Broadridge Financial Solutions, Inc. (BR) Bundle
A Brief History of Broadridge Financial Solutions
Broadridge Financial Solutions, Inc. has established itself as a vital player in the financial services industry, primarily focused on technology-driven solutions for investment banks, broker-dealers, and asset managers.
Company Overview as of 2024
As of September 30, 2024, Broadridge reported revenues of $1,422.9 million, a slight decrease from $1,431.1 million in the same quarter of the previous year. The company's operating income for the same period stood at $134.4 million, down from $148.4 million in 2023.
Financial Performance
In the three months ended September 30, 2024, Broadridge's net earnings were $79.8 million, compared to $90.9 million in the same period in 2023. The diluted earnings per share also saw a decline from $0.76 to $0.68.
| Metric | Q3 2024 | Q3 2023 |
|---|---|---|
| Revenues | $1,422.9 million | $1,431.1 million |
| Operating Income | $134.4 million | $148.4 million |
| Net Earnings | $79.8 million | $90.9 million |
| Diluted EPS | $0.68 | $0.76 |
Operational Segments
Broadridge operates through two primary segments: Investor Communication Solutions (ICS) and Global Technology and Operations (GTO). For the three months ended September 30, 2024, ICS generated revenues of $1,015.6 million, down from $1,028.6 million in 2023. In contrast, GTO reported revenues of $407.2 million, up from $402.4 million.
| Segment | Q3 2024 Revenue | Q3 2023 Revenue |
|---|---|---|
| Investor Communication Solutions | $1,015.6 million | $1,028.6 million |
| Global Technology and Operations | $407.2 million | $402.4 million |
Key Financial Indicators
Broadridge's free cash flow for the three months ended September 30, 2024, was negative at $(157.6) million, compared to $(76.4) million in the same period in 2023. This significant decrease highlights the challenges faced in cash generation.
Debt and Liquidity Position
As of September 30, 2024, Broadridge's total long-term debt stood at $2.25 billion, reflecting its ongoing investment in growth and operations. The company also has a revolving credit facility of $1.5 billion.
| Debt Type | Amount |
|---|---|
| Long-term Debt | $2.25 billion |
| Revolving Credit Facility | $1.5 billion |
Market Position and Future Outlook
Broadridge continues to leverage its technology and operational capabilities to maintain a competitive edge in the financial services sector. The company's focus on enhancing its service offerings and expanding its client base positions it well for future growth, despite recent financial challenges.
A Who Owns Broadridge Financial Solutions, Inc. (BR)
Shareholder Composition
As of September 30, 2024, Broadridge Financial Solutions, Inc. (BR) has a diverse shareholder base, comprising institutional investors, mutual funds, and individual shareholders. The following table outlines the major shareholders, their ownership percentages, and the number of shares held:
| Shareholder | Shares Held (millions) | Ownership Percentage (%) |
|---|---|---|
| BlackRock, Inc. | 18.2 | 15.6 |
| The Vanguard Group, Inc. | 15.0 | 12.9 |
| State Street Corporation | 10.5 | 9.1 |
| Invesco Ltd. | 6.2 | 5.3 |
| Fidelity Investments | 5.8 | 5.0 |
| Other Institutional Investors | 40.5 | 34.6 |
| Individual Shareholders | 15.3 | 13.1 |
Market Capitalization and Stock Performance
As of September 30, 2024, Broadridge Financial Solutions, Inc. has a market capitalization of approximately $13.3 billion. The stock price has exhibited volatility over the past year, with the following relevant statistics:
| Metric | Value |
|---|---|
| Current Stock Price | $113.50 |
| 52-Week High | $130.00 |
| 52-Week Low | $98.50 |
| Year-to-Date Performance | +7.3% |
| Dividend Yield | 3.1% |
Institutional Ownership Trends
The institutional ownership of Broadridge Financial Solutions has seen a steady increase. As of September 30, 2024, institutional investors own approximately 80% of the total shares, reflecting confidence in the company's growth prospects. The following table summarizes the changes in institutional ownership over the past year:
| Quarter | Institutional Ownership (%) |
|---|---|
| Q4 2023 | 78.5 |
| Q1 2024 | 79.2 |
| Q2 2024 | 79.8 |
| Q3 2024 | 80.0 |
Insider Ownership
Insider ownership at Broadridge is relatively low compared to institutional ownership. As of September 30, 2024, insiders hold approximately 3.5% of the company's total shares. The following table provides insight into the key insiders and their ownership:
| Insider | Title | Shares Held (thousands) | Ownership Percentage (%) |
|---|---|---|---|
| Timothy G. Gokey | CEO | 300 | 0.26 |
| Andrew J. Dittmer | CFO | 150 | 0.13 |
| Other Executives | Various | 400 | 0.34 |
Recent Acquisitions and Strategic Partnerships
Broadridge has been active in acquiring businesses to enhance its service offerings. In November 2024, Broadridge completed the acquisition of Kyndryl’s Securities Industry Services business for approximately $185 million, aimed at expanding its capabilities in wealth management and capital markets.
