Brink’s Reports Third-Quarter Earnings

The Brink’s Company (NYSE: BCO), a global leader in security-related services, reported third-quarter GAAP earnings from continuing operations of $32 million versus $22 million in 2010 ($.66 versus $.45 per share) on 28% revenue growth. GAAP results include net income totaling $7 million ($.14 per share after tax) related primarily to acquisitions, dispositions and income tax adjustments.

Non-GAAP earnings from continuing operations were $25 million versus $22 million in 2010 ($.52 versus $.46 per share). Non-GAAP organic revenue, which excludes the impact of acquisitions, dispositions and currency, increased 9%. Results are summarized below.

		Third Quarter										Nine Months
(In millions, except per share amounts)		2011				2010			% Change			2011				2010			% Change
GAAP
Revenues		$	996			776			28	%		$	2,888			2,241			29	%
Segment operating profit (a)			70			58			21				159			137			16
Non-segment expense			(8	)		(14	)		(45	)			(39	)		(38	)		3
Operating profit			63			44			42				120			99			21
Income from continuing operations (b)			32			22			45				56			38			48
Diluted EPS from continuing operations (b)			.66			.45			47				1.16			.77			51
Non-GAAP (c)
Revenues		$	996			776			28	%		$	2,888			2,241			29	%
Segment operating profit (a)			71			58			22				171			140			22
Non-segment expense			(17	)		(15	)		12				(49	)		(43	)		14
Operating profit			54			43			26				122			98			25
Income from continuing operations (b)			25			22			14				53			48			10
Diluted EPS from continuing operations (b)			.52			.46			13				1.10			.98			12

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.

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Summary Reconciliation of Third-Quarter GAAP to Non-GAAP EPS*
		Third Quarter								Nine Months
		2011				2010				2011				2010
GAAP EPS		$	.66			$	.45			$	1.16			$	.77
Exclude gains on asset sales, acquisition and disposition			(.14	)			-				(.20	)			-
Exclude Belgium settlement charge			-				-				.13				-
Exclude U.S. tax valuation allowance release			(.09	)			-				(.09	)			-
Exclude income tax charge related to U.S. healthcare legislation			-				-				-				.28
Adjust quarterly tax rate to full-year average rate			.08				.02				.08				(.05	)
Other			.01				(.01	)			.02				(.02	)
Non-GAAP EPS		$	.52			$	.46			$	1.10			$	.98

*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 segment operating profit rose 22% ($13 million) while the segment profit margin declined from 7.5% to 7.1%. The profit improvement was driven by organic growth ($5 million), the favorable effect of acquisitions and dispositions ($5 million), and favorable currency translation ($3 million). The decline in segment margin rate reflects the addition of $105 million of low-margin revenue related to the Mexico acquisition. Excluding Mexico, the margin rate improved to 7.7%.

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