The Brink's Company (NYSE:BCO) Q1 2023 Earnings Conference Call May 10, 2023 8:30 AM ET Company Participants Jesse Jenkins - VP, IR Mark Eubanks - CEO Kurt McMaken - CFO Conference Call Participants George Tong - Goldman Sachs Jasper Bibb - Truist Securities Operator Welcome to the Brink's Company's First Quarter 2023 Earnings Call. This morning, Brink's issued a press release detailing its first quarter 2023 results. The company also filed an 8-K that includes the release and the slides that will be used i ...

First-Quarter 2023 Earnings May 10, 2023 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: 2023 outlook, including revenue, operating prof ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 Title of each class Trading Symbol(s) Name of each exchange on which registered Common Stock, par value $1.00 per share BCO New York Stock Exchange FORM 10-Q ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15 (d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended March 31, 2023 ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15 (d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from ________ to ________ C ...

Financial Performance - Consolidated revenues for 2022 increased by $335.3 million to $4,535.5 million, representing an 8% increase compared to 2021, driven by organic growth in Latin America, North America, Rest of World, and Europe[131] - Non-GAAP operating profit rose by $79.8 million to $550.3 million, reflecting organic increases across all regions and the favorable impact of business acquisitions[136] - Income from continuing operations attributable to Brink's shareholders increased by $70.4 million to $173.5 million, with diluted earnings per share rising to $3.63 from $2.06 in 2021[135] - Non-GAAP diluted earnings per share from continuing operations increased to $5.99, up from $4.75 in 2021, marking a 26% increase[137] - Total operating profit increased by 11% to $699.1 million, with a non-GAAP operating profit of $550.3 million, reflecting a 17% increase[139] - The company reported a net income from continuing operations of $173.5 million for 2022, significantly higher than $103.1 million in 2021[190] - The non-GAAP margin improved to 12.1% in 2022, up from 11.2% in 2021[187] - The diluted EPS for 2022 was $5.99, compared to $4.75 in 2021, indicating a 26% increase year-over-year[190] Revenue Growth by Region - North America revenues increased by 13% to $1,584.1 million, driven by a 10% organic growth of $140.2 million and acquisitions contributing $41.6 million[139] - Latin America revenues rose by 8% to $1,210.6 million, with a significant 15% organic increase of $163.8 million, despite a negative currency impact of $82.1 million[139] - Europe revenues grew by 2% to $931.4 million, supported by a 9% organic increase of $85.1 million and acquisitions adding $43.1 million, offset by a currency impact of $114.1 million[139] - Rest of World revenues increased by 8% to $809.4 million, with a 14% organic growth of $104.5 million, despite a currency impact of $51.2 million[139] Costs and Expenses - The cost of revenues increased by 7% to $3,461.9 million, primarily due to higher labor and operational costs, partially offset by currency exchange impacts[132] - Selling, general, and administrative expenses rose by 9% to $687.0 million, influenced by organic labor increases and restructuring costs[132] - Corporate expenses decreased by $7.7 million to $148.8 million, primarily due to lower bad debt expenses and higher foreign currency transaction gains[150] Currency Impact - The unfavorable impact of currency exchange rates was $252.2 million, primarily driven by the euro and the Argentine peso[132] - The company recognized $41.7 million in pretax charges related to highly inflationary accounting in Argentina in 2022, including $37.6 million in currency remeasurement losses[158] - The Argentine peso declined approximately 42% against the U.S. dollar in 2022, following a 19% decline in 2021 and a 29% decline in 2020[301] - In 2022, the company recognized $37.6 million in pretax remeasurement losses due to currency fluctuations in Argentina, compared to $9.0 million in 2021 and $7.7 million in 2020[302] Strategic Initiatives - The company aims to enhance customer experience and operational excellence as part of its growth strategy, focusing on four strategic pillars: Growth and Customer Loyalty, Innovation, Operational Excellence, and Talent[125] - The company initiated a global restructuring plan expected to reduce workforce by 2,300 to 3,000 positions, aiming for annualized cost savings of $45 million to $55 million[153] - The company recognized $22.2 million in restructuring charges in 2022, primarily for severance costs, as part of its efforts to enable growth and reduce costs[153] Debt and Equity - As of December 31, 2022, total debt was $616.0 million, an increase of $436.1 million from the previous year[224] - Total equity increased to $570.2 million, up $317.6 million from 2021, primarily due to higher comprehensive income[224] - Debt as a percentage of capitalization decreased to 86% in 2022 from 92% in 2021, despite an increase in total debt[223] Cash Flow and Investments - Cash flows from operating activities increased by $1.9 million in 2022, primarily due to higher operating profit and an increase of $50 million in customer obligations[206] - Cash used for investing activities decreased by $123.5 million in 2022, primarily due to lower payments related to acquisitions compared to 2021[211] - Capital expenditures in 2022 amounted to $(182.6) million, an increase of $(14.7) million compared to 2021[211] Pension and Retirement Plans - The primary U.S. pension plan's ending funded status was $(24.0) million for 2022, with projected statuses of $(25.0) million in 2023 and $(24.8) million in 2024[240] - The company does not expect to make contributions to the primary U.S. pension plan until 2026[242] - The total projected payments from Brink's to U.S. retirement plans are estimated to be $401.8 million from 2023 to 2037, with $206.8 million allocated to UMWA plans and $124.3 million to Black Lung plans[248] Taxation - The effective income tax rate on continuing operations decreased to 18.3% in 2022 from 51.1% in 2021[174] - Non-GAAP effective tax rate for continuing operations was 30.3% in 2022, down from 33.6% in 2021[175] - The company recognized a $41.4 million income tax expense on a pre-tax income of $226.2 million in 2022, resulting in an effective tax rate of 18.3%[184] Acquisitions and Goodwill - The company has completed multiple business acquisitions, applying the acquisition method to allocate purchase prices based on estimated fair values[262] - Goodwill was not impaired as of October 1, 2022, with the fair value of each reporting unit exceeding its carrying value[268]

