Attached files
| file | filename |
|---|---|
| 8-K - FORM 8-K - BROADRIDGE FINANCIAL SOLUTIONS, INC. | d433195d8k.htm |
| EX-99.1 - PRESS RELEASE DATED NOVEMBER 6, 2012 - BROADRIDGE FINANCIAL SOLUTIONS, INC. | d433195dex991.htm |
 ©
2012 Broadridge Financial Solutions, Inc.
Broadridge and the Broadridge logo are registered trademarks of Broadridge
Financial Solutions, Inc. November 6, 2012
Earnings Webcast & Conference Call
First Quarter 2013
Exhibit 99.2 |
 1
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
Broadridge’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.
Non-GAAP Financial 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 and
Penson Charges, net 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, and the termination of the Penson outsourcing services
agreement, 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. Use of Material Contained Herein
The
information
contained
in
this
presentation
is
being
provided
for
your
convenience
and
information
only.
This
information
is
accurate
as of the date of its initial presentation. If you plan to use this
information for any purpose, verification of its continued accuracy is your
responsibility. Broadridge assumes no duty to update or revise the
information contained in this presentation. You may reproduce
information contained in this presentation provided you do not alter, edit, or
delete any of the content and provided you identify the source of the
information as Broadridge Financial Solutions, Inc., which owns the copyright.
Broadridge and the Broadridge logo are registered trademarks of Broadridge
Financial Solutions, Inc. |
 2
Today’s Agenda
Opening Remarks and Other
Rich Daly, CEO
Key Topics
First Quarter 2013
Dan Sheldon, CFO
Highlights and Segment Results
Summary
Rich Daly, CEO
Q&A
Rich Daly, CEO
Dan Sheldon, CFO
Closing Remarks
Rich Daly, CEO |
 3
Opening Remarks
Key Topics:
Financial Highlights
Closed Sales Performance
Key Activities Update |
 4
Financial Highlights
Recurring revenues for the quarter were up 3%
Total revenue was up 4%
Higher than anticipated event-driven and related distribution revenues were
partially offset by lower than anticipated trade volumes
Non-GAAP diluted earnings per share (EPS) of $0.18 were flat
GAAP diluted EPS of $0.14 were slightly higher
•
Primarily due to increased revenues and cost containment
Opportunistically
repurchased
~3.2M
shares
for
$76M
at
an
average
cost
of $23.61 per share
~7M
shares
available
for
repurchase
under
share
repurchase
plans
as
of
end
of
1st
quarter
Reaffirming fiscal year 2013 guidance
4-7% recurring revenue growth
$1.60-1.70 GAAP diluted EPS
$1.76-1.86 Non-GAAP diluted EPS
•
Excludes Acquisition Amortization and Other Costs and Penson Charges, net, $0.04
per share for Q1 and projected $0.16 per share for FY13
|
 5
Closed Sales Performance
Recurring revenue closed sales for the quarter were down ~30%
No large transactions >$5M, one $7M ICS closed sale in prior year
Recurring revenue closed sales from transactions less than $5M
were up ~8%
Pipeline remains strong/very good momentum
Due to product expansion, acquisitions, strong brand…
Hired new Chief Revenue Officer to further accelerate growth
Reaffirming fiscal year 2013 recurring revenue closed sales guidance of
$110-150M
•
ICS recurring revenue closed sales were $6M vs. $8M in prior year
•
SPS recurring revenue closed sales were $8M vs. $5M in prior year
|
 6
Key Activities Update
Penson/Apex and COR Clearing
Substantially completed Apex conversion
Approximately 100 Apex correspondents expected to move to COR Clearing
Finalizing contract with COR Clearing to become Outsourcing client
Expect
net
revenue
win.
