Record Third Quarter Revenue, Operating Profit and Operating Profit Margin
Increased Full-Year Free Cash Flow Guidance to Top Half of Range -
AMS and DRS Revenue Exceeds 20% of Total Trailing Twelve-Month Revenue
Year-to-Date
Results Highlights:
- Q3 Revenue up 8%, reflecting 6% organic growth
- Q3 Operating profit: GAAP up 131% to
$138 M; non-GAAP up 31% to$166 M - Q3 Operating profit margin: GAAP up 115% to 11.2%; non-GAAP up 21% to 13.5%
- Q3 GAAP net income up 138% to
$46 M; adjusted EBITDA up 22% to$231 M - Q3 EPS: GAAP
$0.97 ; non-GAAP$1.92 - YTD GAAP net cash from operations up
$93 M to$293 M; free cash flow up$143M to$216 M
“I am encouraged by the work of our team as we develop a consistent business model under the Brink's Business System. Our strong DRS and AMS pipeline and our operating efficiency initiatives will serve us well as we manage through changing economic environments. As we look forward, we remain well positioned to deliver on our commitments and continue to create value for our shareholders.”
Third-quarter results are summarized in the following table:
(In millions, except for per share amounts) | Third-Quarter 2023 (vs. 2022) | ||||||||||||
GAAP | Change | Non-GAAP | Change | Constant Currency Change(b) | |||||||||
Revenue | $ | 1,227 | 8% | $ | 1,227 | 8% | 9% | ||||||
Operating Profit | $ | 138 | 131% | $ | 166 | 31% | 43% | ||||||
Operating Margin | 11.2 | % | 600 bps | 13.5 | % | 230 bps | 340 bps | ||||||
Net Income / Adjusted EBITDA(a) | $ | 46 | 138% | $ | 231 | 22% | 29% | ||||||
EPS | $ | 0.97 | 137% | $ | 1.92 | 39% | 56% |
(a) | The non-GAAP financial metric, adjusted EBITDA, is presented with its corresponding GAAP metric, net income attributable to Brink's. |
(b) | Constant currency represents 2023 Non-GAAP results at 2022 exchange rates. |
2023 Guidance (Unaudited)
(In millions, except for percentages and per share amounts)
The 2023 Non-GAAP outlook amounts cannot be reconciled to GAAP without unreasonable effort, as we are unable to accurately forecast certain amounts that are necessary for reconciliation, including the impact of highly inflationary accounting on our
2023 Non-GAAP Outlook | ||||
Revenues | $ | 4,800 - 4,950 | ||
Operating profit | $ | 625 - 675 | ||
Operating profit margin | 12.6% - 14.0% | |||
Adjusted EBITDA | $ | 865 - 915 | ||
Adjusted EBITDA margin | 17.5% - 19.0% | |||
Free cash flow before dividends | $ | 350 - 375 | ||
EPS from continuing operations attributable to Brink's | $ | 6.45 - 7.15 |
Conference Call
Brink’s will host a conference call on
The Brink’s Company and subsidiaries
(In millions, except for per share amounts) (Unaudited)
Condensed Consolidated Balance Sheets
Assets | ||||||
Current assets: | ||||||
Cash and cash equivalents | $ | 972.0 | 933.5 | |||
Restricted cash | 438.5 | 387.0 | ||||
Accounts receivable, net | 862.2 | 801.3 | ||||
Prepaid expenses and other | 324.7 | 340.6 | ||||
Total current assets | 2,597.4 | 2,462.4 | ||||
Right-of-use assets, net | 314.5 | 338.7 | ||||
Property and equipment, net | 935.3 | 965.5 | ||||
1,450.9 | 1,448.1 | |||||
Other intangibles | 535.5 | 492.4 | ||||
Deferred tax assets, net | 246.2 | 241.9 | ||||
Other | 286.2 | 315.8 | ||||
Total assets | $ | 6,366.0 | 6,264.8 | |||
Liabilities and Equity | ||||||
Current liabilities: | ||||||
Short-term borrowings | 47.2 | 124.9 | ||||
Current maturities of long-term debt | 82.4 | 92.0 | ||||
Accounts payable | 296.5 | 206.7 | ||||
Accrued liabilities | 1,019.4 | 1,016.7 | ||||
Restricted cash held for customers | 229.3 | 184.3 | ||||
Total current liabilities | 1,674.8 | 1,624.6 | ||||
Long-term debt | 3,273.2 | 3,202.2 | ||||
Accrued pension costs | 131.0 | 127.6 | ||||
Retirement benefits other than pensions | 174.5 | 170.0 | ||||
Lease liabilities | 249.9 | 269.7 | ||||
Deferred tax liabilities | 67.8 | 59.6 | ||||
Other | 224.6 | 226.8 | ||||
Total liabilities | 5,795.8 | 5,680.5 | ||||
Equity: | ||||||
Common stock, par value | ||||||
Shares authorized: 100.0 | ||||||
Shares issued and outstanding: 2023 - 45.3; 2022 - 46.3 | 46.3 | 45.3 | ||||
Capital in excess of par value | 684.1 | 680.3 | ||||
Retained earnings | 417.2 | 397.8 | ||||
Accumulated other comprehensive income (loss) | (700.5 | ) | (660.6 | ) | ||
Brink's shareholders | 447.1 | 462.8 | ||||
Noncontrolling interests | 123.1 | 121.5 | ||||
Total equity | 570.2 | 584.3 | ||||
Total liabilities and equity | $ | 6,366.0 | 6,264.8 |
The Brink’s Company and subsidiaries
(In millions) (Unaudited)
Condensed Consolidated Statements of Cash Flows
Nine Months Ended | ||||||
2022 | 2023 | |||||
Cash flows from operating activities: | ||||||
Net income | $ | 134.9 | 102.8 | |||
Adjustments to reconcile net income to net cash provided by operating activities: | ||||||
(Gain) loss from discontinued operations, net of tax | 0.2 | (0.5 | ) | |||
Depreciation and amortization | 179.9 | 206.3 | ||||
Share-based compensation expense | 36.3 | 25.6 | ||||
Deferred income taxes | (57.3 | ) | 3.7 | |||
(Gain) loss on sale of property, equipment and marketable securities | 0.8 | 2.2 | ||||
Impairment losses | 7.9 | 8.2 | ||||
Retirement benefit funding (more) less than expense: | ||||||
Pension | (4.7 | ) | (6.9 | ) | ||
Other than pension | 2.8 | (6.0 | ) | |||
Remeasurement losses due to | 24.4 | 23.9 | ||||
Other operating | 29.7 | 17.1 | ||||
Changes in operating assets and liabilities, net of effects of acquisitions: | ||||||
