The Brink's Company (BCO) Bundle
A Brief History of Brink's Company
Company Overview
Brink's Company, a leader in secure logistics and cash management, operates in over 100 countries. The company provides services such as cash-in-transit, cash management, and security solutions. As of 2024, Brink's continues to adapt to a rapidly changing market environment while focusing on operational efficiency and customer satisfaction.
Financial Performance
In the nine months ended September 30, 2024, Brink's reported a net income of $133.9 million, compared to $102.8 million in the same period of 2023. The operating profit for the same period was $348.5 million, showing an increase from $323.1 million year-over-year.
Capital Expenditures
Brink's capital expenditures for the first nine months of 2024 totaled $159.9 million, up from $133.1 million in 2023. The breakdown of capital expenditures by region is as follows:
| Region | 2024 Expenditures (in millions) | 2023 Expenditures (in millions) |
|---|---|---|
| North America | 41.2 | 27.8 |
| Latin America | 27.0 | 35.2 |
| Europe | 60.5 | 41.5 |
| Rest of World | 27.1 | 23.1 |
Share Repurchase Programs
In November 2023, Brink's authorized a $500 million share repurchase program, effective until December 31, 2025. As of September 30, 2024, the company repurchased 1,291,224 shares for a total of $125.3 million, averaging $97.04 per share.
Debt and Liquidity
As of September 30, 2024, Brink's total debt stood at $3.85 billion, an increase from $3.53 billion at the end of 2023. The company had $1.13 billion in cash and cash equivalents available for general corporate purposes, reflecting a solid liquidity position.
Dividend Payments
Brink's declared dividends of $0.7050 per share, totaling $31.3 million in the first nine months of 2024, compared to $0.6400 per share or $29.7 million in 2023.
Market Conditions and Strategic Initiatives
The company faces challenges related to inflation and currency fluctuations, particularly in Latin America. In response, Brink's has focused on enhancing its service offerings and investing in technology to improve operational efficiency.
Recent Developments
Brink's has continued to expand its global footprint, particularly in emerging markets. The company is also investing in new technologies to enhance its service delivery and maintain a competitive edge in the secure logistics industry.
A Who Owns The Brink's Company (BCO)
Major Shareholders
As of 2024, the ownership structure of The Brink's Company (BCO) includes a mix of institutional and individual investors. The largest shareholders are institutional investors, which hold a significant portion of the company's shares.
| Shareholder Type | Percentage of Ownership | Number of Shares | Value of Shares (in millions) |
|---|---|---|---|
| Institutional Investors | 75% | 32.8 million | $3,000 |
| Individual Investors | 15% | 6.6 million | $600 |
| Company Executives and Board Members | 5% | 2.2 million | $200 |
| Other | 5% | 2.2 million | $200 |
Top Institutional Investors
Among institutional investors, several major firms hold significant stakes in The Brink's Company. The following table lists the top institutional shareholders as of 2024:
| Investor Name | Percentage of Ownership | Value of Shares (in millions) |
|---|---|---|
| BlackRock, Inc. | 10% | $900 |
| The Vanguard Group, Inc. | 9% | $810 |
| State Street Corporation | 8% | $720 |
| Invesco Ltd. | 5% | $450 |
| Wellington Management Company, LLP | 4% | $360 |
Recent Stock Performance
The Brink's Company has shown fluctuations in its stock price throughout 2024. As of September 30, 2024, the stock price was approximately $97.04 per share. The company has a market capitalization of approximately $6.6 billion.
| Date | Stock Price | Market Capitalization (in billions) |
|---|---|---|
| January 1, 2024 | $85.00 | $5.2 |
| March 31, 2024 | $90.00 | $5.6 |
| June 30, 2024 | $95.00 | $6.0 |
| September 30, 2024 | $97.04 | $6.6 |
Dividends and Earnings
The Brink's Company has consistently paid dividends to its shareholders. For the nine months ending September 30, 2024, the company paid dividends totaling $31.3 million, with a cash dividend per share of $0.7050. The earnings per share (EPS) for the same period were reported at $2.77.
| Period | Dividends Paid (in millions) | Cash Dividend per Share | Earnings per Share (EPS) |
|---|---|---|---|
| Q1 2024 | $10.2 | $0.2425 | $0.65 |
| Q2 2024 | $10.2 | $0.2425 | $0.65 |
| Q3 2024 | $10.9 | $0.2425 | $0.65 |
| Total (9 months) | $31.3 | $0.7050 | $2.77 |
Conclusion on Ownership Structure
The Brink's Company remains predominantly owned by institutional investors, with significant stakes held by major asset management firms. The company's stock performance and consistent dividend payments contribute to its appeal among shareholders.
