Brinks Company (the) · NYSE:BCO
Brinks Company (the) — Q3 2022 Earnings Presentation
29 slides from Brinks Company (the)'s earnings presentation, Oct 26, 2022
Slide 1: Third-Quarter Earnings
Third-Quarter Earnings October 26, 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) Strong 3Q results…double-digit organic revenue and profit growth • Revenue +6% (+13% organic) • Operating profit +9% (+22% organic), margin 11.2% • Adjusted EBITDA +11%, margin 16.6% • EPS up 18% (up 21% excluding MGI impact1) • 2022 YTD double-digit organic revenue and profi
Slide 4: Strong YTD Organic Revenue Growth in Tech-Enabled Solutions
Strong YTD Organic Revenue Growth in Tech-Enabled Solutions Digital Retail Solutions1 (DRS) & ATM Managed Services2 (AMS) DRS AMS ~20%+ ~50%+ Organic Growth Organic Growth • Brink’s Complete — developing locally relevant service offerings ~150% • Strong growth driven by around the world North Americ
Slide 5: Tech-Enabled Solutions Deployment
Tech-Enabled Solutions Deployment Recurring revenue, higher margins and increased retention rates AMS Partnership with BPCE, Second Largest Bank in France • Outsourcing entire network of >10,000 ATMs by Dec. 31, 2022 • 10+ year recurring revenue contract • Capabilities and infrastructure to integrat
Slide 6: NoteMachine Acquisition Accelerates ATM Managed Services Growth
NoteMachine Acquisition Accelerates ATM Managed Services Growth Acquired 10/3/22 for $179 million1 (5.0x Adj. EBITDA) • Expands ATM managed services capabilities and expertise in Europe • Provides global technology infrastructure for ATM $131m $36m managed services, including monitoring software, di
Slide 7: Global Restructuring Plan
Global Restructuring Plan Sustainable fixed cost reductions position Brink’s to achieve short and long-term financial targets (Millions) Current Projected Impact ~ $40 We are taking actions in order to: • Enable growth and reduce costs and related infrastructure ~ $30 • Mitigate the potential impact
Slide 8: Brink's Has a History of Resilience Across Economic Cycles
Brink’s Has a History of Resilience Across Economic Cycles Organic Revenue Growth – Total Brink’s1 Recession Pandemic • In 2008-2009 organic revenue growth 12% remained stable during the recession; 10% 7% 7% 6% 6% 6% 7% 6% recovered to 4% in 2010 and 7% in 2011 5% 5% 5% 4% 4% 3% • During the pandemi
Slide 9: Third-Quarter 2022 Results
Third-Quarter 2022 Results Continued Double-digit Organic Growth and Margin Expansion, Offsetting FX Impact (non-GAAP, $ millions, except EPS) Revenue +6% Op Profit +9% Adj. EBITDA +11% EPS +18% Constant Currency +14% Constant Currency +23% Constant Currency +22% Constant Currency +37% Organic +13%
Slide 10: Third-Quarter Revenue and Operating Profit vs 2021
Third-Quarter Revenue and Operating Profit vs 2021 Strong Organic Growth Offsets FX Impact (non-GAAP, $ millions) Revenue Operating Profit % Change 13% 0% 14% (8%) 6% % Change 22% 1% 23% (14%) 9% Constant Constant Currency Currency $143 $4 $1,222 ( $85 ) $26 $1 $143 ( $16 ) $1,137 $127 $1,076 $116 1
Slide 11: Third-Quarter Adjusted EBITDA and EPS vs 2021
Third-Quarter Adjusted EBITDA and EPS vs 2021 (non-GAAP, $ millions, except EPS) Adjusted EBITDA +11%, EPS +18% Diluted Shares2 2022 EPS: $1.34 +18% vs PY, +21% ex MGI1 47.5 million 2021 EPS: $1.14 50.3 million +11% $14 ( $1 ) $189 $66 $127 ( $34 ) $46 ( $32 ) 16.6% Margin $3 $64 11.2% Tax Rate Marg
Slide 12: Free Cash Flow | 2022 Target
Free Cash Flow | 2022 Target 33% of Adjusted EBITDA (Non-GAAP, $ millions) = Prior Target = Change vs. Prior Target Target ~$775 ( $95 ) Prior Target $755 - $790 ( $70 ) ( $120 ) ( $110 ) ( $125 ) ( $115 ) ( $180 ) $280 - $315 Prior Target ~$255 Target Adj. WC, Cash Restructuring Cash Cash Cash Free
Slide 13: Net Debt and Leverage
Net Debt and Leverage Secured Leverage Ratio Well Below Covenant Max of 3.5x (Non-GAAP, $ millions) Net Debt Adjusted EBITDA and Financial Leverage Leverage Ratio3 3.4 3.2 ~3.2 ~ $2,450 Pro-forma Leverage Ratio4 ~3.0 $2,391 $2,291 Secured Leverage Ratio5 2.0 2.0 ~1.9 ~$810 Pro-forma $1,399 $751 Note
Slide 14: 2022 Guidance | On Track for Continued Strong Growth
2022 Guidance | On Track for Continued Strong Growth (non-GAAP, $ millions, except EPS and where noted) 2022 Guidance Dec. 2021 Investor Day 2H Impact 2021 Guidance ∆ in FX Rates Current 2024 3-Yr Actual 2/23/22 6/30 to 9/30 Outlook Target2 CAGR Revenue $4.2B $4.52-4.67B ($102) ~$4.52B $5.3-5.5B 8-9
Slide 15: Appendix
