UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549


FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the
Securities Exchange Act of 1934

Date of Report (Date of Earliest Event Reported): July 30, 2015
THE BRINK’S COMPANY
(Exact name of registrant as specified in its charter)
Virginia
001-09148
54-1317776
(State or other jurisdiction of incorporation)
(Commission File Number)
(IRS Employer Identification No.)

1801 Bayberry Court
P. O. Box 18100
Richmond, VA 23226-8100
(Address and zip code of
principal executive offices)

Registrant’s telephone number, including area code: (804) 289-9600


Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2.):

[ ]
 
Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
 
 
 
[ ]
 
Soliciting materials pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
 
 
 
[ ]
 
Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
 
 
 
[ ]
 
Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))






Item 2.02
Results of Operations and Financial Condition.

On July 30, 2015, The Brink’s Company issued a press release regarding its results for the second quarter ended June 30, 2015. A copy of this release is furnished as Exhibit 99.1 to this Current Report on Form 8-K.
In accordance with General Instruction B.2 of Form 8-K, the information in this Current Report on Form 8-K, including Exhibits 99.1 and 99.2, shall not be deemed “filed” for the purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), or otherwise subject to the liabilities of that section, nor shall it be deemed incorporated by reference in any filing under the Securities Act of 1933, as amended, or the Exchange Act, except as shall be expressly set forth by specific references in such a filing.
Item 7.01
Regulation FD Disclosure.

On July 30, 2015, The Brink’s Company provided slides to accompany its earnings presentation. A copy of the slides is furnished as Exhibit 99.2 hereto.

Item 9.01
Financial Statements and Exhibits.
 
 
 
 
(d)
Exhibits
 
 
 
 
 
99.1
Press Release, dated July 30, 2015, issued by The Brink’s Company
 
 
 
 
99.2
Slide presentation of The Brink’s Company


2

SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.
                  
THE BRINK’S COMPANY
(Registrant)
 
 
 
 
                  
 
 
Date: July 30, 2015
By:
/s/ Joseph W. Dziedzic
 
         
 
Joseph W. Dziedzic
 
 
 
Executive Vice President and
Chief Financial Officer
 



3

EXHIBIT INDEX

EXHIBIT
DESCRIPTION
 
 
99.1
Press Release, dated July 30, 2015, issued by The Brink’s Company
 
 
99.2
Slide presentation of The Brink’s Company


4


        
 
Exhibit 99.1
    
The Brink’s Company
1801 Bayberry Court
P.O. Box 18100
Richmond, VA 23226-8100 USA
Tel. 804.289.9600
Fax 804.289.9770
    
                                

FOR IMMEDIATE RELEASE
Contact:
Investor Relations
804.289.9709    

Brink’s Reports Second-Quarter Results, Reaffirms 2015 EPS Guidance
Non-GAAP EPS $.27 vs $.16
GAAP EPS Loss $(.26) vs $.02
Non-GAAP Profit Growth Driven by Global Cost Reductions, Latin America Results

RICHMOND, Va., July 30, 2015 – The Brink’s Company (NYSE: BCO), a global leader in security-related services, today reported second-quarter earnings.
Second-Quarter Highlights
•
GAAP: Revenue down 11% on currency translation (6% organic growth); operating margin (1.9)%
•
GAAP operating loss due primarily to Venezuela non-cash impairment charge of $35 million
•
Non-GAAP: Revenue down 11% on currency translation (3% organic growth); operating margin 4.1%
•
Largest 5 Markets (U.S., France, Mexico, Brazil, Canada): Profits up 25% due to improvement in Mexico, France, U.S.; lower profits in Brazil
•
Global Markets (Latin America, EMEA, Asia): Profits up 20% due mainly to growth in Argentina
•
Negative currency translation reduced revenue by $118 million, operating profit by $6 million and earnings by $.07 per share
Tom Schievelbein, chairman, president and chief executive officer, said: “Despite persistent currency headwinds, second-quarter non-GAAP earnings came in well above year-ago results. The reorganization and restructuring activities that we began executing late in 2014 were a major contributor, and we remain on track to deliver $45 million to $50 million of year-over-year cost savings related to these activities. Our full-year EPS outlook has not changed. We expect 2015 non-GAAP earnings to be in a range between $1.55 and $1.75 per share. Based on continued currency pressure and year-to-date organic growth of 3%, our full-year revenue outlook has been reduced from $3.1 billion to approximately $3.0 billion.”


Summary of Second-Quarter and First Half Results(a)  
 
 
Second Quarter
 
First Half
 
(In millions, except for per share amounts)
2015
 
2014
 
% Change
 
2015
 
2014
 
% Change
 
 
 
 
 
 
 
 
 
 
 
 
 
 
GAAP
 
 
 
 
 
 
 
 
 
 
 
 
Revenues
$
760

 
859

 
(11
)
 
$
1,536

 
1,809

 
(15
)
 
Operating profit (loss)
(15
)
 
9

 
unfav

 
(2
)
 
(65
)
 
(97
)
 
Income (loss) from continuing operations(b)
(13
)
 
1

 
unfav

 
(14
)
 
(58
)
 
(77
)
 
Diluted EPS from continuing operations(b)
(0.26
)
 
0.02

 
unfav

 
(0.28
)
 
(1.19
)
 
(76
)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Non-GAAP
 
 
 
 
 
 
 
 
 
 
 
 
Non-GAAP revenues
$
748

 
837

 
(11
)
 
$
1,504

 
1,655

 
(9
)
 
Non-GAAP operating profit
31

 
24

 
28

 
71

 
45

 
59

 
Non-GAAP income from continuing operations(b)
14

 
8

 
67

 
34

 
15

 
fav

 
Non-GAAP diluted EPS from continuing operations(b)
0.27

 
0.16

 
69

 
0.68

 
0.31

 
fav

 

Summary Reconciliation of Second Quarter GAAP to Non-GAAP EPS(a)  
 
 
Second Quarter
 
First Half
 
 
2015
 
2014
 
2015
 
2014
 
GAAP EPS
$
(0.26
)
 
$
0.02

 
$
(0.28
)
 
$
(1.19
)
 
FX devaluation in Venezuela
0.10

 
0.12

 
0.35

 
1.66

 
Venezuela operations(c)
(0.02
)
 
(0.02
)
 
(0.05
)
 
(0.40
)
 
Venezuela impairment(d)
0.42

 
—

 
0.42

 
—

 
2014 Reorganization and Restructuring costs(e)
(0.02
)
 
—

 
—

 
—

 
Mexican settlement losses
0.02

 
0.01

 
0.04

 
0.03

 
U.S. retirement plans
0.08

 
0.05

 
0.17

 
0.12

 
Acquisitions and dispositions
(0.01
)
 
(0.02
)
 
(0.01
)
 
(0.05
)
 
Share-based compensation adjustment
—

 
0.07

 
—

 
0.07

 
Income tax rate adjustment(f)
(0.04
)
 
(0.06
)
 
0.02

 
0.07

 
Non-GAAP EPS
$
0.27

 
$
0.16

 
$
0.68

 
$
0.31

 
Amounts may not add due to rounding.

(a)
Non-GAAP results are reconciled to the applicable GAAP results on page 14-15.
(b)
Amounts reported are attributable to shareholders of The Brink’s Company and exclude earnings related to noncontrolling interests.
(c)
Given the inability to repatriate cash, hyperinflation, fixed exchange rate policy, continued currency devaluations, and the difficulty raising prices and controlling costs, beginning in the first quarter 2015, our non-GAAP results exclude Venezuela operations. Management believes excluding Venezuela enables investors to more effectively evaluate the company’s performance between periods.
(d)
In the second quarter of 2015, Brink’s elected to evaluate and pursue strategic options for the Venezuela business. As a result, we performed an impairment analysis and wrote down the book value of Venezuela property, plant and equipment to our best estimate of current fair value.
(e)
Brink’s reorganized and restructured its business in December 2014 and recognized severance costs of $21.8 million associated with these actions in 2014. Additional charges of $0.3 million were recognized in the first half of 2015. See page 12 for more details.
(f)
The effective income tax rate in the interim period is adjusted to be equal to the estimated full-year non-GAAP effective income tax rate. The full-year non-GAAP effective tax rate is estimated to be 42.0% for 2015 and was 45.7% for 2014.