COR
Clearing
also
expected
to
become
an
ICS
client
across
multiple products
Penson Canada and Questrade
Penson Canada expected to wind down its operations
As a result, signed Penson Canada’s largest correspondent –
Questrade –
as a new
client on our Outsourcing platform
Large percentage of Penson Canada clients are moving to Questrade or another
clearing firm which is already on our technology platform
No material impact anticipated to FY13 guidance
Launched
Broadridge
Fluent
Enables financial services firms to distribute marketing, transactional and
regulatory communications into their clients’
preferred channel
Significantly enhances customer engagement, insight and interactivity
>20 clients already using components of this service including Morgan Stanley
Wealth Management and UBS Financial Services
SM |
 7
Non-GAAP EPS Guidance
Reconciliation of EPS Guidance
1Q12
1Q13
FY12
FY13 Range
Actual
Actual
Actual
Low
High
Guidance Provided in August 2012 -
Diluted EPS (Non-GAAP)
$0.15
$0.15
$1.55
$1.65
$1.75
Acquisition Amortization and Other Costs
$0.03
0.03
$0.12
0.11
0.11
Current Guidance -
Diluted EPS (Non-GAAP)
$0.18
$0.18
$1.67
$1.76
$1.86
Acquisition Amortization and Other Costs
($0.03)
($0.03)
($0.12)
(0.11)
(0.11)
Penson Charges, net
$0.00
(0.01)
($0.42)
(0.05)
(0.05)
IBM Migration costs
($0.02)
0.00
($0.12)
0.00
0.00
Restructuring charges
$0.00
0.00
($0.03)
0.00
0.00
Current Guidance -
Diluted EPS (GAAP)
$0.13
$0.14
$0.98
$1.60
$1.70 |
 8
Segment Results & Forecast –
Investor Communication Solutions
FY13 guidance on revenue and margins remains intact
Q1 recurring fee revenue growth of 9% was driven by net new
business (closed sales less client losses) and internal growth
Recurring revenue closed sales range for FY13 remains $50-70M
Revenue/Growth
EBIT/Growth (Non-GAAP)
Margin/Growth (Non-GAAP)
Q1:
$339M / 8%
$27M / 224%
8.0% / 530 bps
FY13:
$1,695 to 1,707M / 4%
$291 to 299M / 20 to 23%
17.2 to 17.5% / 230 to 260 bps
Client revenue retention levels expected to be at 99% for FY13
Q1 event-driven fee revenues up $5M driven by Mutual Fund
Communications. Mutual Fund Proxy was in line with
expectations. Full year event-driven fee revenue expectation
remains at ~$130M |
 9
Segment Results & Forecast –
Securities Processing Solutions
Revenue/Growth
EBIT/Growth
(Non-GAAP)
Margin/Growth
(Non-GAAP)
Q1:
$154M / (3)%
$9M / (66)%
6.1% / (1150) bps
FY13:
$658 to 683M / 0 to +4%
$79 to 102M / (13) to +12%
12 to 15% / (190) to +110 bps
Total
revenue
was
lower
in
Q1:
Net new business and acquisitions contributed 5%
Internal Growth was negatively impacted by lower trade volumes and the
Penson/Apex agreements
Historically, trade volumes in Q1 are not indicative of the full
year
High end of FY13 guidance range dependent on trade volumes returning
Margin decline was the result of revenue mix and anticipated increase in
systems investments (i.e. TARP development)
IBM data center savings on track to provide estimated savings of
$15M for
FY13. However, impact offset by Penson/Apex agreements
Recurring revenue closed sales range for FY13 remains $60-80M
|
 10
Summary
Solid start for fiscal year 2013
Recurring revenue closed sales pipeline continues to be strong
Event-driven slightly higher and equity trading volumes down
No surprises, difficult environment
Strong products and outsourcing momentum
Multiple paths to create value
Good strategic direction in both product and regulatory activities
Positioned to be less dependent on the return of market activity
Named “Best-in-Class”
in CEB TowerGroup’s 2012 Outsourcing Vendor Rankings
Strong client revenue retention rate of 99%
Highly engaged associates aligned to service profit chain and shareholder
