UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 8-K CURRENT REPORT Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 Date of Report (Date of Earliest Event Reported): March 31, 2006 THE BRINK'S COMPANY (Exact name of registrant as specified in its charter) Virginia 1-9148 54-1317776 -------- ------ ---------- (State or other jurisdiction (Commission File Number) (IRS Employer of incorporation) Identification No.) 1801 Bayberry Court P. O. Box 18100 Richmond, VA 23226-8100 (Address and zip code of principal executive offices) Registrant's telephone number, including area code: (804) 289-9600 Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2.): [ ] Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) [ ] Soliciting materials pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) [ ] Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) [ ] Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
Item 1.02. Termination of a Material Definitive Agreement. On March 31, 2006, The Brink's Company (the "Company") prepaid three series of outstanding privately placed Senior Notes for approximately $61.3 million, including a make whole amount of approximately $1.6 million and accrued interest of approximately $1.3 million. The Senior Notes were issued pursuant to two Note Purchase Agreements, both of which were terminated upon prepayment. The Note Purchase Agreement, dated as of January 18, 2001, among the Company, Allstate Life Insurance Company, Guardian Life Insurance Company of America, Guardian Insurance & Annuity Company, Nationwide Life Insurance Company, Nationwide Life and Annuity Insurance Company, American General Annuity Insurance Company and American General Life Insurance Company, related to the issuance of 7.84% Senior Notes, Series A, due 2007, with principal of approximately $18.3 million outstanding immediately prior to prepayment, and to the issuance of 8.02% Senior Notes, Series B, due 2008, with principal of approximately $20 million outstanding immediately prior to prepayment. The Note Purchase Agreement, dated as of April 11, 2002, among the Company, Allstate Life Insurance Company, Nationwide Life Insurance Company and Nationwide Life and Annuity Insurance Company, related to the issuance of 7.17% Senior Notes due 2008, with principal of approximately $20 million outstanding immediately prior to prepayment. Item 2.02. Results of Operations and Financial Condition. On January 31, 2006, the Company sold its BAX Global business to a subsidiary of Deutsche Bahn AG. As a result of the sale, the Company reclassified BAX Global's results of operations to discontinued operations in accordance with generally accepted accounting principles. To facilitate the evaluation of the Company's period-to-period performance, the Company has prepared the condensed statements of operations and other financial information attached hereto as Exhibit 99 for each quarter of 2005 and 2004, with the BAX Global operations excluded from continuing operations and included in discontinued operations for all periods presented. In accordance with General Instruction B.2 of Form 8-K, the information in Item 2.02 of this Current Report on Form 8-K, including Exhibit 99, shall not be deemed "filed" for the purposes of Section 18 of the Securities Exchange Act of 1934, as amended, or otherwise subject to the liability of that section, nor shall it be deemed incorporated by reference in any filing under the Securities Act of 1933, as amended, except as shall be expressly set forth by specific references in such a filing. Item 9.01. Financial Statements and Exhibits. (d) Exhibits 99 Quarterly Financial Information of The Brink's Company for 2005 and 2004.
SIGNATURE Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized. THE BRINK'S COMPANY (Registrant) Date: March 31, 2006 By: /s/ Robert T. Ritter ------------------------------------------ Robert T. Ritter Vice President and Chief Financial Officer
EXHIBIT INDEX EXHIBIT DESCRIPTION - ------- ----------- 99 Quarterly Financial Information of The Brink's Company for 2005 and 2004.
