Broadridge Financial Solutions, Inc. (NYSE:BR) Q2 2016 Earnings Conference Call - Final Transcript

Feb 04, 2016 • 08:30 am ET


Broadridge Financial Solutions, Inc. (NYSE:BR) Q2 2016 Earnings Conference Call - Final Transcript


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Good morning. My name is Ginny, and I will be your conference facilitator. At this time, I would like to welcome everyone to the Broadridge Financial Solutions Second Quarter Fiscal Year 2016 Earnings Conference Call. I would like to inform you that this call is being recorded and that all lines have been placed on mute to prevent any background noise. There will be a question and answer period after the speakers remarks.

[Operator Instructions]

I will now turn the conference over to Brian Shipman, Head of the Investor Relations. Please go ahead, sir.

Brian Shipman

Thank you. Good morning, everyone, and welcome to the Broadridge quarterly earnings call and webcast for the second quarter of fiscal year 2016. This morning, I'm here with Rich Daly, our President and Chief Executive Officer; and Jim Young, our Chief Financial Officer.

I trust that by now everyone has had the opportunity to review the earnings release we've issued this morning. The news release and slide presentation that accompanied today's earnings call and webcast can be found on the Investor Relations page at

During today's conference call, we'll discuss some forward-looking statements regarding Broadridge that involve risk. These risks are summarized on Slide number 2. We encourage participants to refer to our SEC filings, including our annual report on Form 10-K for a complete discussion of forward-looking statements and the risk factors faced by our business.

Our non-GAAP fiscal year 2016 earnings results and fiscal year 2016 earnings guidance exclude the impact of acquisition amortization and other costs. These costs are significant, and we believe the non-GAAP information provides investors with a more complete understanding of Broadridge's underlying operating results. A description of any non-GAAP adjustments and reconciliations to the comparable GAAP measures can be found in the earnings release.

Rich Daly will start today's call with his opening remarks and will provide you with a summary of the financial highlights for the second quarter of fiscal year 2016, followed by a discussion of a few key topics. Jim Young will then review the financial results in further detail. Rich will then provide some closing thoughts before the Q&A portion of the call.

Now I'll turn the call over to Rich. Rich?

Rich Daly

Thanks, Brian, and good morning, everyone. Let's begin on Slide 4 with the key points. I am pleased with our performance in the second quarter, which keeps us solidly on track for the full fiscal year. Our performance was driven by continuing solid recurring revenue from new sales, contributions from our acquisitions made in fiscal 2015 and healthy event-driven activity. Overall, I am pleased with our first half financial results.

We continue to see solid recurring revenue growth, and we anticipate some acceleration in the second half of the year. Recurring revenue were up 8% for the quarter and are up 9% year-to-date versus the comparable periods in fiscal year 2015. Given our solid first half of the fiscal year and the confidence we continue to have in our business, we are reaffirming