Brinks Company (the) · NYSE:BCO
Brinks Company (the) — Q1 2024 Earnings Presentation
23 slides from Brinks Company (the)'s earnings presentation, May 8, 2024
Slide 1: First-Quarter 2024 Earnings
First-Quarter 2024 Earnings May 8, 2024
Slide 2: Safe Harbor Statements and Non-GAAP Results
Safe Harbor Statements and Non-GAAP Results These materials contain forward-looking information. Words such as "anticipate," "assume," "estimate," "expect," “target” "project," “model”, "predict," "intend," "plan," "believe," "potential," "may," "should" and similar expressions may identify forward-
Slide 3: Key Messages
Key Messages (non-GAAP, $ millions, except EPS) Record First-Quarter 2024 results • Reported revenue - up 4% with organic growth of 12% – AMS/DRS organic growth of +18% and CVM organic growth of +11% • Adjusted EBITDA +15% to $218M, margin 17.7% up 160bps • EPS +20% to $1.52 • Trailing-twelve-month
Slide 4: Record First-Quarter 2024 Results
Record First-Quarter 2024 Results Strong Performance Across All Metrics (non-GAAP, $ millions, except EPS) Revenue +4% Adj. EBITDA +15% EPS +20% TTM Free Cash Flow +61% Constant Currency +12% Constant Currency +30% Constant Currency +57% Conversion of 41%1 Organic +12% Acq -% FX (8%) $1,236 $1,185 $
Slide 5: First-Quarter 2024 Revenue & Adjusted EBITDA by Segment
First-Quarter 2024 Revenue & Adjusted EBITDA by Segment Organic Growth Across Each Segment ($ millions) North America Latin America Europe Rest of World Revenue +1% Adj. EBITDA +21% Revenue +6% Adj. EBITDA (3%) Revenue +8% Adj. EBITDA +14% Revenue +3% Adj EBITDA +10% Constant currency +1% +21% Const
Slide 6: AMS/DRS Delivering Growth and Margin Improvement
AMS/DRS Delivering Growth and Margin Improvement Organic Growth Acceleration in Both CVM and AMS/DRS Customer Offerings ($ millions) Brink’s Revenue Mix Customer Offerings Cash & Valuables Management • Q1 organic growth of 11% • Strategic pricing initiatives • Stabilization in commodities movement a
Slide 7: First-Quarter Revenue and Adjusted EBITDA vs 2023
First-Quarter Revenue and Adjusted EBITDA vs 2023 Double-digit Organic Growth and Adjusted EBITDA Growth (non-GAAP, $ millions) Revenue Adjusted EBITDA % Change 12% -% 12% (8%) 4% % Change 30% -% 30% (16%) 15% Organic +$146 $43 $2 $1,333 ( $97 ) $103 $1,236 $1,185 $58 ( $0 ) $248 ( $30 ) +18% +11% $
Slide 8: First-Quarter Adjusted EBITDA and EPS vs 2023
First-Quarter Adjusted EBITDA and EPS vs 2023 (non-GAAP, $ millions, except EPS) Diluted Shares 2024 EPS: $1.52 45.3 million 2023 EPS: $1.27 47.4 million +15% $9 $218 $29 $56 $145 ( $56 ) $56 11.7% 17.7% Margin Margin ( $29 ) $9 $69 Op Profit Interest Expense Taxes Other Income from D&A Interest Exp
Slide 9: Capital Allocation Framework
Capital Allocation Framework Organic • Strategic investments driving growth and profitability Investments 2x - 3x Net • Q1 Net Debt to Adj. EBITDA within targeted range Debt Target $415 - $465M in targeted 2024 Free Cash Flow, Conversion of ~46% Share Repurchase • $464M remaining authorization1 Retu
Slide 10: 2024 Guidance Affirmed
2024 Guidance Affirmed (non-GAAP, $ millions, except EPS) Mid-single organic growth driving low double-digit EBITDA and FCF growth 2023 2024 Actual Guidance Growth Revenue $4,875 $5,075 - 5,225 ~ 6% • Strong organic growth - low to mid-teens • Mid-single digit organic growth netting the impact of ex
Slide 11: Appendix
Appendix
Slide 12: Our Strategic Pillars
Our Strategic Pillars GROWING BRINK’S BY PROVIDING A SUPERIOR CUSTOMER EXPERIENCE AND DRIVING CONTINUOUS IMPROVEMENT OUR STRATEGIC PILLARS GROWTH & OPERATIONAL CUSTOMER LOYALTY INNOVATION EXCELLENCE TALENT Put customers Find new ways to Run the business Position our first create value better team to
