The Brink’s Company (NYSE:BCO), a leading global provider of cash
and valuables management, digital retail solutions (DRS), and ATM
managed services (AMS), today announced first-quarter results.
Mark Eubanks, president and CEO, said: “In the first quarter we
delivered robust organic revenue growth across all segments and
customer offerings. Organic growth in AMS and DRS accelerated
sequentially and was up 18% year-over-year as customer demand
continues to build for our value-added solutions. First quarter
adjusted EBITDA margins expanded 160 basis-points, representing the
highest first quarter margins since we first reported the metric.
This was enabled by improving AMS and DRS mix and productivity
gains from the early developments of the Brink's Business System.
Earnings per share growth of 20% was driven by strong margin
expansion and a four percent reduction in outstanding share count
year-over-year."
“I remain encouraged by the accelerating pace in our business
transformation initiatives. With growing demand for our DRS and AMS
offerings, and expanding profit margins, we are well positioned to
deliver our 2024 commitments. With another strong quarter behind
us, I am confident that continued execution of our strategy will
create additional value for our shareholders for years to
come.”
First-quarter results are summarized in
the following table:
(In millions, except for per share amounts) |
First-Quarter 2024 (vs. 2023) |
|
GAAP |
|
Change |
|
Non-GAAP |
|
Change |
|
Constant Currency Change(b) |
Revenue |
$ |
1,236 |
|
4% |
|
$ |
1,236 |
|
4% |
|
12% |
Operating Profit |
$ |
121 |
|
52% |
|
$ |
145 |
|
14% |
|
37% |
Operating Margin |
|
9.8% |
|
310 bps |
|
|
11.7% |
|
100 bps |
|
240 bps |
Net Income / Adjusted EBITDA(a) |
$ |
49 |
|
229% |
|
$ |
218 |
|
15% |
|
30% |
EPS |
$ |
1.09 |
|
263% |
|
$ |
1.52 |
|
20% |
|
57% |
(a) The non-GAAP financial metric, adjusted
EBITDA, is presented with its corresponding GAAP metric, net income
attributable to Brink's. |
(b) Constant currency represents 2024 Non-GAAP
results at 2023 exchange rates. |
|
2024 Guidance (Unaudited)(In millions, except
for percentages and per share amounts)
The 2024 Non-GAAP outlook amounts cannot be reconciled to GAAP
without unreasonable effort, as we are unable to accurately
forecast certain amounts that are necessary for reconciliation,
including the impact of highly inflationary accounting on our
Argentina operations in 2024 or other potential Non-GAAP adjusting
items for which the timing and amounts are currently under review,
such as future restructuring actions and the impact of possible
future acquisitions. We are also unable to forecast changes in cash
held for customer obligations or proceeds from the sale of
property, equipment and investments in 2024. The 2024 Non-GAAP
outlook reflects management's current assumptions regarding
variables that are difficult to accurately forecast, including
those discussed in the Risk Factors set forth in the Company's
filings with the United States Securities and Exchange Commission.
The 2024 outlook assumes the continuation of current economic
trends and does not contemplate a significant economic downturn for
the balance of the year.
|
|
2024 Non-GAAP Outlook |
|
|
Revenues |
$ |
5,075 - 5,225 |
|
|
Adjusted EBITDA |
$ |
935 - 985 |
|
|
Adjusted EBITDA margin |
|
18.4% - 18.9% |
|
|
Free cash flow before
dividends |
$ |
415 - 465 |
|
|
EPS from continuing operations
attributable to Brink's |
$ |
7.30 - 8.00 |
|
|
|
|
|
|
Conference CallBrink’s will host a conference
call on May 8 at 8:30 a.m. ET to review first-quarter
results. Interested parties can listen by calling
888-349-0094 (in the U.S.) or 412-902-0124 (international).
Participants can preregister at
https://dpregister.com/sreg/10188083/fc2d7fb8f2 to receive a direct
dial-in number for the call. The call also will be accessible live
via webcast on the Brink’s website (www.brinks.com). A replay of
the call will be available through May 15, 2024 at 877-344-7529 (in
the U.S.) or 412-317-0088 (international). The access code is
2724238. An archived version of the webcast will be available
online in the Investor Relations section of
http://investors.brinks.com.
The Brink’s Company and subsidiaries (In
millions, except for per share amounts) (Unaudited)
Condensed Consolidated Balance Sheets |
|
|
December 31, 2023 |
|
March 31, 2024 |
Assets |
|
|
|
Current assets: |
|
|
|
Cash and cash equivalents |
$ |
1,176.6 |
|
|
1,122.7 |
|
Restricted cash |
|
507.0 |
|
|
557.9 |
|
Accounts receivable, net |
|
779.0 |
|
|
857.0 |
|
Prepaid expenses and other |
|
325.7 |
|
|
367.5 |
|
Total current assets |
|
2,788.3 |
|
|
2,905.1 |
|
|
|
|
|
Right-of-use assets, net |
|
337.7 |
|
|
334.5 |
|
Property and equipment,
net |
|
1,013.3 |
|
|
1,003.3 |
|
Goodwill |
|
1,473.8 |
|
|
1,457.7 |
|
Other intangibles, net |
|
488.3 |
|
|
469.4 |
|
Deferred tax assets, net |
|
231.8 |
|
|
226.3 |
|
Other |
|
268.6 |
|
|
283.0 |
|
|
|
|
|
Total assets |
$ |
6,601.8 |
|
|
6,679.3 |
|
|
|
|
|
Liabilities and Equity |
|
|
|
