Broadridge Financial Solutions, Inc.
Consolidated Statements of Earnings
(In millions, except per share amounts)
(Unaudited)
Three Months Fiscal Year
Ended June 30, Ended June 30,
-------------------- --------------------
2010 2009 2010 2009
--------- --------- --------- ---------
Revenues $ 750.5 $ 716.3 $ 2,209.2 $ 2,073.0
--------- --------- --------- ---------
Cost of revenues 497.3 476.4 1,616.4 1,510.1
Selling, general and
administrative expenses 69.8 48.5 241.6 212.9
Other expenses, net 0.7 7.7 9.1 4.0
--------- --------- --------- ---------
Total expenses 567.8 532.6 1,867.1 1,727.0
--------- --------- --------- ---------
Earnings from continuing
operations before income taxes 182.7 183.7 342.1 346.0
Provision for income taxes 66.5 67.9 117.0 122.9
--------- --------- --------- ---------
Net earnings from continuing
operations 116.2 115.8 225.1 223.1
Earnings (loss) from
discontinued operations,
net of tax benefit (expense) (11.1) 1.1 (35.1) 0.2
--------- --------- --------- ---------
Net earnings $ 105.1 $ 116.9 $ 190.0 $ 223.3
========= ========= ========= =========
Basic earnings per share:
Basic earnings per share from
continuing operations $ 0.86 $ 0.83 $ 1.66 $ 1.60
Basic earnings (loss) per share
from discontinued operations (0.08) 0.01 (0.26) --
--------- --------- --------- ---------
Basic earnings per share $ 0.78 $ 0.84 $ 1.40 $ 1.60
========= ========= ========= =========
Diluted earnings per share:
Diluted earnings per share
from continuing operations $ 0.84 $ 0.82 $ 1.62 $ 1.58
Diluted earnings (loss) per
share from discontinued
operations (0.08) 0.01 (0.25) --
--------- --------- --------- ---------
Diluted earnings per share $ 0.76 $ 0.83 $ 1.37 $ 1.58
========= ========= ========= =========
Weighted-average shares
outstanding:
Basic 134.8 139.9 135.9 140.0
Diluted 137.6 141.5 139.1 141.6
Dividends declared per common
share $ 0.14 $ 0.07 $ 0.56 $ 0.28
Broadridge Financial Solutions, Inc.
Consolidated Balance Sheets
(In millions, except per share amounts)
(Audited)
June 30, June 30,
2010 2009
--------- ---------
Assets
Current assets:
Cash and cash equivalents $ 412.6 $ 173.4
Accounts receivable, net of allowance for doubtful
accounts of $2.0 and $2.3, respectively 354.3 381.0
Other current assets 101.7 83.2
Assets of discontinued operations 123.8 1,414.2
--------- ---------
Total current assets 992.4 2,051.8
Property, plant and equipment, net 87.4 75.4
Other non-current assets 159.0 136.3
Goodwill 509.5 481.8
Intangible assets, net 46.1 29.4
--------- ---------
Total assets $ 1,794.4 $ 2,774.7
========= =========
Liabilities and Stockholders' Equity
Current liabilities:
Accounts payable $ 91.3 $ 72.0
Accrued expenses and other current liabilities 261.2 216.7
Deferred revenues 34.8 34.6
Liabilities of discontinued operations 99.1 1,106.6
--------- ---------
Total current liabilities 486.4 1,429.9
Long-term debt 324.1 324.1
Deferred taxes 56.2 23.2
Other non-current liabilities 72.8 37.6
Deferred revenues 47.8 50.9
--------- ---------
Total liabilities 987.3 1,865.7
--------- ---------
Commitments and contingencies
Stockholders' equity:
Preferred stock: Authorized, 25.0 shares; issued
and outstanding, none -- --
Common stock, $0.01 par value: Authorized, 650.0
shares; issued, 145.9 shares and 141.8 shares at
June 30, 2010 and 2009, respectively; outstanding,
129.2 and 139.3 shares at June 30, 2010 and 2009,
respectively 1.5 1.4
Additional paid-in capital 587.8 505.9
Retained earnings 546.9 432.3
Treasury stock -- at cost, 16.7 and 2.5 shares,
respectively (327.7) (37.5)
Accumulated other comprehensive income (loss) (1.4) 6.9
--------- ---------
Total stockholders' equity 807.1 909.0
--------- ---------
Total liabilities and stockholders' equity $ 1,794.4 $ 2,774.7
========= =========
Broadridge Financial Solutions, Inc.
Segment Results
(In millions)
(Unaudited)
Revenues
------------------------------------------
Three Months Fiscal Year
Ended June 30, Ended June 30,
-------------------- --------------------
2010 2009 2010 2009
--------- --------- --------- ---------
Investor Communication
Solutions $ 609.9 $ 587.0 $ 1,669.6 $ 1,531.0
Securities Processing Solutions 138.4 136.7 535.9 558.9
Other 0.1 0.2 2.4 1.5
Foreign currency exchange 2.1 (7.6) 1.3 (18.4)
--------- --------- --------- ---------
Total $ 750.5 $ 716.3 $ 2,209.2 $ 2,073.0
========= ========= ========= =========
Earnings (Loss) from Continuing
Operations before Income Taxes
------------------------------------------
Three Months Fiscal Year
Ended June 30, Ended June 30,
-------------------- --------------------
2010 2009 2010 2009
--------- --------- --------- ---------
Investor Communication
Solutions $ 170.5 $ 172.5 $ 272.8 $ 248.9
Securities Processing Solutions 25.8 28.4 99.3 133.8
Other (15.7) (15.0) (34.1) (32.5)
Foreign currency exchange 2.1 (2.2) 4.1 (4.2)
--------- --------- --------- ---------
Total $ 182.7 $ 183.7 $ 342.1 $ 346.0
========= ========= ========= =========
Broadridge Financial Solutions, Inc.
Reconciliation of Non-GAAP to GAAP Measures
Diluted Earnings Per Share from Continuing Operations
Unaudited
Earnings Per Share From Continuing Operations FY10 FY09
Non-GAAP to GAAP Reconciliation Actual Actual
--------- ---------
Diluted EPS From Continuing Operations (Non-GAAP) $ 1.56 $ 1.51
One-time recognition of a deferred tax asset 0.06 -
One-times: Bond gain and State tax credit - 0.07
--------- ---------
Diluted EPS From Continuing Operations (GAAP) $ 1.62 $ 1.58
========= =========
Broadridge Financial Solutions, Inc.
Reconciliation of Non-GAAP to GAAP Measures
Free Cash Flow Guidance
(In millions)
(Unaudited)
FY11 Range
--------------------
Low High
--------- ---------
Earnings (GAAP) $ 201 $ 212
Depreciation and amortization 65 75
Stock-based compensation expense 30 30
Other (5) 5
--------- ---------
Subtotal 291 322
Working capital changes (30) (25)
Long-term assets & liabilities changes (30) (20)
--------- ---------
Net cash flow provided by operating activities 231 277
Cash Flows From Investing Activities
IBM/ITO data center investment (20) (15)
Capital expenditures & intangibles (45) (40)
--------- ---------
Free cash flow (Non-GAAP) $ 166 $ 222
========= =========
Contact Information: Contact Information Investors: Rick Rodick Broadridge Financial Solutions, Inc. Vice President, Investor Relations (516) 472-5474