First Quarter Diluted EPS Growth of 50%
and Adjusted EPS growth of 50%
Broadridge Financial Solutions, Inc. (NYSE:BR) today reported
financial results for the first quarter ended September 30, 2017 of
its fiscal year 2018.
Summary Financial Results |
|
First Quarter |
|
Dollars in
millions, except per share data, unaudited |
|
|
2018 |
|
|
2017 |
Change |
|
|
|
|
|
|
Total
revenues |
|
$925 |
|
$895 |
3 |
% |
Recurring
fee revenues |
|
|
548 |
|
|
517 |
6 |
% |
|
|
|
|
|
|
Operating
income |
|
|
84 |
|
|
66 |
28 |
% |
|
Operating income
margin |
|
|
9.1% |
|
|
7.4% |
|
|
|
|
|
|
|
Adjusted
operating income - Non-GAAP |
|
|
106 |
|
|
82 |
30 |
% |
|
Adjusted operating
income margin - Non-GAAP |
|
|
11.5% |
|
|
9.1% |
|
|
|
|
|
|
|
Diluted
EPS |
|
$0.42 |
|
$0.28 |
50 |
% |
Adjusted
EPS - Non-GAAP |
|
$0.54 |
|
$0.36 |
50 |
% |
|
|
|
|
|
|
Closed
sales |
|
$23 |
|
$22 |
6 |
% |
Richard J. Daly, Chief Executive Officer commented, “Broadridge
reported a strong first quarter and is off to a good start to the
fiscal year. Recurring fee revenues rose 6% in the first quarter of
2018, fueled by 5% organic growth. We also continued to build sales
momentum, with an increase in closed sales and a strong
pipeline. Broadridge benefited from robust levels of
event-driven activity in the first quarter, which highlight the
critical role that our company plays in corporate governance and
contributed to our strong earnings performance."
"We are on track to achieve our fiscal year 2018 financial
guidance and are well-positioned for future growth," Mr. Daly
added.
Fiscal Year 2018 Financial Guidance
Recurring fee revenue
growth |
|
|
|
4-6% |
Total revenue
growth |
|
|
|
2-3% |
|
|
|
|
|
Operating income margin
- GAAP |
|
|
|
~14% |
Adjusted operating
income margin - Non-GAAP |
|
|
|
~16% |
|
|
|
|
|
Diluted earnings per
share growth* |
|
|
|
15-19% |
Adjusted earnings per
share growth* - Non-GAAP |
|
|
|
15-19% |
|
|
|
|
|
Free cash flow* -
Non-GAAP |
|
|
|
$400-450M |
Closed sales |
|
|
|
$170-210M |
|
|
|
|
|
* Includes
projected $25 million, or $0.19 per share, from excess tax benefit
from stock-based compensation |
Financial Results for the First Quarter Fiscal Year
2018
Revenues
Revenues for the three months ended September 30, 2017 ("first
quarter of fiscal year 2018") increased 3% to $925 million from
$895 million in the prior year period.
Recurring fee revenues rose 6% to $548 million. The increase in
recurring fee revenues reflected organic growth of 5%, including 3%
from Net New Business, 1% from our recent acquisitions and 1% from
internal growth. Event-driven fee revenues rose 58% to $59 million,
primarily from increased proxy contest activity and higher mutual
fund proxy activity. Distribution revenues declined $22 million, or
6%, to $334 million. Changes in foreign currency rates lowered
revenues by $1 million as compared to the prior year period.
Operating Income
For the first quarter of fiscal year 2018:
- Operating income was $84 million, an increase of $18 million,
or 28%, compared to $66 million for the prior year period.
Operating income margin increased to 9.1% compared to 7.4% for the
prior year period.
- Adjusted operating income was $106 million, an increase of $24
million, or 30%, compared to $82 million for the prior year period.
Adjusted operating income margin increased to 11.5% compared to
9.1% for the prior year period.
- The increases in Operating income margin and Adjusted operating
income margin are primarily due to the increase in recurring fee
revenues and event-driven fee revenues.
