Slide 1: F'12 - Q3 Financial Results
F'12 - Q3 Financial Results May 16, 2012 May 16, 2012 BRADY - FISCAL 2012 Q3 FINANCIAL RESULTS
Slide 2: Forward-Looking Statements
FORWARD-LOOKING STATEMENTS BRADY - FISCAL 2012 Q3 FINANCIAL RESULTS 2 Brady believes that certain statements in this presentation are "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. All statements related to future, not past, events included i
Slide 3: Q3 F'12 Financial Summary
Q3 F'12 FINANCIAL SUMMARY Net income down 3.3% to $27.7M vs. $28.6M in Q3 of F'11. Net Income, excluding restructuring charges up 3.0% to $30.3M vs. $29.5M in Q3 of F'11. Diluted EPS down 3.7% to $0.52 in Q3 of F'12 vs. $0.54 in Q3 of F'11. Diluted EPS, excluding restructuring charges up 3.6% to $0.
Slide 4: F'12 Guidance
F'12 GUIDANCE BRADY - FISCAL 2012 Q3 FINANCIAL RESULTS 4 Diluted EPS $2.15 - $2.25 (Excluding after-tax impairment and restructuring-related charges) Guidance Assumptions: Full-year income tax rate in the mid-20% range.* Guidance based on current foreign currency exchange rates. Full-year capital ex
Slide 5: Sales Overview
SALES OVERVIEW Organic 2% 10% 1% (0.6%) 3.5% (1.8%) (0.5%) BRADY - FISCAL 2012 Q3 FINANCIAL RESULTS 5 Q3 F'12 Sales Down 1.9%. (0.5%) Organic Sales Decline. 0.2% Growth from Acquisitions. (1.6%) Decline due to Currency Translation. Americas - Driven by strong U.S. sales. EMEA - Internal initiatives
Slide 6: Gross Profit Margin and SG&A
GROSS PROFIT MARGIN AND SG&A BRADY - FISCAL 2012 Q3 FINANCIAL RESULTS 6 GROSS PROFIT & GPM% (Millions of USD) SG&A & SG&A as % of SALES (Millions of USD) GPM down 130 bps to 48.3% in Q3 of F'12 versus 49.6% in Q3 of F'11. Asia GPM weakness driving the reduced GPM. GROSS PROFIT MARGIN DRIVERS: Exclud
Slide 7: Net Income and Diluted EPS
NET INCOME* AND DILUTED EPS* Q3 Net Income down 3.3% compared to Q3 F'11. Q3 F'12 net income, excluding restructuring charges up 3.0% to $30.3M. Q3 F'12 diluted EPS, excluding restructuring charges was up 3.6% to $0.57 compared to $0.55 last year. Q3 F'12 significant items: Chinese New Year Falling
Slide 8: Cash Generation
CASH GENERATION BRADY - FISCAL 2012 Q3 FINANCIAL RESULTS 8 Cash Flow from Operating Activities = 208% of net income in Q3 of F'12. Repaid $42.5M of long-term debt in Q3. Spent $3.0M on acquisitions in Q3 and an additional $36.0M on May 2, 2012. Cash Position of $374.4 million at April 30, 2012. CASH
Slide 9: Decreasing Debt & Increasing EBITDA
DECREASING DEBT & INCREASING EBITDA BRADY - FISCAL 2012 Q3 FINANCIAL RESULTS NET DEBT / EBITDA* April 30, 2012 Debt = $342M April 30, 2012 Cash = $374M STRONG BALANCE SHEET: 9 DEBT & TTM EBITDA* (Millions of USD) * Excludes $115.7M of non-cash impairment charges in Q2 of F'12.
Slide 10: Q3 F'12 - New Product Launches
Q3 F'12 - NEW PRODUCT LAUNCHES High Resolution Printing System: BBP-16TM Printing System - Thermal transfer printer for the Asia product identification market with best in class features for ease of use and productivity, including the ability to print very small size labels. Aerospace, Defense and M
Slide 11: Americas - Q3 F'12 Summary
AMERICAS - Q3 F'12 SUMMARY Q3 F'11 Q3 F'12 Change Sales $ 149.2 $ 150.6 + 1.0% Segment Profit 38.3 38.9 + 1.6% Segment Profit % 25.7% 25.8% + 0.1 pts BRADY - FISCAL 2012 Q3 FINANCIAL RESULTS 11 SALES & SEGMENT PROFIT % (Millions of USD) Q3 F'12 vs. Q3 F'11 PERFORMANCE Revenues up 1.0%: Organic Growt
Slide 12: EMEA - Q3 F'12 Summary
EMEA - Q3 F'12 SUMMARY Q3 F'11 Q3 F'12 Change Sales $105.9 $ 97.9 - 7.5% Segment Profit 28.9 25.6 - 11.6% Segment Profit % 27.3% 26.1% - 1.2 pts BRADY - FISCAL 2012 Q3 FINANCIAL RESULTS 12 SALES & SEGMENT PROFIT % (Millions of USD) Q3 F'12 vs. Q3 F'11 PERFORMANCE Revenues down 7.5%: Organic Sales De
Slide 13: Asia-Pacific - Q3 F'12 Summary
ASIA-PACIFIC - Q3 F'12 SUMMARY Q3 F'11 Q3 F'12 Change Sales $ 82.8 $ 83.1 + 0.3% Segment Profit 10.0 6.6 - 33.9% Segment Profit % 12.1% 7.9% - 4.2 pts BRADY - FISCAL 2012 Q3 FINANCIAL RESULTS 13 SALES & SEGMENT PROFIT % (Millions of USD) Q3 F'12 vs. Q3 F'11 PERFORMANCE Revenues up 0.3%: Organic Sale
Slide 14: Investor Relations
INVESTOR RELATIONS Brady Contact: Aaron Pearce Investor Relations 414-438-6895 Aaron_Pearce@Bradycorp.com See our web site at www.investor.bradycorp.com BRADY - FISCAL 2012 Q3 FINANCIAL RESULTS 14
Slide 15: Income Statements
INCOME STATEMENTS BRADY - FISCAL 2012 Q3 FINANCIAL RESULTS 15 COMPARABLE INCOME STATEMENT (Millions of USD)
Slide 16: EBITDA Reconciliation
EBITDA RECONCILIATION BRADY - FISCAL 2012 Q3 FINANCIAL RESULTS 16 EBITDA (Millions of USD)