-4 | ||
10 | .5 | Stockholders Agreement, dated as of November 23, 2005, by and among the Registrant, Carlyle Partners IV, L.P., CP IV Coinvestment, L.P., William C. Stone and Other Executive Stockholders (as defined therein) is incorporated herein by reference to Exhibit 10.5 to the Form S-4 | ||
10 | .6 | Registration Rights Agreement, dated as of November 23, 2005, by and among the Registrant, Carlyle Partners IV, L.P., CP IV Coinvestment, L.P., William C. Stone and Other Executive Investors (as defined therein) is incorporated herein by reference to Exhibit 10.6 to the Form S-4 | ||
10 | .7 | Form of Service Provider Stockholders Agreement by and among the Registrant, Carlyle Partners IV, L.P., CP IV Coinvestment, L.P. and the Service Provider Stockholders (as defined therein) is incorporated herein by reference to Exhibit 10.7 to the Form S-4 | ||
10 | .8 | Management Agreement, dated as of November 23, 2005, between the Registrant, William C. Stone and TC Group, L.L.C. is incorporated herein by reference to Exhibit 10.8 to the Form S-4 | ||
10 | .9 | SS&C Technologies, Inc. Management Rights Agreement, dated as of November 23, 2005, by and among Carlyle Partners IV, L.P., CP IV Coinvestment, L.P., the Registrant and SS&C Technologies, Inc. is incorporated herein by reference to Exhibit 10.9 to the Form S-4 | ||
10 | .10 | 1998 Stock Incentive Plan, including form of stock option agreement, is incorporated herein by reference to Exhibit 10.10 to the Form S-4 | ||
10 | .11 | 1999 Non-Officer Employee Stock Incentive Plan, including form of stock option agreement, is incorporated herein by reference to Exhibit 10.11 to the Form S-4 | ||
10 | .12 | Form of Option Assumption Notice for 1998 Stock Incentive Plan and 1999 Non-Officer Employee Stock Incentive Plan is incorporated herein by reference to Exhibit 10.12 to the Form S-4 | ||
10 | .13* | 2006 Equity Incentive Plan, as amended | ||
10 | .14* | Form of Stock Option Grant Notice and Stock Option Agreement | ||
10 | .15 | Form of Dividend Equivalent Agreement is incorporated herein by reference to Exhibit 10.3 to SS&C Technologies, Inc.’s Current Report on Form 8-K, filed on August 15, 2006(File No. 000-28430) (the “August 15, 2006 8-K”) | ||
10 | .16 | Form of Stock Award Agreement is incorporated herein by reference to Exhibit 10.4 to the August 15, 2006 8-K | ||
10 | .17 | Employment Agreement, dated as of November 23, 2005, by and between William C. Stone and the Registrant is incorporated herein by reference to Exhibit 10.13 to the Form S-4 | ||
10 | .18 | Contract of Employment between Kevin Milne and SS&C Technologies, Inc., effective as of June 9, 2004, is incorporated herein by reference to Exhibit 10.4 to SS&C Technologies, Inc.’s Quarterly Report on Form 10-Q for the quarterly period ended March 31, 2005 (File No. 000-28430) | ||
10 | .19 | Compromise Agreement, dated as of October 31, 2006, between Kevin Milne and SS&C Technologies Limited is incorporated herein by reference to SS&C Technologies, Inc.’s Annual Report on Form 10-K for the year ended December 31, 2006 (File No. 000-28430) |
Number | Description | |||
1 | .1 | Form of Underwriting Agreement | ||
2 | .1† | Acquisition Agreement, dated February 25, 2005, by and between SS&C Technologies, Inc. and Financial Models Company Inc. is incorporated herein by reference to Exhibit 2.1 to SS&C Technologies, Inc.’s Current Report on Form 8-K, filed on March 2, 2005 (File No. 000-28430) | ||
2 | .2† | Purchase Agreement, dated February 28, 2005, by and among SS&C Technologies, Inc., EisnerFast LLC and EHS, LLC is incorporated herein by reference to Exhibit 2.1 to SS&C Technologies, Inc.’s Current Report on Form 8-K, filed on March 3, 2005 (File No. 000-28430) | ||