Interest Expense and Other Non-operating
Expenses
Interest expense, net for the first quarter of fiscal year 2018
was $9 million, a decrease of $1 million, or 10%, compared to $10
million for the prior year period. The decrease was primarily due
to lower interest expense driven by a more favorable mix of
interest rates on outstanding borrowings.
Other non-operating expenses, net were $1 million, a decrease of
$3 million, or 83%, compared to $4 million for the prior year
period. The decrease was primarily due to lower expense of $3
million related to fluctuations in foreign currency exchange
rates.
The effective tax rate for the first quarter of fiscal year 2018
was 32.8% compared to 34.8% for the prior year period. The decrease
in the effective tax rate is primarily attributable to the
recognition of $2 million of excess tax benefits associated with
stock compensation. Excluding that benefit, the effective tax
rate would have been 34.9%.
Net Earnings and Earnings per Share
For the first quarter of fiscal year 2018:
- Net earnings increased 48% to $50 million, compared to $34
million for the prior year period.
- Adjusted net earnings increased 46% to $64 million, compared to
$44 million for the prior year period.
- Diluted earnings per share increased 50% to $0.42, compared to
$0.28 for the prior year period.
- Adjusted earnings per share increased 50% to $0.54 from $0.36
for the prior year period.
Segment and Other Results for First Quarter Fiscal Year
2018
Investor Communication Solutions ("ICS")
ICS revenues for the first quarter of fiscal year 2018 were $733
million, an increase of $10 million, or 1%, compared
to $723 million for the prior year period.
- Recurring fee revenues rose $11 million, or 3%, to $340
million. The increase was primarily driven by Net New Business from
increases in revenues from Closed sales.
- Event-driven fee revenues increased $22 million, or 58%, to $59
million, the result of increased proxy contests and mutual fund
proxy activity.
- Position growth compared to the same period in the prior year,
which is a component of internal growth, was 9% for mutual fund
interims.
- Distribution revenues decreased $22 million, or 6%, to $334
million.
Earnings before income taxes for the first quarter of fiscal
year 2018 were $44 million, an increase of $12 million, or 35%,
compared to $33 million for the prior year period, primarily due to
higher recurring fee revenues and event-driven fee revenues.
Pre-tax margins increased by 1.6 percentage points to 6.1% from
4.5%.
Global Technology and Operations ("GTO")
GTO revenues for the first quarter of fiscal year 2018 were $208
million, an increase of $20 million, or 11%, compared to $188
million in the prior year period. The increase was attributable to:
(i) higher Net New Business from Closed sales (6pts), (ii) revenue
from recent acquisitions (3pts) and (iii) internal growth from
higher trade and non-trade activity levels (2pts).
GTO earnings before income taxes were $46 million, an increase
of $8 million, or 21%, compared to $38 million in the prior year
period, primarily due to higher organic revenues. Pre-tax margins
increased by 1.8 percentage points to 22.2% from 20.4%
OtherOther Pre-tax loss decreased 6% in the first quarter of
fiscal year 2018 to $22 million from $23 million in the prior year
period. The decrease was primarily due to a decrease in interest
expense, net of $1 million.
Other Events
Acquisition of Summit Financial
On October 2, 2017, Broadridge announced the acquisition of
Summit Financial Disclosure, LLC (“Summit”). Summit is a full
service financial document management solutions provider, including
document composition and regulatory filing services.
Earnings Conference Call
An analyst conference call will be held today, Wednesday,
November 8, 2017 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 live event and access the slide presentation, visit
Broadridge’s Investor Relations website at www.broadridge-ir.com
prior to the start of the webcast. To listen to the call, investors
may also dial 1-844-348-2805 within the United States and
international callers may dial 1-213-785-7185.
A replay of the webcast will be available and can be accessed in
the same manner as the live webcast at the Broadridge Investor
Relations site. Through November 22, 2017, the recording will also
be available by dialing 1-855-859-2056 passcode: 2897357 within the
United States or 1-404-537-3406 passcode: 2897357 for international
callers.
