Broadridge Financial Solutions, Inc. (NYSE:BR) Q2 2019 Earnings Conference Call Transcript

Feb 07, 2019 • 08:30 am ET

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Broadridge Financial Solutions, Inc. (NYSE:BR) Q2 2019 Earnings Conference Call Transcript

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Presentation
Operator
Operator

Ladies and gentlemen, good day, and thank you for standing by. My name is Liway (ph), and I'll be your conference operator today. At this time, I would like to welcome everyone to the Broadridge Second Quarter Fiscal Year 2019 Earnings Conference Call. All lines have been placed in mute to prevent any background noise. After the speakers' remarks, there will be a question-and-answer session. (Operator Instructions) Thank you.

It is now my pleasure to turn this call over to your host, Mr. Edings Thibault, you may begin your conference.

Executive
W. Edings Thibault

Thank you Liway. Thank you, everyone, and good morning and welcome to Broadridge's Second Quarter Fiscal Year 2019 Earnings Call. Our earnings release and the slides that accompany this call may be found on the Investor Relations section of broadridge.com.

Joining me on the call this morning are Tim Gokey, our President and CEO, and our CFO, Jim Young. Before I turn the call over to Tim, a few standard reminders. We will be making forward-looking statements on today's call regarding Broadridge that involve risks, the summary of these risks, can be found on the second page of the slide and a more complete description on our annual report on Form 10-K.

We will also be referring to several non-GAAP measures, which we believe provide investors with a more complete understanding of Broadridge's underlying operating results. An explanation of these non-GAAP measures and reconciliations to their comparable GAAP measures can be found in the earnings release and presentation.

Let me now turn the call over to Tim Gokey. Tim?

Executive
Tim Gokey

Thank you, Edings, and good morning everyone. Broadridge had a strong second quarter and is well positioned for the full year and beyond. I also want to share with you this morning my confidence in Broadridge's future, and the message, I've been delivering to our clients and associates since becoming CEO, January 2. Finally, I'll close with a more detailed overview of our second quarter business highlights before handing it over to Jim to cover the financial results in detail.

So, let's get started on slide 4. Broadridge had a strong second quarter and is well positioned for the full year and for 2020. We recorded strong 7% growth in recurring revenue. We signed over $100 million in recurring sales, new Q2 record, it heads us up very well for the year, and as Jim will describe, we are confirming our full-year guidance.

As we discussed in our last call, event driven revenues declined significantly relative to a spike in the second quarter of 2018. Leading to quarterly EPS that is below last year, but more than 40% above 24 months ago. As Jim will discuss, we significantly increased growth investments in Q2 based on our confidence in the full year.

The key takeaway today, as we finished the quarter exactly in line with our expectations, and we enter our second half where we typically earn 70% or more of our annual earnings fully on track to deliver double-digit EPS growth in