Brinks Company (the) · NYSE:BCO
Brinks Company (the) — Q4 2024 Earnings Presentation
40 slides from Brinks Company (the)'s earnings presentation, Feb 26, 2025
Slide 1: Fourth-Quarter & Full-Year 2024 Earnings
Fourth-Quarter & Full-Year 2024 Earnings February 26, 2025 CONFIDENTIAL. FOR INTERNAL USE ONLY – DO NOT DUPLICATE OR DISTRIBUTE. 1
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 Results Summary (non-GAAP, $ millions, except EPS) • Organic revenue growth of 11% – AMS/DRS organic growth of 23% and CVM organic growth of 7% • Adjusted EBITDA of $251M or 19.9% margin, EPS of $2.12 • Free Cash Flow of $302M, with 120% conversion on strong working capit
Slide 4: Fourth-Quarter 2024 Results
Fourth-Quarter 2024 Results (non-GAAP, $ millions, except EPS) Revenue +1% Adj. EBITDA 0% EPS (23%) TTM Free Cash Flow 0% Constant Currency +11% Constant Currency +11% Constant Currency (6%) Conversion of 44%1 Organic +11% Acq +1% FX (10%) $1,246 $1,264 $252 $251 $400 $400 $1,191 $247 $2.76 $2.10 $2
Slide 5: Full Year 2024 Revenue & Adjusted EBITDA by Segment
Full Year 2024 Revenue & Adjusted EBITDA by Segment ($ millions) North America Latin America Europe Rest of World Revenue +3% Adj. EBITDA +7% Revenue (2%) Adj. EBITDA (2%) Revenue +8% Adj. EBITDA +9% Revenue +2% Adj EBITDA +3% Constant currency +3% +7% Constant currency 35% +46% Constant currency +8
Slide 6: Accelerating Investments to Improve Margins in North America
Accelerating Investments to Improve Margins in North America (non-GAAP, $ millions) North America Adj. EBITDA and Adj. EBITDA Margins Margin Improvement Drivers CAGR 15% $276 • Shifting revenue to higher margin AMS/DRS Pandemic $259 ➢ From 15% in 2020 to 27% in 2024 $228 $217 • Customer portfolio ra
Slide 7: AMS/DRS Delivering Growth and Margin Improvement
AMS/DRS Delivering Growth and Margin Improvement ($ millions) Customer Offerings Brink’s Revenue Mix Cash & Valuables Management • Fourth quarter organic growth of 7% • Stabilization of global services in Q4 with 2025 growth momentum 25-27% • Argentina inflation moderation - expected to continue in
Slide 8: Fourth-Quarter Revenue and Adjusted EBITDA vs 2023
Fourth-Quarter Revenue and Adjusted EBITDA vs 2023 (non-GAAP, $ millions) Revenue Adjusted EBITDA % Change 11% 1% 11% (10%) 1% % Change 11% -% 11% (12%) -% Organic +$133 $28 $1 $280 ( $30 ) $61 $9 $1,388 ( $123 ) $73 $252 $251 $1,246 $1,264 +23% +7% 20.2% 20.2% 19.9% Margin Margin Margin 2023 Organi
Slide 9: Fourth-Quarter Adjusted EBITDA and EPS vs 2023
Fourth-Quarter Adjusted EBITDA and EPS vs 2023 (non-GAAP, $ millions, except EPS) Diluted Shares 4Q 2024 EPS: $2.12 44.2 million 4Q 2023 EPS: $2.76 45.9 million -% $13 $251 $29 $60 $177 ( $60 ) $56 14.0% 19.8% Margin ( $29 ) Margin $11 ( $6 ) $94 Op Profit Interest Taxes Interest Income Other Income
Slide 10: Strong Free Cash Flow Generation Continues
Strong Free Cash Flow Generation Continues (Non-GAAP, $ millions) Free Cash Flow & FCF as % of Adj EBITDA • Significant working capital improvements driven by strategic focus and revenue mix benefits $400 $400 ➢ Reduced DSO by 7 days YoY - 15 full days since 2022 ➢ Centralizing and standardizing pro
Slide 11: Capital Allocation Framework
