The Brink's Company (NYSE:BCO) Q3 2017 Earnings Conference Call Transcript
Oct 25, 2017 • 08:30 am ET
Welcome to The Brink's Company's Third Quarter 2017 Earnings Call. Brink's issued a press release on third 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 on the phone, the release and the slides are available on the Company's website at brinks.com.
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, Keith. Good morning, everyone. Joining me today are CEO, Doug Pertz, and CFO, Ron Domanico.
This morning, we reported results on both the GAAP and non-GAAP basis. The non-GAAP results exclude certain retirement expenses, reorganization and restructuring costs, certain items related to acquisitions, dispositions, tax-related adjustments and the recent debt refinancing.
On September 29, we filed an 8-K summarizing changes in non-GAAP reporting to exclude acquisition-related intangible amortization expense. Current and prior year results, as well as our guidance have been adjusted accordingly. In addition to these items our non-GAAP results exclude Venezuela due to a variety of factors including our inability to repatriate cash, Venezuela's fixed exchange rate policies, and continued currency devaluations, and the difficulties we face in operating in a highly inflationary economy.
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 primarily on non-GAAP results. Reconciliations of non-GAAP to GAAP results are in the press release and the appendix to the slides we're using today, in this morning's 8-K filing, and on our website. Page 2 of the press release provides a summary of our 2017 guidance.
Once again, please note the current and prior-year financials have been adjusted to more closely align with how and many of our investors analyze performance and are consistent with the metrics used in our new debt agreements. Today, we updated our July 26 guidance to reflect the changes in our reporting and to include higher interest expense in the fourth quarter related to recent borrowings. The result is slightly higher 2017 guidance that Doug will review in a few minutes.
Specifically, the following guidance-related items have been updated. Operating profit increased by $10 million to reflect the exclusion of acquisition-related intangible amortization expense. Adjusted EBITDA also increased by $10 million to reflect the exclusion of share-based compensation expense and lower forecasted depreciation, and non-operating expense increased by $5 million to reflect the additional interest expense on our recent borrowings.
I'll now turn the call over to Doug.
Thanks, Ed, and good morning, everyone. This morning we reported another strong quarter including revenue growth of 13% and a 21% increase in operating profit. These results were driven about equally by organic growth and acquisitions.
On an organic basis, revenue was up 6% in line with year-to-date organic growth. And organic operating profit increased