Broadridge Financial Solutions, Inc. · NYSE:BR
Broadridge Financial Solutions — Q1 2015 Earnings Presentation
19 slides from Broadridge Financial Solutions's earnings presentation, Nov 6, 2014
Slide 1: Earnings Webcast & Conference Call First Quarter 2015
1 © 2014 | Earnings Webcast & Conference Call First Quarter 2015 November 6, 2014 EXHIBIT 99.2
Slide 2: Forward-Looking Statements
© 2014 | 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 historica
Slide 3: Today's Agenda
© 2014 | 3 • Opening Remarks Rich Daly, President and CEO • First Quarter 2015 Financial Jim Young, CFO Results • Summary Rich Daly, President and CEO • Q&A Rich Daly, President and CEO Jim Young, CFO • Closing Remarks Rich Daly, President and CEO Today’s Agenda
Slide 4: Key Messages
© 2014 | 4 • Financial results were reflective of continued execution of our strategy and consistent with our expectations • Record Q1 recurring revenue closed sales • Reaffirming fiscal year 2015 guidance • Investment strategy is balanced between long-term growth and short-term performance • Confid
Slide 5: Financial Highlights
© 2014 | 5 • Q1 recurring fee revenues were up 4% primarily due to Net New Business (recurring revenue closed sales less recurring revenue client losses) • Q1 Non-GAAP Diluted Earnings Per Share (EPS) of $0.30 • Q1 GAAP Diluted EPS of $0.26 • Reaffirming full year 2015 guidance ▪ Recurring fee reven
Slide 6: Closed Sales Performance
© 2014 | 6 • Record Q1 recurring revenue closed sales were up 114% ▪ Recurring revenue closed sales were $32M compared to $15M in the previous year ▪ Generally, Q1 closed sales contribute the smallest amount to the full year • Sales pipeline remains robust and growing with good momentum • Accenture
Slide 7: Growth Drivers as a % of Recurring Fee Revenues
© 2014 | 7 1Q 1Q Actual FY15 FY14 FY15 FY14 Range Growth Drivers as a % of Recurring Fee Revenues Closed Sales (Recurring) 8% 6% 7% 6-7% Client Losses (2)% (3)% (3)% (2)% Net New Business 6% 3% 4% 4-5% Internal Growth(a) 4% 0% 4% 0-1% Organic Growth 10% 3% 8% 4-6% Acquisitions 1% 1% 1% 1% Total Recu
Slide 8: Investor Communication Solutions (ICS) and Securities Processing Solutions (SPS)
© 2014 | 8 Investor Communication Solutions (ICS) 1Q14 1Q15 Versus Prior Year FY14 FY15 Guidance Versus Prior Year Low High Recurring Fee Revenues $178 $196 10% $961 $1,020 $1,043 6-9% Total Revenues $379 $394 4% $1,881 $1,976 $2,009 5-7% EBIT (Non-GAAP) $40 $38 (7)% $336 $367 $378 9-13% EBIT Margin
Slide 9: Closing Summary
© 2014 | 9 Closing Summary • Financial results were reflective of continued execution of our strategy and consistent with our expectations • Continued strong momentum through Q1 driven by record recurring revenue closed sales • Reaffirming fiscal year 2015 guidance • Remain committed to our capital
Slide 10: Q&A and Closing Comments
© 2014 | 10 Q&A and Closing Comments There are no slides during this portion of the presentation
Slide 11: Appendix
Appendix Big Broadridge’ ©2014 |
Slide 12: Q1 Revenues and Earnings by Segment
© 2014 | 12 Revenues (d) Earnings (d) FY14 FY15 FY14 FY15 Q1 Q1 Q1 Q1 $379 $394 ICS $40 $38 11% 4% ◄ Growth % / Margin % ► 10.7% 9.6% $166 $163 SPS $32 $26 10% (2)% ◄ Growth % / Margin % ► 19.4% 15.9% $545 $557 Total Segments $73 $64 10% 2% Margin % 13.3% 11.4% $0 $0 Other $(3) ($12) $0 $(1) FX (a)
Slide 13: Broadridge FY15 Guidance
© 2014 | 13 Broadridge FY15 Guidance Revenues (d) Earnings (d) FY14 FY15 Range (e) FY14 FY15 Range (e) Actual Low High Actual Low High $1,881 $1,976 $2,009 ICS $336 $367 $378 6% 5% 7% ◄ Growth % / Margin % ► 17.9% 18.6% 18.8% $681 $697 $709 SPS $119 $124 $137 6% 2% 4% ◄ Growth % / Margin % ► 17.5% 1
Slide 14: Cash Flows - Q1 FY15 Results and FY15 Guidance
© 2014 | 14 Cash Flows - Q1 FY15 Results and FY15 Guidance Three Months Ended FY15 Range (a) September 2014 Low High Free Cash Flows: Net earnings from operations (GAAP) $33 $285 $297 Depreciation and amortization (includes other long-term assets) 25 100 105 Stock-based compensation expense 8 35 40
Slide 15: Revenues and Closed Sales FY09-FY14
© 2014 | 15 Revenues and Closed Sales FY09-FY14 CAGR FY15 Recurring Fee Revenues (c) FY09 FY10 FY11 FY12 FY13 FY14 FY09-FY14 Range ICS $ 598 $ 636 $ 725 $ 811 $ 866 $ 961 10% $1,020-1,043 Growth 5% 6% 14% 12% 7% 11% 6-9% SPS $ 555 $ 532 $ 589 $ 642 $ 645 $ 681 4% $697-709 Growth 4% -4% 11% 9% 0% 6%
Slide 16: Reconciliation of Non-GAAP to GAAP Measures
© 2014 | 16 Reconciliation of Non-GAAP to GAAP Measures Reconciliation of EPS 1Q14 1Q15 FY14 FY15 Range (a) Actual Actual Actual Low High Adjusted Diluted EPS (Non-GAAP) $0.39 $0.30 $2.25 $2.42 $2.52 Acquisition Amortization and Other Costs, net of taxes (0.03) (0.03) (0.13) (0.13) (0.13) Diluted EP
Slide 17: ICS Key Segment Revenue Stats
© 2014 | 17 ICS Key Segment Revenue Stats RC= Recurring ED= Event-Driven In millions Fee Revenues (e) 1Q14 1Q15 Type Proxy Equities $ 26.0 $ 26.6 RC Stock Record Position Growth 1 % 7 % Pieces 21.5 19.3 0.6 Mutual Funds $ 15.8 $ 10.0 ED Pieces 20.4 14.6 0.6 Contests/Specials $ 4.2 $ 3.8 ED Pieces 4.
Slide 18: SPS Key Segment Revenue Stats
© 2014 | 18 SPS Key Segment Revenue Stats RC= Recurring ED= Event-Driven In millions 1Q14 1Q15 Type Equity Transaction-Based Equity Trades (a) $ 32.4 $ 31.5 RC Internal Trade Volume (Average Trades per Day in '000) 888 893 Internal Trade Growth 14 % 1 % Trade Volume (Average Trades per Day in '000)
Slide 19: Broadridge ICS Definitions
© 2014 | 19 Broadridge ICS Definitions Proxy Equities - Refers to the proxy services we provide in connection with annual stockholder meetings for publicly traded corporate issuers. Annual meetings of public companies include shares held in "street name" (meaning that they are held of record by brok
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