Slide 13: First-Quarter 2024 Revenue & Operating Profit by Segment
First-Quarter 2024 Revenue & Operating Profit by Segment Organic Growth Across Each Segment ($ millions) North America Latin America Europe Rest of World Revenue +1% Op Profit +25% Revenue +6% Op Profit (5%) Revenue +8% Op Profit 18% Revenue +3% Op Profit +10% Constant currency +1% +25% Constant cur
Slide 14: Net Debt and Leverage
Net Debt and Leverage Leverage Within Targeted Range (Non-GAAP, $ millions) Net Debt Adjusted EBITDA and Financial Leverage $2,658 2 $2,521 Leverage Ratio 2.91 2.97 $895 $1,663 $867 Secured $1,527 Net Debt Adjusted EBITDA Unsecured Senior $994 $995 Notes 1 12/31/2023 3/31/2024 2023 Q1 2024 Actual Ac
Slide 15: 2022 Non-GAAP Results Reconciled to GAAP (1 of 3)
2022 Non-GAAP Results Reconciled to GAAP (1 of 3) The Brink’s Company and subsidiaries Non-GAAP Reconciliations 2022 (In millions) Q1 Revenues: GAAP $ 1,074.0 Non-GAAP $ 1,074.0 Operating profit (loss): GAAP $ 62.4 Reorganization and Restructuring (a) 11.7 Acquisitions and dispositions (a) 15.2 Arge
Slide 16: 2022 Non-GAAP Results Reconciled to GAAP (2 of 3)
2022 Non-GAAP Results Reconciled to GAAP (2 of 3) The Brink’s Company and subsidiaries Non-GAAP Reconciliations (In millions, except for per share amounts) 2022 Q1 Incom e (loss) from continuing operations attributable to Brink's: GAAP $ 71.4 Retirement plans (c) 2.4 Reorganization and Restructuring
Slide 17: 2022 Non-GAAP Results Reconciled to GAAP (3 of 3)
2022 Non-GAAP Results Reconciled to GAAP (3 of 3) The Brink’s Company and subsidiaries Non-GAAP Reconciliations (In millions) 2021 2022 Q1 Full Year Q1 Full Year Adjusted EBITDA(d): Net income attributable to Brink's - GAAP $ 12.7 105.2 $ 71.3 170.6 Interest expense - GAAP 27.2 112.2 27.9 138.8 Inco
Slide 18: Non-GAAP Reconciliation – Other
Non-GAAP Reconciliation – Other 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. See below for a summary of the other items not al
Slide 19: Non-GAAP Reconciliation – Other
Non-GAAP Reconciliation – Other The Brink’s Company and subsidiaries Other Items Not Allocated to Segments (Unaudited) (In millions) Change in allowance estimate In the first quarter of 2022, we refined our global methodology of estimating the allowance for doubtful accounts. Our previous method to
Slide 20: Non-GAAP Reconciliation – Cash Flows
Non-GAAP Reconciliation – Cash Flows The Brink’s Company and subsidiaries Non-GAAP Reconciliations (In millions) Q1 Full Year Q1 Full Year 2021 2021 2022 2022 Free cash flow before dividends Cash flows from operating activities Operating activities - GAAP $ (1.5) $ 478.0 $ (76.3) $ 479.9 (Increase)
Slide 21: Non-GAAP Reconciliation – Net Debt
Non-GAAP Reconciliation – Net Debt The Brink’s Company and subsidiaries Non-GAAP Reconciliations (In millions) December 31, March 31, (In millions) 2023 2024 Debt: Short-term borrowings $ 151.7 $ 155.0 Long-term debt 3,379.6 3,434.9 Total Debt 3,531.3 3,589.9 Less: Cash and cash equivalents 1,176.6
Slide 22: Non-GAAP Reconciliation – Segment Adjusted EBITDA
Non-GAAP Reconciliation – Segment Adjusted EBITDA The Brink’s Company and subsidiaries (In millions) Segment Adjusted EBITDA: 2023 2024 Q1 Q1 Add back: Add back: Depreciation Segment Depreciation Segment GAAP and Adjusted and Adjusted amounts amortization EBITDA GAAP amounts amortization EBITDA Oper
Slide 23: Adjusted EBITDA Reconciliation
Adjusted EBITDA Reconciliation The Brink’s Company and subsidiaries (In millions) 2023 2024 Q1 Q1 North America $ 56.5 $ 68.5 Latin America 79.4 77.1 Europe 35.1 39.9 Rest of World 43.2 47.5 (a) Total segment adjusted EBITDA $ 214.2 $ 233.0 Corporate expenses (37.1) (33.4) Corporate depreciation and