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Brady Corporation
Quarter Ended
The company continued its portfolio realignment process by announcing
plans to sell its
Sales from continuing operations for the fiscal 2013 third quarter were
up 11.0 percent to
Net earnings from continuing operations in the fiscal 2013 third quarter
were
Earnings from continuing operations per diluted Class A Nonvoting Common
Share were
Nine Months Ended
Sales for the nine-month period ended
Net earnings from continuing operations for the nine-month period ended
Earnings from continuing operations per diluted Class A Nonvoting Common
Share were
Commentary and Guidance:
“In the face of a challenging economy, we continue to position Brady for
long-term success by optimizing our portfolio of businesses, aligning
our organization with growth opportunities and reducing our
infrastructure costs. This morning we announced our intention to sell
our Die-Cut business which will continue the process of portfolio
realignment as we have already divested three businesses and acquired
“In addition to improving organic growth, we believe that our
reorganization around global business platforms will yield approximately
Brady’s Chief Financial Officer,
A webcast regarding Brady’s fiscal 2013 third quarter financial results
will be available at www.bradycorp.com
beginning at
* See accompanying notes for Non-GAAP measures.
Brady believes that certain statements in this news release are
“forward-looking statements” within the meaning of the Private
Securities Litigation Reform Act of 1995. All statements related to
future, not past, events included in this news release, including,
without limitation, statements regarding Brady’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 are forward-looking
statements. When used in this news release, 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 the length or severity
of the current worldwide economic downturn or timing or strength of a
subsequent recovery; future financial performance of major markets Brady
serves, which include, without limitation, telecommunications,
manufacturing, electrical, construction, laboratory, education,
governmental, public utility, computer, transportation; difficulties in
making and integrating acquisitions; risks associated with newly
acquired businesses; Brady’s ability to develop and successfully market
new products; changes in the supply of, or price for, parts and
components; increased price pressure from suppliers and customers;
fluctuations in currency rates versus the US dollar; unforeseen tax
consequences; potential write-offs of Brady’s substantial intangible
assets; Brady’s ability to retain significant contracts and customers;
risks associated with international operations; Brady’s ability to
maintain compliance with its debt covenants; technology changes;
business interruptions due to implementing business systems;
environmental, health and safety compliance costs and liabilities;
future competition; interruptions to sources of supply; Brady’s ability
to realize cost savings from operating initiatives; difficulties
associated with exports; risks associated with restructuring plans;
risks associated with obtaining governmental approvals and maintaining
regulatory compliance; and 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
BRADY CORPORATION AND SUBSIDIARIES | ||||||||||||||||
CONDENSED CONSOLIDATED STATEMENTS OF INCOME | ||||||||||||||||