value creation
Fiscal year 2013 guidance
4-7% recurring revenue growth
$1.60-1.70 GAAP diluted EPS
$1.76-1.86 Non-GAAP diluted EPS
•
Excludes Acquisition Amortization and Other Costs and Penson Charges, net, $0.04
per share for Q1 and projected $0.16 per share for FY13
|
 11
Q&A
There are no slides during this portion of the presentation
|
 12
Closing Comments
There are no slides during this portion of the presentation
|
 13
Appendix |
  14
Segment Results & Forecast –
Other & Foreign Exchange (FX)
Corporate
Expenses:
Q1
results
as
expected
and
in
line
with
full
year
guidance
range
Interest
Expense,
net:
FY13
reflects
higher
average
debt
balance
and
refinancing of our credit facilities
Penson
Charges,
net:
Transition
costs
related
to
the
termination
of
the
Penson
agreement including shutdown costs
1Q13
Low
High
Corporate Expenses
$(7)M
$(30)M
$(37)M
Interest Expense, net
$(3)M
$(17)M
$(21)M
FX - P&L - Revenue
$2M
$13M
$13M
- EBIT $4M
$14M
$14M
- Transaction Activity $(1)M
$(1)M
$(1)M
Penson Charges, net
$(1)M
$(10)M
$(10)M
IBM Migration costs
$0M
$0M
$0M
FY13 Range |
 15
Revenue Growth Drivers and EBIT Margin
Historical CAGR
1Q
Forecast
(FY07-FY12)
FY13
FY13
2%
Total Revenue Growth
4%
3-4%
3%
Closed
Sales
(Recurring)
3%
4-5%
(2%)
Client Losses
(1%)
(1)%
1%
Net New Business
2%
3-4%
1%
Internal Growth
(a)
(1%)
0%
2%
Acquisitions
1%
0%
4%
Total Recurring
2%
3-4%
(1%)
Event-Driven
(b)
1%
0%
(1%)
Distribution
(c)
2%
0%
0%
FX/Other
(1%)
0%
EBIT Margin
(Non-GAAP)
6.6%
14.9 -
15.7%
(a) Internal Growth includes SPS Equity & Fixed Income Trades, ICS Equity
& Mutual Fund Stock Record Growth, Transaction Reporting and Time & Materials
(b) Event-Driven includes ICS Proxy Contest/Specials, Mutual Fund Proxy and
Marketing Communications (c) Distribution includes pass-through fees
from Matrix |
 16
Broadridge FY13 Q1 from Continuing Operations |
 17
Broadridge FY13 Guidance from Continuing Operations |
 18
Cash Flow –Q1 FY13 Results and FY13 Forecast
Three Months
Ended
September 2012
Low
High
Free Cash Flow
(Non-GAAP)
:
Net earnings from continuing operations (GAAP)
18
$
205
$
218
$
Depreciation and amortization (includes other LT assets)
25
95
105
Stock-based compensation expense
5
31
31
Other
(1)
(5)
5
Subtotal
47
326
359
Working capital changes
(49)
(15)
(15)
Long-term assets & liabilities changes
(14)
(60)
(50)
Net cash flow (used in) provided by continuing operating activities
(16)
251
294
Cash Flows From Investing Activities
Capital expenditures & software purchases
(8)
(55)
(45)
Free cash flow (Non-GAAP)
(24)
$
196
$
249
$
Cash Flows From Other Investing and Financing Activities
Acquisitions
-
-
-
Stock repurchases net of options proceeds
(66)
(66)
(66)
Proceeds from borrowing net of debt repayments
-
-
-
Dividends paid
(20)
(86)
(86)
Other
1
(5)
5
Net change in cash and cash equivalents
(109)
39
102
Cash and cash equivalents, at the beginning of year
321
321
321
Cash and cash equivalents, at the end of period
212
$
360
$
423
$
(a) Guidance does not take into consideration the effect of any future acquisitions, additional debt
and/or share repurchases. ($ millions)
Unaudited
Free Cash Flow - Non-GAAP
FY13 Range
(a) |
    19
Recurring Closed Sales to Revenue Contribution
Recurring Closed Sales to Revenue
($ in millions)
Closed Sales
Revenue Contribution
(a)
Backlog
(b)
Forecast
Forecast
Forecast
FY13
FY13
FY13
ICS
$50-70
~$50-60
~$35-45
~Contribution to revenue growth
~3%
SPS
$60-80
~$40-50
~$85-105
~Contribution to revenue growth
6-8%
Total Recurring Closed Sales
$110-150
~$90-110
~$120-150
~Contribution to revenue growth
4-5%
(a)
Revenue from current year and prior year Closed Sales.
