Brinks Company (the) · NYSE:BCO
Brinks Company (the) — Q2 2024 Earnings Presentation
33 slides from Brinks Company (the)'s earnings presentation, Aug 7, 2024
Slide 1: Second-Quarter 2024 Earnings
Second-Quarter 2024 Earnings August 7, 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 Record Second-Quarter 2024 Revenue, EBITDA and EPS (non-GAAP, $ millions, except EPS) • Accelerating organic growth of 14% – AMS/DRS organic growth of +26% and CVM organic growth of +10% • Adjusted EBITDA +16% to $226M, margin 18.0% expansion of 200bps • EPS +31% to $1.67 • Continued st
Slide 4: Second-Quarter 2024 Results
Second-Quarter 2024 Results Record Revenue, EBITDA, and EPS - Executing on Profitable Growth Strategy (non-GAAP, $ millions, except EPS) Revenue +3% Adj. EBITDA +16% EPS +31% TTM Free Cash Flow -7% Constant Currency +14% Constant Currency +39% Constant Currency +87% Conversion of 32%2 Organic +14% A
Slide 5: Meaningful Progress Improving Margins in North America
Meaningful Progress Improving Margins in North America (non-GAAP, $ millions) North America EBITDA and EBITDA Margins Performance Drivers CAGR 16% Brink’s Business Systems Implementation $288 • Safety culture focus driving reduction in incidents Pandemic $259 • Improving customer service levels $228
Slide 6: AMS/DRS Delivering Growth and Margin Improvement
AMS/DRS Delivering Growth and Margin Improvement Organic Growth Acceleration in Both AMS and DRS Customer Offerings ($ millions) Brink’s Revenue Mix Customer Offerings Cash & Valuables Management • Q2 organic growth of 10% • Focus on pricing initiatives • Softness in global commodities movement and
Slide 7: 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 Adjusted EBITDA Margin 18.4% - Recession Pandemic Pandemic 18.9% ~12-15% 17.4% 17.8% 12% 16.3% 14.8% 15.4% 15.3% 9% 13.3% 11.7% 7% 7% 7% 6% 6% 6% 6% 5% 5% 4% 4% 3% -0.5% 2016 2017 2018 2019 2020 202
Slide 8: Second-Quarter Revenue and Adjusted EBITDA vs 2023
Second-Quarter Revenue and Adjusted EBITDA vs 2023 Double-digit Organic Growth and Adjusted EBITDA Growth (non-GAAP, $ millions) Revenue Adjusted EBITDA % Change 14% 1% 14% (11%) 3% % Change 39% 1% 39% (23%) 16% Organic +$167 $67 $7 $1,390 ( $137 ) $100 $75 $1 $271 ( $45 ) $1,216 $1,253 +26% $226 +1
Slide 9: Second-Quarter Adjusted EBITDA and EPS vs 2023
Second-Quarter Adjusted EBITDA and EPS vs 2023 (non-GAAP, $ millions, except EPS) Diluted Shares 2Q 2024 EPS: $1.67 45.1 million 2Q 2023 EPS: $1.27 47.3 million +16% $7 $226 $31 $57 $156 ( $57 ) $56 12.4% 18.0% Margin ( $31 ) Margin $7 $75 Op Profit Interest Expense Taxes Other Income from D&A Inter
Slide 10: Successfully Refinanced 2025 Bonds
Successfully Refinanced 2025 Bonds Improved Credit Rating, Extended and Diversified Maturities, Increased Liquidity ($ billions) = Q1 ‘24 = Q1 ’24 Pro forma 2 Agency Rating 1 S&P BB+ $0.7 Moody’s Ba2 Drawn $0.3 Fitch BB+ Revolver Drawn Revolver $0.6 $0.6 2027 Bond 2027 Bond $0.4 $1.3 $1.3 $0.4 $0.4
Slide 11: Capital Allocation Framework
Capital Allocation Framework Organic • Strategic investments driving growth and profitability Investments 2x - 3x Net • Refinanced 2025 bonds, increasing flexibility while Debt Target maintaining leverage within target range $415 - $465M in targeted 2024 Free Cash Flow, • $66M utilized to repurchase
Slide 12: 2024 Guidance Affirmed
2024 Guidance Affirmed (non-GAAP, $ millions, except EPS) Mid-single digit growth driving low double-digit EBITDA and FCF growth 2023 2024 Actual Guidance Growth Revenue $4,875 $5,075 - 5,225 ~ 6% • Strong organic growth - low to mid-teens • Mid-single digit organic growth netting the impact of expe
Slide 13: Appendix
Appendix
Slide 14: Our Strategic Pillars
Our Strategic Pillars Strong Foundation For Success • Improved customer experience and evolved sales and marketing approach are driving growth and loyalty • Innovation through enhanced DRS platform and new AMS capabilities • Brink’s Business System is unlocking savings and driving operational excell
Slide 15: Second-Quarter 2024 Revenue & Adjusted EBITDA by Segment
Second-Quarter 2024 Revenue & Adjusted EBITDA by Segment ($ millions) North America Latin America Europe Rest of World Revenue +4% Adj. EBITDA +30% Revenue (1%) Adj. EBITDA (3%) Revenue +8% Adj. EBITDA +6% Revenue -% Adj EBITDA (4%) Constant currency +4% +30% Constant currency +38% +50% Constant cur
Slide 16: Six-Months 2024 Results
