RICHMOND Va., June 12, 2025 (GLOBE NEWSWIRE) -- The Brink’s Company (NYSE:BCO), a leading global provider of cash and valuables management, digital retail solutions, and ATM managed services (“AMS”), announced today a strategic investment in KAL ATM Software, a world leader in ATM software. This investment marks a milestone in Brink’s AMS strategy, reinforcing its commitment to delivering best-in-class solutions to financial institutions globally. The Brink’s AMS solution is designed to give customers the f ...

Core Insights - Brink's (BCO) international operations are crucial for understanding its financial strength and growth potential, especially given its extensive global presence [1][2] - The company's reliance on international markets can provide insights into its earnings sustainability and growth trajectory [2][10] Revenue Performance - Brink's total revenue for the quarter ending March 2025 was $1.25 billion, reflecting a 0.9% increase from the previous year [4] - Europe contributed $299.1 million, or 23.99% of total revenue, exceeding the consensus estimate of $287 million by 4.22% [5] - Latin America generated $417.6 million, accounting for 33.50% of total revenue, representing a significant surprise of 37.1% over the expected $304.6 million [6] - The Rest of World segment brought in $222.4 million, making up 17.84% of total revenue, also surpassing projections by 12.1% [7] Future Revenue Forecasts - Analysts project total revenue for the current fiscal quarter to reach $1.27 billion, a 1.6% increase from the same quarter last year [8] - Expected contributions from international markets include Europe at $319.1 million (25.1%), Latin America at $320.2 million (25.1%), and Rest of World at $209.5 million (16.5%) [8] - For the full year, total revenue is anticipated to be $5.14 billion, marking a 2.6% increase compared to last year, with specific contributions from Europe ($1.27 billion), Latin America ($1.29 billion), and Rest of World ($869 million) [9] Market Trends and Stock Performance - The company's stock has gained 0.4% over the past month, underperforming the S&P 500's 13.1% increase [13] - Over the last three months, Brink's shares have declined by 4.1%, while the S&P 500 has seen a 2.3% decline [13]

Company Overview - The Brink's Company (NYSE: BCO) is a global provider of secure logistics for cash and valuables, offering digital retail solutions and ATM services [1] - The company employs over 67,000 people and operates in multiple countries [1] Industry Insights - The secure logistics industry is essential for the transportation and management of cash and valuables, indicating a stable demand for services provided by companies like Brink's [1]

Core Viewpoint - The Brink's Co. (NYSE: BCO) is expected to experience growth acceleration, with no fundamental changes to the business model [1] Group 1: Investment Outlook - The previous investment stance on The Brink's Co. was a buy rating, reflecting a bullish growth outlook [1] - The investment strategy focuses on long-term investments while also considering short-term opportunities to uncover alpha [1] - The analysis emphasizes a bottom-up approach, assessing the fundamental strengths and weaknesses of individual companies [1] Group 2: Investment Duration and Goals - The investment duration is medium to long-term, aiming to identify companies with solid fundamentals and sustainable competitive advantages [1] - The goal is to find companies that exhibit growth potential, which aligns with the positive outlook for The Brink's Co. [1]

Group 1 - The Brink's Company reported mixed Q1 2025 results, indicating a need for faster growth in sales and margin improvements [1] - The company is expected to focus on a balanced portfolio strategy that includes growth, value, and dividend-paying stocks [1] Group 2 - The analysis suggests that the company must demonstrate its ability to enhance performance metrics significantly [1] - There is an emphasis on the importance of long-term investment horizons, typically ranging from 5 to 10 years [1]

