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]

Core Insights - The Brink's Company reported strong first-quarter results with revenue at the upper end of guidance, achieving a total growth of 1% and organic growth of 6% [1][2] - Significant organic growth was noted in ATM managed services (AMS) and digital retail solutions (DRS), exceeding 20% [1][2] - The company has repurchased over 1.3 million shares year-to-date, nearly three times the amount from the previous year [1][2] Financial Performance - First-quarter revenue reached $1,247 million, reflecting a 1% increase year-over-year, with a 6% increase in constant currency [3][14] - Operating profit was reported at $119 million, a decrease of 1% compared to the previous year, while adjusted EBITDA was $215 million, a slight decrease of 1% [3][14] - Earnings per share (EPS) increased by 9% to $1.19, while non-GAAP EPS decreased by 2% to $1.62 [3][14] Segment Performance - North America revenue increased by 3% to $418 million, while Latin America saw a decline of 8% to $308 million [14] - Europe reported a 3% increase in revenue to $299 million, and the Rest of World segment grew by 9% to $222 million [14] - Operating profit in North America increased by 10% to $53 million, while Latin America experienced a decline of 14% to $54 million [14] Guidance and Strategic Outlook - The company affirmed its 2025 framework and introduced second-quarter 2025 guidance, projecting revenue between $1,250 million and $1,300 million [4][5] - Management anticipates mid-single-digit organic revenue growth for 2025, with AMS and DRS expected to grow in the mid to high teens [5] - The adjusted EBITDA margin is expected to expand by 30-50 basis points, with free cash flow conversion projected at 40-45% [5] Shareholder Returns - The company has accelerated share repurchases, totaling over $110 million year-to-date, and plans to return over 50% of free cash flow to shareholders [2][5] - The focus remains on improving profitability through growth in AMS and DRS, streamlining operations, and adhering to capital allocation priorities [2][5]

Group 1 - The Brink's Company declared a regular quarterly dividend of $0.255 per share, marking a 5% increase [1] - The dividend is scheduled to be paid on June 2, 2025, to shareholders of record on May 19, 2025 [1] Group 2 - The Brink's Company is a leading global provider of cash and valuables management, digital retail solutions, and ATM managed services [2] - The company's customer base includes financial institutions, retailers, government agencies, mints, jewelers, and other commercial operations [2] - Brink's operates in 51 countries and serves customers in over 100 countries [2]

Core Viewpoint - The Brink's Company will host a conference call on May 12, 2025, to discuss its first-quarter financial results, which will be released after market close [1]. Group 1: Conference Call Details - The conference call can be accessed by calling 888-349-0094 (U.S.) or 412-902-0124 (international) [2]. - Participants are encouraged to join at least five minutes prior to the call and can pre-register for a direct dial-in number [2]. - A replay of the call will be available until May 19, 2025, with specific numbers provided for U.S. and international listeners [3]. Group 2: Company Overview - The Brink's Company is a leading global provider of cash and valuables management, digital retail solutions, and ATM managed services [4]. - The company serves a diverse customer base, including financial institutions, retailers, government agencies, mints, jewelers, and other commercial operations [4]. - Brink's operates in 51 countries and serves customers in over 100 countries [4].

Core Viewpoint - The Brink's Company will host a conference call on May 12, 2025, to discuss its first-quarter financial results, which will be released after market close [1]. Group 1: Conference Call Details - The conference call is scheduled for May 12, 2025, at 4:30 p.m. (ET) [1]. - Participants can access the call by dialing 888-349-0094 (U.S.) or 412-902-0124 (international) and should join at least five minutes early [2]. - A pre-registration option is available for participants to receive a direct dial-in number [2]. - The call will also be accessible via live webcast [2]. Group 2: Replay Information - A replay of the conference call will be available until May 19, 2025, through specific U.S. and international numbers [3]. - The conference number for the replay is 1476523 [3]. - A webcast replay will be available on the Brink's Investor Relations site in the Events section [3]. Group 3: Company Overview - The Brink's Company is a leading global provider of cash and valuables management, digital retail solutions, and ATM managed services [4]. - The company serves a diverse customer base, including financial institutions, retailers, government agencies, mints, jewelers, and other commercial operations [4]. - Brink's operates in 51 countries and serves customers in over 100 countries [4].

Have you looked into how Brink's (BCO) performed internationally during the quarter ending December 2024? Considering the widespread global presence of this armored car company, examining the trends in international revenues is essential for assessing its financial resilience and prospects for growth.In the modern, closely-knit global economic landscape, the capacity of a business to access foreign markets is often a key determinant of its financial well-being and growth path. Investors now place great impo ...

