Announces Fiscal Year EPS Growth of 9%
and Adjusted EPS Growth of 11%Record Closed
SalesRecurring Fee Revenue Growth of
9%Board Approves 10% Increase in Annual Dividend
to $1.32
Broadridge Financial Solutions, Inc. (NYSE:BR) today reported
financial results for the fourth quarter of its fiscal year 2016.
Results for the three and twelve months ended June 30, 2016
compared with the same period last year were as follows:
|
|
Fourth Quarter Fiscal
Year 2016 Results: |
Fiscal Year 2016
Results: |
- Recurring fee revenues increased 7%
to $649 million |
- Recurring fee revenues increased 9%
to $1.895 billion |
- Total revenues increased 5% to $975
million |
- Total revenues increased 8% to $2.897
billion |
- Operating income increased 3% to $270
million |
- Operating income increased 7% to $500
million |
- Adjusted Operating income increased
3% to $279 million |
- Adjusted Operating income increased
8% to $537 million |
- Net earnings increased 3% to $170
million |
- Net earnings increased 7% to $307
million |
- Adjusted Net earnings increased 2% to
$176 million |
- Adjusted Net earnings increased 8% to
$332 million |
- Diluted earnings per share increased
4% to $1.40 |
- Diluted earnings per share increased
9% to $2.53 |
- Adjusted Diluted earnings per share
increased 4% to $1.45 |
- Adjusted Diluted earnings per share
increased 11% to $2.73 |
- Closed sales increased 46% to
$57 million |
- Closed sales increased 3% to
$151 million |
Richard J. Daly, President and Chief Executive Officer
commented, “Broadridge reported record results for fiscal year
2016. Revenues rose 8% to $2.9 billion, led by 9% growth in
recurring fee revenues, and Adjusted EPS increased 11% to
$2.73. I am especially pleased by the strong demand we saw
for our products and services, as evidenced by $151 million of
closed sales, an all-time high for Broadridge. We also
continued to deploy capital to strengthen and grow our business,
including the acquisition of DST’s North American Customer
Communications business in July, which we expect will deliver
significant strategic and financial benefits over a multi-year
period.”
Mr. Daly added, “As a result of these strong results and our
confidence in the strength of our business, the Board of Directors
approved a 10% increase in our annual dividend amount to $1.32 per
share. I am proud to note that Broadridge has raised its
dividend every year since becoming a public company in 2007.”
“Looking forward to fiscal year 2017, Broadridge is very well
positioned to achieve the three year financial objectives we set
out at the beginning of fiscal year 2015. Our guidance for
2017 includes recurring fee revenue growth in the range of 29% to
31%, Adjusted EPS growth of 12% to 17%, and closed sales in the
range of $140 million to $180 million,” Mr. Daly concluded.
Financial Results for Fourth Quarter Fiscal Year
2016
Revenues and Sales
Revenues for the fourth quarter of fiscal year 2016 increased 5%
to $975 million, compared to $930 million for the prior year
period. The $45 million increase was driven by: (i) higher
recurring fee revenues of $43 million, or 7%; (ii) higher
distribution revenues of $4 million, or 1%; and (iii) higher
event-driven fee revenues of $3 million, or 6%. The positive
contribution from recurring fee revenues reflected gains from Net
New Business (3 pts), contributions from acquisitions (2 pts), and
internal growth (2 pts). The Company defines Net New Business as
recurring revenue from closed sales less recurring revenue from
client losses.
Closed sales for the fourth quarter of fiscal year 2016
increased 46% to $57 million, compared to $39 million for the prior
year period.
Operating Income
For the fourth quarter of fiscal year 2016:
- Operating income was $270 million, an increase of $9 million,
or 3%, compared to $262 million for the prior year period.
- Operating income margin decreased to 27.7%, compared to 28.2%
for the prior year period.
- Adjusted Operating income was $279 million, an increase of $9
million, or 3%, compared to $270 million for the prior year
period.
- Adjusted Operating income margin decreased to 28.6%, compared
to 29.1% for the prior year period.
The increase in Operating income and Adjusted Operating income
was due to revenue growth. The 50 basis points decline in Operating
income margin and Adjusted Operating income margin was primarily
the result of higher corporate operating expenses, including
severance costs and professional service fees, partially offset by
higher segment pre-tax margins compared to the prior year
period.
Net Earnings and Earnings Per Share
For the fourth quarter of fiscal year 2016:
- Net earnings increased 3% to $170 million, compared to $166
million for the prior year period.
- Adjusted Net earnings increased 2% to $176 million, compared to
$172 million for the prior year period.
- Diluted earnings per share increased 4% to $1.40, compared to
$1.35 for the prior year period.
