Brinks Company (the) · NYSE:BCO
Brinks Company (the) — Q1 2018 Earnings Presentation
29 slides from Brinks Company (the)'s earnings presentation, Apr 25, 2018
Slide 1: First Quarter 2018
First Quarter 2018 April 25, 2018 Exhibit 99.2
Slide 2: Safe Harbor Statement and Non-GAAP Results
Safe Harbor Statement and Non-GAAP Results 2 These materials contain forward-looking information. Words such as "anticipate," "assume," "estimate," "expect," “target” "project," "predict," "intend," "plan," "believe," "potential," "may," "should" and similar expressions may identify forward-looking
Slide 3: First-Quarter 2018 Non-GAAP Results
First-Quarter 2018 Non-GAAP Results 3 8.2% Margin Note: See detailed reconciliations of non-GAAP to GAAP results included in the First Quarter 2018 Earnings Release available in the Quarterly Results section of the Brink’s website: www.brinks.com. (Non-GAAP, $ Millions, except EPS) Op Profit +34% Or
Slide 4: North America: Strong Margin Improvement
North America: Strong Margin Improvement 4 8.2% Margin Op Profit +102% $10 $21 2017 2018 3.3% Margin 6.4% Margin 11.8% Margin Revenue +5% Organic +2% Acq +1% FX +3% $305 $320 2017 2018 Highlights • Organic revenue: U.S. up 4%, N.A. up 5% excluding recycler sales in 1Q17 • 6.4% margin, up 310 bps • S
Slide 5: South America: Strong Revenue and Margin Growth
South America: Strong Revenue and Margin Growth 5 8.2% Margin Op Profit +42% $39 $56 2017 2018 19.4% Margin 21.8% Margin 11.8% Margin Revenue +26% Organic +18% Acq +18% FX (10%) $202 $255 2017 2018 Highlights • Strong organic revenue growth throughout the region • Acquisition integration on track •
Slide 6: ROW: Growth Offset by Pricing Pressure in France
ROW: Growth Offset by Pricing Pressure in France 6 8.2% Margin Op Profit +1% $25 $26 2017 2018 10.9% Margin 9.2% Margin 11.8% Margin Revenue +19% Organic +2% Acq +5% FX +12% $234 $278 2017 2018 Highlights • Revenue growth due to strong euro and acquisition of Temis in France • Organic profit decline
Slide 7: On Track to Meet 2018 Guidance
$3,193 $3,450 2017 2018 On Track to Meet 2018 Guidance 7 8.2% Margin Op Profit +30% - +37% $281 $365-$385 2017 2018 8.8% Margin ~10.9%1 Margin 11.8% Margin 13.3% Margin Revenue Total +8% Organic +5% Acq./Disp. +3% FX - Adjusted EBITDA +21% - +26% $425 $515-$535 2017 2018 13.3% Margin ~15.2%1 Margin
Slide 8: Three-Year Strategic Plan: Organic Growth + Acquisitions
Three-Year Strategic Plan 8 Organic Growth + Acquisitions 11.8% Margin 13.3% Margin Organic Growth + Acquisitions = Increased Value for Shareholders 2019 Adjusted EBITDA Target = $625 Million Strategy 1.0 Core Organic Growth 20182017 2019 Strategy 1.5 Acquisitions • Focus on “core-core” & “core-adja
Slide 9: Strategy 1.0 + 1.5: Core Organic Growth + Acquisitions
$216 $390 $90 $470 2016 Actual North America South America Rest of World Contingency 2019 Target Organic Completed & Announced Acquisitions 2019 Target w/ Acquisitions Strategy 1.0 + 1.5 = Core Organic Growth + Acquisitions 9 OP Margin 7.4% 3.7% 2% 0.4% (2.5%) ~11% ~12% EBITDA Margin 11.8% ~15% ~16%
Slide 10: Strategy 1.0 + 1.5 + Potential Future Acquisitions
2016 Actual 2019 Target Organic Only Completed & Announced Acquisitions 2019 Target with Completed & Announced Acquisitions Potential Acquisitions with Full Synergies Illustrative EBITDA with Potential Acquisitions & Full Synergies Strategy 1.0 + 1.5 + Potential Future Acquisitions 10 Note: See deta
