Broadridge Financial Solutions, Inc. · NYSE:BR
Broadridge Financial Solutions — Q1 FY2020 Earnings Presentation
17 slides from Broadridge Financial Solutions's earnings presentation, Nov 6, 2019
Slide 1: Earnings Webcast and Conference Call First Quarter Fiscal Year 2020
EXHIBIT 99.2 Earnings Webcast and Conference Call First 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: Highlights
Highlights ⦁ Solid first quarter 2020 financial results • Recurring fee revenues rose 8% • Event-driven revenues declined 48% • Diluted EPS of $0.48 and Adjusted EPS of $0.68 • Record Closed sales of $38 million, up 103% ⦁ Continued investments in new products and M&A to strengthen and grow our busi
Slide 5: First Quarter 2020 Operating Review
First Quarter 2020 Operating Review ⦁ ICS: continued growth in recurring fee revenues • Recurring fee revenue growth of 10% (organic growth of 6%) excluding Customer Communications • Continued strong, double-digit growth in data and analytics products • Customer Communications revenues declined 2% •
Slide 6: Tuck-in M&A Tightly Linked to Growth Strategy
Tuck-in M&A Tightly Linked to Growth Strategy ⦁ Nearly $700 million invested across 13 acquisitions since end of FY2017 ⦁ M&A aligned with strategic priorities: • Governance ($307 million): includes TD Ameritrade retirement assets, Fi360 and Summit Financial • Wealth ($347 million): includes RPM • C
Slide 7: First Quarter 2020 Revenue Growth Drivers
First Quarter 2020 Revenue Growth Drivers ▪ First Quarter 2020 Recurring fee revenues grew 8% to $623 million Organic Growth: 2% +6 pts. +8% +6 pts. $623M (3) pts. (1) pt. $576M ▪ First Quarter 2020 Total revenues declined 2% to $949 million +5 pts. (4) pts. (2)% $973M (3) pts. (1) pt. $949M Note: A
Slide 8: 1Q 2020 Segment Revenue Growth and Drivers
1Q 2020 Segment Revenue Growth and Drivers Dollars in millions 1Q 2019 2020 Growth Investor Communication Solutions Revenues1 Recurring Fee Revenues $ 337 $ 349 4% Event-Driven Fee Revenues 77 40 (48)% Distribution Revenues 341 313 (8)% Total ICS Revenues $ 755 $ 703 (7)% Global Technology and Opera
Slide 9: First Quarter 2020 Operating Income and EPS
First 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 EPS and and Adjusted Operating Income Adjusted EPS (14)% (16)% (25)% (27)% 2019 | 9
Slide 10: 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 September 30, 2019 Assets $481 $1712 $219 Cash and cash equivalents $ 358 Other assets 3,862 Total assets $ 4,220 $20 Liabilities and Stockholders' Equity Current portion of
Slide 11: Fiscal Year 2020 Guidance - Reaffirmed
Fiscal Year 2020 Guidance - Reaffirmed Recurring fee revenue growth 8 - 10% Total revenue growth 3 - 6% Operating income margin - GAAP ~15% Adjusted Operating income margin - Non-GAAP ~18% Diluted earnings per share growth1 5 - 9% Adjusted earnings per share growth1 - Non-GAAP 8 - 12% Closed sales $
Slide 12: Appendix
Appendix pa Broadridge’ 2019 | 12
Slide 13: Supplemental Reporting Detail - Product Line Reporting
Supplemental Reporting Detail - Product Line Reporting1 2019 1Q 2020 Dollars in millions 1Q 2Q 3Q 4Q FY 1Q % Growth Investor Communication Solutions ("ICS") Equity proxy $ 31.0 $ 41.7 $ 152.9 $ 211.4 $ 437.0 $ 29.8 (4)% Mutual fund and ETF interims 57.8 60.7 82.1 65.3 265.9 65.3 13% Customer communi
Slide 14: Reconciliation of GAAP to Non-GAAP Measures (Unaudited)
Reconciliation of GAAP to Non-GAAP Measures (Unaudited) Dollars in millions Three Months Ended September 30, 2019 2018 Operating income (GAAP) $ 73.1 $ 100.1 Adjustments: Amortization of Acquired Intangibles and Purchased Intellectual Property 28.1 21.9 Acquisition and Integration Costs 2.5 0.9 Adju
Slide 15: 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 September 30, 2019 2018 Diluted earnings per share (GAAP) $ 0.48 $ 0.64 Adjustments: Amortization of Acquired Intangibles and Purchased Intellectual Property 0.24 0.18 Acquisition
Slide 16: 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) 5% - 9% Adjusted earnings per share growth (Non-GAAP) 8% - 12% FY20 Adjusted Operating Income Margin (b) Operating income margin % (GAAP)
Slide 17: Broadridge Investor Relations Contacts
Broadridge Investor Relations Contacts W. Edings Thibault Tel: 516-472-5129 Email: edings.thibault@broadridge.com 2019 | 17
Broadridge Financial Solutions — Q1 FY2020 Earnings Presentation on 6ix