NEW YORK, May 7, 2019
/PRNewswire/ -- Broadridge Financial Solutions, Inc. (NYSE:BR)
today reported financial results for the third quarter and nine
months ended March 31, 2019 of its
fiscal year 2019. Results for the three and nine months ended
March 31, 2019 compared with the same
period last year were as follows:
Summary Financial
Results
|
|
Third
Quarter
|
|
Nine
Months
|
|
Dollars in
millions, except per share data
|
|
2019
|
2018
|
Change
|
2019
|
2018
|
Change
|
|
|
|
|
|
|
|
|
|
Total
revenues
|
|
$1,225
|
$1,072
|
|
14%
|
$3,151
|
$3,009
|
5%
|
Recurring fee
revenues
|
|
767
|
639
|
|
20%
|
1,946
|
1,749
|
11%
|
|
|
|
|
|
|
|
|
|
Operating
income
|
|
234
|
131
|
|
79%
|
412
|
332
|
24%
|
|
Operating income
margin
|
|
|
19.1%
|
|
12.2%
|
|
|
13.1%
|
|
11.0%
|
|
|
|
|
|
|
|
|
|
|
Adjusted Operating
income - Non-GAAP
|
|
256
|
152
|
|
68%
|
479
|
397
|
21%
|
|
Adjusted Operating
income margin - Non-GAAP
|
|
|
20.9%
|
|
14.2%
|
|
|
15.2%
|
|
13.2%
|
|
|
|
|
|
|
|
|
|
|
Diluted
EPS
|
|
$1.45
|
$0.90
|
|
61%
|
$2.51
|
$1.84
|
36%
|
Adjusted EPS -
Non-GAAP
|
|
$1.59
|
$1.00
|
|
59%
|
$2.94
|
$2.33
|
26%
|
|
|
|
|
|
|
|
|
|
Closed
sales
|
|
$37
|
$38
|
|
(3)%
|
$161
|
$100
|
62%
|
"After a solid third quarter, Broadridge is very well-positioned
to deliver strong full-year results. In addition, we continue to
make progress on key growth initiatives including next generation
regulatory communications and adding clients to our
industry-leading technology platforms," said Tim Gokey, Broadridge's President and Chief
Executive Officer. "Our sales pipeline remains strong which,
combined with our sales over the first three quarters of the year,
positions us well for future growth.
"We are raising our full-year Closed sales guidance and
reaffirming our fiscal year 2019 guidance for recurring revenue
growth and EPS growth. Our ability to deliver double-digit adjusted
EPS growth reflects the strength of the Broadridge business model
and the growth of our recurring revenue. As we close out fiscal
year 2019, we remain confident that we are on track to deliver
long-term growth and achieve the three year objectives we laid out
at our 2017 Investor Day," Mr. Gokey added.
Fiscal Year 2019 Financial Guidance -
Updated
|
|
Prior
|
Current
|
Recurring fee revenue
growth
|
|
5-7%
|
5-7%
|
Total revenue
growth
|
|
3-5%
|
~1%
|
|
|
|
|
Operating income
margin - GAAP
|
|
~14.5%
|
~15.0%
|
Adjusted Operating
income margin - Non-GAAP
|
|
~16.5%
|
~17.0%
|
|
|
|
|
Diluted earnings per
share growth
|
|
12-16%
|
12-16%
|
Adjusted Earnings per
share growth - Non-GAAP
|
|
9-13%
|
9-13%
|
|
|
|
|
Free cash flow -
Non-GAAP
|
|
$565-615M
|
$565-615M
|
Closed
sales
|
|
$185-225M
|
$200-240M
|
|
|
|
|
Note: Current
fiscal year 2019 guidance includes $20 million of excess tax
benefits related to stock-based compensation, reduced from $25
million assumed in Prior fiscal year 2019 guidance and down from
$41 million in fiscal year 2018.
|
Adoption of New Accounting Standards
Effective July 1, 2018, Broadridge
adopted Accounting Standards Update No. 2014-09 "Revenue from
Contracts with Customers" and its related amendments (the "ASC 606
revenue accounting change") using the modified retrospective
transition approach. Under this transition approach, results for
reporting periods beginning after July 1,
2018 reflect the ASC 606 revenue accounting change while
prior period amounts have not been adjusted and continue to be
reported in accordance with historical accounting guidelines. Where
noted however, discussions of recurring fee revenue growth and
points of growth are presented assuming that the ASC 606 revenue
accounting change had been applied to fiscal 2018 revenues. Please
refer to Broadridge's Quarterly Report on Form 10-Q for the quarter
ended March 31, 2019 for additional
information related to this change.
Financial Results for the Third Quarter of Fiscal Year
2019
Revenues
Total revenues for the three months ended March 31, 2019 ("third quarter of fiscal year
2019") increased 14% to $1,225
million from $1,072 million in
the prior year period. The $153
million increase was driven by (i) higher recurring fee
revenues of $128 million, or 12pts,
(ii) higher distribution revenues of $33
million, or 3pts, (iii) higher event-driven fee revenues of
$2 million, or 0pt, and (iv) changes
in foreign currency rates which negatively impacted revenues by
$10 million, or (1pt).
Recurring fee revenues for the third quarter of fiscal year 2019
increased 20% to $767 million from
$639 million in the prior year
period. Recurring fee revenues for the three months ended
March 31, 2018 ("third quarter of
fiscal year 2018") would have been $98
million higher if the prior year basis of revenue accounting
followed the current year basis of revenue accounting. Considering
the impact of the ASC 606 revenue accounting change, recurring fee
revenues would have grown $31
million, or 4%, reflecting organic growth of 3pts and growth
from acquisitions of 1pt.
