Virginia | 001-09148 | 54-1317776 |
(State or other jurisdiction of incorporation) | (Commission File Number) | (IRS Employer Identification No.) |
[ ] | Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) | |
[ ] | Soliciting materials pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) | |
[ ] | Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) | |
[ ] | Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) |
Item 2.02 | Results of Operations and Financial Condition. |
Item 7.01 | Regulation FD Disclosure. |
Item 9.01 | Financial Statements and Exhibits. | ||
(d) | Exhibits | ||
99.1 | Press Release, dated February 4, 2016, issued by The Brink’s Company | ||
99.2 | Slide presentation of The Brink’s Company |
THE BRINK’S COMPANY (Registrant) | ||
Date: February 4, 2016 | By: | /s/Joseph W. Dziedzic |
Joseph W. Dziedzic | ||
Executive Vice President and Chief Financial Officer |
EXHIBIT | DESCRIPTION |
99.1 | Press Release, dated February 4, 2016, issued by The Brink’s Company |
99.2 | Slide presentation of The Brink’s Company |
Exhibit 99.1 |
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 ($.07) vs ($.52); revenue down 13% (11% organic growth); operating profit $33 million vs $(24) million |
• | EPS $.55 vs $.58; revenue down 14% (0% organic growth); operating margin 6.6% vs 6.9% |
• | Currency translation reduced revenue by $117 million, operating profit by $16 million, EPS by $.20 |
• | Operating profit down 17% (10% organic growth); organic growth in Argentina, Brazil, Mexico and Asia offset by declines in U.S. and EMEA and currency |
• | Corporate expense down $5 million; lower tax rate and interest expense |
• | EPS ($.19) vs ($1.12); revenue down 14% (11% organic growth); operating profit $57 million vs $(28) million |
• | EPS $1.69 vs $1.01; revenue down 11% (3% organic growth); operating margin 5.3% vs 3.7% |
• | Currency translation reduced revenue by $467 million, operating profit by $50 million, EPS by $.64 |
• | Operating profit up 26% (66% organic growth); strong organic growth in Argentina, Mexico and Asia offsets declines in U.S. and EMEA and currency |
• | Corporate expense down $31 million; lower tax rate and interest expense |
Fourth Quarter | Full Year | |||||||||||||||||||
(In millions, except for per share amounts) | 2015 | 2014 | % Change | 2015 | 2014 | % Change | ||||||||||||||
GAAP | ||||||||||||||||||||
Revenues | $ | 766 | 881 | (13 | ) | $ | 3,061 | 3,562 | (14 | ) | ||||||||||
Operating profit (loss) | 33 | (24 | ) | fav | 57 | (28 | ) | fav | ||||||||||||
Income (loss) from continuing operations(b) | (3 | ) | (26 | ) | (87 | ) | (9 | ) | (55 | ) | (83 | ) | ||||||||
Diluted EPS from continuing operations(b) | (0.07 | ) | (0.52 | ) | (87 | ) | (0.19 | ) | (1.12 | ) | (83 | ) | ||||||||
Non-GAAP | ||||||||||||||||||||
Non-GAAP revenues | $ | 733 | 848 | (14 | ) | $ | 2,977 | 3,351 | (11 | ) | ||||||||||
Non-GAAP operating profit | 49 | 59 | (17 | ) | 157 | 124 | 26 | |||||||||||||
Non-GAAP income from continuing operations(b) | 27 | 28 | (3 | ) | 84 | 49 | 70 | |||||||||||||
Non-GAAP diluted EPS from continuing operations(b) | 0.55 | 0.58 | (5 | ) | 1.69 | 1.01 | 67 |
Fourth Quarter | Full Year | |||||||||||||||
2015 | 2014 | 2015 | 2014 | |||||||||||||
GAAP EPS | $ | (0.07 | ) | $ | (0.52 | ) | $ | (0.19 | ) | $ | (1.12 | ) | ||||
Venezuela operations(c) | (0.11 | ) | 0.01 | 0.64 | 1.28 | |||||||||||
Reorganization and Restructuring costs(d) | 0.18 | 0.31 | 0.23 | 0.31 | ||||||||||||
U.S. and Mexican retirement plans | 0.10 | 0.80 | 0.41 | 1.03 | ||||||||||||
Acquisitions and dispositions | 0.13 | — | 0.12 | (0.54 | ) | |||||||||||
Share-based compensation adjustment | — | — | — | 0.04 | ||||||||||||
U.S. tax on accelerated U.S. income (e) | 0.47 | — | 0.47 | — | ||||||||||||
Income tax rate adjustment(f) | (0.15 | ) | (0.01 | ) | — | — | ||||||||||
