Slide 1: Fourth-Quarter 2013 Earnings Conference Call
The Brink’s Company Fourth-Quarter 2013 Earnings Conference Call NYSE:BCO January 30, 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 - Ed Cunningham, Investor Relations
The Brink’s Company Ed Cunningham Director - Investor Relations
Slide 4: Fourth-Quarter Summary
Fourth-Quarter Summary • GAAP EPS $.53 vs $.70 • Non-GAAP Summary: • EPS $.79 vs $.60 • Segment margin 8.8% vs 7.5% • Revenue up 6% (11% organic growth) Note : See reconciliation to GAAP results in Appendix
Slide 5: Full-Year Summary
Full-Year Summary • GAAP EPS $1.47 vs $2.29 • Non-GAAP Summary: • EPS $2.37 vs $2.32 • Segment margin flat at 7.2% • Revenue up 6% (8% organic growth) Note : See reconciliation to GAAP results in Appendix
Slide 6: Tom Schievelbein, Chairman, President and CEO
The Brink’s Company Tom Schievelbein Chairman, President and Chief Executive Officer
Slide 7: CEO Overview
CEO Overview • Strong Fourth Quarter - International Operations • 2014 Outlook • Segment margin ~7% Fourth-Quarter 2013 Revenue ($1.0 billion)
Slide 8: International Operations
International Operations • Fourth Quarter 2013 • Latin America profit growth - Venezuela and Brazil • Europe profit growth - France 2013 Revenue ($3.9 billion) • Full Year 2013 • Latin America profit growth - Venezuela and Argentina • Europe profit down - Belgium theft loss • Asia profit growth - Ho
Slide 9: North America
North America • 2013 Segment Margin • Fourth-Quarter 1.4% • Full-Year 1.8% • 2016 Goal 7.0%* • Increase “performing branches” in U.S. • Aggressive cost reductions • Productivity initiatives • Change U.S. revenue mix 2013 Revenue ($3.9 billion) * Excluding Global Payments
Slide 10: North America Segment Margin Rate - Excluding Global Payments
North America Segment Margin Rate - Excluding Global Payments
Slide 11: U.S. - Performing Branches
U.S. - Performing Branches 75% 3Q'13 4Q'13 2016
Slide 12: Shift U.S. Revenue Mix to High-Value Services
CIT & ATM 52% High-Value Services 48% CIT & ATM 49% High-Value Services 51% Shift U.S. Revenue Mix to High-Value Services Note: High-Value Services includes Global Services and Cash Management Services. Cash Management Services includes money processing, vaulting, ATM management and CompuSafe® Servi
Slide 13: 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 Expected to improve 2H14 profi
Slide 14: 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 15: Growth Strategy
Growth Strategy • Latin America • Global Services • Integrated Managed Services / ATMs • Global Payments • Online Checkout • Payroll and other reloadable cards • Payment networks (ePago) Organic Growth Rates
Slide 16: CEO Overview - 2014 Outlook
CEO Overview - 2014 Outlook • Organic revenue growth 5 - 8 % • Segment margin rate ~7% • Cost and Productivity Improvements • Investing in Global Payments, Brink’s IMS, Commercial Strategy • Exploring U.S. Home Security Re-entry
Slide 17: Joe Dziedzic, CFO - Review and Outlook
The Brink’s Company Joe Dziedzic Vice President and Chief Financial Officer Review and Outlook
Slide 18: 4Q13 Non-GAAP Results
4Q13 Non-GAAP Results ($ millions, except EPS) Note : See reconciliation to GAAP results in Appendix Revenue Segment Operating Profit EPS
Slide 19: Full-Year 2013 Non-GAAP Results
Full-Year 2013 Non-GAAP Results ($ millions, except EPS) Note : See reconciliation to GAAP results in Appendix Revenue Segment Operating Profit EPS
Slide 20: Non-GAAP EPS: 4Q12 Versus 4Q13
Non-GAAP EPS: 4Q12 Versus 4Q13 Note : See reconciliation to GAAP results in Appendix
Slide 21: Non-GAAP EPS: Full Year 2012 Versus Full Year 2013
Non-GAAP EPS: Full Year 2012 Versus Full Year 2013 Note : See reconciliation to GAAP results in Appendix
Slide 22: Organic Growth Rate
