Brinks Company (the) · NYSE:BCO
Brinks Company (the) — Q2 2021 Earnings Presentation
26 slides from Brinks Company (the)'s earnings presentation, Jul 22, 2021
Slide 1: Second-Quarter Earnings
Second-Quarter Earnings July 22, 2021
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) Strong 2Q Results, Continued Growth Expected in Second Half and in 2022 Strong 2Q growth in revenue, operating profit, adjusted EBITDA and EPS • Revenue up 27%...driven by organic growth of 15% and acquisitions • Operating profit up 51%, margin up 160 bps to 10.5% • Adjusted
Slide 4: 2021 Guidance
2021 Guidance (non-GAAP, $ millions, except EPS) Strong Revenue and Margin Growth Expected in 2021 Revenue1,2 +14 -19% Op Profit1 +34% Adj. EBITDA1 +25% EPS1 +32% ~15% growth $785- $825 $4,600 $4,400 $750 $556 $5.55 $4,200 $705 $511 $4.95 $3,680 $3,691 $660 $466 $4.35 $567 $566 $3.89 $3.76 $392 $381
Slide 5: Second-Quarter 2021 Results
Second-Quarter 2021 Results (non-GAAP, $ millions, except EPS) Revenue +27% Op Profit +51% Adj. EBITDA +39% EPS +62% Constant currency +22% Constant currency +48% Constant currency +35% Constant currency +56% Organic +15% Organic +42% +59% excluding Acq +7% Acq +5% MGI impact1 FX +5% FX +4% $1,049 $
Slide 6: Second-Quarter Revenue and Operating Profit vs 2020
Second-Quarter Revenue and Operating Profit vs 2020 (non-GAAP, $ millions) Revenue Operating Profit % Change 15% 7% 22% 5% 27% % Change 42% 5% 48% 4% 51% Constant Constant Currency Currency $4 $108 $3 $111 $39 $1,049 $31 $59 $1,010 $125 $826 $73 8.9% 10.7% 10.5% Margin Margin Margin 2020 Organic Acq
Slide 7: Second-Quarter Adjusted EBITDA and EPS vs 2020
Second-Quarter Adjusted EBITDA and EPS vs 2020 (non-GAAP, $ millions, except EPS) +39% Q2 2021 EPS: $1.18 +62% vs PY vs PY Q2 2020 EPS: $0.73 Q2 2021 EPS includes MGI impact of +$0.07 vs Q2 2020 $11 ( $11 ) $58 $166 $111 ( $28 ) $48 ( $30 ) $6 $60 Op Profit Interest Taxes Other Income from D&A Inter
Slide 8: Strong Free Cash Flow Expected in 2021
Strong Free Cash Flow Expected in 2021 (Non-GAAP, $ millions) Adjusted EBITDA $660-$750 ( $95 ) Growth of ~65% excluding Adjusted EBITDA D&A / ( $95 ) deferred $194 Working Capital and Cash Restructuring: Lower Other payments restructuring expected in 2021 post-Covid-19 and ( $105 ) G4S acquisition
Slide 9: Net Debt and Leverage
Net Debt and Leverage (Non-GAAP, $ millions) Net Debt Adjusted EBITDA and Financial Leverage Net Debt Leverage 3.3 3.4 ~2.7 – 3.2 ~2.2 – 2.4 Ratio1 $2,219 $2,055 - Secured Leverage Ratio3 $2,145 ~2.0 $785 - $825 (Max = 4.0x) $1,800 - $1,884 $1,900 $660 - $750 $989 Unsecured $645 $990 Adjusted Senior
Slide 10: Building a More Sustainable Brink's
Building a More Sustainable Brink’s As the world’s largest cash management company, we help empower millions of underbanked people around the world access goods and services by keeping cash moving and accessible. While sustainability has long been important to us, societal expectations have intensif
Slide 11: 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 2020 2021 2022 2023 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 Pa
Slide 12: Digital Solutions Expected to Gain Traction in 2022
Digital Solutions Expected to Gain Traction in 2022 Seizing the Unvended Opportunity with Brink’s Complete Unvended Opportunity for Cash Management Benefits for retailers include: ~85% of U.S. Retail / Merchant Locations Not Served • On-site deposits eliminate trips to the bank Unvended “white space
Slide 13: Core Operations Drive Strong Earnings Growth
