BRINKS CO
For the period ended Sep 30, 2024. Filed Nov 6, 2024.
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A company's report for each of its first three quarters. The financial statements are not audited. It shows how the business has moved since the last annual report, and what management says changed.
Sep 30, 2024 · Filed Nov 6, 2024
BCO$110.25+0.2%Stored close · as of Nov 6, 2026
What changed in Management’s Discussion and Analysis?
Read the current filingPrevious report: 10-Q
Period ended 2024-06-30; filed 2024-08-07.
0000078890-24-000270
Item 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONSCurrent report: 10-Q
Period ended 2024-09-30; filed 2024-11-06.
0000078890-24-000348
Item 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONSThe baseline is this issuer’s latest earlier reporting period of the same form that was filed before the current report. A previous 10-Q is a different quarter, not a year-over-year comparison. Amendments are excluded.
Compared 237 previous paragraphs and 257 current paragraphs.
106 unchanged; 73 reworded; 75 added; 54 removed; 4 previous and 3 current paragraphs rearranged.
Tables are not compared: 25 previous and 25 current tables excluded. Dates, whitespace, punctuation and numbering changes are ignored; changes to financial figures remain significant.
A changed paragraph is not evidence that risk increased or decreased. An unchanged paragraph does not establish that risk stayed the same.
Added paragraphs (75)
Current report
(b)These measures are supplemental financial measures that are not required by, or presented in accordance with, GAAP. See page 50 for further information on these non-GAAP measures. and reconciliations to the applicable GAAP measures
Current report
Analysis of Consolidated Results: Third Quarter 2024 versus Third Quarter 2023
Current report
Consolidated Operating Profit and Operating Profit Margin Operating profit margin decreased from 11.2% to 8.9%. Operating profit decreased $26.1 million due mainly to:
Current report
•unfavorable changes in currency exchange rates ($50.7 million), driven by the Argentine peso,
Current report
•higher corporate expenses on an organic basis ($13.2 million),
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•transformation initiative costs ($9.5 million), and
Current report
•an organic decrease in North America ($6.3 million),
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•organic increases in Latin America ($47.7 million), Europe ($3.8 million), and Rest of World ($1.0 million).
Current report
Consolidated Income from Continuing Operations Attributable to Brink’s and Related Per Share Amounts Income from continuing operations attributable to Brink’s shareholders decreased $16.8 million to $28.9 million due to the decrease in operating profit mentioned above and higher interest expense ($9.2 million), partially offset by lower income tax expense ($10.1 million), higher interest and other nonoperating income ($7.6 million) and lower noncontrolling interest ($0.8 million). Earnings per share from continuing operations was $0.65, down from $0.97 in the third quarter of 2023.
Current report
Analysis of Consolidated Results: Nine Months 2024 versus Nine Months 2023
Current report
Consolidated Operating Profit and Operating Profit Margin Operating profit margin increased from 8.9% to 9.3%. Operating profit increased $25.4 million due mainly to:
Current report
•organic increases in Latin America ($113.4 million), North America ($17.2 million), Europe ($10.3 million), and Rest of World ($4.1 million),
Current report
•lower corporate expenses on an organic basis ($2.6 million),
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•unfavorable changes in currency exchange rates ($114.8 million), driven by the Argentine peso, and
Current report
•transformation initiative costs ($21.5 million).
Current report
Analysis of Consolidated Results: Third Quarter 2024 versus Third Quarter 2023
Current report
Non-GAAP Consolidated Operating Profit and Non-GAAP Operating Profit Margin Non-GAAP operating profit margin decreased from 13.5% to 12.0%. Non-GAAP operating profit decreased $14.7 million due mainly to:
Current report
•unfavorable changes in currency exchange rates ($48.2 million), driven primarily by the Argentine peso,
Current report
•higher corporate expenses on an organic basis ($13.2 million), and
Current report
•an organic decrease in North America ($6.3 million),
Current report
•organic increases in Latin America ($47.7 million), Europe ($3.8 million), and Rest of World ($1.0 million)
Current report
Non-GAAP Consolidated Income from Continuing Operations Attributable to Brink’s and Related Per Share Amounts Non-GAAP income from continuing operations attributable to Brink’s shareholders decreased $29.9 million to $67.6 million due to the operating profit decrease mentioned above, lower interest and other nonoperating income ($12.6 million), and higher interest expense ($9.4 million), partially offset by lower income tax expense ($5.9 million), and lower noncontrolling interest ($0.9 million). Earnings per share from continuing operations was $1.51, down from $2.07 in the third quarter of 2023.
Current report
Analysis of Consolidated Results: Nine Months 2024 versus Nine Months 2023
Current report
Non-GAAP Consolidated Operating Profit and Non-GAAP Operating Profit Margin Non-GAAP operating profit margin increased from 11.7% to 12.1%. Non-GAAP operating profit increased $26.7 million due mainly to:
Current report
•organic increases in Latin America ($113.4 million), North America ($17.2 million), Europe ($10.3 million), and Rest of World ($4.1 million), and
Current report
•lower corporate expenses on an organic basis ($2.6 million),
Current report
•unfavorable changes in currency exchange rates ($122.0 million), driven primarily by the Argentine peso.
