MILWAUKEE, May 26, 2022 (GLOBE NEWSWIRE) -- Brady Corporation (NYSE: BRC) (“Brady” or “Company”), a world leader in identification solutions, today reported its financial results for its fiscal 2022 third quarter ended April 30, 2022.
Quarter Ended April 30, 2022 Financial Results:Sales for the quarter ended April 30, 2022 increased 14.6 percent, which consisted of an organic sales increase of 9.0 percent, an increase of 8.6 percent from acquisitions and a decrease of 3.0 percent from foreign currency translation. Sales for the quarter ended April 30, 2022 were $338.6 million compared to $295.5 million in the same quarter last year. By segment, sales increased 21.1 percent in Identification Solutions and decreased 3.9 percent in Workplace Safety, which consisted of an organic sales increase of 11.8 percent in Identification Solutions and an organic sales increase of 0.9 percent in Workplace Safety.Income before income taxes and losses of unconsolidated affiliate increased 7.3 percent to $51.3 million for the quarter ended April 30, 2022, compared to $47.8 million in the same quarter last year. Income Before Income Taxes Excluding Certain Items* for the quarter ended April 30, 2022, which was adjusted for non-recurring charges primarily to streamline the cost structure of our Workplace Safety business of $1.8 million and amortization expense of $3.7 million, was $56.8 million, an increase of 15.7 percent compared to the third quarter of last year. Income Before Income Taxes Excluding Certain Items* for the quarter ended April 30, 2021 was adjusted for amortization expense of $1.4 million.Net income for the quarter ended April 30, 2022 was $40.1 million compared to $37.3 million in the same quarter last year. Earnings per diluted Class A Nonvoting Common Share were $0.78 for the third quarter of fiscal 2022, compared to $0.71 in the same quarter last year. Net Income Excluding Certain Items* for the quarter ended April 30, 2022 was $44.2 million and Diluted EPS Excluding Certain Items* for the quarter ended April 30, 2022 was $0.86. Net Income Excluding Certain Items* for the quarter ended April 30, 2021 was $38.3 million and was adjusted for amortization expense of $1.0 million, and Diluted EPS Excluding Certain Items* for the quarter ended April 30, 2021 was $0.73 and was adjusted for amortization expense of $0.02.
Nine-Month Period Ended April 30, 2022 Financial Results:Sales for the nine-month period ended April 30, 2022 increased 16.6 percent, which consisted of an organic sales increase of 9.6 percent, an increase of 8.5 percent from acquisitions and a decrease of 1.5 percent from foreign currency translation. Sales for the nine months ended April 30, 2022 were $978.1 million compared to $838.6 million in the same period last year. By segment, sales increased 24.1 percent in Identification Solutions and decreased 3.4 percent in Workplace Safety, which consisted of an organic sales increase of 13.6 percent in Identification Solutions and an organic sales decline of 1.1 percent in Workplace Safety.Income before income taxes and losses of unconsolidated affiliate increased 6.6 percent to $138.0 million for the nine months ended April 30, 2022, compared to $129.4 million in the same period last year. Income Before Income Taxes Excluding Certain Items* for the nine months ended April 30, 2022 was $151.1 million, an increase of 13.2 percent compared to the same period of last year. Income Before Income Taxes Excluding Certain Items* was adjusted for non-recurring charges primarily to streamline the cost structure of our Workplace Safety business of $1.8 million and amortization expense of $11.3 million. Income Before Income Taxes Excluding Certain Items* for the prior year nine-month period ended April 30, 2021 was $133.5 million and was adjusted for amortization expense of $4.1 million.Net income for the nine-month period ended April 30, 2022 was $108.9 million compared to $101.6 million in the same period last year. Earnings per diluted Class A Nonvoting Common Share were $2.09 for the nine months ended April 30, 2022, compared to $1.94 in the same period last year. Net Income Excluding Certain Items* for the nine months ended April 30, 2022 was $118.9 million and Diluted EPS Excluding Certain Items* for the nine-month period ended April 30, 2022 was $2.28. Net Income Excluding Certain Items* for the nine months ended April 30, 2021 was $104.7 million and was adjusted for amortization expense of $3.0 million, and Diluted EPS Excluding Certain Items* for the nine-month period ended April 30, 2021 was $2.00 and was adjusted for amortization expense of $0.06.
Commentary: “We generated strong revenue growth of 14.6 percent and record non-GAAP EPS of $0.86 this quarter. Our strong sales growth was primarily driven by our Identification Solutions division which had total sales growth of 21.1 percent this quarter. We’ve been working to enhance our product offering and the three acquisitions we completed last year are contributing to this, while also helping shift Brady into faster-growing end markets,” said Brady’s President and Chief Executive Officer, Russell R. Shaller. “In our Workplace Safety division, we took actions to reposition our product offering, to deemphasize certain under-performing businesses, and to streamline our cost structure. These actions have been very positive resulting in the increase in Workplace Safety segment profit this quarter. As a result of our ongoing efficiency activities and pricing actions, we experienced a sequential improvement in our gross profit margin of 140 basis points from 47.0 percent for the quarter ended January 31, 2022, to 48.4 percent for the quarter ended April 30, 2022. Overall, Brady is performing at a high level with strong sales growth, record EPS and a strong foundation, which we believe sets the stage for positive future results.” “Not only did we have strong revenue growth and record EPS this quarter, we also used our strong cash generation to return funds to our shareholders in the form of share repurchases and continuing dividends. This quarter, we repurchased 1.4 million shares for $63.2 million and subsequent to quarter end, we repurchased another 0.2 million shares for $9.3 million,” said Brady’s Chief Financial Officer, Aaron Pearce. “Even after returning nearly $75 million to our shareholders in the form of dividends and buybacks, we still reduced our external borrowing this quarter and are in a net cash position. The macro environment continues to be highly uncertain, but we believe that we are well-positioned as we have built up inventory levels to ensure a steady supply of products to our customers and we are in a net cash position of $26.1 million at April 30, 2022, which provides many strategic alternatives to drive future shareholder value.”
Share Buyback Program:Prior to May 24, 2022, the Company completed its previously authorized share repurchase program. On May 24, 2022, Brady’s Board of Directors authorized an additional $100 million of Class A Common Stock for repurchase under the Company’s share buyback program. The share buyback plan may be implemented from time to time in the open market or in privately negotiated transactions and has no expiration date.
Fiscal 2022 Guidance:The Company’s earnings per diluted Class A Nonvoting Common Share on a GAAP basis was adjusted to a range of $2.83 to $2.92 per share, and earnings per diluted Class A Nonvoting Common Share, Excluding Certain Items* guidance was increased to a range of $3.08 to $3.17 per share, for the year ending July 31, 2022. This implies that we expect Diluted EPS Excluding Certain Items* to improve by 12% to 15% for the full year ending July 31, 2022 when compared to the adjusted fiscal 2021 diluted earnings per share of $2.75. Also included in our full-year fiscal 2022 guidance are a full-year income tax rate of approximately 21 percent and depreciation and amortization expense ranging from $34 million to $36 million. Capital expenditures, excluding facility purchases are expected to range from $20 million to $25 million during the year ending July 31, 2022. The Company’s fiscal 2022 guidance is based on foreign currency exchange rates as of April 30, 2022 and assumes continued economic growth.
A webcast regarding Brady’s fiscal 2022 third quarter financial results will be available at www.bradycorp.com/investors beginning at 9:30 a.m. central time today.
