The Brink's Company (NYSE:BCO) Q1 2019 Earnings Conference Call Transcript

Apr 24, 2019 • 08:30 am ET

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The Brink's Company (NYSE:BCO) Q1 2019 Earnings Conference Call Transcript

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Presentation
Operator
Operator

Welcome to the Brink's Company's First Quarter 2019 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 brinks.com. At this time, all participants are in a listen-only mode. A question-and-answer session will follow the formal presentation. As a reminder, this conference Is being recorded.

Now for the Company's Safe Harbor statement. This call and the Q&A session will contain forward-looking statements. Actual results could differ materially from the 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.

Executive
Ed Cunningham

Thanks. Denise, and good morning, everyone. Joining me today are CEO, Doug Pertz; and CFO, Ron Domanico. This morning, we reported first quarter results on both GAAP and non-GAAP basis. The non-GAAP results exclude a number of items, including our Venezuela operations, the impact of Argentina's highly inflationary accounting, reorganization and restructuring costs, items related to acquisitions and dispositions, and costs related to certain accounting compliance modes.

We are also providing our results on a constant currency basis, which just eliminates changes in foreign currency exchange rates from the prior year. 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 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, please note that the Page 3 of the press release provides the details behind our 2019 guidance including revenue, operating profit, non-controlling interest, income taxes, and adjusted EBITDA.

I'll now turn the call over to Doug.

Executive
Douglas A. Pertz

Thanks, Ed. Good morning everyone and thanks for joining us. Today, we reported strong first quarter results, including a 19% increase in non-GAAP operating profit. These results were heavily driven by continued profit momentum in the US and Mexico, easily offsetting the $10 million profit decline that we expected in Argentina due to currency translation.

In constant currency, operating profit and EPS were up 50% and 59% respectively. First quarter results support our full-year guidance, which targets operating profit growth of 20%, despite the expected persistence of currency headwinds. Our full-year guidance also includes approximately $20 million to $30 million of increased operating expenses to support our new strategic