Brink's (BCO) came out with quarterly earnings of $1.51 per share, missing the Zacks Consensus Estimate of $1.86 per share. This compares to earnings of $1.92 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of -18.82%. A quarter ago, it was expected that this armored car company would post earnings of $1.42 per share when it actually produced earnings of $1.67, delivering a surprise of 17.61%.Over the last four quarters, the comp ...

[Third-Quarter 2024 Financial Highlights](index=1&type=section&id=Third-Quarter%202024%20Financial%20Highlights) [Overview of Third-Quarter 2024 Performance](index=1&type=section&id=Overview%20of%20Third-Quarter%202024%20Performance) Brink's achieved 3% revenue growth in Q3 2024, fueled by strong organic expansion in high-margin services, though profitability was impacted by currency and a significant security loss - ATM Managed Services (AMS) and Digital Retail Solutions (DRS) demonstrated strong performance with **26% organic growth** in Q3[2](index=2&type=chunk) - Higher-margin, recurring revenue from AMS and DRS now accounts for over **23% of total company revenue** and is projected to achieve over **20% organic growth** for the full year 2024[2](index=2&type=chunk) - Profitability was adversely affected by the strong U.S. dollar, cyclical market headwinds in global services, and the timing of a large security loss[2](index=2&type=chunk) [Third-Quarter 2024 Financial Summary](index=1&type=section&id=Third-Quarter%202024%20Financial%20Summary) Q3 2024 revenue increased 3% to $1.259 billion, while GAAP operating profit declined 19% to $112 million and GAAP EPS dropped 33% to $0.65 Third-Quarter 2024 Financial Results (vs. 2023, in millions) | Metric | GAAP | GAAP Change | Non-GAAP | Non-GAAP Change | Constant Currency Change | | :--- | :--- | :--- | :--- | :--- | :--- | | **Revenue** | $1,259 million | 3% | $1,259 million | 3% | 13% | | **Operating Profit** | $112 million | (19)% | $152 million | (9)% | 20% | | **Operating Profit Margin** | 8.9% | (230 bps) | 12.0% | (150 bps) | 90 bps | | **Net Income / Adj. EBITDA** | $29 million | (37)% | $217 million | (6)% | 16% | | **EPS** | $0.65 | (33)% | $1.51 | (27)% | 10% | [Security Losses](index=2&type=section&id=Security%20Losses) Third-quarter results were impacted by a $10 million year-over-year increase in security losses, primarily due to a single large loss event - A large loss event contributed to a **$10 million year-over-year increase** in security losses for Q3[4](index=4&type=chunk) - The company affirmed that this Q3 increase is not expected to alter its full-year outlook on security losses[4](index=4&type=chunk) [Full-Year 2024 Guidance](index=2&type=section&id=Full-Year%202024%20Guidance) [Updated 2024 Non-GAAP Outlook](index=2&type=section&id=Updated%202024%20Non-GAAP%20Outlook) Brink's updated its full-year 2024 Non-GAAP guidance, projecting revenues between $5.0 and $5.05 billion and Adjusted EBITDA between $900 and $920 million Updated 2024 Non-GAAP Outlook (in millions) | Metric | Guidance Range (in millions) | | :--- | :--- | | **Revenues** | $5,000 - $5,050 | | **Adjusted EBITDA** | $900 - $920 | | **Adjusted EBITDA margin** | ~18.1% | | **Free cash flow before dividends** | $320 - $360 | - Full-year 2024 EPS from continuing operations attributable to Brink's is guided to be between **$6.50 and $6.80**[5](index=5&type=chunk) [Condensed Consolidated Financial Statements (Unaudited)](index=3&type=section&id=Condensed%20Consolidated%20Financial%20Statements%20(Unaudited)) [Condensed Consolidated Balance Sheets](index=3&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) As of September 30, 2024, total assets increased slightly to $6.67 billion, while total liabilities rose and total equity decreased Balance Sheet Summary (in millions) | Account | Sep 30, 2024 | Dec 31, 2023 | | :--- | :--- | :--- | | **Total Assets** | $6,670.6 | $6,601.8 | | **Total Liabilities** | $6,262.5 | $6,081.6 | | **Total Equity** | $408.1 | $520.2 | [Condensed Consolidated Statements of Cash Flows](index=4&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) For the nine months ended September 30, 2024, net cash from operating activities significantly decreased to $56.2 million, while financing activities reversed to a net cash inflow Cash Flow Summary - Nine Months Ended (in millions) | Cash Flow Activity | Sep 30, 2024 | Sep 30, 2023 | | :--- | :--- | :--- | | **Net cash provided by operating activities** | $56.2 | $293.0 | | **Net cash used in investing activities** | ($181.4) | ($147.9) | | **Net cash provided by (used in) financing activities** | $99.5 | ($207.4) | | **Net decrease in cash** | ($44.8) | ($90.0) | [Segment Performance Analysis](index=5&type=section&id=Segment%20Performance%20Analysis) [Third-Quarter 2024 Segment Results (vs. 2023)](index=5&type=section&id=Third-Quarter%202024%20Segment%20Results%20(vs.