Current report
(a)Organic change and organic growth are supplemental financial measures that are not required by, or presented in accordance with, GAAP, and are described in more detail on page 50.
Current report
(d)See pages 42-44 for further information, where these items are discussed in more detail.
Current report
Revenues increased 4% ($14.5 million) due to a 3% organic increase ($10.4 million) and the impact of acquisitions ($4.6 million), partially offset by the unfavorable impact of currency exchange rates ($0.5 million). Organic revenue increased primarily due to price increases and growth in AMS and DRS revenue in the U.S., partially offset by lower BGS revenue. Operating profit decreased 13% ($6.0 million) due to a 13% organic decrease ($6.3 million) partially offset by the impact of acquisitions $0.3 million. The organic decrease was primarily driven by technology and operational investments that impacted labor and fleet productivity as well as the net impact of revenue mix.
Current report
Income and expenses not allocated to segments are reported either as “Corporate Expenses” or “Other Items not Allocated to Segments.”
Current report
Other Items not Allocated to Segments include income and expenses that are not necessary to operate our business in the ordinary course and are not considered when the CODM evaluates segment results. These include non-recurring as well as certain recurring costs and gains which are not considered to be part of the Company's operations and revenue generating activities. Each of the items in the “Other Items Not Allocated to Segments” table is excluded from non-GAAP operating profit.
Current report
Costs associated with certain reorganization and restructuring actions are excluded from reported non-GAAP results. These items include primarily severance charges and asset impairment losses. The 2022 Global Restructuring Plan was designed to, among other things, enable growth, reduce costs and related infrastructure, and to mitigate the potential impact of external economic conditions in light of the COVID-19 pandemic. Other restructuring actions were primarily in response to the COVID-19 pandemic and a decision to exit a line of business in our Canada operating unit. Due to the unusual nature of the underlying events that led to these actions, the charges are not considered part of the Company's operations and revenue generating activities. Management has excluded these amounts when evaluating internal performance. As such, they have not been allocated to segment or Corporate results and are excluded from non-GAAP results.
Current report
As a result of other restructuring actions, we recognized net costs of $4.6 million in the first nine months of 2023, primarily severance costs. We recognized $0.9 million in net costs in the first nine months of 2024. The actions were substantially completed in 2024.
Current report
Acquisitions and dispositions
Current report
Certain acquisition and disposition items are not part of the Company's operations and revenue generating activities. These items include non-cash amortization expense for acquisition-related intangible assets, as well as integration, transaction, restructuring and certain compensation costs. All of the items are significantly impacted by the timing and nature of our acquisitions and dispositions, and many are inconsistent in amount and frequency. Management has excluded these amounts when evaluating internal performance. Therefore, we have not allocated these amounts to segment or Corporate results and have excluded these amounts from non-GAAP results.
Current report
These items are described below:
Current report
•Amortization expense for acquisition-related intangible assets was $43.8 million in the first nine months of 2024.
Current report
•Amortization expense for acquisition-related intangible assets was $43.2 million in the first nine months of 2023.
Current report
Chile antitrust matter We recognized an estimated loss of $9.5 million in the third quarter of 2021. In the first nine months of 2024, we recognized a $1.1 million adjustment and, in the first nine months of 2023, a $0.4 million adjustment to the estimated loss. The post-2021 adjustments were primarily related to changes in currency rates as well as third-party legal costs associated with this matter. In the third quarter of 2024, we determined it was appropriate to exclude third-party costs associated with this matter from non-GAAP results, which for the current quarter primarily consisted of legal costs. Overall, these charges related to a potential fine associated with an investigation by the Chilean Fiscalía Nacional Económica or "FNE" (the Chilean antitrust agency). The investigation is related to potential anti-competitive practices among competitors in the cash logistics industry in Chile. These costs are not considered part of the Company's operations and revenue generating activities. Additionally, the nature of these amounts, including the estimated loss and associated third-party costs, is such that they are not reasonably likely to recur within two years, nor were there similar charges within the prior two years of the underlying event. Management has excluded these amounts when evaluating internal performance. Therefore, these amounts have not been allocated to segment or Corporate results and are excluded from non-GAAP results. See Note 14 for details.
Showing the first 40 of 75 passages. Open the source sections for the rest.
Removed paragraphs (54)
Previous report
Definition of Organic Growth
Previous report
(b)Non-GAAP results are reconciled to the applicable GAAP results on pages 48–50 and 51.
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Analysis of Consolidated Results: Second Quarter 2024 versus Second Quarter 2023
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•organic increases in Latin America ($38.2 million), North America ($13.7 million), and Europe ($3.1 million), and
Previous report
•lower corporate expenses on an organic basis ($13.4 million),
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•unfavorable changes in currency exchange rates ($43.8 million), driven by the Argentine peso,
Previous report
•transformation initiative costs ($7.2 million), and
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•an organic decrease in Rest of World ($1.6 million).
