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,
------------------ ------------------
2009 2008 2009 2008
-------- -------- -------- --------
Revenues $ 529.7 $ 437.5 $ 967.9 $ 893.0
-------- -------- -------- --------
Cost of revenues 399.7 328.2 738.2 676.4
Selling, general and administrative
expenses 58.4 62.0 111.8 115.7
Other (income) expenses, net 3.1 (1.4) 6.9 (6.9)
-------- -------- -------- --------
Total expenses 461.2 388.8 856.9 785.2
-------- -------- -------- --------
Earnings from continuing operations
before income taxes 68.5 48.7 111.0 107.8
Provision for income taxes 17.0 18.7 32.9 41.7
-------- -------- -------- --------
Net earnings from continuing
operations 51.5 30.0 78.1 66.1
Loss from discontinued operations,
net of tax benefit (17.9) (0.1) (18.1) (0.6)
-------- -------- -------- --------
Net earnings $ 33.6 $ 29.9 $ 60.0 $ 65.5
======== ======== ======== ========
Earnings per share:
Basic earnings per share from
continuing operations $ 0.38 $ 0.21 $ 0.57 $ 0.47
Basic loss per share from
discontinued operations (0.13) -- (0.13) --
-------- -------- -------- --------
Basic earnings per share $ 0.25 $ 0.21 $ 0.44 $ 0.47
======== ======== ======== ========
Diluted earnings per share from
continuing operations $ 0.37 $ 0.21 $ 0.56 $ 0.47
Diluted loss per share from
discontinued operations (0.13) -- (0.13) (0.01)
-------- -------- -------- --------
Diluted earnings per share $ 0.24 $ 0.21 $ 0.43 $ 0.46
======== ======== ======== ========
Weighted-average shares
outstanding:
Basic 135.7 140.2 136.9 140.3
Diluted 139.5 141.3 140.0 141.7
Dividends declared per common share $ 0.14 $ 0.07 $ 0.28 $ 0.14
Broadridge Financial Solutions, Inc.
Condensed Consolidated Balance Sheets
(In millions, except per share amounts)
(Unaudited)
December 31, June 30,
2009 2009
------------ ------------
Assets
Current assets:
Cash and cash equivalents $ 147.1 $ 173.4
Accounts receivable, net of allowance for
doubtful accounts of $1.3 and $2.3,
respectively 314.6 381.0
Other current assets 87.8 83.2
Assets of discontinued operations 1,430.5 1,414.2
------------ ------------
Total current assets 1,980.0 2,051.8
Property, plant and equipment, net 75.6 75.4
Other non-current assets 126.0 136.3
Goodwill 486.4 481.8
Intangible assets, net 27.7 29.4
------------ ------------
Total assets $ 2,695.7 $ 2,774.7
============ ============
Liabilities and Stockholders' Equity
Current liabilities:
Accounts payable $ 70.2 $ 72.0
Accrued expenses and other current
liabilities 181.8 216.7
Deferred revenues 24.0 34.6
Liabilities of discontinued operations 1,144.4 1,106.6
------------ ------------
Total current liabilities 1,420.4 1,429.9
Long-term debt 324.1 324.1
Other non-current liabilities 54.0 60.8
Deferred revenues 50.5 50.9
------------ ------------
Total liabilities 1,849.0 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, 143.2 shares and
141.8 shares, respectively; outstanding,
134.6 and 139.3 shares, respectively 1.4 1.4
Additional paid-in capital 546.6 505.9
Retained earnings 454.4 432.3
Treasury stock--at cost, 8.6 and 2.5
shares, respectively (169.4) (37.5)
Accumulated other comprehensive income 13.7 6.9
------------ ------------
Total stockholders' equity 846.7 909.0
------------ ------------
Total liabilities and stockholders'
equity $ 2,695.7 $ 2,774.7
============ ============
Broadridge Financial Solutions, Inc.
Segment Results
(In millions)
(Unaudited)
Revenues
------------------------------------------
Three Months Six Months
Ended December 31, Ended December 31,
-------------------- --------------------
2009 2008 2009 2008
---------- --------- --------- ---------
Investor Communication
Solutions $ 393.3 $ 295.5 $ 703.2 $ 609.3
Securities Processing Solutions 133.8 146.5 263.9 285.9
Other 2.2 0.1 2.2 0.4
Foreign currency exchange 0.4 (4.6) (1.4) (2.6)
---------- --------- --------- ---------
Total $ 529.7 $ 437.5 $ 967.9 $ 893.0
========== ========= ========= =========
Earnings (Loss) from Continuing Operations
Before Income Taxes
------------------------------------------
Three Months Six Months
Ended December 31, Ended December 31,
-------------------- --------------------
2009 2008 2009 2008
---------- --------- --------- ---------
Investor Communication
Solutions $ 50.9 $ 19.8 $ 74.3 $ 43.1
Securities Processing Solutions 23.4 38.1 49.0 73.4
Other (6.8) (8.1) (13.4) (8.9)
Foreign currency exchange 1.0 (1.1) 1.1 0.2
---------- --------- --------- ---------
Total $ 68.5 $ 48.7 $ 111.0 $ 107.8
========= ========= ========= =========
Broadridge Financial Solutions, Inc.
Reconciliation of Non-GAAP to GAAP Measures
Earnings per Share and EBIT From Continuing Operations FY 2010 Guidance
(In millions, except per share amounts)
(Unaudited)
Earnings per Share From Continuing Operations Non-GAAP to
GAAP Reconciliation Low High
-------- --------
Diluted EPS Before One-Time Items (Non-GAAP) $ 1.50 $ 1.60
Foreign Tax Credit - Tax Restructuring 0.06 0.06
-------- --------
Diluted EPS (GAAP) $ 1.56 $ 1.66
======== ========
EBIT From Continuing Operations Non-GAAP to Earnings From
Continuing Operations Before Income Taxes GAAP
Reconciliation Low High
------- -------
EBIT From Continuing Operations (Non-GAAP) $ 341 $ 363
Margin % (Non-GAAP) 15.4% 16.0%
Interest on Borrowings (11) (10)
------- -------
0.5% 0.5%
------- -------
Earnings From Continuing Operations Before Income Taxes
(GAAP) $ 330 $ 353
======= =======
Margin % (GAAP) 14.9% 15.6%
Broadridge Financial Solutions, Inc.
Reconciliation of Non-GAAP to GAAP Measures
Free Cash Flow Guidance
(In millions)
(Unaudited)
FY10 Range
Low High
------- -------
Net earnings from continuing operations (GAAP) $ 216 $ 230
Depreciation and amortization 60 62
Stock-based compensation expense 31 33
Other (5) (5)
------- -------
Subtotal 302 320
Working capital changes (12) (8)
Long-term assets & liabilities changes 3
------- -------
Net cash flow provided by continuing operating activities 290 315
Cash flows from investing activities
Capital expenditures & purchase of intangibles (55) (45)
------- -------
Free cash flow (non-GAAP) $ 235 $ 270
======= =======
Contact Information: Contact Information Investors: Marvin Sims Broadridge Financial Solutions, Inc. Vice President, Investor Relations (516) 472-5477