Broadridge Reports Second Quarter Fiscal Year 2013 Results

Broadridge Reports Second Quarter Fiscal Year 2013 Results 
Reaffirms Full Year Guidance 
LAKE SUCCESS, NY -- (Marketwire) -- 02/07/13 --  Broadridge Financial
Solutions, Inc. (NYSE: BR) today reported financial results for the
second quarter of its fiscal year 2013. For the three months ended
December 31, 2012, the Company reported revenues of $493 million,
GAAP net earnings from continuing operations of $16 million, Non-GAAP
net earnings from continuing operations of $22 million, GAAP diluted
earnings per share from continuing operations of $0.13 and Non-GAAP
diluted earnings per share from continuing operations of $0.17. This
compares with revenues of $480 million, GAAP net earnings from
continuing operations of $7 million, Non-GAAP net earnings from
continuing operations of $19 million, GAAP diluted earnings per share
from continuing operations of $0.05 and Non-GAAP diluted earnings per
share from continuing operations of $0.15 for the comparable quarter
of the previous fiscal year.  
Our fiscal year 2013 Non-GAAP results exclude the impact of
Acquisition Amortization and Other Costs and restructuring charges.
In addition, our fiscal year 2012 Non-GAAP results exclude the impact
of Acquisition Amortization and Other Costs, an impairment charge,
and IBM Migration costs. The significant Non-GAAP adjustments to our
results are described in more detail below. 
Commenting on the results, Richard J. Daly, Chief Executive Officer,
said, "Overall, I am satisfied with our second quarter results. For
the quarter, our recurring revenues grew 3% in an ongoing challenging
market environment. Although our sales pipeline is as strong as ever,
I am not satisfied with our year-to-date recurring revenue closed
sales results which were down approximately 45% compared with last
year. This is primarily due to a longer than anticipated sales cycle
for pending transactions with revenue greater than $5 million. During
the first half of the year, we did not close any sales with revenue
greater than $5 million, compared to the same period last year when
we closed $22 million of such large sales." He continued, "Due to the
seasonal nature of our business, the first half of the fiscal year
generally contributes less than 20% to our annual earnings results."
Mr. Daly concluded, "We expe
ct to achieve our full year guidance as a
result of our strong sales pipeline including the large pending
sales, 99% client revenue retention rate, the leading market position
our brand and products enjoy, and our continued commitment to drive
cost efficiencies through the organization. With the long and
difficult exit from the Clearing business behind us and event-driven
revenues stabilized near their historical lows, moving forward, we
are highly confident that our clear and executable strategy will
create shareholder value across both our business segments." 
Financial Results for Second Quarter Fiscal Year 2013 
For the second quarter of fiscal year 2013, revenues increased 3% to
$493 million, compared to $480 million for the comparable period last
year. The increase was driven by a positive contribution from
recurring fee revenues of approximately $9 million including net new
business (defined as closed sales less client losses) and higher
distribution revenues of $3 million. GAAP pre-tax margins from
continuing operations of 5.0% increased compared to 2.2% for the same
period last year primarily due to the impact of the $10 million
impairment charge on the Penson Worldwide, Inc. ("Penson") common
stock and $4 million of IBM Migration costs in the prior year.
Non-GAAP pre-tax margins from continuing operations were 6.9%
compared to 6.3% for the same period last year. 
For the second quarter of fiscal year 2013, GAAP net earnings from
continuing operations of $16 million increased 132%, compared to $7
million for the same period last year, primarily due to the impact of
the aforementioned Penson impairment charge and IBM Migration costs
in the prior year. Non-GAAP net earnings from continuing operations
were $22 million. GAAP diluted earnings per share from continuing
operations increased to $0.13 per share, compared to $0.05 per share
in the second quarter of fiscal year 2012. Non-GAAP diluted earnings
per share from continuing operations were $0.17 compared to $0.15 in
the second quarter of fiscal year 2012. The Penson impairment charge
and IBM Migration costs decreased GAAP diluted earnings per share by
$0.05 and $0.02, respectively in the prior year. 
Analysis of Second Quarter Fiscal Year 2013 
Investor Communication Solutions 
Revenues for the Investor Communication Solutions segment increased
$10 million, or 3%, to $327 million in the second quarter of fiscal
year 2013 compared to the second quarter of fiscal year 2012. Higher
recurring fee revenues contributed $7 million and higher distribution
revenues contributed $3 million. The positive contribution from
recurring fee revenues was driven primarily by net new business and
internal growth. Operating margin increased by 1.7 percentage points
to 5.0% as a result of higher recurring revenues and cost containment
efforts. 
Securities Processing Solutions 
Revenues for the Securities Processing Solutions segment increased $3
million, or 2%, to $164 million in the second quarter of fiscal year
2013 compared to the second quarter of fiscal year 2012. The increase
was driven by net new business offset by lower trade volumes and the
decline in revenues resulting from the new outsourcing services
contract with Apex Clearing Corporation ("Apex") replacing the
terminated outsourcing services contract with Penson. Operating
margin decreased, as expected, by 0.3 percentage points to 12.2% as a
result of revenue mix. 
Other 
Pre-tax loss from continuing operations decreased by $8 million in
the second quarter of fiscal year 2013, primarily due to the Penson