Operating Income
For the third quarter of fiscal year 2019:
- Operating income was $234
million, an increase of $103
million, or 79%, compared to $131
million for the prior year period. Operating income margin
increased to 19.1%, compared to 12.2% for the prior year
period.
- Adjusted Operating income was $256
million, an increase of $103
million, or 68%, compared to $152
million for the prior year period. Adjusted Operating income
margin increased to 20.9%, compared to 14.2% for the prior year
period.
- The increases in Operating income margin and Adjusted Operating
income margin are primarily due to (i) the increase in recurring
fee revenues driven by the ASC 606 revenue accounting change, which
more than offset (ii) higher cost of revenues from the increase in
revenues.
Interest Expense and Other Non-Operating Income, Net
Interest expense, net for the third quarter of fiscal year 2019
was $10 million, an increase of
$1 million, or 11%, compared to
$9 million for the prior year period
primarily due to an increase in interest expense from higher
interest rates on borrowings. Other non-operating income, net was
less than $1 million, a decrease of
$3 million, compared to $3 million for the prior year period. The
decrease was primarily due to higher investment gains in the prior
period.
Effective Tax Rate
The effective tax rate for the third quarter of fiscal year 2019
was 23.0% compared to 12.9% for the prior year period. The increase
in the effective tax rate is primarily attributable to the
recognition of a $1 million excess
tax benefit attributable to stock-based compensation, compared to a
$16 million excess tax benefit in the
comparable prior period.
Net Earnings and Earnings per Share
For the third quarter of fiscal year 2019:
- Net earnings increased 58% to $172
million, compared to $109
million for the prior year period.
- Adjusted Net earnings increased 56% to $189 million, compared to $121 million for the prior year period.
- Diluted earnings per share increased 61% to $1.45, compared to $0.90 for the prior year period.
- Adjusted earnings per share increased 59% to $1.59, compared to $1.00 for the prior year period.
Segment and Other Results for the Third Quarter of Fiscal
Year 2019
Recurring Fee
Revenue Growth Drivers: (1)
|
|
|
|
|
|
|
Third Quarter
Fiscal Year 2019
|
|
ICS
|
|
GTO
|
|
Total
|
|
|
|
|
|
|
Net New
Business
|
4pts
|
|
3pts
|
|
4pts
|
Internal
Growth
|
1pt
|
|
(3pts)
|
|
0pt
|
Organic Recurring
Fee Revenue Growth
|
5pts
|
|
0pt
|
|
3pts
|
Acquisitions
|
1pt
|
|
-
|
|
1pt
|
Total Recurring
Fee Revenue Growth
|
6%
|
|
0%
|
|
4%
|
|
|
(1)
|
Recurring fee revenue
growth drivers calculated using reported fiscal 2018 recurring fee
revenues adjusted to reflect the impact of the ASC 606 revenue
accounting change. If fiscal 2018 results had been reported giving
effect to the ASC 606 revenue accounting change, Investor
Communication Solutions ("ICS") Recurring fee revenues would have
been $97 million higher, Global Technology and Operations ("GTO")
Recurring fee revenues would have been $1 million higher, and total
Recurring fee revenues would have been $98 million
higher.
|
Investor Communication Solutions ("ICS")
ICS total revenues for the third quarter of fiscal year 2019
were $1,017 million, an increase of
$162 million, or 19%, compared to
$855 million for the prior year
period.
- Recurring fee revenues for the third quarter of fiscal year
2019 rose $127 million, or 31%, to
$530 million. Recurring fee revenues
for the third quarter of fiscal year 2018 would have been
$97 million higher if the prior year
basis of revenue accounting followed the current year basis of
revenue accounting. Considering the impact of the ASC 606 revenue
accounting change, recurring fee revenues would have grown
$30 million in the third quarter of
fiscal year 2019. The $30 million, or
6%, increase was attributable to: (i) Net New Business from
increases in revenues from Closed sales (4pts), (ii) higher
internal growth (1pt), and (iii) revenues from acquisitions
(1pt).
- Event-driven fee revenues increased $2
million, or 3%, to $68
million, the result of increased mutual fund proxy revenues
partially offset by decreased equity proxy contests.
- Distribution revenues increased $33
million, or 9%, to $418
million.
ICS earnings before income taxes for the third quarter of fiscal
year 2019 were $194 million, an
increase of $101 million, or 108%,
compared to $93 million for the prior
year period, primarily due to the increase in recurring fee
revenues driven by the ASC revenue accounting change. Pre-tax
margins increased by 8.2 percentage points to 19.1% from 10.9%.
Global Technology and Operations ("GTO")
GTO recurring fee revenues for the third quarter of fiscal year
2019 were $237 million, an increase
of $1 million compared to
$235 million in the prior year
period. Considering the impact of the ASC 606 revenue accounting
change, GTO recurring fee revenues were flat versus the prior year
period as higher Net New Business from Closed sales (3pts) was
offset by lower internal growth (3pts). The impact of the ASC 606
revenue accounting change was less than 1pt.
GTO earnings before income taxes for the third quarter of fiscal
year 2019 were $52 million, a
decrease of $5 million, or 8%,
compared to $57 million in the prior
year period, due in part to the impact of incremental expenditures
to drive new business, ongoing new product development expenses and
increased conversion costs related to client go-lives, partially
offset by increased revenues. Pre-tax margins decreased by 2.2
percentage points to 22.2% from 24.4%.
Other
Other Loss before income tax decreased 13% in the third quarter
of fiscal year 2019 to $25 million
from $29 million in the prior year
period. The decreased loss was primarily due to lower spending on
growth initiatives and other corporate expenses, partially offset
by a decrease in unrealized investment gains compared to the prior
year period.
