Brink’s Announces Fourth-Quarter and Full-Year 2023 Results

by

in

2023 Revenue Growth of 7% with 9% Organic Growth including 21% Growth in AMS and DRS 
Record Full-Year 2023 Net Cash from Operations of $702M and Free Cash Flow of $393M 
Reduced Leverage to 2.9x Net Debt to Adjusted EBITDA, within Target Leverage Range of 2x-3x 
Management Expects Mid-Single Digit Revenue Growth and Strong EBITDA Margin Expansion in 2024

Q4 2023 Highlights:

Revenue up 5%, reflecting 9% organic growth
Operating profit: GAAP $102M; non-GAAP $190M
Operating profit margin: GAAP 8.2%; non-GAAP 15.2%
GAAP net income (loss) of ($5)M; adjusted EBITDA $252M
EPS: GAAP ($0.13); non-GAAP $2.76

Full-Year 2023 Highlights:

Revenue up 7%, reflecting 9% organic growth
Operating profit: GAAP $425M; non-GAAP $615M
Operating profit margin: GAAP 8.7%; non-GAAP 12.6%
GAAP net income $88M; adjusted EBITDA $867M
EPS: GAAP $1.83; non-GAAP $7.35
GAAP net cash from operations up $223M to $702M; free cash flow up $190M to $393M
YTD Free Cash Flow conversion from Adjusted EBITDA up 20 percentage points to 45%

Full-Year 2024 Non-GAAP Outlook:

Revenue between $5,075M and $5,225M
Adjusted EBITDA between $935M and $985M
Non-GAAP EPS between $7.30 and $8.00 per share
Free Cash Flow between $415M and $465M

RICHMOND, Va., Feb. 29, 2024 (GLOBE NEWSWIRE) — The Brink’s Company (NYSE:BCO), a leading global provider of cash and valuables management, digital retail solutions (DRS), and ATM managed services (AMS), today announced fourth-quarter and full-year 2023 results.

Mark Eubanks, president and CEO, said: “We took a decisive step forward in the transformation of our business during 2023. I’m proud of the team’s ability to drive growth in higher-margin AMS and DRS customer offerings while expanding profit margins. Combined with our disciplined capital allocation policy and record free cash flow in the year, we reduced leverage into our targeted range as we committed to investors. Fourth quarter growth was highlighted by the eighth consecutive quarter of double-digit organic growth in AMS and DRS while operating profits were impacted by geopolitical and economic uncertainty in certain markets, and slower than expected growth in high margin services in North America. Looking into 2024, we expect to drive mid-single digit revenue growth, with continued double-digit organic growth in AMS and DRS. Adjusted EBITDA margins are expected to expand through productivity initiatives, improved growth and profitability in North America, and higher-margin revenue mix.

“I am encouraged by the progress made in 2023 to improve consistency in our business model through the Brink’s Business System. With continued top-line momentum, a more efficient operational foundation, reduced leverage levels and a disciplined capital allocation framework, I remain certain we are taking the right steps to create value for our shareholders in the years to come.”

Fourth-quarter and full-year results are summarized in the following tables:

(In millions, except for per share amounts)
Fourth-Quarter 2023 (vs. 2022)

 
GAAP
 
Change
 
Non-GAAP
 
Change
 
Constant
Currency
Change(b)

Revenue
$
1,246
 
 
5%
 
$
1,246
 
 
5%
 
8%

Operating Profit
$
102
 
 
(29%)
 
$
190
 
 
1%
 
17%

Operating Margin
 
8.2
%
 
(380 bps)
 
 
15.2
%
 
(50 bps)
 
130 bps

Net Income / Adjusted EBITDA(a)
$
(5
)
 
(111%)
 
$
252
 
 
2%
 
13%

EPS
$
(0.13
)
 
(113%)
 
$
2.76
 
 
31%
 
54%

(In millions, except for per share amounts)
Full Year 2023 (vs. 2022)

 
GAAP
 
Change
 
Non-GAAP
 
Change
 
Constant
Currency
Change(b)

Revenue
$
4,875
 
 
7%
 
$
4,875
 
 
7%
 
11%

Operating Profit
$
425
 
 
18%
 
$
615
 
 
12%
 
25%

Operating Margin
 
8.7
%
 
70 bps
 
 
12.6
%
 
50 bps
 
150 bps

Net Income / Adjusted EBITDA(a)
$
88
 
 
(49%)
 
$
867
 
 
10%
 
19%

EPS
$
1.83
 
 
(50%)
 
$
7.35
 
 
23%
 
42%

(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.

