-- Ridge restricts the amount of credit extended to both individual and
professional investors to amounts much lower than permitted by Federal
regulations, and requires all loans to be fully collateralized by high
quality, readily marketable securities. Ridge does not accept as
collateral any exotic or illiquid mortgage-backed derivative instruments.
-- Ridge does not use any of its capital to maintain an inventory of
securities to be offered for sale to its clients. None of its capital is
exposed to market fluctuations in proprietary trading accounts.
-- From the time of its acquisition in 2004, Ridge has experienced no
losses due to errors or credit policies, and it has a customer retention
rate of over 90%.
Clearing and Outsourcing Strategy:
Broadridge created the clearing outsourcing model and estimates the market
opportunity to be over $500 million. By combining the world class
transaction processing capabilities of its Securities Processing Solutions
segment with the specialized clearing expertise provided by Ridge,
Broadridge created a unique service offering for broker-dealers with the
size and financial means to finance their own businesses, but at the same
time outsource to Broadridge their systems and back-office operations
processing.
Broadridge is the pioneer and leader in the clearing outsourcing business.
Since introducing the outsourcing solution, it has signed six clients
representing $20 million in annual revenue and believes the clearing
outsourcing solution is a global opportunity. Ridge operates to facilitate
Broadridge's outsourcing strategy, the goal of which is to grow all of
Broadridge's processing businesses.
About Broadridge
Broadridge Financial Solutions, Inc., with over $2.0 billion in revenues
and more than 40 years of experience, is a leading global provider of
technology-based outsourcing solutions to the financial services industry.
Our systems and services include investor communication, securities
processing, and clearing and outsourcing solutions. We offer advanced,
integrated systems and services that are dependable, scalable and
cost-efficient. Our systems help reduce the need for clients to make
significant capital investments in operations infrastructure, thereby
allowing them to increase their focus on core business activities. For more
information about Broadridge, please visit www.broadridge.com.
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, such as our
fiscal 2008 financial guidance, 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. 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, 2007 (the "2007 Annual Report"). Any forward-looking
statements are qualified in their entirety by reference to the factors
discussed in the 2007 Annual Report. These risks include: Broadridge's
success in retaining and selling additional services to its existing
clients and obtaining new clients; the pricing of Broadridge's products and
services; changes in laws affecting the investor communication services
provided by Broadridge; changes in laws regulating registered clearing
agencies and broker-dealers; declines in trading volume, market prices,
liquidity of securities markets or proprietary trading activity;
Broadridge's ability to continue to obtain data center services from its
former parent company, Automatic Data Processing, Inc. ("ADP");
Broadridge's debt levels and financing costs, including the impact of its
credit ratings on such costs; the ability of Broadridge to develop brand
recognition and its reputation with its clients and employees following its
separation from ADP in March 2007; the incurrence of additional costs
attributable to Broadridge's operations as a stand-alone public company;
Broadridge's ability to continue to obtain transitional services from ADP
for up to one year from the date of Broadridge's March 2007 spin-off from
ADP; changes in technology; availability of skilled technical employees;
the impact of new acquisitions and divestitures; competitive conditions;
and overall market and economic conditions.
Broadridge disclaims any obligation to update any forward-looking
statements, whether as a result of new information, future events or
otherwise.
Contact Information: Contact Information Investors: Marvin Sims Broadridge Financial Solutions, Inc. Vice President, Investor Relations (516) 472-5477