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
 
 

GAAP
Revenues $ 979 729 34 % $ 1,893 1,465 29 %
Segment operating profit (a) 37 44 (17 ) 89 79 12
Non-segment expense (16 ) (13 ) 29 (31 ) (24 ) 32
Operating profit 20 32 (35 ) 57 55 4
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
 

Non-GAAP (c)
Revenues $ 979 729 34 % $ 1,893 1,465 29 %
Segment operating profit (a) 48 42 13 100 82 21
Non-segment expense (16 ) (15 ) 12 (32 ) (27 ) 15
Operating profit 32 28 13 68 55 24
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.
 

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Summary Reconciliation of Second-Quarter GAAP to Non-GAAP EPS*
         
  Second Quarter   First Half

2011
 

2010

2011
 

2010
GAAP EPS $ 0.11 $ 0.42 $ 0.50 $ 0.32
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 EPS $ 0.27 $ 0.30 $ 0.58 $ 0.53
                 

*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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