2



The Brink’s Company and subsidiaries
(In millions) (Unaudited)

Second-Quarter 2015 vs. 2014
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Organic
 
Acquisitions /
 
Currency
 
 
 
% Change
 
 
2Q'14
 
Change
 
Dispositions (a)
 
(b)
 
2Q'15
 
Total
 
Organic
 
Revenues:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
U.S.
$
180

 
4

 
—

 
—

 
184

 
2

 
2

 
France
133

 
—

 
—

 
(26
)
 
107

 
(19
)
 
—

 
Mexico
98

 
2

 
—

 
(15
)
 
85

 
(13
)
 
2

 
Brazil
92

 
2

 
—

 
(26
)
 
68

 
(26
)
 
3

 
Canada
45

 
(1
)
 
—

 
(5
)
 
40

 
(13
)
 
(1
)
 
Largest 5 Markets
548

 
8

 
—

 
(72
)
 
484

 
(12
)
 
1

 
Latin America
93

 
13

 
—

 
(15
)
 
91

 
(2
)
 
14

 
EMEA
138

 
(4
)
 
—

 
(22
)
 
112

 
(18
)
 
(3
)
 
Asia
34

 
4

 
3

 
(3
)
 
39

 
14

 
13

 
Global Markets
265

 
13

 
3

 
(39
)
 
242

 
(9
)
 
5

 
Payment Services
24

 
6

 
—

 
(7
)
 
22

 
(7
)
 
23

 
Revenues - non-GAAP
837

 
27

 
3

 
(118
)
 
748

 
(11
)
 
3

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Other items not allocated to segments(d)
22

 
26

 
—

 
(36
)
 
12

 
(45
)
 
fav

 
Revenues - GAAP
$
859

 
53

 
3

 
(154
)
 
760

 
(11
)
 
6

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Operating profit:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
U.S.
$
6

 
1

 
—

 
—

 
6

 
8

 
8

 
France
5

 
3

 
—

 
(2
)
 
7

 
37

 
69

 
Mexico
(1
)
 
6

 
—

 
(1
)
 
5

 
fav

 
fav

 
Brazil
5

 
(3
)
 
—

 
(1
)
 
2

 
(61
)
 
(46
)
 
Canada
2

 
—

 
—

 
—

 
2

 
—

 
13

 
Largest 5 Markets
18

 
8

 
—

 
(4
)
 
22

 
25

 
45

 
Latin America
11

 
10

 
—

 
(2
)
 
19

 
68

 
86

 
EMEA
12

 
(2
)
 
—

 
(1
)
 
9

 
(24
)
 
(16
)
 
Asia
5

 
1

 
1

 
—

 
6

 
16

 
10

 
Global Markets
29

 
8

 
1

 
(3
)
 
34

 
20

 
29

 
Payment Services
(1
)
 
(2
)
 
—

 
—

 
(4
)
 
unfav

 
unfav

 
Corporate items(c)
(21
)
 
(2
)
 
—

 
1

 
(22
)
 
5

 
11

 
Operating profit - non-GAAP
24

 
12

 
1

 
(6
)
 
31

 
28

 
50

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Other items not allocated to segments(d)
(15
)
 
(32
)
 
(1
)
 
3

 
(45
)
 
unfav

 
unfav

 
Operating profit (loss) - GAAP
$
9

 
(20
)
 
—

 
(3
)
 
(15
)
 
unfav

 
unfav

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Amounts may not add due to rounding.

(a)
Includes operating results and gains/losses on acquisitions, sales and exits of businesses. The 2014 divestiture of an equity interest in a business in Peru is included in “Other items not allocated to segments”.
(b)
The “Currency” amount is the sum of the “monthly currency changes” adjusted for any additional expense recorded under highly inflationary accounting rules. The “monthly currency change” is equal to the Revenues 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. Venezuela is translated to the U.S. dollar under highly inflationary accounting rules. Net monetary assets in local currency are remeasured to U.S. dollars using current exchange rates with losses recognized in earnings. Nonmonetary assets under these rules are not remeasured to a lower basis in U.S. dollars when the currency devalues. Instead, these assets retain their higher U.S. dollar historical bases and the excess basis is recognized in earnings as each asset is consumed. Both of these effects are included in “Currency” in the “Other items not allocated to segments” line to reconcile to the GAAP amounts.
(c)
Corporate expenses are not allocated to segment results. Corporate expenses include salaries and other costs to manage the global business and to perform activities required by public companies.
(d)
See pages 12 and 13 for more information.


3


The Brink’s Company and subsidiaries
(In millions) (Unaudited)
  
First Half 2015 vs. 2014
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Organic
 
Acquisitions /
 
Currency
 
 
 
% Change
 
 
YTD '14
 
Change
 
Dispositions (a)
 
(b)
 
YTD '15
 
Total
 
Organic
 
Revenues:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
U.S.
$
356

 
12

 
—

 
—

 
368

 
3

 
3

 
France
262

 
—

 
—

 
(49
)
 
213

 
(19
)
 
—

 
Mexico
198

 
(1
)
 
—

 
(26
)
 
171

 
(14
)
 
(1
)
 
Brazil
178

 
6

 
—

 
(42
)
 
142

 
(20
)
 
3

 
Canada
90

 
(1
)
 
—

 
(10
)
 
78

 
(13
)
 
(1
)
 
Largest 5 Markets
1,084

 
15

 
—

 
(127
)
 
972

 
(10
)
 
1

 
Latin America
184

 
27

 
—

 
(29
)
 
182

 
(1
)
 
15

 
EMEA
274

 
(4
)
 
—

 
(42
)
 
228

 
(17
)
 
(1
)
 
Asia
67

 
9

 
6

 
(4
)
 
77

 
15

 
13

 
Global Markets
525

 
32

 
6

 
(76
)
 
487

 
(7
)
 
6

 
Payment Services
46

 
10

 
—

 
(12
)
 
45

 
(2
)
 
23

 
Revenues - non-GAAP
1,655

 
57

 
6

 
(214
)
 
1,504

 
(9
)
 
3

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Other items not allocated to segments(d)
154

 
148

 
—

 
(269
)
 
33

 
(79
)
 
96

 
Revenues - GAAP
$
1,809

 
206

 
6

 
(483
)
 
1,536

 
(15
)
 
11

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Operating profit:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
U.S.
$
7

 
8

 
—

 
—

 
15

 
fav

 
fav

 
France
12

 
2

 
—

 
(3
)
 
11

 
(6
)
 
17

 
Mexico
3

 
12

 
—

 
(2
)
 
12

 
fav

 
fav

 
Brazil
15

 
(5
)
 
—

 
(2
)
 
8

 
(46
)
 
(31
)
 
Canada
5

 
—

 
—

 
(1
)
 
4

 
(13
)
 
(2
)
 
Largest 5 Markets
41

 
16

 
—

 
(7
)
 
50

 
22

 
39

 
Latin America
22

 
18

 
—

 
(3
)
 
36

 
66

 
81

 
EMEA
21

 
(3
)
 
—

 
(1
)
 
17

 
(18
)
 
(12
)
 
Asia
10

 
2

 
1

 
(1
)
 
12

 
20

 
18

 
Global Markets
53

 
17

 
1

 
(5
)
 
65

 
23

 
32

 
Payment Services
(1
)
 
(2
)
 
—

 
(1
)
 
(3
)
 
unfav

 
unfav

 
Corporate items(c)
(49
)
 
12

 
—

 
(4
)
 
(41
)
 
(16
)
 
(24
)
 
Operating profit - non-GAAP
45

 
43

 
1

 
(17
)
 
71

 
59

 
95

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Other items not allocated to segments(d)
(110
)
 
(59
)
 
(2
)
 
98

 
(73
)
 
(34
)
 
54

 
Operating profit (loss) - GAAP
$
(65
)
 
(17
)
 
(1
)
 
82

 
(2
)
 
(97
)
 
26

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Amounts may not add due to rounding.

See page 3 for footnote explanations.


4

Corporate Expenses
Second quarter corporate expenses totaled $22 million, up slightly over last year. Corporate expenses include former non-segment and regional management costs, currency transaction gains and losses, and costs related to global initiatives.
Capital Expenditures and Capital Leases
Through June 30, capital expenditures and capital lease additions were $41 million compared to $58 million in 2014. Full-year 2015 expenditures are expected to total $140 million to $150 million.
Venezuela Impairment Charge
During the second quarter, the company wrote down the book value of Venezuela property, plant and equipment to $4 million (management’s current valuation estimate), resulting in a second-quarter pretax charge of $35 million ($.42 per share after taxes).  This charge was not allocated to segment results and is excluded from non-GAAP results. The company previously recorded reductions in equity of $112 million due to cumulative Venezuela currency devaluations that, under certain circumstances, would result in a non-cash charge to GAAP earnings.
Income Taxes
On a GAAP basis, the second-quarter tax expense was $8 million (effective rate of negative 40%) versus $4 million (effective rate of 121%) in 2014. The tax rate in 2015 was affected by the large non-deductible Venezuela impairment charge recorded in the second quarter.  As a result of the non-deductible Venezuela impairment and remeasurement charges, the full-year GAAP effective tax rate is expected to be in excess of 100%.  Non-GAAP earnings for the second quarter reflect an effective tax rate of 42%, which is the full-year estimated non-GAAP effective tax rate. 
Investor Day
Brink's plans to host an Investor Day meeting on October 6 in New York City. Additional details, including webcast information, will be provided in early September.
Conference Call
Brink’s will host a conference call on July 30 at 11:00 a.m. Eastern Time to review second-quarter results.  Interested parties can listen by calling 888-349-0094 (in the U.S.) or 412-902-0124 (international) Participants should call in at least five minutes prior to the start of the call. Participants can pre-register at http://dpregister.com/10068957 to receive a direct dial-in number for the call. The call also will be accessible via live webcast at www.Brinks.com. A replay of the call will be available through August 31, 2015, at 877-344-7529 (in the U.S.) or (412) 317-0088 (international). The conference number is 10068957. 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.

