Brinks Company (the) · NYSE:BCO
Brinks Company (the) — Q4 2022 Earnings Presentation
32 slides from Brinks Company (the)'s earnings presentation, Feb 22, 2023
Slide 1: Fourth-Quarter and Full-Year 2022 Earnings
Fourth-Quarter and Full-Year 2022 Earnings February 22, 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 (non-GAAP) Delivered full-year 2022 results in line with guidance • Revenue, operating profit, adjusted EBITDA and EPS all within original 2022 guidance range despite currency headwinds • Revenue +8% (+12% organic), highest organic growth rate in over a decade1 • Operating profit +17% (
Slide 4: Full-Year 2022 Results
Full-Year 2022 Results (non-GAAP, $ millions, except EPS) Revenue +8% Op Profit +17% Adj. EBITDA +15% EPS +26% Constant Currency +14% Constant Currency +26% Constant Currency +23% Constant Currency +40% Organic +12% Organic +23% +33% Acq +2% Acq +3% excluding $0.24 / share FX (6%) FX (10%) MGI gain
Slide 5: Strong 2022 Performance Establishes a Foundation for 2023
Strong 2022 Performance Establishes a Foundation for 2023 (non-GAAP) Organic Revenue Growth 1 Operating Profit Margin ~13.1% Recession Pandemic 12.1% 11.2% 12% 10.1% 10.6% 10.3% ~9% 8.8% 7.4% 7% 7% 7% 5.6% 6% 6% 6% 6% 5% 5% 4.0% 4% 4% 3% 2 -0.5% 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 -7%
Slide 6: Brink's Financial Model
Brink’s Financial Model 2023 Focus Areas Cash & Valuables Management Digital Retail Solutions ATM Managed Services • Improve customer satisfaction • Drive further expansion globally • Logical partner of choice in bank • Leverage strong brand and market infrastructure outsourcing trends • Offer enhan
Slide 7: Fourth-Quarter 2022 Results
Fourth-Quarter 2022 Results Continued Double-digit Organic Growth and Margin Expansion, Offsetting FX Impact (non-GAAP, $ millions, except EPS) Revenue +8% Op Profit +22% Adj. EBITDA +18% EPS +25% Constant Currency +16% Constant Currency +34% Constant Currency +28% Constant Currency +42% Organic +12
Slide 8: Fourth-Quarter Revenue and Operating Profit vs 2021
Fourth-Quarter Revenue and Operating Profit vs 2021 Strong Organic Growth Offsets FX Impact (non-GAAP, $ millions) Revenue Operating Profit % Change 12% 4% 16% (7%) 8% % Change 30% 4% 34% (12%) 22% Constant Constant Currency Currency $44 $1,271 ( $80 ) $7 $206 ( $19 ) $129 $46 $1,191 $187 $1,098 $15
Slide 9: Fourth-Quarter Adjusted EBITDA and EPS vs 2021
Fourth-Quarter Adjusted EBITDA and EPS vs 2021 (non-GAAP, $ millions, except EPS) Adjusted EBITDA +18%, EPS +25% Diluted Shares1 2022 EPS: $2.10 +25% vs PY 47.5 million 2021 EPS: $1.68 49.1 million +18% $12 ( $2 ) $247 $88 $187 ( $44 ) 15.7% ( $45 ) $50 20.8% Margin Margin $0 $100 Tax Rate 33.6% in
Slide 10: Free Cash Flow
Free Cash Flow ~40% Conversion from Adjusted EBITDA Expected in 2023 (Non-GAAP, $ millions) Adjusted EBITDA $788 ( $164 ) D&A / Other $238 ( $128 ) ( $116 ) ( $177 ) Op Profit $550 $203 Adj. EBITDA WC, Cash Restructuring Cash Cash Cash Free Cash Flow & Deferred Payments Taxes Interest CapEx 1 before
Slide 11: 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 12: 2023 Guidance | Strong 2022 Performance Establishes a Foundation for Growth
2023 Guidance | Strong 2022 Performance Establishes a Foundation for Growth (non-GAAP, $ millions, except EPS) 2022 2023 Actual Guidance Growth 2024 Framework Organic Revenue Mid to High Single Revenue $4,536 $4,800 - 4,950 ~7% Growth Digits Operating Profit $550 $615 – 665 ~16% Operating Profit Mar
Slide 13: Closing and Q&A
Closing and Q&A GROWING BRINK’S BY PROVIDING A SUPERIOR CUSTOMER EXPERIENCE AND DRIVING CONTINUOUS IMPROVEMENT Oe GROWTH & OPERATIONAL CUSTOMER LOYALTY INNOVATION EXCELLENCE TALENT Put customers Find new ways to Run the business Position our first create value better team to win IMBRINKS 23
Slide 14: Appendix
Appendix
Slide 15: Sustainability Spotlight: Hong Kong
Sustainability Spotlight: Hong Kong Brink’s Hong Kong recently won two sustainability awards from the Hong Kong Quality Assurance Agency Brink’s Hong Kong was named A Pioneering Organization in ESG Disclosure Enhancement The awards recognized enhanced ESG disclosures including the Brink’s focus on:
Slide 16: Fourth-Quarter 2022 Results by Segment
Fourth-Quarter 2022 Results by Segment ($ millions) North America Latin America Europe Rest of World Revenue +11% Op Profit +25% Revenue +6% Op Profit +9% Revenue +12% Op Profit 9% Revenue +3% Op Profit +15% Constant currency +12% +25% Constant currency +16% +24% Constant currency +26% +22% Constant
