GAAP EPS $.01 vs $(.26); Non-GAAP EPS $.38 vs
$.30Profits Improve Despite Currency HeadwindsManagement Changes
Announced
The Brink’s Company (NYSE:BCO), a global leader in security-related
services, today reported second-quarter earnings.
Second-Quarter Highlights
GAAP:
- 9% organic revenue growth
- Operating profit $22 million vs loss of $15 million; operating
margin 3.0% up 490 bps from (1.9)% in 2015 (4.4% in 2016, excluding
currency)
- Net income $.3 million, up from ($12.9) million in 2015
- EPS $.01 vs ($.26)
- Currency translation reduced revenue by $81 million, operating
profit by $14 million, EPS by $.13
Non-GAAP:
- 5% organic revenue growth
- Operating profit $38 million, up 24% (49% organic growth);
operating margin 5.3%, up 120 bps from 4.1% in 2015 (6.0% in 2016,
excluding currency)
- Trailing 12-month Adjusted EBITDA $284 million
- EPS $.38 vs $.30 up 27% from 2015
- Currency translation reduced revenue by $56 million, operating
profit by $9 million, EPS by $.10
Doug Pertz, president and chief executive officer, said: “I'm
very excited about joining Brink's because of the tremendous
opportunity we have to create value for all of our stakeholders.
Our primary objective is to restore confidence in the Brink's brand
among investors, employees and customers. My immediate focus is on
improving results in the U.S. Doing so is the first step in growing
Adjusted EBITDA and, ultimately, our valuation multiples. To that
end, I have assumed the additional responsibility for leading our
U.S. operations, which enables me to accelerate my knowledge of the
business and drive improvement more quickly.
“We have some great strengths on the Brink's team, and we're
building on those strengths with new additions in key positions.
We’ve already announced changes at the CFO and CIO level, and today
we announced additional structural and organizational management
changes that will sharpen our focus on improving results throughout
our global markets.
“The improvement in second-quarter non-GAAP earnings was driven
primarily by organic growth in Latin America and lower corporate
expenses, partially offset by ongoing currency headwinds. So far
this year, the currency impact has been milder than expected, but
this could change given global economic uncertainty.
“We expect full-year non-GAAP earnings of $1.95 to $2.10 per
share, down slightly from our prior range of $2.00 to $2.20, due
mainly to lower-than-expected profits in the U.S. and Mexico. Our
2016 non-GAAP revenue outlook is unchanged at approximately $2.9
billion.”
Management ChangesOn July 14, Brink’s announced
that Ron Domanico joined the company as chief financial officer,
replacing Joe Dziedzic, who served as CFO since 2009 and will
remain at the company until September 30. Brink’s also announced
that Rohan Pal joined the company as chief information officer and
chief digital officer (CIO and CDO).
Brink’s today announced several structural organizational and
management changes designed to increase management focus and
accelerate operational improvement throughout its global footprint.
Doug Pertz, president and CEO, has assumed the additional role of
president of U.S. operations, the company’s largest operating unit
and its most critical profit improvement opportunity. Amit
Zukerman, executive vice president and president, global operations
and Brink’s Global Services, has assumed responsibility for France
operations in addition to his current responsibilities. Mike Beech
has been named executive vice president, Mexico and Brazil
operations, and will be particularly focused on driving near-term
improvement in Mexico. Chris Parks will continue in his role as
vice president and general manager of Brink’s Canada and will
report directly to Doug Pertz.
Corporate ExpensesSecond-quarter corporate
expenses totaled $13 million, down from $22 million last year due
primarily to lower executive variable compensation expense.
Corporate expenses include regional management costs, costs related
to global programs and initiatives, and costs to perform activities
required by public companies.
Capital Expenditures and Capital LeasesThrough
June 30, capital expenditures and capital lease additions were $58
million compared to $41 million on a GAAP basis and $55 million
compared to $41 million on a non-GAAP basis in 2015. Full-year 2016
expenditures are expected to total $135 million to $145 million on
a GAAP basis and $130 million to $140 million on a non-GAAP basis,
an increase from prior guidance of $10 million due to increased
vehicle purchases in the U.S. to lower operating costs.
Income TaxesOn a GAAP basis, second-quarter
expense was $15 million (effective rate of 81%) versus $8 million
(effective rate of negative 40%) in 2015. The 2016 rate was
affected by costs related to exiting Ireland for which no tax
benefit can be recorded. Tax rates in both periods were affected by
the non-deductible remeasurement charges related to Venezuela
currency devaluation. The full-year approximation of a GAAP
effective tax rate is expected to be about 50%. This rate does not
consider Venezuela activity for the second half of the year due to
the inability to accurately forecast results from Venezuela
operations and the exchange rate used to measure those operations.
Non-GAAP earnings for the second-quarter reflect an effective tax
rate of 39%, which is the full-year estimated non-GAAP effective
tax rate.
Conference CallBrink’s will host a conference
call on July 28 at 11:00 a.m. Eastern Time to review second-quarter
results. Interested parties can listen by calling 888-349-0094 (in
the U.S.) or 412-902-0124 (international) Participants should call
in at least five minutes prior to the start of the call.
Participants can pre-register at
http://dpregister.com/10089747 to receive a direct dial-in
number for the call. The call also will be accessible via live
webcast at www.Brinks.com. A replay of the call will be available
through August 28, 2016, at 877-344-7529 (in the U.S.) or (412)
317-0088 (international). The conference number is 10089747. A
webcast replay will also be available at www.Brinks.com.
About The Brink’s CompanyThe Brink’s Company
(NYSE:BCO) is the world’s premier provider of secure transportation
and cash management services. For more information, please visit
The Brink’s Company website at www.Brinks.com or call
804-289-9709.
Summary of Second-Quarter and First Half
Results(a)
|
|
Second Quarter |
|
First Half |
|
(In millions, except for per share amounts) |
2016 |
|
2015 |
|
% Change |
|
2016 |
|
2015 |
|
% Change |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP |
|
|
|
|
|
|
|
|
|
|
|
|
Revenues |
$ |
740 |
|
|
760 |
|
|
(3 |
) |
|
$ |
1,461 |
|
|
1,536 |
|
|
(5 |
) |
|
Operating profit (loss) |
22 |
|
|
(15 |
) |
|
fav |
|
|
36 |
|
|
(2 |
) |
|
fav |
|
|
Income (loss) from continuing operations(b) |
— |
|
|
(13 |
) |
|
fav |
|
|
(3 |
) |
|
(14 |
) |
|
(79 |
) |
|
Diluted EPS from continuing operations(b) |
0.01 |
|
|
(0.26 |
) |
|
fav |
|
|
(0.06 |
) |
|
(0.28 |
) |
|
(79 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-GAAP |
|
|
|
|
|
|
|
|
|
|
|
|
Non-GAAP revenues |
$ |
717 |
|
|
748 |
|
|
(4 |
) |
|
$ |
1,405 |
|
|
1,504 |
|
|
(7 |
) |
|
Non-GAAP operating profit |
38 |
|
|
31 |
|
|
24 |
|
|
69 |
|
|
71 |
|
|
(3 |
) |
|
Non-GAAP income from continuing operations(b) |
19 |
|
|
15 |
|
|
28 |
|
|
34 |
|
|
37 |
|
|
(8 |
) |
|
Non-GAAP diluted EPS from continuing operations(b) |
0.38 |
|
|
0.30 |
|
|
27 |
|
|
0.68 |
|
|
0.74 |
|
|
(8 |
) |
|
Adjusted EBITDA(g) |
70 |
|
|
64 |
|
|
9 |
|
|
132 |
|
|
139 |
|
|
(5 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Summary Reconciliation of Second-Quarter
and First Half GAAP to Non-GAAP EPS(a)
|
|
Second Quarter |
|
First Half |
|
|
2016 |
|
2015 |
|
2016 |
|
2015 |
|
GAAP EPS |
$ |
0.01 |
|
|
$ |
(0.26 |
) |
|
$ |
(0.06 |
) |
|
$ |
(0.28 |
) |
|
Venezuela
operations(c) |
0.09 |
|
|
0.50 |
|
|
0.13 |
|
|
0.72 |
|
|
Reorganization and Restructuring costs(d) |
0.03 |
|
|
(0.02 |
) |
|
0.11 |
|
|
— |
|
|
U.S. and
Mexican retirement plans |
0.10 |
|
|
0.10 |
|
|
0.20 |
|
|
0.21 |
|
|
Acquisitions
and dispositions(e) |
0.12 |
|
|
(0.01 |
) |
|
0.24 |
|
|
(0.01 |
) |
|
Income tax
rate adjustment(f) |
0.02 |
|
|
(0.02 |
) |
|
0.05 |
|
|
0.09 |
|
|
Non-GAAP EPS |
$ |
0.38 |
|
|
$ |
0.30 |
|
|
$ |
0.68 |
|
|
$ |
0.74 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Amounts may not add due to rounding.
