Delaware
|
|
001-33220
|
|
33-1151291
|
(State or other jurisdiction of incorporation)
|
|
(Commission file number)
|
|
(I.R.S. Employer Identification No.)
|
|
|
|
5 Dakota Drive, Lake Success, New York
|
|
11042
|
||
(Address of principal executive offices)
|
|
Zip Code
|
Title of Each Class
|
Trading Symbol
|
Name of Each Exchange on Which Registered
|
Common Stock, par value $0.01 per share
|
BR
|
New York Stock Exchange
|
|
BROADRIDGE FINANCIAL SOLUTIONS, INC.
By:
/s/ James M. Young
Name: James M. Young
Title: Vice President, Chief Financial Officer
|
Summary Financial Results
|
|
Fourth Quarter
|
|
Fiscal Year
|
|
||||||||
Dollars in millions, except per share data
|
|
2019
|
|
2018
|
|
Change
|
|
2019
|
|
2018
|
|
Change
|
|
|
|
|
|
|
|
|
|
|
|||||
Total revenues
|
|
$1,211
|
$1,320
|
(8
|
)%
|
$4,362
|
$4,330
|
1%
|
|||||
Recurring fee revenues
|
|
813
|
862
|
(6
|
)%
|
2,759
|
2,610
|
6%
|
|||||
|
|
|
|
|
|
|
|
|
|||||
Operating income
|
|
241
|
266
|
(10
|
)%
|
653
|
598
|
9%
|
|||||
|
Operating income margin
|
|
19.9
|
%
|
20.2
|
%
|
|
15.0
|
%
|
13.8
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Adjusted Operating income - Non-GAAP
|
|
267
|
291
|
(8
|
)%
|
746
|
688
|
8%
|
|||||
|
Adjusted Operating income margin - Non-GAAP
|
|
22.1
|
%
|
22.0
|
%
|
|
17.1
|
%
|
15.9
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Diluted EPS
|
|
$1.55
|
$1.72
|
(10
|
)%
|
$4.06
|
$3.56
|
14%
|
|||||
Adjusted EPS - Non-GAAP
|
|
$1.72
|
$1.86
|
(8
|
)%
|
$4.66
|
$4.19
|
11%
|
|||||
|
|
|
|
|
|
|
|
|
|||||
Closed sales
|
|
$72
|
$115
|
(37
|
)%
|
$233
|
$215
|
9%
|
|
|
|
Recurring fee revenue growth
|
|
8-10%
|
Total revenue growth
|
|
3-6%
|
|
|
|
Operating income margin - GAAP
|
|
~15%
|
Adjusted Operating income margin - Non-GAAP
|
|
~18%
|
|
|
|
Diluted earnings per share growth
|
|
5-9%
|
Adjusted earnings per share growth - Non-GAAP
|
|
8-12%
|
|
|
|
Closed sales
|
|
$190-230M
|
|
|
|
Note: Fiscal year 2020 guidance includes $20 million of excess tax benefits related to stock-based compensation.
|
||
|
|
|
•
|
Total revenues for the three months ended June 30, 2019 (“Fourth Quarter 2019”)
decrease
d
8%
to
$1,211 million
from
$1,320 million
in the prior year period (“Fourth Quarter 2018”). Considering the impact of the ASC 606 revenue accounting change, Total revenues would have increased $13 million, or 1%.
|
•
|
Recurring fee revenues for the Fourth Quarter 2019
decrease
d
6%
to
$813 million
from
$862 million
.
|
•
|
Considering the impact of the ASC 606 revenue accounting change, Recurring fee revenues would have increased
$49 million
, or 6%, reflecting (i) organic growth of 5pts and (ii) growth from acquisitions of 1pt.
|
•
|
Event-driven fee revenues decreased
$10 million
, or
16%
, to
$51 million
, mainly from lower mutual fund proxy activity.
|
•
|
Distribution revenues decreased
$45 million
, or
11%
, to
$378 million
, the result of lower transactional print volumes, the decrease in Event-driven fee activity, and the impact of the ASC 606 revenue accounting change.
|
•
|
The strengthening of the U.S. dollar against other currencies negatively impacted revenues by $7 million.
|
•
|
Operating income was
$241 million
, a
decrease
of
$25 million
, or
10%
. Operating income margin decreased to
19.9%
, compared to
20.2%
in Fourth Quarter 2018.
|
•
|
Adjusted Operating income was
$267 million
, a decrease of
$24 million
, or
8%
. Adjusted Operating income margin increased to
22.1%
, compared to
22.0%
for the prior year period.
