Brinks Company (the) · NYSE:BCO
Brinks Company (the) — Q1 2021 Earnings Presentation
28 slides from Brinks Company (the)'s earnings presentation, Apr 28, 2021
Slide 1: First-Quarter Results
First-Quarter Results April 28, 2021 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 (Non-GAAP, $ Millions, except EPS) Strong 1Q revenue and profit growth • Revenue up 12%...driven by G4S acquisition; organic recovery to 94% of 1Q20 • Operating profit up 43%, margin up 200 bps to 9.2% • Adjusted EBITDA up 32%, margin up 210 bps to 14.0% • EPS up 64%...$.82 vs $.50 • Ac
Slide 4: 2021 Guidance Increased
2021 Guidance Increased (Non-GAAP, $ Millions, except EPS) Expect Operating Profit Margin Up 120 bps to 11.5% Revenue1 Op Profit1 Adj. EBITDA1 EPS1 +21% +34% +25% +32% +10% organic Margin +120 bps $4,650 $4,450 $750 $4,250 $556 $5.55 $705 $3,680 $3,691 $511 15.8% - $4.95 ~15.7% 16.3% $660 $466 Margi
Slide 5: Cash Levels Stronger Post-COVID
Cash Levels Stronger Post-COVID USD – Cash in Circulation1 Brink’s Cash Levels (USD, Billions) First-Quarter 2021 2,200 First-Quarter 2,100 2021 Brink’s U.S. Cash Processed 2,000 17% 1,900 1,800 1,700 YoY % Increase 1990-2020 +4% 1,600 Value of Cash2 1,500 1,400 ~6% 1,300 30-yr CAGR 2018 2019 2020 2
Slide 6: eCommerce Growth
In-Store Shopping, Where Cash is Preferred, Forecasted to Continue Dominating U.S. Retail Growing in-person sales dominate U.S. retail1 Cash has largest share of in- In-person sales to rise to $5.2T by 2025 person transactions2 $5.2T 6% $7.0 50% $4.9T 45% 35% Total Retail Sales (Trillions) $6.0 27%
Slide 7: First-Quarter 2021 Results
First-Quarter 2021 Results (Non-GAAP, $ Millions, except EPS) Revenue +12% Op Profit +43% Adj. EBITDA +32% EPS +64% Constant currency +13% Constant currency +50% Constant currency +36% Constant currency +76% Organic (6%) Organic +30% +43% excluding Acq +20% Acq +20% MGI impact1 FX (1%) FX (8%) $978
Slide 8: First-Quarter Revenue and Operating Profit vs 2020
First-Quarter Revenue and Operating Profit vs 2020 (Non-GAAP, $ Millions) Revenue Operating Profit % Change (6%) 20% 13% (1%) 12% % Change 30% 20% 50% (8%) 43% Constant Constant Currency Currency $170 $987 ( $9 ) $978 $873 ( $56 ) $13 $95 ( $5 ) $90 $19 10.1% Margin $63 8.8% Margin 7.2% 9.6% 9.2% Ma
Slide 9: First-Quarter Adjusted EBITDA and EPS vs 2020
First-Quarter Adjusted EBITDA and EPS vs 2020 (Non-GAAP, $ Millions, except EPS) Q1 2021 EPS: $0.82 +64% vs PY Q1 2020 EPS: $0.50 +32% Q1 2021 EPS includes vs PY $0.05 MGI Impact $8 ( $3 ) $137 $47 14.0% Margin $90 ( $27 ) $44 9.2% Margin ( $20 ) ( $2 ) $41 Op Profit Interest Taxes Other Income from
Slide 10: Capital Expenditures
Capital Expenditures ($ Millions) Cash CapEx 4.5% 4.5% 3.2% ~4.0% as % Revenue $180 $165 $155 $30 $26 $25 $119 $18 $150 $138 $130 $101 $60 $52 $31 $35 2018 Actual 2019 Actual 2020 Actual 2021 Target Cash CapEx ex. Cash Devices Cash Devices Financing Leases Note: Amounts may not add due to rounding.
