Broadridge Financial Solutions, Inc 10-Q for FY2022 Q2

Broadridge Financial Solutions, Inc. (BR)

10-Q 2022-02-01 For: 2021-12-31

Added on April 04, 2026

About this 10-Q

Broadridge Financial Solutions, Inc filed this 10-Q on February 1, 2022, covering the quarter ended December 31, 2021 (FY2022 Q2).

Headline figures

Quarter ended December 31, 2021, as reported in this filing, compared with the same period a year earlier where the filing states it.

Revenue: $1.26B; up 19.4% from $1.05B a year earlier
Net income: $47.2M; down 16.2% from net income of $56.3M a year earlier
Diluted EPS: $0.40; down 16.7% from $0.48 a year earlier

Search and read filings like this one from Claude or ChatGPT with the SEC filings MCP server →


Delaware			33-1151291
(State or Other Jurisdiction of Incorporation or Organization)			(I.R.S. Employer Identification No.)

5 Dakota Drive			11042
Lake Success
New York
(Address of principal executive offices)			(Zip Code)


ITEM		PAGE
NOTE ABOUT FORWARD-LOOKING STATEMENTS		3
PART I.	FINANCIAL INFORMATION	4
Item 1.	FINANCIAL STATEMENTS	4
Item 2.	MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS	30
Item 3.	QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK	50
Item 4.	CONTROLS AND PROCEDURES	50
PART II.	OTHER INFORMATION	51
Item 1.	LEGAL PROCEEDINGS	51
Item 1A.	RISK FACTORS	51
Item 2.	UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS	51
Item 6.	EXHIBITS	52


		Three Months Ended December 31,				Six Months Ended December 31,
		2021		2020		2021		2020
Revenues	(Note 3)	$	1,259.6	$	1,054.9	$	2,452.5	$	2,072.3
Operating expenses:
Cost of revenues		978.4		806.5		1,892.5		1,593.5
Selling, general and administrative expenses		212.3		169.0		387.8		320.7
Total operating expenses		1,190.7		975.5		2,280.3		1,914.3
Operating income		68.9		79.5		172.1		158.1
Interest expense, net	(Note 5)	(21.4)		(11.1)		(44.0)		(25.6)
Other non-operating income, net		4.4		1.0		2.0		10.5
Earnings before income taxes		51.9		69.4		130.1		143.0
Provision for income taxes	(Note 13)	4.7		13.1		15.7		20.9
Net earnings		$	47.2	$	56.3	$	114.4	$	122.1

Basic earnings per share		$	0.40	$	0.49	$	0.98	$	1.06
Diluted earnings per share		$	0.40	$	0.48	$	0.97	$	1.04

Weighted-average shares outstanding:
Basic	(Note 4)	116.6		115.7		116.4		115.5
Diluted	(Note 4)	118.7		117.8		118.5		117.6


	Three Months Ended December 31,				Six Months Ended December 31,
	2021		2020		2021		2020
Net earnings	$	47.2	$	56.3	$	114.4	$	122.1
Other comprehensive income (loss), net:
Foreign currency translation adjustments	(31.8)		5.2		(102.6)		42.1
Pension and post-retirement liability adjustment, net of taxes of $(0.2) and $(0.2) for the three months ended December 31, 2021 and 2020, respectively; and $(0.3) and $(0.4) for the six months ended December 31, 2021 and 2020, respectively	0.5		0.6		1.0		1.2
Cash flow hedge amortization, net of taxes of $(0.1) and $(0.0) for the three months ended December 31, 2021 and 2020, respectively; and $(0.1) and $(0.0) for the six months ended December 31, 2021 and 2020, respectively	0.2		—		0.4		—
Total other comprehensive income (loss), net	(31.0)		5.7		(101.1)		43.3
Comprehensive income	$	16.2	$	62.0	$	13.3	$	165.4


		December 31, 2021		June 30, 2021
Assets
Current assets:
Cash and cash equivalents		$	281.2	$	274.5
Accounts receivable, net of allowance for doubtful accounts of $5.8 and $9.3, respectively		779.5		820.3
Other current assets		205.9		166.4
Total current assets		1,266.6		1,261.3
Property, plant and equipment, net		169.7		177.2
Goodwill		3,663.8		3,720.1
Intangible assets, net		1,253.0		1,425.0
Deferred client conversion and start-up costs		994.9		773.7
Other non-current assets	(Note 8)	768.1		762.5
Total assets		$	8,115.9	$	8,119.8
Liabilities and Stockholders’ Equity
Current liabilities:

Payables and accrued expenses	(Note 9)	$	878.6	$	1,102.7
Contract liabilities		209.2		185.3
Total current liabilities		1,087.8		1,288.0
Long-term debt	(Note 10)	4,156.6		3,887.6
Deferred taxes		399.2		400.7
Contract liabilities		200.1		197.2
Other non-current liabilities	(Note 11)	524.2		537.2
Total liabilities		6,367.9		6,310.6
Commitments and contingencies	(Note 14)
Stockholders’ equity:
Preferred stock: Authorized, 25.0 shares; issued and outstanding, none		—		—
Common stock, $0.01 par value: 650.0 shares authorized; 154.5 and 154.5 shares issued, respectively; and 116.8 and 116.1 shares outstanding, respectively		1.6		1.6
Additional paid-in capital		1,307.7		1,245.5
Retained earnings		2,549.1		2,583.8
Treasury stock, at cost: 37.7 and 38.3 shares, respectively		(2,018.4)		(2,030.9)
Accumulated other comprehensive income (loss)	(Note 15)	(91.9)		9.2
Total stockholders’ equity		1,748.1		1,809.1
Total liabilities and stockholders’ equity		$	8,115.9	$	8,119.8


☒			QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934


☐			TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934


	Three Months Ended December 31, 2021
	Common Stock			Additional Paid-In Capital		Retained Earnings		Treasury Stock		Accumulated Other Comprehensive Income (Loss)		Total Stockholders’ Equity
	Shares	Amount
Balances, September 30, 2021	154.5	$	1.6	$	1,263.6	$	2,576.6	$	(2,027.0)	$	(60.9)	$	1,753.8
Comprehensive income (loss)	—	—		—		47.2		—		(31.0)		16.2
Stock option exercises	—	—		31.9		—		—		—		31.9
Stock-based compensation	—	—		22.5		—		—		—		22.5
Treasury stock acquired (less than 0.1 shares)	—	—		—		—		(1.7)		—		(1.7)
Treasury stock reissued (0.4 shares)	—	—		(10.3)		—		10.3		—		—
Common stock dividends ($0.64 per share)	—	—		—		(74.7)		—		—		(74.7)
Balances, December 31, 2021	154.5	$	1.6	$	1,307.7	$	2,549.1	$	(2,018.4)	$	(91.9)	$	1,748.1


	Six Months Ended December 31, 2021
	Common Stock			Additional Paid-In Capital		Retained Earnings		Treasury Stock		Accumulated Other Comprehensive Income (Loss)		Total Stockholders’ Equity
	Shares	Amount
Balances, June 30, 2021	154.5	$	1.6	$	1,245.5	$	2,583.8	$	(2,030.9)	$	9.2	$	1,809.1
Comprehensive income (loss)	—	—		—		114.4		—		(101.1)		13.3
Stock option exercises	—	—		40.6		—		—		—		40.6
Stock-based compensation	—	—		35.8		—		—		—		35.8
Treasury stock acquired (less than 0.1 shares)	—	—		—		—		(1.7)		—		(1.7)
Treasury stock reissued (0.6 shares)	—	—		(14.2)		—		14.2		—		—
Common stock dividends ($1.28 per share)	—	—		—		(149.1)		—		—		(149.1)
Balances, December 31, 2021	154.5	$	1.6	$	1,307.7	$	2,549.1	$	(2,018.4)	$	(91.9)	$	1,748.1


	Three Months Ended December 31, 2020
	Common Stock			Additional Paid-In Capital		Retained Earnings		Treasury Stock		Accumulated Other Comprehensive Income (Loss)		Total Stockholders’ Equity
	Shares	Amount
Balances, September 30, 2020	154.5	$	1.6	$	1,198.5	$	2,302.1	$	(2,025.5)	$	(62.9)	$	1,413.8
Comprehensive income (loss)	—	—		—		56.3		—		5.7		62.0
Stock option exercises	—	—		6.5		—		—		—		6.5
Stock-based compensation	—	—		18.2		—		—		—		18.2
Treasury stock acquired (0.0 shares)	—	—		—		—		—		—		—
Treasury stock reissued (0.2 shares)	—	—		(3.6)		—		3.6		—		—
Common stock dividends ($0.575 per share)	—	—		—		(66.5)		—		—		(66.5)
Balances, December 31, 2020	154.5	$	1.6	$	1,219.6	$	2,291.8	$	(2,021.8)	$	(57.1)	$	1,434.0


