RICHMOND, Va., Aug. 03, 2022 (GLOBE NEWSWIRE) — The Brink’s Company (NYSE:BCO), the global leader in total cash management, route-based secure logistics and payment solutions, today announced second-quarter results.
Mark Eubanks, president and CEO, said: “Our second-quarter and year-to-date results include double-digit organic growth in revenue, operating profit, adjusted EBITDA and EPS. We achieved these results in a macro environment that continues to be challenging, clearly demonstrating the resiliency of our business. Given our strong start to the year, the ongoing reopening of global economies, and our growth and productivity initiatives, we expect continued momentum in the second half and are affirming our full-year guidance.” (See page 2 for summary of 2022 guidance.)
Second-quarter results are summarized in the following table.
(In millions, except for per share amounts) | Second Quarter 2022 (vs. 2021) | ||||||||||||
GAAP | Change | Non-GAAP | Change | Constant Currency Change(b) |
|||||||||
Revenue | $ | 1,134 | 8% | $ | 1,134 | 8% | 13% | ||||||
Operating Profit | $ | 97 | 32% | $ | 124 | 12% | 18% | ||||||
Operating Margin | 8.5 | % | 150 bps | 10.9 | % | 40 bps | 50 bps | ||||||
Net Income / Adjusted EBITDA(a) | $ | 35 | 47% | $ | 187 | 13% | 17% | ||||||
EPS | $ | 0.73 | 55% | $ | 1.29 | 12% | 20% |
(a) The non-GAAP financial metric, adjusted EBITDA, is presented with its corresponding GAAP metric, net income attributable to Brink’s.
(b) Constant currency represents 2022 Non-GAAP results at 2021 exchange rates.
2022 Guidance (Unaudited)
(In millions, except for percentages and per share amounts)
2022 GAAP Outlook(b) |
Reconciling Items(a) |
2022 Non-GAAP Outlook(a) |
Non-GAAP % Change vs. 2021 |
|||||
Revenues | $ | 4,520 – 4,670 | — | 4,520 – 4,670 | 8 – 11% | |||
Operating profit | 425 – 460 | 120 | 545 – 580 | 16 – 23% | ||||
EPS from continuing operations attributable to Brink’s | $ | 4.30 – 4.85 | ~1.18 | 5.50 – 6.00 | 16 – 26% | |||
Operating profit margin | 9.4 – 9.9% | ~2.6% | 12.1 – 12.4% | 90 – 120 bps | ||||
Free cash flow before dividends(c) | 280 – 315 | 15 – 29% | ||||||
Adjusted EBITDA | 755 – 790 | 11 – 16% | ||||||
Adjusted EBITDA margin | 16.7 – 16.9% | 40 – 60 bps |
Amounts may not add due to rounding
(a) The 2022 Non-GAAP outlook amounts exclude certain forecasted Non-GAAP adjusting items, such as intangible asset amortization and U.S. retirement plan costs. We have not forecasted the impact of highly inflationary accounting on our Argentina operations in 2022 or other potential Non-GAAP adjusting items for which the timing and amounts are currently under review, such as future restructuring actions. We have also not forecasted changes in cash held for customer obligations or proceeds from the sale of property, equipment and investments in 2022. The 2022 Non-GAAP outlook amounts for operating profit, EPS from continuing operations, free cash flow before dividends and Adjusted EBITDA cannot be reconciled to GAAP without unreasonable effort. We cannot reconcile these amounts to GAAP because we are unable to accurately forecast the impact of highly inflationary accounting on our Argentina operations in 2022 or other potential Non-GAAP adjusting items for which the timing and amounts are currently under review, such as future restructuring actions. We are also unable to forecast changes in cash held for customer obligations or proceeds from the sale of property, equipment and investments in 2022.
(b) The 2022 GAAP outlook excludes any forecasted impact from highly inflationary accounting on our Argentina operations as well as other potential Non-GAAP adjusting items for which the timing and amounts are currently under review, such as future restructuring actions.
(c) Excludes our initial investment in France to support the take-over of the BPCE ATM network.
