Brady Corporation · NYSE:BRC
Brady — Q2 F2019 Earnings Presentation
15 slides from Brady's earnings presentation, Feb 21, 2019
Slide 1: Brady Corporation F'19 Q2 Financial Results
Brady Corporation F’19 Q2 Financial Results February 21, 2019
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: Q2 F'19 Financial Summary
Q2 F’19 Financial Summary 3 • Sales were $282.4M in Q2 of F’19 compared with $287.8M in Q2 of F’18. – Organic sales increased 2.3%. – Foreign currency translation decreased sales 2.6%. – Sale of business decreased sales 1.6%. • Gross profit margin of 49.5% in Q2 of F’19 compared with 49.9% in Q2 of
Slide 4: Sales Overview
Sales Overview 4 SALES (millions of USD) $305 $298 $297 $295 $293 $289 $290 $288 $285 $282 $276 $275 $268 $265 $255 Q2 F'17 Q3 F'17 Q4 F'17 Q1 F'18 Q2 F'18 Q3 F'18 Q4 F'18 Q1 F'19 Q2 F'19 Organic Sales 1.3% (1.9%) 3.0% 1.7% 3.2% 3.2% 2.5% 4.7% 2.3% Growth Q2 F’19 SALES: Q2 F’19 SALES COMMENTARY: • 2
Slide 5: Gross Profit Margin
Gross Profit Margin 5 GROSS PROFIT & GPM% (millions of USD) 50.7% 50.6% 50.3% 50.1% 49.9% 50.0% 49.7% 49.6% $151 49.5% 50% $150 $146 $147 $147 $144 $144 $140 $140 $134 45% $125 $100 40% Q2 F'17 Q3 F'17 Q4 F'17 Q1 F'18 Q2 F'18 Q3 F'18 Q4 F'18 Q1 F'19 Q2 F'19 Q2 F’19 – GROSS PROFIT MARGIN: • Slight de
Slide 6: SG&A Expense
SG&A Expense 6 SG&A EXPENSE AND SG&A EXPENSE AS A % of SALES (millions of USD) 35.3% 35.7% 34.5% 33.9% 34.1% $110 35% 33.4% 32.8% $102 32.3% $100 33% $100 $98 $98 30.6% $97 $95 $95 $93 30% $91 $90 28% $80 25% Q2 F'17 Q3 F'17 Q4 F'17 Q1 F'18 Q2 F'18 Q3 F'18 Q4 F'18 Q1 F'19 Q2 F'19 Q2 F’19 – SG&A EXPE
Slide 7: R&D Expense
R&D Expense 7 R&D EXPENSE AND R&D EXPENSE AS A % of SALES (millions of USD) $14.0 3.9% 3.9% 3.9% 3.9% 4.0% 3.8% 3.9% 3.6% 3.6% $11.7 $11.7 $12.0 3.5% $11.3 $11.3 $11.0 $11.1 $10.5 3.5% $10.0 $10.0 $9.5 3.0% $8.0 $6.0 2.5% Q2 F'17 Q3 F'17 Q4 F'17 Q1 F'18 Q2 F'18 Q3 F'18 Q4 F'18 Q1 F'19 Q2 F'19 INCREA
Slide 8: Earnings Before Income Taxes
Earnings Before Income Taxes 8 EARNINGS BEFORE INCOME TAXES (millions of USD) $45.2 $45 $39.9 $40 $37.0 $35.9 $36.7 $34.8 $35.0 $35 $30.6 $29.1 $30 $25 $20 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 F'17 F'17 F'17 F'18 F'18 F'18 F'18 F'19 F'19 Year on Year Growth 42.2% 3.2% 12.2% 12.2% 20.4% 20.7% 26.0% 14.8% 4.8%
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 $0.58 $0.60 $0.55 $30.6 $29.2 $0.49 $0.48 $0.49 $0.49 $30 $26.0 $25.3 $25.2 $25.8 $0.43 $22.6 $0.40 $20 $0.20 $10 $4.3 $0.08 $0 $0.00 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q2 Q3 Q4 Q1 Q2 Q3
Slide 10: Cash Generation & Uses
Cash Generation & Uses 10 CASH FLOW FROM OPERATING ACTIVITIES (millions of USD) CASH FLOWS IN Q2 OF F’19: $60 $53.8 • Cash flow from operating activities was $25.4M $52.9 $46.8 in Q2 of F’19 compared to $7.7M in Q2 of F’18. $50 $37.8 • Free cash flow* was $19.3M in Q2 of F’19 $40 $34.7 compared to $
Slide 11: Net Cash (Debt)
Net Cash (Debt) 11 NET CASH (DEBT) (millions of USD) DEBT STRUCTURE (millions of USD) $151 $138 $140 $129 Interest Jan. 31, 2019 July 31, 2018 Rate Balance Balance $90 Private Placements: $73 EUR-den. 2010 Series (10-yr.) 4.24% $ (51.6) $ (52.6) $48 $44 TOTAL DEBT $ (51.6) $ (52.6) $40 $26 Cash and
Slide 12: Full-Year F'19 Guidance
Full-Year F’19 Guidance 12 F’19 Diluted EPS guidance increased to $2.25 to $2.35 (previous guidance range was $2.20 to $2.30). F’19 Guidance Assumptions: • Full-year organic sales growth of approximately 3% - 5%. • Full-year depreciation and amortization expense of approximately $26M. • Full-year in
Slide 13: Identification Solutions
Identification Solutions 13 Q2 F’19 vs. Q2 F’18 (millions of USD) Q2 F’19 SUMMARY: Q2 F’19 Q2 F’18 Change • Revenues increased 1.3%: • Organic = +3.6% Sales $ 209.2 $ 206.4 + 1.3% • Fx = - (2.3)% Segment Profit 37.9 34.1 + 11.1% • Organic sales increased in the mid-single digits in the Americas and
Slide 14: Workplace Safety
Workplace Safety 14 Q2 F’19 vs. Q2 F’18 (millions of USD) Q2 F’19 SUMMARY: Q2 F’19 Q2 F’18 Change • Revenues decreased (10.0%): • Organic = - (0.9%) Sales $ 73.2 $ 81.3 - 10.0% • Fx = - (3.3%) Segment Profit 4.7 7.1 - 33.9% • Divestiture = - (5.8%) Segment Profit % 6.4% 8.7% - 230 bps • Organic sale
Slide 15: Investor Relations
Investor Relations 15 Brady Contact: Ann Thornton Investor Relations 414-438-6887 Ann_Thornton@bradycorp.com See our web site at www.bradycorp.com