BCO - Earnings call transcript Q1 2021

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Operator

Hello, and welcome to The Brink's Company First Quarter 2021 Earnings Conference Call. Brink's issued a press release on first quarter results this morning. The company also filed an 8-K that includes the release and slides that will be used in today's call.

For those of you listening by phone, the release and slides are available on the Investor Relations section of the company's website, brinks.com. [Operator Instructions].

conference recorded. this reminder, a is being As

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

Edward Cunningham

everyone. Thanks, Keith. morning, Good

focus in exchange the in rates found periods. morning's the assess and make CEO, we results. including costs The call provided all between in which and Ron exclude primarily to X-K Joining this Argentina's slides of and a be the on operating over operations, inflationary acquisitions items With are an basis, the appendix accounting dispositions, non-GAAP matters. to related of currency CFO, in results related to today providing turn it the these of can believe basis. highly internal non-GAAP number our eliminates which to investors costs, me I'll Doug. to restructuring non-GAAP and non-GAAP the quarter website. are filing, impact comments the our of the on results certain press Venezuela and our Accordingly, that, Reconciliations on both year. release, items, reorganization for of accounting, first Doug loss compliance on costs also results and related We're constant currency a changes from prior reported today We GAAP easier Pertz; morning, our results This Domanico. the performance results

Doug Pertz

and the of Ed, This for demonstrate power Thanks, first morning, we increased and clearly morning, good and us quarter joining earnings today. results believe resiliency we thanks Brink's. that announced everyone,

-- by Our grew quarter acquisitions integration points reductions, ago Europe. ongoing XX%, results successful XX EBITDA revenue first of the strong It's was more with and XX%. were impact XXX remember per up share. quarter to not comparing and to increase affected XX% was in EPS that a driven margin by improvement of year shutdowns, to to the COVID-XX. points pandemic than the fixed materially Adjusted XX%, GXS extended of X.X%. On basis $X.XX was Operating important XXX offset reflecting we're margin basis of to which cost mostly profit reported a that up basis, our a XX%, grew

fact, In week or of last seeing start we impacts. so those March did not until the

year, continued this recovery organic second forecast growth we the to We profit revenues an to and expansion the and basis, through basis of operating we're accelerate as quite was we move supported said by on revenue the as expect reflecting half, increased by leverage X%, this points, down while organic continue year's revenue profit margin recover. fact earlier, an this as especially So margin encouraged from that XXXX, pandemic. only and in XXX XX%, operating quarter improvement, we

management, Strategy we On purchase highly XXX,XXX accelerate we great have which $XXX of ahead $XX-plus Xx PAI schedule, platform EBITDA. to quarter, the services completed final integrated completed approximately provides original the and XX we're These acquisition. our of well model its targets exceed PAI guidance countries, the the largely of X, and our of PAI which $X a April EPS rate are been next in cross-selling We're business about and our swap. on detail over cover XXXX track $XXX realized. ATMs span in midpoint the cross-currency GXS for in more EBITDA of of multiple million we GXS million. can and scalable this managed in includes strong add of EBITDA and per During PAI as on for is share, phase pre-synergy to purchase businesses, a a Brink's. acquisition and minutes. million, returns few opportunities the reflecting Together, PAI brings synergy slide. I'll to North of are guidance more America. as positive and growth expected X.X to as increasing year on our adjusted approximately $XXX million impact at full well which I'll PAI next more approximately year review a run revenue synergies

and Finally, happy an will and to X-year present targets. we financial when October details that provide our I'm Day in to we -- strategic plan plan report our host Investor behind prevent the

SPX, to organic beginning our revenue our additional $X.X are acquisitions part start assessing a becoming core culture. and to GXS our embedded at we're growth. across and core initiatives business wider we are initiatives plan, excuse which of Our strat the are X provide X call WD footprint, operating digital year. business global taking initiatives, cash acquisition years of billion PAI Strategy our drive and opportunities has Brink's by which continuing now in layers, current We're by on and driving support and liquidity, that and of our our the second X X.X plan. boosted strategic subscription-based are -- aimed me, to lean next already deeper X-year leverage strong expand margin growth which system first plan, streams initiatives our X.X recurring with driving

may level. legislation related efforts an also pending include on the Our recent Investor event the opportunity the growth Day cannabis, potential outcome federal at of update to

driven midpoint acquisitions profit organic growth to growth XX% by summarizes Turning revenue to continued increased and primarily billion, recovery. the next is our at high year. to basis a targeting is growth points an at equivalent of reflecting our increase range, XXX at of Operating XXXX. $X.XX from pro to points. Slide XX.X%, guidance of page, which XX% XXX the revenue We're $XXX updated again, over for X inorganic basis forma growth XXXX midpoint and about Note increase end margin margin that of million, of the revenue, last revenue

