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Share Name | Share Symbol | Market | Type |
---|---|---|---|
Brinks Company | NYSE:BCO | NYSE | Common Stock |
Price Change | % Change | Share Price | High Price | Low Price | Open Price | Shares Traded | Last Trade | |
---|---|---|---|---|---|---|---|---|
1.28 | 1.47% | 88.40 | 88.745 | 87.28 | 88.42 | 166,913 | 20:13:55 |
Virginia
|
001-09148
|
54-1317776
|
(State or other jurisdiction of incorporation)
|
(Commission File Number)
|
(IRS Employer Identification No.)
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[ ]
|
Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
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[ ]
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Soliciting materials pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
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[ ]
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Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
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[ ]
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Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
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Item 2.02
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Results of Operations and Financial Condition.
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Item 7.01
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Regulation FD Disclosure.
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Item 9.01
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Financial Statements and Exhibits.
|
||
(d)
|
Exhibits
|
||
99.1
|
Press Release, dated October 30, 2014, issued by The Brink’s Company
|
||
99.2
|
Slide presentation of The Brink’s Company
|
THE BRINK’S COMPANY
(Registrant)
|
||
Date: October 30, 2014
|
By:
|
/s/ Joseph W. Dziedzic
|
Joseph W. Dziedzic
|
||
Vice President and Chief Financial Officer
|
EXHIBIT
|
DESCRIPTION
|
99.1
|
Press Release, dated October 30, 2014, issued by The Brink’s Company
|
99.2
|
Slide presentation of The Brink’s Company
|
The Brink’s Company
|
1801 Bayberry Court
|
P.O. Box 18100
|
Richmond, VA 23226-8100 USA
|
Tel. 804.289.9600
|
Fax 804.289.9770
|
|
·
|
EPS includes Peru divestiture gain ($.45) and Netherlands restructuring charge ($.24)
|
|
· EPS $.38 vs. $.61; revenue down 7% (13% organic growth)
|
|
·
|
Segment profit down 79% (58% organic decline); margin 1.9% vs. 8.1%
|
|
·
|
Latin America $5 million loss vs. $43 million profit; margin (1.5%) vs. 10.1%
|
|
·
|
EMEA profit $16 million vs. $32 million; margin 5.1% vs 10.7%
|
|
·
|
North America profit $2 million vs. break-even; margin 0.7% vs 0.1%
|
·
|
Asia-Pacific profit flat at $5 million; margin 13.0% vs. 13.8%
|
|
Non-GAAP:
|
|
·
|
EPS $.19 vs. $.69; revenue down 7% (13% organic growth)
|
|
·
|
Segment profit down 53% (39% organic decline); margin 4.2% vs. 8.4%
|
|
·
|
Latin America profit break-even vs. $42 million; margin 0.1% vs. 10.0%
|
|
·
|
EMEA profit $31 million vs. $32 million; margin 10.2% vs. 10.7%
|
|
·
|
North America profit $2 million vs. $3 million; margin 1.0% vs. 1.4%
|
·
|
Asia-Pacific profit flat at $5 million; margin 13.0% vs. 13.8%
|
|
|
·
|
GAAP and non-GAAP results include charge of $10 million ($.13 per share) related to a robbery in Chile (see “Recent Events” on page 6); charge allocated to regional segments, consistent with other global expenses
|
|
·
|
Negative currency impact: $194 million on revenue (GAAP and non-GAAP); $16 million on GAAP profit, $12 million on non-GAAP profit; due primarily to devaluation of Venezuela currency
|
Summary Reconciliation of Third-Quarter GAAP to Non-GAAP EPS*
|
||||||||||||||||
Third Quarter
|
Nine Months
|
|||||||||||||||
2014
|
2013
|
2014
|
2013
|
|||||||||||||
GAAP Diluted EPS
|
$ | 0.38 | $ | 0.61 | $ | (0.76 | ) | $ | 0.94 | |||||||
Exclude expenses related to currency devaluation in Venezuela
|
0.06 | - | 1.71 | 0.18 | ||||||||||||
Exclude U.S. retirement plan expenses
|
0.05 | 0.16 | 0.17 | 0.48 | ||||||||||||
Exclude employee benefit settlement losses
|
0.04 | 0.01 | 0.07 | 0.02 | ||||||||||||
Exclude gains and losses on acquisitions, dispositions, and closures
|
(0.25 | ) | (0.05 | ) | (0.28 | ) | (0.13 | ) | ||||||||
Exclude share-based compensation adjustment
|
(0.03 | ) | - | 0.04 | - | |||||||||||
Adjust quarterly tax rate to full-year average rate
|
(0.06 | ) | (0.04 | ) | (0.08 | ) | - | |||||||||
Non-GAAP Diluted EPS
|
$ | 0.19 | $ | 0.69 | $ | 0.86 | $ | 1.49 |
Summary of Third-Quarter Results*
|
||||||||||||||||||||||||
Third Quarter
|
Nine Months
|
|||||||||||||||||||||||
(In millions, except for per share amounts)
|
2014
|
2013
|
% Change
|
2014
|
2013
|
% Change
|
||||||||||||||||||
GAAP
|
||||||||||||||||||||||||
Revenues
|
$ | 913 | 982 | (7 | ) | $ | 2,806 | 2,903 | (3 | ) | ||||||||||||||
Segment operating profit (loss)(a)
|
17 | 80 | (79 | ) | (11 | ) | 169 |
unfav
|
||||||||||||||||
Non-segment income (expense)
|
31 | (21 | ) |
fav
|
(3 | ) | (59 | ) | (95 | ) | ||||||||||||||
Operating profit (loss)
|
48 | 59 | (20 | ) | (14 | ) | 109 |
unfav
|
||||||||||||||||
Income (loss) from continuing operations(b)
|
19 | 30 | (37 | ) | (37 | ) | 46 |
unfav
|
||||||||||||||||
Diluted EPS from continuing operations(b)
|
0.38 | 0.61 | (38 | ) | (0.76 | ) | 0.94 |
unfav
|
||||||||||||||||
Non-GAAP(c)
|
||||||||||||||||||||||||
Revenues
|
$ | 913 | 982 | (7 | ) | $ | 2,806 | 2,903 | (3 | ) | ||||||||||||||
Segment operating profit(a)
|
38 | 82 | (53 | ) | 147 | 189 | (22 | ) | ||||||||||||||||
Non-segment income (expense)
|
(13 | ) | (11 | ) | 12 | (36 | ) | (30 | ) | 18 | ||||||||||||||
Operating profit
|
26 | 71 | (64 | ) | 111 | 159 | (30 | ) | ||||||||||||||||
Income from continuing operations(b)
|
10 | 34 | (72 | ) | 42 | 73 | (42 | ) | ||||||||||||||||
Diluted EPS from continuing operations(b)
|
0.19 | 0.69 | (72 | ) | 0.86 | 1.49 | (42 | ) |
(a)
|
Segment operating profit is a Non-GAAP measure. Disclosure of segment operating profit enables investors to assess operating performance excluding non-segment income and expense.
|
(b)
|
Amounts reported are attributable to shareholders of The Brink’s Company and exclude earnings related to noncontrolling interests.
|
(c)
|
These Non-GAAP results for 2014 reflect Venezuela’s local earnings translated at 6.3 bolivars to the U.S. dollar through March 23, 2014, and at approximately 50 bolivars to the U.S. dollar from March 24 to September 30, 2014. Also see pages 14 – 18 for Non-GAAP Results Adjusted for Venezuelan Results at 50 Bolivars per U.S. dollar for hypothetical historical results had we used a rate of 50 to translate Venezuela’s results for all periods in 2013 and 2014.
