Brinks (NYSE:BCO)
Historical Stock Chart
2 Years : From May 2011 to May 2013
The Brink’s Company announced today that its non-GAAP results will
exclude retirement expenses related to its former operations and frozen
U.S. pension plans. These expenses will continue to be included in the
company’s GAAP results.
Joseph W. Dziedzic, vice president and chief financial officer of The
Brink’s Company, said: “Our GAAP earnings contain substantial expenses
related to frozen retirement plans and retirement plans from former
operations. Excluding these expenses from non-GAAP results will help
investors assess the performance of our ongoing operations more
accurately. The valuation impact of our legacy liabilities and related
cash outflows can now be assessed on a basis that is separate and
distinct from ongoing operations.”
The company’s quarterly non-GAAP results for 2011 and 2010 have been
adjusted to reflect the exclusion of retirement expenses. This
adjustment adds $13 million (27 cents per share) to non-GAAP earnings
for the first nine months of 2011 and $14 million (28 cents per share)
to full-year 2010 earnings. GAAP results for these periods remain
unchanged. A reconciliation to GAAP results for these periods is
provided in the attached pages.
In the first nine months of 2011, approximately $19 million of U.S.
retirement plan expenses (including UMWA retirement plan and Black Lung
expenses) were reported in GAAP results as non-segment expense and
approximately $2 million of additional expenses were included in North
American segment results.
On December 31, 2011, the total underfunding related to U.S. pension
plans and obligations related to former coal operations (UMWA, Black
Lung and other) was $628 million versus $418 million at the end of 2010.
From 2012 through 2016, the combined contributions to these plans are
expected to be $39 million in 2012, $47 million in 2013, $57 million in
2014, $52 million in 2015 and $47 million in 2016. There are no cash
outflows to the UMWA plan expected until 2023.
About The Brink’s Company
The Brink’s Company (NYSE:BCO) is the world’s premier provider of secure
transportation and cash management services. For more information,
please visit The Brink’s Company website at www.Brinks.com
or call 804-289-9709.
Page 1
Non-GAAP Results
Non-GAAP results described in this release are financial measures that
are not required by, or presented in accordance with U.S. generally
accepted accounting principles (“GAAP”). The purpose of the non-GAAP
results is to report financial information without certain income and
expense items and adjust the quarterly non-GAAP tax rates so that the
non-GAAP tax rate in each of the quarters is equal to the full-year
non-GAAP tax rate. For 2011, a forecasted full-year tax rate is used.
The full year non-GAAP tax rate in both years excludes certain pretax
and tax income and expense amounts. The non-GAAP information provides
information to assist comparability and estimates of future performance.
Brink’s believes these measures are helpful in assessing operations and
estimating future results and enable period-to-period comparability of
financial performance. In addition, Brink’s believes the measures will
help investors assess the ongoing operation and our legacy liabilities
more accurately. Non-GAAP results should not be considered as an
alternative to revenue, income or earnings per share amounts determined
in accordance with GAAP and should be read in conjunction with their
GAAP counterparts.
Forward-Looking Statements
This release contains forward-looking information about the exclusion of
certain retirement costs from the company’s Non-GAAP results and the
impact of these costs on the company. Words such as "anticipates,"
"estimates," "expects," "projects," "intends," "plans," "believes,"
"may," "should" and similar expressions may identify forward-looking
information. The forward-looking information in this release is subject
to known and unknown risks, uncertainties and contingencies, which could
cause actual results, performance or achievements to differ materially
from those that are anticipated. Additional discussion of factors that
could affect future results is contained in the company’s periodic
filings with the Securities and Exchange Commission. All forward-looking
information should be evaluated in the context of these risks,
uncertainties and contingencies. The information included in this
release is representative only as of the date of this release, and the
company undertakes no obligation to update any information contained in
this release.
Page 2
The Brink’s Company and subsidiaries (Unaudited)
U.S. Retirement Plans
(in millions)
Underfunded Status
As of Year-End
2011
2010
U.S. pension plans
$
305
192
UMWA plans
262
164
Black lung and other plans
61
62
Total
$
628
418
The change in underfunding from 2010 to 2011 is driven primarily by a
reduction in the discount rate from 5.3% to 4.6% for the primary U.S.
pension plan and 5.3% to 4.4% for UMWA plans.
