Brink’s Holds Investor Day, Updates 2015 and 2016 Earnings Outlook
October 06 2015 - 07:30AM
Will Present Plan to Drive Shareholder Value at
Investor Day Today
The Brink’s Company (NYSE:BCO), a global leader in security-related
services, announced that it has reduced its earnings outlook for
2015 and adjusted its 2016 earnings guidance to the lower end of
its previously disclosed range. Brink’s management will discuss the
company’s strategy to improve operating and financial performance
at its Investor Day meeting today in New York.
Guidance
Management expects full-year 2015 non-GAAP earnings to be
between $1.40 and $1.50 per share, compared to its previous
estimate of $1.55 to $1.75. Revenue guidance for 2015 was
unchanged at approximately $3 billion. The company cited its
expectation of lower operating results in the U.S., weak economic
conditions in Brazil, and the ongoing effect of negative currency
translation as primary factors in its decision to reduce 2015
guidance.
Brink’s adjusted its 2016 non-GAAP earnings outlook to the lower
end of its previously disclosed range of $2.00 to $2.40 per
share. Non-GAAP earnings in 2016 are now expected to be
between $2.00 and $2.20 per share. Revenue guidance for 2016
was reduced from $3.4 billion to $3 billion. The change in
2016 earnings and revenue guidance reflects management’s
expectation of continued economic weakness in Brazil and currency
headwinds. Brink’s continues to expect its U.S. operations to
achieve its previously disclosed operating margin target of 6% in
2016.
Investor Day
Management will present a detailed review of the company’s
operations, provide a financial review, and highlight its strategy
to drive shareholder value.
Tom Schievelbein, chairman, president and chief executive
officer, said, “We are continuing to execute on our strategy to
differentiate our service offerings, reduce costs, exit
unprofitable markets, and drive a change in our culture. While
currency headwinds have continued to impact our results, we have
made operational changes that we believe will position us to
deliver sustainable growth in shareholder value. We believe our
focus on executing turnarounds in the U.S. and Mexico, coupled with
medium-term growth drivers from higher-value services, will drive
value for Brink’s shareholders.”
The company will provide additional information on its 2015 and
2016 outlook later this morning at its Investor Day meeting and
when it releases third-quarter earnings on October 30. A link
to the live webcast (beginning at 8:30 am Eastern time) and replay
of the event will be available through the Investor Relations
section of the company's website at www.Brinks.com.
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.
Forward-Looking StatementsThis
release contains forward-looking information. Words such as
"anticipate," "assume," "estimate," "expect," “target” "project,"
"predict," "intend," "plan," "believe," "potential," "may,"
"should" and similar expressions may identify forward-looking
information. Forward-looking information in these materials
includes, but is not limited to 2015 and 2016 outlook, including
revenue, margin rate and earnings per share. 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;
counterparty risk; 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 release is representative as of today
only and The Brink's Company undertakes no obligation to update any
information contained in this document.
Contact:
Investor Relations
804.289.9709
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