|
|
The Brink’s Company and subsidiaries
|
|
Acquisitions /
|
|||||||||||||||||||||||||||
Organic
|
Dispositions
|
Currency
|
% Change
|
|||||||||||||||||||||||||
3Q '13
|
Change
|
(a)
|
(b)
|
3Q '14
|
Total
|
Organic
|
||||||||||||||||||||||
Revenues:
|
||||||||||||||||||||||||||||
Latin America
|
$ | 424 | 111 | - | (192 | ) | 343 | (19 | ) | 26 | ||||||||||||||||||
EMEA
|
301 | 2 | - | - | 304 | 1 | 1 | |||||||||||||||||||||
North America
|
223 | 8 | - | (2 | ) | 228 | 2 | 3 | ||||||||||||||||||||
Asia Pacific
|
35 | 3 | - | - | 39 | 10 | 10 | |||||||||||||||||||||
Total
|
$ | 982 | 125 | - | (194 | ) | 913 | (7 | ) | 13 | ||||||||||||||||||
Operating profit:
|
||||||||||||||||||||||||||||
Latin America
|
$ | 43 | (31 | ) | - | (17 | ) | (5 | ) |
unfav
|
(73 | ) | ||||||||||||||||
EMEA
|
32 | (17 | ) | - | - | 16 | (51 | ) | (53 | ) | ||||||||||||||||||
North America
|
- | 2 | - | - | 2 |
fav
|
fav
|
|||||||||||||||||||||
Asia Pacific
|
5 | - | - | - | 5 | 4 | 4 | |||||||||||||||||||||
Segment operating profit
|
80 | (47 | ) | - | (16 | ) | 17 | (79 | ) | (58 | ) | |||||||||||||||||
Non-segment
|
(21 | ) | 7 | 44 | - | 31 |
fav
|
(35 | ) | |||||||||||||||||||
Total
|
$ | 59 | (39 | ) | 44 | (16 | ) | 48 | (20 | ) | (67 | ) | ||||||||||||||||
Segment operating margin:
|
||||||||||||||||||||||||||||
Latin America
|
10.1 | % | (1.5 | %) | ||||||||||||||||||||||||
EMEA
|
10.7 | % | 5.1 | % | ||||||||||||||||||||||||
North America
|
0.1 | % | 0.7 | % | ||||||||||||||||||||||||
Asia Pacific
|
13.8 | % | 13.0 | % | ||||||||||||||||||||||||
Segment operating margin
|
8.1 | % | 1.9 | % |
Acquisitions /
|
||||||||||||||||||||||||||||
Organic
|
Dispositions
|
Currency
|
% Change
|
|||||||||||||||||||||||||
3Q '13
|
Change
|
(a)
|
(b)
|
3Q '14
|
Total
|
Organic
|
||||||||||||||||||||||
Revenues:
|
||||||||||||||||||||||||||||
Latin America
|
$ | 424 | 111 | - | (192 | ) | 343 | (19 | ) | 26 | ||||||||||||||||||
EMEA
|
301 | 2 | - | - | 304 | 1 | 1 | |||||||||||||||||||||
North America
|
223 | 8 | - | (2 | ) | 228 | 2 | 3 | ||||||||||||||||||||
Asia Pacific
|
35 | 3 | - | - | 39 | 10 | 10 | |||||||||||||||||||||
Total
|
$ | 982 | 125 | - | (194 | ) | 913 | (7 | ) | 13 | ||||||||||||||||||
Operating profit:
|
||||||||||||||||||||||||||||
Latin America
|
$ | 42 | (30 | ) | - | (12 | ) | - | (100 | ) | (72 | ) | ||||||||||||||||
EMEA
|
32 | (2 | ) | - | - | 31 | (3 | ) | (5 | ) | ||||||||||||||||||
North America
|
3 | (1 | ) | - | - | 2 | (29 | ) | (23 | ) | ||||||||||||||||||
Asia Pacific
|
5 | - | - | - | 5 | 4 | 4 | |||||||||||||||||||||
Segment operating profit
|
82 | (32 | ) | - | (12 | ) | 38 | (53 | ) | (39 | ) | |||||||||||||||||
Non-segment
|
(11 | ) | (1 | ) | - | - | (13 | ) | 12 | 12 | ||||||||||||||||||
Total
|
$ | 71 | (34 | ) | - | (12 | ) | 26 | (64 | ) | (48 | ) | ||||||||||||||||
Segment operating margin:
|
||||||||||||||||||||||||||||
Latin America
|
10.0 | % | 0.1 | % | ||||||||||||||||||||||||
EMEA
|
10.7 | % | 10.2 | % | ||||||||||||||||||||||||
North America
|
1.4 | % | 1.0 | % | ||||||||||||||||||||||||
Asia Pacific
|
13.8 | % | 13.0 | % | ||||||||||||||||||||||||
Segment operating margin
|
8.4 | % | 4.2 | % |
(a)
|
Includes operating results and gains/losses on acquisitions, sales and exits of businesses.
|
(b)
|
The “Currency” amount in the GAAP table is the sum of the “monthly currency changes” adjusted for any additional expense recorded under highly inflationary accounting rules. The “monthly currency change” is equal to the Revenue or Operating Profit for the month in local currency, on a country-by-country basis, multiplied by the difference in rates used to translate the current period amounts to U.S. dollars versus the translation rates used in the year-ago month. Venezuela is translated to the U.S. dollar under highly inflationary accounting rules. Net monetary assets in local currency are remeasured to U.S. dollars using current exchange rates with losses recognized in earnings. Nonmonetary assets under these rules are not remeasured to a lower basis in U.S. dollars when the currency devalues. Instead, these assets retain their higher U.S. dollar historical bases and the excess basis is recognized in earnings as each asset is consumed. Both of these effects are included in “Currency” in the GAAP table. The Non-GAAP table excludes any excess basis recognized in earnings as the nonmonetary assets are consumed.
|
Acquisitions /
|
||||||||||||||||||||||||||||
Organic
|
Dispositions
|
Currency
|
% Change
|
|||||||||||||||||||||||||
YTD '13
|
Change
|
(a)
|
(b)
|
YTD '14
|
Total
|
Organic
|
||||||||||||||||||||||
Revenues:
|
||||||||||||||||||||||||||||
Latin America
|
$ | 1,250 | 314 | - | (446 | ) | 1,118 | (11 | ) | 25 | ||||||||||||||||||
EMEA
|
872 | 11 | - | 21 | 904 | 4 | 1 | |||||||||||||||||||||
North America
|
672 | 11 | - | (9 | ) | 674 | - | 2 | ||||||||||||||||||||
Asia Pacific
|
108 | 5 | - | (3 | ) | 110 | 2 | 4 | ||||||||||||||||||||
Total
|
$ | 2,903 | 341 | - | (437 | ) | 2,806 | (3 | ) | 12 | ||||||||||||||||||
Operating profit (loss):
|
||||||||||||||||||||||||||||
Latin America
|
$ | 91 | (13 | ) | - | (159 | ) | (81 | ) |
unfav
|
(15 | ) | ||||||||||||||||
EMEA
|
59 | (13 | ) | - | 1 | 48 | (20 | ) | (22 | ) | ||||||||||||||||||
North America
|
5 | 4 | - | (1 | ) | 8 | 84 | 98 | ||||||||||||||||||||
Asia Pacific
|
14 | - | - | - | 14 | (1 | ) | - | ||||||||||||||||||||
Segment operating profit
|
169 | (22 | ) | - | (158 | ) | (11 | ) |
unfav
|
(13 | ) | |||||||||||||||||
Non-segment
|
(59 | ) | 14 | 43 | - | (3 | ) | (95 | ) | (23 | ) | |||||||||||||||||
Total
|
$ | 109 | (8 | ) | 43 | (158 | ) | (14 | ) |
unfav
|
(8 | ) | ||||||||||||||||
Segment operating (loss) margin:
|
||||||||||||||||||||||||||||
Latin America
|
7.2 | % | (7.3 | %) | ||||||||||||||||||||||||
EMEA
|
6.8 | % | 5.3 | % | ||||||||||||||||||||||||
North America
|
0.7 | % | 1.2 | % | ||||||||||||||||||||||||
Asia Pacific
|
13.0 | % | 12.7 | % | ||||||||||||||||||||||||
Segment operating margin
|
5.8 | % | (0.4 | %) |
Acquisitions /
|
% Change
|
|||||||||||||||||||||||||||
Organic
|
Dispositions
|
Currency
|
||||||||||||||||||||||||||
YTD '13
|
Change
|
(a)
|
(b)
|
YTD '14
|
Total
|
Organic
|
||||||||||||||||||||||
Revenues:
|
||||||||||||||||||||||||||||
Latin America
|
$ | 1,250 | 314 | - | (446 | ) | 1,118 | (11 | ) | 25 | ||||||||||||||||||
EMEA
|
872 | 11 | - | 21 | 904 | 4 | 1 | |||||||||||||||||||||
North America
|
672 | 11 | - | (9 | ) | 674 | - | 2 | ||||||||||||||||||||
Asia Pacific
|
108 | 5 | - | (3 | ) | 110 | 2 | 4 | ||||||||||||||||||||
Total
|
$ | 2,903 | 341 | - | (437 | ) | 2,806 | (3 | ) | 12 | ||||||||||||||||||
Operating profit:
|
||||||||||||||||||||||||||||
Latin America
|
$ | 102 | (10 | ) | - | (35 | ) | 58 | (44 | ) | (10 | ) | ||||||||||||||||
EMEA
|
59 | 3 | - | 1 | 64 | 7 | 5 | |||||||||||||||||||||
North America
|
13 | (1 | ) | - | (1 | ) | 11 | (14 | ) | (10 | ) | |||||||||||||||||
Asia Pacific
|
14 | - | - | - | 14 | - | 1 | |||||||||||||||||||||
Segment operating profit
|
189 | (8 | ) | - | (34 | ) | 147 | (22 | ) | (4 | ) | |||||||||||||||||
Non-segment
|
(30 | ) | (6 | ) | - | - | (36 | ) | 18 | 18 | ||||||||||||||||||
Total
|
$ | 159 | (14 | ) | - | (34 | ) | 111 | (30 | ) | (9 | ) | ||||||||||||||||
Segment operating margin:
|
||||||||||||||||||||||||||||
Latin America
|
8.2 | % | 5.2 | % | ||||||||||||||||||||||||
EMEA
|
6.8 | % | 7.0 | % | ||||||||||||||||||||||||
North America
|
2.0 | % | 1.7 | % | ||||||||||||||||||||||||
Asia Pacific
|
13.0 | % | 12.8 | % | ||||||||||||||||||||||||
Segment operating margin
|
6.5 | % | 5.2 | % |
|
Amounts may not add due to rounding. See page 4 for footnote explanations.