	Six Months Ended December 31, 2020
	Common Stock			Additional Paid-In Capital		Retained Earnings		Treasury Stock		Accumulated Other Comprehensive Income (Loss)		Total Stockholders’ Equity
	Shares	Amount
Balances, June 30, 2020	154.5	$	1.6	$	1,178.5	$	2,302.6	$	(2,035.7)	$	(100.4)	$	1,346.5
Comprehensive income (loss)	—	—		—		122.1		—		43.3		165.4
Stock option exercises	—	—		27.3		—		—		—		27.3
Stock-based compensation	—	—		28.5		—		—		—		28.5
Treasury stock acquired (less than 0.1 shares)	—	—		—		—		(0.8)		—		(0.8)
Treasury stock reissued (0.6 shares)	—	—		(14.6)		—		14.6		—		—
Common stock dividends ($1.15 per share)	—	—		—		(132.9)		—		—		(132.9)
Balances, December 31, 2020	154.5	$	1.6	$	1,219.6	$	2,291.8	$	(2,021.8)	$	(57.1)	$	1,434.0


	December 31, 2021		June 30, 2021
	(in millions)
Contract assets	$	96.7	$	89.8
Contract liabilities	$	409.3	$	382.5


	Itiviti		Advisor-Stream		Total
	(in millions)
Cash payments, net of cash acquired	$	2,580.4	$	23.2	$	2,603.6
Deferred payments, net	—		2.9		2.9
Contingent consideration liability	—		8.5		8.5
Aggregate purchase price	$	2,580.4	$	34.5	$	2,615.0

Net tangible assets acquired / (liabilities assumed)	$	(246.5)	$	(3.3)	$	(249.8)
Goodwill	1,945.7		27.3		1,973.0
Intangible assets	881.3		10.5		891.8
Aggregate purchase price	$	2,580.4	$	34.5	$	2,615.0


	Itiviti

Accounts receivable	$	39.6
Other current assets	14.1
Property, plant and equipment	9.4
Intangible assets	881.3
Goodwill	1,945.7
Other non-current assets	28.7
Payables and accrued expenses	(45.9)
Current contract liabilities	(58.8)
Deferred taxes	(199.6)

Other long term liabilities	(34.0)
Consideration paid, net of cash acquired	$	2,580.4


	Years ended June 30,
	2021		2020
	(in millions)
Revenues	$	5,221.7	$	4,723.4
Net earnings	$	514.9	$	367.5

Basic earnings per share	$	4.45	$	3.21
Diluted earnings per share	$	4.37	$	3.14


	Six Months Ended December 31,
	2021		2020
Cash Flows From Operating Activities
Net earnings	$	114.4	$	122.1
Adjustments to reconcile net earnings to net cash flows (used in) provided by operating activities:
Depreciation and amortization	41.1		31.3
Amortization of acquired intangibles and purchased intellectual property	131.2		64.9
Amortization of other assets	66.3		52.9
Write-down of long-lived assets and related charges	8.1		33.6
Stock-based compensation expense	36.2		28.7
Deferred income taxes	16.4		10.9
Other	(19.3)		(29.0)
Changes in operating assets and liabilities, net of assets and liabilities acquired:
Current assets and liabilities:
Decrease in Accounts receivable, net	49.2		100.3
Increase in Other current assets	(32.5)		(35.7)
Decrease in Payables and accrued expenses	(236.5)		(140.2)
Increase in Contract liabilities	28.3		5.9
Non-current assets and liabilities:
Increase in Other non-current assets	(321.5)		(211.2)
Increase in Other non-current liabilities	24.0		48.8
Net cash flows (used in) provided by operating activities	(94.6)		83.3
Cash Flows From Investing Activities
Capital expenditures	(11.3)		(30.1)
Software purchases and capitalized internal use software	(17.9)		(20.7)
Proceeds from asset sales	—		18.0
Acquisitions, net of cash acquired	(13.3)		—
Other investing activities	(11.4)		(11.0)
Net cash flows used in investing activities	(53.9)		(43.9)
Cash Flows From Financing Activities
Debt proceeds	480.0		660.0
Debt repayments	(211.0)		(687.8)
Dividends paid	(141.2)		(128.5)
Purchases of Treasury stock	(1.7)		(0.8)
Proceeds from exercise of stock options	40.5		27.6
Other financing activities	(7.5)		(27.2)
Net cash flows provided by (used in) financing activities	159.2		(156.6)
Effect of exchange rate changes on Cash and cash equivalents	(4.1)		6.2
Net change in Cash and cash equivalents	6.6		(111.0)