EXHIBIT 99 THE BRINK'S COMPANY and Subsidiaries Condensed Consolidated Statements of Operations (Unaudited) 2005 Quarters 2004 Quarters Full Full (In millions, except per share amounts) 1st 2nd 3rd 4th Year 1st 2nd 3rd 4th Year - ------------------------------------------------------------------------------------------------------------------------------------ Revenues $ 601.1 633.5 651.3 663.1 2,549.0 540.0 551.2 580.3 606.0 2,277.5 Expenses: Operating expenses 486.4 525.7 500.5 529.2 2,041.8 428.7 440.5 452.0 469.5 1,790.7 Selling, general and administrative expenses 87.2 91.1 112.4 116.1 406.8 83.3 86.7 87.3 103.2 360.5 - ------------------------------------------------------------------------------------------------------------------------------------ Total expenses 573.6 616.8 612.9 645.3 2,448.6 512.0 527.2 539.3 572.7 2,151.2 Other operating income, net 1.5 1.6 5.6 6.3 15.0 3.4 1.7 4.0 2.0 11.1 - ------------------------------------------------------------------------------------------------------------------------------------ Operating profit 29.0 18.3 44.0 24.1 115.4 31.4 25.7 45.0 35.3 137.4 Interest expense (4.1) (5.7) (4.2) (4.6) (18.6) (5.2) (5.2) (5.6) (4.8) (20.8) Interest and other income, net 0.8 3.5 2.8 2.2 9.3 4.5 0.4 2.3 0.7 7.9 Minority interest (3.6) (2.7) (4.0) (4.0) (14.3) (3.0) (1.3) (3.5) (4.6) (12.4) - ------------------------------------------------------------------------------------------------------------------------------------ Income from continuing operations before income taxes 22.1 13.4 38.6 17.7 91.8 27.7 19.6 38.2 26.6 112.1 Income tax expense 11.6 11.2 15.2 11.5 49.5 12.8 7.8 9.9 10.1 40.6 - ------------------------------------------------------------------------------------------------------------------------------------ Income from continuing operations 10.5 2.2 23.4 6.2 42.3 14.9 11.8 28.3 16.5 71.5 Income from discontinued operations, net of income taxes 3.1 13.1 42.4 46.9 105.5 10.9 6.8 9.8 22.5 50.0 Cumulative effect of change in accounting principle, net of income taxes - - - (5.4) (5.4) - - - - - - ------------------------------------------------------------------------------------------------------------------------------------ Net income $ 13.6 15.3 65.8 47.7 142.4 25.8 18.6 38.1 39.0 121.5 ==================================================================================================================================== Earnings per common share Basic: Continuing operations $ 0.19 0.04 0.41 0.11 0.75 0.28 0.22 0.52 0.30 1.31 Discontinued operations 0.05 0.23 0.76 0.82 1.88 0.20 0.12 0.17 0.41 0.92 Cumulative effect of change in accounting principle - - - (0.09) (0.10) - - - - - - ------------------------------------------------------------------------------------------------------------------------------------ Net Income $ 0.24 0.27 1.17 0.84 2.53 0.48 0.34 0.69 0.71 2.23 ==================================================================================================================================== Diluted: Continuing operations $ 0.19 0.04 0.41 0.11 0.74 0.27 0.22 0.51 0.29 1.29 Discontinued operations 0.05 0.23 0.74 0.81 1.85 0.20 0.12 0.17 0.41 0.91 Cumulative effect of change in accounting principle - - - (0.09) (0.09) - - - - - - ------------------------------------------------------------------------------------------------------------------------------------ Net Income $ 0.24 0.27 1.15 0.83 2.50 0.47 0.34 0.68 0.70 2.20 ==================================================================================================================================== Weighted-average common shares outstanding: Basic 55.7 56.0 56.4 57.0 56.3 53.9 54.4 54.8 55.2 54.6 Diluted 56.5 56.6 57.1 57.8 57.0 54.4 55.1 55.5 56.0 55.3 - ------------------------------------------------------------------------------------------------------------------------------------ 1
