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The Brink's Company (BCO) Q3 2024 Earnings Call Transcript Summary

Futu News ·  04:09  · Conference Call

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.

Tips: For more comprehensive details, please refer to the IR website. The article is only for investors' reference without any guidance or recommendation suggestions.

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