- Adjusted Diluted earnings per share increased 4% to $1.45 from
$1.40 for the prior year period
Diluted earnings per share and Adjusted Diluted earnings per
share amounts in the current year period were positively impacted
$0.01 per share and $0.02 per share, respectively, by a 1% decline
in the number of weighted-average diluted shares outstanding to 121
million from 123 million for the prior year period.
Segment and Other Results for Fourth Quarter Fiscal Year
2016
Investor Communication SolutionsInvestor Communication Solutions
segment Revenues in the fourth quarter of fiscal year 2016
increased $38 million, or 5%, to $804 million, compared to $766
million in the prior year period. The increase was attributable to
higher recurring fee revenues which increased $31 million, or 7%,
higher event-driven fee revenues which contributed $3 million, and
higher distribution revenues which contributed $4 million. Higher
recurring fee revenues of 7% were driven by: (i) Net New Business
primarily driven by increases in revenues from closed sales (3
pts); (ii) contributions from our recent acquisitions (2 pts); and
(iii) positive internal growth (2 pts). Pre-tax margins increased
by 50 basis points to 32.6% in the fourth quarter of fiscal year
2016, primarily due to: (i) earnings from higher recurring and
event-driven revenues partially offset by (ii) higher operating
expenses, and (iii) incremental operating and intangible
amortization costs related to acquisitions.
Global Technology and OperationsGlobal Technology and Operations
segment Revenues in the fourth quarter of fiscal year 2016
increased $12 million, or 7%, to $190 million, compared to $178
million in the prior year period. The increase was attributable to
higher Net New Business (3 pts), internal growth from increased
usage of products and services as well as higher trading activity,
partially offset by contract renewals (3pts), and revenue from our
recent acquisitions (1pt). Pre-tax margins increased by 260
basis points to 18.7% primarily as a result of (i) higher revenues
from closed sales and internal growth, partially offset by (ii)
incremental operating costs and the impact of recent
acquisitions.
OtherPre-tax loss increased by $15 million, or 74%, in the
fourth quarter of fiscal year 2016 to $35 million from $20 million
in the prior year period. The increased loss was mainly due to: (i)
higher compensation expenses of $13 million, which included
severance costs of $7 million, and (ii) professional services fees
of $4 million, partially offset by (iii) a benefit from a reduction
in the fair value of our obligation under contingent acquisition
consideration arrangements of $4 million.
Additional Fourth Quarter Fiscal Year 2016
Events
Senior Notes OfferingOn June 27, 2016, the Company completed an
offering of $500 million in aggregate principal amount of unsecured
senior notes. These senior notes will mature on June 27, 2026 and
bear interest at an annual rate of 3.40%. The Company used a
portion of the proceeds from the Fiscal 2016 Senior Notes offering
to repay outstanding borrowings under its Fiscal 2015 revolving
credit facility.
4sight Financial Software
Acquisition
In June 2016, Broadridge acquired 4sight Financial Software, a
global provider of securities financing and collateral management
systems to financial institutions. The aggregate purchase price was
$38 million.
Financial Results for Fiscal Year 2016
Revenues and Sales
Revenues for the fiscal year ended June 30, 2016 increased
8% to $2,897 million, compared to $2,694 million in the prior year.
The increase was primarily driven by: (i) higher recurring fee
revenues of $155 million, or 9%; (ii) higher distribution revenues
of $54 million, or 7%; and (iii) higher event-driven fee revenues
of $27 million, or 15%. The higher recurring fee revenues of
$155 million reflected gains from Net New Business (4 pts),
contributions from acquisitions (3 pts), and internal growth (1
pt). The increase in distribution revenues includes $19 million
from acquisitions.
Closed sales for fiscal year 2016 increased 3% to $151 million,
compared to $146 million in the prior year.
Operating income
For fiscal year 2016:
- Operating income was $500 million, an increase of $33 million,
or 7%, compared to $467 million in the prior year.
- Operating income margin was unchanged at 17.3%, compared to the
prior year.
- Adjusted Operating income was $537 million, an increase of $40
million, or 8%, compared to $497 million in the prior year.
- Adjusted Operating income margin was unchanged at 18.5%,
compared to the prior year.
The increase in Operating income and Adjusted Operating income
was due to: (i) higher revenues, partially offset by (ii) higher
operating expenses including an $11 million increase in severance
costs and a $7 million increase in amortization expense from
acquired intangibles.
Net Earnings and Earnings Per Share
For fiscal year 2016:
- Net earnings increased 7% to $307 million, compared to $287
million in the prior year.
- Adjusted Net earnings increased 8% to $332 million, compared to
$307 million in the prior year.
- Diluted earnings per share increased to $2.53, compared to
$2.32 in the prior year.
- Adjusted Diluted earnings per share increased 11% to $2.73,
compared to $2.47 in the prior year.
Net earnings and Adjusted Net earnings increased due to: (i)
higher revenues and a slightly favorable effective tax rate in
fiscal year 2016, partially offset by (ii) higher operating and
non-operating expenses.
