Good morning. My name is Karnisha, and I will be your conference facilitator. At this time, I'd like to welcome everybody to the Broadridge Fiscal Year 2017 Second Quarter Earnings Conference Call. As a reminder, this call is being recorded and all lines have been placed on mute to prevent any background noise. I will now turn the call over to Mr. Edings Thibault, Head of Investor Relations. Please go ahead, sir.

Thank you. Good morning, everybody, and welcome to Broadridge's second quarter 2017 earnings conference call. Joining me on the call this morning are Rich Daly, our President and CEO; and Jim Young, our Chief Financial Officer. Please note that the earnings release announcing our second quarter results and slides that accompanying this call may be found on the Investor Relations section of broadridge.com. During today's conference call, we will be making forward-looking statements regarding Broadridge that involve risks. A summary of these risks can be found on the second page of the slides. 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 risk factors faced by our business. We will also be referring to several non-GAAP financial measures, including adjusted operating income, which excludes the impact of the amortization of acquired intangibles and purchased intellectual property as well as certain acquisition and integration expenses associated with the company's acquisition activities. And adjusted EPS, which excludes those same items as well as non-operating expenses on an after tax per share basis. We believe that these non-GAAP measures provide investors with a more complete understanding of Broadridge's underlying operating results. A reconciliation to the comparable GAAP measures can be found in the earnings release and in the earnings presentation. Let me now turn the call over to Broadridge's President and Chief Executive Officer, Rich Daly. Rich?

Thanks, Edings. Good morning to everyone on our call. I'd like to start this morning off with the highlight section on page four of our presentation slides. We delivered another solid quarter. Total revenues rose 40% driven by the acquisition of DST's North American Customer Communications business, or NACC, and by 6% organic growth of our recurring fee revenues. We grew our adjusted operating income and adjusted EPS despite a 48% decline in event-driven revenues. We also achieved record Closed sales for the second quarter. As I noted, our recurring fee revenues grew by 6% on an organic basis. I'm especially pleased by the broad strength and our Net New Business as both our ICS and GTO segments reported solid growth. This is an important indication that our multiple path strategy of broadening our product lineup and deepening our relationships with key clients continues to pay off. Sales momentum remained strong. We booked a second quarter record $56 million of Closed sales, driven in part by strategic wins for our equity post-trade processing platform and our ICS tax reporting product. Year-to-date sales are up 18% versus 2016 and our pipeline remained strong. The integration of NACC is going well. We continue to make progress on our digital strategy and remain on track to realize our synergy targets. With five months remaining in fiscal year 2017, we are updating our outlook for the year. We are reaffirming our guidance for recurring fee revenue growth, adjusted EPS growth and Closed sales. We have pared back our outlook for total revenue growth and EPS growth. Jim will share the drivers behind those changes with you later in the call. Lastly, and most importantly, we remain on track to achieve the three-year targets we laid out in fiscal 2015 and remain confident in our…

Thanks, Rich, and good morning, everyone. In my prepared remarks I'll provide additional details about our growth drivers and comment on Broadridge's operating income and margin performance. I will also provide a brief update about our capital deployment in the second quarter. Finally, I will walk through the drivers behind our updated 2017 guidance. Before I get started, let me remind you that the second quarter, like the first, has historically been a smaller revenue quarter accounting for just over 20% of the annual total in recent years. Similarly adjusted net earnings in the second quarter has historically represented around 12% of the full year. So please keep this in mind as you analyze our results. First, a quick recap of our results. Second quarter 2017 recurring fee revenues rose 34% to $536 million and total revenues rose 40% to $893 million. Adjusted operating income rose 6% to $84 million and adjusted EPS rose 3% to $0.39 per share. The drivers of our growth are laid out on page seven of the presentation. As I noted, total revenues grew 40% in the quarter to $893 million. The acquisition of NACC, which occurred on the first day of the fiscal year, was the biggest driver of our total revenue growth, contributing $267 million to our revenues. That acquisition drove the increase in both recurring revenues and distribution revenues. Event-driven fee revenues fell 48% to $30 million from $57 million. This decline caused a 4 point drag in our total revenue growth and it also had an impact on our profit growth, as I will discuss in a moment. Changes in foreign currency, specifically the weaker Canadian dollar and British pound, lowered our reported revenue growth by 1 percentage point or $6 million. Recurring fee revenues grew 34% to $536 million. Excluding…

