Fourth-Quarter 2023 Earnings February 29, 2024 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, information regarding: 2024 outlook, including revenue, adjusted ...

The Brink’s Company (NYSE:BCO) Q4 2023 Earnings Conference Call February 29, 2024 8:30 AM ET Company Participants Jesse Jenkins – Vice President of Investor Relations Mark Eubanks – Chief Executive Officer Kurt McMaken – Chief Financial Officer Conference Call Participants George Tong – Goldman Sachs Tobey Sommer – Truist Securities Operator Good day, and welcome to the Brink’s Company’s Fourth Quarter and Full Year 2023 Earnings Call. This morning, Brink’s issued a press release detailing its fourth quarte ...

PART I [Item 1. Business](index=4&type=section&id=Item%201.%20Business) The company provides global cash management, digital retail solutions, and ATM services, pursuing growth through strategic initiatives, acquisitions, and restructuring - The Brink's Company is a leading global provider of cash and valuables management, digital retail solutions, and ATM managed services, serving customers in over 100 countries with approximately **68,200 employees**, **1,300 facilities**, and **16,400 vehicles**[7](index=7&type=chunk) - The company manages its business across four segments: North America, Latin America, Europe, and Rest of World, with Brink's Global Services (BGS) integrated into North America and Latin America, and also present in the Rest of World segment[8](index=8&type=chunk) - The company's strategy is built on four pillars: Growth and Customer Loyalty, Innovation, Operational Excellence, and Talent, aiming to provide a superior customer experience and drive continuous improvement[10](index=10&type=chunk)[11](index=11&type=chunk)[12](index=12&type=chunk) Revenue by Service Category (2023) | Service Category | 2023 Revenue (approx.) | % of Total Revenues | | :--- | :--- | :--- | | Cash and Valuables Management | $3.9 billion | 79% | | Digital Retail Solutions (DRS) & ATM Managed Services (AMS) | $1.0 billion | 21% | - In 2023, the company exited its Russia-based operations, recognizing a **$2.0 million loss** on disposal[39](index=39&type=chunk) - Key acquisitions include NoteMachine (UK ATM portfolio) for approximately **$194 million** in October 2022, and PAI Midco, Inc. (US ATM services) for approximately **$216 million** in April 2021[40](index=40&type=chunk) - The 2022 Global Restructuring Plan incurred **$11.0 million** in charges in 2023, with total expected expenses between **$38 million and $42 million**, aiming for annualized cost savings of approximately **$60 million**[41](index=41&type=chunk) [Item 1A. Risk Factors](index=12&type=section&id=Item%201A.%20Risk%20Factors) The company faces significant business, operational, financial, and cybersecurity risks that could materially affect its performance and strategic objectives - Business risks include the potential for the company's growth strategy to be unsuccessful, intense competition and pricing pressures, and a decreased use of cash impacting demand for services[46](index=46&type=chunk)[47](index=47&type=chunk)[48](index=48&type=chunk) - Operational risks are significant due to operations in over 100 countries, exposing the company to political, economic, regulatory, and currency fluctuation risks, with **70% of 2023 revenues from outside the U.S.**[54](index=54&type=chunk) - Financial risks include substantial pension and retiree medical obligations, potential future environmental liabilities from former coal operations, and the risk that significant U.S. deferred tax assets (**$170 million** at Dec 31, 2023) may not be realized[62](index=62&type=chunk)[65](index=65&type=chunk) - Cybersecurity and IT risks are increasing due to expanding services, M&A, and emerging technologies, with potential for business disruptions, data breaches, and regulatory violations (e.g., GDPR, CCPA)[74](index=74&type=chunk)[77](index=77&type=chunk) - The share repurchase program, while authorized for **$500 million**, does not obligate the company to repurchase shares and could increase stock price volatility or diminish cash reserves[78](index=78&type=chunk)[79](index=79&type=chunk) - A material weakness in internal control over financial reporting identified in 2022 was **remediated by Dec 31, 2023**, but there's no assurance against future occurrences[81](index=81&type=chunk) [Item 1B. Unresolved Staff Comments](index=21&type=section&id=Item%201B.