Brady Corporation (NYSE: BRC) (“Brady” or “Company”), a world
leader in identification solutions, today reported its financial
results for its fiscal 2023 third quarter ended April 30, 2023.
Quarter Ended April 30, 2023 Financial
Results:Sales for the quarter ended April 30, 2023
decreased 0.4 percent, which consisted of an organic sales increase
of 1.9 percent, a decrease of 2.1 percent from foreign currency
translation and a decrease of 0.2 percent from the divestiture of
the PremiSys business. Sales for the quarter ended April 30, 2023
were $337.1 million compared to $338.6 million in the same quarter
last year. By region, sales increased 0.1 percent in the Americas
& Asia and decreased 1.4 percent in Europe & Australia,
which consisted of an organic sales increase of 1.2 percent in the
Americas & Asia and an organic sales increase of 3.4 percent in
Europe & Australia.
Income before income taxes increased 23.0 percent to $63.0
million for the quarter ended April 30, 2023, compared to $51.3
million in the same quarter last year. Income Before Income Taxes
Excluding Certain Items* for the quarter ended April 30, 2023,
which was adjusted for amortization expense of $2.5 million and
removes the $3.8 million pre-tax gain on the sale of the PremiSys
business, was $61.7 million, an increase of 8.6 percent compared to
the third quarter of last year.
Net income for the quarter ended April 30, 2023 was $48.1
million compared to $40.1 million in the same quarter last year.
Earnings per diluted Class A Nonvoting Common Share were $0.96 in
the third quarter of fiscal 2023, compared to $0.78 in the same
quarter last year. Net Income Excluding Certain Items* for the
quarter ended April 30, 2023 was $47.6 million and Diluted EPS
Excluding Certain Items* for the quarter ended April 30, 2023 was
$0.95. 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.
Nine-Month Period Ended April 30, 2023 Financial
Results:Sales for the nine-month period ended April 30,
2023 increased 0.8 percent, which consisted of an organic sales
increase of 5.0 percent, a decrease of 4.1 percent from foreign
currency translation and a decrease of 0.1 percent from the
divestiture of the PremiSys business. Sales for the nine months
ended April 30, 2023 were $985.9 million compared to $978.1 million
in the same period last year. By region, sales increased 2.8
percent in the Americas & Asia and decreased 3.1 percent in
Europe & Australia, which consisted of an organic sales
increase of 4.0 percent in the Americas & Asia and an organic
sales increase of 7.0 percent in Europe & Australia.
Income before income taxes increased 17.3 percent to $161.9
million for the nine-month period ended April 30, 2023, compared to
$138.0 million in the same period last year. Income Before Income
Taxes Excluding Certain Items* for the nine months ended April 30,
2023, which was adjusted for amortization expense of $9.4 million
and removes the $3.8 million gain on the sale of our PremiSys
business, was $167.5 million, an increase of 10.8 percent compared
to the same period of the prior year.
Net income for the nine-month period ended April 30, 2023 was
$125.5 million compared to $108.9 million in the same period last
year. Earnings per diluted Class A Nonvoting Common Share were
$2.51 for the nine months ended April 30, 2023, compared to $2.09
in the same period last year. Net Income Excluding Certain Items*
for the nine months ended April 30, 2023 was $130.3 million and
Diluted EPS Excluding Certain Items* for the nine months ended
April 30, 2023 was $2.60. 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 months ended
April 30, 2022 was $2.28.
Commentary: “Our most recent financial results
once again demonstrate how our investment in research and
development is paying off and adding tremendous value to our
customers. This quarter, we launched several new industrial
printers that continue to separate us from our competition. Our
ability to innovate has never been stronger and is setting the
stage for continued future growth,” said Brady’s President and
Chief Executive Officer, Russell R. Shaller. “This
quarter, we completed the reorganization of Brady around two new
operating segments: Americas & Asia and Europe & Australia.
