DST SYSTEMS, INC. KANSAS CITY, Mo., Jan. 26, 2017 /PRNewswire/ -- DST Systems, Inc. (NYSE: DST) reported consolidated net income attributable to DST of $59.9 million ($1.84 per diluted share) for the fourth quarter 2016 compared to $67.8 million ($1.94 per diluted share) for the fourth quarter 2015. Net income attributable to DST for the year ended December 31, 2016 was $444.3 million ($13.33 per diluted share) compared to $358.2 million ($9.83 per diluted share) for the year ended December 31, 2015.
Income from continuing operations attributable to DST Systems, Inc. ("DST Earnings"), which excludes discontinued operations, was $54.6 million ($1.68 per diluted share) for the fourth quarter 2016 compared to $55.0 million ($1.57 per diluted share) for the fourth quarter 2015. DST Earnings for the year ended December 31, 2016 was $179.0 million ($5.37 per diluted share) compared to $309.7 million ($8.50 per diluted share) for the year ended December 31, 2015.
Taking into account certain non-GAAP adjustments, adjusted DST Earnings were $53.9 million ($1.66 per diluted share) for fourth quarter 2016 compared to $48.9 million ($1.40 per diluted share) for fourth quarter 2015, and $190.9 million ($5.73 per diluted share) for the year ended December 31, 2016 compared to $179.8 million ($4.93 per diluted share) for the year ended December 31, 2015.
"We are very pleased with our fourth quarter results which demonstrate the capability and dedication of our teams around the world to operate in a challenging environment and still deliver excellent results for our clients and our shareholders. We generated positive operating results during the quarter with growth and expanded margins in both our healthcare and financial services segments," said Steve Hooley, Chairman, CEO and President of DST. "We are encouraged by the expansion of highly-valued services we are able to provide our clients while improving overall profitability as we implement operational enhancements."
Consolidated Financial Highlights
Operating Results
Fourth quarter 2016 diluted earnings per share from continuing operations, after non-GAAP adjustments, was $1.66, an increase of $0.26 or 18.6% from fourth quarter 2015. Significant items impacting the quarterly results include the following:
-- Consolidated operating revenues (excluding out-of-pocket reimbursements)
increased $11.4 million or 3.1% to $373.7 million as compared to fourth
quarter 2015, primarily due to new and existing client growth within our
Healthcare Services segment.
-- Consolidated operating income increased $11.9 million or 16.7% to $83.2
million as compared to fourth quarter 2015. The increase in operating
income is primarily due to growth within our Healthcare Services segment
as well as $5.1 million lower stock compensation expense as certain
performance-based stock units ("PSU") are no longer expected to vest.
-- Equity in earnings of unconsolidated affiliates decreased $2.9 million
to $3.3 million as compared to fourth quarter 2015, primarily from lower
earnings from IFDS.
-- Weighted average diluted shares outstanding for fourth quarter 2016 were
32.5 million, a decrease of 2.5 million shares or 7.1% from fourth
quarter 2015, primarily as a result of share repurchases.
Share Repurchase and Dividend Activity
-- During the fourth quarter 2016, the Company repurchased approximately
675,000 shares of DST common stock for $75.0 million. Through January
25, 2017, approximately 425,000 shares of DST common stock were
repurchased for approximately $47.0 million, resulting in $103.0 million
remaining under the existing share repurchase plan.
-- On January 25, 2017, the Board of Directors of DST declared a quarterly
cash dividend of $0.35 per share on its common stock, an increase of
$0.02 per share or 6.0% as compared to the prior quarterly dividends
paid in 2016. The dividend is payable on March 10, 2017, to shareholders
of record at close of business on February 24, 2017.
Detailed Review of Financial Results
The following discussion of financial results takes into account the non-GAAP adjustments described in the section entitled "Use of Non-GAAP Financial Information" and detailed in the attached schedule titled "Reconciliation of Reported Results to Non-GAAP Results."