Diluted earnings per share and Adjusted Diluted earnings per
share amounts were positively impacted $0.05 per share and $0.06
per share, respectively, by a 2% decline in the number of
weighted-average diluted shares outstanding to 122 million from 124
million in the prior year.
Segment and Other Results for Fiscal Year 2016
Investor Communication SolutionsInvestor Communication Solutions
segment Revenues in fiscal year 2016 increased $190 million, or 9%,
to $2,220 million, compared to $2,030 million in the prior year.
The increase was attributable to higher recurring fee revenues
which increased $109 million, or 10%, higher event-driven fee
revenues which contributed $27 million, and higher distribution
revenues which contributed $54 million. Higher recurring fee
revenues of 10% were driven by: (i) contributions from our recent
acquisitions (5 pts); (ii) higher Net New Business primarily driven
by increases in revenues from closed sales (5 pts); and (iii)
internal growth (1 pts). Position growth compared to the same
period in the prior year, which is a component of internal growth,
was 3% for annual equity proxy communications and 4% for mutual
fund interims and was the primary driver behind internal growth.
Higher event-driven fee revenues were the result of increased
mutual fund proxy and corporate re-organization communications
activity. Pre-tax margins decreased by 40 basis points to 18.4%,
primarily due to (i) higher operating expenses and (ii) incremental
operating and intangible amortization costs related to
acquisitions, partially offset by (iii) earnings from higher
recurring and event-driven revenues.
Global Technology and OperationsGlobal Technology and Operations
segment Revenues in fiscal year 2016 increased $46 million, or 7%,
to $738 million, compared to $693 million in the prior year. The
increase was attributable to: (i) higher Net New Business from
closed sales (3 pts); (ii) internal growth from increased usage of
products and services as well as trading activity, partially offset
by contract renewals (2 pts); and (iii) revenue from our recent
acquisitions (1 pt). Pre-tax margins increased by 90 basis points
to 18.3% primarily due to: (i) higher revenues from closed sales
and internal growth partially offset by (ii) incremental operating
costs and the impact of recent acquisitions.
OtherPre-tax loss increased by $6 million, or 7%, in fiscal year
2016 to $79 million from $74 million in the prior year. The
increased loss was mainly due to: (i) higher compensation expenses,
which included increased severance costs of $9 million and (ii) an
increase in interest expense, partially offset by (iii) a reduction
in the fair value of our obligation under contingent acquisition
consideration arrangements of $5 million.
Amounts presented throughout this release may not sum due to
rounding.
Subsequent Events
Customer Communications Acquisition
In July 2016, Broadridge completed the acquisition of the North
American Customer Communications business of DST Systems, Inc.,
expanding our product offerings in our Investor Communication
Solutions segment. This business will be integrated into our
existing customer communications business and is now known as
Broadridge Customer Communications. The aggregate purchase price
was $410 million in cash, subject to customary working capital and
other closing adjustments.
Dividend Declaration and Increase
On August 8, 2016, Broadridge's Board of Directors declared
a quarterly dividend of $0.33 per share payable on October 1, 2016
to stockholders of record on September 15, 2016. This declaration
reflects the Board's approval of an increase in the annual dividend
amount by 10% from $1.20 per share to $1.32 per share, subject to
the discretion of the Board of Directors to declare quarterly
dividends. With this increase, the Company's annual dividend has
increased for the ninth consecutive year since becoming a public
company in 2007.
Fiscal Year 2017 Financial Guidance
The Company anticipates:
- Recurring fee revenue growth in the range of 29% to 31%
- Total revenue growth in the range of 43% to 45%
- Adjusted Operating income margin of ~15%
- Diluted earnings per share growth in the range of 9% to
14%
- Adjusted Diluted earnings per share growth in the range of 12%
to 17%
- Free cash flows in the range of $350 million to $400
million
- Closed sales in the range of $140 million to $180 million
Earnings Conference Call
An analyst conference call will be held today, Tuesday,
August 9, 2016 at 8:30 a.m. ET. A live webcast of the call
will be available to the public on a listen-only basis. To listen
to the webcast and view the slide presentation, go to
www.broadridge-ir.com. The presentation will also be available to
download and print approximately one hour before the webcast.
Broadridge’s news releases, current financial information, SEC
filings and Investor Relations presentations are accessible on the
same website.
About BroadridgeBroadridge Financial Solutions,
Inc. (NYSE:BR) is the leading provider of investor communications
and technology-driven solutions for banks, broker-dealers, mutual
funds and corporate issuers. Broadridge’s investor and customer
communications, securities processing and managed services
solutions help clients reduce their capital investments in
operations infrastructure, allowing them to increase their focus on
core business activities. With over 50 years of experience,
Broadridge’s infrastructure underpins proxy voting services for
over 90% of public companies and mutual funds in North America, and
processes on average over $5 trillion in equity and fixed income
trades per day. Broadridge employs approximately 10,000
associates in 16 countries. For more information about
Broadridge, please visit www.broadridge.com.
