Brinks Company (the) · NYSE:BCO
Brinks Company (the) — Q1 2022 Earnings Presentation
29 slides from Brinks Company (the)'s earnings presentation, May 10, 2022
Slide 1: First-Quarter Earnings
First-Quarter Earnings May 10, 2022
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) Record-setting first-quarter results • Revenue up 10%, driven by 9% organic growth • Revenue recovery at 95% of pre-Covid levels1…accelerated throughout the quarter with March recovery at 97%2 • Operating profit up 24%, margin 10.4%; up 120 bps • Adjusted EBITDA up 21%, margi
Slide 4: In-person Retail Sales Now Exceed Pre-pandemic Levels
In-person Retail Sales Now Exceed Pre-pandemic Levels E-commerce Sales Have Moderated Close to Pre-pandemic Levels as a % of Total Retail In-person retail sales +20% U.S. Total Retail Sales1 vs 4Q19 $2.0 $1.5T $1.8 45% • 4Q21 ecommerce dropped to 12.9% of total $1.2T $1.6 retail sales…close to pre-p
Slide 5: U.S. Cash Usage Remains Strong, Supporting Our Strategy for Continued Growth
U.S. Cash Usage Remains Strong, Supporting Our Strategy for Continued Growth In-person sales Only ~20% of retail Cash as a % of locations currently use • Share returning to pre-pandemic levels in-person payments a cash management remains strong solution…large • $ up 20% untapped market 4Q21: $1.5T 9
Slide 6: First-Quarter 2022 Results
First-Quarter 2022 Results (non-GAAP, $ millions, except EPS) Revenue +10% Op Profit +24% Adj. EBITDA +21% EPS +46% Constant Currency +13% Constant Currency +29% Constant Currency +24% Constant Currency +52% Organic +9% Organic +21% +55% Acq +4% Acq +8% excluding $.05 / share FX (3%) FX (4%) MGI gai
Slide 7: Revenue Recovery Continues – Q1 Local Currency Revenue Exceeds Pre-Covid Levels
Revenue Recovery Continues – Q1 Local Currency Revenue Exceeds Pre-Covid Levels Quarterly Revenue % vs Pro-forma 2019 Levels1 North America Latin America2 Europe Rest of World Total2 Local Currency 93% 97% 96% 99% 101% 96% 96% 99% 98% 102% 86% 88% 92% 95% 95% 95% 93% 93% 99% 101% 93% 94% 95% 98% 100
Slide 8: 2022 Revenue: Full Recovery to Pre-Covid Levels Expected
2022 Revenue: Full Recovery to Pre-Covid Levels Expected Pro-forma 2019 Revenue includes ~$900M for acquired businesses 2022 Revenue % vs Pro-forma 2019 Levels (USD)1 100%+ 97% 96% 95% 92% 2021 2021 2021 2021 89% 92% 93% 95% January February March 1Q 2Q 3Q 4Q FY Actual Forecast Forecast Forecast For
Slide 9: 2022 Global Macroeconomic Environment
2022 Global Macroeconomic Environment • Global inflation and supply chain − Minimal impact from global supply chain disruptions − Higher fuel costs offset by surcharges − Price increases continue to offset wage inflation pressures − No significant business impact from current conflict between Ukrain
Slide 10: First-Quarter 2022 Results by Segment
First-Quarter 2022 Results by Segment ($ millions) North America Latin America Europe Rest of the World Revenue +16% Op Profit (24%) Revenue +8% Op Profit +7% Revenue +4% Op Profit +40% Revenue +9% Op Profit +9% Constant currency +16% (24%) Constant currency +12% +15% Constant currency +11% +50% Con
Slide 11: First-Quarter Revenue and Operating Profit vs 2021
First-Quarter Revenue and Operating Profit vs 2021 (non-GAAP, $ millions) Revenue Operating Profit % Change 9% 4% 13% (3%) 10% % Change 21% 8% 29% (4%) 24% Constant Constant Currency Currency $7 $116 ( $4 ) $42 $1,107 ( $33 ) $19 $112 $87 $1,074 $978 $90 9.2% 10.5% 10.4% Margin Margin Margin 2021 Or
Slide 12: First-Quarter Adjusted EBITDA and EPS vs 2021
First-Quarter Adjusted EBITDA and EPS vs 2021 (non-GAAP, $ millions, except EPS) Diluted Shares2 2022 EPS: $1.15 +46% vs PY, +55% ex MGI1 48.3 million 2021 EPS: $0.79 50.5 million +21% $7 ( $0 ) $165 $55 Tax Rate $112 ( $28 ) 33.6% in 2021 and 32.2% in 2022 $48 15.4% ( $28 ) Margin ( $1 ) $56 10.4%
Slide 13: Strong Free Cash Flow Expected in 2022
Strong Free Cash Flow Expected in 2022 (Non-GAAP, $ millions) Adjusted Adjusted EBITDA EBITDA $755 - $790 ( $70 ) ( $110 ) Working Capital and Cash Restructuring: Lower D&A / restructuring expected in 2022 post-Covid-19 and Other $210 G4S acquisition ( $115 ) $10 Deferred Payments to be made: primar
Slide 14: Net Debt and Leverage
Net Debt and Leverage (Non-GAAP, $ millions) Net Debt Adjusted EBITDA and Financial Leverage Net Debt 3.4 3.4 ~2.7 – 2.9 Leverage Ratio1 $2,396 $2,291 $2,130 - Secured Leverage Ratio3 2.0 2.0 ~1.6 – 1.7 $2,165 $755 - $790 $711 $683 $1,301 $1,406 Adjusted Secured EBITDA Net Debt Unsecured Senior $990