Non-GAAP EPS | $ | 0.55 | $ | 0.58 | $ | 1.69 | $ | 1.01 |
(a) | Non-GAAP results are reconciled to the applicable GAAP results on pages 15-16. |
(b) | Amounts reported are attributable to shareholders of The Brink’s Company and exclude earnings related to noncontrolling interests. |
(c) | Given the inability to repatriate cash, hyperinflation, fixed exchange rate policy, continued currency devaluations, and the difficulty raising prices and controlling costs, beginning in the first quarter 2015, our non-GAAP results exclude Venezuela operations. Management believes excluding Venezuela enables investors to more effectively evaluate the company’s performance between periods. In the second quarter of 2015, Brink’s elected to evaluate and pursue strategic options for the Venezuela business. As a result, we performed an impairment analysis and wrote down the book value of Venezuela property, plant and equipment to our best estimate of current fair value. |
(d) | Brink’s reorganized and restructured its business in December 2014 and recognized severance costs of $21.8 million associated with these actions in 2014. Additional charges of $1.9 million were recognized in 2015. Brink's initiated an additional restructuring in the third quarter of 2015 and recognized $11.6 million in costs in the second half of 2015. Brink's recognized $1.8 million in costs in the fourth quarter of 2015 related to executive leadership and Board of Directors restructuring actions, which were announced in January 2016. See page 13 for more details. |
(e) | The non-GAAP tax rate excludes the U.S. tax on a transaction that accelerated U.S. taxable income because it will be offset by foreign tax benefits in future years. |
(f) | The effective income tax rate in the interim period is adjusted to be equal to the estimated full-year non-GAAP effective income tax rate. The full-year non-GAAP effective tax rate was 37.0% for 2015 and 45.7% for 2014. |
Organic | Acquisitions / | % Change | ||||||||||||||||||||
4Q'14 | Change | Dispositions(a) | Currency(b) | 4Q'15 | Total | Organic | ||||||||||||||||
Revenues: | ||||||||||||||||||||||
U.S. | $ | 190 | (10 | ) | — | — | 180 | (5 | ) | (5 | ) | |||||||||||
France | 123 | — | — | (15 | ) | 108 | (12 | ) | — | |||||||||||||
Mexico | 95 | 4 | — | (17 | ) | 82 | (14 | ) | 4 | |||||||||||||
Brazil | 90 | 9 | — | (34 | ) | 65 | (28 | ) | 10 | |||||||||||||
Canada | 44 | — | — | (7 | ) | 37 | (15 | ) | — | |||||||||||||
Largest 5 Markets | 542 | 3 | — | (73 | ) | 472 | (13 | ) | — | |||||||||||||
Latin America | 102 | 15 | — | (20 | ) | 96 | (5 | ) | 15 | |||||||||||||
EMEA | 143 | (23 | ) | — | (15 | ) | 105 | (26 | ) | (16 | ) | |||||||||||
Asia | 37 | 4 | 2 | (2 | ) | 40 | 11 | 11 | ||||||||||||||
Global Markets | 281 | (4 | ) | 2 | (37 | ) | 242 | (14 | ) | (1 | ) | |||||||||||
Payment Services | 25 | 2 | — | (8 | ) | 19 | (23 | ) | 8 | |||||||||||||
Revenues - non-GAAP | 848 | — | 2 | (117 | ) | 733 | (14 | ) | — | |||||||||||||
Other items not allocated to segments(d) | 33 | 97 | — | (97 | ) | 33 | (2 | ) | fav | |||||||||||||
Revenues - GAAP | $ | 881 | 97 | 2 | (214 | ) | 766 | (13 | ) | 11 | ||||||||||||
Operating profit: | ||||||||||||||||||||||
U.S. | $ | 12 | (13 | ) | — | — | (1 | ) | unfav | unfav | ||||||||||||
France | 11 | — | — | (1 | ) | 10 | (9 | ) | 4 | |||||||||||||
Mexico | 7 | 3 | — | (2 | ) | 8 | 17 | 38 | ||||||||||||||
Brazil | 14 | 4 | — | (6 | ) | 12 | (17 | ) | 24 | |||||||||||||
Canada | 4 | (1 | ) | — | (1 | ) | 3 | (27 | ) | (12 | ) | |||||||||||
Largest 5 Markets | 49 | (7 | ) | — | (9 | ) | 33 | (33 | ) | (14 | ) | |||||||||||
Latin America | 18 | 11 | — | (6 | ) | 23 | 26 | 59 | ||||||||||||||
EMEA | 16 | (6 | ) | — | (1 | ) | 9 | (43 | ) | (37 | ) | |||||||||||
Asia | 7 | 3 | 1 | — | 9 | 39 | 38 | |||||||||||||||
Global Markets | 41 | 7 | 1 | (7 | ) | 41 | 1 | 18 | ||||||||||||||
