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Sep 30, 2020
Brinks Q3 2020 Earnings Report
Brink's third quarter results reflected strong revenue recovery and cost reductions, driving margin growth.
Key Takeaways
Brink's reported a 5% increase in revenue (11% in constant currency) and GAAP EPS of $(0.47) with non-GAAP EPS at $0.86. The company's revenue reached 88% of 2019 pro forma levels, and cost reductions drove significant operating profit growth.
Revenue increased by 5%, and 11% on a constant currency basis.
GAAP EPS was $(.47); non-GAAP EPS was $.86.
Revenue reached 88% of 2019 pro forma levels, up from 78% in Q2, with September at 90%.
GAAP operating profit was $76 million, with a 7.9% margin; non-GAAP operating profit was $100 million, with a 10.3% margin.
Revenue by Geographic Location
Forward Guidance
Brink's expects a strong finish to 2020, with a fourth-quarter operating margin target of approximately 11.5%. The company is also optimistic about continued margin expansion in 2021.
Positive Outlook
- Ongoing cost actions driving operating profit and margin rates higher.
- Additional contributions expected from the G4S acquisition.
- Fourth-quarter operating margin target of approximately 11.5%.
- Continued margin expansion expected in 2021.
- Full-year benefits of permanent cost reductions and the G4S acquisition expected in 2021.
Challenges Ahead
- Government-mandated shutdowns reduced April pro forma revenue to 71% of 2019 levels.
- Potential impact of highly inflationary accounting on Argentina operations.
- Uncertainty related to potential Non-GAAP adjusting items.
- Risks associated with operating in foreign countries.
Revenue & Expenses
Visualization of income flow from segment revenue to net income
Historical Earnings Impact
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Avg. Return Before/After Earnings
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