Financial Results for the Nine Months Ended March 31, 2019
Revenues
Total revenues for the nine months ended March 31, 2019 increased 5% to $3,151 million from $3,009
million in the prior year period. The $141 million increase was driven by (i) higher
recurring fee revenues of $197
million, or 7pts, partially offset by (ii) lower
event-driven fee revenues of $30
million, or (1pt), and (iii) lower distribution revenues of
$8 million, or (0pt), and (iv)
changes in foreign currency rates which negatively impacted
revenues by $18 million, or
(1pt).
Recurring fee revenues for the nine months ended March 31, 2019 increased 11% to $1,946 million from $1,749
million in the prior year period. Recurring fee revenues for
the nine months ended March 31, 2018
would have been $98 million higher if
the prior year basis of revenue accounting followed the current
year basis of revenue accounting. Considering the impact of the ASC
606 revenue accounting change, recurring fee revenues grew 5%
reflecting organic growth of 4pts and revenues from acquisitions of
1pt.
Operating Income
For the nine months ended March 31,
2019:
- Operating income was $412
million, an increase of $80
million, or 24%, compared to $332
million for the prior year period. Operating income margin
increased to 13.1%, compared to 11.0% for the prior year
period.
- Adjusted Operating income was $479
million, an increase of $82
million, or 21%, compared to $397
million for the prior year period. Adjusted Operating income
margin increased to 15.2%, compared to 13.2% for the prior year
period.
- The increases in Operating income margin and Adjusted Operating
income margin are primarily due to (i) the increase in recurring
fee revenues driven by the ASC 606 revenue accounting change, which
more than offset (ii) the decrease in higher-margin event-driven
fee revenues, (iii) higher cost of revenues from the increase in
revenues, and (iv) higher selling, general and administrative
expenses.
Interest Expense and Other Non-Operating Expenses
Interest expense, net for the nine months ended March 31, 2019 was $30
million, an increase of $2
million, or 6%, compared to $29
million for the prior year period primarily due to higher
borrowing costs. Other non-operating expense, net was $4 million, an increase of $4 million, compared to less than $1 million for the prior year period. The
increase was primarily due to higher investment gains in the prior
period.
Effective Tax Rate
The effective tax rate for the nine months ended March 31, 2019 was 20.8% compared to 27.0% for
the prior year period. The decrease in the effective tax rate is
primarily due to the U.S. federal corporate income tax rate change
under the Tax Cuts and Jobs Act (the "Tax Act") partially offset by
the recognition of $9 million in
excess tax benefits attributable to stock-based compensation as
compared to $19 million for the prior
year period.
Net Earnings and Earnings per Share
For the nine months ended March 31,
2019:
- Net earnings increased 35% to $299
million, compared to $221
million for the prior year period.
- Adjusted Net earnings increased 25% to $351 million, compared to $280 million for the prior year period.
- Diluted earnings per share increased 36% to $2.51, compared to $1.84 for the prior year period.
- Adjusted earnings per share increased 26% to $2.94, compared to $2.33 for the prior year period.
Segment and Other Results for the Nine Months Ended
March 31, 2019
Recurring Fee
Revenue Growth Drivers: (1)
|
|
|
|
|
|
|
Nine Months Ended
March 31, 2019
|
|
ICS
|
|
GTO
|
|
Total
|
|
|
|
|
|
|
Net New
Business
|
4pts
|
|
3pts
|
|
4pts
|
Internal
Growth
|
1pt
|
|
1pt
|
|
1pt
|
Organic Recurring
Fee Revenue Growth
|
5pts
|
|
4pts
|
|
4pts
|
Acquisitions
|
1pt
|
|
0pt
|
|
1pt
|
Total Recurring
Fee Revenue Growth
|
6%
|
|
4%
|
|
5%
|
|
|
|
|
|
|
|
|
|
(1)
|
Recurring fee
revenue growth drivers calculated using reported fiscal 2018
recurring fee revenues adjusted to reflect the ASC 606 revenue
accounting change. If fiscal 2018 results had been reported giving
effect to the ASC 606 revenue accounting change, ICS Recurring fee
revenues would have been $99 million higher, GTO Recurring fee
revenues would have been $1 million lower and total Recurring fee
revenues would have been $98 million higher.
|
Investor Communication Solutions
ICS total revenues for the nine months ended March 31, 2019 were $2,521
million, an increase of $137
million, or 6%, compared to $2,384
million for the prior year period.
- Recurring fee revenues for the nine months ended March 31, 2019 rose $174
million, or 16%, to $1,245
million. Recurring fee revenues for the nine months ended
March 31, 2018 would have been
$99 million higher if the prior year
basis of revenue accounting followed the current year basis of
revenue accounting. Considering the impact of the ASC 606 revenue
accounting change, recurring fee revenues would have grown
$75 million in the nine months ended
March 31, 2019. The $75 million increase was attributable to: (i) Net
New Business from increases in revenues from Closed sales (4pts),
(ii) higher internal growth (1pt), and (iii) revenues from
acquisitions (1pt).
- Event-driven fee revenues decreased $30
million, or 13%, to $193
million, the result of decreased equity proxy contests and
mutual fund proxy activity.
- Distribution revenues decreased $8
million, or 1%, to $1,082
million.
- ICS earnings before income taxes for the nine months ended
March 31, 2019 were $290 million, an increase of $79 million, or 37%, compared to $211 million for the prior year period, primarily
due the increase in recurring fee revenues driven by the ASC 606
revenue accounting change more than offsetting lower event-driven
fee revenues. Pre-tax margins increased by 2.6 percentage points to
11.5% from 8.9%.
