The Brink’s Company (NYSE:BCO), the global leader in total
cash management, route-based secure logistics and payment
solutions, today announced first-quarter results.
Mark Eubanks, president and CEO, said: “Our strong performance
in the first quarter demonstrates continued positive momentum as we
execute on our strategic priorities. Double-digit revenue growth
was highlighted by robust gains in digital retail solutions and ATM
managed services, as well as strong pricing discipline across the
business. The highest non-GAAP first quarter operating margin in
recent history reflects higher levels of productivity including
labor improvements in the U.S., benefits from the 2022 global
restructuring plan and improved revenue mix.
“We remain focused on generating revenue and profit growth by
providing a superior customer experience and driving continuous
improvement across our operations. We have increased our 2023
profit expectations to reflect further restructuring actions and
are confident in our outlook as we capitalize on the strong start
to the year and work to deliver results that create long-term
shareholder value.”
First-quarter results are summarized in the following table:
(In millions, except for per
share amounts) |
First-Quarter 2023 (vs. 2022) |
|
GAAP |
|
Change |
|
Non-GAAP |
|
Change |
|
Constant Currency Change(b) |
Revenue |
$ |
1,185 |
|
|
10 |
% |
|
$ |
1,185 |
|
|
10 |
% |
|
16 |
% |
Operating Profit |
$ |
80 |
|
|
28 |
% |
|
$ |
127 |
|
|
14 |
% |
|
24 |
% |
Operating Margin |
|
6.7 |
% |
|
90 bps |
|
|
10.7 |
% |
|
30 bps |
|
80 bps |
Net Income / Adjusted
EBITDA(a) |
$ |
15 |
|
|
(79 |
%) |
|
$ |
191 |
|
|
15 |
% |
|
23 |
% |
EPS |
$ |
0.30 |
|
|
(80 |
%) |
|
$ |
1.16 |
|
|
(3 |
%) |
|
12 |
% |
(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.
2023 Guidance (Unaudited) (In millions, except
for percentages and per share amounts)
The 2023 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 2023 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 2023. The 2023 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.
|
Prior2023 Non-GAAP Outlook |
|
Change |
|
Current2023 Non-GAAP Outlook |
Revenues |
$ |
4,800 – 4,950 |
|
|
— |
|
|
4,800 – 4,950 |
|
|
|
|
|
|
|
|
|
Operating profit |
$ |
615 – 665 |
|
|
10 |
|
|
625 – 675 |
|
|
|
|
|
|
|
|
|
EPS from continuing operations
attributable to Brink's |
$ |
6.30 – 7.00 |
|
|
0.15 |
|
|
6.45 – 7.15 |
|
|
|
|
|
|
|
|
|
Operating profit margin |
|
~13.1% |
|
|
~0.2% |
|
|
~13.3% |
|
|
|
|
|
|
|
|
|
Free cash flow before
dividends |
$ |
325 – 375 |
|
|
— |
|
|
325 – 375 |
|
|
|
|
|
|
|
|
|
Adjusted EBITDA |
$ |
855 – 905 |
|
|
10 |
|
|
865 – 915 |
|
|
|
|
|
|
|
|
|
Adjusted EBITDA margin |
|
~18.1% |
|
|
~0.2% |
|
|
~18.3% |
Conference CallBrink’s will host a conference
call on May 10 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/10178041/f92641b329 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 17, 2023 at 877-344-7529 (in
the U.S.) or 412-317-0088 (international). The conference number is
7181633. 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) (Unaudited)