Previous report
Consolidated Income from Continuing Operations Attributable to Brink’s and Related Per Share Amounts Income from continuing operations attributable to Brink’s shareholders increased $14.1 million to $46.3 million due to the increase in operating profit mentioned above and higher interest and other nonoperating income ($8.4 million), partially offset by higher interest expense ($5.4 million) and higher noncontrolling interest ($0.6 million). Earnings per share from continuing operations was $1.03, up from $0.68 in the second quarter of 2023.
Previous report
Analysis of Consolidated Results: First Half 2024 versus First Half 2023
Previous report
•organic increases in Latin America ($65.7 million), North America ($23.5 million), Europe ($6.5 million), and Rest of World ($3.1 million),
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•lower corporate expenses on an organic basis ($15.8 million),
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•unfavorable changes in currency exchange rates ($64.1 million), driven by the Argentine peso and
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•transformation initiative costs ($12.0 million).
Previous report
Analysis of Consolidated Results: Second Quarter 2024 versus Second Quarter 2023
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Non-GAAP Consolidated Revenues There is no difference between GAAP and Non-GAAP revenue amounts for the periods presented. See above for details.
Previous report
Non-GAAP Consolidated Operating Profit Non-GAAP operating profit increased $23.8 million due mainly to:
Previous report
•organic increases in Latin America ($38.2 million), North America ($13.7 million), and Europe ($3.1 million), and
Previous report
•lower corporate expenses on an organic basis ($13.4 million),
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•unfavorable changes in currency exchange rates ($43.7 million), driven primarily by the Argentine peso, and
Previous report
•an organic decrease in Rest of World ($1.6 million).
Previous report
Non-GAAP Consolidated Income from Continuing Operations Attributable to Brink’s and Related Per Share Amounts Non-GAAP income from continuing operations attributable to Brink’s shareholders increased $15.2 million to $75.4 million due to the operating profit increase mentioned above and higher interest and other nonoperating income ($7.7 million), partially offset by higher income tax expense ($10.0 million), higher interest expense ($5.7 million), and higher noncontrolling interest ($0.6 million). Earnings per share from continuing operations was $1.67, up from $1.27 in the second quarter of 2023.
Previous report
Analysis of Consolidated Results: First Half 2024 versus First Half 2023
Previous report
Non-GAAP Consolidated Revenues There is no difference between GAAP and Non-GAAP revenue amounts for the periods presented. See page 36 for details.
Previous report
Non-GAAP Consolidated Operating Profit Non-GAAP operating profit increased $41.4 million due mainly to:
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•organic increases in Latin America ($65.7 million), North America ($23.5 million), Europe ($6.5 million), and Rest of World ($3.1 million), and
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•lower corporate expenses on an organic basis ($15.8 million),
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•unfavorable changes in currency exchange rates ($73.8 million), driven primarily by the Argentine peso.
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(c)Segment revenues equal our total reported non-GAAP revenues.
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(e)See pages 41-43 for more information
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Revenues increased 2% ($18.2 million) primarily due to a 2% organic increase ($13.9 million) and the impact of acquisitions ($4.8 million). Organic revenue increased primarily due to price increases and growth in AMS and DRS revenue in the U.S., partially offset by volume reductions due to the rationalization of our customer portfolio to optimize profitability and lower BGS revenue. Operating profit increased $24.0 million due to a 31% organic increase ($23.5 million) and the impact of acquisitions ($0.5 million). The organic increase was primarily driven by cost productivity improvements in labor and other areas, including realizing benefits from transformation initiatives in the U.S., as well as lower security losses and increased revenue.
Previous report
Corporate expenses include corporate headquarters costs, regional management costs, currency transaction gains and losses, costs related to global initiatives and adjustments to reconcile segment accounting policies to U.S. GAAP.
Previous report
Management periodically implements restructuring actions in targeted sections of our business. As a result of these actions, we recognized net costs of $4.1 million in the first six months of 2023, primarily severance costs. We recognized $0.7 million in net costs in the first six months of 2024. The majority of the costs in both the 2024 and 2023 periods result from the exit of a line of business in a specific geography with most of the remaining costs due to management initiatives to address the COVID-19 pandemic.
Previous report
Acquisitions and dispositions Certain acquisition and disposition items that are not considered part of the ongoing activities of the business and are special in nature are consistently excluded from segment and non-GAAP results. These items are described below:
Previous report
•Amortization expense for acquisition-related intangible assets was $29.1 million in the first six months of 2024.
Previous report
•Amortization expense for acquisition-related intangible assets was $28.6 million in the first six months of 2023.
Previous report
Chile antitrust matter We recognized an estimated loss of $9.5 million in the third quarter of 2021 related to a potential fine. In the first six months of 2024, we recognized an additional $0.5 million adjustment and, in the first six months of 2023, an additional $0.4 million adjustment to our estimated loss. The adjustments resulted primarily from changes in currency rates. Due to the special nature of this matter, this charge has not been allocated to segment results and is excluded from non-GAAP results. See Note 14 for details.
