Recurring revenue growth constant currency was 4%, all organic, driven by Net New Business and Internal Growth in GTO and ICS. This indicates successful organic growth initiatives.

Closed sales for the three months ended March 31, 2024, were $79.6 million, an increase of $18.0 million, or 29%, compared to $61.6 million for the three months ended March 31, 2023. This indicates strong sales performance and potential for future revenue growth.

The SEC rule requires that shorter summary documents, referred to as tailored shareholder reports, be distributed in lieu of long-form annual and semi-annual fund reports or notices of the availability of such reports. We are reviewing the full impact of the new rule, however we currently estimate a reduction in our annual Recurring revenues of approximately $30 million phasing in over fiscal years 2025 and 2026, assuming no offset from new services.

Operating expenses increased $64.7 million, or 5%, to $1,423.6 million from $1,358.9 million. This indicates that management is controlling costs effectively while still growing the business.

The Fiscal 2021 Revolving Credit Facility and Fiscal 2024 Amended Term Credit Agreement is subject to certain covenants, including a leverage ratio. At March 31, 2024, the Company was in compliance with all covenants of the Fiscal 2021 Revolving Credit Facility and Fiscal 2024 Amended Term Loan.

During the fourth quarter of fiscal year 2023, Broadridge implemented a corporate restructuring initiative to exit and realign some of its businesses, streamline the Company's management structure, reallocate work to lower cost locations, and reduce headcount in deprioritized areas (the “Corporate Restructuring Initiative”). The Company expects to incur the remaining charges for the Corporate Restructuring Initiative by the end of fiscal year 2024.

Management currently estimates an aggregate range of reasonably possible losses for such matters of up to $25 million in excess of any established reserves. The Litigation matters underlying the estimated range will change from time to time, and it is reasonably possible that the actual results may vary significantly from this estimate.

The SEC rule requires that shorter summary documents, referred to as tailored shareholder reports, be distributed in lieu of long-form annual and semi-annual fund reports or notices of the availability of such reports. We are reviewing the full impact of the new rule, however we currently estimate a reduction in our annual Recurring revenues of approximately $30 million phasing in over fiscal years 2025 and 2026, assuming no offset from new services.

A law firm representing a machine operator currently employed by BRCC, a business within the ICS segment in Edgewood, New York sought compensation under the Fair Labor Standards Act and New York Labor Law on behalf of the machine operator and a proposed class of machine operators. During the third quarter of 2024, Broadridge agreed to settle the matter for $9.9 million and provided an incremental reserve of $8.2 million. The settlement is subject to final documentation and court approval.

Broadridge, a Delaware corporation and a part of the S&P 500® Index, is a global financial technology leader providing investor communications and technology-driven solutions to banks, broker-dealers, asset and wealth managers, public companies, investors and mutual funds.

With over 60 years of experience, including over 15 years as an independent public company, we provide integrated solutions and an important infrastructure that powers the financial services industry.

Our solutions enable better financial lives by powering investing, governance and communications and help reduce the need for our clients to make significant capital investments in operations infrastructure, thereby allowing them to increase their focus on core business activities.

Operating expenses increased $64.7 million, or 5%, to $1,423.6 million from $1,358.9 million. This indicates that management is controlling costs effectively while still growing the business.

Selling, general and administrative expenses increased $15.0 million, or 7%, primarily driven by higher compensation related expenses of $12.9 million.

Cost of revenues increased $49.6 million, or 4%, primarily reflecting the impact of higher amortization expense in our GTO segment of $16.0 million and higher postage and distribution expenses in our ICS segment of $13.2 million and an increase in other revenue related expenses.

With over 60 years of experience, including over 15 years as an independent public company, we provide integrated solutions and an important infrastructure that powers the financial services industry.

Broadridge, a Delaware corporation and a part of the S&P 500® Index, is a global financial technology leader providing investor communications and technology-driven solutions to banks, broker-dealers, asset and wealth managers, public companies, investors and mutual funds.

Our solutions enable better financial lives by powering investing, governance and communications and help reduce the need for our clients to make significant capital investments in operations infrastructure, thereby allowing them to increase their focus on core business activities.

At the current time, and in future periods, we expect cash generated by our operations, together with existing cash, cash equivalents, and borrowings from the capital markets, to be sufficient to cover cash needs for working capital, capital expenditures, strategic acquisitions, dividends and common stock repurchases.

We expect existing domestic cash, cash equivalents, cash flows from operations and borrowing capacity to continue to be sufficient to fund our domestic operating activities and cash commitments for investing and financing activities, such as regular quarterly dividends, debt repayment schedules, and material capital expenditures, for at least the next 12 months and thereafter for the foreseeable future.

In addition, as of March 31, 2024, the Company has a future commitment to fund $0.6 million to one of the Company's other investees.

In addition, we provide public corporations and mutual funds with a full suite of solutions to help manage their annual meeting process, including a full suite of annual meeting and shareholder engagement solutions such as registered and beneficial proxy materials distribution, proxy processing and tabulation services, digital voting solutions, proxy and shareholder report document management solutions, virtual shareholder meeting services and environmental, social and governance solutions.

Broadridge, a Delaware corporation and a part of the S&P 500® Index, is a global financial technology leader providing investor communications and technology-driven solutions to banks, broker-dealers, asset and wealth managers, public companies, investors and mutual funds.

As a multi-national company, we are subject to variability of our reported U.S. dollar results due to changes in foreign currency exchange rates.