BCO - Earnings call transcript Q1 2022

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Operator

Hello, and welcome to The Brink's Company's First Quarter 2022 Earnings 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 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. [Operator Instructions] Now for the company's Safe Harbor statement. Q&A contain the statements. and call Session forward-looking will This or materially Actual differ projected estimated results could from results. the SEC factors differences today's in is regarding available most Information that in press could release filings. cause such company's recent and Information of only. as is today discussed presented on and call representative this Brink's no update statements. any assumes forward-looking to obligation and not used without call permission from The may is written copyrighted be Brink's. and introduce Vice President It Cunningham, Corporate is Ed Communications. now your my host, pleasure Investor Relations to of Mr. you may begin. Cunningham,

Ed Cunningham

everyone. Thanks, Keith. And good morning,

CEO, today Mark valuation including reported The restructuring and credits quarter GAAP and are Ron allowances Executive a items, This us results the number estimates. and exclude of changes in the accounting, Pertz; Domanico. Doug costs, certain Argentina’s Joining CFO, Eubanks; Chairman, of both non-GAAP results to basis. our highly morning allowance first and related reorganization we dispositions, on non-GAAP inflationary items tax impact on and acquisitions

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

Doug Pertz

ending many a in quarter as reported progressed and record to of expected versus XX% XX% XXXX preliminary, April continued revenue results And continued a the pre-COVID markets. the momentum. today. joining in levels, suggests everyone morning, Thanks, recover revenue growth in strong And we through the us quarter, start we year, to January with good at with March. our Omicron-related than Revenue starting despite to thanks for quarter start slower morning, due Ed. of XX%, in shutdowns and first This

and XX%, operating operating to record EBITDA basis achieved EPS up up with EPS point profit, profit and also million XXX XX%. We up $XXX EBITDA margin improvement. XX% Adjusted reflecting

affirming are of to revenue EPS growth X% to and XX% which guidance, XX% growth year includes of our We full XX%.

momentum about growth the year pre-COVID propel more Strategy solutions. organic anticipate pandemic, Reported $XXX increases also continued We the expect revenue digital recovery to include least continued since million to XXXX. year from operating expected X.X contributions of profit revenue lean from by and growth, basis expected XXXX our base. volume We full to to is to clearly by supported than throughout quarter first in XX% will a full full and profit results, organic XX%, at XX% growth. acquisitions our cost year our by margin and review supported levels than our completed accelerating our to revenue more price year points from due operating first reflecting Omicron, of XXX –fixed from a the lower results year slower initiatives XX% our few cost moments. Despite and Ron XX% growth cost and year guidance expansion in quarter Mark detail EPS driven growth, leverage full our start is guidance

line market sales slowed up sales in is penetration considerably this XX.X% of eCommerce eCommerce mid-pandemic, have XXXX. of of the The graph sales didn't as for sales. there are habits. of the X the in The be XX% accelerated picked shown sales pandemic. person a sales the just eCommerce we're XXXX close bars recent payment eCommerce pandemic, retail speculation show and by for to and much spending retail total sales. in the shows be in growth percentage retail in-person eCommerce retail pandemic, levels, been That in-person sales quarter online, the we This XX%. expected sales pandemic in in we The the quarterly This retail that graph be about dotted about the trend are quarter $X.X the recent from even XX% growth quarter XXXX. pre-pandemic XXXX, total than retail will States. of cash shift to in now happen. were just fourth of It's person line trillion in-person post-pandemic. as total by the than sales retail sales eCommerce of shown on And the permanent in the preferred XX.X% in dropping moved to be blue e-commerce as During is solid retail has estimates would levels has revised sales total to materially United important data saw before quarter of size XX.X% in-person eCommerce fourth substantial growing their greater higher while in-person both of and close transactions materially. eventually while investors retail during that has were before slowed retail most to it that XX% of impact larger XXXX, new where fourth with was Slide Furthermore, to the than sales sales. the the of would is XXXX, the means the percent XXXX U.S. method. Many $X.X retail be they of eCommerce then, much to the dollars would onset increase starting Since would note there on out since was and the a second and larger trillion retailers, in is In come moving that from XXXX that potential to in that still on that and of of a pandemic. consumers a normal its than concerned suggests total downward

permanent March factoring were the of equation. in looks sales is versus MasterCard, that X% sales one forward, were at year, expected According part this in-person least The stock in while the always market, down retail XX%. online many which finally to moving didn't prior sales of eCommerce importantly, up happen. shift More just

