Broadridge Financial Solutions, Inc. · NYSE:BR
Broadridge Financial Solutions — Q3 FY2019 Earnings Presentation
25 slides from Broadridge Financial Solutions's earnings presentation, May 7, 2019
Slide 1: Earnings Webcast and Conference Call Third Quarter and Nine Months of Fiscal Year 2019
Earnings Webcast and Conference Call Third Quarter and Nine Months of Fiscal Year 2019 © 2018 | ‹#›
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 Financial Solutions, Inc. ("Broadridge" or the "Company") may contain “forward-looking statements” within the meaning of the Private Securities Litigation Reform
Slide 3: Use of Non-GAAP Financial Measures
Use of Non-GAAP Financial Measures 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. generally accepted accounting principles ("GAAP") except where otherwise noted. In certain circumstan
Slide 4: Third Quarter 2019 Highlights and Financial Summary
Third Quarter 2019 Highlights and Financial Summary ⦁ Solid third quarter 2019 financial results position Broadridge for strong fiscal 2019 • Third Quarter Recurring and Total revenues in line with guidance • Recurring fee revenues rose 20%, or 4%, excluding the impact of the accounting change • Eve
Slide 5: Business Update
Business Update ⦁ Solid financial results • Investor Communication Solutions ("ICS") Recurring fee revenues up 6% excluding the impact of the accounting change - including 14% growth, excluding Customer Communications • Global Technology and Operations ("GTO") revenues flat compared to very strong 3
Slide 6: Third Quarter 2019 Revenue Growth (Reported and ASC 606)
Third Quarter 2019 Revenue Growth (Reported and ASC 606) 3Q 2018 3Q 2019 Growth Reported ASC 606 Reported Reported ASC 606 Dollars in millions Recurring Fee Revenues $ 639 $ 736 $ 767 20% 4% Event-Driven Fee Revenues 67 69 68 3% 0% Distribution Revenues 385 422 418 9% (1)% FX (19) (19) (29) 55% 55%
Slide 7: Third Quarter 2019 Revenue Growth Drivers
Third Quarter 2019 Revenue Growth Drivers ▪ Third Quarter 2019 Total revenues grew 1% to $1.2 billion +3 pts. +1% 0 pt. (0) pt. (1) pt. $1,225M $1,208M ▪ Third Quarter 2019 Recurring fee revenues grew 4% to $767 million Organic Growth: 3% +6 pts. +1 pt. +4% (2) pts. (0) pt. $767M $736M Notes: (1) Pl
Slide 8: Third Quarter 2019 GAAP and Adjusted Operating Income and EPS
Third Quarter 2019 GAAP and Adjusted Operating Income and EPS Dollars in millions, except per share amounts Year-over-Year Change in Operating Income Year-over-Year Change in EPS and and Adjusted Operating Income Adjusted EPS +68% +59% +79% +61% 2019 | 8
Slide 9: 3Q 2019 Segment Revenue Growth (Reported and ASC 606)
3Q 2019 Segment Revenue Growth (Reported and ASC 606) Dollars in millions 3Q FY18 3Q FY19 Growth Reported ASC 606 Reported Reported ASC 606 Investor Communication Solutions Recurring Fee Revenues $ 403 $ 500 $ 530 31% 6% Event-Driven Fee Revenues 67 69 68 3% 0 % Distribution Revenues 385 422 418 9%
Slide 10: Capital Allocation and Summary Balance Sheet
Capital Allocation and Summary Balance Sheet Dollars in millions Select Uses of Cash through Third Summary Balance Sheet Quarter FY2019 as of March 31, 2019 Assets Cash and cash equivalents $ 292 Other assets 3,310 Total assets $ 3,602 Liabilities and Stockholders' Equity Total debt outstanding $ 1,
Slide 11: Fiscal Year 2019 Guidance - Updated
Fiscal Year 2019 Guidance - Updated Prior1 Current Recurring fee revenue growth 5 - 7% 5 - 7% Expected to be in lower half of range 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
Slide 12: Appendix
Appendix ps Broadridge’ 2019 | 12
Slide 13: Nine Months 2019 Revenue Growth (Reported and ASC 606)
Nine Months 2019 Revenue Growth (Reported and ASC 606) Dollars in millions 9M 2018 9M 2019 Growth Reported ASC 606 Reported Reported ASC 606 Recurring Fee Revenues $ 1,749 $ 1,847 $ 1,946 11% 5% Event-Driven Fee Revenues 223 222 193 (13)% (13)% Distribution Revenues 1,090 1,124 1,082 (1)% (4)% FX (5
Slide 14: Nine Months 2019 Revenue Growth Drivers