(a) Non-GAAP results are reconciled to the applicable GAAP
results on pages 14-18.(b) Amounts reported are attributable to
shareholders of The Brink’s Company and exclude earnings related to
noncontrolling interests.(c) Given the inability to repatriate
cash, hyperinflation, fixed exchange rate policy, continued
currency devaluations, and the difficulty raising prices and
controlling costs, our non-GAAP results exclude Venezuela
operations. Management believes excluding Venezuela enables
investors to more effectively evaluate the company’s performance
between periods.(d) Charges of $0.3 million were recognized in the
first half of 2015 associated with the 2014 restructuring. Brink's
initiated an additional restructuring in 2015 and recognized an
additional $4.4 million in the first half of 2016. We recognized
$3.8 million in charges in the first half of 2016 related to
executive leadership and Board of Directors restructuring actions,
which were announced in January 2016. See page 12 for more
details.(e) See page 13.(f) The effective income tax rate in the
interim period is adjusted to be equal to the estimated full-year
non-GAAP effective income tax rate of 39.0% for 2016 (compared to
37.0% for 2015).(g) Adjusted EBITDA is defined as non-GAAP income
from continuing operations excluding the impact of non-GAAP
interest expense, non-GAAP income tax provision and non-GAAP
depreciation and amortization.
The Brink’s Company and subsidiaries (In
millions) (Unaudited)
Second-Quarter 2016 vs. 2015
|
|
|
Organic |
|
Acquisitions / |
|
|
|
|
|
% Change |
|
|
2Q'15 |
|
Change |
|
Dispositions(a) |
|
Currency(b) |
|
2Q'16 |
|
Total |
|
Organic |
|
Revenues: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
U.S. |
$ |
184 |
|
|
(2 |
) |
|
— |
|
|
— |
|
|
183 |
|
|
(1 |
) |
|
(1 |
) |
|
France |
107 |
|
|
(2 |
) |
|
— |
|
|
2 |
|
|
108 |
|
|
— |
|
|
(1 |
) |
|
Mexico |
85 |
|
|
6 |
|
|
— |
|
|
(14 |
) |
|
77 |
|
|
(9 |
) |
|
7 |
|
|
Brazil |
68 |
|
|
9 |
|
|
— |
|
|
(10 |
) |
|
67 |
|
|
(1 |
) |
|
13 |
|
|
Canada |
40 |
|
|
— |
|
|
— |
|
|
(2 |
) |
|
38 |
|
|
(4 |
) |
|
1 |
|
|
Largest 5
Markets |
484 |
|
|
12 |
|
|
— |
|
|
(23 |
) |
|
473 |
|
|
(2 |
) |
|
3 |
|
|
Latin
America |
91 |
|
|
21 |
|
|
— |
|
|
(27 |
) |
|
85 |
|
|
(7 |
) |
|
23 |
|
|
EMEA |
112 |
|
|
(4 |
) |
|
(11 |
) |
|
(2 |
) |
|
96 |
|
|
(14 |
) |
|
(3 |
) |
|
Asia |
39 |
|
|
4 |
|
|
— |
|
|
(1 |
) |
|
42 |
|
|
8 |
|
|
9 |
|
|
Global
Markets |
242 |
|
|
21 |
|
|
(11 |
) |
|
(30 |
) |
|
223 |
|
|
(8 |
) |
|
9 |
|
|
Payment
Services |
22 |
|
|
2 |
|
|
— |
|
|
(3 |
) |
|
21 |
|
|
(5 |
) |
|
7 |
|
|
Revenues - non-GAAP |
748 |
|
|
35 |
|
|
(11 |
) |
|
(56 |
) |
|
717 |
|
|
(4 |
) |
|
5 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other items
not allocated to segments(d) |
12 |
|
|
35 |
|
|
2 |
|
|
(25 |
) |
|
23 |
|
|
89 |
|
|
fav |
|
|
Revenues - GAAP |
$ |
760 |
|
|
69 |
|
|
(9 |
) |
|
(81 |
) |
|
740 |
|
|
(3 |
) |
|
9 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating profit: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
U.S. |
$ |
6 |
|
|
(8 |
) |
|
— |
|
|
— |
|
|
(2 |
) |
|
unfav |
|
|
unfav |
|
|
France |
7 |
|
|
3 |
|
|
— |
|
|
— |
|
|
10 |
|
|
51 |
|
|
48 |
|
|
Mexico |
5 |
|
|
(1 |
) |
|
— |
|
|
(1 |
) |
|
3 |
|
|
(31 |
) |
|
(20 |
) |
|
Brazil |
2 |
|
|
1 |
|
|
— |
|
|
— |
|
|
3 |
|
|
19 |
|
|
33 |
|
|
Canada |
2 |
|
|
(1 |
) |
|
— |
|
|
— |
|
|
1 |
|
|
(42 |
) |
|
(38 |
) |
|
Largest 5
Markets |
22 |
|
|
(6 |
) |
|
— |
|
|
(1 |
) |
|
16 |
|
|
(29 |
) |
|
(26 |
) |
|
Latin
America |
19 |
|
|
10 |
|
|
— |
|
|
(8 |
) |
|
21 |
|
|
8 |
|
|
52 |
|
|
EMEA |
9 |
|
|
— |
|
|
1 |
|
|
— |
|
|
10 |
|
|
9 |
|
|
(1 |
) |
|
Asia |
6 |
|
|
1 |
|
|
— |
|
|
— |
|
|
7 |
|
|
19 |
|
|
19 |
|
|
Global
Markets |
34 |
|
|
11 |
|
|
1 |
|
|
(9 |
) |
|
38 |
|
|
10 |
|
|
32 |
|
|
Payment
Services |
(4 |
) |
|
2 |
|
|
— |
|
|
— |
|
|
(2 |
) |
|
(46 |
) |
|
(41 |
) |
|
Corporate
items(c) |
(22 |
) |
|
8 |
|
|
— |
|
|
— |
|
|
(13 |
) |
|
(39 |
) |
|
(37 |
) |
|
Operating profit - non-GAAP |
31 |
|
|
15 |
|
|
1 |
|
|
(9 |
) |
|
38 |
|
|
24 |
|
|
49 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other items
not allocated to segments(d) |
(45 |
) |
|
39 |
|
|
(5 |
) |
|
(5 |
) |
|
(16 |
) |
|
(65 |
) |
|
(87 |
) |
|
Operating profit (loss) - GAAP |
$ |
(15 |
) |
|
54 |
|
|
(4 |
) |
|
(14 |
) |
|
22 |
|
|
fav |
|
|
fav |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Amounts may not add due to rounding.
(a) Includes operating results and gains/losses on acquisitions
and dispositions of assets and of businesses. (b) The amounts in
the “Currency” column consist of the amortization of Venezuela
non-monetary assets not devalued under highly inflationary
accounting rules and the sum of monthly currency changes. Monthly
currency changes represent the accumulation throughout the year of
the impact on current period results of changes in foreign currency
rates from the prior year period. (c) Corporate expenses are
not allocated to segment results. Corporate expenses include
salaries and other costs to manage the global business and to
perform activities required by public companies.(d) See pages 12-13
for more information.
The Brink’s Company and subsidiaries
(In millions) (Unaudited)
First Half 2016 vs.