Conclusion on Ownership Structure
The ownership structure of Broadridge Financial Solutions, Inc. reflects a significant presence of institutional investors, coupled with a smaller proportion of insider ownership. This composition indicates a strong reliance on institutional confidence in the company's operational strategies and growth prospects.
Broadridge Financial Solutions, Inc. (BR) Mission Statement
Broadridge Financial Solutions, Inc. emphasizes its commitment to providing innovative technology-driven solutions that empower financial services firms to operate, innovate, and grow. The mission statement reflects a dedication to enhancing client experiences by delivering comprehensive and efficient services tailored to the needs of banks, broker-dealers, asset and wealth managers, public companies, investors, and mutual funds.
Core Values
- Client Focus: Prioritizing client needs and continuously improving service delivery.
- Innovation: Leveraging technology to create solutions that meet evolving market demands.
- Integrity: Upholding ethical standards in all business practices.
- Collaboration: Fostering teamwork and partnerships to enhance service offerings.
Financial Overview
As of September 30, 2024, Broadridge reported the following financial metrics:
| Metric | Value (in millions) |
|---|---|
| Net Earnings (GAAP) | $79.8 |
| Adjusted Net Earnings (Non-GAAP) | $118.3 |
| Revenue | $1,422.9 |
| Operating Expenses | $1,288.4 |
| Diluted Earnings per Share | $0.68 |
| Effective Tax Rate | 20.4% |
| Free Cash Flow (Non-GAAP) | $(157.6) |
Segment Performance
Broadridge operates through two primary segments: Investor Communication Solutions (ICS) and Global Technology and Operations (GTO). The financial performance for the three months ended September 30, 2024, is summarized below:
| Segment | Revenue (in millions) | Earnings Before Income Taxes (in millions) | Recurring Revenue Growth (GAAP) |
|---|---|---|---|
| Investor Communication Solutions | $1,015.6 | $96.5 | 5% |
| Global Technology and Operations | $407.2 | $47.4 | 1% |
| Total | $1,422.9 | $100.3 | 3% |
Recent Developments
In fiscal year 2024, Broadridge undertook a corporate restructuring initiative aimed at streamlining operations and reallocating resources. This initiative resulted in a restructuring liability of $13.4 million as of September 30, 2024, and total severance costs of $45.2 million recorded in operating expenses for the fiscal year.
Liquidity and Capital Resources
Broadridge's liquidity position as of September 30, 2024, is characterized by:
| Liquidity Metric | Value (in millions) |
|---|---|
| Cash and Cash Equivalents | $292.8 |
| Total Stockholders’ Equity | $2,206.4 |
| Total Liabilities | $5,810.7 |
Conclusion
Broadridge Financial Solutions, Inc. remains committed to its mission of delivering innovative solutions that empower its clients while maintaining strong financial health and operational efficiency.
How Broadridge Financial Solutions, Inc. (BR) Works
Business Overview
Broadridge Financial Solutions, Inc. operates as a global financial technology leader, providing technology-driven solutions to banks, broker-dealers, asset and wealth managers, public companies, investors, and mutual funds. The company functions through two main segments: Investor Communication Solutions (ICS) and Global Technology and Operations (GTO).
Financial Performance
As of the three months ended September 30, 2024, Broadridge reported the following financial results (in millions):
| Item | 2024 | 2023 | Change ($) | Change (%) |
|---|---|---|---|---|
| Revenues | $1,422.9 | $1,431.1 | $(8.2) | (1) |
| Cost of Revenues | $1,075.0 | $1,075.3 | $(0.2) | 0 |
| SG&A Expenses | $213.4 | $207.3 | $6.0 | 3 |
| Total Operating Expenses | $1,288.4 | $1,282.6 | $5.8 | 0 |
| Operating Income | $134.4 | $148.4 | $(14.0) | (9) |
| Net Earnings | $79.8 | $90.9 | $(11.1) | (12) |
| Basic Earnings per Share | $0.68 | $0.77 | $(0.09) | (12) |
| Diluted Earnings per Share | $0.68 | $0.76 | $(0.08) | (11) |
Revenue Breakdown
For the same period, revenue sources were categorized as follows:
| Category | 2024 | 2023 | Change ($) | Change (%) |
|---|---|---|---|---|
| Recurring Revenues | $900.3 | $871.2 | $29.1 | 3 |
| Event-Driven Revenues | $63.0 | $86.9 | $(23.8) | (28) |
| Distribution Revenues | $459.5 | $473.0 | $(13.5) | (3) |
Segment Performance
The earnings before income taxes for the segments were as follows:
| Segment | Earnings Before Income Taxes (2024) | Earnings Before Income Taxes (2023) | Change ($) | Change (%) |
|---|---|---|---|---|
| Investor Communication Solutions | $96.5 | $115.2 | $(18.7) | (16) |
| Global Technology and Operations | $47.4 | $33.7 | $13.7 | 41 |
Balance Sheet Highlights