Selected Items - Condensed Consolidated
Balance Sheets
|
December 31, 2022 |
|
March 31, 2023 |
Assets |
|
|
|
Cash and cash equivalents |
$ |
972.0 |
|
816.6 |
Restricted cash |
|
438.5 |
|
401.8 |
Accounts receivable, net |
|
862.2 |
|
876.9 |
Right-of-use assets, net |
|
314.5 |
|
322.3 |
Property and equipment,
net |
|
935.3 |
|
953.5 |
Goodwill and intangibles |
|
1,986.4 |
|
1,985.9 |
Deferred tax assets, net |
|
246.2 |
|
249.2 |
Other |
|
610.9 |
|
646.9 |
|
|
|
|
Total assets |
$ |
6,366.0 |
|
6,253.1 |
|
|
|
|
Liabilities and Equity |
|
|
|
|
|
|
|
Accounts payable |
|
296.5 |
|
248.7 |
Debt |
|
3,402.8 |
|
3,370.9 |
Retirement benefits |
|
305.5 |
|
301.4 |
Accrued liabilities |
|
1,019.4 |
|
985.7 |
Lease liabilities |
|
249.9 |
|
257.3 |
Other |
|
521.7 |
|
484.1 |
Total liabilities |
|
5,795.8 |
|
5,648.1 |
|
|
|
|
Equity |
|
570.2 |
|
605.0 |
|
|
|
|
Total liabilities and equity |
$ |
6,366.0 |
|
6,253.1 |
Selected Items - Condensed Consolidated
Statements of Cash Flows
|
Three MonthsEnded March 31, |
|
|
2022 |
|
|
2023 |
|
Net cash used by operating
activities |
$ |
(76.3 |
) |
|
(45.1 |
) |
Net cash used by investing
activities |
|
(52.0 |
) |
|
(57.6 |
) |
Net cash provided (used) by
financing activities |
|
98.8 |
|
|
(97.1 |
) |
|
|
|
|
Effect of exchange rate
changes on cash |
|
(11.0 |
) |
|
7.7 |
|
Cash, cash equivalents and
restricted cash: |
|
|
|
Decrease |
|
(40.5 |
) |
|
(192.1 |
) |
Balance at beginning of period |
|
1,086.7 |
|
|
1,410.5 |
|
Balance at end of period |
$ |
1,046.2 |
|
|
1,218.4 |
|
|
|
|
|
Supplemental Cash Flow Information |
|
|
|
|
|
|
|
Capital expenditures |
$ |
(37.0 |
) |
|
(45.2 |
) |
Acquisitions, net of cash acquired |
|
(11.4 |
) |
|
— |
|
Depreciation and amortization |
|
61.0 |
|
|
67.6 |
|
Cash paid for income taxes, net |
|
(31.3 |
) |
|
(23.3 |
) |
The Brink’s Company and subsidiaries(In
millions, except for per share amounts) (Unaudited)
First-Quarter
2023 vs.
2022
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP |
|
|
Organic |
|
Acquisitions / |
|
|
|
|
|
% Change |
|
|
1Q'22 |
|
Change |
|
Dispositions(a) |
|
Currency(b) |
|
1Q'23 |
|
Total |
|
Organic |
|
Revenues: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
North America |
$ |
369 |
|
|
34 |
|
|
1 |
|
|
(2 |
) |
|
402 |
|
|
9 |
|
|
9 |
|
|
Latin America |
|
291 |
|
|
56 |
|
|
1 |
|
|
(33 |
) |
|
316 |
|
|
8 |
|
|
19 |
|
|
Europe |
|
222 |
|
|
25 |
|
|
36 |
|
|
(14 |
) |
|
269 |
|
|
21 |
|
|
11 |
|
|
Rest of World |
|
192 |
|
|
21 |
|
|
(2 |
) |
|
(11 |
) |
|
199 |
|
|
4 |
|
|
11 |
|
|
Segment revenues(c) |
$ |
1,074 |
|
|
135 |
|
|
36 |
|
|
(60 |
) |
|
1,185 |
|
|
10 |
|
|
13 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenues - GAAP |
$ |
1,074 |
|
|
135 |
|
|
36 |
|
|
(60 |
) |
|
1,185 |
|
|
10 |
|
|
13 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating profit: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
North America |
$ |
24 |
|
|
14 |
|
|
— |
|
|
— |
|
|
39 |
|
|
58 |
|
|
57 |
|
|
Latin America |
|
63 |
|
|
16 |
|
|
— |
|
|
(12 |
) |
|
67 |
|
|
6 |
|
|
25 |
|
|
Europe |
|
15 |
|
|
6 |
|
|
2 |
|
|