|
•
|
The decreases in Operating income and Adjusted Operating income are primarily due to the decrease in Recurring fee revenues driven by the ASC 606 revenue accounting change.
|
•
|
Interest expense, net was
$11 million
, an
increase
of
$1 million
, or
14%
, primarily due to an increase in interest expense from higher borrowings.
|
•
|
The effective tax rate for the Fourth Quarter 2019 was
20.3%
compared to
19.8%
in Fourth Quarter 2018. The
increase
in the effective tax rate is primarily attributable to the recognition of a
$10 million
excess tax benefit attributable to stock-based compensation, compared to a
$22 million
excess tax benefit in the comparable prior year period offset partially by a lower corporate income tax rate.
|
•
|
Net earnings
decrease
d
11%
to
$183 million
and Adjusted Net earnings decreased
9%
to
$203 million
.
|
•
|
Diluted earnings per share
decrease
d
10%
to
$1.55
, compared to $1.72 in the Fourth Quarter 2018 and Adjusted earnings per share decreased
8%
to
$1.72
, compared to
$1.86
in Fourth Quarter 2018.
|
•
|
The decreases in Diluted earnings per share and Adjusted earnings per share are primarily due to the decrease in Recurring fee revenues driven by the ASC 606 revenue accounting change.
|
•
|
ICS total revenues for the Fourth Quarter 2019 were
$990 million
, a decrease of
$122 million
, or
11%
. Considering the impact of the ASC 606 revenue accounting change, Total revenues would have increased $1 million.
|
•
|
Recurring fee revenues for the Fourth Quarter 2019 declined
$67 million
or
11%
, to
$561 million
.
|
•
|
Considering the impact of the ASC 606 revenue accounting change, recurring fee revenues would have increased
$30 million
in the Fourth Quarter 2019. The
$30 million
, or
6%
, increase was attributable to: (i) Net New Business from increases in revenues from Closed sales (
3
pts), (ii) higher internal growth (
2
pt), and (iii) revenues from acquisitions (
1
pt).
|
•
|
Event-driven fee revenues decreased
$10 million
, or
16%
, to
$51 million
, mainly from lower mutual fund proxy activity compared to the Fourth Quarter 2018.
|
•
|
Distribution revenues decreased
$45 million
, or
11%
, to
$378 million
as a result of lower transactional print volumes, the decrease in Event-driven fee revenues, and the impact of the ASC 606 revenue accounting change.
|
•
|
ICS earnings before income taxes for the Fourth Quarter 2019 were
$219 million
, a decrease of
$65 million
, or 23%, primarily due to the decrease in recurring fee revenues driven by the ASC 606 revenue accounting change. Pre-tax margins decreased by
3.4
percentage points to
22.1%
from
25.5%
.
|
•
|
GTO recurring fee revenues were
$253 million
, an increase of
$19 million
, or 8%.
|
•
|
The $19 million increase is primarily attributable to: (i) revenues from acquisitions (3pts), (ii) Net New Business from Closed sales (3pts) and (iii) higher internal growth (2pts).
|
•
|
The impact of the ASC 606 revenue accounting change was negligible.
|
•
|
GTO earnings before income taxes for the Fourth Quarter 2019 were
$64 million
, an increase of
$18 million
, or 39%, compared to
$46 million
in the prior year period, primarily due to higher revenues and expense management. Pre-tax margins increased by
5.6
percentage points to
25.4%
from
19.8%
.
|
•
|
Other Loss before income tax decreased 27% in the Fourth Quarter 2019 to
$55 million
from
$74 million
in Fourth Quarter 2018. The decreased loss was primarily due to lower spending on growth initiatives and other corporate expenses, partially offset by an increase in contingent consideration liability due to the performance of acquisitions.
|
•
|
Total revenues for the fiscal year ended June 30, 2019 (“Fiscal Year 2019”) increased
1%
to
$4,362 million
from
$4,330 million
in the prior year period (“Fiscal Year 2018”). Recurring fee revenues for fiscal year 2019 increased
6%
to
$2,759 million
from
$2,610 million
.
|
•
|
The impact of the ASC 606 revenue accounting change on recurring fee revenue was negligible.
|
•
|
Event-driven fee revenues decreased
$39 million
, or
14%
, to
$244 million
, as a result of lower equity proxy contest and mutual fund proxy activity compared to Fiscal Year 2018.
|
•
|
Distribution revenues decreased
$52 million
, or
3%
, to
$1,461 million
from lower transactional print volumes and the decrease in Event-driven fee revenues.
|
•
|
The strengthening of the U.S. dollar against other currencies negatively impacted revenues by
$25 million
.
