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 nature, and which may be identified by the use of words like "expects," "assumes," "projects," "anticipates," "estimates," "we believe," "could be" and other words of similar meaning, are forward-looking statements. In particular, information appearing in the "Fiscal Year 2013 Financial Guidance" section are forward-looking statements. These statements are based on management's expectations and assumptions and are subject to risks and uncertainties that may cause actual results to differ materially from those expressed. These risks and uncertainties include those risk factors discussed in Part I, "Item 1A. Risk Factors" of our Annual Report on Form 10-K for the fiscal year ended June 30, 2012 (the "2012 Annual Report"), as they may be updated in any future reports filed with the Securities and Exchange Commission. All forward-looking statements speak only as of the date of this press release and are expressly qualified in their entirety by reference to the factors discussed in the 2012 Annual Report. These risks include: the success of Broadridge in retaining and selling additional services to its existing clients and in obtaining new clients; Broadridge's reliance on a relatively small number of clients, the continued financial health of those clients, and the continued use by such clients of Broadridge's services with favorable pricing terms; changes in laws and regulations affecting the investor communication services provided by Broadridge; declines in participation and activity in the securities markets; overall market and economic conditions and their impact on the securities markets; any material breach of Broadridge security affecting its clients' customer information; the failure of Broadridge's outsourced data center services provider to provide the anticipated levels of service; any significant slowdown or failure of Broadridge's systems or error in the performance of Broadridge's services; Broadridge's failure to keep pace with changes in technology and demands of its clients; Broadridge's ability to attract and retain key personnel; the impact of new acquisitions and divestitures; and competitive conditions. Broadridge disclaims any obligation to update or revise forward-looking statements that may be made to reflect events or circumstances that arise after the date made or to reflect the occurrence of unanticipated events, other than as required by law.
Broadridge Financial Solutions, Inc. Condensed Consolidated Statements of Earnings (In millions, except per share amounts) (Unaudited) Three Months Six Months Ended December 31, Ended December 31, 2012 2011 2012 2011 --------- --------- --------- ---------Revenues $ 493.2 $ 479.8 $ 989.0 $ 956.2 --------- --------- --------- ---------Cost of revenues 387.6 382.6 777.6 765.4Selling, general and administrative expenses 77.2 73.5 150.1 138.2Impairment charge -- 9.7 -- 9.7Other expenses, net 3.7 3.4 8.0 6.1 --------- --------- --------- --------- Total expenses 468.5 469.2 935.7 919.4 --------- --------- --------- ---------Earnings from continuing operations before income taxes 24.7 10.6 53.3 36.8Provision for income taxes 8.9 3.8 19.2 13.3 --------- --------- --------- ---------Net earnings from continuing operations 15.8 6.8 34.1 23.5Loss from discontinued operations, net of tax benefit -- -- -- -- --------- --------- --------- ---------Net earnings $ 15.8 $ 6.8 $ 34.1 $ 23.5 ========= ========= ========= =========Basic Earnings per share:Basic earnings per share from continuing operations $ 0.13 $ 0.05 $ 0.28 $ 0.19Basic loss per share from discontinued operations -- -- -- -- --------- --------- --------- ---------Basic earnings per share $ 0.13 $ 0.05 $ 0.28 $ 0.19 ========= ========= ========= =========Diluted earnings per share:Diluted earnings per share from continuing operations $ 0.13 $ 0.05 $ 0.27 $ 0.19Diluted loss per share from discontinued operations -- -- -- -- --------- --------- --------- ---------Diluted earnings per share $ 0.13 $ 0.05 $ 0.27 $ 0.19 ========= ========= ========= =========Weighted-average shares outstanding: Basic 122.0 123.7 123.0 123.7 Diluted 125.5 127.2 126.3 126.9Dividends declared per common share $ 0.18 $ 0.16 $ 0.36 $ 0.32 Broadridge Financial Solutions, Inc. Condensed Consolidated Balance Sheets (In millions, except per share amounts) (Unaudited) December 31, June 30, 2012 2012 ------------ ------------AssetsCurrent assets: Cash and cash equivalents $ 259.1 $ 320.5 Accounts receivable, net of allowance for doubtful accounts of $5.1 and $6.5, respectively 305.2 370.7 Other current assets 89.3 86.2 ------------ ------------ Total current assets 653.6 777.4Property, plant and equipment, net 76.5 79.0Goodwill 782.6 780.0Intangible assets, net 126.8 143.3Other non-current assets 216.7 207.9 ------------ ------------ Total assets $ 1,856.2 $ 1,987.6 ============ ============Liabilities and Stockholders' EquityCurrent liabilities: Accounts payable $ 97.7 $ 102.2 Accrued expenses and other current liabilities 198.3 260.6 Deferred revenues 48.4 47.5 ------------ ------------ Total current liabilities 344.4 