Strong Growth in Revenue, Net Income, Adjusted EBITDA and EPS
Company Announces
Virtual Investor Day Planned on
3Q Highlights:
- Revenue up 11% reflecting 6% organic growth
- Operating profit: GAAP down 3% to
$74M ; non-GAAP up 16% to$116M - Operating margin: GAAP 6.9%, down 100 bps; non-GAAP up 50 bps to 10.8%
- GAAP net income
$19M , up from a loss of$24M ; Adjusted EBITDA up 15% to$170M - EPS: GAAP
$.38 , up from a loss of ($.47 ); non-GAAP up 28% to$1.14
(In millions, except for per share amounts) | Third-Quarter 2021 | |||||||||||||||
GAAP | Change(b) | Non-GAAP | Change | Constant Currency Change(c) | ||||||||||||
Revenue | $ | 1,076 | 11 | % | $ | 1,076 | 11 | % | 10 | % | ||||||
Operating Profit | $ | 74 | (3 | %) | $ | 116 | 16 | % | 9 | % | ||||||
Operating Margin | 6.9 | % | (100 bps) | 10.8 | % | 50 bps | (10 bps) | |||||||||
Net Income / Adjusted EBITDA(a) | $ | 19 | fav | $ | 170 | 15 | % | 10 | % | |||||||
EPS | $ | 0.38 | fav | $ | 1.14 | 28 | % | 18 | % |
(a) | The non-GAAP financial metric, adjusted EBITDA, is presented with its corresponding GAAP metric, net income attributable to Brink's. | |
(b) | The “fav” represents a change greater than 100% in a direction favorable to the company or a change from a negative amount in the prior period to a positive amount in the current period. The “unfav” represents a change greater than 100% in a direction unfavorable to the company or a change from a positive amount in the prior period to negative amount in the current period. | |
(c) | Constant currency represents 2021 Non-GAAP results at 2020 exchange rates. |
“Our full-year guidance remains unchanged, with revenue in a range between
“Based on our currently projected earnings and cash flow for this year and 2022, we believe repurchasing shares is an excellent investment for our shareholders. Today we announced a planned
“We look forward to presenting our new three-year strategic plan, including detailed financial targets through 2024, in our Investor Day presentation on December 15.”
Share Repurchase
Brink’s today announced that it intends to enter into an accelerated share repurchase ("ASR") agreement to acquire
Conference Call
Brink’s will host a conference call on
2021 Guidance (Unaudited)
(In millions, except for percentages and per share amounts)
2021 GAAP Outlook(b) | Reconciling Items(a) | 2021 Non-GAAP Outlook(a) | ||||
Revenues | $ | 4,100 – 4,200 | — | 4,100 – 4,200 | ||
Operating profit | 335 – 345 | 125 | 460 – 470 | |||
EPS from continuing operations attributable to Brink's | $ | 2.00 – 2.10 | 2.50 | 4.50 – 4.60 | ||
Operating profit margin | ~8.2% | ~3.0% | ~11.2% | |||
Free cash flow before dividends | 180 – 190 | |||||
Adjusted EBITDA | 655 – 665 | |||||
Adjusted EBITDA margin | ~15.9% |
Amounts may not add due to rounding | ||
(a) | The 2021 Non-GAAP outlook amounts exclude certain forecasted Non-GAAP adjusting items, such as intangible asset amortization and | |
(b) | The 2021 GAAP outlook excludes any forecasted impact from highly inflationary accounting on our |
The Brink’s Company and subsidiaries
(In millions, except for per share amounts) (Unaudited)
Third-Quarter 2021 vs. 2020
GAAP | Organic | Acquisitions / | % Change | ||||||||||||||||||
3Q'20 | Change | Dispositions(a) | Currency(b) | 3Q'21 | Total | Organic | |||||||||||||||
Revenues: | |||||||||||||||||||||
$ | 317 | 17 | 25 | 2 | 361 | 14 | 5 | ||||||||||||||
257 | 35 | 1 | (3 | ) | 289 | 13 | 14 | ||||||||||||||
224 | 5 | 8 | 1 | 238 | 6 | 2 | |||||||||||||||
Rest of World | 173 | (3 | ) | 13 | 5 | 188 | 8 | (2 | ) | ||||||||||||
Segment revenues(c) | $ | 971 | 54 | 46 | 5 | 1,076 | 11 | 6 | |||||||||||||
Revenues - GAAP | $ | 971 | 54 | 46 | 5 | 1,076 | 11 | 6 | |||||||||||||
Operating profit: | |||||||||||||||||||||
$ | 24 | (4 | ) | 5 | — | 25 | 4 | (15 | ) | ||||||||||||
51 | 17 | — | (4 | ) | 65 | 26 | 33 | ||||||||||||||
19 | 8 | 1 | — | 28 | 49 | 41 | |||||||||||||||
Rest of World | 36 | (7 | ) | 1 | 1 | 32 | (12 | ) | (18 | ) | |||||||||||
Segment operating profit | 130 | 15 | 7 | (2 | ) | 150 | 15 | 11 | |||||||||||||
Corporate(d) | (30 | ) | (13 | ) | — | 9 | (34 | ) | 12 | 42 | |||||||||||
Operating profit - non-GAAP | $ | 100 | 2 | 7 | 7 | 116 | 16 | 2 | |||||||||||||
Other items not allocated to segments(e) | (24 | ) | (19 | ) | — | 1 | (42 | ) | 77 | 83 | |||||||||||
Operating profit - GAAP | $ | 76 | (18 | ) | 7 | 8 | 74 | (3 | ) | (23 | ) | ||||||||||
GAAP interest expense | (27 | ) | (28 | ) | 2 | ||||||||||||||||