Nine Months 2019 Revenue Growth Drivers ▪ Nine Months Fiscal 2019 Total revenues remain flat at $3.2 billion +3 pts. 0% (1) pt. $3,140M (1) pt. (1) pt. $3,151M ▪ Nine Months Fiscal 2019 Recurring fee revenues grew 5% to $1.9 billion Organic Growth: 4% +6 pts. +1 pt. +5% +1 pt. (3) pts. $1,946M $1,84
Slide 15: 9M 2019 Segment Results (Reported and ASC 606)
9M 2019 Segment Results (Reported and ASC 606) 9M FY18 9M FY19 Growth Dollars in millions Reported ASC 606 Actual ASC 606 Adjusted Investor Communication Solutions Recurring Fee Revenues $ 1,071 $ 1,170 $ 1,245 16% 6% Event-Driven Fee Revenues 223 222 193 (13)% (13)% Distribution Revenues 1,090 1,12
Slide 16: Nine Months Fiscal Year 2019 GAAP and Adjusted Operating Income and EPS
Nine Months Fiscal Year 2019 GAAP and Adjusted Operating Income and EPS Dollars in millions, except per share amounts Year-over-Year Change in Operating Income Year-over-Year Change in EPS and and Adjusted Operating Income Adjusted EPS +21% +26% +36% +24% 2019 | 16
Slide 17: Tax Act and Excess Tax Benefit ("ETB") Impact
Tax Act and Excess Tax Benefit ("ETB") Impact 3Q 9M Fiscal Year 2019 2018 2019 2018 2019 2018 Dollars in millions Outlook Earnings before income taxes $125.2 $223.6 $303.0 $377.2 $561.0 Provision for income taxes (excluding ETB and non-recurring gains and charges) $31.8 $52.8 $84.4 $87.6 $158.6 Net
Slide 18: Supplemental Reporting Detail - Product Line Reporting
Supplemental Reporting Detail - Product Line Reporting Dollars in millions Q1FY18 Q2FY18 Q3FY18 Q4FY18 FY 2018 Q1FY19 Q2 FY19 Q3 FY19 YTD FY19 Investor Communication Solutions ("ICS") Equity proxy $ 30.0 $ 33.6 $ 45.1 $ 298.1 $ 406.8 $ 31.0 $ 41.7 $ 152.9 $ 225.6 Mutual fund and ETF interims 49.2 46
Slide 19: FY2018 Total Revenues: Impact of ASC 606
FY2018 Total Revenues: Impact of ASC 606 2018 Dollars in millions Q1 Q2 Q3 Q4 FY Revenues As Reported Recurring Fee Revenues $ 547.8 $ 562.4 $ 638.6 $ 861.5 $ 2,610.4 Event-Driven Fee Revenues 59.3 97.3 66.5 60.7 283.9 Distribution Revenues 334.2 370.4 385.4 422.9 1,512.9 FX (16.5) (17.4) (18.6) (24
Slide 20: FY 2018 Segment Recurring Fee Revenues: Impact of ASC 606
FY 2018 Segment Recurring Fee Revenues: Impact of ASC 606 2018 Dollars in millions Q1 Q2 Q3 Q4 FY Recurring Fee Revenues As Reported ICS $ 332.9 $ 334.4 $ 403.5 $ 628.0 $ 1,698.9 GTO 214.9 228.0 235.2 233.5 911.6 Total Recurring Fee Revenues $ 547.8 $ 562.4 $ 638.6 $ 861.5 $ 2,610.4 % of FY Recurrin
Slide 21: Reconciliation of Measures (Unaudited)
Reconciliation of GAAP to Non-GAAP Measures (Unaudited) Dollars in millions Three Months Ended March 31, Nine Months Ended March 31, 2019 2018 2019 2018 Operating income (GAAP) $ 233.6 $ 130.8 $ 411.9 $ 331.9 Adjustments: Amortization of Acquired Intangibles and Purchased Intellectual Property 21.2
Slide 22: Reconciliation of Measures (Unaudited)
Reconciliation of GAAP to Non-GAAP Measures (Unaudited) Dollars in millions, except per share amounts 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 Purch
Slide 23: Reconciliation of Measures (Unaudited)
Reconciliation of GAAP to Non-GAAP Measures (Unaudited) Three Months Ended Nine Months Ended Fiscal Year Dollars in millions Sept. 30, 2017 Dec. 31, 2017 March 31, 2018 June 30 , 2018 March 31, 2018 2018 Total Revenues $ 924.8 $ 1,012.8 $ 1,071.9 $ 1,320.4 $ 3,009.5 $ 4,329.9 ASC 606 Accounting Impa
Slide 24: Reconciliation of Measures - Third Quarter and FY19 Guidance (Unaudited)
Reconciliation of GAAP to Non-GAAP Measures - Third Quarter and FY19 Guidance (Unaudited) Dollars in millions, except per share amounts FY19 Adjusted Earnings Per Share Growth Rate (1) Diluted earnings per share (GAAP) 12% - 16% Adjusted earnings per share (Non-GAAP) 9% - 13% FY19 Adjusted Operating
Slide 25: Broadridge Investor Relations Contacts
Broadridge Investor Relations Contacts W. Edings Thibault Tel: 516-472-5129 Email: edings.thibault@broadridge.com James Ullenes Tel: 516-472-5016 Email: james.ullenes@broadridge.com 2019 | 25
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