Slide 1: Brady Corporation F’15 Q3 Financial Results
May 21, 2015 Brady Corporation F’15 Q3 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 3rd Quarter Events: • Organic sales growth of 1.7%. • Facility consolidation physical moves completed, but we need to improve our customer service and operational efficiency. F’15 Priorities: • Facility Consolidations – Complete this process to optimize customer servic
Slide 4: Q3 F’15 Financial Summary
4 Q3 F’15 Financial Summary • Sales down 6.3% to $290.2M vs. $309.6M in Q3 of F’14. – Organic sales growth of 1.7% while foreign currency decreased sales by 8.0%. • Gross profit margin of 48.6% in Q3 of F’15, down from 50.1% in Q3 of F’14. • SG&A expense of $103.0M (35.5% of sales) in Q3 of F’15 vs.
Slide 5: F’15 Q4 Guidance – Continuing Operations
5 F’15 Q4 Guidance – Continuing Operations F’15 Q4 Diluted EPS from Continuing Operations $0.30 to $0.40 (excluding restructuring charges and certain other items) Guidance Assumptions – Continuing Operations: • Exchange rates consistent with those as of April 30, 2015. • Full-year depreciation and a
Slide 6: Sales Overview
6 Sales Overview • 1.7% organic sales growth: • ID Solutions – Organic sales growth of 3.0%. • Workplace Safety – Organic sales decline of 1.1%. • 8.0% decrease due to currency translation. Q3 F’15 SALES: • Organic growth continues in the IDS platform while there was a slight decline in the WPS plat
Slide 7: Gross Profit Margin & SG&A Expense
Gross Profit Margin & SG&A Expense 7 • GPM of 48.6% in Q3 of F’15 compared to 50.1% in Q3 of F’14. • Facilities consolidated, but operating inefficiencies continue. • GPM impacted by organic sales decline in WPS. GROSS PROFIT MARGIN: • SG&A expense was down $13.7M to $103.0M in Q3 of F’15 compared t
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. • Q3 F’15 Non-GAAP net earnings from continuing operations* wer
Slide 9: Cash Generation
9 Cash Generation • Cash flow from operating activities of $28.8M in Q3 of F’15. • Returned $10.3M to our shareholders in the form of dividends. CASH FLOWS IN Q3 OF F’15:
Slide 10: Net Debt & EBITDA
Net Debt & EBITDA 10 0.1 1.4 1.3 1.2 1.2 1.3 1.5 1.2 1.2 1.2 1.2 0.0x 0.5x 1.0x 1.5x 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 Q2 F'15 Q3 F'15 NET DEBT / TTM EBITDA* • April 30, 2015 Cash = $100.5M, Debt = $268.4M (net debt = $167.9M), and TTM EBITDA (continuing
Slide 11: Q3 F’15 vs. Q3 F’14 Performance: Identification Solutions
Q3 F’15 vs. Q3 F’14 PERFORMANCE (millions of USD) 11 Identification Solutions • Revenues down 2.7%: • Organic = +3.0% • Fx = -(5.7)% • Organic sales growth strongest in Safety & Facility ID and Product ID categories. • Segment profit continues to be impacted by customer service challenges and operat
Slide 12: Q3 F’15 vs. Q3 F’14 Performance: Workplace Safety
Q3 F’15 vs. Q3 F’14 PERFORMANCE (millions of USD) 12 Workplace Safety • Revenues down 13.3%: • Organic = -(1.1)%. • Fx = -(12.2)%. • Strengthening of the US dollar had a more significant impact on the Workplace Safety platform as approximately half of WPS revenues are generated in Western Europe. •
Slide 13: Investor Relations
13 Investor Relations Brady Contact: Ann Thornton Investor Relations 414-438-6887 Ann_Thornton@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
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 Net 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 Net Earnings per Diluted Class A Nonvoting Share
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