(Dollars in Thousands, Except Per Share Data) | ||||||||||||||||
(Unaudited) | (Unaudited) | |||||||||||||||
Three Months Ended April 30, | Nine Months Ended April 30, | |||||||||||||||
2013 | 2012 | 2013 | 2012 | |||||||||||||
Net sales | $ | 305,737 | $ | 275,388 | $ | 856,408 | $ | 813,573 | ||||||||
Cost of products sold | 146,031 | 123,641 | 403,888 | 367,330 | ||||||||||||
Gross margin | 159,706 | 151,747 | 452,520 | 446,243 | ||||||||||||
Operating expenses: | ||||||||||||||||
Research and development | 8,062 | 8,200 | 24,162 | 25,657 | ||||||||||||
Selling, general and administrative | 112,148 | 98,614 | 321,909 | 293,518 | ||||||||||||
Restructuring charges | 8,540 | 1,977 | 10,487 | 1,977 | ||||||||||||
Total operating expenses | 128,750 | 108,791 | 356,558 | 321,152 | ||||||||||||
Operating income | 30,956 | 42,956 | 95,962 | 125,091 | ||||||||||||
Other income and (expense): | ||||||||||||||||
Investment and other income | 1,131 | 1,108 | 2,427 | 1,719 | ||||||||||||
Interest expense | (4,185 | ) | (4,735 | ) | (12,755 | ) | (14,715 | ) | ||||||||
Earnings from continuing operations before income taxes | 27,902 | 39,329 | 85,634 | 112,095 | ||||||||||||
Income taxes | 6,064 | 11,290 | 47,965 | 27,767 | ||||||||||||
Net earnings from continuing operations | $ | 21,838 | $ | 28,039 | $ | 37,669 | $ | 84,328 | ||||||||
(Loss) from discontinued operations, net of income taxes | (17,605 | ) | (387 | ) | (14,933 | ) | (113,898 | ) | ||||||||
Net earnings (loss) | $ | 4,233 | $ | 27,652 | $ | 22,736 | $ | (29,570 | ) | |||||||
Earnings from continuing operations per Class A Nonvoting Common Share: | ||||||||||||||||
Basic | $ | 0.42 | $ | 0.53 | $ | 0.73 | $ | 1.60 | ||||||||
Diluted | $ | 0.42 | $ | 0.53 | $ | 0.73 | $ | 1.59 | ||||||||
Earnings from continuing operations per Class B Voting Common Share: | ||||||||||||||||
Basic | $ | 0.42 | $ | 0.53 | $ | 0.72 | $ | 1.59 | ||||||||
Diluted | $ | 0.42 | $ | 0.53 | $ | 0.71 | $ | 1.57 | ||||||||
(Loss) from discontinued operations per Class A Nonvoting Common Share: | ||||||||||||||||
Basic | $ | (0.34 | ) | $ | — | $ | (0.29 | ) | $ | (2.17 | ) | |||||
Diluted | $ | (0.34 | ) | $ | (0.01 | ) | $ | (0.29 | ) | $ | (2.16 | ) | ||||
(Loss) from discontinued operations per Class B Voting Common Share: | ||||||||||||||||
Basic | $ | (0.34 | ) | $ | — | $ |
(0.30 |
) | $ | (2.17 | ) | |||||
Diluted | $ | (0.34 | ) | $ | (0.01 | ) | $ | (0.29 | ) | $ | (2.15 | ) | ||||
Earnings per Class A Nonvoting Common Share: | ||||||||||||||||
Basic | $ | 0.08 | $ | 0.53 | $ | 0.44 | $ | (0.57 | ) | |||||||
Diluted | $ | 0.08 | $ | 0.52 | $ | 0.44 | $ | (0.57 | ) | |||||||
Dividends | $ | 0.19 | $ | 0.185 | $ | 0.57 | $ | 0.555 | ||||||||
Earnings per Class B Voting Common Share: | ||||||||||||||||
Basic | $ | 0.08 | $ | 0.53 | $ | 0.42 | $ | (0.58 | ) | |||||||
Diluted | $ | 0.08 | $ | 0.52 | $ | 0.42 | $ | (0.58 | ) | |||||||
Dividends | $ | 0.19 | $ | 0.185 | $ | 0.553 | $ | 0.538 | ||||||||
Weighted average common shares outstanding (in thousands): | ||||||||||||||||
Basic | 51,415 | 52,513 | 51,210 | 52,539 | ||||||||||||
Diluted | 52,041 | 53,003 | 51,685 | 52,946 |
BRADY CORPORATION AND SUBSIDIARIES | |||||||||
CONDENSED CONSOLIDATED BALANCE SHEETS | |||||||||
(Dollars in Thousands) | |||||||||
(Unaudited) | |||||||||
April 30, 2013 | July 31, 2012 | ||||||||
ASSETS |
|||||||||
Current assets: | |||||||||
Cash and cash equivalents | $ | 77,034 | $ | 305,900 | |||||
Accounts receivable—net | 177,343 | 199,006 | |||||||