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Other Operating Income (Expense)
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Effective Tax Rate
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Non-GAAP Results Reconciled to GAAP
Showing the first 40 of 54 passages. Open the source sections for the rest.
Reworded paragraphs (73)
Previous wording
We identify our operating segments based on how our chief operating decision maker (“CODM”) allocates resources, assesses performance and makes decisions. Our CODM is our President and Chief Executive Officer. Our CODM evaluates performance and allocates resources to each operating segment based on an operating profit or loss measure, excluding income and expenses not allocated to segments.
Current wording
We identify our operating segments based on how our chief operating decision maker (“CODM”) allocates resources, assesses performance and makes decisions. Our CODM is our President and Chief Executive Officer. Our CODM evaluates performance and allocates resources to each operating segment based on an operating profit or loss measure, excluding corporate expenses and other items not allocated to segments.
Previous wording
Consolidated Revenues Revenues increased $36.9 million due to organic increases in Latin America ($126.7 million), Europe ($25.6 million), North America ($10.4 million), and Rest of World ($4.0 million) and the favorable impact of acquisitions ($6.7 million), partially offset by the unfavorable impact of currency exchange rates ($136.5 million). The unfavorable currency impact was driven primarily by the Argentine peso. Revenues increased 14% on an organic basis primarily due to inflation-based price increases and organic growth in AMS and DRS revenue. See above for our definition of “organic growth.”
Current wording
Consolidated Revenues Revenues increased $31.1 million due to organic increases in Latin America ($117.1 million), Europe ($22.9 million), North America ($10.4 million), and Rest of World ($5.4 million) and the favorable impact of acquisitions ($6.5 million), partially offset by the unfavorable impact of currency exchange rates ($131.2 million). The unfavorable currency impact was driven primarily by the Argentine peso. Revenues increased 13% on an organic basis primarily due to inflation-based price increases and organic growth in AMS and DRS revenue. See our definition of “organic growth” on page 50.
Previous wording
Consolidated Costs and Expenses Cost of revenues decreased 1% to $937.8 million primarily due to the impact of currency exchange rates and the prior year impact of a large loss event in our BGS line of business, partially offset by the impact of higher revenue. Selling, general and administrative costs increased 14% to $194.3 million primarily due to organic increases in labor costs and costs related to transformation initiatives, partially offset by lower acquisition and restructuring related costs and the impact of currency exchange rates.
Current wording
Consolidated Costs and Expenses Cost of revenues increased 2% to $943.6 million primarily due to the impact of higher revenue partially offset by the impact of exchange rates. Selling, general and administrative costs increased 19% to $202.3 million primarily due to organic increases in labor costs and costs related to transformation initiatives, partially offset by the impact of currency exchange rates and lower acquisition and restructuring related costs.
Previous wording
Consolidated Revenues Revenues increased $87.6 million due to organic increases in Latin America ($243.8 million), Europe ($42.7 million), North America ($13.9 million), and Rest of World ($11.9 million) and the favorable impact of acquisitions ($8.6 million), partially offset by the unfavorable impact of currency exchange rates ($233.3 million). The unfavorable currency impact was driven primarily by the Argentine peso. Revenues increased 13% on an organic basis primarily due to inflation-based price increases and organic growth in AMS and DRS revenue. See above for our definition of “organic growth.”
Current wording
Consolidated Revenues Revenues increased $118.7 million due to organic increases in Latin America ($360.9 million), Europe ($65.6 million), North America ($24.3 million), and Rest of World ($17.3 million) and the favorable impact of acquisitions ($15.1 million), partially offset by the unfavorable impact of currency exchange rates ($364.5 million). The unfavorable currency impact was driven primarily by the Argentine peso. Revenues increased 13% on an organic basis primarily due to inflation-based price increases and organic growth in AMS and DRS revenue. See our definition of “organic growth” on page 50.
Previous wording
Consolidated Costs and Expenses Cost of revenues increased to $1,865.0 million primarily due to higher revenue, mostly offset by the impact of currency exchange rates, the prior year impact of a large loss event in our BGS line of business in the second quarter, and lower costs related to restructuring actions. Selling, general and administrative costs increased 14% to $394.9 million primarily due to organic increases in labor costs and higher transformation initiative costs, partially offset by the impact of currency exchange rates and lower restructuring related costs.
Current wording
Consolidated Costs and Expenses Cost of revenues increased 1% to $2,808.6 million primarily due to the impact of higher revenue partially offset by the impact of exchange rates. Selling, general and administrative costs increased 15% to $597.2 million primarily due to organic increases in labor costs and higher transformation initiative costs, partially offset by the impact of currency exchange rates.
