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form_8-k.htm

 
 

 
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):  December 10, 2008
 
THE BRINK’S COMPANY
(Exact name of registrant as specified in its charter)
 
Virginia
1-9148
54-1317776
(State or other jurisdiction of incorporation)
(Commission File Number)
(IRS Employer 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 8.01.         Other Events.
 

On December 10, 2008, The Brink’s Company held an investor meeting, during which slides were presented.  A copy of the slide presentation is furnished as Exhibit 99.1 hereto, and is incorporated herein by reference.

Item 9.01.         Financial Statements and Exhibits.

(d)           Exhibits

 
99.1     Slide presentation of The Brink’s Company




 
2
 

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.
 
 
Date: December 10, 2008                                                                    
 
THE BRINK’S COMPANY
  
   (Registrant)
 
 
 
  
 
By:
/s/ McAlister C. Marshall, II  
    McAlister C. Marshall, II  
    Vice President, General Counsel and Secretary  
       
 

 

 
3
 

EXHIBIT INDEX
 
EXHIBIT                                          DESCRIPTION
 
 
99.1
Slide presentation of The Brink’s Company


 

 
4
 

exhibit_99-1.htm
Management Presentation
Management Presentation
December 10, 2008
December 10, 2008
 
 
 
2
Forward-looking Statements
This presentation, including questions and answers, may contain both
historical and forward-looking information within the meaning of the Private
Securities Litigation Reform Act of 1995. Actual results could differ materially
from projected results. Additional information regarding factors that could
affect financial performance is readily available in our press release dated
October 30, 2008 and in our filings with the Securities and Exchange Commission,
including our most recent forms 10-K and 10-Q. Information included in this
presentation is representative as of the date of the presentation only and The
Brink’s Company assumes no obligation to update any forward-looking
statements made.
 
 
 
n Introduction
n Brink’s Business Overview
n Financial Highlights
n Summary
3
Agenda
Michael J. Cazer
Vice President &
Chief Financial Officer
Edward A. Cunningham
Director of Investor Relations &
Corporate Communications
 
 
 
4
Brink’s Company Overview
World’s premier security company
n Founded in 1859, Brink’s is
 the oldest and largest secure logistics
 company
n Diversified operations with LTM
 revenues of $3 billion as of
 September 30, 2008
n Approximately 50,000 employees,
 800 facilities and 9,000 vehicles
 worldwide
 
 
 
5
The Brink’s Company
n Solid core industry dynamics
n Premier brand
n Leader in business segments
n Proven operational excellence
n Global footprint
n Growth strategy
n Strong financial performance
 
 
 
6
Solid Core Industry Dynamics
Global Outsourced Cash Logistics Market
Source: Central Banks, Internal Company Estimates
($Bn)
$2.3 - $2.8Bn
Notes in Circulation
¢ Cash use growing with
 GDP in developed markets
¢ Faster growth in
 developing economies
¢ Customer outsourcing
 (Cash Logistics) increasing
¢ Opportunities vary by
 region
 
 
 
7
Premier Brand
n Globally recognized brand
n A brand built on
 – Trust and integrity
 – Quality of our people
 – Safety and security
 – Operational excellence
 – History and heritage
 – Global network
n 150th Anniversary in 2009
 
 
 
8
Leader in Business Segments
Secure Logistics
Total: $14 billion
Brink’s
Securitas / Loomis
G4S
Others
Prosegur
Leading Share in Fragmented Secure Logistics Market
Estimated 2007 Global Secure Logistics Market Share
Source: Internal Company Estimates
 
 
 
9
2007 Revenue
(% of Total)
Description
High Value Services
Cash-in-Transit
Security Services
n Armored car transportation
n Point-to-point pick-up and
 delivery of cash, coins, checks
 and other valuables
n ATM services
n Provides infrastructure for
 High Value Services
$1.5 Billion (55%)
$0.9 Billion (32%)
$0.3 Billion (13%)
n Global Services
 – Secure long-distance
 transport of valuables
 – International shipping
 by air / sea / land
n Cash Logistics Services
 – Money processing
 – Virtual vaulting
 – Intelligent safes
n New Services
 – Payment Services
n High-value niche guarding
 services in select E.U. countries
n Protection of
 – Airports
 – Embassies
 – Public venues
 – Stores
Source: Internal Company Estimates
Leader in Business Segments
Business Lines, Products and Services
 
 
 
Cash Logistics
Retailer
Bank
Brink’s
Facility
(Virtual
Vault)
 l Builds on CIT & IT
 capabilities
 l Money processing (sorting,
 counterfeit checking,
 packing, distribution)
 l Virtual vaulting (processing &
 storage of cash for banks)
 l Intelligent safes (counting,
 counterfeit checking and
 networking with banks)
 – CompuSafe® Service /
 I-Cash / I-Deposit
Compu
Safe®
Leader in Business Segments
Cash Logistics: Features & Benefits
Benefits
Banks
Retailers
Brink’s
 l Outsourcing and
 cost reduction
 l Reduced assets
 invested in vaults
 l Improved customer
 service
 l Expanded vaulting
 capacity extends
 geographic reach
 l Enhanced safety
 and security
 l Better cash
 management,
 same-day credit
 l Lower bank fees
 l Enhanced safety
 and security
 l Reduced cash
 administration /
 more productive
 employees
 l Improved customer
 service
 l Reduced theft,
 counterfeiting
 l Improved
 customer service
 l Revenue growth,
 higher margins
 l Longer contracts
 (“sticky”)
 l Lower
 transportation
 costs
 l Enables “full-
 service” offering
10
 