Payments from Brink’s to U.S. Plans
Actual
Projected
2011
2012
2013
2014
2015
2016
U.S. pension plans
$
-
31.5
41.5
51.1
47.0
42.4
UMWA plans
-
-
-
-
-
-
Black lung and other plans (a)
7.0
7.1
5.8
5.5
5.2
4.9
Total
$
7.0
38.6
47.3
56.6
52.2
47.3
(a) These plans are not funded.
The amounts in the tables above are based on a variety of estimates,
including actuarial assumptions as of December 31, 2011. The
estimated amounts will change in the future to reflect payments
made, investment returns, actuarial revaluations, and other changes
in estimates. Actual amounts could differ materially from the
estimated amounts.
Page 3
The Brink’s Company and subsidiaries
Non-GAAP Results - Reconciled to Amounts Reported Under GAAP
(Unaudited)
(In millions, except for per share amounts)
GAAPBasis
Gains onAcquisitions andAssetDispositions (a)
BelgiumSettlementCharge (b)
MexicoEmployeeBenefitSettlementLosses (c)
U.S.RetirementPlans (d)
U.S.ValuationAllowanceRelease (e)
AdjustIncome TaxRate (f)
Non-GAAPBasis
First Quarter 2011
Operating profit:
International
$
45.2
-
-
-
-
-
-
45.2
North America
6.8
-
-
-
0.7
-
-
7.5
Segment operating profit
52.0
-
-
-
0.7
-
-
52.7
Non-segment
(15.0)
(0.4)
-
-
6.2
-
-
(9.2)
Operating profit
$
37.0
(0.4)
-
-
6.9
-
-
43.5
Amounts attributable to Brink’s:
Income from continuing operations
$
18.9
(3.1)
-
-
4.4
-
(0.9)
19.3
Diluted EPS – continuing operations
0.39
(0.06)
-
-
0.09
-
(0.02)
0.40
Second Quarter 2011
Operating profit:
International
$
26.2
-
10.1
1.0
-
-
-
37.3
North America
10.4
-
-
-
0.8
-
-
11.2
Segment operating profit
36.6
-
10.1
1.0
0.8
-
-
48.5
Non-segment
(16.2)
-
-
-
6.2
-
-
(10.0)
Operating profit
$
20.4
-
10.1
1.0
7.0
-
-
38.5
Amounts attributable to Brink’s:
Income from continuing operations
$
5.3
-
6.3
0.7
4.4
-
0.6
17.3
Diluted EPS – continuing operations
0.11
-
0.13
0.01
0.09
-
0.01
0.36
Third Quarter 2011
Operating profit:
International
$
61.4
-
-
0.7
-
-
-
62.1
North America
8.7
-
-
-
0.8
-
-
9.5
Segment operating profit
70.1
-
-
0.7
0.8
-
-
71.6
Non-segment
(7.6)
(9.3)
-
-
6.2
-
-
(10.7)
Operating profit
$
62.5
(9.3)
-
0.7
7.0
-
-
60.9
Amounts attributable to Brink’s:
Income from continuing operations
$
31.5
(6.6)
-
0.5
4.4
(4.4)
3.9
29.3
Diluted EPS – continuing operations
0.66
(0.14)
-
0.01
0.09
(0.09)
0.08
0.61
Amounts may not add due to rounding.
See page 5 for notes.
Page 4
The Brink’s Company and subsidiaries
Non-GAAP Results - Reconciled to Amounts Reported Under GAAP
(Unaudited) (Continued)
(In millions, except for per share amounts)
Mexico
Gains on
Employee
U.S.
Adjust
Acquisitions and
Belgium
Benefit
U.S.
Valuation
Income
Non-
GAAP
Asset
Settlement
Settlement
Retirement
Allowance
Tax Rate
GAAP
Basis
Dispositions (a)
Charge (b)
Losses (c)
Plans (d)
Release (e)
(f)
Basis
Nine Months 2011
Operating profit:
International
$
132.8
-
10.1
1.7
-
-
-
144.6
North America
25.9
-
-
-
2.3
-
-
28.2
Segment operating profit
158.7
-
10.1
1.7
2.3
-
-
172.8
Non-segment
(38.8
)
(9.7
)
-
-
18.6
-
-
(29.9
)
Operating profit
$
119.9
(9.7
)
10.1
1.7
20.9
-
-
142.9
Amounts attributable to Brink’s:
Income from continuing operations
$
55.7
(9.7
)
6.3
1.2
13.2
(4.4
)
3.6
65.9
Diluted EPS – continuing operations
1.16
(0.20
)
0.13
0.02
0.27
(0.09
)
0.07
1.37
Amounts may not add due to rounding.
