DST Systems Inc. (NYSE: DST) is a software development firm that specializes in information processing and management, with the goal of improving efficiency, productivity, and customer service. DST was founded in 1969 as a division of Kansas City Southern Industries, and is currently headquartered near Kansas City Southern's headquarters on Quality Hill in Kansas City, Missouri.
DST Systems Inc. produces the AWD, or Automated Work Distributor, software package, which is a business process management solution. Its primary purpose is to increase back-office efficiency through workflow and imaging. It also helps to reduce paper in the office, moving businesses towards the paperless office.
DST Systems, Inc. is headed by CEO Thomas McDonnell, President Steve Hooley, and CFO Kenneth Hager. Internationally, many of DST Systems products are sold by its subsidiary DST Global Solutions.
DST Systems, Inc. (DST) offer sophisticated information processing and software services and products. These business units are reported as two operating segments: Financial Services and Output Solutions. In addition, investments in the Company's real estate subsidiaries and affiliates, equity securities, private equity funds and certain financial interests have been aggregated into the Investments and Other Segment. On March 31, 2009, DST purchased the remaining 50% interest of Argus Health Systems, Inc. In May 2011, the Company acquired Newkirk Products, Inc.
Financial Services
The Company's Financial Services Segment provides sophisticated information processing and computer software services and products using software systems primarily to mutual funds, investment managers, insurance companies, healthcare providers, banks, brokers, financial planners, healthcare payers, real estate partnerships, third party administrators and medical practice groups. DST’s software systems include mutual fund shareowner, subaccount and unit trust recordkeeping systems for United States and international mutual fund companies; a defined-contribution participant recordkeeping system for the United States retirement plan market; investment management systems offered to United States and international investment managers and fund accountants.
The software systems include a business process management and customer contact system offered to mutual funds, insurance companies, brokerage firms, banks, healthcare payers, healthcare providers, cable television operators and mortgage servicing organizations; healthcare claims administration processing systems and services offered to providers of healthcare plans, third party administrators and medical practice groups; pharmacy claims processing systems offered to healthcare plans, insurance companies, third party administrators and pharmacy benefit managers, and an electronic file system offered to mutual fund companies, insurance companies and professional service firms. The Financial Services Segment distributes its services and products on a direct basis and through subsidiaries and joint venture affiliates in the United States, United Kingdom, Canada, Europe, Australia, South Africa, Asia-Pacific and the Middle East.
Output Solutions
The Company's Output Solutions Segment provides single source, integrated print and electronic statement and billing output solutions. This Segment also provides customized statement and bill production, marketing and personalization services, postal optimization, and electronic presentment, payment and distribution solutions. These capabilities enable the Output Solutions Segment to provide services to industries that require statement and billing output processing. The Output Solutions Segment conducts its operations from five operating facilities located throughout North America and the United Kingdom. The Output Solutions Segment's research and development have resulted in two mail and postal processing initiatives, Smart Commingling and Intelligent Mail barcode. In addition, the Digital Press Technology (DPT) color printing and inserting platform enables the Output Solutions Segment to produce transactional printing combined with color printing.
The Output Solutions Segment distributes its product directly to customers and through relationships in which its services are combined with or offered through providers of data processing services. The Output Solutions Segment's products are also distributed or bundled with product offerings to customers of the Financial Services Segment.
Investments and Other
The Investments and Other Segment is comprised of the Company's real estate subsidiaries and affiliates, investments in equity securities, private equity funds and other financial interests. The Company owns and operates real estate mostly in the United States and United Kingdom, which is held primarily for lease to the Company's other business segments. The Company is a partner in certain real estate joint ventures that lease office space to the Company. The Company is a 50% partner in a limited purpose real estate joint venture formed to develop and lease approximately 1.1 million square feet of office space to the United States government.
The Company competes with PNC Global Investment Servicing, Inc., SunGard Data Systems, Inc., Ascensus, GreatWest, Phoenix American, IBM, Lombardi, PegaSystems, Savvion, TIBCO Software, Inc., SourceCorp, Iron Mountain, Recall, Simcorp, IGEFI, GBST, Bravura, FNZ, Trizetto (MyHealthBank), Perot Systems, ACS, EDS, TMG Health, Fiserv (Caregain) and ConnectYourCare.
DST Systems main competition includes Envision Financial Systems, PFPC, SunGard, Northern Trust and US Bancorp Fund Services. DST Systems also does business, through a joint venture with State Street Corporation, as Boston Financial Data Services as well as International Financial Data Services in Canada, the United Kingdom and beyond.
