☒ | QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
☐
|
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
Delaware | 33-1151291 | ||||
(State or Other Jurisdiction of Incorporation or Organization) | (I.R.S. Employer Identification No.) | ||||
5 Dakota Drive | 11042 | ||||
Lake Success | |||||
New York | |||||
(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 |
Large Accelerated Filer | x | Accelerated filer | ¨ | ||||||||||||||
Non-accelerated filer | ¨ | Smaller reporting company | ☐ | ||||||||||||||
Emerging Growth Company | ☐ |
ITEM | PAGE | |||||||
PART I. | ||||||||
Item 1. | ||||||||
Item 2. | ||||||||
Item 3. | ||||||||
Item 4. | ||||||||
PART II. | ||||||||
Item 1. | ||||||||
Item 1A. | ||||||||
Item 2. | ||||||||
Item 6. |
Three Months Ended
December 31, |
Six Months Ended
December 31, |
||||||||||||||||||||||||||||
2021 | 2020 | 2021 | 2020 | ||||||||||||||||||||||||||
Revenues | (Note 3) | $ | 1,259.6 | $ | 1,054.9 | $ | 2,452.5 | $ | 2,072.3 | ||||||||||||||||||||
Operating expenses: | |||||||||||||||||||||||||||||
Cost of revenues | 978.4 | 806.5 | 1,892.5 | 1,593.5 | |||||||||||||||||||||||||
Selling, general and administrative expenses | 212.3 | 169.0 | 387.8 | 320.7 | |||||||||||||||||||||||||
Total operating expenses | 1,190.7 | 975.5 | 2,280.3 | 1,914.3 | |||||||||||||||||||||||||
Operating income | 68.9 | 79.5 | 172.1 | 158.1 | |||||||||||||||||||||||||
Interest expense, net | (Note 5) | (21.4) | (11.1) | (44.0) | (25.6) | ||||||||||||||||||||||||
Other non-operating income, net | 4.4 | 1.0 | 2.0 | 10.5 | |||||||||||||||||||||||||
Earnings before income taxes | 51.9 | 69.4 | 130.1 | 143.0 | |||||||||||||||||||||||||
Provision for income taxes | (Note 13) | 4.7 | 13.1 | 15.7 | 20.9 | ||||||||||||||||||||||||
Net earnings | $ | 47.2 | $ | 56.3 | $ | 114.4 | $ | 122.1 | |||||||||||||||||||||
Basic earnings per share | $ | 0.40 | $ | 0.49 | $ | 0.98 | $ | 1.06 | |||||||||||||||||||||
Diluted earnings per share | $ | 0.40 | $ | 0.48 | $ | 0.97 | $ | 1.04 | |||||||||||||||||||||
Weighted-average shares outstanding: | |||||||||||||||||||||||||||||
Basic | (Note 4) | 116.6 | 115.7 | 116.4 | 115.5 | ||||||||||||||||||||||||
Diluted | (Note 4) | 118.7 | 117.8 | 118.5 | 117.6 |
Three Months Ended
December 31, |
Six Months Ended
December 31, |
||||||||||||||||||||||
2021 | 2020 | 2021 | 2020 | ||||||||||||||||||||
Net earnings | $ | 47.2 | $ | 56.3 | $ | 114.4 | $ | 122.1 | |||||||||||||||
Other comprehensive income (loss), net: | |||||||||||||||||||||||
Foreign currency translation adjustments | (31.8) | 5.2 | (102.6) | 42.1 | |||||||||||||||||||
Pension and post-retirement liability adjustment, net of taxes of $(0.2) and $(0.2) for the three months ended December 31, 2021 and 2020, respectively; and $(0.3) and $(0.4) for the six months ended December 31, 2021 and 2020, respectively
|
0.5 | 0.6 | 1.0 | 1.2 | |||||||||||||||||||
Cash flow hedge amortization, net of taxes of $(0.1) and $(0.0) for the three months ended December 31, 2021 and 2020, respectively; and $(0.1) and $(0.0) for the six months ended December 31, 2021 and 2020, respectively
|
0.2 | — | 0.4 | — | |||||||||||||||||||
Total other comprehensive income (loss), net | (31.0) | 5.7 | (101.1) | 43.3 | |||||||||||||||||||
Comprehensive income | $ | 16.2 | $ | 62.0 | $ | 13.3 | $ | 165.4 |
December 31, 2021 | June 30, 2021 | ||||||||||||||||
Assets | |||||||||||||||||
Current assets: | |||||||||||||||||
Cash and cash equivalents | $ | 281.2 | $ | 274.5 | |||||||||||||
Accounts receivable, net of allowance for doubtful accounts of $5.8 and $9.3, respectively
|
779.5 | 820.3 | |||||||||||||||
Other current assets | 205.9 | 166.4 | |||||||||||||||
Total current assets | 1,266.6 | 1,261.3 | |||||||||||||||
Property, plant and equipment, net | 169.7 | 177.2 | |||||||||||||||
Goodwill | 3,663.8 | 3,720.1 | |||||||||||||||
Intangible assets, net | 1,253.0 | 1,425.0 | |||||||||||||||
Deferred client conversion and start-up costs | 994.9 | 773.7 | |||||||||||||||
Other non-current assets | (Note 8) | 768.1 | 762.5 | ||||||||||||||
Total assets | $ | 8,115.9 | $ | 8,119.8 | |||||||||||||
Liabilities and Stockholders’ Equity | |||||||||||||||||
Current liabilities: | |||||||||||||||||
Payables and accrued expenses | (Note 9) | $ | 878.6 | $ | 1,102.7 | ||||||||||||
Contract liabilities | 209.2 | 185.3 | |||||||||||||||
Total current liabilities | 1,087.8 | 1,288.0 | |||||||||||||||
Long-term debt | (Note 10) | 4,156.6 | 3,887.6 | ||||||||||||||
Deferred taxes | 399.2 | 400.7 | |||||||||||||||
Contract liabilities | 200.1 | 197.2 | |||||||||||||||
Other non-current liabilities | (Note 11) | 524.2 | 537.2 | ||||||||||||||
Total liabilities | 6,367.9 | 6,310.6 | |||||||||||||||
Commitments and contingencies | (Note 14) | ||||||||||||||||
Stockholders’ equity: | |||||||||||||||||
Preferred stock: Authorized, 25.0 shares; issued and outstanding, none
|
— | — | |||||||||||||||
Common stock, $0.01 par value: 650.0 shares authorized; 154.5 and 154.5 shares issued, respectively; and 116.8 and 116.1 shares outstanding, respectively
|
1.6 | 1.6 | |||||||||||||||
Additional paid-in capital | 1,307.7 | 1,245.5 | |||||||||||||||
Retained earnings | 2,549.1 | 2,583.8 | |||||||||||||||
Treasury stock, at cost: 37.7 and 38.3 shares, respectively
|
(2,018.4) | (2,030.9) | |||||||||||||||
Accumulated other comprehensive income (loss) | (Note 15) | (91.9) | 9.2 | ||||||||||||||
Total stockholders’ equity | 1,748.1 | 1,809.1 | |||||||||||||||
Total liabilities and stockholders’ equity | $ | 8,115.9 | $ | 8,119.8 |
Six Months Ended
December 31, |
|||||||||||
2021 | 2020 | ||||||||||
Cash Flows From Operating Activities | |||||||||||
Net earnings | $ | 114.4 | $ | 122.1 | |||||||
Adjustments to reconcile net earnings to net cash flows (used in) provided by operating activities: | |||||||||||
Depreciation and amortization | 41.1 | 31.3 | |||||||||
Amortization of acquired intangibles and purchased intellectual property | 131.2 | 64.9 | |||||||||
Amortization of other assets | 66.3 | 52.9 | |||||||||
Write-down of long-lived assets and related charges | 8.1 | 33.6 | |||||||||
Stock-based compensation expense | 36.2 | 28.7 | |||||||||
Deferred income taxes | 16.4 | 10.9 | |||||||||
Other | (19.3) | (29.0) | |||||||||
Changes in operating assets and liabilities, net of assets and liabilities acquired: | |||||||||||
Current assets and liabilities: | |||||||||||
Decrease in Accounts receivable, net | 49.2 | 100.3 | |||||||||
Increase in Other current assets | (32.5) | (35.7) | |||||||||
Decrease in Payables and accrued expenses | (236.5) | (140.2) | |||||||||
Increase in Contract liabilities | 28.3 | 5.9 | |||||||||
Non-current assets and liabilities: | |||||||||||
