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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): March 17, 2010
 
THE BRINK’S COMPANY
(Exact name of registrant as specified in its charter)
 
Virginia
001-09148
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 7.01.                      Regulation FD Disclosure.

On March 17, 2010, The Brink’s Company updated the slides that it uses for meetings with investors and analysts.  A copy of the updated slides is furnished as Exhibit 99.1 hereto, and is incorporated herein by reference.

Item 9.01.                      Financial Statements and Exhibits.

(d)           Exhibits

99.1           Updated 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.
 

 
THE BRINK’S COMPANY
(Registrant)
   
   
Date: March 17, 2010
By:
/s/ Joseph W. Dziedzic
   
Joseph W. Dziedzic
   
Vice President and Chief Financial Officer

 
 

 
3
 

EXHIBIT INDEX

 
EXHIBIT                                                    DESCRIPTION
 
99.1
Updated slide presentation of The Brink’s Company.

 
4
 

exhibit_99-1.htm
The Brink’s Company
March 2010
The Brink’s Company
Management Presentation
EXHIBIT 99.1
 
 
 
The Brink's Company
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 February 2,
2010 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.
 
 
 
The Brink's Company
3
Agenda
Joseph W. Dziedzic
Vice President &
Chief Financial
Officer
Edward A. Cunningham
Director of Investor Relations &
Corporate Communications
n Introduction
n Brink’s Business Overview
n Financial Highlights
n Summary
 
 
 
4
The Brink’s Company
¢ Industry leader
¢ Premier brand
¢ Operational excellence
¢ Global footprint
¢ Growth strategy
¢ Proven financial performance
Investment Rationale
The Brink's Company
4
 
 
 
5
Brink’s Company Overview
World’s premier security company
¢ Founded in 1859, Brink’s is
 the oldest and largest secure
 logistics company
¢ Approximately 59,000 employees,
 805 branches and 10,500 vehicles
 worldwide
¢ Diversified operations with adjusted
 revenue of $2.9 billion in 2009 (1)
5
The Brink's Company
(1)  Adjusted financial information is reconciled to amounts reported under U.S. GAAP on pages 25, 26 &
 27.
 
 
 
6
Premier Brand
¢ Globally recognized brand
¢ Value built on:
 – Trust and integrity
 – Quality of our people
 – Safety and security
 – Operational excellence
 – History and heritage
 – Global network
¢ 150th Anniversary in 2009
6
The Brink's Company
 
 
 
Proven Operational Excellence
¢ Demonstrated global expertise
 – Security
 – Risk management
 – Logistics
 – Pricing discipline
 – Human resource management
 – IT capabilities
7
The Brink's Company
 
 
 
Global Leader in Secure Logistics
Brink’s
Loomis
G4S
Others
Prosegur
Global Market Share
Total $14 Billion
Source: Internal Company Estimates based on most recently available data
8
The Brink's Company
Leading Share in Fragmented Market
 
 
 
2009 Adjusted Revenue = $2.9B (1)
Business Lines
The Brink's Company
9
¢ Armored car transport
¢ Point-to-point pick-up and delivery of
 cash, coins, checks and other
 valuables
¢ ATM services
¢ Infrastructure for
 High-Value Services
Cash-in-Transit
$1.6 Billion (1)
High-Value Services
¢ Global Services
 – Secure long-distance transport of
 valuables
¢ Cash Logistics Services
 – Money processing
 – Virtual vaulting
 – CompuSafe® Service
¢ New Services
 – Payment Services
$0.9 Billion (1)
Security Services
$0.4 Billion (1)
¢ High-value niche guarding services in
 select E.U. countries
¢ Airports, embassies
High-Value
Services
CIT
Security
Services
(1) Adjusted financial information is reconciled to amounts reported under U.S. GAAP on page 28.
 
 
 
Global Footprint
North America
Asia Pacific
Latin America
Europe, Middle East, Africa
Approximately 805 branches serving more than 50 countries plus 66
additional countries served by Global Services
Canada
52 Branches
United States
181 Branches
EMEA
258 Branches
22 Countries
Asia Pacific
97 Branches
9 Countries
Latin America
217 Branches
9 Countries
10
The Brink's Company
 
 
 
Global Footprint
2009 Brink’s Adjusted Revenue and Segment Operating Profit
Revenue (1)
Segment Operating Profit (1)
Total: $2.9 billion
International
Total: $175 million
11
The Brink's Company
North America
EMEA
Latin America
North America
 Asia Pacific
(1) Adjusted financial information is reconciled to amounts reported under U.S. GAAP on pages 25, 26 & 27.
 