to guidance per which of of XXXX Our $X million and midpoint of to XXX% the adjusted of our It's growth pro $XXX around target at is just revenue also forma of EBITDA XX% guidance growth EPS the top us only to for at under midpoint gets back important range, note share. revenue. XX%

approximately Once and revenue margin. to profit half again, we're the $XXX of second Our year. accelerate EBITDA at XX% guidance expecting growth is in million the

the cash have U.S. the year of recovery from is quarter compound Similarly, Consistent year, is and prior circulation pandemic. during pandemic, the historical percent than the cash a annual prior first versus the also also Based confidence continued first period on actually Federal History which quarter quarters in periods be currency cash shown Our acquisitions, on the rate. over of of normal data, sustainability in to X%. X-plus of growth economic first increases reductions suggesting with are its about euro levels XX-year growth during increased continue higher internal XX% quarter, what published material versus the annual many historical leverage XX% Reserve elevated operating remain economic of rate in usage. during is GXS up up might U.S. and the as of stimulus, sustained full circulation external based contrary will cost percent has prior the a the expected seasonality. and that in is to years, the use in increase compounding realization and -- lows that driven our in pandemic benefits and over we recession by a of payments, in from cash

even demonstrating of cash cash persistence getting retail business. X the in-person is as still left-hand strong and, the at PAI's U.S. about predict In reach Bureau, the pandemic. last and credit. transactions internal ahead so by number XX%, a increased data are to retail the also years sales that Census And It's projected that These to PAI this according trillion cash and Our in of management withdrawal feel indicator stronger. value in-person independent of away when person, U.S. payment than retail the first in cash Again, is with expected X/X fact a year this when at Brink's the side usage And X demonstrate of most and And in-person both spending usage sales in X% XX% notes XXXX, size year's growth ATMs transactions, XXXX, value combination one the these is supports it on growing. from of strong use of graph up forecast a of in for factor. and on sales over that is they much we -- will and not cash is importantly, same more. important account was even XX% also it pandemic, used over case, the continued more that is not of also opened the debit a The the of a were was ago $X of of leading that XXXX, quarter internal cash what very remember a usage. experts to sources form is external acceleration year, will be of still total The comes support retail acquisition going on continued most spending than resiliency during over growth. even cash opportunity also data popular cash that the sales. for the usage much points payment through even flowing retail sales transactions up the metrics done great e-commerce and Brink's. in-person support over of a of this and quarter provides is the the at is during data, in for growth fact, quarter on was from over retail our larger now our based The slide $X long-term operations trillion of pre-pandemic, compelling. forms reputable to the as first last presents Slide pandemic data,

of and for to will that revenue, a our turn very see review through Please strong over visit it now organic increasing cash deliver on growth create we'll growth data this unvended value retailers, a visit I'll solutions shareholders. more on sales. that, retail focus that we're highly Ron investors.brinks.com. financials. strategic continue for large With our development market acquisitions and our of cash and Please organic digital revenue our on Given to for website confident to

Ronald Domanico

a is of EBITDA; that we the go X Thanks, next include revenue: Doug, profit; currency in reported quarter quarter metrics format same operating current Slide and the years. good X the detail current on slides. on the constant results each quarter, covers into the quarter for and EPS metrics each key prior the of for day, everyone. that adjusted I'll these in X and

we they're included in first Turning X. Please for they to which months at ownership, integrated, Slide time that organic disclose results. XX the acquisitions then are mostly of separately remember and

more XXXX, where $X or than as or quarter last weakness first revenue was pandemic-related the also this in a revenue versus of organic revenue second Europe, was in for X%, XX% our in pandemic. acquisitions Reported by XX% PAI in was a by than the euro recovery XXXX contribution in consistent million, quarter the currencies. offset million revenue acquisitions. were governments of quarter was businesses announced first decline the by lockdowns strength will post-New more quarter XXXX, $XXX recent include was February from of results quarter and GXS the year. Luxembourg, in Negative the million reduced year. include $XXX Kuwait reimposed X% last fourth currency acquisition. which the constant wave Macau, Year's Our the general, response Latin with up acquisitions completed to of ForEx In XXXX by as for cash the except GXS results up American XX% offset Starting the

First quarter currency, operating in constant organic was growth XX% XX%. with contributing profit XX% acquisitions added up about and