Increase in Other non-current assets | (321.5) | (211.2) | |||||||||
Increase in Other non-current liabilities | 24.0 | 48.8 | |||||||||
Net cash flows (used in) provided by operating activities | (94.6) | 83.3 | |||||||||
Cash Flows From Investing Activities | |||||||||||
Capital expenditures | (11.3) | (30.1) | |||||||||
Software purchases and capitalized internal use software | (17.9) | (20.7) | |||||||||
Proceeds from asset sales | — | 18.0 | |||||||||
Acquisitions, net of cash acquired | (13.3) | — | |||||||||
Other investing activities | (11.4) | (11.0) | |||||||||
Net cash flows used in investing activities | (53.9) | (43.9) | |||||||||
Cash Flows From Financing Activities | |||||||||||
Debt proceeds | 480.0 | 660.0 | |||||||||
Debt repayments | (211.0) | (687.8) | |||||||||
Dividends paid | (141.2) | (128.5) | |||||||||
Purchases of Treasury stock | (1.7) | (0.8) | |||||||||
Proceeds from exercise of stock options | 40.5 | 27.6 | |||||||||
Other financing activities | (7.5) | (27.2) | |||||||||
Net cash flows provided by (used in) financing activities
|
159.2 | (156.6) | |||||||||
Effect of exchange rate changes on Cash and cash equivalents | (4.1) | 6.2 | |||||||||
Net change in Cash and cash equivalents | 6.6 | (111.0) | |||||||||
Cash and cash equivalents, beginning of period | 274.5 | 476.6 | |||||||||
Cash and cash equivalents, end of period | $ | 281.2 | $ | 365.6 | |||||||
Supplemental disclosure of cash flow information: | |||||||||||
Cash payments made for interest | $ | 41.1 | $ | 31.2 | |||||||
Cash payments made for income taxes, net of refunds | $ | 57.3 | $ | 60.0 | |||||||
Non-cash investing and financing activities: | |||||||||||
Accrual of unpaid property, plant and equipment and software | $ | 16.9 | $ | 13.9 |
Three Months Ended December 31, 2021 | ||||||||||||||||||||||||||||||||||||||||||||
Common Stock
|
Additional
Paid-In Capital |
Retained
Earnings |
Treasury
Stock |
Accumulated
Other Comprehensive Income (Loss) |
Total
Stockholders’ Equity |
|||||||||||||||||||||||||||||||||||||||
Shares | Amount | |||||||||||||||||||||||||||||||||||||||||||
Balances, September 30, 2021 | 154.5 | $ | 1.6 | $ | 1,263.6 | $ | 2,576.6 | $ | (2,027.0) | $ | (60.9) | $ | 1,753.8 | |||||||||||||||||||||||||||||||
Comprehensive income (loss) | — | — | — | 47.2 | — | (31.0) | 16.2 | |||||||||||||||||||||||||||||||||||||
Stock option exercises | — | — | 31.9 | — | — | — | 31.9 | |||||||||||||||||||||||||||||||||||||
Stock-based compensation | — | — | 22.5 | — | — | — | 22.5 | |||||||||||||||||||||||||||||||||||||
Treasury stock acquired (less than 0.1 shares)
|
— | — | — | — | (1.7) | — | (1.7) | |||||||||||||||||||||||||||||||||||||
Treasury stock reissued (0.4 shares)
|
— | — | (10.3) | — | 10.3 | — | — | |||||||||||||||||||||||||||||||||||||
Common stock dividends ($0.64 per share)
|
— | — | — | (74.7) | — | — | (74.7) | |||||||||||||||||||||||||||||||||||||
Balances, December 31, 2021 | 154.5 | $ | 1.6 | $ | 1,307.7 | $ | 2,549.1 | $ | (2,018.4) | $ | (91.9) | $ | 1,748.1 |
Six Months Ended December 31, 2021 | ||||||||||||||||||||||||||||||||||||||||||||
Common Stock
|
Additional
Paid-In Capital |
Retained
Earnings |
Treasury
Stock |
Accumulated
Other Comprehensive Income (Loss) |
Total
Stockholders’ Equity |
|||||||||||||||||||||||||||||||||||||||
Shares | Amount | |||||||||||||||||||||||||||||||||||||||||||
Balances, June 30, 2021 | 154.5 | $ | 1.6 | $ | 1,245.5 | $ | 2,583.8 | $ | (2,030.9) | $ | 9.2 | $ | 1,809.1 | |||||||||||||||||||||||||||||||
Comprehensive income (loss) | — | — | — | 114.4 | — | (101.1) | 13.3 | |||||||||||||||||||||||||||||||||||||
Stock option exercises | — | — | 40.6 | — | — | — | 40.6 | |||||||||||||||||||||||||||||||||||||
Stock-based compensation | — | — | 35.8 | — | — | — | 35.8 | |||||||||||||||||||||||||||||||||||||
Treasury stock acquired (less than 0.1 shares)
|
— | — | — | — | (1.7) | — | (1.7) | |||||||||||||||||||||||||||||||||||||
Treasury stock reissued (0.6 shares)
|
— | — | (14.2) | — | 14.2 | — | — | |||||||||||||||||||||||||||||||||||||
Common stock dividends ($1.28 per share)
|
— | — | — | (149.1) | — | — | (149.1) | |||||||||||||||||||||||||||||||||||||
Balances, December 31, 2021 | 154.5 | $ | 1.6 | $ | 1,307.7 | $ | 2,549.1 | $ | (2,018.4) | $ | (91.9) | $ | 1,748.1 |
Three Months Ended December 31, 2020 | ||||||||||||||||||||||||||||||||||||||||||||
Common Stock
|
Additional
Paid-In Capital |
Retained
Earnings |
Treasury
Stock |
Accumulated
Other Comprehensive Income (Loss) |
Total
Stockholders’ Equity |
|||||||||||||||||||||||||||||||||||||||
Shares | Amount | |||||||||||||||||||||||||||||||||||||||||||
Balances, September 30, 2020 | 154.5 | $ | 1.6 | $ | 1,198.5 | $ | 2,302.1 | $ | (2,025.5) | $ | (62.9) | $ | 1,413.8 | |||||||||||||||||||||||||||||||
Comprehensive income (loss) | — | — | — | 56.3 | — | 5.7 | 62.0 | |||||||||||||||||||||||||||||||||||||
Stock option exercises | — | — | 6.5 | — | — | — | 6.5 | |||||||||||||||||||||||||||||||||||||
Stock-based compensation | — | — | 18.2 | — | — | — | 18.2 | |||||||||||||||||||||||||||||||||||||
Treasury stock acquired (0.0 shares)
|
— | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||
Treasury stock reissued (0.2 shares)
|
— | — | (3.6) | — | 3.6 | — | — | |||||||||||||||||||||||||||||||||||||
Common stock dividends ($0.575 per share)
|
— | — | — | (66.5) | — | — | (66.5) | |||||||||||||||||||||||||||||||||||||
Balances, December 31, 2020 | 154.5 | $ | 1.6 | $ | 1,219.6 | $ | 2,291.8 | $ | (2,021.8) | $ | (57.1) | $ | 1,434.0 |
Six Months Ended December 31, 2020 | ||||||||||||||||||||||||||||||||||||||||||||
Common Stock
|
Additional
Paid-In Capital |
Retained
Earnings |
Treasury
Stock |
Accumulated
Other Comprehensive Income (Loss) |
Total
Stockholders’ Equity |
|||||||||||||||||||||||||||||||||||||||
Shares | Amount | |||||||||||||||||||||||||||||||||||||||||||
Balances, June 30, 2020 | 154.5 | $ | 1.6 | $ | 1,178.5 | $ | 2,302.6 | $ | (2,035.7) | $ | (100.4) | $ | 1,346.5 | |||||||||||||||||||||||||||||||
Comprehensive income (loss) | — | — | — | 122.1 | — | 43.3 | 165.4 | |||||||||||||||||||||||||||||||||||||
Stock option exercises | — | — | 27.3 | — | — | — | 27.3 | |||||||||||||||||||||||||||||||||||||
Stock-based compensation | — | — | 28.5 | — | — | — | 28.5 | |||||||||||||||||||||||||||||||||||||
Treasury stock acquired (less than 0.1 shares)
|
— | — | — | — | (0.8) | — | (0.8) | |||||||||||||||||||||||||||||||||||||
Treasury stock reissued (0.6 shares)
|
— | — | (14.6) | — | 14.6 | — | — | |||||||||||||||||||||||||||||||||||||
Common stock dividends ($1.15 per share)
|
— | — | — | (132.9) | — | — | (132.9) | |||||||||||||||||||||||||||||||||||||
Balances, December 31, 2020 | 154.5 | $ | 1.6 | $ | 1,219.6 | $ | 2,291.8 | $ | (2,021.8) | $ | (57.1) | $ | 1,434.0 |
