Slide 1: First-Quarter 2014 Earnings Conference Call
The Brink’s Company First-Quarter 2014 Earnings Conference Call NYSE:BCO April 24, 2014 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 - Investor Relations
The Brink’s Company Ed Cunningham Director - Investor Relations
Slide 4: First-Quarter Highlights
First-Quarter Highlights Non-GAAP • $.43 vs $.38 • Segment margin 7.0% vs 5.4% • Organic revenue growth 11% GAAP • $(1.19) vs $.06 • $(1.51) asset write-down • March 24, 2014 Venezuela currency devaluation • 2013 Belgium theft loss ($0.24) Note : See reconciliation to GAAP results in Appendix
Slide 5: The Brink's Company - CEO
The Brink’s Company Tom Schievelbein Chairman, President and Chief Executive Officer
Slide 6: CEO Overview
CEO Overview • EPS $.43 vs $.38 • Reduced 2014 guidance due to devaluation • Segment margin 6.5%, revenue ~$3.7B First Quarter 2014 Revenue ($992 million) Note: EPS and revenue include(s) Venezuela at 6.3 exchange rate through March 23. Note : See reconciliation to GAAP results in Appendix
Slide 7: Segment Profit Overview
Segment Profit Overview ($ millions) Note : See reconciliation to GAAP results in Appendix
Slide 8: Latin America
Latin America 2014 Outlook: • Organic revenue growth 21%-23% • 7% - 9% margin • No contribution from Venezuela (Q2 through Q4) • Mexico profits down slightly • 10% margin by end of 2016 • Brazil, Argentina growth
Slide 9: North America
North America 2014 Outlook: • Revenue flat • 2.5% - 3.5% margin • Reduce labor and SG&A • Increase performing branches • Improve revenue mix
Slide 10: North America Margin Rate Outlook (Excluding Global Payments)
North America Margin Rate Outlook (Excluding Global Payments) • Increase “performing branches” in U.S. • Aggressive cost reductions • Productivity initiatives • Change U.S. revenue mix
Slide 11: U.S. - Performing Branches
U.S. - Performing Branches Goal
Slide 12: U.S. Cost Actions
U.S. Cost Actions 2013 Actions • Overtime Pay Change • SG&A Headcount Reduction • IT Infrastructure Consolidation In-Process • Route Logistics • Field Force Automation • Centralized Billing • CompuSafe® Service Focus • Overtime Management Expected to improve 2014 profit Primary impact expected in 20
Slide 13: EMEA
EMEA 2014 outlook • Revenue flat • 6% - 8% margin • Focus on cost, productivity & solutions • Brink’s integrated managed services
Slide 14: Asia Pacific
Asia Pacific 2014 outlook • Revenue up 5% - 7% • 9.5% - 11.5% margin • Growth driven by Global Services • Diamond & Jewelry strong • Continued investment in Gold storage
Slide 15: Global Cost Strategy
Global Cost Strategy • Global Procurement • Vehicles, Travel Management, IT Hardware, Indirect • Organizational Consolidation • IT, Shared Services • Organizational Structure • Reviewing management span of control & layers • U.S. Productivity Actions $3.8 ($ billions) 2013 Costs Non-Labor Labor
Slide 16: Growth Strategy
Growth Strategy • Latin America • Global Services • Integrated Managed Services / ATMs • Global Payments • Exploring Home Security