|
|
|
|
Current liabilities: |
|
|
|
Short-term borrowings |
|
151.7 |
|
|
155.0 |
|
Current maturities of long-term debt |
|
117.1 |
|
|
125.6 |
|
Accounts payable |
|
249.7 |
|
|
265.1 |
|
Accrued liabilities |
|
1,126.9 |
|
|
1,105.2 |
|
Restricted cash held for customers |
|
298.7 |
|
|
340.6 |
|
Total current liabilities |
|
1,944.1 |
|
|
1,991.5 |
|
|
|
|
|
Long-term debt |
|
3,262.5 |
|
|
3,309.3 |
|
Accrued pension costs |
|
148.5 |
|
|
145.3 |
|
Retirement benefits other than
pensions |
|
159.6 |
|
|
155.8 |
|
Lease liabilities |
|
265.8 |
|
|
262.8 |
|
Deferred tax liabilities |
|
56.5 |
|
|
57.9 |
|
Other |
|
244.6 |
|
|
236.8 |
|
Total liabilities |
|
6,081.6 |
|
|
6,159.4 |
|
|
|
|
|
Equity: |
|
|
|
The Brink's Company ("Brink's") shareholders: |
|
|
|
Common stock, par value $1 per share: |
|
|
|
Shares authorized: 100.0 |
|
|
|
Shares issued and outstanding: 2024 - 44.6; 2023 - 44.5 |
|
44.5 |
|
|
44.6 |
|
Capital in excess of par value |
|
675.9 |
|
|
666.8 |
|
Retained earnings |
|
333.0 |
|
|
354.0 |
|
Accumulated other comprehensive income (loss) |
|
(656.0 |
) |
|
(669.0 |
) |
Brink's shareholders |
|
397.4 |
|
|
396.4 |
|
|
|
|
|
Noncontrolling interests |
|
122.8 |
|
|
123.5 |
|
|
|
|
|
Total equity |
|
520.2 |
|
|
519.9 |
|
|
|
|
|
Total liabilities and equity |
$ |
6,601.8 |
|
|
6,679.3 |
|
|
The Brink’s Company and subsidiaries (In
millions) (Unaudited)
Condensed Consolidated Statements of Cash
Flows |
|
|
Three Months Ended March 31, |
|
|
2023 |
|
|
2024 |
|
Cash flows from
operating activities: |
|
|
|
Net income |
$ |
18.3 |
|
|
52.2 |
|
Adjustments to reconcile net
income to net cash provided by operating activities: |
|
|
|
(Income) loss from discontinued operations, net of tax |
|
(0.7 |
) |
|
— |
|
Depreciation and amortization |
|
67.6 |
|
|
72.4 |
|
Share-based compensation expense |
|
10.9 |
|
|
9.3 |
|
Deferred income taxes |
|
(0.2 |
) |
|
2.5 |
|
(Gain) loss on marketable securities and sale of property and
equipment |
|
0.1 |
|
|
(2.2 |
) |
Loss on business dispositions |
|
2.0 |
|
|
— |
|
Impairment losses |
|
3.7 |
|
|
0.5 |
|
Retirement benefit funding (more) less than expense: |
|
|
|
Pension |
|
(2.3 |
) |
|
(2.4 |
) |
Other than pension |
|
(5.6 |
) |
|
(3.7 |
) |
Remeasurement losses due to Argentina currency devaluations |
|
9.8 |
|
|
— |
|
Other operating |
|
9.0 |
|
|
11.7 |
|
Changes in operating assets and liabilities, net of effects of
acquisitions: |
|
|
|
(Increase) decrease in accounts receivable and income taxes
receivable |
|
(4.6 |
) |
|
(73.6 |
) |
Increase (decrease) in accounts payable, income taxes payable and
accrued liabilities |
|
(81.1 |
) |
|
(44.1 |
) |
Increase (decrease) in restricted cash held for customers |
|
(43.7 |
) |
|
57.3 |
|
Increase (decrease) in customer obligations |
|
(9.6 |
) |
|
24.0 |
|
Increase (decrease) in prepaid and other current assets |
|
(21.8 |
) |
|
(27.2 |
) |
Other |
|
3.1 |
|
|
(12.8 |
) |
Net cash (used in) provided by operating activities |
|
(45.1 |
) |
|
63.9 |
|
|
|
|
|
Cash flows from
investing activities: |
|
|
|
Capital expenditures |
|
(45.2 |
) |
|
(52.2 |
) |
Acquisitions, net of cash
acquired |
|
— |
|
|
0.7 |
|
Dispositions, net of cash
disposed |
|
1.1 |
|
|
— |
|
Marketable securities: |
|
|
|
Purchases |
|
(3.2 |
) |
|
(0.3 |
) |
Sales |
|
0.3 |
|
|
0.8 |
|
Cash proceeds from sale of
property, equipment and investments |
|
0.3 |
|
|
3.5 |
|
Net change in loans held for
investment |
|
(10.5 |
) |
|
1.8 |
|
Other |
|
(0.4 |
) |
|
(0.1 |
) |
Net cash used in investing activities |
|
(57.6 |
) |
|
(45.8 |
) |
|
|
|
|
Cash flows from
financing activities: |
|
|
|
Borrowings (repayments) of
debt: |
|
|
|
Short-term borrowings |
|
44.7 |
|
|
5.0 |
|
Long-term revolving credit facilities: |
|
|
|
Borrowings |
|
1,961.1 |
|
|
2,536.9 |
|
Repayments |
|
(2,044.1 |
) |
|
(2,470.8 |
) |
Other long-term debt: |
|
|
|
Borrowings |
|
0.3 |
|
|
4.3 |
|
Repayments |
|
(22.8 |
) |
|
(26.9 |
) |
Acquisition of noncontrolling
interest |
|
— |
|
|
(0.2 |
) |
Cash paid for acquisition
related settlements and obligations |
|
(5.1 |
) |
|
— |
|
Repurchase shares of Brink's
common stock |
|
(16.0 |
) |
|
(23.0 |
) |
Dividends to: |
|
|
|
Shareholders of Brink’s |
|
(9.3 |
) |
|
(9.8 |
) |
Noncontrolling interests in subsidiaries |
|
(0.4 |
) |
|
— |
|
Tax withholdings associated
with share-based compensation |
|
(6.6 |
) |
|
(16.8 |
) |
Other |
|
1.1 |
|
|
— |
|
Net cash used in financing activities |
|
(97.1 |
) |
|
(1.3 |
) |
|
|
|
|
Effect of exchange rate
changes on cash |
|
7.7 |
|
|
(19.8 |
) |
Cash, cash equivalents and
restricted cash: |
|
|
|
Decrease |
|
(192.1 |
) |
|
(3.0 |
) |
Balance at beginning of period |
|
1,410.5 |
|
|
1,683.6 |
|
Balance at end of period |
$ |
1,218.4 |
|
|
1,680.6 |
|
|
Supplemental Cash Flow Information |
Three Months Ended March 31, |
|
|
2023 |
|
|
2024 |
|
Cash paid for income taxes,
net |
$ |
(23.3 |
) |
|
(28.2 |
) |
|
|
The Brink’s Company and subsidiaries(In
millions, except for per share amounts) (Unaudited)
First-Quarter
2024 vs.