Brady Corporation is an international manufacturer and marketer of complete solutions that identify and protect people, products and places. Brady’s products help customers increase safety, security, productivity and performance and include high-performance labels, signs, safety devices, printing systems and software. Founded in 1914, the Company has a diverse customer base in electronics, telecommunications, manufacturing, electrical, construction, medical, aerospace and a variety of other industries. Brady is headquartered in Milwaukee, Wisconsin and as of July 31, 2021, employed approximately 5,700 people in its worldwide businesses. Brady’s fiscal 2021 sales were approximately $1.14 billion. Brady stock trades on the New York Stock Exchange under the symbol BRC. More information is available on the Internet at www.bradyid.com.
* Income Before Income Taxes Excluding Certain Items, Net Income Excluding Certain Items, and Diluted EPS Excluding Certain Items are non-GAAP measures. See appendix for more information on these measures, including reconciliations to the most directly comparable GAAP measures.
In this news release, statements that are not reported financial results or other historic information are “forward-looking statements.” These forward-looking statements relate to, among other things, the Company's future financial position, business strategy, targets, projected sales, costs, earnings, capital expenditures, debt levels and cash flows, and plans and objectives of management for future operations.
The use of words such as “may,” “will,” “expect,” “intend,” “estimate,” “anticipate,” “believe,” “should,” “project,” “continue” or “plan” or similar terminology are generally intended to identify forward-looking statements. These forward-looking statements by their nature address matters that are, to different degrees, uncertain and are subject to risks, assumptions, and other factors, some of which are beyond Brady’s control, that could cause actual results to differ materially from those expressed or implied by such forward-looking statements. For Brady, uncertainties arise from: adverse impacts of the novel coronavirus (“COVID-19”) pandemic or other pandemics; decreased demand for our products; our ability to compete effectively or to successfully execute our strategy; increased cost of raw materials, labor and freight as well as raw material shortages and supply chain disruptions; increased cost of raw materials, labor and freight as well as raw material shortages; Brady’s ability to properly identify, integrate, and grow acquired companies, and to manage contingent liabilities from divested businesses; difficulties in protecting our websites, networks, and systems against security breaches; risks associated with the loss of key employees; extensive regulations by U.S. and non-U.S. governmental and self-regulatory entities; litigation, including product liability claims; foreign currency fluctuations; potential write-offs of goodwill and other intangible assets; changes in tax legislation and tax rates; differing interests of voting and non-voting shareholders; numerous other matters of national, regional and global scale, including major public health crises and government responses thereto and those of a political, economic, business, competitive, and regulatory nature contained from time to time in Brady’s U.S. Securities and Exchange Commission filings, including, but not limited to, those factors listed in the “Risk Factors” section within Item 1A of Part I of Brady’s Form 10-K for the year ended July 31, 2021 and in any subsequent filings on Form 10-Q.
These uncertainties may cause Brady's actual future results to be materially different than those expressed in its forward-looking statements. Brady does not undertake to update its forward-looking statements except as required by law.
For More Information:Investor contact: Ann Thornton 414-438-6887Media contact: Kate Venne 414-358-5176
BRADY CORPORATION AND SUBSIDIARIES | |||||||||||||||
CONSOLIDATED STATEMENTS OF INCOME | |||||||||||||||
(Unaudited; Dollars in thousands, except per share data) | |||||||||||||||
Three months ended April 30, | Nine months ended April 30, | ||||||||||||||
2022 | 2021 | 2022 | 2021 | ||||||||||||
Net sales | $ | 338,551 | $ | 295,503 | $ | 978,081 | $ | 838,568 | |||||||
Cost of goods sold | 174,525 | 146,656 | 509,705 | 424,771 | |||||||||||
Gross margin | 164,026 | 148,847 | 468,376 | 413,797 | |||||||||||
Operating expenses: | |||||||||||||||
Research and development | 14,923 | 11,305 | 42,795 | 31,384 | |||||||||||
Selling, general and administrative | 96,214 | 90,817 | 285,485 | 256,088 | |||||||||||
Total operating expenses | 111,137 | 102,122 | 328,280 | 287,472 | |||||||||||
Operating income | 52,889 | 46,725 | 140,096 | 126,325 | |||||||||||
Other (expense) income: | |||||||||||||||
Investment and other (expense) income | (1,308 | ) | 1,181 | (1,343 | ) | 3,372 | |||||||||
Interest expense | (329 | ) | (131 | ) | (763 | ) | (288 | ) | |||||||
Income before income taxes and losses of unconsolidated affiliate | 51,252 | 47,775 | 137,990 | 129,409 | |||||||||||
Income tax expense | 11,198 | 10,229 | 29,075 | 27,017 | |||||||||||
Income before losses of unconsolidated affiliate | 40,054 | 37,546 | 108,915 | 102,392 | |||||||||||
Equity in losses of unconsolidated affiliate | — | (255 | ) | — | (760 | ) | |||||||||
Net income | $ | 40,054 | $ | 37,291 | $ | 108,915 | $ | 101,632 | |||||||
Net income per Class A Nonvoting Common Share: | |||||||||||||||
Basic | $ | 0.78 | $ | 0.72 | $ | 2.11 | $ | 1.95 | |||||||
Diluted | $ | 0.78 | $ | 0.71 | $ | 2.09 | $ | 1.94 | |||||||
Net income per Class B Voting Common Share: | |||||||||||||||
Basic | $ | 0.78 | $ | 0.72 | $ | 2.09 | $ | 1.94 | |||||||
Diluted | $ | 0.78 | $ | 0.71 | $ | 2.08 | $ | 1.93 | |||||||
Weighted average common shares outstanding: | |||||||||||||||
Basic | 51,326 | 52,050 | 51,700 | 52,030 | |||||||||||
Diluted | 51,568 | 52,449 | 52,055 | 52,341 | |||||||||||
BRADY CORPORATION AND SUBSIDIARIES | |||||||
CONSOLIDATED BALANCE SHEETS | |||||||
(Dollars in thousands) | |||||||
April 30, 2022 | July 31, 2021 | ||||||
(Unaudited) | |||||||
ASSETS | |||||||
Current assets: | |||||||
Cash and cash equivalents | $ | 103,068 | $ | 147,335 | |||
Accounts receivable, net of allowance for credit losses of $7,891 and $7,306 respectively | 186,843 | 170,579 | |||||
Inventories | 177,156 | 136,107 | |||||
Prepaid expenses and other current assets | 12,550 | 11,083 | |||||
Total current assets | 479,617 | 465,104 | |||||
Property, plant and equipment—net | 125,014 | 121,741 | |||||
Goodwill | 591,780 | 614,137 | |||||
Other intangible assets | 78,238 | 92,334 | |||||
Deferred income taxes | 14,804 | 16,343 | |||||
Operating lease assets | 30,466 | 41,880 | |||||
Other assets | 24,325 | 26,217 | |||||
Total | $ | 1,344,244 | $ | 1,377,756 | |||
LIABILITIES AND STOCKHOLDERS’ EQUITY | |||||||
Current liabilities: | |||||||
Accounts payable | $ | 79,567 | $ | 82,152 | |||
Accrued compensation and benefits | 70,195 | 81,173 | |||||
Taxes, other than income taxes | 12,910 | 13,054 | |||||
