Broadridge Financial Solutions, Inc.
Condensed Consolidated and Combined Statements of Earnings
(In millions, except per share amounts)
(Unaudited)
Three months ended
September 30,
-------------------
2007 2006
--------- ---------
Revenues:
Services revenues $ 435.5 $ 426.1
Other 24.5 19.4
--------- ---------
Total revenues 460.0 445.5
Interest expense from securities operations 8.8 5.4
--------- ---------
Net revenues 451.2 440.1
--------- ---------
Cost of net revenues 334.2 342.6
Selling, general and administrative expenses 49.1 50.5
Other expenses, net 8.8 0.6
--------- ---------
392.1 393.7
Earnings before income taxes 59.1 46.4
Provision for income taxes 23.1 17.9
--------- ---------
Net earnings $ 36.0 $ 28.5
========= =========
Earnings per share:
Basic $ 0.26 $ 0.21
Diluted $ 0.26 $ 0.21
Weighted-average shares outstanding:
Basic 139.1 138.8
Diluted 139.8 138.8
Dividends declared per common share $ 0.06 na
na – not applicable
Broadridge Financial Solutions, Inc.
Condensed Consolidated Balance Sheets
(In millions, except per share amounts)
(Unaudited)
September
30, June 30,
2007 2007
--------- ---------
Assets
Current assets:
Cash and cash equivalents $ 86.4 $ 88.6
Cash and securities segregated for regulatory
purposes and securities deposited with clearing
organizations 27.0 66.4
Accounts receivable, net of allowance for doubtful
accounts of $3.1 and $2.6, respectively 374.2 502.7
Securities clearing receivables, net of allowance
for doubtful accounts of $2.1 and $2.1,
respectively 1,290.6 1,241.2
Other current assets 66.7 61.1
--------- ---------
Total current assets 1,844.9 1,960.0
Property, plant and equipment, net 74.5 77.4
Other non-current assets 138.1 129.2
Goodwill 484.4 480.2
Intangible assets, net 33.0 31.4
--------- ---------
Total assets $ 2,574.9 $ 2,678.2
========= =========
Liabilities and Stockholders’ Equity
Current liabilities:
Accounts payable $ 91.3 $ 91.5
Accrued expenses and other current liabilities 193.0 287.9
Securities clearing payables 963.2 915.4
Deferred revenues 18.9 24.6
Short-term borrowings 108.7 109.2
--------- ---------
Total current liabilities 1,375.1 1,428.6
Long-term debt 532.7 617.7
Other non-current liabilities 59.6 61.0
Deferred revenues 42.3 39.8
--------- ---------
Total liabilities 2,009.7 2,147.1
--------- ---------
Commitments and contingencies
Stockholders’ equity:
Preferred stock: Authorized, 25.0 shares; issued
and outstanding, none -- --
Common stock, $.01 par value: Authorized, 650.0
shares; issued, 139.4 shares and 139.3 shares,
respectively 1.4 1.4
Additional paid-in capital 418.9 412.9
Retained earnings 117.2 90.3
Treasury stock - at cost (0.5) (0.1)
Accumulated other comprehensive income 28.2 26.6
--------- ---------
Total stockholders’ equity 565.2 531.1
--------- ---------
Total liabilities and stockholders’ equity $ 2,574.9 $ 2,678.2
========= =========
Broadridge Financial Solutions, Inc.
Segment Results
(In millions)
(Unaudited)
Net revenues
-------------------------
Three months ended
September 30,
-------------------------
2007 2006
------------ -----------
Investor Communication Solutions $ 299.1 $ 308.0
Securities Processing Solutions 124.4 116.5
Clearing and Outsourcing Solutions 24.7 21.8
Other 2.4 (3.9)
Foreign exchange 0.6 (2.3)
------------ -----------
Total $ 451.2 $ 440.1
============ ===========
Earnings before
Income Taxes
------------------------
Three months ended
September 30,
------------------------
2007 2006
----------- -----------
Investor Communication Solutions $ 29.8 $ 24.6
Securities Processing Solutions 38.8 30.5
Clearing and Outsourcing Solutions (2.0) (5.6)
Other (7.8) (2.3)
Foreign exchange 0.3 (0.8)
----------- -----------
Total $ 59.1 $ 46.4
=========== ===========
Broadridge Financial Solutions, Inc.