This reorganization is allowing us to better integrate our
businesses while supporting continued organic growth by combining
our best go-to-market strategies in each geography, facilitating an
increased pace of new product development, and further simplifying
our global businesses. While we recognize that the macro-economy is
uncertain, we will continue to invest in our critical organic and
inorganic growth initiatives throughout the economic cycle, which
we believe positions us for future success.”
“Brady had a strong quarter. We posted record high quarterly
diluted EPS of $0.96 and our operating cash flow was $72.5M, which
equates to 151 percent of GAAP net income and is up 77 percent from
the same quarter last year,” said Brady’s Chief Financial Officer,
Ann Thornton. “We also returned $11.4 million to our shareholders
in the form of dividends this quarter and we repurchased $29.8
million in shares during the first nine months of this fiscal year.
We have minimal debt and we are in a net cash position of $84.2
million at April 30, 2023. As for capital allocation, we expect to
continue to fully fund our organic investments, return cash to our
shareholders in the form of dividends, be opportunistic with share
buybacks and execute strategic acquisitions that increase our
growth trajectory.”
Fiscal 2023 Guidance:The Company adjusted its
GAAP earnings per diluted Class A Nonvoting Common Share guidance
for the year ending July 31, 2023 from the previous guidance range
of $3.23 to $3.43 per share to the new full year guidance range of
$3.32 to $3.47 per share. The Company raised the low end of its
Diluted EPS Excluding Certain Items* guidance for the year ending
July 31, 2023 from the previous range of $3.40 to $3.60 per share
to the new full year guidance range of $3.45 to $3.60 per
share.
The assumptions included in our fiscal 2023 guidance include a
full-year income tax rate of approximately 21 percent, depreciation
and amortization expense ranging from $32 million to $34 million,
and capital expenditures of approximately $20 million. Our fiscal
2023 guidance is based on foreign currency exchange rates as of
April 30, 2023 and assumes continued economic growth.
A webcast regarding Brady’s fiscal 2023 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,
2022, employed approximately 5,700 people in its worldwide
businesses. Brady’s fiscal 2022 sales were approximately $1.30
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, income, 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,” “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: increased cost of raw materials, labor and freight as well as
raw material shortages and supply chain disruptions; decreased