Previous wording
•lower costs incurred related to reorganization and restructuring ($12.7 million), and
Current wording
•lower costs incurred related to reorganization and restructuring ($12.7 million),
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•lower costs incurred related to business acquisitions and dispositions ($6.8 million), including the impact of acquisition-related charges and intangible asset amortization, included in "Other items not allocated to segments",
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•lower costs incurred related to business acquisitions and dispositions ($9.8 million), and
Previous wording
Consolidated Income from Continuing Operations Attributable to Brink’s and Related Per Share Amounts Income from continuing operations attributable to Brink’s shareholders increased $49.1 million to $95.6 million due to the increase in operating profit mentioned above and higher interest and other nonoperating income ($17.0 million), partially offset by higher interest expense ($14.6 million), higher income tax expense ($4.6 million), and higher noncontrolling interest ($0.2 million). Earnings per share from continuing operations was $2.12, up from $0.98 in the first six months of 2023.
Current wording
Consolidated Income from Continuing Operations Attributable to Brink’s and Related Per Share Amounts Income from continuing operations attributable to Brink’s shareholders increased $32.3 million to $124.5 million due to the increase in operating profit mentioned above and higher interest and other nonoperating income ($24.6 million), lower income tax expense ($5.5 million) and lower noncontrolling interest ($0.6 million), partially offset by higher interest expense ($23.8 million) . Earnings per share from continuing operations was $2.77, up from $1.95 in the first nine months of 2023.
Previous wording
We provide an analysis of our operations below on both a U.S. generally accepted accounting principles (“GAAP”) and non-GAAP basis. The purpose of the non-GAAP information is to report our operating profit, income from continuing operations and earnings per share without certain income and expense items that do not reflect the regular earnings of our operations. The non-GAAP financial measures are intended to provide investors with a supplemental comparison of our operating results and trends for the periods presented. Our management believes these measures are also useful to investors as they allow investors to evaluate our performance using the same metrics that our management uses to evaluate past performance and prospects for future performance. We do not consider these items to be reflective of our core operating performance. The non-GAAP adjustments used to reconcile our GAAP results are described on pages 41–43 and are reconciled to comparable GAAP measures on pages 48–50.
Current wording
Non-GAAP Financial Measures The non-GAAP measures included in the table above and the analysis below present our operating profit, operating profit margin, income from continuing operations and earnings per share without certain income and expense items that do not reflect the regular earnings of the Company's operations. These non-GAAP measures are described in more detail on page 50 and are reconciled to comparable GAAP measures on pages 52-54.
Previous wording
Non-GAAP Adjusted EBITDANon-GAAP Adjusted EBITDA increased 15% to $444.1 million primarily due to the increase in Non-GAAP operating profit ($41.4 million), excluding the impact of higher Non-GAAP depreciation and amortization ($6.5 million).
Current wording
Adjusted EBITDA Adjusted EBITDA decreased 6% to $216.8 million primarily due to the decrease in Non-GAAP operating profit ($14.7 million), excluding the impact of higher Non-GAAP depreciation and amortization ($2.8 million).
Previous wording
Non-GAAP Consolidated Income from Continuing Operations Attributable to Brink’s and Related Per Share Amounts Non-GAAP income from continuing operations attributable to Brink’s shareholders increased $24.7 million to $145.1 million due to the operating profit increase mentioned above and higher interest and other nonoperating income ($16.0 million), partially offset by higher income tax expense ($17.4 million), higher interest expense ($15.1 million) and higher noncontrolling interest ($0.2 million). Earnings per share from continuing operations was $3.21, up from $2.54 in the first six months of 2023.
Current wording
Non-GAAP Consolidated Income from Continuing Operations Attributable to Brink’s and Related Per Share Amounts Non-GAAP income from continuing operations attributable to Brink’s shareholders decreased $5.2 million to $212.7 million due to higher interest expense ($24.5 million) and higher income tax expense ($11.5 million), partially offset by the operating profit increase mentioned above, higher interest and other nonoperating income ($3.4 million), and lower noncontrolling interest ($0.7 million). Earnings per share from continuing operations was $4.73, up from $4.61 in the first nine months of 2023.
Previous wording
Non-GAAP Adjusted EBITDANon-GAAP Adjusted EBITDA increased 16% to $225.9 million primarily due to the increase in Non-GAAP operating profit ($23.8 million), excluding the impact of higher Non-GAAP depreciation and amortization ($2.3 million).
Current wording
Adjusted EBITDA Adjusted EBITDA increased 7% to $660.9 million primarily due to the increase in Non-GAAP operating profit ($26.7 million), excluding the impact of higher depreciation and amortization ($9.3 million).
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Revenues and Operating Profit by Segment: Second Quarter 2024 versus Second Quarter 2023
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Revenues and Operating Profit by Segment: Third Quarter 2024 versus Third Quarter 2023
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(a)Amounts include the impact of prior year comparable period results for acquired and disposed businesses. GAAP results also include the impact of acquisition-related intangible amortization, restructuring and other charges, and disposition-related gains/losses.
Current wording
(b)Amounts include the impact of prior year comparable period results for acquired and disposed businesses. This measure is not required by, or presented in accordance with, GAAP and is described in more detail on page 50.
