Newkirk Products, Inc.

DST Systems provides information processing software and services to the mutual fund, insurance, retirement, and healthcare industries, among others, primarily in North America. Its two top segments (customer communications and financial services) together contribute most of sales. Its financial services segment offers software and systems used to handle a wide range of tasks including shareowner recordkeeping, investment management, and business process management; the customer communications division includes integrated print and electronic billing and statement products. DST generates most of its sales in the US.

Operations

Excluding intersegment revenues, the financial services segment accounts for nearly half of sales, with customer communications contributing a third. In 2013 DST created a healthcare services segment that provides medical and pharmacy claims administration; excluding intersegment revenues, it generates about 15% of sales.

The company is also involved in real estate and equity investments in various companies.

Geographic Reach

The US is DST's largest market, accounting for more than 80% of sales. Its largest international market is the UK (about 10% of sales).

The company has locations in the US, as well as in Australia, Canada, India, Thailand, and the UK.

Sales and Marketing

DST markets its products directly, as well as through subsidiaries, joint venture affiliates, and strategic alliances.

Financial Performance

DST's revenue of $2.7 billion for 2013, up 3% from the prior year, marks the company's fourth consecutive year of growth. Sales for all three segments grew that year. Net income rose nearly 10% to $353 million, primarily on lower depreciation and amortization, and cash flow from operations returned to more typical levels ($395 million in 2013) after dipping in 2012 as a result of income taxes paid on investment gains.

Mergers and Acquisitions

The company has historically been very active on the acquisition front to complement its product line and expand into new geographic areas. DST has balanced its acquisition strategy by purchasing both complementary software and technology providers as well as service providers, with a particular emphasis on buying business process outsourcing (BPO) and consulting firms.

Much of the company's acquisition dollars in 2011 were spent on the expansion of its financial services segment. DST paid $251.9 million that year for ALPS Holdings, a company that performed technology and back-office functions for financial services firms, and it acquired the assets of IntelliSource Healthcare Solutions, a developer of software for health insurance providers. Also in 2011 it bought Subserveo, a Canadian provider of compliance and surveillance services to broker-dealers. Additionally, DST acquired consultancy Finix Business Strategies and enterprise social networking software developer Finix Converge.

To boost its customer communications segment in 2011 DST acquired Newkirk Products, a company that performed communications services -- writing statements and reports -- for financial service firms, and Lateral Group Limited, a provider of marketing services such as database marketing, digital media. campaign management, print management, and online trading facilitation.

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Newkirk Products, Inc.


15 Corporate Cir
Albany, NY 12203-5177
Phone: 1 (518) 862-3200
Fax: 1 (518) 8623399
www.newkirk.com

STATS


  • Employer Type: Unknown
  • Cfo: John Graham
  • Ceo: Raymond Newkirk
  • Pres: Peter Newkirk

Major Office Locations

  • Albany, NY

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