Inventories: | |||||||||
Finished products |
62,995 | 64,740 | |||||||
Work-in-process | 14,908 | 15,377 | |||||||
Raw materials and supplies | 21,703 | 25,407 | |||||||
Total inventories | 99,606 | 105,524 | |||||||
Assets held for sale | 108,623 | — | |||||||
Prepaid expenses and other current assets | 41,461 | 40,424 | |||||||
Total current assets | 504,067 | 650,854 | |||||||
Other assets: | |||||||||
Goodwill | 841,449 | 676,791 | |||||||
Other intangible assets | 174,583 | 84,119 | |||||||
Deferred income taxes | 6,305 | 45,356 | |||||||
Other | 20,915 | 20,584 | |||||||
Property, plant and equipment: | |||||||||
Cost: | |||||||||
Land | 9,081 | 8,651 | |||||||
Buildings and improvements | 100,504 | 101,962 | |||||||
Machinery and equipment | 278,233 | 292,130 | |||||||
Construction in progress | 9,358 | 10,417 | |||||||
397,176 | 413,160 | ||||||||
Less accumulated depreciation | 263,527 | 283,145 | |||||||
Property, plant and equipment—net | 133,649 | 130,015 | |||||||
Total | $ | 1,680,968 | $ | 1,607,719 | |||||
LIABILITIES AND STOCKHOLDERS’ INVESTMENT |
|||||||||
Current liabilities: | |||||||||
Notes payable | $ | 58,658 | $ | — | |||||
Accounts payable | 75,204 | 86,646 | |||||||
Wages and amounts withheld from employees | 36,840 | 54,629 | |||||||
Liabilities held for sale | 34,684 | — | |||||||
Taxes, other than income taxes | 7,603 | 9,307 | |||||||
Accrued income taxes | 10,650 | 14,357 | |||||||
Other current liabilities | 34,396 | 40,815 | |||||||
Current maturities on long-term debt | 61,265 | 61,264 | |||||||
Total current liabilities | 319,300 | 267,018 | |||||||
Long-term obligations, less current maturities | 218,378 | 254,944 | |||||||
Other liabilities | 109,635 | 76,404 | |||||||
Total liabilities | 647,313 | 598,366 | |||||||
Stockholders’ investment: | |||||||||
Common stock: | |||||||||
Class A nonvoting common stock—Issued 51,261,487 and 51,261,487 shares, respectively and outstanding 47,972,270 and 47,630,926 shares, respectively | 513 | 513 | |||||||
Class B voting common stock—Issued and outstanding, 3,538,628 shares | 35 | 35 | |||||||
Additional paid-in capital | 312,905 | 313,008 | |||||||
Earnings retained in the business | 725,682 | 732,290 | |||||||
Treasury stock—2,974,218 and 3,245,561 shares, respectively of Class A nonvoting common stock, at cost | (79,996 | ) | (92,600 | ) | |||||
Accumulated other comprehensive income | 76,439 | 59,411 | |||||||
Other | (1,923 | ) | (3,304 | ) | |||||
Total stockholders’ investment | 1,033,655 | 1,009,353 | |||||||
Total | $ | 1,680,968 | $ | 1,607,719 | |||||
BRADY CORPORATION AND SUBSIDIARIES | |||||||||
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS | |||||||||
(Dollars in Thousands) | |||||||||
(Unaudited)
Nine Months Ended April 30, |
|||||||||
2013 | 2012 | ||||||||
Operating activities: | |||||||||
Net income (loss) | $ | 22,736 | $ | (29,570 | ) | ||||
Adjustments to reconcile net income to net cash provided by operating activities: | |||||||||
Depreciation and amortization | 36,037 | 32,921 | |||||||
Non-cash portion of restructuring charges | 3,701 | 458 | |||||||
Non-cash portion of stock-based compensation expense | 6,964 | 7,592 | |||||||
Impairment charge | — | 115,688 | |||||||
Loss on write-down of assets held for sale | 15,658 | — | |||||||
Loss (gain) on sales of businesses | 3,138 | — | |||||||
Deferred income taxes | 33,780 | (3,192 | ) | ||||||
Changes in operating assets and liabilities (net of effects of business acquisitions/divestitures): | |||||||||