Previous wording
Analysis of Segment Results: Second Quarter 2024 versus Second Quarter 2023
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Analysis of Segment Results: Third Quarter 2024 versus Third Quarter 2023
Previous wording
Revenues decreased 1% ($2.2 million) due to the unfavorable impact of currency exchange rates ($128.9 million) primarily from the Argentine peso, largely offset by a 38% organic increase ($126.7 million). The organic increase was primarily driven by inflation-based price increases across the segment with a majority of the impact from Argentina, as well as growth in AMS and DRS revenue. Operating profit was down 4% ($2.7 million) primarily due to the unfavorable impact of currency exchange rates ($40.9 million), mostly offset by a 58% organic increase ($38.2 million). The organic increase was driven by inflation-based price increases which outpaced the impact of labor and other cost increases.
Current wording
Revenues decreased 5% ($18.6 million) due to the unfavorable impact of currency exchange rates ($135.7 million) primarily from the Argentine and Mexican peso, largely offset by a 34% organic increase ($117.1 million). The organic increase was primarily driven by inflation-based price increases across the segment with a majority of the impact from Argentina, as well as growth in AMS and DRS revenue. Operating profit increased 3% ($2.2 million) primarily due to a 70% organic increase ($47.7 million), mostly offset by the unfavorable impact of currency exchange rates ($45.5 million). The organic increase was driven by inflation-based price increases which outpaced the impact of labor and other cost increases.
Previous wording
Revenues increased 8% ($23.8 million) due to a 9% organic increase ($25.6 million) and the impact of acquisitions ($1.9 million), partially offset by the unfavorable impact of currency exchange rates ($3.7 million). Organic revenue increased primarily due to price increases and the growth of AMS and DRS revenue. Operating profit increased $2.9 million primarily due to a 11% organic increase ($3.1 million) driven by higher revenue outpacing the impact of labor and other cost increases across the segment, cost productivity, and the mix benefit of higher AMS and DRS revenue.
Current wording
Revenues increased 10% ($27.7 million) due to an 8% organic increase ($22.9 million), the favorable impact of currency exchange rates ($2.9 million), and the impact of acquisitions ($1.9 million). Organic revenue increased primarily due to price increases and the growth of AMS and DRS revenue. Operating profit increased $4.3 million primarily due to an 11% organic increase ($3.8 million) driven by higher revenue outpacing the impact of labor and other cost increases across the segment, cost productivity, and the mix benefit of higher AMS and DRS revenue.
Previous wording
Revenues increased $0.7 million due to a 2% organic increase ($4.0 million), partially offset by the unfavorable impact of currency exchange rates ($3.3 million). Organic growth in the segment was primarily due to growth in DRS and AMS revenue offset by volume reductions in CVM revenue, including the BGS line of business. Operating profit decreased 6% ($2.3 million) primarily due to a 4% organic decrease ($1.6 million).
Current wording
Revenues increased $7.5 million due to a 3% organic increase ($5.4 million) and the favorable impact of currency exchange rates ($2.1 million). Organic growth in the segment was primarily due to growth in DRS and AMS revenue offset by volume reductions in CVM revenue. Operating profit increased 3% ($1.2 million) primarily due to a 2% organic increase ($1.0 million).
Previous wording
Revenues and Operating Profit by Segment: First Half 2024 versus First Half 2023
Current wording
Revenues and Operating Profit by Segment: Nine Months 2024 versus Nine Months 2023
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Analysis of Segment Results: First Half 2024 versus First Half 2023
Current wording
Analysis of Segment Results: Nine Months 2024 versus Nine Months 2023
Previous wording
Revenues increased 4% ($14.6 million) due to a 3% organic increase ($10.4 million) and the impact of acquisitions ($4.8 million), partially offset by the unfavorable impact of currency exchange rates $0.6 million. Organic revenue increased primarily due to price increases and growth in AMS and DRS revenue in the U.S., partially offset by lower BGS revenue. Operating profit increased 38% ($14.2 million) due to a 37% organic increase ($13.7 million) and the impact of acquisitions $0.5 million. The organic increase was primarily driven by cost productivity improvements in labor and other areas, including realizing benefits from transformation initiatives in the U.S., as well as increased revenue.
Current wording
Revenues increased 3% ($32.7 million) primarily due to a 2% organic increase ($24.3 million) and the impact of acquisitions ($9.4 million). Organic revenue increased primarily due to price increases and growth in AMS and DRS revenue in the U.S., partially offset by lower BGS revenue. Operating profit increased $18.0 million due to a 14% organic increase ($17.2 million) and the impact of acquisitions ($0.8 million). The organic increase was primarily driven by the net impact of revenue mix and cost productivity improvements from transformation initiatives in the U.S., partially offset by technology and operational investments in the third quarter that impacted labor and fleet productivity.
Previous wording
Revenues increased 3% ($17.0 million) due to a 38% organic increase ($243.8 million), mostly offset by the unfavorable impact of currency exchange rates ($226.8 million), primarily from the Argentine peso partially offset by favorable impact from the Mexican peso. The organic increase was driven by inflation-based price increases across the segment with a majority of the impact from Argentina, as well as growth in AMS and DRS revenue. Operating profit was down 5% ($6.3 million) due to the unfavorable impact of currency exchange rates ($72.0 million), mostly offset by a 50% organic increase ($65.7 million). The organic increase was driven by higher revenue which outpaced the impact of labor and other cost increases.
