Broadridge Financial Solutions, Inc. · NYSE:BR
Broadridge Financial Solutions — Q3 2017 Earnings Presentation
17 slides from Broadridge Financial Solutions's earnings presentation, Aug 10, 2017
Slide 1: Earnings Webcast & Conference Call Third Quarter and Nine Months of Fiscal 2017
1© 2014 | Earnings Webcast & Conference Call Third Quarter and Nine Months of Fiscal 2017 May 10, 2017 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 Financial Solutions, Inc. ("Broadridge" or the "Company") may contain “forward-looking statements” within the meaning of the Private Securities Litigation Refor
Slide 3: Use of Non-GAAP Financial Measures
3 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. GAAP except where otherwise noted. In certain circumstances, results have been presented that are n
Slide 4: Third Quarter 2017 Summary
4 Third Quarter 2017 Summary ▪ Strong financial results ◦ Total revenues rose 46% and recurring fee revenues rose 30% ◦ Operating income rose 9% and Diluted EPS was up 21% ◦ Adjusted Operating income rose 22% and Adjusted EPS was up 19% ▪ Record Closed sales up 66% ◦ Record YTD Closed sales up 33% ◦
Slide 5: Business Update
5 Business Update ▪ Broad momentum across both GTO and ICS ◦ Mid-single digit growth from Net New Business ◦ Broad product breadth driving growth ▪ Stock position growth at 6% in third quarter - on track for another year of mid-single digit growth ▪ Stronger mutual fund position growth in line with
Slide 6: 3Q 2017 Revenue Growth Drivers
6 3Q 2017 Revenue Growth Drivers ▪ Third Quarter 2017 Recurring fee revenue grew 30% to $592 million ▪ Third Quarter 2017 Total revenue grew 46% to $1,009 million 3Q16 Total Revs. Recurring Event Driven Distribution FX 3Q17 Total Revs. $1,009 M+20% +2% +25% 0% 3Q16 Recurring Revs. Closed Sales Clien
Slide 7: Nine Months 2017 Revenue Growth Drivers
7 Nine Months 2017 Revenue Growth Drivers ▪ Nine Months 2017 Recurring fee revenue grew 32% to $1.6 billion ▪ Nine Months 2017 Total revenue grew 45% to $2.8 billion 9M16 Total Revs. Recurring Event Driven Distribution Other 9M17 Total Revs. $2.8 B +21% -1% +26% -1% 9M16 Recurring Revs. Closed Sales
Slide 8: Third Quarter 2017 Operating Income and EPS Comparison
8 Third Quarter 2017 Operating Income and EPS Comparison $ in millions, except per share amounts 3Q17 Change in Operating Income and Adjusted Operating Income 3Q 2017 Change in EPS and Adjusted EPS Operating Income Adj. Operating Income $140 $130 $120 $110 $100 $90 3Q 2016 3Q 2017 $101 $110$110 $134
Slide 9: Nine Months Fiscal Year 2017 Operating Income and EPS Comparison
9 Nine Months Fiscal Year 2017 Operating Income and EPS Comparison $ in millions, except per share amounts 9 Months Fiscal 2017 Change in Operating Income and Adjusted Operating Income 9 Months Fiscal 2017 Change in EPS and Adjusted EPS Operating Income Adj. Operating Income $310 $290 $270 $250 $230
Slide 10: Segment Results
10 ($ in millions) Investor Communication Solutions ("ICS") Q3 2016 Q3 2017 Change 9M 2016 9M 2017 Change Recurring fee revenues $263 $389 48% $698 $1,053 51% Total revenues $515 $826 60% $1,417 $2,259 59% Earnings before income taxes $67 $74 10% $147 $125 (15)% Pre-tax margins 13.0% 8.9% 10.4% 5.5%
Slide 11: Capital Allocation and Summary Balance Sheet
11 Capital Allocation and Summary Balance Sheet Select Uses of Cash in 3Q 2017 • $37 million in capital expenditures and software investment • $20 million* to acquire Message Automation • $100 million to acquire BR shares Summary Balance Sheet as of March 31, 2017 Assets Cash and equivalents $ 270 O
Slide 12: Reaffirming Fiscal Year 2017 Guidance
12 Reaffirming Fiscal Year 2017 Guidance Comment Recurring fee revenue growth 29 - 31% Expected to be at lower end of range Total revenue growth 40 - 42% Expected to be at upper end of range Adjusted Operating income margin - Non-GAAP ~15% Diluted earnings per share growth 2 - 7% Adjusted earnings p
Slide 13: Closing Summary
13 Closing Summary ▪ On pace for another "Broadridge year" ◦ Expecting 5-7% revenue growth excluding impact of NACC ◦ Expecting double digit growth in Adjusted EPS ▪ Balanced capital allocation enables internal investment ◦ Investments have aligned Broadridge with key industry growth trends ▪ Furthe
Slide 14: Appendix
14 Appendix
Slide 15: Reconciliation of GAAP to Non-GAAP Measures
15 Reconciliation of GAAP to Non-GAAP Measures $ in millions, except per share figures Three Months Ended March 31, Nine Months Ended March 31, 2017 2016 2017 2016 Operating income (GAAP) $ 109.7 $ 100.6 $ 234.6 $ 229.9 Adjustments: Amortization of Acquired Intangibles and Purchased Intellectual Pro
Slide 16: Reconciliation of GAAP to Non-GAAP Measures - FY17 Guidance
16 Reconciliation of GAAP to Non-GAAP Measures - FY17 Guidance (Unaudited) Adjusted Earnings Per Share Growth Rate (1) Diluted earnings per share (GAAP) 2% - 7% Adjusted earnings per share (Non-GAAP) 12% - 17% Adjusted Operating Income Margin (2) Operating income margin % (GAAP) ~13% Adjusted Operat
Slide 17: Broadridge Investor Relations
17 Broadridge Investor Relations W. Edings Thibault Head of Investor Relations Tel: 516-472-5129 Email: edings.thibault@broadridge.com
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