Three Months Ended
December 31, |
Six Months Ended
December 31, |
||||||||||||||||||||||
2021 | 2020 | 2021 | 2020 | ||||||||||||||||||||
(in millions) | |||||||||||||||||||||||
Investor Communication Solutions | |||||||||||||||||||||||
Regulatory | $ | 166.4 | $ | 144.7 | $ | 331.8 | $ | 279.5 | |||||||||||||||
Data-driven fund solutions | 88.8 | 86.1 | 172.1 | 165.1 | |||||||||||||||||||
Issuer | 23.7 | 20.8 | 44.2 | 38.5 | |||||||||||||||||||
Customer communications | 148.2 | 135.8 | 289.1 | 273.4 | |||||||||||||||||||
Total ICS Recurring fee revenues | 427.1 | 387.3 | 837.3 | 756.5 | |||||||||||||||||||
Equity and other | 24.6 | 20.6 | 52.2 | 38.7 | |||||||||||||||||||
Mutual funds | 40.1 | 24.3 | 88.9 | 51.4 | |||||||||||||||||||
Total ICS Event-driven fee revenues | 64.7 | 44.9 | 141.1 | 90.0 | |||||||||||||||||||
Distribution revenues | 401.5 | 343.8 | 768.4 | 675.0 | |||||||||||||||||||
Total ICS Revenues | $ | 893.3 | $ | 776.0 | $ | 1,746.8 | $ | 1,521.5 | |||||||||||||||
Global Technology and Operations | |||||||||||||||||||||||
Capital markets | $ | 224.1 | $ | 158.4 | $ | 433.5 | $ | 314.7 | |||||||||||||||
Wealth and investment management | 146.4 | 126.9 | 277.7 | 251.0 | |||||||||||||||||||
Total GTO Recurring fee revenues | 370.6 | 285.3 | 711.2 | 565.7 | |||||||||||||||||||
Foreign currency exchange | (4.3) | (6.4) | (5.5) | (14.9) | |||||||||||||||||||
Total Revenues | $ | 1,259.6 | $ | 1,054.9 | $ | 2,452.5 | $ | 2,072.3 | |||||||||||||||
Revenues by Type | |||||||||||||||||||||||
Recurring fee revenues | $ | 797.6 | $ | 672.6 | $ | 1,548.5 | $ | 1,322.2 | |||||||||||||||
Event-driven fee revenues | 64.7 | 44.9 | 141.1 | 90.0 | |||||||||||||||||||
Distribution revenues | 401.5 | 343.8 | 768.4 | 675.0 | |||||||||||||||||||
Foreign currency exchange | (4.3) | (6.4) | (5.5) | (14.9) | |||||||||||||||||||
Total Revenues | $ | 1,259.6 | $ | 1,054.9 | $ | 2,452.5 | $ | 2,072.3 |
December 31, 2021 | June 30, 2021 | ||||||||||
(in millions) | |||||||||||
Contract assets | $ | 96.7 | $ | 89.8 | |||||||
Contract liabilities | $ | 409.3 | $ | 382.5 |
Three Months Ended
December 31, |
Six Months Ended
December 31, |
||||||||||||||||||||||
2021 | 2020 | 2021 | 2020 | ||||||||||||||||||||
(in millions) | |||||||||||||||||||||||
Weighted-average shares outstanding: | |||||||||||||||||||||||
Basic | 116.6 | 115.7 | 116.4 | 115.5 | |||||||||||||||||||
Common stock equivalents | 2.0 | 2.1 | 2.1 | 2.1 | |||||||||||||||||||
Diluted | 118.7 | 117.8 | 118.5 | 117.6 |
Three Months Ended
December 31, |
Six Months Ended
December 31, |
||||||||||||||||||||||
2021 | 2020 | 2021 | 2020 | ||||||||||||||||||||
(in millions) | |||||||||||||||||||||||
Interest expense on borrowings | $ | (22.8) | $ | (12.1) | $ | (45.8) | $ | (27.2) | |||||||||||||||
Interest income | 1.5 | 1.0 | 1.8 | 1.6 | |||||||||||||||||||
Interest expense, net | $ | (21.4) | $ | (11.1) | $ | (44.0) | $ | (25.6) |
Itiviti | Advisor-Stream | Total | ||||||||||||||||||
(in millions) | ||||||||||||||||||||
Cash payments, net of cash acquired | $ | 2,580.4 | $ | 23.2 | $ | 2,603.6 | ||||||||||||||
Deferred payments, net | — | 2.9 | 2.9 | |||||||||||||||||
Contingent consideration liability | — | 8.5 | 8.5 | |||||||||||||||||
Aggregate purchase price | $ | 2,580.4 | $ | 34.5 | $ | 2,615.0 | ||||||||||||||
Net tangible assets acquired / (liabilities assumed) | $ | (246.5) | $ | (3.3) | $ | (249.8) | ||||||||||||||
Goodwill | 1,945.7 | 27.3 | 1,973.0 | |||||||||||||||||
Intangible assets | 881.3 | 10.5 | 891.8 | |||||||||||||||||
Aggregate purchase price | $ | 2,580.4 | $ | 34.5 | $ | 2,615.0 |
Itiviti | ||||||||
Accounts receivable | $ | 39.6 | ||||||
Other current assets | 14.1 | |||||||
Property, plant and equipment | 9.4 | |||||||
Intangible assets | 881.3 | |||||||
Goodwill | 1,945.7 | |||||||
Other non-current assets | 28.7 | |||||||
Payables and accrued expenses | (45.9) | |||||||
Current contract liabilities | (58.8) | |||||||
Deferred taxes | (199.6) | |||||||
Other long term liabilities | (34.0) | |||||||
Consideration paid, net of cash acquired | $ | 2,580.4 |
Years ended June 30, | ||||||||||||||
2021 | 2020 | |||||||||||||
(in millions) | ||||||||||||||
Revenues | $ | 5,221.7 | $ | 4,723.4 | ||||||||||
Net earnings | $ | 514.9 | $ | 367.5 | ||||||||||
Basic earnings per share | $ | 4.45 | $ | 3.21 | ||||||||||
Diluted earnings per share | $ | 4.37 | $ | 3.14 |
December 31, 2021 | |||||||||||||||||||||||
Level 1 | Level 2 | Level 3 | Total | ||||||||||||||||||||
(in millions) | |||||||||||||||||||||||
Assets: | |||||||||||||||||||||||
Cash and cash equivalents: | |||||||||||||||||||||||
Money market funds (a) | $ | — | $ | — | $ | — | $ | — | |||||||||||||||
Other current assets: | |||||||||||||||||||||||
Securities | 0.7 | — | — | 0.7 | |||||||||||||||||||
Other non-current assets: | |||||||||||||||||||||||
Securities | 132.9 | — | — | 132.9 | |||||||||||||||||||
Total assets as of December 31, 2021
|
$ | 133.6 | $ | — | $ | — | $ | 133.6 | |||||||||||||||
Liabilities: | |||||||||||||||||||||||
Contingent consideration obligations | — | — | 18.8 | 18.8 | |||||||||||||||||||
Total liabilities as of December 31, 2021
|
$ | — | $ | — | $ | 18.8 | $ | 18.8 |
June 30, 2021 | |||||||||||||||||||||||
Level 1 | Level 2 | Level 3 | Total | ||||||||||||||||||||
(in millions) | |||||||||||||||||||||||
Assets: | |||||||||||||||||||||||
Cash and cash equivalents: | |||||||||||||||||||||||
Money market funds (a) | $ | — | $ | — | $ | — | $ | — | |||||||||||||||
Other current assets: | |||||||||||||||||||||||
Securities | 0.7 | — | — | 0.7 | |||||||||||||||||||
Other non-current assets: | |||||||||||||||||||||||
Securities | 120.6 | — | — | 120.6 | |||||||||||||||||||
Total assets as of June 30, 2021 | $ | 121.2 | $ | — | $ | — | $ | 121.2 | |||||||||||||||
Liabilities: | |||||||||||||||||||||||
Contingent consideration obligations | — | — | 23.2 | 23.2 | |||||||||||||||||||
Total liabilities as of June 30, 2021 | $ | — | $ | — | $ | 23.2 | $ | 23.2 |
Three Months Ended December 31, | Six Months Ended December 31, | ||||||||||||||||||||||
2021 | 2020 | 2021 | 2020 | ||||||||||||||||||||
(in millions) | |||||||||||||||||||||||
Beginning balance | $ | 19.0 | $ | 23.7 | $ | 23.2 | $ | 33.1 | |||||||||||||||
Net increase in contingent consideration liability | — | — | 1.1 | — | |||||||||||||||||||
Foreign currency impact on contingent consideration liability | (0.2) | — | (0.6) | 1.4 | |||||||||||||||||||
Payments | — | (6.0) | (4.9) | (16.7) | |||||||||||||||||||
Ending balance | $ | 18.8 | $ | 17.8 | $ | 18.8 | $ | 17.8 |
December 31, 2021 | June 30, 2021 | ||||||||||
(in millions) | |||||||||||
ROU assets (a) | $ | 244.4 | $ | 262.0 | |||||||