Organic Growth Rate Guidance 5 - 8%
Slide 23: Non-GAAP Quarterly Segment Profit
Non-GAAP Quarterly Segment Profit Second half typically stronger than first half ($ millions) See reconciliation to GAAP results in Appendix
Slide 24: Non-GAAP Cash Flow, Capital Investment and Net Debt
24 $64 $57 $132 $126 Non-GAAP Cash Flow, Capital Investment and Net Debt ($ millions) (a) See reconciliation to GAAP results in Appendix (b) From continuing operations Capital Expenditures and Capital Leases (b) Non-GAAP CFOA (a) (b) North America International Net Debt (a)
Slide 25: Capex Spend
Capex Spend Reinvestment Ratio ($ millions, except ratio)
Slide 26: Capex Spend Mix Shift
Capex Spend Mix Shift Shifting Focus • Shifting mix to lower maintenance spend on vehicles and facilities • Increased spend on IT to enable business process productivity • Continued focus on safety and security
Slide 27: Legacy Liabilities - Underfunding - At December
Legacy Liabilities - Underfunding - At December 31 ($ millions)
Slide 28: 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 29: 2014 Outlook
2014 Outlook • Organic revenue growth 5 - 8 % • Segment margin rate ~7% • Investing in Global Payments, Brink’s IMS, Commercial Strategy • Exploring U.S. Home Security Re-entry • Assumes no Venezuela devaluation in 2014
Slide 30: Fourth-Quarter 2013 Earnings Conference Call
The Brink’s Company Fourth-Quarter 2013 Earnings Conference Call NYSE:BCO January 30, 2014
Slide 31: Appendix - Non-GAAP Reconciliations
Appendix Non-GAAP Reconciliations
Slide 32: Non-GAAP Reconciliations - 1Q13
GAAP Basis Gains on Acquisitions and Asset Dispositions (a) Net Monetary Asset Remeasurement Losses in Venezuela (b) Employee Benefit Settlement Losses (c) U.S. Retirement Plans (d) Adjust Income Tax Rate (e) Non- GAAP Basis First Quarter 2013 Revenues: Latin America $ 412.9 − − − − − 412.9 EMEA 277
Slide 33: Non-GAAP Reconciliations - 2Q13
GAAP Basis Gains on Acquisitions and Asset Dispositions (a) Net Monetary Asset Remeasurement Losses in Venezuela (b) Employee Benefit Settlement Losses (c) U.S. Retirement Plans (d) Adjust Income Tax Rate (e) Non- GAAP Basis Second Quarter 2013 Revenues: Latin America $ 413.6 − − − − − 413.6 EMEA 29
Slide 34: Non-GAAP Reconciliations - 3Q13
GAAP Basis Gains on Acquisitions and Asset Dispositions (a) Net Monetary Asset Remeasurement Losses in Venezuela (b) Employee Benefit Settlement Losses (c) U.S. Retirement Plans (d) Adjust Income Tax Rate (e) Non- GAAP Basis Third Quarter 2013 Revenues: Latin America $ 423.8 − − − − − 423.8 EMEA 301
Slide 35: Non-GAAP Reconciliations - 4Q13
GAAP Basis Gains on Acquisitions and Asset Dispositions (a) Net Monetary Asset Remeasurement Losses in Venezuela (b) Employee Benefit Settlement Losses (c) U.S. Retirement Plans (d) Adjust Income Tax Rate (e) Non- GAAP Basis Fourth Quarter 2013 Revenues: Latin America $ 470.4 − − − − − 470.4 EMEA 30
Slide 36: Non-GAAP Reconciliations - Full Year 2013
GAAP Basis Gains on Acquisitions and Asset Dispositions (a) Net Monetary Asset Remeasurement Losses in Venezuela (b) Employee Benefit Settlement Losses (c) U.S. Retirement Plans (d) Adjust Income Tax Rate (e) Non- GAAP Basis Full Year 2013 Revenues: Latin America $ 1,720.7 − − − − − 1,720.7 EMEA 1,1
Slide 37: Non-GAAP Reconciliations - 1Q12
Non-GAAP Reconciliations - 1Q12 Amounts may not add due to rounding. See page 41 for notes. GAAP Basis Gains and Losses on Acquisitions and Dispositions (a) Employee Benefit Settlement and Severance Losses (b) U.S. Retirement Plans (c) Tax Benefit on Change in Health Care Funding Strategy (d) Adjust
Slide 38: Non-GAAP Reconciliations - 2Q12
