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Have you assessed how the international operations of Brink's (BCO) performed in the quarter ended September 2024? For this armored car company, possessing an expansive global footprint, parsing the trends of international revenues could be critical to gauge its financial resilience and growth prospects.In today's increasingly interconnected global economy, a company's ability to tap into international markets can be a pivotal factor in shaping its overall financial health and growth trajectory. For investo ...

My previous investment thought for The Brink's Company (NYSE: BCO ) (published in August) was a buy rating because the fundamentals have improved, with growth potentially accelerating on the back of new products. My rating for BCO is stillI focus on long-term investments while incorporating short-term shorts to uncover alpha opportunities. My investment approach revolves around bottom-up analysis, delving into the fundamental strengths and weaknesses of individual companies. My investment duration is the me ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15 (d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended September 30, 2024 ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15 (d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from ________ to ________ Commission file number 001-09148 THE BRINK'S COMPANY (Exact name of registrant as specified in its charter) Virginia (Stateorotherjurisdictionof ...

Third-Quarter 2024 Earnings November 6, 2024 IIIBRINKS 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: updated 2024 outlook, including r ...

Financial Data and Key Metrics - Total organic growth of 13% in Q3 2024, with ATM managed services and digital retail solutions (AMS and DRS) growing 26% organically [7] - Cash and valuables management (CVM) grew 9% organically, with pricing execution offsetting market softness in the global services business [8] - Adjusted EBITDA of $217 million, impacted by a $10 million increase in security losses, resulting in an 18% EBITDA margin, down 80 basis points YoY [9] - Free cash flow of $135 million, driven by better asset efficiency and working capital improvements, partially offset by lower EBITDA and currency impacts [10] - Share repurchases of $125 million year-to-date through Q3, reducing share count by 5% YoY [15] Business Line Performance - AMS and DRS delivered double-digit organic growth in all regional segments, with a robust backlog supporting Q4 forecasts [7][14] - Global Services faced softness due to high gold and silver prices, impacting revenue and profit across all segments, including the Americas [26][27] - AMS achieved its third consecutive quarter of accelerating organic growth, with new customers set to onboard in early 2025 [29] - DRS continued to exceed expectations, with double-digit growth in all segments and a strong pipeline of potential customers [28] Market Performance - The strengthening U.S. dollar caused an 11% FX headwind, primarily due to the devaluation of the Mexican peso [8][19] - Latin America, a high-margin region, faced significant FX headwinds, impacting EBITDA margins [9][36] - North America saw a 120 basis point improvement in margins, driven by technology and systems investments [21] Strategic Direction and Industry Competition - The company is focusing on expanding margins through AMS and DRS, with a target of mid-to-high-teens organic revenue growth by 2025 [14][49] - Investments in data center migration, cybersecurity upgrades, and routing systems are expected to drive long-term growth and margin expansion [42] - The company is leveraging its global footprint to capture market share in AMS and DRS, with a strong pipeline of opportunities [14][29] Management Commentary on Operating Environment and Future Outlook - Management remains confident in the long-term growth potential of AMS and DRS, despite near-term FX and market softness headwinds [18][48] - The company expects to achieve mid-single-digit organic growth in 2025, driven by strong AMS and DRS performance [49] - Management highlighted the importance of operational improvements and cost productivity initiatives to enhance EBITDA margins [11][25] Other Key Information - The company appointed Josh Teteak to lead cost productivity efforts and Nader Antar as Global Leader of Brink's Global Services, focusing on growth opportunities and operational improvements [11][12] - A $10 million security loss in Latin America impacted Q3 results, but no further impact is expected for the rest of the year [68] Q&A Session Summary Question: Impact of softer Global Services demand vs. AMS and DRS growth assumptions - Global Services faced headwinds due to high gold and silver prices, but AMS and DRS growth assumptions were increased, driving overall organic growth [52] Question: Free cash flow conversion and long-term targets - The company remains confident in achieving a 50% free cash flow conversion target in the long term, though timing is uncertain [53] Question: FX headwinds and potential incremental impact in Q4 - FX headwinds, primarily from the Mexican peso, are expected to continue into Q4, with potential incremental impacts depending on currency movements [54][57] Question: AMS and DRS growth outlook - AMS and DRS growth is expected to remain strong, with a mid-to-high-teens organic growth rate anticipated for the next few years [64] Question: Impact of new leadership on Global Services performance - New leadership is expected to bring fresh perspectives and operational improvements, with a focus on expanding services and strengthening compliance [67] Question: Details on the $10 million security loss - The loss was due to a theft in Latin America, with no further impact expected for the rest of the year [68]

Brink's (BCO) reported $1.26 billion in revenue for the quarter ended September 2024, representing a year-over-year increase of 2.5%. EPS of $1.51 for the same period compares to $1.92 a year ago.The reported revenue represents a surprise of -0.96% over the Zacks Consensus Estimate of $1.27 billion. With the consensus EPS estimate being $1.86, the EPS surprise was -18.82%.While investors scrutinize revenue and earnings changes year-over-year and how they compare with Wall Street expectations to determine th ...

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 ...