2023
|
GAAP |
|
|
Organic |
|
Acquisitions / |
|
|
|
|
|
% Change |
|
|
1Q'23 |
|
Change |
|
Dispositions(a) |
|
Currency(b) |
|
1Q'24 |
|
Total |
|
Organic |
|
Revenues: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
North America |
$ |
402 |
|
|
4 |
|
— |
|
— |
|
|
406 |
|
|
1 |
|
|
1 |
|
|
Latin America |
|
316 |
|
|
117 |
|
— |
|
(98 |
) |
|
335 |
|
|
6 |
|
|
37 |
|
|
Europe |
|
269 |
|
|
17 |
|
2 |
|
4 |
|
|
291 |
|
|
8 |
|
|
6 |
|
|
Rest of World |
|
199 |
|
|
8 |
|
— |
|
(3 |
) |
|
205 |
|
|
3 |
|
|
4 |
|
|
Segment revenues(c) |
$ |
1,185 |
|
|
146 |
|
2 |
|
(97 |
) |
|
1,236 |
|
|
4 |
|
|
12 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenues - GAAP |
$ |
1,185 |
|
|
146 |
|
2 |
|
(97 |
) |
|
1,236 |
|
|
4 |
|
|
12 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating profit: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
North America |
$ |
39 |
|
|
10 |
|
— |
|
— |
|
|
48 |
|
|
25 |
|
|
25 |
|
|
Latin America |
|
67 |
|
|
28 |
|
— |
|
(31 |
) |
|
63 |
|
|
(5 |
) |
|
41 |
|
|
Europe |
|
22 |
|
|
3 |
|
— |
|
— |
|
|
26 |
|
|
18 |
|
|
15 |
|
|
Rest of World |
|
37 |
|
|
5 |
|
— |
|
(1 |
) |
|
41 |
|
|
10 |
|
|
13 |
|
|
Segment operating profit |
|
165 |
|
|
45 |
|
— |
|
(31 |
) |
|
178 |
|
|
8 |
|
|
28 |
|
|
Corporate(d) |
|
(37 |
) |
|
2 |
|
— |
|
1 |
|
|
(33 |
) |
|
(10 |
) |
|
(6 |
) |
|
Operating profit - non-GAAP |
$ |
127 |
|
|
48 |
|
— |
|
(30 |
) |
|
145 |
|
|
14 |
|
|
38 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other items not allocated to segments(e) |
|
(48 |
) |
|
5 |
|
8 |
|
10 |
|
|
(24 |
) |
|
(49 |
) |
|
(11 |
) |
|
Operating profit - GAAP |
$ |
80 |
|
|
53 |
|
8 |
|
(20 |
) |
|
121 |
|
|
52 |
|
|
67 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP
interest expense |
|
(47 |
) |
|
|
|
|
|
|
|
(56 |
) |
|
20 |
|
|
|
|
GAAP
interest and other income (expense) |
|
5 |
|
|
|
|
|
|
|
|
13 |
|
|
fav |
|
|
|
GAAP
provision (benefit) for income taxes |
|
20 |
|
|
|
|
|
|
|
|
26 |
|
|
29 |
|
|
|
|
GAAP
noncontrolling interests |
|
3 |
|
|
|
|
|
|
|
|
3 |
|
|
(12 |
) |
|
|
|
GAAP
income from continuing operations(f) |
|
14 |
|
|
|
|
|
|
|
|
49 |
|
|
fav |
|
|
|
GAAP
EPS(f) |
$ |
0.30 |
|
|
|
|
|
|
|
|
1.09 |
|
|
fav |
|
|
|
GAAP
weighted-average diluted shares |
|
47.4 |
|
|
|
|
|
|
|
|
45.3 |
|
|
(4 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-GAAP(g) |
|
|
Organic |
|
Acquisitions / |
|
|
|
|
|
% Change |
|
|
1Q'23 |
|
Change |
|
Dispositions(a) |
|
Currency(b) |
|
1Q'24 |
|
Total |
|
Organic |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Segment revenues - GAAP/non-GAAP |
$ |
1,185 |
|
|
146 |
|
2 |
|
(97 |
) |
|
1,236 |
|
|
4 |
|
|
12 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-GAAP
operating profit |
|
127 |
|
|
48 |
|
— |
|
(30 |
) |
|
145 |
|
|
14 |
|
|
38 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-GAAP
interest expense |
|
(46 |
) |
|
|
|
|
|
|
|
(56 |
) |
|
20 |
|
|
|
|
Non-GAAP
interest and other income (expense) |
|
3 |
|
|
|
|
|
|
|
|
12 |
|
|
fav |
|
|
|
Non-GAAP
provision for income taxes |
|
21 |
|
|
|
|
|
|
|
|
29 |
|
|
39 |
|
|
|
|
Non-GAAP
noncontrolling interests |
|
3 |
|
|
|
|
|
|
|
|
3 |
|
|
(13 |
) |
|
|
|
Non-GAAP
income from continuing operations(f) |
|
60 |
|
|
|
|
|
|
|
|
69 |
|
|
14 |
|
|
|
|
Non-GAAP
EPS(f) |
$ |
1.27 |
|
|
|
|
|
|
|
|
1.52 |
|
|
20 |
|
|
|
|
Non-GAAP
weighted-average diluted shares |
|
47.4 |
|
|
|
|
|
|
|
|
45.3 |
|
|
(4 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Amounts may not add
due to rounding. |
(a) |
Non-GAAP amounts include the impact of prior year comparable period
results for acquired and disposed businesses. GAAP results also
include the impact of acquisition-related intangible amortization,
restructuring and other charges, and disposition related
gains/losses. |
(b) |
The amounts in the “Currency”
column consist of the effects of Argentina devaluations under
highly inflationary accounting and the sum of monthly currency
changes. Monthly currency changes represent the accumulation
throughout the year of the impact on current period results from
changes in foreign currency rates from the prior year period. |
(c) |
Segment revenues equal our total
reported non-GAAP revenues. |
(d) |
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 of public companies. |
(e) |
See pages 7-9 for more
information. |
(f) |
Attributable to Brink's. |
(g) |
Non-GAAP results are reconciled
to applicable GAAP results on pages 10-13. |
|
|
About The Brink’s CompanyThe Brink’s Company
(NYSE:BCO) is a leading global provider of cash and valuables
management, digital retail solutions, and ATM managed services. Our
customers include financial institutions, retailers, government
agencies, mints, jewelers and other commercial operations. Our
network of operations in 52 countries serves customers in more than
100 countries. For more information, please visit our website at
www.brinks.com or call 804-289-9709.
Forward-Looking StatementsThis 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: 2024 outlook, including revenue, adjusted EBITDA,
adjusted EBITDA margin, earnings per share, and free cash flow
before dividends (and drivers thereof), the impact of the global
restructuring plan, expected impact from deployment of
technology-enabled solutions, including digital retail solutions
and ATM managed services, and strategic priorities and initiatives,
including the Brink's Business System.
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 and
execute further cost and operational improvement and efficiencies
in our core businesses; our ability to improve service levels and
quality in our core businesses; market volatility and commodity
price fluctuations; general economic issues, including supply chain
disruptions, fuel price increases, changes in interest rates, and
interest rate increases; seasonality, pricing and other competitive
industry factors; investment in information technology (“IT”) and
its impact on revenue and profit growth; our ability to maintain an
effective IT infrastructure and safeguard confidential information,
including from a cybersecurity incident; our ability to effectively
develop and implement solutions for our customers; risks associated
with operating in foreign countries, including changing political,
labor and economic conditions (including political conflict or
unrest), regulatory issues (including the imposition of
international sanctions, including by the U.S. government),
military conflicts (including but not limited to the conflict in
Israel and surrounding areas, as well as the possible expansion of
such conflicts and potential geopolitical consequences), currency
restrictions and devaluations, restrictions on and cost of
repatriating earnings and capital, impact on the Company’s
financial results as a result of jurisdictions determined to be
highly inflationary, and restrictive government actions, including
nationalization; labor issues, including labor shortages
negotiations with organized labor and work stoppages; pandemics ,
acts of terrorism, strikes or other extraordinary events that
