Brinks Company (the) · NYSE:BCO
Brinks Company (the) — Q3 2024 Earnings Presentation
35 slides from Brinks Company (the)'s earnings presentation, Nov 6, 2024
Slide 1: Third-Quarter 2024 Earnings
Third-Quarter 2024 Earnings November 6, 2024
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 Third-Quarter Results Summary (non-GAAP, $ millions, except EPS) • Organic revenue growth of 13% – AMS/DRS organic growth of +26% and CVM organic growth of +9% – Offset by FX headwinds of (11%) and softness in global services • Adjusted EBITDA of $217M or 17.2%, EPS of $1.51 – Profit im
Slide 4: Third-Quarter 2024 Results
Third-Quarter 2024 Results (non-GAAP, $ millions, except EPS) Revenue +3% Adj. EBITDA (6%) EPS (27%) TTM Free Cash Flow (28%) Constant Currency +13% Constant Currency +16% Constant Currency +10% Conversion of 29%2 Organic +13% Acq +1% FX (11%) Excl. Sec 1 Loss Impact $1,259 18.0% Margin $1,227 $227
Slide 5: Accelerating Investments to Improve Margins in North America
Accelerating Investments to Improve Margins in North America (non-GAAP, $ millions) North America EBITDA and EBITDA Margins Performance Drivers CAGR 15% Technology and Systems Investment $284 • Investing to maximize benefits of the accelerating revenue shift Pandemic $259 to AMS and DRS $228 • Imple
Slide 6: AMS/DRS Delivering Growth and Margin Improvement
AMS/DRS Delivering Growth and Margin Improvement Increasing Growth and Mix Expectations Based on Strong Performance and Momentum ($ millions) Customer Offerings Brink’s Revenue Mix Cash & Valuables Management • Q3 organic growth of 9% • Stable cash markets despite economic and political uncertainty
Slide 7: AMS Case Study: Sainsbury's
AMS Case Study: Sainsbury’s Recent large win supports AMS growth profile into 2025 and beyond + 1,370 ATMs + Improved Route Density + Margin Accretive Brink’s Providing Full Value Chain Solution PMO, Data, Account CIT & Cash Transaction First & Second Line Management, IMAC 24/7 Service Centre Foreca
Slide 8: Third-Quarter Revenue and Adjusted EBITDA vs 2023
Third-Quarter Revenue and Adjusted EBITDA vs 2023 (non-GAAP, $ millions) Revenue Adjusted EBITDA % Change 13% 1% 13% (11%) 3% % Change 15% -% 16% (22%) (6%) Organic +$156 Excl. Sec 1 $66 $7 $1,390 ( $131 ) $35 $1 $267 ( $50 ) Loss Impact $89 18.0% Margin $1,227 $1,259 +26% $231 $227 +9% $217 18.8% 1
Slide 9: Third-Quarter Adjusted EBITDA and EPS vs 2023
Third-Quarter Adjusted EBITDA and EPS vs 2023 (non-GAAP, $ millions, except EPS) Diluted Shares 3Q 2024 EPS: $1.51 44.8 million 3Q 2023 EPS: $2.07 47.1 million (6%) $28 $3 $217 $63 $152 ( $63 ) 12.0% $56 17.2% Margin Margin ( $28 ) $7 $68 Op Profit Interest Expense Taxes Other Income from D&A Intere
Slide 10: Updated 2024 Free Cash Flow Guidance
Updated 2024 Free Cash Flow Guidance (Non-GAAP, $ millions) Components Free Cash Flow Guidance Change Adjusted EBITDA $440 ~($50) • FX devaluation - primarily Mexican Peso • Global services impact Flat ~($15) • North America productivity delay ~($35) Hedging Working Capital / Capex / Other Interest
Slide 11: Capital Allocation Framework
Capital Allocation Framework Organic • Strategic investments driving growth and profitability Investments • IT: Data center to cloud migration, cyber security, and routing technology system 2x - 3x Net • Debt stable - within target range Debt Target $320 - $360M in targeted 2024 Free Cash Flow, • $1
Slide 12: 2024 Guidance Updated
(non-GAAP, $ millions, except EPS) 2024 Guidance Updated Guidance updated for FX and continued BGS headwinds partly offset with better AMS/DRS growth 2024 Guidance 2023 • Revenue growth of ~3% with low teens Actual Original Updated organic growth Revenue $4,875 $5,075 - 5,225 $5,000 - $5,050 o 20%+