|
•
|
Operating income was
$653 million
, an
increase
of
$55 million
, or
9%
. Operating income margin increased to
15.0%
, compared to
13.8%
.
|
•
|
Adjusted Operating income was
$746 million
, an increase of
$58 million
, or
8%
, Adjusted Operating income margin increased to
17.1%
, compared to
15.9%
in Fiscal Year 2018.
|
•
|
The increases in Operating income margin and Adjusted Operating income margin are primarily due to the increase in Recurring fee revenues.
|
•
|
Interest expense, net for Fiscal Year 2019 was
$42 million
, an
increase
of
$3 million
, or
8%
, primarily due to higher borrowing costs.
|
•
|
The effective tax rate for Fiscal Year 2019 was
20.6%
compared to
23.7%
. The
decrease
in the effective tax rate is primarily due to the lower U.S. federal corporate income tax rate under the Tax Cuts and Jobs Act (the “Tax Act”) partially offset by the recognition of
$19 million
in excess tax benefits attributable to stock-based compensation as compared to
$41 million
for Fiscal Year 2018.
|
•
|
Net earnings
increase
d
13%
to
$482 million
and Adjusted Net earnings increased
10%
to
$554 million
.
|
•
|
Diluted earnings per share
increase
d
14%
to
$4.06
, compared to
$3.56
in Fiscal Year 2018 and Adjusted earnings per share increased
11%
to
$4.66
, compared to
$4.19
in Fiscal Year 2018.
|
•
|
ICS Total revenues for Fiscal Year 2019 were
$3,511 million
, an increase of
$15 million
, or
0%
. The impact of ASC 606 revenue accounting change was negligible.
|
•
|
ICS Recurring fee revenues rose
$107 million
, or
6%
, to
$1,806 million
.
|
•
|
The increase in Recurring fee revenue was attributable to: (i) Net New Business from increases in revenues from Closed sales (
4
pts), (ii) higher internal growth (
1
pt), and (iii) revenues from acquisitions (
1
pt).
|
•
|
Event-driven fee revenues decreased
$39 million
, or
14%
, to
$244 million
, as a result of lower equity proxy contest and mutual fund proxy activity compared to Fiscal Year 2018.
|
•
|
Distribution revenues decreased
$52 million
, or
3%
, to
$1,461 million
from lower transactional print volumes and the decrease in Event-driven fee revenues.
|
•
|
ICS earnings before income taxes were
$508 million
, an increase of
$14 million
, or 3%, primarily due to the increase in Recurring fee revenues more than offsetting lower Event-driven fee revenues. Pre-tax margins increased by
0.4
percentage points to
14.5%
from
14.1%
.
|
•
|
GTO Recurring fee revenues were
$954 million
, an increase of
$42 million
, or
5%
. The impact of ASC 606 revenue accounting change was negligible.
|
•
|
The $42 million increase in GTO revenues was attributable to: (i) higher Net New Business from Closed sales (
3
pts), (ii) higher internal growth (
1
pt) and (iii) revenues from acquisitions (1pt).
|
•
|
GTO earnings before income taxes were
$210 million
, an increase of
$11 million
, or 6%, primarily due to higher organic revenues, partially offset by the impact of incremental expenditures to win, implement and support new business as well as ongoing new product development. Pre-tax margins increased by
0.2
percentage points to
22.1%
from
21.9%
.
|
•
|
Other Pre-tax loss decreased 14% in Fiscal Year 2019 to
$131 million
. The decreased loss was primarily due to lower spending on growth initiatives and other corporate expenses, partially offset by a decrease in investment gains and higher interest expense compared to Fiscal Year 2018.
|
•
|
Rockall Technologies Limited:
In May 2019, the Company acquired Rockall Technologies Limited, a market leading provider of securities-based lending (“SBL”) and collateral management solutions for wealth management firms and commercial banks. The acquisition expands Broadridge's core front-to-back office wealth capabilities, providing innovative SBL and collateral management technology solutions to help firms manage risk and optimize clients' securities lending and financing needs.
|
•
|
RPM Technologies:
In June 2019, the Company acquired RPM Technologies, a leading Canadian provider of enterprise wealth management software solutions and services. The acquisition brings important new capabilities and next-generation technology to clients of both RPM and Broadridge.
|
•
|
Retirement plan custody and trust assets of TD Ameritrade Trust Company:
In June 2019, the Company acquired the retirement plan custody and trust assets from TD Ameritrade Trust Company, a subsidiary of TD Ameritrade Holding Company. The acquisition expands Broadridge's suite of solutions for the growing qualified and non-qualified retirement plan services market and the support it provides for third-party administrators, financial advisors, record-keepers, banks, and brokers.