%202023)) In Q3 2024, Latin America led organic revenue growth at 34%, Europe showed strong 10% revenue growth, and North America's operating profit fell 13% Q3 2024 Segment Revenue & Operating Profit (vs. Q3 2023, in millions) | Segment | Revenue | Revenue Change | Organic Growth | Operating Profit | Operating Profit Change | | :--- | :--- | :--- | :--- | :--- | :--- | | **North America** | $413 | 4% | 3% | $42 | (13)% | | **Latin America** | $321 | (5)% | 34% | $70 | 3% | | **Europe** | $316 | 10% | 8% | $40 | 12% | | **Rest of World** | $209 | 4% | 3% | $44 | 3% | [Nine-Month 2024 Segment Results (vs. 2023)](index=6&type=section&id=Nine-Month%202024%20Segment%20Results%20(vs.%202023)) For the first nine months of 2024, total revenue grew 3% with 13% organic growth, led by Latin America's 36% organic expansion Nine-Month 2024 Segment Revenue & Operating Profit (vs. 2023, in millions) | Segment | Revenue | Revenue Change | Organic Growth | Operating Profit | Operating Profit Change | | :--- | :--- | :--- | :--- | :--- | :--- | | **North America** | $1,230 | 3% | 2% | $142 | 15% | | **Latin America** | $987 | 0% | 36% | $197 | (2)% | | **Europe** | $917 | 9% | 8% | $98 | 13% | | **Rest of World** | $614 | 2% | 3% | $124 | 2% | [Detailed Quarterly Segment Results (2023-2024)](index=8&type=section&id=Detailed%20Quarterly%20Segment%20Results%20(2023-2024)) Quarterly trends show consistent revenue growth in Europe, stable North American revenue, volatile Latin American revenue, and variable segment operating profit margins - Total segment operating profit has shown a sequential increase through the first three quarters of 2024, from **$178.4 million** in Q1 to **$195.7 million** in Q3[23](index=23&type=chunk) - North America's operating margin decreased from **12.5%** in Q2 2024 to **10.1%** in Q3 2024[24](index=24&type=chunk) - Latin America's operating margin recovered to **21.9%** in Q3 2024 after dipping in the first half of the year[24](index=24&type=chunk) [Reconciliation of GAAP to Non-GAAP Measures](index=9&type=section&id=Reconciliation%20of%20GAAP%20to%20Non-GAAP%20Measures) [Explanation of Non-GAAP Adjustments](index=9&type=section&id=Explanation%20of%20Non-GAAP%20Adjustments) The company excludes reorganization, acquisition, Argentina's inflationary impact, transformation initiatives, and certain legal costs from Non-GAAP results to clarify core operational performance [Reorganization and Restructuring](index=9&type=section&id=Reorganization%20and%20Restructuring) Costs related to the 2022 Global Restructuring Plan, primarily severance and asset impairments, are excluded from Non-GAAP results - The 2022 Global Restructuring Plan has resulted in **$34.2 million** in total charges and reduced the global workforce by about **3,200 positions**[29](index=29&type=chunk) [Acquisitions and Dispositions](index=9&type=section&id=Acquisitions%20and%20Dispositions) Non-cash amortization of acquisition-related intangible assets and integration costs are excluded due to their inconsistent timing and nature - Amortization expense for acquisition-related intangible assets amounted to **$43.8 million** in the first nine months of 2024[32](index=32&type=chunk) [Argentina Highly Inflationary Impact](index=11&type=section&id=Argentina%20Highly%20Inflationary%20Impact) Pretax charges of $23.8 million related to Argentina's highly inflationary economy, including currency remeasurement losses, are excluded from Non-GAAP results - In the first nine months of 2024, the company recognized **$23.8 million** in pretax charges related to Argentina's highly inflationary accounting[34](index=34&type=chunk) [Transformation Initiatives](index=11&type=section&id=Transformation%20Initiatives) Expenses of $21.5 million for a multi-year business transformation program, primarily for third-party services, are excluded from Non-GAAP results - The company incurred **$21.5 million** in costs for its business transformation program in the first nine months of 2024[35](index=35&type=chunk) [Other Legal and Compliance Matters](index=11&type=section&id=Other%20Legal%20and%20Compliance%20Matters) Several non-recurring