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 fourth-quarter and
full-year 2023 results.
Mark Eubanks, president and CEO, said: “We took a decisive step
forward in the transformation of our business during 2023. I'm
proud of the team's ability to drive growth in higher-margin AMS
and DRS customer offerings while expanding profit margins. Combined
with our disciplined capital allocation policy and record free cash
flow in the year, we reduced leverage into our targeted range as we
committed to investors. Fourth quarter growth was highlighted by
the eighth consecutive quarter of double-digit organic growth in
AMS and DRS while operating profits were impacted by geopolitical
and economic uncertainty in certain markets, and slower than
expected growth in high margin services in North America. Looking
into 2024, we expect to drive mid-single digit revenue growth, with
continued double-digit organic growth in AMS and DRS. Adjusted
EBITDA margins are expected to expand through productivity
initiatives, improved growth and profitability in North America,
and higher-margin revenue mix.
“I am encouraged by the progress made in 2023 to improve
consistency in our business model through the Brink's Business
System. With continued top-line momentum, a more efficient
operational foundation, reduced leverage levels and a disciplined
capital allocation framework, I remain certain we are taking the
right steps to create value for our shareholders in the years to
come.”
Fourth-quarter and full-year results
are summarized in the following tables:
(In millions, except for per
share amounts) |
Fourth-Quarter 2023 (vs. 2022) |
|
GAAP |
|
Change |
|
Non-GAAP |
|
Change |
|
Constant Currency Change(b) |
Revenue |
$ |
1,246 |
|
|
5% |
|
$ |
1,246 |
|
|
5% |
|
8% |
Operating Profit |
$ |
102 |
|
|
(29%) |
|
$ |
190 |
|
|
1% |
|
17% |
Operating Margin |
|
8.2 |
% |
|
(380 bps) |
|
|
15.2 |
% |
|
(50 bps) |
|
130 bps |
Net Income / Adjusted
EBITDA(a) |
$ |
(5 |
) |
|
(111%) |
|
$ |
252 |
|
|
2% |
|
13% |
EPS |
$ |
(0.13 |
) |
|
(113%) |
|
$ |
2.76 |
|
|
31% |
|
54% |
(In millions, except for per
share amounts) |
Full Year 2023 (vs. 2022) |
|
GAAP |
|
Change |
|
Non-GAAP |
|
Change |
|
Constant Currency Change(b) |
Revenue |
$ |
4,875 |
|
|
7% |
|
$ |
4,875 |
|
|
7% |
|
11% |
Operating Profit |
$ |
425 |
|
|
18% |
|
$ |
615 |
|
|
12% |
|
25% |
Operating Margin |
|
8.7 |
% |
|
70 bps |
|
|
12.6 |
% |
|
50 bps |
|
150 bps |
Net Income / Adjusted
EBITDA(a) |
$ |
88 |
|
|
(49%) |
|
$ |
867 |
|
|
10% |
|
19% |
EPS |
$ |
1.83 |
|
|
(50%) |
|
$ |
7.35 |
|
|
23% |
|
42% |
(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 2023 Non-GAAP results at
2022 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.
|
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 |
|
Share Repurchase Activity In October 2021, we
announced that our Board of Directors authorized a $250 million
share repurchase program (the "2021 Repurchase Program"). Under the
2021 Repurchase Program, in the fourth-quarter of 2023, we
repurchased a total of 844,382 shares of common stock for an
aggregate of $64.2 million and an average price of $75.98 per
share. In the full year 2023, we repurchased a total of 2,297,955
shares of our common stock for an aggregate of $169.9 million and
an average price of $73.92 per share. These shares were retired
upon repurchase. The 2021 Repurchase Program expired on December
31, 2023 with approximately $28 million remaining available.
In November 2023, our Board of Directors authorized a $500
million share repurchase program that expires on December 31, 2025.
As of December 31, 2023, no shares had been purchased under the
program and the company had $500 million of remaining share
repurchase authority.
Conference CallBrink’s will host a conference
call on February 29 at 8:30 a.m. ET to review fourth-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/10186072/fb7c38cde8 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
March 7, 2024 at 877-344-7529 (in the U.S.) or 412-317-0088
(international). The conference number is 7912729. 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, 2022 |
|
December 31, 2023 |
Assets |
|
|
|
Current assets: |
|
|
|
Cash and cash equivalents |
$ |
972.0 |
|
|
1,176.6 |
|
Restricted cash |
|
438.5 |
|
|
507.0 |
|
Accounts receivable, net |
|
862.2 |
|
|
779.0 |
|
Prepaid expenses and other |
|
324.7 |
|
|
325.7 |
|
Total current assets |
|
2,597.4 |
|
|
2,788.3 |
|
|
|
|
|
Right-of-use assets, net |
|
314.5 |
|
|
337.7 |
|
Property and equipment,
net |
|
935.3 |
|
|
1,013.3 |
|
Goodwill |
|
1,450.9 |
|
|
1,473.8 |
|
Other intangibles |
|
535.5 |
|
|
488.3 |
|
Deferred tax assets, net |
|
246.2 |
|
|
231.8 |
|
Other |
|
286.2 |
|
|
268.6 |
|
|
|
|
|
Total assets |
$ |
6,366.0 |
|
|
6,601.8 |
|
|
|
|
|
Liabilities and Equity |
|
|
|
|
|
|
|
Current liabilities: |
|
|
|
Short-term borrowings |
|
47.2 |
|
|
151.7 |
|
Current maturities of long-term debt |
|
82.4 |
|
|
117.1 |
|
Accounts payable |
|
296.5 |
|
|
249.7 |
|
Accrued liabilities |
|
1,019.4 |
|
|
1,126.9 |
|
Restricted cash held for customers |
|
229.3 |
|
|
298.7 |
|
Total current liabilities |
|
1,674.8 |
|
|
1,944.1 |
|
|
|
|
|
Long-term debt |
|
3,273.2 |
|
|
3,262.5 |
|
Accrued pension costs |
|
131.0 |
|
|
148.5 |
|
Retirement benefits other than
pensions |
|
174.5 |
|
|
159.6 |
|
Lease liabilities |
|
249.9 |
|
|
265.8 |
|
Deferred tax liabilities |
|
67.8 |
|
|
56.5 |
|
Other |
|
224.6 |
|
|
244.6 |
|
Total liabilities |
|
5,795.8 |
|
|
6,081.6 |
|
|
|
|
|
Equity: |
|
|
|
The Brink's Company ("Brink's") shareholders: |
|
|
|
Common stock, par value $1 per share: |
|
|
|
Shares authorized: 100.0 |
|
|
|
Shares issued and outstanding: 2023 - 44.5; 2022 - 46.3 |
|
46.3 |
|
|
44.5 |
|
Capital in excess of par value |
|
684.1 |
|
|
675.9 |
|
Retained earnings |
|
417.2 |
|
|
333.0 |
|
Accumulated other comprehensive income (loss) |
|
(700.5 |
) |
|
(656.0 |
) |
Brink's shareholders |
|
447.1 |
|
|
397.4 |
|
|
|
|
|
Noncontrolling interests |
|
123.1 |
|
|
122.8 |
|
|
|
|
|
Total equity |
|
570.2 |
|
|
520.2 |
|
|
|
|
|
Total liabilities and equity |
$ |
6,366.0 |
|
|
6,601.8 |
|
The Brink’s Company and subsidiaries (In
millions) (Unaudited)
Condensed Consolidated Statements of Cash
Flows
|
Twelve Months Ended December 31, |
|
|
2022 |
|
|
2023 |
|
Cash flows
from operating activities: |
|
|
|
Net income |
$ |
181.9 |
|
|
98.3 |
|
Adjustments to
reconcile net income to net cash provided by operating
activities: |
|
|
|
(Income) loss from discontinued operations, net of tax |
|
2.9 |
|
|
(1.7 |
) |
Depreciation and amortization |
|
245.8 |
|
|
275.8 |
|
Share-based compensation expense |
|
48.6 |
|
|
32.1 |
|
Deferred income taxes |
|
(62.3 |
) |
|
22.7 |
|
(Gain) loss on marketable securities and sale of property and
equipment |
|
0.7 |
|
|
10.9 |
|
Impairment losses |
|
9.0 |
|
|
10.3 |
|
Retirement benefit funding (more) less than expense: |
|
|
|
Pension |
|
(3.7 |