|
In millions, except per share amounts
|
|
|
Three Months Ended
June 30, |
|
Fiscal Year Ended
June 30, |
||||||||||||
|
|
|
2019
|
|
2018
|
|
2019
|
|
2018
|
||||||||
Revenues
|
|
|
$
|
1,211.2
|
|
|
$
|
1,320.4
|
|
|
$
|
4,362.2
|
|
|
$
|
4,329.9
|
|
Operating expenses:
|
|
|
|
|
|
|
|
|
|
||||||||
Cost of revenues
|
|
|
811.6
|
|
|
869.5
|
|
|
3,131.9
|
|
|
3,167.4
|
|
||||
Selling, general and administrative expenses
|
|
|
158.8
|
|
|
184.7
|
|
|
577.5
|
|
|
564.5
|
|
||||
Total operating expenses
|
|
|
970.4
|
|
|
1,054.2
|
|
|
3,709.5
|
|
|
3,731.8
|
|
||||
Operating income
|
|
|
240.8
|
|
|
266.2
|
|
|
652.7
|
|
|
598.1
|
|
||||
Interest expense, net
|
|
|
(11.4
|
)
|
|
(10.0
|
)
|
|
(41.8
|
)
|
|
(38.6
|
)
|
||||
Other non-operating income (expenses), net
|
|
|
0.7
|
|
|
1.8
|
|
|
(3.7
|
)
|
|
1.5
|
|
||||
Earnings before income taxes
|
|
|
230.0
|
|
|
258.0
|
|
|
607.3
|
|
|
561.0
|
|
||||
Provision for income taxes
|
|
|
46.8
|
|
|
51.2
|
|
|
125.2
|
|
|
133.1
|
|
||||
Net earnings
|
|
|
$
|
183.2
|
|
|
$
|
206.9
|
|
|
$
|
482.1
|
|
|
$
|
427.9
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Basic earnings per share
|
|
|
$
|
1.59
|
|
|
$
|
1.76
|
|
|
$
|
4.16
|
|
|
$
|
3.66
|
|
Diluted earnings per share
|
|
|
$
|
1.55
|
|
|
$
|
1.72
|
|
|
$
|
4.06
|
|
|
$
|
3.56
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Weighted-average shares outstanding:
|
|
|
|
|
|
|
|
|
|
||||||||
Basic
|
|
|
115.3
|
|
|
117.2
|
|
|
115.9
|
|
|
116.8
|
|
||||
Diluted
|
|
|
117.8
|
|
|
120.4
|
|
|
118.8
|
|
|
120.4
|
|
In millions, except per share amounts
|
|
|
June 30,
2019 |
|
June 30,
2018 |
||||
Assets
|
|
|
|
|
|
||||
Current assets:
|
|
|
|
|
|
||||
Cash and cash equivalents
|
|
|
$
|
273.2
|
|
|
$
|
263.9
|
|
Accounts receivable, net of allowance for doubtful accounts of $2.6 and $2.7, respectively
|
|
|
664.0
|
|
|
615.0
|
|
||
Other current assets
|
|
|
105.2
|
|
|
112.2
|
|
||
Total current assets
|
|
|
1,042.3
|
|
|
991.1
|
|
||
Property, plant and equipment, net
|
|
|
189.0
|
|
|
204.1
|
|
||
Goodwill
|
|
|
1,500.0
|
|
|
1,254.9
|
|
||
Intangible assets, net
|
|
|
556.2
|
|
|
494.1
|
|
||
Other non-current assets
|
|
|
593.1
|
|
|
360.5
|
|
||
Total assets
|
|
|
$
|
3,880.7
|
|
|
$
|
3,304.7
|
|
Liabilities and Stockholders’ Equity
|
|
|
|
|
|
||||
Current liabilities:
|
|
|
|
|
|
||||
Payables and accrued expenses
|
|
|
$
|
711.7
|
|
|
$
|
671.0
|
|
Contract liabilities
|
|
|
90.9
|
|
|
106.3
|
|
||
Total current liabilities
|
|
|
802.6
|
|
|
777.3
|
|
||
Long-term debt
|
|
|
1,470.4
|
|
|
1,053.4
|
|
||
Deferred taxes
|
|
|
86.7
|
|
|
57.9
|
|
||
Contract liabilities
|
|
|
160.7
|
|
|
75.2
|
|
||
Other non-current liabilities
|
|
|
232.8
|
|
|
246.5
|
|
||
Total liabilities
|
|
|
2,753.2
|
|
|
2,210.4
|
|
||
