Brinks Company (the) · NYSE:BCO

Brinks Company (the) — Q2 2013 Earnings Presentation

24 slides from Brinks Company (the)'s earnings presentation, Jul 25, 2013

  1. Slide 1: Second-Quarter 2013 Earnings Conference Call

    The Brink’s Company Second-Quarter 2013 Earnings Conference Call NYSE:BCO July 25, 2013 Exhibit 99.2

  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

  3. Slide 3: The Brink's Company - Ed Cunningham, Investor Relations

    The Brink’s Company Ed Cunningham Director - Investor Relations

  4. Slide 4: Highlights of Second-Quarter Results

    Highlights of Second-Quarter Results GAAP EPS $.27 vs $.71 Non-GAAP Summary: • EPS $.44 vs $.48 • Segment margin 5.9% vs 6.0% • Revenue up 6% (8% organic growth) Note : See reconciliation to GAAP results in Appendix

  5. Slide 5: The Brink's Company - Tom Schievelbein, CEO

    The Brink’s Company Tom Schievelbein Chairman, President and Chief Executive Officer

  6. Slide 6: CEO Overview

    CEO Overview • Second Quarter • International margin 6.5% vs 6.1% • North America margin 4.1% vs 5.7% • 2013 Outlook Affirmed • Segment margin 6% to 6.5% • Organic revenue growth 5% to 8%

  7. Slide 7: CEO Overview - International Operations

    CEO Overview - International Operations • Latin America • Second-quarter profit growth led by Venezuela, Mexico, Argentina • Expect continued growth in 2 nd half • Europe - slight profit decline expected in • Asia-Pacific - continued improvement expected

  8. Slide 8: CEO Overview - North America

    CEO Overview - North America • Continued price/volume pressures • CIT: Focus on cost, productivity, pricing • Shift mix to higher-margin solutions • Strengthen leadership, IT capabilities • Profit growth expected in 2014 • 7% margin target in 2016

  9. Slide 9: CEO Overview - Strategy Update

    CEO Overview • Strategy Update • Maximize profits in North America, Europe • Invest in Latin America, adjacent markets • Capital spending reduced • New senior leadership team in place, focused on profit growth and shareholder value

  10. Slide 10: The Brink's Company - Joe Dziedzic, CFO, Review and Outlook

    The Brink’s Company Joe Dziedzic Vice President and Chief Financial Officer Review and Outlook

  11. Slide 11: 2Q13 Non-GAAP Results

    2Q13 Non-GAAP Results ($ millions, except EPS) Note : See reconciliation to GAAP results in Appendix

  12. Slide 12: Non-GAAP EPS: 2Q12 Versus 2Q13

    Non-GAAP EPS: 2Q12 Versus 2Q13

  13. Slide 13: 2Q13 Non-GAAP Segment Results

    2Q13 Non-GAAP Segment Results Revenue Segment Operating Profit — 8% organic growth, 2% unfavorable currency impact — 10% organic growth in International — North America flat — International up $7 — North America down $4 — Unfavorable currency impact of $2 ($ millions) Note : See reconciliation to GA

  14. Slide 14: Non-GAAP Cash Flow, Capital Investment and Net Debt

    14 Non-GAAP Cash Flow, Capital Investment and Net Debt ($ millions) (a) See reconciliation to GAAP results in Appendix (b) From continuing operations Net Debt (a) Capital Expenditures and Capital Leases (b) Non-GAAP CFOA (a) (b)

  15. Slide 15: 2013 Outlook Non-GAAP

    2013 Outlook Non-GAAP — Organic growth 5% to 8% — Unfavorable currency impact 2% to 4% Assumptions vs 2012 Note: As of July 25, 2013 Revenue Non-GAAP Segment Margin Rate — North America 2% to 3% — International 7% to 8% — Total segment 6% to 6.5% Other Metrics — Non-segment expense $41 — Interest ex

  16. Slide 16: Second-Quarter 2013 Earnings Conference Call

    The Brink’s Company Second-Quarter 2013 Earnings Conference Call NYSE:BCO July 25, 2013

  17. Slide 17: Appendix - Legacy Liabilities

    Appendix - Legacy Liabilities

  18. Slide 18: Legacy Liabilities at December 31, 2012

    Estimated Contributions to U.S. Plans 2012A 2013 2014 2015 2016 2017 US Pension $ 37 14 29 42 44 38 UMWA 0 0 0 0 0 0 Black Lung/Other 7 5 5 5 4 4 Total $ 44 19 34 47 48 42 Legacy Liabilities at December 31, 2012 ($ millions) $275 Under- funding Under- funding $ 257 Note: Above amounts based on actua

  19. Slide 19: Appendix - Non-GAAP Reconciliations

    Appendix Non-GAAP Reconciliations

  20. Slide 20: Non-GAAP reconciliation footnotes

    (a) To eliminate results of additional European operations we intend to exit in 2013. Operations do not currently meet requirements to be classified as discontinued operations. (b) To eliminate a $1.1 million adjustment to the amount of gain recognized on a 2010 business acquisition in Mexico as a r

  21. Slide 21: GAAP to Non-GAAP Reconciliation

    GAAP Basis Additional European Operations to be Exited (a) Gains & Losses on Acquisitions & Dispositions (b) Employee Benefit Settlement & Severance Losses (c) U.S. Retirement Plans (d) Tax Benefit on Change in Health Care Funding Strategy (e) Adjust Income Tax Rate (f) Non-GAAP Basis Second Quarter

  22. Slide 22: Non-GAAP reconciliation footnotes

    (a) To eliminate results of additional European operations we intend to exit in 2013. Operations do not currently meet requirements to be classified as discontinued operations. (b) To eliminate: • Gains related to the sale of investments in mutual fund securities ($1.9 million in the first quarter a

  23. Slide 23: Non-GAAP Reconciliations - Cash Flows

    NON-GAAP CASH FLOWS FROM OPERATING ACTIVITIES - RECONCILED TO AMOUNTS REPORTED UNDER U.S. GAAP First Half 2013 2012 Cash flows from operating activities - GAAP $ 41.1 $ 30.3 Decrease (increase) in certain customer obligations (a) (14.8) 20.4 Cash outflows (inflows) related to discontinued operations

  24. Slide 24: Net Debt - Reconciled to U.S. GAAP

    NET DEBT - RECONCILED TO U.S. GAAP June 30, December 31, 2013 2012 Debt: Short-term debt $ 94.1 26.7 Long-term debt 432.8 362.6 Less: Cash and cash equivalents 239.8 201.7 Cash and cash equivalents available for general corporate purposes 183.7 157.7 Net Debt $ 343.2 231.6 (a) Title to cash received

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