|
·
|
continuing market volatility and commodity price fluctuations and their impact on the demand for our services;
|
·
|
our ability to continue profit growth in Latin America;
|
·
|
our ability to maintain or improve volumes at favorable pricing levels and increase cost and productivity efficiencies, particularly in the United States and Mexico;
|
·
|
investments in information technology and value-added services and their impact on revenue and profit growth;
|
·
|
our ability to develop and implement solutions for our customers and gain market acceptance of those solutions;
|
·
|
our ability to maintain an effective IT infrastructure and safeguard confidential information;
|
·
|
risks customarily associated with operating in foreign countries including changing labor and economic conditions, currency devaluations, safety and security issues, political instability, restrictions on repatriation of earnings and capital, nationalization, expropriation and other forms of restrictive government actions;
|
·
|
the strength of the U.S. dollar relative to foreign currencies and foreign currency exchange rates;
|
·
|
the stability of the Venezuelan economy, changes in Venezuelan policy regarding foreign-owned businesses;
|
·
|
changes in currency restrictions and in foreign exchange rates, including fluctuations in value of the Venezuelan bolivar;
|
·
|
regulatory and labor issues in many of our global operations, including negotiations with organized labor and the possibility of work stoppages;
|
·
|
our ability to identify and execute further cost and operational improvements and efficiencies in our core businesses;
|
·
|
our ability to integrate successfully recently acquired companies and improve their operating profit margins;
|
·
|
costs related to dispositions and market exits;
|
·
|
our ability to identify evaluate and pursue acquisitions and other strategic opportunities including those in the home security industry and emerging markets;
|
·
|
the willingness of our customers to absorb fuel surcharges and other future price increases;
|
·
|
our ability to obtain necessary information technology and other services at favorable pricing levels from third party service providers;
|
·
|
variations in costs or expenses and performance delays of any public or private sector supplier, service provider or customer;
|
·
|
our ability to obtain appropriate insurance coverage, positions taken by insurers with respect to claims made and the financial condition of insurers, safety and security performance, our loss experience, and changes in insurance costs;
|
·
|
security threats worldwide and losses of customer valuables;
|
·
|
costs associated with the purchase and implementation of cash processing and security equipment;
|
·
|
employee and environmental liabilities in connection with our former coal operations, black lung claims incidence;
|
·
|
the impact of the Patient Protection and Affordable Care Act on black lung liability and the Company's ongoing operations;
|
·
|
changes to estimated liabilities and assets in actuarial assumptions due to payments made, investment returns, interest rates and annual actuarial revaluations, the funding requirements, accounting treatment, investment performance and costs and expenses of our pension plans, the VEBA and other employee benefits, mandatory or voluntary pension plan contributions;
|
·
|
the nature of our hedging relationships;
|
·
|
changes in estimates and assumptions underlying our critical accounting policies;
|
·
|
our ability to realize deferred tax assets;
|
·
|
the outcome of pending and future claims, litigation, and administrative proceedings;
|
·
|
public perception of the Company’s business and reputation;
|
·
|
access to the capital and credit markets;
|
·
|
seasonality, pricing and other competitive industry factors; and
|
·
|
the promulgation and adoption of new accounting standards and interpretations, new government regulations and interpretation of existing regulations.
|
GAAP
|
Non-GAAP
|
|||||||
2014
|
2014
|
|||||||
2013
|
Estimate
|
2013
|
Estimate
|
|||||
Organic revenue growth
|
||||||||
Latin America
|
17 %
|
25– 27%
|
17 %
|
25– 27%
|
||||
EMEA
|
2
|
0 – 2
|
2
|
0 – 2
|
||||
North America
|
1
|
0 – 2
|
1
|
0 – 2
|
||||
Asia Pacific
|
11
|
2 – 4
|
11
|
2 – 4
|
||||
Total
|
8
|
11 – 13
|
8
|
11 – 13
|
||||
Currency impact on revenue
|
||||||||
Latin America
|
(9)%
|
(38) – (42)%
|
(9)%
|
(38) – (42)%
|
||||
EMEA
|
2
|
0 – 3
|
2
|
0 – 3
|
||||
North America
|
(1)
|
(2) – 0
|
(1)
|
(2) – 0
|
||||
Asia Pacific
|
(5)
|
(1) – (3)
|
(5)
|
(1) – (3)
|
||||
Total
|
(3)
|
(17) – (19)
|
(3)
|
(17) – (19)
|
||||
Total revenues
|
$
|
3,942
|
~3.7 billion
|
$
|
3,942
|
~3.7 billion
|
||
Segment margin
|
||||||||
Latin America(a)
|
8.7 %
|
(3.0) – (5.0)%
|
9.5 %
|
5.0 – 7.0%
|
||||
EMEA(b)
|
6.9
|
5.5 – 7.5
|
6.9
|
6.5 – 8.5
|
||||
North America(c)
|
0.5
|
1.5 – 2.5
|
1.8
|
2.0 – 3.0
|
||||
Asia Pacific
|
11.5
|
10.5 – 12.5
|
12.2
|
10.5 – 12.5
|
||||
Total
|
6.4
|
1.0 – 2.0
|
7.1
|
5.5 – 6.0
|
||||
Non-segment expense:
|
||||||||
General and administrative(d)
|
$
|
45
|
51
|
$
|
45
|
49
|
||
Retirement plans(c)
|
41
|
14
|
-
|
-
|
||||
Acquisition and disposition gains(e)
|
(3)
|
(45)
|
-
|
-
|
||||
Royalty income
|
(2)
|
(2)
|
(2)
|
(2)
|
||||
Non-segment expense
|
$
|
81
|
18
|
$
|
43
|
47
|
||
Effective income tax rate(a)(b)(c)(d)(e)
|
35 %
|
100%+
|
34 %
|
36.5% – 39.5%
|
||||
Interest expense
|
$
|
25
|
24 – 26
|
$
|
25
|
24 – 26
|
||
Interest and other income (expense)
|
$
|
2
|
1 – 2
|
$
|
2
|
1 – 2
|
||
Net income (loss) attributable to
|
||||||||
noncontrolling interests(a)
|
$
|
24
|
(25) – (29)
|
$
|
29
|
18 – 22
|
||
Fixed assets acquired
|
||||||||
Capital expenditures
|
$
|
178
|
150 – 160
|
$
|
178
|
150 – 160
|
||
Capital leases(f)
|
5
|
10
|
5
|
10
|
||||
Total
|
$
|
183
|
160 – 170
|
$
|
183
|
160 – 170
|
||
Depreciation and amortization
|
$
|
174
|
170 – 175
|
$
|
174
|
170 – 175
|
||
(a)
|
Expenses related to currency devaluation in Venezuela ($138 million in 2014 and $15 million in 2013) have been excluded from Non-GAAP and Adjusted Non-GAAP results.
|
(b)
|
$16 million in pretax charges related to the planned restructuring of our business in the Netherlands have been excluded from Non-GAAP and Adjusted Non-GAAP results.
|
(c)
|
Costs related to U.S. retirement plans have been excluded from Non-GAAP and Adjusted Non-GAAP results including $12 million in 2013 and $4 million in 2014 related to North America, and $41 million in 2013 and $14 million in 2014 related to non-segment expense. We expect to record a non-cash settlement charge in the fourth quarter of 2014 related to the U.S. pension plan. The charge, which is projected to be between $50 million and $65 million, has been excluded from 2014 estimated GAAP and non-GAAP results.
|
(d)
|
Accounting adjustments to revise share-based compensation from fixed to variable fair value accounting ($2 million) have been excluded from Non-GAAP and Adjusted Non-GAAP results.
|
(e)
|
Acquisition and disposition gains and losses are excluded from Non-GAAP results and Adjusted Non-GAAP results.
|
(f)
|
Includes capital leases for newly acquired assets only.
