| (In millions, except for per share amounts) | Fourth-Quarter 2020 (vs. 2019) | ||||||||||||
| GAAP | Change | Non-GAAP | Change | Constant Currency Change(b) | |||||||||
| Revenue | $ | 1,022 | 9% | $ | 1,022 | 9% | 13% | ||||||
| Operating Profit | $ | 112 | 53% | $ | 145 | 26% | 29% | ||||||
| Operating Margin | 11.0 | % | 320 bps | 14.2 | % | 180 bps | 170 bps | ||||||
| Net Income / Adjusted EBITDA(a) | $ | 25 | fav | $ | 194 | 25% | 28% | ||||||
| EPS | $ | 0.50 | fav | $ | 1.64 | 39% | 44% | ||||||
| (In millions, except for per share amounts) | Full Year 2020 (vs. 2019) | ||||||||||||
| GAAP | Change | Non-GAAP | Change | Constant Currency Change(b) | |||||||||
| Revenue | $ | 3,691 | —% | $ | 3,691 | —% | 7% | ||||||
| Operating Profit | $ | 214 | (10%) | $ | 381 | (3%) | 13% | ||||||
| Operating Margin | 5.8 | % | (60 bps) | 10.3 | % | (30 bps) | 70 bps | ||||||
| Net Income / Adjusted EBITDA(a) | $ | 16 | (45%) | $ | 566 | —% | 12% | ||||||
| EPS | $ | 0.33 | (40%) | $ | 3.76 | (3%) | 18% | ||||||
(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 2020 results at 2019 exchange rates.
Doug Pertz, president and chief executive officer, said: “Our fourth-quarter results clearly demonstrate the resiliency of our business, the persistent strength of cash usage around the world, and our strong rebound from the pandemic bottom. Despite the pandemic’s continued impact on near-term revenue, we expect strong growth in our financial results as we move through 2021, with revenue and profit growth continuing to accelerate, especially in the second half. Our confidence is based on continued retail recovery from pandemic lows, the realization of full-year benefits from the G4S acquisitions, and the sustainability of our cost reductions.
“At the midpoints of our non-GAAP guidance, we expect revenue growth of 17%, operating profit growth of 30% and EPS growth of 26%. Adjusted EBITDA is expected to be in a range between $640 million and $730 million, an increase of 21% at the mid-point.
“In summary, our team continues to execute very effectively under difficult conditions, global cash usage remains strong, and we are well-positioned to deliver accelerated organic revenue and profit growth as economies reopen and as we execute on our strategic initiatives.”
G4S Acquisition Update In February, Brink’s completed its acquisition of the majority of the cash operations of U.K.-based G4S plc. The completed acquisition includes the G4Si global logistics business and cash operations in 17 markets: the Netherlands, Belgium, Ireland, Hong Kong, Cyprus, Romania, the Czech Republic, Malaysia, the Dominican Republic, the Philippines, Indonesia, Latvia, Lithuania, Estonia, Macau, Luxembourg and Kuwait. In 2019, the acquired G4S businesses generated combined pro forma revenue of approximately $800 million and adjusted EBITDA of approximately $115 million.
New Segment Reporting Recent changes to the Brink’s organizational and management structure (related primarily to the G4S acquisition) resulted in changes to the company’s operating segments for financial reporting purposes during the fourth quarter. Brink’s now reports results for four segments: North America (U.S. and Canada), Latin America (including Mexico), Europe and Rest of World. Previously, Mexico was included in the North America segment and Europe was included in Rest of World.
