Brink(BCO)2025-05-12 20:07Revenue 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]