Segment Results
Financial Services Segment
Operating revenues for the Financial Services segment (excluding out-of-pocket reimbursements) remained relatively flat for fourth quarter 2016 at $272.7 million as compared to $272.6 million for fourth quarter 2015. The operating revenue increase of $0.1 million is primarily driven from the businesses acquired during 2016, which contributed $6.2 million of incremental operating revenues during the fourth quarter 2016, as well as increased professional services revenues associated with our wealth management platform business. These increases were largely offset by lower revenue due to the previously announced extension of certain long-term contracts with lower pricing and a decline in mutual fund registered shareowner account processing revenue due to lower registered accounts, primarily as a result of subaccounting conversions. Software license revenues of $8.4 million in fourth quarter 2016 were also $0.3 million lower as compared to fourth quarter 2015.
Financial Services segment operating income increased $4.8 million or 8.9% during fourth quarter 2016 to $58.6 million as compared to fourth quarter 2015. The increase in operating income is primarily due to cost savings resulting from previously implemented restructuring and other cost containment initiatives as well as a $4.0 million reduction of stock compensation expense as certain PSUs are no longer expected to vest, partially offset by the acceleration of depreciation on certain capitalized software in fourth quarter 2016. Operating margin for fourth quarter 2016 was 21.5% as compared to 19.7% in 2015.
Healthcare Services Segment
Healthcare Services segment operating revenues (excluding out-of-pocket reimbursements) increased $13.5 million or 13.7% during fourth quarter 2016 to $111.9 million as compared to fourth quarter 2015. The increase is primarily attributable to organic growth and expansion of the high-value services we are offering to existing clients in both the medical and pharmacy businesses, new medical claims processing clients implemented during 2016, as well as a $0.7 million increase from higher software license revenue in fourth quarter 2016 as compared to fourth quarter 2015.
Healthcare Services segment operating income increased $7.7 million or 44.3% during fourth quarter 2016 to $25.1 million, primarily due to higher revenues and margin expansion as well as a $1.1 million reduction of stock compensation expense as certain PSUs are no longer expected to vest. While costs and expenses increased from higher staffing costs associated with supporting the new and existing client growth, enhanced economies of scale were achieved as incremental volumes were processed. Additionally, costs and expenses associated with implementing new clients were lower in fourth quarter 2016, as compared to fourth quarter 2015. Operating margin for fourth quarter 2016 was 22.4% as compared to 17.7% in the fourth quarter 2015.
Other Financial Results
Equity in earnings of unconsolidated affiliates
The following table summarizes the Company's equity in earnings of unconsolidated affiliates (in millions):
Three Months Ended Year Ended
December 31, December 31,
------------ ------------
2016 2015 2016 2015
---- ---- ---- ----
IFDS $0.1 $4.3 $12.2 $29.9
BFDS 2.8 1.4 8.3 5.3
Other 0.4 0.5 6.7 6.6
--- ---
$3.3 $6.2 $27.2 $41.8
DST's equity in earnings of unconsolidated affiliates decreased primarily from lower earnings at IFDS partially offset by higher BFDS earnings. The decrease in IFDS equity in earnings from fourth quarter 2015 is primarily the result of lower revenues recognized related to the ongoing client conversion activities and higher operating costs as IFDS expands its infrastructure to address increasing regulatory, compliance and security needs. The decline is also attributable in part to a realignment of certain product and service offerings within the European market resulting in exit costs. The increased earnings at BFDS is primarily related to higher revenues.
Use of Non-GAAP Financial Information
In addition to reporting financial information on a GAAP basis, DST has disclosed non-GAAP financial information which has been reconciled to the corresponding GAAP measures in the following financial schedules titled "Reconciliation of Reported Results to Non-GAAP Results." In making these adjustments to determine the non-GAAP results, the Company takes into account the impact of items that are not necessarily ongoing in nature, that do not have a high level of predictability associated with them or that are non-operational in nature. Generally, these items include net gains on dispositions of business units, net gains (losses) associated with securities and other investments, restructuring and impairment costs and other similar items. Beginning in first quarter 2016, we have also included acquired intangible asset amortization. Management believes the exclusion of these items provides a useful basis for evaluating underlying business unit performance, but should not be considered in isolation and is not in accordance with, or a substitute for, evaluating business unit performance utilizing GAAP financial information. Management uses non-GAAP measures in its budgeting and forecasting processes and to further analyze its financial trends and "operational run-rate," as well as making financial comparisons to prior periods presented on a similar basis. The Company believes that providing such adjusted results allows investors and other users of DST's financial statements to better understand DST's comparative operating performance for the periods presented.
