What changed in this filing

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Item 2. Management’s Discussion and Analysis

2022-10-26 compared with 2022-08-03 · 223 added, 200 removed, 716 unchanged (37% of the section changed)

17 unchanged sentences

Our CODM is our President and Chief Executive Officer.

We completed a leadership change with our President and Chief Executive Officer in the second quarter of 2022.

Our CODM evaluates performance and allocates resources to each operating segment based on an operating profit or loss measure, excluding income and expenses not allocated to segments.

9 unchanged sentences

COVID-19 Pandemic Impact

We continue to monitor developments related to the ongoing coronavirus (COVID-19) pandemic, including with respect to new variants of the COVID-19 virus, which has created global volatility, uncertainty and economic disruption for Brink's, our customers and vendors, and the markets in which we do business.

We continue to monitor developments related to the ongoing coronavirus (COVID-19) pandemic, which has created global volatility, uncertainty and economic disruption for Brink's, our customers and vendors, and the markets in which we do business.

We have taken and continue to take steps to mitigate the potential risks to our employees, our customers and our business around the world.

27 unchanged sentences

See definitions on page 40.

Ended June 30, % Six Months

Ended June 30, %

Ended September 30, % Nine Months

Ended September 30, %

(In millions, except for per share amounts) 2022 2021 Change 2022 2021 Change

16 unchanged sentences

Analysis of Consolidated Results:

Second Quarter 2022 versus Second Quarter 2021

Consolidated Revenues Revenues increased $85.1 million due to organic increases in Latin America ($44.0 million), North America ($43.5 million), Europe ($24.6 million), and Rest of World ($22.5 million) and the favorable impact of acquisitions ($4.4 million), partially offset by the unfavorable impact of currency exchange rates ($53.9 million).

Third Quarter 2022 versus Third Quarter 2021

Consolidated Revenues Revenues increased $61.2 million due to organic increases in Rest of World ($45.4 million), Latin America ($40.6 million), North America ($38.4 million), and Europe ($18.4 million) and the favorable impact of acquisitions ($3.5 million), partially offset by the unfavorable impact of currency exchange rates ($85.1 million).

The unfavorable currency impact was driven primarily by the euro and the Argentine peso.

1 unchanged sentence

See above for our definition of “organic growth.”

Consolidated Costs and Expenses Cost of revenues increased 6% to $ 867.5 million primarily due to higher labor and other operational costs driven by volume recovery and wage increases in the U.S., partially offset by the impact of currency exchange rates, lower costs related to restructuring actions, and the impact of acquisitions, including integration costs.

Selling, general and administrative costs increased 8% to $ 167.5 million primarily due to organic increases in labor and other administrative costs, partially offset by the impact of currency exchange rates, lower costs related to restructuring actions, and due to the impact of acquisitions, including integration costs.

Consolidated Operating Profit Operating profit increased $23.2 million due mainly to:

• organic increases in Latin America ($12.2 million), Rest of World ($9.9 million), and Europe ($6.4 million),

• lower costs incurred related to reorganization and restructuring ($12.4 million) included in "Other items not allocated to segments",

• lower costs related to business acquisitions and dispositions ($4.9 million), including the impact of acquisition-related charges and intangible asset amortization in 2022, included in "Other items not allocated to segments", and

• the favorable operating impact of business acquisitions ($0.8 million), excluding intangible amortization and acquisition-related charges,

partially offset by:

• unfavorable changes in currency exchange rates ($12.3 million), driven by the Argentine peso and the euro,

• an organic decrease in North America ($7.5 million), and

Consolidated Costs and Expenses Cost of revenues increased 5% to $ 880.7 million primarily due to higher labor and other operational costs, driven by volume and wage increases, and the impact of acquisitions, partially offset by the impact of currency exchange rates.

Selling, general and administrative costs increased 12% to $ 180.8 million primarily due to organic increases in labor and other administrative costs and increased restructuring costs, partially offset a charge in the third quarter of 2021 related to a potential fine for a Chile antitrust matter and the impact of currency exchange rates.

Consolidated Operating Profit Operating profit decreased $14.7 million due mainly to:

• higher corporate expenses on an organic basis ($21.0 million),

Consolidated Income from Continuing Operations Attributable to Brink’s and Related Per Share Amounts Income from continuing operations attributable to Brink’s shareholders increased $11.2 million to $35.2 million due to the increase in operating profit mentioned above, partially offset by higher income tax expense ($6.6 million), higher interest expense ($4.2 million), and lower interest and other non-operating income ($1.2 million).

Earnings per share from continuing operations was $0.73, up from $0.47 in the second quarter of 2021.

• higher costs related to business acquisitions and dispositions ($19.7 million), including the impact of acquisition-related charges and intangible asset amortization in 2022, included in "Other items not allocated to segments",

• unfavorable changes in currency exchange rates ($22.8 million), driven by the Argentine peso and the euro, and

• higher costs incurred related to reorganization and restructuring ($5.6 million) included in "Other items not allocated to segments,"

partially offset by:

• organic increases in Rest of World ($20.3 million), North America ($12.7 million), Latin America ($11.9 million), and Europe ($2.1 million),

• lower costs related to the estimated loss of a potential fine for a Chile antitrust matter ($9.2 million) included in "Other items not allocated to segments", and

• the favorable operating impact of business acquisitions ($0.6 million), excluding intangible amortization and acquisition-related charges.

Consolidated Income from Continuing Operations Attributable to Brink’s and Related Per Share Amounts Income from continuing operations attributable to Brink’s shareholders increased $0.2 million to $19.2 million due to lower income tax expense ($14.4 million), higher interest and other non-operating income ($7.0 million), and lower non-controlling interest ($0.6 million), mostly offset by the decrease in operating profit mentioned above and higher interest expense ($7.1 million).

Earnings per share from continuing operations was $0.41, up from $0.38 in the third quarter of 2021.

Analysis of Consolidated Results:

First Half 2022 versus First Half 2021

Consolidated Revenues Revenues increased $181.4 million due to organic increases in Latin America ($76.6 million), North America ($62.0 million), Europe ($47.1 million), and Rest of World ($36.2 million) and the favorable impact of acquisitions ($46.8 million), partially offset by the unfavorable impact of currency exchange rates ($87.3 million).

Nine Months 2022 versus Nine Months 2021

Consolidated Revenues Revenues increased $242.6 million due to organic increases in Latin America ($117.2 million), North America ($100.4 million), Rest of World ($81.6 million), and Europe ($65.5 million) and the favorable impact of acquisitions ($50.3 million), partially offset by the unfavorable impact of currency exchange rates ($172.4 million).

The unfavorable currency impact was driven primarily by the euro and the Argentine peso.

1 unchanged sentence

See above for our definition of “organic growth.”

Consolidated Costs and Expenses Cost of revenues increased 8% to $ 1,707.2 million primarily due to higher labor and other operational costs driven by volume recovery and wage increases in the U.S., and the impact of acquisitions, partially offset by the impact of currency exchange rates and lower costs related to restructuring actions.

Selling, general and administrative costs increased 9% to $ 339.1 million primarily due to the unfavorable impact of a change in allowance estimate ($16.7 million) recorded in the first-quarter 2022 due to a modification in our methodology to estimate the allowance for doubtful accounts, organic increases in labor and other administrative costs, partially offset by the impact of currency exchange rates.

Consolidated Costs and Expenses Cost of revenues increased 7% to $ 2,587.9 million primarily due to higher labor and other operational costs, driven by volume and wage increases, and the impact of acquisitions, partially offset by the impact of currency exchange rates.

Selling, general and administrative costs increased 10% to $ 519.9 million primarily due to organic increases in labor and other administrative costs, the unfavorable impact of a change in allowance estimate ($16.7 million) recorded in the first-quarter 2022 due to a modification in our methodology to estimate the allowance for doubtful accounts, and increased restructuring costs, partially offset by the impact of currency exchange rates.