GAAP interest and other income (expense) | (13 | ) | (1 | ) | (95 | ) | |||||||||||||||
GAAP provision for income taxes | 59 | 23 | (61 | ) | |||||||||||||||||
GAAP noncontrolling interests | 1 | 4 | unfav | ||||||||||||||||||
GAAP income from continuing operations(f) | (24 | ) | 19 | fav | |||||||||||||||||
GAAP EPS(f) | $ | (0.47 | ) | 0.38 | fav | ||||||||||||||||
GAAP weighted-average diluted shares | 50.4 | 50.3 | — | ||||||||||||||||||
Non-GAAP(g) | Organic | Acquisitions / | % Change | |||||||||||||||||||
3Q'20 | Change | Dispositions(a) | Currency(b) | 3Q'21 | Total | Organic | ||||||||||||||||
Segment revenues - GAAP/non-GAAP | $ | 971 | 54 | 46 | 5 | 1,076 | 11 | 6 | ||||||||||||||
Non-GAAP operating profit | 100 | 2 | 7 | 7 | 116 | 16 | 2 | |||||||||||||||
Non-GAAP interest expense | (27 | ) | (27 | ) | 3 | |||||||||||||||||
Non-GAAP interest and other income (expense) | (3 | ) | 3 | fav | ||||||||||||||||||
Non-GAAP provision for income taxes | 22 | 31 | 37 | |||||||||||||||||||
Non-GAAP noncontrolling interests | 3 | 4 | 39 | |||||||||||||||||||
Non-GAAP income from continuing operations(f) | 45 | 57 | 28 | |||||||||||||||||||
Non-GAAP EPS(f) | $ | 0.89 | 1.14 | 28 | ||||||||||||||||||
Non-GAAP weighted-average diluted shares | 50.6 | 50.3 | (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 8-9 for more information. | |
(f) | Attributable to Brink's. | |
(g) | Non-GAAP results are reconciled to applicable GAAP results on pages 10-13. | |
(h) | In the first quarter of 2021, we changed the method for calculating the allowance for doubtful accounts of the |
The Brink’s Company and subsidiaries
(In millions, except for per share amounts) (Unaudited)
Nine Months Ended
GAAP | Organic | Acquisitions / | % Change | |||||||||||||||||||
2020 | Change | Dispositions(a) | Currency(b) | 2021 | Total | Organic | ||||||||||||||||
Revenues: | ||||||||||||||||||||||
$ | 932 | 47 | 48 | 8 | 1,035 | 11 | 5 | |||||||||||||||
786 | 73 | 7 | (35 | ) | 832 | 6 | 9 | |||||||||||||||
518 | 9 | 118 | 38 | 683 | 32 | 2 | ||||||||||||||||
Rest of World | 433 | (6 | ) | 102 | 24 | 552 | 28 | (1 | ) | |||||||||||||
Segment revenues(c) | $ | 2,669 | 123 | 275 | 34 | 3,102 | 16 | 5 | ||||||||||||||
Revenues - GAAP | $ | 2,669 | 123 | 275 | 34 | 3,102 | 16 | 5 | ||||||||||||||
Operating profit: | ||||||||||||||||||||||
$ | 46 | 44 | 8 | — | 98 | fav | 96 | |||||||||||||||
153 | 41 | 1 | (14 | ) | 180 | 18 | 27 | |||||||||||||||
22 | 24 | 9 | 2 | 57 | fav | fav | ||||||||||||||||
Rest of World | 81 | 4 | 6 | 4 | 94 | 17 | 4 | |||||||||||||||
Segment operating profit | 302 | 112 | 24 | (8 | ) | 430 | 42 | 37 | ||||||||||||||
Corporate(d)(h) | (66 | ) | (60 | ) | — | 13 | (114 | ) | 73 | 92 | ||||||||||||
Operating profit - non-GAAP | $ | 236 | 52 | 24 | 5 | 317 | 34 | 22 | ||||||||||||||
Other items not allocated to segments(e) | (135 | ) | 18 | 10 | (1 | ) | (107 | ) | (20 | ) | (13 | ) | ||||||||||
Operating profit - GAAP | $ | 102 | 69 | 34 | 4 | 209 | fav | 68 | ||||||||||||||
GAAP interest expense | (70 | ) | (83 | ) | 18 | |||||||||||||||||
GAAP interest and other income (expense) | (31 | ) | (2 | ) | (95 | ) | ||||||||||||||||
GAAP provision for income taxes | 4 | 59 | unfav | |||||||||||||||||||
GAAP noncontrolling interests | 5 | 10 | unfav | |||||||||||||||||||
GAAP income from continuing operations(f) | (8 | ) | 56 | fav | ||||||||||||||||||
GAAP EPS(f) | $ | (0.17 | ) | 1.11 | fav | |||||||||||||||||
GAAP weighted-average diluted shares | 50.6 | 50.4 | — | |||||||||||||||||||
Non-GAAP(g) | Organic | Acquisitions / | % Change | |||||||||||||||||||
2020 | Change | Dispositions(a) | Currency(b) | 2021 | Total | Organic | ||||||||||||||||
Segment revenues - GAAP/non-GAAP | $ | 2,669 | 123 | 275 | 34 | 3,102 | 16 | 5 | ||||||||||||||
Non-GAAP operating profit | 236 | 52 | 24 | 5 | 317 | 34 | 22 | |||||||||||||||
Non-GAAP interest expense | (69 | ) | (82 | ) | 19 | |||||||||||||||||
Non-GAAP interest and other income (expense) | (3 | ) | 14 | fav | ||||||||||||||||||
Non-GAAP provision for income taxes | 53 | 83 | 58 | |||||||||||||||||||
Non-GAAP noncontrolling interests | 4 | 10 | unfav | |||||||||||||||||||
Non-GAAP income from continuing operations(f) | 108 | 156 | 44 | |||||||||||||||||||
Non-GAAP EPS(f) | $ | 2.12 | 3.10 | 46 | ||||||||||||||||||
Non-GAAP weighted-average diluted shares | 51.0 | 50.4 | (1 | ) | ||||||||||||||||||
Amounts may not add due to rounding.