Financial Data and Key Metrics Changes - The company reported total organic growth of 6% in Q1, at the top end of previous guidance [6] - Adjusted EBITDA was $215 million with a margin of 17.2%, exceeding the high end of Q1 guidance due to strong execution [7] - Earnings per share (EPS) was $1.62, reflecting benefits from share repurchases and a planned increase in the tax rate [7] - Free cash flow conversion was 40%, highlighting progress on accounts receivable collections [7] Business Line Data and Key Metrics Changes - ATM Managed Services and Digital Retail Solutions (AMS DRS) grew over 20% for the fourth consecutive quarter, now representing a quarter of total business [6][8] - Cash and Valuables Management (CVM) grew 1% organically, with strong performance in Global Services contributing to overall growth [18] - The Global Services business saw elevated precious metal movement, leading to improved year-over-year growth [8] Market Data and Key Metrics Changes - North America experienced constant currency growth of 4% and organic growth of 2%, with DRS growth highlighted by new customer onboarding [13] - Latin America reported 7% organic growth, but this was offset by currency devaluation, particularly in Mexico and Argentina [14] - Europe grew revenue by 5% organically, with AMS DRS mix increasing to 42% of total revenue [15] Company Strategy and Development Direction - The company is focused on maximizing growth potential in AMS DRS, expanding margins, and executing a capital allocation framework [7][10] - The strategy includes increasing network density and improving routing flexibility to support profit margin expansion [25] - The company is exploring accretive M&A opportunities that align with its capital allocation framework [31] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's resilience amid economic uncertainty, citing a diversified global footprint and strong customer relationships [24][25] - The outlook for the second quarter includes expectations for continued mid-single-digit organic growth and EBITDA between $200 million and $225 million [10][34] - Management remains cautious about the Global Services business due to slowing growth trends observed in early Q2 [19] Other Important Information - The company repurchased 1.3 million shares at an average price of $87.62, representing about 3% of outstanding shares [9] - A third consecutive annual increase in the quarterly dividend was announced, reflecting a commitment to shareholder returns [9][31] Q&A Session Summary Question: Can you talk about your tariff exposure? - Management indicated no significant direct exposure to tariffs, as most costs and revenues are in the same currency and services are not heavily imported [39][40] Question: Can you discuss pricing trends in Latin America? - Management confirmed that pricing strategies are in place to offset currency devaluations, particularly in highly inflationary markets like Argentina [42][43] Question: What are the drivers for the second quarter margin guidance? - Key drivers include FX impacts, interest income from Argentina, and restructuring actions, with expectations for improved margins in the second half of the year [50][51][55] Question: What is the expected impact of interest income on EBITDA for the full year? - Management expects a headwind of approximately $4 million to $5 million per quarter from reduced interest income [56] Question: What are the growth expectations excluding last year's equipment sales? - Management anticipates continued growth trajectory in DRS AMS, despite a couple of points of headwind from last year's equipment sales [62][63] Question: Why is AMS DRS expected to be more resilient to macro softness? - The larger white space and subscription-based revenue model of AMS DRS provide more consistent revenues compared to traditional CIT business [70][71]

