Slide 1: Brady Corporation F'22 Q1 Financial Results
November 18, 2021 Brady Corporation F’22 Q1 Financial Results
Slide 2: Forward-Looking Statements
2Forward-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, pr
Slide 3: Q1 F'22 Financial Summary
3Q1 F’22 Financial Summary • Sales grew 16.0% to $321.5M in Q1 of F’22 compared with $277.2M in Q1 of F’21. – Organic sales grew 7.0%, acquisitions increased sales by 8.3% and foreign currency translation increased sales 0.7%. • Gross profit margin of 48.2% in Q1 of F’22 compared with 48.9% in Q1 of
Slide 4: Sales Overview
4Sales Overview • Total sales increased 16.0%. • Organic sales increased 7.0%: • ID Solutions – Organic sales increased 13.2%. • Workplace Safety – Organic sales declined 8.6%. • 8.3% increase due to acquisitions. • 0.7% increase due to foreign currency translation. Q1 F’22 SALES: • Brady’s total sa
Slide 5: Gross Profit Margin
Gross Profit Margin 5 • Gross profit margin of 48.2% compared to 48.9% in Q1 of F’21. • Gross margin has been negatively impacted by inflationary pressures including wage increases, freight increases, and raw material cost increases. • Efficiency gains, automation and selected price increases have p
Slide 6: SG&A Expense
SG&A Expense 6 • SG&A expense was 30.1% of sales compared to 30.0% of sales in the same quarter last year. • SG&A expense was negatively impacted by an increase in amortization expense from the acquisitions completed in the fourth quarter of last year. • Amortization expense was $3.8M in Q1 of F’22
Slide 7: R&D Expense
R&D Expense 7 $11.3 $11.1 $11.4 $11.3 $11.0 $10.5 $9.8 $9.4 $10.2 $9.9 $11.3 $13.2 $13.9 3.9% 3.9% 3.9% 3.8% 3.8% 3.8% 3.7% 3.7% 3.7% 3.7% 3.8% 4.3% 4.3% 1.5% 2.5% 3.5% 4.5% $6.0 $8.0 $10.0 $12.0 $14.0 $16.0 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
Slide 8: Income Before Income Taxes
8Income Before Income Taxes • GAAP Income before income taxes was $44.7M in Q1 of F’22 compared to $42.2M in Q1 of F’21. • Q1 of F’22 income before income taxes was negatively impacted by an increase in amortization expense resulting from the acquisitions completed last year. • Income Before Income
Slide 9: Net Income & Diluted EPS
9Net Income & Diluted EPS • GAAP Net income was $35.0M in Q1 of F’22 compared to $33.5M in Q1 of F’21. - Net Income Excluding Amortization* was $38.0M in Q1 of F’22 compared to $34.5M in Q1 of F’21. • GAAP Diluted EPS was $0.67 in Q1 of F’22 compared to $0.64 in Q1 of F’21. - Diluted EPS Excluding A
Slide 10: Cash Generation & Uses
10Cash Generation & Uses • Cash flow from operating activities was $27.5M in Q1 of F’22 compared to $62.8M in Q1 of F’21. • Free cash flow* was $16.2M in Q1 of F’22 compared to $53.5M in Q1 of F’21. • Cash generation in the first quarter of last year was positively impacted by reductions in inventor
Slide 11: Net Cash
Net Cash 11 • October 31, 2021 cash = $157.6M. • October 31, 2021 debt = $67.0M. • Brady is in a net cash position of $90.6M. • Balance sheet provides flexibility for future organic and inorganic investments. STRONG BALANCE SHEET: $138 $151 $188 $229 $245 $240 $190 $218 $256 $278 $322 $109 $91 $0 $5
Slide 12: F'22 Diluted EPS Guidance
12F’22 Diluted EPS Guidance F’22 Diluted EPS, Excluding Amortization $3.12 to $3.32 GAAP 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 expansion. • Full-ye
Slide 13: Identification Solutions
Q1 F’22 vs. Q1 F’22 (millions of USD) 13Identification Solutions • Revenues increased 25.4%: • Organic growth = + 13.2%. • Acquisition growth = + 11.6%. • Fx growth = + 0.6%. • Organic sales grew in all regions. • Segment profit negatively impacted by a $2.5M increase in amortization expense. Exclud
Slide 14: Workplace Safety
Q1 F’22 vs. Q1 F’21 (millions of USD) 14Workplace Safety • Revenues declined 7.8%: • Organic sales declined 8.6%. • Fx = + 0.8%. • Organic sales declined in all regions due to reduced sales of Covid-related products. • Q1 of F’22 sales were above the pre-pandemic levels experienced in Q1 of F’20. •
Slide 15: Investor Relations
15Investor Relations Brady Contact: Ann Thornton Investor Relations 414-438-6887 Ann_Thornton@bradycorp.com See our website at www.bradycorp.com/investors
Slide 16: Appendix: GAAP to Non-GAAP Reconciliations
Appendix GAAP to Non-GAAP Reconciliations 16
Slide 17: Non-GAAP Reconciliations
17Non-GAAP Reconciliations 2021 2020 44,696$ 42,237$ Amortization expense 3,807 1,351 48,503$ 43,588$ 2021 2020 9,650$ 8,582$ Amortization expense 900 338 10,550$ 8,920$ Income Tax Expense Excluding Amortization (non-GAAP measure) Income Before Income Taxes Excluding Amortization (non-GAAP measure)
Slide 18: Non-GAAP Reconciliations
18Non-GAAP Reconciliations 2021 2020 35,046$ 33,481$ Amortization expense 2,907 1,013 37,953$ 34,494$ 2021 2020 $ 0.67 $ 0.64 Amortization expense 0.06 0.02 0.72$ 0.66$ GAAP to NON-GAAP MEASURES (Unaudited; Dollars in Thousands, Except Per Share Amounts) In accordance with the U.S. Securities and Ex