Conference Call Brink’s will host a conference call on February 23 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/10151538/e1068759fa 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 23, 2021 at 877-344-7529 (in the U.S.) or 412-317-0088 (international). The conference number is 10151538. An archived version of the webcast will be available online in the Investor Relations section of http://investors.brinks.com.| 2021 Guidance (Unaudited) (In millions, except for percentages and per share amounts) | ||||||
| 2021 GAAP Outlook(b) | Reconciling Items(a) | 2021 Non-GAAP Outlook(a) | ||||
| Revenues | $ | 4,100 – 4,500 | — | 4,100 – 4,500 | ||
| Operating profit | 405 – 495 | 45 | 450 – 540 | |||
| EPS from continuing operations attributable to Brink's | $ | 2.80 – 3.90 | ~1.40 | 4.15 – 5.35 | ||
| Operating profit margin | 9.9% – 11.0% | ~1.0% | 11.0% – 12.0% | |||
| Free cash flow before dividends | 175 – 265 | |||||
| Adjusted EBITDA | 640 – 730 | |||||
| Adjusted EBITDA margin | 15.6% – 16.2% | |||||
| (a) | The 2021 Non-GAAP outlook amounts exclude certain forecasted Non-GAAP adjusting items, such as intangible asset amortization and U.S. retirement plan costs. We have not forecasted the impact of highly inflationary accounting on our Argentina operations in 2021 or other potential Non-GAAP adjusting items for which the timing and amounts are currently under review, such as future restructuring actions. We have also not forecasted changes in cash held for customer obligations or proceeds from the sale of property, equipment and investments in 2021. The 2021 Non-GAAP outlook amounts for operating profit, EPS from continuing operations, free cash flow before dividends and Adjusted EBITDA cannot be reconciled to GAAP without unreasonable effort. We cannot reconcile these amounts to GAAP because we are unable to accurately forecast the impact of highly inflationary accounting on our Argentina operations in 2021 or other potential Non-GAAP adjusting items for which the timing and amounts are currently under review, such as future restructuring actions. We are also unable to forecast changes in cash held for customer obligations or proceeds from the sale of property, equipment and investments in 2021. | |
| (b) | The 2021 GAAP outlook excludes any forecasted impact from highly inflationary accounting on our Argentina operations as well as other potential Non-GAAP adjusting items for which the timing and amounts are currently under review, such as future restructuring actions. | |
The Brink’s Company and subsidiaries (In millions, except percentages and per share amounts) (Unaudited)
Fourth-Quarter 2020 vs. 2019
| GAAP | Organic | Acquisitions / | % Change | |||||||||||||||||||
| 4Q'19 | Change | Dispositions(a) | Currency(b) | 4Q'20 | Total | Organic | ||||||||||||||||
| Revenues: | ||||||||||||||||||||||
| North America | $ | 352 | (26 | ) | 3 | 1 | 329 | (7 | ) | (7 | ) | |||||||||||
| Latin America | 337 | (6 | ) | 6 | (51 | ) | 286 | (15 | ) | (2 | ) | |||||||||||
| Europe | 137 | (19 | ) | 102 | 15 | 236 | 72 | (14 | ) | |||||||||||||
| Rest of World | 109 | (11 | ) | 69 | 3 | 171 | 56 | (10 | ) | |||||||||||||
| Segment revenues(g) | $ | 936 | (62 | ) | 180 | (32 | ) | 1,022 | 9 | (7 | ) | |||||||||||
| Other items not allocated to segments(d) | — | — | — | — | — | — | — | |||||||||||||||
| Revenues - GAAP | $ | 936 | (62 | ) | 180 | (32 | ) | 1,022 | 9 | (7 | ) | |||||||||||
| Operating profit: | ||||||||||||||||||||||
| North America | $ | 33 | 13 | — | — | 46 | 39 | 38 | ||||||||||||||
| Latin America | 93 | 3 | 1 | (16 | ) | 80 | (14 | ) | 3 | |||||||||||||
| Europe | 13 | — | 15 | 2 | 29 | fav | (2 | ) | ||||||||||||||
| Rest of World | 22 | 6 | 9 | 1 | 36 | 68 | 26 | |||||||||||||||
| Segment operating profit | 161 | 20 | 24 | (14 | ) | 192 | 19 | 13 | ||||||||||||||
| Corporate(c) | (45 | ) | (11 | ) | — | 10 | (46 | ) | 3 | 25 | ||||||||||||
| Operating profit - non-GAAP | $ | 116 | 9 | 24 | (4 | ) | 145 | 26 | 8 | |||||||||||||
| Other items not allocated to segments(d) | (42 | ) | 1 | 7 | 1 | (33 | ) | (22 | ) | (2 | ) | |||||||||||
| Operating profit (loss) - GAAP | $ | 73 | 10 | 32 | (3 | ) | 112 | 53 | 13 | |||||||||||||
| GAAP interest expense | (22 | ) | (26 | ) | 19 | |||||||||||||||||
| GAAP interest and other income (expense) | (31 | ) | < | |||||||||||||||||||
