Brinks Company (the) · NYSE:BCO
Brinks Company (the) — Q4 2023 Earnings Presentation
28 slides from Brinks Company (the)'s earnings presentation, Feb 29, 2024
Slide 1: Fourth-Quarter 2023 Earnings
Fourth-Quarter 2023 Earnings February 29, 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 Fourth-Quarter 2023 results (non-GAAP, $ millions, except EPS) • Reported revenue up 5%... +9% total organic growth with 21% of revenue in AMS/DRS • Profitability impacted by geopolitical and economic pressure in certain markets • Operating profit +1% to $190M… Adjusted EBITDA +2% to $2
Slide 4: Full-Year 2023 Results
Full-Year 2023 Results Record Revenue, Adjusted EBITDA, EPS and Free Cash Flow (non-GAAP, $ millions, except EPS) Revenue +7% Adj. EBITDA +10% EPS +23% Free Cash Flow +93% Constant Currency +11% Constant Currency +19% Constant Currency +42% Conversion of 45% 2 Organic +9% Acq +2% FX (4%) $4,875 $4,5
Slide 5: Full-Year 2023 Results by Segment
Full-Year 2023 Results by Segment (Non-GAAP, $ millions) North America Latin America Europe Rest of World Revenue +1% Op Profit +16% Revenue +10% Op Profit +1% Revenue +22% Op Profit +27% Revenue (1%) Op Profit -% Constant currency +1% +16% Constant currency +24% +28% Constant currency +19% +23% Con
Slide 6: Historical Performance Establishes a Strong Foundation for 2024
Historical Performance Establishes a Strong Foundation for 2024 (Non-GAAP, $ millions) Adjusted EBITDA 14% CAGR 1 ~ $960 $867 Pandemic $788 $683 ~18.6% 17.8% $567 $566 17.4% $509 16.3% $424 15.4% 15.3% $342 14.8% 13.3% Adj. EBITDA Margin 11.7% 2016 2017 2018 2019 2020 2021 2022 2023 2024 Target Cons
Slide 7: AMS/DRS Delivering Growth and Margin Improvement in 2023
AMS/DRS Delivering Growth and Margin Improvement in 2023 ($ millions) Brink’s Revenue Mix Customer Offerings Cash & Valuables Management • Q4 and FY 2023 organic growth of 7% and 6% respectively • Disciplined pricing offsetting economic impacts in certain markets and global services headwinds 22-23%
Slide 8: Fourth-Quarter 2023 Results
Fourth-Quarter 2023 Results Record Revenue and Adjusted EBITDA (non-GAAP, $ millions, except EPS) Revenue +5% Adj. EBITDA +2% EPS +31% Free Cash Flow +36% Constant Currency +8% Constant Currency +13% Constant Currency +54% Conversion of 70% 1 Organic +9% Acq -% FX (4%) $177 $1,246 $1,191 $1,098 $2.7
Slide 9: Fourth-Quarter Revenue and Operating Profit vs 2022
Fourth-Quarter Revenue and Operating Profit vs 2022 Strong Organic Growth and Continued Operational Improvements (non-GAAP, $ millions) Revenue Operating Profit % Change 9% -% 8% (4%) 5% % Change 17% -% 17% (16%) 1% Organic +$102 $37 ( $2 ) $1,291 ( $46 ) $65 $1,246 $1,191 +17% $31 $0 $219 ( $29 ) +
Slide 10: Fourth-Quarter Adjusted EBITDA and EPS vs 2022
Fourth-Quarter Adjusted EBITDA and EPS vs 2022 (non-GAAP, $ millions, except EPS) Diluted Shares 2023 EPS: $2.76 45.9 million 2022 EPS: $2.10 47.5 million +2% $42 ( $29 ) $7 $252 $52 $190 ( $52 ) $53 15.2% 20.2% Margin ( $42 ) Margin $29 $3 $127 Op Profit Interest Taxes Gain / (Loss) Other Income fr
Slide 11: Record Free Cash Flow Generation
Record Free Cash Flow Generation (Non-GAAP, $ millions) Free Cash Flow & FCF as % of Adj EBITDA $393 $245 $206 $203 45% $170 $179 36% 36% 33% • Strong EBITDA growth driven by improving revenue mix, cost 32% productivity, and benefits of restructuring activities 26% • Significant working capital impr
Slide 12: Capital Allocation Priorities Remain Consistent
Capital Allocation Priorities Remain Consistent Organic • Targeting Capex less than 4% of revenue Investments 1 $393M Free Cash Flow in 2023 2x - 3x Net • 2.9x Net debt to Adj. EBITDA at year-end 2023 Highlights Debt Target • +$190M, a 93% YoY increase • FCF Conversion 45% of • $170M in 2023 Share R
Slide 13: 2024 Guidance
2024 Guidance (non-GAAP, $ millions, except EPS) Guidance Continues Growth in High Margin AMS/DRS Revenue 2023 2024 Actual Guidance Growth • Strong organic growth - low to mid-teens • Mid-single digit organic growth netting the impact Revenue $4,875 $5,075 - 5,225 ~ 6% of expected Argentina currency
Slide 14: 2024 Guidance Exceeds 2021 Investor Day Targets in Constant Currency
2024 Guidance Exceeds 2021 Investor Day Targets in Constant Currency (Non-GAAP, $ millions) 2024 Targets 2024 Guidance from 2021 Investor Day Midpoint Revenue $5.3-$5.5B >$400M $5.15B Guidance exceeds constant currency target FX Headwind AMS/DRS $500M Incremental >$600M Incremental Growth Exceed