THE BRINK'S COMPANY and Subsidiaries (Unaudited) Supplemental Financial Information 2005 Quarters 2004 Quarters Full Full (In millions) 1st 2nd 3rd 4th Year 1st 2nd 3rd 4th Year - --------------------------------------------------------------------------------------------------------------------------------- Revenues: Brink's $ 509.2 536.7 550.9 560.1 2,156.9 458.0 465.3 492.7 515.9 1,931.9 Brink's Home Security 91.9 96.8 100.4 103.0 392.1 82.0 85.9 87.6 90.1 345.6 - --------------------------------------------------------------------------------------------------------------------------------- Revenues $ 601.1 633.5 651.3 663.1 2,549.0 540.0 551.2 580.3 606.0 2,277.5 ================================================================================================================================= Operating profit: Brink's $ 30.3 15.1 41.3 25.2 111.9 32.8 25.3 44.7 41.9 144.7 Brink's Home Security 22.5 23.3 21.3 20.3 87.4 19.4 19.8 20.2 21.4 80.8 - --------------------------------------------------------------------------------------------------------------------------------- Business segments 52.8 38.4 62.6 45.5 199.3 52.2 45.1 64.9 63.3 225.5 Former coal operations (13.2) (10.9) (8.8) (6.3) (39.2) (12.5) (10.1) (10.9)(12.4) (45.9) Corporate (10.6) (9.2) (9.8) (15.1) (44.7) (8.3) (9.3) (9.0)(15.6) (42.2) - --------------------------------------------------------------------------------------------------------------------------------- Operating profit $ 29.0 18.3 44.0 24.1 115.4 31.4 25.7 45.0 35.3 137.4 ================================================================================================================================= Brink's: Revenues: North America $ 186.0 192.2 197.9 202.1 778.2 180.1 180.9 184.3 188.4 733.7 International 323.2 344.5 353.0 358.0 1,378.7 277.9 284.4 308.4 327.5 1,198.2 - --------------------------------------------------------------------------------------------------------------------------------- Revenues $ 509.2 536.7 550.9 560.1 2,156.9 458.0 465.3 492.7 515.9 1,931.9 ================================================================================================================================= Operating profit: North America $ 12.7 9.4 16.8 10.5 49.4 12.9 13.0 14.1 15.2 55.2 International 17.6 5.7 24.5 14.7 62.5 19.9 12.3 30.6 26.7 89.5 - --------------------------------------------------------------------------------------------------------------------------------- Operating profit $ 30.3 15.1 41.3 25.2 111.9 32.8 25.3 44.7 41.9 144.7 ================================================================================================================================= Brink's Home Security: Revenues $ 91.9 96.8 100.4 103.0 392.1 82.0 85.9 87.6 90.1 345.6 - --------------------------------------------------------------------------------------------------------------------------------- Operating profit: Recurring services $ 41.5 43.7 42.3 40.0 167.5 35.1 35.7 37.2 39.8 147.8 Investment in new subscribers (19.0) (20.4) (21.0) (19.7) (80.1) (15.7) (15.9) (17.0)(18.4) (67.0) - --------------------------------------------------------------------------------------------------------------------------------- Operating profit $ 22.5 23.3 21.3 20.3 87.4 19.4 19.8 20.2 21.4 80.8 ================================================================================================================================= Costs of Former Coal Operations Included in Continuing Operations: Company-sponsored postretirement benefits other than pensions $ 9.4 8.6 8.6 8.6 35.2 9.4 9.2 9.3 9.2 37.1 Black lung 1.2 1.0 0.9 1.0 4.1 1.5 1.2 1.0 1.1 4.8 Pension 1.0 1.2 1.2 1.1 4.5 0.6 0.5 0.3 0.4 1.8 Administrative, legal and other expenses, net Gains on sale of property and equipment and other income (a) 1.6 0.1 (1.9) (4.4) (4.6) 1.0 (0.8) 0.3 1.7 2.2 - --------------------------------------------------------------------------------------------------------------------------------- Costs of former coal operations $ 13.2 10.9 8.8 6.3 39.2 12.5 10.1 10.9 12.4 45.9 ================================================================================================================================= (a) The company recognized gains of $2.8 million in the third quarter of 2005 and $3.0 million in the fourth quarter of 2005 related to recognizing deferred gains on the 2003 sale of its West Virginia coal operations. In addition, the company recognized a $3.1 million gain in the fourth quarter of 2005 from the settlement of royalty obligations for former Kentucky coal operations. 2
