Brady Corporation · NYSE:BRC
Brady — Q4 2020 Earnings Presentation
16 slides from Brady's earnings presentation, Sep 16, 2020
Slide 1: Brady Corporation F'20 Q4 Financial Results
Brady Corporation F’20 Q4 Financial Results September 16, 2020
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: Managing Through the Pandemic
Managing Through the Pandemic 3 Managing Through the Pandemic • Thank you to all of the Brady employees and front-line workers. • Brady’s products are helping in the fight of COVID-19. • Workplace Safety business is growing and expanding its customer base. Brady is financially strong. Strategies to
Slide 4: Q4 F'20 Financial Summary
Q4 F’20 Financial Summary 4 • Sales were $251.7M in Q4 of F’20 compared with $295.3M in Q4 of F’19. – Organic sales declined 13.7%. – Foreign currency translation decreased sales 1.0%. • Gross profit margin of 47.1% in Q4 of F’20 compared with 49.6% in Q4 of F’19. • SG&A expense of $75.9M (30.2% of
Slide 5: Sales Overview
Sales Overview 5 SALES (millions of USD) $298 $297 $293 $295 $300 $290 $288 $290 $287 $282 $277 $275 $266 $252 $250 $225 $200 Q1 F'18 Q2 F'18 Q3 F'18 Q4 F'18 Q1 F'19 Q2 F'19 Q3 F'19 Q4 F'19 Q1 F'20 Q2 F'20 Q3 F'20 Q4 F'20 Organic Sales 1.7% 3.2% 3.2% 2.5% 4.7% 2.3% 2.4% 1.7% (0.4%) (1.2%) (6.0%) (13
Slide 6: Gross Profit Margin
Gross Profit Margin 6 GROSS PROFIT & GPM% (millions of USD) 50.6% 50.3% 50.3% 50.3% 49.9% 50.0% 49.6% 49.5% 49.6% $151 49.3% 50% 48.7% $147 $150 $146 $147 $146 $147 $144 47.1% $140 $141 $139 $130 45% $125 $119 $100 40% Q1 F'18 Q2 F'18 Q3 F'18 Q4 F'18 Q1 F'19 Q2 F'19 Q3 F'19 Q4 F'19 Q1 F'20 Q2 F'20 Q
Slide 7: SG&A Expense
SG&A Expense 7 SG&A EXPENSE AND SG&A EXPENSE AS A % of SALES (millions of USD) 34.5% $110 33.9% 34.1% 35% 32.3% 32.8% 32.7% $102 31.6% 31.3% $100 30.6% 31.2% $100 $98 30.2% 30.2% $95 $95 30% $93 $91 $89 $90 $90 $87 $83 25% $80 $76 $70 20% Q1 F'18 Q2 F'18 Q3 F'18 Q4 F'18 Q1 F'19 Q2 F'19 Q3 F'19 Q4 F'
Slide 8: R&D Expense
R&D Expense 8 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% 4.0% 3.8% 3.8% 3.8% 3.7% 3.6% 3.7% $12.0 $11.7 $11.7 $11.3 $11.3 $11.4 $11.3 $11.1 $11.0 $10.5 $10.5 3.5% $9.8 $10.0 $9.4 3.0% $8.0 $6.0 2.5% Q1 F'18 Q2 F'18 Q3 F'18 Q4 F'18 Q1 F'19 Q2 F'1
Slide 9: Income Before Income Taxes
Income Before Income Taxes 9 INCOME BEFORE INCOME TAXES AND LOSSES IN UNCONSOLIDATED AFFILIATE (millions of USD) $50 $47.1 $45.2 $41.6 $42.4 $39.9 $41.0 $40 $37.0 $36.7 $34.8 $35.0 $34.9 $30 $22.2 $20 $10 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 F'18 F'18 F'18 F'18 F'19 F'19 F'19 F'19 F'20 F'20 F'20 F'20
Slide 10: Net Income & Diluted EPS
Net Income & Diluted EPS 10 NET INCOME PER CLASS A DILUTED SHARE NET INCOME (millions of USD) $0.70 $0.66 $0.68 $0.65 $40 $36.6 $37.5 $0.62 $35.0 $34.8 $0.60 $0.58 $33.6 $0.55 $0.53 $30.6 $0.49 $0.49 $29.2 $27.7 $30 $25.8 $26.0 $0.40 $20 $0.26 $13.6 $0.20 $10 $0.08 $4.3 $0.00 $0 Q1 Q2 Q3 Q4 Q1 Q2 Q3
Slide 11: Cash Generation & Uses
Cash Generation & Uses 11 CASH FLOW FROM OPERATING ACTIVITIES (millions of USD) CASH FLOWS IN Q4 OF F’20: $65.3 • Cash flow from operating activities was $45.1M in Q4 of F’20 compared to $65.3M in Q4 of F’19. $60 $53.8 $52.7 $46.8 • Cash flow from operating activities was $42.8 $45.1 $38.8 significa
Slide 12: Net Cash
Net Cash 12 NET CASH (millions of USD) $300 $250 $245 $240 $229 $218 $200 $188 $190 $151 $150 $138 $129 $100 $73 $48 $50 $44 $0 Q1 F'18 Q2 F'18 Q3 F'18 Q4 F'18 Q1 F'19 Q2 F'19 Q3 F'19 Q4 F'19 Q1 F'20 Q2 F'20 Q3 F'20 Q4 F'20 STRONG BALANCE SHEET: • July 31, 2020 cash = $217.6M. • Approximately $69M o
Slide 13: F'20 Financial Summary
F’20 Financial Summary 13 Year Ended July 31, 2020 2019 Change Sales $ 1,081.3 $ 1,160.6 Organic Sales (Decline) Growth (5.4%) 2.8% Gross Margin 528.6 578.7 % of Sales 48.9% 49.9% Research and Development (40.7) (45.2) - 10.0% Selling, General and Administrative (336.1) (371.1) - 9.4% % of Sales 31.
Slide 14: Identification Solutions Q4 F'20 vs. Q4 F'19
Identification Solutions 14 Q4 F’20 vs. Q4 F’19 (millions of USD) Q4 F’20 SUMMARY: • Revenues declined - (22.8%): Q4 F’20 Q4 F’19 Change • Organic = - (21.7%). Sales $ 171.2 $ 221.8 - 22.8% • Fx = - (1.1%). Segment Profit 31.1 45.6 - 31.8% • Organic sales decreased due to an overall slowdown in glob
Slide 15: Workplace Safety Q4 F'20 vs. Q4 F'19
Workplace Safety 15 Q4 F’20 vs. Q4 F’19 (millions of USD) Q4 F’20 SUMMARY: • Revenues increased + 9.7%: Q4 F’20 Q4 F’19 Change • Organic = + 10.8%. Sales $ 80.6 $ 73.5 + 9.7% • Fx = - (1.1%). Segment Profit 6.0 6.7 - 10.4% • Organic sales increased due to increased sales of products directly related
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