impairment charge of $10 million in the same period last year. 
Financial Results for Year-to-Date Fiscal Year 2013 
For the six months ended December 31, 2012, revenues increased $33
million, or 3%, to $989 million, compared to $956 million for the
comparable period last year. The increase was driven by a positive
contribution from recurring fee revenues of approximately $19 million
including net new business, acquisitions, higher distribution
revenues of $11 million and higher event-driven fee revenues of $5
million. GAAP pre-tax margins from continuing operations of 5.4%
improved compared to 3.8% for the same period last year as a result
of the $10 million Penson impairment charge 
and $7 million of IBM
Migration costs in the same period last year. Non-GAAP pre-tax
margins from continuing operations were 7.0% compared to 6.9% in the
same period last year. 
For the six months ended December 31, 2012, GAAP net earnings from
continuing operations of $34 million increased 45% compared to $24
million in the comparable period last year. Non-GAAP net earnings
from continuing operations were $44 million compared to $42 million
in the comparable period last year. GAAP diluted earnings per share
from continuing operations increased to $0.27 per share compared to
$0.19 per share for the comparable period last year. Non-GAAP diluted
earnings per share from continuing operations were $0.35 per share
compared to $0.33 per share for the comparable period last year. The
Penson impairment charge and IBM Migration costs decreased GAAP
diluted earnings per share by $0.05 and $0.03, respectively in the
same period last year. 
During the first six months of fiscal year 2013, our recurring
revenue closed sales of $34 million decreased 45% from last year's
comparable period. Free cash flow was $55 million. In addition, the
Company repurchased approximately 3.9 million shares of Broadridge
common stock under its stock repurchase plan at an average price of
approximately $23.44 per share, and there remain approximately 5.9
million shares available for purchase under the stock repurchase plan
as of December 31, 2012. 
Fiscal Year 2013 Financial Guidance 
We are reaffirming our full year guidance. We anticipate recurring
revenue growth in the range of 4% to 7% and total revenue growth in
the range of 3% to 4%, GAAP earnings from continuing operations
before income taxes margins in the range of 13.8% to 14.4%, and
Non-GAAP earnings from continuing operations before income taxes
margins in the range of 15.1% to 15.7%.  
We anticipate GAAP diluted earnings per share from continuing
operations in the range of $1.60 to $1.70, and Non-GAAP diluted
earnings per share from continuing operations in the range of $1.76
to $1.86, based on diluted weighted-average shares outstanding of
approximately 128 million shares. Our free cash flow is expected to
be in the range of approximately $200 million to $250 million. Our
recurring revenue closed sales are expected to be in the range of
$110 million to $150 million. 
The Non-GAAP earnings margins guidance range excludes the projected
impact of Acquisition Amortization and Other Costs and restructuring
charges. The Non-GAAP pre-tax earnings margins and diluted earnings
per share guidance ranges increased from the guidance we provided in
August 2012 as a result of the exclusion of the impact of Acquisition
Amortization and Other Costs which was not excluded in the guidance
we provided in August 2012. Our guidance does not take into
consideration the effect of any future acquisitions, additional debt
or share repurchases. 
Description of Non-GAAP Adjustments: 
Non-GAAP Measures  
In certain circumstances, results have been presented that are not
generally accepted accounting principles measures ("Non-GAAP") and
should be viewed in addition to, and not as a substitute for, the
Company's reported results. Net earnings, diluted earnings per share
and pre-tax earnings margins excluding Acquisition Amortization and
Other Costs, Restructuring and Impairment Charges and IBM Migration
costs are Non-GAAP measures. These measures are adjusted to exclude
costs incurred by the Company in connection with amortization and
other charges associated with the Company's acquisitions, the
termination of the Outsourcing Services Agreement with Penson and the
migration of its data center to IBM, as Broadridge believes this
information helps investors understand the effect of these items on
reported results and provides a better representation of our actual
performance. Free cash flow is a Non-GAAP measure and is defined as
cash flow from operating activities, less capital expenditures and
purchases of intangibles. Management believes this Non-GAAP measure
provides investors with a more complete understanding of Broadridge's
underlying operational results. These Non-GAAP measures are
indicators that management uses to provide additional meaningful
comparisons between current results and prior reported results, and
as a basis for planning and forecasting for future periods.
Accompanying this release is a reconciliation of Non-GAAP measures to
the comparable GAAP measures.  
Acquisition Amortization and Other Costs 
Acquisition Amortization and Other Costs represents amortization
charges associated with intangible asset values as well as other deal
costs associated with the Company's acquisitions. Our Non-GAAP
results exclude the impact of the costs the Company incurred in
connection with acquisitions. The Acquisition Amortization and Other
Costs are recorded in our Cost of revenues in the Condensed
Consolidated Statements of Earnings for the three and six months
ended December 31, 2012 and 2011, respectively. 
Restructuring and Impairment Charges 
For the three and six months ended December 31, 2012, there were $4
million in pre-tax charges primarily related to restructuring charges