DST's management uses each of these non-GAAP financial measures in its own evaluation of the Company's performance, particularly when comparing performance to past periods. DST's non-GAAP measures may differ from similar measures by other companies, even if similar terms are used to identify such measures. Although DST's management believes non-GAAP measures are useful in evaluating the performance of its business, DST acknowledges that items excluded from such measures may have a material impact on the Company's financial information calculated in accordance with GAAP. Therefore, management typically uses non-GAAP measures in conjunction with GAAP results. These factors should be considered when evaluating DST's results.
Safe Harbor Statement
Certain material presented in the press release includes forward-looking statements intended to qualify for the safe harbor from liability established by the Private Securities Litigation Reform Act of 1995. These forward-looking statements include, but are not limited to, (i) all statements, other than statements of historical fact, included in this press release that address activities, events or developments that we expect or anticipate will or may occur in the future or that depend on future events, or (ii) statements about our future business plans and strategy and other statements that describe the Company's outlook, objectives, plans, intentions or goals, and any discussion of future operating or financial performance. Whenever used, words such as "may," "will," "would," "should," "potential," "strategy," "anticipates," "estimates," "expects," "project," "predict," "intends," "plans," "believes," "targets" and other terms of similar meaning are intended to identify such forward-looking statements. Forward-looking statements are uncertain and to some extent unpredictable, and involve known and unknown risks, uncertainties and other important factors that could cause actual results to differ materially from those expressed or implied in, or reasonably inferred from, such forward-looking statements. Factors that could cause results to differ materially from those anticipated include, but are not limited to, the risk factors and cautionary statements included in the Company's periodic and current reports (Forms 10-K, 10-Q and 8-K) filed from time to time with the Securities and Exchange Commission. All such factors should be considered in evaluating any forward-looking statements. The Company undertakes no obligation to update any forward-looking statements in this press release to reflect new information, future events or otherwise.
DST SYSTEMS, INC.
CONDENSED CONSOLIDATED STATEMENT OF INCOME
(In millions, except per share amounts)
(Unaudited)
Three Months Ended Year Ended
December 31, December 31,
------------ ------------
2016 2015 2016 2015
---- ---- ---- ----
Operating revenues $373.7 $362.3 $1,474.4 $1,405.0
Out-of-pocket reimbursements 25.1 20.9 82.3 69.0
---- ---- ---- ----
Total revenues 398.8 383.2 1,556.7 1,474.0
Costs and expenses 296.5 295.9 1,213.4 1,150.2
Depreciation and amortization 26.9 25.1 96.0 91.1
---- ---- ---- ----
Operating income 75.4 62.2 247.3 232.7
Interest expense (5.5) (6.1) (23.5) (23.8)
Other income, net 8.2 14.6 28.2 204.5
Equity in earnings of unconsolidated affiliates 3.3 6.2 27.2 45.4
--- --- ---- ----
Income from continuing operations before income taxes and non-controlling interest 81.4 76.9 279.2 458.8
Income taxes 27.3 22.0 101.1 149.2
---- ---- ----- -----
Income from continuing operations before non-controlling interest 54.1 54.9 178.1 309.6
Income from discontinued operations, net of tax 5.3 12.8 265.3 48.5
--- ---- ----- ----
Net income 59.4 67.7 443.4 358.1
Net loss attributable to non-controlling interest 0.5 0.1 0.9 0.1
--- --- --- ---
Net income attributable to DST Systems, Inc. $59.9 $67.8 $444.3 $358.2
===== ===== ====== ======
Weighted average common shares outstanding 32.1 34.5 33.0 36.0
Weighted average diluted shares outstanding 32.5 35.0 33.3 36.4
Basic earnings per share:
Continuing operations attributable to DST Systems, Inc. $1.70 $1.59 $5.43 $8.60
Discontinued operations 0.16 0.37 8.04 1.35
Basic earnings per share $1.86 $1.96 $13.47 $9.95
===== ===== ====== =====
Diluted earnings per share:
Continuing operations attributable to DST Systems, Inc. $1.68 $1.57 $5.37 $8.50
Discontinued operations 0.16 0.37 7.96 1.33
Diluted earnings per share $1.84 $1.94 $13.33 $9.83
===== ===== ====== =====
Cash dividends per share of common stock $0.33 $0.30 $1.32 $1.20
DST SYSTEMS, INC.