(Increase) decrease in accounts receivable and income taxes receivable | (175.7 | ) | 30.8 | |||
Increase (decrease) in accounts payable, income taxes payable and accrued liabilities | 108.7 | (61.0 | ) | |||
Increase (decrease) in restricted cash held for customers | (4.4 | ) | (44.9 | ) | ||
Increase (decrease) in customer obligations | 4.0 | (5.5 | ) | |||
Increase in prepaid and other current assets | (79.8 | ) | 5.1 | |||
Other | (7.2 | ) | (7.9 | ) | ||
Net cash provided by operating activities | 200.5 | 293.0 | ||||
Cash flows from investing activities: | ||||||
Capital expenditures | (131.5 | ) | (133.1 | ) | ||
Acquisitions, net of cash acquired | (14.2 | ) | — | |||
Dispositions, net of cash disposed | — | 1.1 | ||||
Marketable securities: | ||||||
Purchases | (18.3 | ) | (58.3 | ) | ||
Sales | 7.7 | 48.7 | ||||
Cash proceeds from sale of property and equipment | 3.3 | 5.7 | ||||
Cash proceeds from settlement of cross currency swap | 64.3 | — | ||||
Net change in loans held for investment | (23.3 | ) | (12.3 | ) | ||
Other | (0.1 | ) | (0.6 | ) | ||
Discontinued operations | — | 0.9 | ||||
Net cash used by investing activities | (112.1 | ) | (147.9 | ) | ||
Cash flows from financing activities: | ||||||
Borrowings (repayments) of debt: | ||||||
Short-term borrowings | 11.5 | 76.6 | ||||
Long-term revolving credit facilities: | ||||||
Borrowings | 5,036.1 | 6,640.5 | ||||
Repayments | (4,819.1 | ) | (6,713.1 | ) | ||
Other long-term debt: | ||||||
Borrowings | 213.2 | 16.4 | ||||
Repayments | (63.7 | ) | (71.1 | ) | ||
Acquisition of noncontrolling interest | (7.8 | ) | (0.6 | ) | ||
Cash paid for acquisition related settlements and obligations | (2.8 | ) | (10.5 | ) | ||
Debt financing costs | (5.5 | ) | — | |||
Repurchase shares of Brink's common stock | (27.3 | ) | (105.7 | ) | ||
Dividends to: | ||||||
Shareholders of Brink’s | (28.3 | ) | (29.7 | ) | ||
Noncontrolling interests in subsidiaries | (6.9 | ) | (6.5 | ) | ||
Tax withholdings associated with share-based compensation | (10.2 | ) | (7.6 | ) | ||
Other | 2.7 | 3.9 | ||||
Net cash provided (used) by financing activities | 291.9 | (207.4 | ) | |||
Effect of exchange rate changes on cash | (118.1 | ) | (27.7 | ) | ||
Cash, cash equivalents and restricted cash: | ||||||
Increase (decrease) | 262.2 | (90.0 | ) | |||
Balance at beginning of period | 1,086.7 | 1,410.5 | ||||
Balance at end of period | $ | 1,348.9 | 1,320.5 |
Supplemental Cash Flow Information | Nine Months Ended | |||||
2022 | 2023 | |||||
Cash paid for income taxes, net | $ | (101.6 | ) | (74.5 | ) |
The Brink’s Company and subsidiaries
(In millions, except for per share amounts) (Unaudited)
Third-Quarter 2023 vs. 2022
GAAP | Organic | Acquisitions / | % Change | ||||||||||||||||||
3Q'22 | Change | Dispositions(a) | Currency(b) | 3Q'23 | Total | Organic | |||||||||||||||
Revenues: | |||||||||||||||||||||
$ | 401 | (3 | ) | 1 | (1 | ) | 398 | (1 | ) | (1 | ) | ||||||||||
301 | 71 | 1 | (33 | ) | 340 | 13 | 24 | ||||||||||||||
220 | 12 | 35 | 21 | 288 | 31 | 6 | |||||||||||||||
Rest of World | 215 | (9 | ) | (2 | ) | (2 | ) | 202 | (6 | ) | (4 | ) | |||||||||
Segment revenues(c) | $ | 1,137 | 72 | 35 | (15 | ) | 1,227 | 8 | 6 | ||||||||||||
Revenues - GAAP | $ | 1,137 | 72 | 35 | (15 | ) | 1,227 | 8 | 6 | ||||||||||||
Operating profit: | |||||||||||||||||||||
$ | 38 | 9 | — | — | 48 | 24 | 23 | ||||||||||||||
67 | 20 | — | (19 | ) | 68 | 2 | 31 | ||||||||||||||
26 | 2 | 5 | 3 | 36 | 38 | 7 | |||||||||||||||
Rest of World | 48 | (5 | ) | — | (1 | ) | 43 | (12 | ) | (11 | ) | ||||||||||
Segment operating profit | 179 | 26 | 6 | (17 | ) | 194 | 8 | 14 | |||||||||||||
Corporate(d) | (52 | ) | 23 | — | 2 | (28 | ) | (47 | ) | (44 | ) | ||||||||||
Operating profit - non-GAAP | $ | 127 | 49 | 6 | (15 | ) | 166 | 31 | 38 | ||||||||||||
Other items not allocated to segments(e) | (67 | ) | 18 | 17 | 4 | (29 | ) | (58 | ) | (27 | ) | ||||||||||
Operating profit - GAAP | $ | 60 | 67 | 23 | (12 | ) | 138 | fav | fav | ||||||||||||
GAAP interest expense | (35 | ) | (54 | ) | 55 | ||||||||||||||||
GAAP interest and other income (expense) | 6 | 3 | (54 | ) | |||||||||||||||||
GAAP provision (benefit) for income taxes | 9 | 37 | unfav | ||||||||||||||||||
GAAP noncontrolling interests | 3 | 4 | 12 | ||||||||||||||||||
GAAP income from continuing operations(f) | 19 | 46 | fav | ||||||||||||||||||
GAAP EPS(f) | $ | 0.41 | 0.97 | fav | |||||||||||||||||
GAAP weighted-average diluted shares | 47.5 | 47.1 | (1 | ) | |||||||||||||||||
Non-GAAP(g) | Organic | Acquisitions / | % Change | |||||||||||||||
3Q'22 | Change | Dispositions(a) | Currency(b) | 3Q'23 | Total | Organic | ||||||||||||
Segment revenues - GAAP/non-GAAP | $ | 1,137 | 72 | 35 | (15 | ) | 1,227 | 8 | 6 | |||||||||
Non-GAAP operating profit | 127 | 49 | 6 | (15 | ) | 166 | 31 | 38 | ||||||||||
Non-GAAP interest expense | (34 | ) | (54 | ) | 56 | |||||||||||||
Non-GAAP interest and other income (expense) | 7 | 23 | fav | |||||||||||||||
Non-GAAP provision for income taxes | 30 | 41 | 35 | |||||||||||||||
Non-GAAP noncontrolling interests | 3 | 4 | 24 | |||||||||||||||
Non-GAAP income from continuing operations(f) | 66 | 91 | 38 | |||||||||||||||
Non-GAAP EPS(f) | $ | 1.38 | 1.92 | 39 | ||||||||||||||
Non-GAAP weighted-average diluted shares | 47.5 | 47.1 | (1 | ) | ||||||||||||||
Amounts may not add due to rounding.