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. generally accepted accounting principles
("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 earnings per share, and
Free cash flow. 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 operating
results and trends by providing an additional basis for comparison.
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 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 operating performance. These adjusted
measures exclude the impact of Amortization of Acquired Intangibles
and Purchased Intellectual Property and Acquisition and Integration
Costs. Amortization of Acquired Intangibles and Purchased
Intellectual Property represents non-cash expenses associated with
the Company's acquisition activities. Acquisition and Integration
Costs represent certain transaction and integration costs
associated with the Company’s acquisition activities.
We exclude Amortization of Acquired Intangibles and Purchased
Intellectual Property and Acquisition and Integration 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 these measures may be useful to an
investor in evaluating the underlying operating performance of our
business.
Free Cash FlowIn addition to the Non-GAAP
financial measures discussed above, we provide Free cash flow
information because we consider Free cash flow 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, other
investments, as well as debt servicing. Free cash flow is a
Non-GAAP financial measure and is defined by the Company as Net
cash flows provided by operating activities less Capital
expenditures as well as 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 2018 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, 2017 (the “2017 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 2017
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; any material breach of Broadridge security
affecting its clients’ customer information; changes in laws and
regulations affecting Broadridge’s clients or the services provided
by Broadridge; 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.
About Broadridge
Broadridge Financial Solutions, Inc. (NYSE:BR) a global fintech
leader, is the leading provider of investor communications and
technology-driven solutions to banks, broker-dealers, mutual funds
and corporate issuers globally. Broadridge's investor
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 percent of public companies and mutual funds in North
America, and processes on average more than $5 trillion in fixed
income and equity trades per day. Broadridge employs over 10,000
full time associates in 16 countries. For more information about
Broadridge, please visit www.broadridge.com.
Contact
InformationInvestors:
W. Edings ThibaultInvestor Relations(516) 472-5129
Media:
Gregg RosenbergCorporate Communications(212) 918-6966
|
Broadridge Financial Solutions,
Inc. |
|
Condensed Consolidated Statements of
Earnings |
(In millions, except per share
amounts) |
(Unaudited) |
|
Three Months Ended September
30, |
|
2017 |
|
2016 |
Revenues |
$ |
924.8 |
|
$ |
895.3 |
Operating
expenses: |
|
|
|
Cost of
revenues |
726.6 |
|
717.9 |
Selling, general
and administrative expenses |
113.8 |
|
111.3 |
Total operating expenses |
840.3 |
|
829.3 |
Operating income |
84.4 |
|
66.0 |
Interest expense,
net |
9.4 |
|
10.4 |
Other non-operating
(income) expenses, net |
0.7 |
|
4.2 |
Earnings before income
taxes |
74.3 |
|
51.5 |
Provision for income
taxes |
24.4 |
|
17.9 |
Net earnings |
$ |
49.9 |
|
$ |
33.7 |
|
|
|
|
Basic earnings per
share |
$ |
0.43 |
|
$ |
0.28 |
Diluted earnings per
share |
$ |
0.42 |
|
$ |
0.28 |
|
|
|
|
Weighted-average shares
outstanding: |
|
|
|
Basic |
116.5 |
|
118.5 |
Diluted |
119.8 |
|
121.6 |
Dividends declared per
common share |
$ |
0.365 |
|
$ |
0.33 |
Amounts may not sum due to rounding.