2 | .3† | Agreement and Plan of Merger, dated as of July 28, 2005, by and among the Registrant, Sunshine Merger Corporation and SS&C Technologies, Inc. is incorporated herein by reference to Exhibit 2.1 to SS&C Technologies, Inc.’s Current Report on Form 8-K, filed on July 28, 2005 (File No. 000-28430) | ||
2 | .4† | Amendment No. 1 to Agreement and Plan of Merger, dated as of August 25, 2005, by among the Registrant, Sunshine Merger Corporation and SS&C Technologies, Inc. is incorporated herein by reference to Exhibit 2.1 to SS&C Technologies, Inc.’s Current Report on Form 8-K, filed on August 30, 2005 (File No. 000-28430) | ||
3 | .1 | Certificate of Incorporation of the Registrant, as amended | ||
3 | .2 | Bylaws of the Registrant, as amended | ||
3 | .3 | Form of Restated Certificate of Incorporation of the Registrant (to be effective upon the closing of this offering) | ||
3 | .4 | Form of Amended and Restated Bylaws of the Registrant (to be effective upon the closing of this offering) | ||
4 | .1 | Indenture, dated as of November 23, 2005, among Sunshine Acquisition II, Inc., SS&C Technologies, Inc., the Guarantors named on the signature pages thereto, and Wells Fargo Bank, National Association, as Trustee, relating to the 113/4% Senior Subordinated Notes due 2013, including the form of 113/4% Senior Subordinated Note due 2013, is incorporated herein by reference to Exhibit 4.1 to SS&C Technologies, Inc’s Registration Statement on Form S-4, as amended (File No. 333-135139) (the “Form S-4”) | ||
4 | .2 | First Supplemental Indenture, dated as of April 27, 2006, among Cogent Management Inc., SS&C Technologies, Inc. and Wells Fargo Bank, National Association, as Trustee, relating to the 113/4% Senior Subordinated Notes due 2013, is incorporated herein by reference to Exhibit 4.2 to the Form S-4 | ||
4 | .3 | Guarantee of 113/4% Senior Subordinated Notes due 2013 by Financial Models Company Ltd., Financial Models Holdings Inc., SS&C Fund Administration Services LLC, OMR Systems Corporation and Open Information Systems, Inc. is incorporated herein by reference to Exhibit 4.3 to the Form S-4 | ||
4 | .4 | Guarantee of 113/4% Senior Subordinated Notes due 2013 by Cogent Management Inc. is incorporated herein by reference to Exhibit 4.4 to the Form S-4 | ||
4 | .5 | Registration Rights Agreement, dated as of November 23, 2005, among Sunshine Acquisition II, Inc., SS&C Technologies, Inc. and the Guarantors named therein, as Issuers, and Wachovia Capital Markets, LLC, J.P. Morgan Securities Inc. and Banc of America Securities LLC, as Initial Purchasers, is incorporated herein by reference to Exhibit 4.5 to the Form S-4 | ||
4 | .6 | Purchase Agreement, dated as of November 17, 2005, between Sunshine Acquisition II, Inc. and the Initial Purchasers named in Schedule I thereto is incorporated herein by reference to Exhibit 4.6 to the Form S-4 | ||
4 | .7 | Joinder Agreement, dated as of November 23, 2005, executed by SS&C Technologies, Inc., Financial Models Company Ltd., Financial Models Holdings Inc., SS&C Fund Administration Services LLC, OMR Systems Corporation and Open Information Systems, Inc. is incorporated herein by reference to Exhibit 4.7 to the Form S-4 | ||
4 | .8 | Joinder Agreement, dated as of April 27, 2006, executed by Cogent Management Inc. is incorporated herein by reference to Exhibit 4.8 to the Form S-4 | ||
4 | .9* | Specimen certificate evidencing shares of common stock | ||
5 | .1** | Opinion of Wilmer Cutler Pickering Hale and Dorr LLP |
Number | Description | |||
