Slide 1: Brady Corporation F'22 Q3 Financial Results
Brady Corporation F’22 Q3 Financial Results May 26, 2022
Slide 2: Forward-Looking Statements
2 Forward-Looking Statements 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'22 Highlights
3 Q3 F’22 Highlights CEO Appointment Appointment of Russell R. Shaller to President and CEO. 14.6% sales growth. Strong Sales Growth Organic sales grew 9.0%, with organic growth in both segments. Sequential GPM GPM of 48.4% increased sequentially from 47.0% last quarter. Improvement Margins remain c
Slide 4: Sales Overview
Sales Overview 4 SALES (millions of USD) $350 $339 $321 $325 $318 $306 $300 $293 $295 $296 $290 $287 $282 $277 $277 $275 $266 $266 $252 $250 $225 Q1 F'19 Q2 F'19 Q3 F'19 Q4 F'19 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 Organic Growth 4.7% 2.3% 2.4% 1.7%
Slide 5: Gross Profit Margin
Gross Profit Margin 5 GROSS PROFIT & GPM% (millions of USD) 50.3% 50.3% 50.4% 50.0% 49.5% 49.6% 49.3% 50% $175 48.7% 48.9% 48.7% 48.4% 48.2% 48.2% 47.1% 47.0% 48% $155 $164 $149 $148 $149 46% $150 $147 $146 $147 $140 $141 $139 $135 44% $130 $130 $125 42% $119 40% $100 38% Q1 F'19 Q2 F'19 Q3 F'19 Q4
Slide 6: SG&A Expense
SG&A Expense 6 SG&A EXPENSE AND SG&A EXPENSE AS A % OF SALES (millions of USD) $120 32.8% 35% 32.3% 32.7% 31.2% 31.6% 31.3% 30.2% 30.9% 30.7% 30.2% 30.0% 30.6% 30.1% $110 29.1% 28.4% 30% $100 $97 $96 $95 $95 $93 $94 $93 25% $90 $91 $89 $90 $87 $83 $83 $82 20% $80 $76 15% $70 $60 10% Q1 F'19 Q2 F'19
Slide 7: R&D Expense
R&D Expense 7 R&D EXPENSE AND R&D EXPENSE AS A % OF SALES (millions of USD) $16.0 4.4% 4.3% 4.3% 4.4% 4.5% 3.9% 3.9% $13.9 $14.0 $14.9 $14.0 3.9% 3.8% 3.8% 3.8% 3.8% 3.7% 3.7% 3.7% 3.7% $13.2 3.5% $12.0 $11.3 $11.4 $11.3 $11.3 $11.1 $11.0 $10.5 $10.2 $9.8 $9.9 $10.0 $9.4 2.5% $8.0 $6.0 1.5% Q1 F'19
Slide 8: Income Before Income Taxes
Income Before Income Taxes 8 INCOME BEFORE INCOME TAXES (GAAP) (millions of USD) $51.3 $50 $47.1 $47.8 $44.7 $41.0 $41.6 $42.4 $42.2 $41.6 $42.0 $39.9 $39.4 $40 $36.7 $34.9 $30 $22.2 $20 $10 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 F'19 F'19 F'19 F'19 F'20 F'20 F'20 F'20 F'21 F'21 F'21 F'21 F'22
Slide 9: Net Income & Diluted EPS
Net Income & Diluted EPS 9 NET INCOME (GAAP) (millions of USD) DILUTED EPS (GAAP) $0.78 $40.1 $0.80 $40 $37.5 $37.3 $0.70 $0.71 $35.0 $0.67 $0.65 $33.6 $33.5 $33.8 $0.62 $0.64 $30.9 $0.59 $0.60 $30 $27.7 $28.0 $0.53 $0.53 $20 $0.40 $13.6 $0.26 $10 $0.20 $0 $0.00 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q1 Q
Slide 10: Cash Generation and Uses
Cash Generation and Uses 10 CASH FLOW FROM OPERATING ACTIVITIES (millions of USD) $75 $62.8 $56.0 CASH FLOWS IN Q3 OF F’22: $55 $50.8 $42.8 $45.1 Overview: $38.8 $40.9 $36.1 Cash flow from operating activities was $40.9M in Q3 of $35 $27.5 F’22 compared to $56.0M in Q3 of F’21. $14.3 $15 Free cash f
Slide 11: Net Cash
Net Cash 11 NET CASH (millions of USD) $322 $300 $278 $256 $245 $240 $250 $229 $218 $200 $188 $190 $151 $150 $138 $109 $100 $91 $64 $50 $26 $0 Q1 F'19 Q2 F'19 Q3 F'19 Q4 F'19 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 STRONG BALANCE SHEET: April 30, 2022
Slide 12: F'22 Diluted EPS Guidance
F’22 Diluted EPS Guidance 12 F’22 Diluted EPS, Excluding Certain Items $3.08 to $3.17 (+12% to +15% vs. F’21) (previous range = $3.00 - $3.15) GAAP Diluted EPS $2.83 to $2.92 (+15% to +18% vs. F’21) (previous range = $2.78 - $2.93) Guidance Assumptions: Continued economic expansion. Increase in afte
Slide 13: Identification Solutions
Identification Solutions 13 Q3 F’22 vs. Q3 F’21 (millions of USD) Q3 F’22 SUMMARY: Q3 F’22 Q3 F’21 Change • Revenues increased 21.1%: • Organic growth = + 11.8%. Sales $ 264.1 $ 218.1 + 21.1% • Acquisition growth = + 11.7%. Segment Profit 54.0 47.5 + 13.5% • Fx reduction = (2.4%). • Strong organic s
Slide 14: Workplace Safety
Workplace Safety 14 Q3 F’22 vs. Q3 F’21 (millions of USD) Q3 F’22 SUMMARY: Q3 F’22 Q3 F’21 Change • Revenues declined 3.9%: • Organic growth = + 0.9%. Sales $ 74.4 $ 77.4 - 3.9% • Fx reduction = (4.8%). Segment Profit 7.1 5.7 + 25.7% • Charges of $1.8M were recognized in Q3 of F’22 to further stream
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