5


Forward-Looking Statements

This release contains forward-looking information. Words such as "anticipate," "assume," "estimate," "expect," “target” "project," "predict," "intend," "plan," "believe," "potential," "may," "should" and similar expressions may identify forward-looking information. Forward-looking information in this report includes, but is not limited to: 2015 non-GAAP outlook, including revenues, operating profit, margin rate, earnings per share, capital expenditures and tax rate, and possible future charges to GAAP earnings. Forward-looking information in this document is subject to known and unknown risks, uncertainties and contingencies, which are difficult to predict or quantify, and which could cause actual results, performance or achievements to differ materially from those that are anticipated. These risks, uncertainties and contingencies, many of which are beyond our control, include, but are not limited to:

•
our ability to improve profitability in our largest five markets;
•
our ability to identify and execute further cost and operational improvements and efficiencies in our core businesses;
•
continuing market volatility and commodity price fluctuations and their impact on the demand for our services;
•
our ability to maintain or improve volumes at favorable pricing levels and increase cost and productivity efficiencies, particularly in the United States and Mexico;
•
investments in information technology and adjacent businesses and their impact on revenue and profit growth;
•
our ability to develop and implement solutions for our customers and gain market acceptance of those solutions;
•
our ability to maintain an effective IT infrastructure and safeguard confidential information;
•
risks customarily associated with operating in foreign countries including changing labor and economic conditions, currency restrictions and devaluations, safety and security issues, political instability, restrictions on 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;
•
regulatory and labor issues in many of our global operations, including negotiations with organized labor and the possibility of work stoppages;
•
our ability to integrate successfully recently acquired companies and improve their operating profit margins;
•
costs related to dispositions and market exits;
•
our ability to identify evaluate and pursue acquisitions and other strategic opportunities, including those in the home security industry and emerging markets;
•
the willingness of our customers to absorb fuel surcharges and other future price increases;
•
our ability to obtain necessary information technology and other services at favorable pricing levels from third party service providers;
•
variations in costs or expenses and performance delays of any public or private sector supplier, service provider or customer;
•
our ability to obtain appropriate insurance coverage, positions taken by insurers with respect to claims made and the financial condition of insurers, safety and security performance, our loss experience, and changes in insurance costs;
•
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, including black lung claims incidence;
•
the impact of the Patient Protection and Affordable Care Act on UMWA and black lung liability and the Company's ongoing operations;
•
changes to estimated liabilities and assets in actuarial assumptions due to payments made, investment returns, interest rates and annual actuarial revaluations, the funding requirements, accounting

6

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 interpretation of existing regulations.
 
This list of risks, uncertainties and contingencies is not intended to be exhaustive. Additional factors that could cause our results to differ materially from those described in the forward-looking statements can be found under "Risk Factors" in Item 1A of our Annual Report on Form 10-K for the period ended December 31, 2014, 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.


7

The Brink’s Company and subsidiaries
Outlook Summary (Unaudited)
(In millions except as noted)

 
 
2014
GAAP
 
2014
Non-GAAP(a)
 
2015
Non-GAAP
Outlook(c)
 
% Change
Revenues(a)
$
3,562

 
3,351

 
~3,000

 
 
Operating profit (loss)(a)
(28
)
 
124

 
165 – 180

 
 
Nonoperating expense
(22
)
 
(22
)
 
(19
)
 
 
Provision for income taxes(a)
(37
)
 
(47
)
 
(61) – (68)

 
 
Noncontrolling interests(a)
31

 
(6
)
 
(8
)
 
 
Income (loss) from continuing operations(a)(b)
(55
)
 
49

 
77 – 86

 
 
EPS from continuing operations(a)(b)
$
(1.12
)
 
1.01

 
1.55 – 1.75

 
 
 
 
 
 
 
 
 
 
Key Metrics
 
 
 
 
 
 
 
Revenues Change
 
 
 
 
 
 
 
Organic
 
 
 
 
75

 
2%
Currency
 
 
 
 
(425
)
 
(13)%
Total
 
 
 
 
(350
)
 
(11)%
 
 
 
 
 
 
 
 
Operating profit margin
(0.8
)%
 
3.7
%
 
5.5% – 6.0%

 
 
 
 
 
 
 
 
 
 
Effective income tax rate(a)
(74.9
)%
 
45.7
%
 
42.0
%
 
 
 
 
 
 
 
 
 
 
Fixed assets acquired(d)
 
 
 
 
 
 
 
Capital expenditures
$
136

 
 
 
120 – 130

 
 
Capital leases(e)
12

 
 
 
20

 
 
Total
$
148

 
 
 
140 – 150

 
 
 
 
 
 
 
 
 
 
Depreciation and amortization(d)
$
162

 
 
 
145

 
 

Amounts may not add due to rounding

(a)
See pages 14 and 15 for reconciliation to GAAP.
(b)
Attributable to Brink’s.
(c)
The consolidated 2015 non-GAAP outlook is not reconciled to GAAP because we are unable to quantify certain amounts that would be required to be included in the GAAP measure without unreasonable effort.
(d)
Fixed assets acquired and depreciation and amortization are on a GAAP basis.
(e)
Includes capital leases for newly acquired assets only.


8


The Brink’s Company and subsidiaries
Condensed Consolidated Statements of Income (Loss) (Unaudited)
(In millions, except for per share amounts)
 

 
Second Quarter
 
First Half
 
2015
 
2014
 
2015
 
2014
 
 
 
 
 
 
 
 
Revenues
$
760.3

 
859.0

 
$
1,536.4

 
1,808.6

 
 
 
 
 
 
 
 
Costs and expenses:
 

 
 

 
 
 
 
Cost of revenues
620.9

 
718.9

 
1,250.0

 
1,478.6

Selling, general and administrative expenses
120.0

 
130.8

 
232.3

 
271.3

Total costs and expenses
740.9

 
849.7

 
1,482.3

 
1,749.9

Other operating expense
(34.0
)
 
(0.6
)
 
(55.8
)
 
(123.7
)
 
 
 
 
 
 
 
 
Operating profit (loss)
(14.6
)
 
8.7

 
(1.7
)
 
(65.0
)
 
 
 
 
 
 
 
 
Interest expense
(4.7
)
 
(5.9
)
 
(9.6
)
 
(11.7
)
Interest and other income (expense)
0.4

 
0.6

 
0.8

 
0.6

Income (loss) from continuing operations before tax
(18.9
)
 
3.4

 
(10.5
)
 
(76.1
)
Provision for income taxes
7.6

 
4.1

 
23.1

 
12.8

 
 
 
 
 
 
 
 
Loss from continuing operations
(26.5
)
 
(0.7
)
 
(33.6
)
 
(88.9
)
 
 
 
 
 
 
 
 
Income (loss) from discontinued operations, net of tax
0.1

 
0.7

 
(2.3
)
 
1.2

 
 
 
 
 
 
 
 
Net loss
(26.4
)
 
—

 
(35.9
)
 
(87.7
)
Less net loss attributable to noncontrolling interests
(13.5
)
 
(1.6
)
 
(20.0
)
 
(30.8
)
 
 
 
 
 
 
 
 
Net income (loss) attributable to Brink’s
$
(12.9
)
 
1.6

 
$
(15.9
)
 
(56.9
)
 
 
 
 
 
 
 
 
Amounts attributable to Brink’s:
 

 
 

 
 
 
 
Continuing operations
(13.0
)
 
0.9

 
(13.6
)
 
(58.1
)
Discontinued operations
0.1

 
0.7

 
(2.3
)
 
1.2

 
 
 
 
 
 
 
 
Net income (loss) attributable to Brink’s
$
(12.9
)
 
1.6

 
$
(15.9
)
 
(56.9
)
 
 
 
 
 
 
 
 
Earnings (loss) per share attributable to Brink’s common shareholders(a):
 
 
 
 
 
 
 
Basic:
 
 
 
 
 
 
 
Continuing operations
$
(0.26
)
 
0.02

 
$
(0.28
)
 
(1.19
)
Discontinued operations
—

 
0.01

 
(0.05
)
 
0.02

Net income (loss)
$
(0.26
)
 
0.03

 
$
(0.32
)
 
(1.16
)
 
 
 
 
 
 
 
 
Diluted:
 
 
 
 
 
 
 
Continuing operations
$
(0.26
)
 
0.02

 
$
(0.28
)
 
(1.19
)
Discontinued operations
—

 
0.01

 
(0.05
)
 
0.02

Net income (loss)
$
(0.26
)
 
0.03

 
$
(0.32
)
 
(1.16
)
 
 
 
 
 
 
 
 
Weighted-average shares
 
 
 
 
 
 
 
Basic
49.3

 
49.0

 
49.2

 
49.0

Diluted
49.3

 
49.4

 
49.2

 
49.0

(a)
Earnings per share may not add due to rounding.

