Brinks Company (the) · NYSE:BCO
Brinks Company (the) — Q1 2021 Earnings Presentation
28 slides from Brinks Company (the)'s earnings presentation, Apr 28, 2021
Slide 1: First-Quarter Results April 28, 2021
1 First-Quarter Results April 28, 2021 Exhibit 99.2
Slide 2: Forward-looking information
2 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-looking information. Forward-looking infor
Slide 3: Strong 1Q revenue and profit growth: Key Messages
3 Strong 1Q revenue and profit growth • Revenue up 12%...driven by G4S acquisition; organic recovery to 94% of 1Q20 • Operating profit up 43%, margin up 200 bps to 9.2% • Adjusted EBITDA up 32%, margin up 210 bps to 14.0% • EPS up 64%...$.82 vs $.50 • Acquisitions and sustainable cost reductions mor
Slide 4: 2021 Guidance Increased
4 $3.89 $3.76 2019 2020 2021 $392 $381 2019 2020 2021 2021 Guidance Increased 13.5% Margin 15.9% Margin 12.7% Margin 15.8% - 16.3% Margin 13.3% Margin ~14.5% Margin 11.8% Margin Guidance Guidance GuidanceGuidance Revenue1 +21% $3,680 $3,691 2019 2020 2021 ~15.7% Margin Adj. EBITDA1 +25% $567 $566 20
Slide 5: U.S. and Euro Cash at Record Levels
5 U.S. and Euro Cash at Record Levels5 1. U.S. currency in circulation through 3/31/21. Source: St. Louis Federal Reserve (FRED). Weekly (QoQ) / Monthly (Historical) Average Currency in Circulation (Billions of Dollars, Weekly, Not Seasonally Adjusted) 2. Represents year-over-year increase in value
Slide 6: In-Store Shopping, Where Cash is Preferred, Forecasted to Continue Dominating U.S. Retail
6 In-Store Shopping, Where Cash is Preferred, Forecasted to Continue Dominating U.S. Retail During 2020 pandemic period, 86% of retail sales were in person1 0% 5% 10% 15% 20% 25% 30% 35% 40% 45% 50% $- $1.0 $2.0 $3.0 $4.0 $5.0 $6.0 $7.0 2019 2020 2021 2022 2023 2024 2025 eC om m er ce G ro w th To t
Slide 7: First-Quarter 2021 Results
7 $905 $873 $978 $987 2019 2020 2021 Const. Curr. Revenue +12% Constant currency +13% Organic (6%) Acq +20% FX (1%) First-Quarter 2021 Results (Non-GAAP, $ Millions, except EPS) EPS +64% Constant currency +76% $0.81 $0.50 $0.82 $0.88 2019 2020 2021 Const. Curr. Adj. EBITDA +32% Constant currency +36
Slide 8: First-Quarter Revenue and Operating Profit vs 2020
8 First-Quarter Revenue and Operating Profit vs 2020 % Change (1%)(6%) 20% 12%13% Constant Currency Constant Currency 8.8% Margin 10.1% Margin % Change (8%)30% 20% 43%50% (Non-GAAP, $ Millions) Revenue Operating Profit $873 ( $56 ) $170 $987 ( $9 ) $978 2020 Revenue Organic Acq / Disp* 2021 Revenue
Slide 9: First-Quarter Adjusted EBITDA and EPS vs 2020
9 $90 ( $27 ) ( $20 ) ( $2 ) $41 $44 $47 $8 ( $3 ) $137 Op Profit Interest Expense Taxes Other Income from Continuing Ops D&A Interest Exp & Taxes Stock Comp Marketable Securities Adj. EBITDA First-Quarter Adjusted EBITDA and EPS vs 2020 Q1 2021 EPS: $0.82 +64% vs PY Q1 2020 EPS: $0.50 (Non-GAAP, $
Slide 10: Capital Expenditures
10 $130 $52 $138 $60 $101 $31 $150 $35 $25 $26 $18 $30$155 $165 $119 $180 Capital Expenditures ($ Millions) 2018 Actual 2019 Actual 2020 Actual 2021 Target Cash CapEx ex. Cash Devices Cash Devices Financing Leases Note: Amounts may not add due to rounding. Cash CapEx as % Revenue 4.5% 4.5% 3.2% ~4.0
Slide 11: 2021 Free Cash Flow Target
11 2021 Free Cash Flow Target (Non-GAAP, $ Millions) $466 – $556 $194 $660 – $750 ( $95 ) ( $95 ) ( $105 ) ( $180 ) $185 – $275 $220– $310 Adj. EBITDA WC, Cash Restructuring & Deferred Payments Cash Taxes Cash Interest Cash CapEx Free Cash Flow before Dividends Pro-forma Growth of ~65% Excluding Def
Slide 12: Strong Financial Health - Ample Liquidity
12 $206 $219 $219 $1,000 $1,000 $1,000 $1,298 $1,281 $1,281 $602 $561 12/31/2020 3/31/2021 12/31/2021 Pro-forma Senior Notes Term Loan A Revolver $1 B Fin. Leases & Other Cash and Debt Capacity ~$1.4 Billion of Liquidity Expected at Year-End Strong Financial Health - Ample Liquidity ($ Millions, exc
Slide 13: Net Debt and Leverage
13 Net Debt and Leverage $566 $599 $660 - $750 2020 Actual Q1 2021 TTM Actual 2021 Guidance Net Debt Adjusted EBITDA and Financial Leverage Net Debt Leverage Ratio1 3.3 (Non-GAAP, $ Millions) 3.4 1. Net Debt divided by Adjusted EBITDA. 2. Pro-forma Net Debt at year-end, considering our 2021 Free Cas
Slide 14: Strategy Update
14 Strategy Update