negatively affect global or regional cash commerce; the strength of
the U.S. dollar relative to foreign currencies and foreign currency
exchange rates; our ability to identify, evaluate and complete
acquisitions and other strategic transactions and to successfully
integrate acquired companies; costs related to dispositions and
product or market exits; our ability to obtain appropriate
insurance coverage, positions taken by insurers relative to claims
and the financial condition of insurers; safety and security
performance and loss experience; employee and environmental
liabilities in connection with former coal operations, including
black lung claims; the impact of the American Rescue Plan Act and
Patient Protection and Affordable Care Act on legacy liabilities
and ongoing operations; funding requirements, accounting treatment,
and investment performance of our pension plans, the VEBA and other
employee benefits; changes to estimated liabilities and assets in
actuarial assumptions; the nature of hedging relationships and
counterparty risk; access to the capital and credit markets; our
ability to realize deferred tax assets; the outcome of pending and
future claims, litigation, and administrative proceedings; public
perception of our business, reputation and brand; changes in
estimates and assumptions underlying critical accounting policies;
the promulgation and adoption of new accounting standards, new
government regulations and interpretation of existing standards and
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, 2023, and in related disclosures 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
subsidiariesSegment Results:
2023 and 2024
(Unaudited)(In millions, except for
percentages)
|
Revenues |
|
|
2023 |
|
|
|
2024 |
|
|
1Q |
|
2Q |
|
3Q |
|
4Q |
|
Full Year |
|
1Q |
Revenues: |
|
|
|
|
|
|
|
|
|
|
|
North America |
$ |
401.9 |
|
|
397.4 |
|
|
398.1 |
|
|
403.7 |
|
|
1,601.1 |
|
|
$ |
405.5 |
|
Latin America |
|
315.5 |
|
|
333.9 |
|
|
339.6 |
|
|
343.3 |
|
|
1,332.3 |
|
|
|
334.7 |
|
Europe |
|
268.7 |
|
|
285.9 |
|
|
287.8 |
|
|
294.4 |
|
|
1,136.8 |
|
|
|
291.4 |
|
Rest of World |
|
199.3 |
|
|
199.0 |
|
|
201.9 |
|
|
204.2 |
|
|
804.4 |
|
|
|
204.5 |
|
Segment revenues - GAAP and Non-GAAP |
$ |
1,185.4 |
|
|
1,216.2 |
|
|
1,227.4 |
|
|
1,245.6 |
|
|
4,874.6 |
|
|
$ |
1,236.1 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating Profit |
|
|
2023 |
|
|
|
2024 |
|
|
1Q |
|
2Q |
|
3Q |
|
4Q |
|
Full Year |
|
1Q |
Operating
profit: |
|
|
|
|
|
|
|
|
|
|
|
North America |
$ |
38.6 |
|
|
37.5 |
|
|
47.5 |
|
|
61.6 |
|
|
185.2 |
|
|
$ |
48.4 |
|
Latin America |
|
66.6 |
|
|
65.9 |
|
|
68.1 |
|
|
79.7 |
|
|
280.3 |
|
|
|
63.0 |
|
Europe |
|
22.0 |
|
|
29.3 |
|
|
35.8 |
|
|
37.9 |
|
|
125.0 |
|
|
|
25.9 |
|
Rest of World |
|
37.3 |
|
|
41.3 |
|
|
42.6 |
|
|
42.9 |
|
|
164.1 |
|
|
|
41.1 |
|
Corporate |
|
(37.1 |
) |
|
(42.2 |
) |
|
(27.7 |
) |
|
(32.6 |
) |
|
(139.6 |
) |
|
|
(33.4 |
) |
Non-GAAP |
|
127.4 |
|
|
131.8 |
|
|
166.3 |
|
|
189.5 |
|
|
615.0 |
|
|
|
145.0 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Other items not allocated to segments(a) |
|
|
|
|
|
|
|
|
|
|
|
Reorganization and Restructuring |
|
(14.2 |
) |
|
— |
|
|
(0.4 |
) |
|
(3.0 |
) |
|
(17.6 |
) |
|
|
(1.4 |
) |
Acquisitions and dispositions |
|
(22.0 |
) |
|
(15.0 |
) |
|
(19.4 |
) |
|
(14.2 |
) |
|
(70.6 |
) |
|
|
(15.9 |
) |
Argentina highly inflationary impact |
|
(11.2 |
) |
|
(11.0 |
) |
|
(8.1 |
) |
|
(56.5 |
) |
|
(86.8 |
) |
|
|
(1.6 |
) |
Transformation initiatives |
|
— |
|
|
— |
|
|
— |
|
|
(5.5 |
) |
|
(5.5 |
) |
|
|
(4.8 |
) |
Non-routine auto loss matter |
|
— |
|
|
— |
|
|
— |
|
|
(8.0 |
) |
|
(8.0 |
) |
|
|
— |
|
Chile antitrust matter |
|
(0.2 |
) |
|
(0.2 |
) |
|
— |
|
|
(0.1 |
) |
|
(0.5 |
) |
|
|
(0.4 |
) |
Reporting compliance |
|
— |
|
|
— |
|
|
(0.7 |
) |
|
(0.1 |
) |
|
(0.8 |
) |
|
|
— |
|
GAAP |
$ |
79.8 |
|
|
105.6 |
|
|
137.7 |
|
|
102.1 |
|
|
425.2 |
|
|
$ |
120.9 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating Margin Percentage |
|
|
2023 |
|
|
|
2024 |
|
|
1Q |
|
2Q |
|
3Q |
|
4Q |
|
Full Year |
|
1Q |
Operating margin
percentage: |
|
|
|
|
|
|
|
|
|
|
|
North America |
|
9.6 |
|
|
9.4 |
|
|
11.9 |
|
|
15.3 |
|
|
11.6 |
|
|
|
11.9 |
|
Latin America |
|
21.1 |
|
|
19.7 |
|
|
20.1 |
|
|
23.2 |
|
|
21.0 |
|
|
|
18.8 |
|
Europe |
|
8.2 |
|
|
10.2 |
|
|
12.4 |
|
|
12.9 |
|
|
11.0 |
|
|
|
8.9 |
|
Rest of World |
|
18.7 |
|
|
20.8 |
|
|
21.1 |
|
|
21.0 |
|
|
20.4 |
|
|
|
20.1 |
|
Non-GAAP |
|
10.7 |
|
|
10.8 |
|
|
13.5 |
|
|
15.2 |
|
|
12.6 |
|
|
|
11.7 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Other items not allocated to segments(a) |
|
(4.0 |
) |
|
(2.1 |
) |
|
(2.3 |
) |
|
(7.0 |
) |
|
(3.9 |
) |
|
|
(1.9 |
) |
GAAP |
|
6.7 |
|
|
8.7 |
|
|
11.2 |
|
|
8.2 |
|
|
8.7 |
|
|
|
9.8 |
|
|
(a) See explanation of items on page 8-9. |
|
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. See below for
a summary of the other items not allocated to segments.
Reorganization and Restructuring 2022 Global
Restructuring PlanIn the first quarter of 2023, management
completed the review and approval of the previously announced
restructuring plan across our global business operations. The
actions were taken to enable growth, reduce costs and related
infrastructure, and to mitigate the potential impact of external
economic conditions. In total, we have recognized $34.2 million in
charges under this program, including $1.0 million in the first
three months of 2024. We expect total expenses from this program to
be between $36 million and $38 million. When completed, the current
restructuring actions are expected to reduce our workforce by 3,200
to 3,400 positions and result in annualized cost savings of
approximately $60 million.
Other RestructuringsManagement periodically implements
restructuring actions in targeted sections of our business. As a
result of these actions, we recognized $6.6 million in net costs in
2023. We recognized $0.4 million in net costs in the first three
months of 2024. The majority of the costs in both the 2024 and 2023
periods result from the exit of a line of business in a specific
geography with most of the remaining costs due to management
initiatives to address the COVID-19 pandemic.
Due to the unique circumstances around these charges, these
management-directed items have not been allocated to segment
results and are excluded from non-GAAP 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. These items are
described below:
2024 Acquisitions and Dispositions
- Amortization expense for acquisition-related intangible assets
was $14.5 million in the first three months of 2024.
- We recognized $0.7 million in charges in Argentina in the
first three months of 2024 for an inflation-adjusted labor increase
to expected payments to union workers of the Maco Transportadora
and Maco Litoral businesses (together "Maco"). Although the Maco
operations were acquired in 2017, formal antitrust approval was
obtained in 2021, which triggered negotiation and approval of the
expected payments in 2022.
