Brinks Company (the) · NYSE:BCO
Brinks Company (the) — Q3 2021 Earnings Presentation
25 slides from Brinks Company (the)'s earnings presentation, Oct 27, 2021
Slide 1: Third-Quarter Earnings
Third-Quarter Earnings October 27, 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) Double-digit growth in 3Q revenue, operating profit, adjusted EBITDA and EPS • Operating profit margin up 50 basis points to 10.8% ` 2021 guidance affirmed • Revenue ~$4.1B - $4.2B • Operating margin up 90 bps to ~11.2% • Adjusted EBITDA $660M, margin up 60 bps to ~15.9% Cont
Slide 4: Third-Quarter 2021 Results
Third-Quarter 2021 Results (non-GAAP, $ millions, except EPS) Revenue +11% Op Profit +16% Adj. EBITDA +15% EPS +28% Organic +6% Organic +2% +22% excluding Acq +5% Acq +7% MGI impact1 FX -% FX +7% $1,076 $170 $116 $971 $925 $102 $100 $146 $148 $1.14 $1.05 $0.89 11.1% 10.3% 10.8% 15.8% 15.2% 15.8% Mar
Slide 5: Third-Quarter Results by Segment
Third-Quarter Results by Segment ($ millions) North America Latin America Europe Rest of the World Revenue +14% Op Profit +4% Revenue +13% Op Profit +26% Revenue +6% Op Profit +49% Revenue +8% Op Profit (12%) Constant currency +13% +3% Constant currency +14% +33% Constant currency +6% +48% Constant
Slide 6: 2021 Quarterly Revenue % vs Pre-Covid Levels
2021 Quarterly Revenue % vs Pre-Covid Levels1 North America Latin America Europe Rest of World 2021 Total Local Currency 93% 97% 96% ~102% 109% 106% 108% ~110% 86% 88% 92% ~94% 95% 93% 93% ~94% 97% 97% 98% ~100% USD 93% 97% 96% ~102% 81% 82% 85% ~86% 90% 93% 96% ~98% 97% 97% 95% ~96% 89% 92% 93% ~95
Slide 7: Third-Quarter Revenue and Operating Profit vs 2020
Third-Quarter Revenue and Operating Profit vs 2020 (non-GAAP, $ millions) Revenue Operating Profit % Change 6% 5% 10% -% 11% % Change 2% 7% 9% 7% 16% Constant Constant Currency Currency $46 $1,071 $5 $1,076 $54 $971 $7 $116 $7 $109 $100 $2 10.3% 10.2% 10.8% Margin Margin Margin 2020 Organic Acq / Di
Slide 8: Third-Quarter Adjusted EBITDA and EPS vs 2020
Third-Quarter Adjusted EBITDA and EPS vs 2020 (non-GAAP, $ millions, except EPS) +15% Q3 2021 EPS: $1.14 +28% vs PY vs PY Q3 2020 EPS: $0.89 Q3 2021 EPS includes MGI impact of +$0.05 vs Q3 2020 $9 ( $2 ) $170 $58 $116 ( $27 ) $48 ( $31 ) ( $1 ) $57 Op Profit Interest Taxes Other Income from D&A Inte
Slide 9: Strong Free Cash Flow Expected in 2021
Strong Free Cash Flow Expected in 2021 (Non-GAAP, $ millions) Adjusted Growth of ~37% EBITDA 2 ~$660 ( $95 ) excluding Adjusted EBITDA deferred Working Capital and Cash Restructuring: Lower D&A / ( $95 ) payments Other $195 restructuring expected in 2021 post-Covid-19 and G4S acquisition ( $105 ) $3
Slide 10: Net Debt and Leverage
Net Debt and Leverage (Non-GAAP, $ millions) Net Debt Adjusted EBITDA and Financial Leverage Net Debt ~3.3 excl. ASR6 Leverage 3.3 3.3 ~2.5 – 2.7 ~ $2,325 ~3.5 with ASR6 Ratio1 $150 $2,174 ASR6 $2,035 - Secured Leverage Ratio3 ~$2,175 $2,095 (Max = 4.0x) ~1.8 $785 - $825 $1,884 $667 $655 - $665 $1,1
Slide 11: Brink's Social Impact
Brink’s Social Impact Facilitating Economic Inclusion for Vulnerable Groups • In the U.S. ~28% of in-person transactions are in cash and ~18% of the population is unbanked, or underbanked, and must rely on cash1 • This population is disproportionally from economically vulnerable groups: people of co
Slide 12: Strategic Plan 2: A Strong and Growing Base with a New Digital Layer