(1 |
) |
|
22 |
|
|
49 |
|
|
39 |
|
|
Rest of World |
|
33 |
|
|
6 |
|
|
— |
|
|
(2 |
) |
|
37 |
|
|
13 |
|
|
18 |
|
|
Segment operating profit |
|
135 |
|
|
41 |
|
|
3 |
|
|
(15 |
) |
|
165 |
|
|
22 |
|
|
30 |
|
|
Corporate(d) |
|
(23 |
) |
|
(17 |
) |
|
— |
|
|
3 |
|
|
(37 |
) |
|
60 |
|
|
73 |
|
|
Operating profit - non-GAAP |
$ |
112 |
|
|
24 |
|
|
3 |
|
|
(12 |
) |
|
127 |
|
|
14 |
|
|
22 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other items not allocated to segments(e) |
|
(50 |
) |
|
14 |
|
|
(7 |
) |
|
(4 |
) |
|
(48 |
) |
|
(4 |
) |
|
(28 |
) |
|
Operating profit - GAAP |
$ |
62 |
|
|
38 |
|
|
(4 |
) |
|
(16 |
) |
|
80 |
|
|
28 |
|
|
61 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP
interest expense |
|
(28 |
) |
|
|
|
|
|
|
|
(47 |
) |
|
67 |
|
|
|
|
GAAP
interest and other income (expense) |
|
(1 |
) |
|
|
|
|
|
|
|
5 |
|
|
fav |
|
|
|
GAAP
provision (benefit) for income taxes |
|
(41 |
) |
|
|
|
|
|
|
|
20 |
|
|
unfav |
|
|
|
GAAP
noncontrolling interests |
|
3 |
|
|
|
|
|
|
|
|
3 |
|
|
14 |
|
|
|
|
GAAP
income from continuing operations(f) |
|
71 |
|
|
|
|
|
|
|
|
14 |
|
|
(80 |
) |
|
|
|
GAAP
EPS(f) |
$ |
1.48 |
|
|
|
|
|
|
|
|
0.30 |
|
|
(80 |
) |
|
|
|
GAAP
weighted-average diluted shares |
|
48.3 |
|
|
|
|
|
|
|
|
47.4 |
|
|
(2 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-GAAP(g) |
|
|
Organic |
|
Acquisitions / |
|
|
|
|
|
% Change |
|
|
1Q'22 |
|
Change |
|
Dispositions(a) |
|
Currency(b) |
|
1Q'23 |
|
Total |
|
Organic |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Segment
revenues - GAAP/non-GAAP |
$ |
1,074 |
|
|
135 |
|
36 |
|
(60 |
) |
|
1,185 |
|
|
10 |
|
|
13 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-GAAP
operating profit |
|
112 |
|
|
24 |
|
3 |
|
(12 |
) |
|
127 |
|
|
14 |
|
|
22 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-GAAP
interest expense |
|
(28 |
) |
|
|
|
|
|
|
|
(46 |
) |
|
69 |
|
|
|
|
Non-GAAP
interest and other income (expense) |
|
2 |
|
|
|
|
|
|
|
|
3 |
|
|
94 |
|
|
|
|
Non-GAAP
provision for income taxes |
|
26 |
|
|
|
|
|
|
|
|
26 |
|
|
— |
|
|
|
|
Non-GAAP
noncontrolling interests |
|
3 |
|
|
|
|
|
|
|
|
3 |
|
|
14 |
|
|
|
|
Non-GAAP
income from continuing operations(f) |
|
57 |
|
|
|
|
|
|
|
|
55 |
|
|
(4 |
) |
|
|
|
Non-GAAP
EPS(f) |
$ |
1.19 |
|
|
|
|
|
|
|
|
1.16 |
|
|
(3 |
) |
|
|
|
Non-GAAP
weighted-average diluted shares |
|
48.3 |
|
|
|
|
|
|
|
|
47.4 |
|
|
(2 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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 6-8 for more
information.(f) Attributable to
Brink's.(g) Non-GAAP results are reconciled to
applicable GAAP results on pages 9-12.
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: 2023 outlook, including revenue, operating profit,
adjusted EBITDA, earnings per share, and free cash flow (and
drivers thereof), the impact of the global restructuring plan,
expected impact from deployment of tech-enabled solutions,
including digital retail solutions and ATM managed services,
strategic priorities and initiatives, expected economic recovery,
and the impact of macroeconomic factors.