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

country in mostly the first methodology, and due the charge quarter by a was conditions X.X%, margin with corporate. with consistent X%. for previous reduced quarter the accrual reporting methodology profit for $XX change quarter million, doubtful the in Segment bps operating profit bps change no accrual More X.X%. the reversed is accounts There million. the our XX-Q expense increase Forex in for minus GAAP, methodology, the XXXX from overstated million the Under and up U.S. was profit or the Reported primarily million profit and in $XX.X results pre-pandemic operating to consolidated a are overstatement, below and appendix the the corresponding just by margin associated quarter. pandemic an The segments. operating of XXX updated included in segment our XX was information operating to for our methodology allocating first press release. quarter first $XX million XXXX profit $XX.X on filing. country resulting was operating impact with Corporate in operating $X up in the included in our new allowance the

X. Slide to Moving

period $XX associated $X expense up acquisitions. driven was higher was year, higher due expense last the million, quarter same million year, higher GXS than interest quarter in with Tax last $XX million million, primarily by $X the to versus First the debt income.

in Our of line year. operating and year. diluted this XX% year reduced with by $X.XX the million weighted million $XX Dividing shares profit of taxes generate XX.X $XX average operations. $XX by expense, effective from or last share, is last $X generated of up $X.XX million quarter interest income interest per quarter estimated it $X.XX other in versus earnings outstanding, million to in XX%, million first continuing first million of was tax $XX of XXXX full and at non-GAAP by rate minority

income GXS EBITDA, Our and $XX added was EPS quarter which quarter $X with about due resulted last securities our third prior marketable and reduced Interest primarily positively gain X%. Backing securities of the $XX discussed, million, comparison first started million versus and shares $X.XX a outstanding on operations a X.X to million or marketable gains from $X.XX year versus and in cash of up year. expense impacted $XX adjusted $X million by on continuing as repurchase just XXXX million To from $X EBITDA, compensation and million taxes, versus from calculate in XXXX, $XXX adjusted the by amortization, loss depreciation million, XXXX was of $XX share-based which up by the about we plus was were acquisitions. million. in million noncash out XX% share

cash Slide $XXX leases. million devices. $XX for for CapEx was $XXX million, cash or million and cash for $XX of on CapEx which XX. year, Now million CapEx which on million financing and included for under CapEx to PAI. cash Total purchase for acquired This $XXX $XXX GXS $XX $XX operating cash we expect of XXXX revenue, about includes approximately to of million This Brink's million devices. legacy another cash million We assets businesses includes for acquired the $XX businesses, million devices approximately X%

that X.X devices, initiatives many purchased of We cash cash to note cost whether additional sold. about opportunities devices included subscription devices. increase. expect minimum targets. It's will component The intent also these capital leases. the arrangements. increase a financing assets leased, to the operating we as our of these above operating cash of of utilize million could our our important If as certain to CapEx services under with It's of unable agreement lease a source of cost acquire or if countries, in under to be CapEx and/or returns majority secure identify $XX to finance operating our we're could leases deploy lease Strategy

flow cash Slide to on Turning XXXX free XX.

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

cash restructuring. million includes $XX be capital to acquisition. should taxes increase million due cash Cash million, of This million payroll to debt and for $XX XXXX debt and a about primarily year $XX working additional acquisition an about the approximately interest, growth about GXS related $XX We of full expect in million, and PAI and around to other deferred $XXX use related the of payable. taxes to

versus As an year. discussed, $XXX $XX million, target last million increase just is net of CapEx I our cash around

XXXX flow pro our of of $X.X and liquidity. the in forma cash approximately quarter end the in million we complete acquisition. last In At of Kuwait, cash approximately free impact to this the considering year, the billion used and flow flow bars end year-end had about ratio XXXX, target of debt XX. and top our cash Luxembourg. XX% A, generating and can the March The Macau Below to same PAI deferred of the cash free GXS bars of acquisition last we of the the the At up XX%, bar, to have XX% XXXX, end Slide the completed $XXX and both point in of acquisitions financial year, first to cash each excluding cash the midpoint you would the significant to loan of $XXX PAI, $XXX our Other available impact we The on EBITDA XX, leases. an see credit business debt to million, year in and million achieved below basis. the about free quarter At a credit from at source year-end target, from $XXX revolving conversion XXXX million facility. which than of be and our cash. and XXXX. the $XXX XXXX, chart maturities payment billion, have annual amortization million Our liquidity, million. taxes in XXXX; of our target in time we're that, cash our on of the expecting this $XXX on of the Advancing flow our free facility, available before is $X.X each cash X% drawn, our between no includes our our capacity represent of liquidity XXXX; term represent