Global Technology and Operations
GTO recurring fee revenues for the nine months ended
March 31, 2019 were $701 million, an increase of $23 million, or 3%, compared to $678 million in the prior year period. GTO
recurring fee revenues for the nine months ended March 31, 2018 would have been $1 million lower if the prior year basis of
revenue accounting followed the current year basis of revenue
accounting. Considering the impact of the ASC 606 revenue
accounting change, GTO recurring fee revenues would have grown
$24 million, or 4%. The $24 million increase was attributable to: (i)
higher Net New Business from Closed sales (3pts) and (ii) higher
internal growth (1pt).
GTO earnings before income taxes for the nine months ended
March 31, 2019 were $146 million, a decrease of $7 million, or 4%, compared to $153 million in the prior year period, primarily
due to the impact of incremental expenditures to drive new
business, ongoing new product development expenses and increased
conversion costs related to client go-lives, partially offset by
increased revenues. Pre-tax margins decreased by 1.7 percentage
points to 20.8% from 22.5%.
Other
Other Pre-tax loss decreased 1% in the nine months ended
March 31, 2019 to $76 million from $77
million in the prior year period. The decreased loss was
primarily due to lower corporate expenses.
Subsequent Events: Acquisitions
Retirement plan custody and trust assets of TD Ameritrade Trust
Company
On April 17, 2019, the Company
announced that it entered into a purchase agreement to acquire the
retirement plan custody and trust assets from TD Ameritrade Trust
Company, a subsidiary of TD Ameritrade Holding Company. The
acquisition is expected to expand Broadridge's suite of solutions
for the growing qualified and non-qualified retirement plan
services market and the support it provides for third-party
administrators, financial advisors, record-keepers, banks, and
brokers. The purchase price is expected to be approximately
$61.5 million. The transaction is
expected to be completed in the Company's fiscal fourth quarter,
subject to customary closing conditions and regulatory
approvals.
Rockall Technologies Limited
On May 1, 2019, the Company
announced that it has acquired Rockall Technologies Limited, a
market leading provider of securities-based lending (SBL) and
collateral management solutions for wealth management firms and
commercial banks. The acquisition expands Broadridge's core
front-to-back office wealth capabilities, providing innovative SBL
and collateral management technology solutions to help firms manage
risk and optimize clients' securities lending and financing needs.
The purchase price was approximately $37.0
million net of cash acquired plus an additional contingent
consideration liability.
Earnings Conference Call
An analyst conference call will be held today, Tuesday,
May 7, 2019 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 May 21, 2019,
the recording will also be available by dialing 1-855-859-2056
passcode: 1192979 within the United
States or 1-404-537-3406 passcode: 1192979 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: (i) Amortization of Acquired
Intangibles and Purchased Intellectual Property, (ii) Acquisition
and Integration Costs, (iii) Tax Act items and (iv) the Gain on
Sale of Securities. Amortization of Acquired Intangibles and
Purchased Intellectual Property represents non-cash amortization
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. Tax Act items represent the net impact of a U.S.
federal transition tax on earnings of certain foreign subsidiaries,
foreign jurisdiction withholding taxes and certain benefits related
to the remeasurement of the Company's net U.S. federal and state
deferred tax liabilities attributable to the Tax Act. The Gain on
Sale of Securities represents a non-operating gain on the sale of
securities associated with the Company's retirement plan
obligations.
We exclude Amortization of Acquired Intangibles and Purchased
Intellectual Property, Acquisition and Integration Costs, Tax Act
items, and the Gain on Sale of Securities from our earnings
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 adjusted measures may be useful
to an investor in evaluating the underlying operating performance
of our business.
Free Cash Flow
In 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 2019 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, 2018 (the "2018 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 2018
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; a material security breach or
cybersecurity attack affecting the information of Broadridge's
clients; 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 key service providers 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 $4
billion global Fintech leader and a part of the S&P
500® Index, is a leading provider of investor
communications and technology-driven solutions to banks,
broker-dealers, asset managers 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 50 percent of public companies and mutual funds
globally, and processes on average more than US $5
trillion in fixed income and equity trades per day. Broadridge
employs over 10,000 full-time associates in 18 countries. For more
information about Broadridge, please visit www.broadridge.com.
Contact Information
Investors:
W. Edings Thibault
Investor Relations
(516) 472-5129
Media:
Gregg
Rosenberg
Corporate Communications
(212) 918-6966
Condensed
Consolidated Statements of Earnings
|
|
(Unaudited)
|
|
In millions,
except per share amounts
|
|
|
Three Months
Ended
March 31,
|
|
Nine Months
Ended
March 31,
|
|
|
|
2019
|
|