10 | .20 | Description of Executive Officer Compensation Arrangements is incorporated herein by reference to Item 5.02 of SS&C Technologies, Inc.’s Current Report on Form 8-K, filed on March 16, 2007 (File No. 000-28430) | ||
10 | .21 | Lease Agreement, dated September 23, 1997, by and between SS&C Technologies, Inc. and Monarch Life Insurance Company, as amended by First Amendment to Lease dated as of November 18, 1997, is incorporated herein by reference to Exhibit 10.15 to SS&C Technologies, Inc.’s Annual Report on Form 10-K for the year ended December 31, 1997 (File No. 000-28430) | ||
10 | .22 | Second Amendment to Lease, dated as of April 1999, between SS&C Technologies, Inc. and New Boston Lamberton Limited Partnership is incorporated herein by reference to Exhibit 10.12 to SS&C Technologies, Inc.’s Annual Report on Form 10-K for the year ended December 31, 2004 (File No. 000-28430) (the “2004 10-K”) | ||
10 | .23 | Third Amendment to Lease, effective as of July 1, 1999, between SS&C Technologies, Inc. and New Boston Lamberton Limited Partnership is incorporated herein by reference to Exhibit 10.13 to the 2004 10-K | ||
10 | .24 | Fourth Amendment to Lease, effective as of June 7, 2005, between SS&C Technologies, Inc. and New Boston Lamberton Limited Partnership, is incorporated herein by reference to Exhibit 10.5 to SS&C Technologies, Inc.’s Quarterly Report on Form 10-Q for the quarterly period ended June 30, 2005 (File No. 000-28430) (the “Q2 2005 10-Q”) | ||
10 | .25** | Fifth Amendment to Lease, dated as of November 1, 2006, by and between SS&C Technologies, Inc. and New Boston Lamberton Limited Partnership | ||
10 | .26 | Lease Agreement, dated January 6, 1998, by and between Financial Models Company Inc. and Polaris Realty (Canada) Limited, as amended by First Amendment of Lease, dated as of June 24, 1998, and as amended by Second Lease Amending Agreement, dated as of November 13, 1998, is incorporated herein by reference to Exhibit 10.6 to the Q2 2005 10-Q | ||
10 | .27 | First Amendment, dated as of March 6, 2007, to the Credit Agreement, dated as of November 23, 2005, among SS&C Technologies, Inc., SS&C Technologies Canada Corp., as CDN Borrower, the several banks and other financial institutions or entities from time to time parties to the Credit Agreement as lenders, Wachovia Bank, National Association, as Syndication Agent, JPMorgan Chase Bank, N.A., as administrative agent and JPMorgan Chase Bank, N.A., Toronto Branch, as Canadian Administrative Agent, is incorporated herein by reference to Exhibit 10.1 to SS&C Technologies, Inc.’s Current Report on Form 8-K, filed on March 9, 2007 (File No. 000-28430) | ||
21 | ** | Subsidiaries of the Registrant | ||
23 | .1* | Consent of Wilmer Cutler Pickering Hale and Dorr LLP (included in Exhibit 5.1) | ||
23 | .2 | Consents of PricewaterhouseCoopers LLP | ||
24 | ** | Powers of Attorney (included in the signature pages to this registration statement) | ||
99 | .1** | Consent of Kenneth Daly |
Number | Description | |||
10 | .1 | Credit Agreement, dated as of November 23, 2005, among Sunshine Acquisition II, Inc., SS&C Technologies, Inc., SS&C Technologies Canada Corp., the several lenders from time to time parties thereto, JPMorgan Chase Bank, N.A., as Administrative Agent, JPMorgan Chase Bank, N.A., Toronto Branch, as Canadian Administrative Agent, Wachovia Bank, National Association, as Syndication Agent, and Bank of America, N.A., as Documentation Agent, is incorporated herein by reference to Exhibit 10.1 to the Form S-4 | ||
10 | .2 | Guarantee and Collateral Agreement, dated as of November 23, 2005, made by the Registrant, Sunshine Acquisition II, Inc., SS&C Technologies, Inc. and certain of its subsidiaries in favor of JPMorgan Chase Bank, N.A., as Administrative Agent, is incorporated herein by reference to Exhibit 10.2 to the Form S-4 | ||