2015
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Organic |
|
Acquisitions / |
|
|
|
|
|
% Change |
|
|
YTD '15 |
|
Change |
|
Dispositions(a) |
|
Currency(b) |
|
YTD '16 |
|
Total |
|
Organic |
|
Revenues: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
U.S. |
$ |
368 |
|
|
(6 |
) |
|
— |
|
|
— |
|
|
361 |
|
|
(2 |
) |
|
(2 |
) |
|
France |
213 |
|
|
— |
|
|
— |
|
|
— |
|
|
213 |
|
|
— |
|
|
— |
|
|
Mexico |
171 |
|
|
11 |
|
|
— |
|
|
(29 |
) |
|
152 |
|
|
(11 |
) |
|
6 |
|
|
Brazil |
142 |
|
|
17 |
|
|
— |
|
|
(32 |
) |
|
127 |
|
|
(10 |
) |
|
12 |
|
|
Canada |
78 |
|
|
1 |
|
|
— |
|
|
(6 |
) |
|
74 |
|
|
(5 |
) |
|
2 |
|
|
Largest 5
Markets |
972 |
|
|
23 |
|
|
— |
|
|
(67 |
) |
|
927 |
|
|
(5 |
) |
|
2 |
|
|
Latin
America |
182 |
|
|
39 |
|
|
— |
|
|
(57 |
) |
|
164 |
|
|
(10 |
) |
|
21 |
|
|
EMEA |
228 |
|
|
(13 |
) |
|
(18 |
) |
|
(5 |
) |
|
192 |
|
|
(16 |
) |
|
(6 |
) |
|
Asia |
77 |
|
|
5 |
|
|
— |
|
|
(2 |
) |
|
81 |
|
|
4 |
|
|
7 |
|
|
Global
Markets |
487 |
|
|
31 |
|
|
(18 |
) |
|
(64 |
) |
|
436 |
|
|
(10 |
) |
|
6 |
|
|
Payment
Services |
45 |
|
|
6 |
|
|
— |
|
|
(9 |
) |
|
42 |
|
|
(7 |
) |
|
12 |
|
|
Revenues - non-GAAP |
1,504 |
|
|
60 |
|
|
(18 |
) |
|
(140 |
) |
|
1,405 |
|
|
(7 |
) |
|
4 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other items
not allocated to segments(d) |
33 |
|
|
94 |
|
|
2 |
|
|
(73 |
) |
|
56 |
|
|
71 |
|
|
fav |
|
Revenues - GAAP |
$ |
1,536 |
|
|
153 |
|
|
(16 |
) |
|
(213 |
) |
|
1,461 |
|
|
(5 |
) |
|
10 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating profit: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
U.S. |
$ |
15 |
|
|
(18 |
) |
|
— |
|
|
— |
|
|
(4 |
) |
|
unfav |
|
|
unfav |
|
|
France |
11 |
|
|
4 |
|
|
— |
|
|
— |
|
|
15 |
|
|
35 |
|
|
33 |
|
|
Mexico |
12 |
|
|
(5 |
) |
|
— |
|
|
(1 |
) |
|
6 |
|
|
(49 |
) |
|
(40 |
) |
|
Brazil |
8 |
|
|
3 |
|
|
— |
|
|
(2 |
) |
|
9 |
|
|
5 |
|
|
34 |
|
|
Canada |
4 |
|
|
(1 |
) |
|
— |
|
|
— |
|
|
3 |
|
|
(22 |
) |
|
(15 |
) |
|
Largest 5
Markets |
50 |
|
|
(18 |
) |
|
— |
|
|
(4 |
) |
|
29 |
|
|
(42 |
) |
|
(35 |
) |
|
Latin
America |
36 |
|
|
19 |
|
|
— |
|
|
(16 |
) |
|
38 |
|
|
7 |
|
|
52 |
|
|
EMEA |
17 |
|
|
(2 |
) |
|
2 |
|
|
— |
|
|
17 |
|
|
(3 |
) |
|
(10 |
) |
|
Asia |
12 |
|
|
1 |
|
|
— |
|
|
— |
|
|
13 |
|
|
8 |
|
|
10 |
|
|
Global
Markets |
65 |
|
|
18 |
|
|
2 |
|
|
(17 |
) |
|
69 |
|
|
5 |
|
|
28 |
|
|
Payment
Services |
(3 |
) |
|
1 |
|
|
— |
|
|
— |
|
|
(2 |
) |
|
(38 |
) |
|
(34 |
) |
|
Corporate
items(c) |
(41 |
) |
|
8 |
|
|
— |
|
|
7 |
|
|
(27 |
) |
|
(36 |
) |
|
(20 |
) |
|
Operating profit - non-GAAP |
71 |
|
|
10 |
|
|
2 |
|
|
(14 |
) |
|
69 |
|
|
(3 |
) |
|
14 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other items
not allocated to segments(d) |
(73 |
) |
|
57 |
|
|
(11 |
) |
|
(7 |
) |
|
(33 |
) |
|
(55 |
) |
|
(79 |
) |
|
Operating profit (loss) - GAAP |
$ |
(2 |
) |
|
67 |
|
|
(9 |
) |
|
(21 |
) |
|
36 |
|
|
fav |
|
|
fav |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Amounts may not add due to rounding.
See page 5 for footnote explanations.
Forward-Looking Statements
This release contains forward-looking information. Words such as
"anticipate," "assume," "estimate," "expect," “target” "project,"
"predict," "intend," "plan," "believe," "potential," "may,"
"should" and similar expressions may identify forward-looking
information. Forward-looking information in these materials
includes, but is not limited to: 2016 GAAP and non-GAAP outlook,
including revenue, organic growth, operating profit, operating
profit margin, expected currency impact, tax rate, capital
expenditures and adjusted EBITDA; expected costs related to the
Company’s Ireland operations and expected cost savings from
Reorganization and Restructuring activities. Forward-looking
information in this document is subject to known and unknown risks,
uncertainties and contingencies, which are difficult to predict or
quantify, and which could cause actual results, performance or
achievements to differ materially from those that are
anticipated.
These risks, uncertainties and contingencies, many of which are
beyond our control, include, but are not limited to: our ability to
improve profitability in our largest five markets; our ability to
identify and execute further cost and operational improvements and
efficiencies in our core businesses; our ability to improve service
levels and quality in our core businesses; continuing market
volatility and commodity price fluctuations and their impact on the
demand for our services; our ability to maintain or improve volumes
at favorable pricing levels and increase cost and productivity
efficiencies, particularly in the United States and Mexico;
investments in information technology and adjacent businesses and
their impact on revenue and profit growth; our ability to develop
and implement solutions for our customers and gain market
acceptance of those solutions; our ability to maintain an effective
IT infrastructure and safeguard confidential information; risks
customarily associated with operating in foreign countries
including changing labor and economic conditions, currency
restrictions and devaluations, safety and security issues,
political instability, restrictions on and cost of repatriation of
earnings and capital, nationalization, expropriation and other
forms of restrictive government actions; the strength of the U.S.
dollar relative to foreign currencies and foreign currency exchange
rates; regulatory and labor issues in many of our global
operations, including negotiations with organized labor and the
possibility of work stoppages; our ability to integrate
successfully recently acquired companies and improve their
operating profit margins; costs related to dispositions and market
exits; our ability to identify evaluate and pursue acquisitions and
other strategic opportunities, including those in the home security
industry and emerging markets; the willingness of our customers to
absorb fuel surcharges and other future price increases; our
ability to obtain necessary information technology and other
services at favorable pricing levels from third party service
providers; variations in costs or expenses and performance delays
of any public or private sector supplier, service provider or
customer; our ability to obtain appropriate insurance coverage,
positions taken by insurers with respect to claims made and the
financial condition of insurers, safety and security performance;
our loss experience and changes in insurance costs; costs
associated with the purchase and implementation of cash processing
and security equipment; employee and environmental liabilities in
connection with our former coal operations, including black lung
claims incidence; the impact of the Patient Protection and
Affordable Care Act on UMWA and black lung liability and the
Company's ongoing operations; changes to estimated liabilities and
assets in actuarial assumptions due to payments made, investment
returns, interest rates and annual actuarial revaluations, the
funding requirements, accounting treatment, investment performance
and costs and expenses of our pension plans, the VEBA and other
employee benefits, mandatory or voluntary pension plan
contributions; the nature of our hedging relationships;
counterparty risk; changes in estimates and assumptions underlying
our critical accounting policies; our ability to realize deferred
tax assets; the outcome of pending and future claims, litigation,
and administrative proceedings; public perception of the Company's
business and reputation; access to the capital and credit markets;
seasonality, pricing and other competitive industry
factors; and the promulgation and adoption of new accounting
standards and interpretations, new government regulations and
interpretation of existing regulations.
This list of risks, uncertainties and contingencies is not
intended to be exhaustive. Additional factors that could cause our
results to differ materially from those described in the
forward-looking statements can be found under "Risk Factors" in
Item 1A of our Annual Report on Form 10-K for the period ended
December 31, 2015, and in our other public filings with the
Securities and Exchange Commission. The forward-looking information
included in this document is representative only as of the date of
this document and The Brink's Company undertakes no obligation to
update any information contained in this document.
