Brinks Company (the) · NYSE:BCO
Brinks Company (the) — Q1 2017 Earnings Presentation
23 slides from Brinks Company (the)'s earnings presentation, Apr 26, 2017
Slide 1: First Quarter 2017 Secure Logistics. Worldwide.
S ECU RE LOG IST ICS. WORLDW ID E. First Quarter A p ri l 26 , 2017 Exhibit 99.2
Slide 2: Safe Harbor Statement and Non-GAAP Results
Safe Harbor Statement and Non-GAAP Results These materials contain 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 in
Slide 3: CEO Overview – Doug Pertz
CEO Overview Doug Pertz
Slide 4: CEO Overview: First-Quarter Highlights
CEO Overview 4 FIRST-QUARTER HIGHLIGHTS • Strong improvement in revenue, operating profit, earnings and cash flow • Revenue and profits up in all geographic segments • Continued improvement in U.S. and Mexico • Full-year earnings non-GAAP guidance raised to $2.55 - $2.65 per share on lower tax rate
Slide 5: First Quarter 2017 Non-GAAP Results: A Strong Start to 2017
First Quarter 2017 Non-GAAP Results 5 A Strong Start to 2017 ($ in millions) $689 $740 2016 2017 REVENUE ($ in millions) + 7% Organic Growth $33 $53 2016 2017 4.7% Margin OPERATING PROFIT 7.1% Margin + 62% ADJUSTED EBITDA $62 $83 0 10 20 30 40 50 60 70 80 90 100 2016 2017 9.0% Margin 11.2% Margin ($
Slide 6: 2017 Non-GAAP Guidance
2017 Non-GAAP Guidance 6 Full-Year EPS Guidance Raised $2,908 ~$3,000 2016 2017 REVENUE ($ in millions) +3% Growth Guidance ($ in millions) $212 $235-$245 2016 2017 7.3% Margin OPERATING PROFIT 7.8% – 8.2% Margin ($ in millions) Guidance +~13% Growth ADJUSTED EBITDA $333 $370-$380 0 50 100 150 200 2
Slide 7: Our Strategy
Our Strategy Accelerate Profitable Growth (APG) Close the Gap — Operational Excellence (CTG) Introduce Differentiated Services (IDS) ACCELERATE PROFITABLE GROWTH • Grow high-value services • Grow account share with large FI customers • Increase focus on smaller FIs • Penetrate large, unvended retail
Slide 8: Building on our Base with 4 Breakthrough Initiatives in the U.S.
8 10%+ 2019 OP MARGIN TARGET = Fleet Improvements One-Person Vehicle Labor Network Optimization Sales Growth and CompuSafe® Base Margin 2% to 3% Branch Standardization Route Optimization Culture — Customer-driven, Lean + Building on our Base with 4 Breakthrough Initiatives in the U.S.
Slide 9: 2019 Non-GAAP Targets
2019 Non-GAAP Targets 9 2016 Currency Adjusted 2019 Target REVENUE ($ in millions) ~5% CAGR $2,828 $3,275 1 2016 Currency Adjusted 2019 Target OPERATING PROFIT ($ in millions) ~10% Margin $325 $197 7.0% Margin ~18% CAGR ~65% Growth 1 2016 Currency Adjusted 2019 Target ADJUSTED EBITDA ($ in millions)
Slide 10: Ron Domanico – Financial Review
Ron Domanico Financial Review
Slide 11: Non-GAAP Revenue: First Quarter 2017 vs 2016
($ Millions) 1% 7% Organic Adjusted 2016 RevenueCurrency Acq/Disp 2016 Revenue 2017 Revenue (1%)% Change Note: See detailed reconciliations of non-GAAP to GAAP results included in the First Quarter 2017 Earnings Release available in the Quarterly Results section of the Brink’s website: www.brinks.co
Slide 12: Non-GAAP Operating Profit: First Quarter 2017 vs 2016
($ Millions) Note: See detailed reconciliations of non-GAAP to GAAP results included in the First Quarter 2017 Earnings Release available in the Quarterly Results section of the Brink’s website: www.brinks.com. Amounts may not add due to rounding. 4.7% 7.1% Organic Adjusted 2016 Op ProfitCurrency Ac
Slide 13: Non-GAAP Results – First Quarter
$53 $29 $83 $33 $21 ($6) ($17) ($1) ($ Millions, except EPS) EPS 2017 $0.57 2016 $0.31 Net Interest & Other TaxesOp Profit Income from Continuing Ops D&A Minority Interest Interest Exp. &Taxes Adjusted EBITDA $1 ($7)$20 $14 $1_ $7 $21 vs 2016 Note: See detailed reconciliations of non-GAAP to GAAP re
Slide 14: Capital Expenditures 2015–2017
2015 Actual 2016 Actual 2017 Outlook Returns — Capital Expenditures 14 ($ in millions) CAPITAL EXPENDITURES 2015 – 2017 CompuSafe® Facility Equipment / Other IT Armoured Vehicle D&A $132 $127 ~$145 Reinvestment Ratio1 0.9 1.1 TBD $124 Total Before CompuSafe® $137 $180 Total Before CompuSafe® CompuSa
Slide 15: Debt and Leverage
($ Millions) Leverage Ratio* 0.9 0.7 0.9 Note: No cash payments expected until 2021 for primary U.S. pension plan and 2027 for UMWA, based on 12/31/16 actuarial assumptions Cash Net Debt Note: See reconciliation to GAAP results in Appendix Debt Adjusted EBITDA and Financial Leverage * Net Debt divid
Slide 16: Adjusted EBITDA and Multiple vs Peers
$154 $232 $125 $121 ($ Millions, except share price) $167 Adjusted EBITDA Multiple Trailing 12 Months Adjusted EBITDA Multiple $138 9.6%Margin 12.0% Multiple 7.1x 8.5x *Trailing 12 months as of 12/31/16 Source: Publicly available peer financial information Share Price $33.59 $53.45 Adj. EBITDA Brink
Slide 17: Conclusion
Conclusion
Slide 18: Continued Improvement Expected in 2017 & Beyond
$163 $212 $235 - $245 $325 5.5% 7.3% 7.8% - 8.2% 10% -20 -15 -10 -5 0 5 10 0 50 100 150 200 250 300 350 400 2015 2016 2017 2019 Continued Improvement Expected in 2017 & Beyond Non-GAAP Operating Profit Margin 2017 Non-GAAP Outlook • Revenue $3 billion (6% organic growth) • Operating profit $235- $24
Slide 19: Why Brink's?
+ + Why Brink’s? Brink’s has the right leadership, the right strategy and the financial strength to drive superior shareholder returns. Market Strength • Premier global brand with unmatched footprint and customers in 100+ countries • Strong market position People • New leadership with proven track r
Slide 20: Questions?
Questions?
Slide 21: Appendix
Appendix
Slide 22: Non-GAAP Reconciliation — Net Debt
Non-GAAP Reconciliation — Net Debt The Brink’s Company and subsidiaries Non-GAAP Reconciliations — Net Debt (Unaudited) (In millions) a) Restricted cash borrowings are related to cash borrowed under lending arrangements used in the process of managing customer cash supply chains, which is currently
Slide 23: Non-GAAP Reconciliation — Other
Non-GAAP Reconciliation — Other The Brink’s Company and subsidiaries Non-GAAP Reconciliations — Other Amounts (Unaudited) (In millions) Amounts Used to Calculate Reinvestment Ratio Property and Equipment Acquired During the Period Full-Year 2015 Full Year 2016 Capital expenditures — GAAP 101.1 112.2