Thanks, Jim. Please turn to slide 14 for my closing remarks. Broadridge delivered another solid quarter. We reported strong top line growth as well as both – I'm sorry. We delivered strong top line growth as both continued adjusted operating income and adjusted EPS growth continued. We also reported 6% organic growth of our recurring fee revenues. Our results highlight our success in delivering sales-led growth rather than being reliant on internal growth to power our top line. That sales growth is a reflection of our efforts to expand our product lineup as part of our multiple paths to success strategy. We achieved record second quarter Closed sales and our pipeline remains very healthy. Our continued sales momentum gives us confidence that we are well-positioned to sustain our sales-led growth going forward. Notably, our growth in GTO is being driven in part by our ongoing investment in our global trade processing management platform. Investing in our technology has put Broadridge in a better position to serve the largest and most sophisticated global financial institutions, which has been a key element behind the recent strategic wins we have discussed. We have also broadened the asset class and geographic coverage of our solutions. A focus on product leadership is also a key driver of our digital strategy. With asset managers facing pressure from the trends towards passive investments, we intend to continue to deliver solutions that will enable them to lower the communication costs of servicing the assets they manage. Digital is going to be a key part of that. Last quarter we discussed the importance of blockchain leadership and our proxy business. All of these investments help us build credibility with key clients by giving them the confidence that we will continue to maintain and enhance the value propositions of our…

Yes. We'll pause for just a moment to compile the Q&A roster. Your first question is from David Togut with Evercore ISI.

Could you talk about NACC more broadly? At the time you made the acquisition, I think, Jim, you indicated that you were expecting some client attrition and that had been built into your pro formas. How is NACC performing relative to your buy plan overall?

Dave, can you repeat just that last part, you broke up?

How is NACC performing relative to your buy plan? At the time you acquired it from DST, I recall you were expecting some client attrition and that was built into your pro formas.

Dave, this is Jim. The business is largely performing in line with our acquisition business case, I would say that fees are relatively close. As I just mentioned, distribution revenues came in a lot lower as the mix of clients and the performance was different than we expected but, as you may know, from that business the distribution revenue is truly pass through. So on an earnings basis, contributing in expectation with our original guidance on this, which is $0.11 to $0.14, we're still expecting that type of contribution for the year. So we're pleased from that standpoint. Integration is going well. In particular, the real prize is achieving those synergies, which we're well on our way, as Rich mentioned. And I think importantly, Rich should comment on the strategic aspects of the deal.

Yeah. So Dave, when we did that separate call on the NACC transaction, we emphasized that it's the overall strategy and the importance of content that we came to realize as we had two years into our digital strategy. The thing that I'm particularly pleased about is that the management integration, we believe, has gone as well as one could ever expect it to go. The teams are working exceptionally well together and I feel very, very good about that. I also feel very good about where NACC was investing was in making the existing processes far more efficient. So for example, they've got a technology called InFact, which really enables the comingling of content to achieve maximum five-digit postal discounts. And when you're dealing with that kind of volume and that amount of distribution revenue, that makes you a very, very attractive provider. They have also invested heavily on technology to be able to onboard new clients far more effectively. Our technology was very, very focused on the digital capabilities. For our existing clients, we probably will be able to get them additional efficiencies and postal discounts. For their clients, they are very excited to hear our multi-channel capabilities, which ties back to that press release we did at Money 20/20. And beyond that, in terms of the dialogues we're having about the future, the amount of content we have makes us arguably the most meaningful player that can convert meaningful content to consumers into digital as we go forward. Now again, that's forward-looking in terms of where we are. In terms of the near-term, we do believe that this is going in line with what our expectations were and we believe that the way the teams are operating, we should still be able to have some success in the marketplace in the traditional model. But again, the key reason we did it was our belief that particularly for our important financial services content, this gives us a far better ability to impact the conversion to digital going forward, very similar to the way we led ED a decade plus ago in our Communications business.

Understood. Thank you very much.

Your next question is from Chris Donat with Sandler O`Neill. Christopher Roy Donat - Sandler O'Neill & Partners LP: Good morning, everyone.

Hi, Chris. Christopher Roy Donat - Sandler O'Neill & Partners LP: Jim, wanted to ask one question on the GTO business, because it looks like your pre-tax margins of 22.9% for the quarter are the best in several years. And then when I look at your full year guidance, it's actually down a few percentage points from where we were in the quarter. Was there anything either sort of one-time on the positive side on the revenue for the December quarter? Or was there anything on the expense side going forward that you're expecting that's the mismatch there? I'm just wondering why margins might not be sustainable.