Slide 13: Appendix
Appendix
Slide 14: Team Brink's: Our Strategic Pillars
Our Strategic Pillars Partner for Win as Customer Success Team Brink’s Deliver secure Unleash the power commerce solutions of our people Innovate Run the to Grow Business Better Drive Operate with innovation that excellence and creates value efficiency CONFIDENTIAL. FOR INTERNAL USE ONLY – DO NOT DU
Slide 15: Third-Quarter 2024 Revenue & Adjusted EBITDA by Segment
Third-Quarter 2024 Revenue & Adjusted EBITDA by Segment ($ millions) North America Latin America Europe Rest of World Revenue +4% Adj. EBITDA (6%) Revenue (5%) Adj. EBITDA 2% Revenue +10% Adj. EBITDA +12% Revenue +4% Adj EBITDA +4% Constant currency +4% (6%) Constant currency +34% +60% Constant curr
Slide 16: Nine-Months 2024 Results
Nine-Months 2024 Results (non-GAAP, $ millions, except EPS) Revenue +3% Adj. EBITDA +7% EPS +3% TTM Free Cash Flow (28%) Constant Currency +13% Constant Currency +28% Constant Currency +45% Conversion of 29%1 Organic +13% Acq -% FX (10%) $3,748 $3,629 $3,345 $366 $661 $4.61 $4.73 $615 $541 $3.90 $26
Slide 17: Nine-Months Revenue and Adjusted EBITDA vs 2023
Nine-Months Revenue and Adjusted EBITDA vs 2023 (non-GAAP, $ millions) Revenue Adjusted EBITDA % Change 13% 0% 13% (10%) 3% % Change 27% -% 28% (20%) 7% Organic +$468 $176 $15 $4,112 ( $365 ) $292 $3,748 $3,629 $168 $2 $785 ( $125 ) +24% +10% $661 $615 17.0% 19.1% 17.6% Margin Margin Margin 2023 Org
Slide 18: Nine-Months Adjusted EBITDA and EPS vs 2023
Nine-Months Adjusted EBITDA and EPS vs 2023 (non-GAAP, $ millions, except EPS) Diluted Shares 2024 EPS: $4.73 45.0 million 2023 EPS: $4.61 47.3 million +7% $87 $19 $661 $175 $452 ( $175 ) $167 17.6% 12.1% Margin Margin ( $87 ) $23 $213 Op Profit Interest Expense Taxes Other Income from D&A Interest
Slide 19: Nine-Months 2024 Revenue & Adjusted EBITDA by Segment
Nine-Months 2024 Revenue & Adjusted EBITDA by Segment ($ millions) North America Latin America Europe Rest of World Revenue +3% Adj. EBITDA +14% Revenue -% Adj. EBITDA (1%) Revenue +9% Adj. EBITDA +10% Revenue +2% Adj EBITDA +3% Constant currency +3% +14% Constant currency 36% +49% Constant currency
Slide 20: Third-Quarter 2024 Revenue & Operating Profit by Segment
Third-Quarter 2024 Revenue & Operating Profit by Segment ($ millions) North America Latin America Europe Rest of World Revenue +4% Operating Profit (13%) Revenue (5%) Operating Profit 3% Revenue +10% Operating Profit +12% Revenue +4% Operating Profit 3% Constant currency +4% (13%) Constant currency
Slide 21: Nine-Months 2024 Revenue & Operating Profit by Segment
Nine-Months 2024 Revenue & Operating Profit by Segment ($ millions) North America Latin America Europe Rest of World Revenue +3% Operating Profit 15% Revenue -% Operating Profit (2%) Revenue +9% Operating Profit +13% Revenue +2% Operating Profit 2% Constant currency +3% 15% Constant currency +36% +5
Slide 22: Net Debt and Leverage
Net Debt and Leverage Leverage Within Targeted Range (Non-GAAP, $ millions) Net Debt Adjusted EBITDA and Financial Leverage $2,717 2 Leverage Ratio 2.91 2.98 $2,521 $1,330 $913 $867 Secured $1,527 Net Debt Adjusted EBITDA Unsecured $1,387 Senior Notes1 $994 12/31/2023 9/30/2024 2023 Q3 2024 Actual A
Slide 23: Brink's is Well Positioned to Deliver During Market Uncertainties
Brink’s is Well Positioned to Deliver During Market Uncertainties (non-GAAP) Organic Revenue Growth 1 Adjusted EBITDA Margin Recession Pandemic Pandemic ~10-13% 17.4% 17.8% ~18.1% 12% 16.3% 14.8% 15.4% 15.3% 9% 13.3% 11.7% 7% 7% 7% 6% 6% 6% 6% 5% 5% 4% 4% 3% -0.5% 2016 2017 2018 2019 2020 2021 2022
Slide 24: 2022 Non-GAAP Results Reconciled to GAAP