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),
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
(including the ongoing Covid-19 pandemic and related impact to and
restrictions on the actions of businesses and consumers, including
suppliers and customers), 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 |
Revenues: |
|
|
|
|
|
|
|
|
|
|
|
North America |
$ |
368.8 |
|
|
401.6 |
|
|
400.6 |
|
|
413.1 |
|
|
1,584.1 |
|
|
$ |
401.9 |
|
Latin America |
|
291.3 |
|
|
306.3 |
|
|
301.1 |
|
|
311.9 |
|
|
1,210.6 |
|
|
|
315.5 |
|
Europe |
|
222.1 |
|
|
226.7 |
|
|
220.0 |
|
|
262.6 |
|
|
931.4 |
|
|
|
268.7 |
|
Rest of World |
|
191.8 |
|
|
199.3 |
|
|
215.0 |
|
|
203.3 |
|
|
809.4 |
|
|
|
199.3 |
|
Segment revenues - GAAP and Non-GAAP |
$ |
1,074.0 |
|
|
1,133.9 |
|
|
1,136.7 |
|
|
1,190.9 |
|
|
4,535.5 |
|
|
$ |
1,185.4 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating Profit |
|
|
2022 |
|
|
|
2023 |
|
|
1Q |
|
2Q |
|
3Q |
|
4Q |
|
Full Year |
|
1Q |
Operating
profit: |
|
|
|
|
|
|
|
|
|
|
|
North America |
$ |
24.4 |
|
|
34.1 |
|
|
38.2 |
|
|
62.4 |
|
|
159.1 |
|
|
$ |
38.6 |
|
Latin America |
|
63.0 |
|
|
64.7 |
|
|
66.5 |
|
|
83.5 |
|
|
277.7 |
|
|
|
66.6 |
|
Europe |
|
14.8 |
|
|
22.4 |
|
|
25.9 |
|
|
35.3 |
|
|
98.4 |
|
|
|
22.0 |
|
Rest of World |
|
33.1 |
|
|
39.5 |
|
|
48.3 |
|
|
43.0 |
|
|
163.9 |
|
|
|
37.3 |
|
Corporate |
|
(23.2 |
) |
|
(36.7 |
) |
|
(52.1 |
) |
|
(36.8 |
) |
|
(148.8 |
) |
|
|
(37.1 |
) |
Non-GAAP |
|
112.1 |
|
|
124.0 |
|
|
126.8 |
|
|
187.4 |
|
|
550.3 |
|
|
|
127.4 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Other items not allocated to segments(a) |
|
|
|
|
|
|
|
|
|
|
|
Reorganization and Restructuring |
|
(11.7 |
) |
|
(2.7 |
) |
|
(19.6 |
) |
|
(4.8 |
) |
|
(38.8 |
) |
|
|
(14.2 |
) |
Acquisitions and dispositions |
|
(15.2 |
) |
|
(15.4 |
) |
|
(35.7 |
) |
|
(20.3 |
) |
|
(86.6 |
) |
|
|
(22.0 |
) |
Argentina highly inflationary impact |
|
(6.1 |
) |
|
(9.0 |
) |
|
(12.0 |
) |
|
(14.6 |
) |
|
(41.7 |
) |
|
|
(11.2 |
) |
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 |
) |
GAAP |
$ |
62.4 |
|
|
96.5 |
|
|
59.5 |
|
|
142.9 |
|
|
361.3 |
|
|
$ |
79.8 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Margin |
|
|
2022 |
|
|
|
2023 |
|
|
1Q |
|
2Q |
|
3Q |
|
4Q |
|
Full Year |
|
1Q |
Margin: |
|
|
|
|
|
|
|
|
|
|
|
North America |
|
6.6 |
% |
|
8.5 |
|
|
9.5 |
|
|
15.1 |
|
|
10.0 |
|
|
|
9.6 |
% |
Latin America |
|
21.6 |
|
|
21.1 |
|
|
22.1 |
|
|
26.8 |
|
|
22.9 |
|
|
|
21.1 |
|
Europe |
|
6.7 |
|
|
9.9 |
|
|
11.8 |
|
|
13.4 |
|
|
10.6 |
|
|
|
8.2 |
|
Rest of World |
|
17.3 |
|
|
19.8 |
|
|
22.5 |
|
|
21.2 |
|
|
20.2 |
|
|
|
18.7 |
|
Non-GAAP |
|
10.4 |
|
|
10.9 |
|
|
11.2 |
|
|
15.7 |
|
|
12.1 |
|
|
|
10.7 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Other items not allocated to segments(a) |
|
(4.6 |
) |
|
(2.4 |
) |
|
(6.0 |
) |
|
(3.7 |
) |
|
(4.1 |
) |
|
|
(4.0 |
) |
GAAP |
|
5.8 |
% |
|
8.5 |
|
|
5.2 |
|
|
12.0 |
|
|
8.0 |
|
|
|
6.7 |
% |
(a) See explanation of items on page 7-8.
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 $32.6 million in
charges under this program, including $10.4 million in the first
three months of 2023. We expect total expenses from this program to
be between $42 million and $48 million. When completed, the current
restructuring actions are expected to reduce our workforce by 3,300
to 3,500 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 net costs in
2022, primarily severance costs. We recognized $3.8 million net
costs in the first three months of 2023, primarily severance costs.
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 $14.0 million in the first three months of 2023.
- We recognized $3.3 million in charges in Argentina in the
first three months of 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 $0.5 million for post-acquisition
adjustments to indemnification assets related to previous business
acquisitions.
- We incurred $0.4 million in integration costs, primarily
related to PAI, in the first three months of 2023.
- Transaction costs related to business acquisitions were
$0.5 million in the first three months of 2023.
- We recognized a $2.0 million loss on the disposition of
Russia-based operations in the first three months of 2023.
- Compensation expense related to the retention of key PAI
employees was $0.6 million in the first three months of
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
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 $7.8 million 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 the first three months
of 2023, we recognized $11.2 million in pretax charges related
to highly inflationary accounting, including currency remeasurement
losses of $9.8 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.