%20Unresolved%20Staff%20Comments) The company reported no unresolved staff comments from the SEC - There are no unresolved staff comments[89](index=89&type=chunk) [Item 1C. Cybersecurity](index=21&type=section&id=Item%201C.%20Cybersecurity) The company's cybersecurity program is managed by the CIO and CISO, aligned with ISO and NIST frameworks, and monitored by a 24/7 Global Security Operations Center - The Global Chief Information Officer (CIO) and Global Chief Information Security Officer (CISO) lead the company's cybersecurity strategy, policy, standards, architecture, and processes, including the Brink's Global Information Security (GIS) Program[89](index=89&type=chunk) - Cybersecurity risk management processes generally follow frameworks established by the International Organization for Standardization (ISO) and the U.S. National Institute of Standards and Technology (NIST)[90](index=90&type=chunk) - The company's Global Security Operations Center (GSOC) provides **24/7 monitoring**, detection, and response capabilities for cybersecurity events and analyzes cyber threat intelligence[91](index=91&type=chunk) - As of December 31, 2023, management determined that none of the experienced cyberattacks, individually or in aggregate, had a **material adverse effect** on the business, financial condition, or results of operations[97](index=97&type=chunk) [Item 2. Properties](index=23&type=section&id=Item%202.%20Properties) The company operates a global network of approximately 1,304 facilities and 16,385 vehicles, utilizing both owned and leased assets - As of December 31, 2023, the company operates approximately **1,304 facilities** (1,141 leased, 163 owned) and **16,385 vehicles** (7,666 leased, 8,719 owned) globally[102](index=102&type=chunk)[103](index=103&type=chunk) [Item 3. Legal Proceedings](index=23&type=section&id=Item%203.%20Legal%20Proceedings) Information regarding legal proceedings is incorporated by reference from the consolidated financial statements - For a discussion of legal proceedings, refer to Note 23 to the consolidated financial statements[104](index=104&type=chunk) [Item 4. Mine Safety Disclosures](index=23&type=section&id=Item%204.%20Mine%20Safety%20Disclosures) This item is not applicable to the company - Mine Safety Disclosures are not applicable[105](index=105&type=chunk) [Information about Our Executive Officers](index=24&type=section&id=Information%20about%20Our%20Executive%20Officers) This section lists the company's executive officers, their ages, positions, and tenure in their current roles as of February 29, 2024 Executive Officers as of February 29, 2024 | Name | Age | Positions and Offices Held | Held Since | | :--- | :--- | :--- | :--- | | Mark Eubanks | 51 | President and Chief Executive Officer | 2022 | | Kurt B. McMaken | 54 | Executive Vice President and Chief Financial Officer | 2022 | | Dominik Bossart | 49 | Executive Vice President and President, Latin America and Brink's Global Services | 2023 | | Elizabeth A. Galloway | 46 | Executive Vice President and Chief Human Resources Officer | 2023 | | Lindsay K. Blackwood | 47 | Executive Vice President, General Counsel and Corporate Secretary | 2021 | | James K. Parks | 55 | Executive Vice President and President, Europe, Middle East, Africa and Asia | 2023 | | Daniel J. Castillo | 55 | Executive Vice President and President, North America | 2022 | PART II [Item 5. Market for Registrant's Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities](index=25&type=section&id=Item%205.