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Business Model Built on Predictable, Recurring Cash Flows with Strong Returns
"Per Unit" Illustrative Cash Flows
($ in millions)
Future cash flows include monthly billings (RMR), less the cost to serve the subscriber, and include customer attrition
■Dealer
■DTC Pay in Full
■DTC Consumer Financing
$475
$489
$453
$358 $374
$350 $366
$321 $336
$336
$234 $245
$262
$180 $188
$216
$146 $152
$181
$120 $125
$154
$101 $105
($1,209)
($1,350)
($1,788)
Subscriber
Acquisition
Costs (SAC)
Time 0
Year 1
Year 2
Year 3
Year 4
Year 5
$515
$324 $290
Year 6
Year 7
Year 8
Terminal
Scenario
ARPU
Creation Multiple
Revenue Payback¹
(Years)
EBITDA Breakeven
IRR2
(Years)
Dealer
$55.00
32.5x
2.7
4.2
16.9%
DTC Pay in Full
$45.00
30.0x
2.5
4.5
14.0%
DTC Consumer
Financing
$46.50
26.0x
2.2
3.5
20.7%
(1) For industry comparability, Revenue Payback is calculated as Creation Multiple divided by 12.
(2) IRR calculated using monthly cash flow detail not shown here.
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