Payment Services | (2 | ) | — | — | — | (2 | ) | — | 15 | |||||||||||||
Corporate items(c) | (29 | ) | 5 | — | — | (23 | ) | (19 | ) | (19 | ) | |||||||||||
Operating profit - non-GAAP | 59 | 6 | 1 | (16 | ) | 49 | (17 | ) | 10 | |||||||||||||
Other items not allocated to segments(d) | (82 | ) | 110 | (6 | ) | (37 | ) | (16 | ) | (81 | ) | fav | ||||||||||
Operating profit (loss) - GAAP | $ | (24 | ) | 116 | (6 | ) | (53 | ) | 33 | fav | fav | |||||||||||
(a) | Includes operating results and gains/losses on acquisitions, sales and exits of businesses. The 2014 divestiture of an equity interest in a business in Peru is included in “Other items not allocated to segments”. |
(b) | The amounts in the “Currency” column consist of the amortization of Venezuela non-monetary assets not devalued under highly inflationary accounting rules and the sum of monthly currency changes. Monthly currency changes represent the accumulation throughout the year of the impact on current period results of 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 by public companies. |
(d) | See pages 13 and 14 for more information. |
Organic | Acquisitions / | % Change | ||||||||||||||||||||
YTD '14 | Change | Dispositions(a) | Currency(b) | YTD '15 | Total | Organic | ||||||||||||||||
Revenues: | ||||||||||||||||||||||
U.S. | $ | 728 | 3 | — | — | 730 | — | — | ||||||||||||||
France | 517 | — | — | (86 | ) | 432 | (17 | ) | — | |||||||||||||
Mexico | 388 | 9 | — | (64 | ) | 333 | (14 | ) | 2 | |||||||||||||
Brazil | 364 | 18 | — | (111 | ) | 270 | (26 | ) | 5 | |||||||||||||
Canada | 180 | (2 | ) | — | (24 | ) | 154 | (14 | ) | (1 | ) | |||||||||||
Largest 5 Markets | 2,177 | 27 | — | (285 | ) | 1,919 | (12 | ) | 1 | |||||||||||||
Latin America | 381 | 58 | — | (69 | ) | 370 | (3 | ) | 15 | |||||||||||||
EMEA | 556 | (38 | ) | — | (74 | ) | 445 | (20 | ) | (7 | ) | |||||||||||
Asia | 140 | 18 | 9 | (10 | ) | 157 | 13 | 13 | ||||||||||||||
Global Markets | 1,077 | 39 | 9 | (153 | ) | 972 | (10 | ) | 4 | |||||||||||||
Payment Services | 97 | 19 | — | (30 | ) | 86 | (11 | ) | 20 | |||||||||||||
Revenues - non-GAAP | 3,351 | 85 | 9 | (467 | ) | 2,977 | (11 | ) | 3 | |||||||||||||
Other items not allocated to segments(d) | 212 | 297 | — | (424 | ) | 85 | (60 | ) | fav | |||||||||||||
Revenues - GAAP | $ | 3,562 | 381 | 9 | (891 | ) | 3,061 | (14 | ) | 11 | ||||||||||||
Operating profit: | ||||||||||||||||||||||
U.S. | $ | 23 | (8 | ) | — | — | 15 | (34 | ) | (34 | ) | |||||||||||
France | 39 | 2 | — | (7 | ) | 35 | (12 | ) | 5 | |||||||||||||
Mexico | 10 | 19 | — | (5 | ) | 24 | fav | fav | ||||||||||||||
Brazil | 34 | — | — | (11 | ) | 24 | (30 | ) | — | |||||||||||||
Canada | 13 | — | — | (2 | ) | 11 | (16 | ) | (2 | ) | ||||||||||||
Largest 5 Markets | 119 | 13 | — | (23 | ) | 109 | (9 | ) | 11 | |||||||||||||
Latin America | 50 | 39 | — | (13 | ) | 76 | 51 | 76 | ||||||||||||||
EMEA | 53 | (14 | ) | — | (3 | ) | 36 | (32 | ) | (26 | ) | |||||||||||
Asia | 23 | 6 | 1 | (1 | ) | 29 | 24 | 26 | ||||||||||||||
Global Markets | 126 | 31 | 1 | (17 | ) | 141 | 12 | 25 | ||||||||||||||
Payment Services | (5 | ) | (1 | ) | — | (1 | ) | (7 | ) | 47 | 29 | |||||||||||
Corporate items(c) | (116 | ) | 39 | — | (9 | ) | (85 | ) | (26 | ) | (34 | ) | ||||||||||
Operating profit - non-GAAP | 124 | 82 | 1 | (50 | ) | 157 | 26 | 66 | ||||||||||||||
Other items not allocated to segments(d) | (152 | ) | 53 | (55 | ) | 54 | (100 | ) | (34 | ) | (35 | ) | ||||||||||
Operating profit (loss) - GAAP | $ | (28 | ) | 135 | (54 | ) | 3 | 57 | fav | fav | ||||||||||||
2015 GAAP | 2015 Non-GAAP(a) | 2016 Non-GAAP Outlook(c) | % Change | ||||||||
Revenues(a) | $ | 3,061 | 2,977 | 2,850 | |||||||
Operating profit(a) | 57 | 157 | 190 – 210 | ||||||||
Nonoperating expense | (16 | ) | (15 | ) | (16 | ) | |||||
Provision for income taxes(a) | (67 | ) | (52 | ) | (68) – (76) | ||||||
