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Broadridge Financial Solutions 8-K Report, Regulation FD Disclosure (Feb 29, 2024)

Reports
Regulation FD·Exhibits & Filings
Filing Date
Filed February 29, 2024
Period End
February 28, 2024
Security
BR
In the record · 2016–202610-K1110-Q338-K224

BR filed 11 annual reports (10-K), 33 quarterly reports (10-Q) and 224 current reports (8-K) between 2016 and 2026.

  1. Material agreement8-K · Feb ’17Feb ’17
  2. Material agreement8-K · Jan ’20Jan ’20
  3. Leadership change8-K · Aug ’22Aug ’22
  4. Leadership change8-K · Jun ’26Jun ’26

01—Abstract

Summary

Summary of the 8-K filed February 29, 2024. Cited figures are marked; the original filing is the authoritative source.

On February 28, 2024, Broadridge Financial Solutions, Inc. posted its February 2024 investor presentation to its website, and the company furnished it as Exhibit 99.1 to this Current Report on Form 8-K under Item 7.01 (Regulation FD Disclosure).

The information is not deemed "filed" for purposes of Section 18 of the Exchange Act. The presentation reviews fiscal second-quarter 2024 results, which the filing says were announced on the February 1, 2024 earnings call. Total revenues were $1,405 milliona, up 9% from $1,293 million, and recurring revenues were $899 million, up 7% from $840 million.

Recurring revenue growth was 6% in constant currency. Diluted EPS rose 23% to $0.59b, while adjusted EPS (non-GAAP) was $0.92 versus $0.91, up 1%. Closed sales were $58 million, down 11% from $65 million.

The company reaffirmed its fiscal 2024 guidance, which calls for recurring revenue growth of 6-9%c in constant currency, adjusted EPS growth of 8-12%, and GAAP diluted EPS growth of 15-20%. Adjusted operating income margin is guided to approximately 20%, and GAAP operating income margin to approximately 16%. The presentation also restates fiscal 2024-2026 objectives: organic recurring revenue growth of 5-8%, recurring revenue growth in constant currency of 7-9%, adjusted operating income margin expansion of 50+ basis points per year, and adjusted EPS growth of 8-12%.

Management also cites a target of 100%d free cash flow conversion, which was 110% on a last-twelve-months basis as of the second quarter. Capital return remains central to the message.

The presentation shows a fiscal 2024 annual dividend of $3.20 per share, which is subject to Board declaration, and year-to-date dividends paid of $180 million and open-market share repurchases of $150 million, net of option proceeds. Investors should note that the presentation relies on non-GAAP measures, and that its forward-looking statements are subject to the risks described in the company's Form 10-K for the fiscal year ended June 30, 2023.

02—Key points

Key Highlights

  1. Q2 fiscal 2024 total revenues of $1,405 million, up 9% from $1,293 million; recurring revenues of $899 million, up 7% from $840 million.
  2. Recurring revenue growth of 6% in constant currency (non-GAAP), with equity position growth of 6% and mutual fund/ETF position growth of 5%, per management's key messages.
  3. Q2 GAAP diluted EPS of $0.59, up 23% from $0.48; adjusted EPS (non-GAAP) of $0.92 versus $0.91, up 1%.
  4. Closed sales of $58 million, down 11% from $65 million in the prior-year quarter.
  5. Fiscal 2024 guidance reaffirmed: recurring revenue growth of 6-9% in constant currency, adjusted EPS growth of 8-12%, and GAAP diluted EPS growth of 15-20%.
  6. Fiscal 2024-2026 objectives include 5-8% organic recurring revenue growth, 8-12% adjusted EPS growth, and 50+ basis points of annual adjusted operating income margin expansion.
  7. Capital returns: fiscal 2024 annual dividend of $3.20 per share (subject to Board declaration); year-to-date dividends of $180 million and share repurchases of $150 million, net of option proceeds.

03—Questions

Frequently Asked Questions

  1. What were Broadridge's fiscal second-quarter 2024 results?

    Total revenues were $1,405 million, up 9% from $1,293 million. Recurring revenues were $899 million, up 7% from $840 million, or 6% in constant currency. GAAP operating income was $124 million, up 15%, and adjusted operating income was $174 million, up 1%. Diluted EPS was $0.59, up 23%, and adjusted EPS was $0.92, up 1%.

  2. What is Broadridge's fiscal 2024 guidance?

    The company reaffirmed guidance for recurring revenue growth of 6-9% in constant currency, adjusted EPS growth of 8-12%, and GAAP diluted EPS growth of 15-20%. It expects an adjusted operating income margin of approximately 20% and a GAAP operating income margin of approximately 16%. Closed sales are guided to $280-$320 million.

  3. What long-term objectives did Broadridge reiterate for fiscal 2024-2026?

    The objectives are 5-8% organic recurring revenue growth, 7-9% recurring revenue growth in constant currency, adjusted operating income margin expansion of 50+ basis points per year, and 8-12% adjusted EPS growth. These were set at the company's 2023 Investor Day.

  4. How much cash is Broadridge returning to shareholders?

    The presentation shows a fiscal 2024 annual dividend of $3.20 per share, subject to Board declaration. Year-to-date fiscal 2024 dividends paid were $180 million and open-market share repurchases were $150 million, net of option proceeds. The company's capital allocation priorities include growing the dividend in line with earnings and targeting a 45% dividend payout ratio.

  5. Why is this filing an 8-K, and is the presentation considered filed?

    The company furnished its February 2024 investor presentation under Item 7.01 (Regulation FD Disclosure) as Exhibit 99.1. The filing states that this information is not deemed filed for purposes of Section 18 of the Exchange Act and is not incorporated by reference into Securities Act or Exchange Act filings unless specifically stated.

04—Continue

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