as look highest months benefited in pandemic, long from strong force, not together of would and the were expected all declined in really the of decline long-term the study still businesses Brinks the XX% as XX% to are to the U.S. stronger of in method. of onset Conversely, with sales in payment. the of believe well support payment company see range shown well remained the a a sales to XX% cash three customer their that payment October, to that in-person new note, to Delta as just the credit and from future. companies XXXX many industry supports that Pandemic markets being U.S. are this pandemic cash, being In grow. be we pandemic, the should be as payments post-pandemic. the our a our when in full XXXX, the payments Go cards, the recent you other And variant in-person to increased of XX% when the that pre-pandemic that the to of of of new slide, projections growth cards, only On these XX% normal credit to and in growth level, start growth locations What on business And since showed currently debit services, only and in released, with solutions as will total payment view retail forms cash of cards, normals. Federal forecast the the I'll valuation we to normal was forms at of strong Mark. these X. in-person the reverting that percent of payments transactions would also Slide concerns new digital a used cash Just dramatically realities transactions. turn U.S. pandemic XX% cash continue cash over to primary at continue stocks levels. payments list consider become and in-person payment in other raised solid impacts a permanently Valuations for even a digital use payments, in-person all would data of of the as total form of investor for percent into positioned now growth Reserve drive remains debit the recede it an back ahead. acceptance similar started for are latest

Mark Eubanks

And right. good everyone. morning, Doug. Thanks All

year. The last up XX%. Our up growth growth of the XX%, quarter EBITDA growth of XXX was non-GAAP EBITDA basis margin EPS XX% XX.X%, include points revenue XX%, The XXX first over of operating for and year. was profit last margin operating basis over adjusted up points profit of growth XX.X% results adjusted quarter

grew Excluding $X.XX on the deliver of EPS track our to $X.XX related Ron XXXX prior XX% squarely back a MoneyGram, on gain results us year in few to more record in to equity minutes, details cover a per would these but quarter put our our guidance. share. investment

and the X It of the the by includes revenue XXXX quarter first comparisons factor translation, of versus in while U.S. through steady Slide our local in rates slide. report we quarter our recovery the XXXX which both is how impact ultimately to segment dollar recovery results. turning next underlying currency foreign local Now resiliency currency the XXXX, saw levels. each shows the recovery strong currency in aggregate demonstrate on business, The basis. dollar rates of of the and U.S. pre-COVID we

the XX% continuation of first saw improvement see the recovered hand company of On of we revenue side the in levels, that slide, total XXXX the can to of right the pre-COVID you XXXX. quarter a

improvement the quarter XX% see on a fourth XXX% last an and from from North first to the the to side XXX%. over the increase sequential with current in America, the the you left Looking slide can quarter a year of to hand

the local currency in other regions other has recovery Moving Latin stronger than – to significantly been regions. right, America

XXX%. recovery Columbia a flat spending Omicron improvement continue delayed markets recovery was impact versus still to and aggregate, Many even at throughout in Brazil, segment, services was a despite January In and in XXXX. at business of versus relax X% currency the versus a of Reopenings of of in Excluding XXXX local their in revenue to the continuing pre-pandemic consumer business. Argentina U.S. QX to QX at European This QX in XXX% in In full Chile. pandemic the our the restrictions quarter the full with recovery of are on sequential the our of World to levels, quarter currency volumes on XXXX, primarily Mexico. this improvement the basis of Asia-Pacific. largely quarter, revenue in on XXXX, driven there and dollar countries XX%. global This February quarter. of was our our remain our recovered expect this of sequential versus XX% flat was retail in and impact improve of we QX Europe, Rest a strength key in local recovery significant was which nearing above XXXX, quarter, growth After few by first lingering prior first of markets, the of levels half jumped pre-pandemic

detail January the at look by than the flat XX% first versus U.S. for The quarter of sequentially revenue February the at left in quarter at XX% averaged was Argentina, more basis. of recovery Starting basis, the but inflationary levels quarter let's followed XXXX XX%, impact a in March, Now XXXX even local total in excluding USD percent which slide. seasonally next with on a of side pre-OVID two recovery currency graph, strong shows a out hand and the in to the U.S. XX% percentage company dollar on higher dollar a Slide was XX% higher was which XXXX, on hundred fourth fourth quarter. points XXXX. X of the

of Given our Latin our markets, the Asia-Pacific, many business of graph XXXX the in the favorable impact expected. supports resiliency This right than America the we and based levels in the the represented year. quarter is of The at of to quarterly the especially the middle by and on of which outlines. Omicron was recovery revenue first more shows recovery trend in side guidance, of full pre-pandemic demonstrates least blue acceleration recovery our for

recovery first fourth quarter year XX%, quarter in last third quarter the XX%. recovery at XX% the quarter, XX% was Our and in was second

of at run XXXX rate we are with quarter the year pro second and full as XXX% improvement each or that half exceeds higher forecasting progress acceleration our similar prior year through gets XXX% billion We a the recovery of us year of perform $X.X the than the midpoint back XXXX guidance and to a approximately in of levels.

