UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10-Q
ý QUARTERLY REPORT
PURSUANT TO SECTION 13 OR 15(d) OF
THE SECURITIES EXCHANGE ACT OF 1934
For the quarterly period ended September 30, 2004
or
o TRANSITION REPORT PURSUANT
TO SECTION 13 OR 15(d) OF
THE SECURITIES EXCHANGE ACT OF 1934
For the transition period from to
Commission File Number 1-14036
DST SYSTEMS, INC.
(Exact name of registrant as specified in its charter)
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Delaware |
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43-1581814 |
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(State or
other jurisdiction of |
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(I.R.S.
Employer |
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333 West 11th Street, Kansas City, Missouri |
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64105 |
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(Address of principal executive offices) |
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(Zip Code) |
(816) 435-1000
(Registrant’s telephone number, including area code)
No Changes
(Former name, former address and former fiscal year, if changed since last report)
Indicate by check mark whether the Company (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the Company was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.
Yes ý No o
Indicate by check mark whether the registrant is an accelerated filer (as defined in Rule 12b-2 of the Exchange Act). Yes ý No o
Number of shares outstanding of the Company’s common stock as of October 29, 2004:
Common Stock $0.01 par value – 83,766,084
DST Systems, Inc.
Form 10-Q
September 30, 2004
Table of Contents
The brand, service or product names or marks referred to in this Report are trademarks or services marks, registered or otherwise, of DST Systems, Inc. or its subsidiaries and affiliates or of vendors to the Company.
2
DST Systems, Inc.
Form 10-Q
September 30, 2004
The Condensed Consolidated Financial Statements of DST Systems, Inc. (“DST” or the “Company”) included herein have been prepared by the Company, without audit, pursuant to the rules and regulations of the United States Securities and Exchange Commission. Certain information and note disclosures normally included in financial statements prepared in accordance with accounting principles generally accepted in the United States of America have been condensed or omitted pursuant to such rules and regulations, although the Company believes that the disclosures are adequate to enable a reasonable understanding of the information presented. These Condensed Consolidated Financial Statements should be read in conjunction with the Company’s audited financial statements and the notes thereto for the year ended December 31, 2003.
The results of operations for the three and nine months ended September 30, 2004, are not necessarily indicative of the results to be expected for the full year 2004.
3
DST Systems, Inc.
Condensed Consolidated Balance Sheet
(dollars in millions, except per share amounts)
(unaudited)
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September 30, |
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December 31, |
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ASSETS |
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Current assets |
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Cash and cash equivalents |
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$ |
103.9 |
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$ |
102.4 |
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Transfer agency investments |
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127.1 |
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63.4 |
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Accounts receivable |
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415.2 |
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399.4 |
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Other current assets |
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103.1 |
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116.6 |
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749.3 |
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681.8 |
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Investments |
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1,372.8 |
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1,432.5 |
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Transfer agency investments |
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149.7 |
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Properties |
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662.1 |
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647.2 |
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Goodwill |
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287.5 |
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261.8 |
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Intangibles |
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117.4 |
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123.2 |
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Other assets |
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55.2 |
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52.1 |
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Total assets |
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$ |
3,394.0 |
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$ |
3,198.6 |
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LIABILITIES AND STOCKHOLDERS’ EQUITY |
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Current liabilities |
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Debt due within one year |
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$ |
9.4 |
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$ |
26.9 |
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Transfer agency deposits |
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276.4 |
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63.4 |
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Accounts payable |
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127.0 |
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126.3 |
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Accrued compensation and benefits |
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108.5 |
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98.1 |
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Deferred revenues and gains |
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73.2 |
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95.0 |
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Other liabilities |
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155.3 |
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162.5 |
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749.8 |
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572.2 |
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Long-term debt |
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1,408.6 |
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1,437.8 |
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Deferred income taxes |
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392.2 |
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408.5 |
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Other liabilities |
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91.2 |
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96.4 |
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2,641.8 |
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2,514.9 |
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Commitments and contingencies (Note 6) |
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Stockholders’ equity |
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Common stock, $0.01 par; 300 million shares authorized, 95.3 million shares issued |
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1.0 |
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1.0 |
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Additional paid-in capital |
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202.7 |
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208.8 |
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Retained earnings |
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670.5 |
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514.6 |
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Treasury stock (11.6 million and 11.5 million shares, respectively), at cost |
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(458.9 |
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(438.4 |
) |
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Accumulated other comprehensive income |
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336.9 |
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397.7 |
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Total stockholders’ equity |
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752.2 |
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683.7 |
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Total liabilities and stockholders’ equity |
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$ |
3,394.0 |
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$ |
3,198.6 |
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The accompanying notes are an integral part of these financial statements.
4
DST Systems, Inc.
Condensed Consolidated Statement of Income
(in millions, except per share amounts)
(unaudited)
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For the Three Months |
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For the Nine Months |
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2004 |
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2003 |
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2004 |
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2003 |
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Operating revenues |
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$ |
426.9 |
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$ |
413.8 |
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$ |
1,282.4 |
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$ |
1,276.5 |
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Out-of-pocket reimbursements |
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172.6 |
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155.9 |
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519.9 |
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530.0 |
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Total revenues |
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599.5 |
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569.7 |
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