- We incurred $0.3 million in integration costs in the first
three months of 2024.
- Transaction costs related to business acquisitions were
$0.3 million in the first three months of 2024.
- Compensation expense related to the retention of key PAI
employees was $0.1 million in the first three months of
2024.
2023 Acquisitions and Dispositions
- Amortization expense for acquisition-related intangible assets
was $57.8 million in 2023.
- We derecognized a contingent consideration liability related to
the NoteMachine business acquisition and recognized a gain of
$4.8 million. We also derecognized a contingent consideration
liability related to the Touchpoint 21 acquisition and recognized a
gain of $1.4 million.
- We recognized $4.9 million in charges in Argentina in 2023
for expected payments to union workers of the Maco businesses.
- Net charges of $3.4 million were incurred for post-acquisition
adjustments to indemnification assets related to previous business
acquisitions.
- We incurred $2.2 million in integration costs, primarily
related to PAI, in 2023.
- Transaction costs related to business acquisitions were
$4.2 million in 2023.
- We recognized a $2.0 million loss on the disposition of
Russia-based operations in 2023.
- Compensation expense related to the retention of key PAI
employees was $1.6 million in 2023.
Argentina highly inflationary impact Beginning
in the third quarter of 2018, we designated Argentina's economy as
highly inflationary for accounting purposes. As a result, Argentine
peso-denominated monetary assets and liabilities are now remeasured
at each balance sheet date to the currency exchange rate then in
effect, with currency remeasurement gains and losses recognized in
earnings. In addition, nonmonetary assets retain a higher
historical basis when the currency is devalued. The higher
historical basis results in incremental expense being recognized
when the nonmonetary assets are consumed. In December 2023, the
administration of the newly inaugurated President of Argentina
allowed the peso to devalue by more than 50%. In total, in 2023,
the Argentine peso declined approximately 79%. In the first three
months of 2024, we recognized $1.6 million in pretax charges
related to highly inflationary accounting. In 2023, we recognized
$86.8 million in pretax charges related to highly inflationary
accounting, including currency remeasurement losses of $79.1
million. These amounts are excluded from non-GAAP results.
Transformation initiatives During 2023, we
initiated a multi-year program intended to accelerate growth and
drive margin expansion through transformation of our business model
in the U.S., with expectations to then leverage the transformation
changes and learnings globally. The program is designed to help us
standardize our commercial and operational systems and processes,
drive continuous improvement and achieve operational excellence.
Accordingly, we incurred $4.8 million in the first three months of
2024 and $5.5 million of expense in 2023. The transformation costs
primarily include third party professional services and project
management charges and are excluded from segment and non-GAAP
results.
Non-routine auto loss matter In 2023, a Brink’s
employee was involved in a motor vehicle accident with unique
circumstances that resulted in the death of a third party and, in
connection with ensuing litigation, Brink’s recognized an $8.0
million charge. Due to the unusual nature of the contingency, we
have excluded this charge from segment and non-GAAP results.
Chile antitrust matter In October 2021, the
Chilean antitrust agency filed a complaint alleging that Brink’s
Chile (as well as competitor companies) engaged in collusion in
2017 and 2018 and requested that the court approve a fine of $30.5
million. The Company filed its response to the complaint in
November 2022, which signaled the beginning of the evidentiary
phase. Based on available information to date, we recorded a charge
of $9.5 million in the third quarter of 2021 in connection with
this matter. In 2023, we recognized an additional $0.5 million
adjustment to our estimated loss as a result of a
change in currency rates. In the first three months of 2024, we
recognized an additional $0.4 million adjustment to our
estimated loss as a result of a change in currency rates. Due to
its special nature, this charge has not been allocated to segment
results and is excluded from non-GAAP results.
Reporting compliance Certain compliance costs
(primarily third party expenses) are excluded from segment and
non-GAAP results. In 2023, we incurred $0.8 million in costs
related to mitigation of the material weakness. We did not incur
any such costs in the first three months of 2024.
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 on pages 8 and 9 and in
more detail in our Form 10-Q, and are reconciled to comparable GAAP
measures below. In addition, we refer to non-GAAP constant currency
amounts, which represent current period results and forecasts at
prior period exchange rates.
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 2024 Non-GAAP outlook amounts for EPS from continuing
operations, free cash flow before dividends 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 impact of highly inflationary accounting on our
Argentina operations or other potential Non-GAAP adjusting items
for which the timing and amounts are currently under review, such
as future restructuring actions and the impact of possible future
acquisitions. We are also unable to forecast changes in cash held
for customer obligations or proceeds from the sale of property,
equipment and investments in 2024. The impact of highly
inflationary accounting and other potential Non-GAAP adjusting
items could be significant to our GAAP results.
The Non-GAAP financial measures are intended to provide
investors with a supplemental comparison of our operating results
and trends for the periods presented. Our management believes these
measures are also useful to investors as such measures allow
investors to evaluate our performance using the same metrics that
our management uses to evaluate past performance and prospects for
future performance. We do not consider these items to be reflective
of our operating performance as they result from events and
circumstances that are not a part of our core business.
Additionally, non-GAAP results are utilized as performance measures
in certain management incentive compensation plans. Non-GAAP
results should not be considered as an alternative to revenue, net
income, earnings per share or cash flows from operating activities
amounts determined in accordance with GAAP and should be read in
conjunction with their GAAP counterparts. Non-GAAP financial
measures may not be comparable to Non-GAAP financial measures
presented by other companies.
Non-GAAP Results Reconciled to GAAP
|
|
YTD '23 |
|
YTD '24 |
|
|
Pre-tax income |
|
Income taxes |
|
Effective tax rate |
|
Pre-tax income |
|
Income taxes |
|
Effective tax rate |
Effective
Income Tax Rate |
|
|
|
|
|
|
|
|
|
|
|
GAAP |
$ |
37.9 |
|
|
20.3 |
|
|
53.6 |
% |
|
$ |
78.4 |
|
|
26.2 |
|
|
33.4 |
% |
|
Retirement plans(c) |
|
(2.2 |
) |
|
(0.6 |
) |
|
|
|
|
(1.5 |
) |
|
(0.3 |
) |
|
|
|
Reorganization and
Restructuring(a) |
|
14.2 |
|
|
2.7 |
|
|
|
|
|
1.4 |
|
|
0.4 |
|
|
|
|
Acquisitions and
dispositions(a) |
|
22.7 |
|
|
2.4 |
|
|
|
|
|
15.7 |
|
|
1.3 |
|
|
|
|
Argentina highly inflationary
impact(a) |
|
11.5 |
|
|
(0.5 |
) |
|
|
|
|
1.6 |
|
|
(0.1 |
) |
|
|
|
Transformation
initiatives(a) |
|
— |
|
|
— |
|
|
|
|
|
4.8 |
|
|
0.1 |
|
|
|
|
Valuation allowance on tax
credits(f) |
|
— |
|
|
(2.6 |
) |
|
|
|
|
— |
|
|
— |
|
|
|
|
Chile antitrust matter(a) |
|
0.2 |
|
|
— |
|
|
|
|
|
0.4 |
|
|
— |
|
|
|
|
Income tax rate
adjustment(b) |
|
— |
|
|
(0.8 |
) |
|
|
|
|
— |
|
|
1.5 |
|
|
|
Non-GAAP |
$ |
84.3 |
|
|
20.9 |
|
|
24.8 |
% |
|
$ |
100.8 |
|
|
29.1 |
|
|
28.9 |
% |
|
Amounts may not
add due to rounding. |
(a) |
See “Other Items
Not Allocated To Segments” on pages 7-9 for details. We do not
consider these items to be reflective of our operating performance
as they result from events and circumstances that are not a part of
our core business. |
(b) |
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 28.9% for 2024 and was
24.8% for 2023. |
(c) |
Our U.S.
