Brink’s updates details of unpaid taxes

SSN Staff  - 
Wednesday, December 1, 2004

RICHMOND, Va. - In The Brink’s Company’s quarterly report, company officials revealed that it has yet to be assessed penalties and fines associated with a non-U.S. Brink’s Inc. businesses’ failure to pay customs duties and value-added taxes.

Although the incident is still under investigation by Brink’s, the parent company of Brink’s Home Security, the company has lowered the amount of possible fines it could face. When it disclosed the possibility of fines in its 2004 second quarter results, estimates ran between $50 million and $85 million. Now, the company is estimating possible fines to fall in the $38 million range, although they feel that large of an amount is unlikely to be assessed.

Within the report, Brink’s also reported that in its third quarter ending Sept. 30, revenue at Brink’s Home Security increased 11 percent to $87.6 million as compared to the same period last year, due to growth in its subscriber base and a higher per subscriber monthly revenues. Operating profit was also up in the third quarter, to $20.2 million, a record for the home security arm and 12 percent higher than the pervious year’s quarter.

The division accounted for 38,100 new subscribers during the quarter and ended it with roughly 896,000 subscribers in all - equaling $25.2 million in monthly recurring revenue.