	Three Months Ended December 31,				Six Months Ended December 31,

	2021		2020		2021		2020
	(in millions)
Investor Communication Solutions
Regulatory	$	166.4	$	144.7	$	331.8	$	279.5
Data-driven fund solutions	88.8		86.1		172.1		165.1
Issuer	23.7		20.8		44.2		38.5
Customer communications	148.2		135.8		289.1		273.4
Total ICS Recurring fee revenues	427.1		387.3		837.3		756.5

Equity and other	24.6		20.6		52.2		38.7
Mutual funds	40.1		24.3		88.9		51.4
Total ICS Event-driven fee revenues	64.7		44.9		141.1		90.0

Distribution revenues	401.5		343.8		768.4		675.0

Total ICS Revenues	$	893.3	$	776.0	$	1,746.8	$	1,521.5

Global Technology and Operations
Capital markets	$	224.1	$	158.4	$	433.5	$	314.7
Wealth and investment management	146.4		126.9		277.7		251.0
Total GTO Recurring fee revenues	370.6		285.3		711.2		565.7

Foreign currency exchange	(4.3)		(6.4)		(5.5)		(14.9)

Total Revenues	$	1,259.6	$	1,054.9	$	2,452.5	$	2,072.3

Revenues by Type
Recurring fee revenues	$	797.6	$	672.6	$	1,548.5	$	1,322.2
Event-driven fee revenues	64.7		44.9		141.1		90.0
Distribution revenues	401.5		343.8		768.4		675.0
Foreign currency exchange	(4.3)		(6.4)		(5.5)		(14.9)
Total Revenues	$	1,259.6	$	1,054.9	$	2,452.5	$	2,072.3


	December 31, 2021		June 30, 2021
	(in millions)
ROU assets (a)	$	244.4	$	262.0
Long-term investments	215.0		194.0
Deferred sales commissions costs	105.8		108.6
Contract assets (b)	96.7		89.8
Long-term broker fees	43.2		48.7
Deferred data center costs (c)	21.1		24.3
Other	41.8		35.0
Total	$	768.1	$	762.5


	December 31, 2021		June 30, 2021
	(in millions)
Accounts payable	$	192.2	$	248.9
Employee compensation and benefits	236.8		343.7
Accrued broker fees	80.5		136.0
Accrued dividend payable	74.7		66.8
Business process outsourcing administration fees	74.1		66.1
Customer deposits	64.1		55.5
Operating lease liabilities	40.5		40.2
Accrued taxes	35.8		42.6
Other	79.9		102.9
Total	$	878.6	$	1,102.7


	December 31, 2021
	Level 1		Level 2		Level 3		Total
	(in millions)
Assets:
Cash and cash equivalents:
Money market funds (a)	$	—	$	—	$	—	$	—
Other current assets:
Securities	0.7		—		—		0.7
Other non-current assets:
Securities	132.9		—		—		132.9
Total assets as of December 31, 2021	$	133.6	$	—	$	—	$	133.6
Liabilities:
Contingent consideration obligations	—		—		18.8		18.8
Total liabilities as of December 31, 2021	$	—	$	—	$	18.8	$	18.8


	Three Months Ended December 31,				Six Months Ended December 31,
	2021		2020		2021		2020
	(in millions)
Beginning balance	$	19.0	$	23.7	$	23.2	$	33.1
Net increase in contingent consideration liability	—		—		1.1		—
Foreign currency impact on contingent consideration liability	(0.2)		—		(0.6)		1.4
Payments	—		(6.0)		(4.9)		(16.7)
Ending balance	$	18.8	$	17.8	$	18.8	$	17.8