retirement plans are frozen and costs related to these plans are
excluded from non-GAAP results. Certain non-U.S. operations also
have retirement plans. Settlement charges and curtailment gains
related to these non-U.S. plans and costs related to our frozen
non-U.S. retirement plans are also excluded from non-GAAP
results. |
(d) |
Due to
reorganization and restructuring activities, there was a $0.9
million non-GAAP adjustment to share-based compensation in the
first quarter of 2023. There is no difference between GAAP and
non-GAAP share-based compensation amounts for the periods
presented. |
(e) |
Due to the impact
of Argentina highly inflationary accounting, there was a $0.3
million non-GAAP adjustment for a loss in the first quarter of
2023, a $0.3 million non-GAAP adjustment for a loss in the second
quarter of 2023, a $22.7 million non-GAAP adjustment for a loss in
the third quarter of 2023, and a $31.9 million non-GAAP adjustment
for a loss in the fourth quarter of 2023. There is no difference
between GAAP and non-GAAP share-based compensation amounts for the
other period presented. |
(f) |
In 2023, we
recorded a portion of our valuation allowance on certain U.S.
deferred tax assets primarily related to foreign tax credit
carryforward attributes. The valuation allowance increase was due
to new foreign tax credit Notices published by the U.S. Internal
Revenue Service in 2023, which provided taxpayers relief from the
2022 foreign tax credit regulations until additional guidance is
issued and effective date of such guidance is provided. |
(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, non-GAAP depreciation and amortization, non-GAAP
share-based compensation and non-GAAP marketable securities (gain)
loss. |
|
|
The Brink’s Company and
subsidiariesNon-GAAP Results Reconciled to GAAP
(Unaudited) - continued (In millions, except for
percentages and per share amounts)
|
|
2023 |
|
|
|
2024 |
|
|
1Q |
|
2Q |
|
3Q |
|
4Q |
|
Full Year |
|
1Q |
|
|
|
|
|
|
|
|
|
|
|
|
Revenues: |
|
|
|
|
|
|
|
|
|
|
|
GAAP |
$ |
1,185.4 |
|
|
1,216.2 |
|
|
1,227.4 |
|
|
1,245.6 |
|
|
4,874.6 |
|
|
$ |
1,236.1 |
|
Non-GAAP |
$ |
1,185.4 |
|
|
1,216.2 |
|
|
1,227.4 |
|
|
1,245.6 |
|
|
4,874.6 |
|
|
$ |
1,236.1 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating profit
(loss): |
|
|
|
|
|
|
|
|
|
|
|
GAAP |
$ |
79.8 |
|
|
105.6 |
|
|
137.7 |
|
|
102.1 |
|
|
425.2 |
|
|
$ |
120.9 |
|
Reorganization and Restructuring(a) |
|
14.2 |
|
|
— |
|
|
0.4 |
|
|
3.0 |
|
|
17.6 |
|
|
|
1.4 |
|
Acquisitions and dispositions(a) |
|
22.0 |
|
|
15.0 |
|
|
19.4 |
|
|
14.2 |
|
|
70.6 |
|
|
|
15.9 |
|
Argentina highly inflationary impact(a) |
|
11.2 |
|
|
11.0 |
|
|
8.1 |
|
|
56.5 |
|
|
86.8 |
|
|
|
1.6 |
|
Transformation initiatives(a) |
|
— |
|
|
— |
|
|
— |
|
|
5.5 |
|
|
5.5 |
|
|
|
4.8 |
|
Non-routine auto loss matter(a) |
|
— |
|
|
— |
|
|
— |
|
|
8.0 |
|
|
8.0 |
|
|
|
— |
|
Chile antitrust matter(a) |
|
0.2 |
|
|
0.2 |
|
|
— |
|
|
0.1 |
|
|
0.5 |
|
|
|
0.4 |
|
Reporting compliance(a) |
|
— |
|
|
— |
|
|
0.7 |
|
|
0.1 |
|
|
0.8 |
|
|
|
— |
|
Non-GAAP |
$ |
127.4 |
|
|
131.8 |
|
|
166.3 |
|
|
189.5 |
|
|
615.0 |
|
|
$ |
145.0 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating
margin: |
|
|
|
|
|
|
|
|
|
|
|
GAAP margin |
|
6.7 |
% |
|
8.7 |
% |
|
11.2 |
% |
|
8.2 |
% |
|
8.7 |
% |
|
|
9.8 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
Non-GAAP margin |
|
10.7 |
% |
|
10.8 |
% |
|
13.5 |
% |
|
15.2 |
% |
|
12.6 |
% |
|
|
11.7 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
Interest
expense: |
|
|
|
|
|
|
|
|
|
|
|
GAAP |
$ |
(46.6 |
) |
|
(51.1 |
) |
|
(53.8 |
) |
|
(52.3 |
) |
|
(203.8 |
) |
|
$ |
(55.8 |
) |
Acquisitions and dispositions(a) |
|
0.2 |
|
|
0.3 |
|
|
0.2 |
|
|
0.1 |
|
|
0.8 |
|
|
|
— |
|
Non-GAAP |
$ |
(46.4 |
) |
|
(50.8 |
) |
|
(53.6 |
) |
|
(52.2 |
) |
|
(203.0 |
) |
|
$ |
(55.8 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
Interest and other
income (expense): |
|
|
|
|
|
|
|
|
|
|
|
GAAP |
$ |
4.7 |
|
|
4.1 |
|
|
2.9 |
|
|
2.7 |
|
|
14.4 |
|
|
$ |
13.3 |
|
Retirement plans(c) |
|
(2.2 |
) |
|
(1.9 |
) |
|
(2.1 |
) |
|
(2.8 |
) |
|
(9.0 |
) |
|
|
(1.5 |
) |
Acquisitions and dispositions(a) |
|
0.5 |
|
|
0.6 |
|
|
(0.9 |
) |
|
1.0 |
|
|
1.2 |
|
|
|
(0.2 |
) |
Argentina highly inflationary impact(a) |
|
0.3 |
|
|
0.3 |
|
|
22.7 |
|
|
31.9 |
|
|
55.2 |
|
|
|
— |
|
Non-GAAP |
$ |
3.3 |
|
|
3.1 |
|
|
22.6 |
|
|
32.8 |
|
|
61.8 |
|
|
$ |
11.6 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Taxes: |
|
|
|
|
|
|
|
|
|
|
|
GAAP |
$ |
20.3 |
|
|
23.4 |
|
|
37.3 |