) |
|
(10.2 |
) |
Other than pension |
|
7.9 |
|
|
(5.5 |
) |
Remeasurement losses due to Argentina currency devaluations |
|
37.6 |
|
|
79.1 |
|
Other operating |
|
23.6 |
|
|
26.1 |
|
Changes in operating assets and liabilities, net of effects of
acquisitions: |
|
|
|
(Increase) decrease in accounts receivable and income taxes
receivable |
|
(180.9 |
) |
|
69.0 |
|
Increase (decrease) in accounts payable, income taxes payable and
accrued liabilities |
|
139.2 |
|
|
(36.3 |
) |
Increase in restricted cash held for customers |
|
50.0 |
|
|
59.5 |
|
Increase in customer obligations |
|
50.0 |
|
|
66.0 |
|
(Increase) decrease in prepaid and other current assets |
|
(56.7 |
) |
|
24.6 |
|
Other |
|
(13.7 |
) |
|
(18.3 |
) |
Net cash provided by operating activities |
|
479.9 |
|
|
702.4 |
|
|
|
|
|
Cash flows
from investing activities: |
|
|
|
Capital
expenditures |
|
(182.6 |
) |
|
(202.7 |
) |
Acquisitions, net
of cash acquired |
|
(173.9 |
) |
|
(1.5 |
) |
Dispositions, net
of cash disposed |
|
— |
|
|
1.1 |
|
Marketable
securities: |
|
|
|
Purchases |
|
(30.3 |
) |
|
(134.7 |
) |
Sales |
|
11.7 |
|
|
150.4 |
|
Cash proceeds from
sale of property and equipment |
|
5.7 |
|
|
18.4 |
|
Cash proceeds from
settlement of cross currency swap |
|
64.3 |
|
|
— |
|
Net change in
loans held for investment |
|
(25.9 |
) |
|
(11.1 |
) |
Other |
|
(0.2 |
) |
|
(0.6 |
) |
Discontinued
operations |
|
— |
|
|
0.9 |
|
Net cash used by investing activities |
|
(331.2 |
) |
|
(179.8 |
) |
|
|
|
|
Cash flows
from financing activities: |
|
|
|
Borrowings
(repayments) of debt: |
|
|
|
Short-term borrowings |
|
37.7 |
|
|
98.6 |
|
Long-term revolving credit facilities: |
|
|
|
Borrowings |
|
7,058.7 |
|
|
9,265.7 |
|
Repayments |
|
(6,832.7 |
) |
|
(9,273.8 |
) |
Other long-term debt: |
|
|
|
Borrowings |
|
189.9 |
|
|
25.4 |
|
Repayments |
|
(87.0 |
) |
|
(97.1 |
) |
Acquisition of
noncontrolling interest |
|
(7.8 |
) |
|
(0.6 |
) |
Cash paid for
acquisition related settlements and obligations |
|
(2.8 |
) |
|
(11.1 |
) |
Debt financing
costs |
|
(5.6 |
) |
|
— |
|
Repurchase shares
of Brink's common stock |
|
(52.2 |
) |
|
(169.9 |
) |
Dividends to: |
|
|
|
Shareholders of Brink’s |
|
(37.6 |
) |
|
(39.6 |
) |
Noncontrolling interests in subsidiaries |
|
(7.1 |
) |
|
(7.7 |
) |
Tax withholdings
associated with share-based compensation |
|
(12.2 |
) |
|
(8.0 |
) |
Other |
|
3.9 |
|
|
11.0 |
|
Net cash provided (used) by financing activities |
|
245.2 |
|
|
(207.1 |
) |
|
|
|
|
Effect of exchange
rate changes on cash |
|
(70.1 |
) |
|
(42.4 |
) |
Cash, cash
equivalents and restricted cash: |
|
|
|
Increase |
|
323.8 |
|
|
273.1 |
|
Balance at beginning of period |
|
1,086.7 |
|
|
1,410.5 |
|
Balance at end of period |
$ |
1,410.5 |
|
|
1,683.6 |
|
Supplemental Cash Flow Information |
Twelve Months Ended December 31, |
|
|
2022 |
|
|
2023 |
|
Cash paid for income taxes,
net |
$ |
(127.8 |
) |
|
(96.3 |
) |
The Brink’s Company and subsidiaries(In
millions, except for per share amounts) (Unaudited)
Fourth-Quarter 2023 vs. 2022
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP |
|
|
Organic |
|
Acquisitions / |
|
|
|
|
|
% Change |
|
|
4Q'22 |
|
Change |
|
Dispositions(a) |
|
Currency(b) |
|
4Q'23 |
|
Total |
|
Organic |
|
Revenues: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
North America |
$ |
413 |
|
|
(9 |
) |
|
— |
|
|
— |
|
|
404 |
|
|
(2 |
) |
|
(2 |
) |
|
Latin America |
|
312 |
|
|
91 |
|
|
— |
|
|
(60 |
) |
|
343 |
|
|
10 |
|
|
29 |
|
|
Europe |
|
263 |
|
|
17 |
|
|
— |
|
|
15 |
|
|
294 |
|
|
12 |
|
|
7 |
|
|
Rest of World |
|
203 |
|
|
3 |
|
|
(2 |
) |
|
— |
|
|
204 |
|
|
— |
|
|
2 |
|
|
Segment revenues(c) |
$ |
1,191 |
|
|
102 |
|
|
(2 |
) |
|
(46 |
) |
|
1,246 |
|
|
5 |
|
|
9 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenues - GAAP |
$ |
1,191 |
|
|
102 |
|
|
(2 |
) |
|
(46 |
) |
|
1,246 |
|
|
5 |
|
|
9 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating profit: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
North America |
$ |
62 |
|
|
(1 |
) |
|
— |
|
|
— |
|
|
62 |
|
|
(1 |
) |
|
(1 |
) |
|
Latin America |
|
84 |
|
|
26 |
|
|
— |
|
|
(30 |
) |
|
80 |
|
|
(5 |
) |
|
31 |
|
|
Europe |
|
35 |
|
|
1 |
|
|
— |
|
|
2 |
|
|
38 |
|
|
7 |
|
|
2 |
|
|
Rest of World |
|
43 |
|
|
— |
|
|
— |
|
|
— |
|
|
43 |
|
|
— |
|
|
— |
|
|
Segment operating profit |
|
224 |
|
|
26 |
|
|
— |
|
|
(28 |
) |
|
222 |
|
|
(1 |
) |
|
11 |
|
|
Corporate(d) |
|
(37 |
) |
|
6 |
|
|
— |
|
|
(2 |
) |
|
(33 |
) |
|
(11 |
) |
|
(15 |
) |
|
Operating profit - non-GAAP |
$ |
187 |
|
|
31 |
|
|
— |
|
|
(29 |
) |
|
190 |
|
|
1 |
|
|
17 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other items not allocated to segments(e) |
|
(45 |
) |
|
(4 |
) |
|
6 |
|
|
(45 |
) |
|
(87 |
) |
|
96 |
|
|
9 |
|
|
Operating profit - GAAP |
$ |
143 |
|
|
27 |
|
|
6 |
|
|
(75 |
) |
|
102 |
|
|
(29 |
) |
|
19 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP
interest expense |
|
(44 |
) |
|
|
|
|
|
|
|
(52 |
) |
|
19 |
|
|
|
|
GAAP
interest and other income (expense) |
|
(5 |
) |
|
|
|
|
|
|
|
3 |
|
|
fav |
|
|
|
GAAP
provision for income taxes |
|
45 |
|
|
|
|
|
|
|
|
58 |
|
|
30 |
|
|
|
|
GAAP
noncontrolling interests |
|
2 |
|
|
|
|
|
|
|
|
1 |
|
|
(75 |
) |
|
|
|
GAAP
income (loss) from continuing operations(f) |
|
48 |
|
|
|
|
|
|
|
|
(6 |
) |
|
unfav |
|
|
|
GAAP
EPS(f) |
$ |
1.01 |
|
|
|
|
|
|
|
|
(0.13 |
) |
|
unfav |
|
|
|
GAAP
weighted-average diluted shares(f) |
|
47.5 |
|
|
|
|
|
|
|
|
45.1 |
|
|
(5 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-GAAP(g) |
|
|
Organic |
|
|
Acquisitions / |
|
|
|
|
|
% Change |
|
|
4Q'22 |
|
Change |
|
|
Dispositions(a) |
|
Currency(b) |
|
4Q'23 |
|
Total |
|
Organic |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Segment revenues - GAAP/non-GAAP |
$ |
1,191 |
|
|
102 |
|
|
(2 |
) |
|
(46 |
) |
|
1,246 |
|
|
5 |
|
|
9 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-GAAP
operating profit |
|
187 |
|
|
31 |
|
|
— |
|
|
(29 |
) |
|
190 |
|
|
1 |
|
|
17 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-GAAP
interest expense |
|
(44 |
) |
|
|
|
|
|
|
|
|
(52 |
) |
|
20 |
|
|
|
|
|
Non-GAAP
interest and other income (expense) |
|
4 |
|
|
|
|
|
|
|
|
|
33 |
|
|
fav |
|
|
|
|
Non-GAAP
provision for income taxes |
|
45 |
|
|
|
|
|
|
|
|
|
42 |
|
|
(5 |
) |
|
|
|
|
Non-GAAP
noncontrolling interests |
|
3 |
|
|
|
|
|
|
|
|
|
1 |
|
|
(61 |
) |
|
|
|
|
Non-GAAP
income from continuing operations(f) |
|
100 |
|
|
|
|
|
|
|
|
|
127 |
|
|
27 |
|
|
|
|
|
Non-GAAP
EPS(f) |
$ |
2.10 |
|
|
|
|
|
|
|
|
|
2.76 |
|
|
31 |
|
|
|
|
|
Non-GAAP
weighted-average diluted shares |
|
47.5 |
|
|
|
|
|
|
|
|
|
45.9 |
|
|
(3 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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
10-12 for more information.(f) Attributable to Brink's. Because we
reported a loss from continuing operations on a GAAP basis in the
fourth quarter of 2023, GAAP EPS was calculated using basic shares.
