The Brink’s Company (NYSE:BCO), the global leader in total cash
management, route-based secure logistics and payment solutions,
today announced results for the second quarter of 2021, which are
summarized below.
(In millions, except for per
share amounts) |
Second-Quarter 2021 |
|
|
|
GAAP |
|
Change |
|
Non-GAAP |
|
Change |
|
Constant Currency Change(b) |
Revenue |
$ |
1,049 |
|
|
27 |
% |
|
$ |
1,049 |
|
|
27 |
% |
|
22 |
% |
Operating Profit |
$ |
73 |
|
|
fav |
|
|
$ |
111 |
|
|
51 |
% |
|
48 |
% |
Operating Margin |
7.0 |
% |
|
710 bps |
|
|
10.5 |
% |
|
160 bps |
|
|
180 bps |
|
Net Income / Adjusted
EBITDA(a) |
$ |
24 |
|
|
85 |
% |
|
$ |
166 |
|
|
39 |
% |
|
35 |
% |
EPS |
$ |
0.47 |
|
|
74 |
% |
|
$ |
1.18 |
|
|
62 |
% |
|
56 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(a) The non-GAAP financial metric, adjusted
EBITDA, is presented with its corresponding GAAP metric, net income
attributable to Brink's.(b) Constant currency
represents 2021 results at 2020 exchange rates.
Doug Pertz, president and chief executive officer, said: “Our
second-quarter results clearly demonstrate the strong recovery of
our business from the pandemic-related lows of 2020. On
a comparable basis, in local currency, second-quarter revenue has
recovered to 97% of 2019 pre-Covid levels, 92% on a U.S. dollar
basis. We expect continued revenue recovery in the
second half to provide a strong jumping off point for 2022, when
our full-year revenue is expected to exceed comparable 2019
pre-Covid revenue levels. Our preliminary targets for 2022 continue
to include adjusted EBITDA growth in the mid-teens to a range
between $785 million and $825 million, and free cash flow growth to
a range between $350 million and $400 million, or approximately 50%
of adjusted EBITDA.
“Our strong results thus far in 2021 reflect the resiliency of
our business and the continuing strength of global cash usage,
despite the unexpected extension of pandemic-related shutdowns,
most notably in Europe and Latin America. Given the year-to-date
impact of the pandemic, and the uncertainty regarding its future
impact, we now expect full-year 2021 revenue growth in the
mid-to-high teens, which is in the lower half of our guidance
range. We continue to expect earnings to be around the mid-point of
the range, reflecting higher margins.
“We expect margin expansion to continue into 2022, when we
expect to add another layer of organic growth with new digital
solutions that make cash easier to manage, safer and more efficient
for both retailers and financial institutions. We look forward to
sharing the details behind our core and digital strategies,
including 2023 financial targets, during our Investor Day event in
early December.”
Conference CallBrink’s will host a conference
call on July 22 at 8:30 a.m. ET to review second-quarter
results. Interested parties can listen by calling
888-349-0094 (in the U.S.) or 412-902-0124 (international).
Participants can pre-register at
https://dpregister.com/sreg/10158231/ea8fa6812a to receive a direct
dial-in number for the call. The call also will be accessible live
via webcast on the Brink’s website (www.brinks.com). A replay of
the call will be available through August 22, 2021 at 877-344-7529
(in the U.S.) or 412-317-0088 (international). The conference
number is 10158231. An archived version of the webcast will be
available online in the Investor Relations section of
http://investors.brinks.com.
2021 Guidance (Unaudited)(In millions, except
for percentages and per share amounts)
|
|
2021 GAAP Outlook(b) |
|
Reconciling Items(a) |
|
2021 Non-GAAPOutlook(a) |
Revenues |
$ |
4,200 – 4,600 |
|
— |
|
4,200 – 4,600 |
Operating profit |
|
364 – 454 |
|
102 |
|
466 – 556 |
EPS from continuing operations
attributable to Brink's |
$ |
2.20 – 3.25 |
|
2.15 – 2.30 |
|
4.35 – 5.55 |
|
|
|
|
|
|
|
Operating profit margin |
|
8.7% – 9.9% |
|
2.2% – 2.4% |
|
11.1% – 12.1% |
|
|
|
|
|
|
|
Free cash flow before
dividends |
|
|
|
|
|
185 – 275 |
|
|
|
|
|
|
|
Adjusted EBITDA |
|
|
|
|
|
660 – 750 |
|
|
|
|
|
|
|
Adjusted EBITDA margin |
|
|
|
|
|
15.7% – 16.3% |
|
|
|
|
|
|
|
Amounts may not add due to rounding
(a) The 2021 Non-GAAP outlook amounts exclude
certain forecasted Non-GAAP adjusting items, such as intangible
asset amortization and U.S. retirement plan costs. We have not
forecasted the impact of highly inflationary accounting on our
Argentina operations in 2021 or other potential Non-GAAP adjusting
items for which the timing and amounts are currently under review,
such as future restructuring actions. We have also not forecasted
changes in cash held for customer obligations or proceeds from the
sale of property, equipment and investments in 2021. The 2021
Non-GAAP outlook amounts for operating profit, EPS from continuing
operations, free cash flow before dividends and Adjusted EBITDA
cannot be reconciled to GAAP without unreasonable effort. We cannot
reconcile these amounts to GAAP because we are unable to accurately
forecast the impact of highly inflationary accounting on our
Argentina operations in 2021 or other potential Non-GAAP adjusting
items for which the timing and amounts are currently under review,
such as future restructuring actions. We are also unable to
forecast changes in cash held for customer obligations or proceeds
from the sale of property, equipment and investments in
2021.(b) The 2021 GAAP outlook excludes any
forecasted impact from highly inflationary accounting on our
Argentina operations as well as other potential Non-GAAP adjusting
items for which the timing and amounts are currently under review,
such as future restructuring actions.The Brink’s Company