(a)
To eliminate gain recognized on the sale of the U.S. document
destruction business, gains on available-for-sale equity and debt
securities, gains related to acquisition of controlling interest
in subsidiaries that were previously accounted for as equity or
cost method investments, and gains on sales of former operating
assets, as follows:
First-Quarter 2011
Third-Quarter 2011
Nine Months 2011
Operating
Operating
Operating
Profit
EPS
Profit
EPS
Profit
EPS
Sale of U.S. Document Destruction business
$
-
-
(6.7
)
(0.09
)
(6.7
)
(0.09
)
Gains on available-for-sale equity and debt securities
-
(0.05
)
-
-
-
(0.05
)
Acquisition of controlling interests
(0.4
)
(0.01
)
(2.1
)
(0.04
)
(2.5
)
(0.05
)
Sale of former operating assets
-
-
(0.5
)
(0.01
)
(0.5
)
(0.01
)
$
(0.4
)
(0.06
)
(9.3
)
(0.14
)
(9.7
)
(0.20
)
(b)
To eliminate settlement charge related to exit of Belgium
cash-in-transit business.
(c)
To eliminate employee benefit settlement loss related to Mexico.
Portions of Brink’s Mexican subsidiaries’ accrued employee
termination benefit were paid in the second and third quarters of
2011. The employee termination benefit is accounted for under FASB
ASC Topic 715, Compensation – Retirement Benefits. Accordingly, the
severance payments resulted in settlement losses.
(d)
To eliminate expenses related to U.S. retirement liabilities.
(e)
To eliminate the positive impact of a valuation allowance release in
the United States.
(f)
To adjust effective income tax rate to be equal to the estimated
full-year non-GAAP effective income tax rate. The mid-point of the
range of the estimated non-GAAP effective tax rate is 37.5% for the
full-year 2011.
Page 5
The Brink’s Company and subsidiaries
Non-GAAP Results - Reconciled to Amounts Reported Under GAAP
(Unaudited) (Continued)
(In millions, except for per share amounts)
GAAPBasis
RemeasureVenezuelanNetMonetaryAssets (a)
Royalty(b)
ExitBelgiumCITBusiness(c)
MexicoAcquisition(d)
Non-SegmentAssetSales (e)
U.S.RetirementPlans (f)
U.S.HealthcareLegislationTax Charge(g)
AdjustIncomeTaxRate (h)
Non-GAAPBasis
First Quarter 2010
Operating profit:
International
$
24.5
4.9
-
-
-
-
-
-
-
29.4
North America
10.4
-
-
-
-
-
(0.3
)
-
-
10.1
Segment operating profit
34.9
4.9
-
-
-
-
(0.3
)
-
-
39.5
Non-segment
(11.1
)
-
(1.8
)
-
-
-
4.9
-
-
(8.0
)
Operating profit
$
23.8
4.9
(1.8
)
-
-
-
4.6
-
-
31.5
Amounts attributable to Brink’s:
Income from continuing operations
$
(4.8
)
3.0
(1.1
)
-
-
-
2.9
13.7
0.6
14.3
Diluted EPS – continuing operations
(0.10
)
0.06
(0.02
)
-
-
-
0.06
0.28
0.01
0.29
Second Quarter 2010
Operating profit:
International
$
33.8
(1.7
)
-
-
-
-
-
-
-
32.1
North America
10.3
-
-
-
-
-
(0.1
)
-
-
10.2
Segment operating profit
44.1
(1.7
)
-
-
-
-
(0.1
)
-
-
42.3
Non-segment
(12.6
)
-
(1.9
)
-
-
-
5.9
-
-
(8.6
)
Operating profit
$
31.5
(1.7
)
(1.9
)
-
-
-
5.8
-
-
33.7
Amounts attributable to Brink’s:
Income from continuing operations
$
20.7
(1.0
)
(1.2
)
-
-
-
3.6
-
(3.8
)
18.3
Diluted EPS – continuing operations
0.42
(0.02
)
(0.02
)
-
-
-
0.07
-
(0.08
)
0.37
Third Quarter 2010
Operating profit:
International
$
52.6
-
-
-
-
-
-
-
-
52.6
North America
5.4
-
-
-
-
-
(0.1
)
-
-
5.3
Segment operating profit
58.0
-
-
-
-
-
(0.1
)
-
-
57.9
Non-segment
(13.9
)
-
(1.2
)
-
-
-
5.9
-
-
(9.2
)
Operating profit
$
44.1
-
(1.2
)
-
-
-
5.8
-
-
48.7
Amounts attributable to Brink’s:
Income from continuing operations
$
21.7
-
(0.7
)
-
-
-
3.6
-
0.9
25.5
Diluted EPS – continuing operations
0.45
-
(0.01
)
-
-
-
0.08
-
0.02
0.53
Amounts may not add due to rounding.