Explanation and Reconciliation of the Company’s Use of
Non-GAAP Financial Measures
The Company’s results in this press release are presented in
accordance with U.S. GAAP except where otherwise noted. In certain
circumstances, results have been presented that are not generally
accepted accounting principles measures (“Non-GAAP”). These
Non-GAAP measures are Adjusted Operating income, Adjusted Operating
income margin, Adjusted Net earnings, Adjusted Diluted earnings per
share, and Free cash flows. These Non-GAAP financial measures
should be viewed in addition to, and not as a substitute for, the
Company’s reported results.
The Company believes our Non-GAAP financial measures help
investors understand how management plans, measures and evaluates
the Company’s business performance. Management believes that
Non-GAAP measures provide consistency in its financial reporting
and facilitates investors’ understanding of the Company’s
historical operating trends by providing an additional basis for
comparisons to prior periods. Management uses these Non-GAAP
financial measures to, among other things, evaluate our ongoing
operations, for internal planning and forecasting purposes and in
the calculation of performance-based compensation. In addition, and
as a consequence of the importance of these Non-GAAP financial
measures in managing our business, the Company’s Compensation
Committee of the Board of Directors incorporates Non-GAAP financial
measures in the evaluation process for determining management
compensation.
Adjusted Operating Income, Adjusted Operating Income
Margin, Adjusted Net Earnings and Adjusted Diluted Earnings Per
Share
These Non-GAAP measures reflect Operating income, Operating
income margin, Net earnings, and Diluted earnings per share, as
adjusted to exclude the impact of certain costs, expenses, gains
and losses and other specified items that management believes are
not indicative of our ongoing performance. These adjusted
measures exclude the impact of Acquisition Amortization and Other
Costs, which represent the amortization of acquired intangibles as
well as other transaction costs and certain integration costs
associated with the Company’s acquisition activities. We
exclude Acquisition Amortization and Other Costs from these
measures because excluding such information provides us with an
understanding of the results from the primary operations of our
business and these items do not reflect ordinary operations or
earnings. Management believes that these measures may be useful to
an investor in evaluating the underlying operating performance of
our business.
Free Cash Flows
In addition to the Non-GAAP financial measures discussed above,
we provide Free cash flow information because we consider Free cash
flows to be a liquidity measure that provides useful information to
management and investors about the amount of cash generated that
could be used for dividends, share repurchases, strategic
acquisitions and other discretionary investments. Free cash
flows is a Non-GAAP financial measure and is defined by the Company
as Net cash flows provided by operating activities less Capital
expenditures, software purchases and capitalized internal use
software.
Reconciliations of such Non-GAAP measures to the most directly
comparable financial measures presented in accordance with GAAP can
be found in the tables that are part of this press release.
Forward-Looking Statements
This press release and other written or oral statements made
from time to time by representatives of Broadridge may contain
“forward-looking statements” within the meaning of the Private
Securities Litigation Reform Act of 1995. Statements that are not
historical in nature, and which may be identified by the use of
words such as “expects,” “assumes,” “projects,” “anticipates,”
“estimates,” “we believe,” “could be” and other words of similar
meaning, are forward-looking statements. In particular, information
appearing in the “Fiscal Year 2017 Financial Guidance” section are
forward-looking statements. These statements are based on
management’s expectations and assumptions and are subject to risks
and uncertainties that may cause actual results to differ
materially from those expressed. These risks and uncertainties
include those risk factors discussed in Part I, “Item 1A. Risk
Factors” of our Annual Report on Form 10-K for the fiscal year
ended June 30, 2016 (the “2016 Annual Report”), as they may be
updated in any future reports filed with the Securities and
Exchange Commission. All forward-looking statements speak only as
of the date of this press release and are expressly qualified in
their entirety by reference to the factors discussed in the 2016
Annual Report.
These risks include: the success of Broadridge in retaining and
selling additional services to its existing clients and in
obtaining new clients; Broadridge’s reliance on a relatively small
number of clients, the continued financial health of those clients,
and the continued use by such clients of Broadridge’s services with
favorable pricing terms; changes in laws and regulations affecting
Broadridge’s clients or the services provided by Broadridge; any
material breach of Broadridge security affecting its clients’
customer information; declines in participation and activity in the
securities markets; the failure of Broadridge’s outsourced data
center services provider to provide the anticipated levels of
service; a disaster or other significant slowdown or failure of
Broadridge’s systems or error in the performance of Broadridge’s
services; overall market and economic conditions and their impact
on the securities markets; Broadridge’s failure to keep pace with
changes in technology and demands of its clients; Broadridge’s
ability to attract and retain key personnel; the impact of new
acquisitions and divestitures; and competitive conditions.
