Brady Corporation · NYSE:BRC
Brady — Q4 FY2018 Earnings Presentation
16 slides from Brady's earnings presentation, Sep 13, 2018
Slide 1: Brady Corporation F'18 Q4 Financial Results
Brady Corporation F’18 Q4 Financial Results September 13, 2018
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: Q4 F'18 Financial Summary
Q4 F’18 Financial Summary 3 • Sales increased 2.9% to $297.5M in Q4 of F’18 compared with $289.2M in Q4 of F’17. – Organic sales increased 2.5%. – Foreign currency translation increased sales 1.0%. – Sale of business decreased sales 0.6%. • Gross profit margin of 49.6% in Q4 of F’18 compared with 49
Slide 4: Sales Overview
Sales Overview 4 SALES (millions of USD) $305 $298 $297 $295 $289 $290 $288 $285 $282 $280 $276 $275 $268 $265 $255 Q4 F'16 Q1 F'17 Q2 F'17 Q3 F'17 Q4 F'17 Q1 F'18 Q2 F'18 Q3 F'18 Q4 F'18 Organic Sales (0.9%) (0.2%) 1.3% (1.9%) 3.0% 1.7% 3.2% 3.2% 2.5% Growth Q4 F’18 SALES: Q4 F’18 SALES COMMENTARY:
Slide 5: Gross Profit Margin
Gross Profit Margin 5 GROSS PROFIT & GPM% (millions of USD) 50.7% 50.6% 50.1% 50.3% 50.0% 50.1% 49.9% 49.7% 49.6% $151 50% $150 $146 $147 $144 $144 $141 $140 $140 $134 45% $125 $100 40% Q4 F'16 Q1 F'17 Q2 F'17 Q3 F'17 Q4 F'17 Q1 F'18 Q2 F'18 Q3 F'18 Q4 F'18 Q4 F’18 – GROSS PROFIT MARGIN: • Slight de
Slide 6: SG&A Expense
6 SG&A Expense SG&A EXPENSE AND SG&A EXPENSE AS A % of SALES (millions of USD) 35.3% 35.7% 34.9% 35.0% 34.5% $110 33.4% 33.9% 34.1% 35% $102 $100 33% $100 $98 $98 $98 $97 $98 30.6% $95 30% $91 $90 28% $80 25% Q4 F'16 Q1 F'17 Q2 F'17 Q3 F'17 Q4 F'17 Q1 F'18 Q2 F'18 Q3 F'18 Q4 F'18 Q4 F’18 – SG&A EXPE
Slide 7: R&D Expense
7 R&D Expense R&D EXPENSE AND R&D EXPENSE AS A % of SALES (millions of USD) $14.0 3.9% 3.9% 3.8% 3.9% 4.0% 3.6% $12.0 3.6% $11.7 $11.7 3.5% $11.3 $11.0 $10.5 3.5% 3.3% 3.3% $10.0 $10.0 $9.5 $9.3 $9.1 3.0% $8.0 $6.0 2.5% Q4 F'16 Q1 F'17 Q2 F'17 Q3 F'17 Q4 F'17 Q1 F'18 Q2 F'18 Q3 F'18 Q4 F'18 INCREASI
Slide 8: Earnings Before Income Taxes
Earnings Before Income Taxes 8 EARNINGS BEFORE INCOME TAXES (millions of USD) $45.2 $45 $40 $37.0 $35.9 $35.0 $34.8 $35 $32.0 $31.0 $30.6 $29.1 $30 $25 $20 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 F'16 F'17 F'17 F'17 F'17 F'18 F'18 F'18 F'18 Year on Year Growth 49.1% 14.0% 42.2% 3.2% 12.2% 12.2% 20.4% 20.7% 26.0%
Slide 9: Net Earnings & Earnings per Share
Net Earnings & Earnings per Share 9 NET EARNINGS (millions of USD) NET EARNINGS PER CLASS A DILUTED SHARE $40 $0.66 $35.0 $0.60 $0.49 $0.49 $0.48 $0.49 $0.49 $30 $26.0 $25.1 $25.3 $25.2 $25.8 $0.44 $0.43 $22.6 $22.6 $0.40 $20 $0.20 $10 $4.3 $0.08 $0 $0.00 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q4 Q1 Q2 Q3 Q4 Q1
Slide 10: Cash Generation & Uses
Cash Generation & Uses 10 CASH FLOW FROM OPERATING ACTIVITIES (millions of USD) CASH FLOWS IN Q4 OF F’18: $60 $52.9 $53.8 • Cash flow from operating activities was $53.8 $46.8 in Q4 of F’18 compared to $52.9M in Q4 of $50 $40.4 F’17. $37.8 $40 $34.0 $34.7 • Free cash flow* was $46.8M in Q4 of F’18 $
Slide 11: Net Cash (Debt)
Net Cash (Debt) 11 NET CASH (DEBT) (millions of USD) DEBT STRUCTURE (millions of USD) $150 $129 Interest July 31, 2018 July 31, 2017 Rate Balance Balance Revolver Borrowings: $100 USD-denominated 1.94% $ - $ (17.0) $73 EUR-denominated 0.75% - (34.3) $48 $44 China Borrowings: $50 $26 USD & CNY-denomi
Slide 12: F'18 Financial Summary
F’18 Financial Summary 12 1 Year Ended July 31, 2018 2017 Change Sales $ 1,173.9 $ 1,113.3 Organic Sales Growth 2.6% 0.5% Gross Margin 588.3 558.3 % of Sales 50.1% 50.1% Research and Development (45.3) (39.6) + 14.2% Selling, General and Administrative (390.3) (387.7) + 0.7% % of Sales 33.3% 34.8% O
Slide 13: Full-Year F'19 Guidance
Full-Year F’19 Guidance 13 F’19 Diluted EPS $2.15 to $2.25 F’19 Guidance Assumptions: • Organic sales growth of approximately 2% - 4%. • Full-year depreciation and amortization expense of approximately $26M. • Income tax rate in the mid-20% range. • Full-year capital expenditures of approximately $3
Slide 14: Identification Solutions
Identification Solutions 14 Q4 F’18 vs. Q4 F’17 PERFORMANCE (millions of USD) Q4 F’18 SUMMARY: Q4 F’18 Q4 F’17 Change • Revenues increased 3.1%: • Organic = +2.4% Sales $ 217.8 $ 211.3 + 3.1% • Fx = +0.7% Segment Profit 36.5 35.9 + 1.7% • Organic sales increased in the mid-single digits in Asia and
Slide 15: Workplace Safety
Workplace Safety 15 Q4 F’18 vs. Q4 F’17 PERFORMANCE (millions of USD) Q4 F’18 SUMMARY: Q4 F’18 Q4 F’17 Change • Revenues increased 2.3%: • Organic = +3.0% Sales $ 79.7 $ 77.9 + 2.3% • Fx = +1.6% Segment Profit 10.7 7.9 + 34.5% • Divestiture = (2.3%) Segment Profit % 13.4% 10.2% + 320 bps • Organic s
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