Brinks Company (the) · NYSE:BCO
Brinks Company (the) — Q4 2021 Earnings Presentation
31 slides from Brinks Company (the)'s earnings presentation, Feb 23, 2022
Slide 1: Fourth-Quarter Earnings
Fourth-Quarter Earnings February 23, 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 revenue and operating profit • Full-Year − Revenue up 14%...constant currency up 14%; operating profit up 23%...constant currency up 26% − Adjusted EBITDA up 21%; EPS up 25% (excluding MGI impact1) • Fourth-Quarter − Revenue up 7%...constant currency up 11%; operating
Slide 4: Full-Year 2021 Results
Full-Year 2021 Results (non-GAAP, $ millions, except EPS) Revenue +14% Op Profit +23% Adj. EBITDA +21% EPS +26% Constant Currency +14% Constant Currency +26% Constant Currency +22% Constant Currency +29% Organic +5% Organic +18% Acq +9% Acq +8% FX -% FX (2%) $4,200 $683 $3,680 $3,691 $4.75 $471 $567
Slide 5: Fourth-Quarter 2021 Results
Fourth-Quarter 2021 Results (non-GAAP, $ millions, except EPS) Revenue +7% Op Profit +6% Adj. EBITDA +8% EPS +2% Constant Currency +11% Constant Currency +15% Constant Currency +15% Constant Currency +13% Organic +7% Organic +11% +11% Acq +4% Acq +4% excluding $.13 / share FX (3%) FX (9%) MGI gain i
Slide 6: Revenue Recovery Continues – Q4 Local Currency Revenue Exceeds Pre-Covid Levels
Revenue Recovery Continues – Q4 Local Currency Revenue Exceeds Pre-Covid Levels 2021 Quarterly Revenue % vs Pro-forma Pre-Covid Levels1 North America Latin America Europe Rest of World 2021 Total Local Currency 93% 97% 96% 99% 109% 106% 108% 109% 86% 88% 92% 95% 95% 93% 93% 99% 97% 97% 98% 101% USD
Slide 7: Brink's Expects Limited Impact in 2022 from Macroeconomic Factors
Brink’s Expects Limited Impact in 2022 from Macroeconomic Factors • Global inflation and supply chain − Minimal impact from global supply chain disruptions − Higher fuel costs offset by surcharges − Price increases implemented to offset wage inflation pressures, especially in U.S. labor market • Cov
Slide 8: Our Strategic Plan – A New Layer of Growth Upon a Strong Foundation
Our Strategic Plan – A New Layer of Growth Upon a Strong Foundation 2022 2023 2024 Digital solutions and ATM managed services • Expect to be 5%+ of total revenue in 2022, targeting $500M+ incremental revenue in 2024 Strategy 2.0 • Global ATM managed services market growth represents significant oppo
Slide 9: Fourth-Quarter Revenue and Operating Profit vs 2020
Fourth-Quarter Revenue and Operating Profit vs 2020 (non-GAAP, $ millions) Revenue Operating Profit % Change 7% 4% 11% (3%) 7% % Change 11% 4% 15% (9%) 6% Constant Constant Currency Currency $40 $1,129 ( $31 ) $1,098 $6 $167 ( $13 ) $67 $16 $1,022 $154 $145 14.2% 14.8% 14.0% Margin Margin Margin 202
Slide 10: Fourth-Quarter Adjusted EBITDA and EPS vs 2020
Fourth-Quarter Adjusted EBITDA and EPS vs 2020 (non-GAAP, $ millions, except EPS) Q4 2021 EPS: $1.68 +2% vs PY, +11% ex MGI1 +8% Q4 2020 EPS: $1.64 vs PY $6 ( $0 ) $210 $72 $154 ( $29 ) $49 ( $43 ) $1 $83 Op Profit Interest Taxes Other Income from D&A Interest Exp Stock Comp Marketable Adj. EBITDA E
Slide 11: Strong Free Cash Flow Achieved in 2021
Strong Free Cash Flow Achieved in 2021 (Non-GAAP, $ millions) Adjusted $683 ( $88 ) Growth of 71% EBITDA excluding Adjusted EBITDA ( $84 ) deferred Working Capital and Cash Restructuring: Lower D&A / payments Other $212 restructuring in 2021 post-Covid-19 and G4S ( $106 ) acquisition $30 of Deferred
Slide 12: Strong Free Cash Flow Expected in 2022
Strong Free Cash Flow Expected in 2022 (Non-GAAP, $ millions) Adjusted Adjusted EBITDA EBITDA $755 - $790 ( $60 ) ( $100 ) Working Capital and Cash Restructuring: Lower D&A / restructuring expected in 2022 post-Covid-19 and Other $210 G4S acquisition ( $115 ) $10 Deferred Payments to be made: primar
Slide 13: Net Debt and Leverage
Net Debt and Leverage (Non-GAAP, $ millions) Net Debt Adjusted EBITDA and Financial Leverage Net Debt 3.3 3.4 ~2.7 – 2.8 Leverage Ratio1 $2,291 $2,110 - Secured Leverage Ratio3 1.8 2.0 ~1.5 – 1.7 $2,145 $755 - $790 $1,884 $683 $1,301 Adjusted Secured EBITDA Net Debt $896 $566 Unsecured Senior $988 $
Slide 14: Sustainability Progress
Sustainability Progress Increasing our global focus, investment and disclosure Highlights • Reducing stops, routes and carbon emissions through Brink’s Complete rollout • Strengthening green energy initiatives by expanding LED penetration, dual/alternate fuel vehicles, solar panels in branches and f
Slide 15: 2022 Guidance
2022 Guidance (non-GAAP, $ millions, except EPS) Revenue Guidance Mid-point 100%+ of 20191 Guidance Summary 4,650 – 4,800 (130) 4,520 – 4,670 2022 Guidance $4,200 2019 2020 2021 Low High % Change 11 - 14% (3%) 8 - 11% Revenue $ 3,680 3,691 4,200 4,520 4,670 Op Profit 392 381 471 545 580 2021 Strateg