(a) | Non-GAAP amounts include the impact of prior year comparable period results for acquired and disposed businesses. GAAP results also include the impact of acquisition-related intangible amortization, restructuring and other charges, and disposition related gains/losses. |
(b) | The amounts in the “Currency” column consist of the effects of |
(c) | Segment revenues equal our total reported non-GAAP revenues. |
(d) | Corporate expenses are not allocated to segment results. Corporate expenses include salaries and other costs to manage the global business and to perform activities required of public companies. |
(e) | See pages 8-10 for more information. |
(f) | Attributable to Brink's. |
(g) | Non-GAAP results are reconciled to applicable GAAP results on pages 11-14. |
The Brink’s Company and subsidiaries
(In millions, except for per share amounts) (Unaudited)
Nine Months Ended
GAAP | Organic | Acquisitions / | % Change | ||||||||||||||||||
2022 | Change | Dispositions(a) | Currency(b) | 2023 | Total | Organic | |||||||||||||||
Revenues: | |||||||||||||||||||||
$ | 1,171 | 28 | 3 | (4 | ) | 1,197 | 2 | 2 | |||||||||||||
899 | 191 | 2 | (103 | ) | 989 | 10 | 21 | ||||||||||||||
669 | 54 | 107 | 12 | 842 | 26 | 8 | |||||||||||||||
Rest of World | 606 | 20 | (5 | ) | (20 | ) | 600 | (1 | ) | 3 | |||||||||||
Segment revenues(c) | $ | 3,345 | 293 | 107 | (115 | ) | 3,629 | 9 | 9 | ||||||||||||
Revenues - GAAP | $ | 3,345 | 293 | 107 | (115 | ) | 3,629 | 9 | 9 | ||||||||||||
Operating profit: | |||||||||||||||||||||
$ | 97 | 26 | 1 | — | 124 | 28 | 27 | ||||||||||||||
194 | 52 | 1 | (46 | ) | 201 | 3 | 27 | ||||||||||||||
63 | 8 | 14 | 2 | 87 | 38 | 13 | |||||||||||||||
Rest of World | 121 | 3 | 1 | (4 | ) | 121 | — | 3 | |||||||||||||
Segment operating profit | 475 | 90 | 16 | (48 | ) | 533 | 12 | 19 | |||||||||||||
Corporate(d) | (112 | ) | (1 | ) | — | 6 | (107 | ) | (4 | ) | 1 | ||||||||||
Operating profit - non-GAAP | $ | 363 | 89 | 16 | (42 | ) | 426 | 17 | 24 | ||||||||||||
Other items not allocated to segments(e) | (145 | ) | 35 | 10 | (2 | ) | (102 | ) | (29 | ) | (24 | ) | |||||||||
Operating profit - GAAP | $ | 218 | 123 | 25 | (44 | ) | 323 | 48 | 56 | ||||||||||||
GAAP interest expense | (95 | ) | (152 | ) | 59 | ||||||||||||||||
GAAP interest and other income (expense) | 8 | 12 | 39 | ||||||||||||||||||
GAAP provision (benefit) for income taxes | (3 | ) | 81 | unfav | |||||||||||||||||
GAAP noncontrolling interests | 9 | 10 | 9 | ||||||||||||||||||
GAAP income from continuing operations(f) | 126 | 92 | (27 | ) | |||||||||||||||||
GAAP EPS(f) | $ | 2.63 | 1.95 | (26 | ) | ||||||||||||||||
GAAP weighted-average diluted shares | 47.9 | 47.3 | (1 | ) | |||||||||||||||||
Non-GAAP(g) | Organic | Acquisitions / | % Change | |||||||||||||||
2022 | Change | Dispositions(a) | Currency(b) | 2023 | Total | Organic | ||||||||||||
Segment revenues - GAAP/non-GAAP | $ | 3,345 | 293 | 107 | (115 | ) | 3,629 | 9 | 9 | |||||||||
Non-GAAP operating profit | 363 | 89 | 16 | (42 | ) | 426 | 17 | 24 | ||||||||||
Non-GAAP interest expense | (94 | ) | (151 | ) | 60 | |||||||||||||
Non-GAAP interest and other income (expense) | 13 | 29 | fav | |||||||||||||||
Non-GAAP provision for income taxes | 85 | 91 | 7 | |||||||||||||||
Non-GAAP noncontrolling interests | 9 | 10 | 11 | |||||||||||||||
Non-GAAP income from continuing operations(f) | 187 | 202 | 8 | |||||||||||||||
Non-GAAP EPS(f) | $ | 3.90 | 4.27 | 9 | ||||||||||||||
Non-GAAP weighted-average diluted shares | 47.9 | 47.3 | (1 | ) | ||||||||||||||
Amounts may not add due to rounding.
See page 5 for footnote explanations.
About The Brink’s Company
The Brink’s Company (NYSE:BCO) is a leading global provider of cash and valuables management, digital retail solutions, and ATM managed services. Our customers include financial institutions, retailers, government agencies, mints, jewelers and other commercial operations. Our network of operations in 52 countries serves customers in more than 100 countries. For more information, please visit our website at www.brinks.com or call 804-289-9709.
Forward-Looking Statements
This release contains forward-looking information. Words such as "anticipate," "assume," "estimate," "expect," “target” "project," "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: 2023 outlook, including revenue, operating profit, adjusted EBITDA, earnings per share, and free cash flow (and drivers thereof), the impact of the global restructuring plan, expected impact from deployment of technology-enabled services, including digital retail solutions and ATM managed services, strategic priorities and initiatives, including the Brink's Business System, and expected share repurchase activity.