|
Broadridge Financial Solutions,
Inc. |
|
Condensed Consolidated Balance
Sheets |
(In millions, except per share
amounts) |
(Unaudited) |
|
September 30, 2017 |
|
June 30, 2017 |
Assets |
|
|
|
Current assets: |
|
|
|
Cash and
cash equivalents |
$ |
288.8 |
|
|
$ |
271.1 |
|
Accounts
receivable, net of allowance for doubtful accounts of $4.8 and
$3.7, respectively |
624.4 |
|
|
589.5 |
|
Other
current assets |
121.2 |
|
|
129.0 |
|
Total
current assets |
1,034.3 |
|
|
989.6 |
|
Property, plant and
equipment, net |
207.6 |
|
|
198.1 |
|
Goodwill |
1,177.3 |
|
|
1,159.3 |
|
Intangible assets,
net |
469.9 |
|
|
486.4 |
|
Other non-current
assets |
335.5 |
|
|
316.4 |
|
Total
assets |
$ |
3,224.5 |
|
|
$ |
3,149.8 |
|
Liabilities and
Stockholders’ Equity |
|
|
|
Current
liabilities: |
|
|
|
Accounts
payable |
$ |
157.3 |
|
|
$ |
167.2 |
|
Accrued
expenses and other current liabilities |
331.0 |
|
|
495.3 |
|
Deferred
revenues |
121.1 |
|
|
82.4 |
|
Total
current liabilities |
609.4 |
|
|
744.9 |
|
Long-term debt |
1,292.4 |
|
|
1,102.1 |
|
Deferred taxes |
58.2 |
|
|
82.0 |
|
Deferred revenues |
75.4 |
|
|
74.3 |
|
Other non-current
liabilities |
151.1 |
|
|
142.7 |
|
Total
liabilities |
2,186.6 |
|
|
2,146.0 |
|
Commitments and
contingencies |
|
|
|
Stockholders’
equity: |
|
|
|
Preferred
stock: Authorized, 25.0 shares; issued and outstanding, none |
— |
|
|
— |
|
Common
stock, $0.01 par value: 650.0 shares authorized; 154.5 and 154.5
shares issued, respectively; and 116.5 and 116.5 shares
outstanding, respectively |
1.6 |
|
|
1.6 |
|
Additional paid-in capital |
995.7 |
|
|
987.6 |
|
Retained
earnings |
1,477.0 |
|
|
1,469.4 |
|
Treasury
stock, at cost: 37.9 and 38.0 shares, respectively |
(1,399.3 |
) |
|
(1,398.9 |
) |
Accumulated other comprehensive loss |
(37.1 |
) |
|
(55.8 |
) |
Total
stockholders’ equity |
1,037.9 |
|
|
1,003.8 |
|
Total
liabilities and stockholders’ equity |
$ |
3,224.5 |
|
|
$ |
3,149.8 |
|
Amounts may not sum due to rounding.
|
Broadridge Financial Solutions,
Inc. |
|
Condensed Consolidated Statements of Cash
Flows |
(In millions) |
(Unaudited) |
|
|
Three Months Ended September
30, |
|
2017 |
|
2016 |
Cash Flows From
Operating Activities |
|
|
|
Net earnings |
$ |
49.9 |
|
|
$ |
33.7 |
|
Adjustments to
reconcile Net earnings to Net cash flows provided by operating
activities: |
|
|
|
Depreciation and amortization |
19.4 |
|
|
17.5 |
|
Amortization of acquired intangibles and purchased intellectual
property |
19.4 |
|
|
12.8 |
|
Amortization of other assets |
11.1 |
|
|
9.5 |
|
Stock-based compensation expense |
8.5 |
|
|
8.8 |
|
Deferred
income taxes |
(5.1 |
) |
|
(7.8 |
) |
Excess
tax benefits from stock-based compensation awards |
— |
|
|
(20.9 |
) |
Other |
(2.1 |
) |
|
0.2 |
|
Changes in operating
assets and liabilities, net of assets and liabilities
