EXHIBIT 99(b)
[LOGO] The Brink's Company
1801 Bayberry Court
P.O. Box 18100
Richmond, VA 23226-8100 USA
PRESS RELEASE Tel. 804.289.9600
Fax 804.289.9758
Contact: FOR IMMEDIATE RELEASE
Investor Relations
804.289.9709
The Brink's Company Updates 2004 Results
Recording of Non-cash Items Results in
Increase in Reported Net Income and Earnings per Share
Richmond, Va. (March 15, 2005) - The Brink's Company (NYSE: BCO) announced
today that it is updating its financial results for the fourth quarter and full
year 2004 to reflect the recording of two non-cash items that result in an
increase in reported net income and earnings per share for the year.
As disclosed in the Company's February 8, 2005, earnings release, the
administrators of multi-employer pension plans in which the Company participates
had not provided sufficient information to develop an updated estimate of the
Company's potential withdrawal liability prior to the announcement of results
for the fourth quarter and full year 2004. Additional information has now been
received and due to improvements in the funded status of the plans, the Company
expects its ultimate obligation to be approximately $37 million. The reduction
in the estimate for the obligation will be recorded as a benefit within
discontinued operations for the fourth quarter - $7.3 million pretax and $4.7
million after tax. As a result, income from discontinued operations was $5.9
million ($0.11 per diluted share) for the fourth quarter and $20.9 million
($0.38 per diluted share) for the full year.
In addition, as the Company completed its reviews and control procedures
related to deferred income taxes, it reduced the provision for tax expense by
$2.1 million. This non-cash benefit will be reflected within continuing
operations. Accordingly, income from continuing operations was $33.1 million
($0.59 per diluted share) for the fourth quarter of 2004 and $100.6 million
($1.82 per diluted share) for the full year.
The Company also announced that it expects to file today its Form 10-K
covering the year ended December 31, 2004.
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This release contains both historical and forward-looking information. Words
such as "anticipates," "estimates," "expects," "projects," "intends," "plans,"
"believes," "may," "should" and similar expressions may identify forward-looking
information. Forward-looking information in this document includes, but is not
limited to, statements regarding estimated obligations related to the expected
withdrawal from multi-employer pension plans this year and estimated deferred
tax expense. The forward-looking information in this document is subject to
known and unknown risks, uncertainties and contingencies that could cause actual
results to differ materially from those that are anticipated.
These risks, uncertainties and contingencies, many of which are beyond the
control of The Brink's Company and its subsidiaries, include, but are not
limited to, the timing of any withdrawal from the multi-employer plans, the
performance of the investments made by the multi-employer plans, changes in
estimates made by the multi-employer plans, the number of participants in the
multi-employer plans and the cost to administer the plans, comparisons of hours
works by covered coal employees over the last five years versus industry
averages, changes in valuation allowances, determinations as to the likelihood
of realization of deferred tax assets, the return to profitability of operations
in jurisdictions where the Company has recorded valuation adjustments and
governmental regulations and initiatives. The information included in this
release is representative only as of the date of this release and The Brink's
Company undertakes no obligation to update any information contained in this
release.
About The Brink's Company
The Brink's Company (NYSE: BCO) is a global leader in business and security
services. The Company's three businesses are Brink's, Incorporated, the world's
premier provider of secure transportation and cash management services; Brink's
Home Security, one of the largest and most successful residential alarm
companies in North America; and BAX Global, an industry leader in freight
transportation and global supply chain management solutions. For more
information, please visit The Brink's Company website at www.brinkscompany.com,
or call toll free 877-275-7488.
