Slide 1: First Quarter 2016 Earnings Call
May 3, 2016 First Quarter 2016 Earnings Call Secure Logistics. Worldwide. Exhibit 99.2
Slide 2: Safe Harbor Statement & Non-GAAP Results
2 Safe Harbor Statement & Non-GAAP Results These materials contain forward-looking information. Words such as "anticipate," "assume," "estimate," "expect," “target” "project," "predict," "intend," "plan," "believe," "potential," "may," "should" and similar expressions may identify forward-looking in
Slide 3: First Quarter 2016 Earnings Call
May 3, 2016 First Quarter 2016 Earnings Call Secure Logistics. Worldwide.
Slide 4: First-Quarter 2016 Non-GAAP Results
4 First-Quarter 2016 Non-GAAP Results • EPS $.30 vs $.44 • Revenue down 9% from currency • 4.5% margin vs 5.4% • Negative currency impact: $84 million on revenue; $5 million on operating profit; $.06 on EPS • 2016 guidance reaffirmed • EPS $2.00 - $2.20 • Revenue outlook raised to $2.9 billion on mo
Slide 5: Continued Improvement Expected in 2016
5 124 157 190 - 210 3.7% 5.3% ~7% 2014 2015 2016 Outlook -20 -15 -10 -5 0 5 10 -25 25 75 125 175 225 275 2014 2015 2016 Outlook Note: See reconciliation to GAAP results in Appendix Continued Improvement Expected in 2016 Non-GAAP Operating Profit Margin 2016 Non-GAAP Outlook • EPS $2.00 - $2.20 • Mar
Slide 6: Summary of 1Q16 Non-GAAP Results
6 $41 1Q15 1Q16 $756 1Q15 1Q16 Summary of 1Q16 Non-GAAP Results $0.44 1Q15 1Q16 EPSRevenue Note: See reconciliation to GAAP results in Appendix. Organic Growth 3% Currency (11)% Operating Profit Margin 5.4% 4.5% ($ Millions, except % and per share amounts) Organic Growth (18)% Currency (14)% $31 Rep
Slide 7: U.S. & Mexico: 1Q16 Results
7 U.S. & Mexico: 1Q16 Results ($ Millions, except %) 1Q16 • Higher fleet costs • Lower volume/revenue • Higher cost: security, medical, OT/labor Full-year outlook • Operating profit $15 - $25 • Lowered guidance due to higher fleet cost and added labor costs to improve service capability and drive ef
Slide 8: France, Brazil & Canada: 1Q16 Results
8 France, Brazil & Canada: 1Q16 Results 105 $5 Revenue Op Profit France Brazil Canada $60 $6 Revenue Op Profit $36 $2 Revenue Op ProfitOrganic Growth 1% Margin 4.3% Organic Growth 12% Margin 10.2% Organic Growth 3% Margin 5.0% ($ Millions, except %) • Slight revenue growth in guarding activities • S
Slide 9: Global Markets: 1Q16 Results
9 • Revenue decline in Ireland and Global Services • Profit margin flat within 1Q15 Global Markets: 1Q16 Results $95 $7 Revenue Op Profit $79 $18 Revenue Op Profit $39 $6 Revenue Op Profit Organic Growth (8)% Margin 7.2% Organic Growth 19% Margin 22.1% Organic Growth 5% Margin 16.4% EMEA Latin Ameri
Slide 10: 2016 Non-GAAP Outlook
10 2015 $2,977 Organic +5% 150 Currency (8)% (227) 2016 Outlook $2,900 2016 Non-GAAP Outlook $3,351 $2,977 $2,900 2014 2015 2016 Outlook $124 $157 $190-$210 2014 2015 2016 Outlook $1.01 $1.69 $2.00 - $2.20 2014 2015 2016 Outlook Revenue Operating Profit EPS Revenue Outlook EPS Outlook 2015 $1.69 Op
Slide 11: Non-GAAP Cash Flow, Capital Investment and Net Debt
11 Non-GAAP Cash Flow, Capital Investment and Net Debt ($23) ($31) $269 $327 12/31/2015 3/31/2016 Net DebtCFOA (Excluding Venezuela) Note: See reconciliation to GAAP results in Appendix. $15 $25 YTD 2015 YTD 2016 Capital Expenditures & Capital Leases ($ Millions) YTD 2015 YTD 2015 YTD 2016
Slide 12: First Quarter 2016 Earnings Call
May 3, 2016 First Quarter 2016 Earnings Call Secure Logistics. Worldwide.