rates. summarizes factors markets, to disruptions. continue many Slide that our affecting inflation, rising X. interest of of chain to in pandemic is topic macro operations turning some and This the about hear including global Now supply slide all the currently we One

assets As chain are a subject same service disruptions we business industrial many with to that and businesses locally are. the sourced global not people, service supply

our of cost cost to is mechanism, followed pressures our fuel far have by related fuel customer recover these pipeline. costs. important our material to by we actions than that not inflationary generally costs increases take surcharge these us discipline are wage in cost note we've secured It's strong many the global the enables on labor, cases a components Most have offset cost global a globally. made as inflationary disruptions to to agreements solutions pricing to most largest address our Labor exposure continuing early is to these as minimal, costs historical fairly which not suppliers had a and where fuel. business and Our digital recovery main To X.X other generally pressures. component rising fuel clauses in in our we've impact of to freight but subjected partnerships profitability, to input, are rising and seen potential avoid any higher our purchases with necessary

well cost beginning of several to our into annual and profit our price We productivity business went were both drive pricing, which lean averages. in continue U.S. that in implemented our historical to our effect to above addition XXXX, maintain increases improvement the In XXXX of we programs trajectory.

As we expect to to offset we any the actions inflationary continue through year, pricing move pressures. further

Ukraine increase X% the not of a through of less in don't saw impacted generated significant Ukrainian-Russian shows have businesses turn ATM revenue the for usage. as in times in and significantly XXXX. have role our Eastern in cash been cash conflict Our increased consumers our to by to markets, continues the Throughout operations we was than European Russia though, any in that a we This play crucial demand society uncertainty. in

cash largest times ecosystem, company, a world's management the in of have cash the especially protecting cash facilitating As in we critical and global role crisis.

the pandemic January February impacted more growth on in business the global we mentioned our prior I as was move revenue and through by than trending slide, with we As up expected March.

level. and usage XXXX to circulation improvements economic well government as our whether in the also of a their population even shown segment essential quarter by global the stimulus, by percent which payments, operating during people this and to recession, presented during delayed times And on at we year, cash institutions Cash the crisis XX cash underbanked As heavily from that recession an continued trend cash the payments, inclusion we primary retailers. management recession the improvement our method. consumer more significantly higher April. in in of also cash each financial we pre-recession unbanked the With not payment driven rising also are lockdowns or payments markets, Doug periods additional provide access rates, been are steady summarizes almost History all stimulus, by we during the implementing. are the has seeing as XX% to leverage begin and of global for and national the financial first increase. during caused margin to and the cash. world's They as critical cash in services mentioned, of interest to and actually we've productivity are percent them pandemic, slowdown individuals the already segment saw drop reliant grew even by who causes levels, services challenges economies. The as continues important Despite with Slide as or note, economic quarter. results the It's credit. of only reopenings well to in several capture are the functioning positioned and to credit, rely to lose a in revenue on economic recover enable throughout unemployment, sustainable

and in around continue been strengthened challenging we segments. successfully PAI as as by environment. the our will saw XX% Daniel impact that growth While the addition we today's Brink's team North did the growth that from North American of our recovery's team I'm global grew to revenue they April. In leadership all the macro X% of last world, with of includes join performance revenue the organic who which continued – happy to Segment recently we I'm Castillo, leadership and President. reported the first quarter profit the revenue uneven acquisition announce executive encouraged America navigate XX%,

quarter As impact that $XX.X for disclosed was segment resulted positive quarter. for in no accrual operating of corporate resulted corresponding first with expense consolidated a the offset in American profit made XXXX, our an million to North adjustment to in a the the

Excluding this North improvement operating adjustment up would've the margin XXXX was reflecting X.X% profit current XX% adjusted year million profit of $XX in profit with operating points. first basis On America quarter this segment basis margin. a been XX a

