Brink’s Announces $50 Million Accelerated Share Repurchase

Rhea-AI Summary

The Brink's Company (NYSE: BCO) has announced a $50 million accelerated share repurchase (ASR) agreement with J.P. Morgan Chase Bank. This transaction is part of a broader $250 million share repurchase authorization, temporarily paused due to pandemic uncertainties. President Doug Pertz emphasized the company's commitment to shareholder value and confidence in emerging stronger from the COVID-19 pandemic. The ASR is expected to acquire approximately 850,000 shares, and completion is projected by November 2, 2020. Brink's had about 51 million fully diluted shares outstanding as of June 30, 2020.

Positive

• Share repurchase of $50 million reflects confidence in long-term shareholder value.
• ASR demonstrates Brink's commitment to delivering near-term value to shareholders.
• Ongoing revenue recovery observed in the second quarter supports growth expectations.
• Acquisition of G4S nearing completion, expected to enhance overall business performance.

Negative

• None.

RICHMOND, Va., Aug. 26, 2020 (GLOBE NEWSWIRE) -- The Brink’s Company (NYSE:BCO), the global leader in total cash management, route-based secure logistics and payment solutions, today announced that it has entered into an accelerated share repurchase ("ASR") agreement with J.P. Morgan Chase Bank, N.A, to repurchase $50 million of the company’s common stock.  Brink’s will execute the ASR under the $250 million share repurchase authorization announced on February 6, 2020, which had been temporarily suspended due to uncertainties associated with the Covid-19 pandemic.

Doug Pertz, president and chief executive officer, said:  “The accelerated share repurchase demonstrates our commitment to delivering near-term value to our shareholders and our confidence that Brink’s will emerge from the Covid-19 pandemic stronger than it’s ever been.  This confidence is supported by ongoing internal cost reductions, the encouraging revenue recovery that we saw in the second quarter, and the continued execution of our strategy.  In addition, the G4S acquisition, which is approximately 80% complete, is performing well and is expected to be fully closed by the end of this year.  When the pandemic subsides, we expect to be well-positioned to resume revenue and profit growth, and to drive substantial shareholder value over the long term.” 

Under terms of the agreement, Brink’s will pay $50 million to J.P. Morgan and will receive approximately 850,000 shares based on market prices, representing approximately 80% of the total shares the company expects to repurchase under the ASR agreement.  Brink’s expects to receive additional shares representing the balance of 20% of the remaining shares under the ASR agreement by no later than November 2, when the ASR transaction is expected to be completed.  The final number of shares repurchased will be based on the average of the daily volume-weighted prices of Brink’s common stock during the term of the transaction, less a discount and subject to adjustments related to the terms and conditions of the ASR agreement.  As of June 30, 2020, Brink’s had approximately 51.0 million fully diluted shares outstanding.  Brink’s is funding the accelerated share repurchase with available cash. 

About The Brink’s Company

The Brink’s Company (NYSE:BCO) is the global leader in total cash management, secure route-based logistics and payment solutions including cash-in-transit, ATM services, cash management services (including vault outsourcing, money processing and intelligent safe services), and international transportation of valuables.  Our customers include financial institutions, retailers, government agencies, mints, jewelers and other commercial operations.  Our global network of operations in 49 countries serves customers in more than 100 countries.  For more information, please visit our website at www.Brinks.com or call 804-289-9709.

Forward-Looking Statements

This release contains forward-looking information. Words such as "anticipate," "assume," "estimate," "expect," “target” "project," "predict," "intend," "plan," "believe," "potential," "may," "should" and similar expressions may identify forward-looking information. Forward-looking information in these materials includes, but is not limited to: future results, including revenue and profit growth, and expected purchases under the accelerated share repurchase agreement.

Forward-looking information in this document is subject to known and unknown risks, uncertainties and contingencies, which are difficult to predict or quantify, and which could cause actual results, performance or achievements to differ materially from those that are anticipated. Forward-looking information in this document is subject to known and unknown risks, uncertainties and contingencies, which are difficult to predict or quantify, and which could cause actual results, performance or achievements to differ materially from those that are anticipated. These risks, uncertainties and contingencies, many of which are beyond our control, include, but are not limited to: our ability to improve profitability and execute further cost and operational improvement and efficiencies in our core businesses; our ability to improve service levels and quality in our core businesses; market volatility and commodity price fluctuations; seasonality, pricing and other competitive industry factors; investment in information technology (“IT”) and its impact on revenue and profit growth; our ability to maintain an effective IT infrastructure and safeguard confidential information; our ability to effectively develop and implement solutions for our customers; risks associated with operating in foreign countries, including changing political, labor and economic conditions, regulatory issues (including the imposition of international sanctions, including by the U.S. government), currency restrictions and devaluations, restrictions on and cost of repatriating earnings and capital, impact on the Company’s financial results as a result of jurisdictions determined to be highly inflationary, and restrictive government actions, including nationalization; labor issues, including negotiations with organized labor and work stoppages; pandemics (including the ongoing COVID-19 pandemic and related impact to and restrictions on the actions of businesses and consumers, including suppliers and customers), acts of terrorism, strikes or other extraordinary events that negatively affect global or regional cash commerce; anticipated cash needs in light of our current liquidity position and the impact of COVID-19 on our liquidity; the strength of the U.S. dollar relative to foreign currencies and foreign currency exchange rates; our ability to identify, evaluate and complete acquisitions and other strategic transactions and to successfully integrate acquired companies; costs related to dispositions and product or market exits; our ability to obtain appropriate insurance coverage, positions taken by insurers relative to claims and the financial condition of insurers; safety and security performance and loss experience; employee and environmental liabilities in connection with former coal operations, including black lung claims; the impact of the Patient Protection and Affordable Care Act on legacy liabilities and ongoing operations; funding requirements, accounting treatment, and investment performance of our pension plans, the VEBA and other employee benefits; changes to estimated liabilities and assets in actuarial assumptions; the nature of hedging relationships and counterparty risk; access to the capital and credit markets; our ability to realize deferred tax assets; the outcome of pending and future claims, litigation, and administrative proceedings; public perception of our business, reputation and brand; changes in estimates and assumptions underlying critical accounting policies; the promulgation and adoption of new accounting standards, new government regulations and interpretation of existing standards and regulations.

This list of risks, uncertainties and contingencies is not intended to be exhaustive. Additional factors that could cause our results to differ materially from those described in the forward-looking statements can be found under "Risk Factors" in Item 1A of our Annual Report on Form 10-K for the period ended December 31, 2019 and in our Quarterly Reports on Form 10-Q for the quarterly periods ended March 31, 2020 and June 30, 2020, and in our other public filings with the Securities and Exchange Commission. The forward-looking information included in this document is representative only as of the date of this document and The Brink's Company undertakes no obligation to update any information contained in this document.

Investor Relations
804.289.9709

FAQ

What is the recent share repurchase amount announced by Brink's (BCO)?

Brink's announced a $50 million accelerated share repurchase agreement.

What is the purpose of the accelerated share repurchase by Brink's (BCO)?

The ASR aims to deliver near-term value to shareholders and reflect confidence in the company's future.

When is the accelerated share repurchase expected to be completed?

The ASR transaction is expected to be completed by November 2, 2020.

How many shares is Brink's (BCO) expected to repurchase under the ASR?

Brink's expects to repurchase approximately 850,000 shares under the ASR agreement.

What share repurchase authorization was mentioned in Brink's (BCO) press release?

The recent ASR is part of a $250 million total share repurchase authorization.