Slide 16: Strong Growth Since 2019…Positioned for Substantial Value Creation
Strong Growth Since 2019…Positioned for Substantial Value Creation (Non-GAAP, $ Millions except where noted) 2019 Reported versus: 2021 2022 3-yr Strat Plan Target: Revenue + 520 + 840 – 990 Revenue + ~1.2B CAGR 7% 7 – 8% CAGR 8 – 9% OP Margin + 60 bps + 150 – 180 bps OP Margin + ~330 bps CAGR 10% 1
Slide 17: Appendix
Appendix
Slide 18: Brink's Sustainability Principles
Brink’s Sustainability Principles We are embedding sustainability deeper into our strategy and execution. Strong financial performance alone is not sufficient; we are also improving the impact we have on the environment, society and governance of our business. E NV IRONMENT S O CIAL G O VERNANCE Red
Slide 19: Sustainability Spotlight: Environment
Sustainability Spotlight: Environment Brink’s (PanAmericano) in Mexico is reducing emissions and fuel costs with fleet renewal project Initial Results Show Reduction in*: • Hydrocarbon emissions • Carbon monoxide • Annual fuel spend E NV IRONMENT • Mexico is working to What’s Next: improve the impac
Slide 20: Fourth-Quarter 2021 Results by Segment
Fourth-Quarter 2021 Results by Segment ($ millions) North America Latin America Europe Rest of the World Revenue +13% Op Profit +9% Revenue +3% Op Profit (4%) Revenue (1%) Op Profit +11% Revenue +16% Op Profit +2% Constant currency +13% +9% Constant currency +11% +6% Constant currency +4% +16% Const
Slide 21: Full-Year 2021 Results by Segment
Full-Year 2021 Results by Segment ($ millions) North America Latin America Europe Rest of the World Revenue +12% Op Profit +62% Revenue +5% Op Profit +10% Revenue +22% Op Profit +75% Revenue +24% Op Profit +12% Constant currency +11% +62% Constant currency +10% +20% Constant currency +18% +74% Const
Slide 22: Full-Year Revenue and Operating Profit vs 2020
Full-Year Revenue and Operating Profit vs 2020 (non-GAAP, $ millions) Revenue Operating Profit % Change 5% 9% 14% -% 14% % Change 18% 8% 26% (2%) 23% Constant Constant Currency Currency $315 $4,197 $3 $4,200 $191 $30 $479 ( $9 ) $471 $3,691 $68 $381 10.3% 11.4% 11.2% Margin Margin Margin 2020 Organi
Slide 23: Full-Year Adjusted EBITDA and EPS vs 2020
Full-Year Adjusted EBITDA and EPS vs 2020 (non-GAAP, $ millions, except EPS) +21% FY 2021 EPS: $4.75 +26% vs PY vs PY FY 2020 EPS: $3.76 FY 2021 EPS includes MGI impact of +$0.081 vs FY 2020 $34 ( $16 ) $683 $238 $471 ( $111 ) $189 ( $127 ) $5 $238 Op Profit Interest Taxes Other Income from D&A Inte
Slide 24: Strong Financial Health – Ample Liquidity
Strong Financial Health – Ample Liquidity ($ millions, except where noted) Cash and Debt Capacity Increased liquidity in 2020 Cash • Incremental $590 million Term Loan A closed on $676 $602 April 1, 2020 ~$1.2 B ~$1.6 B Liquidity • Incremental $400 million Senior Notes closed on Liquidity Revolver $
Slide 25: Debt Maturity Profile
Debt Maturity Profile ($ millions) $1,000 Revolver Term Loan A Term Amortization Loan A Senior Notes $1,089 Senior Notes $600 $70 $70 $70 $400 2021 2022 2023 2024 2025 2026 2027 Maturity Schedule for Credit Facility and Senior Notes 25
Slide 26: Estimated Cash Payments for Legacy Liabilities
Estimated Cash Payments for Legacy Liabilities ($ 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 • The American Rescue Plan
Slide 27: 2019 Non-GAAP Results Reconciled to GAAP (1 of 3)
2019 Non-GAAP Results Reconciled to GAAP (1 of 3) The Brink’s Company and subsidiaries Non-GAAP Reconciliations (In millions) 2019 Q4 Full Year Revenues: GAAP $ 935.8 3,683.2 Acquisitions and dispositions (a) - 0.5 Internal loss (a) - (4.0) Non-GAAP $ 935.8 3,679.7 Operating profit (loss): GAAP $ 73
Slide 28: 2019 Non-GAAP Results Reconciled to GAAP (2 of 3)
2019 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) 2019 Q4 Full Year Incom e (loss) from continuing operations attributable to Brink's: GAAP $ (3.8) 28.3 Retirement plans (c) 19.8 36.2 Venezuela
Slide 29: 2019 Non-GAAP Results Reconciled to GAAP (3 of 3)
2019 Non-GAAP Results Reconciled to GAAP (3 of 3) The Brink’s Company and subsidiaries Non-GAAP Reconciliations (In millions) 2019 Q4 Full Year (f) Adjusted EBITDA : Net income (loss) attributable to Brink's - GAAP $ (2.6) 29.0 Interest expense - GAAP 22.0 90.6 Income tax provision - GAAP 23.9 61.0
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) 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 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) 2020 2021 Debt: Short-term borrow ings $ 14.2 $ 9.8 Long-term debt 2,471.5 2,956.9 Total Debt 2,485.7 2,966.7 Less: Cash and c