Brady Corporation · NYSE:BRC
Brady — Q1 F2023 Earnings Presentation
18 slides from Brady's earnings presentation, Nov 17, 2022
Slide 1: Brady Corporation F'23 Q1 Financial Results
Brady Corporation F’23 Q1 Financial Results November 17, 2022
Slide 2: Forward-Looking Statements
2 Forward-Looking Statements 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, p
Slide 3: Q1 F'23 Highlights
Q1 F’23 Highlights 3 Strong Organic Organic sales grew 6.9%, with organic growth in both segments. Sales Growth Foreign currency reduced sales by 6.6% Healthy Gross GPM of 48.1% compared to 48.2% in Q1 of F’22. Profit Margins Gross margins continue to be impacted by inflation. Driving Efficiencies S
Slide 4: Sales Overview
Sales Overview 4 SALES (millions of USD) $350 $339 $321 $324 $323 $325 $318 $306 $300 $296 $287 $277 $277 $275 $266 $266 $252 $250 $225 Q1 F'20 Q2 F'20 Q3 F'20 Q4 F'20 Q1 F'21 Q2 F'21 Q3 F'21 Q4 F'21 Q1 F'22 Q2 F'22 Q3 F'22 Q4 F'22 Q1 F'23 Organic Growth (0.4%) (1.2%) (6.0%) (13.7%) (4.9%) (6.3%) 6.
Slide 5: Gross Profit Margin
Gross Profit Margin 5 GROSS PROFIT & GPM% (millions of USD) 50.3% 50.4% 50.4% 49.3% 50% 48.7% 48.9% 48.7% $175 48.2% 48.2% 48.4% 48.1% 47.1% 47.0% $164 $163 48% $155 $155 $149 $148 $149 46% $150 $141 $139 $135 44% $130 $130 $125 42% $119 40% $100 38% Q1 F'20 Q2 F'20 Q3 F'20 Q4 F'20 Q1 F'21 Q2 F'21 Q
Slide 6: SG&A Expense
SG&A Expense 6 SG&A EXPENSE AND SG&A EXPENSE AS A % OF SALES (millions of USD) $120 35% 31.2% 31.6% 31.3% 30.2% 30.9% 30.7% 30.0% 30.6% 30.1% $110 29.1% 29.2% 28.4% 27.9% 30% $100 $97 $96 $94 $95 25% $93 $90 $91 $90 $90 $87 $83 $83 $82 20% $80 $76 15% $70 $60 10% Q1 F'20 Q2 F'20 Q3 F'20 Q4 F'20 Q1 F
Slide 7: R&D Expense
R&D Expense 7 R&D EXPENSE AND R&D EXPENSE AS A % OF SALES (millions of USD) 4.9% $18.0 4.4% 4.3% 4.3% 4.4% 4.3% 4.5% $15.8 $16.0 3.8% 3.8% $14.9 3.8% 3.7% 3.7% 3.7% 3.7% $13.9 $14.0 $13.9 $14.0 $13.2 3.5% $12.0 $11.0 $11.3 $10.5 $10.2 $9.8 $9.9 $10.0 $9.4 2.5% $8.0 $6.0 1.5% Q1 F'20 Q2 F'20 Q3 F'20
Slide 8: Income Before Income Taxes
Income Before Income Taxes 8 INCOME BEFORE INCOME TAXES (GAAP) (millions of USD) $60 $54.0 $51.3 $50.3 $50 $47.8 $44.7 $41.6 $42.4 $42.2 $41.6 $42.0 $39.4 $40 $34.9 $30 $22.2 $20 $10 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 F'20 F'20 F'20 F'20 F'21 F'21 F'21 F'21 F'22 F'22 F'22 F'22 F'23 Year-on-Year
Slide 9: Net Income & Diluted EPS
Net Income & Diluted EPS 9 NET INCOME (GAAP) (millions of USD) DILUTED EPS (GAAP) $0.81 $0.79 $40.1 $41.1 $39.4 $0.78 $0.80 $40 $37.5 $37.3 $0.70 $0.71 $35.0 $33.8 $0.67 $0.65 $33.6 $33.5 $0.62 $0.64 $30.9 $0.59 $30 $27.7 $28.0 $0.60 $0.53 $0.53 $20 $0.40 $13.6 $0.26 $10 $0.20 $0 $0.00 Q1 Q2 Q3 Q4 Q