The Brink’s Company and
subsidiariesOutlook Summary
(Unaudited)(In millions except as noted)
|
2015GAAP |
|
2015Non-GAAP(a) |
|
2016 GAAPOutlook(c) |
|
2016Non-GAAPOutlook(a) |
Revenues(a) |
$ |
3,061 |
|
|
2,977 |
|
|
~2,950 |
|
|
|
~2,900 |
|
Operating profit (loss)(a) |
57 |
|
|
157 |
|
|
135 – 150 |
|
|
|
185 – 200 |
|
Nonoperating expense |
(16 |
) |
|
(15 |
) |
|
|
(17 |
) |
|
|
(17 |
) |
Provision for income taxes(a) |
(67 |
) |
|
(52 |
) |
|
|
— |
|
|
|
(66) – (71) |
|
Noncontrolling interests(a) |
16 |
|
|
(5 |
) |
|
(8) – (10) |
|
|
|
(5) – (7) |
|
Income (loss) from continuing
operations(a)(b) |
(9 |
) |
|
84 |
|
|
|
— |
|
|
|
97 – 107 |
|
EPS from continuing operations(a)(b) |
$ |
(0.19 |
) |
|
1.69 |
|
|
|
— |
|
|
|
1.95 – 2.10 |
|
|
|
|
|
|
|
|
|
Operating profit
margin |
1.8 |
% |
|
5.3 |
% |
|
4.6% – 5.1% |
|
6.4% – 6.9% |
|
|
|
|
|
|
|
|
Effective income tax
rate(a) |
161.8 |
% |
|
37.0 |
% |
|
|
— |
|
|
|
39.0 |
% |
|
|
|
|
|
|
|
|
Fixed assets
acquired(d) |
|
|
|
|
|
|
|
Capital expenditures |
$ |
101 |
|
|
97 |
|
|
100 – 110 |
|
|
|
95 – 105 |
|
Capital leases(e) |
19 |
|
|
19 |
|
|
35 |
|
|
35 |
|
Total |
$ |
120 |
|
|
116 |
|
|
135 – 145 |
|
|
|
130 – 140 |
|
|
|
|
|
|
|
|
|
Depreciation and
amortization of fixed assets(d) |
$ |
136 |
|
|
132 |
|
|
125 – 135 |
|
|
|
125 – 135 |
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted
EBITDA(a)(f) |
|
|
291 |
|
|
|
|
305 – 330 |
|
|
|
|
|
|
|
|
|
|
Key Metrics |
Revenues Change |
|
Operating Profit Change |
|
EPS Change |
|
2016 GAAP Outlook(c) |
|
% Change vs. 2015 |
|
2016 Non-GAAP Outlook(a) |
|
% Change vs. 2015 |
|
2016 GAAP Outlook(c) |
|
2016 Non-GAAP Outlook(a) |
|
2016 Non-GAAP Outlook(a) |
Organic |
175 |
|
|
6 |
|
|
140 |
|
|
5 |
|
|
97 –
112 |
|
|
43 – 58 |
|
0.40 – 0.55 |
|
Dispositions |
(32 |
) |
|
(1 |
) |
|
(35 |
) |
|
(1 |
) |
|
— |
|
|
5 |
|
|
|
0.10 |
|
Currency |
(254 |
) |
|
(8 |
) |
|
(182 |
) |
|
(6 |
) |
|
(19 |
) |
|
(20 |
) |
|
|
(0.24 |
) |
Total |
(111 |
) |
|
(4 |
) |
|
(77 |
) |
|
(3 |
) |
|
78 –
93 |
|
|
28 – 43 |
|
0.26 – 0.41 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Amounts may not add due to rounding
Outlook for 2016
- U.S. operating profit margin of 0.7% to 2%
- Mexico operating profit margin of ~7%
(a) See pages 14-18 for reconciliation to GAAP. The 2016
Non-GAAP outlook amounts for provision for income taxes, income
(loss) from continuing operations, EPS from continuing operations,
effective income tax rate and Adjusted EBITDA cannot be reconciled
to GAAP without unreasonable effort. We cannot reconcile these
amounts to GAAP because we are unable to accurately forecast the
tax impact of Venezuela operations and the related exchange rates
used to measure those operations. The impact of Venezuela
operations and related exchange rates during the remainder of 2016
could be significant to our full-year GAAP provision for income
taxes, and, therefore, to income (loss) from continuing operations,
EPS from continuing operations, effective income tax rate and
Adjusted EBITDA.(b) Attributable to Brink’s.(c) 2016 GAAP outlook
includes the actual impact of Venezuela operations through June,
30, 2016, but does not include any forecasted amounts from
Venezuela operations for the second half of 2016.(d) 2015 non-GAAP
amounts exclude Venezuela capital expenditures of $4.3 million and
Venezuela depreciation and amortization of fixed assets of $3.9
million. Depreciation and amortization of fixed assets does not
include intangible asset amortization.(e) Includes capital leases
for newly acquired assets only.(f) Adjusted EBITDA is defined as
non-GAAP income from continuing operations excluding the impact of
non-GAAP interest expense, non-GAAP income tax provision and
non-GAAP depreciation and amortization.
The Brink’s Company and
subsidiariesCondensed Consolidated Statements of
Operations (Unaudited)(In millions, except for per share
amounts)
|
Second Quarter |
|
First Half |
|
2016 |
|
2015 |
|
2016 |
|
2015 |
|
|
|
|
|
|
|
|
Revenues |
$ |
739.5 |
|
|
760.3 |
|
|
$ |
1,461.3 |
|
|
1,536.4 |
|
|
|
|
|
|
|
|
|
Costs and
expenses: |
|
|
|
|
|
|
|
Cost of revenues |
604.5 |
|
|
620.9 |
|
|
1,201.5 |
|
|
1,250.0 |
|
Selling, general and
administrative expenses |
106.7 |
|
|
120.0 |
|
|
217.0 |
|
|
232.3 |
|
Total costs and expenses |
711.2 |
|
|
740.9 |
|
|
1,418.5 |
|
|
1,482.3 |
|
Other operating
expense |
6.2 |
|
|
34.0 |
|
|
6.9 |
|
|
55.8 |
|
|
|
|
|
|
|
|
|
Operating profit
(loss) |
22.1 |
|
|
(14.6 |
) |
|
35.9 |
|
|
(1.7 |
) |
|
|
|
|
|
|
|
|
Interest expense |
(4.9 |
) |
|
(4.7 |
) |
|
(9.8 |
) |
|
(9.6 |
) |
Interest and other
income |
0.7 |
|
|
0.4 |
|
|
0.7 |
|
|
0.8 |
|
Income (loss) from continuing
operations before tax |
17.9 |
|
|
(18.9 |
) |
|
26.8 |
|
|
(10.5 |
) |
Provision for income
taxes |
14.5 |
|
|
7.6 |
|
|
23.9 |
|
|
23.1 |
|
|
|
|
|
|
|
|
|
Income (loss) from continuing operations |
3.4 |
|
|
(26.5 |
) |
|
2.9 |
|
|
(33.6 |
) |
|
|
|
|
|
|
|
|
Income (loss) from
discontinued operations, net of tax |
— |
|
|
0.1 |
|
|
— |
|
|
(2.3 |
) |
|
|
|
|
|
|
|
|
Net income
(loss) |
3.4 |
|
|
(26.4 |
) |
|
2.9 |
|
|
(35.9 |
) |
Less net income (loss) attributable
to noncontrolling interests |
3.1 |
|
|
(13.5 |
) |
|
5.7 |
|
|
(20.0 |
) |
|
|
|
|
|
|
|
|
Net income (loss)
attributable to Brink’s |
$ |
0.3 |
|
|
(12.9 |
) |
|
$ |
(2.8 |
) |
|
(15.9 |
) |
|
|
|
|
|
|
|
|
Amounts
attributable to Brink’s: |
|
|
|
|
|
|
|
Continuing
operations |
0.3 |
|
|
(13.0 |
) |
|
(2.8 |
) |
|
(13.6 |
) |
Discontinued
operations |
— |
|
|
0.1 |
|
|
— |
|
|
(2.3 |
) |
|
|
|
|
|
|
|
|
Net income (loss)
attributable to Brink’s |
$ |
0.3 |
|
|
(12.9 |
) |
|
$ |
(2.8 |
) |
|
(15.9 |
) |
|
|
|
|
|
|
|
|
Income (loss)
per share attributable to Brink’s common
shareholders(a): |
|
|
|
|
|
|
|
Basic: |
|
|
|
|
|
|
|
Continuing operations |
$ |
0.01 |
|
|
(0.26 |
) |
|
$ |
(0.06 |
) |
|
(0.28 |
) |
Discontinued operations |
— |
|
|
— |
|
|
— |
|
|
(0.05 |
) |
Net income (loss) |
$ |
0.01 |
|
|
(0.26 |
) |
|
$ |
(0.06 |
) |
|
(0.32 |
) |
|
|
|
|
|
|
|
|
Diluted: |
|
|
|
|
|
|
|
Continuing operations |
$ |
0.01 |
|
|
(0.26 |
) |
|
$ |
(0.06 |
) |
|
(0.28 |
) |
Discontinued operations |
— |
|
|
— |
|
|
— |
|
|
(0.05 |
) |
Net income (loss) |
$ |
0.01 |
|
|
(0.26 |
) |
|
$ |
(0.06 |
) |
|
(0.32 |
) |
|
|
|
|
|
|
|
|
Weighted-average shares |
|
|
|
|
|
|
|
Basic |
49.9 |
|
|
49.3 |
|
|
49.7 |
|
|
49.2 |
|
Diluted |
50.3 |
|
|
49.3 |
|
|
49.7 |
|
|
49.2 |
|
|
|
|
|
|
|
|
|
|
|
|
|
(a) Earnings per share may not add due to rounding.
The Brink’s Company and
subsidiariesSupplemental Financial Information
(Unaudited)(In millions)
Selected Cash Flow Information
|
First Half |
|
2016 |
|
2015 |
|
|
|
|
Property and
equipment acquired during the year |
|
|
|
Capital expenditures(a) |
|
|
|
Largest 5 Markets |
$ |
29.6 |
|
|
$ |
22.0 |
|
Global Markets |
9.6 |
|
|
7.3 |
|
Payment Services |
0.6 |
|
|
0.7 |
|
Corporate items |
2.7 |
|
|
4.3 |
|
Capital expenditures -
non-GAAP |
42.5 |
|
|
34.3 |
|
Venezuela |
2.5 |
|
|
0.9 |
|
Capital expenditures - GAAP |
45.0 |
|
|
35.2 |
|
|
|
|
|
Capital Leases(b) |
|
|
|
Largest 5 Markets |
12.7 |
|
|
6.2 |
|
Capital leases - GAAP and
non-GAAP |
12.7 |
|
|
6.2 |
|
|
|
|
|
Total |
|
|
|
Largest 5 Markets |
42.3 |
|
|
28.2 |
|
Global Markets |
9.6 |
|
|
7.3 |
|
Payment Services |
0.6 |
|
|
0.7 |
|
Corporate items |
2.7 |
|
|
4.3 |
|
Total - non-GAAP |
55.2 |
|
|
40.5 |
|
Venezuela |
2.5 |
|
|
0.9 |
|
Total - GAAP |
$ |
57.7 |
|
|
$ |
41.4 |
|
|
|
|
|
Depreciation
and amortization(a) |
|
|
|
Largest 5 Markets |
$ |
45.5 |
|
|
$ |
48.5 |
|
Global Markets |
12.6 |
|
|
14.0 |
|
Payment Services |
1.3 |
|
|
1.6 |
|
Corporate items |
5.4 |
|
|
5.3 |
|
Depreciation and amortization -
non-GAAP |
64.8 |
|
|
69.4 |
|
Venezuela |
0.3 |
|
|
3.8 |
|
Depreciation and amortization -
GAAP |
$ |
65.1 |
|
|
$ |
73.2 |
|
|
|
|
|
|
|
|
|
(a) Capital expenditures as well as depreciation and
amortization related to Venezuela have been excluded from Global
Markets.(b) Represents the amount of property and equipment
acquired using capital leases. Because these assets are acquired
without using cash, the acquisitions are not reflected in the
consolidated cash flow statement. Amounts are provided here to
assist in the comparison of assets acquired in the current year
versus prior years.