Six-Months 2024 Results (non-GAAP, $ millions, except EPS) Revenue +4% Adj. EBITDA +15% EPS +26% TTM Free Cash Flow -7% Constant Currency +13% Constant Currency +35% Constant Currency +72% Conversion of 32%1 Organic +13% Acq -% FX (10%) $2,489 $2,402 $2,208 $444 $3.21 $319 $385 $296 $352 $2.53 $2.54
Slide 17: Six-Months Revenue and Adjusted EBITDA vs 2023
Six-Months Revenue and Adjusted EBITDA vs 2023 (non-GAAP, $ millions) Revenue Adjusted EBITDA % Change 13% -% 13% (10%) 4% % Change 35% -% 35% (19%) 15% Organic +$312 $109 $9 $2,723 ( $233 ) $203 $2,489 $133 $1 $519 ( $75 ) $2,402 +22% +11% $444 $385 16.0% 19.1% 17.8% Margin Margin Margin 2023 Organ
Slide 18: Six-Months Adjusted EBITDA and EPS vs 2023
Six-Months Adjusted EBITDA and EPS vs 2023 (non-GAAP, $ millions, except EPS) Diluted Shares 2024 EPS: $3.21 45.2 million 2023 EPS: $2.54 47.4 million +15% $16 $444 $59 $112 $301 ( $112 ) $112 12.1% 17.8% Margin Margin ( $59 ) $16 $145 Op Profit Interest Expense Taxes Other Income from D&A Interest
Slide 19: Six-Months 2024 Revenue & Adjusted EBITDA by Segment
Six-Months 2024 Revenue & Adjusted EBITDA by Segment ($ millions) North America Latin America Europe Rest of World Revenue +2% Adj. EBITDA +26% Revenue +3% Adj. EBITDA (3%) Revenue +8% Adj. EBITDA +9% Revenue +1% Adj EBITDA +3% Constant currency +2% +26% Constant currency +38% +43% Constant currency
Slide 20: Net Debt and Leverage
Net Debt and Leverage Leverage Within Targeted Range (Non-GAAP, $ millions) Net Debt Adjusted EBITDA and Financial Leverage $2,726 2 Leverage Ratio 2.9 2.9 $2,521 $941 $927 $867 Secured $1,527 Net Debt Adjusted EBITDA $1,785 Unsecured Senior Notes1 $994 12/31/2023 6/30/2024 2023 Q2 2024 Actual Actua
Slide 21: 2022 Non-GAAP Results Reconciled to GAAP (1 of 3)
2022 Non-GAAP Results Reconciled to GAAP (1 of 3) The Brink’s Company and subsidiaries Non-GAAP Reconciliations 2022 (In millions) Q2 Six Months Operating profit (loss): GAAP $ 96.5 158.9 Reorganization and Restructuring (a) 2.7 14.4 Acquisitions and dispositions (a) 15.4 30.6 Argentina highly infla
Slide 22: 2022 Non-GAAP Results Reconciled to GAAP (2 of 3)
2022 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) 2022 Q2 Six Months Incom e (loss) from continuing operations attributable to Brink's: GAAP $ 35.2 106.6 Retirement plans (c) 1.0 3.4 Reorganizat
Slide 23: 2022 Non-GAAP Results Reconciled to GAAP (3 of 3)
2022 Non-GAAP Results Reconciled to GAAP (3 of 3) The Brink’s Company and subsidiaries Non-GAAP Reconciliations (In millions) 2016 2017 2018 2019 2020 2021 2022 Full Year Full Year Full Year Full Year Full Year Six Months Full Year Q2 Six Months Full Year Revenues: GAAP $ 3,020.6 $ 3,347.0 $ 3,488.9
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) 2021 Acquisitions and Dispositions • Amortization expense for acquisition-related intangible assets was $47.7 million in 2021. • We incurred $10.5 million in integrati
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 – Segment Adjusted EBITDA
Non-GAAP Reconciliation – Segment Adjusted EBITDA The Brink’s Company and subsidiaries (In millions) Segment Adjusted EBITDA: 2023 2024 Q2 Six Months Full Year Q2 Six Months Add back: Add back: Add back: Add back: Add back: Depreciation Segment Depreciation Segment Depreciation Segment Depreciation
Slide 28: Adjusted EBITDA Reconciliation
Adjusted EBITDA Reconciliation The Brink’s Company and subsidiaries (In millions) 2023 2024 Q2 Six Months Full Year Q2 Six Months North America $ 55.4 111.9 259.1 $ 72.0 $ 140.5 Latin America 79.3 158.7 333.9 77.2 154.3 Europe 44.0 79.1 179.2 46.6 86.5 Rest of World 47.1 90.3 188.5 45.3 92.8 Total s
Slide 29: 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 30: 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 31: 2018-2022 Non-GAAP Results Reconciled to GAAP
2018-2022 Non-GAAP Results Reconciled to GAAP The Brink’s Company and subsidiaries Non-GAAP Reconciliations (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 Retirem
Slide 32: Non-GAAP Reconciliation – Cash Flows
Non-GAAP Reconciliation – Cash Flows The Brink’s Company and subsidiaries Non-GAAP Reconciliations (In millions) Six Months Full Year Six Months Full Year 2021 2021 2022 2022 Free cash flow before dividends Cash flows from operating activities Operating activities - GAAP $ 81.0 $ 478.0 $ 41.1 $ 479.
Slide 33: 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, (In millions) 2023 2024 Debt: Short-term borrowings $ 151.7 $ 138.6 Long-term debt 3,379.6 3,608.5 Total Debt 3,531.3 3,747.1 Less: Cash and cash equivalents 1,176.6 1