9

The Brink’s Company and subsidiaries
Supplemental Financial Information (Unaudited)
(In millions)

Selected Cash Flow Information

 
First Half
 
2015
 
2014
 
 
 
 
Property and equipment acquired during the year
 
 
 
Capital expenditures(a)
 
 
 
Largest 5 Markets
$
22.0

 
$
32.7

Global Markets
7.3

 
12.2

Payment Services
0.7

 
0.1

Corporate items
5.2

 
11.1

Capital expenditures
35.2

 
56.1

 
 
 
 
Capital Leases(b)
 
 
 
Largest 5 Markets
6.2

 
0.2

Global Markets
—

 
—

Payment Services
—

 
1.2

Corporate items
—

 
—

Capital leases
6.2

 
1.4

 
 
 
 
Total
 
 
 
Largest 5 Markets
28.2

 
32.9

Global Markets
7.3

 
12.2

Payment Services
0.7

 
1.3

Corporate items
5.2

 
11.1

Total
$
41.4

 
$
57.5

 
 
 
 
Depreciation and amortization(a)
 
 
 
Largest 5 Markets
$
48.5

 
$
54.8

Global Markets
14.0

 
16.5

Payment Services
1.6

 
1.8

Corporate items
9.1

 
9.7

Depreciation and amortization
$
73.2

 
$
82.8

(a)
Capital expenditures as well as depreciation and amortization related to Venezuela have been excluded from Global Markets and included in Corporate.
(b)
Represents the amount of property and equipment acquired using capital leases. Because these assets are acquired without using cash, the acquisitions are not reflected in the consolidated cash flow statement. Amounts are provided here to assist in the comparison of assets acquired in the current year versus prior years.


10

The Brink’s Company and subsidiaries
Segment Results: 2014 and 2015 (Unaudited)                
(In millions, except for percentages)
 
Revenues
 
2014
 
2015
 
1Q
 
2Q
 
3Q
 
4Q
 
Full Year
 
1Q
 
2Q
 
First Half
Revenues:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
U.S.
$
175.8

 
180.3

 
181.6

 
190.1

 
727.8

 
$
183.6

 
184.1

 
367.7

France
128.8

 
133.1

 
132.7

 
122.8

 
517.4

 
105.7

 
107.4

 
213.1

Mexico
100.2

 
98.1

 
95.1

 
94.8

 
388.2

 
85.7

 
85.1

 
170.8

Brazil
86.4

 
91.5

 
95.8

 
90.4

 
364.1

 
73.8

 
67.7

 
141.5

Canada
44.4

 
45.3

 
46.0

 
44.0

 
179.7

 
38.8

 
39.6

 
78.4

Largest 5 Markets
535.6

 
548.3

 
551.2

 
542.1

 
2,177.2

 
487.6

 
483.9

 
971.5

Latin America
90.6

 
93.1

 
95.4

 
101.5

 
380.6

 
90.8

 
91.2

 
182.0

EMEA
136.9

 
137.5

 
139.1

 
142.8

 
556.3

 
115.7

 
112.3

 
228.0

Asia
33.0

 
34.0

 
36.3

 
36.5

 
139.8

 
38.7

 
38.6

 
77.3

Global Markets
260.5

 
264.6

 
270.8

 
280.8

 
1,076.7

 
245.2

 
242.1

 
487.3

Payment Services
22.2

 
23.8

 
25.4

 
25.2

 
96.6

 
22.8

 
22.1

 
44.9

Revenue - non-GAAP
818.3

 
836.7

 
847.4

 
848.1

 
3,350.5

 
755.6

 
748.1

 
1,503.7

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Other items not allocated to segments(a)
131.3

 
22.3

 
25.1

 
33.1

 
211.8

 
20.5

 
12.2

 
32.7

Revenues - GAAP
$
949.6

 
859.0

 
872.5

 
881.2

 
3,562.3

 
$
776.1

 
760.3

 
1,536.4

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Operating Profit
 
2014
 
2015
 
 
 
1Q
 
2Q
 
3Q
 
4Q
 
Full Year
 
1Q
 
2Q
 
First Half
Operating profit:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
U.S.
$
1.3

 
5.9

 
3.9

 
11.7

 
22.8

 
$
8.3

 
6.4

 
14.7

France
6.6

 
4.9

 
16.7

 
11.2

 
39.4

 
4.1

 
6.7

 
10.8

Mexico
3.7

 
(0.9
)
 
(0.4
)
 
7.2

 
9.6

 
7.9

 
4.5

 
12.4

Brazil
9.7

 
5.4

 
4.8

 
14.3

 
34.2

 
6.1

 
2.1

 
8.2

Canada
2.3

 
2.4

 
4.0

 
4.1

 
12.8

 
1.7

 
2.4

 
4.1

Largest 5 Markets
23.6

 
17.7

 
29.0

 
48.5

 
118.8

 
28.1

 
22.1

 
50.2

Latin America
10.1

 
11.4

 
10.7

 
18.2

 
50.4

 
16.5

 
19.2

 
35.7

EMEA
9.2

 
12.0

 
15.5

 
15.8

 
52.5

 
8.2

 
9.1

 
17.3

Asia
5.2

 
5.1

 
6.2

 
6.6

 
23.1

 
6.5

 
5.9

 
12.4

Global Markets
24.5

 
28.5

 
32.4

 
40.6

 
126.0

 
31.2

 
34.2

 
65.4

Payment Services
0.8

 
(1.3
)
 
(2.4
)
 
(2.0
)
 
(4.9
)
 
0.5

 
(3.7
)
 
(3.2
)
Corporate items
(28.1
)
 
(20.9
)
 
(38.2
)
 
(28.5
)
 
(115.7
)
 
(19.2
)
 
(22.0
)
 
(41.2
)
Operating profit - non-GAAP
20.8

 
24.0

 
20.8

 
58.6

 
124.2

 
40.6

 
30.6

 
71.2

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Other items not allocated to segments(a)
(94.5
)
 
(15.3
)
 
40.4

 
(82.3
)
 
(151.7
)
 
(27.7
)
 
(45.2
)
 
(72.9
)
Operating profit (loss) - GAAP
$
(73.7
)
 
8.7

 
61.2

 
(23.7
)
 
(27.5
)
 
$
12.9

 
(14.6
)
 
(1.7
)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Margin
 
2014
 
2015
 
 
 
1Q
 
2Q
 
3Q
 
4Q
 
Full Year
 
1Q
 
2Q
 
First Half
Margin:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
U.S.
0.7
 %
 
3.3


2.1


6.2


3.1


4.5
 %

3.5

 
4.0

France
5.1

 
3.7

 
12.6

 
9.1

 
7.6

 
3.9

 
6.2

 
5.1

Mexico
3.7

 
(0.9
)
 
(0.4
)
 
7.6

 
2.5

 
9.2

 
5.3

 
7.3

Brazil
11.2

 
5.9

 
5.0

 
15.8

 
9.4

 
8.3

 
3.1

 
5.8

Canada
5.2

 
5.3

 
8.7

 
9.3

 
7.1

 
4.4

 
6.1

 
5.2

Largest 5 Markets
4.4

 
3.2

 
5.3

 
8.9

 
5.5

 
5.8

 
4.6

 
5.2

Latin America
11.1

 
12.2

 
11.2

 
17.9

 
13.2

 
18.2

 
21.1

 
19.6

EMEA
6.7

 
8.7

 
11.1

 
11.1

 
9.4

 
7.1

 
8.1

 
7.6

Asia
15.8

 
15.0

 
17.1

 
18.1

 
16.5

 
16.8

 
15.3

 
16.0

Global Markets
9.4

 
10.8

 
12.0

 
14.5

 
11.7

 
12.7

 
14.1

 
13.4

Payment Services
3.6

 
(5.5
)
 
(9.4
)
 
(7.9
)
 
(5.1
)
 
2.2

 
(16.7
)
 
(7.1
)
Corporate items
(3.4
)
 
(2.5
)
 
(4.5
)
 
(3.4
)
 
(3.5
)
 
(2.5
)
 
(2.9
)
 
(2.7
)
Operating profit - non-GAAP
2.5

 
2.9

 
2.5

 
6.9

 
3.7

 
5.4

 
4.1

 
4.7

 
 
 
 
 
 
 
 
 
 
 

 
 
 
 
Other items not allocated to segments(a)
(10.3
)
 
(1.9
)
 
4.6

 
(9.6
)
 
(4.5
)
 
(3.7
)
 
(6.0
)
 
(4.8
)
Operating profit (loss) -GAAP
(7.8
)%
 
1.0

 
7.0

 
(2.7
)
 
(0.8
)
 
1.7
 %
 
(1.9
)
 
(0.1
)

(a)
See pages 12 and 13 for more information.

11

The Brink’s Company and subsidiaries
Other Items Not Allocated To Segments (Unaudited)                     
(In millions)

Brink’s measures its segment results before income and expenses for corporate activities and for certain other items. A summary of the other items not allocated to segment results is below.