Consolidated Operating Profit Operating profit increased $9.2 million due mainly to:

• organic increases in Latin America ($20.7 million), Rest of World ($12.4 million), and Europe ($11.5 million),

• lower corporate expenses on an organic basis ($14.4 million),

• lower costs related to business acquisitions and dispositions ($8.4 million), including the impact of acquisition-related charges and intangible asset amortization in 2022, included in "Other items not allocated to segments",

• favorable operating impact of business acquisitions ($7.7 million), excluding intangible amortization and acquisition-related charges, and

• lower costs incurred related to reorganization and restructuring ($7.3 million) included in "Other items not allocated to segments".

• organic increases in Rest of World ($32.7 million), Latin America ($32.6 million), and Europe ($13.6 million),

• lower costs related to the estimated loss of a potential fine for a Chile antitrust matter ($8.4 million) included in "Other items not allocated to segments", and

• favorable operating impact of business acquisitions ($8.3 million), excluding intangible amortization and acquisition-related charges,

partially offset by:

• an organic decrease in North America ($21.2 million),

• unfavorable changes in currency exchange rates ($17.9 million), driven by the Argentine peso and the euro, and

• unfavorable impact of a change in allowance estimate ($16.7 million) recorded in the first-quarter 2022 due to a modification in our methodology to estimate the allowance for doubtful accounts, included in "Other items not allocated to segments".

Consolidated Income from Continuing Operations Attributable to Brink’s and Related Per Share Amounts Income from continuing operations attributable to Brink’s shareholders increased $69.9 million to $106.6 million due to lower income tax expense ($48.1 million), the increase in operating profit mentioned above and higher interest and other non-operating income ($3.0 million), slightly offset by higher interest expense ($4.9 million) and higher non-controlling interest ($0.2 million).

Earnings per share from continuing operations was $2.22, up from $0.73 in the first half of 2021.

• unfavorable changes in currency exchange rates ($40.7 million), driven by the Argentine peso and the euro,

• the unfavorable impact of a change in allowance estimate ($16.7 million) recorded in the first-quarter 2022 due to a modification in our methodology to estimate the allowance for doubtful accounts included in "Other items not allocated to segments,"

• higher costs related to business acquisitions and dispositions ($11.3 million), including the impact of acquisition-related charges and intangible asset amortization in 2022, included in "Other items not allocated to segments",

• an organic decrease in North America ($8.5 million), and

• higher corporate expenses on an organic basis ($6.6 million).

Consolidated Income from Continuing Operations Attributable to Brink’s and Related Per Share Amounts Income from continuing operations attributable to Brink’s shareholders increased $70.1 million to $125.8 million due to lower income tax expense ($62.5 million), higher interest and other non-operating income ($10.0 million), the increase in operating profit mentioned above, and lower non-controlling interest ($0.4 million), partially offset by higher interest expense ($12.0 million).

Earnings per share from continuing operations was $2.63, up from $1.11 in the first nine months of 2021.

Non-GAAP Basis

Analysis of Consolidated Results:

Second Quarter 2022 versus Second Quarter 2021

Non-GAAP Consolidated Revenues Non-GAAP revenues increased $85.1 million due to organic increases in Latin America ($44.0 million), North America ($43.5 million), Europe ($24.6 million), and Rest of World ($22.5 million) and the favorable impact of acquisitions ($4.4 million), partially offset by the unfavorable impact of currency exchange rates ($53.9 million).

Third Quarter 2022 versus Third Quarter 2021

Non-GAAP Consolidated Revenues Non-GAAP revenues increased $61.2 million due to organic increases in Rest of World ($45.4 million) Latin America ($40.6 million), North America ($38.4 million), and Europe ($18.4 million), and the favorable impact of acquisitions ($3.5 million), partially offset by the unfavorable impact of currency exchange rates ($85.1 million).

The unfavorable currency impact was driven primarily by the euro and the Argentine peso.

2 unchanged sentences

Non-GAAP Consolidated Operating Profit Non-GAAP operating profit increased $10.9 million due mainly to:

• organic increases in Latin America ($12.2 million), Rest of World ($9.9 million), and Europe ($6.4 million) and

• organic increases in Rest of World ($20.3 million), North America ($12.7 million), Latin America ($11.9 million), and Europe ($2.1 million) and

• the favorable operating impact of business acquisitions ($0.6 million), excluding intangible amortization and acquisition-related charges,

partially offset by:

• an organic decrease in North America ($7.5 million),

• unfavorable changes in currency exchange rates ($6.4 million), driven primarily by the Argentine peso and the euro and

• higher corporate expenses on an organic basis ($2.0 million).

Non-GAAP Consolidated Income from Continuing Operations Attributable to Brink’s and Related Per Share Amounts Non-GAAP income from continuing operations attributable to Brink’s shareholders increased $3.7 million to $61.8 million due to the operating profit increase mentioned above and lower non-controlling interest ($0.5 million), partially offset by lower interest and other non-operating income ($5.7 million), higher interest expense ($4.4 million), and higher income tax expense ($0.1 million).

Earnings per share from continuing operations was $1.29, up from $1.15 in the second quarter of 2021.

• higher corporate expenses on an organic basis ($21.0 million) and

• unfavorable changes in currency exchange rates ($15.7 million), driven primarily by the Argentine peso and the euro.

Non-GAAP Consolidated Income from Continuing Operations Attributable to Brink’s and Related Per Share Amounts Non-GAAP income from continuing operations attributable to Brink’s shareholders increased $6.7 million to $63.8 million due to the operating profit increase mentioned above, higher interest and other non-operating income ($3.3 million), and lower non-controlling interest ($0.5 million), partially offset by higher interest expense ($7.1 million) and higher income tax expense ($0.9 million).

Earnings per share from continuing operations was $1.34, up from $1.14 in the third quarter of 2021.

Analysis of Consolidated Results:

First Half 2022 versus First Half 2021

Non-GAAP Consolidated Revenues Non-GAAP revenues increased $181.4 million due to organic increases in Latin America ($76.6 million), North America ($62.0 million), Europe ($47.1 million), and Rest of World ($36.2 million) and the favorable impact of acquisitions ($46.8 million), partially offset by the unfavorable impact of currency exchange rates ($87.3 million).

Nine Months 2022 versus Nine Months 2021

Non-GAAP Consolidated Revenues Non-GAAP revenues increased $242.6 million due to organic increases in Latin America ($117.2 million), North America ($100.4 million), Rest of World ($81.6 million), and Europe ($65.5 million) and the favorable impact of acquisitions ($50.3 million), partially offset by the unfavorable impact of currency exchange rates ($172.4 million).

The unfavorable currency impact was driven primarily by the euro and the Argentine peso.

2 unchanged sentences

Non-GAAP Consolidated Operating Profit Non-GAAP operating profit increased $46.3 million due mainly to:

• organic increases in Latin America ($20.7 million), Rest of World ($12.4 million), and Europe ($11.5 million),

• lower corporate expenses on an organic basis ($14.4 million), and

• organic increases in Rest of World ($32.7 million), Latin America ($32.6 million), and Europe ($13.6 million) and

• the favorable operating impact of business acquisitions ($8.3 million), excluding intangible amortization and acquisition-related charges,

partially offset by:

• an organic decrease in North America ($21.2 million) and

• unfavorable changes in currency exchange rates ($25.8 million), driven primarily by the Argentine peso and the euro,

Non-GAAP Consolidated Income from Continuing Operations Attributable to Brink’s and Related Per Share Amounts Non-GAAP income from continuing operations attributable to Brink’s shareholders increased $19.1 million to $117.3 million due to the operating profit increase mentioned above and lower non-controlling interest ($0.3 million), partially offset by higher income tax expense ($6.5 million), lower interest and other non-operating income ($5.1 million), and higher interest expense ($5.0 million).

Earnings per share from continuing operations was $2.44, up from $1.94 in the first half of 2021.

• an organic decrease in North America ($8.5 million), and

• higher corporate expenses on an organic basis ($6.6 million).

