EX-99.2 8 ex99-2.htm RECLASSIFICATION OF STATEMENTS OF OPERATIONS AND OTHER FINANCIAL INFORMATION ex99-2.htm
Exhibit 99.2



Reclassification of Statements of Operations and Other Financial Information



The Brink’s Company (the “Company”) completed the spin-off of Brink’s Home Security Holdings, Inc. (“BHSH”) on October 31, 2008.  As a result, the Company will reflect the operations of Brink’s Home Security (“BHS”) in discontinued operations in its Form 10-K for the year ending December 31, 2008.

The following tables provide the Company’s statements of operations for the years 2004 to 2007 and for the nine months ended September 30, 2008, reflecting the reclassification of the results of operations of BHS from continuing operations to discontinued operations.
 
 

 
1
 
 
THE BRINK’S COMPANY
and subsidiaries

Consolidated Statements of Operations (a)
 (Unaudited)

Nine Months Ended September 30, 2008


   
Three Months Ended
  
Nine Months Ended
  
(In millions, except per share amounts)
  
March 31,
 2008
    
June 30,
2008
    
September 30, 2008
    
September 30, 2008
  
Revenues
   $ 792.8       797.8       813.4       2,404.0  
Cost and expenses:
                                
Cost of revenues
     616.9       644.9       647.6       1,909.4  
Selling, general and administrative expenses
     108.7       110.5       111.6       330.8  
Total expenses
     725.6       755.4       759.2       2,240.2  
Other operating income (loss), net
     (0.7 )     0.4       (4.4 )     (4.7 )
                                 
Operating profit
     66.5       42.8       49.8       159.1  
                                 
Interest expense
     (2.5 )     (3.3 )     (3.0 )     (8.8 )
Interest and other income, net
     2.1       3.0       4.5       9.6  
Income from continuing operations before
                                
income taxes and minority interest
     66.1       42.5       51.3       159.9  
Provision for income taxes
     18.3       4.3       14.3       36.9  
Minority interest
     14.9       7.5       7.5       29.9  
                                 
Income from continuing operations
     32.9       30.7       29.5       93.1  
                                 
Income from discontinued operations, net of tax
     17.2       18.0       18.5       53.7  
                                 
Net income
   $ 50.1       48.7       48.0       146.8  
Basic earnings per common share:
                                
Continuing operations
   $ 0.71       0.67       0.64       2.02  
   Discontinued operations
     0.37       0.39       0.40       1.16  
Net income
     1.08       1.06       1.04       3.18  
Diluted earnings per common share:
                                
Continuing operations
   $ 0.70       0.66       0.64       2.00  
Discontinued operations
     0.37       0.39       0.39       1.15  
Net income
     1.07       1.05       1.03       3.15  
Weighted-average common shares outstanding:
                                
Basic
     46.5       46.0       46.1       46.2  
Diluted
     46.9       46.5       46.6       46.7  

(a)  Reflects reclassification of the results of operations of BHS from continuing operations to discontinued operations.
 
 
 
2

THE BRINK’S COMPANY
and subsidiaries

Supplemental Financial Information (continued)
(Unaudited)

INCOME FROM DISCONTINUED OPERATIONS

Nine Months Ended September 30, 2008


   
Three Months Ended
    
Nine Months Ended
(In millions)
  
March 31,
2008
    
June 30,
2008
    
September 30,
2008
      
September 30,
2008
Spin-off of BHSH:
                        
Results of BHS operations
   $ 31.7       35.2       31.1         98.0  
Other Spin-off related costs (a)
     (0.9 )     (3.4 )     (2.2 )       (6.5 )
                                   
Adjustments to contingent liabilities of former operations
     2.9       0.3       2.0         5.2  
Income from discontinued operations before income taxes
     33.7       32.1       30.9         96.7  
Provision for income taxes
     16.5       14.1       12.4         43.0  
Income from discontinued operations
   $ 17.2       18.0       18.5         53.7  

(a)  Costs related to the spin-off of BHSH include external professional, legal and advisory fees.




3
 
THE BRINK’S COMPANY
and subsidiaries

Condensed Consolidated Statements of Operations (a)
 (Unaudited)
 
Year Ended December 31, 2007
 
   
Three Months Ended
      
(In millions, except per share amounts)
  
March 31,
2007
    
June 30,
2007
    
September 30,
2007
    
December 31,
2007
    
Full Year
  
Revenues
   $ 625.8       659.3       692.7       756.8       2,734.6  
Cost and expenses:
                                        
Cost of revenues
     504.5       539.6       557.8       593.0       2,194.9  
Selling, general and administrative expenses
     85.2       92.2       97.3       105.1       379.8  
Total expenses
     589.7       631.8       655.1       698.1       2,574.7  
Other operating income (loss), net
     0.4       1.1       (2.3 )     1.9       1.1  
                                         
