The Brink's Company Sends Letter to Shamrock
RICHMOND, Va., Nov. 12, 2012
RICHMOND, Va., Nov. 12, 2012 /PRNewswire/ --The Brink's Company (NYSE: BCO),
a global leader in security-related services, today sent a letter in response
to the press release issued by Shamrock Holdings, Inc. on November 5, 2012.
The text of the letter follows:
November 12, 2012
Dear Mr. Gold:
I am writing on behalf of the Board of Directors of The Brink's Company in
response to the November 5, 2012 press release issued by Shamrock Holdings,
Inc., which referenced a November 2, 2012 letter to the Company. Please note
that, other than through the press release, Brink's has not yet received a
copy of this letter, and is not aware of any attempt by Shamrock to contact
the Company regarding its contents either before or after the letter was
published. Shamrock also has not disclosed the level of its ownership
interest in the Company.
Consistent with its fiduciary obligations to all shareholders, the Board, with
the assistance of its financial and legal advisors, reviewed the substance of
Shamrock's press release at a recent meeting that included a regular strategic
Board and Management Focused on Shareholder Value Creation: The Board is
highly focused on enhancing shareholder value and continues to oversee the
Company's performance and work closely with the management team. Following a
search that considered both internal and external candidates, the Board
appointed a new President and Chief Executive Officer on June 18, 2012, and
provided management with a mandate to take steps necessary to improve
performance and position Brink's for long-term growth. Since that date:
oThe Company has initiated cost-saving measures, including reducing
headcount, consolidating operations and lowering capital expenditures
while continuing to improve productivity and strengthening the Brink's
leadership team in key areas around the globe;
oThe Company's share price has increased 19% through November 2, 2012, the
last trading day before Shamrock issued its press release about Brink's;
oResearch analysts continue to forecast significant upside in Brink's share
price, reflecting confidence in the Company's business plan.
Shamrock's Press Release Contains Inaccurate and Misleading Statements: There
were a number of significant inaccuracies in Shamrock's press release,
oA misleading reference to the Company's share price performance during the
last five years. Shamrock fails to account for the significant value
Brink's shareholders realized from the spin-off of Brink's Home Security
to Brink's shareholders in 2008 and subsequent sale of that business to
Tyco for approximately $2 billion. After taking into account the spin-off
and subsequent sale, there has been an increase in Brink's share price
that has outpaced the S&P 500, contrary to Shamrock's assertion that share
value has decreased by over 60% over the past five years.
oAn erroneous comparison of the Company's GAAP earnings per share during
the first nine months of 2012 with the same period in 2011. The Company's
earnings per share increased by 8% in the first nine months of 2012 to
$1.26 per share, as compared to $1.17 per share during the same period a
year ago, rather than declining, as asserted by Shamrock.
Improving Near-Term Results and Sustainable Long-Term Growth: The Brink's
Board takes seriously its fiduciary responsibilities, has consistently
demonstrated its willingness to listen to shareholder views, and has taken
action on a number of fronts to enhance returns. These include:
oMaximizing profits in developed markets, while continuing to invest in
other markets such as Latin America:
oAn ongoing portfolio review of European operations has thus far
resulted in agreements for the sale of cash handling operations in
Poland and guarding operations in France, and the consolidation of
branch operations in Germany.
oCost reductions, branch consolidations and productivity investments
have resulted in improved year-to-date profits in Europe and North
America despite difficult market conditions.
oThe Company has demonstrated steady profit improvement in Mexico,
which is expected to continue.
oInvestments in new solutions and adjacent markets to drive long-term
growth, including payment processing and ATM network management
oOngoing review of capital expenditures, which is expected to reduce 2012
spending by approximately $30 million.
Brink's is confident that the right strategic plan and team are in place to
improve near-term results and achieve sustainable shareholder value creation.
Accordingly, the Board, after recently completing a regular strategic planning
session, believes that exploration of strategic alternatives at this time is
not in the best interests of shareholders and that it is not an appropriate
time to sell the Company.
Very truly yours,
Thomas C. Schievelbein
Chairman of the Board, President and Chief Executive Officer
About The Brink's Company
The Brink's Company (NYSE: BCO) is the world's premier provider of secure
transportation and cash management services. For more information, please
visit The Brink's Company website at www.Brinks.com or call 804-289-9709.
SOURCE The Brink's Company
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