RICHMOND, Va., Jan. 30, 2014 /PRNewswire/ -- The Brink's
Company (NYSE: BCO), a global leader in security-related services,
today reported fourth-quarter earnings.
Fourth-Quarter Highlights
GAAP:
- Revenue up 6% (11% organic growth), EPS $.53 vs. $.70
- Segment profit up 17% (30% organic growth), margin 8.1% vs.
7.3%
- International profit up 30% (44% organic growth), margin
10.3% vs. 8.5%
- North America margin of
0.1% vs. 3.3%
Non-GAAP:
- Revenue up 6% (11% organic growth), EPS $.79 vs. $.60
- Segment profit up 24% (37% organic growth), margin 8.8% vs.
7.5%
- International profit up 38% (52% organic growth), margin
10.8% vs. 8.5%
- North America margin 1.4%
vs. 4.2%
Other:
- Full-year GAAP EPS $1.47 vs.
$2.29; Non-GAAP EPS $2.37 vs. $2.32
- Full-year GAAP segment margin down from 7.1% to 6.4%;
Non-GAAP flat at 7.2%; organic revenue growth 8%
- Full-year capital spending down $13
million to $183 million
- Underfunding of legacy liabilities improves by $265 million
Tom Schievelbein, chairman,
president and chief executive officer, said: "The improvement
in fourth-quarter earnings reflects strong performance from
international operations, driven primarily by Venezuela and Brazil. In 2014, we expect
a segment margin rate of about 7% on organic revenue growth of 5%
to 8%, as we invest in adjacencies and our high-value service
offerings and control costs in our core business."
1
Summary
Reconciliation of Fourth-Quarter GAAP to Non-GAAP
EPS*
|
|
|
|
Fourth
Quarter
|
|
Full Year
|
|
|
|
|
|
2013
|
|
|
2012
|
|
|
2013
|
|
|
2012
|
|
|
GAAP
EPS
|
$
|
0.53
|
|
$
|
0.70
|
|
$
|
1.47
|
|
$
|
2.29
|
|
|
|
Exclude Venezuela net
monetary asset remeasurement losses
|
|
-
|
|
|
-
|
|
|
0.17
|
|
|
-
|
|
|
|
Exclude U.S.
retirement plan expenses
|
|
0.17
|
|
|
0.16
|
|
|
0.65
|
|
|
0.70
|
|
|
|
Exclude employee
benefit settlement and severance losses
|
|
0.01
|
|
|
0.01
|
|
|
0.04
|
|
|
0.06
|
|
|
|
Exclude gains and
losses on acquisitions and dispositions
|
|
0.08
|
|
|
(0.18)
|
|
|
0.04
|
|
|
(0.29)
|
|
|
|
Exclude tax benefit
from change in retiree health care funding strategy
|
|
-
|
|
|
-
|
|
|
-
|
|
|
(0.43)
|
|
|
|
Adjust quarterly tax
rate to full-year average rate
|
|
-
|
|
|
(0.09)
|
|
|
-
|
|
|
-
|
|
|
Non-GAAP
EPS
|
$
|
0.79
|
|
$
|
0.60
|
|
$
|
2.37
|
|
$
|
2.32
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Summary of
Fourth-Quarter and Full-Year Results*
|
|
|
|
|
Fourth
Quarter
|
|
|
|
Full Year
|
|
|
|
(In millions,
except for per share amounts)
|
2013
|
|
2012
|
|
% Change
|
|
2013
|
|
2012
|
|
% Change
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenues
|
$
|
1,039
|
|
977
|
|
6
|
%
|
|
$
|
3,942
|
|
3,735
|
|
6
|
%
|
|
|
|
Segment operating
profit (a)
|
|
84
|
|
72
|
|
17
|
|
|
|
253
|
|
264
|
|
(4)
|
|
|
|
|
Non-segment
expense
|
|
(22)
|
|
(21)
|
|
2
|
|
|
|
(81)
|
|
(89)
|
|
(9)
|
|
|
|
|
Operating
profit
|
|
62
|
|
50
|
|
24
|
|
|
|
172
|
|
175
|
|
(2)
|
|
|
|
Income from
continuing operations (b)
|
|
26
|
|
34
|
|
(24)
|
|
|
|
72
|
|
111
|
|
(35)
|
|
|
|
Diluted EPS from
continuing operations (b)
|
|
0.53
|
|
0.70
|
|
(24)
|
|
|
|
1.47
|
|
2.29
|
|
(36)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-GAAP
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenues
|
$
|
1,039
|
|
977
|
|
6
|
%
|
|
$
|
3,942
|
|
3,735
|
|
6
|
%
|
|
|
|
Segment operating
profit (a)
|
|
91
|
|
73
|
|
24
|
|
|
|
283
|
|
268
|
|
6
|
|
|
|
|
Non-segment
expense
|
|
(12)
|
|
(11)
|
|
16
|
|
|
|
(43)
|
|
(42)
|
|
1
|
|
|
|
|
Operating
profit
|
|
79
|
|
63
|
|
25
|
|
|
|
241
|
|
226
|
|
7
|
|
|
|
Income from
continuing operations (b)
|
|
39
|
|
29
|
|
34
|
|
|
|
116
|
|
113
|
|
3
|
|
|
|
Diluted EPS from
continuing operations (b)
|
|
0.79
|
|
0.60
|
|
32
|
|
|
|
2.37
|
|
2.32
|
|
2
|
|
|
|
|
(a)
|
Segment operating
profit is a non-GAAP measure. Disclosure of segment operating
profit enables investors to assess operating performance excluding
non-segment income and expense.
|
(b)
|
Amounts reported are
attributable to shareholders of The Brink's Company and exclude
earnings related to noncontrolling interests
|
|
*Non-GAAP results
are reconciled to the applicable GAAP results on pages 12 – 17.
Amounts may not add due to rounding.
|
2
The Brink's
Company and subsidiaries
|
Fourth Quarter
2013 vs. 2012 (Unaudited)
|
(In
millions)
|
|
Segment Results –
GAAP
|
|
|
|
|
|
|
|
|
|
Acquisitions
/
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Organic
|
|
Dispositions
|
|
Currency
|
|
|
|
% Change
|
|
|
|
|
|
|
|
|
4Q '12
|
|
Change
|
|
(a)
|
|
(b)
|
|
4Q
'13
|
|
Total
|
|
Organic
|
|
|
Revenues:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Latin
America
|
$
|
432
|
|
85
|
|
5
|
|
(51)
|
|
470
|
|
9
|
|
20
|
|
|
|
EMEA
|
|
286
|
|
9
|
|
-
|
|
11
|
|
306
|
|
7
|
|
3
|
|
|
|
Asia
Pacific
|
|
36
|
|
3
|
|
-
|
|
(2)
|
|
37
|
|
3
|
|
9
|
|
|
|
|
International
|
|
754
|
|
97
|
|
5
|
|
(42)
|
|
813
|
|
8
|
|
13
|
|
|
|
|
North
America
|
|
224
|
|
6
|
|
-
|
|
(3)
|
|
226
|
|
1
|
|
3
|
|
|
|
|
|
|
Total
|
$
|
977
|
|
103
|
|
5
|
|
(45)
|
|
1,039
|
|
6
|
|
11
|
|
|
Operating
profit:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
International
|
$
|
64
|
|
29
|
|
-
|
|
(9)
|
|
84
|
|
30
|
|
44
|
|
|
|
North
America
|
|
7
|
|
(7)
|
|
-
|
|
-
|
|
-
|
|
(97)
|
|
(95)
|
|
|
|
|
Segment operating
profit
|
|
72
|
|
22
|
|
-
|
|
(9)
|
|
84
|
|
17
|
|
30
|
|
|
|
|
Non-segment
|
|
(21)
|
|
(1)
|
|
1
|
|
-
|
|
(22)
|
|
2
|
|
6
|
|
|
|
|
|
|
Total
|
$
|
50
|
|
20
|
|
1
|
|
(9)
|
|
62
|
|
24
|
|
40
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Segment operating
margin:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
International
|
|
8.5%
|
|
|
|
|
|
|
|
10.3%
|
|
|
|
|
|
|
North
America
|
|
3.3%
|
|
|
|
|
|
|
|
0.1%
|
|
|
|
|
|
|
Segment operating
margin
|
|
7.3%
|
|
|
|
|
|
|
|
8.1%
|
|
|
|
|
|
Segment Results -
Non-GAAP*
|
|
|
|
|
|
|
|
|
|
Acquisitions
/
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Organic
|
|
Dispositions
|
|
Currency
|
|
|
|
% Change
|
|
|
|
|
|
|
|
|
4Q '12
|
|
Change
|
|
(a)
|
|
(b)
|
|
4Q
'13
|
|
Total
|
|
Organic
|
|
|
Revenues:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Latin
America
|
$
|
432
|
|
85
|
|
5
|
|
(51)
|
|
470
|
|
9
|
|
20
|
|
|
|
EMEA
|
|
286
|
|
9
|
|
-
|
|
11
|
|
306
|
|
7
|
|
3
|
|
|
|
Asia
Pacific
|
|
36
|
|
3
|
|
-
|
|
(2)
|
|
37
|
|
3
|
|
9
|
|
|
|
|
International
|
|
754
|
|
97
|
|
5
|
|
(42)
|
|
813
|
|
8
|
|
13
|
|
|
|
|
North
America
|
|
224
|
|
6
|
|
-
|
|
(3)
|
|
226
|
|
1
|
|
3
|
|
|
|
|
|
|
Total
|
$
|
977
|
|
103
|
|
5
|
|
(45)
|
|
1,039
|
|
6
|
|
11
|
|
|
Operating
profit:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
International
|
$
|
64
|
|
33
|
|
-
|
|
(9)
|
|
88
|
|
38
|
|
52
|
|
|
|
North
America
|
|
10
|
|
(6)
|
|
-
|
|
-
|
|
3
|
|
(67)
|
|
(65)
|
|
|
|
|
Segment operating
profit
|
|
73
|
|
27
|
|
-
|
|
(9)
|
|
91
|
|
24
|
|
37
|
|
|
|
|
Non-segment
|
|
(11)
|
|
(2)
|
|
-
|
|
-
|
|
(12)
|
|
16
|
|
16
|
|
|
|
|
|
|
Total
|
$
|
63
|
|
25
|
|
-
|
|
(9)
|
|
79
|
|
25
|
|
40
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Segment operating
margin:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
International
|
|
8.5%
|
|
|
|
|
|
|
|
10.8%
|
|
|
|
|
|
|
North
America
|
|
4.2%
|
|
|
|
|
|
|
|
1.4%
|
|
|
|
|
|
|
Segment operating
margin
|
|
7.5%
|
|
|
|
|
|
|
|
8.8%
|
|
|
|
|
|
|
(a)
|
Includes operating
results and gains/losses on acquisitions, sales and exits of
businesses.