Forward-looking information in this document is subject to known and unknown risks, uncertainties and contingencies, which are difficult to predict or quantify, and which could cause actual results, performance or achievements to differ materially from those that are anticipated. These risks, uncertainties and contingencies, many of which are beyond our control, include, but are not limited to: our ability to improve profitability and execute further cost and operational improvement and efficiencies in our core businesses; our ability to improve service levels and quality in our core businesses; market volatility and commodity price fluctuations; general economic issues, including supply chain disruptions, fuel price increases, changes in interest rates, and interest rate increases; seasonality, pricing and other competitive industry factors; investment in information technology (“IT”) and its impact on revenue and profit growth; our ability to maintain an effective IT infrastructure and safeguard confidential information, including from a cybersecurity incident; our ability to effectively develop and implement solutions for our customers; risks associated with operating in foreign countries, including changing political, labor and economic conditions (including political conflict or unrest), regulatory issues (including the imposition of international sanctions, including by the
This list of risks, uncertainties and contingencies is not intended to be exhaustive. Additional factors that could cause our results to differ materially from those described in the forward-looking statements can be found under "Risk Factors" in Item 1A of our Annual Report on Form 10-K for the period ended
The Brink’s Company and subsidiaries
Segment Results: 2022 and 2023 (Unaudited)
(In millions, except for percentages)
Revenues | ||||||||||||||||||||||||||||
2022 | 2023 | |||||||||||||||||||||||||||
1Q | 2Q | 3Q | 4Q | Full Year | 1Q | 2Q | 3Q | Nine Months | ||||||||||||||||||||
Revenues: | ||||||||||||||||||||||||||||
$ | 368.8 | 401.6 | 400.6 | 413.1 | 1,584.1 | $ | 401.9 | 397.4 | 398.1 | 1,197.4 | ||||||||||||||||||
291.3 | 306.3 | 301.1 | 311.9 | 1,210.6 | 315.5 | 333.9 | 339.6 | 989.0 | ||||||||||||||||||||
222.1 | 226.7 | 220.0 | 262.6 | 931.4 | 268.7 | 285.9 | 287.8 | 842.4 | ||||||||||||||||||||
Rest of World | 191.8 | 199.3 | 215.0 | 203.3 | 809.4 | 199.3 | 199.0 | 201.9 | 600.2 | |||||||||||||||||||
Segment revenues - GAAP and Non-GAAP | $ | 1,074.0 | 1,133.9 | 1,136.7 | 1,190.9 | 4,535.5 | $ | 1,185.4 | 1,216.2 | 1,227.4 | 3,629.0 | |||||||||||||||||
Operating Profit | ||||||||||||||||||||||||||||
2022 | 2023 | |||||||||||||||||||||||||||
1Q | 2Q | 3Q | 4Q | Full Year | 1Q | 2Q | 3Q | Nine Months | ||||||||||||||||||||
Operating profit: | ||||||||||||||||||||||||||||
$ | 24.4 | 34.1 | 38.2 | 62.4 | 159.1 | $ | 38.6 | 37.5 | 47.5 | 123.6 | ||||||||||||||||||
63.0 | 64.7 | 66.5 | 83.5 | 277.7 | 66.6 | 65.9 | 68.1 | 200.6 | ||||||||||||||||||||
14.8 | 22.4 | 25.9 | 35.3 | 98.4 | 22.0 | 29.3 | 35.8 | 87.1 | ||||||||||||||||||||
Rest of World | 33.1 | 39.5 | 48.3 | 43.0 | 163.9 | 37.3 | 41.3 | 42.6 | 121.2 | |||||||||||||||||||
Corporate | (23.2 | ) | (36.7 | ) | (52.1 | ) | (36.8 | ) | (148.8 | ) | (37.1 | ) | (42.2 | ) | (27.7 | ) | (107.0 | ) | ||||||||||
Non-GAAP | 112.1 | 124.0 | 126.8 | 187.4 | 550.3 | 127.4 | 131.8 | 166.3 | 425.5 | |||||||||||||||||||
Other items not allocated to segments(a) | ||||||||||||||||||||||||||||
Reorganization and Restructuring | (11.7 | ) | (2.7 | ) | (19.6 | ) | (4.8 | ) | (38.8 | ) | (14.2 | ) | — | (0.4 | ) | (14.6 | ) | |||||||||||
Acquisitions and dispositions | (15.2 | ) | (15.4 | ) | (35.7 | ) | (20.3 | ) | (86.6 | ) | (22.0 | ) | (15.0 | ) | (19.4 | ) | (56.4 | ) | ||||||||||
(6.1 | ) | (9.0 | ) | (12.0 | ) | (14.6 | ) | (41.7 | ) | (11.2 | ) | (11.0 | ) | (8.1 | ) | (30.3 | ) | |||||||||||
Change in allowance estimate | (16.7 | ) | 0.4 | 0.3 | 0.4 | (15.6 | ) | — | — | — | — | |||||||||||||||||
Ship loss matter | — | — | — | (4.9 | ) | (4.9 | ) | — | — | — | — | |||||||||||||||||
— | (0.8 | ) | (0.3 | ) | (0.3 | ) | (1.4 | ) | (0.2 | ) | (0.2 | ) | — | (0.4 | ) | |||||||||||||
Reporting compliance | — | — | — | — | — | — | — | (0.7 | ) | (0.7 | ) | |||||||||||||||||
GAAP | $ | 62.4 | 96.5 | 59.5 | 142.9 | 361.3 | $ | 79.8 | 105.6 | 137.7 | 323.1 | |||||||||||||||||
Margin | ||||||||||||||||||||||||||||
2022 | 2023 | |||||||||||||||||||||||||||
1Q | 2Q | 3Q | 4Q | Full Year | 1Q | 2Q | 3Q | Nine Months | ||||||||||||||||||||
Margin: | ||||||||||||||||||||||||||||
6.6 | % | 8.5 | 9.5 | 15.1 | 10.0 | 9.6 | % | 9.4 | 11.9 | 10.3 | ||||||||||||||||||
21.6 | 21.1 | 22.1 | 26.8 | 22.9 | 21.1 | 19.7 | 20.1 | 20.3 | ||||||||||||||||||||
6.7 | 9.9 | 11.8 | 13.4 | 10.6 | 8.2 | 10.2 | 12.4 | 10.3 | ||||||||||||||||||||
Rest of World | 17.3 | 19.8 | 22.5 | 21.2 | 20.2 | 18.7 | 20.8 | 21.1 | 20.2 | |||||||||||||||||||
Non-GAAP | 10.4 | 10.9 | 11.2 | 15.7 | 12.1 | 10.7 | 10.8 | 13.5 | 11.7 | |||||||||||||||||||
Other items not allocated to segments(a) | (4.6 | ) | (2.4 | ) | (6.0 | ) | (3.7 | ) | (4.1 | ) | (4.0 | ) | (2.1 | ) | (2.3 | ) | (2.8 | ) | ||||||||||
GAAP | 5.8 | % | 8.5 | 5.2 | 12.0 | 8.0 | 6.7 | % | 8.7 | 11.2 | 8.9 |
(a) See explanation of items on page 9-10.