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, 154.5 and 154.5 shares, respectively; outstanding, 114.3 and 116.3 shares, respectively
|
|
|
1.6
|
|
|
1.6
|
|
||
Additional paid-in capital
|
|
|
1,109.3
|
|
|
1,048.5
|
|
||
Retained earnings
|
|
|
2,087.7
|
|
|
1,727.0
|
|
||
Treasury stock, at cost: 40.2 and 38.1 shares, respectively
|
|
|
(1,999.8
|
)
|
|
(1,630.8
|
)
|
||
Accumulated other comprehensive loss
|
|
|
(71.2
|
)
|
|
(51.9
|
)
|
||
Total stockholders’ equity
|
|
|
1,127.5
|
|
|
1,094.3
|
|
||
Total liabilities and stockholders’ equity
|
|
|
$
|
3,880.7
|
|
|
$
|
3,304.7
|
|
Dollars in millions
|
Fiscal Year
|
||||||
|
2019
|
|
2018
|
||||
Cash Flows From Operating Activities
|
|
|
|
||||
Net earnings
|
$
|
482.1
|
|
|
$
|
427.9
|
|
Adjustments to reconcile net earnings to net cash flows provided by operating activities:
|
|
|
|
||||
Depreciation and amortization
|
85.2
|
|
|
82.1
|
|
||
Amortization of acquired intangibles and purchased intellectual property
|
87.4
|
|
|
81.4
|
|
||
Amortization of other assets
|
87.4
|
|
|
48.5
|
|
||
Stock-based compensation expense
|
58.4
|
|
|
55.1
|
|
||
Deferred income taxes
|
(3.5
|
)
|
|
(9.3
|
)
|
||
Other
|
(37.6
|
)
|
|
(21.2
|
)
|
||
Changes in operating assets and liabilities, net of assets and liabilities acquired:
|
|
|
|
||||
Current assets and liabilities:
|
|
|
|
||||
Increase in Accounts receivable, net
|
(34.9
|
)
|
|
(18.6
|
)
|
||
Increase in Other current assets
|
(7.3
|
)
|
|
(7.6
|
)
|
||
(Decrease) Increase in Payables and accrued expenses
|
(10.9
|
)
|
|
9.6
|
|
||
Increase in Contract liabilities
|
15.1
|
|
|
20.8
|
|
||
Non-current assets and liabilities:
|
|
|
|
||||
Increase in Other non-current assets
|
(188.3
|
)
|
|
(83.5
|
)
|
||
Increase in Other non-current liabilities
|
83.8
|
|
|
108.3
|
|
||
Net cash flows provided by operating activities
|
617.0
|
|
|
693.6
|
|
||
Cash Flows From Investing Activities
|
|
|
|
||||
Capital expenditures
|
(50.6
|
)
|
|
(76.7
|
)
|
||
Software purchases and capitalized internal use software
|
(22.0
|
)
|
|
(21.2
|
)
|
||
Acquisitions, net of cash acquired
|
(354.7
|
)
|
|
(108.3
|
)
|
||
Purchase of intellectual property
|
—
|
|
|
(40.0
|
)
|
||
Other investing activities
|
(6.3
|
)
|
|
(3.1
|
)
|
||
Net cash flows used in investing activities
|
(433.5
|
)
|
|
(249.3
|
)
|
||
Cash Flows From Financing Activities
|
|
|
|
||||
Debt proceeds
|
803.1
|
|
|
340.0
|
|
||
Debt repayments
|
(387.4
|
)
|
|
(390.0
|
)
|
||
Dividends paid
|
(211.2
|
)
|
|
(165.8
|
)
|
||
Proceeds from exercise of stock options
|
31.1
|
|
|
52.0
|
|
||
Purchases of Treasury stock
|
(397.8
|
)
|
|
(277.1
|
)
|
||
Other financing activities
|
(10.8
|
)
|
|
(9.0
|
)
|
||
Net cash flows used in financing activities
|
(173.1
|
)
|
|
(449.9
|
)
|
||
Effect of exchange rate changes on Cash and cash equivalents
|
(1.1
|
)
|
|
(1.6
|
