DST SYSTEMS INC

CIK:0000714603|SEC Filings

Consolidated Statement of Income - USD ($) shares in Millions, $ in Millions	3 Months Ended								12 Months Ended
	Dec. 31, 2017	Sep. 30, 2017	Jun. 30, 2017	Mar. 31, 2017	Dec. 31, 2016	Sep. 30, 2016	Jun. 30, 2016	Mar. 31, 2016	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Operating revenues	$ 552.7	$ 524.8	$ 629.4	$ 379.8	$ 373.7	$ 365.5	$ 373.9	$ 361.3	$ 2,086.7	$ 1,474.4	$ 1,405.0
Out-of-pocket reimbursements	41.2	37.8	26.8	25.7	25.1	21.2	16.6	19.4	131.5	82.3	69.0
Total revenues (includes related party revenues of $58.5, $150.7 and $150.3)	593.9	562.6	656.2	405.5	398.8	386.7	390.5	380.7	2,218.2	1,556.7	1,474.0
Costs and expenses	481.3	472.1	525.2	326.4	296.5	289.6	320.4	306.9	1,805.0	1,213.4	1,150.2
Depreciation and amortization	35.3	34.7	34.8	23.2	26.9	22.8	24.2	22.1	128.0	96.0	91.1
Operating income	77.3	55.8	96.2	55.9	75.4	74.3	45.9	51.7	285.2	247.3	232.7
Interest expense	(7.1)	(6.9)	(6.9)	(5.9)	(5.5)	(5.4)	(6.5)	(6.1)	(26.8)	(23.5)	(23.8)
Gain on sale of business					5.5	0.0	0.0	0.0	0.0	5.5	0.0
Other income, net	1.8	8.7	15.5	193.0	2.7	6.7	7.0	6.3	219.0	22.7	204.5
Equity in earnings of unconsolidated affiliates	27.2	4.2	3.9	19.2	3.3	7.0	10.2	6.7	54.5	27.2	45.4
Income from continuing operations before income taxes and non-controlling interest	99.2	61.8	108.7	262.2	81.4	82.6	56.6	58.6	531.9	279.2	458.8
Income taxes	18.0	13.0	35.2	18.1	27.3	31.6	22.1	20.1	84.3	101.1	149.2
Income from continuing operations before non-controlling interest	81.2	48.8	73.5	244.1	54.1	51.0	34.5	38.5	447.6	178.1	309.6
Income from discontinued operations, net of tax	0.0	(0.3)	1.9	2.9	(11.7)	222.8	18.7	18.5	4.5	248.3	48.5
Net income	81.2	48.5	75.4	247.0	42.4	273.8	53.2	57.0	452.1	426.4	358.1
Net (income) loss attributable to non-controlling interest	0.0	0.0	0.0	(0.6)	0.5	(0.5)	(0.2)	1.1	(0.6)	0.9	0.1
Net income attributable to DST Systems, Inc.	$ 81.2	$ 48.5	$ 75.4	$ 246.4	$ 42.9	$ 273.3	$ 53.0	$ 58.1	$ 451.5	$ 427.3	$ 358.2
Weighted average common shares outstanding	59.9	60.7	61.9	63.1	64.2	65.4	66.6	67.6	61.4	66.0	72.0
Weighted average diluted shares outstanding	60.6	61.6	62.5	63.9	65.0	66.1	67.2	68.5	62.1	66.6	72.9
Basic earnings per share
Continuing operations attributable to DST Systems, Inc., per basic share (in dollars per share)	$ 1.36	$ 0.81	$ 1.19	$ 3.86	$ 0.85	$ 0.77	$ 0.52	$ 0.59	$ 7.28	$ 2.71	$ 4.30
Discontinued operation, per basic share (in dollars per share)	0.00	(0.01)	0.03	0.05	(0.18)	3.41	0.28	0.27	0.07	3.76	0.67
Basic earnings per share (in dollars per share)	1.36	0.80	1.22	3.91	0.67	4.18	0.80	0.86	7.35	6.47	4.97
Diluted earnings per share
Continuing operations attributable to DST Systems, Inc., per diluted share (in dollars per share)	1.34	0.79	1.18	3.81	0.84	0.76	0.51	0.59	7.20	2.68	4.25
Discontinued operation, per diluted share (in dollars per share)	0.00	0.00	0.03	0.04	(0.18)	3.37	0.28	0.26	0.07	3.73	0.67
Diluted earnings per share (in dollars per share)	1.34	0.79	1.21	3.85	0.66	4.13	0.79	0.85	7.27	6.41	4.92
Cash dividends per share of common stock (in dollars per share)	$ 0.18	$ 0.18	$ 0.18	$ 0.18	$ 0.16	$ 0.17	$ 0.17	$ 0.16	$ 0.72	$ 0.66	$ 0.60