The Brink’s Company and subsidiaries
Other Items Not Allocated To Segments (Unaudited)
(In millions)
Brink’s measures its segment results before income and expenses for corporate activities and for certain other items. See below for a summary of the other items not allocated to segments.
Reorganization and Restructuring
2022 Global Restructuring Plan
In the first quarter of 2023, management completed the review and approval of the previously announced restructuring plan across our global business operations. The actions were taken to enable growth, reduce costs and related infrastructure, and to mitigate the potential impact of external economic conditions. In total, we have recognized
Other Restructurings
Management periodically implements restructuring actions in targeted sections of our business. As a result of these actions, we recognized
Due to the unique circumstances around these charges, these management-directed items have not been allocated to segment results and are excluded from non-GAAP results.
Acquisitions and dispositions Certain acquisition and disposition items that are not considered part of the ongoing activities of the
business and are special in nature are consistently excluded from non-GAAP results. These items are described below:
2023 Acquisitions and Dispositions
- Amortization expense for acquisition-related intangible assets was
$43 .2 million in the first nine months of 2023. - We derecognized a contingent consideration liability related to the NoteMachine business acquisition and recognized a gain of
$4 .8 million. - We recognized
$4 .7 million in charges inArgentina in the first nine months of 2023 for an inflation-adjusted labor increase to expected payments to union workers of the Maco Transportadora and Maco Litoral businesses (together "Maco"). Although the Maco operations were acquired in 2017, formal antitrust approval was obtained in 2021, which triggered negotiation and approval of the expected payments in 2022. - Net charges of
$3 .4 million were incurred for post-acquisition adjustments to indemnification assets related to previous business acquisitions. - We incurred
$2 .0 million in integration costs, primarily related to PAI, in the first nine months of 2023. - Transaction costs related to business acquisitions were
$3 .6 million in the first nine months of 2023. - We recognized a
$2 .0 million loss on the disposition ofRussia -based operations in the first nine months of 2023. - Compensation expense related to the retention of key PAI employees was
$1 .3 million in the first nine months of 2023.
2022 Acquisitions and Dispositions
- Amortization expense for acquisition-related intangible assets was
$52 .0 million in 2022. - We recognized
$12 .5 million in charges inArgentina in 2022 for expected payments to union workers of the Maco businesses. - Net charges of
$7.8 million were incurred for post-acquisition adjustments to indemnification assets related to previous business acquisitions. - We incurred
$4 .8 million in integration costs, primarily related to PAI and G4S, in 2022. - Transaction costs related to business acquisitions were
$5 .6 million in 2022. - Restructuring costs related to acquisitions were
$0 .2 million in 2022. - Compensation expense related to the retention of key PAI employees was
$3 .5 million in 2022.
Change in allowance estimate In the first quarter of 2022, we refined our global methodology of estimating the allowance for doubtful accounts. Our previous method to estimate currently expected credit losses in receivables (the allowance) was weighted significantly to a review of historical loss rates and specific identification of higher risk customer accounts. It also considered current and expected economic conditions, particularly the effects of the coronavirus (COVID-19) pandemic, in determining an appropriate allowance. As many of our regions begin to recover from the pandemic, we have re-assessed those earlier assumptions and estimates. Our updated method now also includes an estimated allowance for accounts receivable significantly past due in order to adjust for at-risk receivables not captured in our previous method. As part of the analysis under the updated estimation methodology, we noted an increase in accounts receivable significantly past due, particularly in the
Ship loss matter In 2015, Brink’s placed cargo containing customer valuables on a ship which suffered damages and losses. Brink’s cargo did not suffer any damage. The ship owner declared a general average claim to recover losses to the ship and cargo from customers with undamaged cargo, including Brink’s, based on the pro rata value of ship cargo. In the fourth quarter of 2022, we recognized a
Reporting compliance Certain compliance costs (primarily third party expenses) are excluded from segment and non-GAAP results. In the first nine months of 2023, we incurred
The Brink’s Company and subsidiaries
Non-GAAP Results Reconciled to GAAP (Unaudited)
(In millions, except for percentages and per share amounts)
Non-GAAP results described in this press release are financial measures that are not required by or presented in accordance with
Non-GAAP results adjust the quarterly Non-GAAP tax rates so that the Non-GAAP tax rate in each of the quarters is equal to the full-year estimated Non-GAAP tax rate. The full-year Non-GAAP tax rate in both years excludes certain pretax and income tax amounts. Amounts reported for prior periods have been updated in this report to present information consistently for all periods presented.
The 2023 Non-GAAP outlook amounts for operating profit, EPS from continuing operations, free cash flow before dividends and Adjusted EBITDA cannot be reconciled to GAAP without unreasonable effort. We cannot reconcile these amounts to GAAP because we are unable to accurately forecast the impact of highly inflationary accounting on our
The Non-GAAP financial measures are intended to provide investors with a supplemental comparison of our operating results and trends for the periods presented. Our management believes these measures are also useful to investors as such measures allow investors to evaluate our performance using the same metrics that our management uses to evaluate past performance and prospects for future performance. We do not consider these items to be reflective of our operating performance as they result from events and circumstances that are not a part of our core business. Additionally, non-GAAP results are utilized as performance measures in certain management incentive compensation plans. Non-GAAP results should not be considered as an alternative to revenue, income or earnings per share amounts determined in accordance with GAAP and should be read in conjunction with their GAAP counterparts. Non-GAAP financial measures may not be comparable to Non-GAAP financial measures presented by other companies.
Non-GAAP Results Reconciled to GAAP
YTD '22 | YTD '23 | |||||||||||||||||
Pre-tax income | Income taxes | Effective tax rate | Pre-tax income | Income taxes | Effective tax rate | |||||||||||||
Effective Income Tax Rate | ||||||||||||||||||
GAAP | $ | 131.8 | (3.3 | ) | (2.5 | )% | $ | 183.3 | 81.0 | 44.2 | % | |||||||
Retirement plans(c) | 6.5 | 2.1 | (6.2 | ) | (1.3 | ) | ||||||||||||
Reorganization and Restructuring(a) | 34.0 | 6.1 | 14.6 | 2.7 | ||||||||||||||
Acquisitions and dispositions(a) | 63.1 | 14.5 | 57.3 | 7.7 | ||||||||||||||
29.0 | (0.5 | ) | 53.6 | (1.6 | ) | |||||||||||||
Change in allowance estimate(a) | 16.0 | 3.8 | — | — | ||||||||||||||
Valuation allowance on tax credits(f) | — | 52.8 | — | (6.7 | ) | |||||||||||||
1.1 | 0.3 | 0.4 | 0.1 | |||||||||||||||
Reporting compliance(a) | — | — | 0.7 | — | ||||||||||||||
Income tax rate adjustment(b) | — | 9.5 | — | 9.2 | ||||||||||||||
Non-GAAP | $ | 281.5 | 85.3 | 30.3 | % | $ | 303.7 | 91.1 | 30.0 | % |
Amounts may not add due to rounding.
