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Broadridge Financial Solutions 8-K Report, Financial Results (Aug 6, 2024)

Reports
Earnings & Results·Other Events·Exhibits & Filings
Filing Date
Filed August 6, 2024
Period End
August 6, 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 August 6, 2024. Cited figures are marked; the original filing is the authoritative source.

Broadridge Financial Solutions, Inc. (NYSE: BR) reported fiscal fourth-quarter and full-year 2024 results (fiscal year ended June 30, 2024) in an 8-K furnished on August 6, 2024.

For fiscal 2024, total revenues rose 7% to $6,507 milliona and recurring revenues rose 6% to $4,223 million, with recurring revenue growth at 6% on a constant currency basis. Operating income increased 9% to $1,017 million, and diluted EPS increased 11% to $5.86. Adjusted EPS, a non-GAAP measure, rose 10% to $7.73.

Closed sales rose 39% to a record $342 millionb. Fourth-quarter total revenues rose 6% to $1,944 million, while fourth-quarter operating income declined 3% to $441 million, reflecting higher restructuring and litigation settlement charges. The company generated free cash flow of $943.2 million, a 102% free cash flow conversion rate, and returned capital through $368.2 million of dividends paid and $485.4 million of treasury stock purchases during the year.

Management noted repurchasing $450 millionc of shares and announcing three tuck-in acquisitions in fiscal 2024, including the proposed Kyndryl Securities Industry Services business for approximately $200 million. The Board declared a quarterly dividend of $0.88 per share, payable October 3, 2024, to holders of record on September 12, 2024, reflecting a 10% increase in the annual dividend from $3.20 to $3.52 per share. For fiscal 2025, the company guided to 5-7% recurring revenue growth on a constant currency basis, approximately 20% Adjusted Operating income margin (non-GAAP), 8-12% Adjusted EPS growth (non-GAAP), and closed sales of $290-$330 million.

02—Key points

Key Highlights

  1. Fiscal 2024 total revenues increased 7% to $6,507 million; recurring revenues increased 6% to $4,223 million.
  2. Record closed sales of $342 million, up 39% from $246 million in fiscal 2023.
  3. Diluted EPS rose 11% to $5.86; Adjusted EPS (non-GAAP) rose 10% to $7.73.
  4. Fourth-quarter operating income fell 3% to $441 million, with operating income margin of 22.7% versus 24.7%, due to higher restructuring and litigation settlement charges.
  5. Free cash flow (non-GAAP) of $943.2 million, representing 102% free cash flow conversion; $450 million of share repurchases in fiscal 2024.
  6. Board approved a 10% increase in the annual dividend to $3.52 per share, the 18th consecutive annual increase since becoming a public company in 2007.
  7. Fiscal 2025 guidance: 5-7% recurring revenue growth (constant currency), approximately 20% Adjusted Operating income margin, 8-12% Adjusted EPS growth, and closed sales of $290-$330 million.

03—Questions

Frequently Asked Questions

  1. How did Broadridge perform in fiscal 2024?

    Total revenues rose 7% to $6,507 million and recurring revenues rose 6% to $4,223 million. Operating income increased 9% to $1,017 million, and diluted EPS increased 11% to $5.86. Adjusted EPS, a non-GAAP measure, increased 10% to $7.73.

  2. Why did fourth-quarter operating income decline?

    Fourth-quarter operating income decreased $13 million, or 3%, to $441 million. The filing attributes the decline to higher operating expenses, including Restructuring and Other Related Costs and Litigation Settlement Charges, which more than offset growth in recurring and event-driven revenues. Adjusted Operating income, which excludes these items, increased 5% to $559 million.

  3. What is the dividend and what changed?

    The Board declared a quarterly dividend of $0.88 per share, payable October 3, 2024 to stockholders of record on September 12, 2024. This reflects a 10% increase in the annual dividend from $3.20 to $3.52 per share. Future dividends remain at the Board's discretion.

  4. What does the company expect for fiscal 2025?

    Guidance calls for 5-7% recurring revenue growth on a constant currency basis, Adjusted Operating income margin of approximately 20%, 8-12% Adjusted EPS growth, and closed sales of $290-$330 million. GAAP diluted EPS growth is guided at 20-25%.

  5. What acquisitions did Broadridge make or announce?

    Broadridge announced three acquisitions: the proposed Kyndryl Securities Industry Services business for approximately $200 million, AdvisorTarget for $35 million plus contingent consideration (closed June 1, 2024), and CompSci Resources, which the company does not expect to have a material impact on its results. The filing states that the Kyndryl SIS deal is expected to contribute $80 to $85 million in annual revenue upon closing.

04—Continue

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