	Expiration Date	Principal amount outstanding at December 31, 2021		Carrying value at December 31, 2021		Carrying value at June 30, 2021		Unused Available Capacity		Fair Value at December 31, 2021
				(in millions)




Long-term debt
Fiscal 2021 Revolving Credit Facility:
U.S. dollar tranche	April 2026	$	305.0	$	305.0	$	20.0	$	795.0	$	305.0
Multicurrency tranche	April 2026	76.0		76.0		94.4		324.0		76.0
Total Revolving Credit Facility		381.0		381.0		114.4		1,119.0		381.0

Fiscal 2021 Term Loans	May 2024	1,550.0		1,544.6		1,543.4		—		1,550.0

Fiscal 2016 Senior Notes	June 2026	500.0		497.0		496.7		—		534.2
Fiscal 2020 Senior Notes	December 2029	750.0		743.0		742.5		—		775.6
Fiscal 2021 Senior Notes	May 2031	1,000.0		991.1		990.6		—		1,007.9
Total Senior Notes		2,250.0		2,231.1		2,229.8		—		2,317.7



Total debt		$	4,181.0	$	4,156.6	$	3,887.6	$	1,119.0	$	4,248.7


Years ending June 30,	2022		2023		2024		2025		2026		Thereafter		Total
(in millions)	$	—	$	—	$	1,550.0	$	—	$	881.0	$	1,750.0	$	4,181.0


	Stock Options			Time-based Restricted Stock Units			Performance-based Restricted Stock Units
	Number of Options	Weighted- Average Exercise Price		Number of Shares	Weighted- Average Grant Date Fair Value		Number of Shares	Weighted- Average Grant Date Fair Value
Balances at September 30, 2021	3,022,516	$	90.32	798,376	$	120.31	223,849	$	131.34
Granted	22,038	173.00		288,678	161.45		100,862	158.28
Exercise of stock options (a)	(410,031)	77.70		—	—		—	—
Vesting of restricted stock units	—	—		(39,756)	99.96		—	—
Expired/forfeited	(23,161)	101.09		(19,142)	139.85		(3,441)	131.63
Balances at December 31, 2021 (b),(c)	2,611,362	$	92.91	1,028,156	$	132.28	321,270	$	139.80


	Foreign Currency Translation		Pension and Post- Retirement Liabilities		Cash Flow Hedge		Total
	(in millions)
Balances at September 30, 2021	$	(37.9)	$	(14.9)	$	(8.1)	$	(60.9)
Other comprehensive income/(loss) before reclassifications	(31.8)		—		—		(31.8)
Amounts reclassified from accumulated other comprehensive income/(loss)	—		0.5		0.2		0.7
Balances at December 31, 2021	$	(69.7)	$	(14.4)	$	(7.8)	$	(91.9)


	Earnings (Loss) before Income Taxes
	Three Months Ended December 31,				Six Months Ended December 31,
	2021		2020		2021		2020
	(in millions)
Investor Communication Solutions	$	58.8	$	40.9	$	141.2	$	93.3
Global Technology and Operations	34.4		48.6		53.1		118.5
Other	(39.7)		(17.3)		(61.2)		(63.2)
Foreign currency exchange	(1.7)		(2.9)		(3.1)		(5.7)
Total	$	51.9	$	69.4	$	130.1	$	143.0


	Select Operating Metrics

	Three Months Ended December 31,				Six Months Ended December 31,
	2021		2020		2021		2020


Record Growth
Equity proxy	20	%	24	%	29	%	20	%
Mutual fund interims	12	%	5	%	13	%	8	%

Internal Trade Growth	1	%	24	%	1	%	17	%


	Three Months Ended December 31,
							Change
	2021			2020			$		%
	(in millions, except per share amounts)
Revenues	$	1,259.6		$	1,054.9		$	204.6	19
Cost of revenues	978.4			806.5			172.0		21
Selling, general and administrative expenses	212.3			169.0			43.3		26
Total operating expenses	1,190.7			975.5			215.3		22