Non-GAAP Consolidated Income from Continuing Operations Attributable to Brink’s and Related Per Share Amounts Non-GAAP income from continuing operations attributable to Brink’s shareholders increased $26.5 million to $181.8 million due to the operating profit increase mentioned above and lower non-controlling interest ($0.8 million), partially offset by higher interest expense ($12.1 million), higher income tax expense ($6.7 million), and lower interest and other non-operating income ($1.8 million).

Earnings per share from continuing operations was $3.80, up from $3.08 in the first nine months of 2021.

Revenues and Operating Profit by Segment:

Second Quarter 2022 versus Second Quarter 2021

Third Quarter 2022 versus Third Quarter 2021

Organic Acquisitions / % Change

33 unchanged sentences

Analysis of Segment Results:

Second Quarter 2022 versus Second Quarter 2021

Third Quarter 2022 versus Third Quarter 2021

North America

1 unchanged sentence

Organic revenue increased primarily due to price increases in the U.S.

Operating profit decreased $7.0 million, primarily due to a 18% organic decrease ($7.5 million), partially offset by the favorable impact of acquisitions ($0.5 million).

The organic decrease resulted primarily from several prior year one-time adjustments related to various insurance-related costs and bad-debt reversals in the U.S., and lower government COVID-19 assistance in Canada.

The decrease was partially offset by price increases which outpaced the impact of labor and other cost increases.

Operating profit increased $13.2 million, primarily due to a 51% organic increase ($12.7 million) and the favorable impact of acquisitions ($0.5 million).

The organic increase resulted primarily from price increases, which outpaced the impact of labor and other cost increases, and lower losses.

The increase was partially offset by several adjustments related to legal settlements and various insurance-related costs in the U.S.

Latin America

Revenues increased 12% ($33.5 million) primarily due to a 16% organic increase ($44.0 million) and the favorable impact of acquisitions ($1.0 million), partially offset by the unfavorable impact of currency exchange rates ($11.5 million), primarily from the Argentine peso and partially offset by the Brazilian real.

The organic increase was primarily driven by inflation-based price increases in Argentina, as well as organic growth in Mexico from price increases and volume growth versus prior year period results which were more impacted by the COVID-19 pandemic.

Revenues increased 4% ($11.8 million) primarily due to a 14% organic increase ($40.6 million) and the favorable impact of acquisitions ($0.6 million), partially offset by the unfavorable impact of currency exchange rates ($29.4 million), primarily from the Argentine, Colombian, and Chilean peso.

The organic increase was primarily driven by inflation-based price increases in Argentina and Mexico.

Operating profit was up 3% ($1.9 million) primarily due to a 18% organic increase ($11.9 million) and the favorable impact of acquisitions ($0.1 million), partially offset by the unfavorable impact of currency exchange rates ($10.1 million).

The organic profit increase was driven by volume growth in Argentina and Mexico as well as the benefit of labor and other operational cost saving actions, which includes those taken in response to the COVID-19 pandemic.

The organic profit increase was driven by inflation-based price increases in Argentina and the benefit of labor and other operational cost saving actions throughout the segment.

The increase was partially offset by the impact of a $4.5 million non-income tax credit experienced by Brazil in the third quarter of 2021.

Our Brazil operations received a favorable court decision related to non-income taxes paid in prior years and will be able to recover the overpayments, plus interest, by reducing payments on future tax obligations.

Revenues decreased 8% ($18.0 million) due to the unfavorable impact of currency exchange rates ($36.7 million), partially offset by a 8% organic increase ($18.4 million) and the favorable impact of acquisitions ($0.3 million).

The unfavorable currency impact was driven by the euro.

The organic increase was primarily due to organic volume growth in France, including the impact of the partial implementation of an ATM managed services contract for a large customer, and across the segment.

Operating profit increased $3.7 million to $22.4 million primarily due to a 34% organic increase ($6.4 million) and the favorable impact of acquisitions ($0.2 million), partially offset by the unfavorable impact of currency exchange rates ($2.9 million).

The organic increase was primarily driven by volume growth and the impact of labor and other operational cost saving actions in France and throughout the segment, including those taken in response to the COVID-19 pandemic.

This growth was partially offset by lower government COVID-19 assistance in several countries.

Operating profit decreased $2.2 million to $25.9 million primarily due to the unfavorable impact of currency exchange rates ($4.3 million), partially offset by a 7% organic increase ($2.1 million).

The organic increase was primarily driven by the impact of labor and other operational cost saving actions throughout the segment.

and was partially offset by lower government COVID-19 assistance in several countries.

Rest of World

Revenues increased 6% ($10.9 million) due to an 12% organic increase ($22.5 million), partially offset by the unfavorable impact of currency exchange rates ($11.6 million).

Revenues increased 15% ($27.5 million) due to a 24% organic increase ($45.4 million), partially offset by the unfavorable impact of currency exchange rates ($17.9 million).

The organic increase was primarily due to global services growth.

1 unchanged sentence

Operating profit increased $16.4 million due to a 64% organic increase ($20.3 million), partially offset by the unfavorable impact of currency exchange rates ($3.9 million).

The organic increase was primarily due to global services growth and the impact of labor and other operational cost saving actions, including those taken in response to COVID-19.

The organic increase was primarily due to global services growth, the impact of labor and other operational cost saving actions, and higher government COVID-19 assistance in Hong Kong.

Revenues and Operating Profit by Segment:

First Half 2022 versus First Half 2021

Nine Months 2022 versus Nine Months 2021

Organic Acquisitions / % Change

24 unchanged sentences

Analysis of Segment Results:

First Half 2022 versus First Half 2021

Nine Months 2022 versus Nine Months 2021

North America

2 unchanged sentences

Operating profit decreased $1.7 million, primarily due to a 9% organic decrease ($8.5 million) partially offset by the favorable impact of acquisitions ($6.8 million).

The organic decrease resulted primarily from several adjustments related to various insurance-related costs, legal settlements, and bad-debt reversals in the U.S., and lower government COVID-19 assistance in Canada.

The decrease was partially offset by price increases which outpaced the impact of labor and other cost increases.

10 unchanged sentences

aged receivables.

In the second quarter of 2022, the additional allowance was reduced by $0.4 million as a result of collections.

In the second quarter and in the third quarter of 2022, the additional allowance was reduced by $0.7 million as a result of collections.

However, as discussed in Note 1 this amount was recorded as part of "Other items not allocated to segments" and is not included in the North America segment results.

Latin America

Revenues increased 10% ($55.1 million) primarily due to a 14% organic increase ($76.6 million) and the favorable impact of acquisitions ($2.1 million), partially offset by the unfavorable impact of currency exchange rates ($23.6 million), primarily from the Argentine peso and partially offset by the Brazilian real.

The organic increase was driven by inflation-based price increases in Argentina, as well as organic growth in Mexico from price increases and volume growth versus prior year period results which were more impacted by the COVID-19 pandemic.

Revenues increased 8% ($66.9 million) primarily due to a 14% organic increase ($117.2 million) and the favorable impact of acquisitions ($2.7 million), partially offset by the unfavorable impact of currency exchange rates ($53.0 million), primarily from the Argentine, Colombian, and Chilean peso and partially offset by the Brazilian real.

The organic increase was driven by inflation-based price increases and volume growth in Argentina and Mexico.

Operating profit was up 8% ($13.8 million) primarily due to a 18% organic increase ($32.6 million) and the favorable impact of acquisitions ($0.3 million), partially offset by unfavorable currency ($19.1 million).

The organic increase was driven by volume growth in Argentina and Mexico as well as the benefit of labor and other operational cost saving actions, which includes those taken in response to the COVID-19 pandemic.

Revenues increased 1% ($3.6 million) due to a 11% organic increase ($47.1 million) and the favorable impact of acquisitions ($2.6 million), partially offset by the unfavorable impact of currency exchange rates ($46.1 million).

The organic increase was primarily due to organic growth in France, including the impact of the partial implementation of an ATM managed services contract for a large customer, and across the segment.

The organic increase was driven by inflation-based price increases which outpaced the impact of labor and other cost increases in Argentina and Mexico, as well as the benefit of labor and other operational cost saving actions throughout the segment.