)
|
||
Net change in Cash and cash equivalents
|
9.2
|
|
|
(7.2
|
)
|
||
Cash and cash equivalents, beginning of period
|
263.9
|
|
|
271.1
|
|
||
Cash and cash equivalents, end of period
|
$
|
273.2
|
|
|
$
|
263.9
|
|
Dollars in millions
|
Revenues
|
||||||||||||||
|
Three Months Ended
June 30, |
|
Fiscal Year Ended
June 30, |
||||||||||||
|
2019
|
|
2018
|
|
2019
|
|
2018
|
||||||||
|
|
|
|
|
|
||||||||||
Investor Communication Solutions
|
$
|
990.1
|
|
|
$
|
1,111.7
|
|
|
$
|
3,511.1
|
|
|
$
|
3,495.6
|
|
Global Technology and Operations
|
252.6
|
|
|
233.5
|
|
|
953.5
|
|
|
911.6
|
|
||||
Foreign currency exchange
|
(31.5
|
)
|
|
(24.8
|
)
|
|
(102.4
|
)
|
|
(77.3
|
)
|
||||
Total
|
$
|
1,211.2
|
|
|
$
|
1,320.4
|
|
|
$
|
4,362.2
|
|
|
$
|
4,329.9
|
|
|
Earnings (Loss) before Income
Taxes |
||||||||||||||
|
Three Months Ended
June 30, |
|
Fiscal Year Ended
June 30, |
||||||||||||
|
2019
|
|
2018
|
|
2019
|
|
2018
|
||||||||
|
|
|
|
|
|
||||||||||
Investor Communication Solutions
|
$
|
218.6
|
|
|
$
|
283.6
|
|
|
$
|
508.4
|
|
|
$
|
494.6
|
|
Global Technology and Operations
|
64.2
|
|
|
46.3
|
|
|
210.3
|
|
|
199.3
|
|
||||
Other
|
(54.7
|
)
|
|
(74.5
|
)
|
|
(130.9
|
)
|
|
(151.4
|
)
|
||||
Foreign currency exchange
|
1.9
|
|
|
2.5
|
|
|
19.4
|
|
|
18.6
|
|
||||
Total
|
$
|
230.0
|
|
|
$
|
258.0
|
|
|
$
|
607.3
|
|
|
$
|
561.0
|
|
|
|
|
|
|
|
|
|
||||||||
Pre-tax margins:
|
|
|
|
|
|
|
|
||||||||
Investor Communication Solutions
|
22.1
|
%
|
|
25.5
|
%
|
|
14.5
|
%
|
|
14.1
|
%
|
||||
Global Technology and Operations
|
25.4
|
%
|
|
19.8
|
%
|
|
22.1
|
%
|
|
21.9
|
%
|
Dollars in millions
|
Three Months Ended
June 30, |
|
Fiscal Year Ended June 30,
|
||||||||||||||||||
Investor Communication Solutions
|
2019
|
|
2018
|
|
Change
|
|
2019
|
|
2018
|
|
Change
|
||||||||||
Equity Proxy
|
$
|
211.4
|
|
|
$
|
298.1
|
|
|
(29
|
)%
|
|
$
|
437.0
|
|
|
$
|
406.8
|
|
|
7
|
%
|
Mutual fund and exchange-traded funds (“ETF”) interims
|
65.3
|
|
|
58.3
|
|
|
12
|
%
|
|
265.9
|
|
|
221.4
|
|
|
20
|
%
|
||||
Customer communications and fulfillment
|
177.8
|
|
|
180.6
|
|
|
(2
|
)%
|
|
736.4
|
|
|
760.1
|
|
|
(3
|
)%
|
||||
Other ICS
|
106.3
|
|
|
91.1
|
|
|
17
|
%
|
|
366.5
|
|
|
310.6
|
|
|
18
|
%
|
||||
Total ICS Recurring fee revenues
|
560.7
|
|
|
628.0
|
|
|
(11
|
)%
|
|
1,805.8
|
|
|
1,698.9
|
|
|
6
|
%
|
||||
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Equity and other
|
28.3
|
|
|
34.9
|
|
|
(19
|
)%
|
|
107.3
|
|
|
134.4
|
|
|
(20
|
)%
|
||||
Mutual funds
|
22.7
|
|
|
25.8
|
|
|
(12
|
)%
|
|
137.2
|
|
|
149.4
|
|
|
(8
|
)%
|
||||
Total ICS Event-driven fee revenues
|
51.0
|
|
|
60.7
|
|
|
(16
|
)%
|
|
244.5
|
|
|
283.9
|
|
|
(14
|
)%
|
||||
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Distribution revenues
|
378.4
|
|
|
422.9
|
|
|
(11
|
)%
|
|
1,460.8
|
|