|
(b)
|
The "Currency" amount
in the table is the summation of the monthly currency changes, plus
(minus) the U.S. dollar amount of remeasurement currency gains
(losses) of bolivar fuerte-denominated net monetary assets recorded
under highly inflationary accounting rules related to the
Venezuelan operations. The monthly currency change is equal to the
Revenue or Operating Profit for the month in local currency, on a
country-by-country basis, multiplied by the difference in rates
used to translate the current period amounts to U.S. dollars versus
the translation rates used in the year-ago month. The functional
currency in Venezuela is the U.S. dollar under highly inflationary
accounting rules. Remeasurement gains and losses under these rules
are recorded in U.S. dollars but these gains and losses are not
recorded in local currency. Local currency Revenue and Operating
Profit used in the calculation of monthly currency change for
Venezuela have been derived from the U.S. dollar results of the
Venezuelan operations under U.S. GAAP (excluding remeasurement
gains and losses) using current period currency exchange
rates.
|
|
*Non-GAAP results
are reconciled to the applicable GAAP results on pages 12-17.
Amounts may not add due to rounding.
|
3
The Brink's
Company and subsidiaries
|
Full Year 2013 vs.
2012 (Unaudited)
|
(In
millions)
|
|
Segment Results –
GAAP
|
|
|
|
|
|
|
|
|
|
Acquisitions
/
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Organic
|
|
Dispositions
|
|
Currency
|
|
|
|
% Change
|
|
|
|
|
|
|
|
|
2012
|
|
Change
|
|
(a)
|
|
(b)
|
|
2013
|
|
Total
|
|
Organic
|
|
|
Revenues:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Latin
America
|
$
|
1,579
|
|
262
|
|
16
|
|
(136)
|
|
1,721
|
|
9
|
|
17
|
|
|
|
EMEA
|
|
1,126
|
|
26
|
|
-
|
|
27
|
|
1,178
|
|
5
|
|
2
|
|
|
|
Asia
Pacific
|
|
136
|
|
15
|
|
-
|
|
(7)
|
|
145
|
|
6
|
|
11
|
|
|
|
|
International
|
|
2,842
|
|
303
|
|
16
|
|
(116)
|
|
3,044
|
|
7
|
|
11
|
|
|
|
|
North
America
|
|
893
|
|
11
|
|
-
|
|
(6)
|
|
898
|
|
1
|
|
1
|
|
|
|
|
|
|
Total
|
$
|
3,735
|
|
314
|
|
16
|
|
(122)
|
|
3,942
|
|
6
|
|
8
|
|
|
Operating
profit:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
International
|
$
|
232
|
|
50
|
|
2
|
|
(36)
|
|
248
|
|
7
|
|
22
|
|
|
|
North
America
|
|
32
|
|
(27)
|
|
-
|
|
-
|
|
5
|
|
(85)
|
|
(84)
|
|
|
|
|
Segment operating
profit
|
|
264
|
|
23
|
|
2
|
|
(36)
|
|
253
|
|
(4)
|
|
9
|
|
|
|
|
Non-segment
|
|
(89)
|
|
6
|
|
2
|
|
-
|
|
(81)
|
|
(9)
|
|
(7)
|
|
|
|
|
|
|
Total
|
$
|
175
|
|
29
|
|
4
|
|
(36)
|
|
172
|
|
(2)
|
|
17
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Segment operating
margin:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
International
|
|
8.2%
|
|
|
|
|
|
|
|
8.2%
|
|
|
|
|
|
|
North
America
|
|
3.6%
|
|
|
|
|
|
|
|
0.5%
|
|
|
|
|
|
|
Segment operating
margin
|
|
7.1%
|
|
|
|
|
|
|
|
6.4%
|
|
|
|
|
|
Segment Results –
Non-GAAP
|
|
|
|
|
|
|
|
|
|
Acquisitions
/
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Organic
|
|
Dispositions
|
|
Currency
|
|
|
|
% Change
|
|
|
|
|
|
|
|
|
2012
|
|
Change
|
|
(a)
|
|
(b)
|
|
2013
|
|
Total
|
|
Organic
|
|
|
Revenues:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Latin
America
|
$
|
1,579
|
|
262
|
|
16
|
|
(136)
|
|
1,721
|
|
9
|
|
17
|
|
|
|
EMEA
|
|
1,126
|
|
26
|
|
-
|
|
27
|
|
1,178
|
|
5
|
|
2
|
|
|
|
Asia
Pacific
|
|
136
|
|
15
|
|
-
|
|
(7)
|
|
145
|
|
6
|
|
11
|
|
|
|
|
International
|
|
2,842
|
|
303
|
|
16
|
|
(116)
|
|
3,044
|
|
7
|
|
11
|
|
|
|
|
North
America
|
|
893
|
|
11
|
|
-
|
|
(6)
|
|
898
|
|
1
|
|
1
|
|
|
|
|
|
|
Total
|
$
|
3,735
|
|
314
|
|
16
|
|
(122)
|
|
3,942
|
|
6
|
|
8
|
|
|
Operating
profit:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
International
|
$
|
227
|
|
60
|
|
2
|
|
(22)
|
|
267
|
|
17
|
|
26
|
|
|
|
North
America
|
|
41
|
|
(24)
|
|
-
|
|
-
|
|
16
|
|
(60)
|
|
(59)
|
|
|
|
|
Segment operating
profit
|
|
268
|
|
36
|
|
2
|
|
(23)
|
|
283
|
|
6
|
|
14
|
|
|
|
|
Non-segment
|
|
(42)
|
|
-
|
|
-
|
|
-
|
|
(43)
|
|
1
|
|
1
|
|
|
|
|
|
|
Total
|
$
|
226
|
|
36
|
|
2
|
|
(23)
|
|
241
|
|
7
|
|
16
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Segment operating
margin:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
International
|
|
8.0%
|
|
|
|
|
|
|
|
8.8%
|
|
|
|
|
|
|
North
America
|
|
4.6%
|
|
|
|
|
|
|
|
1.8%
|
|
|
|
|
|
|
Segment operating
margin
|
|
7.2%
|
|
|
|
|
|
|
|
7.2%
|
|
|
|
|
|
|
Amounts may not add
due to rounding. See page 3 for footnote explanations.
|
4
Non-Segment Expenses
On a GAAP basis, non-segment
expenses increased slightly to $22
million versus the year-ago quarter of $21 million. On a non-GAAP basis,
non-segment expenses increased to $12
million from the year-ago quarter of $11 million.
Capital Expenditures and Capital Leases
Full-year
capital expenditures and capital lease additions were $183 million versus $196
million in 2012. In 2014, these expenditures are
expected to total $200 million to $210
million.