Accrued income taxes | 4,264 | 3,915 | |||||
Current operating lease liabilities | 15,619 | 17,667 | |||||
Other current liabilities | 61,215 | 59,623 | |||||
Total current liabilities | 243,770 | 257,584 | |||||
Long-term debt | 77,000 | 38,000 | |||||
Long-term operating lease liabilities | 17,591 | 28,347 | |||||
Other liabilities | 91,645 | 90,797 | |||||
Total liabilities | 430,006 | 414,728 | |||||
Stockholders’ equity: | |||||||
Common stock: | |||||||
Class A nonvoting common stock—Issued 51,261,487 shares, | |||||||
and outstanding 46,890,714 and 48,528,245 shares, respectively | 513 | 513 | |||||
Class B voting common stock—Issued and outstanding, 3,538,628 shares | 35 | 35 | |||||
Additional paid-in capital | 343,854 | 339,125 | |||||
Retained earnings | 862,583 | 788,369 | |||||
Treasury stock—4,370,773 and 2,733,242 shares, respectively, of Class A nonvoting | |||||||
common stock, at cost | (193,859 | ) | (109,061 | ) | |||
Accumulated other comprehensive loss | (98,888 | ) | (55,953 | ) | |||
Total stockholders’ equity | 914,238 | 963,028 | |||||
Total | $ | 1,344,244 | $ | 1,377,756 | |||
BRADY CORPORATION AND SUBSIDIARIES | |||||||
CONSOLIDATED STATEMENTS OF CASH FLOWS | |||||||
(Unaudited; Dollars in thousands) | |||||||
Nine months ended April 30, | |||||||
2022 | 2021 | ||||||
Operating activities: | |||||||
Net income | $ | 108,915 | $ | 101,632 | |||
Adjustments to reconcile net income to net cash provided by operating activities: | |||||||
Depreciation and amortization | 25,448 | 17,240 | |||||
Stock-based compensation expense | 9,153 | 8,003 | |||||
Deferred income taxes | 2,858 | (3,957 | ) | ||||
Equity in losses of unconsolidated affiliate | — | 760 | |||||
Other | (1,080 | ) | (1,186 | ) | |||
Changes in operating assets and liabilities: | |||||||
Accounts receivable | (26,438 | ) | (13,247 | ) | |||
Inventories | (47,784 | ) | 15,210 | ||||
Prepaid expenses and other assets | (932 | ) | (2,584 | ) | |||
Accounts payable and accrued liabilities | (5,584 | ) | 39,244 | ||||
Income taxes | 680 | (6,207 | ) | ||||
Net cash provided by operating activities | 65,236 | 154,908 | |||||
Investing activities: | |||||||
Purchases of property, plant and equipment | (22,130 | ) | (21,411 | ) | |||
Other | 59 | 2,567 | |||||
Net cash used in investing activities | (22,071 | ) | (18,844 | ) | |||
Financing activities: | |||||||
Payment of dividends | (34,701 | ) | (34,290 | ) | |||
Proceeds from exercise of stock options | 663 | 1,612 | |||||
Payments for employee taxes withheld from stock-based awards | (5,070 | ) | (2,772 | ) | |||
Purchase of treasury stock | (84,930 | ) | (3,593 | ) | |||
Proceeds from borrowing on credit facilities | 155,216 | 19,957 | |||||
Repayment of borrowing on credit facilities | (116,216 | ) | (20,220 | ) | |||
Other | 3,276 | 32 | |||||
Net cash used in financing activities | (81,762 | ) | (39,274 | ) | |||
Effect of exchange rate changes on cash | (5,670 | ) | 7,368 | ||||
Net (decrease) increase in cash and cash equivalents | (44,267 | ) | 104,158 | ||||
Cash and cash equivalents, beginning of period | 147,335 | 217,643 | |||||
Cash and cash equivalents, end of period | $ | 103,068 | $ | 321,801 | |||
BRADY CORPORATION AND SUBSIDIARIES | |||||||||||||||
SEGMENT INFORMATION | |||||||||||||||
(Unaudited; Dollars in thousands) | |||||||||||||||
Three months ended April 30, | Nine months ended April 30, | ||||||||||||||
2022 | 2021 | 2022 | 2021 | ||||||||||||
NET SALES | |||||||||||||||
ID Solutions | $ | 264,124 | $ | 218,065 | $ | 757,727 | $ | 610,484 | |||||||
Workplace Safety | 74,427 | 77,438 | 220,354 | 228,084 | |||||||||||
Total | $ | 338,551 | $ | 295,503 | $ | 978,081 | $ | 838,568 | |||||||
SALES INFORMATION | |||||||||||||||
ID Solutions | |||||||||||||||
Organic | 11.8 | % | 9.8 | % | 13.6 | % | (2.1 | )% | |||||||
Acquisition | 11.7 | % | — | % | 11.8 | % | — | % | |||||||
Currency | (2.4 | )% | 3.1 | % | (1.3 | )% | 1.6 | % | |||||||
Total | 21.1 | % | 12.9 | % | 24.1 | % | (0.5 | )% | |||||||
Workplace Safety | |||||||||||||||
Organic | 0.9 | % | (2.2 | )% | (1.1 | )% | (0.5 | )% | |||||||
Currency | (4.8 | )% | 8.6 | % | (2.3 | )% | 6.1 | % | |||||||
Total | (3.9 | )% | 6.4 | % | (3.4 | )% | 5.6 | % | |||||||
Total Company | |||||||||||||||
Organic | 9.0 | % | 6.5 | % | 9.6 | % | (1.7 | )% | |||||||
Acquisition | 8.6 | % | — | % | 8.5 | % | — | % | |||||||
Currency | (3.0 | )% | 4.6 | % | (1.5 | )% | 2.8 | % | |||||||
Total | 14.6 | % | 11.1 | % | 16.6 | % | 1.1 | % | |||||||
SEGMENT PROFIT | |||||||||||||||
ID Solutions | $ | 53,962 | $ | 47,539 | $ | 146,907 | $ | 126,818 | |||||||
Workplace Safety | 7,109 | 5,656 | 13,917 | 17,107 | |||||||||||
Total | $ | 61,071 | $ | 53,195 | $ | 160,824 | $ | 143,925 | |||||||
SEGMENT PROFIT AS A PERCENT OF NET SALES | |||||||||||||||
ID Solutions | 20.4 | % | 21.8 | % | 19.4 | % | 20.8 | % | |||||||
Workplace Safety | 9.6 | % | 7.3 | % | 6.3 | % | 7.5 | % | |||||||
Total | 18.0 | % | 18.0 | % | 16.4 | % | 17.2 | % | |||||||
Three months ended April 30, | Nine months ended April 30, | ||||||||||||||
2022 | 2021 | 2022 | 2021 | ||||||||||||
Total segment profit | $ | 61,071 | $ | 53,195 | $ | 160,824 | $ | 143,925 | |||||||
Unallocated amounts: | |||||||||||||||
Administrative costs | (8,182 | ) | (6,470 | ) | (20,728 | ) | (17,600 | ) | |||||||
Investment and other (expense) income | (1,308 | ) | 1,181 | (1,343 | ) | 3,372 | |||||||||
Interest expense | (329 | ) | (131 | ) | (763 | ) | (288 | ) | |||||||
Income before income taxes and losses of unconsolidated affiliate | $ | 51,252 | $ | 47,775 | $ | 137,990 | $ | 129,409 | |||||||
GAAP to NON-GAAP MEASURES | |||||||||||||||
(Unaudited; Dollars in Thousands, Except Per Share Amounts) | |||||||||||||||
In accordance with the U.S. Securities and Exchange Commission’s Regulation G, the following provides definitions of the non-GAAP measures used in the earnings release and the reconciliation to the most closely related GAAP measure. | |||||||||||||||
Income Before Income Taxes Excluding Certain Items: | |||||||||||||||
Brady is presenting the non-GAAP measure, "Income Before Income Taxes Excluding Certain Items." This is not a calculation based upon GAAP. The amounts included in this non-GAAP measure are derived from amounts included in the Consolidated Financial Statements and supporting footnote disclosures. We do not view these items to be part of our ongoing results. We believe this profit measure provides an important perspective of underlying business trends and results and provides a more comparable measure from year to year. The table below provides a reconciliation of the GAAP measure of Income before income taxes and losses of unconsolidated affiliate to the non-GAAP measure of Income Before Income Taxes Excluding Certain Items: | |||||||||||||||
Three months ended April 30, | Nine months ended April 30, | ||||||||||||||
2022 | 2021 | 2022 | 2021 | ||||||||||||
Income before income taxes and losses of unconsolidated affiliate (GAAP measure) | $ | 51,252 | $ | 47,775 | $ | 137,990 | $ | 129,409 | |||||||
Amortization expense | 3,735 | 1,352 | 11,291 | 4,056 | |||||||||||