Noncontrolling interests(a) | 16 | (5 | ) | (5) – (7) | |||||||
Income (loss) from continuing operations(a)(b) | (9 | ) | 84 | 101 – 111 | |||||||
EPS from continuing operations(a)(b) | $ | (0.19 | ) | 1.69 | 2.00 – 2.20 | ||||||
Key Metrics | |||||||||||
Revenues Change | |||||||||||
Organic | 150 | 5% | |||||||||
Currency | (277 | ) | (9)% | ||||||||
Total | (127 | ) | (4)% | ||||||||
Operating profit margin | 1.8 | % | 5.3 | % | 6.7% – 7.4% | ||||||
Effective income tax rate(a) | 161.8 | % | 37.0 | % | 39.0 | % | |||||
Fixed assets acquired | |||||||||||
Capital expenditures(d) | $ | 101 | 97 | 100 – 110 | |||||||
Capital leases(e) | 19 | 19 | 20 | ||||||||
Total | $ | 120 | 116 | 120 – 130 | |||||||
Depreciation and amortization of fixed assets(d) | $ | 136 | 132 | 120 – 130 |
• | U.S. operating profit margin of 4% - 5% |
• | Mexico operating profit margin of ~10% |
(a) | See pages 15 and 16 for reconciliation to GAAP. |
(b) | Attributable to Brink’s. |
(c) | The annual consolidated non-GAAP outlook amounts for 2016 are not reconciled to GAAP because we are unable to quantify certain amounts that would be required to be included in the GAAP measures without unreasonable effort. |
(d) | 2015 non-GAAP amounts exclude Venezuela capital expenditures of $4.3 million and Venezuela depreciation and amortization of fixed assets of $3.9 million. Depreciation and amortization of fixed assets does not include intangible asset amortization. |
(e) | Includes capital leases for newly acquired assets only. |
Fourth Quarter | Full Year | ||||||||||||
2015 | 2014 | 2015 | 2014 | ||||||||||
Revenues | $ | 765.8 | 881.2 | $ | 3,061.4 | 3,562.3 | |||||||
Costs and expenses: | |||||||||||||
Cost of revenues | 605.2 | 743.0 | 2,471.6 | 2,948.2 | |||||||||
Selling, general and administrative expenses | 120.4 | 158.7 | 463.8 | 560.6 | |||||||||
Total costs and expenses | 725.6 | 901.7 | 2,935.4 | 3,508.8 | |||||||||
Other operating expense | (7.2 | ) | (3.2 | ) | (69.4 | ) | (81.0 | ) | |||||
Operating profit (loss) | 33.0 | (23.7 | ) | 56.6 | (27.5 | ) | |||||||
Interest expense | (4.5 | ) | (5.1 | ) | (18.9 | ) | (23.4 | ) | |||||
Interest and other income | 1.7 | 0.9 | 3.4 | 1.9 | |||||||||
Income (loss) from continuing operations before tax | 30.2 | (27.9 | ) | 41.1 | (49.0 | ) | |||||||
Provision (benefit) for income taxes | 29.3 | (2.9 | ) | 66.5 | 36.7 | ||||||||
Income (loss) from continuing operations | 0.9 | (25.0 | ) | (25.4 | ) | (85.7 | ) | ||||||
Loss from discontinued operations, net of tax | (0.4 | ) | (21.7 | ) | (2.8 | ) | (29.1 | ) | |||||
Net income (loss) | 0.5 | (46.7 | ) | (28.2 | ) | (114.8 | ) | ||||||
Less net income (loss) attributable to noncontrolling interests | 4.1 | 0.5 | (16.3 | ) | (30.9 | ) | |||||||
Net loss attributable to Brink’s | $ | (3.6 | ) | (47.2 | ) | $ | (11.9 | ) | (83.9 | ) | |||
Amounts attributable to Brink’s: | |||||||||||||
Continuing operations | (3.2 | ) | (25.5 | ) | (9.1 | ) | (54.8 | ) | |||||
Discontinued operations | (0.4 | ) | (21.7 | ) | (2.8 | ) | (29.1 | ) | |||||
Net loss attributable to Brink’s | $ | (3.6 | ) | (47.2 | ) | $ | (11.9 | ) | (83.9 | ) | |||
Loss per share attributable to Brink’s common shareholders(a): | |||||||||||||
Basic: | |||||||||||||
Continuing operations | $ | (0.07 | ) | (0.52 | ) | $ | (0.19 | ) | (1.12 | ) | |||
Discontinued operations | (0.01 | ) | (0.44 | ) | (0.06 | ) | (0.59 | ) | |||||
Net loss | $ | (0.07 | ) | (0.96 | ) | $ | (0.24 | ) | (1.71 | ) | |||
Diluted: | |||||||||||||
Continuing operations | $ | (0.07 | ) | (0.52 | ) | $ | (0.19 | ) | (1.12 | ) | |||
Discontinued operations | (0.01 | ) | (0.44 | ) | (0.06 | ) | (0.59 | ) | |||||
Net loss | $ | (0.07 | ) | (0.96 | ) | $ | (0.24 | ) | (1.71 | ) | |||
Weighted-average shares | |||||||||||||
Basic | 49.4 | 49.1 | 49.3 | 49.0 | |||||||||