and subsidiaries(In millions, except for per share
amounts) (Unaudited)
Second-Quarter 2021 vs. 2020
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP |
|
|
Organic |
|
Acquisitions / |
|
|
|
|
|
% Change |
|
|
2Q'20 |
|
Change |
|
Dispositions(a) |
|
Currency(b) |
|
2Q'21 |
|
Total |
|
Organic |
|
Revenues: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
North America |
$ |
274 |
|
|
58 |
|
|
21 |
|
|
4 |
|
|
357 |
|
|
30 |
|
|
21 |
|
|
Latin America |
230 |
|
|
37 |
|
|
1 |
|
|
4 |
|
|
273 |
|
|
18 |
|
|
16 |
|
|
Europe |
168 |
|
|
30 |
|
|
14 |
|
|
19 |
|
|
231 |
|
|
37 |
|
|
18 |
|
|
Rest of World |
153 |
|
|
— |
|
|
23 |
|
|
12 |
|
|
188 |
|
|
23 |
|
|
— |
|
|
Segment revenues(g) |
$ |
826 |
|
|
125 |
|
|
59 |
|
|
39 |
|
|
1,049 |
|
|
27 |
|
|
15 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenues - GAAP |
$ |
826 |
|
|
125 |
|
|
59 |
|
|
39 |
|
|
1,049 |
|
|
27 |
|
|
15 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating profit: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
North America |
$ |
8 |
|
|
29 |
|
|
4 |
|
|
— |
|
|
41 |
|
|
fav |
|
|
fav |
|
|
Latin America |
42 |
|
|
17 |
|
|
— |
|
|
(2 |
) |
|
57 |
|
|
37 |
|
|
40 |
|
|
Europe |
1 |
|
|
16 |
|
|
1 |
|
|
1 |
|
|
19 |
|
|
fav |
|
|
fav |
|
|
Rest of World |
31 |
|
|
(1 |
) |
|
(1 |
) |
|
2 |
|
|
32 |
|
|
3 |
|
|
(2 |
) |
|
Segment operating profit |
82 |
|
|
61 |
|
|
4 |
|
|
2 |
|
|
149 |
|
|
81 |
|
|
74 |
|
|
Corporate(c) |
(9 |
) |
|
(30 |
) |
|
— |
|
|
1 |
|
|
(38 |
) |
|
unfav |
|
|
unfav |
|
|
Operating profit - non-GAAP |
$ |
73 |
|
|
31 |
|
|
4 |
|
|
3 |
|
|
111 |
|
|
51 |
|
|
42 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other items not allocated to segments(d) |
(74 |
) |
|
27 |
|
|
11 |
|
|
(1 |
) |
|
(37 |
) |
|
(50 |
) |
|
(36 |
) |
|
Operating profit - GAAP |
$ |
(1 |
) |
|
58 |
|
|
14 |
|
|
2 |
|
|
73 |
|
|
fav |
|
|
fav |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP
interest expense |
(23 |
) |
|
|
|
|
|
|
|
(28 |
) |
|
22 |
|
|
|
|
GAAP
interest and other income (expense) |
(3 |
) |
|
|
|
|
|
|
|
5 |
|
|
fav |
|
|
|
|
GAAP
provision (benefit) for income taxes |
(43 |
) |
|
|
|
|
|
|
|
23 |
|
|
unfav |
|
|
|
|
GAAP
noncontrolling interests |
2 |
|
|
|
|
|
|
|
|
3 |
|
|
30 |
|
|
|
|
GAAP
income from continuing operations(f) |
14 |
|
|
|
|
|
|
|
|
24 |
|
|
75 |
|
|
|
|
GAAP
EPS(f) |
$ |
0.27 |
|
|
|
|
|
|
|
|
0.47 |
|
|
74 |
|
|
|
|
GAAP
weighted-average diluted shares |
51.0 |
|
|
|
|
|
|
|
|
50.5 |
|
|
(1 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-GAAP(e) |
|
|
Organic |
|
Acquisitions / |
|
|
|
|
|
% Change |
|
|
2Q'20 |
|
Change |
|
Dispositions(a) |
|
Currency(b) |
|
2Q'21 |
|
Total |
|
Organic |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Segment revenues - GAAP/non-GAAP |
$ |
826 |
|
|
125 |
|
|
59 |
|
|
39 |
|
|
1,049 |
|
|
27 |
|
|
15 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-GAAP
operating profit |
73 |
|
|
31 |
|
|
4 |
|
|
3 |
|
|
111 |
|
|
51 |
|
|
42 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-GAAP
interest expense |
(23 |
) |
|
|
|
|
|
|
|
(28 |
) |
|
21 |
|
|
|
|
Non-GAAP
interest and other income (expense) |
6 |
|
|
|
|
|
|
|
|
10 |
|
|
80 |
|
|
|
|
Non-GAAP
provision for income taxes |
18 |
|
|
|
|
|
|
|
|
30 |
|
|
67 |
|
|
|
|
Non-GAAP
noncontrolling interests |
1 |
|
|
|
|
|
|
|
|
4 |
|
|
unfav |
|
|
|
|
Non-GAAP
income from continuing operations(f) |
37 |
|
|
|
|
|
|
|
|
60 |
|
|
60 |
|
|
|
|
Non-GAAP
EPS(f) |
$ |
0.73 |
|
|
|
|
|
|
|
|
1.18 |
|
|
62 |
|
|
|
|
Non-GAAP
weighted-average diluted shares |
51.0 |
|
|
|
|
|
|
|
|
50.5 |
|
|
(1 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Amounts may not add due to rounding.(a) Non-GAAP amounts include
the impact of prior year comparable period results for acquired and
disposed businesses. GAAP results also include the impact of
acquisition-related intangible amortization, restructuring and
other charges, and disposition related gains/losses.(b) The amounts
in the “Currency” column consist of the effects of Argentina
devaluations under highly inflationary accounting and the sum of
monthly currency changes. Monthly currency changes represent the
accumulation throughout the year of the impact on current period
results from changes in foreign currency rates from the prior year
period.(c) Corporate expenses are not allocated to segment results.
Corporate expenses include salaries and other costs to manage the
global business and to perform activities required of public
companies.(d) See pages 6-7 for more information.(e) Non-GAAP
results are reconciled to applicable GAAP results on pages
8-10.(f) Attributable to Brink's. (g) Segment revenues equal
our total reported non-GAAP revenues.(h) In the first quarter of
2021, we changed the method for calculating the allowance for
doubtful accounts of the North America segment’s U.S. business.
This change in method resulted in a $12.3 million operating profit
increase in the segment, which was offset by a $12.3 million
increase to Corporate expense, resulting in no impact to
consolidated operating profit for the quarter. Historically, all
Brink’s business units followed an internal Company policy for
determining an allowance for doubtful accounts and the allowances
were then reconciled to the required U.S. GAAP estimated
consolidated allowance, with any differences reported as part of
Corporate expense. Other than for the U.S. business, the
reconciling differences were not significant. We changed the U.S.
calculation of the allowance in order to more closely align it with
the U.S. GAAP consolidated calculation and to minimize reconciling
differences, resulting in the offsetting $12.3 million adjustments
to align the methods.
