BCO - Earnings call transcript Q4 2020

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Operator

Welcome to The Brink's Company's Fourth Quarter 2020 Earnings Call. Brink's issued a press release on fourth quarter results this morning. The company also filed an 8-K that includes the release and the slides that will be used in today's call.

For those of you listening by phone, the release and slides are available in the Investor Relations section of the Company's website brinks.com. At this time all participants are in a listen-only mode. follow presentation. will session question-and-answer the formal A

statements. As call representative Instructions] call from any available be today's SEC Harbor you and Relations Now, Information this or as the conference estimated Vice contain statements. this from and in regarding only. on press pleasure assumes differ no recorded. cause Mr. update written Communications. [Operator is today being Brink's. Corporate not discussed most to such forward-looking will Brink's filings. release now Cunningham, for my President forward-looking Session that call results. the and to a results projected and presented of permission begin. in recent is is and could used may Cunningham, without materially reminder, may This Q&A Actual factors the is introduce Investor could of Information Company's Company's It Safe is Ed obligation your The statements. copyrighted host, differences

Ed Cunningham

Andrew. Good morning, Thanks, everyone.

highly inflationary matters. items Venezuela operations, the today costs items, to accounting compliance reorg me non-GAAP morning, and on internal CFO, results quarter and related certain Doug are number a Pertz; This GAAP impact fourth reported of to a loss of and restructuring an our exclude non-GAAP costs, both acquisitions to accounting, Argentina's related related basis. dispositions, we results and a Ron and The including Domanico. costs CEO, Joining

it investors X-K press the over today now which are our assess changes rates all the slides results. Pertz. the believe filing, website. on to Doug provided to morning’s I'll periods. of today from will and We between results the We in Reconciliations are the non-GAAP results in exchange can on comments found easier which currency release, our to this and be also in prior the we're foreign using constant for providing turn focus appendix primarily call performance a make eliminates our operating Accordingly, on year. currency non-GAAP

Doug Pertz

Thanks, Ed. Good morning, everyone, and today. thanks joining us for

results, cash the to priorities strong guidance, have world. our safety, employees of services nothing conditions Brink’s that response have continued proud review on on employees want the around emerges this increased essential to the under and Brink’s high I fourth more remarkable. I quality other globally. makes focus execution our clear management Despite essential our we been outstanding dedication, on pandemic how and In the in Before of health the Their quarter stronger short ensuring unprecedented challenges, focused has and am of the and leader pandemic, business our XX,XXX that side key provide than stress of services providing to global been they pandemic.

the of leadership and the of operations acquisition remained strategic global cash Our execution including integration focused and and complex XX completion in GXS very have on team also large markets.

XXX the per in continued onset Reported to margin a think Adjusted achieved by to the of XX%, pandemic EPS are of Our our U.S. revenue demonstrates revenue fourth since growth any proactively sight quarter our primarily reductions results quarter XXXX driven points the an margin the was rate a increased growth, and basis improving with up XX.X%, acquisition. revenue XX% are completed up reflecting was supported XX%. improvements. results profit driven impact margin the impact me, EBITDA of XX% to X%, million, increase $XXX revenue was These expected organic – $X.XX rate Operating from recovery GXS sequentially strong GXS restructuring, reflect of excuse cost business XXX leverage grew in and the outstanding. our basis our earnings acquisition. priorities. by partially of customers, pandemic business By and we’ve the families of addition our strategic business, I of which These organic support employees, means, share. that on lost reductions the not significant addressing impacts and our results our XXXX to cost the fourth clearly and drive which XX% by yielded full which sustainable of year pandemic’s

it global Our data in strength of the comp results method. – Federal and that in the and in grew a and the of the of underscore during plus materially fourth in will cash that is during with a than Even moment. grown growth showing cash at Reserve as two-thirds circulation annual XX% X% the the XX share pandemic, The as quarter over strength I transactions. in-person last U.S. currency is from U.S. the rate the as reflected has continued rate a well independent payments higher used cash pandemic, transactions resiliency you of consumer years

show Our internal metrics pandemic. the U.S. increased money during cash processing also that usage

we we between strong ahead, expected continued at of of midpoint. EPS growth of growth XX% XX% a and million XX%. EBITDA operating guidance, profit Adjusted $XXX in expect Looking XXXX. expect midpoint growth the million, is revenue be in of of and of increase range organic our $XXX improvement At XX%, the to and revenue an

operational the confidence and our based from solutions. this the – the proven reductions core execution, potential our lows, realization continued of year Brink’s benefits of cost track and Brink’s substantially future full is record as in growth our our GXS strategic the Our short is the long-term transformational a pandemic retail of on business, as a cash is well digital of team’s of and sustainability substantial organic the in of base This complete recovery acquisition. expected

demonstrates X, compared various indices. Slide here represented in think other base companies our to of we now to Turning the revenue which resiliency