Long-term investments | 215.0 | 194.0 | |||||||||
Deferred sales commissions costs | 105.8 | 108.6 | |||||||||
Contract assets (b) | 96.7 | 89.8 | |||||||||
Long-term broker fees | 43.2 | 48.7 | |||||||||
Deferred data center costs (c) | 21.1 | 24.3 | |||||||||
Other | 41.8 | 35.0 | |||||||||
Total | $ | 768.1 | $ | 762.5 |
December 31, 2021 | June 30, 2021 | ||||||||||
(in millions) | |||||||||||
Accounts payable | $ | 192.2 | $ | 248.9 | |||||||
Employee compensation and benefits | 236.8 | 343.7 | |||||||||
Accrued broker fees | 80.5 | 136.0 | |||||||||
Accrued dividend payable | 74.7 | 66.8 | |||||||||
Business process outsourcing administration fees | 74.1 | 66.1 | |||||||||
Customer deposits | 64.1 | 55.5 | |||||||||
Operating lease liabilities | 40.5 | 40.2 | |||||||||
Accrued taxes | 35.8 | 42.6 | |||||||||
Other | 79.9 | 102.9 | |||||||||
Total | $ | 878.6 | $ | 1,102.7 | |||||||
Expiration
Date |
Principal amount outstanding at December 31, 2021 | Carrying value at December 31, 2021 | Carrying value at June 30, 2021 |
Unused
Available Capacity |
Fair Value at December 31, 2021 | ||||||||||||||||||||||||||||||
(in millions) | |||||||||||||||||||||||||||||||||||
Long-term debt | |||||||||||||||||||||||||||||||||||
Fiscal 2021 Revolving Credit Facility: | |||||||||||||||||||||||||||||||||||
U.S. dollar tranche | April 2026 | $ | 305.0 | $ | 305.0 | $ | 20.0 | $ | 795.0 | $ | 305.0 | ||||||||||||||||||||||||
Multicurrency tranche | April 2026 | 76.0 | 76.0 | 94.4 | 324.0 | 76.0 | |||||||||||||||||||||||||||||
Total Revolving Credit Facility | 381.0 | 381.0 | 114.4 | 1,119.0 | 381.0 | ||||||||||||||||||||||||||||||
Fiscal 2021 Term Loans | May 2024 | 1,550.0 | 1,544.6 | 1,543.4 | — | 1,550.0 | |||||||||||||||||||||||||||||
Fiscal 2016 Senior Notes | June 2026 | 500.0 | 497.0 | 496.7 | — | 534.2 | |||||||||||||||||||||||||||||
Fiscal 2020 Senior Notes | December 2029 | 750.0 | 743.0 | 742.5 | — | 775.6 | |||||||||||||||||||||||||||||
Fiscal 2021 Senior Notes | May 2031 | 1,000.0 | 991.1 | 990.6 | — | 1,007.9 | |||||||||||||||||||||||||||||
Total Senior Notes | 2,250.0 | 2,231.1 | 2,229.8 | — | 2,317.7 | ||||||||||||||||||||||||||||||
Total debt | $ | 4,181.0 | $ | 4,156.6 | $ | 3,887.6 | $ | 1,119.0 | $ | 4,248.7 |
Years ending June 30, | 2022 | 2023 | 2024 | 2025 | 2026 | Thereafter | Total | |||||||||||||||||||||||||||||||||||||
(in millions) | $ | — | $ | — | $ | 1,550.0 | $ | — | $ | 881.0 | $ | 1,750.0 | $ | 4,181.0 |
December 31, 2021 | June 30, 2021 | ||||||||||
(in millions) | |||||||||||
Operating lease liabilities | $ | 248.8 | $ | 263.1 | |||||||
Post-employment retirement obligations | 178.8 | 162.8 | |||||||||
Non-current income taxes | 49.1 | 48.2 | |||||||||
Acquisition related contingencies | 15.9 | 15.1 | |||||||||
Other | 31.7 | 48.0 | |||||||||
Total | $ | 524.2 | $ | 537.2 |
Stock Options |
Time-based
Restricted Stock Units |
Performance-based
Restricted Stock Units |
|||||||||||||||||||||||||||||||||
Number of
Options |
Weighted-
Average Exercise Price |
Number
of Shares |
Weighted-
Average Grant Date Fair Value |
Number
of Shares |
Weighted-
Average Grant Date Fair Value |
||||||||||||||||||||||||||||||
Balances at September 30, 2021 | 3,022,516 | $ | 90.32 | 798,376 | $ | 120.31 | 223,849 | $ | 131.34 | ||||||||||||||||||||||||||
Granted | 22,038 | 173.00 | 288,678 | 161.45 | 100,862 | 158.28 | |||||||||||||||||||||||||||||
Exercise of stock options (a) | (410,031) | 77.70 | — | — | — | — | |||||||||||||||||||||||||||||
Vesting of restricted stock units
|
— | — | (39,756) | 99.96 | — | — | |||||||||||||||||||||||||||||
Expired/forfeited | (23,161) | 101.09 | (19,142) | 139.85 | (3,441) | 131.63 | |||||||||||||||||||||||||||||
Balances at December 31, 2021 (b),(c)
|
2,611,362 | $ | 92.91 | 1,028,156 | $ | 132.28 | 321,270 | $ | 139.80 |
Stock Options |
Time-based
Restricted Stock Units |
Performance-based
Restricted Stock Units |
|||||||||||||||||||||||||||||||||
Number of
Options |
Weighted-
Average Exercise Price |
Number
of Shares |
Weighted-
Average Grant Date Fair Value |
Number
of Shares |
Weighted-
Average Grant Date Fair Value |
||||||||||||||||||||||||||||||
Balances at June 30, 2021 | 3,203,682 | $ | 88.33 | 761,337 | $ | 117.07 | 247,580 | $ | 126.29 | ||||||||||||||||||||||||||
Granted | 22,038 | 173.00 | 337,845 | 163.02 | 100,862 | 158.28 | |||||||||||||||||||||||||||||
Exercise of stock options (a) | (579,823) | 69.99 | — | — | — | — | |||||||||||||||||||||||||||||
Vesting of restricted stock units
|
— | — | (39,756) | 99.96 | — | — | |||||||||||||||||||||||||||||
Expired/forfeited | (34,535) | 104.51 | (31,270) | 135.11 | (27,172) | 85.30 | |||||||||||||||||||||||||||||
Balances at December 31, 2021
|
2,611,362 | $ | 92.91 | 1,028,156 | $ | 132.28 | 321,270 | $ | 139.80 |
Three Months Ended
December 31, |
Six Months Ended
December 31, |
||||||||||||||||||||||
2021 | 2020 | 2021 | 2020 | ||||||||||||||||||||
(in millions) | |||||||||||||||||||||||
Provision for income taxes | $ | 4.7 | $ | 13.1 | $ | 15.7 | $ | 20.9 | |||||||||||||||
Effective tax rate | 9.1 | % | 18.9 | % | 12.1 | % | 14.6 | % | |||||||||||||||
Excess tax benefits | $ | 7.1 | $ | 3.6 | $ | 11.5 | $ | 12.8 |
Three Months Ended
December 31, |
Six Months Ended
December 31, |
||||||||||||||||||||||
2021 | 2020 | 2021 | 2020 | ||||||||||||||||||||
(in millions) | |||||||||||||||||||||||
Software License Agreements | $ | 35.9 | $ | 20.1 | $ | 67.8 | $ | 38.3 |
Three Months Ended
December 31, |
Six Months Ended
December 31, |
||||||||||||||||||||||
2021 | 2020 | 2021 | 2020 | ||||||||||||||||||||
(in millions) | |||||||||||||||||||||||
Fixed Operating Lease Cost | $ | 12.3 | $ | 10.5 | $ | 23.6 | $ | 34.9 |
Foreign
Currency Translation |
Pension
and Post- Retirement Liabilities |
Cash Flow Hedge | Total | ||||||||||||||||||||
(in millions) | |||||||||||||||||||||||
Balances at September 30, 2021 | $ | (37.9) | $ | (14.9) | $ | (8.1) | $ | (60.9) | |||||||||||||||
Other comprehensive income/(loss) before reclassifications | (31.8) | — | — | (31.8) | |||||||||||||||||||
Amounts reclassified from accumulated other comprehensive income/(loss)
|
— | 0.5 | 0.2 | 0.7 | |||||||||||||||||||
Balances at December 31, 2021 | $ | (69.7) | $ | (14.4) | $ | (7.8) | $ | (91.9) |
Foreign
Currency Translation |
Pension
and Post- Retirement Liabilities |
Cash Flow Hedge | Total | ||||||||||||||||||||
(in millions) | |||||||||||||||||||||||
Balances at June 30, 2021 | $ | 32.9 | $ | (15.4) | $ | (8.2) | $ | 9.2 | |||||||||||||||
Other comprehensive income/(loss) before reclassifications | (102.6) | — | — | (102.6) | |||||||||||||||||||
Amounts reclassified from accumulated other comprehensive income/(loss)
|
— | 1.0 | 0.4 | 1.4 | |||||||||||||||||||