Slide 10: Cash Generation
Cash Generation 10 CASH FLOW FROM OPERATING ACTIVITIES (millions of USD) $75 $62.8 $56.0 $50.8 $53.2 $55 CASH FLOWS IN Q1 OF F’23: $42.8 $45.1 $38.8 $40.9 $36.1 Overview: $35 $27.5 $28.0 Cash flow from operating activities was $28.0M in $14.3 Q1 of F’23 compared to $27.5M in Q1 of F’22. $15 ($3.2) F
Slide 11: Net Cash
Net Cash 11 NET CASH (millions of USD) $322 $300 $278 $256 $245 $240 $250 $218 $200 $190 $150 $109 $100 $91 $64 $50 $26 $19 $15 $0 Q1 F'20 Q2 F'20 Q3 F'20 Q4 F'20 Q1 F'21 Q2 F'21 Q3 F'21 Q4 F'21 Q1 F'22 Q2 F'22 Q3 F'22 Q4 F'22 Q1 F'23 STRONG BALANCE SHEET: October 31, 2022 cash = $114.5M. October 31
Slide 12: F'23 Diluted EPS Guidance
F’23 Diluted EPS Guidance 12 Diluted EPS Excluding Certain Items* $3.30 to $3.60 (+4.8% to +14.3% vs. F’22) GAAP Diluted EPS $3.13 to $3.43 (+7.9% to +18.3% vs. F’22) Guidance Assumptions: Organic sales growth in the mid-to-high single digit percentages. Negative foreign currency impact of approxima
Slide 13: Identification Solutions
Identification Solutions 13 Q1 F’23 vs. Q1 F’22 (millions of USD) Q1 F’23 SUMMARY: Q1 F’23 Q1 F’22 Change • Revenues increased 3.1%: • Organic growth = + 8.6%. Sales $ 256.4 $ 248.6 + 3.1% • Fx reduction = (5.5%). Segment Profit 51.5 48.8 + 5.5% • Organic sales growth remains strong in all regions.
Slide 14: Workplace Safety
Workplace Safety 14 Q1 F’23 vs. Q1 F’22 (millions of USD) Q1 F’23 SUMMARY: Q1 F’23 Q1 F’22 Change • Revenues declined 9.1%: • Organic growth = + 1.2%. Sales $ 66.2 $ 72.9 (9.1%) • Fx reduction = (10.3%). Segment Profit 6.4 2.3 + 178.2% • Segment profit increased as a result of our actions to: • Stre
Slide 15: Investor Relations
15 Investor Relations Brady Contact: Ann Thornton Investor Relations 414-438-6887 Ann_Thornton@bradycorp.com See our website at www.bradycorp.com/investors
Slide 16: Appendix: GAAP to Non-GAAP Reconciliations
Appendix GAAP to Non-GAAP Reconciliations
Slide 17: Non-GAAP Reconciliations
Non-GAAP Reconciliations 17 GAAP to NON-GAAP MEASURES (Unaudited; Dollars in Thousands, Except Per Share Amounts) In accordance with the U.S. Securities and Exchange Commission’s Regulation G, the following provides definitions of the non-GAAP measures used in the earnings release and the reconcilia
Slide 18: Non-GAAP Reconciliations
Non-GAAP Reconciliations 18 GAAP to NON-GAAP MEASURES (Unaudited; Dollars in Thousands, Except Per Share Amounts) In accordance with the U.S. Securities and Exchange Commission’s Regulation G, the following provides definitions of the non-GAAP measures used in the earnings release and the reconcilia