|
Adjusted Non-GAAP
|
|||||
2014
|
|||||
Estimate
|
|||||
Organic revenue growth
|
|||||
Latin America
|
12 – 14%
|
||||
EMEA
|
0 – 2
|
||||
North America
|
0 – 2
|
||||
Asia Pacific
|
2 – 4
|
||||
Total
|
4 – 6
|
||||
Currency impact on revenue
|
|||||
Latin America
|
(8) – (10)%
|
||||
EMEA
|
0 – 3
|
||||
North America
|
(2) – 0
|
||||
Asia Pacific
|
(1) – (3)
|
||||
Total
|
(3) – (5)
|
||||
Total revenues
|
$
|
~3.6 billion
|
|||
Segment margin
|
|||||
Latin America(a)
|
4.0 – 6.0%
|
||||
EMEA(b)
|
6.5 – 8.5
|
||||
North America(c)
|
2.0 – 3.0
|
||||
Asia Pacific
|
10.5 – 12.5
|
||||
Total
|
5.0 – 5.5
|
||||
Non-segment expense:
|
|||||
General and administrative(d)
|
$
|
49
|
|||
Royalty income
|
(2)
|
||||
Non-segment expense
|
$
|
47
|
|||
Effective income tax rate(a)(b)(c)(d)
|
40% – 43%
|
||||
Interest expense
|
$
|
24 – 26
|
|||
Interest and other income (expense)
|
$
|
1 – 2
|
|||
Net income (loss) attributable to
|
|||||
noncontrolling interests(a)
|
$
|
10 – 14
|
|||
Fixed assets acquired:
|
|||||
Capital expenditures
|
$
|
150 – 160
|
|||
Capital leases(f)
|
10
|
||||
Total
|
$
|
160 – 170
|
|||
Depreciation and amortization
|
$
|
170 – 175
|
|||
Amounts may not add due to rounding. See page 10 for notes.
|
Third Quarter
|
Nine Months
|
||||||||||||||||
2014
|
2013
|
2014
|
2013
|
||||||||||||||
Revenues
|
$ | 913.1 | 982.4 | $ | 2,806.2 | 2,902.8 | |||||||||||
Costs and expenses:
|
|||||||||||||||||
Cost of revenues
|
770.9 | 783.2 | 2,321.1 | 2,368.1 | |||||||||||||
Selling, general and administrative expenses
|
135.5 | 141.2 | 416.0 | 418.0 | |||||||||||||
Total costs and expenses
|
906.4 | 924.4 | 2,737.1 | 2,786.1 | |||||||||||||
Other operating income (expense)
|
40.8 | 1.2 | (83.4 | ) | (7.4 | ) | |||||||||||
Operating profit (loss)
|
47.5 | 59.2 | (14.3 | ) | 109.3 | ||||||||||||
Interest expense
|
(6.6 | ) | (6.5 | ) | (18.3 | ) | (18.3 | ) | |||||||||
Interest and other income (expense)
|
0.4 | 0.3 | 0.7 | 1.2 | |||||||||||||
Income (loss) from continuing operations before tax
|
41.3 | 53.0 | (31.9 | ) | 92.2 | ||||||||||||
Provision (benefit) for income taxes
|
23.2 | 15.0 | 36.9 | 31.1 | |||||||||||||
Income (loss) from continuing operations
|
18.1 | 38.0 | (68.8 | ) | 61.1 | ||||||||||||
Income (loss) from discontinued operations, net of tax
|
1.5 | (6.0 | ) | 0.7 | (30.0 | ) | |||||||||||
Net income (loss)
|
19.6 | 32.0 | (68.1 | ) | 31.1 | ||||||||||||
Less net income (loss) attributable to noncontrolling interests
|
(0.6 | ) | 8.2 | (31.4 | ) | 15.2 | |||||||||||
Net income (loss) attributable to Brink’s
|
$ | 20.2 | 23.8 | $ | (36.7 | ) | 15.9 | ||||||||||
Amounts attributable to Brink’s
|
|||||||||||||||||
Continuing operations
|
$ | 18.7 | 29.8 | $ | (37.4 | ) | 45.9 | ||||||||||
Discontinued operations
|
1.5 | (6.0 | ) | 0.7 | (30.0 | ) | |||||||||||
Net income (loss) attributable to Brink’s
|
$ | 20.2 | 23.8 | $ | (36.7 | ) | 15.9 | ||||||||||
Earnings (loss) per share attributable to Brink’s common shareholders(a):
|
|||||||||||||||||
Basic:
|
|||||||||||||||||
Continuing operations
|
$ | 0.38 | 0.61 | $ | (0.76 | ) | 0.94 | ||||||||||
Discontinued operations
|
0.03 | (0.12 | ) | 0.01 | (0.62 | ) | |||||||||||
Net income (loss)
|
$ | 0.41 | 0.49 | $ | (0.75 | ) | 0.33 | ||||||||||
Diluted:
|
|||||||||||||||||
Continuing operations
|
$ | 0.38 | 0.61 | $ | (0.76 | ) | 0.94 | ||||||||||
Discontinued operations
|
0.03 | (0.12 | ) | 0.01 | (0.61 | ) | |||||||||||
Net income (loss)
|
$ | 0.41 | 0.49 | $ | (0.75 | ) | 0.32 | ||||||||||
Weighted-average shares
|
|||||||||||||||||
Basic
|
49.1 | 48.7 | 49.0 | 48.6 | |||||||||||||
Diluted
|
49.4 | 49.0 | 49.0 | 48.9 | |||||||||||||
(a) Earnings per share may not add due to rounding.
|
|||||||||||||||||
Third Quarter
|
% Change
|
Nine Months
|
% Change
|
|||||||||||||||||||||||||||||
REVENUES BY REGION
|
2014
|
2013
|
Total
|
Organic
|
2014
|
2013
|
Total
|
Organic
|
||||||||||||||||||||||||
Latin America:
|
||||||||||||||||||||||||||||||||
Mexico
|
$ | 100.8 | 110.1 | (8 | ) | (7 | ) | $ | 310.8 | 338.2 | (8 | ) | (5 | ) | ||||||||||||||||||
Brazil
|
116.3 | 92.4 | 26 | 25 | 331.5 | 284.6 | 16 | 26 | ||||||||||||||||||||||||
Venezuela
|
25.1 | 114.7 | (78 | ) | 74 | 178.7 | 306.3 | (42 | ) | 73 | ||||||||||||||||||||||
Other
|
101.0 | 106.6 | (5 | ) | 10 | 297.1 | 321.2 | (8 | ) | 10 | ||||||||||||||||||||||
Total
|
343.2 | 423.8 | (19 | ) | 26 | 1,118.1 | 1,250.3 | (11 | ) | 25 | ||||||||||||||||||||||
EMEA:
|
||||||||||||||||||||||||||||||||
France
|
139.2 | 139.8 | - | - | 414.1 | 403.7 | 3 | - | ||||||||||||||||||||||||
Other
|
164.3 | 161.4 | 2 | 2 | 490.3 | 468.7 | 5 | 3 | ||||||||||||||||||||||||
Total
|
303.5 | 301.2 | 1 | 1 | 904.4 | 872.4 | 4 | 1 | ||||||||||||||||||||||||
North America:
|
||||||||||||||||||||||||||||||||
U.S.
|
181.8 | 175.6 | 4 | 4 | 537.9 | 529.4 | 2 | 2 | ||||||||||||||||||||||||
Canada
|
46.1 | 46.9 | (2 | ) | 3 | 135.8 | 142.6 | (5 | ) | 2 | ||||||||||||||||||||||
Total
|
227.9 | 222.5 | 2 | 3 | 673.7 | 672.0 | - | 2 | ||||||||||||||||||||||||
Asia Pacific
|
38.5 | 34.9 | 10 | 10 | 110.0 | 108.1 | 2 | 4 | ||||||||||||||||||||||||
Total Revenues
|
$ | 913.1 | 982.4 | (7 | ) | 13 | $ | 2,806.2 | 2,902.8 | (3 | ) | 12 | ||||||||||||||||||||
Amounts may not add due to rounding. Organic percentage change in revenue is equal to the total percentage change in revenue less the change associated with acquisitions and dispositions and less the change in revenues due to foreign currency exchange fluctuations as described in the note to the table on page 4.
|
Nine Months
|
||||||||
SELECTED CASH FLOW INFORMATION
|
2014
|
2013
|
||||||
Property and equipment acquired during the period
|
||||||||
Capital expenditures
|
||||||||
Latin America
|
$ | 37.5 | $ | 64.0 | ||||
EMEA
|
19.1 | 22.2 | ||||||
North America
|
24.4 | 33.8 | ||||||
Asia Pacific
|
2.8 | 2.2 | ||||||
Capital expenditures
|
83.8 | 122.2 | ||||||
Capital leases(a)
|
||||||||
Latin America
|
1.2 | 0.9 | ||||||
North America
|
4.7 | 0.7 | ||||||
Capital leases
|
5.9 | 1.6 | ||||||
Total
|
||||||||
Latin America
|
38.7 | 64.9 | ||||||
EMEA
|
19.1 | 22.2 | ||||||
North America
|
29.1 | 34.5 | ||||||
Asia Pacific
|
2.8 | 2.2 | ||||||
Total
|
$ | 89.7 | $ | 123.8 | ||||
Depreciation and amortization
|
||||||||
Latin America
|
$ | 47.2 | $ | 43.9 | ||||
EMEA
|
32.1 | 34.5 | ||||||
North America
|
44.5 | 43.9 | ||||||
Asia Pacific
|
3.7 | 4.3 | ||||||
Depreciation and amortization
|
$ | 127.5 | $ | 126.6 |
(a)
|
Represents the amount of property and equipment acquired using capital leases. Because these assets are acquired without using cash initially, the acquisitions are not reflected in the consolidated cash flow statement as capital expenditures. Amounts are provided here to assist in the comparison of assets acquired in the current year versus prior years.
