RICHMOND, Va., April 28, 2021 (GLOBE NEWSWIRE) -- The Brink’s Company (NYSE:BCO), the global leader in total cash management, route-based secure logistics and payment solutions, today announced results for the first quarter of 2021, which are summarized below.
| First-Quarter 2021 | GAAP | Non-GAAP | 6.3 | 9.2 | % | 200 bps | 240 bps | ||||||||||||||||
| Net Income / Adjusted EBITDA(a) | $ | 13 | fav | $ | 137 | 32% | 36% | ||||||||||||||||
| EPS | $ | 0.25 | fav | $ | 0.82 | 64% | 76% | ||||||||||||||||
| (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 2021 results at 2020 exchange rates. |
Doug Pertz, president and chief executive officer, said: “Our strong first-quarter results reflect the highly successful integration of our G4S acquisitions and fixed cost reductions, which more than offset the unexpected impact of extended pandemic-related shutdowns, most notably in Europe. We are encouraged by these results and the fact that organic revenue declined by only 6% compared to last year, when the pandemic had not yet had a material impact on our business.
“We expect organic and inorganic revenue and profit growth to accelerate as we move through 2021, especially in the second half. Our confidence is based on continued economic recovery from pandemic lows, the realization of full-year benefits from the G4S acquisitions, the sustainability and increased impact of our cost reductions, and normal seasonality. We expect full-year results to be further supplemented by our April 1 acquisition of PAI, which will be additive to the 2021 non-GAAP guidance we provided on February 23. At the midpoints of our increased guidance, we now expect revenue growth of 21%, operating profit growth of 34% and EPS growth of 32%. Adjusted EBITDA is expected to be approximately $705 million at the midpoint, an increase of 25%.
“Once again, I want to thank our global team, which continues to demonstrate its ability to execute very effectively under difficult conditions. Cash usage, even during the pandemic, continues to be strong with U.S. cash in circulation up 17% year-over-year. We are well-positioned to deliver accelerated growth as economies reopen and as we execute on our 3-year strategic plan, which includes continued Strategy 1.0 organic growth initiatives, potential Strategy 1.5 acquisitions, and Strategy 2.0 digital cash management solutions. We look forward to disclosing more information on these strategies and our financial targets when we host an Investor Day in October.”
PAI Acquisition
On April 1, Brink’s completed its acquisition of PAI, Inc., the largest privately-held provider of ATM services in the U.S., for $213 million. On a full-year basis, PAI is expected to generate adjusted EBITDA of approximately $30 million annually. Given the acquisition’s closing date of April 1, PAI is expected to add approximately $22 million of adjusted EBITDA to the company’s 2021 results. Based in Dallas, Texas, PAI employs 225 people across three major U.S. locations and another 12 field locations. The acquisition was financed using available cash and the company’s existing credit facility.
PAI offers a full range of managed services and tools for ATM owner-operators and PAI-owned ATMs, including its SaaS-based technology platform (AMP+), which maximizes ATM network performance and provides real-time visibility. PAI’s field services are built around its VTS (Vantage Technical Services) cash management and maintenance solution for ATM devices. Core services include remote device management, transaction processing, bank sponsorship, technology updates and product development. PAI maintains its own software development and services team in Billings, Montana.
A primary goal of Brink’s Strategy 2.3 is to offer ATM solutions integrated with other Brink’s solutions to provide complete, end-to-end cash management. PAI provides Brink’s with a platform of proprietary ATM services and more than 100,000 ATM service locations in the U.S., accelerating the company's execution of Strategy 2.3 and other 2.0 initiatives in North America. PAI also offers significant opportunities for cross-selling services. In Europe, Brink’s has entered into agreements to take full ownership and provide managed services to financial institutions for more than 11,000 ATMs. With PAI’s capabilities, Brink’s will offer a more complete and technology-rich range of bundled ATM services to U.S. retailers, banks and credit unions through multi-year service contracts that generate recurring revenue streams.