demand for our products; our ability to compete effectively or to
successfully execute our strategy; our ability to develop
technologically advanced products that meet customer demands;
Brady’s ability to identify, integrate, and grow acquired
companies, and to manage contingent liabilities from divested
businesses; adverse impacts of the novel coronavirus (“COVID-19”)
pandemic or other pandemics; 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, 2022.
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, |
|
|
|
2023 |
|
|
|
2022 |
|
|
|
2023 |
|
|
|
2022 |
|
|
Net
sales |
$ |
337,116 |
|
|
$ |
338,551 |
|
|
$ |
985,934 |
|
|
$ |
978,081 |
|
|
Cost of
goods sold |
|
167,425 |
|
|
|
174,525 |
|
|
|
504,539 |
|
|
|
509,705 |
|
|
Gross margin |
|
169,691 |
|
|
|
164,026 |
|
|
|
481,395 |
|
|
|
468,376 |
|
|
Operating
expenses: |
|
|
|
|
|
|
|
|
Research and development |
|
15,715 |
|
|
|
14,923 |
|
|
|
45,025 |
|
|
|
42,795 |
|
|
Selling, general and administrative |
|
90,975 |
|
|
|
96,214 |
|
|
|
273,202 |
|
|
|
285,485 |
|
|
Total
operating expenses |
|
106,690 |
|
|
|
111,137 |
|
|
|
318,227 |
|
|
|
328,280 |
|
|
|
|
|
|
|
|
|
|
|
Operating
income |
|
63,001 |
|
|
|
52,889 |
|
|
|
163,168 |
|
|
|
140,096 |
|
|
|
|
|
|
|
|
|
|
|
Other income
(expense): |
|
|
|
|
|
|
|
|
Investment and other income (expense) |
|
785 |
|
|
|
(1,308 |
) |
|
|
1,596 |
|
|
|
(1,343 |
) |
|
Interest expense |
|
(753 |
) |
|
|
(329 |
) |
|
|
(2,886 |
) |
|
|
(763 |
) |
|
|
|
|
|
|
|
|
|
|
Income
before income taxes |
|
63,033 |
|
|
|
51,252 |
|
|
|
161,878 |
|
|
|
137,990 |
|
|
|
|
|
|
|
|
|
|
|
Income tax
expense |
|
14,981 |
|
|
|
11,198 |
|
|
|
36,399 |
|
|
|
29,075 |
|
|
|
|
|
|
|
|
|
|
|
Net
income |
$ |
48,052 |
|
|
$ |
40,054 |
|
|
$ |
125,479 |
|
|
$ |
108,915 |
|
|
|
|
|
|
|
|
|
|
|
Net income
per Class A Nonvoting Common Share: |
|
|
|
|
|
|
|
|
Basic |
$ |
0.97 |
|
|
$ |
0.78 |
|
|
$ |
2.52 |
|
|
$ |
2.11 |
|
|
Diluted |
$ |
0.96 |
|
|
$ |
0.78 |
|
|
$ |
2.51 |
|
|
$ |
2.09 |
|
|
|
|
|
|
|
|
|
|
|
Net income
per Class B Voting Common Share: |
|
|
|
|
|
|
|
|
Basic |
$ |
0.97 |
|
|
$ |
0.78 |
|
|
$ |
2.51 |
|
|
$ |
2.09 |
|
|
Diluted |
$ |
0.96 |
|
|
$ |
0.78 |
|
|
$ |
2.49 |
|
|
$ |
2.08 |
|
|
|
|
|
|
|
|
|
|
|
Weighted
average common shares outstanding: |
|
|
|
|
|
|
|
|
Basic |
|
49,653 |
|
|
|
51,326 |
|
|
|
49,755 |
|
|
|
51,700 |
|
|
Diluted |
|
50,001 |
|
|
|
51,568 |
|
|
|
50,033 |
|
|
|
52,055 |
|
|
|
|
|
|
|
|
|
|
|
BRADY CORPORATION AND SUBSIDIARIES |
|
|
|
CONSOLIDATED BALANCE SHEETS |
|
|
|
(Dollars in
thousands) |
|
|
|
|
|
|
|
|
April 30, 2023 |
|
July 31, 2022 |
|
(Unaudited) |
|
|
ASSETS |
|
|
|
Current
assets: |
|
|
|
Cash and cash equivalents |