See page 4 for footnote explanations.
The Brink’s Company and subsidiaries
(In millions) (Unaudited)
Selected Items - Condensed Consolidated Balance Sheets
Assets | ||||||
Cash and cash equivalents | $ | 620.9 | 700.8 | |||
Restricted cash | 322.0 | 321.7 | ||||
Accounts receivable, net | 679.1 | 728.2 | ||||
Right-of-use assets, net | 322.0 | 304.1 | ||||
Property and equipment, net | 838.2 | 844.9 | ||||
1,645.3 | 1,933.3 | |||||
Deferred income taxes | 314.9 | 301.1 | ||||
Other | 393.2 | 418.8 | ||||
Total assets | $ | 5,135.6 | 5,552.9 | |||
Liabilities and Equity | ||||||
Accounts payable | 206.0 | 186.8 | ||||
Debt | 2,485.7 | 2,845.6 | ||||
Retirement benefits | 701.8 | 669.5 | ||||
Accrued liabilities | 779.2 | 905.2 | ||||
Lease liabilities | 267.2 | 248.5 | ||||
Other | 493.2 | 448.3 | ||||
Total liabilities | 4,933.1 | 5,303.9 | ||||
Equity | 202.5 | 249.0 | ||||
Total liabilities and equity | $ | 5,135.6 | 5,552.9 |
Selected Items - Condensed Consolidated Statements of Cash Flows
Nine Months Ended | ||||||
2020 | 2021 | |||||
Net cash provided by operating activities | $ | 87.4 | 273.6 | |||
Net cash used by investing activities | (513.5 | ) | (390.3 | ) | ||
Net cash provided by financing activities | 749.2 | 234.6 | ||||
Effect of exchange rate changes on cash | 3.3 | (38.3 | ) | |||
Cash, cash equivalents and restricted cash: | ||||||
Increase | 326.4 | 79.6 | ||||
Balance at beginning of period | 469.0 | 942.9 | ||||
Balance at end of period | $ | 795.4 | 1,022.5 | |||
Supplemental Cash Flow Information | ||||||
Capital expenditures | $ | (79.1 | ) | (113.7 | ) | |
Acquisitions, net of cash acquired | (427.1 | ) | (313.6 | ) | ||
Depreciation and amortization | 152.2 | 178.1 | ||||
Cash paid for income taxes, net | (42.9 | ) | (55.9 | ) |
About The Brink’s Company
The Brink’s Company (NYSE:BCO) is the global leader in total cash management, route-based secure logistics and payment solutions including cash-in-transit, ATM services, cash management services (including vault outsourcing, money processing and intelligent safe services), and international transportation of valuables. Our customers include financial institutions, retailers, government agencies, mints, jewelers and other commercial operations. Our global network of operations in 53 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: 2021 outlook, including revenue, operating profit, adjusted EBITDA, earnings per share, free cash flow (and drivers thereof), 2022 financial targets, expected economic recovery, future costs related to reorganization and restructuring, and our plan to enter into an Accelerated Share Repurchase agreement. 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.
