Rebranding is topic of Brink’s earnings call

Thursday, January 1, 2009

IRVING, Texas--Brink’s Home Security in late November held its first earnings call since spinning off from The Brink’s Co., although most of the financial information had been released a week before during The Brink’s Company report.

For the most part, investors who dialed in seemed to want to talk about the rebranding, and how the poor economy is affecting BHS.

Unlike many companies, BHS is liquid. It’s starting its new life with no debt, a $50 million infusion of cash from BCO and a $75 million line of credit, which can be expanded to $125 million.

BHS president Bob Allen said in the short term BHS wants to conserve cash on hand, since they’re expecting to spend $100- to $150 million on rebranding in 2009, the bulk of which will be spent after the second quarter.

Revenue was up 8.9 percent over Q3 last year ($135.4m from $124.3m last year). Operating profit margin was up to $22.8 million from $14.8m last year.