A robbery and flood widen the gap in Brink's earnings
The company excluded $26.6 million of incident losses from adjusted results. Revenue and adjusted profit grew, while reported continuing earnings fell.
Brink's recognized $19.6 million of losses related to a September precious-metals robbery and another $7 million from a warehouse flood. The company excluded both incidents from its adjusted earnings, adding to the gap between those results and reported profit.
The flood damaged inventory at a North American warehouse. Together, the incidents produced $26.6 million of pretax losses in the quarter.
Two sets of earnings move in different directions
Net income from continuing operations attributable to Brink's fell to $14.6 million from $36.2 million a year earlier. Its adjusted continuing income rose to $102.2 million from $87.8 million.
The incident losses were one part of that difference. Brink's also excluded $45.7 million of acquisition and transformation costs, along with other adjustments. Those costs are separate from the robbery and flood.
Research by Ticker Byline shows that adjusted earnings of $2.46 a share were within the $2.23 to $2.63 range forecast in August. Brink’s also kept its full-year operating framework.
Revenue continued to grow. Revenue rose to $1.375 billion from $1.335 billion, and the company reported organic growth. Both cash-management services and secure logistics contribute to its operating results.
Cash and acquisition costs remain relevant
Operating cash flow for the first nine months was $154.8 million, compared with $265.9 million a year earlier. Company-defined free cash flow before dividends was $151.7 million, compared with $174.3 million. That measure adjusts for customer cash, transaction payments and other items as well as capital spending.
At September 30, the company reported $1.563 billion of cash and cash equivalents. This included $139.8 million held for customer obligations, leaving $1.423 billion in the company's corporate-cash measure. Restricted cash was reported separately.
Brink's planned acquisition of NCR Atleos remains unclosed. Management now expects an early-January closing; the broader early-first-quarter timetable had already been disclosed. The Brink's earnings, cash and debt profile follows the operating business and the costs excluded from adjusted results.