Operating income	68.9			79.5			(10.6)		(13)
Margin	5.5		%	7.5		%
Interest expense, net	(21.4)			(11.1)			(10.3)		93
Other non-operating income, net	4.4			1.0			3.4		NM
Earnings before income taxes	51.9			69.4			(17.5)		(25)
Provision for income taxes	4.7			13.1			(8.4)		(64)
Effective tax rate	9.1		%	18.9		%
Net earnings	$	47.2		$	56.3		$	(9.1)	(16)
Basic earnings per share	$	0.40		$	0.49		$	(0.09)	(18)
Diluted earnings per share	$	0.40		$	0.48		$	(0.08)	(17)

Weighted-average shares outstanding:
Basic	116.6			115.7
Diluted	118.7			117.8


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)
October 1, 2021 - October 31, 2021	2,619	$	166.02	—	9,586,545
November 1, 2021 - November 30, 2021	1,965	177.24		—	9,586,545
December 1, 2021 - December 31, 2021	4,895	177.24		—	9,586,545
Total	9,479	$	174.14	—



10.1						First Amendment dated as of December 23, 2021 to the Term Credit Agreement dated as of March 27, 2021, among Broadridge Financial Solutions, Inc., the Lenders party thereto and JPMorgan Chase Bank, N.A., as Administrative Agent.

10.2						F irst Amendment dated as of December 23, 2021 to the Amended and Restated Credit Agreement dated as of April 23, 2021, among Broadridge Financial Solutions, Inc., the Lenders party thereto and JPMorgan Chase Bank, N.A., as Administrative Agent.

31.1						Certification of the Chief Executive Officer of Broadridge Financial Solutions, Inc., pursuant to Rule 13a-14 of the Exchange Act, as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.

31.2						Certification of the Chief Financial Officer of Broadridge Financial Solutions, Inc., pursuant to Rule 13a-14 of the Exchange Act, as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.

32.1						Certification of the Chief Executive Officer pursuant to Rule 13a-14(b) of the Exchange Act and 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.

32.2						Certification of the Chief Financial Officer pursuant to Rule 13a-14(b) of the Exchange Act and 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.

101						The following financial statements from the Broadridge Financial Solutions, Inc. Quarterly Report on Form 10-Q for the quarter ended December 31, 2021, formatted in eXtensible Business Reporting Language (XBRL): (i) condensed consolidated statements of earnings for the three and six months ended December 31, 2021 and 2020, (ii) condensed consolidated statements of comprehensive income for the three and six months ended December 31, 2021 and 2020, (iii) condensed consolidated balance sheets as of December 31, 2021 and June 30, 2021, (iv) condensed consolidated statements of cash flows for the six months ended December 31, 2021 and 2020, (v) condensed consolidated statements of stockholders’ equity for the three and six months ended December 31, 2021 and 2020, and (vi) the notes to the condensed consolidated financial statements. XBRL Instance Document does not appear in the Interactive Data File because its XBRL tags are embedded within the Inline XBRL document.

104						Cover Page Interactive Data File (Formatted as Inline XBRL and contained in Exhibit 101)


	BROADRIDGE FINANCIAL SOLUTIONS, INC.

Date: February 1, 2022	By:	/s/ Edmund L. Reese
		Edmund L. Reese
		Corporate Vice President and Chief Financial Officer
		(Principal Financial and Accounting Officer)


BROADRIDGE FINANCIAL SOLUTIONS, INC.,
by:
			/s/ Edmund Reese
			Name: Edmund Reese Title: Chief Financial Officer


JPMORGAN CHASE BANK, N.A., as a Lender and as Administrative Agent,
by:
			/s/ Ryan Zimmerman
			Name: Ryan Zimmerman Title: Vice President


Lender:
by:
			/s/ Alexandra M. Knights
			Name: Alexandra M. Knights Title: Vice President


Lender:
by:
			/s/ Tracy L. Moosbrugger
			Name: Tracy L. Moosbrugger Title: Managing Director


Lender:
by:
			/s/ Michael Kowalczuk
			Name: Michael Kowalczuk Title: Managing Director


For any Lender requiring a second signature line:
by:
			/s/ Maria Mulic
			Name: Maria Mulic Title: Managing Director


Lender:
by:
			/s/ Bernadette Collins
			Name: Bernadette Collins Title: Senior Vice President


Lender:
by:
			/S/ William R. Mandaro
			Name: William R. Mandaro Title: SVP