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; 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; 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, 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: 2020 and 2021 (Unaudited)
(In millions, except for percentages)
Revenues | ||||||||||||||||||||||||||||||
2020 | 2021 | |||||||||||||||||||||||||||||
1Q | 2Q | 3Q | 4Q | Full Year | 1Q | 2Q | 3Q | Nine Months | ||||||||||||||||||||||
Revenues: | ||||||||||||||||||||||||||||||
$ | 340.9 | 274.3 | 316.8 | 329.4 | 1,261.4 | $ | 317.1 | 356.8 | 360.7 | 1,034.6 | ||||||||||||||||||||
299.0 | 230.4 | 256.7 | 285.8 | 1,071.9 | 269.7 | 272.8 | 289.3 | 831.8 | ||||||||||||||||||||||
126.3 | 167.9 | 224.0 | 235.6 | 753.8 | 214.4 | 230.8 | 238.0 | 683.2 | ||||||||||||||||||||||
Rest of World | 106.6 | 153.4 | 173.0 | 170.8 | 603.8 | 176.5 | 188.4 | 187.5 | 552.4 | |||||||||||||||||||||
Segment revenues - GAAP and Non-GAAP | $ | 872.8 | 826.0 | 970.5 | 1,021.6 | 3,690.9 | $ | 977.7 | 1,048.8 | 1,075.5 | 3,102.0 | |||||||||||||||||||
Operating Profit | ||||||||||||||||||||||||||||||
2020 | 2021 | |||||||||||||||||||||||||||||
1Q | 2Q | 3Q | 4Q | Full Year | 1Q | 2Q | 3Q | Nine Months | ||||||||||||||||||||||
Operating profit: | ||||||||||||||||||||||||||||||
$ | 13.4 | 8.4 | 24.1 | 45.8 | 91.7 | $ | 32.3 | 41.1 | 25.0 | 98.4 | ||||||||||||||||||||
60.5 | 41.8 | 51.1 | 80.2 | 233.6 | 58.7 | 57.1 | 64.6 | 180.4 | ||||||||||||||||||||||
2.1 | 1.2 | 18.8 | 29.1 | 51.2 | 10.6 | 18.7 | 28.1 | 57.4 | ||||||||||||||||||||||
Rest of World | 13.6 | 31.0 | 36.1 | 36.4 | 117.1 | 30.4 | 31.9 | 31.9 | 94.2 | |||||||||||||||||||||
Corporate(a) | (26.5 | ) | (9.2 | ) | (30.2 | ) | (46.4 | ) | (112.3 | ) | (41.9 | ) | (38.2 | ) | (33.7 | ) | (113.8 | ) | ||||||||||||
Non-GAAP | 63.1 | 73.2 | 99.9 | 145.1 | 381.3 | 90.1 | 110.6 | 115.9 | 316.6 | |||||||||||||||||||||
Other items not allocated to segments(b) | ||||||||||||||||||||||||||||||
Reorganization and Restructuring | (5.6 | ) | (39.0 | ) | (5.1 | ) | (16.9 | ) | (66.6 | ) | (6.6 | ) | (15.1 | ) | (14.0 | ) | (35.7 | ) | ||||||||||||
Acquisitions and dispositions | (19.1 | ) | (30.9 | ) | (16.2 | ) | (16.9 | ) | (83.1 | ) | (18.7 | ) | (20.5 | ) | (16.6 | ) | (55.8 | ) | ||||||||||||
(2.4 | ) | (2.8 | ) | (3.2 | ) | (2.3 | ) | (10.7 | ) | (3.9 | ) | (2.6 | ) | (2.3 | ) | (8.8 | ) | |||||||||||||
— | — | — | — | — | — | — | (9.5 | ) | (9.5 | ) | ||||||||||||||||||||
Internal loss | (9.6 | ) | (1.2 | ) | 0.9 | 3.0 | (6.9 | ) | 0.8 | 0.9 | 0.7 | 2.4 | ||||||||||||||||||
Reporting compliance | (0.2 | ) | (0.3 | ) | 0.1 | (0.1 | ) | (0.5 | ) | — | — | — | — | |||||||||||||||||
GAAP | $ | 26.2 | (1.0 | ) | 76.4 | 111.9 | 213.5 | $ | 61.7 | 73.3 | 74.2 | 209.2 | ||||||||||||||||||
Margin | ||||||||||||||||||||||||||||||
2020 | 2021 | |||||||||||||||||||||||||||||
1Q | 2Q | 3Q | 4Q | Full Year | 1Q | 2Q | 3Q | Nine Months | ||||||||||||||||||||||
Margin: | ||||||||||||||||||||||||||||||
3.9 | % | 3.1 | 7.6 | 13.9 | 7.3 | 10.2 | % | 11.5 | 6.9 | 9.5 | ||||||||||||||||||||
20.2 | 18.1 | 19.9 | 28.1 | 21.8 | 21.8 | 20.9 | 22.3 | 21.7 | ||||||||||||||||||||||
1.7 | 0.7 | 8.4 | 12.4 | 6.8 | 4.9 | 8.1 | 11.8 | 8.4 | ||||||||||||||||||||||
Rest of World | 12.8 | 20.2 | 20.9 | 21.3 | 19.4 | 17.2 | 16.9 | 17.0 | 17.1 | |||||||||||||||||||||
Non-GAAP | 7.2 | 8.9 | 10.3 | 14.2 | 10.3 | 9.2 | 10.5 | 10.8 | 10.2 | |||||||||||||||||||||
Other items not allocated to segments(b) | (4.2 | ) | (9.0 | ) | (2.4 | ) | (3.2 | ) | (4.5 | ) | (2.9 | ) | (3.5 | ) | (3.9 | ) | (3.5 | ) | ||||||||||||
GAAP | 3.0 | % | (0.1 | ) | 7.9 | 11.0 | 5.8 | 6.3 | % | 7.0 | 6.9 | 6.7 |
(a) | In the first quarter of 2021, we changed the method for calculating the allowance for doubtful accounts of the |
(b) | See explanation of items on page 9. |
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
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:
2021 Acquisitions and Dispositions
- Amortization expense for acquisition-related intangible assets was
$35 .3 million in the first nine months of 2021. - We incurred
$8 .8 million in integration costs, primarily related to G4S, in the first nine months of 2021. - Transaction costs related to business acquisitions were
$5 .4 million in the first nine months of 2021. - Restructuring costs related to acquisitions were
$5 .1 million in the first nine months of 2021. - Compensation expense related to the retention of key PAI employees was
$1 .2 million in the first nine months of 2021.