Slide 17: The Brink's Company - Review and Outlook
The Brink’s Company Joe Dziedzic Vice President and Chief Financial Officer Review and Outlook
Slide 18: Venezuela Devaluation
Venezuela Devaluation Accounting Treatment Prior to SICAD II exchange mechanism • Reporting rate dependent on exchange rate received and ability to consistently exchange currency • If no or limited conversion, use official rate of 6.3 Post SICAD II exchange mechanism • Exchange rate dependent on whi
Slide 19: Hypothetical 2013 results at 50 Bolivars per USD
Non-GAAP Basis Adjust Venezuela to 50 Bolivars to the U.S. Dollar Adjusted Non-GAAP Basis Revenue $3,942 ($392) $3,551 Total Operating Profit 241 (75) 166 Income from Continuing Operations 116 (40) 76 EPS $2.37 ($0.82) $1.55 Hypothetical 2013 results at 50 Bolivars per USD (SICAD II rate) ($ million
Slide 20: 1Q14 Non-GAAP Results
1Q14 Non-GAAP Results ($ millions, except EPS) Note : See reconciliation to GAAP results in Appendix Revenue Segment Operating Profit EPS
Slide 21: Non-GAAP EPS: 1Q13 Versus 1Q14
Note : See reconciliation to GAAP results in Appendix Non-GAAP EPS: 1Q13 Versus 1Q14
Slide 22: Non-GAAP Cash Flow, Capital Investment and Net Debt
Non-GAAP Cash Flow, Capital Investment and Net Debt ($ millions) Capital Expenditures and Capital Leases (b) Non-GAAP CFOA (a) (b) Net Debt (a)
Slide 23: Capex Spend
Capex Spend Reinvestment Ratio ($ millions, except ratio)
Slide 24: Legacy Liabilities - Underfunding - At December 31, 2013
Legacy Liabilities - Underfunding - At December 31, 2013 ($ millions)
Slide 25: Cash Payments to Primary U.S. Pension and UMWA
Cash Payments to Primary U.S. Pension and UMWA • Actions in 2013 enable tax efficient use of foreign earnings in an amount that is expected to be sufficient to fund U.S. pension payments and certain other cash flow needs. • Plan to fund future pension obligations with cash • Cash payments to UMWA ex
Slide 26: Growth Strategy
Growth Strategy • Latin America • Global Services • Integrated Managed Services / ATMs • Global Payments • Exploring Home Security
Slide 27: First-Quarter 2014 Earnings Conference Call
The Brink’s Company First-Quarter 2014 Earnings Conference Call NYSE:BCO April 24, 2014 Exhibit 99.1
Slide 28: Appendix: Non-GAAP Reconciliations
Appendix Non-GAAP Reconciliations
Slide 29: GAAP Results as Reported
2013 2014 1Q 2Q 3Q 4Q Full Year 1Q GAAP Basis Revenues: Latin America $ 412.9 413.6 423.8 470.4 1,720.7 438.4 EMEA 277.8 293.4 301.2 305.9 1,178.3 298.0 North America 223.2 226.3 222.5 226.4 898.4 220.1 Asia Pacific 36.6 36.6 34.9 36.7 144.8 35.1 Revenues $ 950.5 969.9 982.4 1,039.4 3,942.2 991.6 Op
Slide 30: Non-GAAP Results as Reported
2013 2014 1Q 2Q 3Q 4Q Full Year 1Q Non-GAAP Basis Revenues: Latin America $ 412.9 413.6 423.8 470.4 1,720.7 438.4 EMEA 277.8 293.4 301.2 305.9 1,178.3 298.0 North America 223.2 226.3 222.5 226.4 898.4 220.1 Asia Pacific 36.6 36.6 34.9 36.7 144.8 35.1 Revenues $ 950.5 969.9 982.4 1,039.4 3,942.2 991.