Broadridge disclaims any obligation to update or revise
forward-looking statements that may be made to reflect events or
circumstances that arise after the date made or to reflect the
occurrence of unanticipated events, other than as required by
law.
Broadridge
Financial Solutions, Inc. |
|
Consolidated
Statements of Earnings |
(In millions,
except per share amounts) |
(Unaudited) |
|
|
Three Months Ended June 30, |
|
Fiscal Year Ended June 30, |
|
2016 |
|
2015 |
|
2016 |
|
2015 |
Revenues |
$ |
974.5 |
|
|
$ |
929.6 |
|
|
$ |
2,897.0 |
|
|
$ |
2,694.2 |
|
Operating expenses: |
|
|
|
|
|
|
|
Cost of revenues |
586.3 |
|
|
555.1 |
|
|
1,975.9 |
|
|
1,828.2 |
|
Selling, general and
administrative expenses |
117.9 |
|
|
112.8 |
|
|
420.9 |
|
|
399.1 |
|
Total operating
expenses |
704.2 |
|
|
667.9 |
|
|
2,396.8 |
|
|
2,227.3 |
|
Operating income |
270.3 |
|
|
261.8 |
|
|
500.3 |
|
|
466.9 |
|
Non-operating expenses,
net |
7.8 |
|
|
6.4 |
|
|
31.4 |
|
|
28.0 |
|
Earnings before income
taxes |
262.5 |
|
|
255.4 |
|
|
468.9 |
|
|
438.9 |
|
Provision for income
taxes |
92.5 |
|
|
89.5 |
|
|
161.4 |
|
|
151.8 |
|
Net earnings |
$ |
170.1 |
|
|
$ |
165.9 |
|
|
$ |
307.5 |
|
|
$ |
287.1 |
|
|
|
|
|
|
|
|
|
Basic earnings per
share |
$ |
1.44 |
|
|
$ |
1.39 |
|
|
$ |
2.60 |
|
|
$ |
2.39 |
|
Diluted earnings per
share |
$ |
1.40 |
|
|
$ |
1.35 |
|
|
$ |
2.53 |
|
|
$ |
2.32 |
|
Weighted-average shares
outstanding: |
|
|
|
|
|
|
|
Basic |
118.1 |
|
|
119.1 |
|
|
118.3 |
|
|
119.9 |
|
Diluted |
121.1 |
|
|
122.6 |
|
|
121.6 |
|
|
124.0 |
|
|
Amounts may
not sum due to rounding. |
Broadridge
Financial Solutions, Inc. |
|
Consolidated
Balance Sheets |
(In millions,
except per share amounts) |
(Unaudited) |
|
|
|
June 30, 2016 |
|
June 30, 2015 |
Assets |
|
|
|
|
Current assets: |
|
|
|
|
Cash and cash equivalents |
|
$ |
727.7 |
|
|
$ |
324.1 |
|
Accounts receivable, net of
allowance for doubtful accounts of $2.3 and $3.8, respectively |
|
453.4 |
|
|
444.5 |
|
Other current assets |
|
108.0 |
|
|
92.8 |
|
Total current assets |
|
1,289.1 |
|
|
861.4 |
|
Property, plant and
equipment, net |
|
112.2 |
|
|
97.3 |
|
Goodwill |
|
999.3 |
|
|
970.5 |
|
Intangible assets,
net |
|
210.3 |
|
|
195.7 |
|
Other non-current
assets |
|
268.9 |
|
|
243.2 |
|
Total assets |
|
$ |
2,879.8 |
|
|
$ |
2,368.1 |
|
|
|
|
|
|
Liabilities and
Stockholders’ Equity |
|
|
|
|
Current liabilities: |
|
|
|
|
Accounts payable |
|
$ |
133.2 |
|
|
$ |
115.9 |
|
Accrued expenses and other current
liabilities |
|
352.2 |
|
|
320.4 |
|
Deferred revenues |
|
82.7 |
|
|
72.6 |
|
Current portion of long-term
debt |
|
124.9 |
|
|
— |
|
Total current liabilities |
|
693.0 |
|
|
508.9 |
|
Long-term debt, excluding
current portion |
|
897.6 |
|
|
689.4 |
|
Deferred taxes |
|
61.6 |
|
|
61.7 |
|
Deferred revenues |
|
70.3 |
|
|
75.2 |
|
Other non-current
liabilities |
|
111.8 |
|
|
105.1 |
|
Total liabilities |
|
1,834.3 |
|
|
1,440.3 |
|
Commitments and
contingencies |
|
|
|
|
Stockholders’ equity: |
|
|
|
|
Preferred stock: Authorized, 25.0
shares; issued and outstanding, none |
|
— |
|
|
— |
|
Common stock, $0.01 par value:
Authorized, 650.0 shares; issued, 154.5 and 154.5 shares,
respectively; outstanding, 118.3 and 118.2 shares,