Capital Allocation Framework Organic • Strategic investments driving growth and profitability Investments • CapEx efficiency driven by AMS / DRS business model 2x - 3x Net • Reduced Net debt leverage to 2.8x Adjusted EBITDA Debt Target $400M in 2024 Free Cash Flow, Conversion of 44% • $204M in 2024;
Slide 12: Executing Against Consistent Capital Allocation Framework
Executing Against Consistent Capital Allocation Framework (Non-GAAP, $ millions) Cash Returned to Shareholders as a % of FCF $245 $210 2024 Total Invested Capital as % of FCF 61% $90 52% 40% CapEx $147 37% 2022 2023 2024 Share Repurchase Shareholder $204 51% Returns $245 61% Leverage Ratio 3.2x Divi
Slide 13: First Quarter 2025 Guidance and Full Year 2025 Framework
First Quarter 2025 Guidance and Full Year 2025 Framework (non-GAAP, $ millions, except EPS) Full Year 2025 Framework Organic Growth Mid-Single Digits • Strong organic growth across all regions AMS/DRS Organic Growth Mid to High Teens • Outsized growth in AMS/DRS • Margin expansion muted by currency
Slide 14: Appendix
Appendix 14
Slide 15: Team Brink's: Our Strategic Pillars
Our Strategic Pillars Partner for Win as Customer Success Team Brink’s Deliver secure Unleash the power commerce solutions of our people Innovate Run the to Grow Business Better Drive Operate with innovation that excellence and creates value efficiency CONFIDENTIAL. FOR INTERNAL USE ONLY – DO NOT DU
Slide 16: Full-Year 2024 Results
Full-Year 2024 Results (non-GAAP, $ millions, except EPS) Revenue +3% Adj. EBITDA +5% EPS (2%) TTM Free Cash Flow 0% Constant Currency +13% Constant Currency +23% Constant Currency +32% Conversion of 44%1 Organic +12% Acq -% FX (10%) $5,012 $4,875 $4,536 $912 $867 $400 $400 $788 $7.35 $7.17 $5.99 17
Slide 17: Historical Performance Establishes a Strong Foundation for 2025
Historical Performance Establishes a Strong Foundation for 2025 (Non-GAAP, $ millions) Adjusted EBITDA 12% CAGR $912 $867 Pandemic $788 $683 18.2% 17.8% $567 $566 17.4% $509 16.3% $424 15.4% 15.3% $342 14.8% 13.3% Adj. EBITDA Margin 11.7% 2016 2017 2018 2019 2020 2021 2022 2023 2024 Consistent Growt
Slide 18: Fourth-Quarter 2024 Revenue & Adjusted EBITDA by Segment
Fourth-Quarter 2024 Revenue & Adjusted EBITDA by Segment ($ millions) North America Latin America Europe Rest of World Revenue +4% Adj. EBITDA (9%) Revenue (6%) Adj. EBITDA (5%) Revenue +6% Adj. EBITDA +5% Revenue +3% Adj EBITDA +4% Constant currency +4% (9%) Constant currency +30% +39% Constant cur
Slide 19: Full Year Revenue and Adjusted EBITDA vs 2023
Full Year Revenue and Adjusted EBITDA vs 2023 (non-GAAP, $ millions) Revenue Adjusted EBITDA % Change 12% 0% 13% (10%) 3% % Change 23% -% 23% (18%) 5% Organic +$601 $237 $24 $5,500 ( $488 ) $196 $2 $1,066 ( $154 ) $365 $4,875 $5,012 $912 +23% $867 +9% 17.8% 19.4% 18.2% Margin Margin Margin 2023 Orga
Slide 20: Full-Year Adjusted EBITDA and EPS vs 2023
Full-Year Adjusted EBITDA and EPS vs 2023 (non-GAAP, $ millions, except EPS) Diluted Shares 2024 EPS: $7.17 44.8 million 2023 EPS: $7.35 46.9 million +5% $31 $912 $101 $235 $629 ( $235 ) $223 18.2% 12.6% Margin ( $101 ) Margin $49 ( $21 ) $321 Op Profit Interest Taxes Interest Income Other Income fr