Balances at December 31, 2021 | $ | (69.7) | $ | (14.4) | $ | (7.8) | $ | (91.9) |
Foreign
Currency Translation |
Pension
and Post- Retirement Liabilities |
Cash Flow Hedge | Total | ||||||||||||||||||||
(in millions) | |||||||||||||||||||||||
Balances at September 30, 2020 | $ | (47.7) | $ | (15.1) | $ | — | $ | (62.9) | |||||||||||||||
Other comprehensive income/(loss) before reclassifications | 5.2 | — | — | 5.2 | |||||||||||||||||||
Amounts reclassified from accumulated other comprehensive income/(loss)
|
— | 0.6 | — | 0.6 | |||||||||||||||||||
Balances at December 31, 2020 | $ | (42.6) | $ | (14.5) | $ | — | $ | (57.1) |
Foreign
Currency Translation |
Pension
and Post- Retirement Liabilities |
Cash Flow Hedge | Total | ||||||||||||||||||||
(in millions) | |||||||||||||||||||||||
Balances at June 30, 2020 | $ | (84.7) | $ | (15.7) | $ | — | $ | (100.4) | |||||||||||||||
Other comprehensive income/(loss) before reclassifications | 42.1 | — | — | 42.1 | |||||||||||||||||||
Amounts reclassified from accumulated other comprehensive income/(loss)
|
— | 1.2 | — | 1.2 | |||||||||||||||||||
Balances at December 31, 2020 | $ | (42.6) | $ | (14.5) | $ | — | $ | (57.1) |
Revenues | |||||||||||||||||||||||
Three Months Ended
December 31, |
Six Months Ended
December 31, |
||||||||||||||||||||||
2021 | 2020 | 2021 | 2020 | ||||||||||||||||||||
(in millions) | |||||||||||||||||||||||
Investor Communication Solutions | $ | 893.3 | $ | 776.0 | $ | 1,746.8 | $ | 1,521.5 | |||||||||||||||
Global Technology and Operations | 370.6 | 285.3 | 711.2 | 565.7 | |||||||||||||||||||
Foreign currency exchange | (4.3) | (6.4) | (5.5) | (14.9) | |||||||||||||||||||
Total | $ | 1,259.6 | $ | 1,054.9 | $ | 2,452.5 | $ | 2,072.3 |
Earnings (Loss) before Income
Taxes |
|||||||||||||||||||||||
Three Months Ended
December 31, |
Six Months Ended
December 31, |
||||||||||||||||||||||
2021 | 2020 | 2021 | 2020 | ||||||||||||||||||||
(in millions) | |||||||||||||||||||||||
Investor Communication Solutions | $ | 58.8 | $ | 40.9 | $ | 141.2 | $ | 93.3 | |||||||||||||||
Global Technology and Operations | 34.4 | 48.6 | 53.1 | 118.5 | |||||||||||||||||||
Other | (39.7) | (17.3) | (61.2) | (63.2) | |||||||||||||||||||
Foreign currency exchange | (1.7) | (2.9) | (3.1) | (5.7) | |||||||||||||||||||
Total | $ | 51.9 | $ | 69.4 | $ | 130.1 | $ | 143.0 |
Three Months Ended
December 31, |
Six Months Ended
December 31, |
||||||||||||||||||||||||||||||||||
2021 | 2020 | 2021 | 2020 | ||||||||||||||||||||||||||||||||
(in millions) | |||||||||||||||||||||||||||||||||||
Investor Communication Solutions | $ | 16.2 | $ | 22.2 | $ | 37.1 | $ | 44.5 | |||||||||||||||||||||||||||
Global Technology and Operations | 47.6 | 10.7 | 96.0 | 21.4 | |||||||||||||||||||||||||||||||
Other | — | 0.4 | — | 0.7 | |||||||||||||||||||||||||||||||
Foreign currency exchange | (1.3) | (0.7) | (1.9) | (1.7) | |||||||||||||||||||||||||||||||
Total | $ | 62.5 | $ | 32.6 | $ | 131.2 | $ | 64.9 | |||||||||||||||||||||||||||
Select Operating Metrics | ||||||||||||||||||||
Three Months Ended
December 31, |
Six Months Ended
December 31, |
|||||||||||||||||||
2021 | 2020 | 2021 | 2020 | |||||||||||||||||
Record Growth | ||||||||||||||||||||
Equity proxy | 20 | % | 24 | % | 29 | % | 20 | % | ||||||||||||
Mutual fund interims | 12 | % | 5 | % | 13 | % | 8 | % | ||||||||||||
Internal Trade Growth | 1 | % | 24 | % | 1 | % | 17 | % |
Three Months Ended
December 31, |
|||||||||||||||||||||||
Change | |||||||||||||||||||||||
2021 | 2020 | $ | % | ||||||||||||||||||||
(in millions, except per share amounts) | |||||||||||||||||||||||
Revenues | $ | 1,259.6 | $ | 1,054.9 | $ | 204.6 | 19 | ||||||||||||||||
Cost of revenues | 978.4 | 806.5 | 172.0 | 21 | |||||||||||||||||||
Selling, general and administrative expenses | 212.3 | 169.0 | 43.3 | 26 | |||||||||||||||||||
Total operating expenses | 1,190.7 | 975.5 | 215.3 | 22 | |||||||||||||||||||
Operating income | 68.9 | 79.5 | (10.6) | (13) | |||||||||||||||||||
Margin | 5.5 | % | 7.5 | % | |||||||||||||||||||
Interest expense, net | (21.4) | (11.1) | (10.3) | 93 | |||||||||||||||||||
Other non-operating income, net | 4.4 | 1.0 | 3.4 | NM | |||||||||||||||||||
Earnings before income taxes | 51.9 | 69.4 | (17.5) | (25) | |||||||||||||||||||
Provision for income taxes | 4.7 | 13.1 | (8.4) | (64) | |||||||||||||||||||
Effective tax rate | 9.1 | % | 18.9 | % | |||||||||||||||||||
Net earnings | $ | 47.2 | $ | 56.3 | $ | (9.1) | (16) | ||||||||||||||||
Basic earnings per share | $ | 0.40 | $ | 0.49 | $ | (0.09) | (18) | ||||||||||||||||
Diluted earnings per share | $ | 0.40 | $ | 0.48 | $ | (0.08) | (17) | ||||||||||||||||
Weighted-average shares outstanding: | |||||||||||||||||||||||
Basic | 116.6 | 115.7 | |||||||||||||||||||||
Diluted | 118.7 | 117.8 |
Three Months Ended
December 31, |
|||||||||||||||||||||||
Change | |||||||||||||||||||||||
2021 | 2020 | $ | % | ||||||||||||||||||||
($ in millions) | |||||||||||||||||||||||
Recurring fee revenues | $ | 797.6 | $ | 672.6 | $ | 125.0 | 19 | ||||||||||||||||
Event-driven fee revenues | 64.7 | 44.9 | 19.9 | 44 | |||||||||||||||||||
Distribution revenues | 401.5 | 343.8 | 57.7 | 17 | |||||||||||||||||||
Foreign currency exchange | (4.3) | (6.4) | 2.1 | (33) | |||||||||||||||||||
Total | $ | 1,259.6 | $ | 1,054.9 | $ | 204.6 | 19 | ||||||||||||||||
Points of Growth | |||||||||||||||||||||||
Net New Business | Internal Growth | Acquisitions | Total | ||||||||||||||||||||
Recurring fee revenue Growth Drivers | 6pts | 4pts | 9pts | 19 | % |
Six Months Ended
December 31, |
|||||||||||||||||||||||
Change | |||||||||||||||||||||||
2021 | 2020 | $ | % | ||||||||||||||||||||
(in millions, except per share amounts) | |||||||||||||||||||||||
Revenues | $ | 2,452.5 | $ | 2,072.3 | $ | 380.1 | 18 | ||||||||||||||||
Cost of revenues | 1,892.5 | 1,593.5 | 299.0 | 19 | |||||||||||||||||||
Selling, general and administrative expenses | 387.8 | 320.7 | 67.1 | 21 | |||||||||||||||||||
Total operating expenses | 2,280.3 | 1,914.3 | 366.1 | 19 | |||||||||||||||||||
Operating income | 172.1 | 158.1 | 14.1 | 9 | |||||||||||||||||||
Margin | 7.0 | % | 7.6 | % | |||||||||||||||||||
Interest expense, net | (44.0) | (25.6) | (18.5) | 72 | |||||||||||||||||||
Other non-operating income, net | 2.0 | 10.5 | (8.5) | (81) | |||||||||||||||||||
Earnings before income taxes | 130.1 | 143.0 | (12.9) | (9) | |||||||||||||||||||
Provision for income taxes | 15.7 | 20.9 | (5.2) | (25) | |||||||||||||||||||
Effective tax rate | 12.1 | % | 14.6 | % | |||||||||||||||||||
Net earnings | $ | 114.4 | $ | 122.1 | $ | (7.7) | (6) | ||||||||||||||||
Basic earnings per share | $ | 0.98 | $ | 1.06 | $ | (0.08) | (8) | ||||||||||||||||
Diluted earnings per share | $ | 0.97 | $ | 1.04 | $ | (0.07) | (7) | ||||||||||||||||