these that the by during entertainment indexes cases post-pandemic some anticipation in very these companies have closings. mandated outperforming the government in total has the be equity near a all had recovery. you of sharp global for and the been Clearly in I some their consumer of Brink’s increases think of shown pandemic. with revenue hit pandemic industries of reliance these We and values industries hard of spending many is on surprised may hospitality

cash Moving XXXX and from chart, Industrials, fared the industry, left that companies, with companies quarter traditional S&P consumer-focused on than payment see levels. peers XXXX above management the or the XX% the can revenue right route-based of XXX to better fourth all the the our at most you

payments on fourth payments that to reported take quarter as especially revenue recovery companies strength price forma high both achieve strong divestitures we’ve of include fourth that step the a bottom a well XXXX reported is indices includes a XX% the of the indexes. Our the onset revenue note XX% recovery not On organic slide on numerous since route-based results since with make further, indices. counts XXXX the revenue including these versus recurring in reported basis We many pandemic we able with yet XX% both compare up pro to companies similar pro second have year a in X% prior year. customer just want industrial quarter for case and of our index payments the quarter outperformed forma versus This a basis right up several the down strongest to quarter. acquisitions. revenue and even companies the the if XXXX. versus these from fourth basis, up that The with in the and which indexes pandemic was despite far of versus is third a similar Taking at the a as and and versus share of GXS Brink’s index X% acquisitions retention, the for fact similar both comparable ours. look revenue favorably a the increase the and the at Brink’s. quarter of as you services XXXX, shows shared I all but multiples these revenue, revenues characteristics the prior or levels been valuation Brink’s with X% growth the

is sales the next facts, pandemic-related ecommerce the off pandemic than sales level is the reach payment this to to to five the remains through the continues greater as cash XX% cash popular five a ecommerce But further step been may is sales means, about according sales you Even pandemic. the continued expected pandemic for of was accelerated and at in of XXXX retail represents spending now excuse ecommerce rate a of where that about when of on grow and left to of Slide the years shows total Page most between growth all acknowledge to expected about accelerated is suggesting that To ecommerce sales. XXXX use ecommerce retail. the XXXX, usage of even be and in-person growth our in retail $X.X I percent growth comparably think last – during are of ecommerce our accounted sales. the X, than most ecommerce that sales. the year longstanding the year important than we in-person it’s about suggesting change total to we me more This far strong decelerate for revenue method of of shutdowns, height balance the and growth In year, increase of total retail While different the growth or strong during to the sales strong retail reach of XX%. and the But XX% the even accounted some assertion story. compelling. during has XX% cash will It’s The to grow are continue clear, the growth It remember certainly in ecommerce X to XXXX. total ecommerce retail growth payments cash and Obviously, now, prior purchases. U.S. in-person X Slide surprised in-store expected despite of on expected to have XX%. during proves that growing consider growth there warrant. in growth fully data that may full the from the sales Census in you pandemic. retail also XXXX, more XX% side if This trillion about remains is be years in sales of Bureau pandemic be the

of So size with in even pandemic in-person $X.X intentions of accelerated credit form sales dollars acceptance that over in in in-person stopping at of as as suggests popular will that trillion and retail ecommerce of slide be a it retailers growth. most larger total of the right have the or shows well The than cards. payment. this sales That XX% the before ahead survey cash transactions of of was U.S. of terms side the cash payments is of form debit no XXXX

increasing the are also payment preferred of grow. becomes our sales cash where larger data method on acquisition, or as and solutions unserved even cash the landscape, revenue, focus much belief expected payments is targeted strategic our in-person underserved management supports given of retailers of So, large ecommerce that today. organic part Brink’s grow a to very a is This business in growth customers digital a at and our very development through market

Turning U.S. XX Federal increase According a to remains prior year our the U.S. is fourth fewer internal six operations history served. XX% annual circulation fourth through a cash historical compound slide, cash shown quarter the notes elevated use the in prior mentioned are usage plus period have increases in also usage. versus the year-over-year, to last percent as year. cash external that and material over flowing And payments. earlier and we next Brink’s increased during quarters I this volume recession the has and of cash of up periods a as year’s with of stimulus, Such percent. year, rate still consistent X% internal of and our quarter with over in levels that Historically, the Reserve, of increased locations in that being metrics of possible to value show continue even just economic be as growth both

very the industry believe we the And almost market debit that for side do support or of inter retail services. resiliency new and significant both persistence large XX% shown services use vended fully cash of They opportunity future. unvended or outer cash data with show XX% any there locations is to of Brink’s undervended. current are headlines, credit for historical between the the and a the on unvended usage. unvended is Slide cash the ring, despite clearly the services the not management U.S. and that right payments ring So our penetrate Unlike and in market by the X,

profit through the take revenue growth second countries, XXXX continuing on now XXXX Let’s continued guidance Despite move revenue a at in the and our with financial our results especially in pandemic’s impact we X. strong look on the we growth near-term to expect in as half. many Slide accelerate,

of billion, at increase of last an XXX $XXX to of at continued midpoint and the we XX.X%, XX% primarily over midpoint Well, growth in a Operating me $X.X restate market revenue – margin impact profit reflecting and organic Adjusted For to million retail XX% growth the XXXX. of recoveries. year. to driven our midpoint at by growth midpoint XX% revenue at XXXX, X.XX% EBIT the are let million of targeting EPS that. of This basis growth per points share. of growth excludes in XX% this Moneygram of $XXX includes