Other items not allocated to segments
 
 
2014
 
2015
 
1Q
 
2Q
 
3Q
 
4Q
 
Full Year
 
1Q
 
2Q
 
First Half
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Revenues:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Venezuela operations
$
131.3

 
22.3

 
25.1

 
33.1

 
211.8

 
$
20.5

 
12.2

 
32.7

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Operating profit:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
FX devaluation in Venezuela
(123.3
)
 
(9.8
)
 
(4.8
)
 
(4.8
)
 
(142.7
)
 
(20.6
)
 
(6.0
)
 
(26.6
)
Venezuela operations
34.4

 
1.9

 
2.5

 
6.0

 
44.8

 
2.7

 
1.4

 
4.1

Venezuela impairment
—

 
—

 
—

 
—

 
—

 
—

 
(34.5
)
 
(34.5
)
2014 Reorganization and Restructuring
—

 
—

 
—

 
(21.8
)
 
(21.8
)
 
(1.5
)
 
1.2

 
(0.3
)
Mexican settlement losses
(0.8
)
 
(0.9
)
 
(2.3
)
 
(1.9
)
 
(5.9
)
 
(1.3
)
 
(1.1
)
 
(2.4
)
U.S. retirement plans
(6.0
)
 
(3.6
)
 
(3.7
)
 
(59.8
)
 
(73.1
)
 
(7.0
)
 
(6.5
)
 
(13.5
)
Acquisitions and dispositions
1.2

 
1.3

 
46.9

 
—

 
49.4

 
—

 
0.3

 
0.3

Share-based compensation adj.
—

 
(4.2
)
 
1.8

 
—

 
(2.4
)
 
—

 
—

 
—

Operating profit
$
(94.5
)
 
(15.3
)
 
40.4

 
(82.3
)
 
(151.7
)
 
$
(27.7
)
 
(45.2
)
 
(72.9
)


FX devaluation in Venezuela  The rate we use to remeasure operations in Venezuela declined significantly in February 2015 (from 52 to 170 bolivars to the U.S. dollar) and in March 2014 (from 6.3 to 50 bolivars to the U.S. dollar).  These currency devaluations resulted in losses from the remeasurement of bolivar-denominated net monetary assets.  Nonmonetary assets were not remeasured to a lower basis when the currency devalued.  Instead, under highly inflationary accounting rules, these assets retained their higher historical bases and the excess is recognized in earnings as the asset is consumed, resulting in incremental expense until the excess basis is depleted.  Expenses related to these Venezuelan devaluations have not been allocated to segment results.
Venezuela operations We have excluded from our segment results all of our Venezuela operating results, including foreign exchange devaluation discussed separately above, due to management’s inability to allocate, generate or redeploy resources in-country or globally.  In light of these unique circumstances, the Venezuela business is largely independent of the rest of our global operations.  As a result, the CODM, the Company’s Chief Executive Officer, assesses segment performance and makes resource decisions by segment excluding Venezuela operating results.  Additionally, management believes excluding Venezuela from segment results makes it possible to more effectively evaluate the company’s performance between periods.  
Factors considered by management in excluding Venezuela results include:
•
Continued inability to repatriate cash to redeploy to other operations or dividend to shareholders
•
Highly inflationary environment
•
Fixed exchange rate policy
•
Continued currency devaluations and
•
Our difficulty raising prices and controlling costs

Venezuela impairment In the second quarter of 2015, we recognized an impairment of the Venezuela property, plant and equipment.  This charge was not allocated to segment results.
2014 Reorganization and Restructuring  Brink’s reorganized and restructured its business in December 2014, eliminating the management roles and structures in its former Latin America and EMEA regions and implementing a plan to reduce the cost structure of various country operations by eliminating approximately 1,700 positions across its global workforce.  Severance costs of $21.8 million associated with these actions were recognized in 2014. Additional charges related to severance and lease terminations of $0.3 million were recognized in the first half of 2015. These amounts have not been allocated to segment results.
Mexican settlement losses Employee termination costs in Mexico are accounted for as retirement benefits under FASB ASC Topic 715, Compensation — Retirement Benefits. Settlement charges related to these termination benefits have not been allocated to segment results.


12

U.S. retirement plans Costs related to our frozen U.S. retirement plans have not been allocated to segment results. Brink’s primary U.S. pension plan settled a portion of its obligation in the fourth quarter of 2014 under a lump sum buy-out offer. Approximately 4,300 terminated participants were paid about $150 million of plan assets under this offer in lieu of receiving their pension benefit. A $56 million settlement loss was recognized as a result of the settlement.

Acquisitions and dispositions Gains and losses related to acquisitions and dispositions that have not been allocated to segment results are described below:
•
Brink’s sold an equity investment in a CIT business in Peru and recognized a $44.3 million gain in the third quarter of 2014. The gain on the sale and the equity earnings have not been allocated to segment results.
•
A favorable adjustment to the 2010 business acquisition gain for Mexico ($0.7 million in the third quarter of 2014) is not allocated to segment results.
•
A favorable adjustment to the purchase price of a third quarter 2014 business acquisition in EMEA ($0.3 million in the second quarter of 2015) is not allocated to segment results.

Share-based compensation adjustment Accounting adjustments related to share-based compensation have not been allocated to segment results ($4.2 million expense in the second quarter of 2014 and a $1.8 million benefit in the third quarter of 2014).  The accounting adjustments revised the accounting for certain share-based awards from fixed to variable fair value accounting as noted in ASC Topic 718, Stock Compensation. As of July 11, 2014, all outstanding equity awards had met the conditions for a grant date as defined in ASC Topic 718 and have since been accounted for as fixed share-based compensation expense.

  


13

The Brink’s Company and subsidiaries
Non-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 excluding income and expenses that have not been allocated to segments (except for Corporate expenses which include salaries and other costs to manage the global business and to perform activities required by public companies). Non-GAAP results also 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. Amounts reported for prior periods have been updated in this report to present information consistently for all periods presented.

Our Non-GAAP results now exclude Venezuela operations due to our inability to repatriate cash, the inflationary economy, fixed exchange rate policy, continued currency devaluations, and our difficulty raising prices and controlling costs. Management believes excluding Venezuela operating results enables investors to more effectively evaluate the Company’s performance between periods.

The annual consolidated Non-GAAP outlook amounts for 2015 on page 8 are not reconciled to GAAP because we are unable to quantify certain amounts that would be required to be included in the GAAP measures without unreasonable effort.

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. 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.

 
2014
 
2015
 
1Q
 
2Q
 
3Q
 
4Q
 
Full Year
 
1Q
 
2Q
 
First Half
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Revenues:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Non-GAAP
$
818.3

 
836.7

 
847.4

 
848.1

 
3,350.5

 
$
755.6

 
748.1

 
1,503.7

Other items not allocated to segments(a)
131.3

 
22.3

 
25.1

 
33.1

 
211.8

 
20.5

 
12.2

 
32.7

GAAP
$
949.6

 
859.0

 
872.5

 
881.2

 
3,562.3

 
$
776.1

 
760.3

 
1,536.4

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Operating profit (loss):
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Non-GAAP
$
20.8

 
24.0

 
20.8

 
58.6

 
124.2

 
$
40.6

 
30.6

 
71.2

Other items not allocated to segments(a)
(94.5
)
 
(15.3
)
 
40.4

 
(82.3
)
 
(151.7
)
 
(27.7
)
 
(45.2
)
 
(72.9
)
GAAP
$
(73.7
)
 
8.7

 
61.2

 
(23.7
)
 
(27.5
)
 
$
12.9

 
(14.6
)
 
(1.7
)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Taxes:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Non-GAAP
$
6.9

 
8.5

 
6.7

 
24.8

 
46.9

 
$
15.2

 
11.0

 
26.2

Other items not allocated to segments(a)
(3.3
)
 
(1.3
)
 
21.5

 
(27.1
)
 
(10.2
)
 
(3.9
)
 
—

 
(3.9
)
Income tax rate adjustment(b)
5.1

 
(3.1
)
 
(1.4
)
 
(0.6
)
 
—

 
4.2

 
(3.4
)
 
0.8

GAAP
$
8.7

 
4.1

 
26.8

 
(2.9
)
 
36.7

 
$
15.5

 
7.6

 
23.1

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Noncontrolling interests:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Non-GAAP
$
0.8

 
2.1

 
2.2

 
1.3

 
6.4

 
$
0.8

 
1.8

 
2.6

Other items not allocated to segments(a)
(31.3
)
 
(3.7
)
 
(1.6
)
 
(0.7
)
 
(37.3
)
 
(6.2
)
 
(16.5
)
 
(22.7
)
Income tax rate adjustment(b)
1.3

 
—

 
(1.2
)
 
(0.1
)
 
—

 
(1.1
)
 
1.2

 
0.1

GAAP
$
(29.2
)
 
(1.6
)
 
(0.6
)
 
0.5

 
(30.9
)
 
$
(6.5
)
 
(13.5
)
 
(20.0
)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Non-GAAP margin
2.5
%
 
2.9
%
 
2.5
%
 
6.9
%
 
3.7
%
 
5.4
%
 
4.1
%
 
4.7
%

(a)
See “Other Items Not Allocated To Segments” on pages 12-13 for pretax amounts and details. Other Items Not Allocated To Segments for noncontrolling interests, income from continuing operations attributable to Brink's and EPS are the effects of the same items at their respective line items of the consolidated statements of income (loss).
(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 estimated full-year non-GAAP effective tax rate is 42.0% for 2015 and was 45.7% for 2014.


14

The Brink’s Company and subsidiaries
Non-GAAP Results Reconciled to GAAP (Unaudited) - continued
(In millions, except for percentages and per share amounts)

 
2014
 
2015
 
1Q
 
2Q
 
3Q
 
4Q
 
Full Year
 
1Q
 
2Q
 
First Half
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Income from continuing operations attributable to Brink's:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Non-GAAP
$
7.3

 
8.1

 
5.7

 
28.3

 
49.4

 
$
20.1

 
13.5

 
33.6

Other items not allocated to segments(a)
(59.9
)
 
(10.3
)
 
20.5

 
(54.5
)
 
(104.2
)
 
(17.6
)
 
(28.7
)
 
(46.3
)
Income tax rate adjustment(b)
(6.4
)
 
3.1

 
2.6

 
0.7

 
—

 
(3.1
)
 
2.2

 
(0.9
)
GAAP
$
(59.0
)
 
0.9

 
28.8

 
(25.5
)
 
(54.8
)
 
$
(0.6
)
 
(13.0
)
 
(13.6
)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
EPS:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Non-GAAP
$
0.15

 
0.16

 
0.12

 
0.58

 
1.01

 
$
0.41

 
0.27

 
0.68

Other items not allocated to segments(a)
(1.23
)
 
(0.21
)
 
0.41

 
(1.12
)
 
(2.12
)
 
(0.36
)
 
(0.58
)
 
(0.93
)
Income tax rate adjustment(b)
(0.13
)
 
0.06

 
0.05

 
0.01

 
—

 
(0.06
)
 
0.04

 
(0.02
)
GAAP
$
(1.21
)
 
0.02

 
0.58

 
(0.52
)
 
(1.12
)
 
$
(0.01
)
 
(0.26
)
 
(0.28
)

Amounts may not add due to rounding.