The Brink’s Company and subsidiaries
(In millions, except for per share amounts) (Unaudited)
Second-Quarter 2022 vs. 2021
GAAP | Organic | Acquisitions / | % Change | ||||||||||||||||||
2Q’21 | Change | Dispositions(a) | Currency(b) | 2Q’22 | Total | Organic | |||||||||||||||
Revenues: | |||||||||||||||||||||
North America | $ | 357 | 44 | 3 | (1 | ) | 402 | 13 | 12 | ||||||||||||
Latin America | 273 | 44 | 1 | (12 | ) | 306 | 12 | 16 | |||||||||||||
Europe | 231 | 25 | 1 | (30 | ) | 227 | (2 | ) | 11 | ||||||||||||
Rest of World | 188 | 23 | — | (12 | ) | 199 | 6 | 12 | |||||||||||||
Segment revenues(c) | $ | 1,049 | 135 | 4 | (54 | ) | 1,134 | 8 | 13 | ||||||||||||
Revenues – GAAP | $ | 1,049 | 135 | 4 | (54 | ) | 1,134 | 8 | 13 | ||||||||||||
Operating profit: | |||||||||||||||||||||
North America | $ | 41 | (8 | ) | 1 | — | 34 | (17 | ) | (18 | ) | ||||||||||
Latin America | 57 | 12 | — | (5 | ) | 65 | 13 | 21 | |||||||||||||
Europe | 19 | 6 | — | (3 | ) | 22 | 20 | 34 | |||||||||||||
Rest of World | 32 | 10 | — | (2 | ) | 40 | 24 | 31 | |||||||||||||
Segment operating profit | 149 | 21 | 1 | (10 | ) | 161 | 8 | 14 | |||||||||||||
Corporate(d) | (38 | ) | (2 | ) | — | 4 | (37 | ) | (4 | ) | 5 | ||||||||||
Operating profit – non-GAAP | $ | 111 | 19 | 1 | (6 | ) | 124 | 12 | 17 | ||||||||||||
Other items not allocated to segments(e) | (37 | ) | 11 | 5 | (6 | ) | (28 | ) | (26 | ) | (29 | ) | |||||||||
Operating profit – GAAP | $ | 73 | 30 | 6 | (12 | ) | 97 | 32 | 41 | ||||||||||||
GAAP interest expense | (28 | ) | (32 | ) | 15 | ||||||||||||||||
GAAP interest and other income (expense) | 5 | 3 | (26 | ) | |||||||||||||||||
GAAP provision for income taxes | 23 | 29 | 29 | ||||||||||||||||||
GAAP noncontrolling interests | 3 | 3 | — | ||||||||||||||||||
GAAP income from continuing operations(f) | 24 | 35 | 47 | ||||||||||||||||||
GAAP EPS(f) | $ | 0.47 | 0.73 | 55 | |||||||||||||||||
GAAP weighted-average diluted shares | 50.5 | 47.8 | (5 | ) | |||||||||||||||||
Non-GAAP(g) | Organic | Acquisitions / | % Change | ||||||||||||||||
2Q’21 | Change | Dispositions(a) | Currency(b) | 2Q’22 | Total | Organic | |||||||||||||
Segment revenues – GAAP/non-GAAP | $ | 1,049 | 135 | 4 | (54 | ) | 1,134 | 8 | 13 | ||||||||||
Non-GAAP operating profit | 111 | 19 | 1 | (6 | ) | 124 | 12 | 17 | |||||||||||
Non-GAAP interest expense | (28 | ) | (32 | ) | 16 | ||||||||||||||
Non-GAAP interest and other income (expense) | 10 | 4 | (56 | ) | |||||||||||||||
Non-GAAP provision for income taxes | 31 | 31 | — | ||||||||||||||||
Non-GAAP noncontrolling interests | 4 | 3 | (14 | ) | |||||||||||||||
Non-GAAP income from continuing operations(f) | 58 | 62 | 6 | ||||||||||||||||
Non-GAAP EPS(f) | $ | 1.15 | 1.29 | 12 | |||||||||||||||
Non-GAAP weighted-average diluted shares | 50.5 | 47.8 | (5 | ) | |||||||||||||||
Amounts may not add due to rounding.