(a) | See “Other Items Not Allocated To Segments” on pages 8-10 for details. We do not consider these items to be reflective of our operating performance as they result from events and circumstances that are not a part of our core business. |
(b) | Non-GAAP income from continuing operations and non-GAAP EPS have been adjusted to reflect an effective income tax rate in each interim period equal to the full-year non-GAAP effective income tax rate. The full-year non-GAAP effective tax rate is estimated at 30.0% for 2023 and was 30.3% for 2022. |
(c) | Our |
(d) | Due to reorganization and restructuring activities, there was a |
(e) | Due to the impact of |
(f) | In 2022, we released a portion of our valuation allowance on certain |
(g) | Adjusted EBITDA is defined as non-GAAP income from continuing operations excluding the impact of non-GAAP interest expense, non-GAAP income tax provision, non-GAAP depreciation and amortization, non-GAAP share-based compensation and non-GAAP marketable securities (gain) loss. |
The Brink’s Company and subsidiaries
Non-GAAP Results Reconciled to GAAP (Unaudited) - continued
(In millions, except for percentages and per share amounts)
2022 | 2023 | |||||||||||||||||||||||||||
1Q | 2Q | 3Q | 4Q | Full Year | 1Q | 2Q | 3Q | Nine Months | ||||||||||||||||||||
Revenues: | ||||||||||||||||||||||||||||
GAAP | $ | 1,074.0 | 1,133.9 | 1,136.7 | 1,190.9 | 4,535.5 | $ | 1,185.4 | 1,216.2 | 1,227.4 | 3,629.0 | |||||||||||||||||
Non-GAAP | $ | 1,074.0 | 1,133.9 | 1,136.7 | 1,190.9 | 4,535.5 | $ | 1,185.4 | 1,216.2 | 1,227.4 | 3,629.0 | |||||||||||||||||
Operating profit (loss): | ||||||||||||||||||||||||||||
GAAP | $ | 62.4 | 96.5 | 59.5 | 142.9 | 361.3 | $ | 79.8 | 105.6 | 137.7 | 323.1 | |||||||||||||||||
Reorganization and Restructuring(a) | 11.7 | 2.7 | 19.6 | 4.8 | 38.8 | 14.2 | — | 0.4 | 14.6 | |||||||||||||||||||
Acquisitions and dispositions(a) | 15.2 | 15.4 | 35.7 | 20.3 | 86.6 | 22.0 | 15.0 | 19.4 | 56.4 | |||||||||||||||||||
6.1 | 9.0 | 12.0 | 14.6 | 41.7 | 11.2 | 11.0 | 8.1 | 30.3 | ||||||||||||||||||||
Change in allowance estimate(a) | 16.7 | (0.4 | ) | (0.3 | ) | (0.4 | ) | 15.6 | — | — | — | — | ||||||||||||||||
Ship loss matter(a) | — | — | — | 4.9 | 4.9 | — | — | — | — | |||||||||||||||||||
— | 0.8 | 0.3 | 0.3 | 1.4 | 0.2 | 0.2 | — | 0.4 | ||||||||||||||||||||
Reporting compliance(a) | — | — | — | — | — | — | — | 0.7 | 0.7 | |||||||||||||||||||
Non-GAAP | $ | 112.1 | 124.0 | 126.8 | 187.4 | 550.3 | $ | 127.4 | 131.8 | 166.3 | 425.5 | |||||||||||||||||
Operating margin: | ||||||||||||||||||||||||||||
GAAP margin | 5.8 | % | 8.5 | % | 5.2 | % | 12.0 | % | 8.0 | % | 6.7 | % | 8.7 | % | 11.2 | % | 8.9 | % | ||||||||||
Non-GAAP margin | 10.4 | % | 10.9 | % | 11.2 | % | 15.7 | % | 12.1 | % | 10.7 | % | 10.8 | % | 13.5 | % | 11.7 | % | ||||||||||
Interest expense: | ||||||||||||||||||||||||||||
GAAP | $ | (27.9 | ) | (32.4 | ) | (34.7 | ) | (43.8 | ) | (138.8 | ) | $ | (46.6 | ) | (51.1 | ) | (53.8 | ) | (151.5 | ) | ||||||||
Acquisitions and dispositions(a) | 0.4 | 0.3 | 0.3 | 0.2 | 1.2 | 0.2 | 0.3 | 0.2 | 0.7 | |||||||||||||||||||
Non-GAAP | $ | (27.5 | ) | (32.1 | ) | (34.4 | ) | (43.6 | ) | (137.6 | ) | $ | (46.4 | ) | (50.8 | ) | (53.6 | ) | (150.8 | ) | ||||||||
Interest and other income (expense): | ||||||||||||||||||||||||||||
GAAP | $ | (1.3 | ) | 3.4 | 6.3 | (4.7 | ) | 3.7 | $ | 4.7 | 4.1 | 2.9 | 11.7 | |||||||||||||||
Retirement plans(c) | 3.1 | 1.8 | 1.6 | 4.6 | 11.1 | (2.2 | ) | (1.9 | ) | (2.1 | ) | (6.2 | ) | |||||||||||||||
Acquisitions and dispositions(a) | (0.7 | ) | (1.7 | ) | (1.8 | ) | 1.6 | (2.6 | ) | 0.5 | 0.6 | (0.9 | ) | 0.2 | ||||||||||||||
0.6 | 0.9 | 0.4 | 2.0 | 3.9 | 0.3 | 0.3 | 22.7 | 23.3 | ||||||||||||||||||||
Non-GAAP | $ | 1.7 | 4.4 | 6.5 | 3.5 | 16.1 | $ | 3.3 | 3.1 | 22.6 | 29.0 | |||||||||||||||||
Taxes: | ||||||||||||||||||||||||||||
GAAP | $ | (41.1 | ) | 29.3 | 8.5 | 44.7 | 41.4 | $ | 20.3 | 23.4 | 37.3 | 81.0 | ||||||||||||||||
Retirement plans(c) | 0.7 | 0.7 | 0.7 | 0.8 | 2.9 | (0.6 | ) | (0.1 | ) | (0.6 | ) | (1.3 | ) | |||||||||||||||
Reorganization and Restructuring(a) | 1.2 | 1.1 | 3.8 | 2.1 | 8.2 | 2.7 | (0.1 | ) | 0.1 | 2.7 | ||||||||||||||||||
Acquisitions and dispositions(a) | 0.8 | 1.0 | 12.7 | 6.2 | 20.7 | 2.4 | 2.0 | 3.3 | 7.7 | |||||||||||||||||||
(0.2 | ) | (0.3 | ) | — | (1.5 | ) | (2.0 | ) | (0.5 | ) | (0.2 | ) | (0.9 | ) | (1.6 | ) | ||||||||||||
