Labels for Safety, Visuals and Facility ID Desktop Printers
Labels for Product, Wire and Lab ID Benchtop Printers
Labels for Safety, Visuals and Facility ID Desktop Printers
Labels for Product, Wire and Lab ID Benchtop Printers
Safety and Facility ID Desktop Printers
Product, Wire and Lab ID Benchtop Printers
Barcode Scanners and RFID Readers
PaintStripe Floor Marking Stencils
Valve Lockouts & Hose Lockouts
Group Lock Boxes & Permit Control
Pipe Marker Accessories & Mounting Brackets
Maintenance and Production Tags
Calculators and Assessment Tools
Product Finders and Data Sheets
Brady Corporation
Quarter Ended
Income before income taxes was
Net income for the quarter ended
Earnings per diluted Class A Nonvoting Common Share were
Sales for the quarter ended
Year Ended
Income before income taxes increased 8.3 percent, finishing at
Net income for the year ended
Earnings per diluted Class A Nonvoting Common Share were
Sales for the year ended
Commentary:
“Our investment in the development of innovative new products, and our dedication to providing excellent customer service continue to drive positive results as we posted our ninth consecutive quarter of organic sales growth,” said Brady’s President and Chief Executive Officer,
“Our organic sales growth and our focus on operational efficiencies continue to drive profit improvements and strong cash flow,” said Brady’s Chief Financial Officer,
Fiscal 2020 Guidance:
The Company expects organic sales growth to be approximately 1.5 to 2.5 percent for the year ending
A webcast regarding Brady’s fiscal 2019 fourth quarter financial results will be available at www.bradycorp.com/investors beginning at
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” 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: our ability to compete effectively or to successfully execute our strategy; Brady’s ability to develop technologically advanced products that meet customer demands; difficulties in protecting our websites, networks, and systems against security breaches; decreased demand for our products; raw material and other cost increases; extensive regulations by U.S. and non-U.S. governmental and self-regulatory entities; risks associated with the loss of key employees; divestitures and contingent liabilities from divestitures; Brady’s ability to properly identify, integrate, and grow acquired companies; litigation, including product liability claims; foreign currency fluctuations; the impact of the Tax Reform Act and any other changes in tax legislation and tax rates; potential write-offs of Brady’s substantial intangible assets; differing interests of voting and non-voting shareholders; numerous other matters of national, regional and global scale, including those of a political, economic, business, competitive, and regulatory nature contained from time to time in Brady’s
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.
BRADY CORPORATION AND SUBSIDIARIES | |||||||||||||||
CONSOLIDATED STATEMENTS OF INCOME | |||||||||||||||
(Unaudited; Dollars in thousands, except per share data) | |||||||||||||||
Three months ended July 31, | Year ended July 31, | ||||||||||||||
2019 | 2018 | 2019 | 2018 | ||||||||||||
Net sales | $ | 295,278 | $ | 297,499 | $ | 1,160,645 | $ | 1,173,851 | |||||||
Cost of goods sold | 148,698 | 150,047 | 581,967 | 585,560 | |||||||||||
Gross margin | 146,580 | 147,452 | 578,678 | 588,291 | |||||||||||
Operating expenses: | |||||||||||||||
Research and development | 11,331 | 11,741 | 45,168 | 45,253 | |||||||||||
Selling, general and administrative | 89,094 | 90,931 | 371,082 | 390,342 | |||||||||||
Total operating expenses | 100,425 | 102,672 | 416,250 | 435,595 | |||||||||||
Operating income | 46,155 | 44,780 | 162,428 | 152,696 | |||||||||||
Other income (expense): | |||||||||||||||
Investment and other income | 1,621 | 1,184 | 5,046 | 2,487 | |||||||||||