Slide 17: Full-Year 2022 Results by Segment
Full-Year 2022 Results by Segment ($ millions) North America Latin America Europe Rest of World Revenue +13% Op Profit +7% Revenue +8% Op Profit +8% Revenue +2% Op Profit +10% Revenue +8% Op Profit +25% Constant currency +13% +7% Constant currency +15% +20% Constant currency +14% +23% Constant curre
Slide 18: Full-Year Revenue and Operating Profit vs 2021
Full-Year Revenue and Operating Profit vs 2021 (non-GAAP, $ millions) Revenue Operating Profit % Change 12% 2% 14% (6%) 8% % Change 23% 3% 26% (10%) 17% Constant Constant Currency Currency $110 $15 $595 ( $45 ) $494 $94 $4,788 ( $252 ) $550 $4,536 $4,200 $471 11.2% 12.4% 12.1% Margin Margin Margin 2
Slide 19: Full-Year Adjusted EBITDA and EPS vs 2021
Full-Year Adjusted EBITDA and EPS vs 2021 (non-GAAP, $ millions, except EPS) Adjusted EBITDA +15%, EPS +26% Diluted Shares2 2022 EPS: $5.99 +26% vs PY, +33% ex MGI1 47.8 million 2021 EPS: $4.75 50.1 million +15% $49 ( $4 ) $788 $268 $550 ( $138 ) $190 12.1% ( $130 ) 17.4% Margin Margin $4 $286 Tax R
Slide 20: Net Debt and Leverage
Net Debt and Leverage Expect Leverage of ~2.6x by Year-End 20235 (Non-GAAP, $ millions) Net Debt Adjusted EBITDA and Financial Leverage 2 Leverage Ratio 3.4 3.2 $2,516 3 $2,291 Adjusted Leverage Ratio 3.1 4 Secured Leverage Ratio 2.0 2.1 $815 3 $1,524 Secured $1,301 $788 Net Debt $683 Adjusted EBITD
Slide 21: Strong Financial Health – Ample Liquidity
Strong Financial Health – Ample Liquidity ($ millions, except where noted) Cash and Debt Capacity Credit Facility Amend and Extend Closed June 2022 • Term Loan A expanded from $1.2 billion to $1.4 billion $887 ~$1.2 B • Maturity extended from February 2024 to June 2027 Liquidity Cash $602 $676 • Imp
Slide 22: Debt Maturity Profile
Debt Maturity Profile ($ millions) Revolver $1,000 Term Loan A $1,155 Term Loan A Term Loan A Amortization Amortization $70 Term Loan A Senior Senior Amortization Notes $400 Notes $70 $600 $35 $53 2023 2024 2025 2026 2027 Maturity Schedule for Credit Facility and Senior Notes 22
Slide 23: Estimated Cash Payments for Legacy Liabilities
Estimated Cash Payments for Legacy Liabilities ($ millions) Payments to Primary U.S. Pension Payments to UMWA No Additional Contributions No Cash Payments Expected Until 2026 Needed Until 2033 $167 $37 $- $12 $12 $10 $- $8 $16 $16 2022 2026 2027 2028 2029-2034 2022 2033 2034 2035 After 2035 Primary
Slide 24: 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 Q4 Full Year Revenues: GAAP $ 1,021.6 3,690.9 Non-GAAP $ 1,021.6 3,690.9 Operating profit (loss): GAAP $ 111.9 213.5 (a) Reorganization and Restructuring 16.9 66.6 (a) A
Slide 25: 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 Q4 Full Year Incom e (loss) from continuing operations attributable to Brink's: GAAP $ 25.1 16.8 Retirement plans (c) 7.2 25.9 Reorganizati
Slide 26: 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 Q4 Full Year Adjusted EBITDA(d): Net income attributable to Brink's - GAAP $ 25.2 16.0 Interest expense - GAAP 26.2 96.5 Income tax provision - GAAP 53.1 56.6 Depreciati
Slide 27: 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 28: 2014-2019 Non-GAAP Results Reconciled to GAAP
2014-2019 Non-GAAP Results Reconciled to GAAP The Brink’s Company and subsidiaries Non-GAAP Reconciliations (In millions) 2014 2015 2016 2017 2018 2019 Full Year Full Year Full Year Full Year Full Year Full Year Revenues: GAAP $ 3,562.3 3,061.4 3,020.6 3,347.0 3,488.9 3,683.2 Venezuela operations (a
Slide 29: 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 30: Non-GAAP Reconciliation – Other
Non-GAAP Reconciliation – Other The Brink’s Company and subsidiaries Other Items Not Allocated to Segments (Unaudited) (In millions) 2017 Acquisitions and Dispositions • Amortization expense for acquisition-related intangible assets was $8.4 million in 2017. • A net gain of $7.8 million was recogniz
Slide 31: 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, December 31, (In millions) 2021 2022 Debt: Short-term borrowings $ 9.8 $ 20.4 Long-term debt 2,956.9 3,382.4 Total Debt 2,966.7 3,402.8 Less: Cash and ca
Slide 32: Description of 2023 Focus Areas
Description of 2023 Focus Areas The Brink’s Company and subsidiaries Cash and Valuables Management Cash and valuables management services include cash-in-transit services, basic ATM services, Brink’s Global Services (“BGS”), cash management services and vaulting services. Digital Retail Solutions (“