Latin XX.X%. to slightly the was of was profit including: slower revenue. margin was by the in primarily South omicron countries was up been growth growth and with by in pre-pandemic February these X% below Chile Argentine X% on variant. growth organic recovery Double-digit in well driven volume Mexico, currency and January to XX% in has prior increases volumes price growth inflation peso. partially price and as Argentina up countries revenue basis increases the offset of versus level several Brazil, Columbia organic and as the in and segment based due the organic Operating Revenue American down unfavorable an America, the XX% Now profit reported impact revenue devaluation from where driven at year by the

which saw the services economies again management result fifth result March, project of improvement to strong in The operating year-on-year the expansion. the of recovery across cost in growth, progression offset rollout margin France. their margin was basis helped strong quarter, a profit, higher and the in Europe the revenue these the quarter points. the However, of consecutive we with saw a continued strong managed of a year. of the XXX In and throughout as in difficult quarter significant start volumes revenue BPCE ATM spot France recovery we bright

by global we driven in government businesses cash a profit our also of Ron result increased the Pacific world in was X% lagging business, basis growth review. now as the our saw rest recovery margin the XX turn which For Ron? points. with of local of X% revenue mandated Operating segment organic I'll of for financial Asia his up offset lockdowns. improvement a over the call detailed services slight to

Ron Domanico

included Thanks seasonal. GXS Mark. in for XX% Slide throughout disclose After in remember quarter cash the remember and mostly Good we revenue acquisitions. margins they're organic and first results. primarily revenue increase that separately the business currency up businesses. Please acquisitions that months first day, and XX, our X% from and please each of X% constant Historically was year. XXXX then XX everyone. year integrated months PAI is the for X% On versus organic growth quarter about former are XX also last ownership. this quarter Acquisitions of our with

last a was $X.XX or headwind. year. exchange the $XX revenue XX% Foreign first quarter billion, versus up Reported X% was million

increased the the least million Organic operating Negative at was margin First last the up was XXX versus versus XXXX. quarter operating was added $X X% up $XXX twice was was leverage. each operating of currency growth quarter first growth XX% XX.X% ForEx rate Reported and revenue profit reflecting constant profit in and XX% million. operating year. bips acquisitions strong profit

the press to predominantly associated regulations million release primarily from a from methodology As the million excluded our of $XX allowances negative change IRS the estimate with new benefit noted allowance results our in pandemic. accounts $XX and a to impact associated valuation with our non-GAAP customers reduction in during receivable the reflect

XX-Q morning. Additional this available in our filed information is

XX. Slide to Moving

the a million, gain and operating higher non-controlling $XXX in $XXX tax higher generated share, outstanding a period acquisitions $XX First expense, a driven purchases. and the taxes same QX up $X.XX operations. quarter million the $X associated and last $X.XX up interest income rate. mark-to-market also repurchases million or debt than weighted by we MoneyGram first year, share higher of by on year. the $X million, year the million the million completed about of primarily expense in due quarter million and per continuing by excluding interest to quarter and for the $XX $X.X shares million in XX% accounted profit effect versus This were XXXX year versus $XX partly of less last from offset was expense million basis, reduction earnings diluted Tax XXX in prior interest with income reduced bip average held on and reported in was of shares increase the EPS. other about a Share up last XX% X.X% $X

percent First million, or adjusted a XX.X% of EBITDA $XX up XX% XXXX. up Mark $XXX was year. plus versus EBITDA And first bips as as quarter revenue versus million the quarter XXX XXXX prior mentioned, was

Turning XX. on to Slide cash free flow

free the is payroll and XXXX at expected pandemic. million forma versus midpoint for full Pro range $XX between deferred $XXX adjusted be year. is to up Adjusted about were range Our million cash that higher $XXX $XXX due the to EBITDA million and taxes is would million. that million, when million and $XXX XXXX estimated between $XX flow year last

working XXXX and use and million, tax disclosed $XXX PAI the associated variable share our the to restructuring acquisition capital $XX XXX of as taxes in million year higher to incremental And million million of to for an debt million $XXX the to due rates. and December refunds. $X million with higher timing is Cash up cash expect versus $XX XXXX the increase versus interest estimated interest around mostly at Cash expected Day, Investor repurchases, net We of represents end EBITDA CapEx ratio forma conversion $X.XX the leverage $XXX equates adjusted to pro XXXX approximately year XX, XXXX our Slide XXXX quarter by per at net and by driven in to is this X.X flow our free for approximate year and net debt at device the at XXXX and million cash, estimate free financing of debt To decrease from expected XX% offset illustrates dividends, leases and actual The be partly targeted million, slide $XX are end year-end last income, of cash other $XXX of first share. well XXXX is deferred an payments cash be the XXXX. end to as financial Strategy as million. investment. about payments.

