The Brink's Company (NYSE:BCO) Q4 2014 Earnings Conference Call - Final Transcript
Feb 05, 2015 • 11:00 am ET
Welcome to The Brink's Company's Fourth Quarter 2014 Earnings Call. Brink's issued a press release on the fourth quarter results this morning. The Company also filed an 8-K that includes the release and the slides that will be used in today's call. For those of you listening by phone, the release and slides are available on the Company's website at brinks.com. At this time, all participants are in a listen-only mode. A question-and-answer session will follow the formal presentation. (Operator Instructions) As a reminder, this conference is being recorded.
(Forward-Looking Cautionary Statements).
It is now my pleasure to introduce your host, Ed Cunningham, VP of IR and Corporate Communications. Mr. Cunningham, you may begin.
Thank you, Denise. Good morning. Joining me today are CEO, Tom Schievelbein; and CFO, Joe Dziedzic. This morning, we reported results on both the GAAP and non-GAAP basis. The non-GAAP results excludes several items, including US retirement expenses, severance and restructuring charges, certain compensation and employee benefit items, acquisitions, dispositions and some currency-related items, including the write-down of net monetary assets in Venezuela. The non-GAAP results use a tax rate of 38.5%, up from 34.2% in 2013. The higher rate is due primarily to lower profits in Venezuela as a result of the currency devaluation in that country in March of 2014.
We believe the non-GAAP results make it easier for investors to assess operating performance between periods. Accordingly, our comments today, including those referring to our guidance, will focus on non-GAAP results. A summary reconciliation of non-GAAP to GAAP results is provided on page three of the release. More detailed reconciliations are provided in the release and the appendix to the slides we're using today and this morning's 8-K filing and on our website. Page 10 of the press release provides a summary of several outlook items, including guidance on revenue, operating profit and earnings per share.
I'll now turn the call over to Tom.
Thanks, Ed, and good morning, everyone. We've got a lot of ground to cover today, so I'm going to provide a brief overview of our results, some recent restructuring actions and our outlook for this year and for 2016. In addition to the normal financial review, Joe is going to spend some extra time on our recent restructuring activities, our new financial reporting format, the impact of currency on our results and the actions we're taking to improve results in the United States and Mexico. Providing this information should help investors track and assess our progress.
Fourth quarter earnings from continuing operations came in at $0.69 per share despite a negative impact of $0.25 related to last year's devaluation in Venezuela and an additional negative impact of $0.14 from other currency declines. Revenue fell 12%. Organic revenue, which excludes the effects of currency translation, was up 19%.
Now on our last call, we projected a full year segment margin rate of 5.5% to 6%, and we came in at 6.1%. So it was a good quarter, and we are particularly encouraged