410.3Long-term debt 524.4 524.4Deferred taxes 56.3 63.2Deferred revenues 41.7 38.3Other non-current liabilities 106.0 100.9 ------------ ------------ Total liabilities 1,072.8 1,137.1 ------------ ------------Commitments and contingenciesStockholders' equity: Preferred stock: Authorized, 25.0 shares; issued and outstanding, none -- -- Common stock, $0.01 par value: Authorized, 650.0 shares; issued, 153.8 shares and 152.9 shares, respectively; outstanding, 121.8 and 124.8 shares, respectively 1.5 1.5 Additional paid-in capital 769.1 739.4 Retained earnings 676.3 686.1 Treasury stock: at cost, 32.0 and 28.1 shares, respectively (672.7) (580.0) Accumulated other comprehensive income 9.2 3.5 ------------ ------------ Total stockholders' equity 783.4 850.5 ------------ ------------ Total liabilities and stockholders' equity $ 1,856.2 $ 1,987.6 ============ ============ Broadridge Financial Solutions, Inc. Segment Results (In millions) (Unaudited) Revenues --------------------------------------- Three Months Six Months Ended December 31, Ended December 31, ------------------- ------------------- 2012 2011 2012 2011 --------- --------- --------- ---------Investor Communication Solutions $ 326.8 $ 316.8 $ 666.3 $ 629.8Securities Processing Solutions 163.8 161.1 317.7 319.5Other -- 0.1 -- 0.1Foreign currency exchange 2.6 1.8 5.0 6.8 --------- --------- --------- --------- Total $ 493.2 $ 479.8 $ 989.0 $ 956.2 ========= ========= ========= ========= Earnings (Loss) from Continuing Operations before Income Taxes ------------------------------------------ Three Months Six Months Ended December 31, Ended December 31, -------------------- -------------------- 2012 2011 2012 2011 --------- --------- --------- ---------Investor Communication Solutions $ 16.5 $ 10.6 $ 43.7 $ 19.0Securities Processing Solutions 20.0 20.2 29.4 48.0Other (15.1) (22.7) (27.0) (35.6)Foreign currency exchange 3.3 2.5 7.2 5.4 --------- --------- --------- --------- Total $ 24.7 $ 10.6 $ 53.3 $ 36.8 ========= ========= ========= ========= Broadridge Financial Solutions, Inc. Reconciliation of Non-GAAP to GAAP Measures (In millions, except per share amounts) Earnings from Continuing Operations before Income Taxes ------------------------------------------ Three Months Six Months Ended December 31, Ended December 31, -------------------- -------------------- 2012 2011 2012 2011 --------- --------- --------- ---------Adjusted Earnings from Continuing Operations before Income Taxes (Non-GAAP) $ 34.1 $ 30.4 $ 68.9 $ 66.1Acquisition Amortization and Other Costs (5.8) (6.4) (11.3) (12.7)Restructuring and Impairment Charges (3.6) (9.7) (4.3) (9.7)IBM Migration Costs -- (3.7) -- (6.9) --------- --------- --------- ---------Earnings from Continuing Operations before Income Taxes (GAAP) $ 24.7 $ 10.6 $ 53.3 $ 36.8 ========= ========= ========= =========Pre-tax Margins (Non-GAAP) 6.9% 6.3% 7.0% 6.9%Pre-tax Margins (GAAP) 5.0% 2.2% 5.4% 3.8% Net Earnings from Continuing Operations ------------------------------------------ Three Months Six Months Ended December 31, Ended December 31, -------------------- -------------------- 2012 2011 2012 2011 --------- --------- --------- ---------Adjusted Net Earnings from Continuing Operations (Non- GAAP) $ 21.8 $ 19.4 $ 44.1 $ 42.2Acquisition Amortization and Other Costs, net of taxes (3.7) (4.0) (7.2) (8.1)Restructuring and Impairment Charges, net of taxes (2.3) (6.2) (2.8) (6.2)IBM Migration Costs, net of taxes -- (2.4) -- (4.4) --------- --------- --------- ---------Net Earnings from Continuing Operations (GAAP) $ 15.8 $ 6.8 $ 34.1 $ 23.5 ========= ========= ========= ========= Diluted Earnings Per Share from Continuing Operations ------------------------------------------ Three Months Six Months Ended June 30, Ended December 31, -------------------- -------------------- 2012 2011 2012 2011 --------- --------- --------- ---------Adjusted Diluted Earnings Per Share from Continuing Operations (Non-GAAP) $ 0.17 $ 0.15 $ 0.35 $ 0.33Acquisition Amortization and Other Costs, net of taxes (0.03) (0.03) (0.06) (0.06)Restructuring and Impairment Charges, net of taxes (0.01) (0.05) (0.02) (0.05)IBM Migration Costs, net of taxes -- (0.02) -- (0.03) --------- --------- --------- ---------Diluted Earnings Per Share from Continuing Operations (GAAP) $ 0.13 $ 0.05 $ 0.27 $ 0.19 ========= ========= ========= ========= Broadridge Financial Solutions, Inc. Reconciliation of Non-GAAP to GAAP Measures EBIT from Continuing Operations Reconciliation (In millions) Q2 YTD FY13 FY13 Guidance Range Actual Low High --------- --------- ---------EBIT (Non-GAAP) $ 65 $ 353 $ 377 ========= ========= ========= EBIT Margins (Non-GAAP) 6.6% 14.9% 15.7% ========= ========= ========= Acquisition Amortization and Other Costs 11 22 22 Interest and Other (7) (17) (21) --------- --------- ---------Total EBT (Non-GAAP) 69 358 378 ========= ========= ========= EBT Margins (Non-GAAP) 7.0% 15.1% 15.7% Acquisition Amortization and Other Costs (11) (22) (22) Restructuring Charges (4) (10) (10) --------- --------- ---------Total EBT (GAAP) 53 326 346 ========= ========= ========= EBT Margins (GAAP) 5.4% 13.8% 14.4%