2024 Guidance (Unaudited)
(In millions, except for percentages and per share amounts)

The 2024 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 Argentina operations in 2024 or other potential Non-GAAP adjusting items for which the timing and amounts are currently under review, such as future restructuring actions and the impact of possible future acquisitions. We are also unable to forecast changes in cash held for customer obligations or proceeds from the sale of property, equipment and investments in 2024. The 2024 Non-GAAP outlook reflects management’s current assumptions regarding variables that are difficult to accurately forecast, including those discussed in the Risk Factors set forth in the Company’s filings with the United States Securities and Exchange Commission. The 2024 outlook assumes the continuation of current economic trends.

 
2024 Non-GAAP
Outlook
 

Revenues
$
5,075 – 5,225
 

 
 
 
 

Adjusted EBITDA
$
935 – 985
 

 
 
 
 

Adjusted EBITDA margin
 
18.4% – 18.9%
 

 
 
 
 

Free cash flow before dividends
$
415 – 465
 

 
 
 
 

EPS from continuing operations attributable to Brink’s
$
7.30 – 8.00
 

Share Repurchase Activity
In October 2021, we announced that our Board of Directors authorized a $250 million share repurchase program (the “2021 Repurchase Program”). Under the 2021 Repurchase Program, in the fourth-quarter of 2023, we repurchased a total of 844,382 shares of common stock for an aggregate of $64.2 million and an average price of $75.98 per share. In the full year 2023, we repurchased a total of 2,297,955 shares of our common stock for an aggregate of $169.9 million and an average price of $73.92 per share. These shares were retired upon repurchase. The 2021 Repurchase Program expired on December 31, 2023 with approximately $28 million remaining available.

In November 2023, our Board of Directors authorized a $500 million share repurchase program that expires on December 31, 2025. As of December 31, 2023, no shares had been purchased under the program and the company had $500 million of remaining share repurchase authority.

Conference Call
Brink’s will host a conference call on February 29 at 8:30 a.m. ET to review fourth-quarter results.  Interested parties can listen by calling 888-349-0094 (in the U.S.) or 412-902-0124 (international). Participants can preregister at https://dpregister.com/sreg/10186072/fb7c38cde8 to receive a direct dial-in number for the call. The call also will be accessible live via webcast on the Brink’s website (www.brinks.com). A replay of the call will be available through March 7, 2024 at 877-344-7529 (in the U.S.) or 412-317-0088 (international). The conference number is 7912729. An archived version of the webcast will be available online in the Investor Relations section of http://investors.brinks.com

The Brink’s Company and subsidiaries
(In millions, except for per share amounts) (Unaudited)

Condensed Consolidated Balance Sheets

 
December 31, 2022
 
December 31, 2023

Assets
 
 
 

Current assets:
 
 
 

Cash and cash equivalents
$
972.0
 
 
1,176.6
 

Restricted cash
 
438.5
 
 
507.0
 

Accounts receivable, net
 
862.2
 
 
779.0
 

Prepaid expenses and other
 
324.7
 
 
325.7
 

Total current assets
 
2,597.4
 
 
2,788.3
 

 
 
 
 

Right-of-use assets, net
 
314.5
 
 
337.7
 

Property and equipment, net
 
935.3
 
 
1,013.3
 

Goodwill
 
1,450.9
 
 
1,473.8
 

Other intangibles
 
535.5
 
 
488.3
 

Deferred tax assets, net
 
246.2
 
 
231.8
 

Other
 
286.2
 
 
268.6
 

 
 
 
 

Total assets
$
6,366.0
 
 
6,601.8
 

 
 
 
 

Liabilities and Equity
 
 
 

 
 
 
 

Current liabilities:
 
 
 

Short-term borrowings
 
47.2
 
 
151.7
 

Current maturities of long-term debt
 
82.4
 
 
117.1
 

Accounts payable
 
296.5
 
 
249.7
 

Accrued liabilities
 
1,019.4
 
 
1,126.9
 

Restricted cash held for customers
 
229.3
 
 
298.7
 

Total current liabilities
 
1,674.8
 
 
1,944.1
 

 
 
 
 

Long-term debt
 
3,273.2
 
 
3,262.5
 

Accrued pension costs
 
131.0
 
 
148.5
 

Retirement benefits other than pensions
 
174.5
 
 
159.6
 

Lease liabilities
 
249.9
 
 
265.8
 

Deferred tax liabilities
 
67.8
 
 
56.5
 

Other
 
224.6
 
 
244.6
 

Total liabilities
 
5,795.8
 
 
6,081.6
 

 
 
 
 

Equity:
 
 
 

The Brink’s Company (“Brink’s”) shareholders:
 
 
 

Common stock, par value $1 per share:
 
