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Broadridge Financial Solutions 8-K Report, Financial Results (May 8, 2024)

Reports
Earnings & Results·Exhibits & Filings
Filing Date
Filed May 8, 2024
Period End
May 8, 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 May 8, 2024. Cited figures are marked; the original filing is the authoritative source.

Broadridge Financial Solutions, Inc. (NYSE: BR) reported results for the third quarter of fiscal 2024, ended March 31, 2024, in a press release furnished as Exhibit 99.1.

Recurring revenues rose 4% to $1,126 milliona, with constant currency growth also at 4%, and total revenues increased 5% to $1,726 million. Diluted EPS grew 7% to $1.79, and Adjusted EPS increased 9% to $2.23. Operating income rose 6% to $303 million, and Adjusted Operating income rose 7% to $370 million, with the Adjusted Operating income margin at 21.4%.

Closed sales rose 29% to $80 millionb in the quarter and 19% to $185 million for the nine months. For fiscal 2024, management expects Recurring revenue growth at constant currency at the low end of its 6-9% guidance range, Adjusted EPS growth at the middle of its 8-12% range, and record Closed sales of $280-320 million. The Adjusted Operating income margin guidance of approximately 20% is unchanged.

Management also reaffirmed its objective of 100% free flow conversion, which it says positions the company to return additional capital to shareholders while funding tuck-in M&A. Nine-month Free cash flow (non-GAAP) was $258.6 millionc, compared with $47.3 million in the prior-year period.

The filing notes that third-quarter results were modestly affected by the timing of annual meetings, and that the Litigation Settlement Charge of $8.2 milliond and Restructuring and Other Related Costs of $7.0 million were excluded from Adjusted measures. Equity proxy and mutual fund communication timing shifted some Regulatory revenue into the fiscal fourth quarter.

02—Key points

Key Highlights

  1. Diluted EPS rose 7% to $1.79 in Q3 FY2024 from $1.67; Adjusted EPS rose 9% to $2.23 from $2.05.
  2. Recurring revenues grew 4% to $1,126 million, all organic, with Global Technology and Operations recurring revenues up 9% and Investor Communication Solutions recurring revenues up 1%.
  3. Total revenues increased 5% to $1,726 million, supported by Event-driven revenues up 29% to $67 million on equity proxy contests.
  4. Closed sales rose 29% to $80 million in the quarter and 19% to $185 million year to date.
  5. Fiscal 2024 guidance: Recurring revenue growth at constant currency at the low end of 6-9%, Adjusted EPS growth at the middle of 8-12%, and Closed sales of $280-320 million; Adjusted Operating income margin of approximately 20% is unchanged.
  6. Nine-month Free cash flow (non-GAAP) was $258.6 million versus $47.3 million a year earlier, and management reaffirmed a full-year objective of 100% free flow conversion.
  7. Net earnings rose 8% to $214 million in the quarter and 22% to $375 million for the nine months; a $8.2 million Litigation Settlement Charge and $7.0 million in restructuring costs were excluded from Adjusted results.

03—Questions

Frequently Asked Questions

  1. How did Broadridge perform in the third quarter of fiscal 2024?

    Recurring revenues grew 4% to $1,126 million and total revenues rose 5% to $1,726 million. Diluted EPS was $1.79, up 7%, and Adjusted EPS was $2.23, up 9%. Operating income increased 6% to $303 million.

  2. What is the company's fiscal 2024 outlook?

    Management expects Recurring revenue growth at constant currency at the low end of its 6-9% range, Adjusted EPS growth at the middle of its 8-12% range, and record Closed sales of $280-320 million. The Adjusted Operating income margin is expected to be approximately 20%.

  3. What factors affected third-quarter results?

    The company said results were modestly impacted by the timing of annual meetings. Equity proxy and mutual fund communication timing shifted some Regulatory revenue into the fiscal fourth quarter. Event-driven revenues rose 29% to $67 million, driven by equity proxy contests.

  4. What did the company say about capital returns?

    Management reaffirmed its full-year objective of 100% free flow conversion, which it said positions Broadridge to return additional capital to shareholders while funding tuck-in M&A. Nine-month Free cash flow was $258.6 million, and the filing shows dividends paid of $273.9 million and treasury stock purchases of $161.8 million for the nine months.

  5. What are the main risks the filing identifies?

    The filing lists forward-looking risks including changes in laws affecting clients, reliance on a relatively small number of clients, cybersecurity attacks, declines in securities market activity, reliance on key service providers, system failures, and competitive conditions. It refers investors to the Risk Factors section of the Annual Report on Form 10-K for the fiscal year ended June 30, 2023.

04—Continue

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