Brady Corporation · NYSE:BRC
Brady — Q4 FY2021 Earnings Presentation
19 slides from Brady's earnings presentation, Sep 2, 2021
Slide 1: F'21 Q4 Financial Results
Brady Corporation F’21 Q4 Financial Results September 2, 2021
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'21 Financial Summary
Q4 F’21 Financial Summary 3 • Sales grew 21.6% to $306.1M in Q4 of F’21 compared with $251.7M in Q4 of F’20. – Organic sales grew 12.6%, acquisitions increased sales by 4.7% and foreign currency translation increased sales 4.3%. • Gross profit margin of 48.2% in Q4 of F’21 compared with 47.1% in Q4
Slide 4: Sales Overview
Sales Overview 4 SALES (millions of USD) $306 $300 $293 $295 $296 $290 $287 $282 $277 $277 $275 $266 $266 $252 $250 $225 $200 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 Organic Sales Growth 4.7% 2.3% 2.4% 1.7% (0.4%) (1.2%) (6.0%) (13.7%) (4.9%) (
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% 50% 49.3% 48.7% 48.9% 48.7% 48.2% $149 $148 $150 $147 $146 $147 47.1% $140 $141 $139 $135 $130 $130 45% $125 $119 $100 40% 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 Q
Slide 6: SG&A Expense
SG&A Expense 6 SG&A EXPENSE AND SG&A EXPENSE AS A % OF SALES (millions of USD) $110 32.3% 32.8% 32.7% 35% 31.2% 31.6% 31.3% 30.9% 30.7% 30.2% 30.2% 30.6% $100 30.0% $95 $95 $94 30% $93 $90 $91 $89 $90 $87 25% $83 $83 $82 $80 $76 20% $70 15% $60 10% Q1 F'19 Q2 F'19 Q3 F'19 Q4 F'19 Q1 F'20 Q2 F'20 Q3
Slide 7: R&D Expense
R&D Expense 7 R&D EXPENSE AND R&D EXPENSE AS A % OF SALES (millions of USD) 4.3% 4.5% $14.0 3.9% 3.9% 3.9% 3.8% 3.8% 3.8% 3.8% $13.2 3.7% 3.7% 3.7% 3.7% $12.0 $11.3 $11.4 $11.3 $11.3 3.5% $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 Q2 F'19 Q3 F'19 Q4 F'19 Q1 F'20 Q2 F'20
Slide 8: Income Before Income Taxes
Income Before Income Taxes 8 INCOME BEFORE INCOME TAXES EXCLUDING CERTAIN ITEMS* (millions of USD) $50 $47.1 $47.8 $45.4 * $41.0 $41.6 $42.4 $42.2 $39.9 $39.4 $40 $36.7 $36.0* $34.9 $30 $20 $10 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 F'19 F'19 F'19 F'19 F'20 F'20 F'20 F'20 F'21 F'21 F'21 F'21 Year-on-Ye
Slide 9: Net Income & Diluted EPS
Net Income & Diluted EPS 9 DILUTED EPS EXCLUDING CERTAIN ITEMS* NET INCOME EXCLUDING CERTAIN ITEMS* (millions of USD) $0.71 $0.70 * $0.68 $0.70 $0.65 $0.64 $40 $37.3 $37.0 * $0.62 $36.6 $37.5 $0.58 $0.59 $34.8 $33.6 $33.5 $0.60 $0.55 $0.53 $30.9 $30.6 $29.2 $0.47 * $30 $27.7 $24.7 * $0.40 $20 $0.20
Slide 10: Cash Generation & Uses
Cash Generation & Uses 10 CASH FLOW FROM OPERATING ACTIVITIES (millions of USD) CASH FLOWS IN Q4 OF F’21: $65.3 • Cash flow from operating activities was $50.8M $62.8 $56.0 in Q4 of F’21 compared to $45.1M in Q4 of F’20. $60 $52.7 $50.8 $45.1 • Free cash flow* was $45.0M in Q4 of F’21 $42.8 $38.8 $3
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 $50 $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 STRONG BALANCE SHEET: • July 31, 2021 cash = $147.3M. • July 31, 2021 deb
Slide 12: F'21 Financial Summary
F’21 Financial Summary 12 Year Ended July 31, 2021 2020 Change Sales $ 1,144.7 $ 1,081.3 5.9% Organic Sales Growth (Decline) 1.6% (5.4%) Gross Margin 561.4 528.6 6.2% % of Sales 49.0% 48.9% Research and Development (44.6) (40.7) 9.6% Selling, General and Administrative (349.8) (336.1) 4.1% % of Sale
Slide 13: F'22 Diluted EPS Guidance
F’22 Diluted EPS Guidance 13 F’22 Diluted EPS, Excluding Amortization $3.12 to $3.32 GAAP F’22 Diluted EPS $2.90 to $3.10 Includes an increase in after-tax amortization expense of $0.12/share (from $0.10/share in F’21 to $0.22/share in F’22). Guidance Assumptions: • Continued economic improvement. •
Slide 14: Identification Solutions
Identification Solutions 14 Q4 F’21 vs. Q4 F’20 (millions of USD) Q4 F’21 SUMMARY: Q4 F’21 Q4 F’20 Change • Revenues increased 35.0%: • Organic growth = + 24.5%. Sales $ 231.0 $ 171.2 + 35.0% • Acquisition growth = + 6.9%. Segment Profit 42.4 31.1 + 36.2% • Fx growth = + 3.6%. • Organic sales growth
Slide 15: Workplace Safety
Workplace Safety 15 Q4 F’21 vs. Q4 F’20 (millions of USD) Q4 F’21 SUMMARY: Q4 F’21 Q4 F’20 Change • Revenues decreased 6.8%: • Organic sales declined 12.7%. Sales $ 75.1 $ 80.6 (6.8%) • Fx = + 5.9%. Segment Profit 5.6 6.0 (6.3%) • Organic sales declined in all regions due to reduced sales of Covid-r
Slide 16: Investor Relations
Investor Relations 16 Brady Contact: Ann Thornton Investor Relations 414-438-6887 Ann_Thornton@bradycorp.com See our website at www.bradycorp.com/investors
Slide 17: Appendix: GAAP to Non-GAAP Reconciliations
17 Appendix GAAP to Non-GAAP Reconciliations
Slide 18: Non-GAAP Reconciliations
Non-GAAP Reconciliations 18 (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 reconciliation to the most closely r
Slide 19: Non-GAAP Reconciliations
Non-GAAP Reconciliations 19 (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 reconciliation to the most closely r