(b)
Closed Sales that will convert to revenue in future years. |
  20
Revenues and Closed Sales FY07-FY13
($ in millions)
Forecast
Recurring Fee Revenues
FY07
FY08
FY09
FY10
FY11
FY12
FY13
ICS
529
$
567
$
594
$
632
$
720
$
798
$
$862-874
Growth
3%
7%
5%
6%
14%
11%
8-10%
SPS
527
$
534
$
559
$
536
$
594
$
655
$
$658-683
Growth
11%
1%
5%
-4%
11%
10%
0-4%
Total Recurring Fee Revenues
1,056
$
1,101
$
1,153
$
1,168
$
1,313
$
1,453
$
$1,520-1,557
Growth
7%
4%
5%
1%
12%
11%
4-7%
Event-Driven
203
$
200
$
180
$
257
$
135
$
132
$
~$129
Growth
33%
-1%
-10%
43%
-47%
-2%
-2%
Distribution
821
$
808
$
757
$
781
$
704
$
704
$
~$704
Growth
12%
-2%
-6%
3%
-10%
0%
0%
Other/FX
(12)
$
22
$
(17)
$
4
$
14
$
14
$
~$13
Total Revenues
2,068
$
2,131
$
2,072
$
2,209
$
2,167
$
2,304
$
$2,366-2,403
Growth
12%
3%
-3%
7%
-2%
6%
Recurring Closed Sales
63
$
82
$
95
$
119
$
113
$
120
$
$110-150
Growth
-32%
30%
16%
25%
-5%
6%
($ in millions)
Forecast
Event-Driven Fee Revenues
(a)
FY07
FY08
FY09
FY10
FY11
FY12
FY13
Mutual Fund Proxy
79
$
92
$
55
$
150
$
39
$
28
$
27
$
Mutual Fund Supplemental
51
$
49
$
58
$
48
$
44
$
47
$
46
$
Contest/ Specials/ Other Communications
73
$
59
$
67
$
59
$
52
$
57
$
56
$
Total Event-Driven Fee Revenues
203
$
200
$
180
$
257
$
135
$
132
$
129
$
Growth
33%
-1%
-10%
43%
-47%
-2%
Recurring Distribution Revenues
(b)
593
$
580
$
567
$
564
$
573
$
597
$
~$597
Growth
6%
-2%
-2%
-1%
2%
4%
ED Distribution Revenues
(b)
228
$
228
$
190
$
217
$
131
$
107
$
~$107
Growth
35%
0%
-17%
14%
-39%
-18%
Total Distribution Revenues
821
$
808
$
757
$
781
$
704
$
704
$
~$704
Growth
12%
-2%
-6%
3%
-10%
0%
(a) Includes reclassification of Pre-sale Fulfillment from event-driven revenues to
recurring revenues. (b) Includes reclassification of Pre-sale Fulfillment
related distribution revenues and Matrix pass-through administrative services from event-driven revenues to recurring revenues. |
 21
Reconciliation of Non-GAAP to GAAP Measures
Reconciliation of EPS Guidance
1Q12
1Q13
FY12
FY13 Range
Actual
Actual
Actual
Low
High
Guidance Provided in August 2012 - Diluted EPS (Non-GAAP)
$0.15
$0.15
$1.55
$1.65
$1.75
Acquisition Amortization and Other Costs
$0.03
0.03
$0.12
0.11
0.11
Current Guidance - Diluted EPS (Non-GAAP)
$0.18
$0.18
$1.67
$1.76
$1.86
Acquisition Amortization and Other Costs
($0.03)
($0.03)
($0.12)
(0.11)
(0.11)
Penson Charges, net
$0.00
(0.01)
($0.42)
(0.05)
(0.05)
IBM Migration costs
($0.02)
0.00
($0.12)
0.00
0.00
Restructuring charges
$0.00
0.00
($0.03)
0.00
0.00
Current Guidance - Diluted EPS (GAAP)
$0.13
$0.14
$0.98
$1.60
$1.70
Reconciliation of EBT Guidance
(a)
1Q12
1Q13
FY12
FY13 Range
($ in millions)
Actual
Actual
Actual
Low
High
Guidance Provided in August 2012 - Total EBT (Non-GAAP)
$29
$29
$306
$336
$356
Margin %
6.2%
5.9%
13.3%
14.2%
14.8%
Acquisition Amortization and Other Costs
$6
$6
$25
$22
$22
Current Guidance - Total EBT (Non-GAAP)
$36
$35
$331
$358
$378
Margin %
7.5%
7.0%
14.4%
15.1%
15.7%
Acquisition Amortization and Other Costs
($6)
($6)
($25)
($22)
($22)
Penson Charges, net
$0
($1)
($74)
($10)
($10)
IBM Migration costs
($3)
$0
($25)
$0
$0
Restructuring charges
$0
$0
($7)
$0
$0
Total EBT (GAAP)
$26
$29
$201
$326
$346
Margin %
5.5%
5.8%
8.7%
13.8%
14.4%
(a) Amounts in this table may not sum to totals due to rounding.