$ |
135,047 |
|
|
$ |
114,069 |
|
Accounts receivable, net of allowance for credit losses of $8,417
and $7,355, respectively |
|
184,907 |
|
|
|
183,233 |
|
Inventories |
|
182,809 |
|
|
|
190,023 |
|
Prepaid expenses and other current assets |
|
14,020 |
|
|
|
10,743 |
|
Total current assets |
|
516,783 |
|
|
|
498,068 |
|
Property,
plant and equipment—net |
|
139,747 |
|
|
|
139,511 |
|
Goodwill |
|
590,684 |
|
|
|
586,832 |
|
Other
intangible assets |
|
65,210 |
|
|
|
74,028 |
|
Deferred
income taxes |
|
15,124 |
|
|
|
15,881 |
|
Operating
lease assets |
|
27,378 |
|
|
|
31,293 |
|
Other
assets |
|
21,840 |
|
|
|
21,719 |
|
Total |
$ |
1,376,766 |
|
|
$ |
1,367,332 |
|
LIABILITIES AND STOCKHOLDERS’ EQUITY |
|
|
|
Current
liabilities: |
|
|
|
Accounts payable |
$ |
74,745 |
|
|
$ |
81,116 |
|
Accrued compensation and benefits |
|
65,789 |
|
|
|
76,764 |
|
Taxes, other than income taxes |
|
13,246 |
|
|
|
12,539 |
|
Accrued income taxes |
|
5,103 |
|
|
|
8,294 |
|
Current operating lease liabilities |
|
14,196 |
|
|
|
15,003 |
|
Other current liabilities |
|
63,357 |
|
|
|
61,458 |
|
Total current liabilities |
|
236,436 |
|
|
|
255,174 |
|
Long-term
debt |
|
50,849 |
|
|
|
95,000 |
|
Long-term
operating lease liabilities |
|
14,573 |
|
|
|
19,143 |
|
Other
liabilities |
|
79,812 |
|
|
|
86,717 |
|
Total liabilities |
|
381,670 |
|
|
|
456,034 |
|
Stockholders’ equity: |
|
|
|
Common stock: |
|
|
|
Class A nonvoting common stock—Issued 51,261,487 shares, and
outstanding 45,935,672 and 46,370,708 shares, respectively |
|
513 |
|
|
|
513 |
|
Class B voting common stock—Issued and outstanding, 3,538,628
shares |
|
35 |
|
|
|
35 |
|
Additional paid-in capital |
|
350,758 |
|
|
|
345,266 |
|
Retained earnings |
|
983,694 |
|
|
|
892,417 |
|
Treasury stock—5,325,815 and 4,890,779 shares, respectively, of
Class A nonvoting common stock, at cost |
|
(244,503 |
) |
|
|
(217,856 |
) |
Accumulated other comprehensive loss |
|
(95,401 |
) |
|
|
(109,077 |
) |
Total stockholders’ equity |
|
995,096 |
|
|
|
911,298 |
|
Total |
$ |
1,376,766 |
|
|
$ |
1,367,332 |
|
|
|
|
|
BRADY CORPORATION AND SUBSIDIARIES |
|
|
|
|
CONSOLIDATED STATEMENTS OF CASH FLOWS |
|
|
|
|
(Unaudited;
Dollars in thousands) |
|
|
|
|
|
Nine months ended April 30, |
|
|
|
2023 |
|
|
|
2022 |
|
|
Operating
activities: |
|
|
|
|
Net income |
$ |
125,479 |
|
|
$ |
108,915 |
|
|
Adjustments to reconcile net income to net cash provided by
operating activities: |
|
|
|
|
Depreciation and amortization |
|
24,522 |
|
|
|
25,448 |
|
|
Stock-based compensation expense |
|
6,427 |
|
|
|
9,153 |
|
|
Gain on sale of business |
|
(3,770 |
) |
|
|
— |
|
|
Deferred income taxes |
|
(5,947 |
) |
|
|
2,858 |