%20Market%20for%20Registrant's%20Common%20Equity%2C%20Related%20Stockholder%20Matters%20and%20Issuer%20Purchases%20of%20Equity%20Securities) The company's stock trades on the NYSE under 'BCO', with a new $500 million share repurchase program authorized through 2025 - The company's common stock trades on the New York Stock Exchange under the symbol 'BCO', and as of February 26, 2024, there were **1,004 shareholders of record**[114](index=114&type=chunk) - On November 2, 2023, the Board authorized a new **$500 million share repurchase program** expiring December 31, 2025, replacing the prior $250 million program which expired on December 31, 2023, with approximately $28 million remaining[114](index=114&type=chunk)[116](index=116&type=chunk)[120](index=120&type=chunk) Common Stock Repurchases (Q4 2023) | Period | Total Number of Shares Purchased | Average Price Paid per Share | | :--- | :--- | :--- | | October 1 through Oct 31, 2023 | 306,508 | $70.71 | | November 1 through Nov 30, 2023 | 298,380 | $74.09 | | December 1 through Dec 31, 2023 | 239,494 | $85.08 | Five-Year Cumulative Total Return (Indexed to $100 at 12/31/2018) | Entity | 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | The Brink's Company | $100.00 | $141.27 | $113.61 | $104.52 | $86.75 | $143.83 | | S&P MidCap 400 Index | $100.00 | $126.20 | $143.44 | $178.95 | $155.58 | $181.15 | | Peer Group | $100.00 | $138.62 | $154.49 | $204.70 | $198.74 | $246.80 | [Item 7. Management's Discussion and Analysis of Financial Condition and Results of Operations](index=28&type=section&id=Item%207.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) This section analyzes financial results, highlighting revenue growth, operating profit improvement, and the significant impact of foreign currency fluctuations - The company's operations are segmented into North America, Latin America, Europe, and Rest of World, focusing on cash and valuables management, digital retail solutions (DRS), and ATM managed services (AMS)[134](index=134&type=chunk) - Revenues and earnings are typically higher in the second half of the year, especially the fourth quarter, due to increased economic activity during the holiday season[137](index=137&type=chunk) Consolidated Financial Highlights (GAAP & Non-GAAP) | Metric (in millions, except EPS) | 2023 (GAAP) | 2022 (GAAP) | % Change 2023 vs 2022 (GAAP) | 2023 (Non-GAAP) | 2022 (Non-GAAP) | % Change 2023 vs 2022 (Non-GAAP) | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Revenues | $4,874.6 | $4,535.5 | 7% | $4,874.6 | $4,535.5 | 7% | | Operating profit | $425.2 | $361.3 | 18% | $615.0 | $550.3 | 12% | | Income from continuing operations (attributable to Brink's) | $86.0 | $173.5 | (50)% | $344.6 | $286.4 | 20% | | Diluted EPS from continuing operations | $1.83 | $3.63 | (50)% | $7.35 | $5.99 | 23% | - The GAAP effective income tax rate on continuing operations increased significantly to **59.0% in 2023** from 18.3% in 2022, primarily due to the geographical mix of earnings, adjustments to valuation allowances, and taxes on cross-border income[181](index=181&type=chunk)[186](index=186&type=chunk)[188](index=188&type=chunk) - Cash flows from operating activities **increased by $222.5 million to $702.4 million** in 2023, driven by higher operating profit, working capital changes, and lower income taxes paid[219](index=219&type=chunk) - Net cash used by investing activities **decreased by $151.4 million to $179.8 million** in 2023, mainly due to decreased payments for acquisitions, while capital expenditures increased by $20.1 million to $202.7 million[221](index=221&type=chunk)[225](index=225&type=chunk) - Net cash used by financing activities was **$207.1 million** in 2023, a decrease of $452.3 million from 2022, primarily due to decreased net borrowings and increased share repurchases[228](index=228&type=chunk) - The company's net debt increased by $5 million to **$2,520.9 million** at the end of 2023, with debt as a percentage of capitalization rising to **87%**[232](index=232&type=chunk)[235](index=235&type=chunk) [Item 7A. Quantitative and Qualitative Disclosures About Market Risk](index=59&type=section&id=Item%207A.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) The company is exposed to market risks from interest rate and foreign currency fluctuations, which it manages through monitoring and hedging instruments - The company is exposed to market risks from changes in interest rates and foreign currency exchange rates, which are monitored and managed as an integral part of its overall risk management program[316](index=316&type=chunk) - Floating rate debt, including the term loan and revolving credit facility, exposes the company to fluctuations in cash flows, and a hypothetical **10% increase in floating rates** would increase cash outflows by approximately **$7.6 million** over a twelve-month period[318](index=318&type=chunk)[319](index=319&type=chunk) - Foreign currency risk arises from operations in over 100 countries, with **70% of 2023 revenues from outside the U.S.