|
GAAP Basis
|
Expenses Related to Currency Devaluation in Venezuela
(a)
|
Gains/ Losses on Acquisitions and Dispositions
(b)
|
Employee Benefit Settlement Losses
(c)
|
U.S. Retirement Plans
(d)
|
Share-based Compen-
sation Adjust-
ment
(e)
|
Adjust Income Tax Rate
(f)
|
Non-GAAP Basis
|
Adjust Venezuela to 50 Bolivars to the U.S. Dollar
(g)
|
Adjusted Non-GAAP Basis
(h)
|
|||||||||||||||||||||||||||||||
First Quarter 2014
|
||||||||||||||||||||||||||||||||||||||||
Revenues:
|
||||||||||||||||||||||||||||||||||||||||
Latin America
|
$ | 438.4 | - | - | - | - | - | - | 438.4 | (113.1 | ) | 325.3 | ||||||||||||||||||||||||||||
EMEA
|
298.0 | - | - | - | - | - | - | 298.0 | - | 298.0 | ||||||||||||||||||||||||||||||
North America
|
220.1 | - | - | - | - | - | - | 220.1 | - | 220.1 | ||||||||||||||||||||||||||||||
Asia Pacific
|
35.1 | - | - | - | - | - | - | 35.1 | - | 35.1 | ||||||||||||||||||||||||||||||
Revenues
|
$ | 991.6 | - | - | - | - | - | - | 991.6 | (113.1 | ) | 878.5 | ||||||||||||||||||||||||||||
Operating profit:
|
||||||||||||||||||||||||||||||||||||||||
Latin America
|
$ | (74.8 | ) | 123.3 | (1.2 | ) | 0.9 | - | - | - | 48.2 | (28.9 | ) | 19.3 | ||||||||||||||||||||||||||
EMEA
|
14.8 | - | - | - | - | - | - | 14.8 | - | 14.8 | ||||||||||||||||||||||||||||||
North America
|
1.1 | - | - | - | 1.2 | - | - | 2.3 | - | 2.3 | ||||||||||||||||||||||||||||||
Asia Pacific
|
4.4 | - | - | - | - | - | - | 4.4 | - | 4.4 | ||||||||||||||||||||||||||||||
Segment operating profit
|
(54.5 | ) | 123.3 | (1.2 | ) | 0.9 | 1.2 | - | - | 69.7 | (28.9 | ) | 40.8 | |||||||||||||||||||||||||||
Non-segment
|
(18.0 | ) | - | - | - | 4.8 | - | - | (13.2 | ) | - | (13.2 | ) | |||||||||||||||||||||||||||
Operating profit
|
$ | (72.5 | ) | 123.3 | (1.2 | ) | 0.9 | 6.0 | - | - | 56.5 | (28.9 | ) | 27.6 | ||||||||||||||||||||||||||
Amounts attributable to Brink’s:
|
||||||||||||||||||||||||||||||||||||||||
Income from continuing operations
|
$ | (58.4 | ) | 74.9 | (1.2 | ) | 0.6 | 3.8 | - | 0.8 | 20.5 | (10.8 | ) | 9.7 | ||||||||||||||||||||||||||
Diluted EPS – continuing operations
|
(1.19 | ) | 1.53 | (0.02 | ) | 0.01 | 0.08 | - | 0.02 | 0.42 | (0.22 | ) | 0.20 | |||||||||||||||||||||||||||
Second Quarter 2014
|
||||||||||||||||||||||||||||||||||||||||
Revenues:
|
||||||||||||||||||||||||||||||||||||||||
Latin America
|
$ | 336.5 | - | - | - | - | - | - | 336.5 | - | 336.5 | |||||||||||||||||||||||||||||
EMEA
|
302.9 | - | - | - | - | - | - | 302.9 | - | 302.9 | ||||||||||||||||||||||||||||||
North America
|
225.7 | - | - | - | - | - | - | 225.7 | - | 225.7 | ||||||||||||||||||||||||||||||
Asia Pacific
|
36.4 | - | - | - | - | - | - | 36.4 | - | 36.4 | ||||||||||||||||||||||||||||||
Revenues
|
$ | 901.5 | - | - | - | - | - | - | 901.5 | - | 901.5 | |||||||||||||||||||||||||||||
Operating profit:
|
||||||||||||||||||||||||||||||||||||||||
Latin America
|
$ | (1.5 | ) | 9.8 | (0.6 | ) | 0.9 | - | 0.6 | - | 9.2 | - | 9.2 | |||||||||||||||||||||||||||
EMEA
|
17.3 | - | - | - | - | 0.5 | - | 17.8 | - | 17.8 | ||||||||||||||||||||||||||||||
North America
|
5.7 | - | - | - | 0.8 | 0.3 | - | 6.8 | - | 6.8 | ||||||||||||||||||||||||||||||
Asia Pacific
|
4.6 | - | - | - | - | 0.1 | - | 4.7 | - | 4.7 | ||||||||||||||||||||||||||||||
Segment operating profit
|
26.1 | 9.8 | (0.6 | ) | 0.9 | 0.8 | 1.5 | - | 38.5 | - | 38.5 | |||||||||||||||||||||||||||||
Non-segment
|
(15.4 | ) | - | - | - | 2.8 | 2.7 | - | (9.9 | ) | - | (9.9 | ) | |||||||||||||||||||||||||||
Operating profit
|
$ | 10.7 | 9.8 | (0.6 | ) | 0.9 | 3.6 | 4.2 | - | 28.6 | - | 28.6 | ||||||||||||||||||||||||||||
Amounts attributable to Brink’s:
|
||||||||||||||||||||||||||||||||||||||||
Income from continuing operations
|
$ | 2.3 | 6.0 | (0.6 | ) | 0.8 | 2.3 | 3.4 | (2.0 | ) | 12.2 | (0.7 | ) | 11.5 | ||||||||||||||||||||||||||
Diluted EPS – continuing operations
|
0.05 | 0.12 | (0.02 | ) | 0.02 | 0.05 | 0.07 | (0.04 | ) | 0.25 | (0.01 | ) | 0.23 |
GAAP Basis
|
Expenses Related to Currency Devaluation in Venezuela
(a)
|
Gains/ Losses on Acquisi- tions and Dispositions
(b)
|
Employee Benefit Set-
tlement Losses
(c)
|
U.S. Retire- ment Plans
(d)
|
Share-based Compen-
sation Adjust-
ment
(e)
|
Adjust Income Tax Rate
(f)
|
Non-GAAP Basis
|
Adjust Venezuela to 50 Bolivars to the U.S. Dollar
(g)
|
Adjusted Non-GAAP Basis
(h)
|
|||||||||||||||||||||||||||||||
Third Quarter 2014
|
||||||||||||||||||||||||||||||||||||||||
Revenues:
|
||||||||||||||||||||||||||||||||||||||||
Latin America
|
$ | 343.2 | - | - | - | - | - | - | 343.2 | - | 343.2 | |||||||||||||||||||||||||||||
EMEA
|
303.5 | - | - | - | - | - | - | 303.5 | - | 303.5 | ||||||||||||||||||||||||||||||
North America
|
227.9 | - | - | - | - | - | - | 227.9 | - | 227.9 | ||||||||||||||||||||||||||||||
Asia Pacific
|
38.5 | - | - | - | - | - | - | 38.5 | - | 38.5 | ||||||||||||||||||||||||||||||
Revenues
|
$ | 913.1 | - | - | - | - | - | - | 913.1 | - | 913.1 | |||||||||||||||||||||||||||||
Operating profit:
|
||||||||||||||||||||||||||||||||||||||||
Latin America
|
$ | (5.1 | ) | 4.8 | (1.6 | ) | 2.4 | - | (0.3 | ) | - | 0.2 | - | 0.2 | ||||||||||||||||||||||||||
EMEA
|
15.6 | - | 15.6 | - | - | (0.2 | ) | - | 31.0 | - | 31.0 | |||||||||||||||||||||||||||||
North America
|
1.5 | - | - | - | 0.8 | (0.1 | ) | - | 2.2 | - | 2.2 | |||||||||||||||||||||||||||||
Asia Pacific
|
5.0 | - | - | - | - | - | - | 5.0 | - | 5.0 | ||||||||||||||||||||||||||||||
Segment operating profit
|
17.0 | 4.8 | 14.0 | 2.4 | 0.8 | (0.6 | ) | - | 38.4 | - | 38.4 | |||||||||||||||||||||||||||||
Non-segment
|
30.5 | - | (44.9 | ) | - | 2.9 | (1.2 | ) | - | (12.7 | ) | - | (12.7 | ) | ||||||||||||||||||||||||||
Operating profit
|
$ | 47.5 | 4.8 | (30.9 | ) | 2.4 | 3.7 | (1.8 | ) | - | 25.7 | - | 25.7 | |||||||||||||||||||||||||||
Amounts attributable to Brink’s:
|
||||||||||||||||||||||||||||||||||||||||
Income from continuing operations
|
$ | 18.7 | 2.9 | (12.0 | ) | 1.8 | 2.3 | (1.3 | ) | (2.8 | ) | 9.6 | (0.7 | ) | 8.9 | |||||||||||||||||||||||||
Diluted EPS – continuing operations
|
0.38 | 0.06 | (0.25 | ) | 0.04 | 0.05 | (0.03 | ) | (0.06 | ) | 0.19 | (0.01 | ) | 0.18 | ||||||||||||||||||||||||||
Nine Months 2014
|
||||||||||||||||||||||||||||||||||||||||
Revenues:
|
||||||||||||||||||||||||||||||||||||||||
Latin America
|
$ | 1,118.1 | - | - | - | - | - | - | 1,118.1 | (113.1 | ) | 1,005.0 | ||||||||||||||||||||||||||||
EMEA
|
904.4 | - | - | - | - | - | - | 904.4 | - | 904.4 | ||||||||||||||||||||||||||||||
North America
|
673.7 | - | - | - | - | - | - | 673.7 | - | 673.7 | ||||||||||||||||||||||||||||||
Asia Pacific
|
110.0 | - | - | - | - | - | - | 110.0 | - | 110.0 | ||||||||||||||||||||||||||||||