Three Months
Ended
September 2012
Low
High
Free
Cash
Flow
(Non-GAAP):
Net earnings from continuing operations (GAAP)
18
$
205
$
218
$
Depreciation and amortization (includes other LT assets)
25
95
105
Stock-based compensation expense
5
31
31
Other
(1)
(5)
5
Subtotal
47
326
359
Working capital changes
(49)
(15)
(15)
Long-term assets & liabilities changes
(14)
(60)
(50)
Net cash flow (used in) provided by continuing operating activities
(16)
251
294
Cash Flows From Investing Activities
Capital expenditures & software purchases
(8)
(55)
(45)
Free cash flow (
Non-GAAP)
(24)
$
196
$
249
$
(a) Guidance does not take into consideration the effect of any future
acquisitions, additional debt and/or share repurchases. Free Cash Flow
-Non-GAAP Unaudited
($ millions)
FY13 Range(a) |
 22
ICS Key Segment Revenue Stats
RC= Recurring
ED= Event-Driven
In millions
Fee Revenues
1Q12
1Q13
Type
Proxy
Equities
23.6
$
25.6
$
RC
Stock Record Position Growth
1%
-4%
Pieces
20.4
20.3
Mutual Funds
5.2
$
6.5
$
ED
Pieces
6.4
8.2
Contests/Specials
3.3
$
3.0
$
ED
Pieces
3.7
2.7
Total Proxy
32.1
$
35.1
$
Total Pieces
30.5
31.2
Notice and Access Opt-in %
54%
48%
Suppression %
54%
56%
Interims
Mutual Funds (Annual/Semi-Annual Reports/Annual Prospectuses)
25.5
$
31.8
$
RC
Position Growth
9%
9%
Pieces
131.9
150.7
Mutual Funds (Supplemental Prospectuses) & Other
10.6
$
14.7
$
ED
Pieces
59.3
75.4
Total Interims
36.1
$
46.5
$
Total Pieces
191.2
226.1
Transaction
Transaction Reporting/Customer Communications
37.4
$
40.6
$
RC
Reporting
Fulfillment
Fulfillment (a)
31.4
$
33.2
$
RC
Other
Other -
Recurring (b)
25.5
$
25.8
$
RC
Communications
Other -
Event-Driven (c)
8.3
$
8.1
$
ED
Total Other
33.8
$
33.9
$
Total Fee Revenues
170.8
$
189.3
$
Total Distribution Revenues (d)
142.2
$
150.2
$
Total Revenues as reported -
GAAP
313.0
$
339.5
$
FY13 Ranges
Low
High
Total RC Fees
143.4
$
157.0
$
862
$
874
$
% RC Growth
20%
9%
8%
10%
Total ED Fees
27.4
$
32.3
$
129
$
129
$
Low
High
Sales
(FY'13
RCclosedsales
range$50-70M,
FY'12
RCclosesales
$72M)
2%
3%
3%
3%
Losses
-1%
-1%
-1%
-1%
Net New Business
1%
2%
2%
2%
Internal growth
2%
2%
2%
2%
Recurring (Excluding Acquisitions)
3%
4%
4%
4%
Acquisitions
6%
0%
0%
0%
Total Recurring
9%
4%
4%
4%
Event-Driven
0%
2%
0%
0%
Distribution
3%
2%
0%
0%
TOTAL
12%
8%
4%
4%
(a) Consolidated Pre-sale and Post-sale Fulfillment and reclassified
Pre-sale from event-driven to recurring revenues. (b) Other Recurring
Fee Revenue includes Matrix, New River, StockTrans, Access Data, Forefield and Tax Reporting.
(c) Other Event-Driven includes 1.6M pieces for 1Q12, 1.8M for 1Q13, primarily
related to corporate actions. (d) Total Distribution revenues primarily
include pass-through revenues related to the physical mailing of Proxy and Interims, as well as Matrix administrative services.
