Q2 2024 Brinks Co Earnings Call Transcript
Key Points
- The Brink's Co (BCO) reported a strong total organic growth of 14%, with significant contributions from ATM Managed Services and Digital Retail Solutions (AMS/DRS) growing 26% organically.
- Adjusted EBITDA increased by 16% to $226 million, with margins expanding by 200 basis points to 18%, driven by transformation initiatives and cost productivity.
- Earnings per share rose by 31% to $1.67, supported by profit growth and a share repurchase program.
- The company successfully refinanced its 2025 bonds, increasing liquidity and securing a credit rating upgrade from S&P.
- The Brink's Co (BCO) maintained strong free cash flow conversion, with improvements in working capital and margin expansion.
- Foreign currency fluctuations, particularly in Latin America, posed an 11% translational FX headwind, impacting revenue growth.
- The Global Services business experienced continued cyclical market softness, affecting overall growth and margins.
- Trailing 12-month free cash flow was down 7% compared to the prior year, primarily due to the seasonal timing of working capital.
- The company faced margin compression in Latin America due to currency devaluation, particularly in Argentina.
- Despite strong growth in AMS/DRS, the Global Services business remained a drag on organic growth in the first half of the year.
Welcome to the Brink's Company's Second Quarter 2024 Earnings Call. This morning Brink's issued a press release detailing its second quarter 2024 results. The company also filed an 8-K that includes the release and the slides that will be used in today's call.
The release and slides are available at the Investor Relations section of the company's website at investors.brinks.com. At this time, all participants are in a listen-only mode. A question-and-answer session will follow the presentation. As a reminder, this conference is being recorded and will be available for replay.
This call and the Q&A session will contain forward-looking statements. Actual results could differ materially from the projected or estimated results. Information regarding factors that could cause such differences are available in the footnotes of today's press release and in the company's most recent SEC filings.
Information presented and discussed on this call is representative of today only. Brink's assumes no obligation to update any forward-looking statements. This call is copyrighted and may not
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