Revenues decreased 2% ($14.4 million) due to the unfavorable impact of currency exchange rates ($82.8 million), partially offset by a 10% organic increase ($65.5 million) and the favorable impact of acquisitions ($2.9 million).

The unfavorable currency impact was driven by the euro.

Operating profit increased $5.7 million primarily due to an organic increase ($13.6 million) and the favorable impact of acquisitions ($0.4 million), partially offset by the unfavorable impact of currency exchange rates ($8.3 million).

The organic increase was primarily driven by volume growth and the impact of labor and other operational cost saving actions throughout the segment.

This growth was partially offset by lower government COVID-19 assistance in several countries.

4 unchanged sentences

Operating profit increased $26.7 million primarily due to a 35% organic increase ($32.7 million) and the favorable impact of acquisitions ($0.8 million), partially offset by the unfavorable impact of currency exchange rates ($6.8 million), driven by most currencies throughout the segment.

The organic increase was primarily due to global services growth and the impact of labor and other operational cost saving actions, including those taken in response to COVID-19.

The organic increase was primarily due to global services growth, the impact of labor and other operational cost saving actions and higher government COVID-19 assistance in Hong Kong.

Income and Expense Not Allocated to Segments

Corporate Expenses

Ended June 30, % Six Months

Ended June 30, %

Ended September 30, % Nine Months

Ended September 30, %

(In millions) 2022 2021 change 2022 2021 change

1 unchanged sentence

Foreign currency transaction gains (losses) 3.6 1.4 fav 9.4 1.4 fav

Reconciliation of segment policies to GAAP (0.2) 0.4 unfav 2.7 (11.5) fav

Reconciliation of segment policies to GAAP 1.3 (0.3) fav 4.0 (11.8) fav

Corporate expenses $ (52.1) (33.7) 55 $ (112.0) (113.8) (2)

Corporate expenses include corporate headquarters costs, regional management costs, currency transaction gains and losses, costs related to global initiatives and adjustments to reconcile segment accounting policies to U.S.

Corporate expenses for the first six months of 2022 decreased $20.2 million versus the prior year period primarily driven by lower bad debt expense ($13.9 million) included in Corporate expense as part of the reconciliation of segment accounting policies to U.S.

Corporate expenses for the first nine months of 2022 decreased $1.8 million versus the prior year period primarily driven by lower bad debt expense ($15.0 million) included in Corporate expense as part of the reconciliation of segment accounting policies to U.S.

GAAP (see further discussion of bad debt expense in the next paragraph below).

In addition, there were higher foreign currency transaction gains in the current year period ($5.8 million) and an increase in incentive compensation, including share-based and bonus accruals ($6.8 million).

These increased costs were offset by decreased expenses related to developing new service offerings ($5.9 million).

In addition, there were higher foreign currency transaction gains in the current year period ($8.0 million) and reduced expenses related to developing new service offerings ($2.7 million).

These lower costs were offset by an increase in incentive compensation, including share-based and bonus accruals ($23.3 million) as well as higher net charges related to insurance and security losses ($7.8 million).

Prior to the first quarter of 2021, all Brink’s business units followed an internal accounting policy for determining an allowance for doubtful accounts.

1 unchanged sentence

GAAP estimated consolidated allowance, with any differences reported as part of Corporate expense.

In the first six months of 2021, the Corporate reconciling adjustment was an increase of Corporate expense of $12.7 million.

In the first nine months of 2021, the Corporate reconciling adjustment was an increase of Corporate expense of $13.1 million.

The 2021 adjustment was primarily from a change in the first quarter of 2021 to the allowance calculation method of the North America segment’s U.S.

8 unchanged sentences

Other Items Not Allocated to Segments

Ended June 30, % Six Months

Ended June 30, %

Ended September 30, % Nine Months

Ended September 30, %

(In millions) 2022 2021 change 2022 2021 change

1 unchanged sentence

Reorganization and Restructuring $ (19.6) (14.0) 40 $ (34.0) (35.7) (5)

Acquisitions and dispositions (15.4) (20.5) (25) (30.6) (39.2) (22)

Acquisitions and dispositions (35.7) (16.6) unfav (66.3) (55.8) 19

Argentina highly inflationary impact (12.0) (2.3) unfav (27.1) (8.8) unfav

1 unchanged sentence

Chile antitrust matter

(0.8) — unfav (0.8) — unfav

(0.3) (9.5) (97) (1.1) (9.5) (88)

Internal loss — 0.7 (100) — 2.4 (100)

1 unchanged sentence

Reorganization and Restructuring

2022 Global Restructuring Plan

In the third quarter of 2022, management began a restructuring program across our global business operations.

The actions were taken to enable growth, reduce costs and related infrastructure, and to mitigate the potential impact of external economic conditions.

As a result of actions taken in the quarter, we recognized $17.5 million in the third quarter of 2022 under this restructuring, primarily severance costs.

When completed, the current restructuring actions are expected to reduce our workforce by 2,000 to 2,400 positions and result in annualized cost savings of $35 million to $45 million.For the restructuring actions that were approved as of September 30, 2022, we expect to incur additional costs between $6 million and $10 million in future periods, primarily severance costs.

Additional restructuring actions are expected to occur as part of this program as management continues to evaluate and identify improvement opportunities.

Other Restructurings

Management periodically implements restructuring actions in targeted sections of our business.

As a result of these actions, we recognized net costs of $21.7 million in the first six months of 2021, primarily severance costs.

We recognized $14.4 million net costs in the first six months of 2022, primarily severance costs.

As a result of these actions, we recognized net costs of $35.7 million in the first nine months of 2021, primarily severance costs.

We recognized $16.5 million net costs in the first nine months of 2022, primarily severance costs.

The majority of the costs from 2022 restructuring plans result from the exit of a line of business in a specific geography with most of the remaining costs due to management initiatives to address the COVID-19 pandemic.

4 unchanged sentences

Charges related to the employees, assets, leases and contracts impacted by these restructuring actions were excluded from the segments and corporate expenses as shown in the table below.

Three Months Ended June 30, % Six Months

Ended June 30, %

Three Months Ended September 30, % Nine Months

Ended September 30, %

(In millions) 2022 2021 change 2022 2021 change

1 unchanged sentence

North America $ (5.1) 0.4 unfav $ (12.6) 0.1 unfav

Latin America (2.4) (2.4) — (5.3) (3.4) 56

Latin America (8.2) (3.3) unfav (13.5) (6.7) unfav

Europe (5.3) (10.8) (51) (7.5) (26.5) (72)

1 unchanged sentence

Total reportable segments (19.6) (14.4) 36 (34.7) (36.1) (4)

Corporate items 0.7 — fav 0.7 — fav

Corporate items — 0.4 (100) 0.7 0.4 75

Total $ (19.6) (14.0) 40 $ (34.0) (35.7) (5)

2 unchanged sentences

2022 Acquisitions and Dispositions

• Amortization expense for acquisition-related intangible assets was $25.2 million in the first six months of 2022.

• We incurred $2.1 million in integration costs, primarily related to PAI and G4S, in the first six months of 2022.

• Transaction costs related to business acquisitions were $1.0 million in the first six months of 2022.

• Restructuring costs related to acquisitions were $0.1 million in the first six months of 2022.

• Compensation expense related to the retention of key PAI employees was $1.8 million in the first six months of 2022.

• Amortization expense for acquisition-related intangible assets was $37.4 million in the first nine months of 2022.

• We recognized $12.4 million in charges in Argentina in the first nine months of 2022 for expected payments to union workers of the Maco Transportadora and Maco Litoral businesses (together "Maco").

Although the Maco operations were acquired in 2017, formal antitrust approval was obtained in 2021, which triggered negotiation and approval of the expected payments in 2022.

• Net charges of $7.8 million for post-acquisition adjustments to indemnification assets related to previous business acquisitions.

• We incurred $2.9 million in integration costs, primarily related to PAI and G4S, in the first nine months of 2022.