The Brink’s Company and subsidiaries(In
millions, except for per share amounts) (Unaudited)
Six Months Ended June 30,
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP |
|
|
Organic |
|
Acquisitions / |
|
|
|
|
|
% Change |
|
|
2020 |
|
Change |
|
Dispositions(a) |
|
Currency(b) |
|
2021 |
|
Total |
|
Organic |
|
Revenues: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
North America |
$ |
615 |
|
|
30 |
|
|
23 |
|
|
6 |
|
|
674 |
|
|
10 |
|
|
5 |
|
|
Latin America |
529 |
|
|
38 |
|
|
7 |
|
|
(31 |
) |
|
543 |
|
|
2 |
|
|
7 |
|
|
Europe |
294 |
|
|
4 |
|
|
110 |
|
|
36 |
|
|
445 |
|
|
51 |
|
|
1 |
|
|
Rest of World |
260 |
|
|
(3 |
) |
|
90 |
|
|
19 |
|
|
365 |
|
|
40 |
|
|
(1 |
) |
|
Segment revenues(g) |
$ |
1,699 |
|
|
69 |
|
|
229 |
|
|
30 |
|
|
2,027 |
|
|
19 |
|
|
4 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenues - GAAP |
$ |
1,699 |
|
|
69 |
|
|
229 |
|
|
30 |
|
|
2,027 |
|
|
19 |
|
|
4 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating profit: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
North America(h) |
$ |
22 |
|
|
48 |
|
|
4 |
|
|
— |
|
|
73 |
|
|
fav |
|
|
fav |
|
|
Latin America |
102 |
|
|
24 |
|
|
— |
|
|
(11 |
) |
|
116 |
|
|
13 |
|
|
23 |
|
|
Europe |
3 |
|
|
16 |
|
|
8 |
|
|
2 |
|
|
29 |
|
|
fav |
|
|
fav |
|
|
Rest of World |
45 |
|
|
10 |
|
|
4 |
|
|
3 |
|
|
62 |
|
|
40 |
|
|
23 |
|
|
Segment operating profit |
172 |
|
|
98 |
|
|
17 |
|
|
(5 |
) |
|
281 |
|
|
63 |
|
|
57 |
|
|
Corporate(c)(h) |
(36 |
) |
|
(48 |
) |
|
— |
|
|
3 |
|
|
(80 |
) |
|
unfav |
|
|
unfav |
|
|
Operating profit - non-GAAP |
$ |
136 |
|
|
50 |
|
|
17 |
|
|
(2 |
) |
|
201 |
|
|
47 |
|
|
37 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other items not allocated to segments(d) |
(111 |
) |
|
37 |
|
|
11 |
|
|
(2 |
) |
|
(66 |
) |
|
(41 |
) |
|
(33 |
) |
|
Operating profit - GAAP |
$ |
25 |
|
|
87 |
|
|
27 |
|
|
(4 |
) |
|
135 |
|
|
fav |
|
|
fav |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP
interest expense |
(43 |
) |
|
|
|
|
|
|
|
(55 |
) |
|
28 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP
interest and other income (expense) |
(19 |
) |
|
|
|
|
|
|
|
(1 |
) |
|
(95 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP
provision (benefit) for income taxes |
(55 |
) |
|
|
|
|
|
|
|
36 |
|
|
unfav |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP
noncontrolling interests |
3 |
|
|
|
|
|
|
|
|
6 |
|
|
73 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP
income from continuing operations(f) |
16 |
|
|
|
|
|
|
|
|
37 |
|
|
fav |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP
EPS(f) |
$ |
0.30 |
|
|
|
|
|
|
|
|
0.73 |
|
|
fav |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP
weighted-average diluted shares |
|
51.2 |
|
|
|
|
|
|
|
|
50.5 |
|
|
(1 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-GAAP(e) |
|
|
Organic |
|
Acquisitions / |
|
|
|
|
|
% Change |
|
|
2020 |
|
Change |
|
Dispositions(a) |
|
Currency(b) |
|
2021 |
|
Total |
|
Organic |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Segment revenues - GAAP/non-GAAP |
$ |
1,699 |
|
|
69 |
|
|
229 |
|
|
30 |
|
|
2,027 |
|
|
19 |
|
|
4 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-GAAP
operating profit |
$ |
136 |
|
|
50 |
|
|
17 |
|
|
(2 |
) |
|
201 |
|
|
47 |
|
|
37 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-GAAP
interest expense |
(42 |
) |
|
|
|
|
|
|
|
(55 |
) |
|
29 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-GAAP
interest and other income (expense) |
1 |
|
|
|
|
|
|
|
|
11 |
|
|
fav |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-GAAP
provision for income taxes |
30 |
|
|
|
|
|
|
|
|
50 |
|
|
67 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-GAAP
noncontrolling interests |
2 |
|
|
|
|
|
|
|
|
6 |
|
|
unfav |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-GAAP
income from continuing operations(f) |
63 |
|
|
|
|
|
|
|
|
101 |
|
|
59 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-GAAP
EPS(f) |
$ |
1.23 |
|
|
|
|
|
|
|
|
1.99 |
|
|
62 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-GAAP
weighted-average diluted shares |
|
51.2 |
|
|
|
|
|
|
|
|
50.5 |
|
|
(1 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Amounts may not add due to rounding.
See page 3 for footnote explanations.
About The Brink’s CompanyThe Brink’s Company
(NYSE:BCO) is the global leader in total cash management,
route-based secure logistics and payment solutions including
cash-in-transit, ATM services, cash management services (including
vault outsourcing, money processing and intelligent safe services),
and international transportation of valuables. Our customers
include financial institutions, retailers, government agencies,
mints, jewelers and other commercial operations. Our global network
of operations in 53 countries serves customers in more than 100
countries. For more information, please visit our website at
www.brinks.com or call 804-289-9709.
Forward-Looking StatementsThis release contains
forward-looking information. Words such as "anticipate," "assume,"
"estimate," "expect," “target” "project," "predict," "intend,"
"plan," "believe," "potential," "may," "should" and similar
expressions may identify forward-looking information.
Forward-looking information in these materials includes, but is not
limited to: 2021 outlook, including revenue, operating profit,
adjusted EBITDA, earnings per share, free cash flow (and drivers
thereof), 2022 financial targets, expected economic recovery,
demand for our services in future periods, future costs related to
reorganization and restructuring, and our three-year strategic
plan. 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.
Forward-looking information in this document is subject to known
and unknown risks, uncertainties and contingencies, which are
difficult to predict or quantify, and which could cause actual
results, performance or achievements to differ materially from
those that are anticipated. These risks, uncertainties and
contingencies, many of which are beyond our control, include, but
are not limited to: our ability to improve profitability and
execute further cost and operational improvement and efficiencies
in our core businesses; our ability to improve service levels and
quality in our core businesses; market volatility and commodity
price fluctuations; seasonality, pricing and other competitive
industry factors; investment in information technology (“IT”) and
its impact on revenue and profit growth; our ability to maintain an
effective IT infrastructure and safeguard confidential information;
our ability to effectively develop and implement solutions for our
customers; risks associated with operating in foreign countries,
including changing political, labor and economic conditions,
regulatory issues (including the imposition of international
sanctions, including by the U.S. government), currency restrictions
and devaluations, restrictions on and cost of repatriating earnings
and capital, impact on the Company’s financial results as a result
of jurisdictions determined to be highly inflationary, and
restrictive government actions, including nationalization; labor
issues, including negotiations with organized labor and work
stoppages; pandemics (including the ongoing Covid-19 pandemic and
related impact to and restrictions on the actions of businesses and
consumers, including suppliers and customers), acts of terrorism,
strikes or other extraordinary events that negatively affect global
or regional cash commerce; anticipated cash needs in light of our
current liquidity position and the impact of Covid-19 on our
liquidity; the strength of the U.S. dollar relative to foreign
currencies and foreign currency exchange rates; our ability to
identify, evaluate and complete acquisitions and other strategic
transactions and to successfully integrate acquired companies;
costs related to dispositions and product or market exits; our
ability to obtain appropriate insurance coverage, positions taken
by insurers relative to claims and the financial condition of
insurers; safety and security performance and loss experience;
employee and environmental liabilities in connection with former
coal operations, including black lung claims; the impact of the
Patient Protection and Affordable Care Act on legacy liabilities
and ongoing operations; funding requirements, accounting treatment,
and investment performance of our pension plans, the VEBA and other
employee benefits; changes to estimated liabilities and assets in
actuarial assumptions; the nature of hedging relationships and
counterparty risk; access to the capital and credit markets; our
ability to realize deferred tax assets; the outcome of pending and
future claims, litigation, and administrative proceedings; public
perception of our business, reputation and brand; changes in
estimates and assumptions underlying critical accounting policies;
the promulgation and adoption of new accounting standards, new
government regulations and interpretation of existing standards and
regulations.
This list of risks, uncertainties and contingencies is not
intended to be exhaustive. Additional factors that could cause our
results to differ materially from those described in the
forward-looking statements can be found under "Risk Factors" in
Item 1A of our Annual Report on Form 10-K for the period ended
December 31, 2020, and in related disclosures in our other public
filings with the Securities and Exchange Commission, including our
Quarterly Report on Form 10-Q for the quarterly period ended March
31, 2021. The forward-looking information included in this document
is representative only as of the date of this document and The
Brink's Company undertakes no obligation to update any information
contained in this document.
