Brink(BCO) - 2024 Q4 - Annual Results

Revenue and Growth - Brink's reported record revenue of $5,012 million for 2024, representing a 3$5,012 million, a 2.8% increase from $4,875 million in 2023[22] - In 2023, total revenues reached$4,874.6 million, with a projected increase to $5,011.9 million in 2024, representing a growth of approximately 2.8$1,650 million in 2024, while Latin America saw a decrease of 2% to $1,311 million[22] - Latin America revenues decreased from$1,332.3 million in 2023 to a projected $1,311.0 million in 2024, a decline of about 1.6$1,136.8 million in 2023 to $1,227.4 million in 2024, indicating an increase of approximately 8.0$453 million, a 7% increase, with an operating margin of 9.0%[3] - Operating profit for the full year 2024 is projected at $453 million, a 6.6$425 million in 2023[22] - Brink's achieved a net income of $163 million for the full year, an 86$912 million, a 5% increase[3] - Net income for the twelve months ended December 31, 2024, is projected to be $174.7 million, up from$98.3 million in 2023, representing a 77.5% increase[18] - The adjusted EBITDA for 2023 reached $706.5 million, with a notable increase to$784.3 million in 2024, representing a growth of approximately 11%[58] Cash Flow and Investments - The company generated strong cash flow, with cash from operations of $426 million and free cash flow of$400 million in 2024[1] - Operating cash flow decreased to $426.0 million in 2024 from$702.4 million in 2023, a decline of 39.2%[18] - The company reported a net cash used in investing activities of $216.2 million for 2024, compared to$179.8 million in 2023, indicating increased investment activity[18] - Share repurchases are projected to increase from $169.9 million in 2023 to$203.6 million in 2024, reflecting a commitment to returning value to shareholders[18] Future Outlook - For 2025, Brink's expects organic revenue growth in the mid-single digits and mid to high teens for AMS/DRS[12] - The company anticipates adjusted EBITDA margin expansion of 30-50 basis points and free cash flow conversion of 40-45% in 2025[12] Charges and Compliance - Brink's recorded a charge of $38 million in Q4 2024 related to resolutions with DOJ and FinCEN, impacting EPS by$0.86[8] - The company accrued $45.7 million in connection with DOJ and FinCEN investigations in 2024, primarily related to compliance issues[43] - The company recognized$86.8 million in pretax charges related to highly inflationary accounting in Argentina for 2023, with a decrease to $35.0 million in 2024[41] Capital Expenditures - Capital expenditures are expected to rise from$202.7 million in 2023 to $222.5 million in 2024, an increase of 9$202.7 million, with an increase expected to $222.5 million in 2024, reflecting ongoing investment in growth initiatives[63] Non-GAAP and GAAP Results - Non-GAAP operating profit for 2023 was$473.8 million, with a non-GAAP operating profit margin of 24.8%[56] - The non-GAAP results for 2024 are projected to be $435.2 million in operating profit, with a margin of 23.2$86.0 million for 2023, while non-GAAP income was $344.6 million, indicating a significant improvement[58] - The effective non-GAAP tax rate was 24.8$28.4 million to adjusted EBITDA in 2023, highlighting ongoing strategic efforts[58] - The company is focused on market expansion and acquisitions, with a total of $70.6 million in non-GAAP adjustments related to acquisitions and dispositions in 2023[58]