Slide 13: Appendix
Appendix
Slide 14: Non-GAAP 2016 Outlook and Key Metrics
14 Note: See reconciliation to GAAP results in Appendix (a) Attributable to Brink’s Non-GAAP 2016 Outlook 20152014 2016 Outlook Revenue $3,351 $2,977 $2,900 Op profit 124 157 190 – 210 Interest/Other Income (22) (15) (16) Taxes (47) (52) (68 – 76) Noncontrolling interests (6) (5) (5 -7) Income from
Slide 15: Brink's Historical Non-GAAP Results
15 Brink’s Historical Non-GAAP Results ($ Millions, except per share amounts) ($) Margin Operating Profit EPS $0.15 $0.16 $0.12 $0.58 $0.44 $0.30 $0.40 $0.55 $0.30 1Q14 2Q14 3Q14 4Q14 1Q15 2Q15 3Q15 4Q15 1Q16 Note: See reconciliation to GAAP results in Appendix $21 $24 $21 $59 $41 $31 $37 $49 $31 2.
Slide 16: Capex Spend
16 Capex Spend(a) ($ Millions, except ratio) (a) Excluding Venezuela $176 $169 $143 $116 $120 - $130 1.3 1.1 1.0 0.9 1.0 0.00. 10.02. 30.04. 5 0.06. 70.08. 90.10. 1 0.12. 30.14. 50.16. 7 0.18. 90.20. 10.22. 3 0.24. 50.26. 70.28. 9 0.30. 10.32. 30.34. 5 0.36. 70.38. 90.40. 1 0.42. 30.44. 50.46. 7 0.4
Slide 17: Legacy Liabilities – Underfunding at 12/31/15
17 Legacy Liabilities – Underfunding at 12/31/15 ($ Millions) Primary U.S. Pension UMWA $(113) $(108) $(114) 2013 2014 2015 Primary U.S. Pension $(142) $(197) $(206) 2013 2014 2015 UMWA
Slide 18: Estimated Cash Payments: Primary U.S. Pension and UMWA
18 Estimated Cash Payments: $0 to Primary U.S. Pension until 2020 $0 to UMWA until 2027 ($ Millions) Payments to Primary U.S. Pension Payments to UMWA • Prepaid 2015 and 2016 pension payments in 3Q14 − Accelerated de-risking of invested asset allocation − Reduced PBGC premiums (current borrowing cos
Slide 19: Segment Results and Non-GAAP Results Reconciled to GAAP
Segment Results and Non-GAAP Results Reconciled to GAAP
Slide 20: Other Items Not Allocated to Segments
20 Other Items Not Allocated to Segments 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. A summary of the other items not allocat
Slide 21: Other Items Not Allocated to Segments – Venezuela
21 Other Items Not Allocated to Segments The Brink’s Company and subsidiaries Other Items Not Allocated to Segments (Unaudited) Venezuela operations We have excluded from our segment results all of our Venezuela operating results, including expenses related to currency devaluations ($3.8 million in
Slide 22: Other Items Not Allocated to Segments – Acquisitions and Dispositions
22 Other Items Not Allocated to Segments The Brink’s Company and subsidiaries Other Items Not Allocated to Segments (Unaudited) Acquisitions and dispositions Effective March 1, 2016, results from Ireland are excluded from the non-GAAP results due to the company's decision to exit the majority of its
Slide 23: Non-GAAP Reconciled to GAAP
23 Non-GAAP Reconciled to GAAP The Brink’s Company and subsidiaries Non-GAAP Results Reconciled to GAAP (Unaudited) (In millions, except for percentages and per share amounts) Amounts may not add due to rounding. See slide 24 for footnote explanations. 2016 1Q 2Q 3Q 4Q Full Year 1Q Revenues: Non-GAA
Slide 24: Non-GAAP Reconciled to GAAP
24 Non-GAAP Reconciled to GAAP The Brink’s Company and subsidiaries Non-GAAP Results Reconciled to GAAP (Unaudited) (In millions, except for percentages and per share amounts) a) See “Other Items Not Allocated To Segments” on slides 20-22 for pretax amounts and details. Other Items Not Allocated To
Slide 25: Non-GAAP Reconciled to GAAP
25 Non-GAAP Reconciled to GAAP The Brink’s Company and subsidiaries Non-GAAP Results Reconciled to GAAP (Unaudited) (In millions, except for percentages and per share amounts) Amounts may not add due to rounding. See slide 24 for footnote explanations. Pre-tax Tax Effective tax rate Pre-tax Tax Effe
Slide 26: Non-GAAP Reconciliation – Cash Flows
26 Non-GAAP Reconciliation – Cash Flows The Brink’s Company and subsidiaries Non-GAAP Reconciliations –Cash Flow (Unaudited) (In millions) a) To adjust for the change in the balance of customer obligations related to cash received and processed in certain of our secure Cash Management Services opera
Slide 27: Non-GAAP Reconciliation – Net Debt
27 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
Slide 28: Non-GAAP Reconciliation – Other
28 Non-GAAP Reconciliation – Other The Brink’s Company and subsidiaries Non-GAAP Reconciliations – Other Amounts (Unaudited) (In millions) Fixed Assets Acquired 2012 2013 2014 2015 2015 2016 Capital expenditures - GAAP 170.8 172.9 136.1 101.1 14.3 20.8 Assets aquired under capital lease - GAAP 18.2