THE BRINK'S COMPANY and Subsidiaries Supplemental Financial Information (continued) (Unaudited) INCOME FROM DISCONTINUED OPERATIONS 2005 Quarters 2004 Quarters Full Full (In millions) 1st 2nd 3rd 4th Year 1st 2nd 3rd 4th Year - ------------------------------------------------------------------------------------------------------------------------------------ Gain (loss) on sales of: BAX Global (costs associated with sale) - - - (2.8) (2.8) - - - - - Timber $ - - - - - 18.8 1.9 - - 20.7 Gold - - - - - (0.9) - - - (0.9) Coal - - - - - - - - 5.0 5.0 Income (loss) from operations: BAX Global (a) 6.9 14.9 21.1 43.9 86.8 1.3 10.9 13.4 23.9 49.5 Timber - - - - - (0.5) - - - (0.5) Gold - - - - - (1.2) - - - (1.2) Adjustments to contingent assets and liabilities of former operations: Litigation settlement gain (b) - - - 15.1 15.1 - - - - - Health Benefit Act - - - 2.3 2.3 - - - 3.2 3.2 Reclamation liabilities (3.6) (1.2) - (1.4) (6.2) - - - (0.1) (0.1) Workers' compensation liabilities - - - 0.4 0.4 - - - (4.9) (4.9) Withdrawal liability - 6.1 - - 6.1 - 8.1 - 7.3 15.4 Other 0.2 0.3 (0.2) (0.2) 0.1 (2.9) (0.7) 0.7 (0.4) (3.3) - ------------------------------------------------------------------------------------------------------------------------------------ Income from discontinued operations before income taxes 3.5 20.1 20.9 57.3 101.8 14.6 20.2 14.1 34.0 82.9 Income tax (expense) benefit (c) (0.4) (7.0) 21.5 (10.4) 3.7 (3.7) (13.4) (4.3) (11.5) (32.9) - ------------------------------------------------------------------------------------------------------------------------------------ Income from discontinued operations $ 3.1 13.1 42.4 46.9 105.5 10.9 6.8 9.8 22.5 50.0 ==================================================================================================================================== (a) In January 2006, the company sold its BAX Global operations for $1.1 billion. BAX Global's results of operations have been reported as discontinued operations for all periods presented. (b) The company reached an agreement with the U.S. government in the fourth quarter of 2005 related to refunds of prior-year Federal Black Lung Excise Tax payments. The company received refunds of $15.1 million in early 2006. (c) During the third quarter of 2005, the company finalized discussions with the Internal Revenue Service over certain tax credit carryforwards related to the former natural resources businesses. The company recognized a $27.4 million tax benefit in the third quarter of 2005 in discontinued operations as a result of resolving these discussions. The benefit does not result in current cash receipts but has increased the company's tax credit carryforwards available to reduce future U.S. income tax payments. 3
THE BRINK'S COMPANY and Subsidiaries Supplemental Financial Information (continued) (Unaudited) SELECTED CASH FLOW INFORMATION 2005 Quarters 2004 Quarters Full Full (In millions) 1st 2nd 3rd 4th Year 1st 2nd 3rd 4th Year - ------------------------------------------------------------------------------------------------------------------------------------ Depreciation and amortization: Brink's $ 21.2 22.9 23.0 23.4 90.5 19.1 19.4 19.4 23.1 81.0 Brink's Home Security 13.9 14.3 14.7 15.2 58.1 12.5 12.6 12.9 13.5 51.5 Corporate 0.2 - 0.2 0.3 0.7 0.4 - 0.1 0.2 0.7 - ------------------------------------------------------------------------------------------------------------------------------------ Depreciation and amortization $ 35.3 37.2 37.9 38.9 149.3 32.0 32.0 32.4 36.8 133.2 ==================================================================================================================================== Capital expenditures: Brink's $ 31.4 18.0 23.9 35.7 109.0 16.1 16.2 17.5 26.4 76.2 Brink's Home Security (a) 43.2 37.8 38.7 42.5 162.2 26.7 29.4 30.7 30.8 117.6 Corporate 0.1 0.1 0.3 - 0.5 0.3 0.1 0.4 0.3 1.1 - ------------------------------------------------------------------------------------------------------------------------------------ Capital expenditures $ 74.7 55.9 62.9 78.2 271.7 43.1 45.7 48.6 57.5 194.9 ==================================================================================================================================== (a) Capital expenditures at BHS in the first quarter of 2005 include $10.2 million for the purchase of BHS's headquarters. The facility was previously leased. BHS capital expenditures for 2005 also include $7.4 million for the development of the Knoxville facility. Other Brink's Home Security cash flow information: Impairment charges from subscriber disconnects $ 8.8 10.8 13.3 12.3 45.2 8.7 10.2 10.5 9.0 38.4 Amortization of deferred revenue (6.5) (7.2) (8.0) (7.8) (29.5) (6.1) (6.6) (6.8) (6.6) (26.1) Deferral of subscriber acquisition costs (current year payments) (5.0) (6.0) (5.9) (6.0) (22.9) (4.7) (4.7) (5.0) (5.1) (19.5) Deferral of revenue from new subscribers (current year receipts) 9.6 10.2 10.4 10.5 40.7 8.1 8.7 9.1 8.7 34.6 ==================================================================================================================================== # # # 4