However, as we reported income from continuing operations on a
non-GAAP basis in the fourth quarter of 2023, non-GAAP EPS was
calculated using diluted shares.(g) Non-GAAP results are reconciled
to applicable GAAP results on pages 13-17.
The Brink’s Company and subsidiaries(In
millions, except for per share amounts) (Unaudited)
Full-Year 2023
vs. 2022
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP |
|
|
Organic |
|
Acquisitions / |
|
|
|
|
|
% Change |
|
|
|
2022 |
|
|
Change |
|
Dispositions(a) |
|
Currency(b) |
|
2023 |
|
|
Total |
|
Organic |
|
Revenues: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
North America |
$ |
1,584 |
|
|
18 |
|
3 |
|
|
(5 |
) |
|
1,601 |
|
|
1 |
|
|
1 |
|
|
Latin America |
|
1,211 |
|
|
282 |
|
3 |
|
|
(163 |
) |
|
1,332 |
|
|
10 |
|
|
23 |
|
|
Europe |
|
931 |
|
|
71 |
|
107 |
|
|
27 |
|
|
1,137 |
|
|
22 |
|
|
8 |
|
|
Rest of World |
|
809 |
|
|
23 |
|
(7 |
) |
|
(21 |
) |
|
804 |
|
|
(1 |
) |
|
3 |
|
|
Segment revenues(c) |
$ |
4,536 |
|
|
394 |
|
106 |
|
|
(161 |
) |
|
4,875 |
|
|
7 |
|
|
9 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenues - GAAP |
$ |
4,536 |
|
|
394 |
|
106 |
|
|
(161 |
) |
|
4,875 |
|
|
7 |
|
|
9 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating profit: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
North America |
$ |
159 |
|
|
25 |
|
1 |
|
|
— |
|
|
185 |
|
|
16 |
|
|
16 |
|
|
Latin America |
|
278 |
|
|
77 |
|
1 |
|
|
(76 |
) |
|
280 |
|
|
1 |
|
|
28 |
|
|
Europe |
|
98 |
|
|
9 |
|
14 |
|
|
4 |
|
|
125 |
|
|
27 |
|
|
9 |
|
|
Rest of World |
|
164 |
|
|
3 |
|
1 |
|
|
(4 |
) |
|
164 |
|
|
— |
|
|
2 |
|
|
Segment operating profit |
|
699 |
|
|
115 |
|
16 |
|
|
(76 |
) |
|
755 |
|
|
8 |
|
|
16 |
|
|
Corporate(d) |
|
(149 |
) |
|
5 |
|
— |
|
|
4 |
|
|
(140 |
) |
|
(6 |
) |
|
(3 |
) |
|
Operating profit - non-GAAP |
$ |
550 |
|
|
120 |
|
16 |
|
|
(71 |
) |
|
615 |
|
|
12 |
|
|
22 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other items not allocated to segments(e) |
|
(189 |
) |
|
31 |
|
16 |
|
|
(47 |
) |
|
(190 |
) |
|
— |
|
|
(16 |
) |
|
Operating profit - GAAP |
$ |
361 |
|
|
151 |
|
32 |
|
|
(119 |
) |
|
425 |
|
|
18 |
|
|
42 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP
interest expense |
|
(139 |
) |
|
|
|
|
|
|
|
(204 |
) |
|
47 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP
interest and other income (expense) |
|
4 |
|
|
|
|
|
|
|
|
14 |
|
|
fav |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP
provision for income taxes |
|
41 |
|
|
|
|
|
|
|
|
139 |
|
|
unfav |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP
noncontrolling interests |
|
11 |
|
|
|
|
|
|
|
|
11 |
|
|
(6 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP
income from continuing operations(f) |
|
174 |
|
|
|
|
|
|
|
|
86 |
|
|
(50 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP
EPS(f) |
$ |
3.63 |
|
|
|
|
|
|
|
|
1.83 |
|
|
(50 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP
weighted-average diluted shares |
|
47.8 |
|
|
|
|
|
|
|
|
46.9 |
|
|
(2 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-GAAP(g) |
|
|
Organic |
|
Acquisitions / |
|
|
|
|
|
|
% Change |
|
|
|
2022 |
|
|
Change |
|
Dispositions(a) |
|
|
Currency(b) |
|
2023 |
|
|
Total |
|
Organic |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Segment revenues - GAAP/non-GAAP |
$ |
4,536 |
|
|
394 |
|
106 |
|
|
(161 |
) |
|
4,875 |
|
|
7 |
|
|
9 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-GAAP
operating profit |
|
550 |
|
|
120 |
|
16 |
|
|
(71 |
) |
|
615 |
|
|
12 |
|
|
22 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-GAAP
interest expense |
|
(138 |
) |
|
|
|
|
|
|
|
|
(203 |
) |
|
48 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-GAAP
interest and other income (expense) |
|
16 |
|
|
|
|
|
|
|
|
|
62 |
|
|
fav |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-GAAP
provision for income taxes |
|
130 |
|
|
|
|
|
|
|
|
|
118 |
|
|
(9 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-GAAP
noncontrolling interests |
|
13 |
|
|
|
|
|
|
|
|
|
12 |
|
|
(7 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-GAAP
income from continuing operations(f) |
|
286 |
|
|
|
|
|
|
|
|
|
345 |
|
|
20 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-GAAP
EPS(f) |
$ |
5.99 |
|
|
|
|
|
|
|
|
|
7.35 |
|
|
23 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-GAAP
weighted-average diluted shares |
|
47.8 |
|
|
|
|
|
|
|
|
|
46.9 |
|
|
(2 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Amounts may not add due to rounding.
See page 7 for footnote explanations.
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,
earnings per share, and free cash flow (and drivers thereof),
expected impact from deployment of technology-enabled services,
including digital retail solutions and ATM managed services, and
strategic priorities and initiatives, including the Brink's
Business System and transformation initiatives.