Interest expense | (693 | ) | (715 | ) | (2,830 | ) | (3,168 | ) | |||||||
Income before income taxes | 47,083 | 45,249 | 164,644 | 152,015 | |||||||||||
Income tax expense | 10,470 | 10,298 | 33,386 | 60,955 | |||||||||||
Net income | $ | 36,613 | $ | 34,951 | $ | 131,258 | $ | 91,060 | |||||||
Net income per Class A Nonvoting Common Share: | |||||||||||||||
Basic | $ | 0.69 | $ | 0.67 | $ | 2.50 | $ | 1.76 | |||||||
Diluted | $ | 0.68 | $ | 0.66 | $ | 2.46 | $ | 1.73 | |||||||
Dividends | $ | 0.21 | $ | 0.21 | $ | 0.85 | $ | 0.83 | |||||||
Net income per Class B Voting Common Share: | |||||||||||||||
Basic | $ | 0.69 | $ | 0.67 | $ | 2.48 | $ | 1.75 | |||||||
Diluted | $ | 0.68 | $ | 0.66 | $ | 2.45 | $ | 1.72 | |||||||
Dividends | $ | 0.21 | $ | 0.21 | $ | 0.83 | $ | 0.81 | |||||||
Weighted average common shares outstanding: | |||||||||||||||
Basic | 52,885 | 51,822 | 52,596 | 51,677 | |||||||||||
Diluted | 53,647 | 52,658 | 53,323 | 52,524 | |||||||||||
BRADY CORPORATION AND SUBSIDIARIES | |||||||
CONSOLIDATED BALANCE SHEETS | |||||||
(Unaudited; Dollars in thousands) | |||||||
July 31, 2019 | July 31, 2018 | ||||||
ASSETS | |||||||
Current assets: | |||||||
Cash and cash equivalents | $ | 279,072 | $ | 181,427 | |||
Accounts receivable—net | 158,114 | 161,282 | |||||
Inventories | 120,037 | 113,071 | |||||
Prepaid expenses and other current assets | 16,056 | 15,559 | |||||
Total current assets | 573,279 | 471,339 | |||||
Property, plant and equipment—net | 110,048 | 97,945 | |||||
Goodwill | 410,987 | 419,815 | |||||
Other intangible assets | 36,123 | 42,588 | |||||
Deferred income taxes | 7,298 | 7,582 | |||||
Other | 19,573 | 17,662 | |||||
Total | $ | 1,157,308 | $ | 1,056,931 | |||
LIABILITIES AND STOCKHOLDERS’ EQUITY | |||||||
Current liabilities: | |||||||
Accounts payable | $ | 64,810 | $ | 66,538 | |||
Accrued compensation and benefits | 62,509 | 67,619 | |||||
Taxes, other than income taxes | 8,107 | 8,318 | |||||
Accrued income taxes | 6,557 | 3,885 | |||||
Other current liabilities | 49,796 | 44,567 | |||||
Current maturities on long-term debt | 50,166 | — | |||||
Total current liabilities | 241,945 | 190,927 | |||||
Long-term obligations, less current maturities | — | 52,618 | |||||
Other liabilities | 64,589 | 61,274 | |||||
Total liabilities | 306,534 | 304,819 | |||||
Stockholders’ equity: | |||||||
Common stock: | |||||||
Class A nonvoting common stock—Issued 51,261,487 shares, and outstanding 49,458,841 and 48,393,617 shares, respectively | 513 | 513 | |||||
Class B voting common stock—Issued and outstanding, 3,538,628 shares | 35 | 35 | |||||
Additional paid-in capital | 329,969 | 325,631 | |||||
Retained earnings | 637,843 | 553,454 | |||||
Treasury stock—1,802,646 and 2,867,870 shares, respectively, of Class A nonvoting common stock, at cost | (46,332 | ) | (71,120 | ) | |||
Accumulated other comprehensive loss | (71,254 | ) | (56,401 | ) | |||
Total stockholders’ equity | 850,774 | 752,112 | |||||
Total | $ | 1,157,308 | $ | 1,056,931 | |||
BRADY CORPORATION AND SUBSIDIARIES | |||||||
CONSOLIDATED STATEMENTS OF CASH FLOWS | |||||||
(Unaudited; Dollars in thousands) | |||||||
Year ended July 31, | |||||||
2019 | 2018 | ||||||
Operating activities: | |||||||
Net income | $ | 131,258 | $ | 91,060 | |||
Adjustments to reconcile net earnings to net cash provided by operating activities: | |||||||
Depreciation and amortization | 23,799 | 25,442 | |||||
Non-cash portion of stock-based compensation expense | 12,092 | 9,980 | |||||
Gain on sale of business, net | — | (4,666 | ) | ||||
Deferred income taxes | 7,825 | 33,656 | |||||
Other | 2,347 | (15 | ) | ||||
Changes in operating assets and liabilities: | |||||||
Accounts receivable | 3,496 | (16,612 | ) | ||||
Inventories | (9,922 | ) | (7,563 | ) | |||
Prepaid expenses and other assets | 368 | 1,747 | |||||
Accounts payable and other liabilities | (11,903 | ) | 13,106 | ||||