The Brink’s Company and
subsidiariesSegment Results: 2015 and 2016
(Unaudited)(In millions, except for percentages)
|
Revenues |
|
2015 |
|
2016 |
|
1Q |
|
2Q |
|
3Q |
|
4Q |
|
Full Year |
|
1Q |
|
2Q |
|
First Half |
Revenues: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
U.S. |
$ |
183.6 |
|
|
184.1 |
|
|
182.6 |
|
|
180.1 |
|
|
730.4 |
|
|
$ |
178.8 |
|
|
182.5 |
|
|
361.3 |
|
France |
105.7 |
|
|
107.4 |
|
|
110.8 |
|
|
107.6 |
|
|
431.5 |
|
|
104.8 |
|
|
107.9 |
|
|
212.7 |
|
Mexico |
85.7 |
|
|
85.1 |
|
|
80.4 |
|
|
81.8 |
|
|
333.0 |
|
|
74.9 |
|
|
77.3 |
|
|
152.2 |
|
Brazil |
73.8 |
|
|
67.7 |
|
|
63.6 |
|
|
65.3 |
|
|
270.4 |
|
|
60.0 |
|
|
66.9 |
|
|
126.9 |
|
Canada |
38.8 |
|
|
39.6 |
|
|
37.9 |
|
|
37.4 |
|
|
153.7 |
|
|
35.9 |
|
|
38.2 |
|
|
74.1 |
|
Largest 5 Markets |
487.6 |
|
|
483.9 |
|
|
475.3 |
|
|
472.2 |
|
|
1,919.0 |
|
|
454.4 |
|
|
472.8 |
|
|
927.2 |
|
Latin America |
90.8 |
|
|
91.2 |
|
|
91.7 |
|
|
96.2 |
|
|
369.9 |
|
|
79.2 |
|
|
85.0 |
|
|
164.2 |
|
EMEA |
115.7 |
|
|
112.3 |
|
|
111.5 |
|
|
105.2 |
|
|
444.7 |
|
|
95.4 |
|
|
96.2 |
|
|
191.6 |
|
Asia |
38.7 |
|
|
38.6 |
|
|
39.7 |
|
|
40.4 |
|
|
157.4 |
|
|
39.0 |
|
|
41.5 |
|
|
80.5 |
|
Global Markets |
245.2 |
|
|
242.1 |
|
|
242.9 |
|
|
241.8 |
|
|
972.0 |
|
|
213.6 |
|
|
222.7 |
|
|
436.3 |
|
Payment Services |
22.8 |
|
|
22.1 |
|
|
21.7 |
|
|
19.3 |
|
|
85.9 |
|
|
20.9 |
|
|
21.0 |
|
|
41.9 |
|
Revenue -
non-GAAP |
755.6 |
|
|
748.1 |
|
|
739.9 |
|
|
733.3 |
|
|
2,976.9 |
|
|
688.9 |
|
|
716.5 |
|
|
1,405.4 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other items not allocated to
segments(a) |
20.5 |
|
|
12.2 |
|
|
19.3 |
|
|
32.5 |
|
|
84.5 |
|
|
32.9 |
|
|
23.0 |
|
|
55.9 |
|
Revenues -
GAAP |
$ |
776.1 |
|
|
760.3 |
|
|
759.2 |
|
|
765.8 |
|
|
3,061.4 |
|
|
$ |
721.8 |
|
|
739.5 |
|
|
1,461.3 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating Profit |
|
2015 |
|
2016 |
|
1Q |
|
2Q |
|
3Q |
|
4Q |
|
Full Year |
|
1Q |
|
2Q |
|
First Half |
Operating
profit: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
U.S. |
$ |
8.3 |
|
|
6.4 |
|
|
1.4 |
|
|
(1.0 |
) |
|
15.1 |
|
|
$ |
(2.2 |
) |
|
(1.5 |
) |
|
(3.7 |
) |
France |
4.1 |
|
|
6.7 |
|
|
13.7 |
|
|
10.2 |
|
|
34.7 |
|
|
4.5 |
|
|
10.1 |
|
|
14.6 |
|
Mexico |
7.9 |
|
|
4.5 |
|
|
3.4 |
|
|
8.4 |
|
|
24.2 |
|
|
3.2 |
|
|
3.1 |
|
|
6.3 |
|
Brazil |
6.1 |
|
|
2.1 |
|
|
3.7 |
|
|
11.9 |
|
|
23.8 |
|
|
6.1 |
|
|
2.5 |
|
|
8.6 |
|
Canada |
1.7 |
|
|
2.4 |
|
|
3.6 |
|
|
3.0 |
|
|
10.7 |
|
|
1.8 |
|
|
1.4 |
|
|
3.2 |
|
Largest 5 Markets |
28.1 |
|
|
22.1 |
|
|
25.8 |
|
|
32.5 |
|
|
108.5 |
|
|
13.4 |
|
|
15.6 |
|
|
29.0 |
|
Latin America |
16.5 |
|
|
19.2 |
|
|
17.6 |
|
|
23.0 |
|
|
76.3 |
|
|
17.5 |
|
|
20.8 |
|
|
38.3 |
|
EMEA |
8.2 |
|
|
9.1 |
|
|
9.4 |
|
|
9.0 |
|
|
35.7 |
|
|
6.9 |
|
|
9.9 |
|
|
16.8 |
|
Asia |
6.5 |
|
|
5.9 |
|
|
7.1 |
|
|
9.2 |
|
|
28.7 |
|
|
6.4 |
|
|
7.0 |
|
|
13.4 |
|
Global Markets |
31.2 |
|
|
34.2 |
|
|
34.1 |
|
|
41.2 |
|
|
140.7 |
|
|
30.8 |
|
|
37.7 |
|
|
68.5 |
|
Payment Services |
0.5 |
|
|
(3.7 |
) |
|
(2.0 |
) |
|
(2.0 |
) |
|
(7.2 |
) |
|
— |
|
|
(2.0 |
) |
|
(2.0 |
) |
Corporate items |
(19.2 |
) |
|
(22.0 |
) |
|
(20.9 |
) |
|
(23.1 |
) |
|
(85.2 |
) |
|
(13.1 |
) |
|
(13.4 |
) |
|
(26.5 |
) |
Operating profit -
non-GAAP |
40.6 |
|
|
30.6 |
|
|
37.0 |
|
|
48.6 |
|
|
156.8 |
|
|
31.1 |
|
|
37.9 |
|
|
69.0 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other items not allocated to
segments(a) |
(27.7 |
) |
|
(45.2 |
) |
|
(11.7 |
) |
|
(15.6 |
) |
|
(100.2 |
) |
|
(17.3 |
) |
|
(15.8 |
) |
|
(33.1 |
) |
Operating profit (loss) -
GAAP |
$ |
12.9 |
|
|
(14.6 |
) |
|
25.3 |
|
|
33.0 |
|
|
56.6 |
|
|
$ |
13.8 |
|
|
22.1 |
|
|
35.9 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Margin |
|
2015 |
|
2016 |
|
1Q |
|
2Q |
|
3Q |
|
4Q |
|
Full Year |
|
1Q |
|
2Q |
|
First Half |
Margin: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
U.S. |
4.5 |
% |
|
3.5 |
|
|
0.8 |
|
|
(0.6 |
) |
|
2.1 |
|
|
(1.2 |
)% |
|
(0.8 |
) |
|
(1.0 |
) |
France |
3.9 |
|
|
6.2 |
|
|
12.4 |
|
|
9.5 |
|
|
8.0 |
|
|
4.3 |
|
|
9.4 |
|
|
6.9 |
|
Mexico |
9.2 |
|
|
5.3 |
|
|
4.2 |
|
|
10.3 |
|
|
7.3 |
|
|
4.3 |
|
|
4.0 |
|
|
4.1 |
|
Brazil |
8.3 |
|
|
3.1 |
|
|
5.8 |
|
|
18.2 |
|
|
8.8 |
|
|
10.2 |
|
|
3.7 |
|
|
6.8 |
|
Canada |
4.4 |
|
|
6.1 |
|
|
9.5 |
|
|
8.0 |
|
|
7.0 |
|
|
5.0 |
|
|
3.7 |
|
|
4.3 |
|
Largest 5 Markets |
5.8 |
|
|
4.6 |
|
|
5.4 |
|
|
6.9 |
|
|
5.7 |
|
|
2.9 |
|
|
3.3 |
|
|
3.1 |
|
Latin America |
18.2 |
|
|
21.1 |
|
|
19.2 |
|
|
23.9 |
|
|
20.6 |
|
|
22.1 |
|
|
24.5 |
|
|
23.3 |
|
EMEA |
7.1 |
|
|
8.1 |
|
|
8.4 |
|
|
8.6 |
|
|
8.0 |
|
|
7.2 |
|
|
10.3 |
|
|
8.8 |
|
Asia |
16.8 |
|
|
15.3 |
|
|
17.9 |
|
|
22.8 |
|
|
18.2 |
|
|
16.4 |
|
|
16.9 |
|
|
16.6 |
|
Global Markets |
12.7 |
|
|
14.1 |
|
|
14.0 |
|
|
17.0 |
|
|
14.5 |
|
|
14.4 |
|
|
16.9 |
|
|
15.7 |
|
Payment Services |
2.2 |
|
|
(16.7 |
) |
|
(9.2 |
) |
|
(10.4 |
) |
|
(8.4 |
) |
|
— |
|
|
(9.5 |
) |
|
(4.8 |
) |
Corporate items |
(2.5 |
) |
|
(2.9 |
) |
|
(2.8 |
) |
|
(3.2 |
) |
|
(2.9 |
) |
|
(1.9 |
) |
|
(1.9 |
) |
|
(1.9 |
) |
Operating profit -
non-GAAP |
5.4 |
|
|
4.1 |
|
|
5.0 |
|
|
6.6 |
|
|
5.3 |
|
|
4.5 |
|
|
5.3 |
|
|
4.9 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other items not allocated to
segments(a) |
(3.7 |
) |
|
(6.0 |
) |
|
(1.7 |
) |
|
(2.3 |
) |
|
(3.5 |
) |
|
(2.6 |
) |
|
(2.3 |
) |
|
(2.4 |
) |
Operating profit (loss) -
GAAP |
1.7 |
% |
|
(1.9 |
) |
|
3.3 |
|
|
4.3 |
|
|
1.8 |
|
|
1.9 |
% |
|
3.0 |
|
|
2.5 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(a) See pages 12-13 for more information.