Slide 11: First-Quarter 2018 Non-GAAP Revenue Up 15%
$740 $17 $45 $51 $853 2017 Revenue FX Organic Acq / Disp 2018 Revenue First-Quarter 2018 Non-GAAP Revenue Up 15% 11Note: See detailed reconciliations of non-GAAP to GAAP results included in the First Quarter 2018 Earnings Release available in the Quarterly Results section of the Brink’s website: www
Slide 12: First-Quarter 2018 Non-GAAP Operating Profit Up 34%
$54 ($4) $13 $9 $72 2017 Op Profit FX Organic Acq / Disp 2018 Op Profit First-Quarter 2018 Non-GAAP Operating Profit Up 34% 12Note: See detailed reconciliations of non-GAAP to GAAP results included in the First Quarter 2018 Earnings Release available in the Quarterly Results section of the Brink’s w
Slide 13: First-Quarter 2018 Adjusted EBITDA = $110 Million
$72 ( $14 ) ( $21 ) ( $2 ) $34 $33 $36 $7 $110 Op Profit Net Interest Taxes Non-controlling Interest Income from Continuing Ops D&A Interest Exp & Taxes Share-based Compensation Adjusted EBITDA First-Quarter 2018 Adjusted EBITDA = $110 Million 13Note: See detailed reconciliations of non-GAAP to GAAP
Slide 14: First-Quarter 2018 Interest Expense
$5 $2 $4 $4 $15 2017 Interest Rate Impact & Other 2017 Acquistions Available Excess Cash from Debt Refinance 2018 First-Quarter 2018 Interest Expense 14 ($ Millions) Note: See detailed reconciliations of non-GAAP to GAAP results included in the First Quarter 2018 Earnings Release available in the Qu
Slide 15: Income Tax Evolution
Income Tax Evolution 15 2017 Effective Tax Rate Note: See detailed reconciliations of non-GAAP to GAAP results included in the First Quarter 2018 Earnings Release available in the Quarterly Results section of the Brink’s website: www.brinks.com. Amounts may not add due to rounding. • Global Capital
Slide 16: First-Quarter 2018 Non-GAAP EPS
$0.58 ( 0.05 ) 0.16 0.12 (0.05) ( 0.03 ) ( 0.03 ) ( 0.03 ) ( 0.02 ) 0.65 2017 EPS Currency Organic Acq / Disp Acquisitions Available Excess Cash from Debt Refinance Interest Rate Impact/Other Tax Shares / Non- controlling interest 2018 EPS First-Quarter 2018 Non-GAAP EPS 16 Operating Profit Net Inte
Slide 17: Capital Expenditures 2015-2020
2015 Actual 2016 Actual 2017 Actual 2017 Actual 2018 Outlook 2019 Outlook 2020 Outlook Capital expenditures 2015 – 20201 Facility Equipment / Other IT Armored Vehicles % Revenue 3.5% 4.2% 5.8% 5.8% ~6% ~5.5% ~4% D&A1 $118 $112 $119 $119 Reinvestment Ratio 0.9 1.1 1.6 1.6 $124 1. Excludes CompuSafe®
Slide 18: Strong Free Cash Flow Expected
Strong Free Cash Flow Expected 18 Actual 2017 Target 2018 Target 2019 Adjusted EBITDA $425 ~$525 ~$625 Working Capital & Other (86) ~(10) ~(15) Cash Taxes (84) ~(85) ~(75) Cash Interest (27) ~(60) ~(65) Non-GAAP Cash from Operating Activities 229 ~370 ~470 Capital Expenditures excl. CompuSafes (185)
Slide 19: Leverage Ratio <1.5x with Potential Acquisitions
Leverage Ratio <1.5x with Potential Acquisitions $301 $612 $681 ~ $480 ~ $1,100 March 2017 Dec 2017 March 2018 2019 Target with Completed & Announced Acquisitions Illustrative Net Debt with Potential Acquisitions with Full Synergies Leverage Ratio1 0.8 1.4 Net Debt and Financial Leverage 1. Net Debt
Slide 20: Continued Improvement Expected
Continued Improvement Expected 20 $216 $281 $365- $385 ~ $470 $126 $144 ~ $150 ~ $155 $342 $425 $515-$535 ~ $625 7.4% 8.8% 10.6%-11.2% ~12% 11.8% 13.3% ~15.2% ~16% 2016 2017 2018 Outlook 2019 Target Adj. EBITDA Margin Op Profit Margin D&A/Other Op Profit Adj. EBITDA Non-GAAP Operating Profit & Adj.