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, particularly the effects of the coronavirus (COVID-19)
pandemic, 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 the first quarter of 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 the first three months of 2023, we recognized an
additional $0.2 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.
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 page 7 and 8 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 2023 Non-GAAP outlook amounts for operating profit, 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. We are also unable to
forecast changes in cash held for customer obligations or proceeds
from the sale of property, equipment and investments in 2023. 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
|
YTD '22 |
|
YTD '23 |
|
Pre-tax income |
|
Income taxes |
|
Effective tax rate |
|
Pre-tax income |
|
Income taxes |
|
Effective tax rate |
Effective Income Tax
Rate |
|
|
|
|
|
|
|
|
|
|
|
GAAP |
$ |
33.2 |
|
(41.1 |
) |
|
(123.8) % |
|
$ |
37.9 |
|
|
20.3 |
|
|
53.6 |
% |
Retirement plans(c) |
|
3.1 |
|
0.7 |
|
|
|
|
|
(2.2 |
) |
|
(0.6 |
) |
|
|
Reorganization and Restructuring(a) |
|
11.7 |
|
1.2 |
|
|
|
|
|
14.2 |
|
|
2.7 |
|
|
|
Acquisitions and dispositions(a) |
|
14.9 |
|
0.8 |
|
|
|
|
|
22.7 |
|
|
2.4 |
|
|
|
Argentina highly inflationary impact(a) |
|
6.7 |
|
(0.2 |
) |
|
|
|
|
11.5 |
|
|
(0.5 |
) |
|
|
Change in allowance estimate(a) |
|
16.7 |
|
4.0 |
|
|
|
|
|
— |
|
|
— |
|
|
|
Valuation allowance on tax credits(f) |
|
— |
|
58.3 |
|
|
|
|
|
— |
|
|
(2.6 |
) |
|
|
Chile antitrust matter(a) |
|
— |
|
— |
|
|
|
|
|
0.2 |
|
|
— |
|
|
|
Income tax rate adjustment(b) |
|
— |
|
2.4 |
|
|
|
|
|
— |
|
|
4.4 |
|
|
|
Non-GAAP |
$ |
86.3 |
|
26.1 |
|
|
30.3 |
% |
|
$ |
84.3 |
|
|
26.1 |
|
|
31.0 |
% |
Amounts may not add due to rounding. (a) See
“Other Items Not Allocated To Segments” on pages 6-8 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 31.0% 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, and a $0.3 million non-GAAP adjustment for a loss
in the first quarter of 2023. There is no difference between GAAP
and non-GAAP marketable securities gain and loss amounts for the
other periods presented.(f) In 2022, we released a
portion of our valuation allowance on certain U.S. deferred tax
assets primarily related to foreign tax credit carryforward
attributes with such amount being further adjusted in the first
quarter of 2023. The valuation allowance release was 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 |
|
|
|
|
|
|
|
|
|
|
|
|
Revenues: |
|
|
|
|
|
|
|
|
|
|
|
GAAP |
$ |
1,074.0 |
|
|
1,133.9 |
|
|
1,136.7 |
|
|
1,190.9 |
|
|
4,535.5 |
|
|
$ |
1,185.4 |
|
Non-GAAP |
$ |
1,074.0 |
|
|
1,133.9 |
|
|
1,136.7 |
|
|
1,190.9 |
|
|
4,535.5 |
|
|
$ |
1,185.4 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating profit
(loss): |
|
|
|
|
|
|
|
|
|
|
|
GAAP |
$ |
62.4 |
|
|
96.5 |
|
|
59.5 |
|
|
142.9 |
|
|
361.3 |
|
|
$ |
79.8 |
|
Reorganization and Restructuring(a) |
|
11.7 |
|
|
2.7 |
|
|
19.6 |
|
|
4.8 |
|
|
38.8 |
|
|
|