acquired: |
|
|
|
Current
assets and liabilities: |
|
|
|
Decrease
(increase) in Accounts receivable, net |
(32.1 |
) |
|
44.4 |
|
Increase
in Other current assets |
(18.0 |
) |
|
(27.5 |
) |
Decrease
in Accounts payable |
(3.0 |
) |
|
(7.9 |
) |
Decrease
in Accrued expenses and other current liabilities |
(162.5 |
) |
|
(118.5 |
) |
Increase
(decrease) in Deferred revenues |
37.7 |
|
|
(11.7 |
) |
Non-current assets and liabilities: |
|
|
|
Increase
in Other non-current assets |
(24.6 |
) |
|
(27.1 |
) |
Increase
in Other non-current liabilities |
8.1 |
|
|
7.3 |
|
Net cash flows used in
operating activities |
(93.3 |
) |
|
(87.4 |
) |
Cash Flows From
Investing Activities |
|
|
|
Capital
expenditures |
(29.7 |
) |
|
(7.2 |
) |
Software purchases and
capitalized internal use software |
(6.3 |
) |
|
(7.6 |
) |
Acquisitions, net of
cash acquired |
(3.7 |
) |
|
(402.0 |
) |
Purchase of
intellectual property |
— |
|
|
(90.0 |
) |
Equity method
investment |
(1.5 |
) |
|
(1.6 |
) |
Net cash flows used in
investing activities |
(41.2 |
) |
|
(508.4 |
) |
Cash Flows From
Financing Activities |
|
|
|
Proceeds from Long-term
debt |
190.0 |
|
|
110.0 |
|
Excess tax benefits
from stock-based compensation awards |
— |
|
|
20.9 |
|
Dividends paid |
(37.9 |
) |
|
(35.5 |
) |
Purchases of Treasury
stock |
(2.3 |
) |
|
(40.0 |
) |
Proceeds from exercise
of stock options |
1.8 |
|
|
41.4 |
|
Costs related to
issuance of bonds |
— |
|
|
(0.7 |
) |
Other financing
activities |
(5.5 |
) |
|
— |
|
Net cash flows provided
by financing activities |
146.1 |
|
|
96.1 |
|
Effect of exchange rate
changes on Cash and cash equivalents |
6.0 |
|
|
(0.7 |
) |
Net change in Cash and
cash equivalents |
17.7 |
|
|
(500.3 |
) |
Cash and cash
equivalents, beginning of period |
271.1 |
|
|
727.7 |
|
Cash and cash
equivalents, end of period |
$ |
288.8 |
|
|
$ |
227.4 |
|
Amounts may not sum due to rounding.
|
Broadridge Financial Solutions,
Inc. |
Segment Results |
(In millions) |
(Unaudited) |
|
Revenues |
|
Three Months Ended September
30, |
|
2017 |
|
2016 |
|
(in millions) |
Investor Communication
Solutions |
$ |
733.5 |
|
|
$ |
723.3 |
|
Global Technology and
Operations |
207.9 |
|
|
187.8 |
|
Foreign currency
exchange |
(16.5 |
) |
|
(15.9 |
) |
Total |
$ |
924.8 |
|
|
$ |
895.3 |
|
|
Earnings (Loss) before Income
Taxes |
|
Three Months Ended September
30, |
|
2017 |
|
2016 |
|
(in millions) |
Investor Communication
Solutions |
$ |
44.5 |
|
|
$ |
32.9 |
|
Global Technology and
Operations |
46.2 |
|
|
38.3 |
|
Other |
(21.5 |
) |
|
(22.8 |
) |
Foreign currency
exchange |
5.2 |
|
|
3.2 |
|
Total |
$ |
74.3 |
|
|
$ |
51.5 |
|
Amounts may not sum due to rounding.
Broadridge Financial Solutions,
Inc. |
Reconciliation of Non-GAAP to GAAP
Measures |
(In millions, except per share amounts.