Change in allowance estimate(a) | 4.0 | (0.1 | ) | (0.1 | ) | (0.1 | ) | 3.7 | — | — | — | — | ||||||||||||||||
Valuation allowance on tax credits(f) | 58.3 | (3.3 | ) | (2.2 | ) | 0.4 | 53.2 | (2.6 | ) | (4.1 | ) | — | (6.7 | ) | ||||||||||||||
Ship loss matter(a) | — | — | — | 1.3 | 1.3 | — | — | — | — | |||||||||||||||||||
— | 0.2 | 0.1 | 0.2 | 0.5 | — | 0.1 | — | 0.1 | ||||||||||||||||||||
Reporting compliance(a) | — | — | — | — | — | — | — | — | — | |||||||||||||||||||
Income tax rate adjustment(b) | 2.4 | 0.6 | 6.5 | (9.5 | ) | — | 3.6 | 4.2 | 1.4 | 9.2 | ||||||||||||||||||
Non-GAAP | $ | 26.1 | 29.2 | 30.0 | 44.6 | 129.9 | $ | 25.3 | 25.2 | 40.6 | 91.1 | |||||||||||||||||
Noncontrolling interests: | ||||||||||||||||||||||||||||
GAAP | $ | 2.9 | 3.0 | 3.4 | 2.0 | 11.3 | $ | 3.3 | 3.0 | 3.8 | 10.1 | |||||||||||||||||
Retirement plans(c) | — | 0.1 | — | — | 0.1 | — | — | — | — | |||||||||||||||||||
Reorganization and Restructuring(a) | — | — | — | 0.1 | 0.1 | — | — | — | — | |||||||||||||||||||
Acquisitions and dispositions(a) | 0.3 | 0.2 | 0.3 | 0.2 | 1.0 | 0.2 | 0.3 | 0.3 | 0.8 | |||||||||||||||||||
Income tax rate adjustment(b) | (0.4 | ) | (0.1 | ) | (0.3 | ) | 0.8 | — | (0.3 | ) | (0.3 | ) | 0.1 | (0.5 | ) | |||||||||||||
Non-GAAP | $ | 2.8 | 3.2 | 3.4 | 3.1 | 12.5 | $ | 3.2 | 3.0 | 4.2 | 10.4 |
Amounts may not add due to rounding.
See page 11 for footnote explanations.
2022 | 2023 | |||||||||||||||||||||||||||
1Q | 2Q | 3Q | 4Q | Full Year | 1Q | 2Q | 3Q | Nine Months | ||||||||||||||||||||
Income (loss) from continuing operations attributable to Brink's: | ||||||||||||||||||||||||||||
GAAP | $ | 71.4 | 35.2 | 19.2 | 47.7 | 173.5 | $ | 14.3 | 32.2 | 45.7 | 92.2 | |||||||||||||||||
Retirement plans(c) | 2.4 | 1.0 | 0.9 | 3.8 | 8.1 | (1.6 | ) | (1.8 | ) | (1.5 | ) | (4.9 | ) | |||||||||||||||
Reorganization and Restructuring(a) | 10.5 | 1.6 | 15.8 | 2.6 | 30.5 | 11.5 | 0.1 | 0.3 | 11.9 | |||||||||||||||||||
Acquisitions and dispositions(a) | 13.8 | 12.8 | 21.2 | 15.7 | 63.5 | 20.1 | 13.6 | 15.1 | 48.8 | |||||||||||||||||||
6.9 | 10.2 | 12.4 | 18.1 | 47.6 | 12.0 | 11.5 | 31.7 | 55.2 | ||||||||||||||||||||
Change in allowance estimate(a) | 12.7 | (0.3 | ) | (0.2 | ) | (0.3 | ) | 11.9 | — | — | — | — | ||||||||||||||||
Valuation allowance on tax credits(f) | (58.3 | ) | 3.3 | 2.2 | (0.4 | ) | (53.2 | ) | 2.6 | 4.1 | — | 6.7 | ||||||||||||||||
Ship loss matter(a) | — | — | — | 3.6 | 3.6 | — | — | — | — | |||||||||||||||||||
— | 0.6 | 0.2 | 0.1 | 0.9 | 0.2 | 0.1 | — | 0.3 | ||||||||||||||||||||
Reporting compliance(a) | — | — | — | — | — | — | — | 0.7 | 0.7 | |||||||||||||||||||
Income tax rate adjustment(b) | (2.0 | ) | (0.5 | ) | (6.2 | ) | 8.7 | — | (3.3 | ) | (3.9 | ) | (1.5 | ) | (8.7 | ) | ||||||||||||
Non-GAAP | $ | 57.4 | 63.9 | 65.5 | 99.6 | 286.4 | $ | 55.8 | 55.9 | 90.5 | 202.2 | |||||||||||||||||
Adjusted EBITDA(g): | ||||||||||||||||||||||||||||
Net income (loss) attributable to Brink's - GAAP | $ | 71.3 | 35.1 | 19.2 | 45.0 | 170.6 | $ | 15.0 | 32.1 | 45.6 | 92.7 | |||||||||||||||||
Interest expense - GAAP | 27.9 | 32.4 | 34.7 | 43.8 | 138.8 | 46.6 | 51.1 | 53.8 | 151.5 | |||||||||||||||||||
Income tax provision - GAAP | (41.1 | ) | 29.3 | 8.5 | 44.7 | 41.4 | 20.3 | 23.4 | 37.3 | 81.0 | ||||||||||||||||||
Depreciation and amortization - GAAP | 61.0 | 60.3 | 58.6 | 65.9 | 245.8 | 67.6 | 69.6 | 69.1 | 206.3 | |||||||||||||||||||
EBITDA | $ | 119.1 | 157.1 | 121.0 | 199.4 | 596.6 | $ | 149.5 | 176.2 | 205.8 | 531.5 | |||||||||||||||||
Discontinued operations - GAAP | 0.1 | 0.1 | — | 2.7 | 2.9 | (0.7 | ) | 0.1 | 0.1 | (0.5 | ) | |||||||||||||||||
Retirement plans(c) | 3.1 | 1.7 | 1.6 | 4.6 | 11.0 | (2.2 | ) | (1.9 | ) | (2.1 | ) | (6.2 | ) | |||||||||||||||
Reorganization and Restructuring(a) | 11.7 | 2.7 | 19.5 | 3.8 | 37.7 | 13.1 | (0.1 | ) | 0.4 | 13.4 | ||||||||||||||||||
Acquisitions and dispositions(a) | 1.5 | 1.0 | 21.4 | 7.0 | 30.9 | 8.3 | 0.7 | 3.6 | 12.6 | |||||||||||||||||||
6.0 | 9.3 | 11.6 | 15.8 | 42.7 | 10.4 | 10.0 | 29.4 | 49.8 | ||||||||||||||||||||
Change in allowance estimate(a) | 16.7 | (0.4 | ) | (0.3 | ) | (0.4 | ) | 15.6 | — | — | — | — | ||||||||||||||||
Ship loss matter(a) | — | — | — | 4.9 | 4.9 | — | — | — | — | |||||||||||||||||||
— | 0.8 | 0.3 | 0.3 | 1.4 | 0.2 | 0.2 | — | 0.4 | ||||||||||||||||||||
Reporting compliance(a) | — | — | — | — | — | — | — | 0.7 | 0.7 | |||||||||||||||||||