Income Taxes
On a GAAP basis, fourth-quarter tax
expense was $21 million (37%
effective rate) versus $3 million in
2012 (7% effective rate). The full-year 2013 tax expense was
$52 million (35% effective rate)
versus $27 million in 2012 (17%
effective rate). The full-year 2013 effective rate was unfavorably
affected by tax expense resulting from repatriation, partially
offset by a tax benefit from the mix of earnings. The full-year
2012 effective rate was favorably affected by a $21 million non-cash tax benefit related to a
change in retiree health care funding strategy and a $7.5 million tax benefit related to a change in
judgment of an income tax accrual, partially offset by tax expense
resulting from repatriation and mix of earnings. On a
non-GAAP basis, the full-year rate for 2013 was 33% versus 37% in
2012 due in large part to higher Venezuela earnings.
2014 Outlook
See page 8 for a summary of selected
2013 results and 2014 outlook items including guidance on revenue,
segment margin, non-segment expense, interest expense, tax rate,
non-controlling interest expense, capital expenditures, capital
leases and depreciation and amortization. This outlook
assumes no change in exchange rates used for reporting Venezuela results for 2014.
Recent Events
Brink's disclosed today that it is
exploring re-entry into the home security industry. In 2008,
Brink's spun off its Brink's Home Security unit to shareholders and
entered into a 5-year non-compete agreement, which expired on
October 31, 2013.
On November 1, Brink's completed
the sale of its Threshold Financial Technologies, Inc. subsidiary
to DirectCash Payments Inc. for $50
million, generating a fourth-quarter gain of $19 million ($.31
per share after taxes). Under the terms of the agreement,
DirectCash acquired Threshold's private label ATM network and
payment processing businesses in Canada while Brink's continues to own and
operate Threshold's integrated managed services business as Brink's
Integrated Managed Services (Brink's IMS). On November 22, Brink's completed the sale of its
ICD, Ltd., commercial security subsidiary for $33 million, generating a fourth-quarter gain of
$10 million ($.13 per share after taxes). Results from
both of the divested businesses are disclosed as discontinued
operations.
5
Conference Call
Brink's will host a conference
call on January 30 at 11:00 a.m. Eastern Time to review fourth-quarter
results. Interested parties can listen by calling (877)
870-4263 (in the U.S.) or (412) 317-0790 (international)
Participants should call in at least five minutes prior to the
start of the call. Participants can pre-register at
http://dpregister.com/10039412 to receive a direct dial-in
number for the call. The call also will be accessible via
live webcast at www.Brinks.com. A replay of the call will be
available through February 14, 2014,
at (877) 344-7529 (in the U.S.) or (412) 317-0088
(international). The conference number is 10039412. A
webcast replay will also be available at www.Brinks.com.
About The Brink's Company
The Brink's Company (NYSE:
BCO) is the world's premier provider of secure transportation and
cash management services. For more information, please visit
The Brink's Company website at www.Brinks.com or call
804-289-9709.
Non-GAAP Results
Non-GAAP results described in this
earnings 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 without certain income and expense
items and 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
non-GAAP tax rate. The full year non-GAAP tax rate in both
years excludes certain pretax and tax income and expense
amounts. The non-GAAP information provides information to
assist comparability and estimates of future performance.
Brink's believes these measures are helpful in assessing operations
and estimating future results and enable period-to-period
comparability of financial performance. In addition, Brink's
believes the measures will help investors assess the ongoing
operations and provide an alternative for valuing legacy
liabilities. 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.
6
Forward-Looking Statements
Financial information for
the fourth quarter and full year 2013 included in this release is
unaudited and remains subject to the completion of the external
audit. This release contains both historical and forward-looking
information. Words such as "anticipates," "assumes," "estimates,"
"expects," "projects," "predicts," "intends," "plans," "believes,"
"potential," "may," "should" and similar expressions may identify
forward-looking information. Forward-looking information in this
release includes, but is not limited to, anticipated revenue,
segment operating profit, currency impact on revenue, segment
margin, non-segment expense, interest expense, income tax rate,
non-controlling interest expense, capital expenditures, fixed asset
acquisitions, capital leases and depreciation and amortization for
2014, and future exchange rates used to report Venezuela results. 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:
- continuing market volatility and commodity price fluctuations
and their impact on the demand for our services,
- our ability to continue profit growth in Latin America,
- our ability to maintain or improve volumes at favorable pricing
levels and increase cost efficiencies in the United States and Europe,
- investments in information technology and value-added services
and their impact on revenue and profit growth,
- our ability to develop and implement solutions for our
customers and gain market acceptance of those solutions,
- our ability to maintain an effective IT infrastructure and
safeguard confidential information,
- risks customarily associated with operating in foreign
countries including changing labor and economic conditions,
currency devaluations, safety and security issues, political
instability, restrictions on repatriation of earnings and capital,
nationalization, expropriation and other forms of restrictive
government actions,
- the strength of the U.S. dollar relative to foreign currencies
and foreign currency exchange rates,
- the stability of the Venezuelan economy, changes in Venezuelan
policy regarding foreign-owned businesses,
- changes in currency restrictions and in foreign exchange
rates,
- fluctuations in value of the Venezuelan bolivar fuerte,
- regulatory and labor issues in many of our global operations,
including negotiations with organized labor and the possibility of
work stoppages,
- our ability to identify and execute further cost and
operational improvements and efficiencies in our core
businesses,
- our ability to integrate successfully recently acquired
companies and improve their operating profit margins,
- costs related to dispositions and market exits,
- our ability to identify, evaluate and pursue acquisitions and
other strategic opportunities, including those in the home security
industry and emerging markets,
- the willingness of our customers to absorb price increases and
surcharges, including those related to fuel or labor costs,
- our ability to obtain necessary information technology and
other services at favorable pricing levels from third party service
providers,
- variations in costs or expenses and performance delays of any
public or private sector supplier, service provider or
customer,
- our ability to obtain appropriate insurance coverage, positions
taken by insurers with respect to claims made and the financial
condition of insurers, safety and security performance, our loss
experience, and changes in insurance costs,
- security threats worldwide and losses of customer
valuables,
- costs associated with the purchase and implementation of cash
processing and security equipment,
- employee and environmental liabilities in connection with our
former coal operations, black lung claims incidence,
- the impact of the Patient Protection and Affordable Care Act on
black lung liability and the Company's ongoing operations,
- changes to estimated liabilities and assets in actuarial
assumptions due to payments made, investment returns, interest
rates and annual actuarial revaluations, the funding requirements,
accounting treatment, investment performance and costs and expenses
of our pension plans, the VEBA and other employee benefits,
mandatory or voluntary pension plan contributions,
- the nature of our hedging relationships,
- changes in estimates and assumptions underlying our critical
accounting policies,
- our ability to realize deferred tax assets,
- the outcome of pending and future claims, litigation and
administrative proceedings,
- public perception of the Company's business and
reputation,
- access to the capital and credit markets,
- seasonality, pricing and other competitive industry factors,
and
- the promulgation and adoption of new accounting standards and
interpretations, new government regulations and interpretations of
existing regulations.
This list of risks, uncertainties and contingencies is not
intended to be exhaustive. Additional factors that could cause our
results to differ materially from those described in the
forward-looking statements can be found under "Risk Factors" in
Item 1A of our Annual Report on Form 10-K for the period ended
December 31, 2012, and in our other
public filings with the Securities and Exchange Commission. The
forward-looking information included in this document is
representative only as of the date of this document and The Brink's
Company undertakes no obligation to update any information
contained in this document.