Note: Certain prior period amounts have been reclassified to conform with current
period presentation. Key
Revenue
Drivers |
 23
SPS and Outsourcing Key Segment Revenue Stats
RC= Recurring
ED= Event-Driven
In millions
1Q12
1Q13
Type
Equity
Transaction-Based
Equity Trades
(a)
36.4
$
30.0
$
RC
Internal Trade Volume
1,013
821
Internal Trade Growth
20%
-19%
Trade Volume (Average Trades per Day in '000)
1,020
828
Non-Transaction
Other Equity Services
80.4
82.1
RC
Total Equity
116.8
$
112.1
$
Fixed Income
Transaction-Based
Fixed Income Trades (a)
13.5
$
13.9
$
RC
Internal Trade Volume
292
293
Internal Trade Growth
11%
0%
Trade Volume (Average Trades per Day in '000
292
295
Non-Transaction
Other Fixed Income Services
10.7
$
11.5
$
RC
Total Fixed Income
24.2
$
25.4
$
Outsourcing
Outsourcing
17.4
$
16.5
$
RC
# of Clients
12
16
Total Net Revenue as reported -
GAAP
158.4
$
153.9
$
FY13 Ranges
Low
High
Sales (FY13 RC closed sales range $60-$80M. FY12 RC closed sales $48M)
5%
3%
6%
8%
Losses
-1%
-1%
-2%
-2%
Key
Net New Business
4%
2%
4%
6%
Revenue
Transaction & Non-transaction
6%
-5%
-1%
1%
Drivers
Concessions
-1%
-3%
-4%
-4%
Internal growth
5%
-8%
-5%
-3%
Acquisitions
3%
3%
1%
1%
TOTAL
12%
-3%
0%
4% |
 24
Broadridge ICS Definitions
Proxy
Equities
-
Refers to the proxy services we provide in connection with annual stockholder
meetings for publicly traded corporate issuers. Annual meetings of public
companies
include
shares
held
in
"street
name"
(meaning
that
they
are
held
of
record
by
brokers
or
banks,
which
in
turn
hold
the
shares
on
behalf
of
their
clients,
the
ultimate
beneficial
owners)
and
shares
held
in
"registered
name"
(shares
registered
directly
in
the
names
of
their
owners).
Mutual
Funds
-
Refers
to
the
proxy
services
we
provide
for
funds,
classes
or
trusts
of
an
investment
company.
Open-ended
mutual
funds
are
not
required
to have annual
meetings. As a result, mutual fund proxy services provided to open-ended
mutual funds are driven by a "triggering event." These triggering events
can
be
a
change
in
directors,
fee
structures,
restrictions,
or
mergers
of
funds.
Contests
-
Refers
to
the
proxy
services
we
provide
when
a
separate
agenda
is
put
forth
by
one
or
more
stockholders
that
is
in
opposition
to
the
proposals presented by
management of the company which is separately distributed and tabulated from
the company’s proxy materials. Specials
-
Refers to the proxy services we provide in connection with stockholder
meetings held outside of the normal annual meeting cycle and are primarily driven by special
events (e.g., mergers and acquisitions in which the company being acquired is a
public company and needs to solicit the approval of its stockholders).
Interims
Mutual
Funds
(Annual/Semi-Annual
Reports/Annual
Prospectuses)
–
Refers
to
the
services
we
provide
investment
companies
in
connection
with
information
they
are
required
by
regulation
to
distribute
periodically
to
their
investors.
These
reports
contain
pertinent
information
such
as
holdings,
fund
performance,
and other required
disclosure.
Mutual
Funds
(Supplemental
Prospectuses)
–
Refers
primarily
to
information
required
to
be
provided
by
mutual
funds
to
supplement
information
previously provided in an
annual
mutual
fund
prospectus
(e.g.,
change
in
portfolio
managers,
closing
funds
or
class
of
shares
to
investors,
or
restating
or
clarifying
items
in
the
original
prospectus).
The
events could occur at any time throughout the year.
Other
–
Refers
to
communications
provided
by
corporate
issuers
and
investment
companies
to
investors
including
news
letters,
notices,
tax
information, marketing materials and
other information not required to be distributed by regulation.
Transaction Reporting
Transaction Reporting
–
Refers primarily to the printing and distribution of account statements,
trade confirmations and tax reporting documents to account holders, including
electronic delivery and archival services.
Fulfillment
Post-Sale Fulfillment
–
Refers primarily to the distribution of prospectuses, offering documents, and
required regulatory disclosure information to investors in connection with
purchases of securities.
Pre-Sale Fulfillment
–
Refers to the distribution of marketing literature, welcome kits,
enrollment kits, and investor information to prospective investors, existing stockholders
and other targeted recipients on behalf of broker-dealers, mutual fund
companies and 401(k) administrators. Other Communications
Other
–
Refers to the services we provide in connection with the distribution
of communications material not included in the above definitions such as non-objecting beneficial
owner (NOBO) lists, and corporate actions such as mergers, acquisitions, and
tender offer transactions. |