Weighted average shares outstanding: | |||||||||||||||||||||||
Basic | 116.4 | 115.5 | |||||||||||||||||||||
Diluted | 118.5 | 117.6 |
Six Months Ended
December 31, |
|||||||||||||||||||||||
Change | |||||||||||||||||||||||
2021 | 2020 | $ | % | ||||||||||||||||||||
($ in millions) | |||||||||||||||||||||||
Recurring fee revenues | $ | 1,548.5 | $ | 1,322.2 | $ | 226.2 | 17 | ||||||||||||||||
Event-driven fee revenues | 141.1 | 90.0 | 51.0 | 57 | |||||||||||||||||||
Distribution revenues | 768.4 | 675.0 | 93.4 | 14 | |||||||||||||||||||
Foreign currency exchange | (5.5) | (14.9) | 9.4 | (63) | |||||||||||||||||||
Total | $ | 2,452.5 | $ | 2,072.3 | $ | 380.1 | 18 | ||||||||||||||||
Points of Growth | |||||||||||||||||||||||
Net New Business | Internal Growth | Acquisitions | Total | ||||||||||||||||||||
Recurring fee revenue Growth Drivers | 5pts | 3pts | 9pts | 17 | % |
Three Months Ended
December 31, |
Six Months Ended
December 31, |
||||||||||||||||||||||||||||||||||||||||||||||
Change | Change | ||||||||||||||||||||||||||||||||||||||||||||||
2021 | 2020 | $ | % | 2021 | 2020 | $ | % | ||||||||||||||||||||||||||||||||||||||||
($ in millions) | |||||||||||||||||||||||||||||||||||||||||||||||
Investor Communication Solutions | $ | 893.3 | $ | 776.0 | $ | 117.3 | 15 | $ | 1,746.8 | $ | 1,521.5 | $ | 225.3 | 15 | |||||||||||||||||||||||||||||||||
Global Technology and Operations | 370.6 | 285.3 | 85.2 | 30 | 711.2 | 565.7 | 145.4 | 26 | |||||||||||||||||||||||||||||||||||||||
Foreign currency exchange | (4.3) | (6.4) | 2.1 | (33) | (5.5) | (14.9) | 9.4 | (63) | |||||||||||||||||||||||||||||||||||||||
Total | $ | 1,259.6 | $ | 1,054.9 | $ | 204.6 | 19 | $ | 2,452.5 | $ | 2,072.3 | $ | 380.1 | 18 |
Three Months Ended
December 31, |
Six Months Ended
December 31, |
||||||||||||||||||||||||||||||||||||||||||||||
Change | Change | ||||||||||||||||||||||||||||||||||||||||||||||
2021 | 2020 | $ | % | 2021 | 2020 | $ | % | ||||||||||||||||||||||||||||||||||||||||
($ in millions) | |||||||||||||||||||||||||||||||||||||||||||||||
Investor Communication Solutions | $ | 58.8 | $ | 40.9 | $ | 17.9 | 44 | $ | 141.2 | $ | 93.3 | $ | 47.9 | 51 | |||||||||||||||||||||||||||||||||
Global Technology and Operations | 34.4 | 48.6 | (14.2) | (29) | 53.1 | 118.5 | (65.4) | (55) | |||||||||||||||||||||||||||||||||||||||
Other | (39.7) | (17.3) | (22.4) | 129 | (61.2) | (63.2) | 2.0 | (3) | |||||||||||||||||||||||||||||||||||||||
Foreign currency exchange | (1.7) | (2.9) | 1.2 | (41) | (3.1) | (5.7) | 2.6 | (46) | |||||||||||||||||||||||||||||||||||||||
Total | $ | 51.9 | $ | 69.4 | $ | (17.5) | (25) | $ | 130.1 | $ | 143.0 | $ | (12.9) | (9) | |||||||||||||||||||||||||||||||||
Three Months Ended
December 31, |
Six Months Ended
December 31, |
||||||||||||||||||||||||||||||||||||||||||||||
Change | Change | ||||||||||||||||||||||||||||||||||||||||||||||
2021 | 2020 | $ | % | 2021 | 2020 | $ | % | ||||||||||||||||||||||||||||||||||||||||
($ in millions) | |||||||||||||||||||||||||||||||||||||||||||||||
Investor Communication Solutions | $ | 16.2 | $ | 22.2 | $ | (6.0) | (27) | $ | 37.1 | $ | 44.5 | $ | (7.4) | (17) | |||||||||||||||||||||||||||||||||
Global Technology and Operations | 47.6 | 10.7 | 36.9 | NM | 96.0 | 21.4 | 74.6 | NM | |||||||||||||||||||||||||||||||||||||||
Other | — | 0.4 | (0.4) | (100) | — | 0.7 | (0.7) | (100) | |||||||||||||||||||||||||||||||||||||||
Foreign currency exchange | (1.3) | (0.7) | (0.6) | 86 | (1.9) | (1.7) | (0.2) | 12 | |||||||||||||||||||||||||||||||||||||||
Total | $ | 62.5 | $ | 32.6 | $ | 29.9 | 92 | $ | 131.2 | $ | 64.9 | $ | 66.3 | 102 | |||||||||||||||||||||||||||||||||
Three Months Ended
December 31, |
Six Months Ended
December 31, |
||||||||||||||||||||||||||||||||||||||||||||||
Change | Change | ||||||||||||||||||||||||||||||||||||||||||||||
2021 | 2020 | $ | % | 2021 | 2020 | $ | % | ||||||||||||||||||||||||||||||||||||||||
($ in millions) | |||||||||||||||||||||||||||||||||||||||||||||||
Revenues | |||||||||||||||||||||||||||||||||||||||||||||||
Recurring fee revenues | $ | 427.1 | $ | 387.3 | $ | 39.7 | 10 | $ | 837.3 | $ | 756.5 | $ | 80.8 | 11 | |||||||||||||||||||||||||||||||||
Event-driven fee revenues | 64.7 | 44.9 | 19.9 | 44 | 141.1 | 90.0 | 51.0 | 57 | |||||||||||||||||||||||||||||||||||||||
Distribution revenues | 401.5 | 343.8 | 57.7 | 17 | 768.4 | 675.0 | 93.4 | 14 | |||||||||||||||||||||||||||||||||||||||
Total | $ | 893.3 | $ | 776.0 | $ | 117.3 | 15 | $ | 1,746.8 | $ | 1,521.5 | $ | 225.3 | 15 | |||||||||||||||||||||||||||||||||
Earnings Before Income Taxes | |||||||||||||||||||||||||||||||||||||||||||||||
Earnings before income taxes | $ | 58.8 | $ | 40.9 | $ | 17.9 | 44 | $ | 141.2 | $ | 93.3 | $ | 47.9 | 51 | |||||||||||||||||||||||||||||||||
Pre-tax Margin | 6.6 | % | 5.3 | % | 8.1 | % | 6.1 | % | |||||||||||||||||||||||||||||||||||||||
Points of Growth | Points of Growth | ||||||||||||||||||||||||||||||||||||||||||||||
Net New Business | Internal Growth | Acquisitions | Total | Net New Business | Internal Growth | Acquisitions | Total | ||||||||||||||||||||||||||||||||||||||||
Recurring fee revenue Growth Drivers | 6pts | 4pts | 0pts | 10 | % | 6pts | 5pts | 0pts | 11 | % |
Three Months Ended
December 31, |
Six Months Ended
December 31, |
||||||||||||||||||||||||||||||||||||||||||||||
Change | Change | ||||||||||||||||||||||||||||||||||||||||||||||
2021 | 2020 | $ | % | 2021 | 2020 | $ | % | ||||||||||||||||||||||||||||||||||||||||
($ in millions) | |||||||||||||||||||||||||||||||||||||||||||||||
Revenues | |||||||||||||||||||||||||||||||||||||||||||||||
Recurring fee revenues | $ | 370.6 | $ | 285.3 | $ | 85.2 | 30 | $ | 711.2 | $ | 565.7 | $ | 145.4 | 26 | |||||||||||||||||||||||||||||||||
Earnings Before Income Taxes | |||||||||||||||||||||||||||||||||||||||||||||||
Earnings before income taxes | $ | 34.4 | $ | 48.6 | $ | (14.2) | (29) | $ | 53.1 | $ | 118.5 | $ | (65.4) | (55) | |||||||||||||||||||||||||||||||||
Pre-tax Margin | 9.3 | % | 17.0 | % | 7.5 | % | 20.9 | % | |||||||||||||||||||||||||||||||||||||||
Points of Growth | Points of Growth | ||||||||||||||||||||||||||||||||||||||||||||||
Net New Business | Internal Growth | Acquisitions | Total | Net New Business | Internal Growth | Acquisitions | Total | ||||||||||||||||||||||||||||||||||||||||
Recurring fee revenue Growth Drivers | 4pts | 4pts | 22pts | 30 | % | 4pts | 1pt | 21pt | 26 | % |
Three Months Ended
December 31, |
Six Months Ended
December 31, |
||||||||||||||||||||||
2021 | 2020 | 2021 | 2020 | ||||||||||||||||||||
(in millions) | |||||||||||||||||||||||
Operating income (GAAP) | $ | 68.9 | $ | 79.5 | $ | 172.1 | $ | 158.1 | |||||||||||||||
Adjustments: | |||||||||||||||||||||||