2020 Acquisitions and Dispositions
- Amortization expense for acquisition-related intangible assets was
$35.1 million in 2020. - We incurred
$23.5 million in integration costs, primarily related to Dunbar and G4S, in 2020. - Transaction costs related to business acquisitions were
$19.3 million in 2020. - Restructuring costs related to acquisitions were
$4.7 million in 2020.
Internal loss A former non-management employee in our
Reporting compliance Certain compliance costs (primarily third party expenses) are excluded from 2020 and the first nine months of 2021 non-GAAP results. These costs relate to the implementation and
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 2021 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 '20 | YTD '21 | |||||||||||||||||||
Pre-tax income | Income taxes | Effective tax rate | Pre-tax income | Income taxes | Effective tax rate | |||||||||||||||
Effective Income Tax Rate | ||||||||||||||||||||
GAAP | $ | (0.1 | ) | 3.5 | (3,500.0 | ) | % | $ | 124.6 | 59.2 | 47.5 | % | ||||||||
Retirement plans(c) | 24.5 | 5.8 | 20.3 | 4.9 | ||||||||||||||||
Reorganization and Restructuring(a) | 50.2 | 11.6 | 35.7 | 9.2 | ||||||||||||||||
Acquisitions and dispositions(a) | 71.6 | 9.7 | 52.6 | 3.4 | ||||||||||||||||
8.4 | (0.7 | ) | 8.8 | (0.9 | ) | |||||||||||||||
— | — | 9.5 | — | |||||||||||||||||
Internal loss(a) | 9.9 | 2.3 | (2.4 | ) | (0.8 | ) | ||||||||||||||
Reporting compliance(a) | 0.4 | — | — | — | ||||||||||||||||
Income tax rate adjustment(b) | — | 20.3 | — | 7.7 | ||||||||||||||||
Non-GAAP | $ | 164.9 | 52.5 | 31.8 | % | $ | 249.1 | 82.7 | 33.2 | % |
Amounts may not add due to rounding. | |
(a) | See “Other Items Not Allocated To Segments” on pages 8-9 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 33.2% for 2021 and was 31.8% for 2020. |
(c) | Our |
(d) | There is no difference between GAAP and non-GAAP share-based compensation amounts for the periods presented. |
(e) | Due to the impact of |
(f) | 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. |
(g) | Because we reported a loss from continuing operations on a GAAP basis in the third quarter of 2020 and the nine months ended |
The Brink’s Company and subsidiaries
Non-GAAP Results Reconciled to GAAP (Unaudited) - continued
(In millions, except for percentages and per share amounts)
2020 | 2021 | ||||||||||||||||||||||||||||||||||||
1Q | 2Q | 3Q | 4Q | Full Year | 1Q | 2Q | 3Q | Nine Months | |||||||||||||||||||||||||||||
Revenues: | |||||||||||||||||||||||||||||||||||||
GAAP | $ | 872.8 | 826.0 | 970.5 | 1,021.6 | 3,690.9 | $ | 977.7 | 1,048.8 | 1,075.5 | 3,102.0 | ||||||||||||||||||||||||||
Non-GAAP | $ | 872.8 | 826.0 | 970.5 | 1,021.6 | 3,690.9 | $ | 977.7 | 1,048.8 | 1,075.5 | 3,102.0 | ||||||||||||||||||||||||||
Operating profit (loss): | |||||||||||||||||||||||||||||||||||||
GAAP | $ | 26.2 | (1.0 | ) | 76.4 | 111.9 | 213.5 | $ | 61.7 | 73.3 | 74.2 | 209.2 | |||||||||||||||||||||||||
Reorganization and Restructuring(a) | 5.6 | 39.0 | 5.1 | 16.9 | 66.6 | 6.6 | 15.1 | 14.0 | 35.7 | ||||||||||||||||||||||||||||
Acquisitions and dispositions(a) | 19.1 | 30.9 | 16.2 | 16.9 | 83.1 | 18.7 | 20.5 | 16.6 | 55.8 | ||||||||||||||||||||||||||||
2.4 | 2.8 | 3.2 | 2.3 | 10.7 | 3.9 | 2.6 | 2.3 | 8.8 | |||||||||||||||||||||||||||||
— | — | — | — | — | — | — | 9.5 | 9.5 | |||||||||||||||||||||||||||||
Internal loss(a) | 9.6 | 1.2 | (0.9 | ) | (3.0 | ) | 6.9 | (0.8 | ) | (0.9 | ) | (0.7 | ) | (2.4 | ) | ||||||||||||||||||||||