Diluted | 49.4 | 49.1 | 49.3 | 49.0 |
(a) | Earnings per share may not add due to rounding. |
Full Year | |||||||
2015 | 2014 | ||||||
Property and equipment acquired during the year | |||||||
Capital expenditures(a) | |||||||
Largest 5 Markets | $ | 59.3 | $ | 83.4 | |||
Global Markets | 28.8 | 30.0 | |||||
Payment Services | 1.7 | 0.8 | |||||
Corporate items | 7.0 | 16.5 | |||||
Capital expenditures - non-GAAP | 96.8 | 130.7 | |||||
Venezuela | 4.3 | 5.4 | |||||
Capital expenditures - GAAP | 101.1 | 136.1 | |||||
Capital Leases(b) | |||||||
Largest 5 Markets | 18.8 | 10.6 | |||||
Global Markets | — | 0.3 | |||||
Payment Services | 0.1 | 1.2 | |||||
Corporate items | — | — | |||||
Capital leases - GAAP and non-GAAP | 18.9 | 12.1 | |||||
Total | |||||||
Largest 5 Markets | 78.1 | 94.0 | |||||
Global Markets | 28.8 | 30.3 | |||||
Payment Services | 1.8 | 2.0 | |||||
Corporate items | 7.0 | 16.5 | |||||
Total - non-GAAP | 115.7 | 142.8 | |||||
Venezuela | 4.3 | 5.4 | |||||
Total - GAAP | $ | 120.0 | $ | 148.2 | |||
Depreciation and amortization(a) | |||||||
Largest 5 Markets | $ | 94.6 | $ | 107.7 | |||
Global Markets | 27.2 | 31.3 | |||||
Payment Services | 2.9 | 3.7 | |||||
Corporate items | 11.3 | 9.7 | |||||
Depreciation and amortization - non-GAAP | 136.0 | 152.4 | |||||
Venezuela | 3.9 | 9.5 | |||||
Depreciation and amortization - GAAP | $ | 139.9 | $ | 161.9 |
(a) | Capital expenditures as well as depreciation and amortization related to Venezuela have been excluded from Global Markets. |
(b) | Represents the amount of property and equipment acquired using capital leases. Because these assets are acquired without using cash, the acquisitions are not reflected in the consolidated cash flow statement. Amounts are provided here to assist in the comparison of assets acquired in the current year versus prior years. |
Revenues | |||||||||||||||||||||||||||||||
2014 | 2015 | ||||||||||||||||||||||||||||||
1Q | 2Q | 3Q | 4Q | Full Year | 1Q | 2Q | 3Q | 4Q | Full Year | ||||||||||||||||||||||
Revenues: | |||||||||||||||||||||||||||||||
U.S. | $ | 175.8 | 180.3 | 181.6 | 190.1 | 727.8 | $ | 183.6 | 184.1 | 182.6 | 180.1 | 730.4 | |||||||||||||||||||
France | 128.8 | 133.1 | 132.7 | 122.8 | 517.4 | 105.7 | 107.4 | 110.8 | 107.6 | 431.5 | |||||||||||||||||||||
Mexico | 100.2 | 98.1 | 95.1 | 94.8 | 388.2 | 85.7 | 85.1 | 80.4 | 81.8 | 333.0 | |||||||||||||||||||||
Brazil | 86.4 | 91.5 | 95.8 | 90.4 | 364.1 | 73.8 | 67.7 | 63.6 | 65.3 | 270.4 | |||||||||||||||||||||
Canada | 44.4 | 45.3 | 46.0 | 44.0 | 179.7 | 38.8 | 39.6 | 37.9 | 37.4 | 153.7 | |||||||||||||||||||||
Largest 5 Markets | 535.6 | 548.3 | 551.2 | 542.1 | 2,177.2 | 487.6 | 483.9 | 475.3 | 472.2 | 1,919.0 | |||||||||||||||||||||
Latin America | 90.6 | 93.1 | 95.4 | 101.5 | 380.6 | 90.8 | 91.2 | 91.7 | 96.2 | 369.9 | |||||||||||||||||||||
EMEA | 136.9 | 137.5 | 139.1 | 142.8 | 556.3 | 115.7 | 112.3 | 111.5 | 105.2 | 444.7 | |||||||||||||||||||||
Asia | 33.0 | 34.0 | 36.3 | 36.5 | 139.8 | 38.7 | 38.6 | 39.7 | 40.4 | 157.4 | |||||||||||||||||||||
Global Markets | 260.5 | 264.6 | 270.8 | 280.8 | 1,076.7 | 245.2 | 242.1 | 242.9 | 241.8 | 972.0 | |||||||||||||||||||||
Payment Services | 22.2 | 23.8 | 25.4 | 25.2 | 96.6 | 22.8 | 22.1 | 21.7 | 19.3 | 85.9 | |||||||||||||||||||||
Revenue - non-GAAP | 818.3 | 836.7 | 847.4 | 848.1 | 3,350.5 | 755.6 | 748.1 | 739.9 | 733.3 | 2,976.9 | |||||||||||||||||||||
Other items not allocated to segments(a) | 131.3 | 22.3 | 25.1 | 33.1 | 211.8 | 20.5 | 12.2 | 19.3 | 32.5 | 84.5 | |||||||||||||||||||||
Revenues - GAAP | $ | 949.6 | 859.0 | 872.5 | 881.2 | 3,562.3 | $ | 776.1 | 760.3 | 759.2 | 765.8 | 3,061.4 | |||||||||||||||||||
Operating Profit | |||||||||||||||||||||||||||||||
2014 | 2015 | ||||||||||||||||||||||||||||||
1Q | 2Q | 3Q | 4Q | Full Year | 1Q | 2Q | 3Q | 4Q | Full Year | ||||||||||||||||||||||
