Brinks Company (the) · NYSE:BCO
Brinks Company (the) — Q2 2022 Earnings Presentation
30 slides from Brinks Company (the)'s earnings presentation, Aug 3, 2022
Slide 1: Second-Quarter Earnings
Second-Quarter Earnings August 3, 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 2Q Results, Full-Year Guidance Affirmed 2Q summary…continued strong revenue growth and margin expansion • Revenue +8% (+13% organic) • Operating profit +12% (+17% organic), margin 10.9% • Adjusted EBITDA +13%, margin 16.4% • EPS up 12% (up 30% excluding MGI impact1) 20
Slide 4: Second-Quarter 2022 Results
Second-Quarter 2022 Results (non-GAAP, $ millions, except EPS) Continued Strong Revenue Growth and Margin Expansion…On Track for FY Guidance Revenue +8% Op Profit +12% Adj. EBITDA +13% EPS +12% Constant Currency +13% Constant Currency +18% Constant Currency +17% Constant Currency +20% Organic +13% O
Slide 5: Second-Quarter Revenue and Operating Profit vs 2021
Second-Quarter Revenue and Operating Profit vs 2021 (non-GAAP, $ millions) Revenue Operating Profit % Change 13% 0% 13% (5%) 8% % Change 17% 1% 18% (6%) 12% Constant Constant Currency Currency $135 $4 $1,188 ( $54 ) $1 $130 ( $6 ) $1,134 $19 $124 $1,049 $111 10.5% 11.0% 10.9% Margin Margin Margin 20
Slide 6: Second-Quarter Adjusted EBITDA and EPS vs 2021
Second-Quarter Adjusted EBITDA and EPS vs 2021 (non-GAAP, $ millions, except EPS) Diluted Shares2 2022 EPS: $1.29 +12% vs PY, +30% ex MGI1 47.8 million 2021 EPS: $1.15 50.5 million +13% $15 ( $1 ) $187 $63 $124 ( $32 ) $47 16.4% ( $31 ) Margin $1 $62 10.9% Margin Tax Rate 33.6% in 2021 and 32.5% in
Slide 7: 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 ) Deferred Payments to be made: $10 primar
Slide 8: 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 – 2.8 Leverage Ratio1 $2,456 $2,291 Secured Leverage Ratio3 2.0 2.1 ~1.5 – 1.6 $2,095 - $2,130 $755 - $790 $732 $683 $1,465 Adjusted Secured $1,301 EBITDA Net Debt Unsecured Senior $990
Slide 9: Debt Maturity Profile for Credit Facility and Senior Notes
Debt Maturity Profile for Credit Facility and Senior Notes ($ millions) Strengthened balance sheet…improved pricing, enhanced flexibility and extended maturity = Prior = Current Revolver $1,000 Revolver $1,000 Term Loan A $1,155 Term Loan A Term Term Loan A Amortization Loan A Amortization $1,089 $7
Slide 10: Brink's Provides Essential Services throughout Economic Cycles
Brink’s Provides Essential Services throughout Economic Cycles • Cash usage and security concerns historically increase during recessions • Pricing and cost actions expected to continue to offset inflationary pressures • Operational excellence initiatives driving productivity • No material impact ex
Slide 11: Strong Start with Record Results…2022 Guidance Affirmed
Strong Start with Record Results…2022 Guidance Affirmed (Non-GAAP, $ Millions except where noted) 2021 2022 2024 Actual Guidance 2022 Growth Target1 3-Yr CAGR Revenue $4.2B $4.52-4.67B 8-11% $5.3-5.5B 8-9% Operating Profit $471 $545-580 16-23% $795 19% Margin 11.2% ~12.3% 14.5% Adjusted EBITDA $683
Slide 12: Appendix
Appendix
Slide 13: Our Strategic Plan Adds a New Layer of Growth Upon a Strong Foundation
Our Strategic Plan Adds a New Layer of Growth Upon a Strong Foundation Targeting Annual Organic Revenue Growth of 7% + COVID Recovery, Annual Margin Growth of 100 bps Growth Driven Primarily by Core Operations 2022 2023 2024 Strategy 2.0 Annual targets: 3% organic revenue growth, 25 bps of margin gr
Slide 14: Revenue Recovery Continues – Q2 Local Currency Revenue Exceeds Pre-Covid Levels
Revenue Recovery Continues – Q2 Local Currency Revenue Exceeds Pre-Covid Levels Quarterly Revenue % vs Pro-forma 2019 Levels1 North America Latin America2 Europe Rest of World Total2 Local Currency 93% 97% 96% 99% 101% 108% 96% 96% 99% 98% 102% 104% 86% 88% 92% 95% 95% 97% 95% 93% 93% 99% 101% 104%
Slide 15: Second-Quarter 2022 Results by Segment
Second-Quarter 2022 Results by Segment ($ millions) North America Latin America Europe Rest of World Revenue +13% Op Profit (17%) Revenue +12% Op Profit +13% Revenue (2)% Op Profit +20% Revenue +6% Op Profit +24% Constant currency +13% (17%) Constant currency +16% +22% Constant currency +11% +35% Co
Slide 16: Six-Months 2022 Results