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, 2022, 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: 2022 and 2023
(Unaudited)(In millions, except for percentages)
|
Revenues |
|
|
2022 |
|
|
|
2023 |
|
|
1Q |
|
2Q |
|
3Q |
|
4Q |
|
Full Year |
|
1Q |
|
2Q |
|
3Q |
|
4Q |
|
Full Year |
Revenues: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
North America |
$ |
368.8 |
|
|
401.6 |
|
|
400.6 |
|
|
413.1 |
|
|
1,584.1 |
|
|
$ |
401.9 |
|
|
397.4 |
|
|
398.1 |
|
|
403.7 |
|
|
1,601.1 |
|
Latin America |
|
291.3 |
|
|
306.3 |
|
|
301.1 |
|
|
311.9 |
|
|
1,210.6 |
|
|
|
315.5 |
|
|
333.9 |
|
|
339.6 |
|
|
343.3 |
|
|
1,332.3 |
|
Europe |
|
222.1 |
|
|
226.7 |
|
|
220.0 |
|
|
262.6 |
|
|
931.4 |
|
|
|
268.7 |
|
|
285.9 |
|
|
287.8 |
|
|
294.4 |
|
|
1,136.8 |
|
Rest of World |
|
191.8 |
|
|
199.3 |
|
|
215.0 |
|
|
203.3 |
|
|
809.4 |
|
|
|
199.3 |
|
|
199.0 |
|
|
201.9 |
|
|
204.2 |
|
|
804.4 |
|
Segment revenues - GAAP and Non-GAAP |
$ |
1,074.0 |
|
|
1,133.9 |
|
|
1,136.7 |
|
|
1,190.9 |
|
|
4,535.5 |
|
|
$ |
1,185.4 |
|
|
1,216.2 |
|
|
1,227.4 |
|
|
1,245.6 |
|
|
4,874.6 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating Profit |
|
|
2022 |
|
|
|
2023 |
|
|
1Q |
|
2Q |
|
3Q |
|
4Q |
|
Full Year |
|
1Q |
|
2Q |
|
3Q |
|
4Q |
|
Full Year |
Operating
profit: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
North America |
$ |
24.4 |
|
|
34.1 |
|
|
38.2 |
|
|
62.4 |
|
|
159.1 |
|
|
$ |
38.6 |
|
|
37.5 |
|
|
47.5 |
|
|
61.6 |
|
|
185.2 |
|
Latin America |
|
63.0 |
|
|
64.7 |
|
|
66.5 |
|
|
83.5 |
|
|
277.7 |
|
|
|
66.6 |
|
|
65.9 |
|
|
68.1 |
|
|
79.7 |
|
|
280.3 |
|
Europe |
|
14.8 |
|
|
22.4 |
|
|
25.9 |
|
|
35.3 |
|
|
98.4 |
|
|
|
22.0 |
|
|
29.3 |
|
|
35.8 |
|
|
37.9 |
|
|
125.0 |
|
Rest of World |
|
33.1 |
|
|
39.5 |
|
|
48.3 |
|
|
43.0 |
|
|
163.9 |
|
|
|
37.3 |
|
|
41.3 |
|
|
42.6 |
|
|
42.9 |
|
|
164.1 |
|
Corporate |
|
(23.2 |
) |
|
(36.7 |
) |
|
(52.1 |
) |
|
(36.8 |
) |
|
(148.8 |
) |
|
|
(37.1 |
) |
|
(42.2 |
) |
|
(27.7 |
) |
|
(32.6 |
) |
|
(139.6 |
) |
Non-GAAP |
|
112.1 |
|
|
124.0 |
|
|
126.8 |
|
|
187.4 |
|
|
550.3 |
|
|
|
127.4 |
|
|
131.8 |
|
|
166.3 |
|
|
189.5 |
|
|
615.0 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other items not allocated to segments(a) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reorganization and Restructuring |
|
(11.7 |
) |
|
(2.7 |
) |
|
(19.6 |
) |
|
(4.8 |
) |
|
(38.8 |
) |
|
|
(14.2 |
) |
|
— |
|
|
(0.4 |
) |
|
(3.0 |
) |
|
(17.6 |
) |
Acquisitions and dispositions |
|
(15.2 |
) |
|
(15.4 |
) |
|
(35.7 |
) |
|
(20.3 |
) |
|
(86.6 |
) |
|
|
(22.0 |
) |
|
(15.0 |
) |
|
(19.4 |
) |
|
(14.2 |
) |
|
(70.6 |
) |
Argentina highly inflationary impact |
|
(6.1 |
) |
|
(9.0 |
) |
|
(12.0 |
) |
|
(14.6 |
) |
|
(41.7 |
) |
|
|
(11.2 |
) |
|
(11.0 |
) |
|
(8.1 |
) |
|
(56.5 |
) |
|
(86.8 |
) |
Transformation initiatives |
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
|
— |
|
|
— |
|
|
— |
|
|
(5.5 |
) |
|
(5.5 |
) |
Non-routine auto loss matter |
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
|
— |
|
|
— |
|
|
— |
|
|
(8.0 |
) |
|
(8.0 |
) |
Change in allowance estimate |
|
(16.7 |
) |
|
0.4 |
|
|
0.3 |
|
|
0.4 |
|
|
(15.6 |
) |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
Ship loss matter |
|
— |
|
|
— |
|
|
— |
|
|
(4.9 |
) |
|
(4.9 |
) |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
Chile antitrust matter |
|
— |
|
|
(0.8 |
) |
|
(0.3 |
) |
|
(0.3 |
) |
|
(1.4 |
) |
|
|
(0.2 |
) |
|
(0.2 |
) |
|
— |
|
|
(0.1 |
) |
|
(0.5 |
) |
Reporting compliance |
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
|
— |
|
|
— |
|
|
(0.7 |
) |
|
(0.1 |
) |
|
(0.8 |
) |
GAAP |
$ |
62.4 |
|
|
96.5 |
|
|
59.5 |
|
|
142.9 |
|
|
361.3 |
|
|
$ |
79.8 |
|
|
105.6 |
|
|
137.7 |
|
|
102.1 |
|
|
425.2 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Margin |
|
|
2022 |
|
|
|
2023 |
|
|
1Q |
|
2Q |
|
3Q |
|
4Q |
|
Full Year |
|
1Q |
|
2Q |
|
3Q |
|
4Q |
|
Full Year |
Margin: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
North America |
|
6.6 |
% |
|
8.5 |
|
|
9.5 |
|
|
15.1 |
|
|
10.0 |
|
|
|
9.6 |
% |
|
9.4 |
|
|
11.9 |
|
|
15.3 |
|
|
11.6 |
|
Latin America |
|
21.6 |
|
|
21.1 |
|
|
22.1 |
|
|
26.8 |
|
|
22.9 |
|
|
|
21.1 |
|
|
19.7 |
|
|
20.1 |
|
|
23.2 |
|
|
21.0 |
|
Europe |
|
6.7 |
|
|
9.9 |
|
|
11.8 |
|
|
13.4 |
|
|
10.6 |
|
|
|
8.2 |
|
|
10.2 |
|
|
12.4 |
|
|
12.9 |
|
|
11.0 |
|
Rest of World |
|
17.3 |
|
|
19.8 |
|
|
22.5 |
|
|
21.2 |
|
|
20.2 |
|
|
|
18.7 |
|
|
20.8 |
|
|
21.1 |
|
|
21.0 |
|
|
20.4 |
|
Non-GAAP |
|
10.4 |
|
|
10.9 |
|
|
11.2 |
|
|
15.7 |
|
|
12.1 |
|
|
|
10.7 |
|
|
10.8 |
|
|
13.5 |
|
|
15.2 |
|
|
12.6 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other items not allocated to segments(a) |
|
(4.6 |
) |
|
(2.4 |
) |
|
(6.0 |
) |
|
(3.7 |
) |
|
(4.1 |
) |
|
|
(4.0 |
) |
|
(2.1 |
) |
|
(2.3 |
) |
|
(7.0 |
) |
|
(3.9 |
) |
GAAP |
|
5.8 |
% |
|
8.5 |
|
|
5.2 |
|
|
12.0 |
|
|
8.0 |
|
|
|
6.7 |
% |
|
8.7 |
|
|
11.2 |
|
|
8.2 |
|
|
8.7 |
|
(a) See explanation of items on page 11-12.
