EXHIBIT 99(b)
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The Brink's Company
1801 Bayberry Court
P.O. Box 18100
PRESS RELEASE Richmond, VA 23226-8100
Tel. 804.289.9600
Fax 804.289.9758
Contact: FOR IMMEDIATE RELEASE
Investor Relations
804.289.9709
THE BRINK'S COMPANY UPDATES 2005 RESULTS
Completion of Tax Review by the Company for 2005 Results in Reallocation of
Tax Expense between Continuing and Discontinued Operations;
Net Income in Total Remains Unchanged
RICHMOND, Va., March 8, 2006 - The Brink's Company (NYSE: BCO) announced
today that it is updating its financial results for the fourth quarter and full
year 2005 to reflect a reallocation of taxes between continuing and discontinued
operations with no change in reported net income.
As the company completed its reviews and control procedures related to the
post-sale separation of BAX Global Inc., it reallocated tax expense between
continuing operations and discontinued operations. The company's net income is
unchanged. Income from continuing operations was $6.2 million (11 cents per
diluted share) for the fourth quarter of 2005 and $42.3 million i (74 cents per
diluted share) for the full year. Income from discontinued operations was $46.9
million (81 cents per diluted share) for the fourth quarter of 2005 and $105.5
million ($1.85 per diluted share) for the full year.
The company also announced that it expects to file today its Form 10-K for
the year ended December 31, 2005.
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 the filing of the company's Form 10-K. 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.
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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 completion of reviews by the company and its outside auditors,
the preparation of the Form 10-K for filing, the ability to access the Internet,
the availability of the SEC's EDGAR website, and the number of filers utilizing
the website. 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 and operates two businesses: Brink's, Incorporated and Brink's Home
Security. Brink's, Incorporated is the world's premier provider of secure
transportation and cash management services. Brink's Home Security is one of the
largest and most successful residential alarm companies in North America. 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 (Updated)
(Unaudited)
Three Months Ended Years Ended
December 31, December 31,
(In millions, except per share amounts) 2005 2004 2005 2004
- ------------------------------------------------------------------------------------------------------------------
Revenues $ 663.1 606.0 2,549.0 2,277.5
Expenses:
Operating expenses 529.2 469.5 2,041.8 1,790.7
Selling, general and administrative expenses 116.1 103.2 406.8 360.5
- ------------------------------------------------------------------------------------------------------------------
Total expenses 645.3 572.7 2,448.6 2,151.2
Other operating income, net 6.3 2.0 15.0 11.1
- ------------------------------------------------------------------------------------------------------------------
Operating profit 24.1 35.3 115.4 137.4
Interest expense (4.6) (4.8) (18.6) (20.8)
Interest and other income, net 2.2 0.7 9.3 7.9
Minority interest (4.0) (4.6) (14.3) (12.4)
- ------------------------------------------------------------------------------------------------------------------
Income from continuing operations before income taxes 17.7 26.6 91.8 112.1
Income tax expense 11.5 10.1 49.5 40.6
- ------------------------------------------------------------------------------------------------------------------
Income from continuing operations 6.2 16.5 42.3 71.5
Income from discontinued operations, net of tax 46.9 22.5 105.5 50.0
Cumulative effect of change in accounting principle (5.4) - (5.4) -
- ------------------------------------------------------------------------------------------------------------------
Net income $ 47.7 39.0 142.4 121.5
==================================================================================================================
Basic net income per common share:
Continuing operations $ 0.11 0.30 0.75 1.31
Discontinued operations 0.82 0.41 1.88 0.92
Cumulative effect of change in accounting principle (0.09) - (0.10) -
- ------------------------------------------------------------------------------------------------------------------
$ 0.84 0.71 2.53 2.23
==================================================================================================================
Diluted net income per common share:
Continuing operations $ 0.11 0.29 0.74 1.29
Discontinued operations 0.81 0.41 1.85 0.91
Cumulative effect of change in accounting principle (0.09) - (0.09) -
- ------------------------------------------------------------------------------------------------------------------
$ 0.83 0.70 2.50 2.20
==================================================================================================================
Weighted-average common shares outstanding:
Basic 57.0 55.2 56.3 54.6
Diluted 57.8 56.0 57.0 55.3
- ------------------------------------------------------------------------------------------------------------------
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THE BRINK'S COMPANY
and Subsidiaries
INCOME FROM DISCONTINUED OPERATIONS (UPDATED)
(Unaudited)
Three Months Ended Years Ended
December 31, December 31,
(In millions) 2005 2004 2005 2004
- ------------------------------------------------------------------------------------------------------
Gain (loss) on sales of:
Timber $ - - - 20.7
Gold - - - (0.9)
Coal - 5.0 - 5.0
BAX Global (costs associated with sale) (2.8) - (2.8) -
Income (loss) from operations:
BAX Global (a) 43.9 23.9 86.8 49.5
Timber - - - (0.5)
Gold - - - (1.2)
Adjustments to contingent assets and liabilities of
former operations:
Litigation settlement gain (b) 15.1 - 15.1 -
Health Benefit Act 2.3 3.2 2.3 3.2
Reclamation liabilities (1.4) (0.1) (6.2) (0.1)
Workers' compensation 0.4 (4.9) 0.4 (4.9)
Withdrawal liability - 7.3 6.1 15.4
Other (0.2) (0.4) 0.1 (3.3)
- ------------------------------------------------------------------------------------------------------
Income from discontinued operations before income taxes 57.3 34.0 101.8 82.9
Income tax (expense) benefit (c) (10.4) (11.5) 3.7 (32.9)
- ------------------------------------------------------------------------------------------------------
Income from discontinued operations $ 46.9 22.5 105.5 50.0
======================================================================================================
(a) In January 2006, the company sold its BAX Global operations for $1.1
billion. BAX Global's results of operations have been reported as
discontinued operations for all periods presented.
(b) The company reached an agreement with the U.S. government in the fourth
quarter of 2005 related to refunds of prior-year Federal Black Lung Excise
Tax payments. The company received the refunds of $15.1 million in early
2006.
(c) During the third quarter of 2005, the company finalized discussions with
the Internal Revenue Service over certain tax credit carryforwards related
to the former natural resources businesses. The company recognized a $27.4
million tax benefit in the third quarter of 2005 in discontinued operations
as a result of resolving these discussions. The benefit does not result in
current cash receipts but has increased the company's tax credit
carryforwards available to reduce future U.S. income tax payments.
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