2018
|
|
2019
|
|
2018
|
Revenues
|
|
|
$
|
1,224.8
|
|
|
$
|
1,071.9
|
|
|
$
|
3,151.0
|
|
|
$
|
3,009.5
|
|
Operating
expenses:
|
|
|
|
|
|
|
|
|
|
Cost of
revenues
|
|
|
847.3
|
|
|
802.5
|
|
|
2,320.3
|
|
|
2,297.8
|
|
Selling, general and
administrative expenses
|
|
|
143.9
|
|
|
138.6
|
|
|
418.7
|
|
|
379.8
|
|
Total operating
expenses
|
|
|
991.2
|
|
|
941.1
|
|
|
2,739.1
|
|
|
2,677.6
|
|
Operating
income
|
|
|
233.6
|
|
|
130.8
|
|
|
411.9
|
|
|
331.9
|
|
Interest expense,
net
|
|
|
10.0
|
|
|
9.0
|
|
|
30.4
|
|
|
28.6
|
|
Other non-operating
(income) expenses, net
|
|
|
—
|
|
|
(3.4)
|
|
|
4.3
|
|
|
0.3
|
|
Earnings before
income taxes
|
|
|
223.6
|
|
|
125.2
|
|
|
377.2
|
|
|
303.0
|
|
Provision for income
taxes
|
|
|
51.4
|
|
|
16.2
|
|
|
78.4
|
|
|
81.9
|
|
Net
earnings
|
|
|
$
|
172.2
|
|
|
$
|
109.1
|
|
|
$
|
298.8
|
|
|
$
|
221.1
|
|
|
|
|
|
|
|
|
|
|
|
Basic earnings per
share
|
|
|
$
|
1.49
|
|
|
$
|
0.93
|
|
|
$
|
2.57
|
|
|
$
|
1.89
|
|
Diluted earnings per
share
|
|
|
$
|
1.45
|
|
|
$
|
0.90
|
|
|
$
|
2.51
|
|
|
$
|
1.84
|
|
|
|
|
|
|
|
|
|
|
|
Weighted-average
shares outstanding:
|
|
|
|
|
|
|
|
|
|
Basic
|
|
|
115.7
|
|
|
116.9
|
|
|
116.1
|
|
|
116.7
|
|
Diluted
|
|
|
118.5
|
|
|
120.9
|
|
|
119.1
|
|
|
120.3
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Amounts may not
sum due to rounding.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Condensed
Consolidated Balance Sheets
|
(Unaudited)
|
|
|
In millions,
except per share amounts
|
|
|
March 31,
2019
|
|
June 30,
2018
|
Assets
|
|
|
|
|
|
Current
assets:
|
|
|
|
|
|
Cash and cash
equivalents
|
|
|
$
|
292.1
|
|
|
$
|
263.9
|
|
Accounts receivable,
net of allowance for doubtful accounts of $2.0 and
$2.7, respectively
|
|
|
792.8
|
|
|
615.0
|
|
Other current
assets
|
|
|
110.5
|
|
|
112.2
|
|
Total current
assets
|
|
|
1,195.4
|
|
|
991.1
|
|
Property, plant and
equipment, net
|
|
|
183.4
|
|
|
204.1
|
|
Goodwill
|
|
|
1,256.6
|
|
|
1,254.9
|
|
Intangible assets,
net
|
|
|
427.1
|
|
|
494.1
|
|
Other non-current
assets
|
|
|
539.6
|
|
|
360.5
|
|
Total
assets
|
|
|
$
|
3,602.1
|
|
|
$
|
3,304.7
|
|
Liabilities and
Stockholders' Equity
|
|
|
|
|
|
Current
liabilities:
|
|
|
|
|
|
Payables and accrued
expenses
|
|
|
$
|
610.5
|
|
|
$
|
671.0
|
|
Contract
liabilities
|
|
|
94.7
|
|
|
106.3
|
|
Total current
liabilities
|
|
|
705.2
|
|
|
777.3
|
|
Long-term
debt
|
|
|
1,174.4
|
|
|
1,053.4
|
|
Deferred
taxes
|
|
|
100.9
|
|
|
57.9
|
|
Contract
liabilities
|
|
|
158.6
|
|
|
75.2
|
|
Other non-current
liabilities
|
|
|
197.4
|
|
|
246.5
|
|
Total
liabilities
|
|
|
2,336.5
|
|
|
2,210.4
|
|
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 115.8 and 116.3 shares
outstanding,
respectively
|
|
|
1.6
|
|
|
1.6
|
|
Additional paid-in
capital
|
|
|
1,107.6
|
|
|
1,048.5
|
|
Retained
earnings
|
|
|
1,959.9
|
|
|
1,727.0
|
|
Treasury stock, at
cost: 38.7 and 38.1 shares, respectively
|
|
|
(1,739.2)
|
|
|
(1,630.8)
|
|
Accumulated other
comprehensive loss
|
|
|
(64.1)
|
|
|
(51.9)
|
|
Total stockholders'
equity
|
|
|
1,265.6
|
|
|
1,094.3
|
|
Total liabilities and
stockholders' equity
|
|
|
$
|
3,602.1
|
|
|
$
|
3,304.7
|
|
|
|
|
|
|
|
|
|
|
|
Amounts may not
sum due to rounding.
|
Condensed
Consolidated Statements of Cash Flows
|
(Unaudited)
|
|
Dollars in
millions
|
Nine Months
Ended
March 31,
|
|
2019
|
|
2018
|
Cash Flows From
Operating Activities
|
|
|
|
Net
earnings
|
$
|
298.8
|
|
|
$
|
221.1
|
|
Adjustments to
reconcile net earnings to net cash flows provided by operating
activities:
|
|
|
|
Depreciation and
amortization
|
63.7
|
|
|
60.7
|
|
Amortization of
acquired intangibles and purchased intellectual property
|
64.3
|
|
|
59.4
|
|
Amortization of other
assets
|
66.8
|
|
|
35.5
|
|
Stock-based
compensation expense
|
46.8
|
|
|
39.2
|
|
Deferred income
taxes
|
17.4
|
|
|
(21.5)
|
|
Other
|
(27.2)
|
|
|
(15.2)
|
|
Changes in operating
assets and liabilities, net of assets and liabilities
acquired:
|
|
|
|
Current assets and
liabilities:
|
|
|
|
Increase in Accounts
receivable, net
|
(174.0)
|
|
|
(121.3)
|
|
Increase in Other
current assets
|
(13.3)
|
|
|
(33.3)
|
|
Decrease in Payables
and accrued expenses
|
(55.1)
|
|
|
(77.2)
|
|
Increase in Contract
liabilities
|
18.6
|
|
|
99.8
|
|
Non-current assets
and liabilities:
|
|
|
|
Increase in Other
non-current assets
|
(140.9)
|
|
|
(69.2)
|
|
Increase in Other
non-current liabilities
|
51.9
|
|
|
96.7
|
|
Net cash flows
provided by operating activities
|
217.9
|
|
|
274.8
|
|
Cash Flows From
Investing Activities
|
|
|
|
Capital
expenditures
|
(30.9)
|
|
|
(54.8)
|
|
Software purchases
and capitalized internal use software
|
(15.5)
|
|
|
(15.9)
|
|
Acquisitions, net of
cash acquired
|
—
|
|
|
(63.0)
|
|
Purchase of
intellectual property
|
—
|
|
|
(40.0)
|
|
Other investing
activities
|
(2.8)
|
|
|
(4.0)
|
|
Net cash flows used
in investing activities
|
(49.1)
|
|
|
(177.6)
|
|
Cash Flows From
Financing Activities
|
|
|
|
Debt
proceeds
|
370.0
|
|
|
260.0
|
|
Debt
repayments
|
(250.0)
|
|
|
(160.0)
|
|
Dividends
paid
|
(155.1)
|
|
|
(123.0)
|
|
Purchases of Treasury
stock
|
(120.3)
|
|
|
(29.8)
|
|
Proceeds from
exercise of stock options
|
23.6
|
|
|
38.1
|
|
Other financing
activities
|
(7.1)
|
|
|
(5.5)
|
|
Net cash flows used
in financing activities
|
(138.8)
|
|
|
(20.2)
|
|
Effect of exchange
rate changes on Cash and cash equivalents
|
(1.9)
|
|
|
4.1
|
|
Net change in Cash
and cash equivalents
|
28.2
|
|
|
81.0
|
|
Cash and cash
equivalents, beginning of period
|
263.9
|
|
|
271.1
|
|
Cash and cash
equivalents, end of period
|
$
|
292.1
|
|
|
$
|
352.1
|
|
|
|
|
|
|
|
|
|
Amounts may not
sum due to rounding.