Income tax rate adjustment(b) | 0.4 | 0.1 | 0.3 | (0.8 | ) | — | 0.3 | 0.3 | (0.1 | ) | 0.5 | |||||||||||||||||
Share-based compensation(d) | 7.1 | 14.9 | 14.3 | 12.3 | 48.6 | 11.8 | 8.3 | 6.4 | 26.5 | |||||||||||||||||||
Marketable securities (gain) loss(e) | (0.3 | ) | (0.8 | ) | (0.7 | ) | (2.2 | ) | (4.0 | ) | (0.2 | ) | 0.5 | (13.7 | ) | (13.4 | ) | |||||||||||
Adjusted EBITDA | $ | 165.4 | 186.5 | 189.0 | 247.4 | 788.3 | $ | 190.5 | 194.3 | 230.5 | 615.3 |
EPS: | ||||||||||||||||||||||||||||
GAAP | $ | 1.48 | 0.73 | 0.41 | 1.01 | 3.63 | $ | 0.30 | 0.68 | 0.97 | 1.95 | |||||||||||||||||
Retirement plans(c) | 0.05 | 0.02 | 0.02 | 0.08 | 0.17 | (0.03 | ) | (0.03 | ) | (0.03 | ) | (0.11 | ) | |||||||||||||||
Reorganization and Restructuring costs(a) | 0.22 | 0.03 | 0.33 | 0.06 | 0.64 | 0.24 | 0.01 | 0.01 | 0.25 | |||||||||||||||||||
Acquisitions and dispositions(a) | 0.29 | 0.27 | 0.45 | 0.33 | 1.33 | 0.42 | 0.27 | 0.31 | 1.02 | |||||||||||||||||||
0.14 | 0.21 | 0.26 | 0.38 | 1.00 | 0.26 | 0.24 | 0.67 | 1.17 | ||||||||||||||||||||
Change in allowance estimate(a) | 0.26 | (0.01 | ) | — | (0.01 | ) | 0.25 | — | — | — | — | |||||||||||||||||
Valuation allowance on tax credits(f) | (1.21 | ) | 0.07 | 0.05 | (0.01 | ) | (1.11 | ) | 0.05 | 0.09 | — | 0.14 | ||||||||||||||||
Ship loss matter(a) | — | — | — | 0.08 | 0.08 | — | — | — | — | |||||||||||||||||||
— | 0.01 | — | — | 0.02 | — | — | — | 0.01 | ||||||||||||||||||||
Reporting compliance(a) | — | — | — | — | — | — | — | 0.02 | 0.02 | |||||||||||||||||||
Income tax rate adjustment(b) | (0.04 | ) | (0.01 | ) | (0.13 | ) | 0.18 | — | (0.07 | ) | (0.08 | ) | (0.03 | ) | (0.18 | ) | ||||||||||||
Non-GAAP | $ | 1.19 | 1.34 | 1.38 | 2.10 | 5.99 | $ | 1.18 | 1.18 | 1.92 | 4.27 | |||||||||||||||||
Depreciation and Amortization: | ||||||||||||||||||||||||||||
GAAP | $ | 61.0 | 60.3 | 58.6 | 65.9 | 245.8 | $ | 67.6 | 69.6 | 69.1 | 206.3 | |||||||||||||||||
Reorganization and Restructuring costs(a) | — | — | (0.1 | ) | (0.9 | ) | (1.0 | ) | (1.1 | ) | (0.1 | ) | — | (1.2 | ) | |||||||||||||
Acquisitions and dispositions(a) | (12.7 | ) | (12.5 | ) | (12.2 | ) | (14.7 | ) | (52.1 | ) | (14.0 | ) | (14.6 | ) | (14.6 | ) | (43.2 | ) | ||||||||||
(0.7 | ) | (0.6 | ) | (0.8 | ) | (0.8 | ) | (2.9 | ) | (1.1 | ) | (1.3 | ) | (1.4 | ) | (3.8 | ) | |||||||||||
Non-GAAP | $ | 47.6 | 47.2 | 45.5 | 49.5 | 189.8 | $ | 51.4 | 53.6 | 53.1 | 158.1 |
Amounts may not add due to rounding.
See page 11 for footnote explanations.
Full Year | Nine Months Ended | ||||||||||
2022 | 2022 | 2023 | |||||||||
Free cash flow before dividends: | |||||||||||
Cash flows from operating activities | |||||||||||
Operating activities - GAAP | $ | 479.9 | $ | 200.5 | $ | 293.0 | |||||
(Increase) decrease in restricted cash held for customers | (50.0 | ) | 4.4 | 44.9 | |||||||
(Increase) decrease in certain customer obligations(a) | (50.0 | ) | (4.0 | ) | 5.5 | ||||||
Operating activities - non-GAAP | $ | 379.9 | $ | 200.9 | $ | 343.4 | |||||
Capital expenditures - GAAP | (182.6 | ) | (131.5 | ) | (133.1 | ) | |||||
Proceeds from sale of property, equipment and investments | 5.7 | 3.3 | 5.7 | ||||||||
Free cash flow before dividends | $ | 203.0 | $ | 72.7 | $ | 216.0 |
(a) | To adjust for the change in the balance of customer obligations related to cash received and processed in certain of our secure |
Free cash flow before dividends is a supplemental financial measure that is not required by, or presented in accordance with GAAP. The purpose of this non-GAAP measure is to report financial information excluding the change in restricted cash held for customers, the impact of cash received and processed in certain of our secure cash management services operations, capital expenditures, and to include proceeds from the sale of property, equipment and investments. We believe this measure is helpful in assessing cash flows from operations, enables period-to-period comparability and is useful in predicting future cash flows. This non-GAAP measure should not be considered as an alternative to cash flows from operating activities determined in accordance with GAAP and should be read in conjunction with our condensed consolidated statements of cash flows.
Contact:
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Source: The Brink’s Company
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