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THE BRINK'S COMPANY
and Subsidiaries
Condensed Consolidated Statements of Operations
(In millions, except per share amounts)
(Unaudited)
Updated
Three Months Ended Years Ended
December 31, December 31,
2004 2003 2004 2003
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Revenues $ 1,297.1 1,109.7 4,718.1 3,998.6
Expenses:
Operating expenses 1,080.4 916.7 3,964.2 3,404.2
Selling, general and administrative expenses 159.7 139.9 573.1 520.6
- -------------------------------------------------------------------------------------------------------------------------
Total expenses 1,240.1 1,056.6 4,537.3 3,924.8
Gain on sale of equity interest - 10.4 - 10.4
Other operating income, net 2.7 0.7 9.1 15.6
- -------------------------------------------------------------------------------------------------------------------------
Operating profit 59.7 64.2 189.9 99.8
Interest expense (5.3) (6.0) (22.9) (25.4)
Interest and other income, net 0.7 1.9 7.4 8.5
Minority interest (4.8) (3.6) (12.9) (9.0)
- -------------------------------------------------------------------------------------------------------------------------
Income from continuing operations before income taxes 50.3 56.5 161.5 73.9
Provision for income taxes 17.2 52.2 60.9 55.7
- -------------------------------------------------------------------------------------------------------------------------
Income from continuing operations 33.1 4.3 100.6 18.2
Income (loss) from discontinued operations, net of tax 5.9 (29.3) 20.9 11.2
- -------------------------------------------------------------------------------------------------------------------------
Net income (loss) $ 39.0 (25.0) 121.5 29.4
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Basic net income (loss) per common share:
Continuing operations $ 0.60 0.08 1.84 0.34
Discontinued operations 0.11 (0.55) 0.39 0.21
- -------------------------------------------------------------------------------------------------------------------------
$ 0.71 (0.47) 2.23 0.55
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Diluted net income (loss) per common share:
Continuing operations $ 0.59 0.08 1.82 0.34
Discontinued operations 0.11 (0.55) 0.38 0.21
- -------------------------------------------------------------------------------------------------------------------------
$ 0.70 (0.47) 2.20 0.55
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THE BRINK'S COMPANY
and Subsidiaries
Condensed Consolidated Balance Sheets
(In millions)
Updated December 31, December 31,
2004 2003
- ------------------------------------------------------------------------------------------------------
(Unaudited)
Assets
Cash $ 169.0 128.7
Other current assets 923.6 731.8
Property and equipment, net 914.0 873.2
Goodwill, net 259.6 244.1
Voluntary Employees' Beneficiary Association trust ("VEBA") (a) - 105.2
Other assets 412.0 465.6
- ------------------------------------------------------------------------------------------------------
Total assets $ 2,678.2 2,548.6
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Liabilities and Shareholders' Equity
Current debt $ 62.6 53.0
Other current liabilities 969.5 791.1
Long-term debt 181.6 221.5
Accrued pension costs 117.0 86.6
Other postretirement benefits (a) 331.2 504.2
Other liabilities 342.3 396.6
- ------------------------------------------------------------------------------------------------------
Total liabilities 2,004.2 2,053.0
Shareholders' equity 674.0 495.6
- ------------------------------------------------------------------------------------------------------
Total liabilities and shareholders' equity $ 2,678.2 2,548.6
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(a) The VEBA is accounted for as a plan asset of the Company's coal-related
retiree medical benefit plan beginning in 2004.
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THE BRINK'S COMPANY
and Subsidiaries
INCOME (LOSS) FROM Discontinued operations
(In millions)
(Unaudited)
Updated Three Months Ended Years Ended
December 31, December 31,
2004 2003 2004 2003
- ---------------------------------------------------------------------------------------------------------------
Gain (loss) on sales of:
Natural Gas $ - (1.1) - 56.2
Timber - 4.8 20.7 4.8
Gold - - (0.9) -
Coal 5.0 - 5.0 -
Results from operations:
Natural Gas - - - 11.2
Timber - (0.5) (0.5) (0.2)
Gold - (1.6) (1.2) (4.1)
Adjustments to contingent liabilities of former operations:
Health Benefit Act liabilities 3.2 (31.3) 3.2 (31.3)
Withdrawal liabilities 7.3 (14.0) 15.4 (17.0)
Reclamation liabilities (0.1) (3.2) (0.1) (3.2)
Workers' compensation liabilities (4.9) 0.2 (4.9) 0.2
Recovery of environmental costs - 5.3 - 5.3
Other (0.4) (2.1) (3.3) (2.7)
- ---------------------------------------------------------------------------------------------------------------
Income (loss) from discontinued operations before income taxes 10.1 (43.5) 33.4 19.2
Income tax (expense) benefit (4.2) 14.2 (12.5) (8.0)
- ---------------------------------------------------------------------------------------------------------------
Income (loss) from discontinued operations $ 5.9 (29.3) 20.9 11.2
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