RICHMOND, Va., May 10, 2023 (GLOBE NEWSWIRE) — The Brink’s Company (NYSE:BCO), the global leader in total cash management, route-based secure logistics and payment solutions, today announced first-quarter results.
Mark Eubanks, president and CEO, said: “Our strong performance in the first quarter demonstrates continued positive momentum as we execute on our strategic priorities. Double-digit revenue growth was highlighted by robust gains in digital retail solutions and ATM managed services, as well as strong pricing discipline across the business. The highest non-GAAP first quarter operating margin in recent history reflects higher levels of productivity including labor improvements in the U.S., benefits from the 2022 global restructuring plan and improved revenue mix.
“We remain focused on generating revenue and profit growth by providing a superior customer experience and driving continuous improvement across our operations. We have increased our 2023 profit expectations to reflect further restructuring actions and are confident in our outlook as we capitalize on the strong start to the year and work to deliver results that create long-term shareholder value.”
First-quarter results are summarized in the following table:
| (In millions, except for per share amounts) | First-Quarter 2023 (vs. 2022) | |||||||||||||||
| GAAP | Change | Non-GAAP | Change | Constant Currency Change(b) | ||||||||||||
| Revenue | $ | 1,185 | 10 | % | $ | 1,185 | 10 | % | 16 | % | ||||||
| Operating Profit | $ | 80 | 28 | % | $ | 127 | 14 | % | 24 | % | ||||||
| Operating Margin | 6.7 | % | 90 bps | 10.7 | % | 30 bps | 80 bps | |||||||||
| Net Income / Adjusted EBITDA(a) | $ | 15 | (79 | %) | $ | 191 | 15 | % | 23 | % | ||||||
| EPS | $ | 0.30 | (80 | %) | $ | 1.16 | (3 | %) | 12 | % | ||||||
(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 2023 Non-GAAP results at 2022 exchange rates.
2023 Guidance (Unaudited)
(In millions, except for percentages and per share amounts)
The 2023 Non-GAAP outlook amounts cannot be reconciled to GAAP without unreasonable effort, as we are unable to accurately forecast certain amounts that are necessary for reconciliation, including the impact of highly inflationary accounting on our Argentina operations in 2023 or other potential Non-GAAP adjusting items for which the timing and amounts are currently under review, such as future restructuring actions and the impact of possible future acquisitions. We are also unable to forecast changes in cash held for customer obligations or proceeds from the sale of property, equipment and investments in 2023. The 2023 Non-GAAP outlook reflects management’s current assumptions regarding variables that are difficult to accurately forecast, including those discussed in the Risk Factors set forth in the Company’s filings with the United States Securities and Exchange Commission.
| Prior 2023 Non-GAAP Outlook |
Change | Current 2023 Non-GAAP Outlook |
||||||
| Revenues | $ | 4,800 – 4,950 | — | 4,800 – 4,950 | ||||
| Operating profit | $ | 615 – 665 | 10 | 625 – 675 | ||||
| EPS from continuing operations attributable to Brink’s | $ | 6.30 – 7.00 | 0.15 | 6.45 – 7.15 | ||||
| Operating profit margin | ~13.1% | ~0.2% | ~13.3% | |||||
| Free cash flow before dividends | $ | 325 – 375 | — | 325 – 375 | ||||
| Adjusted EBITDA | $ | 855 – 905 | 10 | 865 – 915 | ||||
| Adjusted EBITDA margin | ~18.1% | ~0.2% | ~18.3% | |||||
The Brink’s Company and subsidiaries
(In millions) (Unaudited)
Selected Items – Condensed Consolidated Balance Sheets
| December 31, 2022 | March 31, 2023 | |||
| Assets | ||||
| Cash and cash equivalents | $ | 972.0 | 816.6 | |
| Restricted cash | 438.5 | 401.8 | ||
| Accounts receivable, net | 862.2 | 876.9 | ||
| Right-of-use assets, net | 314.5 | 322.3 | ||
| Property and equipment, net | 935.3 | 953.5 | ||
| Goodwill and intangibles | 1,986.4 | 1,985.9 | ||
| Deferred tax assets, net | 246.2 | 249.2 | ||
| Other | 610.9 | 646.9 | ||
| Total assets | $ | 6,366.0 | 6,253.1 | |
| Liabilities and Equity | ||||
| Accounts payable | 296.5 | 248.7 | ||
| Debt | 3,402.8 | 3,370.9 | ||
| Retirement benefits | 305.5 | 301.4 | ||
| Accrued liabilities | 1,019.4 | 985.7 | ||
| Lease liabilities | 249.9 | 257.3 | ||
| Other | 521.7 | 484.1 | ||
| Total liabilities | 5,795.8 | 5,648.1 | ||
| Equity | 570.2 | 605.0 | ||
| Total liabilities and equity | $ | 6,366.0 | 6,253.1 | |
Selected Items – Condensed Consolidated Statements of Cash Flows