Appendix
Slide 16: Sustainability Update
Sustainability Update Deployed the first electric armored vehicle in the U.S. in Q3 Brink’s EV Deployments • Netherlands • Singapore • France • United States We are committed to: • Increasing the efficiency of our fleet • Reducing emissions and use of fossil fuels • Working with manufacturers to enh
Slide 17: Our Strategic Plan Adds a New Layer of Growth Upon a Strong Foundation
Our Strategic Plan Adds a New Layer of Growth Upon a Strong Foundation Targeting Annual Organic Revenue Growth of 7% + COVID Recovery, Annual Margin Growth of 100 bps Growth Driven Primarily by Core Operations 2022 2023 2024 Strategy 2.0 Annual targets: 3% organic revenue growth, 25 bps of margin gr
Slide 18: Third-Quarter 2022 Results by Segment
Third-Quarter 2022 Results by Segment ($ millions) North America Latin America Europe Rest of World Revenue +11% Op Profit +53% Revenue +4% Op Profit +3% Revenue (8%) Op Profit (8%) Revenue +15% Op Profit +51% Constant currency +11% +53% Constant currency +14% +19% Constant currency +8% +7% Constant
Slide 19: Nine-Months 2022 Results
Nine-Months 2022 Results (non-GAAP, $ millions, except EPS) Revenue +8% Op Profit +15% Adj. EBITDA +14% EPS +23% Constant Currency +13% Constant Currency +23% Constant Currency +21% Constant Currency +35% Organic +12% Organic +20% Acq 2% Acq +3% +34% FX (6%) FX (8%) excluding $.24 / share MGI gain i
Slide 20: Nine-Months Revenue and Operating Profit vs 2021
Nine-Months Revenue and Operating Profit vs 2021 (non-GAAP, $ millions) Revenue Operating Profit % Change 12% 2% 13% (6%) 8% % Change 20% 3% 23% (8%) 15% Constant Constant Currency Currency $365 $50 $3,517 ( $172 ) $3,345 $64 $8 $389 ( $26 ) $3,102 $363 $317 10.2% 11.1% 10.9% Margin Margin Margin 20
Slide 21: Nine-Months 2022 Results by Segment
Nine-Months 2022 Results by Segment ($ millions) North America Latin America Europe Rest of World Revenue +13% Op Profit (2%) Revenue +8% Op Profit +8% Revenue (2%) Op Profit +10% Revenue +10% Op Profit +28% Constant currency +13% (2%) Constant currency +14% +18% Constant currency +10% +24% Constant
Slide 22: Strong Financial Health – Ample Liquidity
Strong Financial Health – Ample Liquidity ($ millions, except where noted) Cash and Debt Capacity 1 ~$1.3 B Liquidity Credit Facility Amend and Extend Closed June 2022 $981 Cash $602 $676 ~$1.1B Liquidity excluding • Term Loan A expanded from $1.2 billion to $1.4 billion ~$1.2 B ~$1.6 B Liquidity ca
Slide 23: Debt Maturity Profile
Debt Maturity Profile ($ millions) Revolver $1,000 Term Loan A $1,155 Term Loan A Term Loan A Amortization Amortization $70 Term Loan A Senior Senior Amortization Notes $53 Notes $70 $600 $35 $53 $400 2022 2023 2024 2025 2026 2027 Maturity Schedule for Credit Facility and Senior Notes 23
Slide 24: Estimated Cash Payments for Legacy Liabilities
Estimated Cash Payments for Legacy Liabilities ($ millions) Payments to Primary U.S. Pension Payments to UMWA $231 No cash payments are expected in foreseeable future $22 $22 $21 $0 2021 2022 2023 2024 2025 2026 2021 2032 2033 2034 After 2034 Primary US Pension • Based on actuarial assumptions (as o
Slide 25: 2020 Non-GAAP Results Reconciled to GAAP (1 of 3)
2020 Non-GAAP Results Reconciled to GAAP (1 of 3) The Brink’s Company and subsidiaries Non-GAAP Reconciliations (In millions) 2020 Q3 Nine Months Revenues: GAAP $ 970.5 2,669.3 Non-GAAP $ 970.5 2,669.3 Operating profit (loss): GAAP $ 76.4 101.6 (a) Reorganization and Restructuring 5.1 49.7 (a) Acqui
Slide 26: 2020 Non-GAAP Results Reconciled to GAAP (2 of 3)
2020 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) 2020 Q3 Nine Months Income (loss) from continuing operations attributable to Brink's: GAAP $ (23.8) (8.3) Retirement plans(c) 6.6 18.7 (a) Reorg
Slide 27: 2020 Non-GAAP Results Reconciled to GAAP (3 of 3)
2020 Non-GAAP Results Reconciled to GAAP (3 of 3) The Brink’s Company and subsidiaries Non-GAAP Reconciliations (In millions) 2020 Q3 Nine Months Adjusted EBITDA(d): Net income attributable to Brink's - GAAP $ (23.9) (9.2) Interest expense - GAAP 27.1 70.3 Income tax provision - GAAP 58.9 3.5 Deprec
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) 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 29: 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, September 30, (In millions) 2021 2022 Debt: Short-term borrowings $ 9.8 $ 20.7 Long-term debt 2,956.9 3,351.0 Total Debt 2,966.7 3,371.7 Less: Cash and c