DST Global Solutions is a subsidiary of DST Systems that provides software services to the investment industry, financial services industry and banking and workflow industries. It is the global provider of many of DST Systems' products world wide, such as AWD. It is also the vendor for systems such as HiPortfolio, a fund accounting software application. DST Global Solutions has its headquarters in the London suburb of Surbiton, United Kingdom and 16 offices with over 1,100 staff and around 400 clients based in 45 countries.
The current chief executive officer is Tom Abraham, who took the position in 2007 from Mike Winn.
Due to the distributed nature of DST Global Solutions, it competes with a number of companies in each local region, but very few competitors in all areas. For example Sungard, SimCorp, Linedata Services are all global financial companies, but others, such as CRD and LatentZero have a limited presence outside of the United States and Europe. In Asia, DST competes with Polaris and Tata.
OVERALL
Beta: 1.19
Market Cap (Mil.): $2,271.14
Shares Outstanding (Mil.): 46.44
Annual Dividend: 0.70
Yield (%): 1.43
FINANCIALS
DST Industry Sector
P/E (TTM): 7.26 20.57 19.08
EPS (TTM): 39.30 -- --
ROI: 16.52 21.49 16.11
ROE: 43.67 23.55 17.77
Name Age Since Current Position
McDonnell, Thomas 65 2009 Chief Executive Officer, Director
Hooley, Stephen 47 2009 President, Chief Operating Officer
Hager, Kenneth 60 1995 Chief Financial Officer, Vice President, Treasurer
Towle, Steven 53 2004 President & Chief Executive Officer of DST Output
Abraham, Thomas 59 2007 Chief Executive Officer of DST Global Solutions
Boehm, Jonathan 50 2009 Executive Vice President
Tritt, Robert 55 2009 Executive Vice President - U.S. Investment Recordkeeping Solutions business
Givens, Gregg 50 1999 Vice President, Chief Accounting Officer
Young, Randall 54 2002 Vice President, General Counsel, Secretary
Fitt, Michael 79 2009 Lead Independent Director
McCullough, Thomas 68 2009 Director
Allinson, A. Edward 76 1995 Independent Director
Nelson, William 73 1996 Independent Director
Argyros, George 74 2006 Independent Director
Strandjord, M. Jeannine 65 1996 Independent Director
Reed, Travis 76 2002 Independent Director
Jackson, Robert 65 2007 Independent Director
COMPANY ADDRESS
DST Systems Inc
333 West 11th Street
5th Floor
Kansas City MO 64105
DST Systems Inc. produces the AWD, or Automated Work Distributor, software package, which is a business process management solution. Its primary purpose is to increase back-office efficiency through workflow and imaging. It also helps to reduce paper in the office, moving businesses towards the paperless office.
DST Systems, Inc. is headed by CEO Thomas McDonnell, President Steve Hooley, and CFO Kenneth Hager. Internationally, many of DST Systems products are sold by its subsidiary DST Global Solutions.
DST Systems, Inc. (DST) offer sophisticated information processing and software services and products. These business units are reported as two operating segments: Financial Services and Output Solutions. In addition, investments in the Company's real estate subsidiaries and affiliates, equity securities, private equity funds and certain financial interests have been aggregated into the Investments and Other Segment. On March 31, 2009, DST purchased the remaining 50% interest of Argus Health Systems, Inc. In May 2011, the Company acquired Newkirk Products, Inc.
Financial Services
The Company's Financial Services Segment provides sophisticated information processing and computer software services and products using software systems primarily to mutual funds, investment managers, insurance companies, healthcare providers, banks, brokers, financial planners, healthcare payers, real estate partnerships, third party administrators and medical practice groups. DST’s software systems include mutual fund shareowner, subaccount and unit trust recordkeeping systems for United States and international mutual fund companies; a defined-contribution participant recordkeeping system for the United States retirement plan market; investment management systems offered to United States and international investment managers and fund accountants.
The software systems include a business process management and customer contact system offered to mutual funds, insurance companies, brokerage firms, banks, healthcare payers, healthcare providers, cable television operators and mortgage servicing organizations; healthcare claims administration processing systems and services offered to providers of healthcare plans, third party administrators and medical practice groups; pharmacy claims processing systems offered to healthcare plans, insurance companies, third party administrators and pharmacy benefit managers, and an electronic file system offered to mutual fund companies, insurance companies and professional service firms. The Financial Services Segment distributes its services and products on a direct basis and through subsidiaries and joint venture affiliates in the United States, United Kingdom, Canada, Europe, Australia, South Africa, Asia-Pacific and the Middle East.