 
 
Leader in Business Segments
Relative Growth and Margins
11
Security Services
Cash-in-Transit
High Value Services
n Global Services
n Cash Logistics
n New Services
 
 
 
12
Proven Operational Excellence
n Demonstrated global expertise
 – Security
 – Risk management
 – Logistics
 – Pricing discipline
 – Human resource management
 – IT capabilities
 
 
 
Global Footprint
13
North America
Asia Pacific
Latin America
Europe, Middle East, Africa
786 branches in 50 countries plus 66 additional
countries served by Global Services
Canada
56 Branches
United States
197 Branches
EMEA
269 Branches
26 Countries
Asia Pacific
31 Branches
13 Countries
Latin America
233 Branches
9 Countries
 
 
 
14
Global Footprint
Brink’s Segment Revenue and Operating Profit
Revenue
Operating Profit
North America
Asia Pacific
Latin
America
Europe, Middle East and Africa
Total: $3 billion
International
Total: $279 million
Note: (1) Last Twelve Months
LTM September 30, 2008 (1)
LTM September 30, 2008 (1)
 
 
 
15
Growth Strategy
n Core
 – Increase share in current geographic markets
 – Penetrate new geographies with strong growth potential
 – Continue to develop and grow high-margin products and services
 Ÿ Cash Logistics, CompuSafe® Services, Global Services
 – Provide full-range cash management solutions
n Plus
 – Enter new security-related markets where we can create value for
 customers with our brand and other competitive advantages
 Ÿ Commercial Security, Payment Processing
n Acquisitions to supplement organic growth
 
 
 
16
Revenue
Strong Financial Performance
Revenue Growth
* Note: See Appendix for non-GAAP reconciliation
 
 
 
 
17
Brink’s as Reported
113
145
120
184
223
147
203
Adjustments (1)
9
6
2
1
1
1
8
Corporate/Former Ops
(97)
(88)
(84)
(75)
(64)
(48)
(52)
Pro Forma Op Profit
25
63
38
111
161
100
159
Pro-Forma Operating Profit
($MM)
Strong Financial Performance
Profit Growth
Note: (1) Includes effect of divestiture of UK cash handling operations and royalties from 3rd party previously reported in BHS.
 Also includes external professional, legal and advisory fees related to spin-off.
* Note: See Appendix for non-GAAP reconciliation
 
 
 
18
Strong Financial Performance
Enhancing Margins
n Continue developing IT capabilities
 – CompuSafe® Service, Virtual Vaulting, I-Deposit, etc.
n Investing in sales and marketing
 – Selling solutions
n Grow high-margin business
 – Global Services, Cash Logistics
n Grow in high-margin geographies
 – BRIC, Latin America, Asia-Pacific, Africa
n Improve or exit underperforming assets
 – Several countries in Europe and Latin America improving
 – U.K. ground operations sold in 2007
 
 
 
19
Strong Financial Performance
Balance Sheet
n $95 million net cash at September 30, 2008
n Strong cash flow from operations
n Over $350 million of available borrowing capacity
n Investment grade credit rating
Cash
$258
Debt
(163)
Net cash/(debt)(1)
$ 95
Note: (1) Non-GAAP reconciliation
 
 
 
20
Strong Financial Performance
Long-Term Objectives
Revenue
 
High single-digit % growth per year
Operating Margins
 
Improve by 50 bps per year
 
 
 
21
Strong Financial Performance
Revenue Growth Across Economic Cycles
Strong Financial Performance
Revenue Growth Across Economic Cycles
Sources: U.S. Department of Commerce - Bureau of Economic Analysis, Internal Company Data
 
 
 
Strong Financial Performance
Execution Creates Value
($)
Note: (1) $100 invested on December 31, 2001 in stock or index. Includes reinvestment of dividends
Cumulative Stock Total Return (1)
22
 
 
 
23
Summary
n Solid core industry dynamics
n Premier brand
n Leader in business segments
n Proven operational excellence
n Global footprint
n Growth strategy
n Strong financial performance
 
 
 
24
Appendix
Appendix
 
 
 
Non-GAAP Reconciliation
25
Non-GAAP Reconciliation
Revenue
2003
2004
2005
2006
2007
9M 2007
9M 2008
Brink’s as reported
1,689.0
1,931.9
2,113.3
2,354.3
2,734.6
1,977.8
2,404.0
Divestiture of UK cash
handling operations
(25.3)
(33.9)
-
-
-
-
-
Pro-Forma
1,663.7
1,898.0
2,113.3
2,354.3
2,734.6
1,977.8
2,404.0
Non-GAAP Reconciliation
Operating Profit
2003
2004
2005
2006
2007
9M 2007
9M 2008
Brink’s as reported
112.5
144.7
119.5
184.1
223.3
146.9
202.7
Divestiture of UK cash
handling operations
7.6
4.3
-
-
-
-
-
Costs related to Spin-Off(1)
-
-
-
-
-
-
6.5
Royalty (2)
1.7
1.6
2.0
1.4
1.4
0.6
1.3
Brink’s adjusted
121.8
150.6
121.5
185.5
224.7
147.5
210.5
Corporate / Former Ops
(96.8)
(88.1)
(83.9)
(74.9)
(63.5)
(47.4)
(51.6)
Pro-Forma
25.0
62.5
37.6
110.6
161.2
100.1
158.9
Note: (1) External professional, legal and advisory fees related to spin-off
 (2) Royalties from 3rd party previously reported in BHS. After spin-off, the applicable royalty contract will be retained
 by Brink’s.