Slide 1: The Brink's Company Third Quarter 2014 Earnings Call
The Brink’s Company Third Quarter 2014 Earnings Call NYSE: BCO October 30, 2014 EXHIBIT 99.2
Slide 2: Forward-Looking Statements and Non-GAAP Results
Forward-Looking Statements and Non-GAAP Results 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
Slide 3: The Brink's Company Third Quarter 2014 Earnings Call
The Brink’s Company Third Quarter 2014 Earnings Call NYSE: BCO October 30, 2014
Slide 4: CEO Overview
CEO Overview * Third-Quarter Non-GAAP Results EPS $.19 vs $.69 Segment profit down $44 million $32 million organic decline– primarily Venezuela, Mexico and Brazil includes $10 million theft loss allocated across all regions $12 million negative currency (primarily Venezuela) Relatively flat profit f
Slide 5: Recent Events
* Recent Events Netherlands Restructuring Loss of major customer $16 million charge ($.24 per share) Charge excluded from non-GAAP results Peru Divestiture 36% equity stake sold for $60 million $44 million gain ($.45 per share) Gain excluded from non-GAAP results
Slide 6: 3Q14 Non-GAAP Results
* 3Q14 Non-GAAP Results ($ millions, except EPS) Note: See reconciliation to GAAP results in appendix Revenue Segment Operating Profit EPS
Slide 7: EPS: 3Q13 Versus 3Q14
* Non-GAAP EPS: 3Q13 Versus 3Q14 Segment Operating Profit Non-Segment Expense Non-Controlling Interest Tax Rate/Diluted Shares 3Q13 Note: See reconciliation to GAAP results in appendix $(0.05) Venezuela $0.12 Venezuela 3Q14 ($0.28) Venezuela ($0.13) Chile Theft Loss ($0.12) Other ($0.03) Foreign Cur
Slide 8: Cash Flow, Capital Investment and Net Debt
* Non-GAAP Cash Flow, Capital Investment and Net Debt ($ millions) See reconciliation to GAAP results in appendix Capital Expenditures and Capital Leases Net Debt (a) Non-GAAP CFOA(a) Excluding pension payments: $126 $143
Slide 9: Reinvestment Ratio
Reinvestment Ratio ($ millions, except ratio) * Capex Spend
Slide 10: Estimated Cash Payments to Primary U.S. Pension & UMWA
* Estimated Cash Payments to Primary U.S. Pension & UMWA Prepaid 2015 and 2016 pension payments totaling $61 million in 3Q 14 Accelerates de-risking of invested asset allocation Reduces PBGC premiums (current borrowing costs are lower than PBGC premiums) Lump-sum pension payment offered to eligible
Slide 11: 2014 Guidance Reduced
* 2014 Guidance Reduced Segment margin 5.5% - 6% Revenue $3.7 billion 2015 Targets Segment margin 6.5% - 7% Revenue $3.8 billion 2016 Targets Unchanged Segment margin 8% $290 to $330 million segment operating profit $2.50 - $3.00 EPS Non-GAAP Revenue and Margin Outlook 2014 - 2016 Note: See appendix
Slide 12: Brink's Total Segment Margin Outlook (Non-GAAP)
* Brink’s Total Segment Margin Outlook (Non-GAAP) Note: See appendix for reconciliation to GAAP
Slide 13: Profit Improvement Initiatives
* Profit Improvement Initiatives Centralization Reduce number of IT data centers Finance shared services Other administrative functions Fix U.S. & Mexico Improve branch performance Reduce SG&A Route logistics Field force automation One-man crews Procurement Global fleet & equipment tenders Vehicle r
Slide 14: North America Segment Margin Outlook (Non-GAAP)
* North America Segment Margin Outlook (Non-GAAP) (excluding Global Payments) Note: See appendix for reconciliation to GAAP
Slide 15: Mexico Segment Margin History and Outlook (Non-GAAP)
* Mexico Segment Margin History and Outlook (Non-GAAP) Note: See reconciliation to GAAP in appendix
Slide 16: 2016 Targets
* Non-GAAP 2016 Targets (a) 2013 Non-GAAP results adjusted for Venezuelan results at 50 bolivars per U.S. dollar. See appendix for reconciliations to GAAP and other information. Includes all regional/corporate allocated costs 2016 Target Margin / Potential EPS Growth(a) 2016 Target Margin / Potentia
Slide 17: 2016 Targets: How We Get There
2016 Targets * 2016 Non-GAAP Targets (a) 8% segment margin $290 - $330 million segment profit $2.50 - $3.00 EPS How We Get There Fix U.S. and Mexico Rest of world margin +1.0% point Organic revenue growth 5% Operational excellence Global procurement Centralization (a) See appendix for information re
Slide 18: Appendix
Appendix 18
Slide 19: 1Q2014 Non-GAAP Reconciliation
* Non-GAAP Reconciliations – 1Q2014 Amounts may not add due to rounding. See page 23 for notes. GAAP Basis Expenses Related to Currency Devaluation in Venezuela (a) Gains/ Losses on Acquisitions and Dispositions (b) Employee Benefit Settlement Losses (c) U.S. Retirement Plans (d) Share-based Compen-
Slide 20: 2Q2014 Non-GAAP Reconciliation