SEGMENT FINANCIAL INFORMATION
(In millions) (Unaudited)
Three Months Ended December 31, 2016
------------------------------------
Financial Healthcare
Services Investments / Elimination Consolidated
Services Other Adjustments Total
-------- ----- ----------- -----
Operating revenues $261.7 $111.9 $0.1 $ - $373.7
Intersegment operating revenues 11.0 - - (11.0) -
Out-of-pocket reimbursements 22.9 2.2 - - 25.1
---- --- --- --- ----
Total revenues 295.6 114.1 0.1 (11.0) 398.8
Costs and expenses 219.9 87.0 0.6 (11.0) 296.5
Depreciation and amortization 23.3 3.6 - - 26.9
---- --- --- --- ----
Operating income (loss) $52.4 $23.5 $(0.5) $ - $75.4
===== ===== ===== === === =====
Capital expenditures $20.6 $1.6 $ - $ - $22.2
Three Months Ended December 31, 2015
------------------------------------
Financial Healthcare
Services Investments / Elimination Consolidated
Services Other Adjustments Total
-------- ----- ----------- -----
Operating revenues $263.1 $98.4 $0.8 $ - $362.3
Intersegment operating revenues 9.5 - - (9.5) -
Out-of-pocket reimbursements 18.8 2.3 - (0.2) 20.9
---- --- --- ---- ----
Total revenues 291.4 100.7 0.8 (9.7) 383.2
Costs and expenses 222.2 83.7 (0.3) (9.7) 295.9
Depreciation and amortization 20.2 4.6 0.3 - 25.1
---- --- --- --- ----
Operating income $49.0 $12.4 $0.8 $ - $62.2
===== ===== ==== === === =====
Capital expenditures $13.0 $0.6 $0.2 $ - $13.8
Year Ended December 31, 2016
----------------------------
Financial Healthcare
Services Investments / Elimination Consolidated
Services Other Adjustments Total
-------- ----- ----------- -----
Operating revenues $1,047.3 $426.2 $0.9 $ - $1,474.4
Intersegment operating revenues 42.9 - - (42.9) -
Out-of-pocket reimbursements 73.9 8.5 - (0.1) 82.3
---- --- --- ---- ----
Total revenues 1,164.1 434.7 0.9 (43.0) 1,556.7
Costs and expenses 908.3 345.1 3.0 (43.0) 1,213.4
Depreciation and amortization 79.7 15.6 0.7 - 96.0
---- ---- --- --- ----
Operating income (loss) $176.1 $74.0 $(2.8) $ - $247.3
====== ===== ===== === === ======
Capital expenditures $58.7 $5.4 $ - $ - $64.1
Year Ended December 31, 2015
----------------------------
Financial Healthcare
Services Investments / Elimination Consolidated
Services Other Adjustments Total
-------- ----- ----------- -----
Operating revenues $1,025.5 $376.4 $3.1 $ - $1,405.0
Intersegment operating revenues 38.3 - - (38.3) -
Out-of-pocket reimbursements 61.7 8.2 - (0.9) 69.0
---- --- --- ---- ----
Total revenues 1,125.5 384.6 3.1 (39.2) 1,474.0
Costs and expenses 869.8 321.3 (1.7) (39.2) 1,150.2
Depreciation and amortization 71.6 18.6 0.9 - 91.1
---- ---- --- --- ----
Operating income $184.1 $44.7 $3.9 $ - $232.7
====== ===== ==== === === ======
Capital expenditures $86.0 $6.1 $0.2 $ - $92.3
DST SYSTEMS, INC.