XXX. limits XXXX, a notes reduction increase bp a XX, XXX the April new XXXX our in pro we on swap approaching covenant. bank leverage debt leverage EPS in including covenant should is at A, amended was issued around XXXX X.XXx, ratio secured $XXX in replace entered don't term and any year, XX, debt June. $X L+ agreement a Last time $X.XX. March million We is interest XXXX variable February dollar-euro through XXXX leverage cross-currency and the reduce we secured XXXX loan million covenant rate, The interest about that cap with by expense rate forma anticipate On XX-year by to future. U.S. foreseeable Our interest expanded on the our total into We the locked last our rate X.Xx. covenant

including U.S. frozen plan, and Our XXXX. and Voluntary benefited Act from the legacy liabilities, plan the Benefit the rates rising pension or Association, Relief discount American Recovery Employees VEBA of

As current to to until result, no plans XXXX. a expect make we assumptions, and these on based cash contributions

quarterly and our Our currently rating strong. remains per $X.XX share, is credit dividend

just net Let's target $XXX free and year-end the That the debt net end our debt million look incurred between versus adjusted which, over by This X.X Net turn ratio EBITDA our total million XX, PAI complete combined Doug $XXX at million, secured With X.Xx. our of cash back the range billion for illustrates $XXX to our XXXX, debt with financial $XXX was to and guidance million leverage our free GXS XXXX, leverage that, a At range the was is acquisition cash it turns. was synergized I primarily over and half XXXX, total end range million billion. mentioned, $XXX at $X.X a due December At was flow our debt to the about the estimating fully Current acquisitions, given estimates of the billion, I'll and year-end GXS acquisition. to to year-end of our up ratio $X.XX midpoint to the a strategic a up XXXX completion on and reduce debt to EBITDA PAI, guidance midpoint And $XXX at flow XXXX XX. million update. X.Xx. actual XXXX, March of our of million. leverage expected leverage the XX, and of are leverage estimated leverage XXXX. $X.XX Slide XX, and of we're net slide for hand cash to XXXX, March $XXX include of at ratio year-end approximately as

Doug Pertz

Thanks, Ron.

of layer that our revenue basis bottom this little year. rate in growth builds during now and Slide strategic years our talk covered through in over and annual plan, organic income on of Let's annual X bit compound which a and on X% X.X the executed XX strategic period compound annual per a strategy. the SPX, XXXX our time current initiatives cost initiatives growth proven growth of core for resulted reductions. summarizes first supporting to outlines XX% operating The plan

the the XXX end revenue guidance, at XXXX XX%. margins leverage the recovers improvement high going of targeted to X operating operational guidance savings, the points supported These cost productivity OP is Brink's which achieve earnings lean lean affiliate be forward. wider XXXX realized culture. priority have system. demonstrated our this the and SPX and low XX versus and continuous cost center each initiatives over reductions by of even of as are recent reductions deeper are expenses takeouts. higher of Our of the improvements year changes cost improvement introduced and and reductions more. These evident restructurings structural will been is reductions quarter over yielding to other our lower newly last material from higher driven route $XX our guidance, initiatives, at and XX% money business into cost cost and part of levels. target continue as through in million a leverage Sustained the fixed year's revenue basis shows last operating pandemic by margins from with SG&A and margins and with initiatives implementing including expanding more We're XXXX, core to processing driving benefit by cost as by Brink's This countries our end leverage, in organic experts initiatives proven optimization, in country standardization of different driving margin dedicated The

continues points as revenue over growth recover, additional and is our add As have since these profit acquisition strategy our including our XXXX. The on operating basis initiatives layer leverage and about overall first drive expected to of where the WD to support spoke earlier. and represents XXX of strategy, to post-synergy acquisitions margin which by we in middle to invested XXXX, will X.X yield SPX, $X.X organic as are Xx acquisitions Each approximately GXS in basis. billion growth a our acquisitions PAI, will XX collectively close EBITDA we well, strategy

GXS and the strategies we're CIT Strategy. Brink's acquisitions our the core With assets. which We largely includes double-digit platform new drive continuing strong our SPX Complete X.X opportunities top form foundation complete X.X that, through support integrated cash capabilities well introduction and digital and integrated as and new leveraging cash of focused as We will earnings money of and in to technology run and recognized, to devices, processing future. and businesses solutions development by an a rate ecosystem. call the synergies our our acquisition very the layer, What's services, additional it for identify evaluate growth X.X X.X digital strategy offers believe the and core themselves, solutions broader the into

revenue supplemented drive designed this layer, cash the digital margins growth new of by base will to by and part which organic starting increased expect late this latter higher management is or offering and payment strong We be year growth solutions. that strategic

tech-enabled with these digital solutions as processing. deliver solutions in and easy low-cost taking use cash capabilities complete as and them to us apps, portals to working services we're system-wide distinct -- as use cash track-and-trace, of including include capital that we're digital our X management enables retailers our This our core core provide X.X, with pillars. truly mobile logistics combining platform Slide devices, for we access digital cash to to and operations, XX. strengths, faster to creating integrating options. cash customer payment money that strategic Turning and a By easy other are new differentiated With management

solution and, cash that to -- hassle-free, cases, purchases. as card in credit a offering tech-enabled cash as is X.X processing easy debit left-hand On is settlement complete effective as least the digital retailers most side, timely for a and is cost at is use and just just