Accounts receivable | (6,410 | ) | 11,050 | ||||||
Inventories | (91 | ) | (5,595 | ) | |||||
Prepaid expenses and other assets | 541 | (4,386 | ) | ||||||
Accounts payable and accrued liabilities | (22,226 | ) | (39,472 | ) | |||||
Income taxes | (4,198 | ) | 15,101 | ||||||
Net cash provided by operating activities | 89,630 | 100,595 | |||||||
Investing activities: | |||||||||
Purchases of property, plant and equipment | (26,082 | ) | (14,498 | ) | |||||
Payments of contingent consideration | — | (2,580 | ) | ||||||
Settlement of net investment hedges | — | (797 | ) | ||||||
Acquisition of business, net of cash acquired | (301,157 | ) | (3,039 | ) | |||||
Sales of businesses, net of cash retained | 10,178 | — | |||||||
Other | (1,245 | ) | (1,536 | ) | |||||
Net cash used in investing activities | (318,306 | ) | (22,450 | ) | |||||
Financing activities: | |||||||||
Payment of dividends | (29,344 | ) | (29,235 | ) | |||||
Proceeds from issuance of common stock | 10,246 | 3,624 | |||||||
Purchase of treasury stock | (5,121 | ) | (12,309 | ) | |||||
Proceeds from borrowings on notes payable | 220,000 | — | |||||||
Repayment of borrowings on notes payable | (173,000 | ) | — | ||||||
Proceeds from borrowings on line of credit | 11,491 | — | |||||||
Principal payments on debt | (42,514 | ) | (42,514 | ) | |||||
Debt issuance costs | — | (961 | ) | ||||||
Income tax benefit from the exercise of stock options and deferred compensation distribution, and other | 1,794 | 754 | |||||||
Net cash provided by (used in) financing activities | (6,448 | ) | (80,641 | ) | |||||
Effect of exchange rate changes on cash | 6,258 | (13,050 | ) | ||||||
Net decrease in cash and cash equivalents | (228,866 | ) | (15,546 | ) | |||||
Cash and cash equivalents, beginning of period | 305,900 | 389,971 | |||||||
Cash and cash equivalents, end of period | $ | 77,034 | $ | 374,425 | |||||
Supplemental disclosures: | |||||||||
Cash paid during the period for: | |||||||||
Interest, net of capitalized interest | $ | 13,194 | $ | 15,746 | |||||
Income taxes, net of refunds | 26,786 | 19,959 | |||||||
Acquisitions: | |||||||||
Fair value of assets acquired, net of cash | $ | 168,675 | $ | 2,395 | |||||
Liabilities assumed | (57,860 | ) | (583 | ) | |||||
Goodwill | 190,342 | 1,227 | |||||||
Net cash paid for acquisitions | $ | 301,157 | $ | 3,039 | |||||
Information by regional segment for the three and nine months ended April 30, 2013 and 2012 is as follows: | ||||||||||||||||||||||||
(Dollars in Thousands) | Americas | EMEA | Asia-Pacific | Total Region |
Corporate and |
Total | ||||||||||||||||||
SALES TO EXTERNAL CUSTOMERS | ||||||||||||||||||||||||
Three months ended: | ||||||||||||||||||||||||
April 30, 2013 | $ | 178,559 | $ | 94,044 | $ | 33,134 | $ | 305,737 | — | $ | 305,737 | |||||||||||||
April 30, 2012 | $ | 143,083 | $ | 94,136 | $ | 38,169 | $ | 275,388 | — | $ | 275,388 | |||||||||||||
Nine months ended: | ||||||||||||||||||||||||
April 30, 2013 | $ | 470,418 | $ | 279,420 | $ | 106,570 | $ | 856,408 | — | $ | 856,408 | |||||||||||||
April 30, 2012 | $ | 419,862 | $ | 279,506 | $ | 114,205 | $ | 813,573 | — | $ | 813,573 | |||||||||||||
SALES INFORMATION | ||||||||||||||||||||||||
Three months ended April 30, 2013: | ||||||||||||||||||||||||
Organic | (2.9 | )% | (4.8 | )% | (11.6 | )% | (4.7 | )% | — | % | (4.7 | )% | ||||||||||||
Currency | (0.7 | )% | (1.3 | )% | (1.6 | )% | (1.1 | )% | — | % | (1.1 | )% | ||||||||||||