Operating profit
     36.5       28.6       35.3       60.6       161.0  
                                         
Interest expense
     (2.5 )     (2.9 )     (2.5 )     (2.9 )     (10.8 )
Interest and other income, net
     1.6       2.1       3.0       3.8       10.5  
Income from continuing operations before
                                        
income taxes and minority interest
     35.6       27.8       35.8       61.5       160.7  
Provision for income taxes
     14.8       10.1       17.2       17.4       59.5  
Minority interest
     7.0       3.8       3.7       8.3       22.8  
                                         
Income from continuing operations
     13.8       13.9       14.9       35.8       78.4  
                                         
Income from discontinued operations, net of tax
     14.9       14.4       11.0       18.6       58.9  
                                         
Net income
   $ 28.7       28.3       25.9       54.4       137.3  
Basic earnings per common share:
                                        
Continuing operations
   $ 0.30       0.30       0.32       0.77       1.68  
  Discontinued operations
     0.32       0.31       0.24       0.40       1.27  
Net income
     0.62       0.61       0.56       1.17       2.95  
Diluted earnings per common share:
                                        
Continuing operations
   $ 0.29       0.29       0.32       0.76       1.67  
Discontinued operations
     0.32       0.31       0.23       0.40       1.25  
Net income
     0.61       0.60       0.55       1.15       2.92  
Weighted-average common shares outstanding:
                                        
Basic
     46.3       46.5       46.6       46.7       46.5  
Diluted
     46.9       47.1       47.1       47.1       47.0  

(a)  Reflects reclassification of the results of operations of BHS from continuing operations to discontinued operations.


4

THE BRINK’S COMPANY
and subsidiaries
 
Supplemental Financial Information (continued)
(Unaudited)
 
INCOME FROM DISCONTINUED OPERATIONS
 
Year Ended December 31, 2007
   
Three Months Ended
      
(In millions)
  
March 31,
2007
    
June 30,
2007
    
September 30,
2007
    
December 31,
 2007
    
Full Year
  
Spin-off of BHSH:
                              
        Results of BHS operations
   $ 27.8       30.5       25.2       29.4       112.9  
Brink’s United Kingdom cash handling operations:
                                        
 Gain on sale
     -       -       0.7       0.8       1.5  
 Results of operations
     (2.5 )     (8.3 )     (3.1 )     -       (13.9 )
Adjustments to contingent liabilities of former operations
     0.4       1.6       (1.7 )     (0.4 )     (0.1 )
Income from discontinued operations before income taxes
     25.7       23.8       21.1       29.8       100.4  
Provision for income taxes
     10.8       9.4       10.1       11.2       41.5  
Income from discontinued operations
   $ 14.9       14.4       11.0       18.6       58.9  


 
5

 
THE BRINK’S COMPANY
and subsidiaries

Condensed Consolidated Statements of Operations (a)
 (Unaudited)

   
Years Ended December 31,
(In millions, except per share amounts)
  
2006
    
2005
    
2004
  
Revenues
   $ 2,354.3       2,113.3       1,897.9  
Cost and expenses:
                        
Cost of revenues
     1,893.4       1,778.2       1,574.7  
Selling, general and administrative expenses
     356.4       310.9       270.9  
Total expenses
     2,249.8       2,089.1       1,845.6  
Other operating income, net
     6.2       13.3       10.0  
                         
Operating profit
     110.7       37.5       62.3  
                         
Interest expense
     (12.0 )     (17.4 )     (19.7 )
Interest and other income, net
     16.9       9.3       8.0  
  Income from continuing operations before
                        
income taxes and minority interest
     115.6       29.4       50.6  
Provision for income taxes
     44.2       18.4       12.9  
Minority interest
     18.3       14.3       12.4  
                         
Income (loss) from continuing operations
     53.1       (3.3 )     25.3  
Income from discontinued operations, net of tax
     534.1       151.1       96.2  
Cumulative effect of change in accounting principle
     -       (5.4 )     -  
                         
Net income
   $ 587.2       142.4       121.5  
Basic earnings (loss) per common share:
                        
Continuing operations
   $ 1.06       (0.06 )     0.46  
  Discontinued operations
     10.69       2.69       1.76  
  Cumulative effect of change in accounting  principle
     -       (0.10 )     -  
Net income
     11.75       2.53       2.23  
Diluted earnings (loss) per common share:
                        
 Continuing operations
   $ 1.05       (0.06 )     0.46  
 Discontinued operations
     10.58       2.69       1.74  
Cumulative effect of change in accounting  principle
     -       (0.10 )     -  
Net income
     11.64       2.53       2.20  
Weighted-average common shares outstanding:
                        
Basic
     50.0       56.3       54.6  
Diluted
     50.5       56.3       55.3  

(a)  Reflects reclassification of the results of operations of BHS from continuing operations to discontinued operations.

 

6