**, and the company uses short-term foreign currency forward and swap contracts (notional value of $678.0 million at Dec 31, 2023) to hedge transactional risks[320](index=320&type=chunk)[321](index=321&type=chunk) - Cross currency swaps are used to hedge net investments in euro and Hong Kong dollar functional currencies, with a total notional value of **$400 million for euro swaps** and **$55 million for Hong Kong dollar swaps** at Dec 31, 2023[321](index=321&type=chunk)[526](index=526&type=chunk)[529](index=529&type=chunk) [APPLICATION OF CRITICAL ACCOUNTING POLICIES](index=59&type=section&id=APPLICATION%20OF%20CRITICAL%20ACCOUNTING%20POLICIES) This section details critical accounting policies requiring significant judgment, including deferred tax assets, acquisitions, goodwill, and retirement benefits - The application of accounting principles requires significant assumptions, estimates, and judgments, particularly for goodwill, intangibles, retirement benefits, legal contingencies, and deferred tax assets[260](index=260&type=chunk)[379](index=379&type=chunk) [Item 8. Financial Statements and Supplementary Data](index=61&type=section&id=Item%208.%20Financial%20Statements%20and%20Supplementary%20Data) This section presents the audited consolidated financial statements and supplementary data, accompanied by an unqualified audit opinion from KPMG LLP - KPMG LLP issued an **unqualified opinion** on the consolidated financial statements and the effectiveness of internal control over financial reporting as of December 31, 2023[329](index=329&type=chunk)[330](index=330&type=chunk) - The valuation of goodwill for the **Europe reporting unit** was identified as a critical audit matter due to the inherent uncertainty in revenue growth rates, forecasted operating margin, and the discount rate used in fair value estimation[333](index=333&type=chunk)[334](index=334&type=chunk) Consolidated Balance Sheet Highlights (in millions) | Metric | December 31, 2023 | December 31, 2022 | | :--- | :--- | :--- | | Total Assets | $6,601.8 | $6,366.0 | | Total Liabilities | $6,081.6 | $5,795.8 | | Total Equity | $520.2 | $570.2 | Consolidated Statements of Operations Highlights (in millions, except EPS) | Metric | 2023 | 2022 | 2021 | | :--- | :--- | :--- | :--- | | Revenues | $4,874.6 | $4,535.5 | $4,200.2 | | Operating Profit | $425.2 | $361.3 | $354.7 | | Net Income attributable to Brink's | $87.7 | $170.6 | $105.2 | | Diluted EPS attributable to Brink's | $1.87 | $3.57 | $2.10 | Consolidated Statements of Cash Flows Highlights (in millions) | Metric | 2023 | 2022 | 2021 | | :--- | :--- | :--- | :--- | | Net cash provided by operating activities | $702.4 | $479.9 | $478.0 | | Net cash used by investing activities | $(179.8) | $(331.2) | $(454.7) | | Net cash (used) provided by financing activities | $(207.1) | $245.2 | $171.3 | [Item 9. Changes in and Disagreements with Accountants on Accounting and Financial Disclosure](index=144&type=section&id=Item%209.%20Changes%20in%20and%20Disagreements%20with%20Accountants%20on%20Accounting%20and%20Financial%20Disclosure) The company reported no changes in or disagreements with its accountants on accounting and financial disclosure matters - There were no changes in or disagreements with accountants on accounting and financial disclosure[615](index=615&type=chunk) [Item 9A. Controls and Procedures](index=144&type=section&id=Item%209A.%20Controls%20and%20Procedures) Management concluded that disclosure controls and internal control over financial reporting were effective as of year-end 2023 - The CEO and CFO concluded that the company's disclosure controls and procedures were **effective** as of December 31, 2023[616](index=616&type=chunk) - Management concluded that, as of December 31, 2023, the company's internal control over financial reporting was **effective**, based on the COSO framework[618](index=618&type=chunk) - The material weakness in internal control over financial reporting identified in 2022, related to revenue and accounts receivable in certain North America locations, was **fully remediated** by December 31, 2023[619](index=619&type=chunk) [Item 9B. Other Information](index=147&type=section&id=Item%209B.