Other non-routine charges | 1,841 | - | 1,841 | - | |||||||||||
Income Before Income Taxes Excluding Certain Items (non-GAAP measure) | $ | 56,828 | $ | 49,127 | $ | 151,122 | $ | 133,465 | |||||||
Income Tax Expense Excluding Certain Items: | |||||||||||||||
Brady is presenting the non-GAAP measure, "Income Tax Expense Excluding Certain Items." This is not a calculation based upon GAAP. The amounts included in this non-GAAP measure are derived from amounts included in the Consolidated Financial Statements and supporting footnote disclosures. We do not view these items to be part of our ongoing results. We believe this measure provides an important perspective of underlying business trends and results and provides a more comparable measure from year to year. The table below provides a reconciliation of the GAAP measure of Income tax expense to the non-GAAP measure of Income Tax Expense Excluding Certain Items: | |||||||||||||||
Three months ended April 30, | Nine months ended April 30, | ||||||||||||||
2022 | 2021 | 2022 | 2021 | ||||||||||||
Income tax expense (GAAP measure) | $ | 11,198 | $ | 8,206 | $ | 29,075 | $ | 27,017 | |||||||
Amortization expense | 885 | 338 | 2,672 | 1,014 | |||||||||||
Other non-routine charges | 496 | - | 496 | - | |||||||||||
Income Tax Expense Excluding Certain Items (non-GAAP measure) | $ | 12,579 | $ | 8,544 | $ | 32,243 | $ | 28,031 | |||||||
Net Income Excluding Certain Items: | |||||||||||||||
Brady is presenting the non-GAAP measure, "Net Income Excluding Certain Items." This is not a calculation based upon GAAP. The amounts included in this non-GAAP measure are derived from amounts included in the Consolidated Financial Statements and supporting footnote disclosures. We do not view these items to be part of our ongoing results. We believe this measure provides an important perspective of underlying business trends and results and provides a more comparable measure from year to year. The table below provides a reconciliation of the GAAP measure of Net income to the non-GAAP measure of Net Income Excluding Certain Items: | |||||||||||||||
Three months ended April 30, | Nine months ended April 30, | ||||||||||||||
2022 | 2021 | 2022 | 2021 | ||||||||||||
Net income (GAAP measure) | $ | 40,054 | $ | 37,291 | $ | 108,915 | $ | 101,632 | |||||||
Amortization expense | 2,850 | 1,014 | 8,619 | 3,042 | |||||||||||
Other non-routine charges | 1,345 | - | 1,345 | - | |||||||||||
Net Income Excluding Certain Items (non-GAAP measure) | $ | 44,249 | $ | 38,305 | $ | 118,879 | $ | 104,674 | |||||||
Diluted EPS Excluding Certain Items: | |||||||||||||||
Brady is presenting the non-GAAP measure, "Diluted EPS Excluding Certain Items." This is not a calculation based upon GAAP. The amounts included in this non-GAAP measure are derived from amounts included in the Consolidated Financial Statements. We do not view these items to be part of our ongoing results. We believe this measure provides an important perspective of underlying business trends and results and provides a more comparable measure from year to year. The table below provides a reconciliation of the GAAP measure of Net income per Class A Nonvoting Common Share to the non-GAAP measure of Diluted EPS Excluding Certain Items: | |||||||||||||||
Three months ended April 30, | Nine months ended April 30, | ||||||||||||||
2022 | 2021 | 2022 | 2021 | ||||||||||||
Net income per Class A Nonvoting Common Share (GAAP measure) | $ | 0.78 | $ | 0.71 | $ | 2.09 | $ | 1.94 | |||||||
Amortization expense | 0.06 | 0.02 | 0.17 | 0.06 | |||||||||||
Other non-routine charges | 0.03 | - | $ | 0.03 | - | ||||||||||
Diluted EPS Excluding Certain Items (non-GAAP measure) | $ | 0.86 | $ | 0.73 | $ | 2.28 | $ | 2.00 | |||||||
Diluted EPS Excluding Certain Items Guidance: | Fiscal 2022 Expectations | ||||||||||||||
Low | High | ||||||||||||||
Earnings per diluted Class A Common Share (GAAP measure) | $ | 2.83 | $ | 2.92 | |||||||||||
Amortization expense | 0.22 | 0.22 | |||||||||||||
Other non-routine charges | 0.03 | 0.03 | |||||||||||||
Diluted EPS Excluding Certain Items (non-GAAP measure) | $ | 3.08 | $ | 3.17 | |||||||||||
МИЛУОКИ, 26 мая 2022 г. (GLOBE NEWSWIRE) -- Корпорация Brady (NYSE: BRC) (“Brady” или “Компания”), мировой лидер в области решений для идентификации, сегодня сообщила о своих финансовых результатах за третий квартал 2022 финансового года, закончившийся 30 апреля 2022 года.
Финансовые результаты за квартал, закончившийся 30 апреля 2022 года: Продажи за квартал, закончившийся 30 апреля 2022 года, выросли на 14,6 процента, что обусловлено органическим увеличением продаж на 9,0 процента, увеличением на 8,6 процента за счет приобретений и снижением на 3,0 процента за счет пересчета иностранной валюты. Продажи за квартал, закончившийся 30 апреля 2022 года, составили 338,6 миллиона долларов по сравнению с 295,5 миллионами долларов в том же квартале прошлого года. В разбивке по сегментам продажи решений для идентификации выросли на 21,1 процента, а в области безопасности на рабочем месте снизились на 3,9 процента, что обусловлено органическим увеличением продаж решений для идентификации на 11,8 процента и органическим увеличением продаж на 0,9 процента в области Безопасности на рабочем месте.Доход до вычета налогов на прибыль и убытков неконсолидированной дочерней компании увеличился на 7,3 процента до 51,3 миллиона долларов за квартал, закончившийся 30 апреля 2022 года, по сравнению с 47,8 миллионами долларов в том же квартале прошлого года. Доход до вычета подоходного налога За исключением определенных статей* за квартал, закончившийся 30 апреля 2022 года, который был скорректирован с учетом единовременных платежей, главным образом для оптимизации структуры затрат нашего бизнеса по обеспечению безопасности на рабочем месте в размере 1,8 млн долларов США и амортизационных расходов в размере 3,7 млн долларов США, составил 56,8 млн долларов США, увеличившись на 15,7% по сравнению с третий квартал прошлого года. Доход До вычета подоходного налога За исключением определенных статей* за квартал, закончившийся 30 апреля 2021 года, был скорректирован с учетом расходов на амортизацию в размере 1,4 млн. долл.Чистая прибыль за квартал, закончившийся 30 апреля 2022 года, составила $40,1 млн по сравнению с $37,3 млн в том же квартале прошлого года. Прибыль на разводненную обыкновенную акцию класса А без права голоса составила $0,78 в третьем квартале 2022 финансового года по сравнению с $0,71 в том же квартале прошлого года. Чистая прибыль Без учета определенных статей* за квартал, закончившийся 30 апреля 2022 года, составила $44,2 млн, а разводненная прибыль на акцию Без учета определенных статей* за квартал, закончившийся 30 апреля 2022 года, составила $0,86. Чистая прибыль без учета определенных статей* за квартал, закончившийся 30 апреля 2021 года, составила $38,3 млн и была скорректирована на амортизационные расходы в размере $1,0 млн, а разводненная прибыль на акцию Без учета определенных статей* за квартал, закончившийся 30 апреля 2021 года, составила $0,73 и была скорректирована на амортизационные расходы в размере $0,02.