Contact:
Investor Relations
804.289.9709
7
The Brink's
Company and subsidiaries
|
Outlook Summary
(Unaudited)
|
(In
millions)
|
|
|
|
|
|
GAAP
|
|
|
|
Non-GAAP
|
|
|
|
|
|
|
2014
|
|
|
|
|
|
2014
|
|
|
|
|
2013
|
|
Estimate
|
|
|
|
2013
|
|
Estimate
|
Organic revenue
growth
|
|
|
|
|
|
|
|
|
|
|
|
International
|
|
11%
|
|
7% - 9%
|
|
|
|
11%
|
|
7% - 9%
|
|
North
America
|
|
1%
|
|
0% - 2%
|
|
|
|
1%
|
|
0% - 2%
|
|
|
Total
|
|
8%
|
|
5% - 8%
|
|
|
|
8%
|
|
5% - 8%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Currency impact on
revenue
|
|
|
|
|
|
|
|
|
|
|
|
International
|
|
(4)%
|
|
(4%) –
(6%)
|
|
|
|
(4)%
|
|
(4%) –
(6%)
|
|
North
America
|
|
(1)%
|
|
flat
|
|
|
|
(1)%
|
|
flat
|
|
|
Total
|
|
(3)%
|
|
(3%) –
(5%)
|
|
|
|
(3)%
|
|
(3%) –
(5%)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Segment
margin
|
|
|
|
|
|
|
|
|
|
|
|
International(a)
|
|
8.2%
|
|
7.5% -
8.5%
|
|
|
|
8.8%
|
|
7.5% -
8.5%
|
|
North
America(b)
|
|
0.5%
|
|
1.5% -
2.5%
|
|
|
|
1.8%
|
|
2.5% -
3.5%
|
|
|
Total
|
|
6.4%
|
|
~6.8%
|
|
|
|
7.2%
|
|
~7%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-segment
expense
|
|
|
|
|
|
|
|
|
|
|
|
General and
administrative
|
$
|
45
|
|
47
|
|
|
$
|
45
|
|
47
|
|
Retirement
plans(b)
|
|
41
|
|
19
|
|
|
|
-
|
|
-
|
|
Acquisition
gains
|
|
(3)
|
|
-
|
|
|
|
-
|
|
-
|
|
Royalty
income
|
|
(2)
|
|
(2)
|
|
|
|
(2)
|
|
(2)
|
|
|
Total
|
$
|
81
|
|
64
|
|
|
$
|
43
|
|
45
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Effective income
tax rate(a)
|
|
35%
|
|
33% – 37%
|
|
|
|
33%
|
|
33% – 37%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest
expense
|
$
|
25
|
|
27 – 29
|
|
|
$
|
25
|
|
27 – 29
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest and other
income (expense)(c)
|
$
|
2
|
|
1 – 2
|
|
|
$
|
2
|
|
1 – 2
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income
attributable to
|
|
|
|
|
|
|
|
|
|
|
|
noncontrolling
interests(a)
|
$
|
24
|
|
26 – 30
|
|
|
$
|
29
|
|
26 – 30
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Fixed assets
acquired
|
|
|
|
|
|
|
|
|
|
|
|
Capital
expenditures
|
$
|
178
|
|
185 -
195
|
|
|
$
|
178
|
|
185 -
195
|
|
Capital
leases(d)
|
|
5
|
|
15
|
|
|
|
5
|
|
15
|
|
|
Total
|
$
|
183
|
|
200 -
210
|
|
|
$
|
183
|
|
200 -
210
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Depreciation and
amortization
|
$
|
174
|
|
185 – 190
|
|
|
$
|
174
|
|
185 – 190
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(a)
|
Remeasurement losses
on net monetary assets in Venezuela ($13 million in 2013) have been
excluded from non-GAAP results.
|
(b)
|
Costs related to U.S.
retirement plans have been excluded from non-GAAP results including
$12 million in 2013 and $5 million in 2014 related to North
America, and $41 million in 2013 and $19 million in 2014 related to
Non-segment.
|
(c)
|
Acquisition gains and
losses are excluded from non-GAAP results.
|
(d)
|
Includes capital
leases for newly acquired assets only.
|
|
Amounts may not add
due to rounding.
|
8
The Brink's
Company and subsidiaries
|
Condensed
Consolidated Statements of Income (Unaudited)
|
(In millions,
except for per share amounts)
|
|
|
|
|
|
|
|
Fourth
Quarter
|
|
|
Full Year
|
|
|
2013
|
|
2012
|
|
|
2013
|
|
2012
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenues
|
$
|
1,039.4
|
|
977.1
|
|
$
|
3,942.2
|
|
3,735.0
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Costs and
expenses:
|
|
|
|
|
|
|
|
|
|
|
Cost of
revenues
|
|
829.0
|
|
786.7
|
|
|
3,197.1
|
|
3,024.3
|
|
Selling, general and
administrative expenses
|
|
146.0
|
|
141.2
|
|
|
564.0
|
|
546.7
|
|
|
Total costs and
expenses
|
|
975.0
|
|
927.9
|
|
|
3,761.1
|
|
3,571.0
|
|
Other operating
income (expense)
|
|
(2.0)
|
|
1.2
|
|
|
(9.4)
|
|
11.0
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating
profit
|
|
62.4
|
|
50.4
|
|
|
171.7
|
|
175.0
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest
expense
|
|
(6.8)
|
|
(6.2)
|
|
|
(25.1)
|
|
(23.1)
|
|
Interest and other
income (expense)
|
|
0.4
|
|
0.8
|
|
|
1.6
|
|
7.2
|
|
|
Income from
continuing operations before tax
|
|
56.0
|
|
45.0
|
|
|
148.2
|
|
159.1
|
|
Provision for income
taxes
|
|
20.9
|
|
3.3
|
|
|
52.0
|
|
27.1
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income from
continuing operations
|
|
35.1
|
|
41.7
|
|
|
96.2
|
|
132.0
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income (loss) from
discontinued operations, net of tax
|
|
14.9
|
|
(6.1)
|
|
|
(15.1)
|
|
(22.3)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
income
|
|
50.0
|
|
35.6
|
|
|
81.1
|
|
109.7
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Less net income
attributable to noncontrolling interests
|
|
(9.1)
|
|
(7.7)
|
|
|
(24.3)
|
|
(20.8)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income
attributable to Brink's
|
$
|
40.9
|
|
27.9
|
|
$
|
56.8
|
|
88.9
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Amounts
attributable to Brink's:
|
|
|
|
|
|
|
|
|
|
|
Continuing
operations
|
$
|
26.0
|
|
34.0
|
|
$
|
71.9
|
|
111.2
|
|
Discontinued
operations
|
|
14.9
|
|
(6.1)
|
|
|
(15.1)
|
|
(22.3)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income
attributable to Brink's
|
$
|
40.9
|
|
27.9
|
|
$
|
56.8
|
|
88.9
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings (loss)
per share attributable to Brink's common
shareholders(a):
|
|
|
Basic:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Continuing
operations
|
$
|
0.53
|
|
0.70
|
|
$
|
1.48
|
|
2.30
|
|
|
|
|
Discontinued
operations
|
|
0.31
|
|
(0.13)
|
|
|
(0.31)
|
|
(0.46)
|
|
|
|
|
Net income
|
$
|
0.84
|
|
0.58
|
|
$
|
1.17
|
|
1.84
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Continuing
operations
|
$
|
0.53
|
|
0.70
|
|
$
|
1.47
|
|
2.29
|
|
|
|
|
Discontinued
operations
|
|
0.30
|
|
(0.13)
|
|
|
(0.31)
|
|
(0.46)
|
|
|
|
|
Net income
|
$
|
0.83
|
|
0.57
|
|
$
|
1.16
|
|
1.83
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted-average
shares
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
48.8
|
|
48.5
|
|
|
48.7
|
|
48.4
|
|
|
Diluted
|
|
49.2
|
|
48.8
|
|
|
49.0
|
|
48.6
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(a) Earnings per share may not add due to
rounding.
|
9
The Brink's
Company and subsidiaries
|
Supplemental
Financial Information (Unaudited)
|
(In
millions)
|
|
|
|
Fourth
Quarter
|
|
Full Year
|
|
|
2013
|
|
2012
|
|
2013
|
|
2012
|
DISCONTINUED
OPERATIONS
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income (loss) from
operations(a)(b)
|
$
|
(0.5)
|
|
(3.3)
|
|
$
|
(26.0)
|
|
(22.5)
|
|
Gain (loss) on
sale(a)
|
|
19.9
|
|
(0.3)
|
|
|
16.3
|
|
(0.3)
|
|
Adjustments to
contingencies of former operations
|
|
(1.6)
|
|
(0.6)
|
|
|
(0.7)
|
|
(0.5)
|
|
Income (loss) from
discontinued operations before income taxes
|
|
17.8
|
|
(4.2)
|
|
|
(10.4)
|
|
(23.3)
|
|
Provision (benefit)
for income taxes
|
|
2.9
|
|
1.9
|
|
|
4.7
|
|
(1.0)
|
|
Income (loss) from
discontinued operations, net of tax
|
$
|
14.9
|
|
(6.1)
|
|
$
|
(15.1)
|
|
(22.3)
|
|
(a)
|
Discontinued
operations include gains and losses related to businesses that
Brink's recently sold. These include Threshold Financial
Technologies, Inc. in Canada, cash-in-transit operations in
Germany, Poland, Turkey, and Hungary, and guarding operations in
France, Morocco, and Germany. Revenues from these International
operations were $59.3 million in the three months and $184.3
million in the year ended December 31, 2013, and $56.5 million in
the three months and $211.5 million in the year ended December 31,
2012.
|
(b)
|
The loss from
operations in 2013 included $16.2 million of severance expenses
paid to terminate certain employees of the German cash-in-transit
operations. We contributed a portion of the cost to fund the
severance payments to the business prior to the execution of the
sale transaction.
|
|
|
|
|
|
Full Year
|
SELECTED CASH
FLOW INFORMATION
|
|
2013
|
|
2012
|
|
|
|
|
|
Property and
equipment acquired during the year
|
|
|
|
|
|
Capital
expenditures
|
|
|
|
|
|
|
International
|
$
|
125.6
|
|
129.7
|
|
|
North
America
|
|
52.1
|
|
48.2
|
|
|
|
Capital
expenditures
|
|
177.7
|
|
177.9
|
|
|
|
|
|
|
|
|
|
Capital
Leases(a)
|
|
|
|
|
|
|
International
|
|
0.9
|
|
2.7
|
|
|
North
America
|
|
4.6
|
|
15.4
|
|
|
|
Capital
leases
|
|
5.5
|
|
18.1
|
|
|
|
|
|
|
|
|
|
Total
|
|
|
|
|
|
|
International
|
|
126.5
|
|
132.4
|
|
|
North
America
|
|
56.7
|
|
63.6
|
|
|
|
Total
|
$
|
183.2
|
|
196.0
|
|
|
|
|
|
|
|
|
Depreciation and
amortization
|
|
|
|
|
|
|
International
|
$
|
115.4
|
|
100.3
|
|
|
North
America
|
|
58.2
|
|
55.4
|
|
|
|
Depreciation and
amortization
|
$
|
173.6
|
|
155.7
|
|
(a)
|
Represents the amount
of property and equipment acquired using capital leases. Because
these assets are acquired without using cash, the acquisitions are
not reflected in the consolidated cash flow statement. Amounts are
provided here to assist in the comparison of assets acquired in the
current year versus prior years.