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 $33.2 million in
charges under this program, including $11.0 million in 2023. We
expect total expenses from this program to be between $38 million
and $42 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 $16.6 million in net costs
in 2022, primarily severance costs. We recognized $6.6 million in
net costs in 2023. The majority of the costs in both the 2023 and
2022 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:
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 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.
- 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.
2022 Acquisitions and Dispositions
- Amortization expense for acquisition-related intangible assets
was $52.0 million in 2022.
- We recognized $12.5 million in charges in Argentina in
2022 for expected payments to union workers of the Maco
businesses.
- Net charges of $7.8 million were incurred for post-acquisition
adjustments to indemnification assets related to previous business
acquisitions.
- We incurred $4.8 million in integration costs, primarily
related to PAI and G4S, in 2022.
- Transaction costs related to business acquisitions were
$5.6 million in 2022.
- Restructuring costs related to acquisitions were
$0.2 million in 2022.
- Compensation expense related to the retention of key PAI
employees was $3.5 million in 2022.
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 2023, we
recognized $86.8 million in pretax charges related to highly
inflationary accounting, including currency remeasurement losses of
$79.1 million. In 2022, we recognized $41.7 million in pretax
charges related to highly inflationary accounting, including
currency remeasurement losses of $37.6 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 have incurred $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.
Change in allowance estimate In the first
quarter of 2022, we refined our global methodology of estimating
the allowance for doubtful accounts. Our previous method to
estimate currently expected credit losses in receivables (the
allowance) was weighted significantly to a review of historical
loss rates and specific identification of higher risk customer
accounts. It also considered current and expected economic
conditions in determining an appropriate allowance. As many of our
regions begin to recover from the pandemic, we have re-assessed
those earlier assumptions and estimates. Our updated method now
also includes an estimated allowance for accounts receivable
significantly past due in order to adjust for at-risk receivables
not captured in our previous method. As part of the analysis under
the updated estimation methodology, we noted an increase in
accounts receivable significantly past due, particularly in the
U.S., and we recorded an additional allowance of $15.6 million in
2022. There was no impact in 2023. Due to the fact that management
has excluded these amounts when evaluating internal performance, we
have excluded this charge from segment and non-GAAP results.
Ship loss matter In 2015, Brink’s placed cargo
containing customer valuables on a ship which suffered damages and
losses. Brink’s cargo did not suffer any damage. The ship owner
declared a general average claim to recover losses to the ship and
cargo from customers with undamaged cargo, including Brink’s, based
on the pro rata value of ship cargo. In the fourth quarter of 2022,
we recognized a $4.9 million charge for our estimate of the
probable loss. Due to the unusual nature of the contingency and the
fact that management has excluded these amounts when evaluating
internal performance, 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 2022, we recognized an additional $1.4 million
adjustment to our estimated loss as a result of a change in
currency rates. In 2023, we recognized an additional $0.5 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 remediation of the material weakness. We did not incur
any such costs in 2022.
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 11 and 12 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,
income or earnings per share 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
|
|
2022 |
|
|
|
2023 |
|
|
Pre-taxincome |
|
Incometaxes |
|
Effectivetax rate |
|
Pre-taxincome |
|
Incometaxes |
|
Effectivetax rate |
Effective Income Tax
Rate |
|
|
|
|
|
|
|
|
|
|
|
GAAP |
$ |
226.2 |
|
41.4 |
|
|
18.3 |
% |
|
$ |
235.8 |
|
|
139.2 |
|
|
59.0 |
% |
Retirement plans(c) |
|
11.1 |
|
2.9 |
|
|
|
|
|
(9.0 |
) |
|
(2.0 |
) |
|
|
Reorganization and Restructuring(a) |
|
38.8 |
|
8.2 |
|
|
|
|
|
17.6 |
|
|
3.4 |
|
|
|
Acquisitions and dispositions(a) |
|
85.2 |
|
20.7 |
|
|
|
|
|
72.6 |
|
|
8.9 |
|
|
|
Argentina highly inflationary impact(a) |
|
45.6 |
|
(2.0 |
) |
|
|
|
|
142.0 |
|
|
(4.5 |
) |
|
|
Transformation initiatives(a) |
|
— |
|
— |
|
|
|
|
|
5.5 |
|
|
0.1 |
|
|
|
Non-routine auto loss matter(a) |
|
— |
|
— |
|
|
|
|
|
8.0 |
|
|
0.2 |
|
|
|
Change in allowance estimate(a) |
|
15.6 |
|
3.7 |
|
|
|
|
|
— |
|
|
— |
|
|
|
Valuation allowance on tax credits(f) |
|
— |
|
53.2 |
|
|
|
|
|
— |
|
|
(27.8 |
) |
|
|
Ship loss matter(a) |
|
4.9 |
|
1.3 |
|
|
|
|
|
— |
|
|
— |
|
|
|
Chile antitrust matter(a) |
|
1.4 |
|
0.5 |
|
|
|
|
|
0.5 |
|
|
0.1 |
|
|
|
Reporting compliance(a) |
|
— |
|
— |
|
|
|
|
|
0.8 |
|
|
— |
|
|
|
Non-GAAP |
$ |
428.8 |
|
129.9 |
|
|
30.3 |
% |
|
$ |
473.8 |
|
|
117.6 |
|
|
24.8 |
% |
Amounts may not add due to rounding. (a) See “Other Items Not
Allocated To Segments” on pages 10-12 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 was 24.8% for 2023 and was 30.3% for 2022.(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 $0.6 million non-GAAP
adjustment for a loss in the first quarter of 2022, a $0.9 million
non-GAAP adjustment for a loss in the second quarter of 2022, a
$0.5 million non-GAAP adjustment for a loss in the third quarter of
2022, a $2.0 million non-GAAP adjustment for a loss in the fourth
quarter of 2022, 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. (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. In 2022, we released a portion of our valuation