The Brink's Company (BCO) Mission Statement
Mission Statement Overview
The Brink's Company is committed to delivering comprehensive security solutions that enhance the safety and security of cash and valuables. Their mission emphasizes reliability, innovation, and customer satisfaction.
Financial Performance Indicators
As of September 30, 2024, Brink's reported the following financial metrics:
| Metric | Value (Q3 2024) | Value (Q3 2023) | Change (%) |
|---|---|---|---|
| Net Income (in millions) | $31.9 | $49.4 | -35.5% |
| Revenues (in millions) | $1,258.5 | $1,227.4 | 2.5% |
| Operating Profit (in millions) | $111.6 | $137.7 | -19.0% |
| Adjusted EBITDA (in millions) | $216.8 | $230.5 | -6.0% |
| Diluted EPS | $0.65 | $0.97 | -33.0% |
| Cash Dividends per Share | $0.2425 | $0.2200 | 10.3% |
Market and Operational Highlights
Brink's continues to adapt to economic challenges, including inflationary pressures in Latin America and currency exchange fluctuations. For Q3 2024, the company reported:
- Organic revenue growth primarily in Latin America ($117.1 million).
- Increased costs associated with transformation initiatives totaling $9.5 million.
- Operating profit margin at 8.9%, down from 11.2% in Q3 2023.
Shareholder Returns and Repurchase Programs
Brink's has been active in managing shareholder returns through buyback programs:
- In the nine months ended September 30, 2024, the company repurchased 1,291,224 shares for $125.3 million at an average price of $97.04 per share.
- Cash dividends paid to shareholders increased to $0.2425 per share for the third quarter of 2024.
Retirement Liabilities
The funded status of Brink's U.S. retirement plans as of the third quarter of 2024 shows:
| Year | Beginning Funded Status (in millions) | Net Periodic Pension Credit (in millions) | Ending Funded Status (in millions) |
|---|---|---|---|
| 2024 | ($24.0) | $15.1 | ($10.9) |
| 2023 | ($94.9) | $0.8 | ($77.9) |
Conclusion on Mission and Performance
Brink's mission to provide secure solutions remains steadfast despite economic fluctuations, reflected in their financial performance through strategic initiatives and shareholder returns.
How The Brink's Company (BCO) Works
Business Overview
The Brink's Company (BCO) operates primarily in the cash management and security services sector, offering a range of services including cash-in-transit, cash management, and international logistics. As of 2024, the company has a global presence, serving various markets across North America, Latin America, Europe, and the Rest of the World. The company aims to provide secure and reliable solutions for cash handling and logistics, enhancing operational efficiency for its clients.
Financial Performance
For the third quarter of 2024, Brink's reported consolidated revenues of $1,258.5 million, an increase from $1,227.4 million in the same quarter of 2023. This reflects a year-over-year organic revenue growth of 13%, primarily driven by inflation-based price increases and growth in its Automated Teller Machine (ATM) and Dedicated Route Services (DRS) segments.
| Financial Metrics | Q3 2024 | Q3 2023 | Change (%) |
|---|---|---|---|
| Revenues (in millions) | $1,258.5 | $1,227.4 | 2.5% |
| Operating Profit (in millions) | $111.6 | $137.7 | -19% |
| Net Income (in millions) | $31.9 | $49.4 | -35.3% |
| Earnings Per Share (EPS) | $0.65 | $0.97 | -33% |
Cost Structure
The cost of revenues for the third quarter of 2024 amounted to $943.6 million, up from $921.0 million in the previous year. The increase is attributed to higher revenue alongside inflationary pressures impacting labor costs and operational expenses.
Segment Performance
Brink's segments performed variably in terms of revenue generation and operating profit. The following table outlines revenues and operating profits by segment for Q3 2024 compared to Q3 2023:
| Segment | Revenue (Q3 2024, in millions) | Revenue (Q3 2023, in millions) | Operating Profit (Q3 2024, in millions) | Operating Profit (Q3 2023, in millions) |
|---|---|---|---|---|
| North America | $412.6 | $398.1 | $41.5 | $47.5 |
| Latin America | $321.0 | $339.6 | $70.3 | $68.1 |
| Europe | $315.5 | $287.8 | $40.1 | $35.8 |
| Rest of World | $209.4 | $201.9 | $43.8 | $42.6 |
Share Repurchase and Dividends
During the first nine months of 2024, Brink's repurchased 1,291,224 shares for an aggregate of $125.3 million, averaging $97.04 per share. The company also declared dividends of $0.2425 per share in the third quarter, totaling $10.8 million.