Financial Data and Key Metrics Changes - Brink's reported total organic growth of 6% in Q1, at the top end of previous guidance [6] - Adjusted EBITDA was $215 million with a margin of 17.2%, exceeding the high end of Q1 guidance [7] - Earnings per share (EPS) was $1.62, reflecting benefits from share repurchases and a planned increase in the tax rate [7] - Free cash flow conversion was 40%, highlighting progress on accounts receivable collections [7][11] Business Line Data and Key Metrics Changes - ATM Managed Services and Digital Retail Solutions (AMS DRS) grew over 20% for the fourth consecutive quarter, now representing a quarter of total business [6][8] - Cash and Valuables Management (CVM) grew 1% organically, with strong performance in Global Services [18] - Global Services revenue increased due to elevated precious metal movement, particularly in the Rest of World segment [8][17] Market Data and Key Metrics Changes - North America saw constant currency growth of 4% and organic growth of 2%, with DRS growth highlighted by new customer onboarding [14] - Latin America experienced 7% organic growth, but was negatively impacted by currency devaluation, particularly in Mexico and Argentina [15] - Europe grew revenue by 5% organically, with AMS DRS mix increasing to 42% of total revenue [16] Company Strategy and Development Direction - The company continues to focus on maximizing growth potential in AMS DRS, expanding margins, and executing a focused capital allocation framework [7][11] - Share repurchases and dividend increases are part of the capital allocation strategy, with remaining repurchase capacity of over $180 million [10][32] - The company is well-positioned to capture elevated demand and is exploring accretive M&A opportunities [9][32] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to navigate uncertain macroeconomic conditions, citing a diversified global footprint and strong customer relationships [25][26] - The outlook for the second quarter includes expectations for continued mid-single-digit organic growth and EBITDA between $200 million and $225 million [11][37] - Management remains cautious about the Global Services business due to slowing growth in early Q2 but is optimistic about capturing future opportunities [20][38] Other Important Information - The company repurchased 1.3 million shares at an average price of $87.62, representing about 3% of outstanding shares at year-end 2024 [9][10] - Adjusted EBITDA margins were down 50 basis points year-over-year, impacted by regional revenue mix and less interest income from Argentina [28] Q&A Session Summary Question: Can you talk about your tariff exposure? - Management indicated minimal direct exposure to tariffs, as most costs and revenues are in the same currency and services are not heavily imported [41][42] Question: Can you discuss pricing trends in Latin America? - Management confirmed that pricing strategies are in place to offset currency devaluations, particularly in highly inflationary markets like Argentina [44][45] Question: What are the drivers for the second quarter margin guidance? - Key drivers include FX impacts, Argentina interest income, and restructuring actions, with expectations for improved margins in the second half of the year [51][52][56] Question: How do you expect AMS DRS growth to perform in a softer macro environment? - Management noted that the larger addressable market and subscription-based revenue model of AMS DRS provide resilience against economic downturns [70][72] Question: What trends are observed in the BGS segment post-Q1? - Management reported a slowdown in shipment volumes in April compared to Q1, with expectations for mid-single-digit organic growth moving forward [75][76]

CONFIDENTIAL. FOR INTERNAL USE ONLY – DO NOT DUPLICATE OR DISTRIBUTE. 1 First-Quarter 2025 Earnings May 12, 2025 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-looking information. Forward-looking information in these materials includes, but is not limited to ...