The Brink’s Company and
subsidiariesOther Items Not Allocated To Segments
(Unaudited)(In millions)
Brink’s measures its segment results before income and expenses
for corporate activities and for certain other items. A summary of
the other items not allocated to segment results is below.
Other items not allocated to segments
|
2015 |
|
2016 |
|
1Q |
|
2Q |
|
3Q |
|
4Q |
|
Full Year |
|
1Q |
|
2Q |
|
First Half |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenues: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Venezuela operations |
$ |
20.5 |
|
|
12.2 |
|
|
19.3 |
|
|
32.5 |
|
|
84.5 |
|
|
$ |
32.1 |
|
|
21.5 |
|
|
53.6 |
|
Acquisitions and dispositions |
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
0.8 |
|
|
1.5 |
|
|
2.3 |
|
Revenues |
$ |
20.5 |
|
|
12.2 |
|
|
19.3 |
|
|
32.5 |
|
|
84.5 |
|
|
$ |
32.9 |
|
|
23.0 |
|
|
55.9 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating profit: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Venezuela operations |
$ |
(17.9 |
) |
|
(39.1 |
) |
|
(0.8 |
) |
|
10.1 |
|
|
(47.7 |
) |
|
$ |
1.8 |
|
|
0.9 |
|
|
2.7 |
|
Reorganization and
Restructuring |
(1.5 |
) |
|
1.2 |
|
|
(2.9 |
) |
|
(12.1 |
) |
|
(15.3 |
) |
|
(6.0 |
) |
|
(2.1 |
) |
|
(8.1 |
) |
U.S. and Mexican retirement
plans |
(8.3 |
) |
|
(7.6 |
) |
|
(8.0 |
) |
|
(7.3 |
) |
|
(31.2 |
) |
|
(7.3 |
) |
|
(8.1 |
) |
|
(15.4 |
) |
Acquisitions and dispositions |
— |
|
|
0.3 |
|
|
— |
|
|
(6.3 |
) |
|
(6.0 |
) |
|
(5.8 |
) |
|
(6.5 |
) |
|
(12.3 |
) |
Operating profit |
$ |
(27.7 |
) |
|
(45.2 |
) |
|
(11.7 |
) |
|
(15.6 |
) |
|
(100.2 |
) |
|
$ |
(17.3 |
) |
|
(15.8 |
) |
|
(33.1 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Venezuela operations We have excluded from
our segment results all of our Venezuela operating results,
including expenses related to currency devaluations of $7.4 million
and $26.6 million in the first half of 2016 and 2015, respectively,
due to management’s inability to allocate, generate or redeploy
resources in-country or globally. In light of these unique
circumstances, our operations in Venezuela are largely independent
of the rest of our global operations. As a result, the Chief
Executive Officer, the Company's Chief Operating Decision Maker
("CODM"), assesses segment performance and makes resource decisions
by segment excluding Venezuela operating results. Additionally,
management believes excluding Venezuela from segment results makes
it possible to more effectively evaluate the company’s performance
between periods.
Factors considered by management in excluding Venezuela results
include:
- Continued inability to repatriate cash to redeploy to other
operations or dividend to shareholders
- Highly inflationary environment
- Fixed exchange rate policy
- Continued currency devaluations and
- Difficulty raising prices and controlling costs
Reorganization and Restructuring Brink’s
reorganized and restructured its business in December 2014,
eliminating the management roles and structures in its former Latin
America and EMEA regions and implementing a plan to reduce the cost
structure of various country operations by eliminating
approximately 1,700 positions across its global workforce.
Severance costs of $21.8 million associated with these actions were
recognized in 2014. An additional $0.3 million was recognized in
the first half of 2015 related to the 2014 restructuring. The
restructuring saved annual direct costs of approximately $50
million in 2015 compared to 2014, excluding charges for severance,
lease termination and accelerated depreciation. Brink's initiated
an additional restructuring of its business in the third quarter of
2015. We recognized $4.4 million of costs in the first six months
of 2016 related to employee severance, contract terminations and
lease terminations associated with the 2015 restructuring, which is
expected to reduce the global workforce by approximately 1,000
positions and is projected to result in $20 to $25 million in 2016
cost savings. In the fourth quarter of 2015, we recognized $1.8
million in charges related to Executive Leadership and Board of
Directors restructuring actions, which were announced in January
2016. We recognized $3.8 million in charges in the first six months
of 2016 related to these restructuring actions. All expenses
related to the Executive Leadership and Board of Directors
restructuring actions have been paid in cash as of June 30,
2016.
U.S. and Mexican retirement plans Because
our U.S. retirement plans are frozen, costs related to these plans
have not been allocated to segment results. Mexico is the
only operating segment in which employee termination benefits are
accounted for as retirement benefits under FASB ASC Topic 715,
Compensation — Retirement Benefits. As a result, settlement charges
related to these termination benefits have not been allocated to
segment results.
Acquisitions and dispositions Certain
acquisition and disposition items that are not considered part of
the ongoing activities of the business and are special in nature
are consistently excluded from non-GAAP results. Due to
management's decision in the first quarter of 2016 to exit the
Republic of Ireland, the prospective impacts of shutting down this
operation are included in items not allocated to segments and are
excluded from the operating segments effective March 1, 2016. This
activity is also excluded from the consolidated non-GAAP results.
Beginning May 1, 2016, due to management's decision to also exit
Northern Ireland, the results of shutting down these operations are
treated similarly to the Republic of Ireland. Revenues from both
Ireland operations to be shut down in 2016 were approximately $20
million in 2015. Charges included in our GAAP results include $4.6
million in severance costs, $1.8 million in property impairment
charges and an additional $4.0 million in operating and other exit
costs. These costs have been excluded from our segment and our
consolidated non-GAAP results. Brink's expects it could recognize
additional operating and disposition-related costs of up to
approximately $5 million later this year. International shipments
to and from Ireland will continue to be provided through Brink’s
Global Services. We also recognized a $2.0 million loss related to
the sale of corporate assets in the second quarter of 2016.
The Brink’s Company and
subsidiariesNon-GAAP Results Reconciled to GAAP
(Unaudited)(In millions, except for percentages and per
share amounts)
Non-GAAP results described in this press release are financial
measures that are not required by or presented in accordance with
U.S. generally accepted accounting principles (“GAAP”). The purpose
of the Non-GAAP results is to report financial information from the
primary operations of our business by excluding the effects of
certain income and expenses that do not reflect the ordinary
earnings of our operations. The specific items excluded have
not been allocated to segments, are described in detail on pages
12-13, and are reconciled to comparable GAAP measures below.
Non-GAAP results adjust the quarterly Non-GAAP tax rates so that
the Non-GAAP tax rate in each of the quarters is equal to the
full-year estimated Non-GAAP tax rate. The full-year Non-GAAP tax
rate in both years excludes certain pretax and income tax amounts.
Amounts reported for prior periods have been updated in this report
to present information consistently for all periods presented.