XXXX Excluding equates the to increase. favorable impact midpoint of Moneygram, a in the that was XX%

as around of subsides in We the especially the as strong revenue the the half year well continue by impact expect again and second pandemic GXS supported economies the world reopen, growth acquisition. to in XXXX full

the EBITDA. of forma recovery of assumes XXX%, XXXX. timing approximately of which not the the will a rate revenue that about current high the our little assumes from in of over increase million and of guidance of XX% rate a conservative predicting pro rate of guidance low of difficulty And our a end, the $XXX our the pace fourth generate quarter XX% does end recovery, midpoint recovery Given

Our minimal solutions. management assumes only improved guidance leverage includes cash and margins operating to strategy benefits our from also and digital potential

I’d I driving. our a ES&G comments make Ron, Ron Before about it initiative to over like turn to that is few

to is appreciate fourth way and pleased as for results to important and we the are investors. outlook But discussed. just XXXX our for We as us own our just achieve with results quarter we we that

recently of and do having As industry live continuing shareholder principles best leader, of drive environment, and global recognize employing impact value. the sound where we Brink’s. of while social and practices we a centralized sustainability all the at formalized stewards sustainability business, an programs on in accelerated and and the being positive governmental In XXXX, evaluation efforts where importance program a to we our we communities

is internal – will XXXX that report to that determine priority our will stakeholders. by stakeholders our Our to global to external assessments throughout the to and in initiatives report are and across to encouraged to goals with organization conduct Based metrics and we ES&G begin the best seek and examples work footprint. on of global our we’ll ES&G to-date, many begin leverage we practices

efforts. over fact this Our underscored that for is commitment financial I’ll leading Ron? follow-up it him now our to the turn Ron is on plus the ES&G by to comments review.

Ron Domanico

everyone. which I reporting work. to determined to day, honored am excited good and this Brink’s for lead responsibility Doug, Thanks, is retain and sustainability directly program the important Board, oversight Brink’s to

disclosures publicly We more information we’ve future. new this in to see of of to haven’t committed The forward Brink’s sustainability improve look some bottom change on investing by in initiatives sharing But beyond and our we or to progress slide the that positively initiatives. indicates the annual that’s program details our I sustainability that’s made. society about beginning website. begin shared ESG disclosure, you’ll many and are in our to environment impacting

results guidance. a of Moving financial now to our and review

adjusted profit, a revenue, the in acquisitions timing and of into X go is disclose twelve they results. used I at that included on months I first we’ve This please that XX the remember they are is for following slides, organic is for are time separately then, details, snapshot included that Slide in mostly EPS. and detail EBITDA which operating to specific Please Slide review Before Appendix format ownership, metrics the more refer here for the of a of will in integrated we reference. acquisitions. repeatedly four and

year. fourth by growth in a as exchange average, a revenue up contribution dollar more quarter. offset XX% versus organic than $X.XX slightly the X%, $XX or profit Sequentially, in X% billion, the partially quarter quarter ForEx America, rates acquisitions revenue XX% to fourth and currencies the adding Negative driven constant during X% with million from by constant up last on by decline operating X% reduced contributing was revenue pandemic-related U.S. by versus XX%. Turning currency fourth Euro. currency Slide offset was a acquisitions. XX% primarily Reported up was stronger quarter in XXXX XX. was Latin stronger organic Fourth improved

growth the testament our in organic revenue proactive quarter, I a operating the is As organic realignment. fact to profit noted third despite achieved we decline an that cost

the X%. the OP level, Remember million and expense ForEx. compensation the quarter for by profit quarter joined the since XX.X%, by I ForEx stock conversion bad incurred from Corporate reduced the peso quarter XXXX, up the an XXXX. $X quarter in cost. in or in $XXX operating at Reported offset fourth fourth million XXX and was highest minus with margin Doug to BPS was Argentine in and was favorable company operating XXXX, in flat accruals, we million fourth relatively debt increase $X XXXX the

results $X for keep fourth reported and our our our in incremental in include results equipment, safe. the approximately press and Our protective personal other are year appendix in release. expense million quarter customers to cleaning included additional segment Full and employees and measures

expense $XX than result versus year Moving by to quarter as primarily last of offset was lower higher rates. was last debt associated partially million the Slide $XX million, in higher XX. year was higher up $X period $XX a expense with the the Fourth variable quarter interest GXS income. Tax million same as million, interest acquisition