The Brink’s Company and
subsidiariesSegment Results: 2020 and 2021
(Unaudited)(In millions, except for percentages)
|
Revenues |
|
2020 |
|
2021 |
|
1Q |
|
2Q |
|
3Q |
|
4Q |
|
Full Year |
|
1Q |
|
2Q |
|
Six Months |
Revenues: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
North America |
$ |
340.9 |
|
|
274.3 |
|
|
316.8 |
|
|
329.4 |
|
|
1,261.4 |
|
|
$ |
317.1 |
|
|
356.8 |
|
|
673.9 |
|
Latin America |
299.0 |
|
|
230.4 |
|
|
256.7 |
|
|
285.8 |
|
|
1,071.9 |
|
|
269.7 |
|
|
272.8 |
|
|
542.5 |
|
Europe |
126.3 |
|
|
167.9 |
|
|
224.0 |
|
|
235.6 |
|
|
753.8 |
|
|
214.4 |
|
|
230.8 |
|
|
445.2 |
|
Rest of World |
106.6 |
|
|
153.4 |
|
|
173.0 |
|
|
170.8 |
|
|
603.8 |
|
|
176.5 |
|
|
188.4 |
|
|
364.9 |
|
Segment revenues - GAAP and Non-GAAP |
$ |
872.8 |
|
|
826.0 |
|
|
970.5 |
|
|
1,021.6 |
|
|
3,690.9 |
|
|
$ |
977.7 |
|
|
1,048.8 |
|
|
2,026.5 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating Profit |
|
2020 |
|
2021 |
|
1Q |
|
2Q |
|
3Q |
|
4Q |
|
Full Year |
|
1Q |
|
2Q |
|
Six Months |
Operating
profit: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
North America(a) |
$ |
13.4 |
|
|
8.4 |
|
|
24.1 |
|
|
45.8 |
|
|
91.7 |
|
|
$ |
32.3 |
|
|
41.1 |
|
|
73.4 |
|
Latin America |
60.5 |
|
|
41.8 |
|
|
51.1 |
|
|
80.2 |
|
|
233.6 |
|
|
58.7 |
|
|
57.1 |
|
|
115.8 |
|
Europe |
2.1 |
|
|
1.2 |
|
|
18.8 |
|
|
29.1 |
|
|
51.2 |
|
|
10.6 |
|
|
18.7 |
|
|
29.3 |
|
Rest of World |
13.6 |
|
|
31.0 |
|
|
36.1 |
|
|
36.4 |
|
|
117.1 |
|
|
30.4 |
|
|
31.9 |
|
|
62.3 |
|
Corporate(a) |
(26.5 |
) |
|
(9.2 |
) |
|
(30.2 |
) |
|
(46.4 |
) |
|
(112.3 |
) |
|
(41.9 |
) |
|
(38.2 |
) |
|
(80.1 |
) |
Non-GAAP |
63.1 |
|
|
73.2 |
|
|
99.9 |
|
|
145.1 |
|
|
381.3 |
|
|
90.1 |
|
|
110.6 |
|
|
200.7 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other items not allocated to segments(b) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reorganization and Restructuring |
(5.6 |
) |
|
(39.0 |
) |
|
(5.1 |
) |
|
(16.9 |
) |
|
(66.6 |
) |
|
(6.6 |
) |
|
(15.1 |
) |
|
(21.7 |
) |
Acquisitions and dispositions |
(19.1 |
) |
|
(30.9 |
) |
|
(16.2 |
) |
|
(16.9 |
) |
|
(83.1 |
) |
|
(18.7 |
) |
|
(20.5 |
) |
|
(39.2 |
) |
Argentina highly inflationary impact |
(2.4 |
) |
|
(2.8 |
) |
|
(3.2 |
) |
|
(2.3 |
) |
|
(10.7 |
) |
|
(3.9 |
) |
|
(2.6 |
) |
|
(6.5 |
) |
Internal loss |
(9.6 |
) |
|
(1.2 |
) |
|
0.9 |
|
|
3.0 |
|
|
(6.9 |
) |
|
0.8 |
|
|
0.9 |
|
|
1.7 |
|
Reporting compliance |
(0.2 |
) |
|
(0.3 |
) |
|
0.1 |
|
|
(0.1 |
) |
|
(0.5 |
) |
|
— |
|
|
— |
|
|
— |
|
GAAP |
$ |
26.2 |
|
|
(1.0 |
) |
|
76.4 |
|
|
111.9 |
|
|
213.5 |
|
|
$ |
61.7 |
|
|
73.3 |
|
|
135.0 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Margin |
|
2020 |
|
2021 |
|
1Q |
|
2Q |
|
3Q |
|
4Q |
|
Full Year |
|
1Q |
|
2Q |
|
Six Months |
Margin: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
North America |
3.9 |
% |
|
3.1 |
|
|
7.6 |
|
|
13.9 |
|
|
7.3 |
|
|
10.2 |
% |
|
11.5 |
|
|
10.9 |
|
Latin America |
20.2 |
|
|
18.1 |
|
|
19.9 |
|
|
28.1 |
|
|
21.8 |
|
|
21.8 |
|
|
20.9 |
|
|
21.3 |
|
Europe |
1.7 |
|
|
0.7 |
|
|
8.4 |
|
|
12.4 |
|
|
6.8 |
|
|
4.9 |
|
|
8.1 |
|
|
6.6 |
|
Rest of World |
12.8 |
|
|
20.2 |
|
|
20.9 |
|
|
21.3 |
|
|
19.4 |
|
|
17.2 |
|
|
16.9 |
|
|
17.1 |
|
Non-GAAP |
7.2 |
|
|
8.9 |
|
|
10.3 |
|
|
14.2 |
|
|
10.3 |
|
|
9.2 |
|
|
10.5 |
|
|
9.9 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other items not allocated to segments(b) |
(4.2 |
) |
|
(9.0 |
) |
|
(2.4 |
) |
|
(3.2 |
) |
|
(4.5 |
) |
|
(2.9 |
) |
|
(3.5 |
) |
|
(3.2 |
) |
GAAP |
3.0 |
% |
|
(0.1 |
) |
|
7.9 |
|
|
11.0 |
|
|
5.8 |
|
|
6.3 |
% |
|
7.0 |
|
|
6.7 |
|
(a) In the first quarter of 2021, we changed the method for
calculating the allowance for doubtful accounts of the North
America segment’s U.S. business. This change in method resulted in
a $12.3 million operating profit increase in the segment, which was
offset by a $12.3 million increase to Corporate expense, resulting
in no impact to consolidated operating profit for the quarter.
Historically, all Brink’s business units followed an internal
Company policy for determining an allowance for doubtful accounts
and the allowances were then reconciled to the required U.S. GAAP
estimated consolidated allowance, with any differences reported as
part of Corporate expense. Other than for the U.S. business, the
reconciling differences were not significant. We changed the U.S.
calculation of the allowance in order to more closely align it with
the U.S. GAAP consolidated calculation and to minimize reconciling
differences, resulting in the offsetting $12.3 million adjustments
to align the methods.(b) See explanation of items on page 7.
The Brink’s Company and
subsidiariesOther Items Not Allocated To Segments
(Unaudited)(In millions)
Brink’s measures its segment results before income and expenses
for corporate activities and for certain other items. See below for
a summary of the other items not allocated to segments.
Reorganization and Restructuring Other
Restructurings Management periodically implements restructuring
actions in targeted sections of our business. As a result of these
actions, we recognized $21.7 million net costs in the first six
months of 2021, primarily severance costs. We recognized $66.6
million net costs in operating profit and $0.6 million costs in
interest and other nonoperating income (expense) in 2020, primarily
severance costs. For the restructuring actions that have not yet
been completed, we expect to incur additional costs between $4
million and $6 million in future periods.
