Brinks Company (the) · NYSE:BCO
Brinks Company (the) — Q2 2023 Earnings Presentation
22 slides from Brinks Company (the)'s earnings presentation, Aug 9, 2023
Slide 1: Second-Quarter 2023 Earnings
Second-Quarter 2023 Earnings August 9, 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 Results summary (non-GAAP) • Revenue up 7% (+8% organic) ‒ Organic growth of 5% in Cash and Valuables Management ‒ Organic growth of 19% in ATM Managed Services (AMS) and Digital Retail Solutions (DRS) • Operating profit +6% to $132M (+13% organic), margin 10.8% • Adjusted EBITDA +4% to
Slide 4: AMS/DRS Delivering Growth and Margin Improvement
AMS/DRS Delivering Growth and Margin Improvement 20% of Revenue from AMS/DRS Expected by Year End 2023 Brink’s Revenue Mix Customer Offerings Cash & Valuables Management • Strong organic growth of 5% • Strong price/cost discipline • Improvements in productivity leveraging Brink’s Business System ~20
Slide 5: Second-Quarter 2023 Results
Second-Quarter 2023 Results Margins Impacted by Timing of Loss (non-GAAP, $ millions, except EPS) Revenue +7% Op Profit +6% Adj. EBITDA +4% EPS (12%) Constant Currency +11% Constant Currency +18% Constant Currency +12% Constant Currency +4% Organic +8% Organic +13% Acq +3% Acq +5% FX (4%) FX (12%) E
Slide 6: Second-Quarter Revenue and Operating Profit vs 2022
Second-Quarter Revenue and Operating Profit vs 2022 Strong Organic Growth and Continued Operational Improvements (non-GAAP, $ millions) Revenue Operating Profit % Change 8% 3% 11% (4%) 7% % Change 13% 5% 18% (12%) 6% Organic +$86 $7 $37 $1,256 ( $40 ) $28 ( $12 ) $34 $1,216 $146 ( $14 ) $52 $1,134 $
Slide 7: Second-Quarter Adjusted EBITDA and EPS vs 2022
Second-Quarter Adjusted EBITDA and EPS vs 2022 (non-GAAP, $ millions, except EPS) Diluted Shares 2023 EPS: $1.18 47.3 million 2022 EPS: $1.34 47.8 million +4% $9 $194 $25 $51 $132 ( $51 ) 10.8% $54 16.0% Margin Margin ( $25 ) $0 $56 Op Profit Interest Taxes Other Income from D&A Interest Taxes Stock
Slide 8: Capital Allocation Priorities
Capital Allocation Priorities Organic • Target Cash Capex of less than 4% of revenue in 2023 Investments 2 $325 - $375 in targeted 2023 Free Cash Flow 2x - 3x Net • Achieve leverage target with Adjusted EBITDA growth 3 Debt Target Six-Months 2023 Highlights • Delivered $115M of the $147M • Take adva
Slide 9: 2023 Guidance
2023 Guidance (non-GAAP, $ millions, except EPS) Affirming Full-Year Guidance 2022 2023 Actual Guidance Growth • Revenue growth driven by DRS/AMS progress and strategic pricing initiatives Revenue $4,536 $4,800 - 4,950 ~7% • Operating leverage resulting from price and Operating Profit $550 $625 – 67
Slide 10: Appendix
Appendix
Slide 11: Brink's Sustainability Report Recently Released
Brink’s Sustainability Report Recently Released URL: https://us.brinks.com/documents/20128/769081/Sustainability+Report_7.31.23_615pm+ET.pdf/4ca3a432-ef19-8d66-22f9-652d89bbe239?t=1690891396840 11
Slide 12: Our Strategic Pillars
Our Strategic Pillars 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 22
Slide 13: Six-Months 2023 Results
Six-Months 2023 Results (non-GAAP, $ millions, except EPS) Revenue +9% Op Profit +10% Adj. EBITDA +9% EPS (7%) Constant Currency +13% Constant Currency +21% Constant Currency +17% Constant Currency +9% Organic +10% Organic +17% Acq +3% Acq +4% FX (5%) FX (11%) $2,402 $2,208 $385 $2,027 $259 $2.53 $3
Slide 14: Six-Months Revenue and Operating Profit vs 2022
Six-Months Revenue and Operating Profit vs 2022 (non-GAAP, $ millions) Revenue Operating Profit % Change 10% 3% 13% (5%) 9% % Change 17% 4% 21% (11%) 10% Organic +$221 $83 $73 $2,501 ( $100 ) $2,402 $10 $286 ( $26 ) $138 $40 $2,208 $259 +25% $236 +7% 10.7% 11.4% 10.8% Margin Margin Margin 2022 Organ
Slide 15: Six-Months 2023 Results by Segment
Six-Months 2023 Results by Segment ($ millions) North America Latin America Europe Rest of World Revenue +4% Op Profit +30% Revenue +9% Op Profit +4% Revenue +24% Op Profit +38% Revenue +2% Op Profit +8% Constant currency +4% +30% Constant currency +20% +25% Constant currency +25% +39% Constant curr
Slide 16: Second-Quarter 2023 Results by Segment
Second-Quarter 2023 Results by Segment ($ millions) North America Latin America Europe Rest of World Revenue (1%) Op Profit +10% Revenue +9% Op Profit +2% Revenue +26% Op Profit +31% Revenue -% Op Profit +5% Constant currency (1%) +10% Constant currency +21% +25% Constant currency +24% +29% Constant
Slide 17: Net Debt and Leverage
Net Debt and Leverage Expect Leverage of 2.6x – 2.8x by Year-End 20235 (Non-GAAP, $ millions) Net Debt Adjusted EBITDA and Financial Leverage 2 $2,642 Leverage Ratio 3.2 3.2 $2,516 Adjusted Leverage Ratio 3 3.1 3.2 4 Secured Leverage Ratio 2.1 2.1 $815 3 $830 3 $1,649 $821 Secured $1,524 Adjusted EB
Slide 18: 2021 Non-GAAP Results Reconciled to GAAP (1 of 3)
2021 Non-GAAP Results Reconciled to GAAP (1 of 3) The Brink’s Company and subsidiaries Non-GAAP Reconciliations (In millions) 2021 Q2 Six Months Revenues: GAAP $ 1,048.8 2,026.5 Non-GAAP $ 1,048.8 2,026.5 Operating profit (loss): GAAP $ 73.3 135.0 (a) Reorganization and Restructuring 15.1 21.7 Acqui
Slide 19: 2021 Non-GAAP Results Reconciled to GAAP (2 of 3)
2021 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) 2021 Q2 Six Months Incom e (loss) from continuing operations attributable to Brink's: GAAP $ 24.0 36.7 Retirement plans (c) 4.9 9.4 Reorganizati
Slide 20: 2021 Non-GAAP Results Reconciled to GAAP (3 of 3)
2021 Non-GAAP Results Reconciled to GAAP (3 of 3) The Brink’s Company and subsidiaries Non-GAAP Reconciliations (In millions) 2021 Q2 Six Months Adjusted EBITDA(d): Net income attributable to Brink's - GAAP $ 23.9 36.6 Interest expense - GAAP 28.2 55.4 Income tax provision - GAAP 22.7 36.3 Depreciat
Slide 21: 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 22: 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) 2022 2023 Debt: Short-term borrowings $ 47.2 $ 127.5 Long-term debt 3,355.6 3,341.1 Total Debt 3,402.8 3,468.6 Less: Cash and cash