Amortization of Acquired Intangibles and Purchased Intellectual Property | 62.5 | 32.6 | 131.2 | 64.9 | |||||||||||||||||||
Acquisition and Integration Costs | 7.8 | 0.7 | 10.7 | 2.4 | |||||||||||||||||||
Real Estate Realignment and Covid-19 Related Expenses
|
1.7 | 5.8 | 3.5 | 37.8 | |||||||||||||||||||
Software Charge | — | — | — | 6.0 | |||||||||||||||||||
Adjusted Operating income (Non-GAAP) | $ | 140.8 | $ | 118.6 | $ | 317.5 | $ | 269.1 | |||||||||||||||
Operating income margin (GAAP) | 5.5 | % | 7.5 | % | 7.0 | % | 7.6 | % | |||||||||||||||
Adjusted Operating income margin (Non-GAAP) | 11.2 | % | 11.2 | % | 12.9 | % | 13.0 | % | |||||||||||||||
Three Months Ended
December 31, |
Six Months Ended
December 31, |
||||||||||||||||||||||
2021 | 2020 | 2021 | 2020 | ||||||||||||||||||||
(in millions) | |||||||||||||||||||||||
Net earnings (GAAP) | $ | 47.2 | $ | 56.3 | $ | 114.4 | $ | 122.1 | |||||||||||||||
Adjustments: | |||||||||||||||||||||||
Amortization of Acquired Intangibles and Purchased Intellectual Property | 62.5 | 32.6 | 131.2 | 64.9 | |||||||||||||||||||
Acquisition and Integration Costs | 7.8 | 0.7 | 10.7 | 2.4 | |||||||||||||||||||
Real Estate Realignment and Covid-19 Related Expenses
|
1.7 | 5.8 | 3.5 | 37.8 | |||||||||||||||||||
Investment Gains | (7.5) | — | (7.5) | (8.7) | |||||||||||||||||||
Software Charge | — | — | — | 6.0 | |||||||||||||||||||
Subtotal of adjustments | 64.4 | 39.1 | 137.8 | 102.3 | |||||||||||||||||||
Tax impact of adjustments (a) | (14.3) | (9.5) | (28.7) | (24.1) | |||||||||||||||||||
Adjusted Net earnings (Non-GAAP) | $ | 97.3 | $ | 85.9 | $ | 223.5 | $ | 200.3 | |||||||||||||||
Three Months Ended
December 31, |
Six Months Ended
December 31, |
||||||||||||||||||||||
2021 | 2020 | 2021 | 2020 | ||||||||||||||||||||
Diluted earnings per share (GAAP) | $ | 0.40 | $ | 0.48 | $ | 0.97 | $ | 1.04 | |||||||||||||||
Adjustments: | |||||||||||||||||||||||
Amortization of Acquired Intangibles and Purchased Intellectual Property | 0.53 | 0.28 | 1.11 | 0.55 | |||||||||||||||||||
Acquisition and Integration Costs | 0.07 | 0.01 | 0.09 | 0.02 | |||||||||||||||||||
Real Estate Realignment and Covid-19 Related Expenses
|
0.01 | 0.05 | 0.03 | 0.32 | |||||||||||||||||||
Investment Gains | (0.06) | — | (0.06) | (0.07) | |||||||||||||||||||
Software Charge | — | — | — | 0.05 | |||||||||||||||||||
Subtotal of adjustments | 0.54 | 0.33 | 1.16 | 0.87 | |||||||||||||||||||
Tax impact of adjustments (a) | (0.12) | (0.08) | (0.24) | (0.21) | |||||||||||||||||||
Adjusted earnings per share (Non-GAAP) | $ | 0.82 | $ | 0.73 | $ | 1.89 | $ | 1.70 |
Six Months Ended
December 31, |
|||||||||||
2021 | 2020 | ||||||||||
(in millions) | |||||||||||
Net cash flows (used in) provided by operating activities (GAAP) | $ | (94.6) | $ | 83.3 | |||||||
Capital expenditures and Software purchases and capitalized internal use software | (29.2) | (50.8) | |||||||||
Proceeds from asset sales | — | 18.0 | |||||||||
Free cash flow (Non-GAAP) | $ | (123.8) | $ | 50.5 | |||||||
December 31, 2021 | June 30, 2021 | ||||||||||
(in millions) | |||||||||||
Cash and cash equivalents: | |||||||||||
Domestic cash | $ | 72.5 | $ | 40.9 | |||||||
Cash held by foreign subsidiaries | 153.8 | 159.8 | |||||||||
Cash held by regulated entities | 54.8 | 73.8 | |||||||||
Total cash and cash equivalents | $ | 281.2 | $ | 274.5 |
Expiration
Date |
Principal amount outstanding at December 31, 2021 | Carrying value at December 31, 2021 | Carrying value at June 30, 2021 |
Unused
Available Capacity |
Fair Value at December 31, 2021 | ||||||||||||||||||||||||||||||
(in millions) | |||||||||||||||||||||||||||||||||||
Long-term debt | |||||||||||||||||||||||||||||||||||
Fiscal 2021 Revolving Credit Facility: | |||||||||||||||||||||||||||||||||||
U.S. dollar tranche | April 2026 | $ | 305.0 | $ | 305.0 | $ | 20.0 | $ | 795.0 | $ | 305.0 | ||||||||||||||||||||||||
Multicurrency tranche | April 2026 | 76.0 | 76.0 | 94.4 | 324.0 | 76.0 | |||||||||||||||||||||||||||||
Total Revolving Credit Facility | 381.0 | 381.0 | 114.4 | 1,119.0 | 381.0 | ||||||||||||||||||||||||||||||
Fiscal 2021 Term Loans | May 2024 | 1,550.0 | 1,544.6 | 1,543.4 | — | 1,550.0 | |||||||||||||||||||||||||||||
Fiscal 2016 Senior Notes | June 2026 | 500.0 | 497.0 | 496.7 | — | 534.2 | |||||||||||||||||||||||||||||
Fiscal 2020 Senior Notes | December 2029 | 750.0 | 743.0 | 742.5 | — | 775.6 | |||||||||||||||||||||||||||||
Fiscal 2021 Senior Notes | May 2031 | 1,000.0 | 991.1 | 990.6 | — | 1,007.9 | |||||||||||||||||||||||||||||
Total Senior Notes | 2,250.0 | 2,231.1 | 2,229.8 | — | 2,317.7 | ||||||||||||||||||||||||||||||
Total debt | $ | 4,181.0 | $ | 4,156.6 | $ | 3,887.6 | $ | 1,119.0 | $ | 4,248.7 |
Years ending June 30, | 2022 | 2023 | 2024 | 2025 | 2026 | Thereafter | Total | |||||||||||||||||||||||||||||||||||||
(In millions) | $ | — | $ | — | $ | 1,550.0 | $ | — | $ | 881.0 | $ | 1,750.0 | $ | 4,181.0 |
Six Months Ended
December 31, |
|||||||||||||||||
Change | |||||||||||||||||
2021 | 2020 | $ | |||||||||||||||
(in millions) | |||||||||||||||||
Net cash flows (used in) provided by operating activities | $ | (94.6) | $ | 83.3 | $ | (178.0) | |||||||||||
Net cash flows used in investing activities | (53.9) | (43.9) | (10.0) | ||||||||||||||
Net cash flows provided by (used in) financing activities | 159.2 | (156.6) | 315.8 | ||||||||||||||
Effect of exchange rate changes on Cash and cash equivalents | (4.1) | 6.2 | (10.3) | ||||||||||||||
Net change in Cash and cash equivalents | $ | 6.6 | $ | (111.0) | $ | 117.6 | |||||||||||
Free cash flow: | |||||||||||||||||
Net cash flows (used in) provided by operating activities (GAAP) | $ | (94.6) | $ | 83.3 | $ | (178.0) | |||||||||||
Capital expenditures and Software purchases and capitalized internal use software | (29.2) | (50.8) | 21.6 | ||||||||||||||
Proceeds from asset sales | — | 18.0 | (18.0) | ||||||||||||||
Free cash flow (Non-GAAP) | $ | (123.8) | $ | 50.5 | $ | (174.3) |
Period | Total Number of Shares Purchased (1) |
Average Price
Paid per Share |
Total Number of Shares
Purchased as Part of Publicly Announced Plans or Programs (2) |
Maximum Number of Shares that May Yet Be Purchased Under the Plans or Programs (2) | |||||||||||||||||||
October 1, 2021 - October 31, 2021 | 2,619 | $ | 166.02 | — | 9,586,545 | ||||||||||||||||||
November 1, 2021 - November 30, 2021 | 1,965 | 177.24 | — | 9,586,545 | |||||||||||||||||||
December 1, 2021 - December 31, 2021 | 4,895 | 177.24 | — | 9,586,545 | |||||||||||||||||||
Total | 9,479 | $ | 174.14 | — |
|
||||||||
First Amendment dated as of December 23, 2021 to the Amended and Restated Credit Agreement dated as of April 23, 2021, among Broadridge Financial Solutions, Inc., the Lenders party thereto and JPMorgan Chase Bank, N.A., as Administrative Agent.