allowance on certain U.S. deferred tax assets primarily due to new
foreign tax credit regulations published by the U.S. Treasury in
January 2022.(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)
|
|
2022 |
|
|
|
2023 |
|
|
1Q |
|
2Q |
|
3Q |
|
4Q |
|
Full Year |
|
1Q |
|
2Q |
|
3Q |
|
4Q |
|
Full Year |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenues: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP |
$ |
1,074.0 |
|
|
1,133.9 |
|
|
1,136.7 |
|
|
1,190.9 |
|
|
4,535.5 |
|
|
$ |
1,185.4 |
|
|
1,216.2 |
|
|
1,227.4 |
|
|
1,245.6 |
|
|
4,874.6 |
|
Non-GAAP |
$ |
1,074.0 |
|
|
1,133.9 |
|
|
1,136.7 |
|
|
1,190.9 |
|
|
4,535.5 |
|
|
$ |
1,185.4 |
|
|
1,216.2 |
|
|
1,227.4 |
|
|
1,245.6 |
|
|
4,874.6 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating profit
(loss): |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP |
$ |
62.4 |
|
|
96.5 |
|
|
59.5 |
|
|
142.9 |
|
|
361.3 |
|
|
$ |
79.8 |
|
|
105.6 |
|
|
137.7 |
|
|
102.1 |
|
|
425.2 |
|
Reorganization and Restructuring(a) |
|
11.7 |
|
|
2.7 |
|
|
19.6 |
|
|
4.8 |
|
|
38.8 |
|
|
|
14.2 |
|
|
— |
|
|
0.4 |
|
|
3.0 |
|
|
17.6 |
|
Acquisitions and dispositions(a) |
|
15.2 |
|
|
15.4 |
|
|
35.7 |
|
|
20.3 |
|
|
86.6 |
|
|
|
22.0 |
|
|
15.0 |
|
|
19.4 |
|
|
14.2 |
|
|
70.6 |
|
Argentina highly inflationary impact(a) |
|
6.1 |
|
|
9.0 |
|
|
12.0 |
|
|
14.6 |
|
|
41.7 |
|
|
|
11.2 |
|
|
11.0 |
|
|
8.1 |
|
|
56.5 |
|
|
86.8 |
|
Transformation initiatives(a) |
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
|
— |
|
|
— |
|
|
— |
|
|
5.5 |
|
|
5.5 |
|
Non-routine auto loss matter(a) |
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
|
— |
|
|
— |
|
|
— |
|
|
8.0 |
|
|
8.0 |
|
Change in allowance estimate(a) |
|
16.7 |
|
|
(0.4 |
) |
|
(0.3 |
) |
|
(0.4 |
) |
|
15.6 |
|
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
Ship loss matter(a) |
|
— |
|
|
— |
|
|
— |
|
|
4.9 |
|
|
4.9 |
|
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
Chile antitrust matter(a) |
|
— |
|
|
0.8 |
|
|
0.3 |
|
|
0.3 |
|
|
1.4 |
|
|
|
0.2 |
|
|
0.2 |
|
|
— |
|
|
0.1 |
|
|
0.5 |
|
Reporting compliance(a) |
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
|
— |
|
|
— |
|
|
0.7 |
|
|
0.1 |
|
|
0.8 |
|
Non-GAAP |
$ |
112.1 |
|
|
124.0 |
|
|
126.8 |
|
|
187.4 |
|
|
550.3 |
|
|
$ |
127.4 |
|
|
131.8 |
|
|
166.3 |
|
|
189.5 |
|
|
615.0 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating
margin: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP margin |
|
5.8 |
% |
|
8.5 |
% |
|
5.2 |
% |
|
12.0 |
% |
|
8.0 |
% |
|
|
6.7 |
% |
|
8.7 |
% |
|
11.2 |
% |
|
8.2 |
% |
|
8.7 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-GAAP margin |
|
10.4 |
% |
|
10.9 |
% |
|
11.2 |
% |
|
15.7 |
% |
|
12.1 |
% |
|
|
10.7 |
% |
|
10.8 |
% |
|
13.5 |
% |
|
15.2 |
% |
|
12.6 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest
expense: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP |
$ |
(27.9 |
) |
|
(32.4 |
) |
|
(34.7 |
) |
|
(43.8 |
) |
|
(138.8 |
) |
|
$ |
(46.6 |
) |
|
(51.1 |
) |
|
(53.8 |
) |
|
(52.3 |
) |
|
(203.8 |
) |
Acquisitions and dispositions(a) |
|
0.4 |
|
|
0.3 |
|
|
0.3 |
|
|
0.2 |
|
|
1.2 |
|
|
|
0.2 |
|
|
0.3 |
|
|
0.2 |
|
|
0.1 |
|
|
0.8 |
|
Non-GAAP |
$ |
(27.5 |
) |
|
(32.1 |
) |
|
(34.4 |
) |
|
(43.6 |
) |
|
(137.6 |
) |
|
$ |
(46.4 |
) |
|
(50.8 |
) |
|
(53.6 |
) |
|
(52.2 |
) |
|
(203.0 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest and other
income (expense): |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP |
$ |
(1.3 |
) |
|
3.4 |
|
|
6.3 |
|
|
(4.7 |
) |
|
3.7 |
|
|
$ |
4.7 |
|
|
4.1 |
|
|
2.9 |
|
|
2.7 |
|
|
14.4 |
|
Retirement plans(c) |
|
3.1 |
|
|
1.8 |
|
|
1.6 |
|
|
4.6 |
|
|
11.1 |
|
|
|
(2.2 |
) |
|
(1.9 |
) |
|
(2.1 |
) |
|
(2.8 |
) |
|
(9.0 |
) |
Acquisitions and dispositions(a) |
|
(0.7 |
) |
|
(1.7 |
) |
|
(1.8 |
) |
|
1.6 |
|
|
(2.6 |
) |
|
|
0.5 |
|
|
0.6 |
|
|
(0.9 |
) |
|
1.0 |
|
|
1.2 |
|
Argentina highly inflationary impact(a) |
|
0.6 |
|
|
0.9 |
|
|
0.4 |
|
|
2.0 |
|
|
3.9 |
|
|
|
0.3 |
|
|
0.3 |
|
|
22.7 |
|
|
31.9 |
|
|
55.2 |
|
Non-GAAP |
$ |
1.7 |
|
|
4.4 |
|
|
6.5 |
|
|
3.5 |
|
|
16.1 |
|
|
$ |
3.3 |
|
|
3.1 |
|
|
22.6 |
|
|
32.8 |
|
|
61.8 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Taxes: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP |
$ |
(41.1 |
) |
|
29.3 |
|
|
8.5 |
|
|
44.7 |
|
|
41.4 |
|
|
$ |
20.3 |
|
|
23.4 |
|
|
37.3 |
|
|
58.2 |
|
|
139.2 |
|
Retirement plans(c) |
|
0.7 |
|
|
0.7 |
|
|
0.7 |
|
|
0.8 |
|
|
2.9 |
|
|
|
(0.6 |
) |
|
(0.1 |
) |
|
(0.6 |
) |
|
(0.7 |
) |
|
(2.0 |
) |
Reorganization and Restructuring(a) |
|
1.2 |
|
|
1.1 |
|
|
3.8 |
|
|
2.1 |
|
|
8.2 |
|
|
|
2.7 |
|
|
(0.1 |
) |
|
0.1 |
|
|
0.7 |
|
|
3.4 |
|
Acquisitions and dispositions(a) |
|
0.8 |
|
|
1.0 |
|
|
12.7 |
|
|
6.2 |
|
|
20.7 |
|
|
|
2.4 |
|
|
2.0 |
|
|
3.3 |
|
|
1.2 |
|
|
8.9 |
|
Argentina highly inflationary impact(a) |
|
(0.2 |
) |
|
(0.3 |
) |
|
— |
|
|
(1.5 |
) |
|
(2.0 |
) |
|
|
(0.5 |
) |
|
(0.2 |
) |
|
(0.9 |
) |
|
(2.9 |
) |
|
(4.5 |
) |
Transformation initiatives(a) |
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
|
— |
|
|
— |
|
|
— |
|
|
0.1 |
|
|
0.1 |
|
Non-routine auto loss matter(a) |
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
|
— |
|
|
— |
|
|
— |
|
|
0.2 |
|
|
0.2 |
|
Change in allowance estimate(a) |
|
4.0 |
|
|
(0.1 |
) |
|
(0.1 |
) |
|
(0.1 |
) |
|
3.7 |
|
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
Valuation allowance on tax credits(f) |
|
58.3 |
|
|
(3.3 |
) |
|
(2.2 |
) |
|
0.4 |
|
|
53.2 |
|
|
|
(2.6 |
) |
|
(4.1 |
) |
|
— |
|
|
(21.1 |
) |
|
(27.8 |
) |
Ship loss matter(a) |
|
— |
|
|
— |
|
|
— |
|
|
1.3 |
|
|
1.3 |
|
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
Chile antitrust matter(a) |
|
— |
|
|
0.2 |
|
|
0.1 |
|
|
0.2 |
|
|
0.5 |
|
|
|
— |
|
|
0.1 |
|
|
— |
|
|
— |
|
|
0.1 |
|
Reporting compliance(a) |
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
Income tax rate adjustment(b) |
|
2.4 |
|
|
0.6 |
|
|
6.5 |
|
|
(9.5 |
) |
|
— |
|
|
|
(0.8 |
) |
|
(0.1 |
) |
|
(5.6 |
) |
|
6.5 |
|
|
— |
|
Non-GAAP |
$ |
26.1 |
|
|
29.2 |
|
|
30.0 |
|
|
44.6 |
|
|
129.9 |
|
|
$ |
20.9 |
|
|
20.9 |
|
|
33.6 |
|
|
42.2 |
|
|
117.6 |
|
Amounts may not add due to rounding.