|
1,512.9
|
|
|
(3
|
)%
|
||||
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Total ICS Revenues
|
$
|
990.1
|
|
|
$
|
1,111.7
|
|
|
(11
|
)%
|
|
$
|
3,511.1
|
|
|
$
|
3,495.6
|
|
|
—
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Global Technology and Operations
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Equities and Other
|
$
|
209.2
|
|
|
$
|
193.0
|
|
|
8
|
%
|
|
$
|
788.9
|
|
|
$
|
757.2
|
|
|
4
|
%
|
Fixed income
|
43.4
|
|
|
40.5
|
|
|
7
|
%
|
|
164.6
|
|
|
154.3
|
|
|
7
|
%
|
||||
Total GTO Recurring fee revenues
|
252.6
|
|
|
233.5
|
|
|
8
|
%
|
|
953.5
|
|
|
911.6
|
|
|
5
|
%
|
||||
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Foreign currency exchange
|
(31.5
|
)
|
|
(24.8
|
)
|
|
27
|
%
|
|
(102.4
|
)
|
|
(77.3
|
)
|
|
32
|
%
|
||||
Total Revenues
|
$
|
1,211.2
|
|
|
$
|
1,320.4
|
|
|
(8
|
)%
|
|
$
|
4,362.2
|
|
|
$
|
4,329.9
|
|
|
1
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Revenues by Type
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Recurring fee revenues
|
$
|
813.3
|
|
|
$
|
861.5
|
|
|
(6
|
)%
|
|
$
|
2,759.3
|
|
|
$
|
2,610.4
|
|
|
6
|
%
|
Event-driven fee revenues
|
51.0
|
|
|
60.7
|
|
|
(16
|
)%
|
|
244.5
|
|
|
283.9
|
|
|
(14
|
)%
|
||||
Distribution revenues
|
378.4
|
|
|
422.9
|
|
|
(11
|
)%
|
|
1,460.8
|
|
|
1,512.9
|
|
|
(3
|
)%
|
||||
Foreign currency exchange
|
(31.5
|
)
|
|
(24.8
|
)
|
|
27
|
%
|
|
(102.4
|
)
|
|
(77.3
|
)
|
|
32
|
%
|
||||
Total Revenues
|
$
|
1,211.2
|
|
|
$
|
1,320.4
|
|
|
(8
|
)%
|
|
$
|
4,362.2
|
|
|
$
|
4,329.9
|
|
|
1
|
%
|
|
Three Months Ended
June 30,
|
|
|
|
Fiscal Year Ended
June 30,
|
|
|
|||||
Dollars in millions
|
2019
|
|
2018
|
|
% Change
|
|
2019
|
|
2018
|
|
% Change
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Closed Sales
|
$72.1
|
|
$115.1
|
|
(37)%
|
|
$233.3
|
|
$214.9
|
|
9%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Record Growth
1
|
|
|
|
|
|
|
|
|
|
|
|
|
Equity proxy
|
6%
|
|
11%
|
|
|
|
6%
|
|
11%
|
|
|
|
Mutual fund interims
|
5%
|
|
13%
|
|
|
|
9%
|
|
10%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Internal Trade Growth
2
|
|
|
|
|
|
|
|
|
|
|
|
|
Equity
|
—%
|
|
17%
|
|
|
|
6%
|
|
15%
|
|
|
|
Fixed Income
|
9%
|
|
10%
|
|
|
|
5%
|
|
6%
|
|
|
|
Amounts may not sum due to rounding.
|
|
|
|
|
|
|
|
|
|
|
||
(1) Stock record growth and interim record growth measure the annual change in total positions eligible for equity proxy and mutual fund and ETF interim communications, respectively, for equity and mutual fund position data reported to Broadridge in both the current and prior year periods.
|
||||||||||||
(2)
Internal trade growth represents the growth in trade volumes for Broadridge clients whose contracts are linked to trade volumes and who were on Broadridge’s trading platforms in both the current and prior year period.
