Broadridge Financial Solutions, Inc. · NYSE:BR
Broadridge Financial Solutions — Q4 FY2016 Earnings Presentation
15 slides from Broadridge Financial Solutions's earnings presentation, Aug 9, 2016
Slide 1: Earnings Webcast & Conference Call Fourth Quarter and Fiscal Year 2016
1© 2014 | Earnings Webcast & Conference Call Fourth Quarter and Fiscal Year 2016 August 9, 2016 EXHIBIT 99.2
Slide 2: Forward-Looking Statements
2 Forward-Looking Statements This presentation 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 natur
Slide 3: Explanation and Reconciliation of the Company's Use of Non-GAAP Financial Measures
3 Explanation and Reconciliation of the Company’s Use of Non-GAAP Financial Measures The Company’s results in this presentation 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 pr
Slide 4: Highlights
4 Highlights 1. Strong fiscal year 2016 results 2. Record closed sales 3. Fiscal year 2017 guidance calls for continued solid organic growth and double digit Adjusted EPS growth 4. On track to achieve three year financial objectives 5. 10% dividend increase underscores Broadridge's continued commitm
Slide 5: Financial Summary
5 Fiscal Year 2016 Financial Summary ▪ Revenue growth of 8% led by strong growth in recurring fee revenues ◦ Recurring revenue growth of 9% driven by revenues from closed sales ◦ Internal growth lower than anticipated ▪ Strong bottom line growth ◦ Diluted EPS growth of 9% ◦ Adjusted Diluted EPS grow
Slide 6: Business Update
6 Business Update ▪ Record closed sales reflects growing demand for Broadridge services ◦ Strong closed sales results in both segments ◦ Key wins highlight growing acceptance of Broadridge as value-added provider ◦ Very healthy pipeline entering Fiscal Year 2017 ▪ Lower than expected interim record
Slide 7: Organic Growth Driving Recurring Fee Revenues
7 Organic Growth Driving Recurring Fee Revenues Fiscal Year 2016 Recurring Revenue Drivers Fourth Quarter 2016 Recurring Revenue Drivers Note: Amounts may not sum due to rounding
Slide 8: Components of Total Revenue Growth Fourth Quarter 2016
8 Components of Total Revenue Growth Fiscal Year 2016 Fourth Quarter 2016 Note: Amounts may not sum due to rounding
Slide 9: Fourth Quarter and Segment Results
9 ($ in millions) Investor Communication Solutions (ICS) 4Q 2015 4Q 2016 Change FY 2015 FY 2016 Change Recurring Fee Revenues $429 $460 7% $1,048 $1,157 10% Total Revenues $766 $804 5% $2,030 $2,220 9% Earnings before income taxes $246 $262 7% $381 $409 7% Pre-tax Margin 32.1% 32.6% 50 bps 18.8% 18.
Slide 10: Capital Allocation and Summary Balance Sheet
10 Capital Allocation and Summary Balance Sheet Fiscal Years 2013 - 2016: Select Uses of Cash Summary Balance Sheet as of 6/30/2016 Assets Cash and Cash Equivalents $ 728 Other assets 2,152 Total assets $ 2,880 Liabilities and Stockholders' Equity Total debt outstanding (c) $ 1,023 Other liabilities
Slide 11: Fiscal Year 2017 Guidance
11 Broadridge Recurring fee revenue growth 29-31% Total revenue growth 43-45% Adjusted Operating income margin ~15% Diluted earnings per share growth 9-14% Adjusted Diluted earnings per share growth 12-17% Free cash flows $350-$400M Closed sales $140-$180M Segments ICS Total revenue growth 55-57% IC
Slide 12: Closing Summary
12 Closing Summary ▪ Strong 2016 Results ◦ 9% recurring revenue growth and 11% growth in Adjusted EPS ◦ Record closed sales ◦ 10% increase in annual dividend underscores commitment to healthy and growing dividend ▪ Broadridge exits 2016 well-positioned for long-term growth ◦ Secular pressures in fin
Slide 13: Appendix
13 Appendix
Slide 14: Reconciliation of GAAP to Non-GAAP Measures
14 Reconciliation of GAAP to Non-GAAP Measures $ in millions, except per share figures Fourth Quarter Fiscal Year 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.
Slide 15: Reconciliation of GAAP to Non-GAAP Measures - FY17 Guidance
15 Reconciliation of GAAP to Non-GAAP Measures- FY17 Guidance Adjusted Earnings Per Share Growth Rate (1) Diluted earnings per share (GAAP) 9% - 14% Adjusted Diluted earnings per share (Non-GAAP) 12% - 17% Adjusted Operating Income Margin (2) Operating income margin % (GAAP) ~13.6% Adjusted Operatin
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