The Brink's Company (NYSE:BCO) Q4 2022 Earnings Conference Call February 22, 2023 8:30 AM ET Company Participants Jesse Jenkins - VP, IR Mark Eubanks - CEO Kurt McMaken - CFO Conference Call Participants George Tong - Goldman Sachs Tobey Sommer - Truist Securities Operator Welcome to The Brink's Company's Fourth Quarter and Full-Year 2022 Earnings. Brink's issued a press release detailing its fourth quarter and full-year 2022 results this morning. The company also filed an 8-K that includes the release and ...

Fourth-Quarter and Full-Year 2022 Earnings February 22, 2023 Safe Harbor Statements and Non-GAAP Results 2 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: 2023 outlook, including r ...

Financial Data and Key Metrics Changes - The company reported strong third quarter results with double-digit organic growth in revenue, operating profit, adjusted EBITDA, and EPS [6][7] - Revenue increased by 6% year-over-year, with organic growth at 13%, driven by strong performance in North America, Latin America, and the rest of the world [22][25] - Adjusted EBITDA rose by 11%, with a margin of 16.6%, up 80 basis points from the previous year [23][28] - EPS increased by 18% year-over-year, with a notable gain from the sale of a position in NGI [23][29] Business Line Data and Key Metrics Changes - The Digital Retail Solutions segment grew organically by over 20% in the first nine months of the year, indicating strong customer acceptance [11] - The ATM Management Services (AMS) business experienced over 50% organic growth year-to-date, driven by successful agreements and acquisitions [13][18] - The company expects the recent acquisition of Note Machine to contribute approximately $5 million in operating profit and $0.04 per share in the fourth quarter [9][18] Market Data and Key Metrics Changes - Organic growth in Europe was about 8%, while North America and Latin America saw double-digit growth [22] - The company faced a 14% negative impact from foreign exchange translation, primarily due to the Argentine Peso and Euro [23][25] Company Strategy and Development Direction - The company announced a global restructuring plan expected to yield $40 million in savings in 2023, focusing on sustainable fixed cost reductions [10][19] - The strategy includes a shift towards higher-margin services such as ATM Managed Services and Digital Retail Solutions [19][36] - The company remains committed to achieving mid to high single-digit organic revenue growth and 100 basis points of margin improvement annually [36] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about future performance despite macroeconomic challenges, citing the resilience of the business [37] - The company anticipates continued operational momentum in organic growth and profit expansion through the fourth quarter [8][10] - Management acknowledged the impact of inflation and currency devaluations but emphasized the ongoing need for cash management services [48][50] Other Important Information - The company is adjusting its full-year free cash flow target to approximately $255 million, reflecting changes in restructuring and working capital [32] - The acquisition of Note Machine is seen as a strategic move to enhance the company's capabilities in the ATM outsourcing market [18][36] Q&A Session Summary Question: What factors influenced revenue guidance beyond FX? - Management indicated that the organic growth model remains intact despite FX challenges, with Note Machine expected to contribute significantly in Q4 [40][44] Question: How does the company view margin targets in light of labor cost inflation? - Management expects to maintain pricing and cost inflation strategies while continuing to drive productivity and efficiency [41][42] Question: What is driving the strong performance in AMS compared to hardware companies? - The company highlighted differences in business models, with AMS benefiting from managed services while hardware companies face supply chain issues [45][46] Question: Is macro uncertainty affecting customer behavior? - Management noted that while inflation pressures exist, the fundamental need for cash management services remains strong [48][50] Question: What indicators would signal a customer pullback in a recession? - Management indicated that store closures or reduced service frequency would be key indicators, but no such trends have been observed yet [52][54] Question: How does pricing power compare to historical trends? - Management stated that pricing has remained consistent, with a balanced split between volume and pricing contributing to organic revenue growth [55][57]

