LAKE SUCCESS, NY -- (Marketwired) -- 05/07/13 -- Broadridge Financial Solutions, Inc. (NYSE: BR) today reported financial results for the third quarter of its fiscal year 2013. For the three months ended March 31, 2013, the Company reported revenues of $577 million, GAAP net earnings from continuing operations of $43 million, Non-GAAP net earnings from continuing operations of $50 million, GAAP diluted earnings per share from continuing operations of $0.35, and Non-GAAP diluted earnings per share from continuing operations of $0.39. This compares with revenues of $547 million, GAAP net earnings from continuing operations of $18 million, Non-GAAP net earnings from continuing operations of $41 million, GAAP diluted earnings per share from continuing operations of $0.14, and Non-GAAP diluted earnings per share from continuing operations of $0.32 for the comparable quarter of the previous fiscal year.
Our fiscal year 2013 Non-GAAP results exclude the impact of Acquisition Amortization and Other Costs, and restructuring charges. In addition, our fiscal year 2012 Non-GAAP results exclude the impact of Acquisition Amortization and Other Costs, impairment charges, and IBM Migration costs. The significant Non-GAAP adjustments to our results are described in more detail below.
Commenting on the results, Richard J. Daly, Chief Executive Officer, said, "Overall, I am pleased with our third quarter results. For the quarter compared to the same period last year, our total and recurring revenues grew 5%, and our Non-GAAP net earnings from continuing operations and Non-GAAP diluted earnings per share from continuing operations both grew approximately 22%, despite the continuing market challenges. Recurring revenue closed sales were up 50% and we continue to make progress on the large pending sales. We remain confident in our ability to achieve our full year closed sales guidance which will require closing at least one of the large pending transactions. Our sales pipeline remains robust and our client revenue retention rate remains high at approximately 99%." Mr. Daly concluded, "We believe we are in a great position to complete fiscal year 2013 with strong operating results and the momentum to position us well for fiscal year 2014 and beyond. The solid foundation we've built based on a diverse set of leading products and services, a service profit chain culture built on strong values, a trusted brand, and a continued commitment to drive efficiency, is expected to deliver attractive and sustainable total shareholder return over the long-term through revenue growth, expanding margins and strong free cash flows. We remain committed to an effective capital stewardship program to create shareholder value through an attractive dividend payout, strategic tuck-in acquisitions, and opportunistic share repurchases demonstrated by our repurchase of approximately 5% of our diluted outstanding shares in the first nine months of this fiscal year."
Financial Results for Third Quarter Fiscal Year 2013
For the third quarter of fiscal year 2013, revenues increased 5% to $577 million, compared to $547 million for the comparable period last year. The increase was driven by a positive contribution from recurring fee revenues of approximately $16 million including net new business (defined as closed sales less client losses) and higher distribution revenues of $13 million. GAAP pre-tax margins from continuing operations of 11.7% increased compared to 5.3% for the same period last year primarily due to the impact of the $21 million impairment charge on the Penson Worldwide, Inc. ("Penson") note receivable (the "Penson Note Receivable impairment charge") and $6 million of IBM Migration costs in the prior year. Non-GAAP pre-tax margins from continuing operations were 13.4% compared to 11.7% for the same period last year.
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