Brady Corporation · NYSE:BRC
Brady — Q3 FY2021 Earnings Presentation
16 slides from Brady's earnings presentation, May 20, 2021
Slide 1: Brady Corporation F'21 Q3 Financial Results
May 20, 2021 Brady Corporation F’21 Q3 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: Tender Offer for Nordic ID Oyj
Nordic ID Overview: • Finnish publicly-traded company. • Anticipated purchase price of approximately USD 13M. • Nordic ID has a complete range of RFID readers, scanners, and the associated software platform. Strategic Rationale: • The acquisition of Nordic ID provides a complementary product offerin
Slide 4: Q3 F'21 Financial Summary
4Q3 F’21 Financial Summary • Sales were $295.5M in Q3 of F’21 compared with $265.9M in Q3 of F’20. – Organic sales grew 6.5% and foreign currency translation increased sales 4.6%. • Gross profit margin of 50.4% in Q3 of F’21 compared with 48.7% in Q3 of F’20. • SG&A expense of $90.8M (30.7% of sales
Slide 5: Sales Overview
5Sales Overview • Total sales increased 11.1%. • Organic sales increased 6.5%: • ID Solutions – Organic sales increase of 9.8%. • Workplace Safety – Organic sales decline of 2.2%. • 4.6% increase due to foreign currency translation. Q3 F’21 SALES: • ID Solutions – Organic sales continued to show seq
Slide 6: Gross Profit Margin
Gross Profit Margin 6 • Gross profit margin of 50.4% compared to 48.7% in Q3 of F’20. • We continue to invest in automation and manufacturing efficiencies. • Efficiency gains, automation and selected price increases more than offset the negative impacts caused by input-cost inflation, product mix, a
Slide 7: SG&A Expense
SG&A Expense 7 • SG&A expense decreased as a percent of sales due to ongoing benefits from efficiency actions and increased sales more than offsetting increased compensation and foreign currency translation. • Sequentially, SG&A expense was up $8.6M compared to the second quarter of this year. This
Slide 8: R&D Expense
R&D Expense 8 $11.3 $11.1 $11.4 $11.3 $11.0 $10.5 $9.8 $9.4 $10.2 $9.9 $11.3 3.9% 3.9% 3.9% 3.8% 3.8% 3.8% 3.7% 3.7% 3.7% 3.7% 3.8% 2.5% 3.0% 3.5% 4.0% $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 R&D EXPENSE AND R&D EXPENSE AS A
Slide 9: Income Before Income Taxes
9Income Before Income Taxes • Income before income taxes and losses of unconsolidated affiliate increased 115.7% to $47.8M in Q3 of F’21 compared to $22.2M in Q3 of F’20. • Q3 of F’20 income before income taxes was negatively impacted by $13.8M of non-cash impairment charges. Q3 F’21 - INCOME BEFORE
Slide 10: Net Income & Diluted EPS
10Net Income & Diluted EPS • Net income was $37.3M in Q3 of F’21 compared to $13.6M in Q3 of F’20. • Diluted EPS was $0.71 in Q3 of F’21 compared to $0.26 in Q3 of F’20. • Q3 F’20 net income and diluted EPS were negatively impacted by the following: • $13.8M of impairment charges ($11.1M after tax).
Slide 11: Cash Generation & Uses
11Cash Generation & Uses • Cash flow from operating activities was $56.0M in Q3 of F’21 compared to $42.8M in Q3 of F’20. • Free cash flow* was $49.1M in Q3 of F’21 compared to $34.3M in Q3 of F’20. • We returned $11.5M to our shareholders in the form of dividends in Q3 of F’21. • Cash generation co
Slide 12: Net Cash
Net Cash 12 • April 30, 2021 cash = $321.8M. • Brady has no outstanding debt. • Balance sheet provides flexibility for future organic and inorganic investments. STRONG BALANCE SHEET: $138 $151 $188 $229 $245 $240 $190 $218 $256 $278 $322 $0 $50 $100 $150 $200 $250 $300 Q1 F'19 Q2 F'19 Q3 F'19 Q4 F'1
Slide 13: F'21 Diluted EPS Guidance
13F’21 Diluted EPS Guidance Diluted EPS Guidance for the Year Ending July 31, 2021 $2.58 to $2.68 Implied Diluted EPS Guidance for $0.64 to $0.74 Q4 of F’21 (compares to $0.53 in Q4 of F’20) Guidance Assumptions: • Continued economic improvement and the successful roll-out of vaccines around the glo
Slide 14: Identification Solutions
Q3 F’21 vs. Q3 F’20 (millions of USD) 14Identification Solutions • Revenues increased 12.9%: • Organic growth = + 9.8%. • Fx = + 3.1%. • Organic sales growth in all regions. • Expenses are well controlled due to sustainable efficiency activities as well as cost containment activities. • Segment prof
Slide 15: Workplace Safety
Q3 F’21 vs. Q3 F’20 (millions of USD) 15Workplace Safety • Revenues increased 6.4%: • Organic sales declined 2.2%. • Fx = + 8.6%. • Organic sales declined due to the North American business and Australia. • Europe experienced low-single digit organic sales growth in the quarter. • Segment profit inc
Slide 16: Investor Relations
16Investor Relations Brady Contact: Ann Thornton Investor Relations 414-438-6887 Ann_Thornton@bradycorp.com See our web site at www.bradycorp.com/investors