Financial Performance - Consolidated revenues for Q1 2025 were $1,246.7 million, a 1% increase from $1,236.1 million in Q1 2024, with organic growth contributing 6%[162][163] - Operating profit decreased by $1.8 million to $119.1 million, resulting in an operating profit margin of 9.6%, down from 9.8%[165][172] - Non-GAAP operating profit increased by $5.6 million to $150.6 million, with a non-GAAP operating profit margin of 12.1%, up from 11.7%[169][170] - Income from continuing operations attributable to Brink's shareholders increased by $2.3 million to $51.6 million, with diluted EPS rising to $1.19 from $1.09[165][169] - Adjusted EBITDA decreased by 1% to $215.0 million, primarily due to lower interest and other nonoperating income[170] - Non-GAAP operating profit for Q1 2025 was $150.6 million, compared to $145.0 million in Q1 2024, reflecting a year-over-year increase of 3.9%[224] - GAAP income from continuing operations attributable to Brink's for Q1 2025 was $51.6 million, up from $49.3 million in Q1 2024, representing a growth of 4.6%[224] - Non-GAAP diluted EPS for Q1 2025 was $1.62, slightly down from $1.65 in Q1 2024, indicating a decrease of 1.8%[225] Revenue by Region - Revenues in North America increased by 3% ($12.1 million), driven by a 2% organic increase and acquisitions, despite a $2.1 million negative currency impact[176] - Latin America experienced an 8% revenue decrease ($27.1 million) primarily due to unfavorable currency impacts of $54.4 million, offset by a 7% organic increase[178] - Europe saw a 3% revenue increase ($7.7 million) due to a 5% organic growth, although currency exchange rates negatively impacted revenues by $8.2 million[180] - The Rest of World segment reported a 9% revenue increase ($17.9 million) driven entirely by organic growth, with operating profit up 22% ($9.0 million)[182] Expenses and Costs - Selling, general and administrative expenses decreased by 7% to $186.3 million, attributed to lower net compensation costs and professional fees[164] - Corporate expenses for Q1 2025 decreased by $1.7 million to $31.7 million, primarily due to lower net compensation costs of $4.1 million and lower professional fees of $3.0 million[187] - Total other items not allocated to segments increased by 31% to $31.5 million in Q1 2025, driven by a 16% rise in acquisitions and dispositions costs to $18.5 million and a significant increase in Argentina's highly inflationary impact to $6.3 million[189] - Interest expense rose by 3% to $57.5 million in Q1 2025, attributed to higher interest rates on corporate debt and increased borrowing levels[207] - The company incurred $5.1 million in transformation initiative expenses in Q1 2025, aimed at accelerating growth and driving margin expansion[195] - Amortization expense for acquisition-related intangible assets was $14.4 million in Q1 2025, with additional restructuring costs related to acquisitions amounting to $2.0 million[198] Tax and Income - The effective tax rate for Q1 2025 was 22.4%, down from 33.4% in Q1 2024, with a provision for income taxes of $15.6 million[209] - Foreign currency transaction gains in Q1 2025 were $10.9 million, a favorable change compared to a loss of $5.5 million in Q1 2024[206] - Net income attributable to noncontrolling interests decreased by 21% to $2.3 million in Q1 2025, reflecting lower operating results from certain subsidiaries[210] - The company recognized $6.3 million in pre-tax charges related to highly inflationary accounting in Argentina during Q1 2025, including currency remeasurement losses of $4.8 million[194] Cash Flow and Investments - Cash flows from operating activities decreased by $124.1 million in Q1 2025 compared to Q1 2024, highlighting a significant decline in operational cash generation[228] - Free cash flow before dividends decreased by $40.3 million in Q1 2025, attributed to changes in working capital and higher capital expenditures of $58.9 million compared to $52.2 million in Q1 2024[231] - Cash used for investing activities increased by $2.9 million in Q1 2025 compared to Q1 2024, suggesting a slight uptick in investment spending[228] - Total capital expenditures for Q1 2025 were $58.9 million, with significant investments in cash devices, information technology, and armored vehicles[236] - Cash used in financing activities increased by $122.8 million year-over-year, with net cash used of $124.1 million in Q1 2025 compared to $1.3 million in Q1 2024[238] Shareholder Returns - The company repurchased 514,795 shares for $44.8 million at an average price of $86.97 per share during Q1 2025, with $252 million remaining under the share repurchase program[248] - Dividends paid to shareholders increased to $10.4 million in Q1 2025 from $9.8 million in Q1 2024, reflecting a dividend of $0.2425 per share[239] Debt and Liquidity - As of March 31, 2025, total debt was $3,881.6 million, with net debt increasing to $2,776.5 million compared to $2,582.2 million at the end of 2024[240][241] - The company had $531 million available under its Revolving Credit Facility as of March 31, 2025, indicating strong liquidity to meet operational needs[243] Pension and Retirement Plans - The primary U.S. pension plan's beginning funded status for 2024 was $(10.9) million, projected to improve to $49.0 million by 2029[250] - The net periodic pension credit for the primary U.S. pension plan is estimated at $16.0 million for 2024, decreasing to $9.6 million by 2029[250] - UMWA plans had a beginning funded status of $(77.9) million in 2024, with no expected contributions until 2040[254] - The Black Lung plans had a beginning funded status of $(74.4) million in 2024, with projected payments from Brink's increasing from $8.0 million in 2024 to $6.4 million by 2029[259] - Total projected expenses related to U.S. retirement liabilities are expected to be $(11.0) million in 2024, improving to $5.2 million by 2029[257] - Payments from U.S. plans to participants totaled $73.1 million in 2024, projected to decrease to $68.1 million by 2029[259] - The company does not expect to make contributions to the primary U.S. pension plan until 2027[253] - Approximately 10,300 beneficiaries are enrolled in the primary U.S. pension plan, with 2,200 in the UMWA plans and 700 in the Black Lung plans as of December 31, 2024[252][254][255] Risk Management - The company has not experienced any material changes in market risk exposures as of March 31, 2025[262] - The company’s risk management program aims to mitigate the adverse effects of market volatility on operating results[262]