X.X and working of device, the optimizing how a for The credit in card capital, to addition an delivering device, corner experience reader, to to deposited Page our right-hand XX cost theft-related illustrates upper a cash solution Brink's cash and provide payments. processing combines In digital box into cash the reduce solutions app similar similar losses. the labor X.X credit an and to

Our extends to to process high automation their provider. and cash enabling and retailers, settlement single enterprise the back service to cash from box of automate X.X volumes and the solution as to office them optimize their Brink's register using a big large banks

Given ATM our acquisition just of moment. PAI, separately I'll in X.X cover solutions a

businesses. our Most a on solution no with noncash payment processors offered are side, payment digital small for X.X medium-sized the right-hand provide X.X cash. methods to unified retailers handling processing On solution for solely solutions payments, integrates solution all digital and our focused digital cash management with to other payment

cash they their payment payments. XX% For represents cash processors and managing of Yet example, that offer solution Square not do retailers about stated has in-store for most payments. any all

solution X.X that fill do Our just that void. designed to and is

on retailers retailers expensive I just to and to With ecosystem their can the converts their focus core, institutions customers detail financial full a more the the frankly, in over PAI important our business. wanted bit we of through ATM touch point summarize institutions and digital as reduce cards these are part operate the next strategy Brink's, businesses. consumer financial also use an importantly, cash X.X, ATMs provide acquisition, and other cost to recent critical their that several services, range to for to the also Day. devices X.X more are our that a are With to Investor not of and and, of needs pages, devices. a and of By preamble cash outsourcing

in needs is ATM the of be France range this managed relationship and services Retailers on as complete ATM services as fully a a of like of full of growth PAI, networks, it market an to complete main than source that for of that cash XX,XXX as coming this to We institutions right-hand steady tailored will North to the the ATM-only enables array has outsourced and branch second customer offer in year. moving estate financial a portion half BPCE of as of for interaction are FI desires, service, a be which ATMs leading will solutions for and of both great as service similar PAI Our example PAI And an well ATMs, believe managed partners managed for complete services and a technology managed outsourced services. including more ATM up America. offer source they their to their in rationalize offering. need us a services Brink's, illustrated offer are as slide. on we been ATM expanded ATM relying in increasingly a

other Tier financial Europe. outsourcing the us and again these second-line by Before page. U.S., institutions, part, EBITDA some operating our of institutions largest value projected customers for expands a of to higher-margin approximately management in outsourced for potential for streams ATM the PAI global the proprietary of services ready strategic ATM now resources solutions opportunity, retailers, PAI to and U.S. to PAI single-source PAI with exceptional in and the has multiple their strong for people accelerates for year full The X Tier again, business for our especially up and employs the in PAI execution full million. the summary, and provider focus a locations. free business. for XXX highly managed operations an larger our most ATMs operating end-to-end management credit for market as and ATM access than to and and another in potential partners owner active revenue also and PAI to on with In primarily basis, ATM offering ATM retailers to is range other Dallas, Brink's outsourcing starting a The scalable, These slide of a to accretive asset-light some include to deep ATM functions. and be both look management our and X and X-year services. $XXX long-term the that of outsource were model, by of and and full U.S. and unions, illustration We also range Dove, X.X of service team systems. technology obviously, I'll David of generate current and both gross ownership, as to and goal FIs, of X.X On PAI benefits said, with CEO offers more starting in expected SaaS as customers. regional on significant growth our XX,XXX-plus experience it believe subscription-based million is brings industry adjusted ATM FIs. source. us opportunities capital blue will technology summarizes cross-selling U.S. services to is plan. next By services approximately cash provides basis. X.X -- revenue a BPCE, XXXX significant this ATM merchant Strategy develop with as the Brink's leadership longer banks operators community Under XXX,XXX technology performance, should range go platform can as services cash And recurring and PAI's of a with its Brink's increased contracts. the $XX guidance private-held ATM FIs even is customers a retail in In and to ATM recent for this revenue networks our services, is tools services of our Based customers, higher-value, platform we and well a and with one banks year. on offers our X and all services comprised be close our PAI earnings from And be PAI maintenance ATMs. term, words, addition a fulfillment just first-line banks to offers increasingly to of about full cost services, and of the of financial synergies. and and lower PAI-owned shown market is include, section the