Финансовые результаты за девять месяцев, закончившихся 30 апреля 2022 года: Продажи за девять месяцев, закончившихся 30 апреля 2022 года, выросли на 16,6 процента, что включало органический рост продаж на 9,6 процента, увеличение на 8,5 процента за счет приобретений и снижение на 1,5 процента за счет пересчета иностранной валюты. Продажи за девять месяцев, закончившихся 30 апреля 2022 года, составили 978,1 миллиона долларов по сравнению с 838,6 миллиона долларов за аналогичный период прошлого года. В разбивке по сегментам продажи решений для идентификации выросли на 24,1 процента, а в области безопасности на рабочем месте снизились на 3,4 процента, что обусловлено органическим увеличением продаж решений для идентификации на 13,6 процента и органическим снижением продаж на 1,1 процента в области Безопасности на рабочем месте.Доход до вычета налогов на прибыль и убытков неконсолидированной дочерней компании увеличился на 6,6 процента до 138,0 миллиона долларов за девять месяцев, закончившихся 30 апреля 2022 года, по сравнению с 129,4 миллиона долларов за аналогичный период прошлого года. Доход до вычета подоходного налога За исключением определенных статей* за девять месяцев, закончившихся 30 апреля 2022 года, составил 151,1 миллиона долларов, увеличившись на 13,2 процента по сравнению с аналогичным периодом прошлого года. Доход до вычета подоходного налога, за исключением определенных статей*, был скорректирован с учетом единовременных расходов, главным образом для оптимизации структуры затрат нашего бизнеса по обеспечению безопасности на рабочем месте в размере 1,8 млн долларов США и расходов на амортизацию в размере 11,3 млн долларов США. Доход до вычета подоходного налога За исключением определенных статей* за девятимесячный период предыдущего года, закончившийся 30 апреля 2021 года, составил 133,5 миллиона долларов и был скорректирован на амортизационные расходы в размере 4,1 миллиона долларов.Чистая прибыль за девятимесячный период, закончившийся 30 апреля 2022 года, составила $108,9 млн по сравнению с $101,6 млн за аналогичный период прошлого года. Прибыль на разводненную обыкновенную акцию класса А без права голоса составила $2,09 за девять месяцев, закончившихся 30 апреля 2022 года, по сравнению с $1,94 за аналогичный период прошлого года. Чистая прибыль Без учета определенных статей* за девять месяцев, закончившихся 30 апреля 2022 года, составила $118,9 млн, а разводненная прибыль на акцию без учета определенных статей* за девять месяцев, закончившихся 30 апреля 2022 года, составила $2,28. Чистая прибыль без учета определенных статей* за девять месяцев, закончившихся 30 апреля 2021 года, составила $104,7 млн и была скорректирована на амортизационные расходы в размере $3,0 млн, а разводненная прибыль на акцию Без учета определенных статей* за девять месяцев, закончившихся 30 апреля 2021 года, составила $2,00 и была скорректирована на амортизационные расходы в размере $0,06.
Комментарий: “В этом квартале мы обеспечили значительный рост выручки на 14,6 процента и рекордную прибыль на акцию без учета GAAP в размере 0,86 доллара США. Наш сильный рост продаж был в первую очередь обусловлен нашим подразделением решений для идентификации, общий рост продаж которого в этом квартале составил 21,1 процента. Мы работаем над расширением нашего продуктового предложения, и три приобретения, которые мы завершили в прошлом году, способствуют этому, а также помогают вывести Brady на быстрорастущие конечные рынки”, - сказал президент и главный исполнительный директор Brady Рассел Р. Шаллер. “В нашем подразделении по безопасности на рабочем месте мы предприняли действия по изменению ассортимента нашей продукции, чтобы уменьшить акцент на некоторых неэффективных предприятиях и оптимизировать нашу структуру затрат. Эти действия были очень позитивными, что привело к увеличению прибыли сегмента безопасности на рабочем месте в этом квартале. В результате нашей постоянной деятельности по повышению эффективности и ценообразованию мы добились последовательного улучшения нашей нормы валовой прибыли на 140 базисных пунктов с 47,0 процента за квартал, закончившийся 31 января 2022 года, до 48,4 процента за квартал, закончившийся 30 апреля 2022 года. В целом, Brady работает на высоком уровне с сильным ростом продаж, рекордной прибылью на акцию и прочным фундаментом, который, по нашему мнению, закладывает основу для положительных будущих результатов”. “В этом квартале мы не только добились значительного роста выручки и рекордной прибыли на акцию, но и использовали нашу сильную генерацию денежных средств для возврата средств нашим акционерам в форме выкупа акций и продолжения выплаты дивидендов. В этом квартале мы выкупили 1,4 миллиона акций за 63,2 миллиона долларов, а после окончания квартала мы выкупили еще 0,2 миллиона акций за 9,3 миллиона долларов”, - сказал финансовый директор Brady Аарон Пирс. “Даже после возврата почти 75 миллионов долларов нашим акционерам в виде дивидендов и обратного выкупа, мы по-прежнему сократили наши внешние заимствования в этом квартале и находимся в чистой денежной позиции. Макроэкономическая среда по-прежнему остается крайне неопределенной, но мы считаем, что у нас хорошие позиции, поскольку мы нарастили запасы, чтобы обеспечить стабильные поставки продукции нашим клиентам, и по состоянию на 30 апреля 2022 года у нас чистая денежная позиция в размере 26,1 миллиона долларов, что предоставляет множество стратегических альтернатив для стимулирования будущая акционерная стоимость”.
Программа обратного выкупа акций: До 24 мая 2022 года Компания завершила свою ранее утвержденную программу обратного выкупа акций. 24 мая 2022 года Совет директоров Brady санкционировал дополнительный выкуп обыкновенных акций класса А на сумму 100 миллионов долларов США в рамках программы обратного выкупа акций Компании. План обратного выкупа акций может время от времени реализовываться на открытом рынке или в рамках сделок, заключенных в частном порядке, и не имеет срока действия.