Slide 21: Appendix
Appendix
Slide 22: Non-GAAP Reconciliation — Outlook
Non-GAAP Reconciliation — Outlook The Brink’s Company and subsidiaries 2018 and 2019 Guidance (Unaudited) (In millions, except as noted) 22 2018 GAAP Outlook(b) Reconciling Items(a) 2018 Non-GAAP Outlook(a) 2019 GAAP Outlook(b) Reconciling Items(a) 2019 Non-GAAP Outlook(a) Revenues $ 3,476 (26) 3,45
Slide 23: 2016 Non-GAAP Results Reconciled to GAAP (1 of 4)
2016 Non-GAAP Results Reconciled to GAAP (1 of 4) The Brink’s Company and subsidiaries Non-GAAP Reconciliations (In millions) 23 2016 Full Year Revenues: GAAP 3,020.6 Venezuela operations(a) (109.4) Acquisitions and dispositions(a) (2.8) Non-GAAP 2,908.4 Operating profit (loss): GAAP 184.5 Venezuela
Slide 24: 2016 Non-GAAP Results Reconciled to GAAP (2 of 4)
2016 Non-GAAP Results Reconciled to GAAP (2 of 4) The Brink’s Company and subsidiaries Non-GAAP Reconciliations (In millions) 24 2016 Full Year Income (loss) from continuing operations attributable to Brink's: GAAP 36.2 Retirement plans(c) 20.2 Venezuela operations(a) 2.6 Reorganization and Restruct
Slide 25: 2016 Non-GAAP Results Reconciled to GAAP (3 of 3)
2016 Non-GAAP Results Reconciled to GAAP (3 of 3) The Brink’s Company and subsidiaries Non-GAAP Reconciliations (In millions) 25 2016 Full Year Adjusted EBITDA(e): Net income (loss) attributable to Brink's - GAAP 34.5 Interest expense - GAAP 20.4 Income tax provision - GAAP 78.5 Depreciation and amo
Slide 26: Non-GAAP Reconciliation — Other
Non-GAAP Reconciliation — Other The Brink’s Company and subsidiaries Other Items Not Allocated to Segments (Unaudited) (In millions) 26 Brink’s measures its segment results before income and expenses for corporate activities and for certain other items. A summary of the other items not allocated to
Slide 27: Non-GAAP Reconciliation — Other
Non-GAAP Reconciliation — Other The Brink’s Company and subsidiaries Non-GAAP Reconciliations — Other Amounts (Unaudited) (In millions) Amounts Used to Calculate Reinvestment Ratio Property and Equipment Acquired During the Period Full-Year 2015 Full Year 2016 Full Year 2017 Capital expenditures — G
Slide 28: Non-GAAP Reconciliation — Cash Flows
Non-GAAP Reconciliation — Cash Flows The Brink’s Company and subsidiaries (In millions) 28 Full Year 2017 Cash flows from operating activities Operating activities - GAAP $ 252.1 Venezuela operations (17.3) (Increase) decrease in certain customer obligations(a) (6.1) Operating activities - non-GAAP
Slide 29: Non-GAAP Reconciliation — Net Debt
Non-GAAP Reconciliation — Net Debt The Brink’s Company and subsidiaries Non-GAAP Reconciliations — Net Debt (Unaudited) (In millions) a) Restricted cash borrowings are related to cash borrowed under lending arrangements used in the process of managing customer cash supply chains, which is currently