See page 14 for footnote explanations.

15


The Brink’s Company Second Quarter 2015 Earnings Call NYSE: BCO July 30, 2015 Exhibit 99.2

 
Forward-Looking Statements These materials contain 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: 2015 non-GAAP outlook, including revenue, operating profit, margin rate and earnings per share, interest/other income, taxes, noncontrolling interests, income from continuing operations, revenue change, tax rate and capital expenditures; margin rate outlook for the U.S., and Mexico businesses; projected progress against key project goals in the U.S. and Mexico; expected 2015 results and drivers (including in specific markets); expected cost savings from 2014 Reorganization and Restructuring; and expectations regarding future cash payments to the primary U.S. pension plan and UMWA. Forward-looking information in this document is subject to known and unknown risks, uncertainties and contingencies, which are difficult to predict or quantify, and which could cause actual results, performance or achievements to differ materially from those that are anticipated. These risks, uncertainties and contingencies, many of which are beyond our control, include, but are not limited to: Our ability to improve profitability in our largest five markets; our ability to identify and execute further cost and operational improvements and efficiencies in our core businesses; continuing market volatility and commodity price fluctuations and their impact on the demand for our services; our ability to maintain or improve volumes at favorable pricing levels and increase cost and productivity efficiencies, particularly in the United States and Mexico; investments in information technology and adjacent businesses and their impact on revenue and profit growth; our ability to develop and implement solutions for our customers and gain market acceptance of those solutions; our ability to maintain an effective IT infrastructure and safeguard confidential information; risks customarily associated with operating in foreign countries including changing labor and economic conditions, currency restrictions and devaluations, safety and security issues, political instability, restrictions on 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; regulatory and labor issues in many of our global operations, including negotiations with organized labor and the possibility of work stoppages; our ability to integrate successfully recently acquired companies and improve their operating profit margins; costs related to dispositions and market exits; our ability to identify evaluate and pursue acquisitions and other strategic opportunities, including those in the home security industry and emerging markets; the willingness of our customers to absorb fuel surcharges and other future price increases; our ability to obtain necessary information technology and other services at favorable pricing levels from third party service providers; variations in costs or expenses and performance delays of any public or private sector supplier, service provider or customer; our ability to obtain appropriate insurance coverage, positions taken by insurers with respect to claims made and the financial condition of insurers, safety and security performance, our loss experience, and changes in insurance costs; 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, including black lung claims incidence; the impact of the Patient Protection and Affordable Care Act on UMWA and black lung liability and the Company's ongoing operations; changes to estimated liabilities and assets in actuarial assumptions due to payments made, investment returns, interest rates and annual actuarial revaluations, the funding requirements, accounting treatment, investment performance and costs and expenses of our pension plans, the VEBA and other employee benefits, mandatory or voluntary pension plan contributions; the nature of our hedging relationships; changes in estimates and assumptions underlying our critical accounting policies; our ability to realize deferred tax assets; the outcome of pending and future claims, litigation, and administrative proceedings; public perception of the Company's business and reputation; access to the capital and credit markets; seasonality, pricing and other competitive industry factors; and the promulgation and adoption of new accounting standards and interpretations, new government regulations and interpretation of existing regulations. This list of risks, uncertainties and contingencies is not intended to be exhaustive. Additional factors that could cause our results to differ materially from those described in the forward-looking statements can be found under "Risk Factors" in Item 1A of our Annual Report on Form 10-K for the period ended December 31, 2014, and in our other public filings with the Securities and Exchange Commission. The forward-looking information discussed today and included in these materials is representative as of today only and The Brink's Company undertakes no obligation to update any information contained in this document. These materials are copyrighted and may not be used without written permission from Brink's. 2

 
Non-GAAP Results Today’s presentation is focused primarily on non-GAAP results. Throughout the presentation, we have indicated those slides on which Non-GAAP items are presented and included a reference to the reconciliation of non-GAAP to GAAP results. Detailed reconciliations of non-GAAP to GAAP results are provided in the appendix beginning on slide 21 and on pages 14– 15 of today’s release and in our SEC filings. 3

 
CEO Overview 4 Second-Quarter 2015 Non-GAAP Results(a) • EPS $.27 versus $.16 • Revenue down 11% on negative currency translation • 3% organic revenue growth • Higher profits in Argentina, Mexico & France; lower profits in Brazil • 2015 EPS guidance reaffirmed • EPS $1.55 - $1.75 • Revenue reduced from $3.1 billion to $3.0 billion • Operating margin range increased to 5.5% - 6.0% (prior range 5.3% - 5.8%) (a) See reconciliation to GAAP results in Appendix.

 
Second Quarter 2015

 
6 Summary of 2Q15 Non-GAAP Results(a) ($ millions, except EPS) 2Q14 2Q15 $837 $748 Revenue 2Q14 2Q15 $24 $31 Operating Profit EPS 2Q14 2Q15 $0.16 $0.27 Margin 2.9% 4.1%Organic Growth 3% Currency (14%) (a) See reconciliation to GAAP results in Appendix.

 
1 2 3 4 7 Non-GAAP EPS: 2Q14 Versus 2Q15(a) Strong Operating Results Offset Currency Impact CurrencyOperations2Q14 2Q15 $0.16 $0.27 $(0.07)$0.18 (a) See reconciliation to GAAP results in Appendix.

 
Second Quarter 2015 Segment Results

 
9 ($ millions, except %) U.S. Results: On Track to Meet 2015 Targets Operating Profit Full-Year Outlook 4 - 5 % Revenue Organic Growth Margin rate 2Q15 Comments • Strong money processing and CIT volume growth partially offset by lower price • Fuel surcharge adjustments ~2% drag on revenue, minimal margin impact $176 $180 $182 $190 $184 $184 0% 1% 3% 7% 4% 2% 1Q14 2Q14 3Q14 4Q14 1Q15 2Q15 $1.3 $5.9 $3.9 $11.7 $8.3 $6.4 0.7% 3.3% 2.1% 6.2% 4.5% 3.5% 1Q14 2Q14 3Q14 4Q14 1Q15 2Q15 2Q15 Comments • On track to deliver 4% - 5% full-year margin • Cost actions and volume growth offset by incremental costs to manage new business and lower price

 
0% 25% 100% 5% 75% 100% 1H15 YE15 1H16 2H16 Prior Current 50% 100% 100% YE14 1H15 YE15 Prior Current 10 How We Achieve Our Profit Goals: Fix the U.S. 4.5% 1.8% 3.1% 4-5% 6.0% 2012 2013 2014 2015 2016 U.S. Operating Profit Margin Field Force Automation (% implemented) Deposit Imaging (% implemented) 0% 30% 100% 100% 0% 33% 75% YE14 1H15 YE15 1H16 2H16 Prior Current Route Logistics (% implemented) 26% 66% 100% 61% YE14 1H15 YE15 Prior Current Centralized Billing (% implemented) Key Projects/Actions • Route logistics • Field force automation • Centralized billing • Headcount/SG&A reductions • Deposit imaging in money processing • One-person vehicle • Overtime management Target Target TargetTargetTarget Target Target 75% TargetTarget Target

 
Organic Growth ($ millions, except %) 11 Mexico: Profits Improve Despite Revenue Decline Revenue 2Q15 Comments • Peso devaluation drives 1Q/2Q 2015 decline • Retail segment driving organic growth in 2015 2Q15 Comments • Cost actions and lower safety /security costs drive improvement • Price increases not covering wage inflation Operating Profit Full Year Outlook 6 - 8 %Margin Rate $3.7 $(0.9) $(0.4) $7.2 $7.9 $4.5 3.7% (0.9)% (0.4)% 7.6% 9.2% 5.3% 1Q14 2Q14 3Q14 4Q14 1Q15 2Q15 $100 $98 $95 $95 $86 $85 1% (8)% (7)% (4)% (3)% 2% 1Q14 2Q14 3Q14 4Q14 1Q15 2Q15

 
14% 94% 100% 1H14 YE14 1H15 Standard Branch Structure (% implemented) 0% 28% 100% 41% YE14 1H15 YE15 Prior Current 12 How We Achieve Our Profit Goals: Fix Mexico 4.5% 6.3% 2.5% 6-8% 10% 2012 2013 2014 2015 2016 Mexico Operating Profit Margin CIT & ATM Efficiencies (% implemented) 16% 37% 100% 49% YE14 1H15 YE15 Prior Current Finance Centralization % implementedKey Projects/Actions • “Standard” branch structure • CIT & ATM efficiencies • Finance centralization • Money processing turnaround • Global procurement • IT infrastructure 0% 68% 74% 100% 93% YE13 YE14 YE15 YE16 Prior Current Money Processing “Turnaround” % implemented Target Target Target Target Target Target Complete