CONDENSED CONSOLIDATED BALANCE SHEET
(In millions)
(Unaudited)
December 31, December 31,
2016 2015
---- ----
Assets
Current assets
Cash and cash
equivalents $195.5 $79.5
Funds held on
behalf of
clients 500.5 480.2
Client funding
receivable 69.0 53.2
Accounts
receivable 215.5 214.8
Other assets 70.0 49.8
Current assets
held for sale 89.6 178.0
---- -----
1,140.1 1,055.5
Investments 377.4 418.2
Unconsolidated
affiliates 331.2 312.2
Properties,
net 235.7 256.7
Intangible
assets, net 142.6 135.8
Goodwill 516.4 458.3
Other assets 50.3 57.0
Noncurrent
assets held
for sale - 119.5
--- -----
Total assets $2,793.7 $2,813.2
======== ========
Liabilities
Current liabilities
Current
portion of
debt $208.5 $5.6
Client funds
obligations 569.5 533.4
Accounts
payable 62.9 51.2
Accrued
compensation
and benefits 101.7 126.5
Deferred
revenues and
gains 23.5 50.4
Income taxes
payable 22.0 -
Other
liabilities 78.1 66.2
Current
liabilities
held for sale 30.1 115.4
---- -----
1,096.3 948.7
Long-term debt 299.7 556.5
Income taxes
payable 69.8 73.8
Deferred
income taxes 151.5 104.7
Other
liabilities 22.9 23.9
Noncurrent
liabilities
held for sale - 44.5
--- ----
Total
liabilities 1,640.2 1,752.1
------- -------
Redeemable
Non-
controlling
Interest 21.3 15.1
Stockholders'
equity 1,132.2 1,046.0
------- -------
Total
liabilities,
redeemable
non-
controlling
interest and
stockholders'
equity $2,793.7 $2,813.2
======== ========
Common shares
outstanding 32.0 34.3
DST SYSTEMS, INC.
RECONCILIATION OF REPORTED RESULTS TO NON-GAAP RESULTS - CONTINUING OPERATIONS
Three Months Ended December 31,
(Unaudited - in millions, except per share amounts)
2016
----
Operating Operating Pretax Net DST Diluted
Revenue Income Income (a) Income (b) Earnings (c) EPS
------- ------ --------- --------- ----------- ---
Reported GAAP results $373.7 $75.4 $81.4 $54.1 $54.6 $1.68
Adjusted to remove:
Restructuring charges (1) - 1.8 1.8 1.5 1.5 0.05
Amortization of intangible assets (2) - 6.0 6.0 3.7 3.7 0.11
Net gain on securities and other investments (3) - - (0.4) (0.2) (0.7) (0.02)
Net gain on sale of business (4) - - (5.5) (5.2) (5.2) (0.16)
Adjusted Non-GAAP results $373.7 $83.2 $83.3 $53.9 $53.9 $1.66
====== ===== ===== ===== ===== =====
2015
----
Operating Operating Pretax Net DST Diluted
Revenue Income Income (a) Income (b) Earnings (c) EPS
------- ------ --------- --------- ----------- ---
Reported GAAP results $362.3 $62.2 $76.9 $54.9 $55.0 $1.57
Adjusted to remove:
Restructuring charges (1) - 3.4 3.4 2.1 2.1 0.06
Advisory and other transaction costs (5) - 1.2 1.2 0.7 0.7 0.02
Amortization of intangible assets (2) - 5.2 5.2 3.3 3.3 0.10
Net gain on sale of real estate (6) - (0.7) (0.7) (0.5) (0.5) (0.01)
Net gain on securities and other investments (3) - - (12.6) (7.7) (7.8) (0.23)
Income tax items (7) - - - (3.9) (3.9) (0.11)
-----------
Adjusted Non-GAAP results $362.3 $71.3 $73.4 $48.9 $48.9 $1.40
====== ===== ===== ===== ===== =====
2016
----
Financial Healthcare Investments / Consolidated
Services Other Total
Services
Reported GAAP Operating Income (Loss) $52.4 $23.5 $(0.5) $75.4
Adjusted to remove:
Restructuring charges (1) 1.8 - - 1.8
Amortization of intangible assets (2) 4.4 1.6 - 6.0
Adjusted Non-GAAP Operating Income (Loss) $58.6 $25.1 $(0.5) $83.2
===== ===== ===== =====
2015
----
Financial Healthcare Investments / Consolidated
Services Other Total
Services
Reported GAAP Operating Income $49.0 $12.4 $0.8 $62.2
Adjusted to remove:
Restructuring charges (1) - 3.4 - 3.4
Advisory and other transaction costs (5) 1.2 - - 1.2
Amortization of intangible assets (2) 3.6 1.6 - 5.2
Net gain on sale of real estate (6) - - (0.7) (0.7)
Adjusted Non-GAAP Operating Income $53.8 $17.4 $0.1 $71.3
===== ===== ==== =====
(a) Pretax Income has been
defined as "Income from
continuing operations
before income taxes and
non-controlling interest."
