Slide 1: Brady Corporation F'15 Q1 Financial Results
November 20, 2014 Brady Corporation F’15 Q1 Financial Results
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: Summary Comments
3 Summary Comments Significant 1st Quarter Events: • Organic sales growth of 2.4%. • Profitability negatively impacted by facility consolidation activities. Facility consolidation challenges expected to continue with completion by the end of fiscal 2015. F’15 Priorities: • Facility Consolidations –
Slide 4: Q1 F'15 Financial Summary
4 Q1 F’15 Financial Summary • Sales up 0.9% to $310.2M vs. $307.5M in Q1 of F’14. – Organic sales growth of 2.4% while foreign currency decreased sales by 1.5%. • Gross profit margin of 48.4% in Q1 of F’15 compared with 51.3% in Q1 of F’14. • SG&A expense of $109.3M (35.2% of sales) in Q1 of F’15 vs
Slide 5: F'15 Guidance – Continuing Operations
5 F’15 Guidance – Continuing Operations F’15 Diluted EPS from Continuing Operations $1.50 to $1.70 (excluding restructuring charges and certain other items) Guidance Assumptions – Continuing Operations: • Low single-digit organic sales growth, with growth in both Identification Solutions and Workpla
Slide 6: Sales Overview
6 Sales Overview • 2.4% organic sales growth. • 1.5% decrease due to currency translation. • Organic sales growth in both the ID Solutions and Workplace Safety platforms. Q1 F’15 SALES: • ID Solutions – Organic sales growth of 2.4%. • Workplace Safety – Organic sales growth of 2.4%. Q1 F’15 SALES CO
Slide 7: Gross Profit Margin & SG&A Expense
Gross Profit Margin & SG&A Expense 7 • GPM of 48.4% in Q1 of F’15 compared to 51.3% in Q1of F’14. • Costs related to facility consolidation activities and challenges with sales mix resulted in a lower GPM. • Facility consolidation costs expected to continue at a heightened level in the near-term wit
Slide 8: Net Earnings & EPS From Continuing Operations–Non-GAAP
8 Net Earnings & EPS From Continuing Operations–Non-GAAP* * Non-GAAP Net Earnings from Continuing Operations and Non-GAAP Net Earnings from Continuing Operations Per Class A Diluted Nonvoting Share are non-GAAP measures. See appendix. • Q1 F’15 Non-GAAP net earnings from continuing operations* of $1
Slide 9: Cash Generation
9 Cash Generation • Cash flow from operating activities of $18.6M in Q1 of F’15. • Returned $10.2M to our shareholders in the form of dividends. CASH FLOWS IN Q1 OF F’15:
Slide 10: Net Debt & EBITDA
Net Debt & EBITDA 10 0.0 0.1 1.4 1.3 1.2 1.2 1.3 1.5 1.2 1.2 0.0x 0.5x 1.0x 1.5x Q2 F'12 Q3 F'12 Q4 F'12 Q1 F'13 Q2 F'13 Q3 F'13 Q4 F'13 Q1 F'14 Q2 F'14 Q3 F'14 Q4 F'14 Q1 F'15 NET DEBT / TTM EBITDA* • October 31, 2014 Cash = $116.5M, Debt = $290.7M (net debt = $174.2M), and TTM EBITDA (continuing o
Slide 11: Q1 F'15 vs. Q1 F'14 Performance: Identification Solutions
Q1 F’15 vs. Q1 F’14 PERFORMANCE (millions of USD) 11 Identification Solutions • Revenues up 1.2%: • Organic = +2.4% • Fx = -(1.2)% • Revenue growth in all regions. • Increased product demand and a commitment to maintain quality and service levels to our customers has resulted in the need to carry ad
Slide 12: Q1 F'15 vs. Q1 F'14 Performance: Workplace Safety
Q1 F’15 vs. Q1 F’14 PERFORMANCE (millions of USD) 12 Workplace Safety • Revenues up 0.2%: • Organic = +2.4%. • Fx = -(2.2)%. • Low single digit organic sales growth in Europe and the Americas and approximately flat organic sales in Australia. The quarter ended with positive organic sales growth mome
Slide 13: Investor Relations
13 Investor Relations Brady Contact: Aaron Pearce Investor Relations 414-438-6895 Aaron_Pearce@Bradycorp.com See our web site at www.investor.bradycorp.com
Slide 14: Appendix
Appendix 14
Slide 15: Comparable Income Statements
COMPARABLE INCOME STATEMENTS (millions of USD) 15 Comparable Income Statements
Slide 16: Debt Structure
(‘000s of USD) 16 Debt Structure October 31, 2014 Balance July 31, 2014 Balance Revolver Borrowings (due Feb. 2017): USD-denominated (L+1.125) 1.24% Variable 83,000$ 42,000$ China Borrowings: USD & CNY-denominated notes payable 5.04% Variable 11,708 19,423 Private Placements: USD-denominated 2006 Se
Slide 17: EBITDA – Total Company
Brady is presenting EBITDA because it is used by many of our investors and lenders, and is presented as a convenience to them. EBITDA represents net earnings before interest expense, income taxes, depreciation, amortization and impairment charges. EBITDA is not a calculation based on generally accep
Slide 18: EBITDA from Continuing Operations
Brady is presenting EBITDA from Continuing Operations because it is used by many of our investors and lenders, and is presented as a convenience to them. EBITDA from Continuing Operations represents earnings from continuing operations before interest expense, income taxes, depreciation, amortization
Slide 19: Non-GAAP Earnings from Continuing Operations
Brady is presenting the Non-GAAP measure "Net Earnings from Continuing Operations Excluding Certain Items." This is not a calculation based upon GAAP. The amounts included in this Non-GAAP measure are derived from amounts included in the Consolidated Financial Statements and supporting footnote disc
Slide 20: Non-GAAP Earnings per Diluted Class A Share from Continuing Operations
Brady is presenting the Non-GAAP measure "Net Earnings from Continuing Operations Per Diluted Class A Nonvoting Common Share Excluding Certain Items." This is not a calculation based upon GAAP. The amounts included in this Non-GAAP measure are derived from amounts included in the Consolidated Financ