 
 

Shares authorized: 100.0
 
 
 

Shares issued and outstanding: 2023 – 44.5; 2022 – 46.3
 
46.3
 
 
44.5
 

Capital in excess of par value
 
684.1
 
 
675.9
 

Retained earnings
 
417.2
 
 
333.0
 

Accumulated other comprehensive income (loss)
 
(700.5
)
 
(656.0
)

Brink’s shareholders
 
447.1
 
 
397.4
 

 
 
 
 

Noncontrolling interests
 
123.1
 
 
122.8
 

 
 
 
 

Total equity
 
570.2
 
 
520.2
 

 
 
 
 

Total liabilities and equity
$
6,366.0
 
 
6,601.8
 

The Brink’s Company and subsidiaries
(In millions) (Unaudited)

Condensed Consolidated Statements of Cash Flows

 
Twelve Months Ended December 31,

 
 
2022
 
 
2023
 

Cash flows from operating activities:
 
 
 

Net income
$
181.9
 
 
98.3
 

Adjustments to reconcile net income to net cash provided by operating activities:
 
 
 

(Income) loss from discontinued operations, net of tax
 
2.9
 
 
(1.7
)

Depreciation and amortization
 
245.8
 
 
275.8
 

Share-based compensation expense
 
48.6
 
 
32.1
 

Deferred income taxes
 
(62.3
)
 
22.7
 

(Gain) loss on marketable securities and sale of property and equipment
 
0.7
 
 
10.9
 

Impairment losses
 
9.0
 
 
10.3
 

Retirement benefit funding (more) less than expense:
 
 
 

Pension
 
(3.7
)
 
(10.2
)

Other than pension
 
7.9
 
 
(5.5
)

Remeasurement losses due to Argentina currency devaluations
 
37.6
 
 
79.1
 

Other operating
 
23.6
 
 
26.1
 

Changes in operating assets and liabilities, net of effects of acquisitions:
 
 
 

(Increase) decrease in accounts receivable and income taxes receivable
 
(180.9
)
 
69.0
 

Increase (decrease) in accounts payable, income taxes payable and accrued liabilities
 
139.2
 
 
(36.3
)

Increase in restricted cash held for customers
 
50.0
 
 
59.5
 

Increase in customer obligations
 
50.0
 
 
66.0
 

(Increase) decrease in prepaid and other current assets
 
(56.7
)
 
24.6
 

Other
 
(13.7
)
 
(18.3
)

Net cash provided by operating activities
 
479.9
 
 
702.4
 

 
 
 
 

Cash flows from investing activities:
 
 
 

Capital expenditures
 
(182.6
)
 
(202.7
)

Acquisitions, net of cash acquired
 
(173.9
)
 
(1.5
)

Dispositions, net of cash disposed
 

 
 
1.1
 

Marketable securities:
 
 
 

Purchases
 
(30.3
)
 
(134.7
)

Sales
 
11.7
 
 
150.4
 

Cash proceeds from sale of property and equipment
 
5.7
 
 
18.4
 

Cash proceeds from settlement of cross currency swap
 
64.3
 
 

 

Net change in loans held for investment
 
(25.9
)
 
(11.1
)

Other
 
(0.2
)
 
(0.6
)

Discontinued operations
 

 
 
0.9
 

Net cash used by investing activities
 
(331.2
)
 
(179.8
)

 
 
 
 

Cash flows from financing activities:
 
 
 

Borrowings (repayments) of debt:
 
 
 

Short-term borrowings
 
37.7
 
 
98.6
 

Long-term revolving credit facilities:
 
 
 

Borrowings
 
7,058.7
 
 
9,265.7
 

Repayments
 
(6,832.7
)
 
(9,273.8
)

Other long-term debt:
 
 
 

Borrowings
 
189.9
 
 
25.4
 

Repayments
 
(87.0
)
 
(97.1
)

Acquisition of noncontrolling interest
 
(7.8
)
 
(0.6
)

Cash paid for acquisition related settlements and obligations
 
(2.8
)
 
(11.1
)

Debt financing costs
 
(5.6
)
 

 

Repurchase shares of Brink’s common stock
 
(52.2
)
 
(169.9
)

Dividends to:
 
 
 

Shareholders of Brink’s
 
(37.6
)
 
(39.6
)

Noncontrolling interests in subsidiaries
 
(7.1
)
 
(7.7
)

Tax withholdings associated with share-based compensation
 
(12.2
)
 
(8.0
)

Other
 
3.9
 
 
11.0
 

Net cash provided (used) by financing activities
 
245.2
 
 
(207.1
)

 
 
 
 

