Brinks Company (the) · NYSE:BCO
Brinks Company (the) — Q3 2023 Earnings Presentation
24 slides from Brinks Company (the)'s earnings presentation, Nov 7, 2023
Slide 1: Third-Quarter 2023 Earnings
Third-Quarter 2023 Earnings November 7, 2023
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 Results summary (non-GAAP) • Revenue up 8% (+6% organic) − Organic growth of 4% in Cash and Valuables Management − Organic growth of 18% in ATM Managed Services (AMS) and Digital Retail Solutions (DRS) • Operating profit +31% to $166M (+38% organic), margin 13.5% up 230bps • Adjusted EB
Slide 4: AMS/DRS Delivering Growth and Margin Improvement
AMS/DRS Delivering Growth and Margin Improvement Brink’s Revenue Mix Customer Offerings Cash & Valuables Management • Strong organic growth of 4% considering global services headwinds • North America customer satisfaction and service levels improving • Brink’s Business System productivity driving ma
Slide 5: Third-Quarter 2023 Results
Third-Quarter 2023 Results Record Revenue and Operating Profit (non-GAAP, $ millions, except EPS) Revenue +8% Op Profit +31% Adj. EBITDA +22% EPS 39% Constant Currency +9% Constant Currency +43% Constant Currency +29% Constant Currency +56% Organic +6% Organic +38% Acq +3% Acq +5% FX (1%) FX (12%) $
Slide 6: Third-Quarter Revenue and Operating Profit vs 2022
Third-Quarter Revenue and Operating Profit vs 2022 Strong Organic Growth and Continued Operational Improvements (non-GAAP, $ millions) Revenue Operating Profit % Change 6% 3% 9% (1%) 8% % Change 38% 5% 43% (12%) 31% Organic +$72 $33 $35 $1,243 ( $15 ) $1,227 $1,137 $39 $6 $182 ( $15 ) $49 +18% $166
Slide 7: Third-Quarter Adjusted EBITDA and EPS vs 2022
Third-Quarter Adjusted EBITDA and EPS vs 2022 (non-GAAP, $ millions, except EPS) Diluted Shares 2023 EPS: $1.92 47.1 million 2022 EPS: $1.38 47.5 million +22% $41 ( $7 ) $231 $54 $166 ( $54 ) $53 13.5% 18.8% Margin ( $41 ) Margin $18 $91 Op Profit Interest Taxes Other Income from D&A Interest Taxes
Slide 8: Meaningful Progress on Free Cash Flow Generation
Meaningful Progress on Free Cash Flow Generation (Non-GAAP, $ millions) Free Cash Flow & FCF as % of Adj EBITDA $346 • ~$100M EBITDA growth1 driven by improving revenue mix, cost productivity, and benefits of restructuring activities $245 $206 $203 • CapEx flat in dollars year-over-year $179 $170 40
Slide 9: Capital Allocation Priorities Remain Unchanged
Capital Allocation Priorities Remain Unchanged Organic • Target Cash Capex of less than 4% of revenue in 2023 Investments 1 $350 - $375 in targeted 2023 Free Cash Flow 2x - 3x Net • 3.0x Net debt to Adjusted EBITDA Debt Target • On track to be below 3.0x by year-end Nine-Months 2023 Highlights • Del
Slide 10: 2023 Guidance
2023 Guidance (non-GAAP, $ millions, except EPS) Free Cash Flow Guidance Increased to Top Half of Range, All Other Guidance Affirmed 2022 2023 Actual Guidance Growth • Strong organic revenue growth in AMS/DRS offset by market-wide macro impacts to Revenue $4,536 $4,800 - 4,950 ~7% shipping and stora
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 Oe 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 IMBRINKS 22
Slide 13: Nine-Months 2023 Results