(b) Net Income has been defined
as "Income from continuing
operations before non-
controlling interest."
(c) DST Earnings has been
defined as "Income from
continuing operations
attributable to DST
Systems, Inc."
DST SYSTEMS, INC.
RECONCILIATION OF REPORTED RESULTS TO NON-GAAP RESULTS - CONTINUING OPERATIONS
Year Ended December 31,
(Unaudited - in millions, except per share amounts)
2016
----
Operating Operating Pretax Net DST Diluted
Revenue Income Income (a) Income (b) Earnings (c) EPS
------- ------ --------- --------- ----------- ---
Reported GAAP results $1,474.4 $247.3 $279.2 $178.1 $179.0 $5.37
Adjusted to remove:
Restructuring charges (1) - 15.2 15.2 9.9 9.9 0.30
Amortization of intangible assets (2) - 23.1 23.1 14.7 14.7 0.44
Reversal of accrued contingent consideration (8) (6.5) (6.5) (4.1) (4.1) (0.12)
Software impairment (9) - 6.0 6.0 3.7 3.7 0.11
Net gain on securities and other investments (3) - - (16.3) (10.1) (11.0) (0.33)
Net gain on sale of business (4) - - (5.5) (5.2) (5.2) (0.16)
Income tax items (7) - - - 3.9 3.9 0.12
Adjusted Non-GAAP results $1,474.4 $285.1 $295.2 $190.9 $190.9 $5.73
======== ====== ====== ====== ====== =====
2015
----
Operating Operating Pretax Net DST Diluted
Revenue Income Income (a) Income (b) Earnings (c) EPS
------- ------ --------- --------- ----------- ---
Reported GAAP results $1,405.0 $232.7 $458.8 $309.6 $309.7 $8.50
Adjusted to remove:
Restructuring charges (1) - 3.4 3.4 2.1 2.1 0.06
Advisory and other transaction costs (5) - 1.2 1.2 0.7 0.7 0.02
Amortization of intangible assets (2) - 18.8 18.8 12.0 12.0 0.32
Net gain on sale of real estate (6) - (3.7) (3.7) (2.3) (2.3) (0.06)
Net gain on securities and other investments (3) - - (199.3) (124.2) (124.3) (3.42)
Net gain from unconsolidated affiliates (10) - - (3.6) (2.3) (2.3) (0.06)
Income tax items (7) - - - (15.8) (15.8) (0.43)
-------------
Adjusted Non-GAAP results $1,405.0 $252.4 $275.6 $179.8 $179.8 $4.93
======== ====== ====== ====== ====== =====
Note: See the "Use of Non-GAAP Financial Information" section for management's reasons for providing non-GAAP financial information.
Descriptions of Non-GAAP Adjustments
(1) Restructuring charges are comprised
of severance and other costs
incurred as a result of
organizational changes. These
charges are recorded in the
Condensed Consolidated Statement of
Income within the Costs and expenses
line item.
(2) The amortization of intangible assets
is included in the Condensed
Consolidated Statement of Income
within the Depreciation and
amortization line item. The
adjustment comprises all non-cash
amortization of acquired intangible
assets and acquired software.
(3) Net gain on securities and other
investments is comprised of net
realized gains from sales of
available-for-sale securities,
other than temporary impairments on
available-for-sale securities and
net gains on private equity funds,
seed capital investments and other
investments. These net gains were
recorded in the Condensed
Consolidated Statement of Income
within the Other income, net line
item.
(4) The gain on sale of business is
included in the Condensed
Consolidated Statement of Income
within the Other income, net line
item.
(5) Advisory and other transaction costs
incurred in connection with business
acquisition and other significant
transactions are recorded in the
Condensed Consolidated Statement of
Income within the Costs and expenses
line item.
(6) The gain on sale of real estate is
included in the Condensed
Consolidated Statement of Income
within the Costs and expenses line
item.
(7) Income tax items relate to benefits
realized from the release of
particular uncertain tax positions
settled, effectively settled or
otherwise remeasured during the
period or transaction related taxes.
These items are included in the
Condensed Consolidated Statement of
Income within the Income taxes line
item.
(8) The reversal of previously accrued
performance-related contingent
consideration for prior acquisitions
is recorded in the Condensed
Consolidated Statement of Income
within the Costs and expenses line
item.
