The Brinks Company (BCO) swung to a net profit for the quarter ended Mar. 31, 2017. The company has made a net profit of $35 million, or $ 0.67 a share in the quarter, against a net loss of $3 million, or $0.06 a share in the last year period. On the other hand, adjusted net income for the quarter stood at $29 million, or $0.57 a share compared with $15 million or $0.31 a share, a year ago. Revenue during the quarter grew 9.14 percent to $788 million from $722 million in the previous year period. Total expenses were 90.99 percent of quarterly revenues, down from 96.68 percent for the same period last year. This has led to an improvement of 569 basis points in operating margin to 9.01 percent.
Operating income for the quarter was $71 million, compared with $24 million in the previous year period.
However, the adjusted operating income for the quarter stood at $53 million compared to $33 million in the prior year period.
Doug Pertz, president and chief executive officer, said: "Our first-quarter non-GAAP results include organic revenue growth of 7%, a 62% increase in operating profit and an 84% increase in earnings per share. These results reflect above-guidance organic revenue growth and strong profit growth in each of our three geographic segments. We’re especially pleased to report that our U.S. operations continued to improve and were an important contributor to the company’s overall revenue and profit growth in the quarter. Due to an improved tax rate, we raised our full-year non-GAAP EPS guidance by $.10 to a range between $2.55 and $2.65. Given the strong first-quarter results, we expect to be near the upper end of this range."
For financial year 2017, The Brinks Company forecasts revenue to be $3,100 million. It projects adjusted revenue to be $3,000 million. It projects net income from continuing operations to be in the range of $120 million to $125 million. It expects adjusted net income from continuing operations to be in the range of $131 million to $136 million. It forecasts operating income to be in the range of $253 million to $263 million. It forecasts adjusted operating income to be in the range of $235 million to $245 million. It expects diluted earnings per share from continuing operations to be in the range of $2.35 to $2.45. It expects diluted earnings per share from continuing operations to be in the range of $2.55 to $2.65 on adjusted basis for the same period.
Operating cash flow turns positive
The Brinks Company has generated cash of $26.90 million from operating activities during the quarter as against cash outgo of $37.80 million in the last year period. The company has spent $49.20 million cash to meet investing activities during the quarter as against cash outgo of $24.10 million in the last year period.
Cash flow from financing activities was $51.30 million for the quarter, up 5.77 percent or $2.80 million, when compared with the last year period.
Cash and cash equivalents stood at $218.70 million as on Mar. 31, 2017, up 17.08 percent or $31.90 million from $186.80 million on Mar. 31, 2016.
Debt moves up
The Brinks Company has witnessed an increase in total debt over the last one year. It stood at $528.40 million as on Mar. 31, 2017, up 6.83 percent or $33.80 million from $494.60 million on Mar. 31, 2016. Total debt was 24.43 percent of total assets as on Mar. 31, 2017, compared with 24.86 percent on Mar. 31, 2016. Debt to equity ratio was at 1.25 as on Mar. 31, 2017, down from 1.41 as on Mar. 31, 2016. Interest coverage ratio deteriorated to 14.20 for the quarter from 4.80 for the same period last year.
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