Sure. Thanks, Chris. First off, as you noted, GTO is performing really well. In our outlook, we increased the revenue outlook to 6% to 9% revenue growth, 4% to 6%. And as you've pointed out, we increased the margin from about 18.5% to 19.5%, and as you said 19.5% below the second quarter number. Really, Chris, overall really positive. So you have two factors that are showing up in Q2. One are we had a healthy trade quarter, 11% equity volume, as we've explained before that comes in at very high margin, so that's always a margin booster in the quarter it happens. We're not forecasting that type of outperformance to hold for the full year. And then the recurring part on the positive side that we talked about is we've made a number of efficiency initiatives, some of them which we took the charges for last year in our results and we're now seeing the benefit. That will stay with us. That's going to be in terms of where you are maybe less visible, but the more visible one in the quarter is certainly the equity trades. Christopher Roy Donat - Sandler O'Neill & Partners LP: Okay. And then I don't know if you can give us an update, but I'll ask. Anything with the Scottrade conversion? And I'm just wondering if there's anything you got, because I think They (41:21) is part of their agreement to be acquired by TD Ameritrade have to complete their conversion to Broadridge by March 1. Is there any special revenues that might be recognized with that or is that – anyway, if you can comment on Scottrade and anything that might be unusual around the conversion there?

So, Chris, this is Rich. As far as the relationship with Scottrade, let me first talk about it on a macro basis. We have a strong relationship with Scottrade, TD Ameritrade and TD overall going right through – I have a relationship with the CEO of TD overall and an exceptionally high regard for the management of all three organizations. So it's always positive when you have open communications. The timing of this transaction to close is probably the second half of the calendar year, generally round numbers there. And one of the things is we're doing meaningful business with all three firms today even before they were committed, Scottrade as an independent company to come onto our platform. So we will in every situation and in particularly in this situation remain committed to their success and the success of the transaction as it goes forward. Now, it's a pretty complicated relationship, okay, which because of the, I'll call it, the quality of management on both sides, and I like to believe because of a high level of respect between the managements on both sides, there will be lots of dialogues about how to best make this a success for them, and we're going to be as flexible as we need to be to enable it to be successful. So that's a long answer to say, there's a lot of moving parts here right now, and although we have some idea of what their preferred direction is, until it's final we don't know. And even if it was final, okay, we're not going to be at liberty to disclose their strategy as we go forward. I expect Broadridge to continue to be a meaningful part of the new TD Ameritrade combined with Scottrade going forward, when it closes as well as TD Bank.

And, Chris, just sort of on the financials, as we talked about last time, if the processing business that we want from Scottrade weren't to materialize, long-term we'd say that's about a $0.03 impact on a run rate basis for the year. We had assumed very modest contributions from that business, and we have no assumptions at this time about any one-time fees associated with protective provisions in the contract.

Right. Well, of course there's always termination fees, because of the investments we made, et cetera. But I'd always prefer to get recurring revenue versus a termination fee.

Your next question is from Todd Cohen with Barclays.

Hey, guys. It's actually Darrin Peller on. Thanks for taking the question. Let me just start off, A, if you don't mind just giving us some more color on what you think the implications or potential opportunities could be around some of the regulatory/administrative changes going on, whether it's on the DOL being held up, or potentially Dodd-Frank being changed, repealed, whatever, I mean I think for your business in particular, there could be some pretty material implications. Can you give us some color on your thoughts, Rich? And then I (45:22).

Sure. Let me start with DOL. What I would like is DOL to get decided, because I really do believe that, in particularly financial consultants are concerned about putting invested into new assets, until they understand the full implications of that. We don't have the ability other than with conversations with clients to tie that to some of the slowdown in mutual fund interim growth. All right. So we're not relying on that as being the driver. However, that is one piece that consistently comes up in conversations, including the dinner I had last night. All right. So making a decision on that to me – and making a decision on anything candidly, and knowing what the decision is, is always the most important thing. When you talk about Dodd-Frank, the way it works with our client on our value proposition, so the pieces that Dodd-Frank are going to be in or the pieces that Dodd-Frank that are anticipated to be in, people on our platform had the benefit of us doing the heavy lifting, okay. People not on our platform had to go through the pain of doing the heavy lifting themselves. So it gave them more reason to want to be on our platform. Darrin, in the case of Barclays, it's a very good example, where with all the complications to business that was on a (46:54) complication Barclays needed to deal with, given their relationship with Broadridge. So I don't see a lot of change coming to us, as it relates to Dodd-Frank in terms of anything other than if it increases the ability for people to have more capital and then more trading activity, I can't see how that could ever be viewed as a negative, all righty. So we're not planning on that at this…

All right. Thanks. And just one quick follow-up on the ICS side. I mean I think you may have said it before, but the position growth rate in the quarter again was – if you can just give me that data point again and where you expect that to be trending? I know it's tough to know what the market will do. Go ahead.