have in XXXX authorization net XXX leverage built for nothing ratio we Dividing should range estimate. turns. has $X.XX While another estimated this million expected of of into share debt midpoint a been generate purchases, the net our debt X.X year-end our billion, EBITDA by

XXXX XXXX. secured X.X X we the was by and leverage of decline turns to to that X.X Our turns to ratio end expect

covenants bank include X.X maximum of our a leverage turns Our secured ratio twice estimate. more than year-end

continue to inclusion. implement while and Brink's We've not rely leading CEO Moving action and sustainability is is support means our ESG progress progress vulnerable bank continues company last spoke sustainable account Those or debit, pledge economic to meaningful, commitment the initiatives they I the for really a and global management Brink's to we facilitating to and to development our accelerate. United or global about to differentiates compact most And Slide diversity Day especially cash, inclusion, world's Brink's. for is largest on access the for on cash society. XX, at our on year, have inaugural Investor our our in which that goals role to do sustainability in even who credit identified Nation's rely what

We and optimizing we Brink's lean, combined are stops and deeper routes. embedding optimizing businesses and our wider in ATM reducing outsourcing Complete our legacy operational with efficiency and are by

fleet adding is fuel alternate vehicles. Our dual and fuel electric,

more near that and sustainability efforts diesel in We're progress. sustainability we our trucks these reducing adding Mark. and emissions. carbon fleet our to we lighting begin it of panels corporate to off the our ESG and I'll first All thousands trucks our branches In hand conferences. June and over to targets, roads others the future solar commitment, recycling LED expanding Brink's are to issue to in expect and our programs. also of penetration We're report With further modernize and to share impact and excited taking participating investor back plan about select

Mark Eubanks

logistics higher initiative's for the continuous improved ATM represent more foundation dedicated is improvement supported pricing the Ron. in additional more continuing even later Thanks systemic to lien our cash slide. and digital margin Strategy Strategy and introducing our for the also top improving with company. country. this the program growth business. we each This our the culture at wider and sustain and from in for of XX expected This We're summarizes operational managed layer transparent implemented and services, XXXX our breakthrough cost bottom our provides capture is Slide last three Strategy strategic X.X our volumes, recovery quarters organic X.X three-year structure excellence accounts to growth plan. which coming in strong across organic and and solutions the way leverage to the our from executing pandemic. as grow. deeper a experts revenue our globally a over We're margins the by few base X.X continues years of

more XXXX. X.X revenue. revenue that interest payment In enabled this new of than a allows fact we X.X encouraging billion multiple Strategy of the digital $X.X addressable new cash expand with grow more and in expect to businesses. to Even by This X% platform solutions about installed our capacity in order represents the We prior and Fiserv, revenue at small we're from Brink's and and over grew us XXX% XX% over a a our that year-over-year X.X increased new initiatives the platforms to in us the sale and We our revenue a from existing double operational is highlighted year on-premise our installed our and and base. current with in Last by targeting retailers increase mentioned in signed. This customer faster over new a incremental tech global creates pipeline transforms our year, X.X for U.S. quarter and margins. Complete, our solution represent is figure from higher the of is our the point leader from XX% to see reduce in partnership total location our enables experience Clover XXXX XX% over cloud-based now medium revenue of stops. customers booking market quarter saw customer total drastically momentum in our core we providing for cash globally

safer integrating on managing This quarter, we platform merchants Solution reconcile Brink's cash experience. app into easier, allow BLUbeem the that's to continues us process, officially the app to with have traction on track marketplace, payments continuing our which and launched work Clover single Complete partnerships relationships. additional to and efficient. to the integrations sale new cash access and sales additional we're channel leverage and Clover's gain BLUbeem retail to channels for Complete receipts point customers merchant solution of our app a more now Brink's Using XXXX, and from

provider recently agreement ATM the front services managed managed we signed with a in focused a an acquired our U.S. and Baltic's in exclusive market. the bank services On major bank

additional the stands is around at It largest be our business to BPCE our trend. this managed milestone already institution our with $X.X by agreement in billion customer to financial XXXX the pipeline billion in a well strong. outsourcing expected opportunity growing to of strategic of is at We're XXXX. in and ATM agreements $XX BPCE is currently on-track for is our on relationships. capitalize and positioned expanding. strong The this global ATM ramp-up global our market capture for Remember the in one France Additionally, and journey projects bank industry is services

we basis Revenue and range range $X.X of are new We included margin versus last this to levels. to XX, of guidance operating businesses, billion affirming a $X XX majority points $XXX to a levels XX%, of grow our versus close PAI to XXXX acquisitions successful GXS reported $XXX Slide market revenue footprint? a between XXX increase a to expected with to Moving cash XX% range geographic growth and the and million us expect reflecting would XXXX points the year which $X.X XX% of put X% profit the pre-pandemic Due between by and basis million approximately our billion. XXXX the XXX in billion. to above to