Slide 21: Fourth-Quarter 2024 Revenue & Operating Profit by Segment
Fourth-Quarter 2024 Revenue & Operating Profit by Segment ($ millions) North America Latin America Europe Rest of World Revenue +4% Operating Profit (15%) Revenue (6%) Operating Profit (5%) Revenue +6% Operating Profit +5% Revenue +3% Operating Profit 4% Constant currency +4% (15%) Constant currency
Slide 22: Full Year 2024 Revenue & Operating Profit by Segment
Full Year 2024 Revenue & Operating Profit by Segment ($ millions) North America Latin America Europe Rest of World Revenue +3% Operating Profit 5% Revenue (2%) Operating Profit (3%) Revenue +8% Operating Profit +10% Revenue +2% Operating Profit 3% Constant currency +3% 5% Constant currency +35% +53%
Slide 23: Net Debt and Leverage
Net Debt and Leverage Leverage Within Targeted Range (Non-GAAP, $ millions) Net Debt Adjusted EBITDA and Financial Leverage 2 Leverage Ratio 2.9 2.8 $2,582 $2,521 $912 $1,194 $867 Secured $1,527 Net Debt Adjusted EBITDA Unsecured $1,388 Senior Notes1 $994 12/31/2023 12/31/2024 Q4 2023 TTM Q4 2024 TT
Slide 24: Brink's is Well Positioned to Deliver During Market Uncertainties
Brink’s is Well Positioned to Deliver During Market Uncertainties (non-GAAP) Organic Revenue Growth 1 Geographic Revenue Mix (2024 FY) Recession Pandemic 12% 12% Rest of World 9% 16% 7% 7% 7% North America 6% 6% 6% 6% 33% 5% 5% 4% 4% 3% Europe 24% -0.5% Latin America 26% -7% 2008 2009 2010 2011 2012
Slide 25: 2022 Non-GAAP Results Reconciled to GAAP
2022 Non-GAAP Results Reconciled to GAAP The Brink’s Company and subsidiaries Non-GAAP Reconciliations (In millions) 2022 Q4 Full Year EPS: GAAP $ 1.01 3.63 Reorganization and Restructuring(a) 0.06 0.64 Acquisitions and dispositions(a) 0.33 1.33 (a) Argentina highly inflationary impact 0.38 1.00 Chi
Slide 26: Non-GAAP Results Reconciled to GAAP (2016 – 2022 Adjusted EBITDA)
Non-GAAP Results Reconciled to GAAP (2016 – 2022 Adjusted EBITDA) The Brink’s Company and subsidiaries Non-GAAP Reconciliations (In millions, except for per share amounts) 2016 2017 2018 2019 2020 2021 2022 Full Year Full Year Full Year Full Year Full Year Full Year Q4 Full Year Revenues: GAAP $ 3,0
Slide 27: 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 28: 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 are not part of the Company's operations and revenue generating activities. These items include
Slide 29: Non-GAAP Reconciliation – Other
Non-GAAP Reconciliation – Other The Brink’s Company and subsidiaries Other Items Not Allocated to Segments (Unaudited) (In millions) 2017 Acquisitions and Dispositions • Amortization expense for acquisition-related intangible assets was $8.4 million in 2017. • A net gain of $7.8 million was recogniz
Slide 30: Non-GAAP Reconciliation – Other
Non-GAAP Reconciliation – Other The Brink’s Company and subsidiaries Other Items Not Allocated to Segments (Unaudited) (In millions) Chile antitrust matter We recognized an estimated loss of $9.5 million in the third quarter of 2021 and recognized additional amounts in subsequent years (which were p
Slide 31: Non-GAAP Measures and Reconciliations to GAAP Measures
