Brink’s Delivers Strong Fourth-Quarter and Full-Year Revenue and EPS Growth

The Brink’s Company

Full-year revenue growth of 8%, including highest organic growth in over a decade
Third consecutive quarter of double-digit organic revenue and operating profit growth
Management expects continued strong revenue and profit growth in 2023

4Q Highlights:

• Revenue up 8%, reflecting 12% organic growth

• Operating profit: GAAP $143M, non-GAAP $187M

• Operating margin: GAAP 12.0%, non-GAAP 15.7%

• GAAP net income down 9% to $45M, adjusted EBITDA up 18% to $247M

• EPS: GAAP up 4% to $1.01 vs $.97; non-GAAP up 25% to $2.10 vs $1.68
  

Full-Year Highlights:

• Revenue up 8%, reflecting 12% organic growth

• Operating profit: GAAP $361M, non-GAAP $550M

• Operating margin: GAAP 8.0%, non-GAAP 12.1%

• GAAP net income up 62% to $171M, adjusted EBITDA up 15% to $788M

• EPS: GAAP up 76% to $3.63 vs $2.06; non-GAAP up 26% to $5.99 vs $4.75
  

Full-Year 2023 Non-GAAP Outlook:

• Revenue between $4,800M and $4,950M; organic growth between 7-11%

• Non-GAAP operating profit between $615M and $665M; ~100 basis points margin expansion

• Adjusted EBITDA between $855M and $905M

• Non-GAAP EPS between $6.30 and $7.00 per share

• Free Cash Flow between $325M and $375M; conversion approximately 40% of Adj. EBITDA
  

^{Notes: Highest organic growth in over a decade based on total company organic revenue growth adjusted to exclude Venezuela prior to the 2018 deconsolidation. The 2023 Non-GAAP outlook amounts cannot be reconciled to GAAP without unreasonable effort - see explanation on page 3.}

RICHMOND, Va., Feb. 22, 2023 (GLOBE NEWSWIRE) -- The Brink’s Company (NYSE:BCO), a leading global provider of cash and valuables management, digital retail solutions, and ATM managed services, today announced fourth-quarter and full-year results.

Mark Eubanks, president and CEO, said: “Our fourth quarter non-GAAP results reflect a strong finish to an outstanding year and provide solid momentum as we begin 2023. For the full year, we grew organic revenue 12% and organic operating profit 23%, delivering a total company operating profit margin of 12.1%, the highest operating profit margin in recent history. Revenue growth included 25% organic growth in digital retail solutions and 50% organic growth in ATM managed services – key strategic focus areas for Brink's. Operating profit growth included improved cost productivity, strong pricing discipline in an inflationary environment, growth in high-margin services and the early benefits of our late 2022 global restructuring efforts. Operating margin improvement was especially encouraging in North America, with the fourth-quarter over 15% for the first time in the history of the segment.”

“Building from our strong foundation and 2022 operating momentum, we are excited about our growth and profitability potential in 2023 and beyond. We are focused on continuing to raise the bar on our customer experience while enhancing productivity in the business and driving additional growth through innovation in digital retail solutions and ATM managed services. In 2023, we expect organic revenue growth between 7 and 11%, approximately 100 basis-points of operating profit margin expansion, Adjusted EBITDA between $855 and $905 million, EPS between $6.30 and $7.00, and free cash flow conversion of approximately 40%. This guidance reflects the next step forward in our commitment to provide comprehensive value-added solutions for our customers.” (See page 3 for a summary of 2023 guidance.)