Прогноз на 2022 финансовый год: Прибыль Компании на разводненную обыкновенную акцию класса А без права голоса на основе GAAP была скорректирована до диапазона от 2,83 до 2,92 доллара на акцию, а прибыль на разводненную обыкновенную акцию класса А без права голоса, исключая некоторые статьи* Прогноз был увеличен до диапазона от 3,08 до 3,17 доллара на акцию. доля за год, закончившийся 31 июля 2022 года. Это означает, что мы ожидаем, что разводненная прибыль на акцию без учета определенных статей* увеличится на 12-15% за весь год, заканчивающийся 31 июля 2022 года, по сравнению с скорректированной разводненной прибылью на акцию в 2021 финансовом году в размере 2,75 доллара США. В наши рекомендации на 2022 финансовый год также включены годовая ставка подоходного налога в размере примерно 21 процента и расходы на амортизацию в размере от 34 до 36 миллионов долларов. Ожидается, что капитальные затраты, за исключением закупок оборудования, составят от 20 до 25 миллионов долларов в течение года, заканчивающегося 31 июля 2022 года. Прогноз Компании на 2022 финансовый год основан на обменных курсах иностранных валют по состоянию на 30 апреля 2022 года и предполагает продолжение экономического роста.
Веб-трансляция финансовых результатов Brady за третий квартал 2022 финансового года будет доступна по адресу www.bradycorp.com/investors начало сегодня в 9:30 утра по центральному времени.
Корпорация Brady является международным производителем и поставщиком комплексных решений, которые идентифицируют и защищают людей, продукты и места. Продукты Brady помогают клиентам повысить безопасность, надежность, производительность и производительность и включают в себя высокопроизводительные этикетки, вывески, защитные устройства, системы печати и программное обеспечение. Основанная в 1914 году, компания имеет разнообразную клиентскую базу в области электроники, телекоммуникаций, производства, электротехники, строительства, медицины, аэрокосмической и множества других отраслей промышленности. Штаб-квартира Brady находится в Милуоки, штат Висконсин, и по состоянию на 31 июля 2021 года в ее компаниях по всему миру работало около 5700 человек. Объем продаж Brady в 2021 финансовом году составил примерно 1,14 миллиарда долларов. Акции Brady торгуются на Нью-Йоркской фондовой бирже под символом BRC. Более подробная информация доступна в Интернете по адресу www.bradyid.com .
* Доход До вычета налогов на прибыль Без учета Определенных Статей, Чистая прибыль Без учета Определенных Статей и Разводненная прибыль на акцию Без учета Определенных Статей не являются показателями GAAP. См. Приложение для получения дополнительной информации об этих показателях, включая сверку с наиболее непосредственно сопоставимыми показателями GAAP.
В этом пресс-релизе заявления, в которых не сообщается о финансовых результатах или другой исторической информации, являются “прогнозными заявлениями”. Эти прогнозные заявления касаются, среди прочего, будущего финансового положения Компании, бизнес-стратегии, целей, прогнозируемых продаж, затрат, прибыли, капитальных затрат, уровня задолженности и денежных потоков, а также планов и целей руководства в отношении будущих операций.
Использование таких слов, как “может”, “будет”, “ожидать”, “намереваться”, “оценивать”, “предвидеть”, “полагать”, “должен”, “проект”, “продолжать” или “планировать” или аналогичная терминология, как правило, предназначены для определения перспективных заявления. Эти прогнозные заявления по своей природе касаются вопросов, которые в разной степени неопределенны и подвержены рискам, допущениям и другим факторам, некоторые из которых находятся вне контроля Brady, что может привести к тому, что фактические результаты будут существенно отличаться от тех, которые выражены или подразумеваются в таких прогнозных заявлениях. Для Brady, неопределенности возникают вследствие: воздействия нового коронавируса (“COVID-19”) пандемии или других пандемий; снижение спроса на нашу продукцию, наша способность эффективно конкурировать или для успешного выполнения стратегии; увеличение стоимости сырья, рабочей силы и грузов, а также сырье, дефицит и управление цепочками поставок, перебои; увеличение стоимости сырья, рабочей силы и грузов, а также сырья дефицита; Brady умения правильно выявлять, учитывать и расти приобретенных компаний, и для выполнения условных обязательств от продаваемого бизнеса; трудности в защите наших сайтов, сетей и систем от несанкционированного доступа; риски, связанные с потерей ключевых сотрудников; подробные правила на США или правительственными и саморегулируемых организаций; судебные споры, в том числе об ответственности за качество продукции требований; валютные колебания; потенциальные списания гудвилла и других нематериальных активов; изменение налогового законодательства и налоговых ставок; различные интересы голосующие и неголосующие акционеры; многочисленные вопросы, национального, регионального и глобального масштаба, в том числе крупные кризисы в области общественного здравоохранения и правительства, ответы на них и те, политической, экономической, деловой, конкурентной и нормативно-правового характера, содержащиеся время от времени в Brady по ценным бумагам и биржам США Комиссия заявок, в том числе, но не ограничиваясь, тех факторов, перечисленных в разделе “Факторы риска” разделе в пункте 1А раздела I Brady по форме 10-K за год, закончившийся 31 июля 2021 года и в любых последующих заявок по форме 10-Q.
Эти неопределенности могут привести к тому, что фактические будущие результаты Brady будут существенно отличаться от тех, которые указаны в его прогнозных заявлениях. Brady не обязуется обновлять свои прогнозные заявления, за исключением случаев, предусмотренных законом.
Для получения дополнительной информации: Контактное лицо для инвесторов: Энн Торнтон 414-438-6887 Контактное лицо для СМИ: Кейт Венн 414-358-5176
Brady CORPORATION AND SUBSIDIARIES | |||||||||||||||
CONSOLIDATED STATEMENTS OF INCOME | |||||||||||||||
(Unaudited; Dollars in thousands, except per share data) | |||||||||||||||
Three months ended April 30, | Nine months ended April 30, | ||||||||||||||
2022 | 2021 | 2022 | 2021 | ||||||||||||
Net sales | $ | 338,551 | $ | 295,503 | $ | 978,081 | $ | 838,568 | |||||||
Cost of goods sold | 174,525 | 146,656 | 509,705 | 424,771 | |||||||||||
Gross margin | 164,026 | 148,847 | 468,376 | 413,797 | |||||||||||
Operating expenses: | |||||||||||||||
Research and development | 14,923 | 11,305 | 42,795 | 31,384 | |||||||||||
Selling, general and administrative | 96,214 | 90,817 | 285,485 | 256,088 | |||||||||||
Total operating expenses | 111,137 | 102,122 | 328,280 | 287,472 | |||||||||||
Operating income | 52,889 | 46,725 | 140,096 | 126,325 | |||||||||||
Other (expense) income: | |||||||||||||||