We to million, earnings and year. XXXX $XXX EBITDA between $XXX per are the be between million and range expected $X.XX be adjusted to $X and expect in

strong XXXX XX% quarter and operating results, XX% our business the achieving Our of our clearly growth include which guidance. confidence in and support demonstrate first revenue our resiliency growth profit

revenue excellence profit Our from growth growth are with organic cost initiatives our leverage our drivers expected our alignment in of revenue XXXX. along and operational key the and operating Strategy X.X

that and revenue reopen. We slide illustrates expect subsides we accretive solutions right strategic services approximately the the growth, year's of pandemic Complete economies year digital at up as ATM X.X ramping Brink's to add more more presented add managed also to last three December positioned the we're with Strategy Investor well plan side X% margins and The targets Day. achieve

period, to represented now three-year our for of margin digital a results reopen, basis $X.X to confident approximately With expand approximately X% profit targets as approximately $XXX first the cash of our rate a open our million the economies XXXX. and by growth over the than up growth annual of presence ecosystem Annual the solutions of and continue strategic include million ATM let's strength operating and the billion managed proven in and were more record ability growth core plan questions. $XXX business services. EBITDA points execute adjusted quarter reminder, improvement I'm XXXX our a XXX in to around it billion of to in compound As X%. in revenue Keith, of $X organic those of with

Operator

And first Securities. [Operator Tobey question Truist Yes. comes with Sommer you. the Instructions] from Thank

Tobey Sommer

a I about couple wanted you. to Complete. Brink's questions Thank ask

sort metrics of gave to so What goal is You a unvended do of then think kind on tapping going understand Greenfield basis you regular transitioning that the provide year. of –what and sort a Thanks. I for previously was of prior forward? curious And can you're going track customers? versus we retail us the to proportion of customers this

Doug Pertz

Tobey. Thanks

I'll little maybe does think what quarters vented customers a bit, So currently of well as breaking you look what asking converted metrics market? Complete to are between we're but like the progress, You were to Brink's who sort mix address... track up unvended the are as I going was

Tobey Sommer

That's right. Thank you.

Mark Eubanks

Okay, sure.

we sure we everyone first the where to So that question can understands and are as continue progress. to making information make progress as we much we're making provide

also of about quarter this again, target of XX% think move and I unvended, customer we've say past of on-demand Brink's our was ATM vendor services. us sort we we business those. unvended really little are I the one as to would of that from think than them about the think and access proved of current as revenue we value bit let's that I'd said, both about a currently faster into gave out specifically vented three-year examples But contributions Complete. to more be that the a for contribution Complete seeing well their both like appreciate billion, and one, the in $X.X locations likely being the talked cash. think five talked the as proposition model we're a We'd kind given flexibility the customers where between that completely we sort but strategic plan X,XXX Brink's managed below

or it. our as internally we that well on of about other? as XX/XX of then set sort we're they're any market. there goals whether how other of tapping think into That's or CIT conversions would Ron on is we side – competitors. customers, sort of at hours existing unvended the a And Doug looking Our be

Doug Pertz

three-year incremental million that existing Investor the existing or not solution the in I the CIT revenue top in out terms through versus one Tobey, think is for better in laid be Well, looking replacement of strap replacement how a $XXX think those sales question on for our Day of our that's do your period new replacements for you strategies. I therefore it's X.X customers, sales, will split time good value we're sales a of we plan of the

you're revenue to And our not but revenue replacement the both would stated which range look reasonable through that's that be as revenue why suggesting go that, better around new specifically provide growth. what a we look by So also with, some incremental year, like detail continue way will addressed. little give that's driven margins X.X. at I to for that's that's the think think We'll versus think the Mark revenue And what the of bit about I in that specific revenue X% us to overall I X.X% be more, I but think be talk that we that's as we each is metric a each of additional growth years. the to