unaudited) |
|
|
Three Months Ended September
30, |
|
2017 |
|
2016 |
|
(in millions) |
Operating income
(GAAP) |
$ |
84.4 |
|
|
$ |
66.0 |
|
Adjustments: |
|
|
|
Amortization of Acquired Intangibles and Purchased Intellectual
Property |
19.4 |
|
|
12.8 |
|
Acquisition and Integration Costs |
2.0 |
|
|
2.8 |
|
Adjusted Operating
income (Non-GAAP) |
$ |
105.9 |
|
|
$ |
81.6 |
|
|
|
|
|
Operating income
margin (GAAP) |
9.1 |
% |
|
7.4 |
% |
Adjusted
Operating income margin (Non-GAAP) |
11.5 |
% |
|
9.1 |
% |
|
Three Months Ended September
30, |
|
2017 |
|
2016 |
|
(in millions) |
Net earnings
(GAAP) |
$ |
49.9 |
|
|
$ |
33.7 |
|
Adjustments: |
|
|
|
Amortization of Acquired Intangibles and Purchased Intellectual
Property |
19.4 |
|
|
12.8 |
|
Acquisition and Integration Costs |
2.0 |
|
|
2.8 |
|
Tax
impact of adjustments |
(7.0 |
) |
|
(5.4 |
) |
Adjusted Net earnings
(Non-GAAP) |
$ |
64.3 |
|
|
$ |
43.9 |
|
|
Three Months Ended September
30, |
|
2017 |
|
2016 |
Diluted earnings per
share (GAAP) |
$ |
0.42 |
|
|
$ |
0.28 |
|
Adjustments: |
|
|
|
Amortization of Acquired Intangibles and Purchased Intellectual
Property |
0.16 |
|
|
0.11 |
|
Acquisition and Integration Costs |
0.02 |
|
|
0.02 |
|
Tax
impact of adjustments |
(0.06 |
) |
|
(0.04 |
) |
Adjusted earnings per
share (Non-GAAP) |
$ |
0.54 |
|
|
$ |
0.36 |
|
|
Three Months Ended September
30, |
|
2017 |
|
2016 |
|
(in millions) |
Net cash flows used in
operating activities (GAAP) |
$ |
(93.3 |
) |
|
$ |
(87.4 |
) |
|
|
|
|
Capital expenditures
and Software purchases and capitalized internal use software |
(36.0 |
) |
|
(14.7 |
) |
Free cash flow
(Non-GAAP) |
$ |
(129.3 |
) |
|
$ |
(102.1 |
) |
Amounts may not sum due to rounding.
|
Broadridge Financial Solutions,
Inc. |
Reconciliation of Non-GAAP to GAAP
Measures |
Adjusted Earnings Per Share Growth, Adjusted
Operating Income Margin and Free Cash Flow |
Fiscal Year 2018 Guidance |
(In millions, except per share
amounts) |
(Unaudited) |
|
|
|
|
Adjusted
Earnings Per Share Growth Rate (1) (2) |
|
|
Diluted
earnings per share (GAAP) |
|
15% -
19% growth |
Adjusted
earnings per share (Non-GAAP) |
|
15% -
19% growth |
|
|
|
Adjusted
Operating Income Margin (3) |
|
|
Operating
income margin % (GAAP) |
|
~14% |
Adjusted
Operating income margin % (Non-GAAP) |
|
~16% |
|
|
|
Free Cash Flow
(2) |
|
|
Net cash flows
provided by operating activities (GAAP) |
|
$510 -
$580 |
Capital
expenditures and Software purchases and capitalized internal use
software |
|
(110) -
(130) |
Free cash flow
(Non-GAAP) |
|
$400 - $450 |
|
|
|
(1) Adjusted EPS growth (Non-GAAP) is adjusted to exclude
the projected impact of Amortization of Acquired Intangibles and
Purchased Intellectual Property, and Acquisition and Integration
Costs, and is calculated using diluted shares outstanding. Fiscal
year 2018 Non-GAAP Adjusted EPS guidance estimates exclude
Amortization of Acquired Intangibles and Purchased Intellectual
Property, and Acquisition and Integration Costs, net of taxes, of
approximately $0.50 per share.
(2) Includes projected $25 million, or $0.19 per share,
from excess tax benefit from stock-based compensation.
(3) Adjusted Operating income margin (Non-GAAP) is
adjusted to exclude the projected impact of Amortization of
Acquired Intangibles and Purchased Intellectual Property, and
Acquisition and Integration Costs. Fiscal year 2018 Non-GAAP
Adjusted Operating income margin guidance estimates exclude
Amortization of Acquired Intangibles and Purchased Intellectual
Property, and Acquisition and Integration Costs of approximately
$90 million.
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