The following is a summary of the The Brink's Company (BCO) Q4 2023 Earnings Call Transcript:
Financial Performance:
In Q4 2023, Brink's posted a total growth of 5%, driven by a 17% increase in AMS and DRS revenue.
They reported an operating profit of $190 million with a margin of 15.2%, and adjusted EBITDA was $252 million (a margin of 20.2%).
The company's EPS saw a 31% increase to $2.76 per share, and the full-year EPS was $7.35 per share.
Free cash flow saw a significant increase of 36% from last year, and the FY 2023 revenue showed a 9% organic growth, in line with expectations.
Brink's lowered their financial leverage to 2.9 times, with aims to keep it between 2 and 3 times.
Business Progress:
Brink's expanded their AMS and DRS contributions, which accounted for 21% of total revenue by the end of 2023.
They project a mid-single digit revenue growth in 2024 and anticipate another year of double-digit growth in AMS and DRS.
Brink's expects the free cash flow to grow to between $415 million and $465 million in 2024, with an approximate 46% conversion at the midpoint.
The company continues to make strides towards development on their DRS and AMS platforms, aiming to close the cash ecosystem loop within retail stores and improving efficiency for both consumers and corporations.
Brink's has a robust M&A pipeline targeting the AMS and DRS space, with a focus on deals bringing attractive returns and a strong strategic fit within their capital allocation framework.
More details: The Brink's IR
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