%20Other%20Information) No directors or officers adopted or terminated Rule 10b5-1 or non-Rule 10b5-1 trading arrangements during the fourth quarter of 2023 - No directors or officers adopted or terminated Rule 10b5-1 or non-Rule 10b5-1 trading arrangements during the three months ended December 31, 2023[625](index=625&type=chunk) [Item 9C. Disclosure Regarding Foreign Jurisdictions that Prevent Inspections](index=147&type=section&id=Item%209C.%20Disclosure%20Regarding%20Foreign%20Jurisdictions%20that%20Prevent%20Inspections) This item is not applicable to the company - Disclosure regarding foreign jurisdictions that prevent inspections is not applicable[625](index=625&type=chunk) PART III [Item 10. Directors, Executive Officers and Corporate Governance](index=148&type=section&id=Item%2010.%20Directors%2C%20Executive%20Officers%20and%20Corporate%20Governance) The company has adopted a Code of Ethics, and further information on governance and directors is incorporated by reference from the 2024 Proxy Statement - The company has adopted a Code of Ethics applicable to all directors, officers, and employees, including the CEO, CFO, and Controller, which is posted on its website[627](index=627&type=chunk) - Information regarding executive officers is included in the report following Item 4, and other required information is incorporated by reference to the definitive 2024 Proxy Statement[627](index=627&type=chunk) [Item 11. Executive Compensation](index=148&type=section&id=Item%2011.%20Executive%20Compensation) Information on executive compensation is incorporated by reference from the company's definitive 2024 Proxy Statement - Information required by Item 11 is incorporated by reference to the Registrant's definitive 2024 Proxy Statement[628](index=628&type=chunk) [Item 12. Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters](index=148&type=section&id=Item%2012.%20Security%20Ownership%20of%20Certain%20Beneficial%20Owners%20and%20Management%20and%20Related%20Stockholder%20Matters) Information regarding security ownership is incorporated by reference from the company's definitive 2024 Proxy Statement - Information required by Item 12 is incorporated by reference to the Registrant's definitive 2024 Proxy Statement[628](index=628&type=chunk) [Item 13. Certain Relationships and Related Transactions, and Director Independence](index=148&type=section&id=Item%2013.%20Certain%20Relationships%20and%20Related%20Transactions%2C%20and%20Director%20Independence) Information on related transactions and director independence is incorporated by reference from the company's definitive 2024 Proxy Statement - Information required by Item 13 is incorporated by reference to the Registrant's definitive 2024 Proxy Statement[629](index=629&type=chunk) [Item 14. Principal Accountant Fees and Services](index=148&type=section&id=Item%2014.%20Principal%20Accountant%20Fees%20and%20Services) Information regarding principal accountant fees and services is incorporated by reference from the company's definitive 2024 Proxy Statement - Information required by Item 14 is incorporated by reference to the Registrant's definitive 2024 Proxy Statement[630](index=630&type=chunk) PART IV [Item 15. Exhibits and Financial Statement Schedules](index=149&type=section&id=Item%2015.%20Exhibits%20and%20Financial%20Statement%20Schedules) This section lists all financial statements and exhibits included in the Form 10-K filing - Item 15 includes all financial statements (pages 61–123), financial statement schedules (not applicable), and exhibits, with each exhibit listed as a previously filed document incorporated by reference[632](index=632&type=chunk)[634](index=634&type=chunk) [Item 16. Form 10-K Summary](index=149&type=section&id=Item%2016.