respectively |
|
1.6 |
|
|
1.6 |
|
Additional paid-in capital |
|
901.2 |
|
|
855.5 |
|
Retained earnings |
|
1,297.8 |
|
|
1,132.0 |
|
Treasury stock, at cost: 36.2 and
36.3 shares, respectively |
|
(1,116.9 |
) |
|
(1,040.4 |
) |
Accumulated other comprehensive
loss |
|
(38.2 |
) |
|
(20.9 |
) |
Total stockholders’ equity |
|
1,045.5 |
|
|
927.8 |
|
Total liabilities and stockholders’
equity |
|
$ |
2,879.8 |
|
|
$ |
2,368.1 |
|
|
|
|
|
|
|
|
|
|
Amounts may not sum due to
rounding. |
|
|
|
|
|
|
|
|
Broadridge
Financial Solutions, Inc. |
|
Consolidated
Statements of Cash Flows |
(In
millions) |
(Unaudited) |
|
|
|
Years ended June 30, |
|
|
2016 |
|
2015 |
|
2014 |
Cash Flows From
Operating Activities |
|
|
|
|
|
|
Net earnings |
|
$ |
307.5 |
|
|
$ |
287.1 |
|
|
$ |
263.0 |
|
Adjustments to reconcile
Net earnings to Net cash flows provided by operating
activities: |
|
|
|
|
|
|
Depreciation and amortization |
|
52.6 |
|
|
49.3 |
|
|
46.8 |
|
Amortization of acquired
intangibles |
|
31.8 |
|
|
25.3 |
|
|
22.6 |
|
Amortization of other assets |
|
26.6 |
|
|
29.7 |
|
|
28.0 |
|
Deferred income taxes |
|
(5.9 |
) |
|
0.6 |
|
|
(11.6 |
) |
Stock-based compensation
expense |
|
43.1 |
|
|
38.6 |
|
|
34.6 |
|
Excess tax benefits from the
issuance of stock-based compensation awards |
|
(21.3 |
) |
|
(40.5 |
) |
|
(22.8 |
) |
Other |
|
(4.6 |
) |
|
8.8 |
|
|
2.7 |
|
Changes in operating
assets and liabilities: |
|
|
|
|
|
|
Current assets and
liabilities: |
|
|
|
|
|
|
(Increase) decrease in Accounts
receivable, net |
|
(5.3 |
) |
|
(4.2 |
) |
|
19.1 |
|
(Increase) decrease in Other
current assets |
|
(12.5 |
) |
|
14.0 |
|
|
(2.3 |
) |
Increase (decrease) in Accounts
payable |
|
6.2 |
|
|
1.9 |
|
|
(26.8 |
) |
Increase in Accrued expenses and
other current liabilities |
|
69.6 |
|
|
30.6 |
|
|
36.6 |
|
Increase in Deferred revenues |
|
2.9 |
|
|
7.1 |
|
|
5.8 |
|
Non-current assets and
liabilities: |
|
|
|
|
|
|
Increase in Other non-current
assets |
|
(59.5 |
) |
|
(45.3 |
) |
|
(38.4 |
) |
Increase in Other non-current
liabilities |
|
6.5 |
|
|
28.4 |
|
|
30.4 |
|
Net cash flows provided by
operating activities |
|
437.7 |
|
|
431.4 |
|
|
387.7 |
|
Cash Flows From
Investing Activities |
|
|
|
|
|
|
Capital expenditures |
|
(57.7 |
) |
|
(50.3 |
) |
|
(40.3 |
) |
Software purchases and
capitalized internal use software |
|
(17.8 |
) |
|
(15.7 |
) |
|
(13.1 |
) |
Equity method
investment |
|
(4.9 |
) |
|
(7.5 |
) |
|
— |
|
Acquisitions, net of cash
acquired |
|
(53.0 |
) |
|
(202.9 |
) |
|
(96.9 |
) |
Other investing
activities |
|
(3.4 |
) |
|
— |
|
|
— |
|
Net cash flows used in
investing activities |
|
(136.9 |
) |
|
(276.4 |
) |
|
(150.3 |
) |
Cash Flows From
Financing Activities |
|
|
|
|
|
|
Proceeds from Long-term
debt |
|
807.9 |
|
|
320.0 |
|
|
399.5 |
|
Repayments on Long-term
debt |
|
(475.0 |
) |
|
(155.0 |
) |
|
(400.0 |
) |
Dividends paid |
|
(138.2 |
) |
|
(122.3 |
) |
|
(96.7 |
) |
Proceeds from exercise of
stock options |
|
24.8 |
|
|
62.1 |
|
|
49.5 |
|
Purchases of Treasury
stock |
|
(119.8 |
) |
|
(301.7 |
) |
|
(129.7 |
) |
Costs related to amendment
of revolving credit facility |
|
— |
|
|
(1.9 |
) |
|
— |
|
Costs related to issuance