legal and compliance costs, including accruals for a DOJ investigation and a Chilean antitrust matter, are excluded from Non-GAAP results - Accrued **$7.7 million** in the first nine months of 2024 related to a U.S. Department of Justice (DOJ) investigation into AML compliance[36](index=36&type=chunk) - Recognized a **$1.1 million adjustment** in the first nine months of 2024 for a potential fine related to a Chilean antitrust investigation[37](index=37&type=chunk) [Reconciliation Tables](index=13&type=section&id=Reconciliation%20Tables) Detailed reconciliations bridge GAAP figures to Non-GAAP measures, adjusting for items like restructuring, acquisition impacts, and Argentina's economy to derive core performance metrics [Reconciliation of Operating Profit](index=14&type=section&id=Reconciliation%20of%20Operating%20Profit) Q3 2024 GAAP Operating Profit of $111.6 million was adjusted for acquisitions, Argentina's impact, and transformation initiatives to reach Non-GAAP Operating Profit of $151.6 million Q3 Operating Profit Reconciliation (in millions) | Description | Q3 2024 | Q3 2023 | | :--- | :--- | :--- | | **GAAP Operating Profit** | **$111.6** | **$137.7** | | Acquisitions and dispositions | $16.5 | $19.4 | | Argentina highly inflationary impact | $10.8 | $8.1 | | Transformation initiatives | $9.5 | $0.0 | | Other Adjustments | $2.8 | $1.1 | | **Non-GAAP Operating Profit** | **$151.6** | **$166.3** | [Reconciliation of Net Income and Adjusted EBITDA](index=14&type=section&id=Reconciliation%20of%20Net%20Income%20and%20Adjusted%20EBITDA) In Q3 2024, Net Income of $28.9 million was reconciled to an Adjusted EBITDA of $216.8 million, representing a 6% year-over-year decline in Adjusted EBITDA Q3 Adjusted EBITDA Reconciliation (in millions) | Description | Q3 2024 | Q3 2023 | | :--- | :--- | :--- | | **Net income attributable to Brink's** | **$28.9** | **$45.6** | | Interest expense | $63.0 | $53.8 | | Income tax provision | $27.2 | $37.3 | | Depreciation and amortization | $74.8 | $69.1 | | **EBITDA** | **$193.9** | **$205.8** | | Non-GAAP Adjustments | $22.9 | $24.7 | | **Adjusted EBITDA** | **$216.8** | **$230.5** | [Reconciliation of Earnings Per Share (EPS)](index=15&type=section&id=Reconciliation%20of%20Earnings%20Per%20Share%20(EPS)) GAAP EPS for Q3 2024 was $0.65, adjusted to a Non-GAAP EPS of $1.51 after accounting for acquisitions and Argentina's inflation, a 27% decrease from Q3 2023 Q3 EPS Reconciliation | Description | Q3 2024 | Q3 2023 | | :--- | :--- | :--- | | **GAAP EPS** | **$0.65** | **$0.97** | | Acquisitions and dispositions | $0.36 | $0.31 | | Argentina highly inflationary impact | $0.22 | $0.67 | | Transformation initiatives | $0.21 | $0.00 | | Other Adjustments | $0.07 | $0.12 | | **Non-GAAP EPS** | **$1.51** | **$2.07** | [Reconciliation of Free Cash Flow](index=15&type=section&id=Reconciliation%20of%20Free%20Cash%20Flow) For the nine months ended September 30, 2024, free cash flow before dividends was $98.0 million, derived from GAAP operating cash flows with specific adjustments Free Cash Flow Reconciliation - Nine Months Ended (in millions) | Description | Sep 30, 2024 | Sep 30, 2023 | | :--- | :--- | :--- | | **Cash flows from operating activities - GAAP** | **$56.2** | **$293.0** | | Adjustments for restricted cash & customer obligations | $170.3 | $50.4 | | Capital expenditures | ($159.9) | ($133.1) | | Proceeds from asset sales & financing | $31.4 | $25.5 | | **Free cash flow before dividends** | **$98.0** | **$235.8** | [Other Information](index=2&type=section&id=Other%20Information) [Forward-Looking Statements](index=7&type=section&id=Forward-Looking%20Statements) This section contains cautionary language regarding forward-looking statements, including the 2024 outlook, subject to various risks and uncertainties - Forward-looking statements include the updated 2024 outlook and are subject to risks such as currency volatility, geopolitical conflicts, and ability to integrate acquisitions[18](index=18&type=chunk)[19](index=19&type=chunk) - The company directs readers to its Annual Report on Form 10-K for a comprehensive discussion of risk factors[20](index=20&type=chunk) [Conference Call Information](index=2&type=section&id=Conference%20Call%20Information) Brink's scheduled a conference call for November 6 at 9:00 a.m. ET to discuss third-quarter results, with details provided for access and replay - A conference call to review Q3 results was scheduled for November 6 at 9:00 a.m. ET[7](index=7&type=chunk)