Due to the unique circumstances around these charges, these
management-directed items have not been allocated to segment
results and are excluded from non-GAAP results.
Acquisitions and dispositions Certain
acquisition and disposition items that are not considered part of
the ongoing activities of the business and are special in
nature are consistently excluded from non-GAAP results. These items
are described below:
2021 Acquisitions and Dispositions
- Amortization expense for acquisition-related intangible assets
was $22.6 million in the first six months of 2021.
- We incurred $6.9 million in integration costs, primarily
related to G4S, in the first six months of 2021.
- Transaction costs related to business acquisitions were
$4.3 million in the first six months of 2021.
- Restructuring costs related to acquisitions were
$4.6 million in the first six months of 2021.
- Compensation expense related to the retention of key PAI
employees was $0.6 million in the first six months of
2021.
2020 Acquisitions and Dispositions
- Amortization expense for acquisition-related intangible assets
was $35.1 million in 2020.
- We incurred $23.5 million in integration costs, primarily
related to Dunbar and G4S, in 2020.
- Transaction costs related to business acquisitions were $19.3
million in 2020.
- Restructuring costs related to acquisitions were $4.7 million
in 2020.
Argentina highly inflationary impact Beginning
in the third quarter of 2018, we designated Argentina's economy as
highly inflationary for accounting purposes. As a result, Argentine
peso-denominated monetary assets and liabilities are now remeasured
at each balance sheet date to the currency exchange rate then in
effect, with currency remeasurement gains and losses recognized in
earnings. In addition, nonmonetary assets retain a higher
historical basis when the currency is devalued. The higher
historical basis results in incremental expense being recognized
when the nonmonetary assets are consumed. In the first six months
of 2021, we recognized $6.5 million in pretax charges related
to highly inflationary accounting, including currency remeasurement
losses of $5.0 million. In 2020, we recognized $10.7 million
in pretax charges related to highly inflationary accounting,
including currency remeasurement losses of $7.7 million. These
amounts are excluded from non-GAAP results.
Internal loss A former non-management employee
in our U.S. global services operations embezzled funds from Brink's
in prior years. Except for a small deductible amount, the amount of
the internal loss related to the embezzlement of funds was covered
by our insurance. In an effort to cover up the embezzlement, the
former employee intentionally misstated the underlying accounts
receivable subledger data. In 2020, we incurred an additional $0.3
million in costs related to this activity. In the third quarter of
2019, we were able to identify $4.0 million of revenues billed and
collected in prior periods which had never been recorded in the
general ledger. We also identified and recorded $0.3 million in
bank fees, which had been incurred in prior periods. The rebuild of
the subledger was substantially completed during the third quarter
of 2019. Based on the reconstructed subledger, we were able to
analyze and quantify the uncollected receivables from prior
periods. Although we plan to attempt to collect these receivables,
we estimated an increase to bad debt expense of $13.7 million in
the third quarter of 2019. The estimate of the allowance for
doubtful accounts was adjusted in the fourth quarter of 2019 for an
additional $6.4 million and again in 2020 for an additional $6.6
million. In the first six months of 2021, we recognized a decrease
in bad debt expense of $2.7 million, primarily related to
collection of these receivables. This estimate will continue to be
adjusted in future periods, if needed, as assumptions related to
the collectability of these accounts receivable change. We also
recognized $0.9 million of legal charges in the first six
months of 2021 as we attempt to collect additional insurance
recoveries related to these receivables. At June 30, 2021, we
have recorded a $9.5 million allowance on $9.7 million of accounts
receivable, or 98%. Due to the unusual nature of this internal loss
and the related errors in the subledger data, along with the fact
that management has excluded these amounts when evaluating internal
performance, we have excluded these net charges from segment and
non-GAAP results.
Reporting compliance Certain compliance costs
(primarily third party expenses) are excluded from 2020 and the
first six months of 2021 non-GAAP results. These costs relate to
the implementation and January 1, 2019 adoption of the new lease
accounting standard (amounts were not significant in the first six
months of 2021and $0.5 million in 2020).
The Brink’s Company and
subsidiariesNon-GAAP Results Reconciled to GAAP
(Unaudited) (In millions, except for percentages and per
share amounts)
Non-GAAP results described in this press release are financial
measures that are not required by or presented in accordance with
U.S. generally accepted accounting principles (“GAAP”). The purpose
of the Non-GAAP results is to report financial information from the
primary operations of our business by excluding the effects of
certain income and expenses that do not reflect the ordinary
earnings of our operations. The specific items excluded have not
been allocated to segments, are described on page 7 and in more
detail in our Form 10-Q, and are reconciled to comparable GAAP
measures below. In addition, we refer to non-GAAP constant currency
amounts, which represent current period results and forecasts at
prior period exchange rates.
Non-GAAP results adjust the quarterly Non-GAAP tax rates so that
the Non-GAAP tax rate in each of the quarters is equal to the
full-year estimated Non-GAAP tax rate. The full-year Non-GAAP tax
rate in both years excludes certain pretax and income tax amounts.
Amounts reported for prior periods have been updated in this report
to present information consistently for all periods presented.
The 2021 Non-GAAP outlook amounts for operating profit, EPS from
continuing operations, free cash flow before dividends and Adjusted
EBITDA cannot be reconciled to GAAP without unreasonable effort. We
cannot reconcile these amounts to GAAP because we are unable to
accurately forecast the impact of highly inflationary accounting on
our Argentina operations or other potential Non-GAAP adjusting
items for which the timing and amounts are currently under review,
such as future restructuring actions. We are also unable to
forecast changes in cash held for customer obligations or proceeds
from the sale of property, equipment and investments in 2021. The
impact of highly inflationary accounting and other potential
Non-GAAP adjusting items could be significant to our GAAP
results.
The Non-GAAP financial measures are intended to provide
investors with a supplemental comparison of our operating results
and trends for the periods presented. Our management believes these
measures are also useful to investors as such measures allow
investors to evaluate our performance using the same metrics that
our management uses to evaluate past performance and prospects for
future performance. We do not consider these items to be reflective
of our operating performance as they result from events and
circumstances that are not a part of our core business.
Additionally, non-GAAP results are utilized as performance measures
in certain management incentive compensation plans.