|
||||||||
101 |
The following financial statements from the Broadridge Financial Solutions, Inc. Quarterly Report on Form 10-Q for the quarter ended December 31, 2021, formatted in eXtensible Business Reporting Language (XBRL): (i) condensed consolidated statements of earnings for the three and six months ended December 31, 2021 and 2020, (ii) condensed consolidated statements of comprehensive income for the three and six months ended December 31, 2021 and 2020, (iii) condensed consolidated balance sheets as of December 31, 2021 and June 30, 2021, (iv) condensed consolidated statements of cash flows for the six months ended December 31, 2021 and 2020, (v) condensed consolidated statements of stockholders’ equity for the three and six months ended December 31, 2021 and 2020, and (vi) the notes to the condensed consolidated financial statements. XBRL Instance Document does not appear in the Interactive Data File because its XBRL tags are embedded within the Inline XBRL document.
|
|||||||
104 | Cover Page Interactive Data File (Formatted as Inline XBRL and contained in Exhibit 101) |
BROADRIDGE FINANCIAL SOLUTIONS, INC. | |||||||||||
Date: February 1, 2022 | By: | /s/ Edmund L. Reese | |||||||||
Edmund L. Reese | |||||||||||
Corporate Vice President and Chief Financial Officer | |||||||||||
(Principal Financial and Accounting Officer) |
BROADRIDGE FINANCIAL SOLUTIONS, INC., | |||||
by:
|
|||||
|
/s/ Edmund Reese
|
||||
|
Name: Edmund Reese
Title: Chief Financial Officer
|
JPMORGAN CHASE BANK, N.A., as a Lender and as Administrative Agent,
|
|||||
by:
|
|||||
|
/s/ Ryan Zimmerman
|
||||
|
Name: Ryan Zimmerman
Title: Vice President
|
Lender: | |||||
by:
|
|||||
|
/s/ Alexandra M. Knights
|
||||
|
Name: Alexandra M. Knights
Title: Vice President
|
Lender: | |||||
by:
|
|||||
|
/s/ Tracy L. Moosbrugger
|
||||
|
Name: Tracy L. Moosbrugger
Title: Managing Director
|
Lender: | |||||
by:
|
|||||
|
/s/ Michael Kowalczuk
|
||||
|
Name: Michael Kowalczuk
Title: Managing Director
|
For any Lender requiring a second signature line: | |||||
by:
|
|||||
|
/s/ Maria Mulic
|
||||
|
Name: Maria Mulic
Title: Managing Director
|
Lender: | |||||
by:
|
|||||
|
/s/ Bernadette Collins
|
||||
|
Name: Bernadette Collins
Title: Senior Vice President
|
Lender: | |||||
by:
|
|||||
|
/S/ William R. Mandaro
|
||||
|
Name: William R. Mandaro
Title: SVP
|
Lender: | |||||
by:
|
|||||
|
/s/ Jim C. Wright
|
||||
|
Name: Jim C. Wright
Title: Vice President
|
Lender: | |||||
by:
|
|||||
|
/s/ Raymond Qiao
|
||||
|
Name: Raymond Qiao
Title: Executive Vice President
|
Lender: | |||||
by:
|
|||||
|
/s/ Khrystyna Manko
|
||||
|
Name: Khrystyna Manko
Title: Director
|
BROADRIDGE FINANCIAL SOLUTIONS, INC., | |||||
by:
|
|||||
|
/s/ Edmund Reese
|
||||
|
Name: Edmund Reese
Title: Chief Financial Officer
|
JPMORGAN CHASE BANK, N.A., as a Lender and as Administrative Agent,
|
|||||
by:
|
|||||
|
/s/ Ryan Zimmerman
|
||||
|
Name: Ryan Zimmerman
Title: Vice President
|
Lender: BANK OF AMERICA, N.A. | |||||
by:
|
|||||
|
/s/ Alexandra M. Knights
|
||||
|
Name: Alexandra M. Knights
Title: Vice President
|
Lender: WELLS FARGO BANK, N.A. | |||||
by:
|
|||||
|
/s/ Tracy L. Moosbrugger
|
||||
|
Name: Tracy L. Moosbrugger
Title: Managing Director
|
Lender: BNP Paribas Securities Corp. | |||||
by:
|
|||||
|
/s/ Michael Kowalczuk
|
||||
|
Name: Michael Kowalczuk
Title: Managing Director
|
For any Lender requiring a second signature line: | |||||
by:
|
|||||
|
/s/ Maria Mulic
|
||||
|
Name: Maria Mulic
Title: Managing Director
|
Lender: TD Bank, N.A. | |||||
by:
|
|||||
|
/s/ Bernadette Collins
|
||||
|
Name: Bernadette Collins
Title: Senior Vice President
|
Lender: U.S. Bank National Association | |||||
by:
|
|||||
|
/s/ William R. Mandaro
|
||||
|
Name: William R. Mandaro
Title: SVP
|
Lender: Truist Bank | |||||
by:
|
|||||
|
/s/ Jim C. Wright
|
||||
|
Name: Jim C. Wright
Title: Vice President
|
Lender: BANK OF CHINA, NEW YORK BRANCH | |||||
by:
|
|||||
|
/s/ Raymond Qiao
|
||||
|
Name: Raymond Qiao
Title: Executive Vice President
|
Lender: THE BANK OF NOVA SCOTIA | |||||
by:
|
|||||
|
/s/ Khrystyna Manko
|
||||
|
Name: Khrystyna Manko
Title: Director
|
Lender: BMO Bank of Montreal | |||||
|
/s/ Geoff Clark
|
||||
|
Name: Geoff Clark
Title: Director, Corporate Finance Division
|
||||
Lender: HSBC Bank USA NA | |||||
by:
|
|||||
|
/s/ Eric Korins
|
||||
|
Name: Eric Korins
Title: Vice President
|
Lender: MORGAN STANLEY BANK, N.A. | |||||
|
|||||
by:
|
|
||||
/s/ Jack Kuhns |
Lender: Santander Bank, N.A. | |||||
by:
|
|||||
|
/s/ Jennifer Baydian
|
||||
|
Name: Jennifer Baydian
Title: Senior Vice President
|
Lender: BARCLAYS BANK IRELAND PLC | |||||
by:
|
|||||
|
/s/ Daniel Scoines
|
||||
|
Name: Daniel Scoines
Title: Assistant Vice President
|
/s/ Timothy C. Gokey | ||
Timothy C. Gokey | ||
Chief Executive Officer |
/s/ Edmund L. Reese | ||
Edmund L. Reese | ||
Corporate Vice President | ||
Chief Financial Officer |
/s/ Timothy C. Gokey | |||||
Timothy C. Gokey | |||||
Chief Executive Officer |
/s/ Edmund L. Reese | |||||
Edmund L. Reese | |||||
Corporate Vice President and Chief Financial Officer |