Brady Corporation · NYSE:BRC
Brady — Q1 2020 Earnings Presentation
15 slides from Brady's earnings presentation, Nov 21, 2019
Slide 1: Brady Corporation F'20 Q1 Financial Results
Brady Corporation F’20 Q1 Financial Results November 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: Q1 F'20 Financial Summary
Q1 F’20 Financial Summary 3 • Sales were $286.9M in Q1 of F’20 compared with $293.2M in Q1 of F’19. – Organic sales decreased 0.4%. – Foreign currency translation decreased sales 1.7%. • Gross profit margin of 49.3% in Q1 of F’20 compared with 50.0% in Q1 of F’19. • SG&A expense of $89.5M (31.2% of
Slide 4: Sales Overview
Sales Overview 4 SALES (millions of USD) $305 $298 $297 $295 $295 $293 $290 $290 $288 $287 $285 $282 $275 $265 $255 Q1 F'18 Q2 F'18 Q3 F'18 Q4 F'18 Q1 F'19 Q2 F'19 Q3 F'19 Q4 F'19 Q1 F'20 Organic Sales 1.7% 3.2% 3.2% 2.5% 4.7% 2.3% 2.4% 1.7% (0.4%) Q1 F’20 SALES: Q1 F’20 SALES COMMENTARY: • 0.4% dec
Slide 5: Gross Profit Margin
Gross Profit Margin 5 GROSS PROFIT & GPM% (millions of USD) 50.6% 50.3% 50.3% 49.9% 50.0% 49.6% 49.5% 49.6% $151 49.3% 50% $147 $150 $146 $147 $146 $147 $144 $140 $141 45% $125 $100 40% Q1 F'18 Q2 F'18 Q3 F'18 Q4 F'18 Q1 F'19 Q2 F'19 Q3 F'19 Q4 F'19 Q1 F'20 Q1 F’20 – GROSS PROFIT MARGIN: • Gross pro
Slide 6: SG&A Expense
SG&A Expense 6 SG&A EXPENSE AND SG&A EXPENSE AS A % of SALES (millions of USD) $110 34.5% 33.9% 34.1% 35% 32.8% 32.7% $102 32.3% $100 33% $100 $98 30.6% 31.2% 30.2% $95 $95 $93 30% $91 $90 $89 $90 28% $80 25% Q1 F'18 Q2 F'18 Q3 F'18 Q4 F'18 Q1 F'19 Q2 F'19 Q3 F'19 Q4 F'19 Q1 F'20 Q1 F’20 – 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% 3.9% 3.9% 4.0% 3.8% 3.8% $12.0 3.6% $11.7 $11.7 $11.3 $11.3 $11.4 $11.3 $11.1 $11.0 $10.5 3.5% $10.0 3.0% $8.0 $6.0 2.5% Q1 F'18 Q2 F'18 Q3 F'18 Q4 F'18 Q1 F'19 Q2 F'19 Q3 F'19 Q4 F'19 Q1 F'20 Q1INC
Slide 8: Income Before Income Taxes
Income Before Income Taxes 8 INCOME BEFORE INCOME TAXES (millions of USD) $50 $47.1 $45.2 $45 $41.0 $41.6 $39.9 $40 $37.0 $36.7 $34.8 $35.0 $35 $30 $25 $20 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 F'18 F'18 F'18 F'18 F'19 F'19 F'19 F'19 F'20 Year on Year Growth 12.2% 20.4% 20.7% 26.0% 14.8% 4.8% 10.8% 4.1% 4.2% Q
Slide 9: Net Income & Diluted EPS
Net Income & Diluted EPS 9 NET INCOME PER CLASS A DILUTED SHARE NET INCOME (millions of USD) $0.70 $0.66 $0.68 $0.65 $40 $36.6 $37.5 $35.0 $34.8 $0.60 $0.58 $0.55 $30.6 $0.49 $0.49 $29.2 $30 $25.8 $26.0 $0.40 $20 $0.20 $10 $0.08 $4.3 $0.00 $0 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 F'1
Slide 10: Cash Generation & Uses
Cash Generation & Uses 10 CASH FLOW FROM OPERATING ACTIVITIES (millions of USD) CASH FLOWS IN Q1 OF F’20: $70 $65.3 • Cash flow from operating activities was $38.8M in Q1 of F’20 compared to $18.8M in Q1 of F’19. $60 $53.8 $52.7 • Free cash flow* was $31.1M in Q1 of F’20 $50 $46.8 $38.8 compared to
Slide 11: Net Cash
Net Cash 11 NET CASH (millions of USD) DEBT STRUCTURE (millions of USD) $250 $245 $229 Interest Oct. 31, 2019 July 31, 2019 $200 $188 Rate Balance Balance Private Placements: $151 EUR-den. 2010 Series (10-yr.) 4.24% $ (50.1) $ (50.2) $150 $138 $129 TOTAL DEBT $ (50.1) $ (50.2) $100 Cash and Cash Equ
Slide 12: Full-Year F'20 EPS Guidance
Full-Year F’20 EPS Guidance 12 F’20 Diluted EPS guidance range increased to $2.50 to $2.60. (previous guidance range was $2.45 to $2.55). F’20 Guidance Assumptions: • Organic sales growth of approximately 1.5% - 2.5%. • Depreciation and amortization expense of approximately $25M. • Income tax rate o
Slide 13: Identification Solutions Q1 F'20 vs. Q1 F'19
Identification Solutions 13 Q1 F’20 vs. Q1 F’19 (millions of USD) Q1 F’20 SUMMARY: • Revenues decreased - (1.4%): Q1 F’20 Q1 F’19 Change • Organic = - (0.2%) Sales $ 215.0 $ 218.1 - 1.4% • Fx = - (1.2%) Segment Profit 42.4 41.6 + 2.1% • Organic sales increased in the low-single digits in the America
Slide 14: Workplace Safety Q1 F'20 vs. Q1 F'19
Workplace Safety 14 Q1 F’20 vs. Q1 F’19 (millions of USD) Q1 F’20 SUMMARY: • Revenues decreased - (4.2%): Q1 F’20 Q1 F’19 Change • Organic = - (0.8%) Sales $ 72.0 $ 75.1 - 4.2% • Fx = - (3.4%) Segment Profit 5.2 5.5 - 6.9% • Organic sales decreased in the low-single digits in Segment Profit % 7.2% 7
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