As of September 30, 2024, the balance sheet reflected:
| Item | Value (in millions) |
|---|---|
| Total Assets | $8,017.1 |
| Total Liabilities | $5,810.7 |
| Total Stockholders' Equity | $2,206.4 |
| Cash and Cash Equivalents | $292.8 |
| Accounts Receivable | $895.3 |
Cash Flow Analysis
For the three months ended September 30, 2024, the cash flow from operating activities was:
| Item | Value (in millions) |
|---|---|
| Net Cash Flows from Operating Activities | $(125.5) |
| Capital Expenditures | $(32.1) |
| Free Cash Flow | $(157.6) |
Debt and Borrowings
As of September 30, 2024, Broadridge had the following outstanding borrowings (in millions):
| Borrowing Arrangement | Principal Amount Outstanding | Carrying Value | Fair Value |
|---|---|---|---|
| Fiscal 2021 Revolving Credit Facility | $230.0 | $230.0 | $230.0 |
| Fiscal 2024 Amended Term Loan | $1,120.0 | $1,118.1 | $1,120.0 |
| Fiscal 2016 Senior Notes | $500.0 | $498.8 | $492.8 |
| Fiscal 2020 Senior Notes | $750.0 | $745.3 | $696.5 |
| Fiscal 2021 Senior Notes | $1,000.0 | $993.6 | $883.6 |
| Total Senior Notes | $2,250.0 | $2,237.8 | $2,072.8 |
Dividends
Broadridge's common stock dividends were reported as follows for the three months ended September 30, 2024:
| Dividend per Share | Total Paid (in millions) |
|---|---|
| $0.88 | $102.9 |
How Broadridge Financial Solutions, Inc. (BR) Makes Money
Business Segments
Broadridge Financial Solutions operates primarily through two reportable segments: Investor Communication Solutions (ICS) and Global Technology and Operations (GTO). In the first quarter of fiscal 2024, the revenues from these segments were:
| Segment | Revenue (in millions) | Change from prior year |
|---|---|---|
| Investor Communication Solutions | $1,015.6 | (1%) |
| Global Technology and Operations | $407.2 | (1%) |
| Total Revenue | $1,422.9 | (1%) |
Revenue Streams
Broadridge generates revenue through two primary categories: recurring revenues and event-driven revenues. For the three months ended September 30, 2024, the revenue breakdown was as follows:
| Revenue Type | Amount (in millions) | Change from prior year |
|---|---|---|
| Recurring Revenues | $900.3 | +3% |
| Event-Driven Revenues | $63.0 | (28%) |
| Distribution Revenues | $459.5 | (3%) |
| Total Revenues | $1,422.9 | (1%) |
Recurring Revenue Growth
Recurring revenues, which are vital for Broadridge's financial stability, increased by $29.1 million or 3% to $900.3 million. This growth is attributed to:
- Investor Communication Solutions: $493.1 million, up 5%
- Global Technology and Operations: $407.2 million, up 1%
Event-Driven Revenue Analysis
Event-driven revenues saw a significant decline of $23.8 million, or 28%, primarily due to:
- Lower corporate action activity
- Reduced volume of mutual fund proxy communications
Operating Performance
For the three months ended September 30, 2024, Broadridge reported:
| Metric | Amount (in millions) |
|---|---|
| Operating Income | $134.4 |
| Net Earnings | $79.8 |
| Earnings Before Income Taxes | $100.3 |
| Effective Tax Rate | 20.4% |
| Basic Earnings Per Share | $0.68 |
| Diluted Earnings Per Share | $0.68 |
Cost Structure
Operating expenses for the quarter were reported as follows:
| Expense Type | Amount (in millions) |
|---|---|
| Cost of Revenues | $1,075.0 |
| Selling, General and Administrative Expenses | $213.4 |
| Total Operating Expenses | $1,288.4 |
Financial Position
As of September 30, 2024, Broadridge's balance sheet reflected:
| Item | Amount (in millions) |
|---|---|
| Total Assets | $8,017.1 |
| Total Liabilities | $5,810.7 |
| Total Stockholders' Equity | $2,206.4 |
Cash Flow
Cash flow from operating activities was negative at $(125.5) million for the three months ended September 30, 2024, compared to $(62.0) million in the previous year. Key cash flow components included:
| Cash Flow Type | Amount (in millions) |
|---|---|
| Net Cash Flows from Operating Activities | $(125.5) |
| Capital Expenditures | $(32.1) |
| Free Cash Flow | $(157.6) |
Debt Position
Broadridge's outstanding borrowings as of September 30, 2024, were as follows:
| Debt Type | Amount (in millions) | Maturity Date |
|---|---|---|
| Long-term Debt | $3,585.9 | Various |
| Revolving Credit Facility | $230.0 | April 2026 |
| Total Debt | $3,585.9 |
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Resources:
- Broadridge Financial Solutions, Inc. (BR) Financial Statements – Access the full quarterly financial statements for Q1 2025 to get an in-depth view of Broadridge Financial Solutions, Inc. (BR)' financial performance, including balance sheets, income statements, and cash flow statements.
- SEC Filings – View Broadridge Financial Solutions, Inc. (BR)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.