Operating profit: | |||||||||||||||||||||||||||||||
U.S. | $ | 1.3 | 5.9 | 3.9 | 11.7 | 22.8 | $ | 8.3 | 6.4 | 1.4 | (1.0 | ) | 15.1 | ||||||||||||||||||
France | 6.6 | 4.9 | 16.7 | 11.2 | 39.4 | 4.1 | 6.7 | 13.7 | 10.2 | 34.7 | |||||||||||||||||||||
Mexico | 3.7 | (0.9 | ) | (0.4 | ) | 7.2 | 9.6 | 7.9 | 4.5 | 3.4 | 8.4 | 24.2 | |||||||||||||||||||
Brazil | 9.7 | 5.4 | 4.8 | 14.3 | 34.2 | 6.1 | 2.1 | 3.7 | 11.9 | 23.8 | |||||||||||||||||||||
Canada | 2.3 | 2.4 | 4.0 | 4.1 | 12.8 | 1.7 | 2.4 | 3.6 | 3.0 | 10.7 | |||||||||||||||||||||
Largest 5 Markets | 23.6 | 17.7 | 29.0 | 48.5 | 118.8 | 28.1 | 22.1 | 25.8 | 32.5 | 108.5 | |||||||||||||||||||||
Latin America | 10.1 | 11.4 | 10.7 | 18.2 | 50.4 | 16.5 | 19.2 | 17.6 | 23.0 | 76.3 | |||||||||||||||||||||
EMEA | 9.2 | 12.0 | 15.5 | 15.8 | 52.5 | 8.2 | 9.1 | 9.4 | 9.0 | 35.7 | |||||||||||||||||||||
Asia | 5.2 | 5.1 | 6.2 | 6.6 | 23.1 | 6.5 | 5.9 | 7.1 | 9.2 | 28.7 | |||||||||||||||||||||
Global Markets | 24.5 | 28.5 | 32.4 | 40.6 | 126.0 | 31.2 | 34.2 | 34.1 | 41.2 | 140.7 | |||||||||||||||||||||
Payment Services | 0.8 | (1.3 | ) | (2.4 | ) | (2.0 | ) | (4.9 | ) | 0.5 | (3.7 | ) | (2.0 | ) | (2.0 | ) | (7.2 | ) | |||||||||||||
Corporate items | (28.1 | ) | (20.9 | ) | (38.2 | ) | (28.5 | ) | (115.7 | ) | (19.2 | ) | (22.0 | ) | (20.9 | ) | (23.1 | ) | (85.2 | ) | |||||||||||
Operating profit - non-GAAP | 20.8 | 24.0 | 20.8 | 58.6 | 124.2 | 40.6 | 30.6 | 37.0 | 48.6 | 156.8 | |||||||||||||||||||||
Other items not allocated to segments(a) | (94.5 | ) | (15.3 | ) | 40.4 | (82.3 | ) | (151.7 | ) | (27.7 | ) | (45.2 | ) | (11.7 | ) | (15.6 | ) | (100.2 | ) | ||||||||||||
Operating profit (loss) - GAAP | $ | (73.7 | ) | 8.7 | 61.2 | (23.7 | ) | (27.5 | ) | $ | 12.9 | (14.6 | ) | 25.3 | 33.0 | 56.6 | |||||||||||||||
Margin | |||||||||||||||||||||||||||||||
2014 | 2015 | ||||||||||||||||||||||||||||||
1Q | 2Q | 3Q | 4Q | Full Year | 1Q | 2Q | 3Q | 4Q | Full Year | ||||||||||||||||||||||
Margin: | |||||||||||||||||||||||||||||||
U.S. | 0.7 | % | 3.3 | 2.1 | 6.2 | 3.1 | 4.5 | % | 3.5 | 0.8 | (0.6 | ) | 2.1 | ||||||||||||||||||
France | 5.1 | 3.7 | 12.6 | 9.1 | 7.6 | 3.9 | 6.2 | 12.4 | 9.5 | 8.0 | |||||||||||||||||||||
Mexico | 3.7 | (0.9 | ) | (0.4 | ) | 7.6 | 2.5 | 9.2 | 5.3 | 4.2 | 10.3 | 7.3 | |||||||||||||||||||
Brazil | 11.2 | 5.9 | 5.0 | 15.8 | 9.4 | 8.3 | 3.1 | 5.8 | 18.2 | 8.8 | |||||||||||||||||||||
Canada | 5.2 | 5.3 | 8.7 | 9.3 | 7.1 | 4.4 | 6.1 | 9.5 | 8.0 | 7.0 | |||||||||||||||||||||
Largest 5 Markets | 4.4 | 3.2 | 5.3 | 8.9 | 5.5 | 5.8 | 4.6 | 5.4 | 6.9 | 5.7 | |||||||||||||||||||||
Latin America | 11.1 | 12.2 | 11.2 | 17.9 | 13.2 | 18.2 | 21.1 | 19.2 | 23.9 | 20.6 | |||||||||||||||||||||
EMEA | 6.7 | 8.7 | 11.1 | 11.1 | 9.4 | 7.1 | 8.1 | 8.4 | 8.6 | 8.0 | |||||||||||||||||||||
Asia | 15.8 | 15.0 | 17.1 | 18.1 | 16.5 | 16.8 | 15.3 | 17.9 | 22.8 | 18.2 | |||||||||||||||||||||
Global Markets | 9.4 | 10.8 | 12.0 | 14.5 | 11.7 | 12.7 | 14.1 | 14.0 | 17.0 | 14.5 | |||||||||||||||||||||
Payment Services | 3.6 | (5.5 | ) | (9.4 | ) | (7.9 | ) | (5.1 | ) | 2.2 | (16.7 | ) | (9.2 | ) | (10.4 | ) | (8.4 | ) | |||||||||||||
Corporate items | (3.4 | ) | (2.5 | ) | (4.5 | ) | (3.4 | ) | (3.5 | ) | (2.5 | ) | (2.9 | ) | (2.8 | ) | (3.2 | ) | (2.9 | ) | |||||||||||
Operating profit - non-GAAP | 2.5 | 2.9 | 2.5 | 6.9 | 3.7 | 5.4 | 4.1 | 5.0 | 6.6 | 5.3 | |||||||||||||||||||||
Other items not allocated to segments(a) | (10.3 | ) | (1.9 | ) | 4.6 | (9.6 | ) | (4.5 | ) | (3.7 | ) | (6.0 | ) | (1.7 | ) | (2.3 | ) | (3.5 | ) | ||||||||||||
Operating profit (loss) -GAAP | (7.8 | )% | 1.0 | 7.0 | (2.7 | ) | (0.8 | ) | 1.7 | % | (1.9 | ) | 3.3 | 4.3 | 1.8 |
(a) | See pages 13 and 14 for more information. |
2014 | 2015 | ||||||||||||||||||||||||||||||
1Q | 2Q | 3Q | 4Q | Full Year | 1Q | 2Q | 3Q | 4Q | Full Year | ||||||||||||||||||||||
Revenues: | |||||||||||||||||||||||||||||||