Consolidated Statement of Cash Flows $ in Millions	12 Months Ended
Consolidated Statement of Cash Flows $ in Millions	Dec. 31, 2017 USD ($)	Dec. 31, 2016 USD ($)	Dec. 31, 2015 USD ($)
Cash flows—operating activities:
Net income	$ 452.1	$ 426.4	$ 358.1
Less: income from discontinued operations	4.5	248.3	48.5
Income from continuing operations	447.6	178.1	309.6
Depreciation and amortization	128.0	96.0	91.1
Net gains on investments	(153.8)	(2.4)	(163.6)
Gain recognized on step-up of unconsolidated affiliates	(43.8)	0.0	0.0
Gains on sale of properties and businesses	(0.6)	(5.6)	(4.5)
Amortization of share-based compensation	43.6	12.2	24.1
Equity in earnings of unconsolidated affiliates	(54.5)	(27.2)	(45.4)
Cash dividends from unconsolidated affiliates	0.0	0.4	3.5
Deferred income taxes	(27.1)	17.0	(15.5)
Changes in accounts receivable	13.9	(16.0)	(10.6)
Changes in other assets	(127.9)	(0.8)	(9.4)
Changes in client funds obligations	(17.1)	10.9	9.9
Changes in client funding receivable	17.1	(10.9)	(9.9)
Changes in accounts payable and accrued liabilities	(39.9)	16.6	(1.8)
Changes in income taxes payable	12.1	(67.9)	(31.6)
Changes in deferred revenues and gains	(29.6)	(4.6)	(2.1)
Changes in accrued compensation and benefits	(10.2)	(26.9)	(7.7)
Other, net	6.2	(6.2)	(0.4)
Net cash provided from continuing operating activities	164.0	162.7	135.7
Net cash provided from (used in) discontinued operating activities	(12.1)	26.4	84.5
Net cash provided from operating activities	151.9	189.1	220.2
Cash flows—investing activities:
Cash paid for capital expenditures	(78.8)	(60.4)	(88.9)
Investments in securities	(62.8)	(258.3)	(166.4)
Proceeds from (investments in and advances to) unconsolidated affiliates, net	32.7	(23.8)	11.1
Proceeds from sale / maturities of investments	102.6	317.8	358.6
Net increase (decrease) in restricted cash and cash equivalents held to satisfy client funds obligations	43.3	(20.3)	(113.5)
Proceeds from sale of properties	0.0	5.7	6.1
Acquisition of businesses, net of cash and cash equivalents acquired	(38.9)	(93.5)	(117.4)
Proceeds from sale of businesses, net of cash and cash equivalents sold	1.2	14.5	7.9
Other, net	0.0	1.0	0.1
Net cash used in continuing investing activities	(0.7)	(117.3)	(102.4)
Net cash provided from discontinued investing activities	40.6	412.9	104.9
Net cash provided from investing activities	39.9	295.6	2.5
Cash flows—financing activities:
Proceeds from issuance of common stock	2.8	5.3	11.8
Principal payments on debt	(108.2)	(5.1)	(46.4)
Proceeds from issuance of senior notes	350.0	0.0	0.0
Net proceeds (repayments) on accounts receivable securitization program	(88.3)	103.2	(120.0)
Net borrowings (repayments) on revolving credit facilities	(75.0)	(151.1)	181.8
Net increase (decrease) in client funds obligations	(43.3)	20.3	124.0
Receipt of third party capital in investment fund	0.8	7.1	15.0
Common stock repurchased	(310.6)	(315.8)	(405.3)
Payment of cash dividends	(43.7)	(43.4)	(43.1)
Excess tax benefits from share-based compensation	0.0	4.7	5.6
Other, net	(1.9)	0.0	(2.1)
Net cash used for continuing financing activities	(317.4)	(374.8)	(278.7)
Net cash used for discontinued financing activities	(0.2)	0.0	(6.1)
Net cash used for financing activities	(317.6)	(374.8)	(284.8)
Effect of exchange rates on cash and cash equivalents	6.8	0.0	0.0
Net increase (decrease) in cash and cash equivalents, including cash within assets held for sale	(119.0)	109.9	(62.1)
Cash and cash equivalents, beginning of year	199.5	89.6	151.7
Cash and cash equivalents, end of year	80.5	199.5	89.6
Less: cash and cash equivalents held for sale	0.0	4.0	10.1
Cash and cash equivalents of continuing operations, end of year	$ 80.5	$ 195.5	$ 79.5

Consolidated Balance Sheet - USD ($) $ in Millions	Dec. 31, 2017	Dec. 31, 2016
Current assets
Cash and cash equivalents	$ 80.5	$ 195.5
Funds held on behalf of clients	454.5	500.5
Client funding receivable	47.0	64.1
Accounts receivable (includes related party receivables of $6.7 and $19.7)	363.8	215.5
Other assets	91.9	70.0
Current assets held for sale	0.0	72.6
Total current assets	1,037.7	1,118.2
Investments	199.7	377.4
Unconsolidated affiliates	94.0	331.2
Properties, net	349.8	235.7
Intangible assets, net	283.1	142.6
Goodwill	799.1	516.4
Other assets	174.8	50.3
Total assets	2,938.2	2,771.8
Current liabilities
Current portion of debt	83.7	208.5
Client funds obligations	504.2	564.6
Accounts payable	101.2	62.9
Accrued compensation and benefits	137.9	101.7
Deferred revenues and gains	28.3	23.5
Income taxes payable	5.0	22.0
Other liabilities	111.0	78.1
Current liabilities held for sale	0.0	30.1
Total current liabilities	971.3	1,091.4
Long-term debt	537.1	299.7
Income taxes payable	75.0	69.8
Deferred income taxes	62.0	151.5
Other liabilities	51.6	22.9
Total liabilities	1,697.0	1,635.3
Commitments and contingencies (Note 16)
Redeemable Non-controlling Interest	0.0	21.3
Stockholders’ Equity
Preferred stock, $0.01 par, 10 million shares authorized and unissued	0.0	0.0
Common stock, $0.01 par, 400 million shares authorized, and 64.4 million and 82.0 million shares issued, respectively	0.6	0.8
Additional paid-in capital	112.7	129.2
Retained earnings	1,489.3	2,379.2
Treasury stock, at cost	(362.8)	(1,410.6)
Accumulated other comprehensive income	1.4	16.6
Total stockholders’ equity	1,241.2	1,115.2
Total liabilities, redeemable non-controlling interest and stockholders’ equity	$ 2,938.2	$ 2,771.8