(a) Non-GAAP amounts include the impact of prior year comparable period results for acquired and disposed businesses. GAAP results also include the impact of acquisition-related intangible amortization, restructuring and other charges, and disposition related gains/losses.
(b) The amounts in the “Currency” column consist of the effects of Argentina devaluations under highly inflationary accounting and the sum of monthly currency changes. Monthly currency changes represent the accumulation throughout the year of the impact on current period results from changes in foreign currency rates from the prior year period.
(c) Segment revenues equal our total reported non-GAAP revenues.
(d) Corporate expenses are not allocated to segment results. Corporate expenses include salaries and other costs to manage the global business and to perform activities required of public companies.
(e) See pages 7-8 for more information.
(f) Attributable to Brink’s.
(g) Non-GAAP results are reconciled to applicable GAAP results on pages 9-12.
(h) As disclosed in the first quarter of 2021, an accrual adjustment was made that resulted in a positive $12.3 million for the North America segment with a corresponding offset to Corporate expense, resulting in no impact to consolidated operating profit for the quarter.
The Brink’s Company and subsidiaries
(In millions, except for per share amounts) (Unaudited)
Six Months Ended June 30, 2022 vs. 2021
GAAP | Organic | Acquisitions / | % Change | ||||||||||||||||||
2021 | Change | Dispositions(a) | Currency(b) | 2022 | Total | Organic | |||||||||||||||
Revenues: | |||||||||||||||||||||
North America | $ | 674 | 62 | 36 | (1 | ) | 770 | 14 | 9 | ||||||||||||
Latin America | 543 | 77 | 2 | (24 | ) | 598 | 10 | 14 | |||||||||||||
Europe | 445 | 47 | 3 | (46 | ) | 449 | 1 | 11 | |||||||||||||
Rest of World | 365 | 36 | 6 | (16 | ) | 391 | 7 | 10 | |||||||||||||
Segment revenues(c) | $ | 2,027 | 222 | 47 | (87 | ) | 2,208 | 9 | 11 | ||||||||||||
Revenues – GAAP | $ | 2,027 | 222 | 47 | (87 | ) | 2,208 | 9 | 11 | ||||||||||||
Operating profit: | |||||||||||||||||||||
North America(h) | $ | 73 | (21 | ) | 6 | — | 59 | (20 | ) | (29 | ) | ||||||||||
Latin America | 116 | 21 | — | (9 | ) | 128 | 10 | 18 | |||||||||||||
Europe | 29 | 12 | — | (4 | ) | 37 | 27 | 39 | |||||||||||||
Rest of World | 62 | 12 | 1 | (3 | ) | 73 | 17 | 20 | |||||||||||||
Segment operating profit | 281 | 23 | 8 | (16 | ) | 296 | 5 | 8 | |||||||||||||
Corporate(d)(h) | (80 | ) | 14 | — | 6 | (60 | ) | (25 | ) | (18 | ) | ||||||||||
Operating profit – non-GAAP | $ | 201 | 38 | 8 | (10 | ) | 236 | 18 | 19 | ||||||||||||
Other items not allocated to segments(e) | (66 | ) | (12 | ) | 8 | (8 | ) | (77 | ) | 18 | 18 | ||||||||||
Operating profit – GAAP | $ | 135 | 26 | 16 | (18 | ) | 159 | 18 | 19 | ||||||||||||
GAAP interest expense | (55 | ) | (60 | ) | 9 | ||||||||||||||||
GAAP interest and other income (expense) | (1 | ) | 2 | fav | |||||||||||||||||
GAAP provision (benefit) for income taxes | 36 | (12 | ) | fav | |||||||||||||||||
GAAP noncontrolling interests | 6 | 6 | 4 | ||||||||||||||||||
GAAP income from continuing operations(f) | 37 | 107 | fav | ||||||||||||||||||
GAAP EPS(f) | $ | 0.73 | 2.22 | fav | |||||||||||||||||
GAAP weighted-average diluted shares | 50.5 | 48.0 | (5 | ) | |||||||||||||||||
Non-GAAP(g) | Organic | Acquisitions / | % Change | ||||||||||||||||
2021 | Change | Dispositions(a) | Currency(b) | 2022 | Total | Organic | |||||||||||||
Segment revenues – GAAP/non-GAAP | $ | 2,027 | 222 | 47 | (87 | ) | 2,208 | 9 | 11 | ||||||||||
Non-GAAP operating profit | 201 | 38 | 8 | (10 | ) | 236 | 18 | 19 | |||||||||||
Non-GAAP interest expense | (55 | ) | (60 | ) | 9 | ||||||||||||||
Non-GAAP interest and other income (expense) | 11 | 6 | (46 | ) | |||||||||||||||
Non-GAAP provision for income taxes | 53 | 59 | 12 | ||||||||||||||||
Non-GAAP noncontrolling interests | 6 | 6 | (5 | ) | |||||||||||||||
Non-GAAP income from continuing operations(f) | 98 | 117 | 19 | ||||||||||||||||
Non-GAAP EPS(f) | $ | 1.94 | 2.44 | 26 | |||||||||||||||
Non-GAAP weighted-average diluted shares | 50.5 | 48.0 | (5 | ) | |||||||||||||||
Amounts may not add due to rounding.