Revenues
|
$ | 2,806.2 | - | - | - | - | - | - | 2,806.2 | (113.1 | ) | 2,693.1 | ||||||||||||||||||||||||||||
Operating profit:
|
||||||||||||||||||||||||||||||||||||||||
Latin America
|
$ | (81.4 | ) | 137.9 | (3.4 | ) | 4.2 | - | 0.3 | - | 57.6 | (28.9 | ) | 28.7 | ||||||||||||||||||||||||||
EMEA
|
47.7 | - | 15.6 | - | - | 0.3 | - | 63.6 | - | 63.6 | ||||||||||||||||||||||||||||||
North America
|
8.3 | - | - | - | 2.8 | 0.2 | - | 11.3 | - | 11.3 | ||||||||||||||||||||||||||||||
Asia Pacific
|
14.0 | - | - | - | - | 0.1 | - | 14.1 | - | 14.1 | ||||||||||||||||||||||||||||||
Segment operating profit
|
(11.4 | ) | 137.9 | 12.2 | 4.2 | 2.8 | 0.9 | - | 146.6 | (28.9 | ) | 117.7 | ||||||||||||||||||||||||||||
Non-segment
|
(2.9 | ) | - | (44.9 | ) | - | 10.5 | 1.5 | - | (35.8 | ) | - | (35.8 | ) | ||||||||||||||||||||||||||
Operating profit
|
$ | (14.3 | ) | 137.9 | (32.7 | ) | 4.2 | 13.3 | 2.4 | - | 110.8 | (28.9 | ) | 81.9 | ||||||||||||||||||||||||||
Amounts attributable to Brink’s:
|
||||||||||||||||||||||||||||||||||||||||
Income from continuing operations
|
$ | (37.4 | ) | 83.8 | (13.8 | ) | 3.2 | 8.4 | 2.1 | (4.0 | ) | 42.3 | (12.2 | ) | 30.1 | |||||||||||||||||||||||||
Diluted EPS – continuing operations
|
(0.76 | ) | 1.71 | (0.28 | ) | 0.07 | 0.17 | 0.04 | (0.08 | ) | 0.86 | (0.25 | ) | 0.61 |
(a)
|
To eliminate the effects of the March 2014 currency devaluation in Venezuela as described in (g) below. Expenses eliminated from Non-GAAP results include first-quarter currency exchange losses totaling $122 million related to remeasured net monetary assets and $16 million in year-to-date expenses related to nonmonetary assets. Nonmonetary assets were not remeasured to a lower basis when the currency devalued. Instead, under highly inflationary accounting rules, these assets retained their higher historical bases, which excess is recognized in earnings as the asset is consumed.
|
(b)
|
To eliminate
|
·
|
$44.9 million in third-quarter divestiture gains primarily related to the sale of our equity investment in a CIT business in Peru.
|
·
|
$15.6 million in third-quarter charges related to the planned restructuring of our business in the Netherlands.
|
·
|
$3.8 million in equity earnings ($1.2 million in the first quarter, $1.3 million in the second quarter and $1.3 million in the third quarter) from our former investment in a CIT business in Peru.
|
·
|
a $0.7 million adjustment in the third quarter related to the decrease in a loss contingency assumed in the 2010 Mexico acquisition.
|
·
|
$1.1 million in restructuring charges ($0.7 million in the second quarter and $0.4 million in the third quarter) related to Latin American operations that are expected to be shut down within the next 12 months.
|
(c)
|
To eliminate employee benefit settlement losses in Mexico.
|
(d)
|
To eliminate expenses related to U.S. retirement plans.
|
(e)
|
To eliminate an accounting adjustment related to share-based compensation ($4.2 million expense in the second quarter and a $1.8 million benefit in the third quarter). The accounting adjustment revises the accounting for share-based compensation from fixed to variable fair value accounting as defined in ASC Topic 718, Stock Compensation.
|
(f)
|
To adjust effective income tax rate in the interim period to be equal to the midpoint of the estimated range of the full-year Non-GAAP effective income tax rate. The midpoint of the estimated range of the full-year Non-GAAP effective tax rate for 2014 is 38%.
|
(g)
|
Effective March 24, 2014, Brink’s began remeasuring its Venezuelan operating results using currency exchange rates reported under a newly established currency exchange process in Venezuela (the “SICAD II process”). The rate published for this process has averaged approximately 50 since opening on March 24, 2014. This adjustment reflects a hypothetical remeasurement of Brink’s Venezuela’s first quarter 2014 revenue and operating results using a rate of 50 bolivars to the U.S. dollar, which approximates the rate observed in the new SICAD II process in March 2014.
|
(h)
|
Adjusted Non-GAAP results are equal to Non-GAAP results further adjusted for Venezuelan results at 50 bolivars per U.S. dollar.
|
GAAP Basis
|
Gains/ Losses on Acquisitions and Dispositions
(a)
|
Expenses Related to Currency Devaluation in Venezuela
(b)
|
Employee Benefit Settlement Losses
(c)
|
U.S. Retirement Plans
(d)
|
Adjust Income Tax Rate
(e)
|
Non-GAAP Basis
|
Adjust Venezuela to 50 Bolivars to the U.S. Dollar
(f)
|
Adjusted Non-GAAP Basis
(g)
|
||||||||||||||||||||||||||||
First Quarter 2013
|
||||||||||||||||||||||||||||||||||||
Revenues:
|
||||||||||||||||||||||||||||||||||||
Latin America
|
$ | 412.9 | - | - | - | - | - | 412.9 | (84.5 | ) | 328.4 | |||||||||||||||||||||||||
EMEA
|
277.8 | - | - | - | - | - | 277.8 | - | 277.8 | |||||||||||||||||||||||||||
North America
|
223.2 | - | - | - | - | - | 223.2 | - | 223.2 | |||||||||||||||||||||||||||
Asia Pacific
|
36.6 | - | - | - | - | - | 36.6 | - | 36.6 | |||||||||||||||||||||||||||
Revenues
|
$ | 950.5 | - | - | - | - | - | 950.5 | (84.5 | ) | 866.0 | |||||||||||||||||||||||||
Operating profit:
|
||||||||||||||||||||||||||||||||||||
Latin America
|
$ | 23.4 | (1.6 | ) | 13.9 | 0.3 | - | - | 36.0 | (18.0 | ) | 18.0 | ||||||||||||||||||||||||
EMEA
|
8.6 | - | - | - | - | - | 8.6 | - | 8.6 | |||||||||||||||||||||||||||
North America
|
(2.0 | ) | - | - | - | 2.9 | - | 0.9 | - | 0.9 | ||||||||||||||||||||||||||
Asia Pacific
|
4.3 | - | - | - | - | - | 4.3 | - | 4.3 | |||||||||||||||||||||||||||
Segment operating profit
|
34.3 | (1.6 | ) | 13.9 | 0.3 | 2.9 | - | 49.8 | (18.0 | ) | 31.8 | |||||||||||||||||||||||||
Non-segment
|
(17.0 | ) | (1.1 | ) | - | - | 10.5 | - | (7.6 | ) | - | (7.6 | ) | |||||||||||||||||||||||
Operating profit
|
$ | 17.3 | (2.7 | ) | 13.9 | 0.3 | 13.4 | - | 42.2 | (18.0 | ) | 24.2 | ||||||||||||||||||||||||
Amounts attributable to Brink’s:
|
||||||||||||||||||||||||||||||||||||
Income from continuing operations
|
$ | 2.9 | (2.7 | ) | 8.7 | 0.2 | 8.2 | 0.2 | 17.5 | (8.7 | ) | 8.8 | ||||||||||||||||||||||||
Diluted EPS – continuing operations
|
0.06 | (0.05 | ) | 0.18 | - | 0.17 | - | 0.36 | (0.18 | ) | 0.18 | |||||||||||||||||||||||||
Second Quarter 2013
|
||||||||||||||||||||||||||||||||||||
Revenues:
|
||||||||||||||||||||||||||||||||||||
Latin America
|
$ | 413.6 | - | - | - | - | - | 413.6 | (83.9 | ) | 329.7 | |||||||||||||||||||||||||
EMEA
|
293.4 | - | - | - | - | - | 293.4 | - | 293.4 | |||||||||||||||||||||||||||
North America
|
226.3 | - | - | - | - | - | 226.3 | - | 226.3 | |||||||||||||||||||||||||||
Asia Pacific