2022 Non-GAAP Results Reconciled to GAAP The Brink’s Company and subsidiaries 2022 Non-GAAP Reconciliations Q3 Nine Months (In millions) Operating profit (loss): GAAP $ 59.5 218.4 Reorganization and Restructuring(a) 19.6 34.0 Acquisitions and dispositions (a) 35.7 66.3 Argentina highly inflationary
Slide 25: Non-GAAP Results Reconciled to GAAP (2016 – 2022 EBITDA)
Non-GAAP Results Reconciled to GAAP (2016 – 2022 EBITDA) The Brink’s Company and subsidiaries Non-GAAP Reconciliations 2016 2017 2018 2019 2020 2021 2022 (In millions, except for per share amounts) Full Year Full Year Full Year Full Year Full Year Nine Months Full Year Q3 Nine Months Full Year Reven
Slide 26: 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 27: Non-GAAP Reconciliation – Other
Non-GAAP Reconciliation – Other The Brink’s Company and subsidiaries Other Items Not Allocated to Segments (Unaudited) (In millions) 2021 Acquisitions and Dispositions • Amortization expense for acquisition-related intangible assets was $47.7 million in 2021. • We incurred $10.5 million in integrati
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) Argentina highly inflationary impact Beginning in the third quarter of 2018, we designated Argentina's economy as highly inflationary for accounting purposes. As a res
Slide 29: Non-GAAP Reconciliation – Other
Non-GAAP Reconciliation – Other Non-GAAP Measures and Reconciliations to GAAP Measures Non-GAAP measures described below and included in this filing are financial measures that are not required by or presented in accordance with GAAP. The purpose of the disclosure of these non-GAAP measures is to re
Slide 30: Non-GAAP Reconciliation – Other
Non-GAAP Reconciliation – Other Non-GAAP Measures and Reconciliations to GAAP Measures Reconciliations of Non-GAAP to GAAP Measures Non-GAA measures are reconciled to comparable GAA measures either in the tables below or in “Liquidity and Capital Resources” section. Amounts reported for prior period
Slide 31: Non-GAAP Reconciliation – Segment Adjusted EBITDA
Non-GAAP Reconciliation – Segment Adjusted EBITDA The Brink’s Company and subsidiaries (In millions) Segment Adjusted EBITDA: 2023 2024 Q3 Nine Months Full Year Q3 Nine Months Add back: Add back: Add back: Add back: Add back: Depreciation Segment Depreciation Segment Depreciation Segment Depreciatio
Slide 32: Adjusted EBITDA Reconciliation
Adjusted EBITDA Reconciliation The Brink’s Company and subsidiaries (In millions) 2023 2024 Q3 Nine Months Full Year Q3 Nine Months North America $ 65.6 177.5 259.1 $ 61.8 202.3 Latin America 81.9 240.6 333.9 83.4 237.7 Europe 49.1 128.2 179.2 55.0 141.5 Rest of World 48.7 139.0 188.5 50.6 143.4 Tot
Slide 33: 2023 – 2024 Non-GAAP Results Reconciled to GAAP
2023 – 2024 Non-GAAP Results Reconciled to GAAP The Brink’s Company and subsidiaries (In millions) 2023 2024 Q3 Nine Months Full Year Q3 Nine Months Interest and other nonoperating income (expense): GAAP $ 2.9 11.7 14.4 $ 10.5 36.3 Acquisitions and dispositions (a) (0.9) 0.2 1.2 1.3 1.1 Argentina hi
Slide 34: Non-GAAP Reconciliation – Cash Flows
Non-GAAP Reconciliation – Cash Flows The Brink’s Company and subsidiaries Non-GAAP Reconciliations (In millions) Nine Months Full Year Nine Months Full Year 2021 2021 2022 2022 Cash flows provided from (used in) operating activities - GAAP $ 273.6 $ 478.0 $ 200.5 $ 479.9 (Increase) decrease in restr
Slide 35: Non-GAAP Reconciliation – Net Debt
Non-GAAP Reconciliation – Net Debt The Brink’s Company and subsidiaries Non-GAAP Reconciliations (In millions) December 31, September 30, (In millions) 2023 2024 Debt: Short-term borrowings $ 151.7 $ 140.8 Long-term debt 3,379.6 3,710.5 Total Debt 3,531.3 3,851.3 Less: Cash and cash equivalents 1,17