Reporting compliance(a) | 0.2 | 0.3 | (0.1 | ) | 0.1 | 0.5 | — | — | — | — | |||||||||||||||||||||||||||
Non-GAAP | $ | 63.1 | 73.2 | 99.9 | 145.1 | 381.3 | $ | 90.1 | 110.6 | 115.9 | 316.6 | ||||||||||||||||||||||||||
Operating margin: | |||||||||||||||||||||||||||||||||||||
GAAP margin | 3.0 | % | (0.1 | ) | % | 7.9 | % | 11.0 | % | 5.8 | % | 6.3 | % | 7.0 | % | 6.9 | % | 6.7 | % | ||||||||||||||||||
Non-GAAP margin | 7.2 | % | 8.9 | % | 10.3 | % | 14.2 | % | 10.3 | % | 9.2 | % | 10.5 | % | 10.8 | % | 10.2 | % | |||||||||||||||||||
Interest expense: | |||||||||||||||||||||||||||||||||||||
GAAP | $ | (20.0 | ) | (23.2 | ) | (27.1 | ) | (26.2 | ) | (96.5 | ) | $ | (27.2 | ) | (28.2 | ) | (27.6 | ) | (83.0 | ) | |||||||||||||||||
Acquisitions and dispositions(a) | 0.7 | 0.3 | 0.5 | 0.4 | 1.9 | 0.3 | 0.5 | 0.3 | 1.1 | ||||||||||||||||||||||||||||
Non-GAAP | $ | (19.3 | ) | (22.9 | ) | (26.6 | ) | (25.8 | ) | (94.6 | ) | $ | (26.9 | ) | (27.7 | ) | (27.3 | ) | (81.9 | ) | |||||||||||||||||
Interest and other income (expense): | |||||||||||||||||||||||||||||||||||||
GAAP | $ | (15.6 | ) | (3.0 | ) | (12.8 | ) | (6.3 | ) | (37.7 | ) | $ | (5.5 | ) | 4.6 | (0.7 | ) | (1.6 | ) | ||||||||||||||||||
Retirement plans(c) | 7.7 | 8.1 | 8.7 | 9.3 | 33.8 | 6.4 | 6.7 | 7.2 | 20.3 | ||||||||||||||||||||||||||||
Reorganization and Restructuring(a) | — | — | 0.5 | — | 0.5 | — | — | — | — | ||||||||||||||||||||||||||||
Acquisitions and dispositions(a) | 3.0 | 0.5 | 0.4 | 2.6 | 6.5 | 0.2 | (1.2 | ) | (3.3 | ) | (4.3 | ) | |||||||||||||||||||||||||
— | — | — | (0.1 | ) | (0.1 | ) | — | — | — | — | |||||||||||||||||||||||||||
Non-GAAP | $ | (4.9 | ) | 5.6 | (3.2 | ) | 5.5 | 3.0 | $ | 1.1 | 10.1 | 3.2 | 14.4 | ||||||||||||||||||||||||
Taxes: | |||||||||||||||||||||||||||||||||||||
GAAP | $ | (12.2 | ) | (43.2 | ) | 58.9 | 53.1 | 56.6 | $ | 13.6 | 22.7 | 22.9 | 59.2 | ||||||||||||||||||||||||
Retirement plans(c) | 1.8 | 1.9 | 2.1 | 2.1 | 7.9 | 1.9 | 1.8 | 1.2 | 4.9 | ||||||||||||||||||||||||||||
Reorganization and Restructuring(a) | 1.3 | 9.0 | 1.3 | 4.2 | 15.8 | 1.6 | 3.7 | 3.9 | 9.2 | ||||||||||||||||||||||||||||
Acquisitions and dispositions(a) | 2.1 | 3.6 | 4.0 | 1.9 | 11.6 | 0.5 | 1.7 | 1.2 | 3.4 | ||||||||||||||||||||||||||||
(0.2 | ) | (0.3 | ) | (0.2 | ) | (0.6 | ) | (1.3 | ) | (0.3 | ) | (0.3 | ) | (0.3 | ) | (0.9 | ) | ||||||||||||||||||||
Internal loss(a) | 2.2 | 0.3 | (0.2 | ) | (0.7 | ) | 1.6 | (0.4 | ) | (0.3 | ) | (0.1 | ) | (0.8 | ) | ||||||||||||||||||||||
Income tax rate adjustment(b) | 17.4 | 46.5 | (43.6 | ) | (20.3 | ) | — | 4.4 | 1.6 | 1.7 | 7.7 | ||||||||||||||||||||||||||
Non-GAAP | $ | 12.4 | 17.8 | 22.3 | 39.7 | 92.2 | $ | 21.3 | 30.9 | 30.5 | 82.7 | ||||||||||||||||||||||||||
Noncontrolling interests: | |||||||||||||||||||||||||||||||||||||
GAAP | $ | 1.0 | 2.3 | 1.4 | 1.2 | 5.9 | $ | 2.7 | 3.0 | 4.0 | 9.7 | ||||||||||||||||||||||||||
Reorganization and Restructuring(a) | 0.1 | — | 0.2 | — | 0.3 | 0.1 | 0.4 | — | 0.5 | ||||||||||||||||||||||||||||
Acquisitions and dispositions(a) | — | 0.1 | 0.2 | 0.2 | 0.5 | 0.5 | (0.1 | ) | 0.2 | 0.6 | |||||||||||||||||||||||||||
Income tax rate adjustment(b) | (0.4 | ) | (1.6 | ) | 1.0 | 1.0 | — | (0.7 | ) | 0.4 | (0.3 | ) | (0.6 | ) | |||||||||||||||||||||||
Non-GAAP | $ | 0.7 | 0.8 | 2.8 | 2.4 | 6.7 | $ | 2.6 | 3.7 | 3.9 | 10.2 |
Amounts may not add due to rounding.