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

(In millions, except for per share amounts)	Fourth-Quarter 2022 (vs. 2021)
	GAAP				Change		Non-GAAP				Change		Constant Currency Change(b)		Organic Change
Revenue	$	1,191			8%		$	1,191			8%		16%		12%
Operating Profit	$	143			(2%)		$	187			22%		34%		30%
Operating Margin		12.0	%		(120 bps)			15.7	%		170 bps		220 bps
Net Income / Adjusted EBITDA(a)	$	45			(9)%		$	247			18%		28%
EPS	$	1.01			4%		$	2.10			25%		42%

(In millions, except for per share amounts)	Full Year 2022 (vs. 2021)
	GAAP				Change		Non-GAAP				Change		Constant Currency Change(b)		Organic Change
Revenue	$	4,536			8%		$	4,536			8%		14%		12%
Operating Profit	$	361			2%		$	550			17%		26%		23%
Operating Margin		8.0	%		(40 bps)			12.1	%		90 bps		120 bps
Net Income / Adjusted EBITDA(a)	$	171			62%		$	788			15%		23%
EPS	$	3.63			76%		$	5.99			26%		40%

^{(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 2022 non-GAAP results at 2021 exchange rates.}

2023 Guidance (Unaudited)
(In millions, except for percentages and per share amounts)

The 2023 Non-GAAP outlook amounts cannot be reconciled to GAAP without unreasonable effort, as we are unable to accurately forecast certain amounts that are necessary for reconciliation, including the impact of highly inflationary accounting on our Argentina operations in 2023 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 2023. The 2023 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.

		2023 Non-GAAP Outlook(a)
Revenues		4,800 – 4,950
Operating profit		615 – 665
EPS from continuing operations attributable to Brink's		6.30 – 7.00
Operating profit margin		12.8 – 13.4%
Free cash flow before dividends		325 – 375
Adjusted EBITDA		855 – 905
Adjusted EBITDA margin		17.8 – 18.3%

Conference Call
Brink’s will host a conference call on February 22 at 8:30 a.m. ET to review fourth-quarter and full year results. Interested parties can listen by calling 888-349-0094 (in the U.S.) or 412-902-0124 (international). Participants can pre-register at (https://dpregister.com/sreg/10174850/f598921aec) 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 1, 2023 at 877-344-7529 (in the U.S.) or 412-317-0088 (international). The conference replay access code is 7612755. 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) (Unaudited)

Selected Items - Condensed Consolidated Balance Sheets

	December 31, 2021			December 31, 2022
Assets
Cash and cash equivalents	$	710.3		972.0
Restricted cash		376.4		438.5
Accounts receivable, net		701.8		862.2
Right-of-use assets, net		299.1		314.5
Property and equipment, net		865.6		935.3
Goodwill and intangibles		1,902.9		1,986.4
Deferred income taxes		239.4		246.2
Other		471.2		610.9
Total assets	$	5,566.7		6,366.0
Liabilities and Equity
Accounts payable		211.2		296.5
Debt		2,966.7		3,402.8
Retirement benefits		541.5		305.5
Accrued liabilities		877.3		1,019.4
Lease liabilities		241.8		249.9
Other		475.6		521.7
Total liabilities		5,314.1		5,795.8
Equity		252.6		570.2
Total liabilities and equity	$	5,566.7		6,366.0

Selected Items - Condensed Consolidated Statements of Cash Flows

	Twelve Months Ended December 31,
		2021			2022
Net cash provided by operating activities	$	478.0			479.9
Net cash used by investing activities		(454.7	)		(331.2	)
Net cash provided by financing activities		171.3			245.2
Effect of exchange rate changes on cash		(50.8	)		(70.1	)
Cash, cash equivalents and restricted cash:
Increase		143.8			323.8
Balance at beginning of period		942.9			1,086.7
Balance at end of period	$	1,086.7			1,410.5
Supplemental Cash Flow Information
Capital expenditures	$	(167.9	)		(182.6	)
Acquisitions		(313.2	)		(173.9	)
Depreciation and amortization		239.5			245.8
Cash paid for income taxes, net		(83.8	)		(127.8	)