Financial Performance - Revenues for 2024 increased by $137.3 million to $5,011.9 million, representing a 3% growth compared to 2023, driven by organic increases in Latin America, Europe, North America, and Rest of World segments [159]. - Operating profit for 2024 rose to $453.0 million, a 7% increase from $425.2 million in 2023, with an operating profit margin improving from 8.7% to 9.0% [159]. - Non-GAAP operating profit increased by $14.4 million to $629.4 million, maintaining a non-GAAP operating profit margin of 12.6% [167]. - Income from continuing operations attributable to Brink's shareholders increased by $75.8 million to $161.8 million, with diluted EPS from continuing operations rising to $3.61, up from $1.83 in 2023 [163]. - Adjusted EBITDA for 2024 increased by 5% to $911.9 million, primarily due to the increase in non-GAAP operating profit [168]. - Non-GAAP operating profit for 2024 was $629.4 million, up from $615.0 million in 2023, reflecting a year-over-year increase of 2.3% [230]. - Non-GAAP diluted earnings per share (EPS) from continuing operations attributable to Brink's common shareholders for 2024 was $321.4 million, compared to $344.6 million in 2023, indicating a decrease of 6.3% [233]. - Adjusted EBITDA for 2024 reached $911.9 million, an increase from $867.2 million in 2023, representing a growth of 5.2% [233]. - GAAP pre-tax income for 2024 was $266.3 million, with an effective income tax rate of 34.8% [230]. Revenue Breakdown - Revenues in Latin America saw a significant organic increase of $461.8 million, while the unfavorable impact of currency exchange rates was $487.8 million, primarily due to the Argentine peso [162]. - North America segment revenues increased by 3% to $1,649.7 million, while Latin America segment revenues decreased by 2% to $1,311.0 million due to currency impacts [170]. - Revenues in North America increased by 3% ($48.6 million), driven by a 2% organic increase ($36.6 million) and acquisitions contributing $13.9 million, despite a $1.9 million negative impact from currency exchange rates [174]. - Latin America experienced a revenue decrease of 2% ($21.3 million), primarily due to unfavorable currency exchange rates ($485.3 million), offset by a significant 35% organic increase ($461.8 million) [176]. - Europe saw an 8% revenue increase ($90.6 million), with a 7% organic increase ($82.3 million) and acquisitions adding $7.6 million, mainly due to price increases and growth in AMS and DRS revenue [178]. - The Rest of World segment reported a 2% revenue increase ($19.4 million), attributed to a 3% organic increase ($20.7 million) driven by AMS and DRS growth [180]. Expenses and Costs - Selling, general and administrative expenses rose by 21.3% to $834.5 million, mainly due to organic increases in labor and administrative costs [162]. - The corporate expenses increased by 3% to $(143.4) million, reflecting higher costs on an organic basis [170]. - Corporate expenses rose by $3.8 million in 2024, primarily due to higher net compensation costs, including share-based compensation and bonus accruals [184]. - The company recognized $35.0 million in pretax charges related to Argentina's highly inflationary accounting in 2024, including currency remeasurement losses of $18.4 million [195]. - Transformation initiatives incurred $28.4 million in expenses in 2024, aimed at accelerating growth and driving margin expansion through business model transformation [196]. - The company accrued $45.7 million in connection with DOJ and FinCEN investigations in 2024, primarily related to compliance issues [197]. Cash Flow and Capital Expenditures - Cash flows from operating activities decreased by $276.4 million in 2024, totaling $426.0 million, primarily due to changes in customer obligations and higher tax and interest payments [247][249]. - Capital expenditures increased to $222.5 million in 2024 from $202.7 million in 2023, reflecting ongoing investments in business infrastructure [251]. - The company reported a free cash flow before dividends of $399.9 million in 2024, which was relatively flat compared to $400.1 million in 2023 [251]. - Cash used in investing activities increased by $36.4 million in 2024, totaling $216.2 million, primarily due to higher capital expenditures and acquisitions [253]. - Cash flows from financing activities improved by $249.3 million in 2024, resulting in net cash provided of $42.2 million compared to net cash used of $207.1 million in 2023 [260]. Debt and Financing - Total debt as of December 31, 2024, was $3,896.2 million, an increase of $364.9 million from $3,531.3 million in 2023 [265]. - Debt as a percentage of capitalization rose to 93% in 2024, up from 87% in 2023 [263]. - The company had $600 million available under its Revolving Credit Facility as of December 31, 2024 [270]. - The company financed its liquidity needs in 2024 through debt and cash flows from operations, highlighting a reliance on external financing [247]. Shareholder Returns - The company repurchased $203.6 million in common stock in 2024, an increase of $33.7 million from $169.9 million in 2023 [260]. - Dividends paid to shareholders increased to $41.8 million in 2024, up from $39.6 million in 2023, reflecting a dividend of $0.9475 per share [261]. - The company authorized a $500 million share repurchase program in November 2023, set to expire on December 31, 2025 [276]. Tax and Compliance - The effective income tax rate on continuing operations in 2024 was 34.8%, significantly higher than the U.S. statutory rate of 21% due to geographical earnings mix and nondeductible expenses [211]. - Non-GAAP effective income tax rate for 2024 was 23.2%, down from 24.8% in 2023 [230]. - The company agreed to pay a total of $42 million to resolve investigations related to anti-money laundering compliance, with payments starting in January 2025 [295]. Pension and Employee Benefits - The primary U.S. pension plan's ending funded status is projected to improve from $(10.9) million in 2024 to $49.0 million by 2029 [282]. - The company does not expect to make contributions to the primary U.S. pension plan until 2027, based on current assumptions [284]. - The expected-return-on-assets assumption for the primary U.S. pension plan is set at 7.00% for both actual 2024 and projected 2025 expenses, while the UMWA retiree medical plans are set at 8.00% for the same periods [333].

The Brink's Company (NYSE:BCO) Q4 2024 Earnings Conference Call February 26, 2025 9:00 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 Sam Kusswurm – William Blair Tyler Barishaw – Truist Operator Good day, and welcome to The Brink's Company Fourth Quarter and Full Year 2024 Earnings Presentation. All participants will be in a listen-only mode. P ...