See page 10 for footnote explanations.
2020 | 2021 | |||||||||||||||||||||||||||
1Q | 2Q | 3Q | 4Q | Full Year | 1Q | 2Q | 3Q | Nine Months | ||||||||||||||||||||
Income (loss) from continuing operations attributable to Brink's: | ||||||||||||||||||||||||||||
GAAP | $ | 1.8 | 13.7 | (23.8 | ) | 25.1 | 16.8 | $ | 12.7 | 24.0 | 19.0 | 55.7 | ||||||||||||||||
Retirement plans(c) | 5.9 | 6.2 | 6.6 | 7.2 | 25.9 | 4.5 | 4.9 | 6.0 | 15.4 | |||||||||||||||||||
Reorganization and Restructuring(a) | 4.2 | 30.0 | 4.1 | 12.7 | 51.0 | 4.9 | 11.0 | 10.1 | 26.0 | |||||||||||||||||||
Acquisitions and dispositions(a) | 20.7 | 28.0 | 12.9 | 17.8 | 79.4 | 18.2 | 18.2 | 12.2 | 48.6 | |||||||||||||||||||
2.6 | 3.1 | 3.4 | 2.8 | 11.9 | 4.2 | 2.9 | 2.6 | 9.7 | ||||||||||||||||||||
— | — | — | — | — | — | — | 9.5 | 9.5 | ||||||||||||||||||||
Internal loss(a) | 7.4 | 0.9 | (0.7 | ) | (2.3 | ) | 5.3 | (0.4 | ) | (0.6 | ) | (0.6 | ) | (1.6 | ) | |||||||||||||
Reporting compliance(a) | 0.2 | 0.3 | (0.1 | ) | 0.1 | 0.5 | — | — | — | — | ||||||||||||||||||
Income tax rate adjustment(b) | (17.0 | ) | (44.9 | ) | 42.6 | 19.3 | — | (3.7 | ) | (2.0 | ) | (1.4 | ) | (7.1 | ) | |||||||||||||
Non-GAAP | $ | 25.8 | 37.3 | 45.0 | 82.7 | 190.8 | $ | 40.4 | 58.4 | 57.4 | 156.2 | |||||||||||||||||
Adjusted EBITDA(f): | ||||||||||||||||||||||||||||
Net income (loss) attributable to Brink's - GAAP | $ | 1.8 | 12.9 | (23.9 | ) | 25.2 | 16.0 | $ | 12.7 | 23.9 | 19.0 | 55.6 | ||||||||||||||||
Interest expense - GAAP | 20.0 | 23.2 | 27.1 | 26.2 | 96.5 | 27.2 | 28.2 | 27.6 | 83.0 | |||||||||||||||||||
Income tax provision - GAAP | (12.2 | ) | (43.2 | ) | 58.9 | 53.1 | 56.6 | 13.6 | 22.7 | 22.9 | 59.2 | |||||||||||||||||
Depreciation and amortization - GAAP | 45.0 | 52.1 | 55.1 | 54.6 | 206.8 | 54.8 | 61.7 | 61.6 | 178.1 | |||||||||||||||||||
EBITDA | $ | 54.6 | 45.0 | 117.2 | 159.1 | 375.9 | $ | 108.3 | 136.5 | 131.1 | 375.9 | |||||||||||||||||
Discontinued operations - GAAP | — | 0.8 | 0.1 | (0.1 | ) | 0.8 | — | 0.1 | — | 0.1 | ||||||||||||||||||
Retirement plans(c) | 7.7 | 8.1 | 8.7 | 9.3 | 33.8 | 6.4 | 6.7 | 7.2 | 20.3 | |||||||||||||||||||
Reorganization and Restructuring(a) | 5.5 | 38.7 | 4.8 | 16.5 | 65.5 | 6.4 | 14.6 | 13.7 | 34.7 | |||||||||||||||||||
Acquisitions and dispositions(a) | 14.7 | 22.2 | 7.0 | 9.1 | 53.0 | 8.5 | 6.6 | 0.4 | 15.5 | |||||||||||||||||||
1.7 | 2.1 | 2.4 | 2.6 | 8.8 | 3.4 | 2.1 | 1.7 | 7.2 | ||||||||||||||||||||
— | — | — | — | — | — | — | 9.5 | 9.5 | ||||||||||||||||||||
Internal loss(a) | 9.6 | 1.2 | (0.9 | ) | (3.0 | ) | 6.9 | (0.8 | ) | (0.9 | ) | (0.7 | ) | (2.4 | ) | |||||||||||||
Reporting compliance(a) | 0.2 | 0.3 | (0.1 | ) | 0.1 | 0.5 | — | — | — | — | ||||||||||||||||||
Income tax rate adjustment(b) | 0.4 | 1.6 | (1.0 | ) | (1.0 | ) | — | 0.7 | (0.4 | ) | 0.3 | 0.6 | ||||||||||||||||
Share-based compensation(d) | 7.2 | 5.4 | 8.7 | 10.0 | 31.3 | 7.6 | 11.1 | 9.2 | 27.9 | |||||||||||||||||||
Marketable securities (gain) loss(e) | 2.5 | (5.9 | ) | 1.1 | (8.2 | ) | (10.5 | ) | (3.4 | ) | (10.8 | ) | (2.1 | ) | (16.3 | ) | ||||||||||||
Adjusted EBITDA | $ | 104.1 | 119.5 | 148.0 | 194.4 | 566.0 | $ | 137.1 | 165.6 | 170.3 | 473.0 |
EPS: | ||||||||||||||||||||||||||||
GAAP | $ | 0.03 | 0.27 | (0.47 | ) | 0.50 | 0.33 | $ | 0.25 | 0.47 | 0.38 | 1.11 | ||||||||||||||||
