Broadridge Financial Solutions, Inc. · NYSE:BR
Broadridge Financial Solutions — Q2 FY2008 Earnings Presentation
20 slides from Broadridge Financial Solutions's earnings presentation, Feb 7, 2008
Slide 1: Earnings Webcast & Conference Call
Exhibit 99.2 Broadridge Financial Solutions, Inc. Earnings Webcast & Conference Call Second Quarter Fiscal Year 2008 February 7, 2008
Slide 2: Forward Looking Statements
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 nature,
Slide 3: Today's Agenda
Today’s Agenda Opening Remarks Rich Daly, CEO nd 2 Quarter Fiscal Year 2008 Results Dan Sheldon, CFO Fiscal Year 2008 Guidance Update Rich Daly, CEO Summary Rich Daly, CEO Q&A Rich Daly, CEO Dan Sheldon, CFO Marvin Sims, VP Investor Relations Closing Remarks Rich Daly, CEO Note: For a reconciliation
Slide 4: Opening Remarks – Outline
Opening Remarks – Outline Key Topics: Financial results for the second quarter • Revenues and earnings up for quarter and year-to-date • Year-over-year growth lower this quarter, but still more than offset two previously announced large client losses • Investor Communication Solutions segment drivin
Slide 5: Broadridge Results – 2Q & YTD FY 2008
Broadridge Results – 2Q & YTD FY 2008 Q2 - Revenues 8% to $465M (YTD 5% to $916M) Q2 Fiscal 2008 revenue growth building blocks: • Internal growth contributed 7% - (YTD = 6%) • Sales contributed 3% - (YTD = 2%) • Losses reduced growth by 5% - (YTD = 5%) • Other/FX contributed 3% - (YTD = 2%) Q2 – Pr
Slide 6: Broadridge Results – Q2 YTD FY 2008
Broadridge Results – Q2 YTD FY 2008 Q2 - Diluted Earnings Per Share, excluding one-time transition expenses & interest on new debt 24% to $0.26 – Non-GAAP 5% to $0.21 – GAAP Slightly more shares outstanding YTD - Diluted Earnings Per Share, excluding one-time transition expenses & interest on new de
Slide 7: Segments Results – 2Q & YTD FY 2008 Investor Communication
Segments Results – 2Q & YTD FY 2008 Investor Communication Q2 Revenues 6% to $303M – Non-GAAP • Internal growth contributed 9% (Event-driven revenues contributed 3% to growth) – Q2 Stock Record Growth – Mutual Fund Interims 9% and Equity Proxy 4% • Net new business contributed -3% (Sales of 1% offse
Slide 8: Segments Results – 2Q & YTD FY 2008 Securities Processing
Segments Results – 2Q & YTD FY 2008 Securities Processing Q2 Revenues 2% to $128M – Non-GAAP • Internal growth contributed 6% – Equity Trades Per Day (TPD) 19% to 2.5M trades per day - last 4 quarters TPD have been flat at 2.5M – Fixed Income TPD - 16% to 216K trades per day • Net new business contr
Slide 9: Segments Results – 2Q & YTD FY 2008
Segments Results – 2Q & YTD FY 2008 Clearing and Outsourcing Q2 Revenues 7% to $25M • Sales contributed 15% to growth • Previously announced TD Waterhouse loss reduced growth by 13% • Internal growth contributed 5% to growth Q2 Operating losses at ($1.6M); improvement of $0.5M over prior year – Non-
Slide 10: Broadridge Cash Flow – 2Q YTD FY 2008
Broadridge Cash Flow – 2Q YTD FY 2008 Broadridge Financial Solutions, Inc. Calculation of Free Cash Flow -Non-GAAP Unaudited (In millions) Six Months Ended December 31, 2007 Clearing & Outsourcing All Other Broadridge Calculation of Free Cash Flow (Non-GAAP) : Segment Segments Total Earnings $ (4)*
Slide 11: Fiscal Year 2008 Guidance & Summary
Fiscal Year 2008 Guidance & Summary EPS is expected towards the higher end of guidance range of $1.30 - $1.40 per share (Non-GAAP) before one-time transition expenses, as a result of our second quarter performance and volume trends Guidance does not contemplate any major change in market Keep in min
Slide 12: Q&A
Q&A There are no slides during this portion of the presentation 11
Slide 13: Closing Comments
Closing Comments There are no slides during this portion of the presentation 12
Slide 14: Appendix
Ce ee Appendix Appendix 1B es Broadridge’
Slide 15: Broadridge - Fiscal Year 2008 Financial Guidance
Broadridge - Fiscal Year 2008 Financial Guidance Revenue growth of 1% - 4% Diluted Earnings Per Share Before one-time transition expenses of $1.30 - $1.40 — Non-GAAP After one-time transition expenses of $1.25 - $1.35 — Non-GAAP Earnings before interest and taxes margins (excluding one- time transit
Slide 16: Segments – Fiscal Year 2008 Financial Guidance
Segments – Fiscal Year 2008 Financial Guidance Investor Communication : Revenues 1% - 3% Annual Increase Margins 15.1% - 15.5% Securities Processing : Revenues (3%) to Flat Margins 25.1% - 26.2% Clearing and Outsourcing: Revenues 8% - 11% Annual Increase Operating losses at $2M - $3M with approximat
Slide 17: GAAP to Non-GAAP Earnings Reconciliation
GAAP to Non-GAAP Earnings Reconciliation Broadridge Financial Solutions, Inc. Reconciliation of GAAP to Non –- GAAP Measures Earnings, Margin and Per Share Reconciliation (In millions, except per share and margin data) (Unaudited) Three months ended December 31, 2007 Three months ended December 31,
Slide 18: GAAP to Non-GAAP Free Cash Flow Reconciliation
GAAP to Non-GAAP Free Cash Flow Reconciliation Broadridge Financial Solutions, Inc. Calculation of Free Cash Flow - Non-GAAP (In millions) (Unaudited) Net Cash Flow Less: Capital Provided by (Used in) Expenditures Free Operating Activities and Intangibles Cash Flow Six Months ended December 31, 2007
Slide 19: Intersegment Transfer Pricing Reconciliation
Intersegment Transfer Pricing Reconciliation Broadridge Financial Solutions, Inc. Intersegment Transfer Price Reconciliation (In millions, except margin data) (Unaudited) Three months ended Six months ended December 31, December 31, 2007 2006 2007 2006 Investor Communication Solutions Net revenue as
Slide 20: Use of Materials Contained Herein
Use of Materials Contained Herein The information contained in this presentation is being provided for your convenience and information only. This information is accurate as of the date of its initial presentation. If you plan to use this information for any purpose, verification of its continued ac
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