14.2 |
|
Acquisitions and dispositions(a) |
|
15.2 |
|
|
15.4 |
|
|
35.7 |
|
|
20.3 |
|
|
86.6 |
|
|
|
22.0 |
|
Argentina highly inflationary impact(a) |
|
6.1 |
|
|
9.0 |
|
|
12.0 |
|
|
14.6 |
|
|
41.7 |
|
|
|
11.2 |
|
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 |
|
Non-GAAP |
$ |
112.1 |
|
|
124.0 |
|
|
126.8 |
|
|
187.4 |
|
|
550.3 |
|
|
$ |
127.4 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating
margin: |
|
|
|
|
|
|
|
|
|
|
|
GAAP margin |
|
5.8 |
% |
|
8.5 |
% |
|
5.2 |
% |
|
12.0 |
% |
|
8.0 |
% |
|
|
6.7 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
Non-GAAP margin |
|
10.4 |
% |
|
10.9 |
% |
|
11.2 |
% |
|
15.7 |
% |
|
12.1 |
% |
|
|
10.7 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
Interest
expense: |
|
|
|
|
|
|
|
|
|
|
|
GAAP |
$ |
(27.9 |
) |
|
(32.4 |
) |
|
(34.7 |
) |
|
(43.8 |
) |
|
(138.8 |
) |
|
$ |
(46.6 |
) |
Acquisitions and dispositions(a) |
|
0.4 |
|
|
0.3 |
|
|
0.3 |
|
|
0.2 |
|
|
1.2 |
|
|
|
0.2 |
|
Non-GAAP |
$ |
(27.5 |
) |
|
(32.1 |
) |
|
(34.4 |
) |
|
(43.6 |
) |
|
(137.6 |
) |
|
$ |
(46.4 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
Interest and other
income (expense): |
|
|
|
|
|
|
|
|
|
|
|
GAAP |
$ |
(1.3 |
) |
|
3.4 |
|
|
6.3 |
|
|
(4.7 |
) |
|
3.7 |
|
|
$ |
4.7 |
|
Retirement plans(c) |
|
3.1 |
|
|
1.8 |
|
|
1.6 |
|
|
4.6 |
|
|
11.1 |
|
|
|
(2.2 |
) |
Acquisitions and dispositions(a) |
|
(0.7 |
) |
|
(1.7 |
) |
|
(1.8 |
) |
|
1.6 |
|
|
(2.6 |
) |
|
|
0.5 |
|
Argentina highly inflationary impact(a) |
|
0.6 |
|
|
0.9 |
|
|
0.4 |
|
|
2.0 |
|
|
3.9 |
|
|
|
0.3 |
|
Non-GAAP |
$ |
1.7 |
|
|
4.4 |
|
|
6.5 |
|
|
3.5 |
|
|
16.1 |
|
|
$ |
3.3 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Taxes: |
|
|
|
|
|
|
|
|
|
|
|
GAAP |
$ |
(41.1 |
) |
|
29.3 |
|
|
8.5 |
|
|
44.7 |
|
|
41.4 |
|
|
$ |
20.3 |
|
Retirement plans(c) |
|
0.7 |
|
|
0.7 |
|
|
0.7 |
|
|
0.8 |
|
|
2.9 |
|
|
|
(0.6 |
) |
Reorganization and Restructuring(a) |
|
1.2 |
|
|
1.1 |
|
|
3.8 |
|
|
2.1 |
|
|
8.2 |
|
|
|
2.7 |
|
Acquisitions and dispositions(a) |
|
0.8 |
|
|
1.0 |
|
|
12.7 |
|
|
6.2 |
|
|
20.7 |
|
|
|
2.4 |
|
Argentina highly inflationary impact(a) |
|
(0.2 |
) |
|
(0.3 |
) |
|
— |
|
|
(1.5 |
) |
|
(2.0 |
) |
|
|
(0.5 |
) |
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 |
) |
Ship loss matter(a) |
|
— |
|
|
— |
|
|
— |
|
|
1.3 |
|
|
1.3 |
|
|
|
— |
|
Chile antitrust matter(a) |
|
— |
|
|
0.2 |
|
|
0.1 |
|
|
0.2 |
|
|
0.5 |
|
|
|
— |
|
Income tax rate adjustment(b) |
|
2.4 |
|
|
0.6 |
|
|
6.5 |
|
|
(9.5 |
) |
|
— |
|
|
|
4.4 |
|
Non-GAAP |
$ |
26.1 |
|
|
29.2 |
|
|
30.0 |
|
|
44.6 |
|
|
129.9 |
|
|
$ |
26.1 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Noncontrolling
interests: |
|
|
|
|
|
|
|
|
|
|
|
GAAP |
$ |
2.9 |
|
|
3.0 |
|
|
3.4 |
|
|
2.0 |
|
|
11.3 |
|
|
$ |
3.3 |
|
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 |
|
Income tax rate adjustment(b) |
|
(0.4 |
) |
|
(0.1 |
) |
|
(0.3 |
) |
|
0.8 |
|
|
— |
|
|
|
(0.3 |
) |
Non-GAAP |
$ |
2.8 |
|
|
3.2 |
|
|
3.4 |
|
|
3.1 |
|
|
12.5 |
|
|
$ |
3.2 |
|
Amounts may not add due to rounding. See page 9 for
footnote explanations.