Retirement plans(c) | 0.12 | 0.12 | 0.13 | 0.14 | 0.51 | 0.09 | 0.10 | 0.12 | 0.31 | |||||||||||||||||||
Reorganization and Restructuring costs(a) | 0.08 | 0.59 | 0.08 | 0.25 | 1.00 | 0.10 | 0.22 | 0.20 | 0.52 | |||||||||||||||||||
Acquisitions and dispositions(a) | 0.40 | 0.55 | 0.26 | 0.35 | 1.56 | 0.36 | 0.36 | 0.24 | 0.96 | |||||||||||||||||||
0.05 | 0.06 | 0.07 | 0.06 | 0.23 | 0.08 | 0.06 | 0.05 | 0.19 | ||||||||||||||||||||
— | — | — | — | — | — | — | 0.19 | 0.19 | ||||||||||||||||||||
Internal loss(a) | 0.14 | 0.02 | (0.01 | ) | (0.05 | ) | 0.10 | (0.01 | ) | (0.01 | ) | (0.01 | ) | (0.03 | ) | |||||||||||||
Reporting compliance(a) | — | 0.01 | — | — | 0.01 | — | — | — | — | |||||||||||||||||||
Income tax rate adjustment(b) | (0.33 | ) | (0.88 | ) | 0.84 | 0.38 | — | (0.07 | ) | (0.04 | ) | (0.03 | ) | (0.14 | ) | |||||||||||||
Share adjustment(g) | — | — | — | — | — | — | — | — | — | |||||||||||||||||||
Non-GAAP | $ | 0.50 | 0.73 | 0.89 | 1.64 | 3.76 | $ | 0.80 | 1.16 | 1.14 | 3.10 | |||||||||||||||||
Depreciation and Amortization: | ||||||||||||||||||||||||||||
GAAP | $ | 45.0 | 52.1 | 55.1 | 54.6 | 206.8 | $ | 54.8 | 61.7 | 61.6 | 178.1 | |||||||||||||||||
Reorganization and Restructuring costs(a) | — | (0.3 | ) | (0.6 | ) | (0.4 | ) | (1.3 | ) | (0.1 | ) | (0.1 | ) | (0.3 | ) | (0.5 | ) | |||||||||||
Acquisitions and dispositions(a) | (7.4 | ) | (9.1 | ) | (9.4 | ) | (10.2 | ) | (36.1 | ) | (9.9 | ) | (12.8 | ) | (12.7 | ) | (35.4 | ) | ||||||||||
(0.7 | ) | (0.7 | ) | (0.8 | ) | 0.4 | (1.8 | ) | (0.5 | ) | (0.5 | ) | (0.6 | ) | (1.6 | ) | ||||||||||||
Non-GAAP | $ | 36.9 | 42.0 | 44.3 | 44.4 | 167.6 | $ | 44.3 | 48.3 | 48.0 | 140.6 |
Amounts may not add due to rounding.
See page 10 for footnote explanations.
Nine Months Ended | |||
Free cash flow before dividends: | |||
Cash flows from operating activities | |||
Operating activities - GAAP | $ | 273.6 | |
Increase in restricted cash held for customers | (12.7 | ) | |
Increase in certain customer obligations(a) | (10.0 | ) | |
G4S intercompany payments(b) | 2.6 | ||
Operating activities - non-GAAP | $ | 253.5 | |
Capital expenditures - GAAP | (113.7 | ) | |
Proceeds from sale of property, equipment and investments(b) | 5.7 | ||
Free cash flow before dividends | $ | 145.5 |
(a) | To adjust for the change in the balance of customer obligations related to cash received and processed in certain of our secure |
(b) | In the fourth quarter of 2020, we changed our definition of free cash flow before dividends to exclude payments made to G4S for net intercompany receivables and to include proceeds from sale of property, equipment and investments. All previously disclosed information for all periods presented has been revised. |
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, payments made to G4S for net intercompany receivables from the acquired subsidiaries, and to include proceeds from the sale of property, equipment and investments. In the fourth quarter of 2020, we changed the definition of free cash flow before dividends to exclude payments made to G4S for net intercompany receivables and to include proceeds from 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: Investor Relations |
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Source: The Brink’s Company
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