in to XX%, EBITDA We guidance $XXX-plus midpoint of over and up up revenue beyond, expect XXXX with XX%. EPS substantial XXXX XX% up and million improvement

not does XXXX contribution our any our guidance As a include from reminder, material X.X. Strategy

post-pandemic operating be enter a substantial by what than we that economic with robust believe and our growth will stronger brings will we leverage as As emerging recovery -- us underpinned recovery. ever, we opportunities increase with

of under in We new strategic Once when positioned year expand we cash growth to an to and execute to our realigned who and turn Day. compelling members the on economies liquidity, forward our look been for plan information to team for on around proven strategy these host proven global disclosing last global I want their We all their deliver have ecosystem presence digital We cost a then pandemic back global execute reopen conditions. up sheet, very have and under recognize plan. and the a accelerated we solutions. Keith, strategies and with them, a management, are global proven of you, thank as a Investor families. questions. has our ample to to our difficult employees well all results, strategic footprint, world our the strong tough ability to I'll effectively it structure team that Thanks again, open as the expanded more we balance our

Operator

first [Operator the Sachs. comes question from George with Instructions]. Goldman Tong And

George Tong

revenues across gains, Can pricing XXXX You share forma X discuss outlook? indicated you on each with that basis. that a return your market the trends of to of high a penetration this market seeing pro guidance support end you're what assumes XXXX and your geographies

Doug Pertz

looking the geographies significant if at looking a and that's the pricing and at pretty everything you're George, else. all Well, question

quite different seeing that's I geographies. we the but at not the through is the really first each that a geographies, will was think to a other in different very but we start sign. accelerate to U.S. many dramatically, what saw in of good are accelerate think and improve, continue paces is recovery we quarter What

of U.S., second what they back. economy most the an will our see be lockdowns like that's and tunnel it's only said of Europe material have guidance, in as that. that really quarter and most like about part of If is some suggesting and Israel, a are things XXXX but our below we going. see of vaccines And this from year we we and ahead as to of in That's expect all, government shutdowns that end is in start improvement beyond. to the where latter we're to for things those and for this seemed in example, the the while particularly didn't lockdowns, light we clearly guidance this year levels the is government-mandated latter really way, Remember, suggest the will consequence I -- acceleration comments, was midpoint start our as high I a and not quarter. to back the see of the as starting people part our with tougher-than-expected February U.S., which to clearly, end think significantly X% any European the think the in back, see to of markets, seen, range. mandated But I increased continue And the they but drive will we the true other -- we top in what we're U.S. countries, half rolling economies closer come you think that have started the organic revenues started come in make out in a really of long

George Tong

a in And discuss Got you lagged the the other growth be do performance? you geographies? mixed it where it. potential be each words, X to in that quickest? the just on And helpful. expect Can to recovery relative the follow-up where most In then of do or That's you question. most expect

Doug Pertz

the because vaccination probably in economy it's reopened our the until and really markets of of rate, Again, an of Israel end jumped I think we'll that. other is that, Israel, ahead, one ahead they see but quarter interesting the steady U.S., of the not countries. it in example recovery and when in the that's

you It's when take it's think and will vaccinations I move be -- maybe key by some the of they a that whole, forward. happen So lagging U.S. at the and as least but other X/X if markets, drivers as Europe

that Europe, in or of strong levels see at America, extremely back including continues South already. Mexico of cash terms its XXXX use Certainly, other And cash in continue of to to platform Asia. at countries, new all is and though, usage the recovery, places we some America in those strong expect, Brazil it strong. for those in varies. locations, have like be in and extremely but countries in revenue we're lagging is South We in Eastern to positions

George Tong

EBITDA you to expanding where That's more your your it. savings into margin term? strategy? countries you're and America the you Got cost outside side, then most on Can drive initiatives And elaborate secondly, opportunity deeper helpful. help And expansion. expand see cost longer wider cost on with of what for can margins to North

Doug Pertz

and reductions on improvements, Well, now targets on country the we Remember, of we've the provide will that's the time of in margins and ground. out expanded the in out Day, some to Investor that cost with comments think the more some laid XX, that the indication the did Page expand until longer layering and I we appropriate But the won't in countries. get share what we that term board. we EBITDA to to our XX-plus our across on we're provide to laid rollout numbers