|
36.6 | - | - | - | - | - | 36.6 | - | 36.6 | |||||||||||||||||||||||||||
Revenues
|
$ | 969.9 | - | - | - | - | - | 969.9 | (83.9 | ) | 886.0 | |||||||||||||||||||||||||
Operating profit:
|
||||||||||||||||||||||||||||||||||||
Latin America
|
$ | 24.4 | (1.3 | ) | 0.2 | 0.5 | - | - | 23.8 | (8.6 | ) | 15.2 | ||||||||||||||||||||||||
EMEA
|
18.7 | - | - | - | - | - | 18.7 | - | 18.7 | |||||||||||||||||||||||||||
North America
|
6.3 | - | - | - | 2.9 | - | 9.2 | - | 9.2 | |||||||||||||||||||||||||||
Asia Pacific
|
5.0 | - | - | - | - | - | 5.0 | - | 5.0 | |||||||||||||||||||||||||||
Segment operating profit
|
54.4 | (1.3 | ) | 0.2 | 0.5 | 2.9 | - | 56.7 | (8.6 | ) | 48.1 | |||||||||||||||||||||||||
Non-segment
|
(21.6 | ) | - | - | - | 10.2 | - | (11.4 | ) | - | (11.4 | ) | ||||||||||||||||||||||||
Operating profit
|
$ | 32.8 | (1.3 | ) | 0.2 | 0.5 | 13.1 | - | 45.3 | (8.6 | ) | 36.7 | ||||||||||||||||||||||||
Amounts attributable to Brink’s:
|
||||||||||||||||||||||||||||||||||||
Income from continuing operations
|
$ | 13.2 | (1.3 | ) | 0.1 | 0.4 | 7.7 | 1.6 | 21.7 | (5.9 | ) | 15.8 | ||||||||||||||||||||||||
Diluted EPS – continuing operations
|
0.27 | (0.03 | ) | - | 0.01 | 0.16 | 0.03 | 0.44 | (0.12 | ) | 0.32 |
GAAP Basis
|
Gains/ Losses on Acquisitions and Dispositions
(a)
|
Expenses Related to Currency Devaluation in Venezuela
(b)
|
Employee Benefit Settlement Losses
(c)
|
U.S. Retirement Plans
(d)
|
Adjust Income Tax Rate
(e)
|
Non-GAAP Basis
|
Adjust Venezuela to 50 Bolivars to the U.S. Dollar
(f)
|
Adjusted Non-GAAP Basis
(g)
|
||||||||||||||||||||||||||||
Third Quarter 2013
|
||||||||||||||||||||||||||||||||||||
Revenues:
|
||||||||||||||||||||||||||||||||||||
Latin America
|
$ | 423.8 | - | - | - | - | - | 423.8 | (100.1 | ) | 323.7 | |||||||||||||||||||||||||
EMEA
|
301.2 | - | - | - | - | - | 301.2 | - | 301.2 | |||||||||||||||||||||||||||
North America
|
222.5 | - | - | - | - | - | 222.5 | - | 222.5 | |||||||||||||||||||||||||||
Asia Pacific
|
34.9 | - | - | - | - | - | 34.9 | - | 34.9 | |||||||||||||||||||||||||||
Revenues
|
$ | 982.4 | - | - | - | - | - | 982.4 | (100.1 | ) | 882.3 | |||||||||||||||||||||||||
Operating profit:
|
||||||||||||||||||||||||||||||||||||
Latin America
|
$ | 42.8 | (1.5 | ) | 0.2 | 0.8 | - | - | 42.3 | (20.7 | ) | 21.6 | ||||||||||||||||||||||||
EMEA
|
32.1 | - | - | - | - | - | 32.1 | - | 32.1 | |||||||||||||||||||||||||||
North America
|
0.2 | - | - | - | 2.9 | - | 3.1 | - | 3.1 | |||||||||||||||||||||||||||
Asia Pacific
|
4.8 | - | - | - | - | - | 4.8 | - | 4.8 | |||||||||||||||||||||||||||
Segment operating profit
|
79.9 | (1.5 | ) | 0.2 | 0.8 | 2.9 | - | 82.3 | (20.7 | ) | 61.6 | |||||||||||||||||||||||||
Non-segment
|
(20.7 | ) | (0.9 | ) | - | - | 10.3 | - | (11.3 | ) | - | (11.3 | ) | |||||||||||||||||||||||
Operating profit
|
$ | 59.2 | (2.4 | ) | 0.2 | 0.8 | 13.2 | - | 71.0 | (20.7 | ) | 50.3 | ||||||||||||||||||||||||
Amounts attributable to Brink’s:
|
||||||||||||||||||||||||||||||||||||
Income from continuing operations
|
$ | 29.8 | (2.4 | ) | 0.1 | 0.6 | 7.7 | (1.9 | ) | 33.9 | (11.6 | ) | 22.3 | |||||||||||||||||||||||
Diluted EPS – continuing operations
|
0.61 | (0.05 | ) | - | 0.01 | 0.16 | (0.04 | ) | 0.69 | (0.24 | ) | 0.45 | ||||||||||||||||||||||||
Nine Months 2013
|
||||||||||||||||||||||||||||||||||||
Revenues:
|
||||||||||||||||||||||||||||||||||||
Latin America
|
$ | 1,250.3 | - | - | - | - | - | 1,250.3 | (268.5 | ) | 981.8 | |||||||||||||||||||||||||
EMEA
|
872.4 | - | - | - | - | - | 872.4 | - | 872.4 | |||||||||||||||||||||||||||
North America
|
672.0 | - | - | - | - | - | 672.0 | - | 672.0 | |||||||||||||||||||||||||||
Asia Pacific
|
108.1 | - | - | - | - | - | 108.1 | - | 108.1 | |||||||||||||||||||||||||||
Revenues
|
$ | 2,902.8 | - | - | - | - | - | 2,902.8 | (268.5 | ) | 2,634.3 | |||||||||||||||||||||||||
Operating profit:
|
||||||||||||||||||||||||||||||||||||
Latin America
|
$ | 90.6 | (4.4 | ) | 14.3 | 1.6 | - | - | 102.1 | (47.3 | ) | 54.8 | ||||||||||||||||||||||||
EMEA
|
59.4 | - | - | - | - | - | 59.4 | - | 59.4 | |||||||||||||||||||||||||||
North America
|
4.5 | - | - | - | 8.7 | - | 13.2 | - | 13.2 | |||||||||||||||||||||||||||
Asia Pacific
|
14.1 | - | - | - | - | - | 14.1 | - | 14.1 | |||||||||||||||||||||||||||
Segment operating profit
|
168.6 | (4.4 | ) | 14.3 | 1.6 | 8.7 | - | 188.8 | (47.3 | ) | 141.5 | |||||||||||||||||||||||||
Non-segment
|
(59.3 | ) | (2.0 | ) | - | - | 31.0 | - | (30.3 | ) | - | (30.3 | ) | |||||||||||||||||||||||
Operating profit
|
$ | 109.3 | (6.4 | ) | 14.3 | 1.6 | 39.7 | - | 158.5 | (47.3 | ) | 111.2 | ||||||||||||||||||||||||
Amounts attributable to Brink’s:
|
||||||||||||||||||||||||||||||||||||
Income from continuing operations
|
$ | 45.9 | (6.4 | ) | 8.9 | 1.2 | 23.6 | (0.1 | ) | 73.1 | (26.2 | ) | 46.9 | |||||||||||||||||||||||
Diluted EPS – continuing operations
|
0.94 | (0.13 | ) | 0.18 | 0.02 | 0.48 | - | 1.49 | (0.54 | ) | 0.96 |
GAAP Basis
|
Gains/ Losses on Acquisitions and Dispositions
(a)
|
Expenses Related to Currency Devaluation in Venezuela
(b)
|
Employee Benefit Settlement Losses
(c)
|
U.S. Retirement Plans
(d)
|
Adjust Income Tax Rate
(e)
|
Non-GAAP Basis
|
Adjust Venezuela to 50 Bolivars to the U.S. Dollar
(f)
|
Adjusted Non-GAAP Basis
(g)
|
||||||||||||||||||||||||||||
Fourth Quarter 2013
|
||||||||||||||||||||||||||||||||||||
Revenues:
|
||||||||||||||||||||||||||||||||||||
Latin America
|
$ | 470.4 | - | - | - | - | - | 470.4 | (123.0 | ) | 347.4 | |||||||||||||||||||||||||
EMEA
|
305.9 | - | - | - | - | - | 305.9 | - | 305.9 | |||||||||||||||||||||||||||
North America
|
226.4 | - | - | - | - | - | 226.4 | - | 226.4 | |||||||||||||||||||||||||||
Asia Pacific
|
36.7 | - | - | - | - | - | 36.7 | - | 36.7 | |||||||||||||||||||||||||||
Revenues
|
$ | 1,039.4 | - | - | - | - | - | 1,039.4 | (123.0 | ) | 916.4 | |||||||||||||||||||||||||
Operating profit:
|
||||||||||||||||||||||||||||||||||||
Latin America
|
$ | 59.3 | 0.5 | 0.3 | 0.9 | - | - | 61.0 | (21.6 | ) | 39.4 | |||||||||||||||||||||||||
EMEA
|
22.1 | - | - | - | - | - | 22.1 | - | 22.1 | |||||||||||||||||||||||||||
North America
|
0.2 | - | - | - | 2.9 | - | 3.1 | - | 3.1 | |||||||||||||||||||||||||||
Asia Pacific
|
2.6 | 0.9 | - | - | - | - | 3.5 | - | 3.5 | |||||||||||||||||||||||||||
Segment operating profit
|
84.2 | 1.4 | 0.3 | 0.9 | 2.9 | - | 89.7 | (21.6 | ) | 68.1 | ||||||||||||||||||||||||||
Non-segment
|
(21.8 | ) | (0.8 | ) | - | - | 10.3 | - | (12.3 | ) | - | (12.3 | ) | |||||||||||||||||||||||
Operating profit
|
$ | 62.4 | 0.6 | 0.3 | 0.9 | 13.2 | - | 77.4 | (21.6 | ) | 55.8 | |||||||||||||||||||||||||
Amounts attributable to Brink’s:
|
||||||||||||||||||||||||||||||||||||
Income from continuing operations
|
$ | 26.0 | 2.3 | 0.2 | 0.6 | 8.2 | 0.1 | 37.4 | (9.9 | ) | 27.5 | |||||||||||||||||||||||||
Diluted EPS – continuing operations
|
0.53 | 0.05 | - | 0.01 | 0.17 | - | 0.76 | (0.20 | ) | 0.56 | ||||||||||||||||||||||||||
Full Year 2013
|
||||||||||||||||||||||||||||||||||||
Revenues:
|
||||||||||||||||||||||||||||||||||||
Latin America
|
$ | 1,720.7 | - | - | - | - | - | 1,720.7 | (391.5 | ) | 1,329.2 | |||||||||||||||||||||||||
EMEA
|
1,178.3 | - | - | - | - | - | 1,178.3 | - | 1,178.3 | |||||||||||||||||||||||||||
North America
|
898.4 | - | - | - | - | - | 898.4 | - | 898.4 | |||||||||||||||||||||||||||
Asia Pacific
|
144.8 | - | - | - | - | - | 144.8 | - | 144.8 | |||||||||||||||||||||||||||
Revenues
|
$ | 3,942.2 | - | - | - | - | - | 3,942.2 | (391.5 | ) | 3,550.7 | |||||||||||||||||||||||||
Operating profit:
|
||||||||||||||||||||||||||||||||||||
Latin America
|
$ | 149.9 | (3.9 | ) | 14.6 | 2.5 | - | - | 163.1 | (68.9 | ) | 94.2 | ||||||||||||||||||||||||
EMEA
|
81.5 | - | - | - | - | - | 81.5 | - | 81.5 | |||||||||||||||||||||||||||
North America
|
4.7 | - | - | - | 11.6 | - | 16.3 | - | 16.3 | |||||||||||||||||||||||||||
Asia Pacific
|
16.7 | 0.9 | - | - | - | - | 17.6 | - | 17.6 | |||||||||||||||||||||||||||
Segment operating profit
|
252.8 | (3.0 | ) | 14.6 | 2.5 | 11.6 | - | 278.5 | (68.9 | ) | 209.6 | |||||||||||||||||||||||||
Non-segment
|
(81.1 | ) | (2.8 | ) | - | - | 41.3 | - | (42.6 | ) | - | (42.6 | ) | |||||||||||||||||||||||
Operating profit
|
$ | 171.7 | (5.8 | ) | 14.6 | 2.5 | 52.9 | - | 235.9 | (68.9 | ) | 167.0 | ||||||||||||||||||||||||
Amounts attributable to Brink’s:
|
||||||||||||||||||||||||||||||||||||
Income from continuing operations
|
$ | 71.9 | (4.1 | ) | 9.1 | 1.8 | 31.8 | - | 110.5 | (36.1 | ) | 74.4 | ||||||||||||||||||||||||
Diluted EPS – continuing operations
|
1.47 | (0.08 | ) | 0.18 | 0.04 | 0.65 | - | 2.26 | (0.74 | ) | 1.52 |
(a)
|
To eliminate
|
·
|
$6.1 million in equity earnings ($1.6 million in the first quarter, $1.3 million in the second quarter, $1.5 million in the third quarter, and $1.7 million in the fourth quarter) from our former investment in a CIT business in Peru.
|
·
|
a $1.1 million adjustment in the first quarter of 2013 to the amount of gain recognized on a 2010 business acquisition in Mexico as a result of a favorable adjustment to the purchase price received in the first quarter of 2013.
|
·
|
$1.7 million of favorable adjustments in the third and fourth quarters of 2013 primarily related to the January 2013 acquisition of Rede Trel in Brazil.
|
·
|
$3.1 million in adjustments in the fourth quarter of 2013 related to the increase in a loss contingency assumed in the 2010 Mexico acquisition and the impairment of an intangible asset acquired in the 2009 India acquisition.
|
·
|
a $2.6 million unfavorable tax adjustment related to the Belgium disposition.
|
(b)
|
To eliminate the effects of the February 2013 currency devaluation in Venezuela in which the official exchange rate in Venezuela declined 16% from 5.3 to 6.3 bolivars to the U.S. dollar. Expenses eliminated from Non-GAAP results include first quarter currency exchange losses totaling $13.4 million related to remeasured net monetary assets as well as expenses related to nonmonetary assets ($0.5 million in the first quarter, $0.2 million in the second quarter, $0.2 million in the third quarter and $0.3 million in the fourth quarter). Nonmonetary assets were not remeasured to a lower basis when the currency devalued. Instead, under highly inflationary accounting rules, these assets retained their higher historical bases, which excess is recognized in earnings as the asset is consumed.
|
(c)
|
To eliminate employee benefit settlement losses in Mexico.
|
(d)
|
To eliminate expenses related to U.S. retirement plans.
|
(e)
|
To adjust effective income tax rate in the interim period to be equal to the full-year non-GAAP effective income tax rate. The full-year non-GAAP effective tax rate for 2013 was 34.1%.
|
(f)
|
Effective March 24, 2014, Brink’s began remeasuring its Venezuelan operating results using currency exchange rates reported under a newly established currency exchange process in Venezuela (the “SICAD II process”). This adjustment reflects a hypothetical remeasurement of Brink’s Venezuela’s 2013 revenue and operating results using a rate of 50 bolivars to the U.S. dollar, which approximates the rate observed in the new SICAD II process in March 2014. Losses that would have been recognized in 2013 had Brink’s used a rate of 50 bolivars to the U.S. dollar to remeasure its net monetary assets have been excluded from this adjustment and the Adjusted Non-GAAP results.
|
(g)
|
Adjusted Non-GAAP results are equal to Non-GAAP results further adjusted for Venezuelan results at 50 bolivars per U.S. dollar.
|
NON-GAAP CASH FLOWS FROM OPERATING ACTIVITIES – RECONCILED TO U.S. GAAP
|
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Nine Months
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2014
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2013
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Cash flows from operating activities – GAAP
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$ | 72.5 | $ | 104.4 | ||||
Decrease (increase) in certain customer obligations(a)
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(15.5 | ) | 4.9 | |||||
Cash outflows (inflows) related to discontinued operations
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(0.9 | ) | 3.6 | |||||
Cash flows from operating activities – Non-GAAP (reduced by pension contributions)
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56.1 | 112.9 | ||||||
Contributions to primary U.S. pension plan
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87.2 | 13.0 | ||||||
Cash flows from operating activities – Non-GAAP (before pension contributions)
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$ | 143.3 | $ | 125.9 |
(a)
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To eliminate the change in the balance of customer obligations related to cash received and processed in certain of our Cash Management Services operations. The title to this cash transfers to us for a short period of time. The cash is generally credited to customers’ accounts the following day and we do not consider it as available for general corporate purposes in the management of our liquidity and capital resources.
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1 Year Brinks Chart |
1 Month Brinks Chart |
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