• Transaction costs related to business acquisitions were $2.7 million in the first nine months of 2022.

• Restructuring costs related to acquisitions were $0.2 million in the first nine months of 2022.

• Compensation expense related to the retention of key PAI employees was $2.6 million in the first nine months of 2022.

2021 Acquisitions and Dispositions

• Amortization expense for acquisition-related intangible assets was $22.6 million in the first six months of 2021.

• We incurred $6.9 million in integration costs, primarily related to G4S, in the first six months of 2021.

• Transaction costs related to business acquisitions were $4.3 million in the first six months of 2021.

• Restructuring costs related to acquisitions were $4.6 million in the first six months of 2021.

• Compensation expense related to the retention of key PAI employees was $0.6 million in the first six months of 2021.

• Amortization expense for acquisition-related intangible assets was $35.3 million in the first nine months of 2021.

• We incurred $8.8 million in integration costs, primarily related to G4S, in the first nine months of 2021.

• Transaction costs related to business acquisitions were $5.4 million in the first nine months of 2021.

• Restructuring costs related to acquisitions were $5.1 million in the first nine months of 2021.

• Compensation expense related to the retention of key PAI employees was $1.2 million in the first nine months of 2021.

Argentina highly inflationary impact Beginning in the third quarter of 2018, we designated Argentina's economy as highly inflationary for accounting purposes.

2 unchanged sentences

The higher historical basis results in incremental expense being recognized when the nonmonetary assets are consumed.

In the first six months of 2022, we recognized $15.1 million in pretax charges related to highly inflationary accounting, including currency remeasurement losses of $13.4 million.

In the first six months of 2021, we recognized $6.5 million in pretax charges related to highly inflationary accounting, including currency remeasurement losses of $5.0 million.

In the first nine months of 2022, we recognized $27.1 million in pretax charges related to highly inflationary accounting, including currency remeasurement losses of $24.4 million.

In the first nine months of 2021, we recognized $8.8 million in pretax charges related to highly inflationary accounting, including currency remeasurement losses of $6.6 million.

These amounts are excluded from segment and non-GAAP results.

5 unchanged sentences

As part of the analysis under the updated estimation methodology, we noted an increase in accounts receivable significantly past due, particularly in the U.S., and we recorded an additional allowance of $16.7 million.

In the second quarter of 2022, the additional allowance was reduced by $0.4 million as a result of collections.

Due to the fact that management has excluded these amounts when evaluating internal performance, we have excluded this charge from segment and non-GAAP results.

Chile antitrust matter In the first six months of 2022, we recognized an additional $0.8 million adjustment to our estimated loss related to a potential fine as a result of a change in currency rates.

In the second quarter and third quarter of 2022, the additional allowance was reduced by $0.7 million as a result of collections.

Due to the fact that management has excluded these amounts when evaluating internal performance, we have excluded these amounts from segment and non-GAAP results.

Chile antitrust matter In the first nine months of 2022, we recognized an additional $1.1 million adjustment to our estimated loss related to a potential fine as a result of a change in currency rates.

Due to the special nature of this matter, this charge has not been allocated to segment results and is excluded from non-GAAP results.

4 unchanged sentences

As a result, we estimated an increase to bad debt expense of $26.7 million through the end of 2020.

In the first six months of 2021, we recognized a decrease in bad debt expense of $2.7 million, primarily related to collection of these receivables.

We also recognized $0.9 million of legal charges in the first six months of 2021 as we attempted to collect additional insurance recoveries related to these receivable losses.

In the first six months of 2022, we did not incur any charges related to the internal loss.

In the first nine months of 2021, we recognized a decrease in bad debt expense of $3.5 million, primarily related to collection of these receivables.

We also recognized $1.1 million of legal

charges in the first nine months of 2021 as we attempted to collect additional insurance recoveries related to these receivable losses.

In the first nine months of 2022, we did not incur any charges related to the internal loss.

Due to the unusual nature of this internal loss and the related errors in the subledger data, along with the fact that management has excluded these amounts when evaluating internal performance, we have excluded these net charges from segment and non-GAAP results.

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dollar relative to certain currencies has reduced some of our reported U.S.

dollar revenues and operating profit and may continue in 2022.

At June 30, 2022, Argentina's economy remains highly inflationary for accounting purposes.

At June 30, 2022, we had net monetary assets denominated in Argentine pesos of $75.8 million (including cash of $68.0 million) and net nonmonetary assets of $152.6 million (including $99.8 million of goodwill, $7.7 million in equity securities denominated in Argentine pesos and $3.7 million in debt securities denominated in Argentine pesos).

dollar revenues and operating profit and may continue through the end of 2022.

At September 30, 2022, Argentina's economy remains highly inflationary for accounting purposes.

At September 30, 2022, we had net monetary assets denominated in Argentine pesos of $62.0 million (including cash of $66.4 million) and net nonmonetary assets of $162.8 million (including $99.8 million of goodwill, $1.7 million in equity securities denominated in Argentine pesos and $21.0 million in debt securities denominated in Argentine pesos).

During September 2019, the Argentine government announced currency controls on both companies and individuals.

2 unchanged sentences

Conversions under these other market mechanisms generally settle at rates that are less favorable than the rates at which we remeasure the financial statements of Brink’s Argentina.

We did not have any such conversion losses in the six months ended June 30, 2022 or June 30, 2021.

We did not have any such conversion losses in the nine months ended September 30, 2022 or September 30, 2021.

Although the Argentine government has implemented currency controls, Brink’s management continues to provide guidance and strategic oversight, including budgeting and forecasting for Brink’s Argentina.

2 unchanged sentences

From time to time, we use short term foreign currency forward and swap contracts to hedge transactional risks associated with foreign currencies.

At June 30, 2022, the notional value of our short term outstanding foreign currency forward and swap contracts was $476 million with average contract maturities of approximately one month.

These short term foreign currency forward and swap contracts primarily offset exposures in the euro, the British pound, the Mexican peso, and the Chilean peso.

At September 30, 2022, the notional value of our short term outstanding foreign currency forward and swap contracts was $460 million with average contract maturities of approximately one month.

These short term foreign currency forward and swap contracts primarily offset exposures in the euro, the Mexican peso and the Chilean peso.

Additionally, these short term contracts are not designated as hedges for accounting purposes, and accordingly, changes in their fair value are recorded immediately in earnings.

At June 30, 2022, the fair value of our short term foreign currency contracts was a net asset of approximately $2.6 million, of which $5.9 million was included in prepaid expenses and other and $3.3 million was included in accrued liabilities on the condensed consolidated balance sheet.

At September 30, 2022, the fair value of our short term foreign currency contracts was a net asset of approximately $8.2 million, of which $10.7 million was included in prepaid expenses and other and $2.5 million was included in accrued liabilities on the condensed consolidated balance sheet.

At December 31, 2021, the fair value of these foreign currency contracts was a net asset of approximately $1.9 million, of which $3.4 million was included in prepaid expenses and other and $1.5 million was included in accrued liabilities on the condensed consolidated balance sheet.

Amounts under these contracts were recognized in other operating income (expense) and in interest and other nonoperating income and expense as follows:

Ended June 30, Six Months

Ended June 30,

Amounts under these contracts were recognized in other operating income (expense) as follows:

Ended September 30, Nine Months

Ended September 30,

(In millions) 2022 2021 2022 2021

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dollar denominated intercompany loan and a Brazilian real denominated intercompany loan.

At June 30, 2022, the notional value of this long term contract was $65 million with a weighted-average maturity of approximately 1.0 years.

At June 30, 2022, the fair value of the long term cross currency swap contract was a $18.1 million net asset, of which $5.3 million is included in prepaid expenses and other and $12.8 million is included in other assets on the condensed consolidated balance sheet.

At September 30, 2022, the notional value of this long term contract was $59 million with a weighted-average maturity of approximately 0.8 years.

At September 30, 2022, the fair value of the long term cross currency swap contract was a $16.7 million net asset, of which $7.2

million is included in prepaid expenses and other and $9.5 million is included in other assets on the condensed consolidated balance sheet.