Slide 31: Hypothetical Non-GAAP Results Adjusted for Venezuela at 50 Bolivars
2013 2014 1Q 2Q 3Q 4Q Full Year 1Q Non-GAAP Results Adjusted for Venezuelan Results at 50 Bolivars per U.S. Dollar Revenues: Latin America $ 328.4 329.7 323.7 347.4 1,329.2 325.3 EMEA 277.8 293.4 301.2 305.9 1,178.3 298.0 North America 223.2 226.3 222.5 226.4 898.4 220.1 Asia Pacific 36.6 36.6 34.9
Slide 32: First Quarter 2014 Reconciliation
GAAP Basis Net Monetary Asset Re- measurement Losses in Venezuela (a) Employee Benefit Settlement Losses (b) U.S. Retirement Plans (c) Adjust Income Tax Rate (d) Non-GAAP Basis Adjust Venezuela to 50 Bolivars to the U.S. Dollar (e) Adjusted Non- GAAP Basis (f) First Quarter 2014 Revenues: Latin Amer
Slide 33: First Quarter 2013 Reconciliation
GAAP Basis Gains and Losses on Acquisitions and Dispositions (a) Net Monetary Asset Re- measurement Losses in Venezuela (b) Employee Benefit Settlement Losses (c) U.S. Retirement Plans (d) Adjust Income Tax Rate (e) Non-GAAP Basis Adjust Venezuela to 50 Bolivars to the U.S. Dollar (f) Adjusted Non-G
Slide 34: Second Quarter 2013 Reconciliation
GAAP Basis Gains and Losses on Acquisitions and Dispositions (a) Net Monetary Asset Re- measurement Losses in Venezuela (b) Employee Benefit Settlement Losses (c) U.S. Retirement Plans (d) Adjust Income Tax Rate (e) Non-GAAP Basis Adjust Venezuela to 50 Bolivar to the U.S. Dollar (f) Pro Forma Non-G
Slide 35: Third Quarter 2013 Reconciliation
GAAP Basis Gains and Losses on Acquisitions and Dispositions (a) Net Monetary Asset Re- measurement Losses in Venezuela (b) Employee Benefit Settlement Losses (c) U.S. Retirement Plans (d) Adjust Income Tax Rate (e) Non-GAAP Basis Adjust Venezuela to 50 Bolivars to the U.S. Dollar (f) Adjusted Non-G
Slide 36: Fourth Quarter 2013 Reconciliation
GAAP Basis Gains and Losses on Acquisitions and Dispositions (a) Net Monetary Asset Re- measurement Losses in Venezuela (b) Employee Benefit Settlement Losses (c) U.S. Retirement Plans (d) Adjust Income Tax Rate (e) Non-GAAP Basis Adjust Venezuela to 50 Bolivars to the U.S. Dollar (f) Adjusted Non-G
Slide 37: Full Year 2013 Reconciliation
GAAP Basis Gains and Losses on Acquisitions and Dispositions (a) Net Monetary Asset Re- measurement Losses in Venezuela (b) Employee Benefit Settlement Losses (c) U.S. Retirement Plans (d) Adjust Income Tax Rate (e) Non-GAAP Basis Adjust Venezuela to 50 Bolivars to the U.S. Dollar (f) Adjusted Non-G
Slide 38: Non-GAAP & Adjusted Non-GAAP Footnotes
Non-GAAP & Adjusted Non-GAAP (g) Footnotes a) To eliminate: • a $1.1 million adjustment in the first quarter of 2013 to the amount of gain recognized on a 2010 business acquisition in Mexico as a result of a favorable adjustment to the purchase price received in the first quarter of 2013. • $1.7 mil
Slide 39: Non-GAAP Reconciliations - Cash Flows
First Quarter 2014 2013 Cash flows from operating activities - GAAP $ 30.6 $ 3.3 Decrease (increase) in certain customer obligations (a) (6.4) (16.8) Cash outflows (inflows) related to discontinued operations (b) (1.0) 7.5 Cash flows from operating activities - Non-GAAP $ 23.2 $ (6.0) Non-GAAP Recon
Slide 40: Non-GAAP Reconciliations - Net Debt
March 31, December 31, 2014 2013 Debt: Long-term debt 421.6 355.1 Less: Cash and cash equivalents 201.5 255.5 Amounts held by Cash Management Services operations (a) (36.8) (31.3) Cash and cash equivalents available for general corporate purposes 164.7 224.2 Net Debt $ 316.2 211.8 Non-GAAP Reconcili
Slide 41: First-Quarter 2014 Earnings Conference Call
The Brink’s Company First-Quarter 2014 Earnings Conference Call NYSE:BCO April 24, 2014