Brink’s Reports Record Second-Quarter Results

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