HispanicBusiness

For the third quarter of fiscal year 2013, GAAP net earnings from continuing operations of $43 million increased 140%, compared to $18 million for the same period last year, primarily due to the impact of the aforementioned Penson Note Receivable impairment charge and IBM Migration costs in the prior year. Non-GAAP net earnings from continuing operations were $50 million, an increase of 22% compared to $41 million for the same period last year. GAAP diluted earnings per share from continuing operations increased to $0.35 per share, compared to $0.14 per share in the third quarter of fiscal year 2012. Non-GAAP diluted earnings per share from continuing operations were $0.39 compared to $0.32 in the third quarter of fiscal year 2012. The Penson Note Receivable impairment charge, IBM Migration costs, and Acquisition Amortization and Other Costs decreased GAAP diluted earnings per share by $0.11, $0.03, and $0.04, respectively, in the prior year.

For the third quarter of fiscal year 2013, the Company repurchased 2 million shares of Broadridge common stock under its stock repurchase plan at an average price of approximately $22.73 per share.

Analysis of Third Quarter Fiscal Year 2013

Investor Communication Solutions

Revenues for the Investor Communication Solutions segment increased $30 million, or 8%, to $404 million in the third quarter of fiscal year 2013 compared to the third quarter of fiscal year 2012. Higher recurring fee revenues contributed $16 million and higher distribution revenues contributed $13 million. The positive contribution from recurring fee revenues was driven primarily by net new business. Operating margin increased by 2.7 percentage points to 12.6% as a result of higher recurring revenues and strategic initiatives.

Securities Processing Solutions

Revenues for the Securities Processing Solutions segment increased to $170 million in the third quarter of fiscal year 2013 compared to $169 million in the third quarter of fiscal year 2012. The increase was driven by net new business offset by lower trade volumes and the decline in revenues resulting from the outsourcing services contract with Apex Clearing Corporation ("Apex") replacing the terminated outsourcing services contract with Penson. Operating margin increased, as expected, by 2.3 percentage points to 16.9% as a result of revenue mix.

Other

Pre-tax loss from continuing operations decreased by $21 million in the third quarter of fiscal year 2013, due to the Penson Note Receivable impairment charge of $21 million in the same period last year.

Financial Results for Year-to-Date Fiscal Year 2013

For the nine months ended March 31, 2013, revenues increased $63 million, or 4%, to $1,566 million, compared to $1,503 million for the comparable period last year. The increase was driven by a positive contribution from recurring fee revenues of approximately $34 million including net new business, acquisitions, higher distribution revenues of $25 million and higher event-driven fee revenues of $6 million. GAAP pre-tax margins from continuing operations of 7.7% improved compared to 4.4% for the same period last year as a result of a $24 million decline in Restructuring and Impairment Charges and a $13 million decline in IBM Migration costs as compared to the same period last year. Non-GAAP pre-tax margins from continuing operations were 9.3% compared to 8.6% in the same period last year.