Slide 1: Brady Corporation F'21 Q4 Financial Results
September 2, 2021 Brady Corporation F’21 Q4 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: Q4 F'21 Financial Summary
3Q4 F’21 Financial Summary • Sales grew 21.6% to $306.1M in Q4 of F’21 compared with $251.7M in Q4 of F’20. – Organic sales grew 12.6%, acquisitions increased sales by 4.7% and foreign currency translation increased sales 4.3%. • Gross profit margin of 48.2% in Q4 of F’21 compared with 47.1% in Q4 o
Slide 4: Sales Overview
4Sales Overview • Total sales increased 21.6%. • Organic sales increased 12.6%: • ID Solutions – Organic sales increased 24.5%. • Workplace Safety – Organic sales declined 12.7%. • 4.7% increase due to acquisitions. • 4.3% increase due to foreign currency translation. Q4 F’21 SALES: • ID Solutions –
Slide 5: Gross Profit Margin
Gross Profit Margin 5 • Gross profit margin of 48.2% compared to 47.1% in Q4 of F’20. • The non-recurring impact of purchase accounting charges related to our recent acquisitions reduced our gross profit margin by approximately 20 basis points. • Efficiency gains, automation and selected price incre
Slide 6: SG&A Expense
SG&A Expense 6 • SG&A expense increased as a percent of sales when compared to Q4 of last year primarily due to increased incentive-based compensation and acquisition-related expenses. • We continue to drive efficiencies in SG&A expenses while also investing in sales and marketing activities to acce
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 3.9% 3.9% 3.9% 3.8% 3.8% 3.8% 3.7% 3.7% 3.7% 3.7% 3.8% 4.3% 1.5% 2.5% 3.5% 4.5% $6.0 $8.0 $10.0 $12.0 $14.0 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'21 R&D EXPENSE A
Slide 8: Income Before Income Taxes
8Income Before Income Taxes • GAAP Income before income taxes was $41.6M in Q4 of F’21 compared to $34.9M in Q4 of F’20. • Q4 of F’21 income before income taxes was negatively impacted by $3.7M of acquisition-related non-recurring expenses, which have been removed to arrive at the non-GAAP measure o
Slide 9: Net Income & Diluted EPS
9Net Income & Diluted EPS • GAAP Net income was $28.0M in Q4 of F’21 compared to $27.7M in Q4 of F’20. - Net Income Excluding Certain Items* was $37.0M in Q4 of F’21 compared to $27.7M in Q4 of F’20. • GAAP Diluted EPS was $0.53 in both Q4 of F’21 and Q4 of F’20. - Diluted EPS Excluding Certain Item
Slide 10: Cash Generation & Uses
10Cash Generation & Uses • Cash flow from operating activities was $50.8M in Q4 of F’21 compared to $45.1M in Q4 of F’20. • Free cash flow* was $45.0M in Q4 of F’21 compared to $39.4M in Q4 of F’20. • We invested $244.0M in acquisitions in Q4 of F’21. • We returned $11.4M to our shareholders in the
Slide 11: Net Cash
Net Cash 11 • July 31, 2021 cash = $147.3M. • July 31, 2021 debt = $38.0M. • Brady is in a net cash position, even after investing $244.0M in acquisitions in Q4 of F’21. • Balance sheet provides flexibility for future organic and inorganic investments. STRONG BALANCE SHEET: $138 $151 $188 $229 $245
Slide 12: F'21 Financial Summary
12F’21 Financial Summary * Net Income Excluding Certain Items and Diluted EPS Excluding Certain Items, are non-GAAP measures. See appendix. 2021 2020 Change Sales 1,144.7$ 1,081.3$ 5.9% Organic Sales Growth (Decline) 1.6% (5.4%) Gross Margin 561.4 528.6 6.2% % of Sales 49.0% 48.9% Research and Devel
Slide 13: F'22 Diluted EPS Guidance
13F’22 Diluted EPS Guidance F’22 Diluted EPS, Excluding Amortization $3.12 to $3.32 GAAP F’22 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 $0.22/share in F’22). Guidance Assumptions: • Continued economic improvement. •
Slide 14: Identification Solutions
Q4 F’21 vs. Q4 F’20 (millions of USD) 14Identification Solutions • Revenues increased 35.0%: • Organic growth = + 24.5%. • Acquisition growth = + 6.9%. • Fx growth = + 3.6%. • Organic sales growth in all regions. • Expenses are controlled due to sustainable efficiency activities, automation, and cos
Slide 15: Workplace Safety
Q4 F’21 vs. Q4 F’20 (millions of USD) 15Workplace Safety • Revenues decreased 6.8%: • Organic sales declined 12.7%. • Fx = + 5.9%. • Organic sales declined in all regions due to reduced sales of Covid-related products. • Q4 of F’21 sales were above the pre-pandemic levels experienced in Q4 of F’19.
Slide 16: Investor Relations
16Investor Relations Brady Contact: Ann Thornton Investor Relations 414-438-6887 Ann_Thornton@bradycorp.com See our website at www.bradycorp.com/investors
Slide 17: Appendix GAAP to Non-GAAP Reconciliations
Appendix GAAP to Non-GAAP Reconciliations 17
Slide 18: Non-GAAP Reconciliations
18Non-GAAP Reconciliations 2021 2020 2021 2020 41,614$ 34,856$ 171,023$ 140,936$ Non-recurring acquisition transaction fees and other expenses 3,742 - 3,742 - Impairment charges - - - 13,821 45,356$ 34,856$ 174,765$ 154,757$ 2021 2020 2021 2020 8,593$ 6,925$ 35,610$ 28,321$ Non-recurring acquisition
Slide 19: Non-GAAP Reconciliations
19Non-GAAP Reconciliations 2021 2020 2021 2020 28,027$ 27,685$ 129,659$ 112,369$ Non-recurring acquisition transaction fees and other expenses 3,053 - 3,053 - Impairment charges - - - 11,064 Acquisition-related tax charges 942 - 942 - Other-than-temporary impairment of unconsolidated affiliate 4,994