 
 
How We Manage The Company
¢ Invest to protect employees and customer assets… regardless of
 economy
¢ Global strategy… local execution… adapted to each market
¢ Disciplined investment and execution… learn… accelerate
¢ Capital allocation
 – Maximize mature markets
 – Invest in emerging markets
The Brink's Company
12
 
 
 
Financial Strength & Flexibility
¢ $53 million net debt
¢ Over $330 million available borrowing capacity
The Brink's Company
13
(millions)
Cash
$143
Debt
(196)
Net cash/(debt)(1)
($ 53)
December 31, 2009
¢ Investment grade credit rating
¢ Pension/Legacy liabilities… Cash Outflows
(1) See Non-GAAP reconciliation on page 19 of the Fourth-Quarter earnings release dated February 2, 2010.
(millions)
2010
2011
2012
2013
2014
 – Required pension contributions
$0
0
28
38
$31
 – UMWA (funded by VEBA)
 No cash outflow expected until 2026
 
 
 
 
 
 
 
 
 
Growth Strategy
¢ Existing markets
 – Invest in higher-margin “solutions” and services
 – Cash Logistics, CompuSafe® Service, Global Services
 – Expand in emerging, higher-growth markets… BRIC, Latin America,
 Asia-Pacific, Africa
 – Maximize profits in mature markets
¢ Adjacencies
 – Commercial Security, Payment Processing
¢ Acquisitions in high-growth markets and adjacencies
 – Maintain disciplined approach
 – Market knowledge important
14
The Brink's Company
 
 
 
15
The Brink's Company
High-Value
Services
Security
Services
CIT
Developed
Emerging
(1) Adjusted financial information is reconciled to amounts reported under U.S. GAAP on page 28.
Growth Strategy
Adjusted Revenue by Market(2)
Invest in High-Value Services and Emerging Markets… Shift the mix
(2) Adjusted financial information is reconciled to amounts reported under U.S. GAAP on pages 25, 26 & 27.
 
 
 
16
Leader in Business Segments
CompuSafe® Service
Leader in Business Segments
CompuSafe® Service
¢ CompuSafe® Service
 gaining traction
¢ ~30% growth in 2010
The Brink's Company
 
 
 
Recent Actions
¢ Venezuela cash repatriation… executing our strategy (December 2009)
¢ U.S. pension contribution of $150 million (August 2009)
¢ 2009 acquisitions in emerging markets… Brazil, Russia, India, China
¢ Resource allocation and management upgrades… focus on EMEA
17
The Brink's Company
 
 
 
Adjusted Revenue (1)
($MM)
Financial Performance
Adjusted Revenue Growth
18
The Brink's Company
(1)  Adjusted financial information is reconciled to amounts reported under U.S. GAAP on pages 25, 26 &
 27.
 
 
 
Total Adjusted Operating Profit (1)
($MM
 )
Financial Performance
Adjusted Profit Growth
Segment
113
172
196
223
175
Non-Segment
(82)
(73)
(62)
(43)
(38)
Total
31
99
134
180
137
19
The Brink's Company
(1)  Adjusted financial information is reconciled to amounts reported under U.S. GAAP on pages 25, 26 & 27.
 
 
 
Financial Performance
Execution Creates Value
($)
(1) $100 invested on December 31, 2001 in stock or index. Includes reinvestment of dividends.
Cumulative Stock Total Return (1)
20
The Brink's Company
 
 
 
Financial Performance
¢ Global economic weakness
 – Significant volume pressures
 – Steep decline in Diamond & Jewelry
 market
 – Customers in financial distress
¢ Key actions taken
 – Venezuela… executing our strategy
 – Pension funding addressed
 – EMEA Restructuring/severance
¢ Growth focus
 – BRIC acquisitions
 – Disciplined investment & execution
2009 Highlights
2010 Outlook
¢ Global economy stabilizing
 – Low/mid single-digit % annual organic
 revenue growth (from adjusted $2.9B in 2009)
 – Margins between 7.0% and 7.5%
 – Difficult comps in first-half 2010
 – Second-half seasonally stronger
¢ 2010 Focus areas
 – Latin America continued growth
 – North America productivity and margin growth
 – EMEA turnaround efforts
¢ Growth focus
 – Disciplined M&A
 – Solutions… higher-margin services
21
The Brink's Company
 
