The Brink's Co (BCO) Announces Record Third-Quarter Results
The Brink's Co (NYSE:BCO) reported an 8% increase in Q3 revenue, reflecting 6% organic growth.
Operating profit for Q3 was up 131% to $138M on a GAAP basis and up 31% to $166M on a non-GAAP basis.
Year-to-Date net cash from operations increased by 46% and free cash flow rose by 197%.
The company's board has authorized a new $500 million share repurchase plan.
On November 7, 2023, The Brink's Co (NYSE:BCO), a leading global provider of cash and valuables management, digital retail solutions (DRS), and ATM managed services (AMS), announced its third-quarter results. The company reported a significant increase in revenue, operating profit, and free cash flow, reflecting its strong performance and consistent growth.
Financial Highlights
The company's Q3 revenue was up 8%, reflecting 6% organic growth. The operating profit for Q3 was up 131% to $138M on a GAAP basis and up 31% to $166M on a non-GAAP basis. The operating profit margin was up 115% to 11.2% on a GAAP basis and up 21% to 13.5% on a non-GAAP basis. The GAAP net income for Q3 was up 138% to $46M, and adjusted EBITDA was up 22% to $231M. The company's GAAP EPS was $0.97, and non-GAAP EPS was $1.92.
Year-to-Date, the GAAP net cash from operations was up $93M to $293M, and free cash flow was up $143M to $216M. The company's higher growth AMS and DRS offerings grew a combined 18% organically in the third quarter and now exceed 20% of the company's total trailing twelve-month revenue.
Company's Outlook
The Brink's Co (NYSE:BCO) has increased its full-year free cash flow guidance to the top half of the range - $350M - $375M. The company's 2023 Non-GAAP outlook includes revenues of $4,800 - $4,950 million, operating profit of $625 - $675 million, and adjusted EBITDA of $865 - $915 million. The company also expects free cash flow before dividends to be $350 - $375 million, and EPS from continuing operations attributable to Brink's to be $6.45 - $7.15.
CEO's Commentary
We delivered another strong quarter of revenue, profit and free cash flow growth as we continue to build momentum and consistency in our business. Our higher growth AMS and DRS offerings grew a combined 18% organically in the third quarter and now exceed 20% of our total trailing twelve-month revenue. Record operating profit and operating profit margins reflect our disciplined cost productivity initiatives, including the restructuring actions late last year, and the margin benefits of price realization and improved revenue mix from DRS and AMS. Free cash flow of $216 million year-to-date reflects the flow through of higher operating profits and better working capital management. Consistent with our stated capital allocation priorities, we have returned nearly two-thirds of our free cash flow to shareholders through our share repurchase plan and quarterly dividend. Given the strength of our performance and positive cash flow outlook for the business, our board has authorized a new $500 million share repurchase plan." - Mark Eubanks, president and CEO of The Brink's Co (NYSE:BCO)
Explore the complete 8-K earnings release (here) from The Brink's Co for further details.
This article first appeared on GuruFocus.