Slide 15: Strategic Plan 2: A New Layer of Growth on a Strong Foundation
15 Strategy 2.0 Digital Cash Management Strategy 1.5 Acquisitions Strategy 1.0 Wider Deeper + Leverage Core Organic Growth 2.1 – Digital Cash Management 2.2 – Enterprise Cash Automation 2.3 – ATM Managed Services 2.4 – Integrating Cash with Digital Payments Strategy 2.0 adds digital cash management
Slide 16: Brink's Complete – Digital Cash Management Solutions
16 Brink’s Complete – Digital Cash Management Solutions Making cash as convenient, simple and cost effective as other digital payments. + Retailers Enterprise Retailers Financial Institutions Retailers Retailers 2.1 2.2 2.3 2.4 Digital Cash Management Solutions Cash Process Automation Full Range of
Slide 17: Strategy 2.3 – Full Range of ATM Solutions
17 Retailers need managed service partners that offer complete ATM solutions Financial Institutions seek to rationalize branch networks, increase reliance on ATMs Strategy 2.3 – Full Range of ATM Solutions Brink’s now provides a full suite of managed ATM services Brink’s Benefits • Expands cash solu
Slide 18: PAI Acquisition – A 2.3 Platform for U.S. Customers
18 Technology Platform Extends Brink’s Service Offerings • PAI’s end-to-end SaaS services strengthen Strategy 2.0 value proposition • Strong management team with deep industry expertise PAI Acquisition – A 2.3 Platform for U.S. Customers 2021 Projected Financials Operations 100,000 ATMs 225 EMPLOYEE
Slide 19: Proven Performance…Bright Future: 2021 Guidance
19 $3,680 $3,691 $4,250 - $4,650 10.6% 10.3% 11.0% - 12.0% 15.4% 15.3% 15.5% - 16.1% $392 $381 $466- $556 $175 $185 ~194 2019 2020 2021 Guidance Proven Performance…Bright Future Adj. EBITDA Op Profit D&A/Other Op Profit Adj. EBITDA Revenue, Adjusted EBITDA & Operating Profit (Non-GAAP, $ Millions, e
Slide 20: Appendix
20 Appendix
Slide 21: First-Quarter Results by Segment
21 ($ Millions) First-Quarter Results by Segment Op Profit +141% +141% Revenue (7%) Constant currency (8%) $341 $317 2020 2021 $13 $32 2020 2021 North America1 +141% - - Organic (8%) Acq - FX +1% Op Profit (3%) +12% Revenue (10%) Constant currency: +2% $61 $59 2020 2021 Latin America $299 $270 2020
Slide 22: Debt Maturity Profile
22 Debt Maturity Profile $70 $70 $70 $1,089 $400 $600 $1,000 2021 2022 2023 2024 2025 2026 2027 Term Loan A Senior Notes Revolver Maturity Schedule for Credit Facility and Senior Notes Senior Notes ($ Millions)
Slide 23: Primary US Pension and UMWA
23 Primary US Pension • The American Rescue Plan Act ("ARPA") signed into law in March, 2021, provides funding relief for single-employer defined benefit pension plans. The ARPA provisions result in significant reduction in, and deferral of, minimum funding requirements. Because of the significant i
Slide 24: 2019 Non-GAAP Results Reconciled to GAAP (1 of 3)
24 2019 Q1 Full Year Revenues: GAAP $ 905.0 3,683.2 Acquisitions and dispositions(a) - 0.5 Internal loss(a) - (4.0) Non-GAAP $ 905.0 3,679.7 Operating profit (loss): GAAP $ 58.4 236.8 Reorganization and Restructuring(a) 3.5 28.8 Acquisitions and dispositions(a) 17.2 88.5 Argentina highly inflationar
Slide 25: 2019 Non-GAAP Results Reconciled to GAAP (2 of 3)
25 2019 Q1 Full Year Income (loss) from continuing operations attributable to Brink's: GAAP $ 13.7 28.3 Retirement plans(c) 6.5 36.2 Venezuela operations(g) 0.5 0.9 Reorganization and Restructuring(a) 2.5 21.7 Acquisitions and dispositions(a) 17.0 88.4 Tax on accelerated income(d) - (7.3) Argentina
Slide 26: 2019 Non-GAAP Results Reconciled to GAAP (3 of 3)
26 2019 Non-GAAP Results Reconciled to GAAP (3 of 3) The Brink’s Company and subsidiaries Non-GAAP Reconciliations (In millions) The 2021 Non-GAAP outlook amounts exclude certain forecasted Non-GAAP adjusting items, such as intangible asset amortization and U.S. retirement plan costs. We have not fo
Slide 27: Non-GAAP Reconciliation – Other
27 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
Slide 28: Non-GAAP Reconciliation – Net Debt
28 Non-GAAP Reconciliation – Net Debt The Brink’s Company and subsidiaries Non-GAAP Reconciliations - Net Debt (Unaudited) (In millions) a) Title to cash received and processed in certain of our secure Cash Management Services operations transfers to us for a short period of time. The cash is genera