At December 31, 2021, the fair value of the long term cross currency swap contract was a $26.3 million net asset, of which a $5.8 million asset is included in prepaid expenses and other and a $20.5 million asset is included in other assets on the condensed consolidated balance sheet.

Amounts under this contract were recognized in other operating income (expense) to offset transaction gains or losses and in interest expense as follows:

Ended June 30, Six Months

Ended June 30,

Ended September 30, Nine Months

Ended September 30,

(In millions) 2022 2021 2022 2021

4 unchanged sentences

In the second quarter of 2021, we entered into ten cross currency swaps to hedge a portion of our net investments in certain of our subsidiaries with euro functional currencies.

As net investment hedges for accounting purposes, we elected to use the spot method to assess effectiveness for these derivatives that are designated as net investment hedges.

We elected to use the spot method to assess effectiveness for these derivatives that are designated as net investment hedges.

Accordingly, changes in fair value attributable to changes in the undiscounted spot rates are recorded in the foreign currency translation adjustments component of accumulated other comprehensive income (loss) and will remain there until the hedged net investments are sold or substantially liquidated.

We have elected to exclude the spot-forward difference from the assessment of hedge effectiveness and are amortizing this amount separately on a straight-line basis over the term of these cross currency swaps.

At June 30, 2022, the notional value of these cross currency swap contracts was $400 million with a remaining weighted average maturity of 4.7 years.

At June 30, 2022, the fair value of these currency swaps was a net asset of $52.1 million, of which $6.0 million was included in prepaid expenses and other and $46.1 million was included in other assets on the condensed consolidated balance sheet.

In July 2022, we terminated these cross currency swap contracts and received $67 million in cash as settlement.

We subsequently entered into a total of nine cross currency swaps with a total notional of $400 million to hedge a portion of our net investment in certain of our subsidiaries with euro functional currencies.

Swaps with a total notional of $185 million will terminate in April 2031 and swaps with a total notional of $215 million will terminate in May 2026.

Swaps with a total notional of $215 million will terminate in May 2026 and swaps with a total notional of $185 million will terminate in April 2031.

We have designated these swaps as net investment hedges for accounting purposes.

At September 30, 2022, the notional value of these cross currency swap contracts was $400 million with a remaining weighted average maturity of 2.4 years for the cross currency swaps maturing in May 2026 and a remaining weighted average maturity of 6.1 years for the cross currency swaps with maturity in April 2031.

At September 30, 2022, the fair value of these currency swaps was a net asset of $11.3 million, of which $5.6 million was included in prepaid expenses and other and $5.7 million was included in other assets on the condensed consolidated balance sheet.

The effect of the amortization of the spot-forward difference on the net investment hedges cross currency swaps is included in interest expense as follows:

Ended June 30, Six Months

Ended June 30,

Ended September 30, Nine Months

Ended September 30,

(In millions) 2022 2021 2022 2021

3 unchanged sentences

Other operating income (expense) includes amounts included in segment results as well as income and expense not allocated to segments.

Ended June 30, % Six Months

Ended June 30, %

Ended September 30, % Nine Months

Ended September 30, %

(In millions) 2022 2021 change 2022 2021 change

Foreign currency items:

Transaction gains (losses) $ (19.3) — (100) $ (40.7) (13.3) unfav

Derivative instrument gains (losses) 14.1 (2.3) fav 33.0 8.2 fav

Gains (losses) on sale of property and other assets 1.1 0.3 fav 1.5 (1.4) fav

Transaction losses $ (32.7) (6.5) unfav $ (73.4) (19.8) unfav

Derivative instrument gains 25.4 6.3 fav 58.4 14.5 fav

Gains (losses) on sale of property and other assets (0.1) — unfav 1.4 (1.4) fav

Impairment losses (4.9) (5.0) (2) (7.9) (7.5) 5

Share in earnings of equity affiliates 0.3 0.1 fav 0.8 0.4 100

Royalty income 1.9 1.3 46 5.1 2.5 fav

Other gains (losses) 0.4 1.5 (73) 0.6 2.7 (78)

Other operating income (expense) $ (2.4) (0.5) unfav $ (2.7) (3.4) (21)

Other operating income (expense) was a $2.4 million expense in the second quarter of 2022 versus a $0.5 million expense in the prior year period.

The change from the prior year period was primarily due to lower net losses from foreign currency items in the current period.

Other operating income (expense) was a $2.7 million expense in the first six months of 2022 versus a $3.4 million expense in the prior year period.

The change from the prior year period was primarily due to lower net losses from foreign currency items in the current period.

Indemnification asset adjustments (7.8) — unfav (7.8) — unfav

Share in earnings of equity affiliates 0.5 0.3 67 1.3 0.7 86

Royalty income 2.1 1.5 40 7.2 4.0 80

Other gains 1.8 1.6 13 2.4 4.3 (44)

Other operating income (expense) $ (15.7) (1.8) unfav $ (18.4) (5.2) unfav

Other operating income (expense) was a $15.7 million expense in the third quarter of 2022 versus a $1.8 million expense in the prior year period.

The change from the prior year period was primarily due to acquisition-related indemnification asset adjustments and higher net losses from foreign currency items in the current period.

Other operating income (expense) was a $18.4 million expense in the first nine months of 2022 versus a $5.2 million expense in the prior year period.

The change from the prior year period was primarily due to acquisition-related indemnification asset adjustments and higher net losses from foreign currency items in the current period.

Nonoperating Income and Expense

Interest expense

Ended June 30, % Six Months

Ended June 30, %

Ended September 30, % Nine Months

Ended September 30, %

(In millions)

1 unchanged sentence

Interest expense $ 34.7 27.6 26 $ 95.0 83.0 14

Interest expense was higher in the second quarter and first six months of 2022 primarily due to higher borrowing levels related to the $200 million in share repurchases completed over the prior twelve months.

Interest expense was higher in the third quarter and first nine months of 2022 primarily due to higher borrowing levels to fund general corporate initiatives including the $200 million in share repurchases completed over the prior twelve months and other working capital needs.

Interest and other nonoperating income (expense)

Ended June 30, % Six Months

Ended June 30, %

Ended September 30, % Nine Months

Ended September 30, %

(In millions) 2022 2021 change 2022 2021 change

Interest income $ 5.5 2.6 fav $ 8.9 4.7 89

Gain (loss) on equity securities (0.1) 10.8 unfav (0.4) 14.2 unfav

Foreign currency transaction gains (losses) 1.6 — 100 2.3 (0.1) fav

Interest income $ 8.1 3.3 fav $ 17.0 8.0 fav

Gain (loss) on equity securities 0.3 2.1 (86) (0.2) 16.3 unfav

Foreign currency transaction gains (losses) 1.6 0.6 fav 3.9 0.5 fav

Retirement benefit cost other than service cost (3.1) (9.3) (67) (11.1) (27.6) (60)

G4S indemnification asset adjustment (a)

Acquisition-related gains — 0.4 (100) — 0.4 (100)

Penalties and interest on non-income taxes (a)

— — — — (1.7) (100)

Penalties and interest on non-income taxes (b)

Non-income taxes on intercompany billings (b)

(0.6) (2.0) (70) (1.8) (3.3) (45)

Non-income taxes on intercompany billings (c)

0.5 (0.6) fav (1.3) (1.3) —

Interest on non-income tax credits (c)

— 1.2 (100) — 1.2 (100)

Earn-out liability adjustment (d)

— — — — 1.3 (100)

Other (0.9) 0.4 unfav 0.6 (0.2) fav

Interest and other nonoperating income (expense) $ 3.4 4.6 (26) $ 2.1 (0.9) fav

(a) Adjustment to indemnification asset related to business operations acquired from G4S.

(b) Represents penalties and interest on non-income taxes that have not yet been paid.

Other — 3.0 (100) 0.6 3.3 (82)

Interest and other nonoperating income (expense) $ 6.3 (0.7) fav $ 8.4 (1.6) fav

(a) Represents penalties and interest on non-income taxes that have not yet been paid.