Income taxes | 2,851 | (3,093 | ) | ||||
Net cash provided by operating activities | 162,211 | 143,042 | |||||
Investing activities: | |||||||
Purchases of property, plant and equipment | (32,825 | ) | (21,777 | ) | |||
Divestiture of business, net of cash transferred with business | — | 19,141 | |||||
Other | (1,638 | ) | (269 | ) | |||
Net cash used in investing activities | (34,463 | ) | (2,905 | ) | |||
Financing activities: | |||||||
Payment of dividends | (44,732 | ) | (42,873 | ) | |||
Proceeds from exercise of stock options | 23,466 | 12,099 | |||||
Purchase of treasury stock | (3,182 | ) | (1,462 | ) | |||
Proceeds from borrowing on credit facilities | 13,637 | 23,221 | |||||
Repayment of borrowing on credit facilities | (13,568 | ) | (78,419 | ) | |||
Other | (3,249 | ) | (3,246 | ) | |||
Net cash used in financing activities | (27,628 | ) | (90,680 | ) | |||
Effect of exchange rate changes on cash | (2,475 | ) | (1,974 | ) | |||
Net increase in cash and cash equivalents | 97,645 | 47,483 | |||||
Cash and cash equivalents, beginning of period | 181,427 | 133,944 | |||||
Cash and cash equivalents, end of period | $ | 279,072 | $ | 181,427 | |||
Supplemental disclosures: | |||||||
Cash paid during the period for: | |||||||
Interest | $ | 2,651 | $ | 2,976 | |||
Income taxes | 24,335 | 33,267 | |||||
BRADY CORPORATION AND SUBSIDIARIES | |||||||||||||||
SEGMENT INFORMATION | |||||||||||||||
(Unaudited; Dollars in thousands) | |||||||||||||||
Three Months Ended July 31, | Year Ended July 31, | ||||||||||||||
2019 | 2018 | 2019 | 2018 | ||||||||||||
NET SALES | |||||||||||||||
ID Solutions | $ | 221,817 | $ | 217,796 | $ | 863,100 | $ | 846,087 | |||||||
Workplace Safety | 73,461 | 79,703 | 297,545 | 327,764 | |||||||||||
Total | $ | 295,278 | $ | 297,499 | $ | 1,160,645 | $ | 1,173,851 | |||||||
SALES INFORMATION | |||||||||||||||
ID Solutions | |||||||||||||||
Organic | 3.3 | % | 2.4 | % | 4.1 | % | 3.4 | % | |||||||
Currency | (1.5 | )% | 0.7 | % | (2.1 | )% | 2.3 | % | |||||||
Divestiture | — | % | — | % | — | % | — | % | |||||||
Total | 1.8 | % | 3.1 | % | 2.0 | % | 5.7 | % | |||||||
Workplace Safety | |||||||||||||||
Organic | (2.6 | )% | 3.0 | % | (0.7 | )% | 0.7 | % | |||||||
Currency | (3.3 | )% | 1.6 | % | (3.7 | )% | 4.6 | % | |||||||
Divestiture | (1.9 | )% | (2.3 | )% | (4.8 | )% | (0.6 | )% | |||||||
Total | (7.8 | )% | 2.3 | % | (9.2 | )% | 4.7 | % | |||||||
Total Company | |||||||||||||||
Organic | 1.7 | % | 2.5 | % | 2.8 | % | 2.6 | % | |||||||
Currency | (1.9 | )% | 1.0 | % | (2.6 | )% | 3.0 | % | |||||||
Divestiture | (0.5 | )% | (0.6 | )% | (1.3 | )% | (0.2 | )% | |||||||
Total | (0.7 | )% | 2.9 | % | (1.1 | )% | 5.4 | % | |||||||
SEGMENT PROFIT | |||||||||||||||
ID Solutions | $ | 45,642 | $ | 36,515 | $ | 164,953 | $ | 143,411 | |||||||
Workplace Safety | 6,724 | 10,675 | 23,025 | 31,712 | |||||||||||
Total | $ | 52,366 | $ | 47,190 | $ | 187,978 | $ | 175,123 | |||||||
SEGMENT PROFIT AS A PERCENT OF NET SALES | |||||||||||||||
ID Solutions | 20.6 | % | 16.8 | % | 19.1 | % | 16.9 | % | |||||||
Workplace Safety | 9.2 | % | 13.4 | % | 7.7 | % | 9.7 | % | |||||||
Total | 17.7 | % | 15.9 | % | 16.2 | % | 14.9 | % | |||||||
Three Months Ended July 31, | Year Ended July 31, | ||||||||||||||
2019 | 2018 | 2019 | 2018 | ||||||||||||
Total segment profit | $ | 52,366 | $ | 47,190 | $ | 187,978 | $ | 175,123 | |||||||
Unallocated amounts: | |||||||||||||||
Administrative costs | (6,211 | ) | (7,076 | ) | (25,550 | ) | (27,093 | ) | |||||||
Gain on divestiture | - | 4,666 | - | 4,666 | |||||||||||
Investment and other income | 1,621 | 1,184 | 5,046 | 2,487 | |||||||||||
Interest expense | (693 | ) | (715 | ) | (2,830 | ) | (3,168 | ) | |||||||
Income before income taxes | $ | 47,083 | $ | 45,249 | $ | 164,644 | $ | 152,015 | |||||||
For More Information:
Investor contact:
Media contact:
Source: Brady Corporation