as a result of the termination of the Outsourcing Services Agreement
with Penson. These charges are recorded in our Other segment and Cost
of revenues in the Condensed Consolidated Statements of Earnings for
the three and six months ended December 31, 2012. 
In fiscal year 2012, Broadridge reviewed its investment in the Penson
common stock for impairment during the second fiscal quarter ended
December 31, 2011. Based on the Company's review, factoring in the
level of decline in the fair value of the Penson common stock,
management determined that the market value of the Penson common
stock would not equal or exceed the cost basis of its investment
within a reasonable period of time. After consideration of the
severity and duration of this decline in fair value as well as the
reasons for the decline in value, the Company recorded an
other-than-temporary impairment charge of $10 million in the Other
segment in the Condensed Consolidated Statements of Earnings at
December 31, 2011, and established a new cost basis for this
investment. 
IBM Migration Costs 
In March 2010, Broadridge entered into an Information Technology
Services Agreement with International Business Machines ("IBM") under
which IBM provides us with certain aspects of our information
technology infrastructure. Our fiscal year 2012 Non-GAAP results
exclude the impact of the costs the Company incurred in connection
with the migration of our data center to IBM (the "Migration"). The
Migration costs are recorded in our Other segment and Cost of
revenues in the Condensed Consolidated Statements of Earnings for the
six months ended December 31, 2011. The more significant mainframe
Migration was successfully completed at the end of our 2012 fiscal
year resulting in a pre-tax charge of $25 million.  
Earnings Conference Call  
An analyst conference call will be held today, Thursday, February 7th
at 8:30 a.m. ET. A live webcast of the call will be available to the
public on a listen-only basis. To listen to the webcast and view the
slide presentation, go to www.broadridge-ir.com and click on the
webcast icon. The presentation will also be available to download and
print approximately one hour before the web
cast. Broadridge's news
releases, current financial information, SEC filings and Investor
Relations presentations are accessible on the same website.  
About Broadridge  
Broadridge Financial Solutions, Inc. (NYSE: BR) is the leading
provider of investor communications and technology-driven solutions
for broker-dealers, banks, mutual funds and corporate issuers
globally. Broadridge's investor communications, securities processing
and operations outsourcing solutions help clients reduce their
capital investments in operations infrastructure, allowing them to
increase their focus on core business activities. With 50 years of
experience, Broadridge's infrastructure underpins proxy voting
services for over 90% of public companies and mutual funds in North
America, and processes more than $4.5 trillion in fixed income and
equity trades per day. Broadridge employs approximately 6,200
full-time associates in 13 countries. For more information about
Broadridge, please visit www.broadridge.com.  
Forward-Looking Statements  
This press release and other written or oral statements made from
time to time by representatives of Broadridge may contain
"forward-looking statements" within the meaning of the Private
Securities Litigation Reform Act of 1995. Statements that are not
historical in nature, and which may be identified by the use of words
like "expects," "assumes," "projects," "anticipates," "estimates,"
"we believe," "could be" and other words of similar meaning, are
forward-looking statements. In particular, information appearing in
the "Fiscal Year 2013 Financial Guidance" section are forward-looking
statements. These statements are based on management's expectations
and assumptions and are subject to risks and uncertainties that may
cause actual results to differ materially from those expressed. These
risks and uncertainties include those risk factors discussed in Part
I, "Item 1A. Risk Factors" of our Annual Report on Form 10-K for the
fiscal year ended June 30, 2012 (the "2012 Annual Report"), as they
may be updated in any future reports filed with the Securities and
Exchange Commission. All forward-looking statements speak only as of
the date of this press release and are expressly qualified in their
entirety by reference to the factors discussed in the 2012 Annual
Report. These risks include: the success of Broadridge in retaining
and selling additional services to its existing clients and in
obtaining new clients; Broadridge's reliance on a relatively small
number of clients, the continued financial health of those clients,
and the continued use by such clients of Broadridge's services with
favorable pricing terms; changes in laws and regulations affecting
the investor communication services provided by Broadridge; declines
in participation and activity in the securities markets; overall
market and economic conditions and their impact on the securities
markets; any material breach of Broadridge security affecting its
clients' customer information; the failure of B
roadridge's outsourced
data center services provider to provide the anticipated levels of
service; any significant slowdown or failure of Broadridge's systems
or error in the performance of Broadridge's services; Broadridge's
failure to keep pace with changes in technology and demands of its
clients; Broadridge's ability to attract and retain key personnel;
the impact of new acquisitions and divestitures; and competitive
conditions. Broadridge disclaims any obligation to update or revise
forward-looking statements that may be made to reflect events or
circumstances that arise after the date made or to reflect the
occurrence of unanticipated events, other than as required by law.  


