Broadridge Financial Solutions, Inc.
Consolidated and Combined Statements of Earnings
(In millions except per share amounts)
(Unaudited)
Three Months Twelve Months
Ended June 30, Ended June 30,
------------------- -------------------
2008 2007 2008 2007
--------- --------- --------- ---------
Revenues:
Services revenues $ 780.0 $ 758.2 $ 2,151.6 $ 2,078.7
Other 14.7 22.1 82.5 84.0
--------- --------- --------- ---------
Total revenues 794.7 780.3 2,234.1 2,162.7
Interest expense from
securities operations 2.3 6.6 26.6 24.8
--------- --------- --------- ---------
Net revenues 792.4 773.7 2,207.5 2,137.9
--------- --------- --------- ---------
Expenses:
Cost of net revenues 543.4 537.2 1,606.4 1,588.1
Selling, general and
administrative expenses 72.7 67.5 244.3 216.7
Other expenses, net 5.2 10.5 30.9 12.3
--------- --------- --------- ---------
Total expenses 621.3 615.2 1,881.6 1,817.1
--------- --------- --------- ---------
Earnings before income taxes 171.1 158.5 325.9 320.8
Provision for income taxes 73.3 59.8 133.7 123.7
--------- --------- --------- ---------
Net earnings $ 97.8 $ 98.7 $ 192.2 $ 197.1
========= ========= ========= =========
Earnings per share:
Basic $ 0.70 $ 0.71 $ 1.38 $ 1.42
Diluted $ 0.69 $ 0.71 $ 1.36 $ 1.42
Weighted-average shares
outstanding:
Basic 140.1 138.9 139.6 138.8
Diluted 141.9 138.9 141.0 139.0
Dividends declared per common share $ 0.06 $ 0.06 $ 0.24 $ 0.06
Broadridge Financial Solutions, Inc.
Consolidated Balance Sheets
(In millions, except per share amounts)
June 30, June 30,
2008 2007
----------- -----------
Assets
Current assets:
Cash and cash equivalents $ 198.3 $ 88.6
Cash and securities segregated for
regulatory purposes and securities
deposited with clearing organizations 33.7 66.4
Accounts receivable, net of allowance for
doubtful accounts of $3.8 and $2.6,
respectively 415.4 502.7
Securities clearing receivables, net of
allowance for doubtful accounts of $2.0 and
$2.1, respectively 1,369.9 1,241.2
Other current assets 61.9 61.1
----------- -----------
Total current assets 2,079.2 1,960.0
Property, plant and equipment, net 82.6 77.4
Other non-current assets 157.4 129.2
Goodwill 484.3 480.2
Intangible assets, net 30.1 31.4
----------- -----------
Total assets $ 2,833.6 $ 2,678.2
=========== ===========
Liabilities and Stockholders’ Equity
Current liabilities:
Accounts payable $ 89.9 $ 91.5
Accrued expenses and other current
liabilities 252.6 287.9
Securities clearing payables 1,157.4 915.4
Deferred revenues 25.5 24.6
Short-term borrowings -- 109.2
----------- -----------
Total current liabilities 1,525.4 1,428.6
Long-term debt 447.9 617.7
Other non-current liabilities 53.6 61.0
Deferred revenues 60.9 39.8
----------- -----------
Total liabilities 2,087.8 2,147.1
----------- -----------
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, 140.5 shares and
139.3 shares, respectively; outstanding,
140.4 and 139.3 shares at June 30, 2008 and
2007, respectively 1.4 1.4
Additional paid-in capital 469.5 412.9
Retained earnings 248.2 90.3
Treasury stock -- at cost, 0.1 and 0.0
shares, respectively (2.0) (0.1)
Accumulated other comprehensive income 28.7 26.6
----------- -----------
Total stockholders’ equity 745.8 531.1
----------- -----------
Total liabilities and
stockholders’ equity $ 2,833.6 $ 2,678.2
=========== ===========
Broadridge Financial Solutions, Inc.
Segment Results
(In millions)
(Unaudited)
Net Revenues
------------------------------------------
Three Months Twelve Months
Ended June 30, Ended June 30,
-------------------- --------------------
2008 2007 2008 2007
---------- --------- ---------- ---------
Investor Communication
Solutions $ 630.0 $ 619.4 $ 1,575.2 $ 1,554.2
Securities Processing Solutions 133.4 130.9 514.4 509.9
Clearing and Outsourcing
Solutions 23.5 25.6 95.8 93.8
Other 0.7 0.9 8.5 (7.0)
Foreign exchange 4.8 (3.1) 13.6 (13.0)
---------- --------- ---------- ---------
Total $ 792.4 $ 773.7 $ 2,207.5 $ 2,137.9
========== ========= ========== =========
Earnings before Income Taxes
------------------------------------------
Three Months Twelve Months
Ended June 30, Ended June 30,
-------------------- --------------------
2008 2007 2008 2007
--------- --------- --------- ---------
Investor Communication
Solutions $ 165.9 $ 154.2 $ 255.3 $ 226.8
Securities Processing Solutions 27.7 35.2 137.5 148.4
Clearing and Outsourcing
Solutions (0.9) (0.6) (5.0) (11.9)
Other (24.1) (28.5) (68.0) (36.4)
Foreign exchange 2.5 (1.8) 6.1 (6.1)
--------- --------- --------- ---------
Total $ 171.1 $ 158.5 $ 325.9 $ 320.8
========= ========= ========= =========
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 June 30, 2008