| Three Months Ended March 31, |
||||||
| 2022 | 2023 | |||||
| Net cash used by operating activities | $ | (76.3 | ) | (45.1 | ) | |
| Net cash used by investing activities | (52.0 | ) | (57.6 | ) | ||
| Net cash provided (used) by financing activities | 98.8 | (97.1 | ) | |||
| Effect of exchange rate changes on cash | (11.0 | ) | 7.7 | |||
| Cash, cash equivalents and restricted cash: | ||||||
| Decrease | (40.5 | ) | (192.1 | ) | ||
| Balance at beginning of period | 1,086.7 | 1,410.5 | ||||
| Balance at end of period | $ | 1,046.2 | 1,218.4 | |||
| Supplemental Cash Flow Information | ||||||
| Capital expenditures | $ | (37.0 | ) | (45.2 | ) | |
| Acquisitions, net of cash acquired | (11.4 | ) | — | |||
| Depreciation and amortization | 61.0 | 67.6 | ||||
| Cash paid for income taxes, net | (31.3 | ) | (23.3 | ) | ||
The Brink’s Company and subsidiaries
(In millions, except for per share amounts) (Unaudited)
First-Quarter 2023 vs. 2022
| GAAP | Organic | Acquisitions / | % Change | |||||||||||||||||||
| 1Q’22 | Change | Dispositions(a) | Currency(b) | 1Q’23 | Total | Organic | ||||||||||||||||
| Revenues: | ||||||||||||||||||||||
| North America | $ | 369 | 34 | 1 | (2 | ) | 402 | 9 | 9 | |||||||||||||
| Latin America | 291 | 56 | 1 | (33 | ) | 316 | 8 | 19 | ||||||||||||||
| Europe | 222 | 25 | 36 | (14 | ) | 269 | 21 | 11 | ||||||||||||||
| Rest of World | 192 | 21 | (2 | ) | (11 | ) | 199 | 4 | 11 | |||||||||||||
| Segment revenues(c) | $ | 1,074 | 135 | 36 | (60 | ) | 1,185 | 10 | 13 | |||||||||||||
| Revenues – GAAP | $ | 1,074 | 135 | 36 | (60 | ) | 1,185 | 10 | 13 | |||||||||||||
| Operating profit: | ||||||||||||||||||||||
| North America | $ | 24 | 14 | — | — | 39 | 58 | 57 | ||||||||||||||
| Latin America | 63 | 16 | — | (12 | ) | 67 | 6 | 25 | ||||||||||||||
| Europe | 15 | 6 | 2 | (1 | ) | 22 | 49 | 39 | ||||||||||||||
| Rest of World | 33 | 6 | — | (2 | ) | 37 | 13 | 18 | ||||||||||||||
| Segment operating profit | 135 | 41 | 3 | (15 | ) | 165 | 22 | 30 | ||||||||||||||
| Corporate(d) | (23 | ) | (17 | ) | — | 3 | (37 | ) | 60 | 73 | ||||||||||||
| Operating profit – non-GAAP | $ | 112 | 24 | 3 | (12 | ) | 127 | 14 | 22 | |||||||||||||
| Other items not allocated to segments(e) | (50 | ) | 14 | (7 | ) | (4 | ) | (48 | ) | (4 | ) | (28 | ) | |||||||||
| Operating profit – GAAP | $ | 62 | 38 | (4 | ) | (16 | ) | 80 | 28 | 61 | ||||||||||||
| GAAP interest expense | (28 | ) | (47 | ) | 67 | |||||||||||||||||
| GAAP interest and other income (expense) | (1 | ) | 5 | fav | ||||||||||||||||||
| GAAP provision (benefit) for income taxes | (41 | ) | 20 | unfav | ||||||||||||||||||
| GAAP noncontrolling interests | 3 | 3 | 14 | |||||||||||||||||||
| GAAP income from continuing operations(f) | 71 | 14 | (80 | ) | ||||||||||||||||||
| GAAP EPS(f) | $ | 1.48 | 0.30 | (80 | ) | |||||||||||||||||
| GAAP weighted-average diluted shares | 48.3 | 47.4 | (2 | ) | ||||||||||||||||||
| Non-GAAP(g) | Organic | Acquisitions / | % Change | ||||||||||||||||
| 1Q’22 | Change | Dispositions(a) | Currency(b) | 1Q’23 | Total | Organic | |||||||||||||
| Segment revenues – GAAP/non-GAAP | $ | 1,074 | 135 | 36 | (60 | ) | 1,185 | 10 | 13 | ||||||||||
| Non-GAAP operating profit | 112 | 24 | 3 | (12 | ) | 127 | 14 | 22 | |||||||||||
| Non-GAAP interest expense | (28 | ) | (46 | ) | 69 | ||||||||||||||
| Non-GAAP interest and other income (expense) | 2 | 3 | 94 | ||||||||||||||||
| Non-GAAP provision for income taxes | 26 | 26 | — | ||||||||||||||||
| Non-GAAP noncontrolling interests | 3 | 3 | 14 | ||||||||||||||||
| Non-GAAP income from continuing operations(f) | 57 | 55 | (4 | ) | |||||||||||||||
| Non-GAAP EPS(f) | $ | 1.19 | 1.16 | (3 | ) | ||||||||||||||
| Non-GAAP weighted-average diluted shares | 48.3 | 47.4 | (2 | ) | |||||||||||||||
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 6-8 for more information.
(f) Attributable to Brink’s.
(g) Non-GAAP results are reconciled to applicable GAAP results on pages 9-12.
About The Brink’s Company
The Brink’s Company (NYSE:BCO) is a leading global provider of cash and valuables management, digital retail solutions, and ATM managed services. Our customers include financial institutions, retailers, government agencies, mints, jewelers and other commercial operations. Our network of operations in 52 countries serves customers in more than 100 countries. For more information, please visit our website at www.brinks.com