(b) Certain of our Latin American subsidiaries incur non-income taxes related to the billing of intercompany charges.

These intercompany charges do not impact the Latin America segment results and are eliminated in our consolidation.

In the third quarter of 2021, our Brazil operations received a favorable court decision related to non-income taxes paid in prior years and will be able to recover the overpayments, plus interest, by reducing payments on future tax obligations.

(d) Adjustment to the liability for contingent consideration pertaining to a 2019 business acquisition.

Ended June 30, Six Months

Ended June 30,

Ended September 30, Nine Months

Ended September 30,

2022 2021 2022 2021

12 unchanged sentences

As a result, we expect to be able to utilize a substantial amount of our foreign tax credit and general business tax credit carryforwards to offset future tax prior to their expiration.

Accordingly, as a result of the law change, we reversed a substantial amount of our valuation allowance on our net U.S.

deferred tax assets, resulting in a $55.0 million benefit in our provision for income taxes for the period ended June 30, 2022.

Accordingly, we reversed a substantial amount of our valuation allowance on our net U.S.

deferred tax assets, resulting in a $52.8 million benefit in our provision for income taxes for the nine months ended September 30, 2022.

Due to the novel approach that the final regulations impose, it is possible that further developments in foreign country or U.S.

4 unchanged sentences

Noncontrolling Interests

Ended June 30, % Six Months

Ended June 30, %

Ended September 30, % Nine Months

Ended September 30, %

(In millions) 2022 2021 change 2022 2021 change

Net income attributable to noncontrolling interests $ 3.4 4.0 (15) $ 9.3 9.7 (4)

The net income attributable to noncontrolling interests in the three months and six months ended June 30, 2022 is consistent with the net income attributable to noncontrolling interests in the three months and six months ended June 30, 2021.

The decrease in net income attributable to noncontrolling interests in the three months ended September 30, 2022, is primarily attributable to lower third quarter 2022 operating results reported by certain subsidiaries that are not wholly-owned.

The net income attributable to noncontrolling interests in the nine months ended September 30, 2022 is consistent with the net income attributable to noncontrolling interests in the nine months ended September 30, 2021.

Non-GAAP Results Reconciled to GAAP

26 unchanged sentences

Chile antitrust matter (b)

1.1 0.3 9.5 —

Internal loss (b)

19 unchanged sentences

Non-GAAP Results Reconciled to GAAP

Ended June 30, Six Months

Ended June 30,

Ended September 30, Nine Months

Ended September 30,

(In millions, except for percentages and per share amounts) 2022 2021 2022 2021

12 unchanged sentences

Chile antitrust matter (b)

0.3 9.5 1.1 9.5

Internal loss (b)

48 unchanged sentences

See page 50 for footnote explanations.

Ended June 30, Six Months

Ended June 30,

Ended September 30, Nine Months

Ended September 30,

(In millions, except for percentages and per share amounts) 2022 2021 2022 2021

14 unchanged sentences

Chile antitrust matter (b)

0.2 9.5 0.8 9.5

Internal loss (b)

13 unchanged sentences

Change in allowance estimate (b)

(0.01) — 0.26 —

Valuation allowance on tax credits (e)

10 unchanged sentences

LIQUIDITY AND CAPITAL RESOURCES

Cash flows from operating activities decreased by $39.9 million in the first six months of 2022 as compared to the first six months of 2021.

Cash used for investing activities decreased by $277.4 million in the first six months of 2022 compared to the first six months of 2021.

We financed our liquidity needs in the first six months of 2022 with existing cash and cash flows from long-term debt.

Cash flows from operating activities decreased by $73.1 million in the first nine months of 2022 as compared to the first nine months of 2021.

Cash used for investing activities decreased by $278.2 million in the first nine months of 2022 compared to the first nine months of 2021.

We financed our liquidity needs in the first nine months of 2022 with existing cash and cash flows from long-term debt.

Operating Activities

Ended June 30, $

Ended September 30, $

(In millions) 2022 2021 change

13 unchanged sentences

This non-GAAP measure should not be considered as an alternative to cash flows from operating activities determined in accordance with GAAP and should be read in conjunction with our condensed consolidated statements of cash flows.

Cash flows from operating activities decreased by $39.9 million in the first six months of 2022 compared to the same period in 2021.

The decrease was attributed to working capital changes, higher amounts paid for income taxes (we had $70.5 million in cash payments for taxes in 2022 as compared to $38.9 million in 2021) and changes in customer obligations related to certain of our secure cash management services operations (certain customer obligations increased by $5.3 million in 2022 compared to an increase of $8.3 million in 2021), offset by restricted cash held for customers (restricted cash held for customers increased by $3.5 million in 2022 compared to a decrease of $36.3 million in 2021) and higher operating profit.

Non-GAAP cash flows from operating activities decreased by $79.3 million in the first six months of 2022 as compared to the same period in 2021.

Cash flows from operating activities decreased by $73.1 million in the first nine months of 2022 compared to the same period in 2021.

The decrease was attributed to working capital changes, higher amounts paid for income taxes (we had $101.6 million in cash payments for taxes in 2022 as compared to $55.9 million in 2021), changes in customer obligations related to certain of our secure cash management services operations (certain customer obligations increased by $4.0 million in 2022 compared to an increase of $10.0 million in 2021), and restricted cash held for customers (restricted cash held for customers decreased by $4.4 million in 2022 compared to a increase of $12.7 million in 2021), offset by higher operating profit.

Non-GAAP cash flows from operating activities decreased by $52.6 million in the first nine months of 2022 as compared to the same period in 2021.

The decrease was attributed to working capital changes and higher amounts paid for income taxes, offset by higher operating profit.

Investing Activities

Ended June 30, $

Ended September 30, $

(In millions) 2022 2021 change

6 unchanged sentences

Proceeds from sale of property and equipment 3.3 5.7 (2.4)

Proceeds from settlement of cross currency swap 64.3 — 64.3

Acquisition of customer contracts — (0.8) 0.8

Net change in loans held for investment (23.3) — (23.3)

Other (0.1) — (0.1)

Investing activities $ (112.1) (390.3) 278.2

Cash used by investing activities decreased by $277.4 million in the first six months of 2022 versus the first six months of 2021.

The decrease was primarily due to decreased payments related to the G4S and PAI acquisitions in 2021.

Cash used by investing activities decreased by $278.2 million in the first nine months of 2022 versus the first nine months of 2021.

The decrease was primarily due to decreased payments related to the G4S and PAI acquisitions in 2021 and proceeds from the settlement of the euro cross currency swaps, as discussed in Note 8, offset by increases in cash used for the net purchase and sales of marketable securities and net change in loans held for investment, as discussed in Note 13.

Capital expenditures and depreciation and amortization were as follows:

Ended June 30, $ Full Year

Ended September 30, $ Full Year

(In millions) 2022 2021 change 2021

31 unchanged sentences

Depreciation and amortization - GAAP $ 179.9 178.1 1.8 239.5

(a) Incremental depreciation related to highly inflationary accounting in Argentina, accelerated depreciation related to restructuring and acquisition-related integration activities, and amortization of acquisition-related intangible assets have been excluded from non-GAAP amounts.

(a) Incremental depreciation related to highly inflationary accounting in Argentina, accelerated depreciation related to restructuring activities and acquisition-related integration activities, and amortization of acquisition-related intangible assets have been excluded from non-GAAP amounts.

(b) Represents the amount of property and equipment acquired using financing leases.

Because the assets are acquired without using cash, the acquisitions are not reflected in the condensed consolidated cash flow statement.

Because the assets are acquired without using cash, the acquisitions are not reflected in the condensed consolidated statements of cash flows.

Amounts are provided here to assist in the comparison of assets acquired in the current year versus prior years.

Non-GAAP capital expenditures and non-GAAP depreciation and amortization are supplemental financial measures that are not required by, or presented in accordance with GAAP.