|
10
The Brink's
Company and subsidiaries
|
GAAP and Non-GAAP
Results (Unaudited)
|
(In millions,
except for per share amounts)
|
|
|
|
|
|
2012
|
|
|
2013
|
|
|
1Q
|
|
2Q
|
|
3Q
|
|
4Q
|
|
Full
Year
|
|
|
1Q
|
|
2Q
|
|
3Q
|
|
4Q
|
|
Full
Year
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP
Basis
|
Revenues:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Latin
America
|
$
|
386.3
|
|
375.9
|
|
385.2
|
|
432.0
|
|
1,579.4
|
|
$
|
412.9
|
|
413.6
|
|
423.8
|
|
470.4
|
|
1,720.7
|
|
EMEA
|
|
272.8
|
|
281.4
|
|
286.0
|
|
285.7
|
|
1,125.9
|
|
|
277.8
|
|
293.4
|
|
301.2
|
|
305.9
|
|
1,178.3
|
|
Asia
Pacific
|
|
33.8
|
|
33.1
|
|
33.7
|
|
35.8
|
|
136.4
|
|
|
36.6
|
|
36.6
|
|
34.9
|
|
36.7
|
|
144.8
|
|
|
International
|
|
692.9
|
|
690.4
|
|
704.9
|
|
753.5
|
|
2,841.7
|
|
|
727.3
|
|
743.6
|
|
759.9
|
|
813.0
|
|
3,043.8
|
|
North
America
|
|
224.2
|
|
224.2
|
|
221.3
|
|
223.6
|
|
893.3
|
|
|
223.2
|
|
226.3
|
|
222.5
|
|
226.4
|
|
898.4
|
|
|
Revenues
|
$
|
917.1
|
|
914.6
|
|
926.2
|
|
977.1
|
|
3,735.0
|
|
$
|
950.5
|
|
969.9
|
|
982.4
|
|
1,039.4
|
|
3,942.2
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating
profit:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
International
|
$
|
67.1
|
|
41.5
|
|
59.0
|
|
64.4
|
|
232.0
|
|
$
|
36.3
|
|
48.1
|
|
79.7
|
|
84.0
|
|
248.1
|
|
North
America
|
|
6.0
|
|
10.6
|
|
8.0
|
|
7.3
|
|
31.9
|
|
|
(2.0)
|
|
6.3
|
|
0.2
|
|
0.2
|
|
4.7
|
|
|
Segment operating
profit
|
|
73.1
|
|
52.1
|
|
67.0
|
|
71.7
|
|
263.9
|
|
|
34.3
|
|
54.4
|
|
79.9
|
|
84.2
|
|
252.8
|
|
Non-segment
|
|
(24.3)
|
|
(21.3)
|
|
(22.0)
|
|
(21.3)
|
|
(88.9)
|
|
|
(17.0)
|
|
(21.6)
|
|
(20.7)
|
|
(21.8)
|
|
(81.1)
|
|
|
Operating
profit
|
$
|
48.8
|
|
30.8
|
|
45.0
|
|
50.4
|
|
175.0
|
|
$
|
17.3
|
|
32.8
|
|
59.2
|
|
62.4
|
|
171.7
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Amounts
attributable to Brink's:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income from
continuing operations
|
$
|
22.5
|
|
33.6
|
|
21.1
|
|
34.0
|
|
111.2
|
|
$
|
2.9
|
|
13.2
|
|
29.8
|
|
26.0
|
|
71.9
|
Diluted EPS –
continuing operations
|
|
0.47
|
|
0.69
|
|
0.43
|
|
0.70
|
|
2.29
|
|
|
0.06
|
|
0.27
|
|
0.61
|
|
0.53
|
|
1.47
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-GAAP
Basis
|
Revenues:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Latin
America
|
$
|
386.3
|
|
375.9
|
|
385.2
|
|
432.0
|
|
1,579.4
|
|
$
|
412.9
|
|
413.6
|
|
423.8
|
|
470.4
|
|
1,720.7
|
|
EMEA
|
|
272.8
|
|
281.4
|
|
286.0
|
|
285.7
|
|
1,125.9
|
|
|
277.8
|
|
293.4
|
|
301.2
|
|
305.9
|
|
1,178.3
|
|
Asia
Pacific
|
|
33.8
|
|
33.1
|
|
33.7
|
|
35.8
|
|
136.4
|
|
|
36.6
|
|
36.6
|
|
34.9
|
|
36.7
|
|
144.8
|
|
|
International
|
|
692.9
|
|
690.4
|
|
704.9
|
|
753.5
|
|
2,841.7
|
|
|
727.3
|
|
743.6
|
|
759.9
|
|
813.0
|
|
3,043.8
|
|
North
America
|
|
224.2
|
|
224.2
|
|
221.3
|
|
223.6
|
|
893.3
|
|
|
223.2
|
|
226.3
|
|
222.5
|
|
226.4
|
|
898.4
|
|
|
Revenues
|
$
|
917.1
|
|
914.6
|
|
926.2
|
|
977.1
|
|
3,735.0
|
|
$
|
950.5
|
|
969.9
|
|
982.4
|
|
1,039.4
|
|
3,942.2
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating
profit:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
International
|
$
|
67.9
|
|
41.8
|
|
53.8
|
|
63.9
|
|
227.4
|
|
$
|
50.0
|
|
48.6
|
|
80.5
|
|
88.0
|
|
267.1
|
|
North
America
|
|
8.2
|
|
12.8
|
|
10.2
|
|
9.5
|
|
40.7
|
|
|
0.9
|
|
9.2
|
|
3.1
|
|
3.1
|
|
16.3
|
|
|
Segment operating
profit
|
|
76.1
|
|
54.6
|
|
64.0
|
|
73.4
|
|
268.1
|
|
|
50.9
|
|
57.8
|
|
83.6
|
|
91.1
|
|
283.4
|
|
Non-segment
|
|
(9.6)
|
|
(11.7)
|
|
(10.4)
|
|
(10.6)
|
|
(42.3)
|
|
|
(7.6)
|
|
(11.4)
|
|
(11.3)
|
|
(12.3)
|
|
(42.6)
|
|
|
Operating
profit
|
$
|
66.5
|
|
42.9
|
|
53.6
|
|
62.8
|
|
225.8
|
|
$
|
43.3
|
|
46.4
|
|
72.3
|
|
78.8
|
|
240.8
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Amounts
attributable to Brink's:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income from
continuing operations
|
$
|
33.2
|
|
22.7
|
|
27.7
|
|
29.1
|
|
112.7
|
|
$
|
18.7
|
|
22.8
|
|
35.4
|
|
39.0
|
|
115.9
|
Diluted EPS –
continuing operations
|
|
0.69
|
|
0.47
|
|
0.57
|
|
0.60
|
|
2.32
|
|
|
0.38
|
|
0.47
|
|
0.72
|
|
0.79
|
|
2.37
|
|
Amounts may not add
due to rounding. Non-GAAP results for 2012 and 2013 are reconciled
to applicable GAAP results on pages 12-17.
