Brady Corporation · NYSE:BRC
Brady — Q4 2019 Earnings Presentation
16 slides from Brady's earnings presentation, Sep 6, 2019
Slide 1: Brady Corporation F'19 Q4 Financial Results
Brady Corporation F’19 Q4 Financial Results September 6, 2019
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: Q4 F'19 Financial Summary
Q4 F’19 Financial Summary 3 • Sales were $295.3M in Q4 of F’19 compared with $297.5M in Q4 of F’18. – Organic sales increased 1.7%. – Foreign currency translation decreased sales 1.9%. – Sale of business decreased sales 0.5%. • Gross profit margin of 49.6% in Q4 of F’19 is consistent with Q4 of F’18
Slide 4: Sales Overview
Sales Overview 4 SALES (millions of USD) $305 $298 $297 $295 $295 $293 $289 $290 $290 $288 $285 $282 $275 $265 $255 Q4 F'17 Q1 F'18 Q2 F'18 Q3 F'18 Q4 F'18 Q1 F'19 Q2 F'19 Q3 F'19 Q4 F'19 Organic Sales 3.0% 1.7% 3.2% 3.2% 2.5% 4.7% 2.3% 2.4% 1.7% Growth Q4 F’19 SALES: Q4 F’19 SALES COMMENTARY: • 1.7
Slide 5: Gross Profit Margin
Gross Profit Margin 5 GROSS PROFIT & GPM% (millions of USD) 50.6% 50.3% 50.3% 49.9% 50.0% 49.7% 49.6% 49.5% 49.6% $151 50% $150 $147 $146 $147 $146 $147 $144 $144 $140 45% $125 $100 40% Q4 F'17 Q1 F'18 Q2 F'18 Q3 F'18 Q4 F'18 Q1 F'19 Q2 F'19 Q3 F'19 Q4 F'19 Q4 F’19 – GROSS PROFIT MARGIN: • Gross pro
Slide 6: SG&A Expense
SG&A Expense 6 SG&A EXPENSE AND SG&A EXPENSE AS A % of SALES (millions of USD) 34.5% $110 33.9% 34.1% 35% 33.4% 32.8% 32.3% 32.7% $102 $100 33% 30.6% $100 $98 $97 $95 $95 30.2% $93 30% $91 $90 $89 28% $80 25% Q4 F'17 Q1 F'18 Q2 F'18 Q3 F'18 Q4 F'18 Q1 F'19 Q2 F'19 Q3 F'19 Q4 F'19 Q4 F’19 – SG&A EXPE
Slide 7: R&D Expense
R&D Expense 7 R&D EXPENSE AND R&D EXPENSE AS A % of SALES (millions of USD) $14.0 3.9% 3.9% 3.9% 3.9% 3.9% 3.9% 3.8% 3.8% 4.0% 3.6% $12.0 $11.7 $11.7 $11.3 $11.3 $11.4 $11.3 $11.0 $11.1 $10.5 3.5% $10.0 3.0% $8.0 $6.0 2.5% Q4 F'17 Q1 F'18 Q2 F'18 Q3 F'18 Q4 F'18 Q1 F'19 Q2 F'19 Q3 F'19 Q4 F'19 Q4INC
Slide 8: Income Before Income Taxes
Income Before Income Taxes 8 INCOME BEFORE INCOME TAXES (millions of USD) $50 $47.1 $45.2 $45 $41.0 $39.9 $40 $37.0 $35.9 $36.7 $34.8 $35.0 $35 $30 $25 $20 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 F'17 F'18 F'18 F'18 F'18 F'19 F'19 F'19 F'19 Year on Year Growth 12.2% 12.2% 20.4% 20.7% 26.0% 14.8% 4.8% 10.8% 4.1%
Slide 9: Net Income & Diluted EPS
Net Income & Diluted EPS 9 NET INCOME (millions of USD) NET INCOME PER CLASS A DILUTED SHARE $0.66 $0.68 $40 $36.6 $0.65 $35.0 $34.8 $0.58 $0.60 $0.55 $30.6 $29.2 $30 $0.48 $0.49 $0.49 $25.2 $25.8 $26.0 $0.40 $20 $0.20 $10 $4.3 $0.08 $0 $0.00 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 F'1
Slide 10: Cash Generation & Uses
Cash Generation & Uses 10 CASH FLOW FROM OPERATING ACTIVITIES (millions of USD) CASH FLOWS IN Q4 OF F’19: $70 $65.3 • Cash flow from operating activities was $65.3M in Q4 of F’19 compared to $53.8M in Q4 of F’18. $60 $52.9 $53.8 $52.7 $50 $46.8 • Free cash flow* was $50.0M in Q4 of F’19 compared to
Slide 11: Net Cash
Net Cash 11 NET CASH (millions of USD) DEBT STRUCTURE (millions of USD) $250 $229 $200 $188 Interest July 31, 2019 July 31, 2018 Rate Balance Balance $151 Private Placements: $150 $138 EUR-den. 2010 Series (10-yr.) 4.24% $ (50.2) $ (52.6) $129 TOTAL DEBT $ (50.2) $ (52.6) $100 Cash and Cash Equivale
Slide 12: F'19 Financial Summary
F’19 Financial Summary 12 Year Ended July 31, 1 2019 2018 Change Sales $ 1,160.6 $ 1,173.9 Organic Sales Growth 2.8% 2.6% Gross Margin 578.7 588.3 % of Sales 49.9% 50.1% Research and Development (45.2) (45.3) Selling, General and Administrative (371.1) (390.3) - 4.9% % of Sales 32.0% 33.3% Operating
Slide 13: Full-Year F'20 Guidance
Full-Year F’20 Guidance 13 F’20 Diluted EPS $2.45 to $2.55 F’20 Guidance Assumptions: • Full-year organic sales growth of approximately 1.5% - 2.5%. • Full-year depreciation and amortization expense of approximately $25M. • Income tax rate in the low 20% range. • Full-year capital expenditures of ap
Slide 14: Identification Solutions Q4 F'19 vs. Q4 F'18
Identification Solutions 14 Q4 F’19 vs. Q4 F’18 (millions of USD) Q4 F’19 SUMMARY: • Revenues increased 1.8%: Q4 F’19 Q4 F’18 Change • Organic = +3.3% Sales $ 221.8 $ 217.8 + 1.8% • Fx = - (1.5)% Segment Profit 45.6 36.5 + 25.0% • Organic sales increased in the low-single digits in the Americas, EME
Slide 15: Workplace Safety Q4 F'19 vs. Q4 F'18
Workplace Safety 15 Q4 F’19 vs. Q4 F’18 (millions of USD) Q4 F’19 SUMMARY: • Revenues decreased (7.8%): Q4 F’19 Q4 F’18 Change • Organic = - (2.6%) Sales $ 73.5 $ 79.7 - 7.8% • Fx = - (3.3%) Segment Profit 6.7 10.7 - 37.0% • Divestiture = - (1.9%) Segment Profit % 9.2% 13.4% - 420 bps • Organic sale
Slide 16: Investor Relations
Investor Relations 16 Brady Contact: Ann Thornton Investor Relations 414-438-6887 Ann_Thornton@bradycorp.com See our web site at www.bradycorp.com