|
|
58.2 |
|
|
139.2 |
|
|
$ |
26.2 |
|
Retirement plans(c) |
|
(0.6 |
) |
|
(0.1 |
) |
|
(0.6 |
) |
|
(0.7 |
) |
|
(2.0 |
) |
|
|
(0.3 |
) |
Reorganization and Restructuring(a) |
|
2.7 |
|
|
(0.1 |
) |
|
0.1 |
|
|
0.7 |
|
|
3.4 |
|
|
|
0.4 |
|
Acquisitions and dispositions(a) |
|
2.4 |
|
|
2.0 |
|
|
3.3 |
|
|
1.2 |
|
|
8.9 |
|
|
|
1.3 |
|
Argentina highly inflationary impact(a) |
|
(0.5 |
) |
|
(0.2 |
) |
|
(0.9 |
) |
|
(2.9 |
) |
|
(4.5 |
) |
|
|
(0.1 |
) |
Transformation initiatives(a) |
|
— |
|
|
— |
|
|
— |
|
|
0.1 |
|
|
0.1 |
|
|
|
0.1 |
|
Non-routine auto loss matter(a) |
|
— |
|
|
— |
|
|
— |
|
|
0.2 |
|
|
0.2 |
|
|
|
— |
|
Valuation allowance on tax credits(f) |
|
(2.6 |
) |
|
(4.1 |
) |
|
— |
|
|
(21.1 |
) |
|
(27.8 |
) |
|
|
— |
|
Chile antitrust matter(a) |
|
— |
|
|
0.1 |
|
|
— |
|
|
— |
|
|
0.1 |
|
|
|
— |
|
Income tax rate adjustment(b) |
|
(0.8 |
) |
|
(0.1 |
) |
|
(5.6 |
) |
|
6.5 |
|
|
— |
|
|
|
1.5 |
|
Non-GAAP |
$ |
20.9 |
|
|
20.9 |
|
|
33.6 |
|
|
42.2 |
|
|
117.6 |
|
|
$ |
29.1 |
|
|
Amounts may not
add due to rounding. |
See page 10 for
footnote explanations. |
|
|
|
2023 |
|
|
|
2024 |
|
|
1Q |
|
2Q |
|
3Q |
|
4Q |
|
Full Year |
|
1Q |
|
|
|
|
|
|
|
|
|
|
|
|
Noncontrolling
interests: |
|
|
|
|
|
|
|
|
|
|
|
GAAP |
$ |
3.3 |
|
|
3.0 |
|
|
3.8 |
|
|
0.5 |
|
|
10.6 |
|
|
$ |
2.9 |
|
Acquisitions and dispositions(a) |
|
0.2 |
|
|
0.3 |
|
|
0.3 |
|
|
0.2 |
|
|
1.0 |
|
|
|
0.2 |
|
Income tax rate adjustment(b) |
|
(0.3 |
) |
|
(0.3 |
) |
|
0.1 |
|
|
0.5 |
|
|
— |
|
|
|
(0.3 |
) |
Non-GAAP |
$ |
3.2 |
|
|
3.0 |
|
|
4.2 |
|
|
1.2 |
|
|
11.6 |
|
|
$ |
2.8 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Income (loss) from
continuing operations attributable to Brink's: |
|
|
|
|
|
|
|
|
|
|
|
GAAP |
$ |
14.3 |
|
|
32.2 |
|
|
45.7 |
|
|
(6.2 |
) |
|
86.0 |
|
|
$ |
49.3 |
|
Retirement plans(c) |
|
(1.6 |
) |
|
(1.8 |
) |
|
(1.5 |
) |
|
(2.1 |
) |
|
(7.0 |
) |
|
|
(1.2 |
) |
Reorganization and Restructuring(a) |
|
11.5 |
|
|
0.1 |
|
|
0.3 |
|
|
2.3 |
|
|
14.2 |
|
|
|
1.0 |
|
Acquisitions and dispositions(a) |
|
20.1 |
|
|
13.6 |
|
|
15.1 |
|
|
13.9 |
|
|
62.7 |
|
|
|
14.2 |
|
Argentina highly inflationary impact(a) |
|
12.0 |
|
|
11.5 |
|
|
31.7 |
|
|
91.3 |
|
|
146.5 |
|
|
|
1.7 |
|
Transformation initiatives(a) |
|
— |
|
|
— |
|
|
— |
|
|
5.4 |
|
|
5.4 |
|
|
|
4.7 |
|
Non-routine auto loss matter(a) |
|
— |
|
|
— |
|
|
— |
|
|
7.8 |
|
|
7.8 |
|
|
|
— |
|
Valuation allowance on tax credits(f) |
|
2.6 |
|
|
4.1 |
|
|
— |
|
|
21.1 |
|
|
27.8 |
|
|
|
— |
|
Chile antitrust matter(a) |
|
0.2 |
|
|
0.1 |
|
|
— |
|
|
0.1 |
|
|
0.4 |
|
|
|
0.4 |
|
Reporting compliance(a) |
|
— |
|
|
— |
|
|
0.7 |
|
|
0.1 |
|
|
0.8 |
|
|
|
— |
|
Income tax rate adjustment(b) |
|
1.1 |
|
|
0.4 |
|
|
5.5 |
|
|
(7.0 |
) |
|
— |
|
|
|
(1.2 |
) |
Non-GAAP |
$ |
60.2 |
|
|
60.2 |
|
|
97.5 |
|
|
126.7 |
|
|
344.6 |
|
|
$ |
68.9 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted
EBITDA(g): |
|
|
|
|
|
|
|
|
|
|
|
Net income (loss) attributable to Brink's - GAAP |
$ |
15.0 |
|
|
32.1 |
|
|
45.6 |
|
|
(5.0 |
) |
|
87.7 |
|
|
$ |
49.3 |
|
Interest expense - GAAP |
|
46.6 |
|
|
51.1 |
|
|
53.8 |
|
|
52.3 |
|
|
203.8 |
|
|
|
55.8 |
|
Income tax provision - GAAP |
|
20.3 |
|
|
23.4 |
|
|
37.3 |
|
|
58.2 |
|
|
139.2 |
|
|
|
26.2 |
|
Depreciation and amortization - GAAP |
|
67.6 |
|
|
69.6 |
|
|
69.1 |
|
|
69.5 |
|
|
275.8 |
|
|
|
72.4 |
|
EBITDA |
$ |
149.5 |
|
|
176.2 |
|
|
205.8 |
|
|
175.0 |
|
|
706.5 |
|
|
$ |
203.7 |
|
Discontinued operations - GAAP |
|
(0.7 |
) |
|
0.1 |
|
|
0.1 |
|
|
(1.2 |
) |
|
(1.7 |
) |
|
|
— |
|
Retirement plans(c) |
|
(2.2 |
) |
|
(1.9 |
) |
|
(2.1 |
) |
|
(2.8 |
) |
|
(9.0 |
) |
|
|
(1.5 |
) |
Reorganization and Restructuring(a) |
|
13.1 |
|
|
(0.1 |
) |
|
0.4 |
|
|
3.0 |
|
|
16.4 |
|
|
|
1.4 |
|
Acquisitions and dispositions(a) |
|
8.3 |
|
|
0.7 |
|
|
3.6 |
|
|
0.4 |
|
|
13.0 |
|
|
|
1.0 |
|
Argentina highly inflationary impact(a) |
|
10.4 |
|
|
10.0 |
|
|
29.4 |
|
|
86.8 |
|
|
136.6 |
|
|
|
(0.7 |
) |
Transformation initiatives(a) |
|
— |
|
|
— |
|
|
— |
|
|
5.5 |
|
|
5.5 |
|
|
|
4.8 |
|
Non-routine auto loss matter(a) |
|
— |
|
|
— |
|
|
— |
|
|
8.0 |
|
|
8.0 |
|
|
|
— |
|
Chile antitrust matter(a) |
|
0.2 |
|
|
0.2 |
|
|
— |
|
|
0.1 |
|
|
0.5 |
|
|
|
0.4 |
|
Reporting compliance(a) |
|
— |
|
|
— |
|
|
0.7 |
|
|
0.1 |
|
|
0.8 |
|
|
|
— |
|
Income tax rate adjustment(b) |
|
0.3 |
|
|
0.3 |
|
|
(0.1 |
) |
|
(0.5 |
) |
|
— |
|
|
|
0.3 |
|
Share-based compensation(d) |
|
11.8 |
|
|
8.3 |
|
|
6.4 |
|
|
6.5 |
|
|
33.0 |
|
|
|
9.3 |
|
Marketable securities (gain) loss(e) |