|
11
The Brink's
Company and subsidiaries
|
Non-GAAP Results
Reconciled to GAAP (Unaudited)
|
(In millions,
except for per share amounts)
|
|
|
|
GAAP Basis
|
|
Gains on Acquisitions
and Asset Dispositions
(a)
|
|
Net monetary Asset
Remeasurement Losses in Venezuela
(b)
|
|
Employee Benefit
Settlement Losses
(c)
|
|
U.S. Retirement
Plans
(d)
|
|
Adjust Income Tax
Rate
(e)
|
|
Non-GAAP
Basis
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
First Quarter
2013
|
Revenues:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Latin
America
|
$
|
412.9
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
412.9
|
|
EMEA
|
|
277.8
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
277.8
|
|
Asia
Pacific
|
|
36.6
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
36.6
|
|
|
International
|
|
727.3
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
727.3
|
|
North
America
|
|
223.2
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
223.2
|
|
|
Revenues
|
$
|
950.5
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
950.5
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating
profit:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
International
|
$
|
36.3
|
|
-
|
|
13.4
|
|
0.3
|
|
-
|
|
-
|
|
50.0
|
|
North
America
|
|
(2.0)
|
|
-
|
|
-
|
|
-
|
|
2.9
|
|
-
|
|
0.9
|
|
|
Segment operating
profit
|
|
34.3
|
|
-
|
|
13.4
|
|
0.3
|
|
2.9
|
|
-
|
|
50.9
|
|
Non-segment
|
|
(17.0)
|
|
(1.1)
|
|
-
|
|
-
|
|
10.5
|
|
-
|
|
(7.6)
|
|
|
Operating
profit
|
$
|
17.3
|
|
(1.1)
|
|
13.4
|
|
0.3
|
|
13.4
|
|
-
|
|
43.3
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Amounts
attributable to Brink's:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income from
continuing operations
|
$
|
2.9
|
|
(1.1)
|
|
8.4
|
|
0.2
|
|
8.2
|
|
0.1
|
|
18.7
|
Diluted EPS –
continuing operations
|
|
0.06
|
|
(0.02)
|
|
0.17
|
|
-
|
|
0.17
|
|
-
|
|
0.38
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Second Quarter
2013
|
Revenues:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Latin
America
|
$
|
413.6
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
413.6
|
|
EMEA
|
|
293.4
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
293.4
|
|
Asia
Pacific
|
|
36.6
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
36.6
|
|
|
International
|
|
743.6
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
743.6
|
|
North
America
|
|
226.3
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
226.3
|
|
|
Revenues
|
$
|
969.9
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
969.9
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating
profit:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
International
|
$
|
48.1
|
|
-
|
|
-
|
|
0.5
|
|
-
|
|
-
|
|
48.6
|
|
North
America
|
|
6.3
|
|
-
|
|
-
|
|
-
|
|
2.9
|
|
-
|
|
9.2
|
|
|
Segment operating
profit
|
|
54.4
|
|
-
|
|
-
|
|
0.5
|
|
2.9
|
|
-
|
|
57.8
|
|
Non-segment
|
|
(21.6)
|
|
-
|
|
-
|
|
-
|
|
10.2
|
|
-
|
|
(11.4)
|
|
|
Operating
profit
|
$
|
32.8
|
|
-
|
|
-
|
|
0.5
|
|
13.1
|
|
-
|
|
46.4
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Amounts
attributable to Brink's:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income from
continuing operations
|
$
|
13.2
|
|
-
|
|
-
|
|
0.4
|
|
7.7
|
|
1.5
|
|
22.8
|
Diluted EPS –
continuing operations
|
|
0.27
|
|
-
|
|
-
|
|
0.01
|
|
0.16
|
|
0.03
|
|
0.47
|
|
See page 14 for
notes.
|
12
The Brink's
Company and subsidiaries
|
Non-GAAP Results
Reconciled to GAAP (Unaudited)
|
(In millions,
except for per share amounts)
|
|
|
|
GAAP Basis
|
|
Gains on Acquisitions
and Asset Dispositions
(a)
|
|
Net Monetary Asset
Remeasurement Losses in Venezuela
(b)
|
|
Employee Benefit
Settlement Losses
(c)
|
|
U.S. Retirement
Plans
(d)
|
|
Adjust Income Tax
Rate
(e)
|
|
Non-GAAP
Basis
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Third Quarter
2013
|
Revenues:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Latin
America
|
$
|
423.8
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
423.8
|
|
EMEA
|
|
301.2
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
301.2
|
|
Asia
Pacific
|
|
34.9
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
34.9
|
|
|
International
|
|
759.9
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
759.9
|
|
North
America
|
|
222.5
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
222.5
|
|
|
Revenues
|
$
|
982.4
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
982.4
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating
profit:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
International
|
$
|
79.7
|
|
-
|
|
-
|
|
0.8
|
|
-
|
|
-
|
|
80.5
|
|
North
America
|
|
0.2
|
|
-
|
|
-
|
|
-
|
|
2.9
|
|
-
|
|
3.1
|
|
|
Segment operating
profit
|
|
79.9
|
|
-
|
|
-
|
|
0.8
|
|
2.9
|
|
-
|
|
83.6
|
|
Non-segment
|
|
(20.7)
|
|
(0.9)
|
|
-
|
|
-
|
|
10.3
|
|
-
|
|
(11.3)
|
|
|
Operating
profit
|
$
|
59.2
|
|
(0.9)
|
|
-
|
|
0.8
|
|
13.2
|
|
-
|
|
72.3
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Amounts
attributable to Brink's:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income from
continuing operations
|
$
|
29.8
|
|
(0.9)
|
|
-
|
|
0.6
|
|
7.7
|
|
(1.8)
|
|
35.4
|
Diluted EPS –
continuing operations
|
|
0.61
|
|
(0.02)
|
|
-
|
|
0.01
|
|
0.16
|
|
(0.04)
|
|
0.72
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Fourth Quarter
2013
|
Revenues:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Latin
America
|
$
|
470.4
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
470.4
|
|
EMEA
|
|
305.9
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
305.9
|
|
Asia
Pacific
|
|
36.7
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
36.7
|
|
|
International
|
|
813.0
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
813.0
|
|
North
America
|
|
226.4
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
226.4
|
|
|
Revenues
|
$
|
1,039.4
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
1,039.4
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating
profit:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
International
|
$
|
84.0
|
|
3.1
|
|
-
|
|
0.9
|
|
-
|
|
-
|
|
88.0
|
|
North
America
|
|
0.2
|
|
-
|
|
-
|
|
-
|
|
2.9
|
|
-
|
|
3.1
|
|
|
Segment operating
profit
|
|
84.2
|
|
3.1
|
|
-
|
|
0.9
|
|
2.9
|
|
-
|
|
91.1
|
|
Non-segment
|
|
(21.8)
|
|
(0.8)
|
|
-
|
|
-
|
|
10.3
|
|
-
|
|
(12.3)
|
|
|
Operating
profit
|
$
|
62.4
|
|
2.3
|
|
-
|
|
0.9
|
|
13.2
|
|
-
|
|
78.8
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Amounts
attributable to Brink's:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income from
continuing operations
|
$
|
26.0
|
|
4.0
|
|
-
|
|
0.6
|
|
8.2
|
|
0.2
|
|
39.0
|
Diluted EPS –
continuing operations
|
|
0.53
|
|
0.08
|
|
-
|
|
0.01
|
|
0.17
|
|
-
|
|
0.79
|
|
See page 14 for
notes.
|
13
The Brink's
Company and subsidiaries
|
Non-GAAP Results
Reconciled to GAAP (Unaudited)
|
(In millions,
except for per share amounts)
|
|
|
|
GAAP Basis
|
|
Gains and Losses on
Acquisitions and Dispositions
(a)
|
|
Net Monetary Asset
Remeasurement Losses in Venezuela
(b)
|
|
Employee Benefit
Settlement Losses
(c)
|
|
U.S. Retirement
Plans
(d)
|
|
Adjust Income Tax
Rate
(e)
|
|
Non-GAAP
Basis
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Full Year
2013
|
Revenues:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Latin
America
|
$
|
1,720.7
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
1,720.7
|
|
EMEA
|
|
1,178.3
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
1,178.3
|
|
Asia
Pacific
|
|
144.8
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
144.8
|
|
|
International
|
|
3,043.8
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
3,043.8
|
|
North
America
|
|
898.4
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
898.4
|
|
|
Revenues
|
$
|
3,942.2
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
3,942.2
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating
profit:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
International
|
$
|
248.1
|
|
3.1
|
|
13.4
|
|
2.5
|
|
-
|
|
-
|
|
267.1
|
|
North
America
|
|
4.7
|
|
-
|
|
-
|
|
-
|
|
11.6
|
|
-
|
|
16.3
|
|
|
Segment operating
profit
|
|
252.8
|
|
3.1
|
|
13.4
|
|
2.5
|
|
11.6
|
|
-
|
|
283.4
|
|
Non-segment
|
|
(81.1)
|
|
(2.8)
|
|
-
|
|
-
|
|
41.3
|
|
-
|
|
(42.6)
|
|
|
Operating
profit
|
$
|
171.7
|
|
0.3
|
|
13.4
|
|
2.5
|
|
52.9
|
|
-
|
|
240.8
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Amounts
attributable to Brink's:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income from
continuing operations
|
$
|
71.9
|
|
2.0
|
|
8.4
|
|
1.8
|
|
31.8
|
|
-
|
|
115.9
|
Diluted EPS –
continuing operations
|
|
1.47
|
|
0.04
|
|
0.17
|
|
0.04
|
|
0.65
|
|
-
|
|
2.37
|
|
(a) To
eliminate:
|
- a $1.1 million adjustment in the first quarter of 2013 to the
amount of gain recognized on a 2010 business acquisition in Mexico
as a result of a favorable adjustment to the purchase price
received in the first quarter of 2013.
- $1.7 million of adjustments in the third and fourth quarters of
2013 primarily related to the January 2013 acquisition of Rede Trel
in Brazil.