|
|
Other |
|
(1,336 |
) |
|
|
(1,080 |
) |
|
Changes in operating assets and liabilities: |
|
|
|
|
Accounts receivable |
|
1,744 |
|
|
|
(26,438 |
) |
|
Inventories |
|
9,279 |
|
|
|
(47,784 |
) |
|
Prepaid expenses and other assets |
|
(3,429 |
) |
|
|
(932 |
) |
|
Accounts payable and accrued liabilities |
|
(19,704 |
) |
|
|
(5,584 |
) |
|
Income taxes |
|
(3,404 |
) |
|
|
680 |
|
|
Net cash provided by
operating activities |
|
129,861 |
|
|
|
65,236 |
|
|
|
|
|
|
|
Investing
activities: |
|
|
|
|
Purchases of property, plant and equipment |
|
(12,912 |
) |
|
|
(22,130 |
) |
|
Sale of business |
|
8,000 |
|
|
|
— |
|
|
Other |
|
11 |
|
|
|
59 |
|
|
Net cash used in investing
activities |
|
(4,901 |
) |
|
|
(22,071 |
) |
|
|
|
|
|
|
Financing
activities: |
|
|
|
|
Payment of dividends |
|
(34,202 |
) |
|
|
(34,701 |
) |
|
Proceeds from exercise of stock options |
|
4,091 |
|
|
|
663 |
|
|
Payments for employee taxes withheld from stock-based awards |
|
(1,965 |
) |
|
|
(5,070 |
) |
|
Purchase of treasury stock |
|
(29,774 |
) |
|
|
(84,930 |
) |
|
Proceeds from borrowing on credit agreement |
|
102,916 |
|
|
|
155,216 |
|
|
Repayment of borrowing on credit agreement |
|
(147,067 |
) |
|
|
(116,216 |
) |
|
Other |
|
66 |
|
|
|
3,276 |
|
|
Net cash used in financing
activities |
|
(105,935 |
) |
|
|
(81,762 |
) |
|
|
|
|
|
|
Effect of
exchange rate changes on cash and cash equivalents |
|
1,953 |
|
|
|
(5,670 |
) |
|
|
|
|
|
|
Net increase
(decrease) in cash and cash equivalents |
|
20,978 |
|
|
|
(44,267 |
) |
|
Cash and
cash equivalents, beginning of period |
|
114,069 |
|
|
|
147,335 |
|
|
|
|
|
|
|
Cash and
cash equivalents, end of period |
$ |
135,047 |
|
|
$ |
103,068 |
|
|
|
|
|
|
|
BRADY CORPORATION AND SUBSIDIARIES |
|
|
|
|
|
|
|
|
SEGMENT INFORMATION |
|
|
|
|
|
|
|
|
(Unaudited;
Dollars in thousands) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three months ended April 30, |
|
Nine months ended April 30, |
|
|
|
2023 |
|
|
|
2022 |
|
|
|
2023 |
|
|
|
2022 |
|
|
NET
SALES |
|
|
|
|
|
|
|
|
Americas & Asia |
$ |
222,813 |
|
|
$ |
222,579 |
|
|
$ |
661,375 |
|
|
$ |
643,292 |
|
|
Europe & Australia |
|
114,303 |
|
|
|
115,972 |
|
|
|
324,559 |
|
|
|
334,789 |
|
|
Total |
$ |
337,116 |
|
|
$ |
338,551 |
|
|
$ |
985,934 |
|
|
$ |
978,081 |
|
|
|
|
|
|
|
|
|
|
|
SALES INFORMATION |
|
|
|
|
|
|
|
|
Americas & Asia |
|
|
|
|
|
|
|
|
Organic |
|
1.2 |
% |
|
|
9.2 |
% |
|
|
4.0 |
% |
|
|
10.7 |
% |
|
Currency |
|
(0.8 |
)% |
|
|
(0.1 |
)% |
|
|
(1.1 |
)% |
|
|
0.3 |
% |
|
Divestiture |
|
(0.3 |
)% |
|
|
— |
% |
|
|
(0.1 |
)% |
|
|
— |
% |
|
Acquisition |
|
— |
% |
|
|
8.6 |
% |
|
|
— |
% |
|
|
8.3 |
% |
|
Total |
|
0.1 |
% |
|
|
17.7 |
% |
|
|