Slide 11: 2021 Free Cash Flow Target
2021 Free Cash Flow Target (Non-GAAP, $ Millions) Adjusted EBITDA Adjusted $660 – ( $95 ) Working Capital and Cash Restructuring: EBITDA $750 Lower restructuring expected in 2021 post-Covid- ( $95 ) 19 and G4S acquisition D&A / Other $194 $35 Deferred Payments to be made: primarily ( $105 ) payroll
Slide 12: Strong Financial Health - Ample Liquidity
Strong Financial Health - Ample Liquidity ($ Millions, except where noted) Cash and Debt Capacity • Increased liquidity in 2020 • Incremental $590 million Term Loan A closed on April 1, 2020 Cash $602 $561 • Incremental $400 million Senior Notes closed on June 22, 2020 ~$1.6 B ~$1.45 B ~$1.4 B Liqui
Slide 13: Net Debt and Leverage
Net Debt and Leverage (Non-GAAP, $ Millions) Net Debt Adjusted EBITDA and Financial Leverage The impact on Net Debt from Net Debt Free Cash Flow before Leverage Ratio1 3.3 3.4 ~2.7 – 3.2 Dividends is offset by other financing and investing items5 Fully-synergized Secured Leverage Ratio3 $2,055 - (Ma
Slide 14: Strategy Update
Strategy Update IBRINKS
Slide 15: Strategic Plan 2: A New Layer of Growth on a Strong Foundation
Strategic Plan 2: A New Layer of Growth on a Strong Foundation Strategy 2.0 adds digital cash management solutions 2.1 – Digital Cash Management Strategy 2.0 2.2 – Enterprise Cash Automation Digital Cash Management 2.3 – ATM Managed Services 2.4 – Integrating Cash with Digital Payments • $2.2B inves
Slide 16: Brink's Complete – Digital Cash Management Solutions
Brink’s Complete – Digital Cash Management Solutions Making cash as convenient, simple and 1 cost effective as other digital payments. Customer Benefits • Optimization of working capital • Reduced labor costs and losses • App-based, digital customer experience 2.1 2.2 2.3 2.4 Digital Cash Cash Proce
Slide 17: Strategy 2.3 – Full Range of ATM Solutions
Strategy 2.3 – Full Range of ATM Solutions Retailers need managed service partners that offer complete ATM solutions Financial Institutions seek to rationalize branch networks, increase reliance on ATMs Brink’s now provides a full suite of managed ATM services Brink’s Benefits • Expands cash solutio
Slide 18: PAI Acquisition – A 2.3 Platform for U.S. Customers
PAI Acquisition – A 2.3 Platform for U.S. Customers Acquired April 1st for $213 million Technology Platform Extends Brink’s Service Offerings • PAI’s end-to-end SaaS services strengthen Strategy 2.0 value proposition • Strong management team with deep industry expertise Highly Scalable Business Mode
Slide 19: Proven Performance…Bright Future
Proven Performance…Bright Future (Non-GAAP, $ Millions, except EPS) Revenue, Adjusted EBITDA & Operating Profit 2021 Guidance $4,250 - $4,650 Midpoint vs $3,680 $3,691 Low Mid High Revenue 2020 15.4% 15.5% - 16.1% Revenue $4,250 $4,450 $4,650 +21% 15.3% Adj. EBITDA 11.0% - 12.0% Op Profit $466 $511
Slide 20: Appendix
Appendix IBRINKS
Slide 21: First-Quarter Results by Segment
First-Quarter Results by Segment ($ Millions) North America1 Latin America Europe Rest of World Revenue (7%) Op Profit +141% Revenue (10%) Op Profit (3%) Revenue +70% Op Profit +405% Revenue +66% Op Profit +124% Constant currency (8%) +141% Constant currency: +2% +12% Constant currency +56% +371% Co
Slide 22: Debt Maturity Profile
Debt Maturity Profile ($ Millions) Maturity Schedule for Credit Facility and Senior Notes Revolver $1,000 Term Loan A Senior Notes $1,089 Senior Notes $600 $70 $70 $70 $400 2021 2022 2023 2024 2025 2026 2027 22
Slide 23: Estimated Cash Payments for Legacy Liabilities
Estimated Cash Payments for Legacy Liabilities ($ Millions) Payments to Primary U.S. Pension Payments to UMWA $281 No cash payments are expected in foreseeable future $23 $24 $23 $0 2021 2022 2023 2024 2025 2026 2020 2029 2030 2031 After 2031 Primary US Pension • The American Rescue Plan Act ("ARPA"
Slide 24: 2019 Non-GAAP Results Reconciled to GAAP (1 of 3)
2019 Non-GAAP Results Reconciled to GAAP (1 of 3) The Brink’s Company and subsidiaries Non-GAAP Reconciliations (In millions) 2019 Q1 Full Year Revenues: GAAP $ 905.0 3,683.2 Acquisitions and dispositions(a) - 0.5 Internal loss(a) - (4.0) Non-GAAP $ 905.0 3,679.7 Operating profit (loss): GAAP $ 58.4
Slide 25: 2019 Non-GAAP Results Reconciled to GAAP (2 of 3)
2019 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) 2019 Q1 Full Year Income (loss) from continuing operations attributable to Brink's: GAAP $ 13.7 28.3 Retirement plans(c) 6.5 36.2 Venezuela oper
Slide 26: 2019 Non-GAAP Results Reconciled to GAAP (3 of 3)
2019 Non-GAAP Results Reconciled to GAAP (3 of 3) The Brink’s Company and subsidiaries Non-GAAP Reconciliations (In millions) 2019 Q1 Full Year Adjusted EBITDA(f): Net income (loss) attributable to Brink's - GAAP $ 13.7 29.0 Interest expense - GAAP 23.0 90.6 Income tax provision - GAAP 9.7 61.0 Depr
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 – Net Debt
Non-GAAP Reconciliation – Net Debt The Brink’s Company and subsidiaries Non-GAAP Reconciliations - Net Debt (Unaudited) (In millions) December 31, March 31, (In millions) 2020 2021 Debt: Short-term borrowings $ 14.2 $ 23.8 Long-term debt 2,471.5 2,563.3 Total Debt 2,485.7 2,587.1 Less: Cash and cash