Slide 1: Third-Quarter 2012 Earnings Conference Call
The Brink’s Company Third-Quarter 2012 Earnings Conference Call NYSE:BCO October 25, 2012 Exhibit 99.2
Slide 2: Forward-Looking Statements
Forward-Looking Statements These materials contain forward-looking statements. Actual results could differ materially from projected or estimated results. Information regarding factors that could cause such differences is available in today's release and in The Brink’s Company’s most recent SEC fili
Slide 3: The Brink's Company - Ed Cunningham
The Brink’s Company Ed Cunningham Director - Investor Relations and Corporate Communications
Slide 4: Highlights of Third-Quarter Non-GAAP Results
Highlights of Third-Quarter Non-GAAP Results • EPS $.50 vs $.60 • Lower profits in Latin America offset improvement in Europe and North America • Segment margin 6.2% vs 7.2% • Revenue down 2%, 6% organic growth Note : See reconciliation to GAAP results in Appendix
Slide 5: The Brink's Company - Tom Schievelbein
The Brink’s Company Tom Schievelbein Chairman, President and Chief Executive Officer
Slide 6: Third-Quarter Overview
Third-Quarter Overview • Lower profits in Latin America, including: • Argentina receivable • Venezuela profit decline • Profit growth in North America and Europe • Full-year 2012 segment margin outlook 6.7% vs 6.3% in 2011 • Initial 2013 outlook: 7% segment margin rate Note : See reconciliation to G
Slide 7: Actions
Actions • Reduce operating expenses and continue productivity improvements in North America • Portfolio review in EMEA • Disciplined capital expenditures • Strengthen/realign senior leadership
Slide 8: The Brink's Company - Review and Outlook
The Brink’s Company Joe Dziedzic Vice President and Chief Financial Officer Review and Outlook
Slide 9: 3Q12 Non-GAAP Results
Margin 7.2% 6.2% Year-to-Date $2,888 $2,913 $173 $180 $1.34 $1.47 Margin 6.0 % 6.2% 3Q12 Non-GAAP Results ($ millions, except EPS) Segment Operating Profit Revenue EPS Note : See reconciliation to GAAP results in Appendix
Slide 10: Non-GAAP EPS: 3Q12 Versus 3Q11
Non-GAAP EPS: 3Q12 Versus 3Q11 Segment Operating Profit Non-Segment Expense Interest Expense, Net Non- Controlling Interest Tax Rate 3Q11 3Q12 Note : See reconciliation to GAAP results in Appendix $(0.06) Fx $(0.06) Venezuela $(0.05) Argentina gov’t receivable $ 0.03 Other $0.02 Venezuela $0.02 Othe
Slide 11: Non-GAAP EPS: 3Q12YTD Versus 3Q11YTD
Non-GAAP EPS: 3Q12YTD Versus 3Q11YTD Segment Operating Profit Non-Segment Expense Interest Expense, Net Non- Controlling Interest Tax Rate 3Q11YTD 3Q12YTD Note : See reconciliation to GAAP results in Appendix $ (0.15) Fx $ (0.07) Venezuela $ (0.05) Argentina gov’t receivable $ 0.36 Primarily Europe
Slide 12: Total Non-GAAP Segment Results and Outlook
Margin 7.2% 6.2% Total Non-GAAP Segment Results and Outlook 3Q12 Results 2012 Outlook — Margin guidance lowered to 6.7% — 5% - 8% organic revenue growth — U.S. actions improve profitability — Europe operations stable to improving in a difficult environment — Lower profits in Latin America driven by
Slide 13: North America Non-GAAP Segment Results and Outlook
Margin 3.9% 4.5% North America Non-GAAP Segment Results and Outlook 3Q12 Results 2012 Outlook — Revenue down organically — Margin improvement — U.S. cost reductions/productivity offset price and volume pressure — First nine months margin 4.5% versus 3.9% — Revenue down slightly — U.S. cost reduction
Slide 14: International Non-GAAP Segment Results and Outlook