Non-GAAP Results Reconciled to GAAP
|
YTD '20 |
|
YTD '21 |
|
Pre-tax income |
|
Income taxes |
|
Effective tax rate |
|
Pre-tax income |
|
Income taxes |
|
Effective tax rate |
Effective Income Tax
Rate |
|
|
|
|
|
|
|
|
|
|
|
GAAP |
$ |
(36.6 |
) |
|
(55.4 |
) |
|
151.4 |
% |
|
$ |
78.7 |
|
|
36.3 |
|
|
46.1 |
% |
Retirement plans(c) |
15.8 |
|
|
3.7 |
|
|
|
|
13.1 |
|
|
3.7 |
|
|
|
Reorganization and Restructuring(a) |
44.6 |
|
|
10.3 |
|
|
|
|
21.7 |
|
|
5.3 |
|
|
|
Acquisitions and dispositions(a) |
54.5 |
|
|
5.7 |
|
|
|
|
39.0 |
|
|
2.2 |
|
|
|
Argentina highly inflationary impact(a) |
5.2 |
|
|
(0.5 |
) |
|
|
|
6.5 |
|
|
(0.6 |
) |
|
|
Internal loss(a) |
10.8 |
|
|
2.5 |
|
|
|
|
(1.7 |
) |
|
(0.7 |
) |
|
|
Reporting compliance(a) |
0.5 |
|
|
— |
|
|
|
|
— |
|
|
— |
|
|
|
Income tax rate adjustment(b) |
— |
|
|
63.9 |
|
|
|
|
— |
|
|
4.2 |
|
|
|
Non-GAAP |
$ |
94.8 |
|
|
30.2 |
|
|
31.8 |
% |
|
$ |
157.3 |
|
|
50.4 |
|
|
32.0 |
% |
Amounts may not add due to rounding. (a) See “Other Items Not
Allocated To Segments” on pages 6-7 for details. We do not consider
these items to be reflective of our operating performance as they
result from events and circumstances that are not a part of our
core business.(b) Non-GAAP income from continuing operations and
non-GAAP EPS have been adjusted to reflect an effective income tax
rate in each interim period equal to the full-year non-GAAP
effective income tax rate. The full-year non-GAAP effective tax
rate is estimated at 32.0% for 2021 and was 31.8% for 2020.(c) Our
U.S. retirement plans are frozen and costs related to these plans
are excluded from non-GAAP results. Certain non-U.S. operations
also have retirement plans. Settlement charges and curtailment
gains related to these non-U.S. plans are also excluded from
non-GAAP results.(d) There is no difference between GAAP and
non-GAAP share-based compensation amounts for the periods
presented.(e) Due to the impact of Argentina highly inflationary
accounting, there was a $0.1 million non-GAAP adjustment for a gain
in the fourth quarter of 2020. There is no difference between GAAP
and non-GAAP marketable securities gain and loss amounts for the
periods presented.(f) Adjusted EBITDA is defined as non-GAAP income
from continuing operations excluding the impact of non-GAAP
interest expense, non-GAAP income tax provision, non-GAAP
depreciation and amortization, non-GAAP share-based compensation
and non-GAAP marketable securities (gain) loss. (g) Because we
reported a loss from continuing operations on a GAAP basis in the
third quarter of 2020, GAAP EPS was calculated using basic shares.
However, as we reported income from continuing operations on a
non-GAAP basis in the third quarter of 2020, non-GAAP EPS was
calculated using diluted shares.
The Brink’s Company and
subsidiariesNon-GAAP Results Reconciled to GAAP
(Unaudited) - continued (In millions, except for
percentages and per share amounts)
|
2020 |
|
2021 |
|
1Q |
|
2Q |
|
3Q |
|
4Q |
|
Full Year |
|
1Q |
|
2Q |
|
Six Months |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenues: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP |
$ |
872.8 |
|
|
|
826.0 |
|
|
|
970.5 |
|
|
|
1,021.6 |
|
|
|
3,690.9 |
|
|
|
$ |
977.7 |
|
|
|
1,048.8 |
|
|
|
2,026.5 |
|
|
Non-GAAP |
$ |
872.8 |
|
|
|
826.0 |
|
|
|
970.5 |
|
|
|
1,021.6 |
|
|
|
3,690.9 |
|
|
|
$ |
977.7 |
|
|
|
1,048.8 |
|
|
|
2,026.5 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating profit
(loss): |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP |
$ |
26.2 |
|
|
|
(1.0 |
) |
|
|
76.4 |
|
|
|
111.9 |
|
|
|
213.5 |
|
|
|
$ |
61.7 |
|
|
|
73.3 |
|
|
|
135.0 |
|
|
Reorganization and Restructuring(a) |
5.6 |
|
|
|
39.0 |
|
|
|
5.1 |
|
|
|
16.9 |
|
|
|
66.6 |
|
|
|
6.6 |
|
|
|
15.1 |
|
|
|
21.7 |
|
|
Acquisitions and dispositions(a) |
19.1 |
|
|
|
30.9 |
|
|
|
16.2 |
|
|
|
16.9 |
|
|
|
83.1 |
|
|
|
18.7 |
|
|
|
20.5 |
|
|
|
39.2 |
|
|
Argentina highly inflationary impact(a) |
2.4 |
|
|
|
2.8 |
|
|
|
3.2 |
|
|
|
2.3 |
|
|
|
10.7 |
|
|
|
3.9 |
|
|
|
2.6 |
|
|
|
6.5 |
|
|
Internal loss(a) |
9.6 |
|
|
|
1.2 |
|
|
|
(0.9 |
) |
|
|
(3.0 |
) |
|
|
6.9 |
|
|
|
(0.8 |
) |
|
|
(0.9 |
) |
|
|
(1.7 |
) |
|
Reporting compliance(a) |
0.2 |
|
|
|
0.3 |
|
|
|
(0.1 |
) |
|
|
0.1 |
|
|
|
0.5 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
Non-GAAP |
$ |
63.1 |
|
|
|
73.2 |
|
|
|
99.9 |
|
|
|
145.1 |
|
|
|
381.3 |
|
|
|
$ |
90.1 |
|
|
|
110.6 |
|
|
|
200.7 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating
margin: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP margin |
3.0 |
|
% |
|
(0.1 |
) |
% |
|
7.9 |
|
% |
|
11.0 |
|
% |
|
5.8 |
|
% |
|
6.3 |
|
% |
|
7.0 |
|
% |
|
6.7 |
|
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-GAAP margin |
7.2 |
|
% |
|
8.9 |
|
% |
|
10.3 |
|
% |
|