 
$107 $6.7 Revenue Op Profit 13 2Q15 Results: France, Brazil & Canada France ($ millions) • No organic revenue growth on slight volume decline • 3Q profit historically the strongest of the year • Repositioning business to focus on customer cash supply chain Brazil • Volumes decreasing vs. 2014 • Price increase timing challenges • Wage inflation persists • 2H15 challenging Canada • Revenue decline driven by customer loss due to sale of Threshold business unit in 2013 • Operating profit flat vs prior year despite pension cost increase from lower discount rate • Expect improved 2H results from SG&A actions & some revenue gains $68 $2.1 Revenue Op Profit $40 $2.4 Revenue Op Profit Organic Growth 0% Margin 6.2% Organic Growth 3% Margin 3.1% Organic Growth (1%) Margin 6.1%

 
14 Global Markets: 2Q15 Solid Performance Despite Currency Headwinds EMEA ($ millions) • No growth environment & unfavorable currency • Continued solid margins • Expect full-year revenue decline from currency and completion of Germany guarding contract but similar margins as 2014 Latin America • Strong organic revenue growth in Argentina offset by currency • Op Profit improvement driven by Argentina Asia • Solid growth and margins across the region $112 $9.1 Revenue Op Profit $91 $19.2 Revenue Op Profit $39 $5.9 Revenue Op Profit Organic Growth (3%) Margin 8.1% Organic Growth 14% Margin 21.1% Organic Growth 13% Margin 15.3%

 
$63 $38 1H14 1H15 $58 $41 1H14 1H15 15 Cash Flow, Capital Investment and Net Debt ($ millions) Capital Expenditures and Capital Leases(b) $319 $343 12/31/14 06/30/15 Non-GAAP Net Debt(a) Non-GAAP CFOA(a) (Excluding 2014 pension payments) (a) See reconciliation to GAAP results in Appendix (b) From continuing operations

 
2015 Outlook

 
$124 $165 - $180 2014 2015 17 Summary of 2015 Non-GAAP(a) Forecast ($ millions, except EPS) Revenue Operating Profit EPS Margin 3.7% 5.5% - 6.0%Organic Growth 2% Currency (13%) $3,351 ~$3,000 2014 2015 $1.01 $1.55 – 1.75 2014 2015 OutlookOutlookOutlook (a) See reconciliation to GAAP results in Appendix

 
Start (YE 2014) FX OP YE 2015 2015 Non-GAAP EPS Outlook(a) Unchanged - Reflects Strong Operations 18 1H Actuals $0.31 0.57 (0.20) $0.68 2H Estimate 0.70 0.47 – 0.67 (0.30) 0.87 – 1.07 $1.01 1.04 – 1.24 (0.50) $1.55 – 1.75 CurrencyOperations2014 2015 Outlook $1.04 - $1.24 $(0.50) $1.01 $1.55 - $1.75 (a) See reconciliation to GAAP results in Appendix.

 
Non-GAAP 2015 EPS Outlook Unchanged 19 2015 Outlook2014 Revenue $3,351 ~$3,000 Op Profit 124 165 - 180 Interest/Other Income (22) (19) Taxes (47) (61- 68) Noncontrolling interests (6) (8) Income from continuing ops (b) 49 77 - 86 EPS Range $1.01 $1.55 – 1.75 ($ millions, except EPS) (b) Attributable to Brink’s (a) See reconciliation to GAAP results in Appendix 2015 Outlook2014 Key Metrics Revenue Change Organic $75 2% Currency (425) (13) Total $(350) (11)% Op Profit Margin 3.7% 5.5% - 6.0% Tax Rate 45.7% 42%

 
The Brink’s Company Second Quarter 2015 Earnings Call NYSE: BCO July 30, 2015

 
Appendix

 
22 ($ millions, except EPS) Brink’s Historical Non-GAAP Results (a) Operating Profit EPS $0.15 $0.16 $0.12 $0.58 $0.41 $0.27 1Q14 2Q14 3Q14 4Q14 1Q15 2Q15 $21 $24 $21 $59 $41 $31 2.5% 2.9% 2.5% 6.9% 5.4% 4.1% 1Q14 2Q14 3Q14 4Q14 1Q15 2Q15 (a) See reconciliation to GAAP results in Appendix. Margin Rate

 
$1.01 $2.35 - $2.75 $2.00 - $2.40$1.04 - $1.24 $0.30 - $0.50 $0.15 $(0.50) $- $1.00 $2.00 $3.00 $4.00 $5.00 $6.00 2014 2015 2016 Sub-Total 2015 2016 2016 Target 23 Non-GAAP EPS Outlook(a) Operations 2015 2016 Currency 2015 2016 (a) See reconciliation to GAAP results and other information in Appendix. $1.01 $1.55 - $1.75 $2.00 - $2.40$1.04 - $1.24 $0.30 - $0.50 $0.15 $(0.50) $- $0.50 $1.00 $1.50 $2.00 $2.50 $3.00 $3.50 2014 Operations Currency 2015 Target Operations Currency 2016 Target

 
New Organization Structure • 4 geographic units replaced with 2 operating units • Eliminated regional roles and structures 24 How We Achieve Our 2015 Profit Goals: $45 - $50 Million Cost Savings Expected in 2015 ($ millions) Global Headcount Reductions • Global reductions • SG&A and operations • Majority of 2015 savings implemented in 1Q15 2014 Severance Costs 2015 Savings ~$15 $3 2014 Severance Costs 2015 Savings ~$30-$35 $19

 
$219 $189 $178 $148 $140 - $150 1.7 1.3 1.1 0.9 ~1.0 0.00. 10.02. 30.04. 5 0.06. 70.08. 90.10. 1 0.12. 30.14. 50.16. 7 0.18. 90.20. 10.22. 3 0.24. 50.26. 70.28. 9 0.30. 10.32. 30.34. 5 0.36. 70.38. 90.40. 1 0.42. 30.44. 50.46. 7 0.48. 90.50. 10.52. 3 0.54. 50.56. 70.58. 9 0.60. 10.62. 30.64. 5 0.66. 70.68. 90.70. 1 0.72. 30.74. 50.76. 7 0.78. 90.80. 10.82. 3 0.84. 50.86. 70.88. 9 0.90. 10.92. 30.94. 5 0.96. 70.98. 91.00. 1 1.02. 31.04. 51.06. 7 1.08. 91.10. 11.12. 3 1.14. 51.16. 71.18. 9 1.20. 11.223. 41.25 . 61.27. 81.29.301. 1 .321. 3.341. 5.361. 7 .381. 9.401. 1.421. 3 .441. 5.461. 7.481. 9 .501. 1.521. 3.541. 5 .561. 7.581. 9.601. 1 .621. 3.641. 5.661. 7 .681. 9.70 100 150 200 250 300 2011 2012 2013 2014 2015 Target Reinvestment Ratio ($ millions) 25 Capex Spend Depreciation & Amortization $131 $159$141 $156 $145

 
Legacy Liabilities – Underfunding – at December 31, 2014 26 $(263) $(113) $(108) 2012 2013 2014 Primary U.S. Pension $(257) $(142) $(197) 2012 2013 2014 UMWA ($ millions)

 
• Prepaid 2015 and 2016 pension payments in 3Q14 − Accelerates de-risking of invested asset allocation − Reduces PBGC premiums (current borrowing costs are lower than PBGC premiums) − No future cash payments expected based on current actuarial assumptions • Lump-sum pension payments made to eligible former employees in 4Q14 − $56 million non-cash GAAP settlement loss recognized in 4Q14 − Reduced plan assets by $150 million & liability reduced slightly more • No cash payments to UMWA expected until 2032 27 Estimated Cash Payments: $0 to Primary U.S. Pension $0 to UMWA until 2032 $87 $0 $0 $0 $0 2014 2015 2016 2017 2018 Payments to Primary U.S. Pension $0 $0 $21 2014 2031 2032 Payments to UMWA through ($ millions) (and beyond)

