Broadridge Financial Solutions, Inc. · NYSE:BR
Broadridge Financial Solutions — FY2019 Earnings Presentation
27 slides from Broadridge Financial Solutions's earnings presentation, Aug 1, 2019
Slide 1: Earnings Webcast and Conference Call Fourth Quarter and Fiscal Year 2019
EXHIBIT 99.2 Earnings Webcast and Conference Call Fourth Quarter and Fiscal Year 2019 © 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 ▪ Strong fiscal year 2019 results • Recurring fee revenues up 6% to $2.8 billion, Diluted EPS growth up 14% and Adjusted EPS up 11% to $4.66 • Record Closed sales of $233 million, up 9% • Ongoing investments in new products and M&A expected to strengthen and grow our business ▪ 11% annual
Slide 5: Fourth Quarter 2019 Operating Review
Fourth Quarter 2019 Operating Review ▪ Strong fourth quarter helped propel record full year Closed sales • Ended fiscal 2019 on a strong note with 4Q Closed sales of $72 million • Fourth quarter sales highlighted breadth of Broadridge's portfolio • Full year Closed sales record included landmark wea
Slide 6: Strategic Update
Strategic Update Deliver on financial Execute on growth Strengthen long-term objectives strategy growth foundations • Achieved FY2019 • New digital capabilities, • 97% Recurring fee Guidance including 6% including new proxy revenue retention Recurring fee revenue voting app • Employer of choice grow
Slide 7: Fourth Quarter 2019 Revenue Growth (Reported and ASC 606)
Fourth Quarter 2019 Revenue Growth (Reported and ASC 606) Dollars in millions 4Q 2018 4Q 2019 Growth Reported ASC 606 Reported Reported ASC 606 Recurring Fee Revenues $ 862 $ 764 $ 813 (6)% 6 % Event-Driven Fee Revenues 61 60 51 (16)% (15)% Distribution Revenues 423 399 378 (11)% (5)% FX (25) (25) (
Slide 8: Fiscal Year 2019 Revenue Growth (Reported and ASC 606)
Fiscal Year 2019 Revenue Growth (Reported and ASC 606) Dollars in millions FY 2018 FY 2019 Growth Reported ASC 606 Reported Reported ASC 606 Recurring Fee Revenues $ 2,610 $ 2,611 $ 2,759 6 % 6 % Event-Driven Fee Revenues 284 282 244 (14)% (13)% Distribution Revenues 1,513 1,523 1,461 (3)% (4)% FX (
Slide 9: Fourth Quarter 2019 Revenue Growth Drivers
Fourth Quarter 2019 Revenue Growth Drivers ▪ Fourth Quarter 2019 Total revenues grew 1% to $1.2 billion +4 pts. +1% (1) pt. (2) pts. $1,211M $1,198M (1) pt. 4Q '18 ASC 606 Total Revs. Recurring Event-Driven Distribution FX 4Q '19 Total Revs. ▪ Fourth Quarter 2019 Recurring fee revenues grew 6% to $8
Slide 10: 4Q 2019 Segment Revenue Growth (Reported and ASC 606)
4Q 2019 Segment Revenue Growth (Reported and ASC 606) Dollars in millions 4Q FY18 4Q FY19 Growth Reported ASC 606 Reported Reported ASC 606 Investor Communication Solutions Recurring Fee Revenues $ 628 $ 530 $ 561 (11)% 6 % Event-Driven Fee Revenues 61 60 51 (16)% (15)% Distribution Revenues 423 399
Slide 11: Fourth Quarter 2019 Operating Income and EPS
Fourth Quarter 2019 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 $400 $2.30 $350 $300 $1.90 (8)% (8)% (10)% (10)% $291 $1.86 $250 $1.72 $1.72 $266 $267 $1.5
Slide 12: Fiscal Year 2019 Operating Income and EPS
Fiscal Year 2019 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 $800 +8% $4.80 +11% $750 $4.66 $746 $4.50 $700 +9% +14% $688 $4.20 $650 $4.19 $653 $3.90 $4.06
Slide 13: Capital Allocation and Summary Balance Sheet
Capital Allocation and Summary Balance Sheet Dollars in millions Select Uses of Summary Balance Sheet Cash in FY2019 as of June 30, 2019 Assets M&A (a) $355 Cash and cash equivalents $ 273 Other assets 3,608 CapEx and Software $73 Total assets $ 3,881 Dividends $211 Liabilities and Stockholders' Equ
Slide 14: Record Sales Building Revenue Backlog
Record Sales Building Revenue Backlog $'s in millions Year-over-Year Closed Sales Recurring Revenue Backlog as of Performance1 June 301, 2 +9% Total $230 $233 Total ~$330 ~$295 $90 $210 $215 $80 $240 $190 $215 $170 $150 2018 2019 FY18 FY19 Not Yet Live Live (1) Closed sales and Recurring Revenue Bac
Slide 15: Fiscal Year 2020 Guidance
Fiscal Year 2020 Guidance 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 $190 - $230M (
Slide 16: Appendix
Appendix ps Broadridge’ 2018 | 16
Slide 17: Fiscal Year 2019 Revenue Growth Drivers
Fiscal Year 2019 Revenue Growth Drivers ▪ Fiscal Year 2019 Total revenues grew 1% to $4.4 billion +3 pts. +1% (1) pt. (1) pt. (1) pt. $4,362M $4,330M FY '18 Reported Total Revs. Recurring Event-Driven Distribution FX FY '19 Total Revs. ▪ Fiscal year 2019 Recurring fee revenues grew 6% to $2.8 billio
Slide 18: FY 2019 Segment Results (Reported and ASC 606)
FY 2019 Segment Results (Reported and ASC 606) FY18 FY19 Growth Dollars in millions Reported ASC 606 Reported Reported ASC 606 Investor Communication Solutions Recurring Fee Revenues $ 1,699 $ 1,700 $ 1,806 6 % 6 % Event-Driven Fee Revenues 284 282 244 (14)% (13)% Distribution Revenues 1,513 1,523 1
Slide 19: Tax Act and Excess Tax Benefit ("ETB") Impact
Tax Act and Excess Tax Benefit ("ETB") Impact 4Q FY 2020 2018 2019 2018 2019 FY Dollars in millions Indicative Earnings before income taxes $258.0 $230.0 $561.0 $607.3 Provision for income taxes (excluding ETB and non-recurring gains and charges) $74.2 $56.9 $158.6 $144.5 Net Tax Charges (0.7) — 15.