Core Operations Drive Strong Earnings Growth (non-GAAP, $ millions, except EPS) Digital Solutions Expected to Add New Layer of Growth in 2022 Revenue, Adjusted EBITDA & Operating Profit 2021 Guidance $4,200 - $4,600 Low Mid High vs 20202 $3,680 $3,691 Revenue Revenue1 $4,200 $4,400 $4,600 +14 - 19%
Slide 14: Appendix
Appendix
Slide 15: Second-Quarter Results by Segment
Second-Quarter Results by Segment ($ millions) North America Latin America Europe Rest of the World Revenue +30% Op Profit +389% Revenue +18% Op Profit +37% Revenue +37% Op Profit +1458% Revenue +23% Op Profit +3% Constant currency +29% +388% Constant currency +17% +40% Constant currency +26% +1342%
Slide 16: Cash Levels Stronger Post-Covid
Cash Levels Stronger Post-Covid (USD, Billions) USD – Currency in Circulation1 Brink’s Cash Levels 2,200 Second Quarter 2021 Second quarter 2021 2,100 2,000 13% Brink’s U.S. Cash Processed YoY % Increase 1,900 1,800 1,700 1990-2020 6% +17% +19% 1,600 30-yr CAGR vs 2Q20 vs 2Q19 2019 2020 2021 Value o
Slide 17: Cash is Inclusive and Does Not Discriminate
Cash is Inclusive and Does Not Discriminate Cash is a vital lifeline to millions of Americans who rely on it to Restricting cash will exclude a purchase goods and services. In 2020, ~18% of U.S. adults were significant portion of the population, either unbanked or underbanked and consequently highly
Slide 18: U.S. Lawmakers Pursue Legislation to Protect Cash
U.S. Lawmakers Pursue Legislation to Protect Cash Local and federal lawmakers are pursuing legislation to ensure cash is accepted at all physical retail locations. There are too many stores and businesses that want The Payment Choice Act recently introduced by Representative Donald M. Payne Jr. (D-N
Slide 19: Strong Financial Health – Ample Liquidity
Strong Financial Health – Ample Liquidity ($ millions, except where noted) Increased liquidity in 2020 Cash and Debt Capacity • Incremental $590 million Term Loan A closed on April 1, 2020 Cash $602 $634 ~$1.3 B • Incremental $400 million Senior Notes closed on ~$1.6 B Liquidity Liquidity ~$1.4 B Ju
Slide 20: Debt Maturity Profile
Debt Maturity Profile ($ millions) $1,000 Revolver Term Loan A Senior Notes $1,089 Senior Notes $600 $70 $70 $70 $400 2021 2022 2023 2024 2025 2026 2027 Maturity Schedule for Credit Facility and Senior Notes 20
Slide 21: Estimated Cash Payments for Legacy Liabilities
Estimated Cash Payments for Legacy Liabilities ($ millions) Payments to Primary U.S. Pension Payments to UMWA $281 No cash payments are expected in foreseeable future $23 $24 $23 Term $0 Loan A 2021 2022 2023 2024 2025 2026 2020 2029 2030 2031 After 2031 Primary US Pension • The American Rescue Plan
Slide 22: 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 2019 (In millions) Q2 Full Year Revenues: GAAP $ 914.0 3,683.2 Acquisitions and dispositions(a) 0.3 0.5 Internal loss(a) - (4.0) Non-GAAP $ 914.3 3,679.7 Operating profit (loss): GAAP $ 52
Slide 23: 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 2019 (In millions, except for per share amounts) Q2 Full Year Income (loss) from continuing operations attributable to Brink's: GAAP $ 12.6 28.3 Retirement plans(c) 4.9 36.2 Venezuela oper
Slide 24: 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 Q2 Full Year Adjusted EBITDA(f): Net income (loss) attributable to Brink's - GAAP $ 12.5 29.0 Interest expense - GAAP 22.7 90.6 Income tax provision - GAAP 12.7 61.0 Dep
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) 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 26: 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, June 30, (In millions) 2020 2021 Debt: Short-term borrowings $ 14.2 $ 14.7 Long-term debt 2,471.5 2,837.7 Total Debt 2,485.7 2,852.4 Less: Cash and cash