Acquisitions | 28.4 | % | 6.0 | % | — | % | 16.8 | % | — | % | 16.8 | % | ||||||||||||
Total | 24.8 | % | (0.1 | )% | (13.2 | )% | 11.0 | % | — | % | 11.0 | % | ||||||||||||
Nine months ended April 30, 2013: | ||||||||||||||||||||||||
Organic | (0.7 | )% | (4.2 | )% | (6.8 | )% | (2.7 | )% | — | % | (2.7 | )% | ||||||||||||
Currency | (0.8 | )% | (2.5 | )% | 0.1 | % | (1.3 | )% | — | % | (1.3 | )% | ||||||||||||
Acquisitions | 13.5 | % | 6.7 | % | — | % | 9.3 | % | — | % | 9.3 | % | ||||||||||||
Total | 12.0 | % | — | % | (6.7 | )% | 5.3 | % | — | % | 5.3 | % | ||||||||||||
SEGMENT PROFIT | ||||||||||||||||||||||||
Three months ended: | ||||||||||||||||||||||||
April 30, 2013 | $ | 42,942 | $ | 22,993 | $ | 5,485 | $ | 71,420 | $ | (1,282 | ) | $ | 70,138 | |||||||||||
April 30, 2012 | $ | 39,181 | $ | 25,566 | $ | 6,080 | $ | 70,827 | $ | (388 | ) | $ | 70,439 | |||||||||||
Percentage change | 9.6 | % | (10.1 | )% | (9.8 | )% | 0.8 | % | (0.4 | )% | ||||||||||||||
Nine months ended: | ||||||||||||||||||||||||
April 30, 2013 | $ | 119,179 | $ | 70,568 | $ | 15,793 | $ | 205,540 | $ | (5,049 | ) | $ | 200,491 | |||||||||||
April 30, 2012 | $ | 118,871 | $ | 78,432 | $ | 18,411 | $ | 215,714 | $ | (6,010 | ) | $ | 209,704 | |||||||||||
Percentage change | 0.3 | % | (10.0 | )% | (14.2 | )% | (4.7 | )% | (4.4 | )% | ||||||||||||||
NET INCOME RECONCILIATION (in thousands) | |||||||||||||||||||
Three Months Ended April 30, | Nine Months Ended April 30, | ||||||||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||||||
Total profit for reportable segments | $ | 71,420 | $ | 70,827 | $ | 205,540 | $ | 215,714 | |||||||||||
Corporate and eliminations | (1,282 | ) | (388 | ) | (5,049 | ) | (6,010 | ) | |||||||||||
Unallocated amounts: | |||||||||||||||||||
Administrative costs | (30,642 | ) | (25,506 | ) | (94,042 | ) | (82,636 | ) | |||||||||||
Restructuring charges | (8,540 | ) | (1,977 | ) | (10,487 | ) | (1,977 | ) | |||||||||||
Investment and other income | 1,131 | 1,108 | 2,427 | 1,719 | |||||||||||||||
Interest expense | (4,185 | ) | (4,735 | ) | (12,755 | ) | (14,715 | ) | |||||||||||
Earnings from continuing operations before income taxes | 27,902 | 39,329 | 85,634 | 112,095 | |||||||||||||||
Income taxes | 6,064 | 11,290 | 47,965 | 27,767 | |||||||||||||||
Net earnings from continuing operations | 21,838 | 28,039 | 37,669 | 84,328 | |||||||||||||||
(Loss) from discontinued operations, net of tax | (17,605 | ) | (387 | ) | (14,933 | ) | (113,898 | ) | |||||||||||
Net earnings (loss) | $ | 4,233 | $ | 27,652 | $ | 22,736 | $ | (29,570 | ) | ||||||||||
EBITDA: | ||||||||||||||||||
Brady is presenting EBITDA because it is used by many of our investors and lenders, and is presented as a convenience to them. EBITDA represents net income before interest expense, income taxes, depreciation and amortization. EBITDA is not a calculation based on generally accepted accounting principles ("GAAP"). The amounts included in the EBITDA calculation, however, are derived from amounts included in the Condensed Consolidated Statements of Income data. EBITDA should not be considered as an alternative to net income or operating income as an indicator of the Company's operating performance, or as an alternative to net cash provided by operating activities as a measure of liquidity. The EBITDA measure presented may not always be comparable to similarly titled measures reported by other companies due to differences in the components of the calculation. | ||||||||||||||||||
