01—Abstract
Summary
Summary of the 10-K filed August 6, 2024. Cited figures are marked; the original filing is the authoritative source.
Broadridge Financial Solutions, Inc. (BR) reported fiscal year 2024 (ended June 30, 2024) revenues of $6,506.8 milliona, up $445.9 million, or 7%, from $6,060.9 million.
Operating income rose to $1,017.1 millionb from $936.4 million, and net earnings increased to $698.1 million from $630.6 million, with diluted earnings per share of $5.86 versus $5.30. Recurring revenues grew $235.9 million, or 6%, to $4,222.6 million, event-driven revenues rose $74.2 million, or 35%, to $285.2 million, and distribution revenues rose $135.9 million, or 7%, to $1,999.0 million, with postage rate increases of approximately $116.3 million a key driver. Non-GAAP Adjusted Earnings per share was $7.73 versus $7.01, and free cash flow was $943.2 million versus $748.2 million.
Results were affected by the Corporate Restructuring Initiative, which carried $63.0 millionc of Restructuring and Other Related Costs, and $18.4 million of Litigation Settlement Charges. Earnings before income taxes for Investor Communication Solutions rose 17% to $950.4 million, while Global Technology and Operations fell 6% to $173.3 million, reflecting higher amortization and depreciation of $62.8 million. Cash flow from operating activities was $1,056.2 million, and the company repurchased shares for $485.4 million, while paying dividends of $368.2 million.
Total debt was $3,355.1 milliond at June 30, 2024, and the revolving credit facility had $1,500.0 million of unused capacity. The company also announced on August 5, 2024 a quarterly dividend increase of $0.08 per share to $0.88, which raises the expected annual dividend from $3.20 to $3.52 per share. A proposed acquisition of Kyndryl Securities Industry Services, with a total purchase price of approximately $200 million, was pending regulatory approvals at the time of filing.
02—Key points
Key Highlights
- Revenues rose $445.9 million, or 7%, to $6,506.8 million, led by recurring revenues of $4,222.6 million (up 6%) and event-driven revenues up 35% on higher mutual fund proxy activity.
- Net earnings increased to $698.1 million from $630.6 million; diluted EPS was $5.86 versus $5.30, and Adjusted EPS (non-GAAP) was $7.73 versus $7.01.
- Operating margin was 15.6% versus 15.4%, while Adjusted Operating income margin (non-GAAP) was 20.0% versus 19.8%.
- Investor Communication Solutions pre-tax earnings rose 17% to $950.4 million, while Global Technology and Operations pre-tax earnings fell 6% to $173.3 million.
- Free cash flow (non-GAAP) was $943.2 million versus $748.2 million, and the company repurchased $485.4 million of stock and paid $368.2 million in dividends.
- Restructuring and Other Related Costs of $63.0 million and Litigation Settlement Charges of $18.4 million weighed on GAAP results in fiscal 2024.
- The Board raised the quarterly dividend to $0.88 per share on August 5, 2024, from $0.80.
03—One dollar
Follow one dollar
Of each $1.00 of revenue in FY2024, Broadridge Financial Solutions kept $0.11.
- Revenue$6.51B100.0%
- Cost of revenue−$4.57B70.3%
- Gross profit$1.93B29.7%
- Operating costs−$916.8M14.1%
- Operating income$1.02B15.6%
- Interest, other & tax−$319.0M4.9%
- Net income$698.1M10.7%
Where FY2024 revenue went
$6.51B- Cost of revenue: $4.57B, 70% of revenue
- SG&A: $916.8M, 14% of revenue
- Net income: $698.1M, 11% of revenue
- Interest, other & tax: $319.0M, 4.9% of revenue
Kept 11% as net income
Full revenue history →04—Financials
Financial Highlights
Figures from 10-KFY2024filed August 6, 2024Financial Statements
FY2024 against FY2023
| Line item | FY2024FY2023 | Change |
|---|---|---|
| Revenue | $6.51B$6.06B | +7.4% |
| Cost of Revenue | $4.57B$4.28B | +7.0% |
| Gross Profit | $1.93B$1.79B | +8.3% |
| SG&A Expenses | $916.80M$849.00M | +8.0% |
| Operating Expenses | $5.49B$5.12B | +7.1% |
| Operating Income | $1.02B$936.40M | +8.6% |
| Interest Expense | $150.20M$143.70M | +4.5% |
| Net Income | $698.10M$630.60M | +10.7% |
| EPS (Basic) | $5.93$5.36 | +10.6% |
| EPS (Diluted) | $5.86$5.30 | +10.6% |
| Shares Outstanding (Basic) | 117.70M117.70M | 0.0% |
| Shares Outstanding (Diluted) | 119.10M119.00M | +0.1% |
05—Questions
Frequently Asked Questions
How did Broadridge's revenue and earnings change in fiscal 2024?
Revenues increased $445.9 million, or 7%, to $6,506.8 million. Net earnings rose to $698.1 million from $630.6 million, and diluted EPS rose to $5.86 from $5.30.
What drove the growth in the Investor Communication Solutions segment?
Segment revenues rose $322.3 million to $4,857.9 million, and pre-tax earnings rose $138.9 million to $950.4 million. Growth came from recurring revenues, event-driven revenues up $74.2 million, and distribution revenues that rose $135.9 million partly because of postage rate increases of approximately $116.3 million.
Why did Global Technology and Operations earnings decline?
Segment revenues rose $123.7 million to $1,648.9 million, but pre-tax earnings fell $10.6 million to $173.3 million, as higher expenses included an increase of $62.8 million in amortization and depreciation.
What is the company's debt and liquidity position?
Total debt was $3,355.1 million at June 30, 2024, and cash and cash equivalents were $304.4 million. The $1,500.0 million revolving credit facility had full unused capacity of $1,500.0 million at year end.
What changed in the dividend and share repurchase activity?
The Board increased the quarterly dividend by $0.08 per share to $0.88, lifting the expected annual dividend to $3.52 from $3.20. The company repurchased 2.5 million shares for $488.1 million during the fiscal year, and 7,251,347 shares remained available under the repurchase program at June 30, 2024.
06—Continue