The following is a summary of the The Brink's Company (BCO) Q3 2024 Earnings Call Transcript:
Financial Performance:
Brink's reported a total organic growth of 13% for Q3 2024.
Adjusted EBITDA was $217 million, negatively impacted by security losses and FX headwinds, notably from the Mexican peso devaluation.
Free cash flow stood at $135 million, influenced by lower EBITDA and the currency impacts.Their earnings per share dropped $0.40 year-over-year due to higher interest expenses.
The company expects a full-year revenue of over $5 billion with an adjusted EBITDA of $910 million at the midpoint.
Business Progress:
Continued growth in ATM Managed Services (AMS) and Digital Retail Solutions (DRS), with organic growth of 26% in these segments.
Made key executive team additions to drive further operational efficiencies and growth.
Advanced technological investments in North America for better routing processes, despite some initial integration issues.
Acquisition of new key clients including a large U.S. nationwide auto parts dealer and a national pharmacy chain in Latin America.
Opportunities:
Anticipated increase in organic growth for AMS and DRS beyond 20% for the year due to strong backlog and anticipated deals.
Plans to expand in the high-margin areas of cash and valuables management by leveraging the brand's global footprint and market presence.
Risks:
Experienced unexpected $10 million increase in security losses affecting profit margins.
Faced significant FX headwind due to the strengthening U.S. dollar and devaluation of the Mexican peso, impacting revenue negatively.
Global Services business faced market softness due to high stable gold and silver prices.
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