Venezuela operations | $ | 131.3 | 22.3 | 25.1 | 33.1 | 211.8 | $ | 20.5 | 12.2 | 19.3 | 32.5 | 84.5 | |||||||||||||||||||
Operating profit: | |||||||||||||||||||||||||||||||
Venezuela operations | (88.9 | ) | (7.9 | ) | (2.3 | ) | 1.2 | (97.9 | ) | (17.9 | ) | (39.1 | ) | (0.8 | ) | 10.1 | (47.7 | ) | |||||||||||||
Reorganization and Restructuring | — | — | — | (21.8 | ) | (21.8 | ) | (1.5 | ) | 1.2 | (2.9 | ) | (12.1 | ) | (15.3 | ) | |||||||||||||||
U.S. and Mexican retirement plans | (6.8 | ) | (4.5 | ) | (6.0 | ) | (61.7 | ) | (79.0 | ) | (8.3 | ) | (7.6 | ) | (8.0 | ) | (7.3 | ) | (31.2 | ) | |||||||||||
Acquisitions and dispositions | 1.2 | 1.3 | 46.9 | — | 49.4 | — | 0.3 | — | (6.3 | ) | (6.0 | ) | |||||||||||||||||||
Share-based compensation adj. | — | (4.2 | ) | 1.8 | — | (2.4 | ) | — | — | — | — | — | |||||||||||||||||||
Operating profit | $ | (94.5 | ) | (15.3 | ) | 40.4 | (82.3 | ) | (151.7 | ) | $ | (27.7 | ) | (45.2 | ) | (11.7 | ) | (15.6 | ) | (100.2 | ) |
• | Continued inability to repatriate cash to redeploy to other operations or dividend to shareholders |
• | Highly inflationary environment |
• | Fixed exchange rate policy |
• | Continued currency devaluations and |
• | Difficulty raising prices and controlling costs |
• | Brink’s sold an equity investment in a CIT business in Peru and recognized a $44.3 million gain in the third quarter of 2014. The gain on the sale and the equity earnings have not been allocated to segment results. |
• | A favorable adjustment to the 2010 business acquisition gain for Mexico ($0.7 million in the third quarter of 2014) is not allocated to segment results. |
• | A favorable adjustment to the purchase price of a third quarter 2014 business acquisition in EMEA ($0.3 million in the second quarter of 2015) is not allocated to segment results. |
• | Brink's sold its 70% interest in a cash management business in Russia in the fourth quarter of 2015 and recognized a $5.9 million loss on the sale. |
• | Brink's recognized $0.4 million in pretax charges in the fourth quarter of 2015 related to a real estate transaction in Mexico. The transaction did not qualify for sale-leaseback accounting under U.S. GAAP rules due to continuing involvement with the property. A financing liability of $14 million was recognized for the cash proceeds received in the transaction. When the continuing involvement conditions expire, a gain will be recognized, equal to the difference between the financing liability and the remaining net book value of the property. |
2014 | 2015 | ||||||||||||||||||
Pre-tax | Tax | Effective tax rate | Pre-tax | Tax | Effective tax rate | ||||||||||||||
Effective Income Tax Rate | |||||||||||||||||||
Non-GAAP | $ | 102.7 | 46.9 | 45.7 | % | $ | 141.3 | 52.3 | 37.0 | % | |||||||||
Other items not allocated to segments(b) | (151.7 | ) | (10.2 | ) | (120.6 | )% | (100.2 | ) | 14.2 | 124.8 | % | ||||||||
GAAP | $ | (49.0 | ) | 36.7 | (74.9 | )% | $ | 41.1 | 66.5 | 161.8 | % |
2015 | ||||||
4Q | Full Year | |||||
EPS: | ||||||
Constant currency basis - Non-GAAP | $ | 0.75 | 2.33 | |||
Effect of changes in currency exchange rates(a) | (0.20 | ) | (0.64 | ) | ||
Non-GAAP | 0.55 | 1.69 | ||||
Other items not allocated to segments(b) | (0.77 | ) | (1.87 | ) | ||
Income tax rate adjustment(c) | 0.15 | — | ||||
GAAP | $ | (0.07 | ) | (0.19 | ) |
(a) | See footnote (b) on page 4 for currency definition and calculation between periods. For Non-GAAP EPS on a constant currency basis, EPS is calculated for the most recent period at the prior period's foreign currency rates to eliminate the currency impact on EPS. |
(b) | See “Other Items Not Allocated To Segments” on pages 13-14 for pretax amounts and details. Other Items Not Allocated To Segments for noncontrolling interests, income from continuing operations attributable to Brink's and EPS are the effects of the same items at their respective line items of the consolidated statements of income (loss). |