Six-Months 2022 Results (non-GAAP, $ millions, except EPS) Revenue +9% Op Profit +18% Adj. EBITDA +16% EPS +26% Constant Currency +13% Constant Currency +23% Constant Currency +20% Constant Currency +33% Organic +11% Organic +19% Acq 2% Acq +4% +41% FX (4%) FX (5%) excluding $.21 / share MGI gain in
Slide 17: Six-Months Revenue and Operating Profit vs 2021
Six-Months Revenue and Operating Profit vs 2021 (non-GAAP, $ millions) Revenue Operating Profit % Change 11% 2% 13% (4%) 9% % Change 19% 4% 23% (5%) 18% Constant Constant Currency Currency $222 $47 $2,295 ( $87 ) $2,208 $2,027 $8 $246 ( $10 ) $38 $236 $201 9.9% 10.7% 10.7% Margin Margin Margin 2021
Slide 18: Six-Months 2022 Results by Segment
Six-Months 2022 Results by Segment ($ millions) North America Latin America Europe Rest of World Revenue +14% Op Profit (20%) Revenue +10% Op Profit +10% Revenue +1% Op Profit +27% Revenue +7% Op Profit +17% Constant currency +15% (20%) Constant currency +15% +18% Constant currency +11% +41% Constan
Slide 19: Brink's Sustainability Update Released in July
Brink’s Sustainability Update Released in July URL: https://us.brinks.com/documents/20128/769081/BRINKS_SustainabilityUpdate_Final+July+2022.pdf/9d8d004c-0d3a-b237-859a-eb051f414d8c?t=1656684764316 19
Slide 20: Demonstrated Resiliency In Uncertain Environments
Demonstrated Resiliency In Uncertain Environments Cash management remains an essential service throughout economic cycles Cash as a % of Payments – U.S.1 Cash Usage Historically Increases in a Recession 45% Recession Pandemic 40% • Cash usage grew significantly in 2008-2009 with economic 35% uncerta
Slide 21: In-person Retail Sales Now Exceed Pre-pandemic Levels
In-person Retail Sales Now Exceed Pre-pandemic Levels E-commerce Sales Have Moderated as a % of Total Retail In-person retail sales +23% U.S. Total Retail Sales1 vs 4Q19 $2.0 55% $1.5T $1.8 • 1Q22 ecommerce dropped to 14.3% of total $1.2T 45% $1.6 retail sales1 Total Retail Sales (Trillions) $1.4 35
Slide 22: U.S. Cash Usage Remains Strong, Supporting Our Growth Strategy
U.S. Cash Usage Remains Strong, Supporting Our Growth Strategy Opportunity for Additional Growth from Large Unvended Retail Market Only ~20% of retail In-person sales have Cash as a % of locations currently use grown as a % of total sales over the last in-person payments a cash management remains st
Slide 23: Currency in Circulation Continues to Grow
Currency in Circulation Continues to Grow (USD, Billions) USD – Currency in Circulation1 2,300 2,200 Second quarter 2022 2,100 5% YoY % Increase 2,000 1,900 1,800 1991-2021 1,700 7% 1,600 30-yr CAGR 2019 2020 2021 2022 (Euro, Billions) Euro – Currency in Circulation2 1,600 Second quarter 2022 1,500
Slide 24: Strong Financial Health – Ample Liquidity
Strong Financial Health – Ample Liquidity ($ millions, except where noted) Cash and Debt Capacity Credit Facility Amend and Extend Closed June 2022 $703 Cash $602 $676 ~$1.2 B • Term Loan A expanded from $1.2 billion to $1.4 billion ~$1.2 B Liquidity ~$1.6 B Liquidity • Maturity extended from Februa
Slide 25: Estimated Cash Payments for Legacy Liabilities
Estimated Cash Payments for Legacy Liabilities ($ 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 26: 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 Q2 Six Months Revenues: GAAP $ 826.0 1,698.8 Non-GAAP $ 826.0 1,698.8 Operating profit (loss): GAAP $ (1.0) 25.2 (a) Reorganization and Restructuring 39.0 44.6 (a) Acqui
Slide 27: 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 Q2 Six Months Income (loss) from continuing operations attributable to Brink's: GAAP $ 13.7 15.5 Retirement plans(c) 6.2 12.1 (a) Reorganiz
Slide 28: 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 Q2 Six Months Adjusted EBITDA(d): Net income attributable to Brink's - GAAP $ 12.9 14.7 Interest expense - GAAP 23.2 43.2 Income tax provision - GAAP (43.2) (55.4) Depre
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 – Net Debt
Non-GAAP Reconciliation – Net Debt The Brink’s Company and subsidiaries Non-GAAP Reconciliations - Net Debt (Unaudited) (In millions) December 31, June 30, (In millions) 2021 2022 Debt: Short-term borrow ings $ 9.8 $ 14.0 Long-term debt 2,956.9 3,145.1 Total Debt 2,966.7 3,159.1 Less: Cash and cash