The 2016 Non-GAAP outlook amounts for provision for income
taxes, income (loss) from continuing operations, EPS from
continuing operations, effective income tax rate and Adjusted
EBITDA cannot be reconciled to GAAP without unreasonable effort. We
cannot reconcile these amounts to GAAP because we are unable to
accurately forecast the tax impact of Venezuela operations and the
related exchange rates used to measure those operations. The impact
of Venezuela operations and related exchange rates during the
remainder of 2016 could be significant to our full-year GAAP
provision for income taxes, and, therefore, to income (loss) from
continuing operations, EPS from continuing operations, effective
income tax rate and Adjusted EBITDA.
The Non-GAAP information is intended to provide information to
assist analysts and investors with comparability and estimates of
future performance. Brink’s believes these measures are helpful in
assessing operations and estimating future results and enable
period-to-period comparability of financial performance. In
addition, Brink’s believes the measures will help analysts and
investors assess the ongoing operations of both our consolidated
business and individual segments. Management uses non-GAAP results
to evaluate our period-over-period operating performance because
our management believes this provides a more comparable measure of
our continuing business after adjusting for special items that are
not reflective of the normal earnings of our business.
Additionally, non-GAAP results are utilized as performance measures
in certain management incentive compensation plans.
Non-GAAP Results Reconciled to GAAP
|
YTD '15 |
|
YTD '16 |
|
Pre-tax |
|
Tax |
|
Effective tax rate |
|
Pre-tax |
|
Tax |
|
Effective tax rate |
Effective
Income Tax Rate |
|
|
|
|
|
|
|
|
|
|
|
Non-GAAP |
$ |
62.4 |
|
|
23.1 |
|
|
37.0 |
% |
|
$ |
59.9 |
|
|
23.3 |
|
|
38.9 |
% |
Other items not allocated to
segments(b) |
(72.9 |
) |
|
(3.9 |
) |
|
|
|
(33.1 |
) |
|
(1.4 |
) |
|
|
Income tax rate adjustment(c) |
— |
|
|
3.9 |
|
|
|
|
— |
|
|
2.0 |
|
|
|
GAAP |
$ |
(10.5 |
) |
|
23.1 |
|
|
(220.0 |
)% |
|
$ |
26.8 |
|
|
23.9 |
|
|
89.2 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2016 |
|
2Q |
EPS: |
|
Constant currency basis
- Non-GAAP |
$ |
0.48 |
|
Effect of changes in currency
exchange rates(a) |
(0.10 |
) |
Non-GAAP |
0.38 |
|
Other items not allocated to
segments(b) |
(0.34 |
) |
Income tax rate adjustment(c) |
(0.02 |
) |
GAAP |
$ |
0.01 |
|
|
|
|
|
Amounts may not add due to rounding.
(a) See footnote (b) on page 5 for currency definition and
calculation between periods. For non-GAAP EPS on a constant
currency basis, EPS is calculated for the most recent period at the
prior period's foreign currency rates to eliminate the currency
impact on EPS.(b) See “Other Items Not Allocated To Segments” on
pages 12-13 for pretax amounts and details. Other Items Not
Allocated To Segments for noncontrolling interests, income from
continuing operations attributable to Brink's and EPS are the
effects of the same items at their respective line items of the
consolidated statements of operations.(c) Non-GAAP income from
continuing operations and non-GAAP EPS have been adjusted to
reflect an effective income tax rate in each interim period equal
to the full-year non-GAAP effective income tax rate. The full-year
non-GAAP effective tax rate is estimated at 39.0% for 2016 and was
37.0% for 2015.
The Brink’s Company and
subsidiariesNon-GAAP Results Reconciled to GAAP
(Unaudited) - continued (In millions, except for
percentages and per share amounts)
|
2015 |
|
2016 |
|
1Q |
|
2Q |
|
3Q |
|
4Q |
|
Full Year |
|
1Q |
|
2Q |
|
First Half |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenues: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-GAAP |
$ |
755.6 |
|
|
748.1 |
|
|
739.9 |
|
|
733.3 |
|
|
2,976.9 |
|
|
$ |
688.9 |
|
|
716.5 |
|
|
1,405.4 |
|
Other items not allocated to
segments(b) |
20.5 |
|
|
12.2 |
|
|
19.3 |
|
|
32.5 |
|
|
84.5 |
|
|
32.9 |
|
|
23.0 |
|
|
55.9 |
|
GAAP |
$ |
776.1 |
|
|
760.3 |
|
|
759.2 |
|
|
765.8 |
|
|
3,061.4 |
|
|
$ |
721.8 |
|
|
739.5 |
|
|
1,461.3 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating
profit (loss): |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-GAAP |
$ |
40.6 |
|
|
30.6 |
|
|
37.0 |
|
|
48.6 |
|
|
156.8 |
|
|
$ |
31.1 |
|
|
37.9 |
|
|
69.0 |
|
Other items not allocated to
segments(b) |
(27.7 |
) |
|
(45.2 |
) |
|
(11.7 |
) |
|
(15.6 |
) |
|
(100.2 |
) |
|
(17.3 |
) |
|
(15.8 |
) |
|
(33.1 |
) |
GAAP |
$ |
12.9 |
|
|
(14.6 |
) |
|
25.3 |
|
|
33.0 |
|
|
56.6 |
|
|
$ |
13.8 |
|
|
22.1 |
|
|
35.9 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Taxes: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-GAAP |
$ |
13.4 |
|
|
9.7 |
|
|
12.2 |
|
|
17.0 |
|
|
52.3 |
|
|
$ |
10.2 |
|
|
13.1 |
|
|
23.3 |
|
Other items not allocated to
segments(b) |
(3.9 |
) |
|
— |
|
|
(1.5 |
) |
|
19.6 |
|
|
14.2 |
|
|
(2.0 |
) |
|
0.6 |
|
|
(1.4 |
) |
Income tax rate adjustment(c) |
6.0 |
|
|
(2.1 |
) |
|
3.4 |
|
|
(7.3 |
) |
|
— |
|
|
1.2 |
|
|
0.8 |
|
|
2.0 |
|
GAAP |
$ |
15.5 |
|
|
7.6 |
|
|
14.1 |
|
|
29.3 |
|
|
66.5 |
|
|
$ |
9.4 |
|
|
14.5 |
|
|
23.9 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Noncontrolling
interests: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-GAAP |
$ |
0.8 |
|
|
1.8 |
|
|
0.8 |
|
|
1.5 |
|
|
4.9 |
|
|
$ |
1.1 |
|
|
1.6 |
|
|
2.7 |
|
Other items not allocated to
segments(b) |
(6.2 |
) |
|
(16.5 |
) |
|
(1.4 |
) |
|
2.9 |
|
|
(21.2 |
) |
|
1.1 |
|
|
1.2 |
|
|
2.3 |
|
Income tax rate adjustment(c) |
(1.1 |
) |
|
1.2 |
|
|
0.2 |
|
|
(0.3 |
) |
|
— |
|
|
0.4 |
|
|
0.3 |
|
|
0.7 |
|
GAAP |
$ |
(6.5 |
) |
|
(13.5 |
) |
|
(0.4 |
) |
|
4.1 |
|
|
(16.3 |
) |
|
$ |
2.6 |
|
|
3.1 |
|
|
5.7 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income from
continuing operations attributable to Brink's: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-GAAP |
$ |
21.9 |
|
|
14.8 |
|
|
20.1 |
|
|
27.4 |
|
|
84.2 |
|
|
$ |
14.9 |
|
|
19.0 |
|
|
33.9 |
|
Other items not allocated to
segments(b) |
(17.6 |
) |
|
(28.7 |
) |
|
(8.8 |
) |
|
(38.2 |
) |
|
(93.3 |
) |
|
(16.4 |
) |
|
(17.6 |
) |
|
(34.0 |
) |
Income tax rate adjustment(c) |
(4.9 |
) |
|
0.9 |
|
|
(3.6 |
) |
|
7.6 |
|
|
— |
|
|
(1.6 |
) |
|
(1.1 |
) |
|
(2.7 |
) |
GAAP |
(0.6 |
) |
|
(13.0 |
) |
|
7.7 |
|
|
(3.2 |
) |
|
(9.1 |
) |
|
(3.1 |
) |
|
0.3 |
|
|
(2.8 |
) |
Reconciliation
to net income (loss): |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Discontinued operations |
(2.4 |
) |
|
0.1 |
|
|
(0.1 |
) |
|
(0.4 |
) |
|
(2.8 |
) |
|
— |
|
|
— |
|
|
— |
|
Net income (loss)
attributable to Brink's |
$ |
(3.0 |
) |
|
(12.9 |
) |
|
7.6 |
|
|
(3.6 |
) |
|
(11.9 |
) |
|
$ |
(3.1 |
) |
|
0.3 |
|
|
(2.8 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
EPS: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-GAAP |
$ |
0.44 |
|
|
0.30 |
|
|
0.40 |
|
|
0.55 |
|
|
1.69 |
|
|
$ |
0.30 |
|
|
0.38 |
|
|
0.68 |
|
Other items not allocated to
segments(b) |
(0.36 |
) |
|
(0.58 |
) |
|
(0.18 |
) |
|
(0.77 |
) |
|
(1.87 |
) |
|
(0.33 |
) |
|
(0.34 |
) |
|
(0.68 |
) |
Income tax rate adjustment(c) |
(0.10 |
) |
|
0.02 |
|
|
(0.07 |
) |
|
0.15 |
|
|
— |
|
|
(0.03 |
) |
|
(0.02 |
) |
|
(0.05 |
) |
GAAP |
$ |
(0.01 |
) |
|
(0.26 |
) |
|
0.16 |
|
|
(0.07 |
) |
|
(0.19 |
) |
|
$ |
(0.06 |
) |
|
0.01 |
|
|
(0.06 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-GAAP margin |
5.4 |
% |
|
4.1 |
% |
|
5.0 |
% |
|
6.6 |
% |
|
5.3 |
% |
|
4.5 |
% |
|
5.3 |
% |
|
4.9 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Amounts may not add due to rounding.