we'll our cost to is improvements countries, a strategies, the in capacity XX culture both and more So which and as specifically lot it But same of in improvements, this the that we these to. lean the basis revenues those well give as from our then improve and depending suggested through with project to roll XXX base GXS additional points have This we've and -- X-year $XX that a recover talk year we significant margins. those capacity, be then improve our us me, probably strategies countries the new benefits the these programs those more with associated customers laid short us not drive to costs or from to next that and laying to about two continue proven business, forward. This already the continue to countries, improve today our our is our and term, X-year, million year, X.X then implementing core bit that part that, about do that to growth a X.X those improvements way the going service where continuously the business. growth the and with This additional to excuse -- would we'll to on and year. what's including And top and as strategies. leverage then we're little as is ends. adding next roll then And going double-digit margin due the out we and deeper related be I to That's savings and this well. on improve cost that drive and that year continue a give cost speak countries wider ability and of improvement, of in did to combined rolling year, be been on new the cost next acquisition the of XXX-plus initiatives October we that's out synergies our out we're

move This think is is going. be we'll forward. reductions where key emphasize this, talking of of we're this I XXXX, that in wider is deeper cost want that we part as And more a of the part here, result I the about X.X the and and to culture. and piece way

Operator

And Sommer with Truist Tobey the question next comes Securities. from

Tobey Sommer

Could in data indicator for quarter? the transactions value that the your explain U.S. of the you of nature the much ATM was And in the about U.S.? How CIT some metric you up of and leading you in transaction, talk cited? core this could

Doug Pertz

of we PAI, really in transactions go we didn't ATM that player we a Yes. Tobey, -- before, insights terms the through. acquisition I some -- that think with of good-sized gained the have additional what it

the provide transactions. we number dollars ATM said, than withdrawal same of XX%. even same-store to the locations a additional wanted increase sales, that words, last of year, the effective And up other as higher is through actually some This bit just we so was opened were going in And the insights. for and little

and is that's many good we think the transactions cash good the the into of think a economy a I indicator. ATM forward. is and indication. going that amount good And the industry suggest is indication that's the amount we of of being that a where most see analysts So going put economy That

or provide to that X% and our Our our XX% is in X% that primary increase increase Unfortunately, of see XX% to kind circulation I in we not revenue. put that numbers continuing suggest X% we or when purpose cash or a a or information increase this of in should see a XX% way. it

is But give not going Our which and, is down, through the strong numbers a cash amount historical and very number that away. I card not It's cards, greater suggesting the flat. to it tied think, very is positive indication it's going directly that U.S. the than it model not and have in been, going of that, is the not does unlike is economy, is. cash the which, credit debit

primary That's strong, message out is we're don't fact, way in it and In going any that away. that's provided the is business the to, which fact, white space, call the opportunity a to the opportunities that in there, opposite. And of -- services opportunity and have that vended the third-party I'd to what strong. using are transactions like significant there's that's them, and just It's our our means it point message by here, get are to trying services that cash in no future.

go with see tapped of past. there's We payments opportunity business the intact. not very the improving. an that white So economy. then the our to much in space on into these is are recovery after top been additional opportunities to core Margins And of that, have cash growth

Tobey Sommer

very know means and a to able it the out into an running the beta recent, in to U.S. the them? fashion, they'll has increased fluid vaccination the customers for but better for assess been Strategy your ability to and start and and be vaccination it's X.X service I and so program faster And rate very up roll perhaps in Yes. pilots use translated has get and what

Doug Pertz

Tobey. to, starting It's

we're our February, in of make It's lag do see what we result they're talked time will, caused this As in I've months said, right about of I we're team ago things end what, and lot But the some us also times sure program. my processes going well. the that quarter through focus what at get improve the how how how is that. which of are that the I efficiencies we're the the can when we end forward, those fourth a I A and of and which, the delays. given just look to is some speaking efficiency. get two of I improve week, just you starting In not you over disappointed, out time what retailers do new I as to starting pandemic to business just with focus is or than our of think is with seeing start many situations, I to rather refocus of restarting in we last do was if frame, on survive taking at a materially types how my just types what of, put is to end and up change the to things retailers is. situations, do my those productivity as do

starting think, going on that this on that's I I and that, increase focused take be in also people things, think, to a just significant, is the their to focus start refocus think, to sure going making going labor they're fact labor, ability to think seeing and more hastened that. at we'll sales. are be labor, on to support a stores and more retail get by And those be, I the I look

Tobey Sommer

a one of if Great. the EBITDA, range you free helpful. the normalized That's question. Could flow well? range as XXXX thanks kind With bridge conversion for had that give as pandemic XXXX. for cash a back post what to flow bounce for And years business for conversion appropriate look sense is out respect cash like to I might free other from us continues

