Broadridge Financial Solutions, Inc. · NYSE:BR
Broadridge Financial Solutions — Q1 2013 Earnings Presentation
25 slides from Broadridge Financial Solutions's earnings presentation, Nov 6, 2012
Slide 1: Earnings Webcast & Conference Call First Quarter 2013
Exhibit 99.2 Earnings Webcast & Conference Call First Quarter 2013 © 2012 Broadridge Financial Solutions, Inc. Broadridge and the Broadridge logo are registered trademarks of Broadridge Financial Solutions, Inc. November 6, 2012
Slide 2: Forward-Looking Statements
Forward-Looking Statements This press release 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: Today's Agenda
Today’s Agenda Opening Remarks and Other Rich Daly, CEO Key Topics First Quarter 2013 Dan Sheldon, CFO Highlights and Segment Results Summary Rich Daly, CEO Q&A Rich Daly, CEO Dan Sheldon, CFO Closing Remarks Rich Daly, CEO 2
Slide 4: Key Topics
Opening Remarks Key Topics: Financial Highlights Closed Sales Performance Key Activities Update 3
Slide 5: Financial Highlights
Financial Highlights Recurring revenues for the quarter were up 3% Total revenue was up 4% Higher than anticipated event-driven and related distribution revenues were partially offset by lower than anticipated trade volumes Non-GAAP diluted earnings per share (EPS) of $0.18 were flat GAAP diluted EP
Slide 6: Closed Sales Performance
Closed Sales Performance Recurring revenue closed sales for the quarter were down ~30% No large transactions >$5M, one $7M ICS closed sale in prior year Recurring revenue closed sales from transactions less than $5M were up ~8% • ICS recurring revenue closed sales were $6M vs. $8M in prior year • SP
Slide 7: Key Activities Update
Key Activities Update Penson/Apex and COR Clearing Substantially completed Apex conversion Approximately 100 Apex correspondents expected to move to COR Clearing Finalizing contract with COR Clearing to become Outsourcing client Expect net revenue win. COR Clearing also expected to become an ICS cli
Slide 8: Non-GAAP EPS Guidance
Non-GAAP EPS Guidance Reconciliation of EPS Guidance 1Q12 1Q13 FY12 FY13 Range Actual Actual Actual Low High Guidance Provided in August 2012 - Diluted EPS (Non-GAAP) $0.15 $0.15 $1.55 $1.65 $1.75 Acquisition Amortization and Other Costs $0.03 0.03 $0.12 0.11 0.11 Current Guidance - Diluted EPS (Non
Slide 9: Segment Results & Forecast – Investor Communication Solutions
Segment Results & Forecast – Investor Communication Solutions Revenue/Growth EBIT/Growth (Non-GAAP) Margin/Growth (Non-GAAP) Q1: $339M / 8% $27M / 224% 8.0% / 530 bps FY13: $1,695 to 1,707M / 4% $291 to 299M / 20 to 23% 17.2 to 17.5% / 230 to 260 bps FY13 guidance on revenue and margins remains inta
Slide 10: Segment Results & Forecast – Securities Processing Solutions
Segment Results & Forecast – Securities Processing Solutions Revenue/Growth EBIT/Growth (Non-GAAP) Margin/Growth (Non-GAAP) Q1: $154M / (3)% $9M / (66)% 6.1% / (1150) bps FY13: $658 to 683M / 0 to +4% $79 to 102M / (13) to +12% 12 to 15% / (190) to +110 bps Total revenue was lower in Q1: Net new bus
Slide 11: Summary
Summary Solid start for fiscal year 2013 Recurring revenue closed sales pipeline continues to be strong Event-driven slightly higher and equity trading volumes down No surprises, difficult environment Strong products and outsourcing momentum Multiple paths to create value Good strategic direction in