|
|
|
|
|
|
|
|
Segment
Results
|
(Unaudited)
|
|
Dollars in
millions
|
Revenues
|
|
Three Months
Ended
March 31,
|
|
Nine Months
Ended
March 31,
|
|
2019
|
|
2018
|
|
2019
|
|
2018
|
|
|
|
|
|
|
Investor
Communication Solutions
|
$
|
1,017.1
|
|
|
$
|
855.3
|
|
|
$
|
2,521.0
|
|
|
$
|
2,384.0
|
|
Global Technology and
Operations
|
236.6
|
|
|
235.2
|
|
|
700.9
|
|
|
678.1
|
|
Foreign currency
exchange
|
(28.9)
|
|
|
(18.6)
|
|
|
(70.9)
|
|
|
(52.5)
|
|
Total
|
$
|
1,224.8
|
|
|
$
|
1,071.9
|
|
|
$
|
3,151.0
|
|
|
$
|
3,009.5
|
|
|
Earnings (Loss)
before Income
Taxes
|
|
Three Months
Ended
March 31,
|
|
Nine Months
Ended
March 31,
|
|
2019
|
|
2018
|
|
2019
|
|
2018
|
|
|
|
|
|
|
Investor
Communication Solutions
|
$
|
193.8
|
|
|
$
|
93.0
|
|
|
$
|
289.8
|
|
|
$
|
211.0
|
|
Global Technology and
Operations
|
52.5
|
|
|
57.3
|
|
|
146.1
|
|
|
152.9
|
|
Other
|
(25.2)
|
|
|
(29.0)
|
|
|
(76.3)
|
|
|
(77.0)
|
|
Foreign currency
exchange
|
2.5
|
|
|
3.9
|
|
|
17.5
|
|
|
16.1
|
|
Total
|
$
|
223.6
|
|
|
$
|
125.2
|
|
|
$
|
377.2
|
|
|
$
|
303.0
|
|
|
|
|
|
|
|
|
|
Pre-tax
margins:
|
|
|
|
|
|
|
|
Investor
Communication Solutions
|
19.1
|
%
|
|
10.9
|
%
|
|
11.5
|
%
|
|
8.9
|
%
|
Global Technology and
Operations
|
22.2
|
%
|
|
24.4
|
%
|
|
20.8
|
%
|
|
22.5
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
Amounts may not
sum due to rounding.
|
|
Supplemental
Reporting Detail - Additional Product Line Reporting
|
(Unaudited)
|
|
Dollars in
millions
|
Three Months
Ended
March 31,
|
|
Nine Months
Ended
March 31,
|
Investor
Communication Solutions
|
2019
|
|
2018
|
|
Change
|
|
2019
|
|
2018
|
|
Change
|
Equity
Proxy
|
$
|
152.9
|
|
|
$
|
45.1
|
|
|
239
|
%
|
|
$
|
225.6
|
|
|
$
|
108.7
|
|
|
108
|
%
|
Mutual fund and
exchange-traded funds ("ETF") interims
|
82.1
|
|
|
67.0
|
|
|
23
|
%
|
|
200.6
|
|
|
163.1
|
|
|
23
|
%
|
Customer
communications and fulfillment
|
201.1
|
|
|
210.7
|
|
|
(5)
|
%
|
|
558.6
|
|
|
579.6
|
|
|
(4)
|
%
|
Other ICS
|
94.4
|
|
|
80.7
|
|
|
17
|
%
|
|
260.3
|
|
|
219.4
|
|
|
19
|
%
|
Total ICS Recurring fee revenues
|
530.5
|
|
|
403.5
|
|
|
31
|
%
|
|
1,245.1
|
|
|
1,070.8
|
|
|
16
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
Equity and
other
|
35.4
|
|
|
39.9
|
|
|
(11)
|
%
|
|
79.0
|
|
|
99.5
|
|
|
(21)
|
%
|
Mutual
funds
|
33.1
|
|
|
26.6
|
|
|
24
|
%
|
|
114.5
|
|
|
123.6
|
|
|
(7)
|
%
|
Total ICS Event-driven fee revenues
|
68.4
|
|
|
66.5
|
|
|
3
|
%
|
|
193.5
|
|
|
223.1
|
|
|
(13)
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
Distribution
revenues
|
418.2
|
|
|
385.4
|
|
|
9
|
%
|
|
1,082.5
|
|
|
1,090.0
|
|
|
(1)
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
Total ICS