Slide 15: Sustainability Update
Sustainability Update Increasing and improving our global focus on, investment in and disclosure of environmental, social, and governance (“ESG”) principles Brink’s is: • The world’s largest cash management company, and a global leader in facilitating economic inclusion • A signatory to the UN Globa
Slide 16: Our Strategic Plan – A New Layer of Growth Upon a Strong Foundation
Our Strategic Plan – A New Layer of Growth Upon a Strong Foundation 2022 2023 2024 Digital solutions and ATM managed services • Expect to be 5%+ of total revenue in 2022, targeting $500M+ incremental revenue in 2024 • Brink’s Complete retail solutions: • Brink’s BLUbeemTM digital cash payment soluti
Slide 17: 2022 Guidance Affirmed…On Track to Achieve 2024 Targets
2022 Guidance Affirmed…On Track to Achieve 2024 Targets (non-GAAP, $ millions, except EPS and where noted) 2024 Target vs 2021: Revenue + ~$1.2B Low Mid High vs 2021 CAGR 8 – 9% OP Margin + ~330 bps Revenue $4,520 $4,595 $4,670 +8 - 11% CAGR 19% Op Profit $545 $563 $580 +16 - 23% $5,300 – 5,500 Marg
Slide 18: Appendix
Appendix
Slide 19: Brink's Sustainability Principles
Brink’s Sustainability Principles We are embedding sustainability deeper into our strategy and execution. Strong financial performance alone is not sufficient; we are also improving the impact we have on the environment, society and governance of our business. E NV IRONMENT S O CIAL G O VERNANCE Red
Slide 20: Sustainability Spotlight: France
Sustainability Spotlight: France Brink’s France is promoting economic inclusion and protecting freedom of choice for payment methods We are preserving access to cash in rural areas with Point Cash ATMs • Offering affordable ATM solutions for small communities • 2021 program provided 50 rural village
Slide 21: Currency in Circulation Continues to Grow
Currency in Circulation Continues to Grow (USD, Billions) USD – Currency in Circulation1 2,300 2,200 First quarter 2022 2,100 7% YoY % Increase 2,000 1,900 1,800 1991-2021 1,700 7% 1,600 30-yr CAGR 2019 2020 2021 2022 (Euro, Billions) Euro – Currency in Circulation2 1,600 First quarter 2022 1,500 8%
Slide 22: Strong Financial Health – Ample Liquidity
Strong Financial Health – Ample Liquidity ($ millions, except where noted) Cash and Debt Capacity Increased liquidity in 2020 Cash • Incremental $590 million Term Loan A closed on $676 $698 $602 ~$1.1 B April 1, 2020 ~$1.2 B Liquidity ~$1.6 B Liquidity • Incremental $400 million Senior Notes closed
Slide 23: Debt Maturity Profile
Debt Maturity Profile ($ millions) $1,000 Revolver Term Loan A Term Amortization Loan A Senior Notes $1,089 Senior Notes $600 $70 $70 $400 2022 2023 2024 2025 2026 2027 Maturity Schedule for Credit Facility and Senior Notes 23
Slide 24: Estimated Cash Payments for Legacy Liabilities
Estimated Cash Payments for Legacy Liabilities ($ millions) Payments to Primary U.S. Pension Payments to UMWA $231 No cash payments are expected in foreseeable future $22 $22 $21 Term $0 Loan A 2021 2022 2023 2024 2025 2026 2021 2032 2033 2034 After 2034 Primary US Pension • Based on actuarial assum
Slide 25: 2020 Non-GAAP Results Reconciled to GAAP (1 of 3)
2020 Non-GAAP Results Reconciled to GAAP (1 of 3) The Brink’s Company and subsidiaries Non-GAAP Reconciliations (In millions) 2020 Q1 Revenues: GAAP $ 872.8 Non-GAAP $ 872.8 Operating profit (loss): GAAP $ 26.2 Reorganization and Restructuring(a) 5.6 Acquisitions and dispositions(a) 19.1 Argentina h
Slide 26: 2020 Non-GAAP Results Reconciled to GAAP (2 of 3)
2020 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) 2020 Q1 Income (loss) from continuing operations attributable to Brink's: GAAP $ 1.8 (c) Retirement plans 5.9 (a) Reorganization and Restructuri
Slide 27: 2020 Non-GAAP Results Reconciled to GAAP (3 of 3)
2020 Non-GAAP Results Reconciled to GAAP (3 of 3) The Brink’s Company and subsidiaries Non-GAAP Reconciliations (In millions) 2020 Q1 Adjusted EBITDA(d): Net income attributable to Brink's - GAAP $ 1.8 Interest expense - GAAP 20.0 Income tax provision - GAAP (12.2) Depreciation and amortization - GA
Slide 28: 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 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) December 31, March 31, (In millions) 2021 2022 Debt: Short-term borrow ings $ 9.8 $ 13.1 Long-term debt 2,956.9 3,081.3 Total Debt 2,966.7 3,094.4 Less: Cash and cash