Benzinga | Dec 15, 2021 07:12AM EST

Brink's Announces Three-Year Strategic Plan And Financial Targets; Sees 2024 Revenue $5.3B-$5.5B, Reaffirms FY21 Targets

Digital Cash Payment Solutions Add New Layer of Growth



2024 Targets Include Annual Organic Revenue Growth of 7%, Adjusted EBITDA of $1 Billion

Management Affirms 2021 Guidance and 2022 Targets

RICHMOND, Va., Dec. 15, 2021 (GLOBE NEWSWIRE) -- The Brink's Company (NYSE:BCO), the global leader in total cash management, route-based secure logistics and payment solutions, disclosed its three-year strategic plan and 2024 financial targets in connection with its Investor Day event, which is being webcast today at 8:30 a.m. ET. The introduction of the company's new digital cash payment solutions is a major focus of today's investor presentation.

Doug Pertz, chief executive officer, said: "Brink's is evolving from a route-based logistics company with growing organic revenue and expanding margins into a key player in the broader payments ecosystem-- with a focus on digital cash payment solutions. Our vision is to disrupt the cash management industry by offering a step change in value to a large addressable market of retailers that are currently underserved, or not served at all, by our industry.

"While cash usage accounts for approximately two-thirds of global consumer transactions, it's clear that the payments ecosystem is changing, and we're changing with it. Our digital solutions enable us to accelerate revenue and profit growth while continuing to play a critical role in facilitating economic inclusion, especially for vulnerable populations around the world that depend on cash."

Pertz added: "We plan to achieve our 2024 financial targets by executing on two strategies. Strategy 1.0 is all about operational excellence, and is a continuation and expansion of the organic initiatives that made our first three-year strategic plan so successful, including revenue growth of 27% and operating profit growth of 81% from 2017 to 2019.

"Strategy 2.0 is focused on adding a new layer of high-margin growth by introducing digital cash payment solutions that enable retailers to process cash as easily as they process cards and other digital payments. Most retailers already have a digital solution to accept cards and other payments, but they don't have a digital solution to manage cash payments, which account for a significant portion of their transactions. We have that solution, and we believe it will change the way customers and investors look at Brink's. Our Strategy 2.0 digital solutions, including our growing ATM managed services business, give us a sustainable, first mover competitive advantage. We expect these solutions to add an incremental 10% of total revenue by 2024."

As part of its go-to-market strategy, the company is launching BLUbeem(tm) by Brink's(r), a new brand for its digital cash payment solutions. Through partnerships with digital payment providers, BLUbeem digital cash payment solutions will be integrated with non-cash digital solutions and point-of-sale (POS) systems to provide a single solution for cash, card and digital payments.

Financial Targets

Management expects annual organic revenue growth of at least 7% to add over $1 billion of new revenue over the next three years, resulting in 2024 revenue of $5.3 billion to $5.5 billion, non-GAAP operating profit of approximately $800 million, adjusted EBITDA of approximately $1 billion, and free cash flow of approximately $575 million. The company believes achieving these targets will deliver a total shareholder return of 20% or more annually.

Management affirmed 2021 guidance, with revenue in a range between $4.1 billion and $4.2 billion and adjusted EBITDA of approximately $660 million at the midpoint. Management also affirmed its 2022 target range for adjusted EBITDA of $785 million to $825 million. The company will provide more information regarding 2022 during today's investor presentation and when it releases fourth-quarter results in February 2022.