Wall Street analysts expect Brink's (BCO) to post quarterly earnings of $1.86 per share in its upcoming report, which indicates a year-over-year decline of 3.1%. Revenues are expected to be $1.27 billion, up 3.5% from the year-ago quarter.The consensus EPS estimate for the quarter has remained unchanged over the last 30 days. This represents how the covering analysts, as a whole, have reassessed their initial estimates during this timeframe.Before a company announces its earnings, it is essential to take in ...

RICHMOND, Va., Oct. 16, 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 Wednesday, November 6, at 9:00 a.m. (ET) to review third-quarter 2024 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 join at least five minutes prio ...

RICHMOND, Va., Sept. 25, 2024 (GLOBE NEWSWIRE) -- The Brink’s Company (NYSE:BCO) today announced a long-term ATM managed services agreement with Sainsbury’s. Under the terms of the deal, NoteMachine, a Brink’s Company, will assume ownership and management of Sainsbury’s ATM business, which includes around 1,370 ATMs positioned in retail stores across the United Kingdom. The ATM network will be fully managed by NoteMachine, incorporating the full range of ATM managed services capabilities, including transact ...

Executive Leadership Changes - Joshua Teteak will be appointed as executive vice president of Brink's Business System, effective August 26, 2024 [1] - Teteak will succeed Jamal Powell, who has been appointed executive vice president and vice president of Brink's Global Services for the United States [1] - Teteak will report to Mark Eubanks, president and chief executive officer of Brink's [1] - Teteak joins Brink's from GE Healthcare, where he served as global head of integrated supply chain, and previously held leadership roles at BlueLinx Corporation and Eaton Corporation [1] Strategic Vision and Leadership Impact - Teteak's proven track record in driving growth and organizational performance across large, distributed businesses is expected to benefit Brink's transformation efforts [2] - His extensive experience in lean and continuous improvement will help optimize safety, quality, delivery, and cost productivity while standardizing global processes [2] - Teteak expressed excitement about joining Brink's, citing its proud history and leadership in securing global commerce, and aims to scale operational excellence across the enterprise [2] Company Overview - Brink's Company is a leading global provider of cash and valuables management, digital retail solutions, and ATM managed services [3] - The company serves customers including financial institutions, retailers, government agencies, mints, jewelers, and other commercial operations [3] - Brink's operates in 52 countries and serves customers in over 100 countries [3]