See page 14 for footnote explanations.
The Brink’s Company and
subsidiariesAdjusted EBITDA
(Unaudited)(In millions)
|
2014 |
|
2015 |
|
1Q |
|
2Q |
|
3Q |
|
4Q |
|
Full Year |
|
1Q |
|
2Q |
|
3Q |
|
4Q |
|
Full Year |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted
EBITDA |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income from continuing operations -
Non-GAAP(a)(b) |
$ |
7.3 |
|
|
8.1 |
|
|
5.7 |
|
|
28.3 |
|
|
49.4 |
|
|
$ |
21.9 |
|
|
14.8 |
|
|
20.1 |
|
|
27.4 |
|
|
84.2 |
|
Interest expense - Non-GAAP(a) |
5.7 |
|
|
5.9 |
|
|
6.6 |
|
|
5.1 |
|
|
23.3 |
|
|
4.9 |
|
|
4.7 |
|
|
4.8 |
|
|
4.5 |
|
|
18.9 |
|
Income tax provision -
Non-GAAP(a) |
6.9 |
|
|
8.5 |
|
|
6.7 |
|
|
24.8 |
|
|
46.9 |
|
|
13.4 |
|
|
9.7 |
|
|
12.2 |
|
|
17.0 |
|
|
52.3 |
|
Depreciation and amortization -
Non-GAAP(a) |
38.9 |
|
|
38.9 |
|
|
37.5 |
|
|
37.1 |
|
|
152.4 |
|
|
34.9 |
|
|
34.5 |
|
|
33.1 |
|
|
33.5 |
|
|
136.0 |
|
Adjusted EBITDA |
$ |
58.8 |
|
|
61.4 |
|
|
56.5 |
|
|
95.3 |
|
|
272.0 |
|
|
$ |
75.1 |
|
|
63.7 |
|
|
70.2 |
|
|
82.4 |
|
|
291.4 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2016 |
|
1Q |
|
2Q |
|
First Half |
|
|
|
|
|
|
Adjusted
EBITDA |
|
|
|
|
|
Income from continuing operations -
Non-GAAP(a)(b) |
$ |
14.9 |
|
|
19.0 |
|
|
33.9 |
|
Interest expense - Non-GAAP(a) |
4.8 |
|
|
4.9 |
|
|
9.7 |
|
Income tax provision -
Non-GAAP(a) |
10.2 |
|
|
13.1 |
|
|
23.3 |
|
Depreciation and amortization -
Non-GAAP(a) |
32.1 |
|
|
32.7 |
|
|
64.8 |
|
Adjusted EBITDA |
$ |
62.0 |
|
|
69.7 |
|
|
131.7 |
|
|
|
|
|
|
|
|
|
|
|
(a) Non-GAAP amounts exclude the impact of "Other Items Not
Allocated to Segments" on the respective line items on the
consolidated statements of operations.(b) See page 15 for
reconciliation of 2015 and 2016 non-GAAP revenue and non-GAAP
income from continuing operations to GAAP revenue and GAAP net
income (loss). See page 17 for reconciliation of 2014 non-GAAP
revenue and non-GAAP income from continuing operations to GAAP
revenue and GAAP net income (loss).
The Brink’s Company and
subsidiariesNon-GAAP Results Reconciled to GAAP -
Other (Unaudited) (In millions)
|
2014 |
|
1Q |
|
2Q |
|
3Q |
|
4Q |
|
Full Year |
|
|
|
|
|
|
|
|
|
|
Revenues: |
|
|
|
|
|
|
|
|
|
Non-GAAP |
$ |
818.3 |
|
|
836.7 |
|
|
847.4 |
|
|
848.1 |
|
|
3,350.5 |
|
Other items not allocated to
segments(a) |
131.3 |
|
|
22.3 |
|
|
25.1 |
|
|
33.1 |
|
|
211.8 |
|
GAAP |
$ |
949.6 |
|
|
859.0 |
|
|
872.5 |
|
|
881.2 |
|
|
3,562.3 |
|
|
|
|
|
|
|
|
|
|
|
Income from
continuing operations attributable to Brink's: |
|
|
|
|
|
|
|
|
|
Non-GAAP |
$ |
7.3 |
|
|
8.1 |
|
|
5.7 |
|
|
28.3 |
|
|
49.4 |
|
Other items not allocated to
segments(a) |
(59.9 |
) |
|
(10.3 |
) |
|
20.5 |
|
|
(54.5 |
) |
|
(104.2 |
) |
Income tax rate adjustment(b) |
(6.4 |
) |
|
3.1 |
|
|
2.6 |
|
|
0.7 |
|
|
— |
|
GAAP |
(59.0 |
) |
|
0.9 |
|
|
28.8 |
|
|
(25.5 |
) |
|
(54.8 |
) |
Reconciliation
to net income (loss): |
|
|
|
|
|
|
|
|
|
Discontinued operations |
0.5 |
|
|
0.7 |
|
|
(8.6 |
) |
|
(21.7 |
) |
|
(29.1 |
) |
Net income (loss)
attributable to Brink's |
$ |
(58.5 |
) |
|
1.6 |
|
|
20.2 |
|
|
(47.2 |
) |
|
(83.9 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(a) Refer to the 2015 Fourth Quarter press release exhibit 99.1
on Form 8-K filed February 4, 2016 for details.(b) Non-GAAP income
from continuing operations has been adjusted to reflect an
effective income tax rate in each interim period equal to the
full-year non-GAAP effective income tax rate. The full-year
non-GAAP effective tax rate was 45.7% for 2014.
The Brink’s Company and
subsidiariesReconciliation of Non-GAAP to GAAP
2016 Outlook (Unaudited) (In millions, except for
percentages and per share amounts)
|
2016Non-GAAPOutlook |
|
Other Items Not Allocated to
Segments |
|
2016GAAPOutlook |
|
|
|
|
|
|
Revenues(a) |
~2,900 |
|
|
50 |
|
|
~2,950 |
|
Operating profit
(loss)(b) |
185 – 200 |
|
|
(50 |
) |
|
135 – 150 |
|
Nonoperating
expense(a) |
|
(17 |
) |
|
— |
|
|
|
(17 |
) |
Provision for income
taxes(b)(d) |
(66) – (71) |
|
|
— |
|
|
— |
|
Noncontrolling
interests(c) |
(5) – (7) |
|
|
(3 |
) |
|
(8) – (10) |
|
Income (loss) from
continuing operations(b)(d) |
97 – 107 |
|
|
— |
|
|
— |
|
EPS from continuing
operations(b)(d) |
1.95 – 2.10 |
|
|
— |
|
|
— |
|
|
|
|
|
|
|
Operating profit
margin(b) |
6.4% – 6.9% |
|
|
|
(1.8 |
)% |
|
4.6% – 5.1% |
|
|
|
|
|
|
|
Effective income tax
rate(b)(d) |
39.0 |
% |
|
— |
|
|
— |
|
|
|
|
|
|
|
Fixed asset
acquired |
|
|
|
|
|
Capital expenditures(c) |
95 – 105 |
|
|
5 |
|
|
100 – 110 |
|
Capital leases |
35 |
|
|
— |
|
|
35 |
|
Total |
130 – 140 |
|
|
5 |
|
|
135 – 145 |
|
|
|
|
|
|
|
Depreciation and
amortization of fixed assets |
125 – 135 |
|
|
— |
|
|
125 – 135 |
|
|
|
|
|
|
|
|
|
Amounts may not add due to rounding.
(a) Non-GAAP outlook excludes the impacts of Venezuela
operations and acquisitions and dispositions.(b) Non-GAAP outlook
excludes the impacts of Venezuela operations, reorganization and
restructuring, U.S. and Mexican retirement plans, and acquisitions
and dispositions.(c) Non-GAAP outlook excludes the impacts of
Venezuela operations.(d) The 2016 Non-GAAP outlook amounts for
provision for income taxes, income (loss) from continuing
operations, EPS from continuing operations, and the effective
income tax rate cannot be reconciled to GAAP without unreasonable
effort. We cannot reconcile these amounts to GAAP because we are
unable to accurately forecast the tax impact of Venezuela
operations and the related exchange rates used to measure those
operations. The impact of Venezuela operations and related exchange
rates during the remainder of 2016 could be significant to our
full-year GAAP provision for income taxes, and, therefore, to
income (loss) from continuing operations, EPS from continuing
operations, and the effective income tax rate.
Contact:
Investor Relations
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