 
                                                                            
                    Broadridge Financial Solutions, Inc.                    
                Condensed Consolidated Statements of Earnings               
                   (In millions, except per share amounts)                  
                                 (Unaudited)                                
                                                                            
                                        Three Months         Six Months     
                                      Ended December 31,  Ended December 31,
                                        2012      2011      2012      2011  
                                     --------- --------- --------- ---------
Revenues                             $   493.2 $   479.8 $   989.0 $   956.2
                                     --------- --------- --------- ---------
                                                                            
                                                                            
Cost of revenues                         387.6     382.6     777.6     765.4
Selling, general and administrative                                         
 expenses                                 77.2      73.5     150.1     138.2
Impairment charge                           --       9.7        --       9.7
Other expenses, net                        3.7       3.4       8.0       6.1
                                     --------- --------- --------- ---------
  Total expenses                         468.5     469.2     935.7     919.4
                                     --------- --------- --------- ---------
                                                                            
Earnings from continuing operations                                         
 before income taxes                      24.7      10.6      53.3      36.8
Provision for income taxes                 8.9       3.8      19.2      13.3
                                     --------- --------- --------- ---------
Net earnings from continuing                                                
 operations                               15.8       6.8      34.1      23.5
Loss from discontinued operations,                                          
 net of tax benefit                         --        --        --        --
                                     --------- --------- --------- ---------
Net earnings                         $    15.8 $     6.8 $    34.1 $    23.5
                                     ========= ========= ========= =========
                                                                            
Basic Earnings per share:                                                   
Basic earnings per share from                                               
 continuing operations               $    0.13 $    0.05 $    0.28 $    0.19
Basic loss per share from                                                   
 discontinued operations                    --        --        --        --
                                     --------- --------- --------- ---------
Basic earnings per share             $    0.13 $    0.05 $    0.28 $    0.19
                                     ========= ========= ========= =========
                                                                            
Diluted earnings per share:Diluted                                          
 earnings per share from continuing                                         
 operations                          $    0.13 $    0.05 $    0.27 $    0.19
Diluted loss per share from                                                 
 discontinued operations                    --        --        --        --
                                     --------- --------- --------- ---------
Diluted earnings per share           $    0.13 $    0.05 $    0.27 $    0.19
                                     ========= ========= ========= =========
                                                                            
