Broadridge(BR)2025-05-01 15:58Financial Performance - Revenues for the three months ended March 31, 2025, were $1,811.7 million, a 4.9% increase from $1,726.5 million in the same period of 2024[13] - Operating income for the three months ended March 31, 2025, was $344.9 million, up 14.0% from $302.9 million in the prior year[13] - Net earnings for the nine months ended March 31, 2025, reached $465.3 million, representing a 24.1% increase compared to $374.9 million for the same period in 2024[13] - Basic earnings per share for the three months ended March 31, 2025, were $2.07, an increase of 14.4% from $1.81 in the prior year[13] - Comprehensive income for the three months ended March 31, 2025, was $216.6 million, compared to $250.1 million for the same period in 2024, indicating a decrease of about 13.4%[31] - For the nine months ended March 31, 2025, the company reported comprehensive income of $243.1 million, compared to $213.7 million for the same period in 2024, reflecting an increase of approximately 13.8%[30] Revenue Breakdown - Recurring revenues for the nine months ended March 31, 2025, reached $3,084.3 million, up 6.5% from $2,896 million in the prior year[59] - Distribution revenues for the three months ended March 31, 2025, were $555.0 million, compared to $533.3 million in the same period of 2024, reflecting a growth of 4.1%[59] - Investor Communication Solutions segment revenues totaled $1,347.5 million for the three months ended March 31, 2025, compared to $1,301.4 million in the same period of 2024, marking a 3.5% increase[59] - Global Technology and Operations segment revenues for the three months ended March 31, 2025, were $464.1 million, up from $425.1 million in the same period of 2024, representing an increase of 9.1%[59] - Event-driven revenues for the nine months ended March 31, 2025, were $240.3 million, compared to $209 million in the prior year, indicating a growth of 15%[59] Assets and Liabilities - Total assets as of March 31, 2025, were $8,299.6 million, compared to $8,242.4 million as of June 30, 2024[20] - Long-term debt as of March 31, 2025, was $3,433.6 million, an increase from $3,355.1 million as of June 30, 2024[20] - Total payables and accrued expenses decreased to $1,027.7 million as of March 31, 2025, down from $1,194.4 million on June 30, 2024, representing a decline of 14.0%[89] - Employee compensation and benefits liability decreased to $275.1 million as of March 31, 2025, from $354.4 million on June 30, 2024, a reduction of 22.3%[90] - Total non-current liabilities amounted to $547.7 million, a slight decrease from $550.9 million on June 30, 2024[104] Cash Flow and Investments - The company reported net cash flows from operating activities of $471.6 million for the nine months ended March 31, 2025, compared to $335.2 million in the prior year[23] - The company made acquisitions totaling $193.5 million during the nine months ended March 31, 2025[23] - The Company acquired Kyndryl's Securities Industry Services business for an aggregate purchase price of $185.5 million, which included $38.3 million allocated to goodwill and $149.1 million to intangible assets[69] - The acquisition of AdvisorTarget in May 2024 had an aggregate purchase price of $34.3 million in cash, with contingent consideration potentially reaching $30.5 million based on revenue targets[71] Stockholder Equity and Dividends - As of March 31, 2025, total stockholders' equity increased to $2,382.3 million, up from $2,228.3 million on December 31, 2024, reflecting a growth of approximately 6.9%[27] - The company declared dividends totaling $299.2 million during the nine months ended March 31, 2025, compared to $273.9 million in the prior year[23] - Common stock dividends declared were $103.2 million for the three months ended March 31, 2025, with a dividend per share of $0.88, compared to $94.4 million and $0.80 per share for the same period in 2024[31] Operating Expenses and Tax - Total operating expenses for the three months ended March 31, 2025, increased by $43.2 million, or 3%, to $1,466.8 million[182] - The effective tax rate for the three months ended March 31, 2025, was 21.8%, up from 19.8% in the prior year, primarily due to lower discrete tax benefits[112] - The effective tax rate for the nine months ended March 31, 2025, was 20.8%, up from 19.8% in the previous year[192] Compliance and Regulatory - The company is currently assessing the impact of new accounting standards on its consolidated financial statements, including ASU No. 2023-09 and ASU No. 2023-08, effective in fiscal years 2026[46][47] - The company remains in compliance with all covenants of its debt agreements as of March 31, 2025[95] - The company is in compliance with regulatory capital requirements for its subsidiaries as of March 31, 2025[130] Miscellaneous - The company operates in two segments: Investor Communication Solutions (ICS) and Global Technology and Operations (GTO), focusing on technology-driven solutions for financial markets[36] - Broadridge's technology solutions support the entire trade lifecycle, processing clearance and settlement in over 100 countries, enhancing operational efficiency for clients[39] - The company utilizes Non-GAAP financial measures to provide additional insights into its operating performance, including Adjusted Operating Income and Free Cash Flow[205]