of bonds |
|
(3.6 |
) |
|
— |
|
|
(4.3 |
) |
Excess tax benefit from
the issuance of stock-based compensation awards |
|
21.3 |
|
|
40.5 |
|
|
22.8 |
|
Payment of contingent
consideration liabilities |
|
(8.9 |
) |
|
— |
|
|
— |
|
Net cash flows provided by
(used in) financing activities |
|
108.6 |
|
|
(158.3 |
) |
|
(158.9 |
) |
Effect of exchange rate
changes on Cash and cash equivalents |
|
(5.7 |
) |
|
(20.2 |
) |
|
3.1 |
|
Net change in Cash and
cash equivalents |
|
403.7 |
|
|
(23.5 |
) |
|
81.6 |
|
Cash and cash equivalents,
beginning of fiscal year |
|
324.1 |
|
|
347.6 |
|
|
266.0 |
|
Cash and cash equivalents,
end of fiscal year |
|
$ |
727.7 |
|
|
$ |
324.1 |
|
|
$ |
347.6 |
|
Supplemental
disclosure of cash flow information: |
|
|
|
|
|
|
Cash payments made for
interest |
|
$ |
26.7 |
|
|
$ |
24.1 |
|
|
$ |
17.1 |
|
Cash payments made for income
taxes, net of refunds |
|
$ |
122.4 |
|
|
$ |
85.4 |
|
|
$ |
150.3 |
|
Non-cash investing and financing
activities: |
|
|
|
|
|
|
Increase in unpaid property, plant,
equipment and software included in accrued expenses |
|
$ |
7.0 |
|
|
$ |
0.8 |
|
|
$ |
2.9 |
|
Increase in dividends payable |
|
$ |
3.6 |
|
|
$ |
6.7 |
|
|
$ |
3.7 |
|
Increase in acquisition related
obligations |
|
$ |
5.9 |
|
|
$ |
14.5 |
|
|
$ |
— |
|
Increase in unpaid deferred
financing costs related to the issuance of bonds |
|
$ |
0.8 |
|
|
$ |
— |
|
|
$ |
— |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Amounts may not sum due to rounding |
Broadridge
Financial Solutions, Inc. |
Segment
Results |
(In
millions) |
(Unaudited) |
|
|
Revenues |
|
Three Months Ended June 30, |
|
Fiscal Year Ended June 30, |
|
2016 |
|
2015 |
|
2016 |
|
2015 |
|
($ in millions) |
Investor Communication
Solutions |
$ |
803.6 |
|
|
$ |
765.8 |
|
|
$ |
2,220.4 |
|
|
$ |
2,030.2 |
|
Global Technology and
Operations |
189.7 |
|
|
177.6 |
|
|
738.0 |
|
|
692.5 |
|
Foreign currency
exchange |
(18.8 |
) |
|
(13.8 |
) |
|
(61.4 |
) |
|
(28.5 |
) |
Total |
$ |
974.5 |
|
|
$ |
929.6 |
|
|
$ |
2,897.0 |
|
|
$ |
2,694.2 |
|
|
Earnings (Loss) before Income
Taxes |
|
Three Months Ended June 30, |
|
Fiscal Year Ended June 30, |
|
2016 |
|
2015 |
|
2016 |
|
2015 |
|
($ in millions) |
Investor Communication
Solutions |
$ |
262.0 |
|
|
$ |
246.0 |
|
|
$ |
409.1 |
|
|
$ |
381.4 |
|
Global Technology and
Operations |
35.5 |
|
|
28.6 |
|
|
135.4 |
|
|
120.3 |
|
Other |
(34.7 |
) |
|
(20.0 |
) |
|
(79.0 |
) |
|
(73.5 |
) |
Foreign currency
exchange |
(0.3 |
) |
|
0.8 |
|
|
3.4 |
|
|
10.7 |
|
Total |
$ |
262.5 |
|
|
$ |
255.4 |
|
|
$ |
468.9 |
|
|
$ |
438.9 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Amounts
may not sum due to rounding. |
Broadridge
Financial Solutions, Inc. |
Reconciliation
of GAAP to Non-GAAP Measures |
(Unaudited) |
(In
millions, except per share amounts) |
|
|
Three Months Ended June 30, |
|
Fiscal Year Ended June 30, |
|
2016 |
|
2015 |
|
2016 |
|
2015 |
Operating income
(GAAP) |
$ |
270.3 |
|
|
$ |
261.8 |
|
|
$ |
500.3 |
|
|
$ |
466.9 |
|
Acquisition Amortization and Other
Costs |
8.8 |
|
|
8.6 |
|
|
36.8 |
|
|
30.2 |
|
Adjusted Operating income
(Non-GAAP) |
$ |
279.2 |
|
|
$ |
270.5 |
|
|
$ |
537.1 |
|
|
$ |
497.2 |
|
Operating income margin (GAAP) |