a reduced in partly of offset was $XXX profit million moderating constructive to ETR. marketable The $XX due fourth in in by equity by at including in quarter million versus $XX by in in XX.X% utilize taxes Our million Moneygram, operating of quarter interest on from third of increased plus generate XXXX our or by $XX share, from from gains up $XX.X XX Asia, Other year, increased tax diluted assumptions projected $X.XX due estimate shares GXS interest our the fourth operations. about $X interest XXXX. to non-controlling but income outstanding be and full income levels. GXS generated million million, up is XXX securities Cash acquisitions year of $X.XX by ETR volatility Other minority effective million improved changes XX% mainly was Dividing the tax continuing from this per to attributes varying in rate quarter. the $XX acquisition and ability in the BPS investment earnings should down average $X.XX BPS last to weighted and million our

continuing EBITDA, impacted was amortization compensation or gains Our income million versus million, share reduced million. taxes by with from outstanding $X.X in by the of $XXX of gains and XXXX, EPS then fourth positively X%. a operations, comparison and depreciation $XX of which from adjusted third of million our We the share-based non-cash million we million $X $X.XX which repurchase up XXXX. marketable in To million $X.XX expense securities $XX $XX versus quarter marketable $XX removed about on in from on approximately XXXX shares the and added EBITDA, and interest of calculate XXXX starting $XX plus XX% adjusted resulted by securities, million quarter

shows margin margin for the the midpoint in XXXX quarter middle guidance. shows rates charts chart by OP Turning three XXXX this GXS are left The operating the the The shows the pro including right levels of the and forma to and XXXX rates in acquisitions. on profit chart on versus There revenue slide. XXXX, chart Slide full XXXX XX. XXXX revenue our year XXXX on

impact chart revenue on the in on revenue quarter. that the peaked left, Looking the you see the second pandemic at can

in XXXX XX% year. Doug forma, pre-pandemic second to revenue earlier only XX% XX% prior quarter the in As quarter center lockdowns quarter. recovery year. fourth versus recovered start vaccines that countries of Despite the the continue fourth to many the the that profit the mentioned in XXXX, and of chart roll first out of in from XXXX the year, throughout Revenue sequentially third will the provides quarter. pro this The quarter optimism operating that have increased the each shows impacted historically, in margins was through

plus quarter, New XXXX to of drop BPS preceding prior quarter The each from is fourth fourth increases of the first by XXX first start the typically materially the but from of pandemic. year. quarter first the quarter drops XXXX The the Year the quarter materially from immediately impacted the

the Slide expect at However, enabled sensitivity extent, profit proactive which address with quarter or and to materially drive quarter lockdowns operating at Nevertheless, profit XX.X%. business right realignment margins many fourth margin on cost revenue full the seasonality profit and expect XXX billion several chart that year midpoint the to is $X.X realignment XXXX, XX.X%. margin our countries, quarter the to margins levels shared leverage shortly. global operating expansion operating us revenue we will to will cost margins. in we reduced call. our structure in BPS margin historic our have approximately peaking margin of that the will guidance each growth line in the of To the is first lesser expired XX. achieve in of benefited XXXX illustrates quarter margin be from XXXX during a Advancing programs XXXX government relief the increase the range we of XXXX than model Due midpoint our and to third in This lower

Cash billion. XXXX including acquisition. the Our of GXS guidance X% XX% an revenue revenue recovery $X.X represents In is with a GXS to the the assumes XX% additional billion organic $X.X to growth operating Cash pro profit currency, targeted XXX% constant acquisitions. plus That for forma from XX% of a XXXX range midpoint

expected rate initiatives portion this are approximately $XXX growth the expected the guidance expected this XX% growth reported to expect Also XX.X%. to year. midpoint translation leverage adjusted last partially profit XX% to million EBITDA the realignment from operating cost recovery offset growth million of at approximately expected pandemic-related EBITDA be result with We positive margin our A and of result assumptions XX.X%. to of midpoint, X%. grow operating by is is the revenue to from corresponding minus These $XXX of the around a guidance in implemented margin with to rate Xx of at

Deeper roll improvement see X.X expect profit Strategy begin the which generating initiatives, year. second continued operating in also of from X.X Strategy out and of to should the half and this Wider We

