Broadridge Financial Solutions, Inc. · NYSE:BR
Broadridge Financial Solutions — Q2 2020 Earnings Presentation
21 slides from Broadridge Financial Solutions's earnings presentation, Jan 31, 2020
Slide 1: Q2 Earnings Webcast and Conference Call Second Quarter Fiscal Year 2020
EXHIBIT 99.2 Q2 Earnings Webcast and Conference Call Second Quarter Fiscal Year 2020 © 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: Second Quarter Highlights
Second Quarter Highlights ▪ 7% Recurring fee revenue growth driven by strong contribution from recent acquisitions ▪ Event-Driven Revenue down 36% to near historic low drove lower EPS • Adjusted EPS down 5% to $0.53 in seasonally small quarter • GAAP EPS down 79% to $0.09 driven by charges associate
Slide 5: Second Quarter 2020 Operating Review
Second Quarter 2020 Operating Review ▪ ICS Recurring revenues: continued growth • Recurring fee revenue growth of 9% (organic growth of 4%) excluding Customer Communications in quarter • Customer Communications revenues declined 3% driven by lower mutual funds communications in quarter ▪ Event-drive
Slide 6: Business Update: Focused on Long-term Growth
Business Update: Focused on Long-term Growth ▪ Regulatory update ▪ Recent acquisitions strengthen core businesses • Wealth: ClearStructure • Governance: FundsLibrary ▪ Broadridge Private Cloud an important step forward in our cloud strategy enabling improved time-to-market, increased resilience, and
Slide 7: Second Quarter 2020 Revenue Growth Drivers
Second Quarter 2020 Revenue Growth Drivers ▪ Second Quarter 2020 Recurring fee revenues grew 7% to $648 million Organic Growth: 1.5% $623M +6 pts. +6 pts. +7% $576M $648M (2) pts. (3) pts. $604M 2Q '19 Recurring Revs. Closed Sales Client Losses Internal Growth Acquisitions 2Q '20 Recurring Revs. ▪ S
Slide 8: Event-Driven Revenue: Near Historic Low
Event-Driven Revenue: Near Historic Low Q2 Dollars in millions Note: Significant mutual fund proxy events were noted in FY17 Q4, FY18 Q2, and FY19 Q1. Note: Amounts may not sum due to rounding. 2020 | 8
Slide 9: Second Quarter 2020 Segment Revenue Growth and Drivers
Second Quarter 2020 Segment Revenue Growth and Drivers Dollars in millions 2Q 2019 2020 Growth Investor Communication Solutions Revenues1 Recurring Fee Revenues $ 357 $ 368 3 % Event-Driven Fee Revenues 48 31 (36)% Distribution Revenues 323 317 (2)% Total ICS Revenues $ 728 $ 716 (2)% Global Technol
Slide 10: Second Quarter 2020 Operating Income and EPS
Second Quarter 2020 Operating Income and EPS Dollars in millions, except per share amounts Year-over-Year Change in Operating Income Year-over-Year Change in Diluted EPS and and Adjusted Operating Income Adjusted EPS $150 $0.60 (5)% $0.56 $125 $0.53 $0.45 $100 (7)% $101 $0.42 $94 $75 $78 $0.30 $50 (
Slide 11: Capital Allocation and Summary Balance Sheet
Capital Allocation and Summary Balance Sheet Dollars in millions Summary Balance Sheet Select Uses of Cash Year to Date as of December 31, 2019 Assets M&A (a) $270 Cash and cash equivalents $ 234 Other assets 4,151 Total assets $ 4,385 CapEx and Software $43 Liabilities and Stockholders' Equity Curr
Slide 12: Fiscal Year 2020 Guidance - Updated
Fiscal Year 2020 Guidance - Updated Guidance - Updated Change / Update1 Recurring fee revenue growth 8 - 10% No change Total revenue growth 3 - 6% No change Reduced from Operating income margin - GAAP ~14% ~15%2 Adjusted Operating income margin - Non-GAAP ~18% No change Reduced from Diluted earnings
Slide 13: Supplemental Reporting Detail - Product Line Reporting
Supplemental Reporting Detail - Product Line Reporting1 2019 2Q 2020 Dollars in millions 1Q 2Q 3Q 4Q FY 2Q % Growth Investor Communication Solutions ("ICS") Equity proxy $ 31.0 $ 41.7 $ 152.9 $ 211.4 $ 437.0 $ 42.2 1 % Mutual fund and ETF interims 57.8 60.7 82.1 65.3 265.9 65.1 7 % Customer communic
Slide 14: Six Months Fiscal Year 2020 vs. Six Months Fiscal Year 2019
Six Months Fiscal Year 2020 vs. Six Months Fiscal Year 2019 2020 | 14
Slide 15: Six Months (1H) 2020 Revenue Growth Drivers
Six Months (1H) 2020 Revenue Growth Drivers ▪ Six Months Fiscal 2020 Recurring fee revenues grew 8% to $1,272 million Organic Growth: 2% +6 pts. $623M+8% +6 pts. $1,272M $576M (3) pts. (2) pts. $1,179M 1H '19 Recurring Revs. Closed Sales Client Losses Internal Growth Acquisitions 1H '20 Recurring Re
Slide 16: 1H 2020 Segment Revenue Growth and Drivers
1H 2020 Segment Revenue Growth and Drivers Dollars in millions 1H 2019 2020 Growth Investor Communication Solutions Revenues1 Recurring Fee Revenues $ 694 $ 717 3 % Event-Driven Fee Revenues 125 71 (43)% Distribution Revenues 664 630 (5)% Total ICS Revenues $ 1,483 $ 1,418 (4)% Global Technology and
Slide 17: Reconciliation of GAAP to Non-GAAP Measures
Reconciliation of GAAP to Non- GAAP Measures 2020 | 17
Slide 18: Reconciliation of GAAP to Non-GAAP Measures (Unaudited)
Reconciliation of GAAP to Non-GAAP Measures (Unaudited) Dollars in millions Three Months Ended December 31, Six Months Ended December 31, 2019 2018 2019 2018 Operating income (GAAP) $ 26.8 $ 78.2 $ 99.9 $ 178.3 Adjustments: Amortization of Acquired Intangibles and Purchased Intellectual Property 30.
Slide 19: Reconciliation of GAAP to Non-GAAP Measures (Unaudited)
Reconciliation of GAAP to Non-GAAP Measures (Unaudited) Dollars in millions, except per share amounts Three Months Ended December 31, Six Months Ended December 31, 2019 2018 2019 2018 Diluted earnings per share (GAAP) $ 0.09 $ 0.42 $ 0.56 $ 1.06 Adjustments: Amortization of Acquired Intangibles and
Slide 20: Reconciliation of GAAP to Non-GAAP Measures - FY20 Guidance
Reconciliation of GAAP to Non-GAAP Measures - FY20 Guidance (Unaudited) FY20 Adjusted Earnings Per Share Growth Rate (a) Diluted earnings per share growth (GAAP) (4) - 0% Adjusted earnings per share growth (Non-GAAP) 8% - 12% FY20 Adjusted Operating Income Margin (b) Operating income margin % (GAAP)
Slide 21: Broadridge Investor Relations Contact
Broadridge Investor Relations Contact W. Edings Thibault Tel: 516-472-5129 Email: edings.thibault@broadridge.com 2020 | 21
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