Revenues
|
$
|
1,017.1
|
|
|
$
|
855.3
|
|
|
19
|
%
|
|
$
|
2,521.0
|
|
|
$
|
2,384.0
|
|
|
6
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
Global Technology
and Operations
|
|
|
|
|
|
|
|
|
|
|
|
Equities and
Other
|
$
|
195.5
|
|
|
$
|
195.9
|
|
|
—
|
%
|
|
$
|
579.7
|
|
|
$
|
564.3
|
|
|
3
|
%
|
Fixed
income
|
41.1
|
|
|
39.3
|
|
|
5
|
%
|
|
121.2
|
|
|
113.8
|
|
|
7
|
%
|
Total GTO Recurring fee revenues
|
236.6
|
|
|
235.2
|
|
|
1
|
%
|
|
700.9
|
|
|
678.1
|
|
|
3
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
Foreign currency
exchange
|
(28.9)
|
|
|
(18.6)
|
|
|
55
|
%
|
|
(70.9)
|
|
|
(52.5)
|
|
|
35
|
%
|
Total Revenues
|
$
|
1,224.8
|
|
|
$
|
1,071.9
|
|
|
14
|
%
|
|
$
|
3,151.0
|
|
|
$
|
3,009.5
|
|
|
5
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenues by
Type
|
|
|
|
|
|
|
|
|
|
|
|
Recurring fee
revenues
|
$
|
767.0
|
|
|
$
|
638.6
|
|
|
20
|
%
|
|
$
|
1,946.0
|
|
|
$
|
1,748.9
|
|
|
11
|
%
|
Event-driven fee
revenues
|
68.4
|
|
|
66.5
|
|
|
3
|
%
|
|
193.5
|
|
|
223.1
|
|
|
(13)
|
%
|
Distribution
revenues
|
418.2
|
|
|
385.4
|
|
|
9
|
%
|
|
1,082.5
|
|
|
1,090.0
|
|
|
(1)
|
%
|
Foreign currency
exchange
|
(28.9)
|
|
|
(18.6)
|
|
|
55
|
%
|
|
(70.9)
|
|
|
(52.5)
|
|
|
35
|
%
|
Total Revenues
|
$
|
1,224.8
|
|
|
$
|
1,071.9
|
|
|
14
|
%
|
|
$
|
3,151.0
|
|
|
$
|
3,009.5
|
|
|
5
|
%
|
|
|
Amounts may not
sum due to rounding.
|
|
Select Operating
Metrics
|
(Unaudited)
|
|
|
Three Months
Ended
March
31,
|
|
|
|
Nine Months
Ended
March
31,
|
|
|
|
Dollars in
millions
|
2019
|
|
2018
|
|
%
Change
|
|
2019
|
|
2018
|
|
%
Change
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Closed
Sales
|
$36.9
|
|
$38.2
|
|
(3)%
|
|
$161.2
|
|
$99.8
|
|
62%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Record
Growth1
|
|
|
|
|
|
|
|
|
|
|
|
|
Equity
proxy
|
3%
|
|
11%
|
|
|
|
6%
|
|
10%
|
|
|
|
Mutual fund
interims
|
6%
|
|
8%
|
|
|
|
11%
|
|
10%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Internal Trade
Growth2
|
|
|
|
|
|
|
|
|
|
|
|
|
Equity
|
(6)%
|
|
28%
|
|
|
|
8%
|
|
15%
|
|
|
|
Fixed
Income
|
—%
|
|
11%
|
|
|
|
3%
|
|
4%
|
|
|
|
|
|
Amounts may not
sum due to rounding.
|
|
|
|
(1) Stock record
growth and interim record growth measure the annual change in total
positions eligible for equity proxy and mutual fund and ETF interim
communications, respectively, for equity and mutual fund position
data reported to Broadridge in both the current and prior year
periods.
|
|
|
|
|
(2) Internal
trade growth represents the growth in trade volumes for Broadridge
clients whose contracts are linked to trade volumes and who were on
Broadridge's trading platforms in both the current and prior year
period.