Non-GAAP Measures and Reconciliations to GAAP Measures Non-GAAP measures described below and included in this filing are financial measures that are not required by or presented in accordance with GAAP. The purpose of the disclosure of these non-GAAP measures is to report financial information from
Slide 32: Non-GAAP Measures and Reconciliations to GAAP Measures
Non-GAAP Measures and Reconciliations to GAAP Measures • Net Debt: Net Debt equals total debt less cash and cash equivalents available for general corporate purposes. We exclude from cash and cash equivalents amounts held by our cash management services operations, as such amounts are not considered
Slide 33: 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 Q4 Full Year Q4 Full Year Add back: Add back: Add back: Add back: Depreciation Segment Depreciation Segment Depreciation Segment Depreciation Segment GAAP and Adjus
Slide 34: Adjusted EBITDA Reconciliation
Adjusted EBITDA Reconciliation The Brink’s Company and subsidiaries (In millions) 2023 2024 Q4 Full Year Q4 Full Year North America $ 81.6 259.1 $ 74.1 276.4 Latin America 93.3 333.9 88.5 326.2 Europe 51.0 179.2 53.4 194.9 Rest of World 49.5 188.5 51.4 194.8 (a) Total segment adjusted EBITDA $ 275.4
Slide 35: 2023 – 2024 Non-GAAP Results Reconciled to GAAP
2023 – 2024 Non-GAAP Results Reconciled to GAAP The Brink’s Company and subsidiaries (In millions) 2023 2024 Q4 Full Year Q4 Full Year Interest and other nonoperating income (expense): GAAP $ 2.7 14.4 $ 12.4 48.7 Acquisitions and dispositions(a) 1.0 1.2 (1.5) (0.4) (a) Argentina highly inflationary
Slide 36: Non-GAAP Reconciliation – Segment Adjusted EBITDA
Non-GAAP Reconciliation – Segment Adjusted EBITDA The Brink’s Company and subsidiaries (In millions) Segment Adjusted EBITDA: 2018 2019 2020 2021 2022 Full Year Full Year Full Year Full Year Full Year Add back: Add back: Add back: Add back: Add back: Depreciation Segment Depreciation Segment Depreci
Slide 37: Adjusted EBITDA Reconciliation
Adjusted EBITDA Reconciliation The Brink’s Company and subsidiaries (In millions) 2018 2019 2020 2021 2022 Full Year Full Year Full Year Full Year Full Year North America $ 129.1 $ 168.3 $ 154.0 $ 217.1 $ 228.2 Latin America 295.1 341.7 277.6 303.5 326.8 Europe 63.2 63.9 83.4 131.2 138.0 Rest of Wor
Slide 38: 2018 – 2022 Non-GAAP Results Reconciled to GAAP
2018 – 2022 Non-GAAP Results Reconciled to GAAP The Brink’s Company and subsidiaries (In millions) 2018 2019 2020 2021 2022 Full Year Full Year Full Year Full Year Full Year Interest and other nonoperating income (expense): GAAP $ (38.8) $ (52.7) $ (37.7) $ (7.0) $ 3.7 (a) Retirement plans 33.2 47.3
Slide 39: 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 Full Year 2018 2019 2020 2021 2022 Cash flows provided from (used in) operating activities - GAAP $ 364.1 $ 368.6 $ 317.7 $ 478.0 $ 479.9 (Increase
Slide 40: Non-GAAP Reconciliation – Net Debt
Non-GAAP Reconciliation – Net Debt The Brink’s Company and subsidiaries Non-GAAP Reconciliations (In millions) December 31, 2022 2023 2024 Debt: Short-term borrowings $ 47.2 $ 151.7 $ 149.3 Long-term debt 3,355.6 3,379.6 3,746.9 Total Debt 3,402.8 3,531.3 3,896.2 Less: Cash and cash equivalents 972.