Strategic Plan 2: A Strong and Growing Base with a New Digital Layer 2020 2021 2022 2023 2024 2.0 - Introduce • Digital Cash Management • Integrated Payment Solutions Digital Solutions • End-to-end ATM Managed Services 1.5 - Acquisitions • $2.2B invested in 17 acquisitions, including G4S and PAI to
Slide 13: Continued Strong Profit Growth Expected
Continued Strong Profit Growth Expected (non-GAAP, $ millions) Digital Solutions Expected to Add New Layer of Growth Revenue, Adjusted EBITDA & Operating Profit Revenue as % of 20191 $4,100 - ~100% $4,200 97% Local ~100%+ $3,680 $3,691 Currency Revenue ~95% ~15.9% 15.4% 15.3% Reported Adj. EBITDA 89
Slide 14: Appendix
Appendix
Slide 15: 2021 Guidance
2021 Guidance (non-GAAP, $ millions, except EPS) Strong Revenue and Margin Growth Expected in 2021 Revenue1 +12% Op Profit1 +22% Adj. EBITDA1 +17% EPS1 +21% $4,100 - $4,200 $655- $665 $4.50- $3,691 $460 - $3,680 $4.60 $470 $567 $566 $3.89 $3.76 $392 $381 15.4% 15.3% ~15.9% 10.6% 10.3% ~11.2% Margin
Slide 16: Strong Financial Health – Ample Liquidity
Strong Financial Health – Ample Liquidity ($ millions, except where noted) Cash and Debt Capacity Increased liquidity in 2020 Cash $602 $672 • Incremental $590 million Term Loan A closed on ~$1.3 B April 1, 2020 ~$1.6 B Liquidity ~$1.1 B Liquidity Liquidity • Incremental $400 million Senior Notes cl
Slide 17: Cash Levels Stronger Post-Covid-19
Cash Levels Stronger Post-Covid-19 (USD, Billions) USD – Currency in Circulation1 Brink’s Cash Levels 2,200 Third Quarter 2021 Third quarter 2021 2,100 9% Brink’s U.S. Cash Processed YoY % Increase 2,000 1,900 1,800 1,700 1990-2020 6% +3% +13% 30-yr CAGR vs 3Q20 vs 3Q19 1,600 2019 2020 2021 Value of
Slide 18: Cash is Inclusive and Does Not Discriminate
Cash is Inclusive and Does Not Discriminate Cash is a vital lifeline to millions of Americans who rely on it to Restricting cash will exclude a Learn more at purchase goods and services. In 2020, ~18% of U.S. adults were significant portion of the population, Investors.brinks. either unbanked or und
Slide 19: Debt Maturity Profile
Debt Maturity Profile ($ millions) $1,000 Revolver Term Loan A Term Amortization Loan A Senior Notes $1,089 Senior Notes $600 $70 $70 $70 $400 2021 2022 2023 2024 2025 2026 2027 Maturity Schedule for Credit Facility and Senior Notes 19
Slide 20: Estimated Cash Payments for Legacy Liabilities
Estimated Cash Payments for Legacy Liabilities ($ 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 21: 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 (In millions) 2019 Q3 Full Year Revenues: GAAP $ 928.4 3,683.2 Acquisitions and dispositions(a) 0.2 0.5 Internal loss(a) (4.0) (4.0) Non-GAAP $ 924.6 3,679.7 Operating profit (loss): GAAP
Slide 22: 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 (In millions, except for per share amounts) 2019 Q3 Full Year Income (loss) from continuing operations attributable to Brink's: GAAP $ 5.8 28.3 Retirement plans(c) 5.0 36.2 Venezuela opera
Slide 23: 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 Q3 Full Year Adjusted EBITDA(f): Net income (loss) attributable to Brink's - GAAP $ 5.4 29.0 Interest expense - GAAP 22.9 90.6 Income tax provision - GAAP 14.7 61.0 Depr
Slide 24: 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 25: 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, September 30, (In millions) 2020 2021 Debt: Short-term borrowings $ 14.2 $ 8.1 Long-term debt 2,471.5 2,837.5 Total Debt 2,485.7 2,845.6 Less: Cash and c