|
(0.2 |
) |
|
0.5 |
|
|
(13.7 |
) |
|
(29.0 |
) |
|
(42.4 |
) |
|
|
(0.5 |
) |
Adjusted EBITDA |
$ |
190.5 |
|
|
194.3 |
|
|
230.5 |
|
|
251.9 |
|
|
867.2 |
|
|
$ |
218.2 |
|
|
Amounts may not
add due to rounding. |
See page 10 for
footnote explanations. |
|
|
|
2023 |
|
|
|
2024 |
|
|
1Q |
|
2Q |
|
3Q |
|
4Q |
|
Full Year |
|
1Q |
|
|
|
|
|
|
|
|
|
|
|
|
EPS: |
|
|
|
|
|
|
|
|
|
|
|
GAAP |
$ |
0.30 |
|
|
0.68 |
|
|
0.97 |
|
|
(0.13 |
) |
|
1.83 |
|
|
$ |
1.09 |
|
Retirement plans(c) |
|
(0.03 |
) |
|
(0.03 |
) |
|
(0.03 |
) |
|
(0.05 |
) |
|
(0.15 |
) |
|
|
(0.02 |
) |
Reorganization and Restructuring costs(a) |
|
0.24 |
|
|
0.01 |
|
|
0.01 |
|
|
0.05 |
|
|
0.30 |
|
|
|
0.02 |
|
Acquisitions and dispositions(a) |
|
0.42 |
|
|
0.27 |
|
|
0.31 |
|
|
0.30 |
|
|
1.33 |
|
|
|
0.31 |
|
Argentina highly inflationary impact(a) |
|
0.26 |
|
|
0.24 |
|
|
0.67 |
|
|
1.99 |
|
|
3.13 |
|
|
|
0.04 |
|
Transformation initiatives(a) |
|
— |
|
|
— |
|
|
— |
|
|
0.12 |
|
|
0.12 |
|
|
|
0.10 |
|
Non-routine auto loss matter(a) |
|
— |
|
|
— |
|
|
— |
|
|
0.17 |
|
|
0.17 |
|
|
|
— |
|
Valuation allowance on tax credits(f) |
|
0.05 |
|
|
0.09 |
|
|
— |
|
|
0.46 |
|
|
0.59 |
|
|
|
— |
|
Chile antitrust matter(a) |
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
0.01 |
|
|
|
0.01 |
|
Reporting compliance(a) |
|
— |
|
|
— |
|
|
0.02 |
|
|
— |
|
|
0.02 |
|
|
|
— |
|
Income tax rate adjustment(b) |
|
0.02 |
|
|
0.01 |
|
|
0.12 |
|
|
(0.15 |
) |
|
— |
|
|
|
(0.03 |
) |
Non-GAAP |
$ |
1.27 |
|
|
1.27 |
|
|
2.07 |
|
|
2.76 |
|
|
7.35 |
|
|
$ |
1.52 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Depreciation and
Amortization: |
|
|
|
|
|
|
|
|
|
|
|
GAAP |
$ |
67.6 |
|
|
69.6 |
|
|
69.1 |
|
|
69.5 |
|
|
275.8 |
|
|
$ |
72.4 |
|
Reorganization and Restructuring costs(a) |
|
(1.1 |
) |
|
(0.1 |
) |
|
— |
|
|
— |
|
|
(1.2 |
) |
|
|
— |
|
Acquisitions and dispositions(a) |
|
(14.0 |
) |
|
(14.6 |
) |
|
(14.6 |
) |
|
(14.6 |
) |
|
(57.8 |
) |
|
|
(14.5 |
) |
Argentina highly inflationary impact(a) |
|
(1.1 |
) |
|
(1.3 |
) |
|
(1.4 |
) |
|
(1.6 |
) |
|
(5.4 |
) |
|
|
(2.3 |
) |
Non-GAAP |
$ |
51.4 |
|
|
53.6 |
|
|
53.1 |
|
|
53.3 |
|
|
211.4 |
|
|
$ |
55.6 |
|
|
Amounts may not
add due to rounding. |
See page 10 for
footnote explanations. |
|
|
|
Full Year |
|
Three MonthsEnded March 31, |
|
|
|
2023 |
|
|
|
2023 |
|
|
|
2024 |
|
|
|
|
|
|
|
|
Free cash
flow before dividends: |
|
|
|
|
|
Cash flows from
operating activities |
|
|
|
|
|
|
Operating activities -
GAAP |
$ |
702.4 |
|
|
$ |
(45.1 |
) |
|
$ |
63.9 |
|
|
(Increase) decrease in
restricted cash held for customers |
|
(59.5 |
) |
|
|
43.7 |
|
|
|
(57.3 |
) |
|
(Increase) decrease in certain
customer obligations(a) |
|
(66.0 |
) |
|
|
9.6 |
|
|
|
(24.0 |
) |
Operating
activities - non-GAAP |
$ |
576.9 |
|
|
$ |
8.2 |
|
|
$ |
(17.4 |
) |
|
Capital expenditures -
GAAP |
|
(202.7 |
) |
|
|
(45.2 |
) |
|
|
(52.2 |
) |
|
Proceeds from sale of
property, equipment and investments |
|
18.4 |
|
|
|
0.3 |
|
|
|
3.5 |
|
Free cash flow
before dividends |
$ |
392.6 |
|
|
$ |
(36.7 |
) |
|
$ |
(66.1 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
(a) |
To adjust for the
change in the balance of customer obligations related to cash
received and processed in certain of our secure Cash Management
Services operations. The title to this cash transfers to us for a
short period of time. The cash is generally credited to customers’
accounts the following day and we do not consider it as available
for general corporate purposes in the management of our liquidity
and capital resources. |
|
|
|
|
|
|
|
|
|
|
|
|
|
Free cash flow before dividends is a supplemental financial
measure that is not required by, or presented in accordance with
GAAP. The purpose of this non-GAAP measure is to report financial
information excluding the change in restricted cash held for
customers, the impact of cash received and processed in certain of
our secure cash management services operations, capital
expenditures, and to include proceeds from the sale of property,
equipment and investments. We believe this measure is helpful in
assessing cash flows from operations, enables period-to-period
comparability and is useful in predicting future cash flows. This
non-GAAP measure should not be considered as an alternative to cash
flows from operating activities determined in accordance with GAAP
and should be read in conjunction with our condensed consolidated
statements of cash flows.
Contact:
Investor Relations804.289.9709
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