Effect of exchange rate changes on cash
 
        (70.1
)
 
        (42.4
)

Cash, cash equivalents and restricted cash:
 
 
 

Increase
 
323.8
 
 
273.1
 

Balance at beginning of period
 
1,086.7
 
 
1,410.5
 

Balance at end of period
$
1,410.5
 
 
1,683.6
 

Supplemental Cash Flow Information
Twelve Months Ended December 31,

 
 
2022
 
 
2023
 

Cash paid for income taxes, net
$
(127.8
)
 
(96.3
)

The Brink’s Company and subsidiaries
(In millions, except for per share amounts) (Unaudited)

Fourth-Quarter 2023 vs. 2022

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 

GAAP
 
 
Organic
 
Acquisitions /
 
 
 
 
 
% Change
 

 
4Q’22
 
Change
 
Dispositions(a)
 
Currency(b)
 
4Q’23
 
Total
 
Organic
 

Revenues:
 
 
 
 
 
 
 
 
 
 
 
 
 
 

North America
$
413
 
 
(9
)
 

 
 

 
 
404
 
 
(2
)
 
(2
)
 

Latin America
 
312
 
 
91
 
 

 
 
(60
)
 
343
 
 
10
 
 
29
 
 

Europe
 
263
 
 
17
 
 

 
 
15
 
 
294
 
 
12
 
 
7
 
 

Rest of World
 
203
 
 
3
 
 
(2
)
 

 
 
204
 
 

 
 
2
 
 

Segment revenues(c)
$
1,191
 
 
102
 
 
(2
)
 
(46
)
 
1,246
 
 
5
 
 
9
 
 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 

Revenues – GAAP
$
1,191
 
 
102
 
 
(2
)
 
(46
)
 
1,246
 
 
5
 
 
9
 
 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 

Operating profit:
 
 
 
 
 
 
 
 
 
 
 
 
 
 

North America
$
62
 
 
(1
)
 

 
 

 
 
62
 
 
(1
)
 
(1
)
 

Latin America
 
84
 
 
26
 
 

 
 
(30
)
 
80
 
 
(5
)
 
31
 
 

Europe
 
35
 
 
1
 
 

 
 
2
 
 
38
 
 
7
 
 
2
 
 

Rest of World
 
43
 
 

 
 

 
 

 
 
43
 
 

 
 

 
 

Segment operating profit
 
224
 
 
26
 
 

 
 
(28
)
 
222
 
 
(1
)
 
11
 
 

Corporate(d)
 
(37
)
 
6
 
 

 
 
(2
)
 
(33
)
 
(11
)
 
(15
)
 

Operating profit – non-GAAP
$
187
 
 
31
 
 

 
 
(29
)
 
190
 
 
1
 
 
17
 
 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 

Other items not allocated to segments(e)
 
(45
)
 
(4
)
 
6
 
 
(45
)
 
(87
)
 
96
 
 
9
 
 

Operating profit – GAAP
$
143
 
 
27
 
 
6
 
 
(75
)
 
102
 
 
(29
)
 
19
 
 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 

GAAP interest expense
 
(44
)
 
 
 
 
 
 
 
(52
)
 
19
 
 
 
 

GAAP interest and other income (expense)
 
(5
)
 
 
 
 
 
 
 
3
 
 
fav
 
 
 

GAAP provision for income taxes
 
45
 
 
 
 
 
 
 
 
58
 
 
30
 
 
 
 

GAAP noncontrolling interests
 
2
 
 
 
 
 
 
 
 
1
 
 
(75
)
 
 
 

GAAP income (loss) from continuing operations(f)
 
48
 
 
 
 
 
 
 
 
(6
)
 
unfav
 
 
 

GAAP EPS(f)
$
1.01
 
 
 
 
 
 
 
 
(0.13
)
 
unfav
 
 
 

GAAP weighted-average diluted shares(f)
 
47.5
 
 
 
 
 
 
 
 
45.1
 
 
(5
)
 
 
 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 

Non-GAAP(g)
 
 
Organic
 
 
Acquisitions /
 
 
 
 
 
% Change
 

 
4Q’22
 
Change
 
 
Dispositions(a)
 
Currency(b)
 
4Q’23
 
Total
 
Organic
 
 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 

Segment revenues – GAAP/non-GAAP
$
1,191
 
 
102
 
 
(2
)
 
(46
)
 
1,246
 
 
5
 
 
9
 
 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 

Non-GAAP operating profit
 
187
 
 
31
 
 

 
 
(29
)
 
190
 
 
1
 
 
17
 
 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 

Non-GAAP interest expense
 
(44
)
 
 
 
 
 
 
 
 
(52
)
 