|
|
2022 |
|
|
|
2023 |
|
|
1Q |
|
2Q |
|
3Q |
|
4Q |
|
Full Year |
|
1Q |
|
|
|
|
|
|
|
|
|
|
|
|
Income (loss) from
continuing operations attributable to Brink's: |
|
|
|
|
|
|
|
|
|
|
|
GAAP |
$ |
71.4 |
|
|
35.2 |
|
|
19.2 |
|
|
47.7 |
|
|
173.5 |
|
|
$ |
14.3 |
|
Retirement plans(c) |
|
2.4 |
|
|
1.0 |
|
|
0.9 |
|
|
3.8 |
|
|
8.1 |
|
|
|
(1.6 |
) |
Reorganization and Restructuring(a) |
|
10.5 |
|
|
1.6 |
|
|
15.8 |
|
|
2.6 |
|
|
30.5 |
|
|
|
11.5 |
|
Acquisitions and dispositions(a) |
|
13.8 |
|
|
12.8 |
|
|
21.2 |
|
|
15.7 |
|
|
63.5 |
|
|
|
20.1 |
|
Argentina highly inflationary impact(a) |
|
6.9 |
|
|
10.2 |
|
|
12.4 |
|
|
18.1 |
|
|
47.6 |
|
|
|
12.0 |
|
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 |
|
Ship loss matter(a) |
|
— |
|
|
— |
|
|
— |
|
|
3.6 |
|
|
3.6 |
|
|
|
— |
|
Chile antitrust matter(a) |
|
— |
|
|
0.6 |
|
|
0.2 |
|
|
0.1 |
|
|
0.9 |
|
|
|
0.2 |
|
Income tax rate adjustment(b) |
|
(2.0 |
) |
|
(0.5 |
) |
|
(6.2 |
) |
|
8.7 |
|
|
— |
|
|
|
(4.1 |
) |
Non-GAAP |
$ |
57.4 |
|
|
63.9 |
|
|
65.5 |
|
|
99.6 |
|
|
286.4 |
|
|
$ |
55.0 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted
EBITDA(g): |
|
|
|
|
|
|
|
|
|
|
|
Net income (loss) attributable to Brink's - GAAP |
$ |
71.3 |
|
|
35.1 |
|
|
19.2 |
|
|
45.0 |
|
|
170.6 |
|
|
$ |
15.0 |
|
Interest expense - GAAP |
|
27.9 |
|
|
32.4 |
|
|
34.7 |
|
|
43.8 |
|
|
138.8 |
|
|
|
46.6 |
|
Income tax provision - GAAP |
|
(41.1 |
) |
|
29.3 |
|
|
8.5 |
|
|
44.7 |
|
|
41.4 |
|
|
|
20.3 |
|
Depreciation and amortization - GAAP |
|
61.0 |
|
|
60.3 |
|
|
58.6 |
|
|
65.9 |
|
|
245.8 |
|
|
|
67.6 |
|
EBITDA |
$ |
119.1 |
|
|
157.1 |
|
|
121.0 |
|
|
199.4 |
|
|
596.6 |
|
|
$ |
149.5 |
|
Discontinued operations - GAAP |
|
0.1 |
|
|
0.1 |
|
|
— |
|
|
2.7 |
|
|
2.9 |
|
|
|
(0.7 |
) |
Retirement plans(c) |
|
3.1 |
|
|
1.7 |
|
|
1.6 |
|
|
4.6 |
|
|
11.0 |
|
|
|
(2.2 |
) |
Reorganization and Restructuring(a) |
|
11.7 |
|
|
2.7 |
|
|
19.5 |
|
|
3.8 |
|
|
37.7 |
|
|
|
13.1 |
|
Acquisitions and dispositions(a) |
|
1.5 |
|
|
1.0 |
|
|
21.4 |
|
|
7.0 |
|
|
30.9 |
|
|
|
8.3 |
|
Argentina highly inflationary impact(a) |
|
6.0 |
|
|
9.3 |
|
|
11.6 |
|
|
15.8 |
|
|
42.7 |
|
|
|
10.4 |
|
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 |
|
Income tax rate adjustment(b) |
|
0.4 |
|
|
0.1 |
|
|
0.3 |
|
|
(0.8 |
) |
|
— |
|
|
|
0.3 |
|
Share-based compensation(d) |
|
7.1 |
|
|
14.9 |
|
|
14.3 |
|
|
12.3 |
|
|
48.6 |
|
|
|
11.8 |
|
Marketable securities (gain) loss(e) |
|
(0.3 |
) |
|
(0.8 |
) |
|
(0.7 |
) |
|
(2.2 |
) |
|
(4.0 |
) |
|
|
(0.2 |
) |
Adjusted EBITDA |
$ |
165.4 |
|
|
186.5 |
|
|
189.0 |
|
|
247.4 |
|
|
788.3 |
|
|
$ |
190.5 |
|
|
|
|
|
|
|
|
|