14.2 |
|
% |
|
10.3 |
|
% |
|
9.2 |
|
% |
|
10.5 |
|
% |
|
9.9 |
|
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest
expense: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP |
$ |
(20.0 |
) |
|
|
(23.2 |
) |
|
|
(27.1 |
) |
|
|
(26.2 |
) |
|
|
(96.5 |
) |
|
|
$ |
(27.2 |
) |
|
|
(28.2 |
) |
|
|
(55.4 |
) |
|
Acquisitions and dispositions(a) |
0.7 |
|
|
|
0.3 |
|
|
|
0.5 |
|
|
|
0.4 |
|
|
|
1.9 |
|
|
|
0.3 |
|
|
|
0.5 |
|
|
|
0.8 |
|
|
Non-GAAP |
$ |
(19.3 |
) |
|
|
(22.9 |
) |
|
|
(26.6 |
) |
|
|
(25.8 |
) |
|
|
(94.6 |
) |
|
|
$ |
(26.9 |
) |
|
|
(27.7 |
) |
|
|
(54.6 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest and other
income (expense): |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP |
$ |
(15.6 |
) |
|
|
(3.0 |
) |
|
|
(12.8 |
) |
|
|
(6.3 |
) |
|
|
(37.7 |
) |
|
|
$ |
(5.5 |
) |
|
|
4.6 |
|
|
|
(0.9 |
) |
|
Retirement plans(c) |
7.7 |
|
|
|
8.1 |
|
|
|
8.7 |
|
|
|
9.3 |
|
|
|
33.8 |
|
|
|
6.4 |
|
|
|
6.7 |
|
|
|
13.1 |
|
|
Reorganization and Restructuring(a) |
— |
|
|
|
— |
|
|
|
0.5 |
|
|
|
— |
|
|
|
0.5 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
Acquisitions and dispositions(a) |
3.0 |
|
|
|
0.5 |
|
|
|
0.4 |
|
|
|
2.6 |
|
|
|
6.5 |
|
|
|
0.2 |
|
|
|
(1.2 |
) |
|
|
(1.0 |
) |
|
Argentina highly inflationary impact(a) |
— |
|
|
|
— |
|
|
|
— |
|
|
|
(0.1 |
) |
|
|
(0.1 |
) |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
Non-GAAP |
$ |
(4.9 |
) |
|
|
5.6 |
|
|
|
(3.2 |
) |
|
|
5.5 |
|
|
|
3.0 |
|
|
|
$ |
1.1 |
|
|
|
10.1 |
|
|
|
11.2 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Taxes: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP |
$ |
(12.2 |
) |
|
|
(43.2 |
) |
|
|
58.9 |
|
|
|
53.1 |
|
|
|
56.6 |
|
|
|
$ |
13.6 |
|
|
|
22.7 |
|
|
|
36.3 |
|
|
Retirement plans(c) |
1.8 |
|
|
|
1.9 |
|
|
|
2.1 |
|
|
|
2.1 |
|
|
|
7.9 |
|
|
|
1.9 |
|
|
|
1.8 |
|
|
|
3.7 |
|
|
Reorganization and Restructuring(a) |
1.3 |
|
|
|
9.0 |
|
|
|
1.3 |
|
|
|
4.2 |
|
|
|
15.8 |
|
|
|
1.6 |
|
|
|
3.7 |
|
|
|
5.3 |
|
|
Acquisitions and dispositions(a) |
2.1 |
|
|
|
3.6 |
|
|
|
4.0 |
|
|
|
1.9 |
|
|
|
11.6 |
|
|
|
0.5 |
|
|
|
1.7 |
|
|
|
2.2 |
|
|
Argentina highly inflationary impact(a) |
(0.2 |
) |
|
|
(0.3 |
) |
|
|
(0.2 |
) |
|
|
(0.6 |
) |
|
|
(1.3 |
) |
|
|
(0.3 |
) |
|
|
(0.3 |
) |
|
|
(0.6 |
) |
|
Internal loss(a) |
2.2 |
|
|
|
0.3 |
|
|
|
(0.2 |
) |
|
|
(0.7 |
) |
|
|
1.6 |
|
|
|
(0.4 |
) |
|
|
(0.3 |
) |
|
|
(0.7 |
) |
|
Income tax rate adjustment(b) |
17.4 |
|
|
|
46.5 |
|
|
|
(43.6 |
) |
|
|
(20.3 |
) |
|
|
— |
|
|
|
3.7 |
|
|
|
0.5 |
|
|
|
4.2 |
|
|
Non-GAAP |
$ |
12.4 |
|
|
|
17.8 |
|
|
|
22.3 |
|
|
|
39.7 |
|
|
|
92.2 |
|
|
|
$ |
20.6 |
|
|
|
29.8 |
|
|
|
50.4 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Noncontrolling
interests: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP |
$ |
1.0 |
|
|
|
2.3 |
|
|
|
1.4 |
|
|
|
1.2 |
|
|
|
5.9 |
|
|
|
$ |
2.7 |
|
|
|
3.0 |
|
|
|
5.7 |
|
|
Reorganization and Restructuring(a) |
0.1 |
|
|
|
— |
|
|
|
0.2 |
|
|
|
— |
|
|
|
0.3 |
|
|
|
0.1 |
|
|
|
0.4 |
|
|
|
0.5 |
|
|
Acquisitions and dispositions(a) |
— |
|
|
|
0.1 |
|
|
|
0.2 |
|
|
|
0.2 |
|
|
|
0.5 |
|
|
|
0.5 |
|
|
|
(0.1 |
) |
|
|
0.4 |
|
|
Income tax rate adjustment(b) |
(0.4 |
) |
|
|
(1.6 |
) |
|
|
1.0 |
|
|
|
1.0 |
|
|
|
— |
|
|
|
(0.7 |
) |
|
|
0.4 |
|
|
|
(0.3 |
) |
|
Non-GAAP |
$ |
0.7 |
|
|
|
0.8 |
|
|
|
2.8 |
|
|
|
2.4 |
|
|
|
6.7 |
|
|
|
$ |
2.6 |
|
|
|
3.7 |
|
|
|
6.3 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Amounts may not add due to rounding. See page 8 for
footnote explanations.
|
2020 |
|
2021 |
|
1Q |
|
2Q |
|
3Q |
|
4Q |
|
Full Year |
|
1Q |
|
2Q |
|
Six Months |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income (loss) from
continuing operations attributable to Brink's: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP |
$ |
1.8 |
|
|
|
13.7 |
|
|
|
(23.8 |
) |
|
|
25.1 |
|
|
|
16.8 |
|
|
|
$ |
12.7 |
|
|
|
24.0 |
|
|
|
36.7 |
|
|
Retirement plans(c) |
5.9 |
|
|
|
6.2 |
|
|
|
6.6 |
|
|
|
7.2 |
|
|
|
25.9 |
|
|
|
4.5 |
|
|
|
4.9 |
|
|
|
9.4 |
|
|
Reorganization and Restructuring(a) |
4.2 |
|
|
|
30.0 |
|
|
|
4.1 |
|
|
|
12.7 |
|
|
|
51.0 |
|
|
|
4.9 |
|
|
|
11.0 |
|
|
|
15.9 |
|
|
Acquisitions and dispositions(a) |
20.7 |
|
|
|
28.0 |
|
|
|
12.9 |
|
|
|
17.8 |
|
|
|
79.4 |
|
|
|
18.2 |
|
|
|
18.2 |
|
|
|
36.4 |
|
|
Argentina highly inflationary impact(a) |
2.6 |
|
|
|
3.1 |
|
|
|
3.4 |
|
|
|
2.8 |
|
|
|
11.9 |
|
|
|
4.2 |
|
|
|
2.9 |
|
|
|
7.1 |
|
|
Internal loss(a) |
7.4 |
|
|
|
0.9 |
|
|
|
(0.7 |
) |
|
|
(2.3 |
) |
|
|
5.3 |
|
|
|
(0.4 |
) |
|
|
(0.6 |
) |
|
|
(1.0 |
) |
|
Reporting compliance(a) |
0.2 |
|
|
|
0.3 |
|
|
|
(0.1 |
) |
|
|
0.1 |
|
|
|
0.5 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
Income tax rate adjustment(b) |
(17.0 |
) |
|
|
(44.9 |
) |
|
|
42.6 |
|
|
|
19.3 |
|
|
|