 
 
22
Summary
Investment Rationale
¢ Industry leader
¢ Premier brand
¢ Operational excellence
¢ Global footprint
¢ Strategy for growth
¢ Proven financial performance
22
The Brink's Company
 
 
 
23
The Brink's Company
 
 
 
Appendix
24
The Brink's Company
 
 
 
Adjusted Results - Reconciled to Amounts Reported under GAAP
25
The Brink's Company
Purpose of Adjusted Information
 
Adjusted results described in this filing are financial measures that are not required by, or presented in accordance with, U.S. generally accepted accounting principles
(“GAAP”). These adjusted results
 a) reflect the impact of reporting results from Venezuela at the less favorable parallel market exchange rate,
 b) exclude transaction losses on repatriated cash from Venezuela, and
 c) exclude an acquisition gain in India.
The purpose of the adjusted information is to provide users of financial information of The Brink’s Company an understanding of the effects of each of the items
described above. The adjusted information provides information to assist comparability and estimates of future performance. Brink’s believes these measures are
helpful in assessing operations and estimating future results, provide transparency to investors, and enable period-to-period comparability of financial performance.
Adjusted results should not be considered as an alternative to revenue, income or earnings per share amounts determined in accordance with GAAP and should be
read in conjunction with their GAAP counterparts.
 Explanation of Reconciling Items
 The adjustments:
 
 (a) Change from official rate to parallel rate translation in Venezuela
 
i.Reduce segment operating income - International to reflect operating results had they been translated using the parallel rate in effect at the time. Results from
Venezuela in 2005, 2006, 2007, 2008 and most of 2009 were translated at the official rate.
 
ii. Increase segment operating income - International by $5 million in 2009. The adjustment reverses certain currency exchange losses related to increases in cash
held in U.S. dollars by the Venezuelan subsidiaries.
 (b) Venezuela currency loss. Decrease non-segment expense by $23 million for the loss that was recognized in 2009 related to the repatriation of cash
 from Venezuela.
 (c) Acquisition gain. Decrease other operating income - non-segment by $14 million for the gain recorded in 2009 related to an acquisition of a
 controlling interest in an Indian subsidiary.
 
Years Ended December 31,
(In millions)
 
2009
2008
2007
2006
2005
Revenues
$
(238)
(173)
(119)
(39)
(26)
Operating profit
 
(43)
(49)
(27)
(12)
(7)
 
 
 
Adjusted Results - Reconciled to Amounts Reported under GAAP
(Cont.)
26
The Brink's Company
See page 25 for explanation of footnotes
Reconciliation
Amounts may not add due to rounding
 
 
 
Adjusted Results - Reconciled to Amounts Reported under GAAP
(Cont.)
27
The Brink's Company
(In millions)
 
2009
 
2008
 
2007
 
2006
 
2005
Non-Segment
 
 
 
 
 
 
 
 
 
 
Reported GAAP Basis
$
(47)
 
(43)
 
(62)
 
(73)
 
(82)
Adjustments:
 
 
 
 
 
 
 
 
 
 
 Change to Parallel Rate (a)
 
-
 
-
 
-
 
-
 
-
 Venezuela Currency Loss (b)
 
23
 
-
 
-
 
-
 
-
 India Acquisition Gain (c)
 
(14)
 
-
 
-
 
-
 
-
Adjusted Basis
$
(38)
 
(43)
 
(62)
 
(73)
 
(82)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Total Operating Profit
 
 
 
 
 
 
 
 
 
 
Reported GAAP Basis
$
167
 
229
 
161
 
111
 
38
Adjustments:
 
 
 
 
 
 
 
 
 
 
 Change to Parallel Rate (a)
 
(39)
 
(49)
 
(27)
 
(12)
 
(7)
 Venezuela Currency Loss (b)
 
23
 
-
 
-
 
-
 
-
 India Acquisition Gain (c)
 
(14)
 
-
 
-
 
-
 
-
Adjusted Basis
$
137
 
180
 
134
 
99
 
31
See page 25 for explanation of footnotes
Reconciliation
Amounts may not add due to rounding
 
 
 
28
The Brink's Company
Adjusted Results - Reconciled to Amounts Reported under GAAP
(Cont.)
See page 25 for explanation of footnotes