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.
 

Page 1
       
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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