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Brink’s Reports Fourth-Quarter Results

Stocks in this article: BCO

The Brink’s Company (NYSE: BCO), a global leader in security-related services, reported fourth-quarter earnings and full-year 2011 earnings.

Fourth-Quarter Highlights

GAAP:

  • Revenue $997 million, up 13% (9% organic growth), EPS: $.36 vs. $.40
  • Segment profit $72 million, up 1% (margin 7.3% vs. 8.2%)
  • International margin 8.9% vs. 8.3%, North America 2.3% vs. 7.7%

Non-GAAP:

  • Revenue $997 million, up 13% (9% organic growth), EPS: $.56 vs. $.80
  • Segment profit $74 million, down 13% (margin 7.4% vs. 9.6%)
  • International margin 8.9% vs. 10.4%, North America 2.6% vs. 7.5%
  • U.S. retirement costs excluded from non-GAAP results

Other:

  • Management reiterates strategy and 2012 outlook
  • Mexico acquisition profitable, on track for continued improvement
  • 2012 U.S. pension plan contribution to be funded with company stock

Tom Schievelbein, interim president and chief executive officer, said: “Fourth-quarter results reflect continued strong growth in Latin America that was more than offset by the persistence of disappointing results in North America and Europe, both of which continue to face difficult market conditions. Our near-term goal is to improve profits by demonstrating meaningful progress against our three primary strategic objectives-- growing high-value services, investing in emerging markets, and maximizing profits in North America and Europe.

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“We’re confident that continued expansion of our Global Services business will drive growth in high-value services, and our Mexico acquisition is on track to contribute to continued profit growth in Latin America.

“In North America, we’ve taken steps to reduce costs and improve efficiency and customer service. These and other actions should boost profits by $10 million to $20 million on an annualized basis. Similar actions in Europe should lead to a slight improvement in 2012, with additional improvement in 2013 and later years. We are committed to creating value for shareholders, and will accelerate efforts to deliver on this commitment. In 2012, we expect our segment margin rate to be in a range between 6.5% and 7.0%. Annual organic revenue growth should be 5% to 8% and we anticipate unfavorable currency impact of 3% to 5%.”

 
Summary Reconciliation of GAAP to Non-GAAP EPS
  Fourth Quarter   Full Year
2011   2010 2011   2010
GAAP EPS $ 0.36 $ 0.40 $ 1.52 $ 1.17
Exclude U.S. retirement plan expenses 0.09 0.07 0.37 0.28
Exclude costs related to former CEO retirement 0.05 - 0.05 -
Exclude Belgium exit charges - 0.16 0.13 0.16
Exclude gains on asset sales, acquisitions and dispositions - 0.12 (0.20 ) 0.12
U.S. healthcare legislation charge - - - 0.29
Adjust quarterly tax rate to full-year average rate 0.05 0.05 - -
Other 0.01 - 0.03 (0.02 )
Non-GAAP EPS* $ 0.56 $ 0.80 $ 1.90 $ 1.99
                             

*Non-GAAP results are reconciled to the applicable GAAP results in more detail on pages 13 - 17. Amounts may not add due to rounding.

 
Summary of Fourth-Quarter and Full-Year Results
  Fourth Quarter     Full Year
(In millions, except per share amounts)   2011     2010   % Change   2011     2010   % Change
 
 

GAAP

Revenues $ 997 881 13

 %

 

$ 3,886 3,122 24

 %

 

Segment operating profit(a) 72 72 1 231 209 11
Non-segment expense (21 ) (25 ) (16 ) (60 ) (63 ) (4 )
Operating profit 51 47 10 171 146 17
Income from continuing operations (b) 17 19 (10 ) 73 57 29
Diluted EPS from continuing operations (b) 0.36 0.40 (10 ) 1.52 1.17 30

 

Non-GAAP (c)

Revenues $ 997 881 13

 %

 

$ 3,886 3,122 24

 %

 

Segment operating profit (a) 74 85 (13 ) 247 225 10
Non-segment expense (11 ) (10 ) 3 (41 ) (36 ) 12
Operating profit 63 74 (15 ) 206 188 9
Income from continuing operations (b) 27 38 (29 ) 92 96 (5 )
Diluted EPS from continuing operations (b)     0.56     0.80     (30 )       1.90     1.99     (5 )  
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 8 and 9. 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 13 – 17.

 

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