Fiscal 2013 | ||||||||||||||||||
Q1 | Q2 | Q3 | Q4 | Total | ||||||||||||||
EBITDA: | ||||||||||||||||||
Net income (loss) | $ | 27,188 | $ | (8,684 | ) | $ | 4,233 | $ | 22,737 | |||||||||
Interest expense | 4,163 | 4,406 | 4,185 | 12,754 | ||||||||||||||
Income taxes | 13,482 | 30,625 | 7,595 | 51,702 | ||||||||||||||
Depreciation and amortization | 10,675 | 11,371 | 13,991 | 36,037 | ||||||||||||||
Intangible asset write-down in restructuring charges | — | — | 3,207 | 3,207 | ||||||||||||||
Loss on write-down of assets held for sale | — | — | 15,658 | 15,658 | ||||||||||||||
EBITDA (non-GAAP measure) | $ | 55,508 | $ | 37,718 | $ | 48,869 | $ | 142,095 | ||||||||||
Fiscal 2012 | ||||||||||||||||||
Q1 | Q2 | Q3 | Q4 | Total | ||||||||||||||
EBITDA: | ||||||||||||||||||
Net income (loss) | $ | 32,732 | $ | (89,954 | ) | $ | 27,652 | $ | 11,659 | $ | (17,911 | ) | ||||||
Interest expense | 5,047 | 4,933 | 4,735 | 4,375 | 19,090 | |||||||||||||
Income taxes | 11,109 | 8,635 | 9,676 | 11,241 | 40,661 | |||||||||||||
Depreciation and amortization | 11,241 | 10,935 | 10,745 | 11,066 | 43,987 | |||||||||||||
Impairment charge | — | 115,688 | — | — | 115,688 | |||||||||||||
EBITDA (non-GAAP measure) | $ | 60,129 | $ | 50,237 | $ | 52,808 | $ | 38,341 | $ | 201,515 | ||||||||
Earnings from Continuing Operations Before Income Taxes Excluding Certain Items: | ||||||||||||||||||
Brady is presenting the Non-GAAP measure "Earnings from Continuing Operations 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 Condensed Consolidated Statements of Income data. We do not view these items to be part of our sustainable 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 Earnings from Continuing Operations Before Income Taxes to Earnings from Continuing Operations Before Income Taxes Excluding Certain Items": | ||||||||||||||||||
Three Months Ended April 30, | Nine Months Ended April 30, | |||||||||||||||||
2013 | 2012 | 2013 | 2012 | |||||||||||||||
Earnings from Continuing Operations Before Income Taxes (GAAP measure) | $ | 27,902 | $ | 39,329 | $ | 85,634 | $ | 112,095 | ||||||||||
Cost of goods sold | ||||||||||||||||||
Purchase accounting expense related to inventory | — | — | 1,530 | — | ||||||||||||||
Selling, general and administrative | ||||||||||||||||||
PDC acquisition-related expenses | — | — | 3,600 | — | ||||||||||||||
Restructuring charges | 8,540 | 1,977 | 10,487 | 1,977 | ||||||||||||||
Non-cash income tax charge | — | — | — | — | ||||||||||||||
Earnings from Continuing Operations Before Income Taxes Excluding Certain | ||||||||||||||||||
Certain Items (non-GAAP measure) | $ | 36,442 | $ | 41,306 | $ | 101,251 | $ | 114,072 | ||||||||||
Income Taxes on Continuing Operations Excluding Certain Items: | ||||||||||||||||||
Brady is presenting the Non-GAAP measure "Income Taxes on Continuing Operations 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 Condensed Consolidated Statements of Income data. We do not view these items to be part of our sustainable 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 Income Taxes on Continuing Operations to Income Taxes on Continuing Operations Excluding Certain Items: | ||||||||||||||||||
Three Months Ended April 30, | Nine Months Ended April 30, | |||||||||||||||||
2013 | 2012 | 2013 | 2012 | |||||||||||||||
Income Taxes on Continuing Operations (GAAP measure) | $ | 6,064 | $ | 11,290 | $ | 47,965 | $ | 27,767 | ||||||||||
Cost of goods sold | ||||||||||||||||||
