Item 5. Market for Registrant’s Common Equity
ITEM 5. Market for Registrant’s Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities
Our common stock began trading “regular way” on the NYSE under the symbol “BR” on April 2, 2007. There were 10,172 stockholders of record of the Company’s common stock as of July 31, 2020. This figure excludes the beneficial holders whose shares may be held of record by brokerage firms and clearing agencies.
Dividend Policy
We expect to pay cash dividends on our common stock. On August 10, 2020, our Board of Directors increased our quarterly cash dividend by $0.035 per share to $0.575 per share, an increase in our expected annual dividend amount from $2.16 to $2.30 per share. The declaration and payment of future dividends to holders of our common stock will be at the discretion of our Board of Directors, and will depend upon many factors, including our financial condition, earnings, capital requirements of our businesses, legal requirements, regulatory constraints, industry practice, and other factors that the Board of Directors deems relevant.
As a holding company, substantially all our assets being comprised of the capital stock of our subsidiaries, our ability to pay dividends will be dependent on our receiving dividends from our operating subsidiaries. Our subsidiaries through which we provide our business process outsourcing and mutual fund processing services, are regulated and may be subject to restrictions on their ability to pay dividends to us. We do not believe that these restrictions are significant enough to impact the Company’s ability to pay dividends.
Performance Graph
The following graph compares the cumulative total return on Broadridge common stock from June 30, 2015 to June 30, 2020, with the comparable cumulative return of the: (i) S&P 500 Index and (ii) S&P 500 Information Technology Index. The graph assumes $100 was invested on June 30, 2015 in our common stock and in each of the indices and assumes that all cash dividends are reinvested. The table below the graph shows the dollar value of those investments as of the dates in the graph. The comparisons in the graph are required by the SEC and are not intended to forecast or be indicative of future performance of our common stock.
The following performance graph and related information shall not be deemed “soliciting material” or to be “filed” with the SEC, nor shall such information be incorporated by reference into any future filing under the Securities Act of 1933 or the Exchange Act, each as amended, except to the extent that Broadridge specifically incorporates it by reference into such filing.
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Comparison of Five Year Cumulative Total Return Among Broadridge Financial Solutions, Inc., S&P 500 Index, and S&P 500 Information Technology Index (in dollars)
June 30, 2015 June 30, 2016 June 30, 2017 June 30, 2018 June 30, 2019 June 30, 2020
Broadridge Financial Solutions. Inc. Common Stock $ 100.00 $ 133.19 $ 157.32 $ 243.33 $ 274.52 $ 276.52
S&P 500 Index $ 100.00 $ 103.98 $ 122.58 $ 140.19 $ 154.79 $ 166.38
S&P 500 Information Technology Index $ 100.00 $ 104.79 $ 140.30 $ 184.22 $ 210.63 $ 286.23
Purchases of Equity Securities by the Issuer and Affiliated Purchasers
The following table contains information about our purchases of our equity securities for each of the three months during our fourth fiscal quarter ended June 30, 2020:
Period Total Number of
Shares Purchased (1) Average Price
Paid per Share Total Number of Shares
Purchased as Part of
Publicly Announced Plans or Programs (2) Maximum Number of Shares that May Yet Be Purchased
Under the Plans or Programs (2)
April 1, 2020 – April 30, 2020 198,432 $ 91.32 — 9,586,545
May 1, 2020 – May 31, 2020 5,479 116.02 — 9,586,545
June 1, 2020 – June 30, 2020 1,015 121.63 — 9,586,545
Total 204,926 $ 92.13 —
(1) Includes 204,926 shares purchased from employees to pay taxes related to the vesting of restricted stock units.
(2) During the fiscal quarter ended June 30, 2020, the Company did not repurchase shares of common stock under its share repurchase program. At June 30, 2020, there were 9,586,545 shares remaining available for repurchase under its share repurchase program. Any share repurchases will be made in the open market or privately negotiated transactions in compliance with applicable legal requirements and other factors.
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ITEM 6. Selected Financial Data
The following selected financial data is derived from our Consolidated Financial Statements and should be read in conjunction with our Consolidated Financial Statements, the accompanying Notes to the Consolidated Financial Statements and Management’s Discussion and Analysis of Financial Condition and Results of Operations included in this Annual Report on Form 10-K.
Years Ended June 30,
2020 2019 2018 2017 2016
(in millions, except for per share amounts)
Statements of Earnings Data
Revenues (a) $ 4,529.0 $ 4,362.2 $ 4,329.9 $ 4,142.6 $ 2,897.0
Operating income (a) 624.9 652.7 598.1 534.0 502.3
Earnings before income taxes (a) 579.5 607.3 561.0 488.1 468.9
Net earnings (a) 462.5 482.1 427.9 326.8 307.5
Basic earnings per share (a) $ 4.03 $ 4.16 $ 3.66 $ 2.77 $ 2.60
Diluted earnings per share (a) $ 3.95 $ 4.06 $ 3.56 $ 2.70 $ 2.53
Basic Weighted-average shares outstanding 114.7 115.9 116.8 118.0 118.3
Diluted Weighted-average shares outstanding 117.0 118.8 120.4 120.8 121.6
Cash dividends declared per common share $ 2.16 $ 1.94 $ 1.46 $ 1.32 $ 1.20
June 30,
2020 2019 2018 2017 2016
(in millions)
Balance Sheet Data
Cash and cash equivalents $ 476.6 $ 273.2 $ 263.9 $ 271.1 $ 727.7
Total current assets (a) 1,328.0 1,042.3 991.1 989.6 1,289.1
Property, plant and equipment, net 161.6 189.0 204.1 198.1 112.2
Total assets (a)(b) 4,889.8 3,880.7 3,304.7 3,149.8 2,872.7
Total current liabilities (a)(b) 1,341.0 802.6 777.3 744.9 692.9
Long-term debt, excluding current portion 1,387.6 1,470.4 1,053.4 1,102.1 890.7
Total liabilities (a)(b) 3,543.2 2,753.2 2,210.4 2,146.0 1,827.3
Total stockholders’ equity (a)(b) 1,346.5 1,127.5 1,094.3 1,003.8 1,045.5
(a) The Company adopted ASU No. 2014-09 on July 1, 2018, using the modified retrospective transition method with the cumulative effect of initially applying ASU No. 2014-09 recognized at the date of initial application. Accordingly, financial statement periods prior to July 1, 2018 have not been restated for the effects of ASU No. 2014-09. See Note 2, “Summary of Significant Accounting Policies”, and Note 3, “Revenue Recognition” to our Consolidated Financial Statements under Item 8 of Part II of this Annual Report on Form 10-K for details of the Company’s adoption of ASU No. 2014-09.
(b) The Company adopted ASU No. 2016-02 “Leases”, as amended, on July 1, 2019, by recognizing a right-of-use (“ROU”) asset and corresponding lease liability, along with a cumulative-effect adjustment to the opening balance of retained earnings, in the period of adoption. The adoption of ASU No. 2016-02, as amended, did not have a material impact on the Consolidated Statements of Earnings, the Consolidated Statements of Comprehensive Income, the Consolidated Statements of Cash Flows, or the Consolidated Statements of Stockholders’ Equity. Under this method of adoption, the Company has not restated the prior period Consolidated Financial Statements presented to the current period presentation. See Note 2, “Summary of Significant Accounting Policies”, and Note 8, “Leases” in our Consolidated Financial Statements under Item 8 of Part II of this Annual Report on Form 10-K for details of the Company’s adoption of ASU No. 2016-02, as amended.
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