RICHMOND, Va. -- The Brink's Company has reported after-tax income from continuing operations for the first quarter of 2005 of $15.8 million or $0.28 per diluted share compared to $17.2 million or $0.32 per diluted share in the prior-year period.
Revenue in the first quarter of 2005 was up 12% over last year's first quarter to $1.2 billion, reflecting substantial increases from each of the Company's business units. Revenues at Brink's Incorporated and BAX Global benefited from stronger European currencies relative to the U.S. dollar. The effects of the weaker U.S. dollar contributed about two percentage points of the increase in revenues.
The company reported operating profit of $36.8 million for the quarter ended March 31, 2005, a 9% increase from $33.7 million in the year earlier period. Operating profit at both Brink's Home Security and BAX Global improved in the current quarter versus the quarter a year earlier. Higher operating profit from the company's business segments was partially offset by an increase in costs of former coal operations and higher corporate expenses. Income tax expense was higher in the 2005 quarter primarily due to newly established tax valuation allowances related to certain European operations.
Net income for the first quarter of 2005 was $13.6 million, or $0.24 per diluted share, including a loss from discontinued operations of $2.2 million, or $0.04 per diluted share. In the first quarter a year ago, the Company reported net income of $25.8 million, or $0.47 per diluted share, which included income of $8.6 million, or $0.15 per diluted share, from discontinued operations primarily relating to the sale of natural resources assets.
Brink's Home Security
Revenue at Brink's Home Security increased 12% to $91.9 million in the first quarter of 2005, as compared to the same period last year, due primarily to continued growth in the subscriber base. Operating profit in the first quarter was a record $22.5 million, 16% higher than in the prior year's first quarter. The increase in operating profit from recurring services resulted primarily from the growth of the subscriber base.
The annualized disconnect rate for the first quarter of 2005 improved to 5.8% from 6.4% in the year-ago quarter. Brink's Home Security installed 39,300 new subscribers during the quarter, a 15% increase over the number of new subscribers added in the first quarter of 2004, and ended the quarter with approximately 947,100 subscribers generating monthly recurring revenue of $26.9 million (see Non-GAAP Reconciliations for a reconciliation of monthly recurring revenue to reported revenue).