* Non-GAAP Reconciliations – 2Q2014 Amounts may not add due to rounding. See page 23 for notes. GAAP Basis Expenses Related to Currency Devaluation in Venezuela (a) Gains/ Losses on Acquisitions and Dispositions (b) Employee Benefit Settlement Losses (c) U.S. Retirement Plans (d) Share-based Compen-
Slide 21: 3Q2014 Non-GAAP Reconciliation
* Non-GAAP Reconciliations – 3Q2014 Amounts may not add due to rounding. See page 23 for notes. GAAP Basis Expenses Related to Currency Devaluation in Venezuela (a) Gains/ Losses on Acquisitions and Dispositions (b) Employee Benefit Settlement Losses (c) U.S. Retirement Plans (d) Share-based Compens
Slide 22: Nine Months 2014 Non-GAAP Reconciliation
* Non-GAAP Reconciliations – First 9 Months 2014 Amounts may not add due to rounding. See page 23 for notes. GAAP Basis Expenses Related to Currency Devaluation in Venezuela (a) Gains/ Losses on Acquisitions and Dispositions (b) Employee Benefit Settlement Losses (c) U.S. Retirement Plans (d) Share-
Slide 23: 2014 Notes
* Non-GAAP Reconciliations – 2014 Notes To eliminate the effects of the March 2014 currency devaluation in Venezuela as described in (g) below. Expenses eliminated from Non-GAAP results include first-quarter currency exchange losses totaling $122 million related to remeasured net monetary assets and
Slide 24: 1Q2013 Non-GAAP Reconciliation
* Non-GAAP Reconciliations – 1Q2013 Amounts may not add due to rounding. See page 30 for notes. GAAP Basis Gains/ Losses on Acquisitions and Dispositions (a) Expenses Related to Currency Devaluation in Venezuela (b) Employee Benefit Settlement Losses (c) U.S. Retirement Plans (d) Adjust Income Tax R
Slide 25: 2Q2013 Non-GAAP Reconciliation
* Non-GAAP Reconciliations – 2Q2013 Amounts may not add due to rounding. See page 30 for notes. GAAP Basis Gains/ Losses on Acquisitions and Dispositions (a) Expenses Related to Currency Devaluation in Venezuela (b) Employee Benefit Settlement Losses (c) U.S. Retirement Plans (d) Adjust Income Tax R
Slide 26: 3Q2013 Non-GAAP Reconciliation
* Non-GAAP Reconciliations – 3Q2013 Amounts may not add due to rounding. See page 30 for notes. GAAP Basis Gains/ Losses on Acquisitions and Dispositions (a) Expenses Related to Currency Devaluation in Venezuela (b) Employee Benefit Settlement Losses (c) U.S. Retirement Plans (d) Adjust Income Tax R
Slide 27: Nine Months 2013 Non-GAAP Reconciliation
* Non-GAAP Reconciliations – First 9 Months 2013 Amounts may not add due to rounding. See page 30 for notes. GAAP Basis Gains/ Losses on Acquisitions and Dispositions (a) Expenses Related to Currency Devaluation in Venezuela (b) Employee Benefit Settlement Losses (c) U.S. Retirement Plans (d) Adjust
Slide 28: 4Q2013 Non-GAAP Reconciliation
* Non-GAAP Reconciliations – 4Q2013 Amounts may not add due to rounding. See page 30 for notes. GAAP Basis Gains/ Losses on Acquisitions and Dispositions (a) Expenses Related to Currency Devaluation in Venezuela (b) Employee Benefit Settlement Losses (c) U.S. Retirement Plans (d) Adjust Income Tax R
Slide 29: Full Year 2013 Non-GAAP Reconciliation
* Non-GAAP Reconciliations – Full Year 2013 Amounts may not add due to rounding. See page 30 for notes. GAAP Basis Gains/ Losses on Acquisitions and Dispositions (a) Expenses Related to Currency Devaluation in Venezuela (b) Employee Benefit Settlement Losses (c) U.S. Retirement Plans (d) Adjust Inco
Slide 30: 2013 Notes
* Non-GAAP Reconciliations – 2013 Notes To eliminate $6.1 million in equity earnings ($1.6 million in the first quarter, $1.3 million in the second quarter, $1.5 million in the third quarter, and $1.7 million in the fourth quarter) from our former investment in a CIT business in Peru. a $1.1 million
Slide 31: Cash Flows
* Non-GAAP Reconciliations – Cash Flows To eliminate the change in the balance of customer obligations related to cash received and processed in certain of our Cash Management Services operations. The title to this cash transfers to us for a short period of time. The cash is generally credited to cu
Slide 32: Projected Financial Information
* Non-GAAP Reconciliations – Projected Financial Information North America Segment Margin Outlook North America Segment Margin Outlook North America Segment Margin Outlook North America Segment Margin Outlook North America Segment Margin Outlook North America Segment Margin Outlook North America Seg
Slide 33: Net Debt Reconciliation
* Title to cash received and processed in certain of our secure Cash Management Services operations transfers to us for a short period of time. The cash is generally credited to customers’ accounts the following day and we do not consider it as available for general corporate purposes in the managem