Broadridge Financial reports profits up 61%
Broadridge Financial Solutions Inc., the investor communications business based in Lake Success, Thursday reported a 61 percent increase in profit for the three months ended June 30.
The company, the largest of its kind in the United States, said its net income totaled $135 million in the fourth quarter, which compares with $83 million a year earlier. The increase was fueled, in part, by more reports from mutual funds, which Broadridge sends to investors, and by acquisitions.
Chief executive Richard J. Daly said, "Earnings growth was primarily due to higher revenues, business mix and our continuing focus on cost containment."
Sales also were up in the April-June period, rising 8 percent to $865 million.
Broadridge delivers annual reports, proxy statements and other documents to shareholders from public companies, tabulates shareholders' votes and handles paperwork for securities transactions.
Much of the work is done by about 1,900 employees at factories in Brentwood and Edgewood. The company is Long Island's seventh-largest public company based on yearly sales.
Daly said customers were increasingly asking Broadridge to distribute investor documents via email. The company also expects to sign up more customers in Asia and Europe through a partnership recently formed with Accenture business consultants, which is headquartered in Dublin.
Daly predicted Broadridge's sales would increase between 5 percent and 7 percent in the fiscal year ending June 30, 2014. For the fiscal year that just ended June 30 sales rose about 6 percent to $2.4 billion.
Profit for the 2013 fiscal year totaled $212 million, a 72 percent increase over 2012's $124 million.
Daly said Broadridge would hike its quarterly dividend to 21 cents per share on Oct. 1, from 18 cents. This means the company's annual dividend is increasing for the sixth consecutive year.
Broadridge stock Thursday gained 5.49 percent to close at $30.57 on the New York Stock Exchange.