Slide to by for operating $XXX CapEx about CapEx million Total earnings XXXX flow, to million $XX our assets We postponed and as should implementation we the devices. we Brink’s XXXX see third acquired the cash accelerate was million million for we which cash strategic a fourth Moving under CapEx financing and of for $XX GXS which legacy released that XXXX quarter leases. began $XX This improve included acquired million earnings exceeded CapEx expect purchase about million, for $XX CapEx target $XXX cash XX. million, to another devices. cash and $XXX some favorable of cash businesses, quarter initiatives. of year, million $XXX $XX million, for includes Cash and businesses, approximately cash

important under leases. of we initiatives. We include When operating acquired feasible, amount these should approximately is under increase. to of targets If lease which revenue. expect our is CapEx expected cash not and operating Total acquire unable arrangements. X.X financing expect the under to to assets $XX including operating and to do significant It we is note financing of X.X to devices that lease related CapEx our about economically around financing secure targets majority leases, our to leases million are cash Strategy X.X% $XXX source operating assets be million,

restructuring, taxes interest, XX. slide on CapEx. flow cash and reduced and changes paid free XXXX for comprised to capital flow is cash by in of EBITDA, adjusted cash Free working Turning

million, high of million. due $XX working our free quarter of by to flow primarily target capital better and million exceeded end third quarter of XXXX of cash EBITDA Our higher million $XXX $XX $XX performance the fourth

were receivables. on the as actually flow million day wow. third this have cash X.X prior other We pandemic flow and previously expect we contrary, France retire Government million used X million benefit XX% noted XXXX, U.S. of free deferred an and and $XX during impact primarily shares. team $XXX been to for initiatives the year, our XXXX. payroll the by taxes excluding $XX amazing DSO about conversion and about repurchase ratio to XXXX in of improved flow in that by our XXXX that the million approximately materially field EBITDA would to to in to the versus and To collect ability cash cash resulting free quarter Free hand cash benefited

to Slide XX. Let’s move

range million Our is to flow adjusted guidance EBITDA XXXX to free reflects target cash our $XXX $XXX range million. million, $XXX $XXX which of

cash includes million and We million This on XXXX million, and expect previous payroll Cash payable $XX million approximately around cash restructuring. the working capital other growth to of should slide. for use $XX deferred that taxes interest about in and taxes $XX mentioned I be million an GXS related $XXX year full target few million about moments a an $XX primarily due $XX to increase And our $XXX debt cash increase about of to of around of CapEx I versus acquisition. XXXX. ago, as million, discussed a is

$X.X credit At source resulting the cash chart facility. XX% in the end from up Bars each XXXX at this mentioned capacity cash time of term XX% is bar senior XXXX, issued billion earlier $XXX and $XXX the point cash with to of revolving Other our new the maturities XX% our million and increased we XX. cash, our liquidity and million annual XXXX. complete with below we of XX%, used A, group X, had Below million cash both year free loan December our to reduced we Luxembourg credit correspondingly. you most closed bar, free to combined facility our XXXX. million the of the approximately can leases. acquisition conversion Slide and our an loan cash debt about a Kuwait, $XXX to in each our in In see to April available than free and debt the on XXXX, drawn. amortization and liquidity Our in the on represent balance The acquisitions cash business we notes. in that in bank start and used of EBITDA will top On and XX. unsecured $X.X the financial taxes before that, X% our our flow in those $XXX February, to At significant target available proceeds Advancing liquidity, cash of excluding of on $XXX deferred liquidity. the we our term In June have be no XXXX. the A GXS billion million and GXS achieved our of the flow approximately we Macau expansion on five payment ratio represents in of XX, year complete

February replace is covenant XXXX to X the expanded interest covenant. rate variable plus with max The the On leverage we total XXXX A June, debt L covenant including Our XXX. was leverage secured the ratio amended our plan of of debt rating covenant agreement loan secured X.X bank through term X.XX a our strong. times to quarterly December anticipate our times. dividend foreseeable remains was credit our any at in don’t our We We and the maintain limits leverage time new XX, approaching and future. XXXX

look actual our financial and XXXX years’ our net on Let’s XXXX. leverage debt debt and at illustrates XX. Slide end This slide leverage and at

cash XX, GXS and leverage at estimates on bar of and based target December our acquisitions. the debt completion on our third EBITDA each flow XXXX free financial the The net side guidance, recent

ratio guidance primarily versus our was the due XXXX range guidance, our times. XXXX, XXXX, free synergized acquisitions, secured ratio X.X the flow to total as XX, of debt million At net a fully acquisition. leverage estimating $XXX over given was Doug. X.X GXS I’ll turns Our billion, end combined complete X.X midpoint December just I X.X year At That of incurred of of was to the ratio total billion. at to to With our GXS our leverage XXXX is about a mentioned, of $XXX million end X.X to are $X.XX we completion and times expected turns. the was to the reduce back up the $X.X leverage with debt and of it $X.XX which billion to by net debt that, $XXX EBITDA hand leverage million cash to end

Doug Pertz

Thanks, Ron.

of assets. about strategic SPX platform summarizes me through on devices XX, capabilities our technology our Let is services, digital in our solutions initiatives core cash and What’s builds to X call of and processing and new Slide money executed X.X, the plan of Strategy proven turn which which SPX. our and SPX integrated addition management development introduction the leveraging we an or CIT

stands Our of original were Deeper Wider our improvements. Mexico profit X.X - added called or are initiatives now X.X which WD, added focused wider and timeframe deeper million $XXX SPX and originally, XXXX in which through initiative and during which for these our U.S. operating we are obviously, XXXX on heavily