20
 
 
 
 
 

Non-GAAP interest and other income (expense)
 
4
 
 
 
 
 
 
 
 
 
33
 
 
fav
 
 
 
 

Non-GAAP provision for income taxes
 
45
 
 
 
 
 
 
 
 
 
42
 
 
(5
)
 
 
 
 

Non-GAAP noncontrolling interests
 
3
 
 
 
 
 
 
 
 
 
1
 
 
(61
)
 
 
 
 

Non-GAAP income from continuing operations(f)
 
100
 
 
 
 
 
 
 
 
 
127
 
 
27
 
 
 
 
 

Non-GAAP EPS(f)
$
2.10
 
 
 
 
 
 
 
 
 
2.76
 
 
31
 
 
 
 
 

Non-GAAP weighted-average diluted shares
 
47.5
 
 
 
 
 
 
 
 
 
45.9
 
 
(3
)
 
 
 
 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 

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 Argentina devaluations under highly inflationary accounting and the sum of monthly currency changes. Monthly currency changes represent the accumulation throughout the year of the impact on current period results from changes in foreign currency rates from the prior year period.
(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 10-12 for more information.
(f) Attributable to Brink’s. Because we reported a loss from continuing operations on a GAAP basis in the fourth quarter of 2023, GAAP EPS was calculated using basic shares. However, as we reported income from continuing operations on a non-GAAP basis in the fourth quarter of 2023, non-GAAP EPS was calculated using diluted shares.
(g) Non-GAAP results are reconciled to applicable GAAP results on pages 13-17.

The Brink’s Company and subsidiaries
(In millions, except for per share amounts) (Unaudited)

Full-Year 2023 vs. 2022

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 

GAAP
 
 
Organic
 
Acquisitions /
 
 
 
 
 
% Change
 

 
 
2022
 
 
Change
 
Dispositions(a)
 
Currency(b)
 
2023
 
 
Total
 
Organic
 

Revenues:
 
 
 
 
 
 
 
 
 
 
 
 
 
 

North America
$
1,584
 
 
18
 
3
 
 
(5
)
 
1,601
 
 
1
 
 
1
 
 

Latin America
 
1,211
 
 
282
 
3
 
 
(163
)
 
1,332
 
 
10
 
 
23
 
 

Europe
 
931
 
 
71
 
107
 
 
27
 
 
1,137
 
 
22
 
 
8
 
 

Rest of World
 
809
 
 
23
 
(7
)
 
(21
)
 
804
 
 
(1
)
 
3
 
 

Segment revenues(c)
$
4,536
 
 
394
 
106
 
 
(161
)
 
4,875
 
 
7
 
 
9
 
 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 

Revenues – GAAP
$
4,536
 
 
394
 
106
 
 
(161
)
 
4,875
 
 
7
 
 
9
 
 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 

Operating profit:
 
 
 
 
 
 
 
 
 
 
 
 
 
 

North America
$
159
 
 
25
 
1
 
 

 
 
185
 
 
16
 
 
16
 
 

Latin America
 
278
 
 
77
 
1
 
 
(76
)
 
280
 
 
1
 
 
28
 
 

Europe
 
98
 
 
9
 
14
 
 
4
 
 
125
 
 
27
 
 
9
 
 

Rest of World
 
164
 
 
3
 
1
 
 
(4
)
 
164
 
 

 
 
2
 
 

Segment operating profit
 
699
 
 
115
 
16
 
 
(76
)
 
755
 
 
8
 
 
16
 
 

Corporate(d)
 
(149
)
 
5
 

 
 
4
 
 
(140
)
 
(6
)
 
(3
)
 

Operating profit – non-GAAP
$
550
 
 
120
 
16
 
 
(71
)
 
615
 
 
12
 
 
22
 
 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 

Other items not allocated to segments(e)
 
(189
)
 
31
 
16
 
 
(47
)
 
(190
)
 

 
 
(16
)
 

Operating profit – GAAP
$
361
 
 
151
 
32
 
 
(119
)
 
425
 
 
18
 
 
42
 
 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 

GAAP interest expense
 
(139
)
 
 
 
 
 
 
 
(204
)
 
47
 
 
 
 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 

GAAP interest and other income (expense)
 
4
 
 
 
 
 
 
 
 
14
 
 
fav
 
 
 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 

GAAP provision for income taxes
 
41
 
 
 
 
 
 
 
 
139
 
 
unfav
 
 
 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 

GAAP noncontrolling interests
 
11
 
 
 
 
 
 
 
 
11
 
 
(6
)
 
 
 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 

GAAP income from continuing operations(f)
 
174
 
 
 
 
 
 
 
 


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