10 | .3 | CDN Guarantee and Collateral Agreement, dated as of November 23, 2005, made by SS&C Technologies Canada Corp. and 3105198 Nova Scotia Company in favor of JPMorgan Chase Bank, N.A., Toronto Branch, as Canadian Administrative Agent, is incorporated herein by reference to Exhibit 10.3 to the Form S-4 | ||
10 | .4 | Assumption Agreement, dated as of April 27, 2006, made by Cogent Management Inc., in favor of JPMorgan Chase Bank, N.A., as Administrative Agent, is incorporated herein by reference to Exhibit 10.4 to the Form S-4 | ||
10 | .5 | Stockholders Agreement, dated as of November 23, 2005, by and among the Registrant, Carlyle Partners IV, L.P., CP IV Coinvestment, L.P., William C. Stone and Other Executive Stockholders (as defined therein) is incorporated herein by reference to Exhibit 10.5 to the Form S-4 | ||
10 | .6 | Registration Rights Agreement, dated as of November 23, 2005, by and among the Registrant, Carlyle Partners IV, L.P., CP IV Coinvestment, L.P., William C. Stone and Other Executive Investors (as defined therein) is incorporated herein by reference to Exhibit 10.6 to the Form S-4 | ||
10 | .7 | Form of Service Provider Stockholders Agreement by and among the Registrant, Carlyle Partners IV, L.P., CP IV Coinvestment, L.P. and the Service Provider Stockholders (as defined therein) is incorporated herein by reference to Exhibit 10.7 to the Form S-4 | ||
10 | .8 | Management Agreement, dated as of November 23, 2005, between the Registrant, William C. Stone and TC Group, L.L.C. is incorporated herein by reference to Exhibit 10.8 to the Form S-4 | ||
10 | .9 | SS&C Technologies, Inc. Management Rights Agreement, dated as of November 23, 2005, by and among Carlyle Partners IV, L.P., CP IV Coinvestment, L.P., the Registrant and SS&C Technologies, Inc. is incorporated herein by reference to Exhibit 10.9 to the Form S-4 | ||
10 | .10 | 1998 Stock Incentive Plan, including form of stock option agreement, is incorporated herein by reference to Exhibit 10.10 to the Form S-4 | ||
10 | .11 | 1999 Non-Officer Employee Stock Incentive Plan, including form of stock option agreement, is incorporated herein by reference to Exhibit 10.11 to the Form S-4 | ||
10 | .12 | Form of Option Assumption Notice for 1998 Stock Incentive Plan and 1999 Non-Officer Employee Stock Incentive Plan is incorporated herein by reference to Exhibit 10.12 to the Form S-4 | ||
10 | .13 | 2006 Equity Incentive Plan is incorporated herein by reference to Exhibit 10.1 to SS&C Technologies, Inc.’s Current Report onForm 8-K, filed on August 15, 2006 (FileNo. 333-135139) (the “August 15, 20068-K”) | ||
10 | .14 | Forms of 2006 Equity Incentive Plan Amended and Restated Stock Option Grant Notice and Amended and Restated Stock Option Agreement | ||
10 | .15 | Form of Dividend Equivalent Agreement is incorporated herein by reference to Exhibit 10.3 to the August 15, 20068-K | ||
10 | .16 | Form of Stock Award Agreement is incorporated herein by reference to Exhibit 10.4 to the August 15, 2006 8-K | ||
10 | .17 | Employment Agreement, dated as of November 23, 2005, by and between William C. Stone and the Registrant is incorporated herein by reference to Exhibit 10.13 to the Form S-4 | ||
10 | .18 | Description of Executive Officer Compensation Arrangements is incorporated herein by reference to Item 5.02 of SS&C Technologies, Inc.’s Current Report on Form 8-K, filed on March 18, 2008 (File No. 333-135139) |
Number | Description | |||