                                                                            
Weighted-average shares outstanding:                                        
  Basic                                  122.0     123.7     123.0     123.7
  Diluted                                125
.5     127.2     126.3     126.9
                                                                            
Dividends declared per common share  $    0.18 $    0.16 $    0.36 $    0.32
                                                                            
                                                                            
                                                                            
                    Broadridge Financial Solutions, Inc.                    
                   Condensed Consolidated Balance Sheets                    
                  (In millions, except per share amounts)                   
                                (Unaudited)                                 
                                                                            
                                                 December 31,    June 30,   
                                                     2012          2012     
                                                 ------------  ------------ 
Assets                                                                      
Current assets:                                                             
  Cash and cash equivalents                      $      259.1  $      320.5 
  Accounts receivable, net of allowance for                                 
   doubtful accounts of $5.1 and $6.5,                                      
   respect
ively                                         305.2         370.7 
  Other current assets                                   89.3          86.2 
                                                 ------------  ------------ 
    Total current assets                                653.6         777.4 
Property, plant and equipment, net                       76.5          79.0 
Goodwill                                                782.6         780.0 
Intangible assets, net                                  126.8         143.3 
Other non-current assets                                216.7         207.9 
                                                 ------------  ------------ 
      Total assets                               $    1,856.2  $    1,987.6 
                                                 ============  ============ 
                                                                            
Liabilities and Stockholders' Equity                                        
Current liabilities:                                                        
  Accounts payable                               $       97.7  $      102.2 
  Accrued expenses and other current liabilities        198.3         260.6 
  Deferred revenues                                      48.4          47.5 
                                                 ------------  ------------ 
    Total current liabilities                           344.4         410.3 
Long-term debt                                          524.4         524.4 
Deferred taxes                                           56.3          63.2 
Deferred revenues                                        41.7          38.3 
Other non-current liabilities                           106.0         100.9 
                                                 ------------  ------------ 
      Total liabilities                               1,072.8       1,137.1 
                                                 ------------  ------------ 
                                                                            
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, 153.8 shares and 152.9                             
   shares, respectively; outstanding, 121.8 and                             
   124.8 shares, respectively                             1.5           1.5 
  Additional paid-in capital                            769.1         739.4 
  Retained earnings                                     676.3         686.1 
  Treasury stock: at cost, 32.0 and 28.1 shares,                            
   respectively                                        (672.7)       (580.0)
  Accumulated other comprehensive income                  9.2           3.5 
                                                 ------------  ------------ 
    Total stockholders' equity                          783.4         850.5 
                                                 ------------  ------------ 
                                                                            
      Total liabilities and stockholders' equity $    1,856.2  $    1,987.6 
                                                 ============  ============ 
                                                                            
                                                                            
                    Broadridge Financial Solutions, Inc.                    
                               Segment Results                              
                                (In millions)                               
                                 (Unaudited)                                
                                                                            
                                                     Revenues               
                                     ---------------------------------------
                                         Three Months         Six Months    
                                      Ended December 31,  Ended December 31,
                                     ------------------- -------------------
                                        2012      2011      2012      2011  
                                     --------- --------- --------- ---------
Investor Communication Solutions     $   326.8 $   316.8 $   666.3 $   629.8
Securities Processing Solutions          163.8     161.1     317.7     319.5
Other                                       --       0.1        --       0.1
Foreign currency exchange                  2.6       1.8       5.0       6.8
                                     --------- --------- --------- ---------
  Total                              $   493.2 $   479.8 $   989.0 $   956.2
                                     ========= ========= ========= =========
                                                                            
                                                                            
                                 Earnings (Loss) from Continuing Operations 
                                             before Income Taxes            
                                 ------------------------------------------ 
                                     Three Months           Six Months      
                                  Ended December 31,    Ended December 31,  
                                 --------------------  -------------------- 
                                    2012       2011       2012       2011   
                                 ---------  ---------  ---------  --------- 
Investor Communication Solutions $    16.5  $    10.6  $    43.7  $    19.0 
Securities Processing Solutions       20.0       20.2       29.4       48.0 
Other                                (15.1)     (22.7)     (27.0)     (35.6)
Foreign currency exchange              3.3        2.5        7.2        5.4 
                                 ---------  ---------  ---------  --------- 
  Total                          $    24.7  $    10.6  $    53.3  $    36.8 
                                 =========  =========  =========  ========= 
                                                                            