 
28 Other Items Not Allocated to Segments FX devaluation in Venezuela The rate we use to remeasure operations in Venezuela declined significantly in February 2015 (from 52 to 170 bolivars to the U.S. dollar) and in March 2014 (from 6.3 to 50 bolivars to the U.S. dollar). These currency devaluations resulted in losses from the remeasurement of bolivar-denominated net monetary assets. Nonmonetary assets were not remeasured to a lower basis when the currency devalued. Instead, under highly inflationary accounting rules, these assets retained their higher historical bases and the excess is recognized in earnings as the asset is consumed, resulting in incremental expense until the excess basis is depleted. Expenses related to these Venezuelan devaluations have not been allocated to segment results. Venezuela operations We have excluded from our segment results all of our Venezuela operating results, including foreign exchange devaluation discussed separately above, due to management’s inability to allocate, generate or redeploy resources in-country or globally. In light of these unique circumstances, the Venezuela business is largely independent of the rest of our global operations. As a result, the CODM, the Company’s Chief Executive Officer, assesses segment performance and makes resource decisions by segment excluding Venezuela operating results. Additionally, management believes excluding Venezuela from segment results makes it possible to more effectively evaluate the company’s performance between periods. Factors considered by management in excluding Venezuela results include: • Continued inability to repatriate cash to redeploy to other operations or dividend to shareholders • Highly inflationary environment • Fixed exchange rate policy • Continued currency devaluations and • Our difficulty raising prices and controlling costs ($ millions) 1Q 2Q 3Q 4Q Full Year 1Q 2Q First Half Revenues: Venezuela operations 131.3$ 22.3 25.1 33.1 211.8 20.5$ 12.2 32.7 Operating profit: FX devaluation in Venezuela (123.3) (9.8) (4.8) (4.8) (142.7) (20.6) (6.0) (26.6) Venezuela operations 34.4 1.9 2.5 6.0 44.8 2.7 1.4 4.1 Venezuela impairment — — — — — — (34.5) (34.5) 2014 Reorganization and Restructuring — — — (21.8) (21.8) (1.5) 1.2 (0.3) Mexican settlement losses (0.8) (0.9) (2.3) (1.9) (5.9) (1.3) (1.1) (2.4) U.S. retirement plans (6.0) (3.6) (3.7) (59.8) (73.1) (7.0) (6.5) (13.5) Acquisitions and dispositions 1.2 1.3 46.9 — 49.4 — 0.3 0.3 Share-based compensation adj. — (4.2) 1.8 — (2.4) — — — Operating profit (94.5)$ (15.3) 40.4 (82.3) (151.7) (27.7)$ (45.2) (72.9) 20152014

 
29 Other Items Not Allocated to Segments Venezuela impairment In the second quarter of 2015, we recognized an impairment of the Venezuela property, plant and equipment. This charge was not allocated to segment results. 2014 Reorganization and Restructuring Brink’s reorganized and restructured its business in December 2014, eliminating the management roles and structures in its former Latin America and EMEA regions and implementing a plan to reduce the cost structure of various country operations by eliminating approximately 1,700 positions across its global workforce. Severance costs of $21.8 million associated with these actions were recognized in 2014. Additional charges related to severance and lease terminations of $0.3 million were recognized in the first half of 2015. These amounts have not been allocated to segment results. Mexican settlement losses Employee termination costs in Mexico are accounted for as retirement benefits under FASB ASC Topic 715, Compensation — Retirement Benefits. Settlement charges related to these termination benefits have not been allocated to segment results. U.S. retirement plans Costs related to our frozen U.S. retirement plans have not been allocated to segment results. Brink’s primary U.S. pension plan settled a portion of its obligation in the fourth quarter of 2014 under a lump sum buy-out offer. Approximately 4,300 terminated participants were paid about $150 million of plan assets under this offer in lieu of receiving their pension benefit. A $56 million settlement loss was recognized as a result of the settlement. Acquisitions and dispositions Gains and losses related to acquisitions and dispositions that have not been allocated to segment results are described below: • Brink’s sold an equity investment in a CIT business in Peru and recognized a $44.3 million gain in the third quarter of 2014. The gain on the sale and the equity earnings have not been allocated to segment results. • A favorable adjustment to the 2010 business acquisition gain for Mexico ($0.7 million in the third quarter of 2014) is not allocated to segment results. • A favorable adjustment to the purchase price of a third quarter 2014 business acquisition in EMEA ($0.3 million in the second quarter of 2015) is not allocated to segment results. Share-based compensation adjustment Accounting adjustments related to share-based compensation have not been allocated to segment results ($4.2 million expense in the second quarter of 2014 and a $1.8 million benefit in the third quarter of 2014). The accounting adjustments revised the accounting for certain share-based awards from fixed to variable fair value accounting as noted in ASC Topic 718, Stock Compensation. As of July 11, 2014, all outstanding equity awards had met the conditions for a grant date as defined in ASC Topic 718 and have since been accounted for as fixed share-based compensation expense.

 
30 Non-GAAP Reconciled to GAAP Amounts may not add due to rounding. See slide [32] for footnote explanations. (In millions, except for percentages and per share amounts) 1Q 2Q 3Q 4Q Full Year 1Q 2Q First Half Revenues: Non-GAAP 818.3$ 836.7 847.4 848.1 3,350.5 755.6$ 748.1 1,503.7 Other items not allocated to segments(a) 131.3 22.3 25.1 33.1 211.8 20.5 12.2 32.7 GAAP 949.6$ 859.0 872.5 881.2 3,562.3 776.1$ 760.3 1,536.4 Operating profit (loss): Non-GAAP 20.8$ 24.0 20.8 58.6 124.2 40.6$ 30.6 71.2 Other items not allocated to segments(a) (94.5) (15.3) 40.4 (82.3) (151.7) (27.7) (45.2) (72.9) GAAP (73.7)$ 8.7 61.2 (23.7) (27.5) 12.9$ (14.6) (1.7) Taxes: Non-GAAP 6.9$ 8.5 6.7 24.8 46.9 15.2$ 11.0 26.2 Other items not allocated to segments(a) (3.3) (1.3) 21.5 (27.1) (10.2) (3.9) — (3.9) Income tax rate adjustment(b) 5.1 (3.1) (1.4) (0.6) — 4.2 (3.4) 0.8 GAAP 8.7$ 4.1 26.8 (2.9) 36.7 15.5$ 7.6 23.1 Noncontrolling interests: Non-GAAP 0.8$ 2.1 2.2 1.3 6.4 0.8$ 1.8 2.6 Other items not allocated to segments(a) (31.3) (3.7) (1.6) (0.7) (37.3) (6.2) (16.5) (22.7) Income tax rate adjustment(b) 1.3 — (1.2) (0.1) — (1.1) 1.2 0.1 GAAP (29.2)$ (1.6) (0.6) 0.5 (30.9) (6.5)$ (13.5) (20.0) Non-GAAP margin 2.5% 2.9% 2.5% 6.9% 3.7% 5.4% 4.1% 4.7% 2014 2015

 
31 Non-GAAP Reconciled to GAAP Amounts may not add due to rounding. (a) See “Other Items Not Allocated To Segments” on slides 29-30 for pretax amounts and details. Other Items Not Allocated To Segments for noncontrolling interests, income from continuing operations attributable to Brink's and EPS are the effects of the same items at their respective line items of the consolidated statements of income (loss). (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 estimated full-year non-GAAP effective tax rate is 42.0% for 2015 and was 45.7% for 2014. 1Q 2Q 3Q 4Q Full Year 1Q 2Q First Half Income from continuing operations attributable to Brink's: Non-GAAP 7.3$ 8.1 5.7 28.3 49.4 20.1$ 13.5 33.6 Other items not allocated to segments(a) (59.9) (10.3) 20.5 (54.5) (104.2) (17.6) (28.7) (46.3) Income tax rate adjustment(b) (6.4) 3.1 2.6 0.7 — (3.1) 2.2 (0.9) GAAP (59.0)$ 0.9 28.8 (25.5) (54.8) (0.6)$ (13.0) (13.6) EPS: Non-GAAP 0.15$ 0.16 0.12 0.58 1.01 0.41$ 0.27 0.68 Other items not allocated to segments(a) (1.23) (0.21) 0.41 (1.12) (2.12) (0.36) (0.58) (0.93) Income tax rate adjustment(b) (0.13) 0.06 0.05 0.01 — (0.06) 0.04 (0.02) GAAP (1.21)$ 0.02 0.58 (0.52) (1.12) (0.01)$ (0.26) (0.28) 2014 2015

 
32 Non-GAAP Reconciliations – Cash Flows a) To eliminate 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. Both measures of “Non-GAAP cash flows from operating activities” (before and after U.S. pension contributions) are supplemental financial measures that are not required by, or presented in accordance with GAAP. The purpose of these Non-GAAP measures is to report financial information excluding the impact of cash received and processed in certain of our Cash Management Services operations, without cash flows from discontinued operations and with and without cash flows related to the primary U.S pension plan. We believe these measures are helpful in assessing cash flows from operations, enable period-to-period comparability and are useful in predicting future operating cash flows. These Non-GAAP measures 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. ($ millions) 2015 2014 Cash flows from operating activities - GAAP 42.6$ 47.6 Decrease (increase) in certain customer obligations(a) (6.7) (9.4) Cash outflows (inflows) related to discontinued operations 2.0 (1.6) Cash flows from operating activities - Non-GAAP basis (reduced by pension contributions) 37.9 36.6 Contributions to primary U.S. pension plan — 26.2 Cash flows from operating activities - Non-GAAP basis (before pension contributions) 37.9$ 62.8 Six Months

 
33 a) Title to cash received and processed in certain of our secure Cash Management Services 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 non-GAAP 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 $348 million at June 30, 2015, and $332 million at December 31, 2014. Net Debt increased by $25 million primarily due to increased borrowings to fund working capital needs during the first half of 2015. Non-GAAP Reconciliations – Net Debt June 30, December 31, (In millions) 2015 2014 Debt: Short-term debt 40.5$ 59.4 Long-term debt 449.6 407.4 Total Debt 490.1 466.8 Less: Cash and cash equivalents 181.1 176.2 Amounts held by Cash Management Services operations(a) (34.3) (28.0) Cash and cash equivalents available for general corporate purposes 146.8 148.2 Net Debt 343.3$ 318.6

 
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