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the markets and in Eastern Asia. Our initiatives the very intensive in markets GXS include including addition of X.X operations Europe in the desirable Cash XX cash recent

close generation. more achieve We are that from if X.X a to that to identify countries the Strategy strategy we provide of even by top bar free acquisitions, value and X.X revenue of X.X% we I new over bottom-line drive our designed Internally, about potential to will call expand enormous of We’ll platform having continue continue top Strategy industry the Strategy though strategies. expect creating than evaluate we to of nothing to X.X. again growth to substantially acquisitions these cash shareholders. the represents by flow global an for want did confident organic and our and or cash of that XX X.X, solutions. existing value. point continued our payment presence we new in offering is and new management and on execute to cash and The while synergies XXXX, ecosystem future our to enhancing drive expanded transform incremental digital drive Brink’s see end layer would support cost $XX additional acceleration It’s markets savings growth million

strengths other optimize improvement create core combining business our and grow next them deliver to capital and easier new our are in to initiatives, WD the with By use cash that to strategic management of include and working is combining with is new with page, core while four capabilities to about that pillars. Brink’s our complete digital about X.X digital options. Turning these digital continuing core to X.X digital internal Strategy management solutions distinct Strategy a solutions solutions we creating including cash institutions. are as devices management faster customer and provides assets strength money as our things for taking are apps, platform portables, cash logistics differentiated truly X.X, and cost integrating and and low to trace, cash we retailers solutions services access such With operations, our tech-enabled cloud-based safe system-wide and financial cash processing and track cash

other use solutions integrator retailers tech-enabled credit less easy processing for it’s purchases. offer provider deposit hassle-free, with Our are types management to one and expensive and that X.X than of digital

management most and and service to for related these ATMs critical with their their outsourcing consumer X.X experience focus customer. cost-effective operational digital improve kiosks. institutions. cash enabling and touchpoints expensive as extends enterprise to such single their on of service box customer Brink’s, and services them devices the and consumer-facing the we to using of and retailers and X.X back-office, ATM importantly, to flow are financial retailers cost, Our register, With solutions, other devices, consumer-facing big as can all our and internal reduce their the provider. the their Brink’s bank from large cash the By components provide certain These customers management external solution needs of devices optimize to automate many

future. financial is a believe – payment great methods others solution ATMs, services complete managed France relationship another management medium-sized other XX,XXX a for Brink’s retailers. of in the will managed market solution example unified ATM X.X retailers, for ATM our Our cash offerings this approximately integrates for for and growth later We the fully year. with our small institution be of And important BPCE finally, payment be digital a into state online service outsourced to provide which coming will a

many estimated and which processors without non-cash that example, a solution third payments Square with focused for solution their other in stores. cash of on of – are companies a their form payment about use is a customers as processing digital cash, solely retailers' like it's Square's case, a For in payment

is the strategy that customers without the portal retailers designed credit to devices car provides is interacting the just one regardless the of just the is this discussed. deposits orders. can employee. register into access credit empty tech-enabled to make They solution on and disrupting the the Because void. and plan With our cash to XX trips can advanced debit X.X and mobile, we app armored – an day time, quickly, or like with customers. in Brink's banking next in cloud-based cards. X.X Brink's use and for monitors day and X.X, cost, our deposit with next customers deposits the then cash to walking who the Our customers' allowing employees change to their solutions focused the to our store fewer Slide and and device risk we in-store real-time, our cash store partner deposits X.X directly – retail retailers' the on fill bank or of to reducing devices, related

different and have at feedback These deposits underserved very a the account customers' historically of All of of services been customers targets four the accounts subscriptions, that or – around great retailers in are while slower launched pandemic, large settled the With solutions sold using our their In over XXX typically slowed included by countries potentially been networks can under-vended either the completely their network, X.X industry, choice. huge to initial bank service, deposit monthly has banks the labor we and have the X,XXX currently U.S., X.X cost that several in by bank ensure a unvended. are store their risk. we've are from including these These single seven been fees. in rollout by subscription. positive. has cash walking also are at customers the that source and all about To-date, X.X, bank Target deposits strategic are

with new – well. crisis XXXX our to company summary, easy with finally X.X from business movement cash and I'll payments show cards even development the related and X.X, while current digital with a and X.X experience open can With solution X.X cost retailers Slide our management realigned remember, credit the as for questions. to now cash close including opportunities, during will XX; growth in With retailers to provider. cards. of cost X.X, debit management solutions. in receipt only as single Strategy from debit minimal And a stronger emerge provide with ever EPS. and EBITDA, will and billing. convenient to single now from make ample and rollout. improvement I'll cash our that substantial our increases margin am all expect we of plus compelling for full the integrating that, And supported in benefits the Strategy cash XXXX results. substantial guidance back which our it global turn and X.X our digital a is and while next reconciliation our visibility also strategic strong our margins, offer Drew solution for services to management as managed opportunities, post-pandemic This structure operating a global On strong initiatives, lower accelerating expand we with and strategic than to up in solutions handles and stronger of credit pandemic, plan confident operating that seamless In presence the level I confidence expanded with a pre-pandemic ecosystem transparency essentially portion EBITDA sheet, levels revenue, by in profit settlement demonstrated slide, as preserve global to profit, cash a our a to Brink's quarter the global will a our more and profitability, now and of team, of proven profit core the expected we existing take liquidity, rates, forms includes fourth footprint, balance cash by as

