Brinks Company (the) · NYSE:BCO
Brinks Company (the) — Q1 2023 Earnings Presentation
19 slides from Brinks Company (the)'s earnings presentation, May 10, 2023
Slide 1: First-Quarter 2023 Earnings
First-Quarter 2023 Earnings May 10, 2023 Exhibit 99.2
Slide 2: Forward-looking information
2 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-looking information. Forward-looking infor
Slide 3: Key Messages
3 Key Messages (non-GAAP)1Q results summary • Revenue up 10% (13% organic) ‒ Organic growth of 9% in cash and valuables management and 31% in ATM Managed Services (AMS) and Digital Retail Solutions (DRS) • Operating profit up 14% to $127M (22% organic) ‒ Margin expansion of 30 basis-points to 10.7%
Slide 4: Our Strategy is Delivering Strong Results
4 DRS / AMS represent 18% of TTM revenue with Q1 growth of 50% Our Strategy is Delivering Strong Results • Strong organic growth of 9% • Improvements in productivity • Improved labor turnover in North America • Strong price/cost discipline Cash & Valuables Management • Recent customer wins, includin
Slide 5: First-Quarter 2023 Results
5 First-Quarter 2023 Results Fourth Consecutive Quarter of Double-digit Organic Revenue and Op Profit Growth (non-GAAP, $ millions, except EPS) Revenue +10% Organic +13% Acq +3% FX (6%) EPS (3%)Adj. EBITDA +15%Op Profit +14% Organic +22% Acq +3% FX (11%) $978 $1,074 $1,185 2021 2022 2023 Constant Cu
Slide 6: First-Quarter Revenue and Operating Profit vs 2022
6 $112 $24 $3 $139 ( $12 ) $127 2022 Op Profit Organic Acq / Disp* 2023 Constant Currency Op Profit FX 2023 Op Profit First-Quarter Revenue and Operating Profit vs 2022 (non-GAAP, $ millions) Revenue Operating Profit $1,074 $86 $50 $36 $1,245 ( $60 ) $1,185 2022 Revenue Organic Cash & Valuables Mgmt
Slide 7: First-Quarter Adjusted EBITDA and EPS vs 2022
7 First-Quarter Adjusted EBITDA and EPS vs 2022 (non-GAAP, $ millions, except EPS) $127 ( $46 ) ( $26 ) $0 $55 $51 $46 $26 $12 $191 Op Profit Interest Expense Taxes Other Income from Continuing Ops D&A Interest Expense Taxes Stock Comp & Other Adj. EBITDA 47.4 million 48.3 million Vs. 2022 $15 ( $19
Slide 8: Meaningful 1Q Progress Toward Free Cash Flow Target
8 $625 - $675 ~ $240 $865 - $915 ( $55 ) ( $130 ) ( $175 ) ( $180 ) $325 - $375 Adj. EBITDA WC, Cash Restructuring & Deferred Payments Cash Taxes Cash Interest Cash CapEx Free Cash Flow before Dividends Meaningful 1Q Progress Toward Free Cash Flow Target Notes: Amounts may not add due to rounding. S
Slide 9: 2023 Guidance
9 2022 Actual 2023 Guidance Growth vs. 2022Prior Current Revenue $4,536 $4,800 – 4,950 No change ~7% Operating Profit $550 $615 – 665 $625 – 675 ~18% Margin 12.1% ~13.1% ~13.3% Adj. EBITDA $788 $855 – 905 $865 – 915 ~13% Margin 17.4% ~18.1% ~18.3% Free Cash Flow $203 $325 – 375 No change ~72% FCF /
Slide 10: Closing and Q&A: Our Strategic Pillars
Closing and Q&A GROWING BRINK’S BY PROVIDING A SUPERIOR CUSTOMER EXPERIENCE AND DRIVING CONTINUOUS IMPROVEMENT OUR STRATEGIC PILLARS e e GROWTH & OPERATIONAL CUSTOMER LOYALTY INNOVATION EXCELLENCE TALENT Put customers. Find new ways to Run the business Position our first create value better team to
Slide 11: Appendix
Appendix
Slide 12: First-Quarter 2023 Results by Segment
12 First-Quarter 2023 Results by Segment ($ millions) $369 $402 2022 2023 $24 $39 2022 2023 6.6% Margin 9.6% Margin $291 $316 2022 2023 $63 $67 2022 2023 21.6% Margin 21.1% Margin $192 $199 2022 2023 $33 $37 2022 2023 17.3% Margin 18.7% Margin Latin America Revenue +8% Op Profit +6% Constant currenc
Slide 13: Capital Allocation Priorities
13 Capital Allocation Priorities Note: Capital allocation priorities not shown in priority order. 1. At midpoint of guidance range. 2. Opex inv estments included in Adjusted EBITDA guidance. 3. Based on mid-point of FCF and Adjusted EBITDA guidance and scheduled debt payments. Disciplined capital al
Slide 14: Net Debt and Leverage
14 $788 $813 $815 3 $831 3 2022 Actual Q1 2023 TTM Actual Net Debt and Leverage Note: See detailed reconciliations of non-GAAP to GAAP results in the Appendix and included in the First Quarter 2023 Earnings Release available in the Quarterly Results section of the Brink’s website www.brinks.com. 1.
Slide 15: 2021 Non-GAAP Results Reconciled to GAAP (1 of 3)
15 2021 Non-GAAP Results Reconciled to GAAP (1 of 3) See slide 17 f or f ootnote explanations. The Brink’s Company and subsidiaries Non-GAAP Reconciliations (In millions) Q1 Revenues: GAAP 977.7$ Non-GAAP 977.7$ Operating profit (loss): GAAP 61.7$ Reorganization and Restructuring(a) 6.6 Acquisitions
Slide 16: 2021 Non-GAAP Results Reconciled to GAAP (2 of 3)
16 2021 Non-GAAP Results Reconciled to GAAP (2 of 3) Amounts may not add due to rounding. See slide 17 f or f ootnote explanations. The Brink’s Company and subsidiaries Non-GAAP Reconciliations (In millions, except for per share amounts) Q1 Income (loss) from continuing operations attributable to Br
Slide 17: 2021 Non-GAAP Results Reconciled to GAAP (3 of 3)
17 2021 Non-GAAP Results Reconciled to GAAP (3 of 3) The Brink’s Company and subsidiaries Non-GAAP Reconciliations (In millions) The 2023 Non-GAAP outlook amounts exclude certain forecasted Non-GAAP adjusting items, such as intangible asset amortization, U.S. retirement plan costs and approved restr
Slide 18: Non-GAAP Reconciliation – Other
18 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
Slide 19: Non-GAAP Reconciliation – Net Debt
19 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