Margin 8.3% 6.7% International Non-GAAP Segment Results and Outlook 3Q12 Results 2012 Outlook ($ millions) — Revenue Growth — Organic growth $67 — Currency down ($75) — Profit Growth — Organic down ($8) — Currency down ($5) — Profit decline in Latin America due to multiple countries, including Venez
Slide 15: Non-GAAP Cash Flow, Capital Investment, and Net Debt
15 Non-GAAP Cash Flow, Capital Investment, and Net Debt ($ millions) (a) See reconciliation to GAAP results in Appendix Non-GAAP CFOA (a) $132 $159 North America International Capital Expenditures and Capital Leases Net Debt (a)
Slide 16: Capital Deployment: 2012 and 2013 Outlook
5-8% Organic (3-5%) Currency impact Margin 6.3% 6.7% ~7% 5-8% Organic (3-5%) Currency impact Capital Deployment 2012 and 2013 Outlook ($ millions) — Future pension contributions in cash — 2012 Capital Expenditures/Leases below (a) (a) See reconciliation to GAAP results in Appendix — Strong organic g
Slide 17: Third-Quarter 2012 Earnings Conference Call
The Brink’s Company Third-Quarter 2012 Earnings Conference Call NYSE:BCO October 25, 2012
Slide 18: Appendix - Non-GAAP Reconciliations
Appendix - Non-GAAP Reconciliations
Slide 19: Non-GAAP Reconciliations - 3Q12
Non-GAAP Reconciliations - 3Q12 GAAP Basis Gain and Losses on Acquisitions and Dispositions (a) Employee Benefit Settlement and Severance Losses (b) U.S. Retirement Plans (c) Adjust Income Tax Rate (e) Non- GAAP Basis Third Quarter 2012 Operating profit: International $ 50.8 (2.9) 2.0 - - 49.9 Segme
Slide 20: Non-GAAP Reconciliations - 3Q12YTD
Non-GAAP Reconciliations - 3Q12YTD GAAP Basis Gain and Losses on Acquisitions and Dispositions (a) Employee Benefit Settlement and Severance Losses (b) U.S. Retirement Plans (c) Tax Benefit on Change in Health Care Funding Strategy (d) Adjust Income Tax Rate (e) Non- GAAP Basis Nine Months 2012 Oper
Slide 21: Non-GAAP Reconciliations - 3Q11
Non-GAAP Reconciliations -3Q11 GAAP Basis Gains on Acquisitions and Dispositions (a) Employee Benefit Settlement Losses (c) U.S. Retirement Plans (d) Adjust Income Tax Rate (e) Non-GAAP Basis Third Quarter 2011 Operating profit: International $ 61.4 - 0.7 - - 62.1 North America 8.7 - - 0.8 - 9.5 Seg
Slide 22: Non-GAAP Reconciliations - 3Q11YTD
Third Quarter 2011 Nine Months 2011 (In millions, except per share amounts) Operating Profit EPS Operating Profit EPS Sale of U.S. Document Destruction business $ (6.7) $ (0.09) $ (6.7) $ (0.09) Gains on available-for-sale equity and debt securities - - - (0.05) Acquisition of controlling interests
Slide 23: Full Year 2011 Non-GAAP Reconciliation
Full Year 2011 Operating Profit EPS Sale of U.S. Document Destruction business $ (6.7) (0.09) Gains on available-for-sale equity and debt securities - (0.05) Acquisition of controlling interests (2.5) (0.05) Sale of former operating assets (0.5) (0.01) $ (9.7) (0.20) (b) To eliminate settlement char
Slide 24: Non-GAAP Reconciliations - Cash Flows
NON-GAAP CASH FLOWS FROM OPERATING ACTIVITIES - RECONCILED TO AMOUNTS REPORTED UNDER U.S. GAAP First Nine Months 2012 2011 (Increase) Decrease in certain customer obligations (a) (0.2) 8.0 Discontinued operations (b) - (1.4) Cash flows from operating activities - Non-GAAP $ 129.1 $ 176.6 Non-GAAP Re
Slide 25: Net Debt Reconciled to GAAP
NET DEBT RECONCILED TO GAAP September 30, December 31, 2012 2011 Debt: $ Long-term 392.6 364.0 Cash and cash equivalents 202.7 182.9 Less amounts held by cash logistics operations (a) (26.4) (25.1) Cash and cash equivalents available for general corporate purposes 176.3 157.8 Net Debt $ 248.9 231.6