2.8 |
% |
|
|
19.3 |
% |
|
Europe & Australia |
|
|
|
|
|
|
|
|
Organic |
|
3.4 |
% |
|
|
8.4 |
% |
|
|
7.0 |
% |
|
|
7.6 |
% |
|
Currency |
|
(4.8 |
)% |
|
|
(8.1 |
)% |
|
|
(10.1 |
)% |
|
|
(4.6 |
)% |
|
Acqusition |
|
— |
% |
|
|
8.7 |
% |
|
|
— |
% |
|
|
8.8 |
% |
|
Total |
|
(1.4 |
)% |
|
|
9.0 |
% |
|
|
(3.1 |
)% |
|
|
11.8 |
% |
|
Total Company |
|
|
|
|
|
|
|
|
Organic |
|
1.9 |
% |
|
|
9.0 |
% |
|
|
5.0 |
% |
|
|
9.6 |
% |
|
Currency |
|
(2.1 |
)% |
|
|
(3.0 |
)% |
|
|
(4.1 |
)% |
|
|
(1.5 |
)% |
|
Divestiture |
|
(0.2 |
)% |
|
|
— |
% |
|
|
(0.1 |
)% |
|
|
— |
% |
|
Acquisition |
|
— |
% |
|
|
8.6 |
% |
|
|
— |
% |
|
|
8.5 |
% |
|
Total |
|
(0.4 |
)% |
|
|
14.6 |
% |
|
|
0.8 |
% |
|
|
16.6 |
% |
|
|
|
|
|
|
|
|
|
|
SEGMENT PROFIT |
|
|
|
|
|
|
|
|
Americas & Asia |
$ |
49,192 |
|
|
$ |
45,021 |
|
|
$ |
130,511 |
|
|
$ |
114,659 |
|
|
Europe & Australia |
|
17,099 |
|
|
|
16,050 |
|
|
|
47,316 |
|
|
|
46,165 |
|
|
Total |
$ |
66,291 |
|
|
$ |
61,071 |
|
|
$ |
177,827 |
|
|
$ |
160,824 |
|
|
SEGMENT PROFIT AS A PERCENT OF NET SALES |
|
|
|
|
|
|
|
|
Americas & Asia |
|
22.1 |
% |
|
|
20.2 |
% |
|
|
19.7 |
% |
|
|
17.8 |
% |
|
Europe & Australia |
|
15.0 |
% |
|
|
13.8 |
% |
|
|
14.6 |
% |
|
|
13.8 |
% |
|
Total |
|
19.7 |
% |
|
|
18.0 |
% |
|
|
18.0 |
% |
|
|
16.4 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three months ended April 30, |
|
Nine months ended April 30, |
|
|
|
2023 |
|
|
|
2022 |
|
|
|
2023 |
|
|
|
2022 |
|
|
Total
segment profit |
$ |
66,291 |
|
|
$ |
61,071 |
|
|
$ |
177,827 |
|
|
$ |
160,824 |
|
|
Unallocated
amounts: |
|
|
|
|
|
|
|
|
Administrative costs |
|
(7,060 |
) |
|
|
(8,182 |
) |
|
|
(18,429 |
) |
|
|
(20,728 |
) |
|
Gain on sale of business |
|
3,770 |
|
|
|
- |
|
|
|
3,770 |
|
|
|
- |
|
|
Investment and other income (expense) |
|
785 |
|
|
|
(1,308 |
) |
|
|
1,596 |
|
|
|
(1,343 |
) |
|
Interest expense |
|
(753 |
) |
|
|
(329 |
) |
|
|
(2,886 |
) |
|
|
(763 |
) |
|
Income
before income taxes |
$ |
63,033 |
|
|
$ |
51,252 |
|
|
$ |
161,878 |
|
|
$ |
137,990 |
|
|
|
|
|
|
|
|
|
|
|
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 to the non-GAAP measure of Income Before Income Taxes
Excluding Certain Items: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three months ended April 30, |
|
Nine months ended April 30, |
|
|
|
|
|
|
2023 |
|
|
|
2022 |
|
|
2023 |
|
|
|
2022 |
|
|
Income before income taxes |
$ |
63,033 |
|
|
$ |
51,252 |
|
$ |
161,878 |
|
|
$ |
137,990 |
|
|
|
Amortization expense |
|
|
2,461 |
|
|
|
3,735 |
|
|
9,350 |
|
|
|
11,291 |
|
|
|
Gain on sale of business |
|
|
(3,770 |
) |
|
|
- |
|
|
(3,770 |
) |
|
|
- |
|
|
|
Other non-routine charges |
|
|
- |
|
|
|
1,841 |
|
|
- |
|
|
|
1,841 |
|
