Broadridge Financial Solutions
PULSE DATA $1.17, symbol PSD on Toronto, fell over 15% this week after it announced that it was temporarily suspending its $0.05 quarterly dividend. The move was spurred by lower oil and gas prices, which pushed down exploration spending. Lower exploration spending hurts Calgary-based Pulse Data’s seismic data library sales. Suspending the dividend will save Pulse $2.6 million each quarter. Directors and senior managers are also cutting their pay and lowering the company’s administrative costs. In the three months ended December 31, 2008, Pulse Data lost $1.6 million, or $0.03 a share, compared to profits of $1 million, or $0.02 a share, a year earlier. The loss was mainly because of an 8.4% drop in data library sales, which provide 82% of Pulse Data’s revenue. Cash flow per share rose 13.3%, to $0.17 from $0.15, partly because share buybacks drove down the number of shares outstanding fell by 1.6%....
BROADRIDGE FINANCIAL SOLUTIONS $16.27 (New York symbol BR: SI Rating: Extra Risk) (201-714-3000; www.broadridge.com; Shares outstanding: 140.4 million; Market cap: $2.3 billion) serves the investment industry in three main ways: investor communications; securities processing; and transaction clearing, trade settlements and other back-office operations. Broadridge’s clients include 250 banks, 500 mutual fund families and 5,000 publicly listed companies. Broadridge’s shares have dropped lately, along with those of most financial services stocks. But, while tight credit conditions may lead to fewer takeovers and a subsequent drop in investor-communications activity, the company’s overall business continues to grow. It’s also paying down debt and remaining profitable. Broadridge’s earnings rose 3.5% in the three months ended December 31, 2008, to $29.9 million from $28.9 million a year earlier. Earnings per share were unchanged at $0.21 on more shares outstanding. Revenues fell 1.3%, to $459.2 million from $465.1 million as the rising U.S. dollar lowered the contribution of Broadridge’s international operations. Excluding the effects of foreign currency movements, revenues rose 2%....
ALIMENTATION COUCHE-TARD, $13.20, symbol ATD.B on Toronto, is the largest convenience store operator in Canada, with over 2,000 outlets. The company has agreed to buy 13 convenience stores/gas stations in central Quebec from privately held Group Therrien for an undisclosed price. All 13 stores sell gas under either the Petro-T or Esso brands. Four of the stores have fast-food outlets (two A&W and two Subway), and three have car washes. Couche-Tard will lease the land and buildings at market value for 40 years and buy the stores’ equipment and inventory. The stores will continue to sell Esso and Petro-T gas, but will operate under the Alimentation Couche-Tard banner. Aside from its extensive network of stores in Canada, Alimentation Couche-Tard has more than 3,000 U.S. stores in 28 states. The Canadian stores operate under the Couche-Tard and Mac’s banners, while the U.S. stores mainly use the Circle K banner. The company sells fuel at 66% of its stores....
BROADRIDGE FINANCIAL SOLUTIONS INC. $14 (New York symbol BR; Aggressive Growth Portfolio, Finance sector; Shares outstanding: 141.4 million; Market cap: $2.0 billion; Price-to-sales ratio: 1.0; WSSF Rating: Extra Risk) offers services to the investment industry in three main areas: investor communications, securities processing, and transaction clearing. Broadridge mails and processes 70% of all proxy votes. Broadridge’s revenue in its first fiscal quarter, ended September 30, 2008, rose 4.7%, to $472.4 million from $451.2 million a year earlier. It typically sells its services under long-term contracts that provide it with steady revenue streams. This cuts its risk. However, earnings fell 1.1%, to $35.6 million from $36.0 million. The drop was mainly due to the timing of extra expenses stemming from investments in technology and new products. Earnings per share fell 3.8%, to $0.25 from $0.26 on more shares outstanding. The company will probably earn $1.48 a share in fiscal 2009, and the stock trades at 9.5 times that estimate. The $0.28 dividend yields 2.0%....
The credit crisis has weighed heavily on Broadridge and Fair Isaac, which provide specialized services to financial institutions. However, these services help their clients cut costs and comply with changing regulations. We still see both companies as buys for long-term gains. BROADRIDGE FINANCIAL SOLUTIONS INC. $14 (New York symbol BR; Aggressive Growth Portfolio, Finance sector; Shares outstanding: 141.4 million; Market cap: $2.0 billion; Price-to-sales ratio: 1.0; WSSF Rating: Extra Risk) offers services to the investment industry in three main areas: investor communications, securities processing, and transaction clearing. Broadridge mails and processes 70% of all proxy votes. Broadridge’s revenue in its first fiscal quarter, ended September 30, 2008, rose 4.7%, to $472.4 million from $451.2 million a year earlier. It typically sells its services under long-term contracts that provide it with steady revenue streams. This cuts its risk. However, earnings fell 1.1%, to $35.6 million from $36.0 million. The drop was mainly due to the timing of extra expenses stemming from investments in technology and new products. Earnings per share fell 3.8%, to $0.25 from $0.26 on more shares outstanding....