[Part I - Financial Information](index=2&type=section&id=Part%20I%20-%20Financial%20Information) Presents the company's comprehensive financial data, including statements, MD&A, market risks, and controls [Financial Statements](index=2&type=section&id=Item%201.%20Financial%20Statements) 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](index=2&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) 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](index=4&type=section&id=Condensed%20Consolidated%20Statements%20of%20Operations) 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)](index=5&type=section&id=Condensed%20Consolidated%20Statements%20of%20Comprehensive%20Income%20(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](index=10&type=chunk) - 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](index=10&type=chunk) [Condensed Consolidated Statements of Equity](index=6&type=section&id=Condensed%20Consolidated%20Statements%20of%20Equity) 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](index=13&type=chunk) - 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](index=13&type=chunk) [Condensed Consolidated Statements of Cash Flows](index=8&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) 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](index=9&type=section&id=Notes%20to%20Condensed%20Consolidated%20Financial%20Statements) 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)](index=38&type=section&id=Item%202.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management analyzes the company's financial performance, liquidity, and capital resources for the reported periods [Results of Operations](index=39&type=section&id=RESULTS%20OF%20OPERATIONS) 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](index=189&type=chunk) - 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](index=178&type=chunk) [Liquidity and Capital Resources](index=59&type=section&id=LIQUIDITY%20AND%20CAPITAL%20RESOURCES) 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](index=276&type=chunk) 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](index=280&type=chunk) [Quantitative and Qualitative Disclosures About Market Risk](index=67&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) 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](index=291&type=chunk) [Controls and Procedures](index=67&type=section&id=Item%204.%20Controls%20and%20Procedures) 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](index=292&type=chunk) - 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](index=293&type=chunk) [Part II - Other Information](index=69&type=section&id=Part%20II%20-%20Other%20Information) Contains additional required disclosures, including legal proceedings, equity sales, and regulatory exhibits [Legal Proceedings](index=69&type=section&id=Item%201.%20Legal%20Proceedings) 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](index=298&type=chunk) [Unregistered Sales of Equity Securities and Use of Proceeds](index=69&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) 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](index=300&type=chunk) [Exhibits](index=70&type=section&id=Item%206.%20Exhibits) 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](index=302&type=chunk)

The Brink's Company (NYSE:BCO) Q2 2022 Earnings Conference Call August 3, 2022 8:30 AM ET Company Participants Ed Cunningham - Vice President, Investor Relations Mark Eubanks - President & Chief Executive Officer Ron Domanico - Chief Financial Officer Conference Call Participants Jasper Bibb - Truist Securities George Tong - Goldman Sachs Operator Welcome to the Brinks Company's Second Quarter 2022 Earning Call. Brinks issued a press release on second quarter results this morning. The company also filed an ...