Purchase accounting expense related to inventory | — | — | 581 | — | ||||||||||||||
Selling, general and administrative | ||||||||||||||||||
PDC acquisition-related expenses | — | — | 641 | — | ||||||||||||||
Restructuring charges | 1,691 | 162 | 2,003 | 162 | ||||||||||||||
Non-cash income tax charge | — | — | (25,000 | ) | — | |||||||||||||
Income Taxes on Continuing Operations Excluding Certain Items | ||||||||||||||||||
(non-GAAP measure) | $ | 7,755 | $ | 11,452 | $ | 26,190 | $ | 27,929 | ||||||||||
Net Earnings from Continuing Operations Excluding Certain Items: | ||||||||||||||||||
Brady is presenting the Non-GAAP measure "Net Earnings from Continuing Operations 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 Condensed Consolidated Statements of Income data. We do not view these items to be part of our sustainable 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 Net Earnings from Continuing Operations to Net Earnings from Continuing Operations Excluding Certain Items: | ||||||||||||||||||
Three Months Ended April 30, | Nine Months Ended April 30, | |||||||||||||||||
2013 | 2012 | 2013 | 2012 | |||||||||||||||
Net Earnings from Continuing Operations (GAAP measure) | $ | 21,838 | $ | 28,039 | $ | 37,669 | $ | 84,328 | ||||||||||
Cost of goods sold | ||||||||||||||||||
Purchase accounting expense related to inventory | — | — | 949 | — | ||||||||||||||
Selling, general and administrative | ||||||||||||||||||
PDC acquisition-related expenses | — | — | 2,959 | — | ||||||||||||||
Restructuring charges | 6,849 | 1,815 | 8,484 | 1,815 | ||||||||||||||
Non-cash income tax charge | — | — | 25,000 | — | ||||||||||||||
Net Earnings from Continuing Operations Excluding Certain Items | ||||||||||||||||||
(non-GAAP measure) | $ | 28,687 | $ | 29,854 | $ | 75,061 | $ | 86,143 | ||||||||||
Net Earnings from Continuing Operations Per Diluted Class A Diluted Nonvoting Common Share Excluding Certain Items: | ||||||||||||||||||
Brady is presenting the Non-GAAP measure "Net Earnings from Continuing Operations Per Diluted Class A Nonvoting Common Share 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 Condensed Consolidated Statements of Income data. We do not view these items to be part of our sustainable 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 Net Earnings from Continuing Operations Per Diluted Class A Nonvoting Common Share to Net Earnings from Continuing Operations Per Diluted Class A Nonvoting Common Share Excluding Certain Items: | ||||||||||||||||||
Three Months Ended April 30, | Nine Months Ended April 30, | |||||||||||||||||
2013 | 2012 | 2013 | 2012 | |||||||||||||||
Net Earnings from Continuing Operations Per Class A Diluted Nonvoting Share | $ | 0.42 | $ | 0.53 | $ | 0.73 | $ | 1.59 | ||||||||||
(GAAP measure) | ||||||||||||||||||
Cost of goods sold | ||||||||||||||||||
Purchase accounting expense related to inventory | — | — | 0.02 | — | ||||||||||||||
Selling, general and administrative | ||||||||||||||||||
PDC acquisition-related expenses | — | — | 0.06 | — | ||||||||||||||
Restructuring charges | 0.13 | 0.03 | 0.16 | 0.03 | ||||||||||||||
Non-cash income tax charge | — | — | 0.49 | — | ||||||||||||||
Net Earnings from Continuing Operations Per Class A Diluted Nonvoting | ||||||||||||||||||
Share Excluding Certain Items (non-GAAP measure) | $ | 0.55 | $ | 0.56 | $ | 1.45 | $ | 1.62 |
Source:
Brady Corporation
Aaron Pearce, 414-438-6895 (Investors)
Carole
Herbstreit, 414-438-6882 (Media)