Yes. Interim positions, Darrin, at 1%. And right now as best we can tell, we're holding our outlook for 1% for the year until we learn more. And on the equity proxy side, our growth was 4%, and as we said, that would be consistent with our expectations for the full year.

Okay. So then just keeping that in the back of our mind, I mean the growth drivers of ICS continue to be the new business you're bringing on, the data analytics opportunities we've talked about in the past, obviously, putting aside the NACC business?

That's correct. All right. And again, driving more efficient communications, driving more activity across whether it be corporate issuers, mutual funds, the broker dealer pieces that are out there.

Your next question is from Patrick O'Shaughnessy with Raymond James. Patrick J. O'Shaughnessy - Raymond James & Associates, Inc.: So first question is on your GTO segment. Where do you think those segment margins can go to over time? So, obviously, we know your full year guidance, but they keep kind of climbing 100 basis points or so year-after-year. Do you think the endpoint margins can kind of be in the mid-20%s? Or what are your long-term expectations or aspirations for that segment?

Patrick, good morning. This is Jim. Obviously, the business that has natural scale in it, and as we continue with the sales momentum, we do see the opportunity for margins to continue to climb. As we said overall for Broadridge, we think the opportunity is about 50 basis points per year of margin expansion on an average basis. I think GTO resembles that, although we're obviously outpacing that at the moment. So beyond sort of thinking about a 50 basis point margin expansion per year, no other real long-term guidance other than as we continue adding the types of deals that Rich mentioned earlier, which typically have contribution margins in the 40% and up range, we should continue to drive margins there. Patrick J. O'Shaughnessy - Raymond James & Associates, Inc.: Got it. And then my follow-up, on the ICS side in your other ICS revenue line, I know it's kind of a collection of smaller businesses mostly that you've acquired recently, growth has decelerated a little bit the last few quarters. I think it's been 4% year-over-year the last couple of quarters. Can you talk about some of the components within that and what your outlook is for that revenue line in particular?

Yeah. Patrick, as you said – this is Jim – that is a relatively small item growing on a pace of like $67 million or something like that. So, we do have expectations that that grows higher, closer to double-digit growth. But you can see some ups and downs in given quarters. So for instance, we'll have some of these newer businesses that you can actually have a professional services component as it's on-boarding new business. And if we miss that by a couple million dollars or something like that, across a series of the advisor or data analytics businesses, that can cause a blip in that growth rate. We'd still project that segment, that area to have growth – organic growth greater than the overall Broadridge growth. I also think what's noteworthy, I look more to the forward indicators on that one, or when I look at the sales on a record quarter, data analytics or this other ICS that you pointed out, Patrick, is disproportionately contributes to that sales number north of 25% of those sales. So again, the indicators are very strong in the near term. There can always be a blip or two in the short-term. Patrick J. O'Shaughnessy - Raymond James & Associates, Inc.: Great. That's very helpful. Thank you.

Your next question is from Shane Svenpladsen with Avondale Partners.

Acknowledging that we're still relatively early, could you provide an update on the development of the Inveshare assets and the timeline for completing that platform?

Sure. Our position in proxy is unique. So let me take a step back on blockchain. The challenge for blockchain – the opportunity for blockchain is great. There's going to be lots of things that in some of the activities they're talking about, the people are going to be concerned about data security and things of that nature. But there's no question that the technology could enable far more efficiency than the current technologies being used today. The challenge is you would need everybody onto the same platform to use it. What's unique about proxy is in essence through Broadridge, the vast majority of people are already on the same platform. So we could enable, for example, an issuer who want to participate in blockchain and have instant updates to their voting results right up until the time they close the polls, okay, and the ability for people to change balances and whatnot, if shares were moved, et cetera, to be the full benefits of blockchain. So we think we're in a unique position to rollout a blockchain application at the level of proxy, because we're in essence putting everybody on the same platform. Our technology group is now working with the Inveshare technology all right, and with that we believe we have a timeline to be in a position to have a blockchain capability over the next couple of years, all right. And we'll be making announcements as it relates to blockchain, whether it be proxy on a global basis or proxy on a domestic basis periodically over the next, call it, two years.

Appreciate it. I'll get back in the queue.

At this time, there are no questions. Mr. Thibault, do you have any closing remarks?

Well, thank you everyone for joining us on our call this morning. For those of us who want to attend launch, please reach out to me, Edings Thibault and to others. Thank you for your interest in Broadridge and we look forward to keeping you updated.

This concludes today's conference. You may now disconnect.