The Brink's Co (NYSE:BCO) Q2 2019 Earnings Conference Call Transcript

Jul 24, 2019 • 08:30 am ET

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The Brink's Co (NYSE:BCO) Q2 2019 Earnings Conference Call Transcript

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Presentation
Operator
Operator

Welcome to the Brink's Company's Second Quarter 2019 Earnings Call. Brink's issued a press release on second 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.

[Operator Instructions] A question-and-answer session will follow the formal presentation. [Operator Instructions] 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 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
Edward A. Cunningham

Thanks, Drew and good morning, everyone. Joining me today are CEO, Doug Pertz and CFO, Ron Domanico. This morning, we reported second quarter results on both a 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 matters.

We are also providing analysis of our results on a constant currency basis, which 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, 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 and good morning, everyone. Today, we again, announced strong second quarter results, including reported revenue growth of 11% and operating profit growth of 17% that easily offset the expected impact of negative currency translation, most of which was in Argentina.

In constant currency, revenue was up 20% and operating profit was up 41%. We also achieved 8% organic revenue growth above our average of approximately 7% over the last two years. And we achieved strong growth in adjusted EBITDA and earnings per share, both on a reported and a constant currency basis. The improved results for the quarter were led by continued momentum in the US, where profits more than doubled and in Mexico, which delivered