The Brink’s Company (NYSE: BCO), a global leader in security-related services, reported second-quarter GAAP earnings from continuing operations of $5 million versus $21 million in 2010 ($.11 versus $.42 per share) on 34% revenue growth. Results include a charge of $10 million ($.13 per share after tax) related to the 2010 exit of cash-in-transit operations in Belgium.
Non-GAAP earnings from continuing operations were $13 million versus $15 million in 2010 ($.27 per share versus $.30). Non-GAAP organic revenue, which excludes the impact of acquisitions, dispositions and currency translation, increased 9%. Results are summarized below.
|Second Quarter||First Half|
|(In millions, except per share amounts)||2011||2010||% Change||2011||2010||% Change|
|Segment operating profit (a)||37||44||(17||)||89||79||12|
|Income from continuing operations (b)||5||21||(74||)||24||16||52|
|Diluted EPS from continuing operations (b)||0.11||0.42||(74||)||0.50||0.32||56|
|Segment operating profit (a)||48||42||13||100||82||21|
|Income from continuing operations (b)||13||15||(11||)||28||26||7|
|Diluted EPS from continuing operations (b)||0.27||0.30||(10||)||0.58||0.53||9|
|Amounts may not add due to rounding.|
|(a)||Segment operating profit is a non-GAAP measure that is reconciled to operating profit, a GAAP measure, on pages 3 and 6. Disclosure of segment operating profit enables investors to assess operating performance excluding non-segment income and expense.|
|(b)||Amounts reported are attributable to shareholders of The Brink’s Company and exclude earnings related to noncontrolling interests.|
|(c)||Non-GAAP results are reconciled to GAAP results on pages 14 and 15.|
|Summary Reconciliation of Second-Quarter GAAP to Non-GAAP EPS*|
|Second Quarter||First Half|
|Exclude income tax charge related to U.S. healthcare legislation||-||-||-||0.28|
|Adjust quarterly tax rate to full-year average rate||0.01||(0.08||)||-||(0.07||)|
|Exclude Belgium settlement charge||0.13||-||0.13||-|
|Exclude Mexico employee benefit settlement loss||0.01||-||0.01||-|
|Exclude gains on sale of investment securities and acquisition||-||-||(0.06||)||-|
|Exclude impact of net monetary asset remeasurement in Venezuela||-||(0.02||)||-||0.04|
|Exclude royalties from former home security unit||-||(0.02||)||-||(0.05||)|
*Non-GAAP results are reconciled to the applicable GAAP results in more detail on pages 14 and 15. Amounts may not add due to rounding.Non-GAAP earnings declined as a segment operating profit increase of 13% ($6 million) was more than offset by increased borrowing costs ($4 million), higher Non-Segment expenses ($2 million) and higher noncontrolling interest ($2 million). The segment profit increase was driven by improvement in Global Services, currency ($6 million) and acquisitions and dispositions ($2 million), partially offset by restructuring and severance charges (up $6 million) and accounting corrections (up $4 million).
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