The Brink's Company (NYSE:BCO) Q1 2018 Earnings Conference Call - Final Transcript

Apr 25, 2018 • 08:30 am ET


The Brink's Company (NYSE:BCO) Q1 2018 Earnings Conference Call - Final Transcript


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Welcome to the Brink's Company's First Quarter 2018 Earnings Call. Brink's issued a press release on first 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 [Operator Instructions].

Now for the company's Safe Harbor statements. This call and the Q&A session will contain forward-looking statements. Actual results could differ materially from projected or estimated results. Information regarding factors that could cause such differences is available in today's press release and in the company's most recent SEC filings. Information presented and discussed on this call is representative as of today only. Brink's assumes no obligation to update any forward-looking statements.

The call is copyrighted and may not be used without written permission from Brink's. It is now my pleasure to introduce your host, Ed Cunningham, Vice President of Investor Relations and Corporate Communications. Mr. Cunningham, you may begin.

Ed Cunningham

Thank you, Andrew. 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. Non-GAAP results exclude certain retirement expenses, reorganization and restructuring costs, and certain items related to acquisitions, dispositions and tax-related adjustments. 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 currency devaluations and the difficulties we face 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 were provided in the press release, in the appendix to the slides we're using today and in this morning's 8-K filing, all of which can be found on our website.

Finally, Page 2 of the press release provides the details behind our 2018 guidance including revenue, operating profit, corporate expense, non-controlling interest, income taxes and adjusted EBITDA.

I'll now turn the call over to Doug.

Doug Pertz

Thanks, Ed. Good morning, everyone. Today, we reported strong first quarter results including revenue growth of 15% and operating profit growth of 34%. These results meet or exceed our strategic plan targets and support our 2018 guidance. The fact that our operating income growth is more than double our revenue growth demonstrates our commitment to driving operating leverage throughout our global markets.

Based on first quarter results and our results over the last year, it's clear that our strategy to drive profitable growth both organically and through acquisition is working. And we continue to have great opportunities to build on the momentum we've already achieved. I'll start this morning with a review of our first quarter results, summarize progress on our strategy and review our full year guidance. Both Ron and I will discuss how we expect