Revenue and Growth - Revenue for Q1 2025 was $1,247 million, reflecting a 1% increase year-over-year, with 6% organic growth[2] - ATM managed services and digital retail solutions experienced over 20% organic growth[1] - For Q2 2025, revenue guidance is set between $1,250 million and $1,300 million, with adjusted EBITDA expected to be between $205 million and $225 million[6] - The company anticipates mid-single digits organic revenue growth for 2025, with mid to high teens growth in AMS and DRS[6] - Revenues for Q1 2025 totaled $1,247 million, a slight increase of 1% compared to Q1 2024, with North America contributing $418 million, up 3%[17] - Latin America experienced a revenue decline of 8% to $308 million in Q1 2025, primarily due to a $54 million impact from dispositions[17] - The Rest of World segment saw a revenue increase of 9% to $222 million in Q1 2025, with operating profit rising 22% to $50 million[17] Profitability and Margins - Operating profit margin was 9.6%, a decrease of 20 basis points compared to the previous year, while adjusted EBITDA margin was 12.1%, an increase of 40 basis points[2] - Operating profit for Q1 2025 was $119 million, a slight decrease of 1% compared to the previous year[2] - The operating margin percentage for Q1 2025 was 9.6%, compared to 9.8% in Q1 2024, reflecting slight margin compression[22] - Non-GAAP operating profit for the three months ended March 31, 2025, was $101.0 million, with a non-GAAP effective income tax rate of 27.8%[48] - GAAP operating profit for Q1 2025 is $119.1 million, compared to $120.9 million in Q1 2024, reflecting a slight decrease[49] - Adjusted EBITDA for Q1 2025 is $215.0 million, compared to $218.2 million in Q1 2024, showing a decrease of 1.0%[49] Shareholder Returns and Cash Flow - The company repurchased over 1.3 million shares year-to-date, nearly three times the amount from the prior year[1] - Free cash flow conversion is projected to be between 40% and 45%, with over 50% of free cash flow expected to be returned to shareholders[6] - Free cash flow before dividends for Q1 2025 is $(102.3) million, a significant decline from $399.9 million in Q1 2024[54] - The company reported a cash flow from operating activities of $(60.2) million for Q1 2025, down from $63.9 million in Q1 2024[54] Income and Expenses - Net income for Q1 2025 was $53.9 million, a 3.3% increase from $52.2 million in Q1 2024[13] - Corporate expenses for Q1 2025 were reported at $(32) million, a decrease of 5% compared to $(33) million in Q1 2024[17] - Amortization expense for acquisition-related intangible assets was $14.4 million in Q1 2025, with additional restructuring costs of $2.0 million related to acquisitions[31] - The company recognized $34.2 million in charges under the 2022 Global Restructuring Plan, with actions substantially completed in 2024[27] Taxation and Regulatory Matters - The full-year non-GAAP effective tax rate is estimated at 27.8% for 2025, compared to 23.2% for 2024, indicating an increase in tax burden[52] - In 2024, the company accrued $45.7 million in connection with DOJ and FinCEN investigations, with an additional $0.9 million accrued in the first quarter of 2025[34] - The company recognized an estimated loss of $9.5 million related to a Chilean antitrust investigation, with additional amounts recognized in subsequent years due to currency rate changes[35] Transformation and Strategic Initiatives - The company initiated a multi-year transformation program in 2023, incurring $28.4 million in expenses in 2024 and an additional $5.1 million in the first three months of 2025[33] - The transformation initiatives are aimed at standardizing commercial and operational systems to drive margin expansion and operational excellence[33] - The company has excluded nonrecurring charges from its internal performance evaluations, indicating a focus on core operating results[40] Global Presence and Economic Impact - The company operates in 51 countries, serving customers in over 100 countries, indicating a strong global presence[18] - The impact of currency devaluations in Argentina is reflected in the financial results, with adjustments made for non-GAAP reporting[42] - The impact of Argentina's highly inflationary accounting resulted in a non-GAAP adjustment of $1.0 million for losses in Q1 2025[53]