                                                                            
                    Broadridge Financial Solutions, Inc.                    
                Reconciliation of Non-GAAP to GAAP Measures                 
                  (In millions, except per share amounts)                   
                                                                            
                                 Earnings from Continuing Operations before 
                                                Income Taxes                
                                 ------------------------------------------ 
                                     Three Months           Six Months      
                                  Ended December 31,    Ended December 31,  
                                 --------------------  -------------------- 
                                    2012       2011       2012       2011   
                                 ---------  ---------  ---------  --------- 
Adjusted Earnings from                                                      
 Continuing Operations before                                               
 Income Taxes (Non-GAAP)         $    34.1  $    30.4  $    68.9  $    66.1 
Acquisition Amortization and                                                
 Other Costs                          (5.8)      (6.4)     (11.3)     (12.7)
Restructuring and Impairment                          
                      
 Charges                              (3.6)      (9.7)      (4.3)      (9.7)
IBM Migration Costs                     --       (3.7)        --       (6.9)
                                 ---------  ---------  ---------  --------- 
Earnings from Continuing                                                    
 Operations before Income Taxes                                             
 (GAAP)                          $    24.7  $    10.6     $ 53.3  $    36.8 
                                 =========  =========  =========  ========= 
Pre-tax Margins (Non-GAAP)             6.9%       6.3%       7.0%       6.9%
Pre-tax Margins (GAAP)                 5.0%       2.2%       5.4%       3.8%
                                                                            
                                                                            
                                   Net Earnings from Continuing Operations  
                                 ------------------------------------------ 
                                     Three Months           Six Months      
                                  Ended December 31,    Ended December 31,  
                                 --------------------  -------------------- 
                                    2012       2011       2012       2011   
                                 ---------  ---------  ---------  --------- 
Adjusted Net Earnings from                                                  
 Continuing Operations (Non-                                                
 GAAP)                           $    21.8  $    19.4  $    44.1  $    42.2 
Acquisition Amortization and                                                
 Other Costs, net of taxes            (3.7)      (4.0)      (7.2)      (8.1)
Restructuring and Impairment                                                
 Charges, net of taxes                (2.3)      (6.2)      (2.8)      (6.2)
IBM Migration Costs, net of                                                 
 taxes                                  --       (2.4)        --       (4.4)
                                 ---------  ---------  ---------  --------- 
Net Earnings from Continuing                                                
 Operations (GAAP)               $    15.8  $     6.8  $    34.1  $    23.5 
                                 =========  =========  =========  ========= 
                                                                            
                                                                            
                                 Diluted Earnings Per Share from Continuing 
                                                 Operations                 
                                 ------------------------------------------ 
                                     Three Months            Six Months     
                                    Ended June 30,      Ended December 31,  
                                 --------------------  -------------------- 
                                    2012       2011       2012       2011   
                                 ---------  ---------  ---------  --------- 
Adjusted Diluted Earnings Per                                               
 Share from Continuing                                                      
 Operations (Non-GAAP)           $    0.17  $    0.15  $    0.35  $    0.33 
Acquisition Amortization and                                                
 Other Costs, net of taxes           (0.03)     (0.03)     (0.06)     (0.06)
Restructuring and Impairment                                                
 Charges, net of taxes               (0.01)     (0.05)     (0.02)     (0.05)
IBM Migration Costs, net of                                                 
 taxes                                  --      (0.02)        --      (0.03)
                                 ---------  ---------  ---------  --------- 
Diluted Earnings Per Share from                                             
 Continuing Operations (GAAP)    $    0.13  $    0.05  $    0.27  $    0.19 
                                 =========  =========  =========  ========= 
                                                                            
                                                                            
                                                                            
                    Broadridge Financial Solutions, Inc.                    
                 Reconciliation of Non-GAAP to GAAP Measures                
               EBIT from Continuing Operations Reconciliation               
                                (In millions)                               
                                                                            
                                                 Q2 YTD         FY13        
                                                  FY13      Guidance Range  
                                                                            
