Brady Corporation · NYSE:BRC
Brady — Q3 F2018 Earnings Presentation
15 slides from Brady's earnings presentation, May 24, 2018
Slide 1: Brady Corporation F'18 Q3 Financial Results
Brady Corporation F’18 Q3 Financial Results May 24, 2018
Slide 2: Forward-Looking Statements
Forward-Looking Statements 2 In this presentation, 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, p
Slide 3: Q3 F'18 Financial Summary
Q3 F’18 Financial Summary 3 • Sales increased 8.2% to $298.4M in Q3 of F’18 compared with $275.9M in Q3 of F’17. – Organic sales increased 3.2%. – Foreign currency translation increased sales 5.0%. • Gross profit margin of 50.6% in Q3 of F’18 compared with 50.7% in Q3 of F’17. • SG&A expense of $101
Slide 4: Sales Overview
Sales Overview 4 SALES (millions of USD) $305 $298 $295 $289 $290 $287 $288 $285 $282 $280 $276 $275 $268 $265 $255 Q3 F'16 Q4 F'16 Q1 F'17 Q2 F'17 Q3 F'17 Q4 F'17 Q1 F'18 Q2 F'18 Q3 F'18 Organic Sales (0.1%) (0.9%) (0.2%) 1.3% (1.9%) 3.0% 1.7% 3.2% 3.2% Growth Q3 F’18 SALES: Q3 F’18 SALES COMMENTAR
Slide 5: Gross Profit Margin
Gross Profit Margin 5 GROSS PROFIT & GPM% (millions of USD) 50.7% 50.7% 50.6% 50.1% 50.3% 50.0% 50.1% 49.9% 49.7% $151 50% $150 $146 $145 $144 $144 $141 $140 $140 $134 45% $125 $100 40% Q3 F'16 Q4 F'16 Q1 F'17 Q2 F'17 Q3 F'17 Q4 F'17 Q1 F'18 Q2 F'18 Q3 F'18 Q3 F’18 – GROSS PROFIT MARGIN: • GPM was r
Slide 6: SG&A Expense
6 SG&A Expense SG&A EXPENSE AND SG&A EXPENSE AS A % of SALES (millions of USD) $120 40% 36.9% 35.7% 38% $110 34.9% 35.0% 35.3% 34.5% $106 33.4% 33.9% 34.1% 35% $98 $100 $100 $98 $98 33% $97 $98 $102 $95 30% $90 28% $80 25% Q3 F'16 Q4 F'16 Q1 F'17 Q2 F'17 Q3 F'17 Q4 F'17 Q1 F'18 Q2 F'18 Q3 F'18 Q3 F’
Slide 7: R&D Expense
7 R&D Expense R&D EXPENSE AND R&D EXPENSE AS A % of SALES (millions of USD) $14.0 3.8% 3.9% 3.9% 4.0% 3.6% 3.6% $12.0 3.5% $11.7 $11.3 $11.0 3.5% 3.3% $10.5 3.3% $10.0 $10.0 3.1% $9.5 $9.3 $9.1 3.0% $8.9 $8.0 $6.0 2.5% Q3 F'16 Q4 F'16 Q1 F'17 Q2 F'17 Q3 F'17 Q4 F'17 Q1 F'18 Q2 F'18 Q3 F'18 INCREASIN
Slide 8: Earnings Before Income Taxes
Earnings Before Income Taxes 8 EARNINGS BEFORE INCOME TAXES (millions of USD) $40 $35.9 $37.0 $34.8 $35.0 $35 $32.0 $31.0 $30.6 $29.7 $29.1 $30 $25 $20 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 F'16 F'16 F'17 F'17 F'17 F'17 F'18 F'18 F'18 Year on Year Growth 30.4% 49.1% 14.0% 42.2% 3.2% 12.2% 12.2% 20.4% 20.7% EAR
Slide 9: Net Earnings & Earnings per Share
Net Earnings & Earnings per Share 9 NET EARNINGS (millions of USD) NET EARNINGS PER CLASS A DILUTED SHARE $40 $0.60 $0.49 $0.49 $0.48 $0.49 $0.49 $30 $26.0 $25.1 $25.3 $25.2 $25.8 $0.42 $0.44 $0.43 $22.6 $22.6 $0.40 $21.0 $20 $0.20 $10 $4.3 $0.08 $0 $0.00 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q3 Q4 Q1 Q2 Q3 Q4
Slide 10: Cash Generation & Uses
Cash Generation & Uses 10 CASH FLOW FROM OPERATING ACTIVITIES (millions of USD) CASH FLOWS IN Q3 OF F’18: $60 $52.9 • Cash flow from operating activities was $46.8 $46.8M in Q3 of F’18 compared to $37.8M in $50 $40.3 $40.4 Q3 of F’17. $37.8 $40 $34.0 $34.7 • Free cash flow* was $40.5M in Q3 of F’18
Slide 11: Net Cash (Debt)
Net Cash (Debt) 11 NET CASH (DEBT) (millions of USD) DEBT STRUCTURE (millions of USD) $73 $75 Interest April 30, 2018 July 31, 2017 $48 $44 Rate Balance Balance $26 Revolver Borrowings: $25 USD-denominated - $ - $ (17.0) EUR-denominated 0.75% (3.6) (34.3) -$25 $(9) China Borrowings: USD & CNY-denomi
Slide 12: Full-Year F'18 Guidance
Full-Year F’18 Guidance 12 F’18 Diluted EPS guidance range tightened to $1.95 to $2.00.* F’18 Guidance Assumptions: • Low-single digit organic sales growth. • Full-year depreciation and amortization expense of approximately $26M. • Income tax rate of 27% to 29%.* • Full-year capital expenditures of
Slide 13: Identification Solutions
Identification Solutions 13 Q3 F’18 vs. Q3 F’17 PERFORMANCE (millions of USD) Q3 F’18 SUMMARY: Q3 F’18 Q3 F’17 Change • Revenues increased 7.8%: • Organic = +3.7% Sales $ 212.2 $ 196.9 + 7.8% • Fx = +4.1% Segment Profit 37.0 32.6 + 13.3% • Organic sales increased in the mid-single digits in Segment
Slide 14: Workplace Safety
Workplace Safety 14 Q3 F’18 vs. Q3 F’17 PERFORMANCE (millions of USD) Q3 F’18 SUMMARY: Q3 F’18 Q3 F’17 Change • Revenues increased 9.1%: • Organic = +1.7% Sales $ 86.3 $ 79.0 + 9.1% • Fx = +7.4% Segment Profit 7.5 5.1 + 47.2% • Organic sales increased in the mid-single digits in Segment Profit % 8.7
Slide 15: Investor Relations
Investor Relations 15 Brady Contact: Ann Thornton Investor Relations 414-438-6887 Ann_Thornton@bradycorp.com See our web site at www.bradycorp.com