Slide 15: Appendix
Appendix
Slide 16: Our Strategic Pillars
Our Strategic Pillars GROWING BRINK’S BY PROVIDING A SUPERIOR CUSTOMER EXPERIENCE AND DRIVING CONTINUOUS IMPROVEMENT e ~ a GROWTH & OPERATIONAL CUSTOMER LOYALTY INNOVATION EXCELLENCE TALENT Put customers Find new ways to Run the business Position our first create value better team to win IMIBRINKS —
Slide 17: Full-Year Revenue and Operating Profit vs 2022
Full-Year Revenue and Operating Profit vs 2022 (non-GAAP, $ millions) Revenue Operating Profit % Change 9% 2% 11% (4%) 7% % Change 22% 3% 25% (13%) 12% Organic +$394 $106 $5,035 ( $161 ) $154 $4,875 $241 $120 $16 $686 ( $71 ) $4,536 $615 +21% $550 +6% 12.1% 13.6% 12.6% Margin Margin Margin 2022 Orga
Slide 18: Full-Year Adjusted EBITDA and EPS vs 2022
Full-Year Adjusted EBITDA and EPS vs 2022 (non-GAAP, $ millions, except EPS) Diluted Shares 2023 EPS: $7.35 46.9 million 2022 EPS: $5.99 47.8 million +10% $118 ( $42 ) $33 $867 $203 $615 ( $203 ) $211 12.6% 17.8% Margin Margin ( $118 ) $42 $8 $345 Op Profit Interest Taxes Gain / (Loss) Other Income
Slide 19: Fourth-Quarter 2023 Results by Segment
Fourth-Quarter 2023 Results by Segment ($ millions) North America Latin America Europe Rest of World Revenue (2%) Op Profit (1%) Revenue +10% Op Profit (5%) Revenue +12% Op Profit +7% Revenue –% Op Profit –% Constant currency (2%) (1%) Constant currency +29% +31% Constant currency +7% +2% Constant c
Slide 20: Net Debt and Leverage
Net Debt and Leverage Reduced Leverage to 2.9x, Within Target Leverage Range (Non-GAAP, $ millions) Net Debt Adjusted EBITDA and Financial Leverage 2 Leverage Ratio 3.2 2.9 3 $2,516 $2,521 Adjusted Leverage Ratio 3.1 4 Secured Leverage Ratio 2.1 1.8 $867 Secured $1,524 $1,527 $815 3 Net Debt Adjuste
Slide 21: 2021 Non-GAAP Results Reconciled to GAAP (1 of 3)
2021 Non-GAAP Results Reconciled to GAAP (1 of 3) The Brink’s Company and subsidiaries Non-GAAP Reconciliations (In millions) 2021 Q4 Full Year Operating profit (loss): GAAP $ 145.5 354.7 Reorganization and Restructuring (a) 7.9 43.6 Acquisitions and dispositions (a) 16.1 71.9 Argentina highly infla
Slide 22: 2021 Non-GAAP Results Reconciled to GAAP (2 of 3)
2021 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) 2021 Q4 Full Year Incom e (loss) from continuing operations attributable to Brink's: GAAP $ 47.4 103.1 Retirement plans (c) 6.7 22.1 Reorganizat
Slide 23: 2021 Non-GAAP Results Reconciled to GAAP (3 of 3 with 2016-2020 Adj EBITDA)
2021 Non-GAAP Results Reconciled to GAAP (3 of 3 with 2016-2020 Adj EBITDA) The Brink’s Company and subsidiaries Non-GAAP Reconciliations (In millions) 2016 2017 2018 2019 2020 2021 Full Year Full Year Full Year Full Year Full Year Q4 Full Year Revenues: GAAP $ 3,020.6 $ 3,347.0 $ 3,488.9 $ 3,683.2
Slide 24: 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 25: Non-GAAP Reconciliation – Other
Non-GAAP Reconciliation – Other The Brink’s Company and subsidiaries Other Items Not Allocated to Segments (Unaudited) (In millions) Acquisitions and dispositions Certain acquisition and disposition items that are not considered part of the ongoing activities of the business and are special in natur
Slide 26: Non-GAAP Reconciliation – Other
Non-GAAP Reconciliation – Other The Brink’s Company and subsidiaries Other Items Not Allocated to Segments (Unaudited) (In millions) Argentina highly inflationary impact Beginning in the third quarter of 2018, we designated Argentina's economy as highly inflationary for accounting purposes. As a res
Slide 27: Non-GAAP Reconciliation – Cash Flows
Non-GAAP Reconciliation – Cash Flows The Brink’s Company and subsidiaries Non-GAAP Reconciliations (In millions) Full Year Full Year Full Year Full Year 2018 2019 2020 2021 Free cash flow before dividends Cash flows from operating activities Operating activities - GAAP $ 364.1 $ 368.6 $ 317.7 $ 478.
Slide 28: Non-GAAP Reconciliation – Net Debt
Non-GAAP Reconciliation – Net Debt The Brink’s Company and subsidiaries Non-GAAP Reconciliations (In millions) December 31, December 31, (In millions) 2022 2023 Debt: Short-term borrowings $ 47.2 $ 151.7 Long-term debt 3,355.6 3,379.6 Total Debt 3,402.8 3,531.3 Less: Cash and cash equivalents 972.0