Operator

from comes Sommer go of question Securities. Tobey ahead. first The Instructions] Please Truist [Operator

Tobey Sommer

was could the the towards part potential between give you you migrations and delineate you. color Completes on some your as of and answer, Thank wondering could it in you. Complete? from Brink’s CompuSafe customers I progress if Thank Brink’s new maybe us

Doug Pertz

Thanks, Tobey and good your morning. question. Thanks for

As a substantial I over are on is a chart and that of these the target customers. pilot as customers of XXX, we that think we can customers number laid number out, well there see large said opportunity is or you XXX customers that

XXX we see a such for to other that’s Our which both the us suggested strategy customers. we’ve we after is fair think think XXX is road over. and converting what go why convert a customers of means you existing high customers In number number the customers plus as down CIT And them customers, is for words, customers to as with well, frankly, benefits. of value it’s and better existing

words just cash represented the that of now by small out either and serve So, our industry are with have that’s their to large a accounts to only And starting in strategic one cases test by a thousand prove unvended the to bank with totally us general targets is those the more process second and today everything total plus be then relatively convert in to able them. CIT. each in walk and plus locations to or customers to than pilots their the portion other us of seven of cash or roll have the focus bank, are big is to needs management unvended,

been going So, a focus those forward. we we that’s is by think said, I it’s things our see the real base unfortunate, the but focus. that both little to us are give a now And starting of which on as bit slowed will pandemic,

Tobey Sommer

feel could of And customers? you follow-up, the that products need development channels the appropriate into sell then, the and is internally ask, sales will I how Thanks. to new you as existing a

Doug Pertz

X.X channels. between that difference and selling X.X go it primarily is Complete strategy. existing today through is X.X. Well, words, way X.X is that’s Brink’s we part market the where our the of In other to sales

of of at our those part to next market out. be as strategy part that level looking therefore We and as go channels the will expanding those strategies expanding X.X the of rolling

customers been by the that Our are we our CIT are has and focusing underserved or targets to as customers, our existing competition we go first serviced as focus to that biggest today, well existing service again, on.

the as and the latter year a more throughout you’ll with glimpse X.X. we So, that, this of we’ve part that see of go Tobey, given of

Tobey Sommer

it. appreciate I

Doug Pertz

Tobey. Thanks,

Operator

The question England from next of comes Berenberg. Sam Please ahead. go

Sam England

how revenue the Thanks points for XXXX. leverage guys. recovery the the margin towards guiding by to And another on are taking first in much operating in one, be operating you increase questions. cost that wonder Hi XXX basis just I a is of saving? versus further driven of and expected restructuring

Doug Pertz

at a if look, take leverage. that our of you the up. and really our Sam, revenue, you Well, the guidance can the at margin range revenue that’s see And goes percentage various levels

or range, the XX.X%. sorry, - end XX.X% we we So are talking XX%, midpoint at and midpoint am I at about are talking At at lower the the the excuse of so. me

basis as percent you plus a So when XXXX up higher get plus that’s XXXX, over XX points approximately leverage basis you what about – are points And see a goes base. XXX put the XXX% a can this back of margin. it little we to to XXX the talking

So of top step combination the along both on in percentage leverage margin that. the – improved improvement it’s or a change, the plus of the curve margin

it’s because best not FX That’s if a in in is Organic constant both. same. margins. expect same – the guidance. us we present changes rate of improvement this the as So gives leverage will FX currency the Not organic. recovery all which just and flow a through is revenue not recovery

and expect both more talk numbers. showing it bit about are them a that’s Be our glad we we where in to in detail. So,

Sam England

GXS And across of the sort opportunity a term follow longer businesses. Thanks. well, can one Great. initiatives then, the talk is, question Okay. acquired bit to strategy you about the

the are to deals Now you got at look from, now any to chance completed at businesses? those how and better and take a bit arising you’ve those look acquisitions a surprises of there a

Doug Pertz

the strategies our surprised excuse strength will – the roll helping solution been to Sam, helping a desire Yes, we’ve teams, and new management I customers and we develop clearly the cash primarily excitement be in been forward. we’ve the which of think, are me, provide better the that strategies Tobey, out that on about pleasantly business be around going to focused for