See page 13 for footnote explanations.
|
|
2022 |
|
|
|
2023 |
|
|
1Q |
|
2Q |
|
3Q |
|
4Q |
|
Full Year |
|
1Q |
|
2Q |
|
3Q |
|
4Q |
|
Full Year |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Noncontrolling
interests: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP |
$ |
2.9 |
|
|
3.0 |
|
|
3.4 |
|
|
2.0 |
|
|
11.3 |
|
|
$ |
3.3 |
|
|
3.0 |
|
|
3.8 |
|
|
0.5 |
|
|
10.6 |
|
Retirement plans(c) |
|
— |
|
|
0.1 |
|
|
— |
|
|
— |
|
|
0.1 |
|
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
Reorganization and Restructuring(a) |
|
— |
|
|
— |
|
|
— |
|
|
0.1 |
|
|
0.1 |
|
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
Acquisitions and dispositions(a) |
|
0.3 |
|
|
0.2 |
|
|
0.3 |
|
|
0.2 |
|
|
1.0 |
|
|
|
0.2 |
|
|
0.3 |
|
|
0.3 |
|
|
0.2 |
|
|
1.0 |
|
Income tax rate adjustment(b) |
|
(0.4 |
) |
|
(0.1 |
) |
|
(0.3 |
) |
|
0.8 |
|
|
— |
|
|
|
(0.3 |
) |
|
(0.3 |
) |
|
0.1 |
|
|
0.5 |
|
|
— |
|
Non-GAAP |
$ |
2.8 |
|
|
3.2 |
|
|
3.4 |
|
|
3.1 |
|
|
12.5 |
|
|
$ |
3.2 |
|
|
3.0 |
|
|
4.2 |
|
|
1.2 |
|
|
11.6 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income (loss) from
continuing operations attributable to Brink's: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP |
$ |
71.4 |
|
|
35.2 |
|
|
19.2 |
|
|
47.7 |
|
|
173.5 |
|
|
$ |
14.3 |
|
|
32.2 |
|
|
45.7 |
|
|
(6.2 |
) |
|
86.0 |
|
Retirement plans(c) |
|
2.4 |
|
|
1.0 |
|
|
0.9 |
|
|
3.8 |
|
|
8.1 |
|
|
|
(1.6 |
) |
|
(1.8 |
) |
|
(1.5 |
) |
|
(2.1 |
) |
|
(7.0 |
) |
Reorganization and Restructuring(a) |
|
10.5 |
|
|
1.6 |
|
|
15.8 |
|
|
2.6 |
|
|
30.5 |
|
|
|
11.5 |
|
|
0.1 |
|
|
0.3 |
|
|
2.3 |
|
|
14.2 |
|
Acquisitions and dispositions(a) |
|
13.8 |
|
|
12.8 |
|
|
21.2 |
|
|
15.7 |
|
|
63.5 |
|
|
|
20.1 |
|
|
13.6 |
|
|
15.1 |
|
|
13.9 |
|
|
62.7 |
|
Argentina highly inflationary impact(a) |
|
6.9 |
|
|
10.2 |
|
|
12.4 |
|
|
18.1 |
|
|
47.6 |
|
|
|
12.0 |
|
|
11.5 |
|
|
31.7 |
|
|
91.3 |
|
|
146.5 |
|
Transformation initiatives(a) |
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
|
— |
|
|
— |
|
|
— |
|
|
5.4 |
|
|
5.4 |
|
Non-routine auto loss matter(a) |
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
|
— |
|
|
— |
|
|
— |
|
|
7.8 |
|
|
7.8 |
|
Change in allowance estimate(a) |
|
12.7 |
|
|
(0.3 |
) |
|
(0.2 |
) |
|
(0.3 |
) |
|
11.9 |
|
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
Valuation allowance on tax credits(f) |
|
(58.3 |
) |
|
3.3 |
|
|
2.2 |
|
|
(0.4 |
) |
|
(53.2 |
) |
|
|
2.6 |
|
|
4.1 |
|
|
— |
|
|
21.1 |
|
|
27.8 |
|
Ship loss matter(a) |
|
— |
|
|
— |
|
|
— |
|
|
3.6 |
|
|
3.6 |
|
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
Chile antitrust matter(a) |
|
— |
|
|
0.6 |
|
|
0.2 |
|
|
0.1 |
|
|
0.9 |
|
|
|
0.2 |
|
|
0.1 |
|
|
— |
|
|
0.1 |
|
|
0.4 |
|
Reporting compliance(a) |
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
|
— |
|
|
— |
|
|
0.7 |
|
|
0.1 |
|
|
0.8 |
|
Income tax rate adjustment(b) |
|
(2.0 |
) |
|
(0.5 |
) |
|
(6.2 |
) |
|
8.7 |
|
|
— |
|
|
|
1.1 |
|
|
0.4 |
|
|
5.5 |
|
|
(7.0 |
) |
|
— |
|
Non-GAAP |
$ |
57.4 |
|
|
63.9 |
|
|
65.5 |
|
|
99.6 |
|
|
286.4 |
|
|
$ |
60.2 |
|
|
60.2 |
|
|
97.5 |
|
|
126.7 |
|
|
344.6 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted
EBITDA(g): |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income (loss) attributable to Brink's - GAAP |
$ |
71.3 |
|
|
35.1 |
|
|
19.2 |
|
|
45.0 |
|
|
170.6 |
|
|
$ |
15.0 |
|
|
32.1 |
|
|
45.6 |
|
|
(5.0 |
) |
|
87.7 |
|
Interest expense - GAAP |
|
27.9 |
|
|
32.4 |
|
|
34.7 |
|
|
43.8 |
|
|
138.8 |
|
|
|
46.6 |
|
|
51.1 |
|
|
53.8 |
|
|
52.3 |
|
|
203.8 |
|
Income tax provision - GAAP |
|
(41.1 |
) |
|
29.3 |
|
|
8.5 |
|
|
44.7 |
|
|
41.4 |
|
|
|
20.3 |
|
|
23.4 |
|
|
37.3 |
|
|
58.2 |
|
|
139.2 |
|
Depreciation and amortization - GAAP |
|
61.0 |
|
|
60.3 |
|
|
58.6 |
|
|
65.9 |
|
|
245.8 |
|
|
|
67.6 |
|
|
69.6 |
|
|
69.1 |
|
|
69.5 |
|
|
275.8 |
|
EBITDA |
$ |
119.1 |
|
|
157.1 |
|
|
121.0 |
|
|
199.4 |
|
|
596.6 |
|
|
$ |
149.5 |
|
|
176.2 |
|
|
205.8 |
|
|
175.0 |
|
|
706.5 |
|
Discontinued operations - GAAP |
|
0.1 |
|
|
0.1 |
|
|
— |
|
|
2.7 |
|
|
2.9 |
|
|
|
(0.7 |
) |
|
0.1 |
|
|
0.1 |
|
|
(1.2 |
) |
|
(1.7 |
) |
Retirement plans(c) |
|
3.1 |
|
|
1.7 |
|
|
1.6 |
|
|
4.6 |
|
|
11.0 |
|
|
|
(2.2 |
) |
|
(1.9 |
) |
|
(2.1 |
) |
|
(2.8 |
) |
|
(9.0 |
) |
Reorganization and Restructuring(a) |
|
11.7 |
|
|
2.7 |
|
|
19.5 |
|
|
3.8 |
|
|
37.7 |
|
|
|
13.1 |
|
|
(0.1 |
) |
|
0.4 |
|
|
3.0 |
|
|
16.4 |
|
Acquisitions and dispositions(a) |
|
1.5 |
|
|
1.0 |
|
|
21.4 |
|
|
7.0 |
|
|
30.9 |
|
|
|
8.3 |
|
|
0.7 |
|
|
3.6 |
|
|
0.4 |
|
|
13.0 |
|
Argentina highly inflationary impact(a) |
|
6.0 |
|
|
9.3 |
|
|
11.6 |
|
|
15.8 |
|
|
42.7 |
|
|
|
10.4 |
|
|
10.0 |
|
|
29.4 |
|
|
86.8 |
|
|
136.6 |
|
Transformation initiatives(a) |
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
|
— |
|
|
— |
|
|
— |
|
|
5.5 |
|
|
5.5 |
|
Non-routine auto loss matter(a) |
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
|
— |
|
|
— |
|
|
— |
|
|
8.0 |
|
|
8.0 |
|
Change in allowance estimate(a) |
|
16.7 |
|
|
(0.4 |
) |
|
(0.3 |
) |
|
(0.4 |
) |
|
15.6 |
|
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
Ship loss matter(a) |
|
— |
|
|
— |
|
|
— |
|
|
4.9 |
|
|
4.9 |
|
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
Chile antitrust matter(a) |
|
— |
|
|
0.8 |
|
|
0.3 |
|
|
0.3 |
|
|
1.4 |
|
|
|
0.2 |
|
|
0.2 |
|
|
— |
|
|
0.1 |
|
|
0.5 |
|
Reporting compliance(a) |
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
|
— |
|
|
— |
|
|
0.7 |
|
|
0.1 |
|
|
0.8 |
|
Income tax rate adjustment(b) |
|
0.4 |
|
|
0.1 |
|
|
0.3 |
|
|
(0.8 |
) |
|
— |
|
|
|
0.3 |
|
|
0.3 |
|
|
(0.1 |
) |
|
(0.5 |
) |
|
— |
|
Share-based compensation(d) |
|
7.1 |
|
|
14.9 |
|
|
14.3 |
|
|
12.3 |
|
|
48.6 |
|
|
|
11.8 |
|
|
8.3 |
|
|
6.4 |
|
|
6.5 |
|
|
33.0 |
|
Marketable securities (gain) loss(e) |
|
(0.3 |
) |
|
(0.8 |
) |
|
(0.7 |
) |
|
(2.2 |
) |
|
(4.0 |
) |
|
|
(0.2 |
) |
|
0.5 |
|
|
(13.7 |
) |
|
(29.0 |
) |
|
(42.4 |
) |
Adjusted EBITDA |
$ |
165.4 |
|
|
186.5 |
|
|
189.0 |
|
|
247.4 |
|
|
788.3 |
|
|
$ |
190.5 |
|
|
194.3 |
|
|
230.5 |
|
|
251.9 |
|
|
867.2 |
|
Amounts may not add due to rounding.
