About Dst Systems, 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

The customer communications segment accounted for almost half of sales with financial services accounting for about two-fifths of sales. The healthcare services segment, which provides medical and pharmacy claims administration, generates about 13% 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 12% 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 $2.75 billion for 2014, up 3% from the prior year, marks the company's fifth straight year of growth. Sales for financial services and healthcare grew in 2014, but customer communications revenue dipped. Net income leaped 68% to more than $590 million in 2014 on higher revenue and a gain from discontinued operations -- the sale of its global solutions business. Cash flow from operations dropped to $312 million in 2014 from $395 million in 2013  because of a change in income tax and account receivables.

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.

In 2015, DST's wholly-owned subsidiary ALPS agreed to buy Red Rocks Capital, a private equity and other private asset investment firm, for about $65 million. Red Rocks adds expertise and experience in alternative investments to ALPS and DST. ALPS and Red Rocks have had business engagements since 2007.

DST acquired kasina, a strategic advisory firm to the asset management industry, in early 2015. DST hopes to combine its analytics and sales reporting tools with kasina's understanding of challenges that face asset managers and insurers to uncover new revenue opportunities for the financial industry.

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Dst Systems, Inc.

333 W 11th St
Kansas City, MO 64105-1773
Phone: 1 (816) 435-1000
Fax: 1 (816) 435-8618
www.dstsystems.com

Stats

  • Employer Type: Public
  • Stock Symbol: DST
  • Stock Exchange: NYSE
  • Chairman, President and CEO: Stephen C. Hooley
  • Chairman, President and CEO: Stephen C. Hooley
  • EVP and CIO: Vercie Lark

Major Office Locations

  • Kansas City, MO

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