(c) | Non-GAAP income from continuing operations and non-GAAP EPS have been adjusted to reflect an effective income tax rate in each interim period equal to the full-year non-GAAP effective income tax rate. The full-year non-GAAP effective tax rate was 37.0% for 2015 and 45.7% for 2014. |
2014 | 2015 | ||||||||||||||||||||||||||||||
1Q | 2Q | 3Q | 4Q | Full Year | 1Q | 2Q | 3Q | 4Q | Full Year | ||||||||||||||||||||||
Revenues: | |||||||||||||||||||||||||||||||
Non-GAAP | $ | 818.3 | 836.7 | 847.4 | 848.1 | 3,350.5 | $ | 755.6 | 748.1 | 739.9 | 733.3 | 2,976.9 | |||||||||||||||||||
Other items not allocated to segments(b) | 131.3 | 22.3 | 25.1 | 33.1 | 211.8 | 20.5 | 12.2 | 19.3 | 32.5 | 84.5 | |||||||||||||||||||||
GAAP | $ | 949.6 | 859.0 | 872.5 | 881.2 | 3,562.3 | $ | 776.1 | 760.3 | 759.2 | 765.8 | 3,061.4 | |||||||||||||||||||
Operating profit (loss): | |||||||||||||||||||||||||||||||
Non-GAAP | $ | 20.8 | 24.0 | 20.8 | 58.6 | 124.2 | $ | 40.6 | 30.6 | 37.0 | 48.6 | 156.8 | |||||||||||||||||||
Other items not allocated to segments(b) | (94.5 | ) | (15.3 | ) | 40.4 | (82.3 | ) | (151.7 | ) | (27.7 | ) | (45.2 | ) | (11.7 | ) | (15.6 | ) | (100.2 | ) | ||||||||||||
GAAP | $ | (73.7 | ) | 8.7 | 61.2 | (23.7 | ) | (27.5 | ) | $ | 12.9 | (14.6 | ) | 25.3 | 33.0 | 56.6 | |||||||||||||||
Taxes: | |||||||||||||||||||||||||||||||
Non-GAAP | $ | 6.9 | 8.5 | 6.7 | 24.8 | 46.9 | $ | 13.4 | 9.7 | 12.2 | 17.0 | 52.3 | |||||||||||||||||||
Other items not allocated to segments(b) | (3.3 | ) | (1.3 | ) | 21.5 | (27.1 | ) | (10.2 | ) | (3.9 | ) | — | (1.5 | ) | 19.6 | 14.2 | |||||||||||||||
Income tax rate adjustment(c) | 5.1 | (3.1 | ) | (1.4 | ) | (0.6 | ) | — | 6.0 | (2.1 | ) | 3.4 | (7.3 | ) | — | ||||||||||||||||
GAAP | $ | 8.7 | 4.1 | 26.8 | (2.9 | ) | 36.7 | $ | 15.5 | 7.6 | 14.1 | 29.3 | 66.5 | ||||||||||||||||||
Noncontrolling interests: | |||||||||||||||||||||||||||||||
Non-GAAP | $ | 0.8 | 2.1 | 2.2 | 1.3 | 6.4 | $ | 0.8 | 1.8 | 0.8 | 1.5 | 4.9 | |||||||||||||||||||
Other items not allocated to segments(b) | (31.3 | ) | (3.7 | ) | (1.6 | ) | (0.7 | ) | (37.3 | ) | (6.2 | ) | (16.5 | ) | (1.4 | ) | 2.9 | (21.2 | ) | ||||||||||||
Income tax rate adjustment(c) | 1.3 | — | (1.2 | ) | (0.1 | ) | — | (1.1 | ) | 1.2 | 0.2 | (0.3 | ) | — | |||||||||||||||||
GAAP | $ | (29.2 | ) | (1.6 | ) | (0.6 | ) | 0.5 | (30.9 | ) | $ | (6.5 | ) | (13.5 | ) | (0.4 | ) | 4.1 | (16.3 | ) | |||||||||||
Income from continuing operations attributable to Brink's: | |||||||||||||||||||||||||||||||
Non-GAAP | $ | 7.3 | 8.1 | 5.7 | 28.3 | 49.4 | $ | 21.9 | 14.8 | 20.1 | 27.4 | 84.2 | |||||||||||||||||||
Other items not allocated to segments(b) | (59.9 | ) | (10.3 | ) | 20.5 | (54.5 | ) | (104.2 | ) | (17.6 | ) | (28.7 | ) | (8.8 | ) | (38.2 | ) | (93.3 | ) | ||||||||||||
Income tax rate adjustment(c) | (6.4 | ) | 3.1 | 2.6 | 0.7 | — | (4.9 | ) | 0.9 | (3.6 | ) | 7.6 | — | ||||||||||||||||||
GAAP | $ | (59.0 | ) | 0.9 | 28.8 | (25.5 | ) | (54.8 | ) | $ | (0.6 | ) | (13.0 | ) | 7.7 | (3.2 | ) | (9.1 | ) | ||||||||||||
EPS: | |||||||||||||||||||||||||||||||
Non-GAAP | $ | 0.15 | 0.16 | 0.12 | 0.58 | 1.01 | $ | 0.44 | 0.30 | 0.40 | 0.55 | 1.69 | |||||||||||||||||||
Other items not allocated to segments(b) | (1.23 | ) | (0.21 | ) | 0.41 | (1.12 | ) | (2.12 | ) | (0.36 | ) | (0.58 | ) | (0.18 | ) | (0.77 | ) | (1.87 | ) | ||||||||||||
Income tax rate adjustment(c) | (0.13 | ) | 0.06 | 0.05 | 0.01 | — | (0.10 | ) | 0.02 | (0.07 | ) | 0.15 | — | ||||||||||||||||||
GAAP | $ | (1.21 | ) | 0.02 | 0.58 | (0.52 | ) | (1.12 | ) | $ | (0.01 | ) | (0.26 | ) | 0.16 | (0.07 | ) | (0.19 | ) | ||||||||||||
Non-GAAP margin | 2.5 | % | 2.9 | % | 2.5 | % | 6.9 | % | 3.7 | % | 5.4 | % | 4.1 | % | 5.0 | % | 6.6 | % | 5.3 | % |
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