Brady Corporation · NYSE:BRC
Brady — Q2 F2023 Earnings Presentation
21 slides from Brady's earnings presentation, Feb 24, 2023
Slide 1: Brady Corporation F'23 Q2 Financial Results
Brady Corporation F’23 Q2 Financial Results February 24, 2023
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: Q2 F'23 Highlights
Q2 F’23 Highlights 3 Strong Organic Organic sales grew 6.3%, with organic growth in both segments. Sales Growth Organic growth has exceeded 6% for 8 consecutive quarters. Healthy Gross GPM of 48.0% compared to 47.0% in Q2 of F’22. Profit Margins Healthy gross profit margins indicative of Brady’s hig
Slide 4: Sales Overview
Sales Overview 4 SALES (millions of USD) $350 $339 $321 $324 $323 $326 $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 Q2 F'23 Organic Growth (0.4%) (1.2%) (6.0%) (13.7%) (4.
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% 48.0% 47.1% 47.0% $164 $163 48% $155 $155 $156 $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'2
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% 28.3% 30% $100 $97 $96 $94 $95 25% $93 $92 $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
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% 4.7% $18.0 4.4% 4.3% 4.3% 4.3% 4.4% 4.5% $15.8 $16.0 $15.4 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'
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 $47.8 $48.5 $50 $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 Q2 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 F'23
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 $0.76 $40 $37.5 $37.3 $38.0 $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 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 Q2 OF F’23: $42.8 $45.1 $40.9 $38.8 $36.1 Overview: $35 $27.5 $28.0 $29.4 Cash flow from operating activities was $29.4M in $14.3 Q2 of F’23 compared to $(3.2M) in Q2 of F’22. $15 (
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 $31 $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 Q2 F'23 STRONG BALANCE SHEET: January 31, 2023 cash = $108.2M
Slide 12: F'23 Diluted EPS Guidance
F’23 Diluted EPS Guidance 12 Diluted EPS Excluding Certain Items* $3.40 to $3.60 (+7.9% to +14.3% vs. F’22) GAAP Diluted EPS $3.23 to $3.43 (+11.4% to +18.3% vs. F’22) Guidance Assumptions: Organic sales growth in the mid-single digit percentages. Negative foreign currency impact of approximately 3%
Slide 13: Identification Solutions
Identification Solutions 13 Q2 F’23 vs. Q2 F’22 (millions of USD) Q2 F’23 SUMMARY: Q2 F’23 Q2 F’22 Change • Revenues increased 4.4%: • Organic growth = + 7.4%. Sales $ 255.7 $ 245.0 + 4.4% • Fx reduction = (3.0%). Segment Profit 47.4 44.1 + 7.4% • Organic sales grew in the Americas and Europe. • Org
Slide 14: Workplace Safety
Workplace Safety 14 Q2 F’23 vs. Q2 F’22 (millions of USD) Q2 F’23 SUMMARY: Q2 F’23 Q2 F’22 Change • Revenues declined 3.4%: • Organic growth = + 2.8%. Sales $ 70.6 $ 73.1 (3.4%) • Fx reduction = (6.2%). Segment Profit 6.2 4.5 + 38.4% • Segment profit increased as a result of our actions to: • Stream
Slide 15: Appendix: Regional Financial Results
Appendix Regional Financial Results
Slide 16: Americas & Asia
Americas & Asia 16 Q2 F’23 vs. Q2 F’22 (millions of USD) YTD F’23 vs. YTD F’22 (millions of USD) Q2 F’23 Q2 F’22 Change YTD F’23 YTD F’22 Change Sales $ 220.1 $ 207.8 + 5.9% Sales $ 438.6 $ 420.7 + 4.2% Segment Profit 40.2 32.3 + 24.3% Segment Profit 81.3 69.6 + 16.8% Segment Profit % 18.3% 15.6% +
Slide 17: Europe & Australia
Europe & Australia 17 Q2 F’23 vs. Q2 F’22 (millions of USD) YTD F’23 vs. YTD F’22 (millions of USD) Q2 F’23 Q2 F’22 Change YTD F’23 YTD F’22 Change Sales $ 106.2 $ 110.2 (3.7%) Sales $ 210.3 $ 218.8 (3.9%) Segment Profit 13.5 16.3 (17.5%) Segment Profit 30.2 30.1 + 0.3% Segment Profit % 12.7% 14.8%
Slide 18: Investor Relations
18 Investor Relations Brady Contact: Ann Thornton Investor Relations 414-438-6887 Ann_Thornton@bradycorp.com See our website at www.bradycorp.com/investors
Slide 19: Appendix: GAAP to Non-GAAP Reconciliations
Appendix GAAP to Non-GAAP Reconciliations
Slide 20: Non-GAAP Reconciliations
Non-GAAP Reconciliations 20 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 21: Non-GAAP Reconciliations
Non-GAAP Reconciliations 21 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