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Broadridge Financial Solutions, Inc. Condensed Consolidated Statements of Earnings (In millions, except per share amounts) (Unaudited) Three Months Nine Months Ended March 31, Ended March 31, --------------------- --------------------- 2013 2012 2013 2012 ---------- --------- ---------- ---------Revenues $ 576.7 $ 547.0 $ 1,565.7 $ 1,503.2 ---------- --------- ---------- ---------Cost of revenues 426.2 420.8 1,203.8 1,186.2Selling, general and administrative expenses 79.0 70.6 229.1 208.8Impairment charges -- 22.5 -- 32.2Other expenses, net 3.8 4.3 11.8 10.4 ---------- --------- ---------- --------- Total expenses 509.0 518.2 1,444.7 1,437.6 ---------- --------- ---------- ---------Earnings from continuing operations before income taxes 67.7 28.8 121.0 65.6Provision for income taxes 24.3 10.7 43.5 24.0 ---------- --------- ---------- ---------Net earnings from continuing operations 43.4 18.1 77.5 41.6Loss from discontinued operations, net of tax benefit -- (1.4) -- (1.4) ---------- --------- ---------- ---------Net earnings $ 43.4 $ 16.7 $ 77.5 $ 40.2 ========== ========= ========== =========Basic Earnings per share:Basic earnings per share from continuing operations $ 0.36 $ 0.15 $ 0.63 $ 0.34Basic loss per share from discontinued operations -- (0.01) -- (0.01) ---------- --------- ---------- ---------Basic earnings per share $ 0.36 $ 0.14 $ 0.63 $ 0.33 ========== ========= ========== =========Diluted earnings per share:Diluted earnings per share from continuing operations $ 0.35 $ 0.14 $ 0.62 $ 0.33Diluted loss per share from discontinued operations -- (0.01) -- (0.01) ---------- --------- ---------- ---------Diluted earnings per share $ 0.35 $ 0.13 $ 0.62 $ 0.32 ========== ========= ========== =========Weighted-average shares outstanding: Basic 121.2 124.0 122.4 123.8 Diluted 125.0 128.4 125.9 127.4Dividends declared per common share $ 0.18 $ 0.16 $ 0.54 $ 0.48 Broadridge Financial Solutions, Inc. Condensed Consolidated Balance Sheets (In millions, except per share amounts) (Unaudited) March 31, June 30, 2013 2012 --------- ---------AssetsCurrent assets: Cash and cash equivalents $ 182.2 $ 320.5 Accounts receivable, net of allowance for doubtful accounts of $1.9 and $6.5, respectively 412.2 370.7 Other current assets 116.9 86.2 --------- --------- Total current assets 711.3 777.4Property, plant and equipment, net 80.9 79.0Goodwill 777.8 780.0Intangible assets, net 121.9 143.3Other non-current assets 230.0 207.9 --------- --------- Total assets $ 1,921.9 $ 1,987.6 ========= =========Liabilities and Stockholders' EquityCurrent liabilities: Accounts payable $ 130.2 $ 102.2 Accrued expenses and other current liabilities 191.3 260.6 Deferred revenues 127.7 47.5 --------- --------- Total current liabilities 449.2 410.3Long-term debt 524.5 524.4Deferred taxes 53.5 63.2Deferred revenues 42.8 38.3Other non-current liabilities 80.9 100.9 --------- --------- Total liabilities 1,150.9 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, 154.4 shares and 152.9 shares, respectively; outstanding, 120.4 and 124.8 shares, respectively 1.5 1.5 Additional paid-in capital 787.3 739.4 Retained earnings 698.1 686.1 Treasury stock: at cost, 34.0 and 28.1 shares, respectively (718.7) (580.0) Accumulated other comprehensive income 2.8 3.5 --------- --------- Total stockholders' equity 771.0 850.5 --------- --------- Total liabilities and stockholders' equity $ 1,921.9 $ 1,987.6 ========= ========= Broadridge Financial Solutions, Inc. Segment Results (In millions) (Unaudited) Revenues ------------------------------------------- Three Months Nine Months Ended March 31, Ended March 31, 2013 2012 2013 2012 ---------- ---------- ---------- ----------Investor Communication Solutions $ 404.2 $ 374.0 $ 1,070.5 $ 1,003.8Securities Processing Solutions 169.6 169.3 487.3 488.8Other 0.1 0.4 0.1 0.5Foreign currency exchange 2.8 3.3 7.8 10.1 ---------- ---------- ---------- ---------- Total $ 576.7 $ 547.0 $ 1,565.7 $ 1,503.2 ========== ========== ========== ========== Earnings (Loss) from Continuing Operations before Income Taxes ------------------------------------------ Three Months Nine Months Ended March 31, Ended March 31, -------------------- -------------------- 2013 2012 2013 2012 --------- --------- --------- ---------Investor Communication Solutions $ 50.8 $ 36.9 $ 94.5 $ 55.9Securities Processing Solutions 28.7 24.8 58.1 72.8Other (15.9) (36.6) (42.9) (72.2)Foreign currency exchange 4.1 3.7 11.3 9.1 --------- --------- --------- --------- Total $ 67.7 $ 28.8 $ 121.0 $ 65.6 ========= ========= ========= ========= 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 Nine Months Ended March 31, Ended March 31, -------------------- --------------------- 2013 2012 2013 2012 --------- --------- --------- ----------Adjusted Earnings from Continuing Operations before Income Taxes (Non-GAAP) $ 77.2 $ 63.9 $ 146.1 $ 130.0Acquisition Amortization and Other Costs (5.7) (6.9) (17.0) (19.6)Restructuring and Impairment Charges (3.8) (22.5) (8.1) (32.2)IBM Migration Costs -- (5.7) -- (12.6) --------- --------- --------- ---------Earnings from Continuing Operations before Income Tax (GAAP) $ 67.7 $ 28.8 $ 121.0 $ 65.6 ========= ========= ========= ==========Pre-tax Margins (Non-GAAP) 13.4% 11.7% 9.3% 8.6%Pre-tax Margins (GAAP) 11.7% 5.3% 7.7% 4.4% Net Earnings from Continuing Operations ------------------------------------------ Three Months Nine Months Ended March 31, Ended March 31, -------------------- ------------------- 2013 2012 2013 2012 --------- -------- -------- --------Adjusted Net Earnings from Continuing Operations (Non- GAAP) $ 49.5 $ 40.6 $ 93.6 $ 82.8Acquisition Amortization and Other Costs, net of taxes (3.7) (4.4) (10.9) (12.5)Restructuring and Impairment Charges, net of taxes (2.4) (14.4) (5.2) (20.6)IBM Migration Costs, net of taxes -- (3.7) -- (8.1) --------- -------- -------- --------Net Earnings from Continuing Operations (GAAP) $ 43.4 $ 18.1 $ 77.5 $ 41.6 ========= ========= ========= ========= Diluted Earnings Per Share from Continuing Operations ----------------------------------------- Three Months Nine Months Ended March 31, Ended March 31, ------------------- ------------------- 2013 2012 2013 2012 -------- -------- -------- --------Adjusted Diluted Earnings Per Share from Continuing Operations (Non-GAAP) $ 0.39 $ 0.32 $ 0.74 $ 0.65Acquisition Amortization and Other Costs, net of taxes (0.02) (0.04) (0.08) (0.10)Restructuring and Impairment Charges, net of taxes (0.02) (0.11) (0.04) (0.16)IBM Migration Costs, net of taxes -- (0.03) -- (0.06) -------- -------- -------- --------Diluted Earnings Per Share from Continuing Operations (GAAP) $ 0.35 $ 0.14 $ 0.62 $ 0.33 ========= ========= ========= ========= Broadridge Financial Solutions, Inc. Reconciliation of Non-GAAP to GAAP Measures EBIT from Continuing Operations Reconciliation (In millions) Q3 YTD FY13 FY13 Guidance Range Actual Low High ------- ------- -------EBIT (Non-GAAP) $ 140 $ 353 $ 377 Acquisition Amortization and Other Costs 17 22 22 Interest and Other (11) (17) (21) ------- ------- -------Total EBT (Non-GAAP) 146 358 378 Acquisition Amortization and Other Costs (17) (22) (22) Restructuring Charges (8) (10) (10) ------- ------- -------Total EBT (GAAP) $ 121 $ 326 $ 346 ======= ======= ======= EBIT Margins (Non-GAAP) 8.9% 14.9% 15.7% EBT Margins (Non-GAAP) 9.3% 15.1% 15.7% EBT Margins (GAAP) 7.7% 13.8% 14.4%