                                                 Actual     Low       High  
                                               --------- --------- ---------
EBIT (Non-GAAP)                                $   65    $   353   $   377  
                                               ========= ========= =========
  EBIT Margins (Non-GAAP)                         6.6%      14.9%     15.7% 
                                               ========= ========= =========
  Acquisition Amortization and Other Costs         11        22        22   
  Interest and Other                               (7)      (17)      (21)  
                                               --------- --------- ---------
Total EBT (Non-GAAP)                               69        358       378  
                                               ========= ========= =========
  EBT Margins (Non-GAAP)                          7.0%      15.1%     15.7% 
  Acquisition Amortization and Other Costs        (11)      (22)      (22)  
  Restructuring Charges                            (4)      (10)      (1
0)  
                                               --------- --------- ---------
Total EBT (GAAP)                                   53        326       346  
                                               ========= ========= =========
  EBT Margins (GAAP)                              5.4%      13.8%     14.4% 

 
NOTE: Amounts in this table may not sum to totals due to rounding. 


 
                                                                            
                    Broadridge Financial Solutions, Inc.                    
                Reconciliation of Non-GAAP to GAAP Measures                 
                         Fiscal Year 2013 Guidance                          
                  (In millions, except per share amounts)                   
                                                                            
                                                               FY13         
                                                        Guidance Range (a)  
                                                             Low High       
                                                       -------------------- 
Adjusted Earnings from Continuing Operations before                         
 Income Taxes (Non-GAAP)                               $     358  $     378 
                                                                            
  Acquisition Amortization and Other Costs                   (22)       (22)
  Restructuring Charges                                      (10)       (10)
                                                                            
                                                       ---------  --------- 
                                                                            
Earnings from Continuing Operations before Income                           
 Taxes (GAAP)                                          $     326  $     346 
                                                       =========  ========= 
                                                                            
Pre-tax Margins (Non-GAAP)                                  15.1%      15.7%
Pre-tax Margins (GAAP)                                      13.8%      14.4%
                                                                            
                                                               FY13         
                                                        Guidance Range (a)  
                                                             Low
 High       
                                                       -------------------- 
Adjusted Diluted EPS from Continuing Operations (Non-                       
 GAAP)                                                 $    1.76  $    1.86 
                                                                            
  Acquisition Amortization and Other Costs                 (0.11)     (0.11)
  Restructuring Charges                                    (0.05)     (0.05)
                                                                            
                                                       ---------  --------- 
                                                                            
Diluted EPS from Continuing Operations (GAAP)          $    1.60  $    1.70 
                                                       =========  ========= 

 
(a) Guidance does not take into consideration the effect of any future
acquisitions, additional debt and/or share repurchases.  


 
                                                                            
                    Broadridge Financial Solutions, Inc.                    
                Reconciliation of Non-GAAP to GAAP Measures                 
                               Free Cash Flow                               
                               (In millions)                                
                                                                            
                                              Q2 YTD           FY13         
                                               FY13     Guidance Range (a)  
                                                                            
                                              Actual      Low        High   
                                            ---------  ---------  --------- 
Net Earnings from Continuing Operations                                     
 (GAAP)                                     $      34  $     205  $     218 
  Depreciation and amortization (includes                                   
   other LT assets)                                48         95        105 
  Stock-based compensation expense                 13         31         31 
  Other                                            (5)        (5)         5 
                                            ---------  ---------  --------- 
Subtotal                                           90        326        359 
                                                                            
  Working capital changes                          (1)       (15)       (15)
  Long-term assets & liabilities changes          (15)       (60)       (50)
                                            ---------  ---------  --------- 
                                                                            
Net cash flow provided by continuing                                        
 operating activities       
                       74        251        294 
                                                                            
Cash Flows From Investing Activities                                        
  Capital expenditures and software                                         
   purchases                                      (19)       (55)       (45)
                                            ---------  ---------  --------- 
                                                                            
Free cash flow (Non-GAAP)                   $      55  $     196  $     249 
                                            =========  =========  ========= 

 
(a) Guidance does not take into consideration the effect of any future
acquisitions, additional debt and/or share repurchases.  
Contact Information 
Investors: 
David Ng
Broadridge Financial Solutions, Inc. 
Senior Director, Investor Relations 
(516) 472-5491 
 
 
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