Tobey Sommer

the a Thank Could you. color give and I'm to well? in would respect comment describe fine as pressure. strategy? global With inflation more the, wage on Thank guess and be focused pricing U.S., but you your some you. I

Mark Eubanks

a this to here we pressure conversation and be think competing associates with increases increases will Sure. year call every we Tobey, QX. not pressure to new see increase the logistics just our out already U.S. or to quite we also fact, been X,XXX world. we the price fact talked in to been combat have I in year as about earnings in to That capacity, in in I've get saw almost and transportation price pressure continue – did will for And has of new the we out been with with position; wage marketplace in this – hired Tobey capacity QX. fresh topic in continued back continue last talent and for and only the but

Doug Pertz

lets – basis, from say say is globally, well an that I'd same most although as is of annual around quite pricing not a issue, is being I'd this inflation is perspective. handled labor there on there a, the as it's from And both some the

Tobey Sommer

Brink's some And taking two and share value us Thanks. countries color sort some could If thanks? high company Global is color is I could excelling markets, of any Services of areas, performance? anywhere the you of there sort just sort then perhaps give in ask are ones, about the particular on lagging, broad and the where comments market company

Mark Eubanks

Sure.

the strong – we On Services' to a side pretty continue there, position Tobey. Global got we've

models of I the think And the happy last and think market year business you we gold talked storage, bank of on that. on, lot sort side trend. changed about business of movement but, of and as in are lot cyclical a of the very newer and let's metal I that's working And sides so This mix know, but still of business, that, still interesting looking we but precious try market. storage counter seeing of business changed. whether a a activity happy the that world assets, global – to interesting some on of a with we're was lot Crypto-Keys to but the as the that maybe some even say some or actually environments only not underlying we're movement expand these the sort NFT are we're note macro of grow grow share, year to models both market has storage

Tobey Sommer

Thank you very much.

Mark Eubanks

Sure.

Operator

Goldman the Thank comes Instructions] And Sachs. with Tong you. next [Operator George from question

George Tong

Good morning. Hi. Thanks.

Mark Eubanks

Good George. morning,

George Tong

gap then offset Can increases the pricing your a between you in be elaborate input you extent and to that quantify And with do timing with of expect impact You pricing actually the seeing mentioned implemented? pricing inflation expect see to inflationary you when whether on pressures increases. cost business? will that cost the of inflation you're

Mark Eubanks

of pricing Typically quarter. have maybe the Sure. a a our does question, Thanks George. lag, for

caught year in last out to It us end little think as got third behind. let we front slip further that got we of quarter but I QX in the a to in now in we of that well year up, get any ensure as further. the don't that took QX to

I labor piece than think the cost input on one of fuel. other other is

average as fuel. can quantify as clauses well the From up. in varies it a globally so U.S. as say see that say would that the of pressure pressure mid-to-high-single digs expect would we mid-single labor well. as first backward expect to see either and to to a quarters, increases it's some I be by we'd it some we mentioned by a bit, that – price out catch I'd marketplaces in let's of contracts. kind digits would varies, little As on in are looking see and back Usually quarter and have And QX we as and lagged we again, our even come there month or those that I we lagged mentioned QX

George Tong

probability you macro Got on assumptions macro other the then of since of of how guidance, a anticipate you've slowdown which you the can business? some elaborate your parts included? within you different it. impacting That’s helpful. And and include your reiterated, words, some that guidance In would

Doug Pertz

Sure.

I become more in in times see rising environment. We these a of recession, cash have interest some we a our on not And we dependent would impact were think slowdown actually macro where recessionary did in assumed especially some comments remarks event addressing people big to that business. the rate of seen – what my access prepared see that we've lose credit, part and

that to is So macro one again, The us, believe let's activity big markets, lift there for pre-COVID we also second. but travel. both the put in for recovery back retail

but sequential we whether as And to laid to numbers, the we greater all out, impact revenue back airlines recover. see increasing to everyone of see levels XXX% we way. numbers, we a on in XXXX cruise to give of or improvements bookings continue summer positive as our don't a specific have continue expect than travel direct hotels I seen business, lines certainly this it's the We or a think, has will

George Tong

helpful. That's drivers it. talk little in market market or impact with bit demand? difficulty lastly, to order tightness other you any labor business, your recruiting then keep could not about whether the pace a on from and workers labor And you Got or have

