Brink(BCO) - 2022 Q3 - Quarterly Report

Part I - Financial Information Presents the company's comprehensive financial data, including statements, MD&A, market risks, and controls Financial Statements Presents The Brink's Company's unaudited condensed consolidated financial statements for the period ended September 30, 2022, along with detailed notes Condensed Consolidated Balance Sheets Provides a snapshot of the company's assets, liabilities, and equity at specific reporting dates Key Balance Sheet Items | Balance Sheet Items (In millions) | Sep 30, 2022 | Dec 31, 2021 | | :--- | :--- | :--- | | Total Current Assets | $2,446.7 | $1,999.5 | | Total Assets | $5,933.4 | $5,566.7 | | Total Current Liabilities | $1,347.9 | $1,429.0 | | Total Liabilities | $5,614.2 | $5,314.1 | | Total Equity | $319.2 | $252.6 | Condensed Consolidated Statements of Operations Details the company's revenues, expenses, and net income over specific periods Key Operating Metrics | Metric (In millions, except EPS) | Q3 2022 | Q3 2021 | 9 Months 2022 | 9 Months 2021 | | :--- | :--- | :--- | :--- | :--- | | Revenues | $1,136.7 | $1,075.5 | $3,344.6 | $3,102.0 | | Operating Profit | $59.5 | $74.2 | $218.4 | $209.2 | | Net Income Attributable to Brink's | $19.2 | $19.0 | $125.6 | $55.6 | | Diluted EPS (Continuing Operations) | $0.41 | $0.38 | $2.63 | $1.11 | Condensed Consolidated Statements of Comprehensive Income (Loss) Reports changes in equity from non-owner sources, including foreign currency translation adjustments - The company reported a comprehensive loss attributable to Brink's of $9.9 million for Q3 2022, compared to a loss of $4.1 million in Q3 2021 For the nine-month period, comprehensive income was $112.8 million in 2022, a significant increase from $41.0 million in 2021[10] - Foreign currency translation adjustments were a significant factor, contributing a loss of $42.2 million in Q3 2022 and $72.7 million in the first nine months of 2022[10] Condensed Consolidated Statements of Equity Outlines changes in shareholders' equity, including net income, share repurchases, and dividends - Total equity increased from $252.6 million at December 31, 2021, to $319.2 million at September 30, 2022 The increase was primarily driven by net income of $125.6 million, partially offset by share repurchases and dividends[13] - During the third quarter of 2022, the company repurchased 501,560 shares of its common stock for an aggregate of $27.3 million in cash[13] Condensed Consolidated Statements of Cash Flows Summarizes the cash inflows and outflows from operating, investing, and financing activities Summary of Cash Flow Activities | Cash Flow Activity (In millions) | Nine Months Ended Sep 30, 2022 | Nine Months Ended Sep 30, 2021 | | :--- | :--- | :--- | | Net cash provided by operating activities | $200.5 | $273.6 | | Net cash used by investing activities | $(112.1) | $(390.3) | | Net cash provided by financing activities | $291.9 | $234.6 | | Increase in Cash, cash equivalents and restricted cash | $262.2 | $79.6 | Notes to Condensed Consolidated Financial Statements Provides detailed explanations of accounting policies and financial data presented in the statements Management's Discussion and Analysis of Financial Condition and Results of Operations (MD&A) Management analyzes the company's financial performance, liquidity, and capital resources for the reported periods Results of Operations Details the company's revenue and operating profit performance, highlighting organic growth and currency impacts Consolidated Operating Results | Metric (In millions) | Q3 2022 | Q3 2021 | 9 Months 2022 | 9 Months 2021 | | :--- | :--- | :--- | :--- | :--- | | GAAP Revenues | $1,136.7 | $1,075.5 | $3,344.6 | $3,102.0 | | GAAP Operating Profit | $59.5 | $74.2 | $218.4 | $209.2 | | Non-GAAP Operating Profit | $126.8 | $115.9 | $362.9 | $316.6 | - For the first nine months of 2022, revenues increased 12% on an organic basis, primarily due to higher volume and inflation-based price increases[189] - The company continues to monitor the impact of the COVID-19 pandemic, which has led to reduced customer volumes, changes in operating procedures, and increased costs[178] Liquidity and Capital Resources Discusses the company's cash flow, debt, and available credit facilities to meet its financial obligations - As of September 30, 2022, the company had $320 million available under its Revolving Credit Facility[276] Debt and Cash Position | Metric (In millions) | Sep 30, 2022 | Dec 31, 2021 | | :--- | :--- | :--- | | Total Debt | $3,371.7 | $2,966.7 | | Cash and cash equivalents | $1,019.0 | $710.3 | | Net Debt (Non-GAAP) | $2,390.8 | $2,291.1 | - The company repurchased $27.3 million of its stock in Q3 2022 and an additional $150 million via an Accelerated Share Repurchase (ASR) program that concluded in April 2022[280] Quantitative and Qualitative Disclosures About Market Risk Identifies and describes the company's exposure to market risks, including interest rates and foreign currency - The company's primary market risks include interest rates, foreign currency exchange rates, and commodity prices, which are managed as part of an overall risk management program[291] Controls and Procedures Confirms the effectiveness of the company's disclosure controls and internal control over financial reporting - The CEO and CFO concluded that the company's disclosure controls and procedures were effective as of the end of the reporting period[292] - There were no changes in internal control over financial reporting during the quarter that materially affected, or are reasonably likely to materially affect, the company's internal controls[293] Part II - Other Information Contains additional required disclosures, including legal proceedings, equity sales, and regulatory exhibits Legal Proceedings Refers to specific notes in the financial statements for detailed information on ongoing legal matters - For information on legal proceedings, the report directs readers to Note 14, "Contingent Matters," in the financial statements[298] Unregistered Sales of Equity Securities and Use of Proceeds Provides details on the company's common stock repurchases and the utilization of proceeds Common Stock Repurchases | Period | Total Shares Purchased (Shares) | Average Price Paid per Share (USD) | | :--- | :--- | :--- | | July 2022 | — | $— | | August 2022 | 156,722 | (1) | | September 2022 | 344,838 | (1) | | Q3 2022 Total | 501,560 | $54.36 | - The repurchases were made under a $250 million share repurchase program authorized in Q4 2021, which expires on December 31, 2023[300] Exhibits Lists all supplementary documents filed with the report, including required certifications - Exhibits filed include CEO and CFO certifications pursuant to Sections 302 and 906 of the Sarbanes-Oxley Act[302]