Broadridge Financial Solutions, Inc. · NYSE:BR
Broadridge Financial Solutions — Q3 FY2016 Earnings Presentation
14 slides from Broadridge Financial Solutions's earnings presentation, May 5, 2016
Slide 1: Earnings Webcast & Conference Call Third Quarter FY 2016
1 © 2014 | Earnings Webcast & Conference Call Third Quarter FY 2016 May 5, 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 generally accepted accounting principles in the United States (“GAAP”) except where otherwise noted. In certain circumstances, results have
Slide 4: Key Messages
4 Key Messages •Strong Q3 financial results • Reaffirming FY16 guidance and narrowing full year Revenue and Adjusted EPS ranges • Results aligned with Investor Day 3-year objectives • Solid sales performance in Q3 and YTD keeping us well positioned to deliver full year sales guidance • Both segments
Slide 5: Q3FY16 and YTD Financial Highlights
5 Q3FY16 and YTD Financial Highlights • Recurring revenues growth of 12% and 10% in Q3 and YTD, respectively • Adjusted Diluted earnings per share (EPS) growth of 23% and 17% in Q3 and YTD, respectively • Reaffirming full year 2016 guidance, including: · Recurring fee revenue growth of 10-12%, towar
Slide 6: Q3FY16 Business Update
6 Q3FY16 Business Update • Closed Sales of $29M in Q3 and $94M Year To Date · Pipeline remains robust • Industry Update · Industry cost pressures driving both opportunities and challenges · Department of Labor - Current Industry hot topic · Product innovation expanding across both segments • Regulat
Slide 7: Key Financial Drivers
7 3Q FY16 3Q YTD FY16 Actual Actual Growth Drivers as a % of Recurring Fee Revenues Closed Sales 8% 6% Client Losses (2)% (2)% Net New Business 6% 5% Internal Growth 2% 1% Organic Growth 8% 6% Acquisitions 4% 4% Total Recurring Fee Revenue Growth 12% 10% Growth Drivers as a % of Total Revenues Recur
Slide 8: Segment Results
8 ($ in millions) Investor Communication Solutions (ICS) 3Q15 3Q16 Versus Prior Year 3Q15 YTD 3Q16 YTD Versus Prior Year Recurring Fee Revenues $228 $263 15% $620 $698 13% Total Revenues $466 $515 11% $1,264 $1,417 12% Earnings before income taxes $63 $67 7% $135 $147 9% Pre-tax Margins 13.5 % 13.0
Slide 9: FY16 Guidance
9 FY16 Guidance Broadridge Financial Solutions, Inc. Recurring fee revenue growth 10 - 12% Total revenue growth 8 - 10% Adjusted Operating income margins ~18.4% Effective tax rate ~34.8% Adjusted Diluted earnings per share growth 8 - 12% Diluted earnings per share growth 7 - 12% Free cash flows $350
Slide 10: Closing Summary
10 Closing Summary • Solid Q3 and YTD financial and closed sales performance reflects our trusted brand and strong value proposition • Reaffirming FY16 guidance and narrowing full year Revenue and Adjusted EPS ranges • Expect full-year results to be aligned with three-year objectives · Drive sales p
Slide 11: Q&A and Closing Comments
11 Q&A and Closing Comments There are no slides during this portion of the presentation
Slide 12: Appendix
12 Appendix
Slide 13: Reconciliation of Non-GAAP to GAAP Measures (Unaudited)
13 Reconciliation of Non-GAAP to GAAP Measures (Unaudited) Three Months Ended March 31, Nine Months Ended March 31, 2016 2015 2016 2015 Adjusted Operating income (Non-GAAP) $ 109.8 $ 96.3 $ 257.9 $ 226.7 Acquisition Amortization and Other Costs (9.1 ) (7.3 ) (28.0 ) (21.6 ) Operating income (GAAP) $
Slide 14: Reconciliation of Non-GAAP to GAAP Measures - FY16 Guidance
14 Reconciliation of Non-GAAP to GAAP Measures- FY16 Guidance Earnings Per Share Growth Rate (1) FY16 Guidance Adjusted Diluted earnings per share (Non-GAAP) 8% - 12% growth Diluted earnings per share (GAAP) 7% - 12% growth Operating Income Margin (2) FY16 Guidance Adjusted Operating income margin %
Broadridge Financial Solutions — Q3 FY2016 Earnings Presentation on 6ix