Brinks Company (the) · NYSE:BCO
Brinks Company (the) — Q1 2023 Earnings Presentation
19 slides from Brinks Company (the)'s earnings presentation, May 10, 2023
Slide 1: First-Quarter 2023 Earnings
First-Quarter 2023 Earnings May 10, 2023
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 1Q results summary (non-GAAP) • Revenue up 10% (13% organic) ‒ Organic growth of 9% in cash and valuables management and 31% in ATM Managed Services (AMS) and Digital Retail Solutions (DRS) • Operating profit up 14% to $127M (22% organic) ‒ Margin expansion of 30 basis-points to 10.7% •
Slide 4: Our Strategy is Delivering Strong Results
Our Strategy is Delivering Strong Results Customer Offerings Cash & Valuables Management Digital Retail Solutions ATM Managed Services • Strong organic growth of 9% • Recent customer wins, including • Strong results from BPCE • Improvements in productivity multinational grocery customer point-of-sal
Slide 5: First-Quarter 2023 Results
First-Quarter 2023 Results Fourth Consecutive Quarter of Double-digit Organic Revenue and Op Profit Growth (non-GAAP, $ millions, except EPS) Revenue +10% Op Profit +14% Adj. EBITDA +15% EPS (3%) Constant Currency +16% Constant Currency +24% Constant Currency +23% Constant Currency +12% Organic +13%
Slide 6: First-Quarter Revenue and Operating Profit vs 2022
First-Quarter Revenue and Operating Profit vs 2022 Strong Organic Growth Offsets FX Impact (non-GAAP, $ millions) Revenue Operating Profit % Change 13% 3% 16% (6%) 10% % Change 22% 3% 24% (11%) 14% Organic +$135 $24 $3 $139 ( $12 ) $50 $36 $1,245 ( $60 ) $1,185 $127 $86 $1,074 $112 +31% +9% 10.4% 11
Slide 7: First-Quarter Adjusted EBITDA and EPS vs 2022
First-Quarter Adjusted EBITDA and EPS vs 2022 (non-GAAP, $ millions, except EPS) Adjusted EBITDA +15%, EPS (3%) Diluted Shares 2023 EPS: $1.16 47.4 million 2022 EPS: $1.19 48.3 million +15% $12 $191 $26 $46 $127 ( $46 ) 10.7% $51 16.1% Margin Margin ( $26 ) $0 $55 Op Profit Interest Taxes Other Inco
Slide 8: Meaningful 1Q Progress Toward Free Cash Flow Target
Meaningful 1Q Progress Toward Free Cash Flow Target (Non-GAAP, $ millions) Full-Year 2023 Target • 1Q free cash flow up $23 (+38%) year-over-year, $865 - $915 ( $55 ) driven by EBITDA and working capital ( $130 ) improvements D&A / ~ $240 ( $175 ) Other • Full-year target adjusted to reflect further
Slide 9: 2023 Guidance
2023 Guidance (non-GAAP, $ millions, except EPS) 2022 2023 Guidance Growth Actual Prior Current vs. 2022 Revenue $4,536 $4,800 – 4,950 No change ~7% • Affirmed 6-9% revenue growth o 7-11% organic growth Operating Profit $550 $615 – 665 $625 – 675 ~18% Margin 12.1% ~13.1% ~13.3% • Increased profit gu
Slide 10: Closing and Q&A
Closing and Q&A GROWING BRINK’S BY PROVIDING A SUPERIOR CUSTOMER EXPERIENCE AND DRIVING CONTINUOUS IMPROVEMENT Oe GROWTH & OPERATIONAL CUSTOMER LOYALTY INNOVATION EXCELLENCE TALENT Put customers Find new ways to Run the business Position our first create value better team to win IMBRINKS 20
Slide 11: Appendix
Appendix
Slide 12: First-Quarter 2023 Results by Segment
First-Quarter 2023 Results by Segment ($ millions) North America Latin America Europe Rest of World Revenue +9% Op Profit +58% Revenue +8% Op Profit +6% Revenue +21% Op Profit 49% Revenue +4% Op Profit +13% Constant currency +10% +58% Constant currency +20% +25% Constant currency +27% +55% Constant
Slide 13: Capital Allocation Priorities
Capital Allocation Priorities Organic • Target Cash Capex of less than 4% of revenue in 2023 Investments 2 2x - 3x Net • Achieve leverage target with Adjusted EBITDA growth3 Debt Target $325 - $375 in 2023 Free Cash Flow • Take advantage of valuation Share Repurchase opportunities Return of 40% conv
Slide 14: Net Debt and Leverage
Net Debt and Leverage Expect Leverage of 2.6x – 2.8x by Year-End 20235 (Non-GAAP, $ millions) Net Debt Adjusted EBITDA and Financial Leverage 2 $2,638 Leverage Ratio 3.2 3.2 $2,516 Adjusted Leverage Ratio 3 3.1 3.2 4 Secured Leverage Ratio 2.1 2.1 $815 3 $831 3 $1,645 $813 Secured $1,524 Adjusted EB
Slide 15: 2021 Non-GAAP Results Reconciled to GAAP (1 of 3)
2021 Non-GAAP Results Reconciled to GAAP (1 of 3) The Brink’s Company and subsidiaries Non-GAAP Reconciliations (In millions) 2021 Q1 Revenues: GAAP $ 977.7 Non-GAAP $ 977.7 Operating profit (loss): GAAP $ 61.7 (a) Reorganization and Restructuring 6.6 Acquisitions and dispositions (a) 18.7 (a) Argen
Slide 16: 2021 Non-GAAP Results Reconciled to GAAP (2 of 3)
2021 Non-GAAP Results Reconciled to GAAP (2 of 3) The Brink’s Company and subsidiaries Non-GAAP Reconciliations (In millions, except for per share amounts) 2021 Q1 Incom e (loss) from continuing operations attributable to Brink's: GAAP $ 12.7 Retirement plans (c) 4.5 Reorganization and Restructuring
Slide 17: 2021 Non-GAAP Results Reconciled to GAAP (3 of 3)
2021 Non-GAAP Results Reconciled to GAAP (3 of 3) The Brink’s Company and subsidiaries Non-GAAP Reconciliations (In millions) 2021 Q1 Adjusted EBITDA(d): Net income attributable to Brink's - GAAP $ 12.7 Interest expense - GAAP 27.2 Income tax provision - GAAP 13.6 Depreciation and amortization - GAA
Slide 18: 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 19: 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, March 31, (In millions) 2022 2023 Debt: Short-term borrowings $ 47.2 $ 94.1 Long-term debt 3,355.6 3,276.8 Total Debt 3,402.8 3,370.9 Less: Cash and cash