|
|
|
|
EPS: |
|
|
|
|
|
|
|
|
|
|
|
GAAP |
$ |
1.48 |
|
|
0.73 |
|
|
0.41 |
|
|
1.01 |
|
|
3.63 |
|
|
$ |
0.30 |
|
Retirement plans(c) |
|
0.05 |
|
|
0.02 |
|
|
0.02 |
|
|
0.08 |
|
|
0.17 |
|
|
|
(0.03 |
) |
Reorganization and Restructuring costs(a) |
|
0.22 |
|
|
0.03 |
|
|
0.33 |
|
|
0.06 |
|
|
0.64 |
|
|
|
0.24 |
|
Acquisitions and dispositions(a) |
|
0.29 |
|
|
0.27 |
|
|
0.45 |
|
|
0.33 |
|
|
1.33 |
|
|
|
0.42 |
|
Argentina highly inflationary impact(a) |
|
0.14 |
|
|
0.21 |
|
|
0.26 |
|
|
0.38 |
|
|
1.00 |
|
|
|
0.26 |
|
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 |
|
Ship loss matter(a) |
|
— |
|
|
— |
|
|
— |
|
|
0.08 |
|
|
0.08 |
|
|
|
— |
|
Chile antitrust matter(a) |
|
— |
|
|
0.01 |
|
|
— |
|
|
— |
|
|
0.02 |
|
|
|
— |
|
Income tax rate adjustment(b) |
|
(0.04 |
) |
|
(0.01 |
) |
|
(0.13 |
) |
|
0.18 |
|
|
— |
|
|
|
(0.09 |
) |
Non-GAAP |
$ |
1.19 |
|
|
1.34 |
|
|
1.38 |
|
|
2.10 |
|
|
5.99 |
|
|
$ |
1.16 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Depreciation and
Amortization: |
|
|
|
|
|
|
|
|
|
|
|
GAAP |
$ |
61.0 |
|
|
60.3 |
|
|
58.6 |
|
|
65.9 |
|
|
245.8 |
|
|
$ |
67.6 |
|
Reorganization and Restructuring costs(a) |
|
— |
|
|
— |
|
|
(0.1 |
) |
|
(0.9 |
) |
|
(1.0 |
) |
|
|
(1.1 |
) |
Acquisitions and dispositions(a) |
|
(12.7 |
) |
|
(12.5 |
) |
|
(12.2 |
) |
|
(14.7 |
) |
|
(52.1 |
) |
|
|
(14.0 |
) |
Argentina highly inflationary impact(a) |
|
(0.7 |
) |
|
(0.6 |
) |
|
(0.8 |
) |
|
(0.8 |
) |
|
(2.9 |
) |
|
|
(1.1 |
) |
Non-GAAP |
$ |
47.6 |
|
|
47.2 |
|
|
45.5 |
|
|
49.5 |
|
|
189.8 |
|
|
$ |
51.4 |
|
Amounts may not add due to rounding. See page 9 for
footnote explanations.
|
Full Year |
|
Three MonthsEnded March 31, |
|
|
2022 |
|
|
|
2022 |
|
|
|
2023 |
|
|
|
|
|
|
|
Free cash flow before
dividends: |
|
|
|
|
|
Cash flows from operating activities |
|
|
|
|
|
Operating activities - GAAP |
$ |
479.9 |
|
|
$ |
(76.3 |
) |
|
$ |
(45.1 |
) |
(Increase) decrease in restricted cash held for customers |
|
(50.0 |
) |
|
|
52.5 |
|
|
|
43.7 |
|
(Increase) decrease in certain customer obligations(a) |
|
(50.0 |
) |
|
|
0.1 |
|
|
|
9.6 |
|
Operating activities - non-GAAP |
$ |
379.9 |
|
|
$ |
(23.7 |
) |
|
$ |
8.2 |
|
Capital expenditures - GAAP |
|
(182.6 |
) |
|
|
(37.0 |
) |
|
|
(45.2 |
) |
Proceeds from sale of property, equipment and investments |
|
5.7 |
|
|
|
1.2 |
|
|
|
0.3 |
|
Free cash flow before dividends |
$ |
203.0 |
|
|
$ |
(59.5 |
) |
|
$ |
(36.7 |
) |
(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 |
BRINK’S CORPORATEThe Brink’s Company1801 Bayberry
Court Richmond, VA 23226-8100 USA |
Brinks (NYSE:BCO)
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