- $3.1 million in adjustments in the fourth quarter of 2013
related to the increase in a loss contingency assumed in the 2010
Mexico acquisition and the impairment of an intangible asset
acquired in the 2009 India acquisition.
- $2.6 million tax adjustment related to the Belgium
disposition.
|
(b)
|
To eliminate currency
exchange losses related to a 16% devaluation of the official
exchange rate in Venezuela from 5.3 to 6.3 bolivar fuertes to the
U.S. dollar in February 2013.
|
(c)
|
To eliminate employee
benefit settlement losses in Mexico.
|
(d)
|
To eliminate expenses
related to U.S. retirement plans.
|
(e)
|
To adjust effective
income tax rate in the interim period to be equal to the full-year
non-GAAP effective income tax rate. The full-year non-GAAP
effective tax rate for 2013 is 33.3%.
|
|
Amounts may not add
due to rounding.
|
14
The Brink's
Company and subsidiaries
|
Non-GAAP Results
Reconciled to GAAP (Unaudited)
|
(In millions,
except for per share amounts)
|
|
|
|
GAAP Basis
|
|
Gains and Losses on
Acquisitions and Dispositions
(a)
|
|
Employee Benefit
Settlement and Severance Losses
(b)
|
|
U.S. Retirement
Plans
(c)
|
|
Tax Benefit on Change
in Health Care Funding Strategy
(d)
|
|
Adjust Income Tax
Rate
(e)
|
|
Non-GAAP
Basis
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
First Quarter
2012
|
Revenues:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Latin
America
|
$
|
386.3
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
386.3
|
|
EMEA
|
|
272.8
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
272.8
|
|
Asia
Pacific
|
|
33.8
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
33.8
|
|
|
International
|
|
692.9
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
692.9
|
|
North
America
|
|
224.2
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
224.2
|
|
|
Revenues
|
$
|
917.1
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
917.1
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating
profit:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
International
|
$
|
67.1
|
|
-
|
|
0.8
|
|
-
|
|
-
|
|
-
|
|
67.9
|
|
North
America
|
|
6.0
|
|
-
|
|
-
|
|
2.2
|
|
-
|
|
-
|
|
8.2
|
|
|
Segment operating
profit
|
|
73.1
|
|
-
|
|
0.8
|
|
2.2
|
|
-
|
|
-
|
|
76.1
|
|
Non-segment
|
|
(24.3)
|
|
-
|
|
-
|
|
14.7
|
|
-
|
|
-
|
|
(9.6)
|
|
|
Operating
profit
|
$
|
48.8
|
|
-
|
|
0.8
|
|
16.9
|
|
-
|
|
-
|
|
66.5
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Amounts
attributable to Brink's:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income from
continuing operations
|
$
|
22.5
|
|
(1.2)
|
|
0.6
|
|
10.2
|
|
-
|
|
1.1
|
|
33.2
|
Diluted EPS –
continuing operations
|
|
0.47
|
|
(0.02)
|
|
0.01
|
|
0.21
|
|
-
|
|
0.02
|
|
0.69
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Second Quarter
2012
|
Revenues:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Latin
America
|
$
|
375.9
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
375.9
|
|
EMEA
|
|
281.4
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
281.4
|
|
Asia
Pacific
|
|
33.1
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
33.1
|
|
|
International
|
|
690.4
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
690.4
|
|
North
America
|
|
224.2
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
224.2
|
|
|
Revenues
|
$
|
914.6
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
914.6
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating
profit:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
International
|
$
|
41.5
|
|
-
|
|
0.3
|
|
-
|
|
-
|
|
-
|
|
41.8
|
|
North
America
|
|
10.6
|
|
-
|
|
-
|
|
2.2
|
|
-
|
|
-
|
|
12.8
|
|
|
Segment operating
profit
|
|
52.1
|
|
-
|
|
0.3
|
|
2.2
|
|
-
|
|
-
|
|
54.6
|
|
Non-segment
|
|
(21.3)
|
|
(0.9)
|
|
-
|
|
10.5
|
|
-
|
|
-
|
|
(11.7)
|
|
|
Operating
profit
|
$
|
30.8
|
|
(0.9)
|
|
0.3
|
|
12.7
|
|
-
|
|
-
|
|
42.9
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Amounts
attributable to Brink's:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income from
continuing operations
|
$
|
33.6
|
|
(0.9)
|
|
0.2
|
|
7.6
|
|
(20.9)
|
|
3.1
|
|
22.7
|
Diluted EPS –
continuing operations
|
|
0.69
|
|
(0.02)
|
|
-
|
|
0.16
|
|
(0.43)
|
|
0.06
|
|
0.47
|
|
See page 17 for
notes.
|
15
The Brink's
Company and subsidiaries
|
Non-GAAP Results
Reconciled to GAAP (Unaudited)
|
(In millions,
except for per share amounts)
|
|
|
|
GAAP Basis
|
|
Gains and Losses on
Acquisitions and Dispositions
(a)
|
|
Employee Benefit
Settlement and Severance Losses
(b)
|
|
U.S. Retirement
Plans
(c)
|
|
Tax Benefit on Change
in Health Care Funding Strategy
(d)
|
|
Adjust Income Tax
Rate
(e)
|
|
Non-GAAP
Basis
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Third Quarter
2012
|
Revenues:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Latin
America
|
$
|
385.2
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
385.2
|
|
EMEA
|
|
286.0
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
286.0
|
|
Asia
Pacific
|
|
33.7
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
33.7
|
|
|
International
|
|
704.9
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
704.9
|
|
North
America
|
|
221.3
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
221.3
|
|
|
Revenues
|
$
|
926.2
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
926.2
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating
profit:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
International
|
$
|
59.0
|
|
(7.2)
|
|
2.0
|
|
-
|
|
-
|
|
-
|
|
53.8
|
|
North
America
|
|
8.0
|
|
-
|
|
-
|
|
2.2
|
|
-
|
|
-
|
|
10.2
|
|
|
Segment operating
profit
|
|
67.0
|
|
(7.2)
|
|
2.0
|
|
2.2
|
|
-
|
|
-
|
|
64.0
|
|
Non-segment
|
|
(22.0)
|
|
0.1
|
|
-
|
|
11.5
|
|
-
|
|
-
|
|
(10.4)
|
|
|
Operating
profit
|
$
|
45.0
|
|
(7.1)
|
|
2.0
|
|
13.7
|
|
-
|
|
-
|
|
53.6
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Amounts
attributable to Brink's:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income from
continuing operations
|
$
|
21.1
|
|
(3.0)
|
|
1.4
|
|
8.2
|
|
-
|
|
-
|
|
27.7
|
Diluted EPS –
continuing operations
|
|
0.43
|
|
(0.06)
|
|
0.03
|
|
0.17
|
|
-
|
|
-
|
|
0.57
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Fourth Quarter
2012
|
Revenues:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Latin
America
|
$
|
432.0
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
432.0
|
|
EMEA
|
|
285.7
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
285.7
|
|
Asia
Pacific
|
|
35.8
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
35.8
|
|
|
International
|
|
753.5
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
753.5
|
|
North
America
|
|
223.6
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
223.6
|
|
|
Revenues
|
$
|
977.1
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
977.1
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating
profit:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
International
|
$
|
64.4
|
|
(1.3)
|
|
0.8
|
|
-
|
|
-
|
|
-
|
|
63.9
|
|
North
America
|
|
7.3
|
|
-
|
|
-
|
|
2.2
|
|
-
|
|
-
|
|
9.5
|
|
|
Segment operating
profit
|
|
71.7
|
|
(1.3)
|
|
0.8
|
|
2.2
|
|
-
|
|
-
|
|
73.4
|
|
Non-segment
|
|
(21.3)
|
|
-
|
|
-
|
|
10.7
|
|
-
|
|
-
|
|
(10.6)
|
|
|
Operating
profit
|
$
|
50.4
|
|
(1.3)
|
|
0.8
|
|
12.9
|
|
-
|
|
-
|
|
62.8
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Amounts
attributable to Brink's:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income from
continuing operations
|
$
|
34.0
|
|
(8.9)
|
|
0.6
|
|
7.8
|
|
(0.2)
|
|
(4.2)
|
|
29.1
|
Diluted EPS –
continuing operations
|
|
0.70
|
|
(0.18)
|
|
0.01
|
|
0.16
|
|
-
|
|
(0.09)
|
|
0.60
|
|
See page 17 for
notes.