10 | .19 | Lease Agreement, dated September 23, 1997, by and between SS&C Technologies, Inc. and Monarch Life Insurance Company, as amended by First Amendment to Lease dated as of November 18, 1997, is incorporated herein by reference to Exhibit 10.15 to SS&C Technologies, Inc.’s Annual Report on Form 10-K for the year ended December 31, 1997 (File No. 000-28430) | ||
10 | .20 | Second Amendment to Lease, dated as of April 1999, between SS&C Technologies, Inc. and New Boston Lamberton Limited Partnership is incorporated herein by reference to Exhibit 10.12 to SS&C Technologies, Inc.’s Annual Report on Form 10-K for the year ended December 31, 2004 (File No. 000-28430) (the “2004 10-K”) | ||
10 | .21 | Third Amendment to Lease, effective as of July 1, 1999, between SS&C Technologies, Inc. and New Boston Lamberton Limited Partnership is incorporated herein by reference to Exhibit 10.13 to the 2004 10-K | ||
10 | .22 | Fourth Amendment to Lease, effective as of June 7, 2005, between SS&C Technologies, Inc. and New Boston Lamberton Limited Partnership, is incorporated herein by reference to Exhibit 10.5 to SS&C Technologies, Inc.’s Quarterly Report on Form 10-Q for the quarterly period ended June 30, 2005 (File No. 000-28430) (the “Q2 2005 10-Q”) | ||
10 | .23 | First Amendment, dated as of March 6, 2007, to the Credit Agreement, dated as of November 23, 2005, among SS&C Technologies, Inc., SS&C Technologies Canada Corp., as CDN Borrower, the several banks and other financial institutions or entities from time to time parties to the Credit Agreement as lenders, Wachovia Bank, National Association, as Syndication Agent, JPMorgan Chase Bank, N.A., as administrative agent and JPMorgan Chase Bank, N.A., Toronto Branch, as Canadian Administrative Agent, is incorporated herein by reference to Exhibit 10.1 to SS&C Technologies, Inc.’s Current Report on Form 8-K, filed on March 9, 2007 (File No. 333-135139) | ||
10 | .24 | Lease Agreement, dated January 6, 1998, by and between Financial Models Company Inc. and Polaris Realty (Canada) Limited, as amended by First Amendment of Lease, dated as of June 24, 1998, and as amended by Second Lease Amending Agreement, dated as of November 13, 1998, is incorporated herein by reference to Exhibit 10.6 to the Q2 2005 10-Q | ||
10 | .25* | Fifth Amendment to Lease, dated as of November 1, 2006, by and between SS&C Technologies, Inc. and New Boston Lamberton Limited Partnership | ||
10 | .26 | 2008 Stock Incentive Plan | ||
10 | .27 | Form of 2008 Stock Incentive Plan Stock Option Grant Notice and Stock Option Agreement | ||
10 | .28 | Amendment No. 1, dated April 22, 2008, to the Stockholders Agreement dated as of November 23, 2005, by and among the Registrant, Carlyle Partners IV, L.P., CP IV Coinvestment, L.P. and William C. Stone | ||
10 | .29 | Amendment No. 1, dated April 22, 2008, to the Service Provider Stockholders Agreement dated as of November 23, 2005, by and among the Registrant, Carlyle Partners IV, L.P. and CP IV Coinvestment, L.P. | ||
10 | .30 | Amendment No. 1, dated April 22, 2008, to the Management Agreement dated as of November 23, 2005, by and among the Registrant, William C. Stone and TC Group, L.L.C. | ||
21 | Subsidiaries of the Registrant | |||
23 | .1** | Consent of Wilmer Cutler Pickering Hale and Dorr LLP (included in Exhibit 5.1) | ||
23 | .2 | Consents of PricewaterhouseCoopers LLP | ||
24 | * | Powers of Attorney (included in the signature pages to this registration statement) | ||
99 | .1* | Consent of Kenneth Daly |
* |
** |
† | The Registrant hereby agrees to furnish supplementally a copy of any omitted schedules to this agreement to the Securities and Exchange Commission upon its request. |