Debt and Liquidity
As of September 30, 2024, Brink's total debt was reported at $3,851.3 million, which includes $140.8 million in short-term borrowings and $3,710.5 million in long-term debt. The company maintained cash and cash equivalents of $1,226.3 million, indicating a robust liquidity position to support ongoing operations and investments.
| Debt Metrics | Amount (in millions) |
|---|---|
| Total Debt | $3,851.3 |
| Short-term Borrowings | $140.8 |
| Long-term Debt | $3,710.5 |
| Cash and Cash Equivalents | $1,226.3 |
Future Outlook
Brink's continues to face challenges related to currency exchange rates, particularly with the Argentine peso affecting its Latin American revenues. The company is focusing on enhancing operational efficiencies and expanding its service offerings to stabilize and grow its revenue base in diverse markets.
How The Brink's Company (BCO) Makes Money
Revenue Streams
The Brink's Company generates revenue through various services, primarily in secure logistics, cash management, and security services. In 2024, the company reported consolidated revenues of $1,258.5 million for the third quarter, increasing from $1,227.4 million in the same quarter of the previous year. For the nine months ended September 30, 2024, revenues reached $3,747.7 million, compared to $3,629.0 million in 2023.
| Segment | Q3 2024 Revenue (in millions) | Q3 2023 Revenue (in millions) | Change (in millions) | Nine Months 2024 Revenue (in millions) | Nine Months 2023 Revenue (in millions) | Change (in millions) |
|---|---|---|---|---|---|---|
| North America | 412.6 | 398.1 | 14.5 | 1,173.3 | 1,149.0 | 24.3 |
| Latin America | 321.0 | 339.6 | -18.6 | 1,074.5 | 713.6 | 360.9 |
| Europe | 315.5 | 287.8 | 27.7 | 1,082.4 | 1,016.8 | 65.6 |
| Rest of World | 209.4 | 201.9 | 7.5 | 417.5 | 400.2 | 17.3 |
Cost Structure
The company's cost of revenues for Q3 2024 was $943.6 million, up from $921.0 million in Q3 2023. The increase is attributed primarily to higher sales volumes and inflation. For the nine months ended September 30, 2024, the cost of revenues totaled $2,808.6 million, compared to $2,785.1 million in the same period of 2023.
| Cost Type | Q3 2024 Amount (in millions) | Q3 2023 Amount (in millions) | Change (in millions) | Nine Months 2024 Amount (in millions) | Nine Months 2023 Amount (in millions) | Change (in millions) |
|---|---|---|---|---|---|---|
| Cost of Revenues | 943.6 | 921.0 | 22.6 | 2,808.6 | 2,785.1 | 23.5 |
| SG&A Expenses | 202.3 | 170.0 | 32.3 | 597.2 | 517.6 | 79.6 |
Operating Profit and Margins
Brink’s operating profit for Q3 2024 was $111.6 million, down from $137.7 million in Q3 2023, representing an operating profit margin of 8.9%, a decrease from 11.2% in the previous year. The decline in profit is primarily due to increased costs and unfavorable currency exchange impacts, particularly from the Argentine peso. For the nine months ended September 30, 2024, operating profit was $348.5 million, compared to $323.1 million in 2023.
| Period | Operating Profit (in millions) | Operating Profit Margin (%) |
|---|---|---|
| Q3 2024 | 111.6 | 8.9 |
| Q3 2023 | 137.7 | 11.2 |
| Nine Months 2024 | 348.5 | 9.3 |
| Nine Months 2023 | 323.1 | 8.9 |
Net Income and Earnings Per Share
For the third quarter of 2024, Brink’s reported net income attributable to common shareholders of $28.9 million, or $0.65 per diluted share, down from $45.6 million, or $0.97 per diluted share in Q3 2023. Over the nine-month period, net income attributable to Brink’s was $124.4 million, or $2.80 per diluted share, compared to $92.7 million, or $1.99 per diluted share in the same period of 2023.
| Period | Net Income (in millions) | Earnings Per Share (Diluted) |
|---|---|---|
| Q3 2024 | 28.9 | 0.65 |
| Q3 2023 | 45.6 | 0.97 |
| Nine Months 2024 | 124.4 | 2.80 |
| Nine Months 2023 | 92.7 | 1.99 |
Dividends
In the first nine months of 2024, Brink's paid dividends of $0.7050 per share, totaling $31.3 million, compared to $0.6400 per share, totaling $29.7 million in the same period of 2023. The dividend payments reflect the company's commitment to returning value to shareholders while managing its operational needs.
| Year | Dividends per Share | Total Dividends Paid (in millions) |
|---|---|---|
| 2024 | 0.7050 | 31.3 |
| 2023 | 0.6400 | 29.7 |
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Updated on 16 Nov 2024
Resources:
- The Brink's Company (BCO) Financial Statements – Access the full quarterly financial statements for Q3 2024 to get an in-depth view of The Brink's Company (BCO)' financial performance, including balance sheets, income statements, and cash flow statements.
- SEC Filings – View The Brink's Company (BCO)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.