|
16
The Brink's
Company and subsidiaries
|
Non-GAAP Results
Reconciled to GAAP (Unaudited)
|
(In millions,
except for per share amounts)
|
|
|
|
GAAP Basis
|
|
Gains and Losses on
Acquisitions and Dispositions
(a)
|
|
Employee Benefit
Settlement and Severance Losses
(b)
|
|
U.S. Retirement
Plans
(c)
|
|
Tax Benefit on Change
in Health Care Funding Strategy
(d)
|
|
Adjust Income Tax
Rate
(e)
|
|
Non-GAAP
Basis
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Full Year
2012
|
Revenues:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Latin
America
|
$
|
1,579.4
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
1,579.4
|
|
EMEA
|
|
1,125.9
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
1,125.9
|
|
Asia
Pacific
|
|
136.4
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
136.4
|
|
|
International
|
|
2,841.7
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
2,841.7
|
|
North
America
|
|
893.3
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
893.3
|
|
|
Revenues
|
$
|
3,735.0
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
3,735.0
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating
profit:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
International
|
$
|
232.0
|
|
(8.5)
|
|
3.9
|
|
-
|
|
-
|
|
-
|
|
227.4
|
|
North
America
|
|
31.9
|
|
-
|
|
-
|
|
8.8
|
|
-
|
|
-
|
|
40.7
|
|
|
Segment operating
profit
|
|
263.9
|
|
(8.5)
|
|
3.9
|
|
8.8
|
|
-
|
|
-
|
|
268.1
|
|
Non-segment
|
|
(88.9)
|
|
(0.8)
|
|
-
|
|
47.4
|
|
-
|
|
-
|
|
(42.3)
|
|
|
Operating
profit
|
$
|
175.0
|
|
(9.3)
|
|
3.9
|
|
56.2
|
|
-
|
|
-
|
|
225.8
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Amounts
attributable to Brink's:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income from
continuing operations
|
$
|
111.2
|
|
(14.0)
|
|
2.8
|
|
33.8
|
|
(21.1)
|
|
-
|
|
112.7
|
Diluted EPS –
continuing operations
|
|
2.29
|
|
(0.29)
|
|
0.06
|
|
0.70
|
|
(0.43)
|
|
-
|
|
2.32
|
|
(a) To
eliminate:
|
- Gains related to the sale of investments in mutual fund
securities ($1.9 million in the first quarter and $0.5 million in
the third quarter). Proceeds from the sales were used to fund the
settlement of pension obligations related to our former chief
executive officer, and former chief administrative officer.
- Gains and losses related to business acquisitions and
dispositions. A $0.9 million gain was recognized in the second
quarter and a $0.1 million loss was recognized in the third
quarter. In the fourth quarter of 2012, tax expense included a
benefit of $7.5 million related to a reduction in an income tax
accrual established as part of the 2010 acquisition of subsidiaries
in Mexico, and pretax income included a $2.1 million favorable
adjustment to the local profit sharing accrual as a result of the
change in tax expectation.
- Third-quarter gain on the sale of real estate in Venezuela
($7.2 million).
|
(b)
|
To eliminate employee
benefit settlement and acquisition-related severance losses (Mexico
and Argentina). Employee termination benefits in Mexico are
accounted for under FASB ASC Topic 715, Compensation –
Retirement Benefits.
|
(c)
|
To eliminate expenses
related to U.S. retirement plans.
|
(d)
|
To eliminate tax
benefit related to change in retiree health care funding
strategy.
|
(e)
|
To adjust effective
income tax rate in the interim period to be equal to the full-year
non-GAAP effective income tax rate. The full-year non-GAAP
effective tax rate for 2012 was 36.6%.
|
|
Amounts may not add
due to rounding.
|
17
The Brink's
Company and subsidiaries
|
Other
Reconciliations to GAAP (Unaudited)
|
(In
millions)
|
|
NON-GAAP CASH
FLOWS FROM OPERATING ACTIVITIES – RECONCILED TO U.S.
GAAP
|
|
|
|
|
|
|
2013
|
|
|
2012
|
Cash flows from
operating activities – GAAP
|
$
|
201.5
|
|
$
|
250.5
|
Decrease (increase)
in certain customer obligations(a)
|
|
9.8
|
|
|
(15.7)
|
Cash outflows
(inflows) related to discontinued
operations(b)
|
|
(5.4)
|
|
|
4.9
|
|
|
|
|
|
|
|
|
Cash flows from
operating activities – Non-GAAP
|
$
|
205.9
|
|
$
|
239.7
|
|
(a)
|
To eliminate the
change in the balance of customer obligations related to cash
received and processed in certain of our secure cash logistics
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.
|
(b)
|
To eliminate cash
flows related to our discontinued operations.
|
|
Non-GAAP cash flows
from operating activities are supplemental financial measures that
are not required by, or presented in accordance with GAAP. The
purpose of the non-GAAP cash flows from operating activities is to
report financial information excluding the impact of cash received
and processed in certain of our Cash Management Services and
without cash flows from discontinued operations. Brink's believes
these measures are helpful in assessing cash flows from operations,
enable period-to-period comparability and are useful in predicting
future operating cash flows. Non-GAAP cash flows from operating
activities 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.
|
NET DEBT –
RECONCILED TO U.S. GAAP
|
|
December
31,
|
|
|
2013
|
|
|
2012
|
Debt:
|
|
|
|
|
|
|
Short-term
debt
|
$
|
80.9
|
|
$
|
26.7
|
|
Long-term
debt
|
|
355.1
|
|
|
362.6
|
|
|
Total Debt
|
|
436.0
|
|
|
389.3
|
Less:
|
|
|
|
|
|
|
Cash and cash
equivalents
|
|
255.5
|
|
|
201.7
|
|
Amounts held by Cash
Management Services operations(a)
|
|
(31.3)
|
|
|
(44.0)
|
|
|
Cash and cash
equivalents available for general corporate purposes
|
|
224.2
|
|
|
157.7
|
|
|
|
|
|
|
|
|
|
|
Net Debt
|
$
|
211.8
|
|
$
|
231.6
|
|
(a)
|
Title to cash
received and processed in certain of our secure cash logistics
operations 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 and in our
computation of Net Debt.
|
|
Net Debt is a
supplemental financial measure that is not required by, or
presented in accordance with GAAP. We use Net Debt as a measure of
our financial leverage. We believe that investors also may find Net
Debt to be helpful in evaluating our financial leverage. Net Debt
should not be considered as an alternative to Debt determined in
accordance with GAAP and should be reviewed in conjunction with our
consolidated balance sheets. Set forth above is a reconciliation of
Net Debt, a non-GAAP financial measure, to Debt, which is the most
directly comparable financial measure calculated and reported in
accordance with GAAP. Net Debt excluding cash and debt in
Venezuelan operations was $306 million at December 31, 2013, and
$280 million at December 31, 2012.
|
18
The Brink's
Company and subsidiaries
|
Other
Reconciliations to GAAP (Unaudited)
|
(In
millions)
|
|
DISCOUNTED CASH
FLOWS AT PLAN DISCOUNT RATES – RECONCILED TO U.S.
GAAP
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
December 31,
2013
|
|
|
|
|
Primary U.S. pension
plan
(b)
|
|
UMWA plans
(c)
|
|
Other unfunded U.S.
plans
|
|
Total
|
|
|
|
|
|
|
|
|
|
|
|
|
Funded status of U.S.
retirement plans – GAAP
|
$
|
113
|
|
142
|
|
55
|
|
310
|
|
Present value of
projected earnings of plan assets(a)
|
|
(16)
|
|
(77)
|
|
-
|
|
(93)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Discounted cash flows
at plan discount rates – Non-GAAP
|
$
|
97
|
|
65
|
|
55
|
|
217
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Plan discount
rate
|
|
5.00%
|
|
4.70%
|
|
|
|
|
|
|
Expected return of
assets
|
|
8.00%
|
|
8.25%
|
|
|
|
|
|
(a)
|
Under GAAP, the
funded status of a benefit plan is reduced by the fair market value
of plan assets at the balance sheet date, and the present value of
the projected earnings on plan assets does not reduce the funded
status at the balance sheet date. The non-GAAP measure presented
above additionally reduces the funded status as computed under GAAP
by the present value of projected earnings of plan assets using the
expected return on asset assumptions of the respective
plan.
|
(b)
|
For the primary U.S.
pension plan, we are required by ERISA regulations to maintain
minimum funding levels, and as a result, we estimate we will be
required to make minimum required contributions from 2014 to 2018.
We have estimated that we will achieve the required funded ratio
after the 2018 contribution.
|
(c)
|
There are no minimum
funding requirements for the UMWA plans because they are not
covered by ERISA funding regulations. Using assumptions at the end
of 2013, we project that the plan assets plus expected earnings on
those investments will cover the benefit payments for these plans
until 2033. We project that Brink's will be required to contribute
cash to the plan beginning in 2033 to pay beneficiaries.
|
|
Discounted cash flows
at plan discount rates are supplemental financial measures that are
not required by, or presented in accordance with GAAP. The purpose
of the discounted cash flows at plan discount rate is to present
our retirement obligations after giving effect to the benefit of
earning a return on plan assets. We believe this measure is helpful
in assessing the present value of future funding requirements of
the company in order to meet plan benefit obligations. Discounted
cash flows at plan discount rates should not be considered as an
alternative to the funded status of the U.S. retirement plans at
December 31, 2013, as determined in accordance with GAAP and should
be read in conjunction with our consolidated balance
sheets.
|
# # #
19
SOURCE The Brink's Company