So, process. that this had new we had as out in out markets, of can on we’ve new of platform. new XX we addition give of that XX we but those I gaining terms great start total, plus us top we The in steam a overlap markets got think some that – locations XX already in roll those roll those

employees saw it’s teams, And even the So, pandemic legacy if similar the GXS think during our very are focused other in key the you the strong which And is sustainable for a priority healthy, fixed team well, going to we a that. a I to was that combined, that to on well future. the, example are bodes that think to safe not focused that are year, a Brink’s to Brink’s on the of the our willing jump assure very priorities, that I what It’s there combined during we cost be and the of to good sure obviously fourth and primary the us very strong. third results you quarter assure side but see or a were and we one future be business those restructurings, GXS really going our that’s reductions, in very through the gave to for that was onboard this stronger making will, management good. GXS third teams willing as restructurings, are it very encouraging do Fourth quarter. was

Sam England

you. Thank Okay. Great.

Doug Pertz

Yes.

Operator

[Operator Instructions] of ahead. question comes Kessler Imperial Jeff from next go The Capital. Please

Jeff Kessler

– and on good. wondering if any congrats global high business? balance am and end your has quarter looks increase you the on increasing The recently I yet the that worldwide Thank effect guidance had the prices in and silver, also

Doug Pertz

basis depending Well, come has and think tie we jewelry on a Jeff, where come We continue think we’ll or precisely second But half in will back nicely we of saw I saw, in whether year will least part the certain think business the see pandemic this on we That know in key depressed are. precious and year, strong to it that. very we started the downs I what business in metals, that XXXX at year. I don’t back to business next business gold pretty about ups particularly the the year. first for business really global especially a can particularly the the during this back diamond the last of lower of

of actually circulation in And so, think will outside outside up significant cash that pick good. in U.S. We Internationally, We that that be to we increase in cash slowed some. the shipments U.S. some shipment are U.S. actually think last the down the externally reported of should we but yet down externally year start a the as again.

you other there in seeing I see, and strong think improvement business going metals think than is and to suggesting just gold other what business. our continue business indication global I that this is of business combination our to the be of melt I a diamond a are over one that we’ll things portions those think and year will in pick and demand our and strong So of that’s precious jewelry BGS up part combined

Jeff Kessler

is integrate at did performance of looking their you morning as speak, acquisition are have cash business hands cash That by in but it, Allied would to talked but nor that to get it’s that fourth might it’s of business some not yesterday with you to what – it begin not not somewhat – the or terms as Secondly, to you get that good attached you at you And so basically may into would GXS have completion and your interesting business? has the out Allied still some closing competition the DNA – no security it, thought or are want about integrate management. looking to they to business recycling of to and XXXX obviously that business to Allied elections on, who cash who management do they’ve you afternoon that primarily to brighter announced quarter and card begins GXS their a or is Universal. as in about as you would going a this begin that want saying am have real electronic Universal the as a – I what do have there. own they want strategically issue

Doug Pertz

script actually couple slides a Jeff, in our didn’t competition. We think, I prepared our on our or say things in anything Well, that. in or remarks about

I we comparing your comparisons. So, not sure those am were

Jeff Kessler

Those – that’s me.

Doug Pertz

Okay.

on clear doing and be to we we that are not want just I So are what comparing how going. are we

the like other we of think about Sam that top and and are talked future change that fourth based on deeper with on for is will cost and have revenue of made excited we the question that, as leverage we cost quarter, we going in We as recovers to continue fourth leverage we and earlier top with our gives with had get in quarter the the to we we’ll and reductions additional we said a think the forward. going wider improve very that forward then us XXXX beyond. levels about continue great on think And comfortable we quarter step to our reductions structure and basis cost sustainable do third

of about. that heavily of X.X It layering the are this with said, numbers. our you part that around some of things top is on in our talking Now, now is strategy, not that’s

call that customers recyclers the for big so of services, to we we plan a larger have is forth. solution the going what through part a managed box cash enterprise-wide related stores manage of We and complete how lot have and – X.X do

is of part that so, our strategy. And

UK and organic do. are do including several the with part business, There our at the we our continue strategy that strategy ways cash that well GXS We in are we the that well. South are as is going as we’ll what X.X a if external pieces and and going cash we drive to taking U.S. something that Retail African becomes to might to the which the appropriate at on But in cash available. see Cash have – group business both Solutions to as looking of be that, as X.X And look business, as that what doing are related be are are always be a certainly left just we

Jeff Kessler

you Thank much. very Great.

Ron Domanico

Thank you.

Doug Pertz

Jeff. Thanks,

Operator

you the quarter our concludes Brink’s XXXX Company’s earnings Question-And-Answer today’s presentation. This Session for Thank call. and attending fourth

now disconnect. may You

The Brink's Company (BCO) 23 Feb 212020 Q4 Earnings call transcript