Reconciliation of GAAP to Non-GAAP Measures
Earnings, Margin and Per Share Reconciliation
(In millions, except per share and margin data)
(Unaudited)
Three months ended September 30, 2007
---------------------------------------
Earnings
before Net
income Pretax Net earnings
taxes margin earnings per share
--------- -------- --------- ---------
GAAP basis measures $ 59.1 13.1 % $ 36.0 $ 0.26
Non-GAAP adjustments:
One-time transition
expenses 2.1 0.5 % 1.3 0.01
Interest on new debt 9.0 2.0 % 5.5 0.04
--------- -------- --------- ---------
Total Non-GAAP
adjustments 11.1 2.5 % 6.8 0.05
--------- -------- --------- ---------
Non-GAAP measures $ 70.2 15.6 % $ 42.8 $ 0.31
========= ======== ========= =========
Three months ended September 30, 2006
---------------------------------------
Earnings
before Net
income Pretax Net earnings
taxes margin earnings per share
--------- -------- --------- ---------
GAAP basis measures $ 46.4 10.5 % $ 28.5 $ 0.21
Non-GAAP adjustments:
One-time transition
expenses -- -- -- --
Interest on new debt -- -- -- --
--------- -------- --------- ---------
Total Non-GAAP
adjustments -- -- -- --
--------- -------- --------- ---------
Non-GAAP measures $ 46.4 10.5 % $ 28.5 $ 0.21
========= ======== ========= =========
Broadridge Financial Solutions, Inc.
Intersegment Transfer Price Reconciliation
(In millions, except margin data)
(Unaudited)
Three months ended
September 30,
--------------------
2007 2006
--------- ---------
Investor Communication Solutions
Net revenue as reported $ 299.1 $ 308.0
Transfer pricing adjustment -- (1.0)
--------- ---------
Net revenue as adjusted - Non-GAAP $ 299.1 $ 307.0
--------- ---------
EBT as reported $ 29.8 $ 24.6
Transfer pricing adjustment -- (0.4)
--------- ---------
EBT as adjusted - Non-GAAP $ 29.8 $ 24.2
--------- ---------
Margin % as reported 10.0% 8.0%
Margin % as adjusted - Non-GAAP 10.0% 7.9%
Securities Processing Solutions
Net revenue as reported $ 124.4 $ 116.5
Transfer pricing adjustment -- (2.9)
--------- ---------
Net revenue as adjusted - Non-GAAP $ 124.4 $ 113.6
--------- ---------
EBT as reported $ 38.8 $ 30.5
Transfer pricing adjustment -- (2.1)
--------- ---------
EBT as adjusted - Non GAAP $ 38.8 $ 28.4
--------- ---------
Margin % as reported 31.2% 26.2%
Margin % as adjusted - Non-GAAP 31.2% 25.0%
Clearing and Outsourcing Solutions
Net revenue as reported $ 24.7 $ 21.8
Transfer pricing adjustment -- --
--------- ---------
Net revenue as adjusted - Non-GAAP $ 24.7 $ 21.8
--------- ---------
EBT as reported $ (2.0) $ (5.6)
Transfer pricing adjustment -- 2.5
--------- ---------
EBT as adjusted - Non-GAAP $ (2.0) $ (3.1)
--------- ---------
Margin % as reported -8.1% -25.7%
Margin % as adjusted - Non-GAAP -8.1% -14.2%
Contact Information: Contact Information Investors: Marvin Sims Broadridge Financial Solutions, Inc. Vice President, Investor Relations (516) 472-5477