Investment and other (expense) income | (1,308 | ) | 1,181 | (1,343 | ) | 3,372 | |||||||||
Interest expense | (329 | ) | (131 | ) | (763 | ) | (288 | ) | |||||||
Income before income taxes and losses of unconsolidated affiliate | 51,252 | 47,775 | 137,990 | 129,409 | |||||||||||
Income tax expense | 11,198 | 10,229 | 29,075 | 27,017 | |||||||||||
Income before losses of unconsolidated affiliate | 40,054 | 37,546 | 108,915 | 102,392 | |||||||||||
Equity in losses of unconsolidated affiliate | — | (255 | ) | — | (760 | ) | |||||||||
Net income | $ | 40,054 | $ | 37,291 | $ | 108,915 | $ | 101,632 | |||||||
Net income per Class A Nonvoting Common Share: | |||||||||||||||
Basic | $ | 0.78 | $ | 0.72 | $ | 2.11 | $ | 1.95 | |||||||
Diluted | $ | 0.78 | $ | 0.71 | $ | 2.09 | $ | 1.94 | |||||||
Net income per Class B Voting Common Share: | |||||||||||||||
Basic | $ | 0.78 | $ | 0.72 | $ | 2.09 | $ | 1.94 | |||||||
Diluted | $ | 0.78 | $ | 0.71 | $ | 2.08 | $ | 1.93 | |||||||
Weighted average common shares outstanding: | |||||||||||||||
Basic | 51,326 | 52,050 | 51,700 | 52,030 | |||||||||||
Diluted | 51,568 | 52,449 | 52,055 | 52,341 | |||||||||||
Brady CORPORATION AND SUBSIDIARIES | |||||||
CONSOLIDATED BALANCE SHEETS | |||||||
(Dollars in thousands) | |||||||
April 30, 2022 | July 31, 2021 | ||||||
(Unaudited) | |||||||
ASSETS | |||||||
Current assets: | |||||||
Cash and cash equivalents | $ | 103,068 | $ | 147,335 | |||
Accounts receivable, net of allowance for credit losses of $7,891 and $7,306 respectively | 186,843 | 170,579 | |||||
Inventories | 177,156 | 136,107 | |||||
Prepaid expenses and other current assets | 12,550 | 11,083 | |||||
Total current assets | 479,617 | 465,104 | |||||
Property, plant and equipment—net | 125,014 | 121,741 | |||||
Goodwill | 591,780 | 614,137 | |||||
Other intangible assets | 78,238 | 92,334 | |||||
Deferred income taxes | 14,804 | 16,343 | |||||
Operating lease assets | 30,466 | 41,880 | |||||
Other assets | 24,325 | 26,217 | |||||
Total | $ | 1,344,244 | $ | 1,377,756 | |||
LIABILITIES AND STOCKHOLDERS’ EQUITY | |||||||
Current liabilities: | |||||||
Accounts payable | $ | 79,567 | $ | 82,152 | |||
Accrued compensation and benefits | 70,195 | 81,173 | |||||
Taxes, other than income taxes | 12,910 | 13,054 | |||||
Accrued income taxes | 4,264 | 3,915 | |||||
Current operating lease liabilities | 15,619 | 17,667 | |||||
Other current liabilities | 61,215 | 59,623 | |||||
Total current liabilities | 243,770 | 257,584 | |||||
Long-term debt | 77,000 | 38,000 | |||||
Long-term operating lease liabilities | 17,591 | 28,347 | |||||
Other liabilities | 91,645 | 90,797 | |||||
Total liabilities | 430,006 | 414,728 | |||||
Stockholders’ equity: | |||||||
Common stock: | |||||||
Class A nonvoting common stock—Issued 51,261,487 shares, | |||||||
and outstanding 46,890,714 and 48,528,245 shares, respectively | 513 | 513 | |||||
Class B voting common stock—Issued and outstanding, 3,538,628 shares | 35 | 35 | |||||
Additional paid-in capital | 343,854 | 339,125 | |||||
Retained earnings | 862,583 | 788,369 | |||||
Treasury stock—4,370,773 and 2,733,242 shares, respectively, of Class A nonvoting | |||||||
common stock, at cost | (193,859 | ) | (109,061 | ) | |||
Accumulated other comprehensive loss | (98,888 | ) | (55,953 | ) | |||
Total stockholders’ equity | 914,238 | 963,028 | |||||
Total | $ | 1,344,244 | $ | 1,377,756 | |||
Brady CORPORATION AND SUBSIDIARIES | |||||||
CONSOLIDATED STATEMENTS OF CASH FLOWS | |||||||
(Unaudited; Dollars in thousands) | |||||||
Nine months ended April 30, | |||||||
2022 | 2021 | ||||||
Operating activities: | |||||||
Net income | $ | 108,915 | $ | 101,632 | |||
Adjustments to reconcile net income to net cash provided by operating activities: | |||||||
Depreciation and amortization | 25,448 | 17,240 | |||||
Stock-based compensation expense | 9,153 | 8,003 | |||||
Deferred income taxes | 2,858 | (3,957 | ) | ||||
Equity in losses of unconsolidated affiliate | — | 760 | |||||
Other | (1,080 | ) | (1,186 | ) | |||
Changes in operating assets and liabilities: | |||||||
Accounts receivable | (26,438 | ) | (13,247 | ) | |||
Inventories | (47,784 | ) | 15,210 | ||||
Prepaid expenses and other assets | (932 | ) | (2,584 | ) | |||
Accounts payable and accrued liabilities | (5,584 | ) | 39,244 | ||||
Income taxes | 680 | (6,207 | ) | ||||
Net cash provided by operating activities | 65,236 | 154,908 | |||||
Investing activities: | |||||||
Purchases of property, plant and equipment | (22,130 | ) | (21,411 | ) | |||
Other | 59 | 2,567 | |||||
Net cash used in investing activities | (22,071 | ) | (18,844 | ) | |||
Financing activities: | |||||||
Payment of dividends | (34,701 | ) | (34,290 | ) | |||
Proceeds from exercise of stock options | 663 | 1,612 | |||||
Payments for employee taxes withheld from stock-based awards | (5,070 | ) | (2,772 | ) | |||
Purchase of treasury stock | (84,930 | ) | (3,593 | ) | |||
Proceeds from borrowing on credit facilities | 155,216 | 19,957 | |||||
Repayment of borrowing on credit facilities | (116,216 | ) | (20,220 | ) | |||
Other | 3,276 | 32 | |||||
Net cash used in financing activities | (81,762 | ) | (39,274 | ) | |||
Effect of exchange rate changes on cash | (5,670 | ) | 7,368 | ||||
Net (decrease) increase in cash and cash equivalents | (44,267 | ) | 104,158 | ||||
Cash and cash equivalents, beginning of period | 147,335 | 217,643 | |||||
Cash and cash equivalents, end of period | $ | 103,068 | $ | 321,801 | |||
Brady CORPORATION AND SUBSIDIARIES | |||||||||||||||
SEGMENT INFORMATION | |||||||||||||||
(Unaudited; Dollars in thousands) | |||||||||||||||
Three months ended April 30, | Nine months ended April 30, | ||||||||||||||
2022 | 2021 | 2022 | 2021 | ||||||||||||
NET SALES | |||||||||||||||
ID Solutions | $ | 264,124 | $ | 218,065 | $ | 757,727 | $ | 610,484 | |||||||
Workplace Safety | 74,427 | 77,438 | 220,354 | 228,084 | |||||||||||
Total | $ | 338,551 | $ | 295,503 | $ | 978,081 | $ | 838,568 | |||||||
SALES INFORMATION | |||||||||||||||
ID Solutions | |||||||||||||||
Organic | 11.8 | % | 9.8 | % | 13.6 | % | (2.1 | )% | |||||||
Acquisition | 11.7 | % | — | % | 11.8 | % | — | % | |||||||
Currency | (2.4 | )% | 3.1 | % | (1.3 | )% | 1.6 | % | |||||||
Total | 21.1 | % | 12.9 | % | 24.1 | % | (0.5 | )% | |||||||
Workplace Safety | |||||||||||||||
Organic | 0.9 | % | (2.2 | )% | (1.1 | )% | (0.5 | )% | |||||||
Currency | (4.8 | )% | 8.6 | % | (2.3 | )% | 6.1 | % | |||||||
Total | (3.9 | )% | 6.4 | % | (3.4 | )% | 5.6 | % | |||||||
Total Company | |||||||||||||||
Organic | 9.0 | % | 6.5 | % | 9.6 | % | (1.7 | )% | |||||||
Acquisition | 8.6 | % | — | % | 8.5 | % | — | % | |||||||
Currency | (3.0 | )% | 4.6 | % | (1.5 | )% | 2.8 | % | |||||||
Total | 14.6 | % | 11.1 | % | 16.6 | % | 1.1 | % | |||||||