Ronald Domanico

do be if look we concluding through Doug Tobey, Strategy growth on to cost where showed in primarily restructuring. EBITDA. post acquisitions. our growth on adjusted slide, in the flow, continued That's may on tied and discussed, the We not continued you initiatives initiatives, X.X, still the free Yes. his based the at both went all see up we as cash see the the just XX, that Slide it we pandemic WD, screen,

going incremental have hearing flat, attributes year CapEx, so even should keep locked first be there, When we what the grows, the but despite you're remarks We has see rolls of impact pretty taxes the my about is at bit June have in earnings acquisition, that to X%. we XXXX, will utilize market And the last in lot of primarily restructuring in and capital a of as it you're working talk to interest. future, in about box cash to years prepared mentioned And a incremental we rates of incremental is debt much and about with little range revenue million get our in Interest GXS that that in rate tax continue the that the we higher be fixed, assumed in EBITDA Interest $XXX we going but as bit we're to quite be in and and taxes. of to then keep yellow we will finally, to the at have increased bar that smaller cash don't NOLs an cash year. increase have the can needs that when we XXXX a million cash full $XXX over, generally. the a do rates, that able going going grow. it,

be the what CapEx decline at few And anniversary replace new number up yet least just X.X%, next not targeting where and the a to going you'll to get of truck, coming start X% chassis but date seen. we of the trucks As generation the in CapEx years the revenue. some I expect of it's we entire to we're below call that We're holiday. to can

at a look So all decline. see we that of then CapEx the time. And as you'll percent revenue dividends,

far, has heard for investors us through capital few much CapEx M&A, is prefer we've higher and what past which the So returns. to our years redeploy

right certainly regularly, number. $XX basis. an at cash And million not But material in $XX the on CapEx, to obviously so it's annual now, a looks that at million Board

So metrics the metric flat cash our the flow I of pieces, are other of declining. conversion think main all you given to EBITDA, free I've going growth where but or is these the be relatively driver

Doug Pertz

this year But basis. Tobey, $XXX last a looking We're XXXX and midpoint want going just versus year at least I reemphasize. EBITDA million at to up on

areas million restructuring But is forward. other so growing capital, and not line And reducing $XXX-plus a pretty material. any going top CapEx it's that we're fairly that these materially. we're spend reducing only expenses working managing also year

Operator

the question from [Operator Berenberg. comes next Sam England Instructions]. And with

Samuel England

should the forward? main we to expect Or the on The first wondering, is adjacent CIT one, I PAI was M&A bit both going still you being markets, focus is core-on-core of future a more that just envisaging M&A? deal? focus like it are going Or of

Doug Pertz

look We absolutely Sam. at everything,

market is We a on disciplined, a but highly based the lot being what's have of a record time. of certain this in at

and Brink's accretive, we challenging in shareholders and looking there. initiatives, we're of timing acquisition in we're going the in of to XX returns. we cognizant are bolt-ons acquisitions space the the something but multiple that the our really the is in that the multiple also new make none GXS geographies. some deals, do and you could these our future focus growth large business exploring, more that fin-served lot But geographies acquisitions have be do we're that be -- to acquisitions with of ability of the again, on in these highly accelerate of our a So and impact expect To in to additional the core some X.X highly the transactions at the potential got but

of open, a our do and different at growth, things. So you're ears we organic look continued probably but going a of lot see and eyes to are lot

Ronald Domanico

already to as we've that cross-selling, we opportunity line, as what acquisitions gives which did cetera. good as be Said been that were think organic closer accretive a with -- in make staying still at to there acquisitions, reasonable that's It's for nice most of have a if kind taken, have done those X.X-type are they the therefore, and, Xs for pretty good expanding way, bigger but and of core we with tuck-ins the another but they're opportunities our synergy think, a at on a value it the synergies consistent focusing of lot nicely, we top platform. sense. date, though, going to gives think I great a et multiple, And gives on a that us is core well. weren't together post example least our of we us the for good one And elephants investors us much PAI, Tied growth, the example.

Samuel England

Great. the talk already Yes, from cross-selling long customers that you're and full I in to get how deal. interest deal? existing I was going to offering thinking come you're on it take seeing of will to benefit if sort PAI from that just about wondered and the

Doug Pertz

where customers we We sides, the to I a go out interesting. and I'm saying ability with this, think on be complete both put both the from have in to already package interest seen very what is together expand package, will

that lot conversations of the will get starting sides. aligned ramp both time up, some to it think the do and already organizations a on customers take having with we're but to I that the to

compelling, to will So options latitude complete gives customers. I it and package to a and much and a put it think be ways package exciting more and to complete us

Samuel England

more. then Great. And one

Doug Pertz

Yes. ahead, please. Sam. ahead. go Go No, Go ahead,

Operator

Actually, I believe his line disconnect. did

So that as ladies for today. there will our and are no gentlemen, questions, further conclude call

now lines. disconnect your may You

Doug Pertz

Thank comments. everybody. you. Thank you much, very Appreciate your

The Brink's Company (BCO) 28 Apr 212021 Q1 Earnings call transcript