|
||||||||||||
Dollars in millions, except per share amounts
|
Three Months Ended
June 30, |
|
Fiscal Year Ended
June 30, |
||||||||||||
|
2019
|
|
2018
|
|
2019
|
|
2018
|
||||||||
|
(in millions)
|
||||||||||||||
Operating income (GAAP)
|
$
|
240.8
|
|
|
$
|
266.2
|
|
|
$
|
652.7
|
|
|
$
|
598.1
|
|
Adjustments:
|
|
|
|
|
|
|
|
||||||||
Amortization of Acquired Intangibles and Purchased Intellectual Property
|
23.1
|
|
|
22.1
|
|
|
87.4
|
|
|
81.4
|
|
||||
Acquisition and Integration Costs
|
3.2
|
|
|
2.8
|
|
|
6.4
|
|
|
8.8
|
|
||||
Adjusted Operating income (Non-GAAP)
|
$
|
267.1
|
|
|
$
|
291.0
|
|
|
$
|
746.5
|
|
|
$
|
688.2
|
|
Operating income margin (GAAP)
|
19.9
|
%
|
|
20.2
|
%
|
|
15.0
|
%
|
|
13.8
|
%
|
||||
Adjusted Operating income margin (Non-GAAP)
|
22.1
|
%
|
|
22.0
|
%
|
|
17.1
|
%
|
|
15.9
|
%
|
|
Three Months Ended
June 30, |
|
Fiscal Year Ended
June 30, |
||||||||||||
|
2019
|
|
2018
|
|
2019
|
|
2018
|
||||||||
|
(in millions)
|
||||||||||||||
Net earnings (GAAP)
|
$
|
183.2
|
|
|
$
|
206.9
|
|
|
$
|
482.1
|
|
|
$
|
427.9
|
|
Adjustments:
|
|
|
|
|
|
|
|
||||||||
Amortization of Acquired Intangibles and Purchased Intellectual Property
|
23.1
|
|
|
22.1
|
|
|
87.4
|
|
|
81.4
|
|
||||
Acquisition and Integration Costs
|
3.2
|
|
|
2.8
|
|
|
6.4
|
|
|
8.8
|
|
||||
Gain on Sale of Securities
|
—
|
|
|
—
|
|
|
—
|
|
|
(5.5
|
)
|
||||
Taxable adjustments
|
26.3
|
|
|
24.8
|
|
|
93.8
|
|
|
84.7
|
|
||||
Tax Act items
|
—
|
|
|
(0.7
|
)
|
|
—
|
|
|
15.4
|
|
||||
Tax impact of adjustments (a)
|
(6.7
|
)
|
|
(7.3
|
)
|
|
(22.3
|
)
|
|
(23.9
|
)
|
||||
Adjusted Net earnings (Non-GAAP)
|
$
|
202.9
|
|
|
$
|
223.7
|
|
|
$
|
553.6
|
|
|
$
|
504.1
|
|
|
Three Months Ended
June 30, |
|
Fiscal Year Ended
June 30, |
||||||||||||
|
2019
|
|
2018
|
|
2019
|
|
2018
|
||||||||
Diluted earnings per share (GAAP)
|
$
|
1.55
|
|
|
$
|
1.72
|
|
|
$
|
4.06
|
|
|
$
|
3.56
|
|
Adjustments:
|
|
|
|
|
|
|
|
||||||||
Amortization of Acquired Intangibles and Purchased Intellectual Property
|
0.20
|
|
|
0.18
|
|
|
0.74
|
|
|
0.68
|
|
||||
Acquisition and Integration Costs
|
0.03
|
|
|
0.02
|
|
|
0.05
|
|
|
0.07
|
|
||||
Gain on Sale of Securities
|
—
|
|
|
—
|
|
|
—
|
|
|
(0.05
|
)
|
||||
Taxable adjustments
|
0.22
|
|
|
0.21
|
|
|
0.79
|
|
|
0.70
|
|
||||
Tax Act items
|
—
|
|
|
(0.01
|
)
|
|
—
|
|
|
0.13
|
|
||||
Tax impact of adjustments (a)
|
(0.06
|
)
|
|
(0.06
|
)
|
|
(0.19
|
)
|
|
(0.20
|
)
|
||||
Adjusted earnings per share (Non-GAAP)
|
$
|
1.72
|
|
|
$
|
1.86
|
|
|
$
|
4.66
|
|
|
$
|
4.19
|
|
|
Fiscal Year Ended
June 30, |
||||||
|
2019
|
|
2018
|
||||
|
(in millions)
|
||||||
Net cash flows provided by operating activities (GAAP)
|
$
|
617.0
|
|
|
$
|
693.6
|
|
Capital expenditures and Software purchases and capitalized internal use software
|
(72.6
|
)
|
|
(97.9
|
)
|
||
Free cash flow (Non-GAAP)
|
$
|
544.4
|
|
|
$
|
595.7
|
|
|
|
|
|
Dollars in millions, except per share amounts
|
|
|
|
|
|
FY20 Adjusted Earnings Per Share Growth Rate (a)
|
|
|
Diluted earnings per share (GAAP)
|
|
5% - 9% growth
|
Adjusted earnings per share (Non-GAAP)
|
|
8% - 12% growth
|
|
|
|
FY20 Adjusted Operating Income Margin (b)
|
|
|
Operating income margin % (GAAP)
|
|
~15%
|
Adjusted Operating income margin % (Non-GAAP)
|
|
~18%
|
|
|
|