SEGMENT PROFIT | |||||||||||||||
ID Solutions | $ | 53,962 | $ | 47,539 | $ | 146,907 | $ | 126,818 | |||||||
Workplace Safety | 7,109 | 5,656 | 13,917 | 17,107 | |||||||||||
Total | $ | 61,071 | $ | 53,195 | $ | 160,824 | $ | 143,925 | |||||||
SEGMENT PROFIT AS A PERCENT OF NET SALES | |||||||||||||||
ID Solutions | 20.4 | % | 21.8 | % | 19.4 | % | 20.8 | % | |||||||
Workplace Safety | 9.6 | % | 7.3 | % | 6.3 | % | 7.5 | % | |||||||
Total | 18.0 | % | 18.0 | % | 16.4 | % | 17.2 | % | |||||||
Three months ended April 30, | Nine months ended April 30, | ||||||||||||||
2022 | 2021 | 2022 | 2021 | ||||||||||||
Total segment profit | $ | 61,071 | $ | 53,195 | $ | 160,824 | $ | 143,925 | |||||||
Unallocated amounts: | |||||||||||||||
Administrative costs | (8,182 | ) | (6,470 | ) | (20,728 | ) | (17,600 | ) | |||||||
Investment and other (expense) income | (1,308 | ) | 1,181 | (1,343 | ) | 3,372 | |||||||||
Interest expense | (329 | ) | (131 | ) | (763 | ) | (288 | ) | |||||||
Income before income taxes and losses of unconsolidated affiliate | $ | 51,252 | $ | 47,775 | $ | 137,990 | $ | 129,409 | |||||||
GAAP to NON-GAAP MEASURES | |||||||||||||||
(Unaudited; Dollars in Thousands, Except Per Share Amounts) | |||||||||||||||
In accordance with the U.S. Securities and Exchange Commission’s Regulation G, the following provides definitions of the non-GAAP measures used in the earnings release and the reconciliation to the most closely related GAAP measure. | |||||||||||||||
Income Before Income Taxes Excluding Certain Items: | |||||||||||||||
Brady is presenting the non-GAAP measure, "Income Before Income Taxes Excluding Certain Items." This is not a calculation based upon GAAP. The amounts included in this non-GAAP measure are derived from amounts included in the Consolidated Financial Statements and supporting footnote disclosures. We do not view these items to be part of our ongoing results. We believe this profit measure provides an important perspective of underlying business trends and results and provides a more comparable measure from year to year. The table below provides a reconciliation of the GAAP measure of Income before income taxes and losses of unconsolidated affiliate to the non-GAAP measure of Income Before Income Taxes Excluding Certain Items: | |||||||||||||||
Three months ended April 30, | Nine months ended April 30, | ||||||||||||||
2022 | 2021 | 2022 | 2021 | ||||||||||||
Income before income taxes and losses of unconsolidated affiliate (GAAP measure) | $ | 51,252 | $ | 47,775 | $ | 137,990 | $ | 129,409 | |||||||
Amortization expense | 3,735 | 1,352 | 11,291 | 4,056 | |||||||||||
Other non-routine charges | 1,841 | - | 1,841 | - | |||||||||||
Income Before Income Taxes Excluding Certain Items (non-GAAP measure) | $ | 56,828 | $ | 49,127 | $ | 151,122 | $ | 133,465 | |||||||
Income Tax Expense Excluding Certain Items: | |||||||||||||||
Brady is presenting the non-GAAP measure, "Income Tax Expense Excluding Certain Items." This is not a calculation based upon GAAP. The amounts included in this non-GAAP measure are derived from amounts included in the Consolidated Financial Statements and supporting footnote disclosures. We do not view these items to be part of our ongoing results. We believe this measure provides an important perspective of underlying business trends and results and provides a more comparable measure from year to year. The table below provides a reconciliation of the GAAP measure of Income tax expense to the non-GAAP measure of Income Tax Expense Excluding Certain Items: | |||||||||||||||
Three months ended April 30, | Nine months ended April 30, | ||||||||||||||
2022 | 2021 | 2022 | 2021 | ||||||||||||
Income tax expense (GAAP measure) | $ | 11,198 | $ | 8,206 | $ | 29,075 | $ | 27,017 | |||||||
Amortization expense | 885 | 338 | 2,672 | 1,014 | |||||||||||
Other non-routine charges | 496 | - | 496 | - | |||||||||||
Income Tax Expense Excluding Certain Items (non-GAAP measure) | $ | 12,579 | $ | 8,544 | $ | 32,243 | $ | 28,031 | |||||||
Net Income Excluding Certain Items: | |||||||||||||||
Brady is presenting the non-GAAP measure, "Net Income Excluding Certain Items." This is not a calculation based upon GAAP. The amounts included in this non-GAAP measure are derived from amounts included in the Consolidated Financial Statements and supporting footnote disclosures. We do not view these items to be part of our ongoing results. We believe this measure provides an important perspective of underlying business trends and results and provides a more comparable measure from year to year. The table below provides a reconciliation of the GAAP measure of Net income to the non-GAAP measure of Net Income Excluding Certain Items: | |||||||||||||||
Three months ended April 30, | Nine months ended April 30, | ||||||||||||||
2022 | 2021 | 2022 | 2021 | ||||||||||||
Net income (GAAP measure) | $ | 40,054 | $ | 37,291 | $ | 108,915 | $ | 101,632 | |||||||
Amortization expense | 2,850 | 1,014 | 8,619 | 3,042 | |||||||||||
Other non-routine charges | 1,345 | - | 1,345 | - | |||||||||||
Net Income Excluding Certain Items (non-GAAP measure) | $ | 44,249 | $ | 38,305 | $ | 118,879 | $ | 104,674 | |||||||
Diluted EPS Excluding Certain Items: | |||||||||||||||
Brady is presenting the non-GAAP measure, "Diluted EPS Excluding Certain Items." This is not a calculation based upon GAAP. The amounts included in this non-GAAP measure are derived from amounts included in the Consolidated Financial Statements. We do not view these items to be part of our ongoing results. We believe this measure provides an important perspective of underlying business trends and results and provides a more comparable measure from year to year. The table below provides a reconciliation of the GAAP measure of Net income per Class A Nonvoting Common Share to the non-GAAP measure of Diluted EPS Excluding Certain Items: | |||||||||||||||
Three months ended April 30, | Nine months ended April 30, | ||||||||||||||
2022 | 2021 | 2022 | 2021 | ||||||||||||
Net income per Class A Nonvoting Common Share (GAAP measure) | $ | 0.78 | $ | 0.71 | $ | 2.09 | $ | 1.94 | |||||||
Amortization expense | 0.06 | 0.02 | 0.17 | 0.06 | |||||||||||
Other non-routine charges | 0.03 | - | $ | 0.03 | - | ||||||||||
Diluted EPS Excluding Certain Items (non-GAAP measure) | $ | 0.86 | $ | 0.73 | $ | 2.28 | $ | 2.00 | |||||||
Diluted EPS Excluding Certain Items Guidance: | Fiscal 2022 Expectations | ||||||||||||||
Low | High | ||||||||||||||
Earnings per diluted Class A Common Share (GAAP measure) | $ | 2.83 | $ | 2.92 | |||||||||||
Amortization expense | 0.22 | 0.22 | |||||||||||||
Other non-routine charges | 0.03 | 0.03 | |||||||||||||
Diluted EPS Excluding Certain Items (non-GAAP measure) | $ | 3.08 | $ | 3.17 | |||||||||||