|
Income Before Income Taxes Excluding Certain Items
(non-GAAP measure) |
$ |
61,724 |
|
|
$ |
56,828 |
|
$ |
167,458 |
|
|
$ |
151,122 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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, |
|
|
|
|
|
|
2023 |
|
|
|
2022 |
|
|
2023 |
|
|
|
2022 |
|
|
Income tax expense (GAAP measure) |
$ |
14,981 |
|
|
$ |
11,198 |
|
$ |
36,399 |
|
|
$ |
29,075 |
|
|
|
Amortization expense |
|
|
569 |
|
|
|
885 |
|
|
2,203 |
|
|
|
2,672 |
|
|
|
Gain on sale of business |
|
|
(1,431 |
) |
|
|
- |
|
|
(1,431 |
) |
|
|
- |
|
|
|
Other non-routine charges |
|
|
- |
|
|
|
496 |
|
|
- |
|
|
|
496 |
|
|
Income Tax Expense Excluding Certain Items (non-GAAP
measure) |
$ |
14,119 |
|
|
$ |
12,579 |
|
$ |
37,171 |
|
|
$ |
32,243 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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, |
|
|
|
|
|
|
2023 |
|
|
|
2022 |
|
|
2023 |
|
|
|
2022 |
|
|
Net income (GAAP measure) |
$ |
48,052 |
|
|
$ |
40,054 |
|
$ |
125,479 |
|
|
$ |
108,915 |
|
|
|
Amortization expense |
|
|
1,892 |
|
|
|
2,850 |
|
|
7,147 |
|
|
|
8,619 |
|
|
|
Gain on sale of business |
|
|
(2,339 |
) |
|
|
- |
|
|
(2,339 |
) |
|
|
- |
|
|
|
Other non-routine charges |
|
|
- |
|
|
|
1,345 |
|
|
- |
|
|
|
1,345 |
|
|
Net Income Excluding Certain Items (non-GAAP
measure) |
$ |
47,605 |
|
|
$ |
44,249 |
|
$ |
130,287 |
|
|
$ |
118,879 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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, |
|
|
|
|
|
|
2023 |
|
|
|
2022 |
|
|
2023 |
|
|
|
2022 |
|
|
Net income per Class A Nonvoting Common Share (GAAP
measure) |
$ |
0.96 |
|
|
$ |
0.78 |
|
$ |
2.51 |
|
|
$ |
2.09 |
|
|
|
Amortization expense |
|
|
0.04 |
|
|
|
0.06 |
|
|
0.14 |
|
|
|
0.17 |
|
|
|
Gain on sale of business |
|
|
(0.05 |
) |
|
|
- |
|
|
(0.05 |
) |
|
|
- |
|
|
|
Other non-routine charges |
|
|
- |
|
|
|
0.03 |
|
|
- |
|
|
|
0.03 |
|
|
Diluted EPS Excluding Certain Items (non-GAAP
measure) |
$ |
0.95 |
|
|
$ |
0.86 |
|
$ |
2.60 |
|
|
$ |
2.28 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted EPS Excluding Certain Items Guidance: |
|
|
|
|
|
Fiscal 2023 Expectations |
|
|
|
|
|
|
|
|
|
Low |
|
High |
|
Earnings per diluted Class A Common Share (GAAP
measure) |
|
|
|
|
|
$ |
3.32 |
|
|
$ |
3.47 |
|
|
|
Amortization expense |
|
|
|
|
|
|
0.18 |
|
|
|
0.18 |
|
|
|
Gain on sale of business |
|
|
|
|
|
|
(0.05 |
) |
|
|
(0.05 |
) |
|
Diluted EPS Excluding Certain Items (non-GAAP
measure) |
|
|
|
|
|
$ |
3.45 |
|
|
$ |
3.60 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Brady (NYSE:BRC)
Gráfico Histórico do Ativo
De Jun 2024 até Jul 2024
Brady (NYSE:BRC)
Gráfico Histórico do Ativo
De Jul 2023 até Jul 2024