See page 7 for notes.
Page 6
The Brink’s Company and subsidiaries
Non-GAAP Results - Reconciled to Amounts Reported Under GAAP
(Unaudited) (Continued)
(In millions, except for per share amounts)
GAAPBasis
RemeasureVenezuelanNetMonetaryAssets (a)
Royalty(b)
ExitBelgiumCITBusiness(c)
MexicoAcquisition(d)
Non-SegmentAssetSales (e)
U.S.RetirementPlans (f)
U.S.HealthcareLegislationTax Charge(g)
AdjustIncomeTaxRate (h)
Non-GAAPBasis
Fourth Quarter 2010
Operating profit:
International
$
53.9
-
-
13.4
-
-
-
-
-
67.3
North America
18.0
-
-
-
-
-
(0.5
)
-
-
17.5
Segment operating profit
71.9
-
-
13.4
-
-
(0.5
)
-
-
84.8
Non-segment
(25.0
)
-
-
-
8.6
-
6.0
-
-
(10.4
)
Operating profit
$
46.9
-
-
13.4
8.6
-
5.5
-
-
74.4
Amounts attributable to Brink’s:
Income from continuing operations
$
19.2
-
-
7.8
8.6
(3.0
)
3.4
-
2.3
38.3
Diluted EPS – continuing operations
0.40
-
-
0.16
0.18
(0.06
)
0.07
-
0.05
0.80
Full Year 2010
Operating profit:
International
$
164.8
3.2
-
13.4
-
-
-
-
-
181.4
North America
44.1
-
-
-
-
-
(1.0
)
-
-
43.1
Segment operating profit
208.9
3.2
-
13.4
-
-
(1.0
)
-
-
224.5
Non-segment
(62.6
)
-
(4.9
)
-
8.6
-
22.7
-
-
(36.2
)
Operating profit
$
146.3
3.2
(4.9
)
13.4
8.6
-
21.7
-
-
188.3
Amounts attributable to Brink’s:
Income from continuing operations
$
56.8
2.0
(3.0
)
7.8
8.6
(3.0
)
13.5
13.7
-
96.4
Diluted EPS – continuing operations
1.17
0.04
(0.06
)
0.16
0.18
(0.06
)
0.28
0.29
-
1.99
Amounts may not add due to rounding.
(a)
To eliminate remeasurement gains and losses in Venezuela. For
accounting purposes, Venezuela is considered a highly inflationary
economy. Under U.S. GAAP, subsidiaries that operate in Venezuela
record gains and losses in earnings for the remeasurement of bolivar
fuerte-denominated net monetary assets.
(b)
To eliminate royalty income from former home security business.
(c)
To eliminate loss on exit of Belgium cash-in-transit business.
(d)
To eliminate loss recognized related to acquisition of controlling
interest in subsidiary previously accounted for as cost method
investment and bargain purchase gain in Mexico.
(e)
To eliminate gain on exchange of marketable equity securities.
(f)
To eliminate expenses related to U.S. retirement liabilities.
(g)
To eliminate $13.7 million of tax expense related to the reversal of
a deferred tax asset as a result of U.S. healthcare legislation.
(h)
To adjust the effective income tax rate to be equal to the full-year
non-GAAP effective income tax rate. The non-GAAP effective tax rate
for 2010 was 36.2%.
Page 7