%20Form%2010-K%20Summary) The company does not provide a Form 10-K Summary - There is no Form 10-K Summary[633](index=633&type=chunk) [Exhibit Index](index=150&type=section&id=Exhibit%20Index) This section provides a comprehensive list of all exhibits filed with the Form 10-K, including corporate documents, agreements, and certifications - The Exhibit Index lists various documents, including Stock Purchase Agreements, Articles of Incorporation, Bylaws, Senior Notes Indentures, Equity Incentive Plans, Offer Letters, and Certifications[635](index=635&type=chunk)[636](index=636&type=chunk)[637](index=637&type=chunk) - Exhibit 101 is the Interactive Data File (iXBRL) of the Annual Report on Form 10-K, including consolidated financial statements and notes, which is deemed not filed for certain liability purposes[638](index=638&type=chunk) [Signatures](index=154&type=section&id=Signatures) The report is duly signed by the company's principal officers and a majority of its directors as of February 29, 2024 - The report was signed on behalf of The Brink's Company by Mark Eubanks (President and Chief Executive Officer), Kurt B. McMaken (Executive Vice President and Chief Financial Officer), Michael Sweeney (Controller), and various Directors on February 29, 2024[642](index=642&type=chunk)[643](index=643&type=chunk)

Exhibit 99.1 P R E S S R E L E A S E Contact: Investor Relations 804.289.9709 IIIBRINK BRINK'S CORPORATE The Brink's Company 1801 Bayberry Court Richmond, VA 23226-8100 USA Brink's Announces Fourth-Quarter and Full-Year 2023 Results 2023 Revenue Growth of 7% with 9% Organic Growth including 21% Growth in AMS and DRS Record Full-Year 2023 Net Cash from Operations of $702M and Free Cash Flow of $393M Reduced Leverage to 2.9x Net Debt to Adjusted EBITDA, within Target Leverage Range of 2x-3x Management Expects ...

RICHMOND, Va., Feb. 13, 2024 (GLOBE NEWSWIRE) -- The Brink's Company (NYSE:BCO), a leading global provider of cash and valuables management, digital retail solutions, and ATM managed services, will host a conference call on Thursday, February 29th, at 8:30 a.m. (ET) to review fourth-quarter and full year 2023 financial results, which will be released earlier that day. The conference call can be accessed by calling 888-349-0094 (in the U.S.) or 412-902-0124 (international). Participants should dial in at lea ...

RICHMOND, Va., Feb. 13, 2024 (GLOBE NEWSWIRE) -- The Brink’s Company (NYSE:BCO), a leading global provider of cash and valuables management, digital retail solutions, and ATM managed services, will host a conference call on Thursday, February 29th, at 8:30 a.m. (ET) to review fourth-quarter and full year 2023 financial results, which will be released earlier that day. The conference call can be accessed by calling 888-349-0094 (in the U.S.) or 412-902-0124 (international). Participants should dial in at lea ...

hapabapaOdds are, you are familiar with a rather small company that has a very wide reach that goes by the name of The Brink's Company (NYSE:BCO). If you can't quite pinpoint in your memory where that name comes from, just think of armored vehicles used to transport cash. As a massive player in the cash management space, The Brink's Company has demonstrated itself to provide a quality service. Revenue, profits, and cash flows, continue to increase even though more and more transactions every year are be ...

RICHMOND, Va., Jan. 18, 2024 (GLOBE NEWSWIRE) -- The board of directors of The Brink's Company (NYSE:BCO) today declared a regular quarterly dividend of 22 cents per share on the company's common stock. The dividend is payable on March 1, 2024, to shareholders of record as of February 5, 2024. About The Brink's Company The Brink's Company (NYSE:BCO), a leading global provider of cash and valuables management, digital retail solutions, and ATM managed services. Our customers include financial institutions, r ...

The Brink's Company (NYSE:BCO) Q3 2023 Earnings Conference Call November 7, 2023 8:30 AM ET Company Participants Jesse Jenkins – Vice President-Investor Relations Mark Eubanks – Chief Executive Officer Kurt McMaken – Chief Financial Officer Conference Call Participants George Tong – Goldman Sachs Jack Wilson – Truist Operator Hello, and welcome to the Brink's Company's Third Quarter 2023 Earnings Call. This morning, Brink's issued a press release detailing its third quarter 2023 results. The company also fi ...

Third-Quarter 2023 Earnings 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, information regarding: 2023 outlook, including revenue, operating profit, adjusted ...