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
13 Appendix Bg Broadridge
Slide 15: Other & Foreign Exchange (FX)
Segment Results & Forecast – Other & Foreign Exchange (FX) FY13 Range 1Q13 Low High Corporate Expenses $(7)M $(30)M $(37)M Interest Expense, net $(3)M $(17)M $(21)M FX - P&L - Revenue $2M $13M $13M - EBIT $4M $14M $14M - Transaction Activity $(1)M $(1)M $(1)M Penson Charges, net $(1)M $(10)M $(10)M
Slide 16: Revenue Growth Drivers and EBIT Margin
Revenue Growth Drivers and EBIT Margin Historical CAGR 1Q Forecast (FY07-FY12) FY13 FY13 2% Total Revenue Growth 4% 3-4% 3% Closed Sales (Recurring) 3% 4-5% (2%) Client Losses (1%) (1)% 1% Net New Business 2% 3-4% 1% Internal Growth (a) (1%) 0% 2% Acquisitions 1% 0% 4% Total Recurring 2% 3-4% (1%) E
Slide 17: Broadridge FY13 Q1 from Continuing Operations
Broadridge FY13 Q1 from Continuing Operations 16
Slide 18: Broadridge FY13 Guidance from Continuing Operations
Broadridge FY13 Guidance from Continuing Operations 17
Slide 19: Cash Flow – Q1 FY13 Results and FY13 Forecast
Cash Flow –Q1 FY13 Results and FY13 Forecast Free Cash Flow - Non-GAAP Unaudited ($ millions) Three Months Ended FY13 Range (a) September 2012 Low High Free Cash Flow (Non-GAAP) : Net earnings from continuing operations (GAAP) $ 18 $ 205 $ 218 Depreciation and amortization (includes other LT assets)
Slide 20: Recurring Closed Sales to Revenue Contribution
Recurring Closed Sales to Revenue Contribution Recurring Closed Sales to Revenue (a) (b) ($ in millions) Closed Sales Revenue Contribution Backlog Forecast Forecast Forecast FY13 FY13 FY13 ICS $50-70 ~$50-60 ~$35-45 ~Contribution to revenue growth ~3% SPS $60-80 ~$40-50 ~$85-105 ~Contribution to rev
Slide 21: Revenues and Closed Sales FY07-FY13
Revenues and Closed Sales FY07-FY13 ($ in millions) Forecast Recurring Fee Revenues FY07 FY08 FY09 FY10 FY11 FY12 FY13 ICS $ 529 $ 567 $ 594 $ 632 $ 720 $ 798 $862-874 Growth 3% 7% 5% 6% 14% 11% 8-10% SPS $ 527 $ 534 $ 559 $ 536 $ 594 $ 655 $658-683 Growth 11% 1% 5% -4% 11% 10% 0-4% Total Recurring
Slide 22: Reconciliation of Non-GAAP to GAAP Measures
Reconciliation of Non-GAAP to GAAP Measures Reconciliation of EPS Guidance 1Q12 1Q13 FY12 FY13 Range Actual Actual Actual Low High Guidance Provided in August 2012 - Diluted EPS (Non-GAAP) $0.15 $0.15 $1.55 $1.65 $1.75 Acquisition Amortization and Other Costs $0.03 0.03 $0.12 0.11 0.11 Current Guida
Slide 23: ICS Key Segment Revenue Stats
ICS Key Segment Revenue Stats Fee Revenues 1Q12 1Q13 Type RC= Recurring ED= Event-Driven Proxy Equities $ 23.6 $ 25.6 RC In millions Stock Record Position Growth 1% -4% Pieces 20.4 20.3 Mutual Funds $ 5.2 $ 6.5 ED Pieces 6.4 8.2 Contests/Specials $ 3.3 $ 3.0 ED Pieces 3.7 2.7 Total Proxy $ 32.1 $ 35
Slide 24: SPS and Outsourcing Key Segment Revenue Stats
SPS and Outsourcing Key Segment Revenue Stats RC= Recurring 1Q12 1Q13 Type ED= Event-Driven In millions Equity Transaction-Based Equity Trades (a) $ 36.4 $ 30.0 RC Internal Trade Volume 1,013 821 Internal Trade Growth 20% -19% Trade Volume (Average Trades per Day in '000) 1,020 828 Non-Transaction O
Slide 25: Broadridge ICS Definitions
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 brokers or banks
Broadridge Financial Solutions — Q1 2013 Earnings Presentation on 6ix