QUOTE AND NEWS
Market Intelligence Center  Dec 12  Comment 
Brink's Co (BCO) presents a trading opportunity that offers a 6.08% return in just 98 days. A covered call on Brinks at the $22.50 level expiring on Mar. '15 offers an assigned return rate of 6.08% or 22.65% annualized. This trade offers 4.93%...
Market Intelligence Center  Dec 3  Comment 
MarketIntelligenceCenter.com's patented trade-picking algorithms have identified an attractive covered-call trade on Brink's Co (BCO). Look at the Jun. '15 $22.50 covered call for a net debit in the $20.36 area. This trade has a duration of 198...
Forbes  Nov 17  Comment 
Shareholders of Brinks Co (NYSE: BCO) looking to boost their income beyond the stock's 1.9% annualized dividend yield can sell the March 2015 covered call at the $22.50 strike and collect the premium based on the 90 cents bid, which annualizes to...
newratings.com  Oct 30  Comment 
WASHINGTON (dpa-AFX) - The Brink's Company (BCO), a global leader in security-related services, reported that its third-quarter income from continuing operations decreased to $18.7 million or $0.38 per share from $29.8 million or $0.61 per...
StreetInsider.com  Oct 17  Comment 
Visit StreetInsider.com at http://www.streetinsider.com/Corporate+News/The+Brink%27s+Company+%28BCO%29+Plans+to+Restructure+Netherlands+Ops%3B+Sees+Q3+Charge+Up+to+%2422M/9920150.html for the full story.
Market Intelligence Center  Sep 24  Comment 
Option-trade picking algorithms patented by MarketIntelligenceCenter.com found a trading opportunity with Brink's Co (BCO) that should provide a 6.70% return in just 177 days. Sell one Mar. '15 call at the $25.00 level for each 100 shares of...
DailyFinance  Aug 22  Comment 
TORONTO, ONTARIO -- (Marketwired) -- 08/22/14 -- Omniware Solutions Inc. (www.omniware.ca), a transformative force in flexible billing solutions, is pleased to announce that The Brink's Company (NYSE:BCO), a global leader in security-related...
Market Intelligence Center  Aug 18  Comment 
A covered call identified by MarketIntelligececenter.com's patented algorithm on Brink's Co (BCO) could yield about 7.63% (22.47% annualized, for comparison purposes only) in 124 days. Pair a long position in the stock with the Dec. '14 $27.50...
SeekingAlpha  Aug 5  Comment 
ByMarshall Hargrave: Brink's Company (NYSE:BCO) reported 2Q earnings that missed on the top and bottom lines. Its earnings came in at $0.27 a share (missing consensus of $0.41). Revenue was $902 million (missing consensus of $918 million). Shares...





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The Brink's Company (NYSE:BCO) is a leading global security services provider based in Richmond, Virginia. Its operations, outside of the USA are primarily located in Europe, the Middle East, and Africa (EMEA), Latin America and Asia Pacific. Combined, Brink’s has 492 branches operating in 37 countries [1]. From an organizational standpoint the business is broken down into two wholly-owned subsidiaries: Brink's Inc. and Brink's Home Security which together comprise a total of 57,000 employees. Brink's Inc. provides armored car transportation, ATM servicing, currency and coin processing, and other related services to both commercial and governmental agencies around the world. In recent years, Brink's has transitioned from a conglomerate with stakes in the natural resources industry into a focused firm that has its resources dedicated solely to the security industry [2].

Brink's Home Security (BHS), on the other hand, is the second-largest provider of security systems for residential and commercial properties[3]. The primary consumers are residents of a single-family home and this group makes up more than 90% of BHS's customer base[4]. On February 25, 2008, as a result of a review of strategic options that began in November of 2007, Brink's announced that it will be spinning off this sector of its business into a separate publicly traded company [5]. Investors will receive a tax free distribution of stock as the deal is finalized in the fourth quarter of this year.

Business Financials

During the 2007 fiscal year, revenues exceeded $3 billion and total profit amounted to 337.5 Over the past few years, Brink's has seen a significant increase in their revenue stream from overseas, accounting for 68% of their total revenues this past fiscal year million[6].

Segment Breakdown

Brink's Inc.

Brink's Inc., as the oldest and most extensive security service provider in the world, has an extensive and complex infrastructure and logistical network that is made up of 1,100 vehicles and 800 facilities[7]. This unit has seen continued revenue and profit growth over the four years as evidenced below:

Moving forward, growth in this subsidiary will occur through internal actions taken by management supplemented by strategic acquisitions that are aimed at expanding Brink's reach into both existing and emerging markets around the world. Moreover, Brink's, in conjunction with their global expansion has outsourced many of the securities services provided within this unit. Therefore, future growth will be contingent upon their ability to successfully outsource services at a lower cost with no subsequent decrease in quality and customer satisfaction. Overall, This unit represents 80% of the total revenue and 2/3 of the company's profits.

Brink's Home Security

Brink's Home Security (BHS) provides comprehensive alarm and security systems in more than 250 metropolitan areas in the United States and two provinces in Canada. While revenue and profits have grown at a steady pace, there has been a recent decline in the customer base that, if continued could have a negative effect on future revenue streams and Brink's ability to leverage capital into improving the technology of their services. Not only has there been an absolute decrease in the customer base but there was also a simultaneous increase in the customer disconnect rate, a ratio comparing the number of customers who cancel during the period with the total number of customers, to 7% which is a .6% increase over the previous period[8]. However, more than 50% of customers who do disconnect do so as a result of business or residential relocations, which lie outside of Brink's control. That being said, even though Brink's screens potential clients on the basis of credit up to 30% of the customer disconnects that occur in a given year are financially motivated[9].

BHS does not directly manufacture any of its home security systems itself but chooses to purchase much of them directly from limited third party distributors and suppliers. As a result, it has been able to keep inventory costs low but also expose itself to the difficulties that arise from being overly dependent on a smooth and timely supply chain that can meet customer demand[10]. In order to continue growth in this area BHS has participated extensively in direct marketing to consumers through such mediums as television, direct mailings, and use of the yellow pages. More recently, BHS has also implemented a dealer program that accounted for 20% of new customers and 11% of the current customer base this past fiscal year.

Key Trends and Forces

Changing global conditions economically, politically and socially may negatively impact future revenue growth Currently, more than 60% of Brink's revenue is derived from its overseas operations. This sector is expected to continue to play a pivotal role in generating profit for the organization but is also subject to many of the risks associated with operating at the global level. The most pressing issues include the declining US dollar which has increased the downward pressure on revenues and equity and the fluctuations in the political and social climate in primarily the emerging market economies of the countries where Brink's conducts business. Additionally, due to the service oriented focus of Brink's its ability to find qualified employees to staff its branch operations around the world will be highly dependent upon the local economic conditions.

A continued decline in US economic conditions may will negatively affect BHS


Labor Union Relations

References

  1. Reuters Stock Description
  2. Reuters Stock Description
  3. Brink's Company Website
  4. Reuters Stock Description
  5. Yahoo Finance: "Brink's to Spin Off Home Security Unit"
  6. 2008 10K Statement Page 5
  7. 2008 10K Statement Page 7
  8. 2008 10K Statement Page 13
  9. 2008 10K Statement Page 15
  10. [2008 10K Statement Page 13
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