27.7 |
% |
|
28.2 |
% |
|
17.3 |
% |
|
17.3 |
% |
Adjusted Operating income margin
(Non-GAAP) |
28.6 |
% |
|
29.1 |
% |
|
18.5 |
% |
|
18.5 |
% |
|
Three Months Ended June 30, |
|
Fiscal Year Ended June 30, |
|
2016 |
|
2015 |
|
2016 |
|
2015 |
Net earnings (GAAP) |
$ |
170.1 |
|
|
$ |
165.9 |
|
|
$ |
307.5 |
|
|
$ |
287.1 |
|
Acquisition Amortization and Other
Costs |
8.8 |
|
|
8.6 |
|
|
36.8 |
|
|
30.2 |
|
Tax impact of
adjustment |
(3.3 |
) |
|
(3.1 |
) |
|
(12.7 |
) |
|
(10.5 |
) |
Acquisition
Amortization and Other Costs, net of taxes |
5.5 |
|
|
5.5 |
|
|
24.2 |
|
|
19.8 |
|
Adjusted Net earnings
(Non-GAAP) |
$ |
175.6 |
|
|
$ |
171.5 |
|
|
$ |
331.7 |
|
|
$ |
306.9 |
|
|
Three Months Ended June 30, |
|
Fiscal Year Ended June 30, |
|
2016 |
|
2015 |
|
2016 |
|
2015 |
Diluted earnings per share
(GAAP) |
$ |
1.40 |
|
|
$ |
1.35 |
|
|
$ |
2.53 |
|
|
$ |
2.32 |
|
Acquisition Amortization and Other
Costs, net of taxes |
0.05 |
|
|
0.05 |
|
|
0.20 |
|
|
0.16 |
|
Adjusted Diluted earnings
per share (Non-GAAP) |
$ |
1.45 |
|
|
$ |
1.40 |
|
|
$ |
2.73 |
|
|
$ |
2.47 |
|
|
|
Fiscal Year Ended June 30, |
|
|
2016 |
|
2015 |
Net cash flows provided by
operating activities (GAAP) |
|
$ |
437.7 |
|
|
$ |
431.4 |
|
Capital expenditures, software purchases and
capitalized internal use software |
|
(75.5 |
) |
|
(66.0 |
) |
Free cash flows
(Non-GAAP) |
|
$ |
362.2 |
|
|
$ |
365.4 |
|
|
Amounts may
not sum due to rounding.
|
Broadridge
Financial Solutions, Inc. |
Reconciliation of
GAAP to Non-GAAP Measures |
Adjusted Diluted
Earnings Per Share Growth, Adjusted Operating Income Margin and
Free Cash Flows |
Fiscal Year 2017
Guidance |
($ in
millions) |
(Unaudited) |
|
Adjusted
Earnings Per Share Growth Rate (1) |
|
|
Diluted earnings per share
(GAAP) |
|
9% -
14% growth |
Adjusted Diluted earnings per share
(Non-GAAP) |
|
12% -
17% growth |
|
|
|
Adjusted
Operating Income Margin (2) |
|
|
Operating income margin %
(GAAP) |
|
~13.6% |
Adjusted Operating income margin %
(Non-GAAP) |
|
~15% |
|
|
|
Free Cash
Flows |
|
|
Net cash flows provided by
operating activities (GAAP) |
|
$470 -
$550 |
Capital expenditures, software
purchases and capitalized internal use software |
|
(120) -
(150) |
Free cash flows (Non-GAAP) |
|
$350 - $400 |
|
|
|
(1) Adjusted Diluted EPS growth (Non-GAAP) is adjusted to
exclude the projected impact of Acquisition Amortization and Other
Costs. Fiscal year 2017 Non-GAAP Adjusted Diluted EPS guidance
estimates exclude estimated Acquisition Amortization and Other
Costs, net of taxes, of approximately $0.31 per share.
(2) Adjusted Operating income margin (Non-GAAP) is
adjusted to exclude the projected impact of Acquisition
Amortization and Other Costs. Fiscal year 2017 Non-GAAP Adjusted
Operating income margin guidance estimates exclude Acquisition
Amortization and Other Costs of approximately $58 million.
Contact Information
Investors:
W. Edings Thibault
Head of Investor Relations
(516) 472-5129
Media:
Linda Namias
Senior Director, Corporate Communications
(631) 254-7711
Broadridge Financial Sol... (NYSE:BR)
Historical Stock Chart
From Jun 2024 to Jul 2024
Broadridge Financial Sol... (NYSE:BR)
Historical Stock Chart
From Jul 2023 to Jul 2024