Output Solutions
The Company's Output Solutions Segment provides single source, integrated print and electronic statement and billing output solutions. This Segment also provides customized statement and bill production, marketing and personalization services, postal optimization, and electronic presentment, payment and distribution solutions. These capabilities enable the Output Solutions Segment to provide services to industries that require statement and billing output processing. The Output Solutions Segment conducts its operations from five operating facilities located throughout North America and the United Kingdom. The Output Solutions Segment's research and development have resulted in two mail and postal processing initiatives, Smart Commingling and Intelligent Mail barcode. In addition, the Digital Press Technology (DPT) color printing and inserting platform enables the Output Solutions Segment to produce transactional printing combined with color printing.
The Output Solutions Segment distributes its product directly to customers and through relationships in which its services are combined with or offered through providers of data processing services. The Output Solutions Segment's products are also distributed or bundled with product offerings to customers of the Financial Services Segment.
Investments and Other
The Investments and Other Segment is comprised of the Company's real estate subsidiaries and affiliates, investments in equity securities, private equity funds and other financial interests. The Company owns and operates real estate mostly in the United States and United Kingdom, which is held primarily for lease to the Company's other business segments. The Company is a partner in certain real estate joint ventures that lease office space to the Company. The Company is a 50% partner in a limited purpose real estate joint venture formed to develop and lease approximately 1.1 million square feet of office space to the United States government.
The Company competes with PNC Global Investment Servicing, Inc., SunGard Data Systems, Inc., Ascensus, GreatWest, Phoenix American, IBM, Lombardi, PegaSystems, Savvion, TIBCO Software, Inc., SourceCorp, Iron Mountain, Recall, Simcorp, IGEFI, GBST, Bravura, FNZ, Trizetto (MyHealthBank), Perot Systems, ACS, EDS, TMG Health, Fiserv (Caregain) and ConnectYourCare.
DST Systems main competition includes Envision Financial Systems, PFPC, SunGard, Northern Trust and US Bancorp Fund Services. DST Systems also does business, through a joint venture with State Street Corporation, as Boston Financial Data Services as well as International Financial Data Services in Canada, the United Kingdom and beyond.
DST Global Solutions is a subsidiary of DST Systems that provides software services to the investment industry, financial services industry and banking and workflow industries. It is the global provider of many of DST Systems' products world wide, such as AWD. It is also the vendor for systems such as HiPortfolio, a fund accounting software application. DST Global Solutions has its headquarters in the London suburb of Surbiton, United Kingdom and 16 offices with over 1,100 staff and around 400 clients based in 45 countries.
The current chief executive officer is Tom Abraham, who took the position in 2007 from Mike Winn.
Due to the distributed nature of DST Global Solutions, it competes with a number of companies in each local region, but very few competitors in all areas. For example Sungard, SimCorp, Linedata Services are all global financial companies, but others, such as CRD and LatentZero have a limited presence outside of the United States and Europe. In Asia, DST competes with Polaris and Tata.
OVERALL
Beta: 1.19
Market Cap (Mil.): $2,271.14
Shares Outstanding (Mil.): 46.44
Annual Dividend: 0.70
Yield (%): 1.43
FINANCIALS
DST Industry Sector
P/E (TTM): 7.26 20.57 19.08
EPS (TTM): 39.30 -- --
ROI: 16.52 21.49 16.11
ROE: 43.67 23.55 17.77
Name Age Since Current Position
McDonnell, Thomas 65 2009 Chief Executive Officer, Director
Hooley, Stephen 47 2009 President, Chief Operating Officer
Hager, Kenneth 60 1995 Chief Financial Officer, Vice President, Treasurer
Towle, Steven 53 2004 President & Chief Executive Officer of DST Output
Abraham, Thomas 59 2007 Chief Executive Officer of DST Global Solutions
Boehm, Jonathan 50 2009 Executive Vice President
Tritt, Robert 55 2009 Executive Vice President - U.S. Investment Recordkeeping Solutions business
Givens, Gregg 50 1999 Vice President, Chief Accounting Officer
Young, Randall 54 2002 Vice President, General Counsel, Secretary
Fitt, Michael 79 2009 Lead Independent Director
McCullough, Thomas 68 2009 Director
Allinson, A. Edward 76 1995 Independent Director
Nelson, William 73 1996 Independent Director
Argyros, George 74 2006 Independent Director
Strandjord, M. Jeannine 65 1996 Independent Director
Reed, Travis 76 2002 Independent Director
Jackson, Robert 65 2007 Independent Director
COMPANY ADDRESS
DST Systems Inc
333 West 11th Street
5th Floor
Kansas City MO 64105