See page 3 for footnote explanations.
The Brink’s Company and subsidiaries
(In millions) (Unaudited)
Selected Items – Condensed Consolidated Balance Sheets
December 31, 2021 | June 30, 2022 | |||
Assets | ||||
Cash and cash equivalents | $ | 710.3 | 743.3 | |
Restricted cash | 376.4 | 358.6 | ||
Accounts receivable, net | 701.8 | 824.6 | ||
Right-of-use assets, net | 299.1 | 312.5 | ||
Property and equipment, net | 865.6 | 850.0 | ||
Goodwill and intangibles | 1,902.9 | 1,849.7 | ||
Deferred tax assets, net | 239.4 | 288.4 | ||
Other | 471.2 | 596.0 | ||
Total assets | $ | 5,566.7 | 5,823.1 | |
Liabilities and Equity | ||||
Accounts payable | 211.2 | 222.0 | ||
Debt | 2,966.7 | 3,159.1 | ||
Retirement benefits | 541.5 | 515.9 | ||
Accrued liabilities | 877.3 | 867.4 | ||
Lease liabilities | 241.8 | 259.2 | ||
Other | 475.6 | 432.8 | ||
Total liabilities | 5,314.1 | 5,456.4 | ||
Equity | 252.6 | 366.7 | ||
Total liabilities and equity | $ | 5,566.7 | 5,823.1 |
Selected Items – Condensed Consolidated Statements of Cash Flows
Six Months Ended June 30, |
||||||
2021 | 2022 | |||||
Net cash provided by operating activities | $ | 81.0 | 41.1 | |||
Net cash used by investing activities | (379.9 | ) | (102.5 | ) | ||
Net cash provided by financing activities | 314.4 | 136.5 | ||||
Effect of exchange rate changes on cash | (17.0 | ) | (59.9 | ) | ||
Cash, cash equivalents and restricted cash: | ||||||
(Decrease) Increase | (1.5 | ) | 15.2 | |||
Balance at beginning of period | 942.9 | 1,086.7 | ||||
Balance at end of period | $ | 941.4 | 1,101.9 | |||
Supplemental Cash Flow Information | ||||||
Capital expenditures | $ | (73.2 | ) | (83.4 | ) | |
Acquisitions, net of cash acquired | (310.2 | ) | (14.0 | ) | ||
Depreciation and amortization | 116.5 | 121.3 | ||||
Cash paid for income taxes, net | (38.9 | ) | (70.5 | ) | ||
About The Brink’s Company
The Brink’s Company (NYSE:BCO) is the global leader in total cash management, route-based secure logistics and payment solutions including cash-in-transit, ATM services, cash management services (including vault outsourcing, money processing and intelligent safe services), and international transportation of valuables. Our customers include financial institutions, retailers, government agencies, mints, jewelers and other commercial operations. Our global network of operations in 53 countries serves customers in more than 100 countries. For more information, please visit our website at www.brinks.com