BROADRIDGE FINANCIAL SOLUTIONS INC. $11 (New York symbol BR; Aggressive Growth Portfolio, Finance sector; Shares outstanding: 141.4 million; Market cap: $1.6 billion; WSSF Rating: Extra risk) offers services to the investment industry in three main areas: investor communications; securities processing; and transaction clearing. Due to volatile investment industry conditions, Broadridge has moved down from its peak of $24 in December, 2007 to $10 in October, 2008. As well, both Lehman Brothers and Barclays Bank PLC are Broadridge clients. The recent takeover of Lehman by Barclays could cut demand for its processing services. However, the long-term outlook for Broadridge remains bright. It stands to gain from the increasing complexity of securities regulations and rising levels of share ownership. Broadridge is still a buy.
BROADRIDGE FINANCIAL SOLUTIONS $15.79 (New York symbol BR: SI Rating: Extra risk) (201-714-3000; www.broadridge.com; Shares outstanding: 140.5 million; Market cap: $2.2 billion) specializes in three areas of service to the investment industry: investor communications; securities processing; and transaction clearing, trade settlements and other back office operations. Clients include 250 banks, 500 mutual fund families and 5,000 publicly listed companies. Broadridge has moved down lately along with most financial services stocks. However, while tight credit conditions may lead to fewer takeovers and related investor communications activity, the company’s overall business continues to grow. Broadridge distributes over one billion investor communications each year, including investor account statements, trade confirmations and tax statements. Components of its securities processing services are used by seven of the top 10 U.S. broker-dealers. Broadridge mails and processes over 70% of all proxy votes. Its fixed income business processes trades with a settlement value of $2 trillion a day....
BROADRIDGE FINANCIAL SOLUTIONS INC. $20 (New York symbol BR; Aggressive Growth Portfolio, Finance sector; Shares outstanding: 140.3 million; Market cap: $2.8 billion; WSSF Rating: Extra risk) offers services to the investment industry in three main areas: investor communications; securities processing; and transaction clearing. These services help financial services institutions and public companies improve their efficiency and customer service. Despite volatile investment industry conditions, Broadridge continues to expand. It recently paid an undisclosed sum for Investigo Corp., which provides accurate and timely data to wealth management firms. This helps them better manage client portfolios, and comply with various securities regulations. Broadridge’s earnings in the fiscal year ended June 30, 2008 rose 2.4%, to $218.5 million from $213.3 million in the prior year. Earnings per share rose 1.3%, to $1.55 from $1.53, on more shares outstanding. These figures exclude unusual items. Revenue rose 3.3%, to $2.21 billion from $2.14 billion....
Slowdowns at their customers continue to hurt Broadridge, Fair Isaac and Cintas. However, all three offer services that help their clients save money, comply with regulations and strengthen customer loyalty. That gives them long-term appeal. All three of these companies are also attractive in relation to their earnings and revenue. We continue to view them as buys. BROADRIDGE FINANCIAL SOLUTIONS INC. $20 (New York symbol BR; Aggressive Growth Portfolio, Finance sector; Shares outstanding: 140.3 million; Market cap: $2.8 billion; WSSF Rating: Extra risk) offers services to the investment industry in three main areas: investor communications; securities processing; and transaction clearing. These services help financial services institutions and public companies improve their efficiency and customer service....
BROADRIDGE FINANCIAL SOLUTIONS INC. $19.76, New York symbol BR, offers services to the investment industry in three main areas: investor communications; securities processing; and transaction clearing. Broadridge mails and processes 70% of all proxy votes. The company stands to gain from the increasing complexity of securities regulations and increasing levels of share ownership. Despite volatile investment industry conditions, Broadridge’s earnings in the fiscal year ended June 30, 2008 rose 2.4%, to $218.5 million from $213.3 million in the prior year. Earnings per share rose 1.3%, to $1.55 from $1.53, on more shares outstanding. These figures exclude unusual items. Revenue rose 3.3%, to $2.21 billion from $2.14 billion. Broadridge also raised its quarterly dividend 16.7%, from $0.06 a share to $0.07. The new annual rate of $0.28 yields 1.4%. As well, the company plans to buy back about 1.5% of its stock....