Nine-Months 2023 Results (non-GAAP, $ millions, except EPS) Revenue +9% Op Profit +17% Adj. EBITDA +14% EPS 9% Constant Currency +12% Constant Currency +29% Constant Currency +21% Constant Currency +25% Organic +9% Organic +24% Acq +3% Acq +4% FX (3%) FX (12%) $3,629 $3,345 $3,102 $615 $426 $4.27 $5
Slide 14: Nine-Months Revenue and Operating Profit vs 2022
Nine-Months Revenue and Operating Profit vs 2022 (non-GAAP, $ millions) Revenue Operating Profit % Change 9% 3% 12% (3%) 9% % Change 24% 4% 29% (12%) 17% Organic +$293 $116 $107 $3,744 ( $115 ) $3,629 $16 $467 ( $42 ) $176 $89 $3,345 $426 +22% +6% $363 10.9% 12.5% 11.7% Margin Margin Margin 2022 Org
Slide 15: Nine-Months 2023 Results by Segment
Nine-Months 2023 Results by Segment ($ millions) North America Latin America Europe Rest of World Revenue +2% Op Profit +28% Revenue +10% Op Profit +3% Revenue +26% Op Profit +38% Revenue (1%) Op Profit -% Constant currency +3% +28% Constant currency +21% +27% Constant currency +24% +35% Constant cu
Slide 16: Third-Quarter 2023 Results by Segment
Third-Quarter 2023 Results by Segment ($ millions) North America Latin America Europe Rest of World Revenue (1%) Op Profit +24% Revenue +13% Op Profit +2% Revenue +31% Op Profit +38% Revenue (6%) Op Profit (12%) Constant currency -% +24% Constant currency +24% +31% Constant currency +21% +28% Consta
Slide 17: Net Debt and Leverage
Net Debt and Leverage Expect Leverage Below 3.0x by Year-End 2023 (Non-GAAP, $ millions) Net Debt Adjusted EBITDA and Financial Leverage 2 Leverage Ratio 3.2 3.0 $2,642 $2,579 $2,516 Adjusted Leverage Ratio 3 3.1 3.0 4 Secured Leverage Ratio 2.1 1.9 $863 3 $1,649 $815 $1,524 $1,585 Secured Net Debt
Slide 18: 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 Q3 Nine Months Revenues: GAAP $ 1,075.5 3,102.0 Non-GAAP $ 1,075.5 3,102.0 Operating profit (loss): GAAP $ 74.2 209.2 (a) Reorganization and Restructuring 14.0 35.7 (a)
Slide 19: 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 Q3 Nine Months Incom e (loss) from continuing operations attributable to Brink's: GAAP $ 19.0 55.7 Retirement plans (c) 6.0 15.4 Reorganiza
Slide 20: 2021 Non-GAAP Results Reconciled to GAAP (3 of 3)
2021 Non-GAAP Results Reconciled to GAAP (3 of 3 with 2018-2020 Adj EBITDA) The Brink’s Company and subsidiaries Non-GAAP Reconciliations (In millions) 2018 2019 2020 2021 Full Year Full Year Full Year Q3 Nine Months Full Year Adjusted EBITDA(d): Net income attributable to Brink's - GAAP $ (33.3) $
Slide 21: 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 22: Non-GAAP Reconciliation – Other
Non-GAAP Reconciliation – Other The Brink’s Company and subsidiaries Other Items Not Allocated to Segments (Unaudited) (In millions) 2018 Acquisitions and Dispositions • Amortization expense for acquisition-related intangible assets was $17.7 million in 2018. • Integration costs in 2018 related to a
Slide 23: 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 24: Non-GAAP Reconciliation – Net Debt
Non-GAAP Reconciliation – Net Debt The Brink’s Company and subsidiaries Non-GAAP Reconciliations (In millions) December 31, June 30, September 30, (In millions) 2022 2023 2023 Debt: Short-term borrowings $ 47.2 $ 127.5 $ 124.9 Long-term debt 3,355.6 3,341.1 3,294.2 Total Debt 3,402.8 3,468.6 3,419.1