-------------------------------------------
Earnings
Before Diluted
Income Pre-tax Net Earnings
Taxes Margin Earnings Per Share
---------- --------- ---------- ----------
GAAP basis measures $ 171.1 21.6% $ 97.8 $ 0.69
Non-GAAP adjustments:
One-time transition expenses 3.9 0.5% 2.2 0.02
Interest on new debt & other 5.2 0.6% 3.0 0.02
---------- --------- ---------- ----------
Total Non-GAAP adjustments 9.1 1.1% 5.2 0.04
---------- --------- ---------- ----------
Non-GAAP measures $ 180.2 22.7% $ 103.0 $ 0.73
========== ========= ========== ==========
Three Months Ended June 30, 2007
-------------------------------------------
Earnings
Before Diluted
Income Pre-tax Net Earnings
Taxes Margin Earnings Per Share
---------- --------- ---------- ----------
GAAP basis measures $ 158.5 20.5% $ 98.7 $ 0.71
Non-GAAP adjustments:
One-time transition expenses 14.0 1.8% 8.7 0.06
Interest on new debt & other 10.5 1.4% 6.6 0.05
---------- --------- ---------- ----------
Total Non-GAAP adjustments 24.5 3.2% 15.3 0.11
---------- --------- ---------- ----------
Non-GAAP measures $ 183.0 23.7% $ 114.0 $ 0.82
========== ========= ========== ==========
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)
Twelve Months Ended June 30, 2008
-------------------------------------------
Earnings
Before Diluted
Income Pre-tax Net Earnings
Taxes Margin Earnings Per Share
---------- --------- ---------- ----------
GAAP basis measures $ 325.9 14.8% $ 192.2 $ 1.36
Non-GAAP adjustments:
One-time transition expenses 13.7 0.6% 8.1 0.06
Interest on new debt & other 30.9 1.4% 18.2 0.13
---------- --------- ---------- ----------
Total Non-GAAP adjustments 44.6 2.0% 26.3 0.19
---------- --------- ---------- ----------
Non-GAAP measures $ 370.5 16.8% $ 218.5 $ 1.55
========== ========= ========== ==========
Twelve Months Ended June 30, 2007
-------------------------------------------
Earnings
Before Diluted
Income Pre-tax Net Earnings
Taxes Margin Earnings Per Share
---------- --------- ---------- ----------
GAAP basis measures $ 320.8 15.0% $ 197.1 $ 1.42
Non-GAAP adjustments:
One-time transition expenses 14.0 0.7% 8.6 0.06
Interest on new debt & other 12.3 0.5% 7.6 0.05
---------- --------- ---------- ----------
Total Non-GAAP adjustments 26.3 1.2% 16.2 0.11
---------- --------- ---------- ----------
Non-GAAP measures $ 347.1 16.2% $ 213.3 $ 1.53
========== ========= ========== ==========
Broadridge Financial Solutions, Inc.
Intersegment Transfer Price Reconciliation
(In millions except margin data)
(Unaudited)
Three Months Twelve Months
Ended June 30, Ended June 30,
-------------------- --------------------
2008 2007 2008 2007
--------- --------- --------- ---------
Investor Communication
Solutions
Net revenue as reported $ 630.0 $ 619.4 $ 1,575.2 $ 1,554.2
Transfer pricing adjustment -- -- -- (2.0)
--------- --------- --------- ---------
Net revenue as adjusted -
Non-GAAP $ 630.0 $ 619.4 $ 1,575.2 $ 1,552.2
--------- --------- --------- ---------
EBT as reported $ 165.9 $ 154.2 $ 255.3 $ 226.8
Transfer pricing adjustment -- -- -- (0.7)
--------- --------- --------- ---------
EBT as adjusted - Non-GAAP $ 165.9 $ 154.2 $ 255.3 $ 226.1
--------- --------- --------- ---------
Margin % as reported 26.3% 24.9% 16.2% 14.6%
Margin % as adjusted - Non-GAAP 26.3% 24.9% 16.2% 14.6%
Securities Processing Solutions
Net revenue as reported $ 133.4 $ 130.9 $ 514.4 $ 509.9
Transfer pricing adjustment -- -- -- (6.0)
--------- --------- --------- ---------
Net revenue as adjusted -
Non-GAAP $ 133.4 $ 130.9 $ 514.4 $ 503.9
--------- --------- --------- ---------
EBT as reported $ 27.7 $ 35.2 $ 137.5 $ 148.4
Transfer pricing adjustment -- -- -- (4.3)
--------- --------- --------- ---------
EBT as adjusted - Non-GAAP $ 27.7 $ 35.2 $ 137.5 $ 144.1
--------- --------- --------- ---------
Margin % as reported 20.8% 26.9% 26.7% 29.1%
Margin % as adjusted - Non-GAAP 20.8% 26.9% 26.7% 28.6%
Clearing and Outsourcing
Solutions
Net revenue as reported $ 23.5 $ 25.6 $ 95.8 $ 93.8
Transfer pricing adjustment -- -- -- --
--------- --------- --------- ---------
Net revenue as adjusted -
Non-GAAP $ 23.5 $ 25.6 $ 95.8 $ 93.8
--------- --------- --------- ---------
EBT as reported $ (0.9) $ (0.6) $ (5.0) $ (11.9)
Transfer pricing adjustment -- -- -- 5.0
--------- --------- --------- ---------
EBT as adjusted - Non-GAAP $ (0.9) $ (0.6) $ (5.0) $ (6.9)
--------- --------- --------- ---------
Margin % as reported -3.8% -2.3% -5.2% -12.7%
Margin % as adjusted - Non-GAAP -3.8% -2.3% -5.2% -7.4%
Contact Information: Contact Information Investors: Marvin Sims Broadridge Financial Solutions, Inc. Vice President, Investor Relations (516) 472-5477