The purpose of these non-GAAP measures is to report financial information excluding incremental depreciation related to highly inflationary accounting in Argentina, accelerated depreciation from restructuring and acquisition-related integration activities, and amortization of acquisition-related intangible assets.

The purpose of these non-GAAP measures is to report financial information excluding incremental depreciation resulting from highly inflationary accounting in Argentina, accelerated depreciation from restructuring activities and acquisition-related integration activities, and amortization of acquisition-related intangible assets.

We believe these measures are helpful in assessing capital expenditures and depreciation and amortization, enable period-to-period comparability and are useful in predicting future investing cash flows.

These non-GAAP measures should not be considered as alternatives to capital expenditures and depreciation and amortization determined in accordance with GAAP and should be read in conjunction with our condensed consolidated statements of cash flows.

Our reinvestment ratio, which we define as the annual amount of property and equipment acquired during the period divided by the annual amount of depreciation, was 1.4 for the 12 months ending June 30, 2022 compared to 1.1 for the 12 months ending June 30, 2021.

Capital expenditures in the first six months of 2022 were primarily for information technology, cash devices, armored vehicles and machinery and equipment.

Our reinvestment ratio, which we define as the annual amount of property and equipment acquired during the period divided by the annual amount of depreciation, was 1.4 for the 12 months ending September 30, 2022 compared to 1.2 for the 12 months ending September 30, 2021.

Capital expenditures in the first nine months of 2022 were primarily for cash devices, information technology, armored vehicles and machinery and equipment.

Financing Activities

Ended June 30, $

Ended September 30, $

(In millions) 2022 2021 change

5 unchanged sentences

Borrowings (repayments) 378.0 315.5 62.5

Acquisition of noncontrolling interest (7.8) — (7.8)

Debt financing costs (5.5) (0.4) (5.1)

Repurchase shares of Brink's common stock (27.3) (50.0) 22.7

Dividends to:

9 unchanged sentences

Debt borrowings and repayments

Cash flows from financing activities decreased by $177.9 million in the first six months of 2022 compared to the first six months of 2021 as net borrowings decreased compared to the prior six month period.

We paid dividends to Brink’s shareholders of $0.40 per share or $18.9 million in the first six months of 2022 compared to $0.35 per share or $17.4 million in the first six months of 2021.

Cash flows from financing activities increased by $57.3 million in the first nine months of 2022 compared to the first nine months of 2021 as net borrowings increased compared to the prior nine month period.

We paid dividends to Brink’s shareholders of $0.60 per share or $28.3 million in the first nine months of 2022 compared to $0.55 per share or $27.3 million in the first nine months of 2021.

Future dividends are dependent on our earnings, financial condition, shareholders’ equity levels, our cash flow and business requirements, as determined by the Board of Directors.

1 unchanged sentence

GAAP Measures

June 30, December 31,

September 30, December 31,

(In millions) 2022 2021

9 unchanged sentences

The cash is generally credited to customers’ accounts the following day and we do not consider it as available for general corporate purposes in the management of our liquidity and capital resources and in our computation of Net Debt.

(b) Included within Net Debt is net cash from our Argentina operations of $68 million at June 30, 2022 and $54 million at December 31, 2021 (see Note 1 to the condensed consolidated financial statements for a discussion of currency controls in Argentina).

(b) Included within Net Debt is net cash from our Argentina operations of $67 million at September 30, 2022 and $54 million at December 31, 2021 (see Note 1 to the condensed consolidated financial statements for a discussion of currency controls in Argentina).

Net Debt is a supplemental non-GAAP financial measure that is not required by or presented in accordance with GAAP.

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Net Debt should not be considered as an alternative to Debt determined in accordance with GAAP and should be reviewed in conjunction with our condensed consolidated balance sheets.

Set forth above is a reconciliation of Net Debt, a non-GAAP financial measure, to Debt, which is the most directly comparable financial measure calculated and reported in accordance with GAAP, as of June 30, 2022, and December 31, 2021.

Net Debt increased by $165 million primarily to fund corporate purposes and other working capital needs.

Net Debt increased by $100 million primarily to fund general corporate initiatives including the $200 million in share repurchases completed over the prior twelve months and other working capital needs.

Liquidity Needs

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Our liquidity needs are typically financed by cash from operations, short-term debt and the available borrowing capacity under our Revolving Credit Facility (our debt facilities are described in more detail in Note 9 to the condensed consolidated financial statements, including certain limitations and considerations related to the cash and borrowing capacity).

As of June 30, 2022, $510 million was available under the Revolving Credit Facility.

As of September 30, 2022, $320 million was available under the Revolving Credit Facility.

Based on our current cash on hand, cash generated from operations, and amounts available under our credit facilities, we believe that we will be able to meet our liquidity needs for the next 12 months.

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See “Risk Factors” in Item 1A of our annual report on Form 10-K for the year ended December 31, 2021, for more information on the risks associated with having businesses outside the U.S.

Our conclusion that we will be able to fund our cash requirements for the next 12 months by using existing capital resources, cash on hand, and cash generated from operations does not take into account any potential material worsening of economic conditions as a result of the ongoing COVID-19 pandemic, including as a result of new variants of the COVID-19 virus, and material increases in inflation, that would adversely affect our business.

Our conclusion that we will be able to fund our cash requirements for the next 12 months by using existing capital resources, cash on hand, and cash generated from operations does not take into account any potential material worsening of economic conditions as a result of the ongoing COVID-19 pandemic, and material increases in inflation, that would adversely affect our business.

The anticipated cash needs of our business could change significantly if we pursue and complete additional business acquisitions, if our business plans change, if events, including economic disruptions, arising from the ongoing COVID-19 pandemic worsen, or if other economic conditions change, such as material increases in inflation, from those currently prevailing or from those now anticipated, such as higher inflation or if other unexpected circumstances arise that may have a material effect on the cash flow or profitability of our business, including material negative changes in the health and welfare of our employees or changes in the condition of our customers or suppliers, and the operating performance or financial results of our business.

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Share repurchases under this program may be made in the open market, in privately negotiated transactions, or otherwise.

At June 30, 2022, $250 million remained available under the 2021 Repurchase Program.

During the third quarter ended September 30, 2022, we used $27.3 million to repurchase, in the open market, 501,560 shares at an average repurchase price of $54.36 per share.

These shares were retired upon repurchase.

At September 30, 2022, $223 million remained available under the 2021 Repurchase Program.

Under the 2020 Repurchase Program, we entered into an accelerated share repurchase arrangement ("ASR") in the fourth quarter of 2021 and repurchased 1,742,160 shares in November 2021 in exchange for a $150 million upfront payment to a financial institution.

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Actual Actual Projected

(In millions) 2021 First Half 2022 2nd Half 2022 2023 2024 2025 2026

(In millions) 2021 Nine Months 2022 4th Quarter 2022 2023 2024 2025 2026

Beginning funded status $ (151.1) (65.8) (46.3) (42.6) (18.2) 8.8 38.6

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We did not make cash contributions to the primary U.S.

pension plan in 2021 or the first six months of 2022.

pension plan in 2021 or the first nine months of 2022.

There are approximately 10,800 beneficiaries in the plan.

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Actual Actual Projected

(In millions) 2021 First Half 2022 2nd Half 2022 FY2022 2023 2024 2025 2026

(In millions) 2021 Nine Months 4th Quarter 2022 FY2022 2023 2024 2025 2026

pension plan $ 7.4 (1.5) (0.4) (1.9) (6.5) (13.8) (18.1) (21.1)

8 unchanged sentences

Actual Actual Projected

(In millions) 2021 First Half 2022 2nd Half 2022 FY2022 2023 2024 2025 2026

(In millions) 2021 Nine Months 2022 4th Quarter 2022 FY2022 2023 2024 2025 2026

Payments from Brink’s to U.S.

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Contingent Matters

See Note 14 to the condensed consolidated financial statements for information about contingent matters at June 30, 2022.

See Note 14 to the condensed consolidated financial statements for information about contingent matters at September 30, 2022.

Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.

What changed 10-Q

Item 2. Management’s Discussion and Analysis