Non-GAAP Reconciliations - 2Q12 Amounts may not add due to rounding. See page 41 for notes. GAAP Basis Gains and Losses on Acquisitions and Dispositions (a) Employee Benefit Settlement and Severance Losses (b) U.S. Retirement Plans (c) Tax Benefit on Change in Health Care Funding Strategy (d) Adjust
Slide 39: Non-GAAP Reconciliations - 3Q12
Non-GAAP Reconciliations - 3Q12 Amounts may not add due to rounding. See page 41 for notes. GAAP Basis Gains and Losses on Acquisitions and Dispositions (a) Employee Benefit Settlement and Severance Losses (b) U.S. Retirement Plans (c) Tax Benefit on Change in Health Care Funding Strategy (d) Adjust
Slide 40: Non-GAAP Reconciliations - 4Q12
Non-GAAP Reconciliations - 4Q12 Amounts may not add due to rounding. See page 41 for notes. GAAP Basis Gains and Losses on Acquisitions and Dispositions (a) Employee Benefit Settlement and Severance Losses (b) U.S. Retirement Plans (c) Tax Benefit on Change in Health Care Funding Strategy (d) Adjust
Slide 41: Non-GAAP Reconciliations - Full Year 2012
Non-GAAP Reconciliations - Full Year 2012 Amounts may not add due to rounding. GAAP Basis Gains and Losses on Acquisitions and Dispositions (a) Employee Benefit Settlement and Severance Losses (b) U.S. Retirement Plans (c) Tax Benefit on Change in Health Care Funding Strategy (d) Adjust Income Tax R
Slide 42: Non-GAAP Reconciliations - 1Q11
GAAP Basis Gains on Acquisitions and Asset Dispositions (a) Mexico Employee Benefit Settlement Losses (b) CEO Retirement Costs (c) U.S. Retirement Plans (d) Non-GAAP Basis First Quarter 2011 Revenues: Latin America $ 332.3 − − − − 332.3 EMEA 270.2 − − − − 270.2 Asia Pacific 31.9 − − − − 31.9 Interna
Slide 43: Non-GAAP Reconciliations - 2Q11
GAAP Basis Gains on Acquisitions and Asset Dispositions (a) Mexico Employee Benefit Settlement Losses (b) CEO Retirement Costs (c) U.S. Retirement Plans (d) Non-GAAP Basis Second Quarter 2011 Revenues: Latin America $ 360.5 − − − − 360.5 EMEA 292.8 − − − − 292.8 Asia Pacific 34.1 − − − − 34.1 Intern
Slide 44: Non-GAAP Reconciliations - 3Q11
GAAP Basis Gains on Acquisitions and Asset Dispositions (a) Mexico Employee Benefit Settlement Losses (b) CEO Retirement Costs (c) U.S. Retirement Plans (d) Non-GAAP Basis Third Quarter 2011 Revenues: Latin America $ 375.1 − − − − 375.1 EMEA 296.5 − − − − 296.5 Asia Pacific 35.5 − − − − 35.5 Interna
Slide 45: Non-GAAP Reconciliations - 4Q11
GAAP Basis Gains on Acquisitions and Asset Dispositions (a) Mexico Employee Benefit Settlement Losses (b) CEO Retirement Costs (c) U.S. Retirement Plans (d) Non-GAAP Basis Fourth Quarter 2011 Revenues: Latin America $ 392.8 − − − − 392.8 EMEA 283.5 − − − − 283.5 Asia Pacific 34.3 − − − − 34.3 Intern
Slide 46: Non-GAAP Reconciliations - Full Year 2011
First Quarter 2011 Third Quarter 2011 Full Year 2011 Operating Profit Operating Profit Operating Profit Sale of U.S. Document Destruction business $ - (6.7) (6.7) Acquisition of controlling interests (0.4) (2.1) (2.5) Sale of former operating assets - (0.5) (0.5) $ (0.4) (9.3) (9.7) GAAP Basis Gains
Slide 47: Non-GAAP Reconciliations - Cash Flows
2013 2012 Cash flows from operating activities - GAAP $ 201.5 $ 250.5 Decrease (increase) in certain customer obligations (a) 9.8 (15.7) Cash outflows (inflows) related to discontinued operations (b) (5.4) 4.9 Cash flows from operating activities - Non-GAAP $ 205.9 $ 239.7 Non-GAAP Reconciliations -
Slide 48: Net Debt Reconciliation
December 31, December 31, 2013 2012 Debt: Long-term debt 355.1 362.6 Less: Cash and cash equivalents 255.5 201.7 Amounts held by Cash Management Services operations (a) (31.3) (44.0) Cash and cash equivalents available for general corporate purposes 224.2 157.7 Net Debt $ 211.8 231.6 (a) Title to ca
Slide 49: Fourth-Quarter 2013 Earnings Conference Call
The Brink’s Company Fourth-Quarter 2013 Earnings Conference Call NYSE:BCO January 30, 2014