— |
|
|
|
(3.0 |
) |
|
|
(0.9 |
) |
|
|
(3.9 |
) |
|
Non-GAAP |
$ |
25.8 |
|
|
|
37.3 |
|
|
|
45.0 |
|
|
|
82.7 |
|
|
|
190.8 |
|
|
|
$ |
41.1 |
|
|
|
59.5 |
|
|
|
100.6 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted
EBITDA(f): |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income (loss) attributable to Brink's - GAAP |
$ |
1.8 |
|
|
|
12.9 |
|
|
|
(23.9 |
) |
|
|
25.2 |
|
|
|
16.0 |
|
|
|
$ |
12.7 |
|
|
|
23.9 |
|
|
|
36.6 |
|
|
Interest expense - GAAP |
20.0 |
|
|
|
23.2 |
|
|
|
27.1 |
|
|
|
26.2 |
|
|
|
96.5 |
|
|
|
27.2 |
|
|
|
28.2 |
|
|
|
55.4 |
|
|
Income tax provision - GAAP |
(12.2 |
) |
|
|
(43.2 |
) |
|
|
58.9 |
|
|
|
53.1 |
|
|
|
56.6 |
|
|
|
13.6 |
|
|
|
22.7 |
|
|
|
36.3 |
|
|
Depreciation and amortization - GAAP |
45.0 |
|
|
|
52.1 |
|
|
|
55.1 |
|
|
|
54.6 |
|
|
|
206.8 |
|
|
|
54.8 |
|
|
|
61.7 |
|
|
|
116.5 |
|
|
EBITDA |
$ |
54.6 |
|
|
|
45.0 |
|
|
|
117.2 |
|
|
|
159.1 |
|
|
|
375.9 |
|
|
|
$ |
108.3 |
|
|
|
136.5 |
|
|
|
244.8 |
|
|
Discontinued operations - GAAP |
— |
|
|
|
0.8 |
|
|
|
0.1 |
|
|
|
(0.1 |
) |
|
|
0.8 |
|
|
|
— |
|
|
|
0.1 |
|
|
|
0.1 |
|
|
Retirement plans(c) |
7.7 |
|
|
|
8.1 |
|
|
|
8.7 |
|
|
|
9.3 |
|
|
|
33.8 |
|
|
|
6.4 |
|
|
|
6.7 |
|
|
|
13.1 |
|
|
Reorganization and Restructuring(a) |
5.5 |
|
|
|
38.7 |
|
|
|
4.8 |
|
|
|
16.5 |
|
|
|
65.5 |
|
|
|
6.4 |
|
|
|
14.6 |
|
|
|
21.0 |
|
|
Acquisitions and dispositions(a) |
14.7 |
|
|
|
22.2 |
|
|
|
7.0 |
|
|
|
9.1 |
|
|
|
53.0 |
|
|
|
8.5 |
|
|
|
6.6 |
|
|
|
15.1 |
|
|
Argentina highly inflationary impact(a) |
1.7 |
|
|
|
2.1 |
|
|
|
2.4 |
|
|
|
2.6 |
|
|
|
8.8 |
|
|
|
3.4 |
|
|
|
2.1 |
|
|
|
5.5 |
|
|
Internal loss(a) |
9.6 |
|
|
|
1.2 |
|
|
|
(0.9 |
) |
|
|
(3.0 |
) |
|
|
6.9 |
|
|
|
(0.8 |
) |
|
|
(0.9 |
) |
|
|
(1.7 |
) |
|
Reporting compliance(a) |
0.2 |
|
|
|
0.3 |
|
|
|
(0.1 |
) |
|
|
0.1 |
|
|
|
0.5 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
Income tax rate adjustment(b) |
0.4 |
|
|
|
1.6 |
|
|
|
(1.0 |
) |
|
|
(1.0 |
) |
|
|
— |
|
|
|
0.7 |
|
|
|
(0.4 |
) |
|
|
0.3 |
|
|
Share-based compensation(d) |
7.2 |
|
|
|
5.4 |
|
|
|
8.7 |
|
|
|
10.0 |
|
|
|
31.3 |
|
|
|
7.6 |
|
|
|
11.1 |
|
|
|
18.7 |
|
|
Marketable securities (gain) loss(e) |
2.5 |
|
|
|
(5.9 |
) |
|
|
1.1 |
|
|
|
(8.2 |
) |
|
|
(10.5 |
) |
|
|
(3.4 |
) |
|
|
(10.8 |
) |
|
|
(14.2 |
) |
|
Adjusted EBITDA |
$ |
104.1 |
|
|
|
119.5 |
|
|
|
148.0 |
|
|
|
194.4 |
|
|
|
566.0 |
|
|
|
$ |
137.1 |
|
|
|
165.6 |
|
|
|
302.7 |
|
|
EPS: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP |
$ |
0.03 |
|
|
|
0.27 |
|
|
|
(0.47 |
) |
|
|
0.50 |
|
|
|
0.33 |
|
|
|
$ |
0.25 |
|
|
|
0.47 |
|
|
|
0.73 |
|
|
Retirement plans(c) |
0.12 |
|
|
|
0.12 |
|
|
|
0.13 |
|
|
|
0.14 |
|
|
|
0.51 |
|
|
|
0.09 |
|
|
|
0.10 |
|
|
|
0.19 |
|
|
Reorganization and Restructuring costs(a) |
0.08 |
|
|
|
0.59 |
|
|
|
0.08 |
|
|
|
0.25 |
|
|
|
1.00 |
|
|
|
0.10 |
|
|
|
0.22 |
|
|
|
0.32 |
|
|
Acquisitions and dispositions(a) |
0.40 |
|
|
|
0.55 |
|
|
|
0.26 |
|
|
|
0.35 |
|
|
|
1.56 |
|
|
|
0.36 |
|
|
|
0.36 |
|
|
|
0.72 |
|
|
Argentina highly inflationary impact(a) |
0.05 |
|
|
|
0.06 |
|
|
|
0.07 |
|
|
|
0.06 |
|
|
|
0.23 |
|
|
|
0.08 |
|
|
|
0.06 |
|
|
|
0.14 |
|
|
Internal loss(a) |
0.14 |
|
|
|
0.02 |
|
|
|
(0.01 |
) |
|
|
(0.05 |
) |
|
|
0.10 |
|
|
|
(0.01 |
) |
|
|
(0.01 |
) |
|
|
(0.02 |
) |
|
Reporting compliance(a) |
— |
|
|
|
0.01 |
|
|
|
— |
|
|
|
— |
|
|
|
0.01 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
Income tax rate adjustment(b) |
(0.33 |
) |
|
|
(0.88 |
) |
|
|
0.84 |
|
|
|
0.38 |
|
|
|
— |
|
|
|
(0.06 |
) |
|
|
(0.02 |
) |
|
|
(0.08 |
) |
|
Share adjustment(g) |
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
Non-GAAP |
$ |
0.50 |
|
|
|
0.73 |
|
|
|
0.89 |
|
|
|
1.64 |
|
|
|
3.76 |
|
|
|
$ |
0.81 |
|
|
|
1.18 |
|
|
|
1.99 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Depreciation and
Amortization: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP |
$ |
45.0 |
|
|
|
52.1 |
|
|
|
55.1 |
|
|
|
54.6 |
|
|
|
206.8 |
|
|
|
$ |
54.8 |
|
|
|
61.7 |
|
|
|
116.5 |
|
|
Reorganization and Restructuring costs(a) |
— |
|
|
|
(0.3 |
) |
|
|
(0.6 |
) |
|
|
(0.4 |
) |
|
|
(1.3 |
) |
|
|
(0.1 |
) |
|
|
(0.1 |
) |
|
|
(0.2 |
) |
|
Acquisitions and dispositions(a) |
(7.4 |
) |
|
|
(9.1 |
) |
|
|
(9.4 |
) |
|
|
(10.2 |
) |
|
|
(36.1 |
) |
|
|
(9.9 |
) |
|
|
(12.8 |
) |
|
|
(22.7 |
) |
|
Argentina highly inflationary impact(a) |
(0.7 |
) |
|
|
(0.7 |
) |
|
|
(0.8 |
) |
|
|
0.4 |
|
|
|
(1.8 |
) |
|
|
(0.5 |
) |
|
|
(0.5 |
) |
|
|
(1.0 |
) |
|
Non-GAAP |
$ |
36.9 |
|
|
|
42.0 |
|
|
|
44.3 |
|
|
|
44.4 |
|
|
|
167.6 |
|
|
|
$ |
44.3 |
|
|
|
48.3 |
|
|
|
92.6 |
|
|
Amounts may not add due to rounding. See page 8 for
footnote explanations.
Contact: Investor Relations804.289.9709
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