(9) The software impairment is included
in the Condensed Consolidated
Statement of Income within the Costs
and expenses line item.
(10) The net gain from unconsolidated
affiliates, resulting from an
affiliate's sale of real estate
assets and DST's sale of
unconsolidated affiliates, are
included in the Condensed
Consolidated Statement of Income
within the Equity in earnings of
unconsolidated affiliates line item.
DST SYSTEMS, INC.
STATISTICAL INFORMATION - FINANCIAL SERVICES
(Unaudited - in millions, except as noted)
December 31, December 31,
2016 2015
---- ----
U.S. mutual fund shareowner accounts processed:
Registered accounts - non tax-advantaged 25.3 27.0
---- ----
IRA mutual fund accounts 21.1 21.8
Other retirement accounts 8.0 8.2
Section 529 and Educational IRAs 7.5 8.4
--- ---
Registered accounts - tax-advantaged 36.6 38.4
---- ----
Total registered accounts 61.9 65.4
Subaccounts 42.1 31.3
---- ----
Total U.S. mutual fund shareowner accounts 104.0 96.7
===== ====
International mutual fund shareowner accounts
processed:
IFDS U.K. 8.9 8.8
IFDS L.P. (Canada) 13.7 13.3
Automatic Work Distributor workstations (in
thousands) 212.7 211.4
ALPS (in billions of U.S. dollars):
Assets Under Management $17.2 $14.7
Assets Under Administration $179.1 $140.4
Three Months Ended Year Ended
December 31, December 31,
------------ ------------
2016 2015 2016 2015
---- ---- ---- ----
Changes in registered accounts:
Beginning balance 63.4 66.5 65.4 68.8
New client conversions 0.1 - 0.1 -
Subaccounting conversions to DST
platforms (0.8) (0.5) (0.9) (1.8)
Subaccounting conversions to non-
DST platforms (0.1) (0.4) (0.5) (1.1)
Conversions to non-DST platforms (0.1) - (0.7) (0.3)
Organic growth (decline) (0.6) (0.2) (1.5) (0.2)
---- ---- ---- ----
Ending balance 61.9 65.4 61.9 65.4
==== ==== ==== ====
Changes in subaccounts:
Beginning balance 41.3 30.3 31.3 28.6
New client conversions - - 10.7 -
Conversions from non-DST
registered platforms - 0.7 - 1.1
Conversions from DST's registered
accounts 0.8 0.5 0.9 1.8
Organic growth (decline) - (0.2) (0.8) (0.2)
--- ---- ---- ----
Ending balance 42.1 31.3 42.1 31.3
==== ==== ==== ====
Defined contribution participant
accounts:
Beginning balance 6.5 6.7 7.0 7.2
New client conversions - 0.1 - 0.1
Organic growth (decline) 0.3 0.2 (0.2) (0.3)
--- --- ---- ----
Ending balance 6.8 7.0 6.8 7.0
=== === === ===
DST SYSTEMS, INC.
STATISTICAL INFORMATION - HEALTHCARE SERVICES
(Unaudited - in millions, except as noted)
December 31, December 31,
2016 2015
---- ----
DST Health
Solutions
covered
lives 22.8 26.0
Three Months Ended Year Ended
December 31, December 31,
------------ ------------
2016 2015 2016 2015
---- ---- ---- ----
Argus
pharmacy
paid claims 127.7 128.5 507.0 494.4
About DST Systems
DST Systems, Inc. (NYSE: DST) is a leading provider of specialized technology, strategic advisory, and business operations outsourcing to the financial and healthcare industries. We enable clients to transform complexity into strategic advantage by helping them continually stay ahead of and capitalize on ever-changing customer, business and regulatory requirements in the world's most demanding industries. For more information, visit the DST website at www.dstsystems.com.
Contact:
Gregg Wm. Givens
Senior Vice President, Chief Financial Officer and Treasurer
DST Systems, Inc.
333 West 11(th) Street
Kansas City, MO 64105-1594
(816) 435-5503
To view the original version on PR Newswire, visit:http://www.prnewswire.com/news-releases/dst-systems-inc-announces-fourth-quarter-2016-financial-results-300397014.html
SOURCE DST Systems, Inc.