Current wording
Revenues decreased ($1.6 million) due to the unfavorable impact of currency exchange rates ($362.5 million), primarily from the Argentine peso, mostly offset by a 36% organic increase ($360.9 million). The organic increase was driven by inflation-based price increases across the segment with a majority of the impact from Argentina, as well as growth in AMS and DRS revenue. Operating profit decreased 2% ($4.1 million) due to the unfavorable impact of currency exchange rates ($117.5 million), mostly offset by a 57% organic increase ($113.4 million). The organic increase was driven by higher revenue which outpaced the impact of labor and other cost increases.
Previous wording
Revenues increased 8% ($46.5 million) due to a 8% organic increase ($42.7 million) and the favorable impact of acquisitions ($3.8 million). The organic increase was primarily due to price increases and the growth of AMS and DRS revenue. Operating profit increased 13% ($6.8 million), primarily due to a 13% organic increase ($6.5 million). The organic increase was primarily driven by higher revenue outpacing the impact of labor and other cost increases across the segment, cost productivity, and the mix benefit of higher AMS and DRS revenue.
Current wording
Revenues increased 9% ($74.2 million) due to an 8% organic increase ($65.6 million) and the favorable impact of acquisitions ($5.7 million). The organic increase was primarily due to price increases and the growth of AMS and DRS revenue. Operating profit increased 13% ($11.1 million), primarily due to a 12% organic increase ($10.3 million). The organic increase was primarily driven by higher revenue outpacing the impact of labor and other cost increases across the segment, cost productivity, and the mix benefit of higher AMS and DRS revenue.
Previous wording
Revenues increased 1% ($5.9 million) due to a 3% organic increase ($11.9 million), partially offset by the unfavorable impact of currency exchange rates ($6.0 million). Organic growth in the segment was primarily due to growth in BGS revenue and supplemented by continued growth in AMS and DRS revenue. Operating profit increased 2% ($1.5 million) due to a 4% organic increase ($3.1 million), partially offset by the unfavorable impact of currency exchange rates ($1.3 million). The organic increase was primarily due the increase in higher-margin revenue.
Current wording
Revenues increased 2% ($13.4 million) due to a 3% organic increase ($17.3 million), partially offset by the unfavorable impact of currency exchange rates ($3.9 million). Organic growth in the segment was primarily due to continued growth in AMS and DRS revenue and supplemented by growth in BGS revenue. Operating profit increased 2% ($2.7 million) due to a 3% organic increase ($4.1 million), partially offset by the unfavorable impact of currency exchange rates ($1.1 million). The organic increase was primarily due the increase in higher-margin revenue.
Previous wording
Income and Expense Not Allocated to Segments
Current wording
Analysis of Income and Expense Not Allocated to Segments
Previous wording
(d)Corporate expenses are not allocated to segment results. Corporate expenses include salaries and other costs to manage the global business and to perform activities required by public companies.
Current wording
Corporate Expenses include costs to manage the global business and perform activities required by public companies as well as other items that are considered part of the Company's operations and revenue generating activities but are not considered when the chief operating decision maker ("CODM") evaluates segment results. Examples include corporate staff compensation, corporate headquarters costs, regional management costs, share-based compensation, and currency transaction gains and losses.
Previous wording
Corporate expenses for the first six months of 2024 decreased $15.4 million versus the prior year period. This was primarily driven by lower charges related to insurance and security losses ($22.8 million), partially offset by higher net compensation costs ($2.4 million) and higher technology costs ($2.2 million).
Current wording
Corporate expenses for the three months ended September 30 2024 increased $16.4 million compared to the prior year period. The higher costs primarily resulted from increased charges for insurance and security losses ($9.4 million), higher net compensation costs ($4.2 million), a reduction in currency transaction gains ($3.1 million) and higher technology costs ($2.6 million). Corporate expenses for the first nine months of 2024 increased $1.0 million versus the prior year period. This was primarily driven by higher net compensation costs ($6.5 million), higher technology costs ($4.9 million) and higher professional and audit fees ($2.6 million), mostly offset by lower charges related to insurance and security losses ($13.1 million).
Previous wording
In the first quarter of 2023, management completed the review and approval of remaining actions included in the previously announced restructuring program across our global business operations. The actions were taken to enable growth, reduce costs and related infrastructure, and to mitigate the potential impact of external economic conditions. In total, we have recognized $34.0 million in charges under this program, including $0.8 million in the first six months of 2024. We expect total expenses from the program to be between $36 million and $38 million. When completed, the current restructuring actions are expected to reduce our workforce by 3,200 to 3,400 positions and result in annualized cost savings of approximately $60 million.