Doug Pertz

new end. business, the – is one here recovering quarter. and the an about last certainly. both seeing have I were about other feel of And close also, the slower and satisfied definitely second good end think the we than quarter you sitting talent improve. George We're we're a pretty talent, the there, now, when talent exit issue in This Yes, at the we capacity now by thought we those where but quarter this retaining we completely at we year. as But capacity things the metrics for being in into are, in been really our has seeing started talking last is us, been the third recovery we year we're of to attracting two of it's year not

the think that. talent again, got of of to lot But Of hands course, by is get other. increases, the tightness increases cost And certainly we driven our on we've price the that side side a matching the wage outflow labor inflation driven with capacity, on around in the market. the our by

George Tong

you. Thank helpful. Very

Doug Pertz

George. Great. Thanks,

Operator

you. the next Thank was And a follow-up question Tobey Sommer. from

Tobey Sommer

in Europe hoping of if a comment you see canary in is your the there geographies. to particularly Russia us Eastern coal business any light kind was Ukraine could I in is slowness the Europe, in about give want how mine in Just doing of those about war? economic

Doug Pertz

know, the on in Republic. countries, those Baltics of really briefly were we mean, Sure. Tobey. a both in in you we talking talking, European early jaded predominantly other and touched Czech I reopening that the saw time a we're just, prepared lag haven't disruption rate in the comments, pandemic slowdown really accelerated end related seen the Yes, about positive people for the that border sometimes ago or se it Netherlands was by certainly first instance slowness per but in the economy. and still. markets. the in Thanks we we've But We're the seen, year, just the maybe of France were quarter the saw I using days to XX And their at us is was the ATMs an this

really see large see progress to something think, is there. disruption any continue that, I this we So, is and don't

Tobey Sommer

but bountiful sort supply a inflation what supply, a recession rising market people the I the us Thanks. remind Because, looks company? like. kind the height has stock are at And you we're what and think, labor I of tight at and a labor looking interest of of on could impact the wage wondering know rates, of

So, of what's that your kind training? recruiting labor and on expense, impact and

Doug Pertz

recession or question? So labor question that demand is a you a supply say is it

Tobey Sommer

jobs Specifically work raise labor impact supply have much, the does demand, wages as statement? don't the nor when labor how to you income that to as is hard fill abundant

Mark Eubanks

should certainly it Well, help.

heightened wage the yes, our but expect we've offset job things a And to of we productivity, of that to or the sense that's lean we is in urgency, and initiatives. at level do, labor to as about, driving in productivity price and given that's maintain leadership's think to about drive talked think wages. we're there again, let's increase face continue lower doing really pressure have, to now we I tightness, even business, other the challenges of, flattening kind say, the that urgency is

productive I is we’ve get productive. someone, on and lean the course, And also think other again there to hired experience, recruiting us up it a to just get or besides in to training. takes speed drive enables and Tobey of but it's trained culture our the more fully productivity several on to cost bottom weeks us and are And more of benefit it benefit boarding, lack when they line. have them them areas

Doug Pertz

can just I to earlier of both And questions George will. just to Toby had, related very let I So important back me you go as the revenue progression think quickly if one. the that as an you one if well that's

the strong, for in revenue has the is us Mark the If saw countries go more you quarter think, impact what's the look achieving have, a well, at it gone of into think, potentially that progression if answered gives very a recession comfortable through. but important, and we has that, I what the Mark that we position openings could numbers throughout that and I

February Omicron year. And quarter always the progress with Mark January throughout laid year lowest has as were The the this we been and as in countries slowest, our through out. first go fairly in throughout significantly case, the historically and closed our quarter growth

the the our So rest top year. the So our and revenue openings I that driver, then economies and the primary the the and look that as support the driver economies to level key then think guidance with that's the on progression, go gives and year our up we heavy for more for of being travel at opening us comfort through being of

Tobey Sommer

the to CapEx question do based on various have percent continue sales you kind of initiatives numbers visibility in related Last on CapEx, progress Okay. for with me years? one. you coming have declining a Complete, is including to of

Ron Domanico

lease and they devices these not become cost a as focus to services our to reiterate, mean, continue CapEx. of said that the an we upfront is Day, sold I and so Yes. Investor at we

world. the a We around have we’re some success challenge, but making progress there. it's In countries even

as percent that at very yes, the achievable. cash So CapEx calculation that we as targets sales. a Investor exclude of continued to our from of CapEx, we continue of And see a we Day presented do reduction are and do

Tobey Sommer

Thank you very much.

Doug Pertz

Thank you.

Operator

Thank you.

Doug Pertz

The Brink's Company (BCO) 10 May 222022 Q1 Earnings call transcript