Brady Corporation · NYSE:BRC
Brady — Q4 F'17 Earnings Presentation
15 slides from Brady's earnings presentation, Sep 7, 2017
Slide 1: F'17 Q4 Financial Results
Brady Corporation F’17 Q4 Financial Results September 7, 2017
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'17 Financial Summary
Q4 F’17 Financial Summary 3 • Sales increased 2.5% to $289.2M in Q4 of F’17 vs. $282.1M in Q4 of F’16. – Organic sales increased 3.0%. – Foreign currency translation reduced sales by 0.5%. • Gross profit margin of 49.7% in Q4 of F’17 compared with 50.0% in Q4 of F’16. • SG&A expense of $96.5M (33.4%
Slide 4: Sales Overview
Sales Overview 4 SALES (millions of USD) $305 $295 $289 $287 $285 $283 $282 $280 $276 $275 $269 $268 $265 $255 Q1 F'16 Q2 F'16 Q3 F'16 Q4 F'16 Q1 F'17 Q2 F'17 Q3 F'17 Q4 F'17 Organic Sales (2.2%) 0.4% (0.1%) (0.9%) (0.2%) 1.3% (1.9%) 3.0% Growth Q4 F’17 SALES: Q4 F’17 SALES COMMENTARY: • 3.0% increa
Slide 5: Gross Profit Margin
Gross Profit Margin 5 GROSS PROFIT & GPM% (millions of USD) $175 55% 50.7% 50.7% 50.0% 50.1% 50.1% 49.7% 49.2% 49.5% 50% $150 $145 $144 $141 $140 $140 45% $139 $133 $134 40% $125 35% $100 30% Q1 F'16 Q2 F'16 Q3 F'16 Q4 F'16 Q1 F'17 Q2 F'17 Q3 F'17 Q4 F'17 Q4 F’17 - GROSS PROFIT MARGIN: • GPM of 49.7
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% 37.3% 36.9% 35.3% 35.7% 38% 35.6% 35.0% $110 34.9% $106 35% 33.4% $101 $100 $100 $98 $98 $98 33% $97 $95 30% $90 28% $80 25% Q1 F'16 Q2 F'16 Q3 F'16 Q4 F'16 Q1 F'17 Q2 F'17 Q3 F'17 Q4 F'17 Q4 F’17 - SG&A EXPENSE:
Slide 7: Net Earnings & EPS
Net Earnings & EPS 7 NET EARNINGS (millions of USD) NET EARNINGS PER CLASS A DILUTED SHARE $40 $0.60 $30 $0.49 $0.49 $0.48 $25 $25 $25 $0.44 $0.43 $23 $23 $0.42 $21 $0.40 $0.37 $20 $19 $15 $0.30 $10 $0.20 $0 Q1 F'16 Q2 F'16 Q3 F'16 Q4 F'16 Q1 F'17 Q2 F'17 Q3 F'17 Q4 F'17 $0.00 Q1 F'16 Q2 F'16 Q3 F'1
Slide 8: Cash Generation & Uses
Cash Generation & Uses 8 CASH FLOW FROM OPERATING ACTIVITIES (millions of USD) CASH FLOWS IN Q4 OF F’17: $60 $53 • Cash flow from operating activities was $50 $52.9M in Q4 of F’17 compared to $40.4M in Q4 of F’16. $40 $40 $40 $38 $34 • Cash flow from operating activities was $30 positively impacted
Slide 9: Net Cash (Debt)
Net Cash (Debt) 9 NET CASH (DEBT) (millions of USD) DEBT STRUCTURE (millions of USD) Interest July 31, 2017 July 31, 2016 $50 Rate Balance Balance Revolver Borrowings: USD-denominated 1.94% $ (17.0) $ (112.0) $0 EUR-denominated 0.75% (34.3) - $(9) $26 China Borrowings: -$50 $(38) USD & CNY-denominat
Slide 10: F'17 Financial Summary
F’17 Financial Summary 10 1 Year Ended July 31, 2017 2016 Change Sales $ 1,113.3 $ 1,120.6 Organic Sales 0.5% (0.7%) Gross Margin 558.3 558.8 % of Sales 50.1% 49.9% Research and Development (39.6) (35.8) + 11% Selling, General and Administrative (387.7) (405.1) - 4% % of Sales 34.8% 36.2% Operating
Slide 11: F'18 Guidance
F’18 Guidance 11 F’18 Diluted EPS $1.85 to $1.95 Guidance Assumptions: • Low-single digit organic sales growth. • Full-year depreciation and amortization expense of approximately $26M. • Full-year income tax rate of 27% to 29%. • Full-year capital expenditures of approximately $30M.
Slide 12: Identification Solutions
Identification Solutions 12 Q4 F’17 vs. Q4 F’16 PERFORMANCE (millions of USD) Q4 F’17 SUMMARY: Q4 F’17 Q4 F’16 Change • Revenues increased 4.0%: • Organic = + 4.4% Sales $ 211.3 $ 203.2 + 4.0% • Fx = - (0.4)% Segment Profit 35.9 31.9 + 12.6% • Organic sales increased in all regions with low-single S
Slide 13: Workplace Safety
Workplace Safety 13 Q4 F’17 vs. Q4 F’16 PERFORMANCE (millions of USD) Q4 F’17 SUMMARY: Q4 F’17 Q4 F’16 Change • Revenues decreased - (1.2%): • Organic = - (0.6)% Sales $ 77.9 $ 78.9 - 1.2% • Fx = - (0.6)% Segment Profit 7.9 9.1 - 12.8% • Organic sales declined in the high-single digits in the Segmen
Slide 14: Future Financial Performance
Future Financial Performance 14 Expectation F’17 Exiting F’18 Organic Sales Organic Sales Organic Revenue Drivers: Growth Growth • Unrivaled customer service. Below GDP • Industry expertise. • Innovative new products. Organic GDP+ • Integrated solutions creating smarter products. Growth • E-business
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