Current wording
In the first quarter of 2023, management completed the review and approval of remaining actions included in the previously announced restructuring program across our global business operations. In total, we have recognized $34.2 million in charges under this program, including $1.0 million in the first nine months of 2024. The actions under this program were substantially completed in 2024. Severance actions from this restructuring plan reduced our global workforce by approximately 3,200 positions.
Previous wording
Due to the unique circumstances around these charges, they have not been allocated to segment results and are excluded from non-GAAP results. Charges related to the employees, assets, leases and contracts impacted by these restructuring actions were excluded from the segments and corporate expenses as shown in the table below.
Current wording
Charges related to these restructuring actions were excluded from the segments and corporate expenses as shown in the table below:
Previous wording
•Net charges of $1.2 million were incurred for post-acquisition adjustments to indemnification assets related to previous business acquisitions.
Current wording
•Net charges of $2.4 million were incurred for post-acquisition adjustments to indemnification assets related to previous business acquisitions.
Previous wording
•We recognized $0.5 million in charges in Argentina in the first six months of 2024 for an inflation-adjusted labor increase to expected payments to union workers of the Maco businesses. See Note 6 for details.
Current wording
•We recognized $0.5 million in charges in Argentina in the first nine months of 2024 for an inflation-adjusted labor increase to expected payments to union workers of the Maco Transportadora and Maco Litoral businesses (together, "Maco"). Although the Maco operations were acquired in 2017, formal antitrust approval was obtained in 2021, which triggered negotiation and approval of the expected payments in 2022. See Note 6 for details.
Previous wording
•We incurred $0.4 million in integration costs in the first six months of 2024.
Current wording
•We incurred $0.5 million in integration costs in the first nine months of 2024.
Previous wording
•Transaction costs related to business acquisitions were $0.3 million in the first six months of 2024.
Current wording
•Transaction costs related to business acquisitions were $0.6 million in the first nine months of 2024.
Previous wording
•A net credit of $1.3 million related to the reversal of retention liability for key PAI employees was recorded in the first six months of 2024.
Current wording
•A net credit of $1.3 million related to the reversal of a retention liability for key PAI employees was recorded in the first nine months of 2024.
Previous wording
•A net gain of $4.8 million was recognized upon derecognition of a contingent consideration liability related to the NoteMachine business acquisition.
Current wording
•We derecognized a contingent consideration liability related to the NoteMachine business acquisition and recognized a gain of $4.8 million.
Previous wording
•We recognized $3.3 million in charges in Argentina in the first six months of 2024 for an inflation-adjusted labor increase to expected payments to union workers of the Maco businesses.
Current wording
•We recognized $4.7 million in charges in Argentina in the first nine months of 2023 for an inflation-adjusted labor increase to expected payments to union workers of the Maco businesses.
Previous wording
•Net charges of $2.6 million were incurred for post-acquisition adjustments to indemnification assets related to previous business acquisitions.
Current wording
•Net charges of $3.4 million were incurred for post-acquisition adjustments to indemnification assets related to previous business acquisitions.
Previous wording
•We incurred $1.2 million in integration costs, primarily related to PAI, in the first six months of 2023.
Current wording
•We incurred $2.0 million in integration costs, primarily related to PAI, in the first nine months of 2023.
Previous wording
•Transaction costs related to business acquisitions were $2.4 million in the first six months of 2023.
Current wording
•Transaction costs related to business acquisitions were $3.6 million in the first nine months of 2023.
Previous wording
•We recognized a $2.0 million loss on the disposition of Russia-based operations in the first six months of 2023.
Current wording
•We recognized a $2.0 million loss on the disposition of Russia-based operations in the first nine months of 2023.
Showing the first 40 of 73 pairs. Open the source sections for the rest.
Rearranged current paragraphs (3)
Current report — wording carried from elsewhere
(c)The amounts in the “Currency” column consist of the effects of Argentina devaluations under highly inflationary accounting and the sum of monthly currency changes. This measure is not required by, or presented in accordance with, GAAP and is described in more detail on page 50.
Current report — wording carried from elsewhere
(d)Non-GAAP income from continuing operations and non-GAAP EPS have been adjusted to reflect an effective income tax rate in each interim period equal to the full-year non-GAAP effective income tax rate. The full-year non-GAAP effective tax rate is estimated at 28.1% for 2024 and was 24.8% for 2023.
Current report — wording carried from elsewhere
(a)See “Other Items Not Allocated To Segments” on pages 42-44 for details.
Rearranged previous paragraphs (4)
Previous report — wording carried elsewhere
GAAP and Non-GAAP Financial Measures
Previous report — wording carried elsewhere
Consolidated Operating Profit Operating profit increased $10.4 million due mainly to:
Previous report — wording carried elsewhere
Consolidated Operating Profit Operating profit increased $51.5 million due mainly to:
Previous report — wording carried elsewhere
(a)Title to cash received and processed in certain of our secure Cash Management Services operations transfers to us for a short period of time. The cash is generally credited to customers’ accounts the following day and we do not consider it as available for general corporate purposes in the management of our liquidity and capital resources and in our computation of Net Debt.