Slide 20: Supplemental Reporting Detail - Product Line Reporting
Supplemental Reporting Detail - Product Line Reporting 2018 2019 Dollars in millions 1Q 2Q 3Q 4Q FY 1Q 2Q 3Q 4Q FY Investor Communication Solutions ("ICS") Equity proxy $ 30.0 $ 33.6 $ 45.1 $ 298.1 $ 406.8 $ 31.0 $ 41.7 $ 152.9 $ 211.4 $ 437.0 Mutual fund and ETF interims 49.2 46.9 67.0 58.3 221.4 5
Slide 21: FY2018 Total Revenues: Impact of ASC 606
FY2018 Total Revenues: Impact of ASC 606 2018 Dollars in millions Q1 Q2 Q3 Q4 FY Revenues As Reported Recurring Fee Revenues $ 547.8 $ 562.4 $ 638.6 $ 861.5 $2,610.4 Event-Driven Fee Revenues 59.3 97.3 66.5 60.7 283.9 Distribution Revenues 334.2 370.4 385.4 422.9 1,512.9 FX (16.5) (17.4) (18.6) (24.
Slide 22: FY 2018 Segment Recurring Fee Revenues: Impact of ASC 606
FY 2018 Segment Recurring Fee Revenues: Impact of ASC 606 2018 Dollars in millions Q1 Q2 Q3 Q4 FY Recurring Fee Revenues As Reported ICS $ 332.9 $ 334.4 $ 403.5 $ 628.0 $1,698.9 GTO 214.9 228.0 235.2 233.5 911.6 Total Recurring Fee Revenues $ 547.8 $ 562.4 $ 638.6 $ 861.5 $2,610.4 % of FY Recurring
Slide 23: Reconciliation of Measures (Unaudited)
Reconciliation of GAAP to Non-GAAP Measures (Unaudited) Dollars in millions Three Months Ended June 30, Fiscal Year 2019 2018 2019 2018 Operating income (GAAP) $ 240.8 $ 266.2 $ 652.7 $ 598.1 Adjustments: Amortization of Acquired Intangibles and Purchased Intellectual Property 23.1 22.1 87.4 81.4 Ac
Slide 24: Reconciliation of Measures (Unaudited)
Reconciliation of GAAP to Non-GAAP Measures (Unaudited) Dollars in millions, except per share amounts Three Months Ended June 30, Fiscal Year 2019 2018 2019 2018 Diluted earnings per share (GAAP) $ 1.55 $ 1.72 $ 4.06 $ 3.56 Adjustments: Amortization of Acquired Intangibles and Purchased Intellectual
Slide 25: Reconciliation of Measures (Unaudited)
Reconciliation of GAAP to Non-GAAP Measures (Unaudited) Three Months Ended Fiscal Year Dollars in millions Sept. 30, 2017 Dec. 31, 2017 March 31, 2018 June 30 , 2018 2018 Total Revenues $ 924.8 $ 1,012.8 $ 1,071.9 $ 1,320.4 $ 4,329.9 ASC 606 Accounting Impact (a) 59.1 (65.2) 136.3 (122.5) 7.7 ASC 60
Slide 26: Reconciliation of Measures - FY20 Guidance (Unaudited)
Reconciliation of GAAP to Non-GAAP Measures - FY20 Guidance (Unaudited) FY20 Adjusted Earnings Per Share Growth Rate (a) Diluted earnings per share (GAAP) 5% - 9% Adjusted earnings per share (Non-GAAP) 8% - 12% FY20 Adjusted Operating Income Margin (b) Operating income margin % (GAAP) ~15% Adjusted
Slide 27: Broadridge Investor Relations Contacts
Broadridge Investor Relations Contacts W. Edings Thibault Tel: 516-472-5129 Email: edings.thibault@broadridge.com James Ullenes Tel: 516-472-5016 Email: james.ullenes@broadridge.com 2018 | 27
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