See page 13 for footnote explanations.
|
|
2022 |
|
|
|
2023 |
|
|
1Q |
|
2Q |
|
3Q |
|
4Q |
|
Full Year |
|
1Q |
|
2Q |
|
3Q |
|
4Q |
|
Full Year |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
EPS: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP |
$ |
1.48 |
|
|
0.73 |
|
|
0.41 |
|
|
1.01 |
|
|
3.63 |
|
|
$ |
0.30 |
|
|
0.68 |
|
|
0.97 |
|
|
(0.13 |
) |
|
1.83 |
|
Retirement plans(c) |
|
0.05 |
|
|
0.02 |
|
|
0.02 |
|
|
0.08 |
|
|
0.17 |
|
|
|
(0.03 |
) |
|
(0.03 |
) |
|
(0.03 |
) |
|
(0.05 |
) |
|
(0.15 |
) |
Reorganization and Restructuring costs(a) |
|
0.22 |
|
|
0.03 |
|
|
0.33 |
|
|
0.06 |
|
|
0.64 |
|
|
|
0.24 |
|
|
0.01 |
|
|
0.01 |
|
|
0.05 |
|
|
0.30 |
|
Acquisitions and dispositions(a) |
|
0.29 |
|
|
0.27 |
|
|
0.45 |
|
|
0.33 |
|
|
1.33 |
|
|
|
0.42 |
|
|
0.27 |
|
|
0.31 |
|
|
0.30 |
|
|
1.33 |
|
Argentina highly inflationary impact(a) |
|
0.14 |
|
|
0.21 |
|
|
0.26 |
|
|
0.38 |
|
|
1.00 |
|
|
|
0.26 |
|
|
0.24 |
|
|
0.67 |
|
|
1.99 |
|
|
3.13 |
|
Transformation initiatives(a) |
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
|
— |
|
|
— |
|
|
— |
|
|
0.12 |
|
|
0.12 |
|
Non-routine auto loss matter(a) |
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
|
— |
|
|
— |
|
|
— |
|
|
0.17 |
|
|
0.17 |
|
Change in allowance estimate(a) |
|
0.26 |
|
|
(0.01 |
) |
|
— |
|
|
(0.01 |
) |
|
0.25 |
|
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
Valuation allowance on tax credits(f) |
|
(1.21 |
) |
|
0.07 |
|
|
0.05 |
|
|
(0.01 |
) |
|
(1.11 |
) |
|
|
0.05 |
|
|
0.09 |
|
|
— |
|
|
0.46 |
|
|
0.59 |
|
Ship loss matter(a) |
|
— |
|
|
— |
|
|
— |
|
|
0.08 |
|
|
0.08 |
|
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
Chile antitrust matter(a) |
|
— |
|
|
0.01 |
|
|
— |
|
|
— |
|
|
0.02 |
|
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
0.01 |
|
Reporting compliance(a) |
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
|
— |
|
|
— |
|
|
0.02 |
|
|
— |
|
|
0.02 |
|
Income tax rate adjustment(b) |
|
(0.04 |
) |
|
(0.01 |
) |
|
(0.13 |
) |
|
0.18 |
|
|
— |
|
|
|
0.02 |
|
|
0.01 |
|
|
0.12 |
|
|
(0.15 |
) |
|
— |
|
Non-GAAP |
$ |
1.19 |
|
|
1.34 |
|
|
1.38 |
|
|
2.10 |
|
|
5.99 |
|
|
$ |
1.27 |
|
|
1.27 |
|
|
2.07 |
|
|
2.76 |
|
|
7.35 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Depreciation and
Amortization: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP |
$ |
61.0 |
|
|
60.3 |
|
|
58.6 |
|
|
65.9 |
|
|
245.8 |
|
|
$ |
67.6 |
|
|
69.6 |
|
|
69.1 |
|
|
69.5 |
|
|
275.8 |
|
Reorganization and Restructuring costs(a) |
|
— |
|
|
— |
|
|
(0.1 |
) |
|
(0.9 |
) |
|
(1.0 |
) |
|
|
(1.1 |
) |
|
(0.1 |
) |
|
— |
|
|
— |
|
|
(1.2 |
) |
Acquisitions and dispositions(a) |
|
(12.7 |
) |
|
(12.5 |
) |
|
(12.2 |
) |
|
(14.7 |
) |
|
(52.1 |
) |
|
|
(14.0 |
) |
|
(14.6 |
) |
|
(14.6 |
) |
|
(14.6 |
) |
|
(57.8 |
) |
Argentina highly inflationary impact(a) |
|
(0.7 |
) |
|
(0.6 |
) |
|
(0.8 |
) |
|
(0.8 |
) |
|
(2.9 |
) |
|
|
(1.1 |
) |
|
(1.3 |
) |
|
(1.4 |
) |
|
(1.6 |
) |
|
(5.4 |
) |
Non-GAAP |
$ |
47.6 |
|
|
47.2 |
|
|
45.5 |
|
|
49.5 |
|
|
189.8 |
|
|
$ |
51.4 |
|
|
53.6 |
|
|
53.1 |
|
|
53.3 |
|
|
211.4 |
|
Amounts may not add due to rounding. See page 13
for footnote explanations.
|
Full Year |
|
Full Year |
|
|
2022 |
|
|
|
2023 |
|
|
|
|
|
Free cash flow before
dividends: |
|
|
|
Cash flows from operating activities |
|
|
|
Operating activities - GAAP |
$ |
479.9 |
|
|
$ |
702.4 |
|
Increase in restricted cash held for customers |
|
(50.0 |
) |
|
|
(59.5 |
) |
Increase in certain customer obligations(a) |
|
(50.0 |
) |
|
|
(66.0 |
) |
Operating activities - non-GAAP |
$ |
379.9 |
|
|
$ |
576.9 |
|
Capital expenditures - GAAP |
|
(182.6 |
) |
|
|
(202.7 |
) |
Proceeds from sale of property, equipment and investments |
|
5.7 |
|
|
|
18.4 |
|
Free cash flow before dividends |
$ |
203.0 |
|
|
$ |
392.6 |
|
(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 consolidated statements
of cash flows.
Contact:Investor Relations804.289.9709
Brinks (NYSE:BCO)
Gráfica de Acción Histórica
De May 2024 a Jun 2024
Brinks (NYSE:BCO)
Gráfica de Acción Histórica
De Jun 2023 a Jun 2024