|
|
|
Reconciliation of
Non-GAAP to GAAP Measures
|
(Unaudited)
|
|
Dollars in
millions, except per share amounts
|
Three Months
Ended
March 31,
|
|
Nine Months
Ended
March 31,
|
|
2019
|
|
2018
|
|
2019
|
|
2018
|
|
(in
millions)
|
Operating income
(GAAP)
|
$
|
233.6
|
|
|
$
|
130.8
|
|
|
$
|
411.9
|
|
|
$
|
331.9
|
|
Adjustments:
|
|
|
|
|
|
|
|
Amortization of
Acquired Intangibles and Purchased Intellectual
Property
|
21.2
|
|
|
20.2
|
|
|
64.3
|
|
|
59.4
|
|
Acquisition and
Integration Costs
|
0.9
|
|
|
1.3
|
|
|
3.1
|
|
|
6.0
|
|
Adjusted Operating
income (Non-GAAP)
|
$
|
255.7
|
|
|
$
|
152.3
|
|
|
$
|
479.4
|
|
|
$
|
397.2
|
|
Operating income
margin (GAAP)
|
19.1
|
%
|
|
12.2
|
%
|
|
13.1
|
%
|
|
11.0
|
%
|
Adjusted Operating
income margin (Non-GAAP)
|
20.9
|
%
|
|
14.2
|
%
|
|
15.2
|
%
|
|
13.2
|
%
|
|
Three Months
Ended
March 31,
|
|
Nine Months
Ended
March 31,
|
|
2019
|
|
2018
|
|
2019
|
|
2018
|
|
(in
millions)
|
Net earnings
(GAAP)
|
$
|
172.2
|
|
|
$
|
109.1
|
|
|
$
|
298.8
|
|
|
$
|
221.1
|
|
Adjustments:
|
|
|
|
|
|
|
|
Amortization of
Acquired Intangibles and Purchased Intellectual
Property
|
21.2
|
|
|
20.2
|
|
|
64.3
|
|
|
59.4
|
|
Acquisition and
Integration Costs
|
0.9
|
|
|
1.3
|
|
|
3.1
|
|
|
6.0
|
|
Gain on Sale of
Securities
|
—
|
|
|
(5.5)
|
|
|
—
|
|
|
(5.5)
|
|
Taxable
adjustments
|
22.1
|
|
|
16.1
|
|
|
67.5
|
|
|
59.9
|
|
Tax Act
items
|
—
|
|
|
—
|
|
|
—
|
|
|
16.1
|
|
Tax impact of
adjustments (a)
|
(5.4)
|
|
|
(3.7)
|
|
|
(15.7)
|
|
|
(16.7)
|
|
Adjusted Net earnings
(Non-GAAP)
|
$
|
188.9
|
|
|
$
|
121.4
|
|
|
$
|
350.6
|
|
|
$
|
280.4
|
|
|
Three Months
Ended
March 31,
|
|
Nine Months
Ended
March 31,
|
|
2019
|
|
2018
|
|
2019
|
|
2018
|
Diluted earnings per
share (GAAP)
|
$
|
1.45
|
|
|
$
|
0.90
|
|
|
$
|
2.51
|
|
|
$
|
1.84
|
|
Adjustments:
|
|
|
|
|
|
|
|
Amortization of
Acquired Intangibles and Purchased Intellectual
Property
|
0.18
|
|
|
0.17
|
|
|
0.54
|
|
|
0.49
|
|
Acquisition and
Integration Costs
|
0.01
|
|
|
0.01
|
|
|
0.03
|
|
|
0.05
|
|
Gain on Sale of
Securities
|
—
|
|
|
(0.05)
|
|
|
—
|
|
|
(0.05)
|
|
Taxable
adjustments
|
0.19
|
|
|
0.13
|
|
|
0.57
|
|
|
0.50
|
|
Tax Act
items
|
—
|
|
|
—
|
|
|
—
|
|
|
0.13
|
|
Tax impact of
adjustments (a)
|
(0.05)
|
|
|
(0.03)
|
|
|
(0.13)
|
|
|
(0.14)
|
|
Adjusted earnings per
share (Non-GAAP)
|
$
|
1.59
|
|
|
$
|
1.00
|
|
|
$
|
2.94
|
|
|
$
|
2.33
|
|
(a)
|
Calculated
using the GAAP effective tax rate, adjusted to exclude $1.3 million
and $9.2 million of excess tax benefits associated with stock-based
compensation for the three and nine months ended March 31,
2019, and $15.6 million and $18.6 million of excess tax benefits
associated with stock-based compensation for the three and nine
months ended March 31, 2018, as well as the net $16.1
million charges associated with the Tax Act for the nine months
ended March 31, 2018. For purposes of calculating the
Adjusted earnings per share, the same adjustments were made on a
per share basis.
|
|
Nine Months
Ended
March 31,
|
|
2019
|
|
2018
|
|
(in
millions)
|
Net cash flows
provided by operating activities (GAAP)
|
$
|
217.9
|
|
|
$
|
274.8
|
|
Capital expenditures
and Software purchases and capitalized internal use
software
|
(46.3)
|
|
|
(70.6)
|
|
Free cash flow
(Non-GAAP)
|
$
|
171.6
|
|
|
$
|
204.2
|
|
|
|
|
|
|
|
|
|
Amounts may not
sum due to rounding.
|
|
|
|
Fiscal Year 2019
Guidance
|
Reconciliation of
Non-GAAP to GAAP Measures
|
Adjusted Earnings
Per Share Growth, Adjusted Operating Income Margin and Free Cash
Flow
|
(Unaudited)
|
|
Dollars in
millions, except per share amounts
|
|
|
|
|
|
FY19 Adjusted
Earnings Per Share Growth Rate (1)
|
|
|
Diluted earnings per
share (GAAP)
|
|
12% - 16%
growth
|
Adjusted earnings per
share (Non-GAAP)
|
|
9% - 13%
growth
|
|
|
|
FY19 Adjusted
Operating Income Margin (2)
|
|
|
Operating income
margin % (GAAP)
|
|
~15.0%
|
Adjusted Operating
income margin % (Non-GAAP)
|
|
~17.0%
|
|
|
|
FY19 Free Cash
Flow
|
|
|
Net cash
flows provided by operating activities (GAAP)
|
|
$660 -
$730
|
Capital expenditures
and Software purchases and capitalized internal use
software
|
|
(95) -
(115)
|
Free
cash flow (Non-GAAP)
|
|
$565 -
$615
|
|
|
|
(1)
|
Adjusted
earnings per share 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 2019 Non-GAAP Adjusted earnings per share guidance estimates
exclude Amortization of Acquired Intangibles and Purchased
Intellectual Property, and Acquisition and Integration Costs, net
of taxes, of approximately $0.60 per share.
|
|
|
(2)
|
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 2019 Non-GAAP Adjusted Operating income margin guidance
estimates exclude Amortization of Acquired Intangibles and
Purchased Intellectual Property, and Acquisition and Integration
Costs of approximately $94 million.
|
View original
content:http://www.prnewswire.com/news-releases/broadridge-reports-third-quarter-and-nine-months-fiscal-year-2019-results-300844768.html
SOURCE Broadridge Financial Solutions, Inc.