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

Fourth-Quarter 2022 vs. 2021

GAAP					Organic			Acquisitions /									% Change
	4Q'21				Change			Dispositions(a)			Currency(b)			4Q'22			Total			Organic
Revenues:
North America	$	373			40			3			(2	)		413			11			11
Latin America		294			47			—			(29	)		312			6			16
Europe		234			20			40			(31	)		263			12			8
Rest of World		197			23			—			(17	)		203			3			12
Segment revenues(g)	$	1,098			129			44			(80	)		1,191			8			12
Revenues - GAAP	$	1,098			129			44			(80	)		1,191			8			12
Operating profit:
North America	$	50			12			1			—			62			25			24
Latin America		77			18			—			(12	)		84			9			24
Europe		32			1			6			(4	)		35			9			4
Rest of World		37			9			—			(3	)		43			15			24
Segment operating profit		197			40			7			(19	)		224			14			20
Corporate(c)		(43	)		6			—			—			(37	)		(14	)		(13	)
Operating profit - non-GAAP	$	154			46			7			(19	)		187			22			30
Other items not allocated to segments(d)		(8	)		(21	)		(5	)		(11	)		(45	)		unfav			unfav
Operating profit (loss) - GAAP	$	146			25			2			(30	)		143			(2	)		17
GAAP interest expense		(29	)											(44	)		50
GAAP interest and other income (expense)		(5	)											(5	)		(13	)
GAAP provision for income taxes		61												45			(27	)
GAAP noncontrolling interests		2												2			(17	)
GAAP income from continuing operations(f)		47												48			1
GAAP EPS(f)	$	0.97												1.01			4
GAAP weighted-average diluted shares		49.1												47.5			(3	)

Non-GAAP(e)					Organic		Acquisitions /								% Change
	4Q'21				Change		Dispositions(a)		Currency(b)			4Q'22			Total			Organic
Segment revenues - GAAP/non-GAAP	$	1,098			129		44		(80	)		1,191			8			12
Non-GAAP operating profit		154			46		7		(19	)		187			22			30
Non-GAAP interest expense		(29	)									(44	)		50
Non-GAAP interest and other income (expense)		4										4			(20	)
Non-GAAP provision for income taxes		43										45			3
Non-GAAP noncontrolling interests		3										3			(6	)
Non-GAAP income from continuing operations(f)		83										100			21
Non-GAAP EPS(f)	$	1.68										2.10			25
Non-GAAP weighted-average diluted shares		49.1										47.5			(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)   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.
(d)   See pages 8-10 for more information.
(e)   Non-GAAP results are reconciled to applicable GAAP results on pages 11-14.
(f)   Attributable to Brink's.
(g)   Segment revenues equal our total reported non-GAAP revenues.
(h)   As disclosed in the first quarter of 2021, an accrual adjustment was made that resulted in a positive $12.3 million for the North America segment with a corresponding offset to Corporate expense, resulting in no impact to consolidated operating profit for the quarter.}

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

Full-Year 2022 vs. 2021

GAAP					Organic			Acquisitions /									% Change
		2021			Change			Dispositions(a)			Currency(b)			2022			Total			Organic
Revenues:
North America	$	1,407			140			42			(5	)		1,584			13			10
Latin America		1,126			164			3			(82	)		1,211			8			15
Europe		917			85			43			(114	)		931			2			9
Rest of World		750			105			6			(51	)		809			8			14
Segment revenues(g)	$	4,200			494			94			(252	)		4,536			8			12
Revenues - GAAP	$	4,200			494			94			(252	)		4,536			8			12
Operating profit:
North America(h)	$	148			3			7			—			159			7			2
Latin America		257			51			—			(31	)		278			8			20
Europe		90			15			6			(12	)		98			10			16
Rest of World		132			42			1			(10	)		164			25			32
Segment operating profit		627			111			15			(53	)		699			11			18
Corporate(c)(h)		(157	)		(1	)		—			9			(149	)		(5	)		1
Operating profit - non-GAAP	$	471			110			15			(45	)		550			17			23
Other items not allocated to segments(d)		(116	)		(31	)		(16	)		(26	)		(189	)		63			27
Operating profit - GAAP	$	355			78			(1	)		(70	)		361			2