PM Images Investment summary My previous investment thought for The Brink’s Co. (NYSE:BCO) (published in July) was a buy rating because BCO was the largest player in the industry and its scale advantage should enable continuous market share gains. I remain bullish on BCO, as its latest performance was robust, driven by share gains and organic growth. BCO's new products continue to see accelerating growth, which makes the near-term growth outlook look very favorable. With fundamentals being relatively be ...

Have you looked into how Brink's (BCO) performed internationally during the quarter ending June 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 importan ...

Financial Data and Key Metrics Changes - The company reported total organic growth of 14%, with adjusted EBITDA growing 16% to $226 million and margins expanding by 200 basis points to 18% [6][21][28] - Earnings per share increased by 31% to $1.67, driven by a 25% increase in net income and a 5% reduction in outstanding shares [6][22] - Free cash flow conversion remained strong, with expectations for full-year free cash flow between $415 million and $465 million [9][24][28] Business Line Data and Key Metrics Changes - ATM Managed Services and Digital Retail Solutions (AMS DRS) grew 26% organically, while Cash and Valuables Management (CVM) was up 10% organically [6][10] - AMS and DRS now represent 22% of total trailing 12-month revenue, with expectations for continued double-digit organic growth [17][28] - All segments experienced growth, but Global Services faced cyclical market softness impacting overall performance [10][11] Market Data and Key Metrics Changes - North America saw notable margin expansion of 360 basis points year-over-year, marking the eighth consecutive quarter of margin improvement [8][12] - Latin America faced challenges due to currency fluctuations, particularly in Argentina, impacting margins while pricing efforts catch up [10][11][49] - The company experienced an 11% translational foreign exchange headwind, which affected revenue growth expectations [9][20][27] Company Strategy and Development Direction - The company is focused on executing its strategy through growth in customer loyalty, innovation, operational excellence, and talent development [29] - Continued investments in technology and process improvements are aimed at enhancing operational efficiency and customer satisfaction [13][25] - The capital allocation framework emphasizes sustainable profitable growth, shareholder returns, and potential M&A opportunities aligned with AMS and DRS [24][26][60] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving low- to mid-teens organic revenue growth and double-digit EBITDA growth for the year [9][28] - The company remains optimistic about the resilience of its business model amid economic volatility, citing a broad distribution of customers [19][28] - Management acknowledged the impact of foreign exchange fluctuations but remains focused on driving productivity and managing costs effectively [49][50] Other Important Information - The company successfully refinanced its 2025 bonds, increasing liquidity and receiving a credit rating upgrade from S&P [9][23] - Shareholder returns increased by 133% over the first half of 2023, with $86 million allocated towards returns [8][26] - The company is targeting a capital structure that allows for continued investments in growth while maintaining financial flexibility [24][26] Q&A Session Summary Question: Can you talk about broader customer traction and receptivity within AMS and DRS? - Management noted strong customer traction across all regions, with a balanced growth contribution from new business, conversions, and competitive wins [31][40] Question: How should investors think about organic growth run rate moving into the back half of the year? - Management indicated that Q2 growth is expected to continue into Q3 and Q4, with a potential step-up in growth rates [43][44] Question: How is the company addressing inflationary issues in Latin America? - Management highlighted that while Argentina is performing as expected, currency fluctuations in Mexico and Brazil have posed challenges, but pricing strategies are in place to mitigate impacts [47][49]

Brink's (BCO) reported $1.25 billion in revenue for the quarter ended June 2024, representing a year-over-year increase of 3%. EPS of $1.67 for the same period compares to $1.18 a year ago.The reported revenue compares to the Zacks Consensus Estimate of $1.25 billion, representing a surprise of -0.02%. The company delivered an EPS surprise of +17.61%, with the consensus EPS estimate being $1.42.While investors scrutinize revenue and earnings changes year-over-year and how they compare with Wall Street expec ...