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
Brady Corporation F’21 Q3 Financial Results May 20, 2021
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: Tender Offer for Nordic ID Oyj
Tender Offer for Nordic ID Oyj 3 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 provide
Slide 4: Q3 F'21 Financial Summary
Q3 F’21 Financial Summary 4 • 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 sale
Slide 5: Sales Overview
Sales Overview 5 SALES (millions of USD) $300 $293 $295 $296 $290 $287 $282 $277 $277 $275 $266 $266 $252 $250 $225 $200 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 Organic Sales 4.7% 2.3% 2.4% 1.7% (0.4%) (1.2%) (6.0%) (13.7%) (4.9%) (6.3%) 6.5% Q3 F’21 S
Slide 6: Gross Profit Margin
Gross Profit Margin 6 GROSS PROFIT & GPM% (millions of USD) 50.3% 50.3% 50.4% 50.0% 49.5% 49.6% 50% 49.3% 48.7% 48.9% 48.7% $149 $150 $147 $146 $147 $141 $140 $139 47.1% $135 $130 $130 45% $125 $119 $100 40% 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 Q3 F
Slide 7: SG&A Expense
SG&A Expense 7 SG&A EXPENSE AND SG&A EXPENSE AS A % of SALES (millions of USD) $110 32.3% 32.8% 32.7% 35% 31.2% 31.6% 31.3% 30.9% 30.7% 30.2% 30.2% $100 30.0% $95 $95 30% $93 $90 $91 $89 $90 $87 25% $83 $83 $82 $80 $76 20% $70 15% $60 10% Q1 F'19 Q2 F'19 Q3 F'19 Q4 F'19 Q1 F'20 Q2 F'20 Q3 F'20 Q4 F'
Slide 8: R&D Expense
R&D Expense 8 R&D EXPENSE AND R&D EXPENSE AS A % of SALES (millions of USD) $14.0 3.9% 3.9% 3.9% 4.0% 3.8% 3.8% 3.8% 3.8% 3.7% 3.7% 3.7% 3.7% $12.0 $11.4 $11.3 $11.3 $11.3 $11.1 $11.0 $10.5 3.5% $10.2 $9.8 $9.9 $10.0 $9.4 3.0% $8.0 $6.0 2.5% Q1 F'19 Q2 F'19 Q3 F'19 Q4 F'19 Q1 F'20 Q2 F'20 Q3 F'20 Q4
Slide 9: Income Before Income Taxes
Income Before Income Taxes 9 INCOME BEFORE INCOME TAXES AND LOSSES OF UNCONSOLIDATED AFFILIATE (millions of USD) $50 $47.1 $47.8 $41.0 $41.6 $42.4 $42.2 $39.9 $39.4 $40 $36.7 $34.9 $30 $22.2 $20 $10 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 F'19 F'19 F'19 F'19 F'20 F'20 F'20 F'20 F'21 F'21 F'21 Year on Year
Slide 10: Net Income & Diluted EPS
Net Income & Diluted EPS 10 NET INCOME PER CLASS A DILUTED SHARE NET INCOME (millions of USD) $0.70 $0.71 $0.68 $0.65 $0.64 $40 $37.5 $37.3 $0.62 $36.6 $0.58 $0.59 $34.8 $33.6 $33.5 $0.60 $0.55 $0.53 $30.9 $30.6 $29.2 $30 $27.7 $0.40 $20 $0.26 $13.6 $0.20 $10 $0.00 $0 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q
Slide 11: Cash Generation & Uses
Cash Generation & Uses 11 CASH FLOW FROM OPERATING ACTIVITIES (millions of USD) CASH FLOWS IN Q3 OF F’21: $65.3 • Cash flow from operating activities was $56.0M $62.8 $56.0 in Q3 of F’21 compared to $42.8M in Q3 of F’20. $60 $52.7 $45.1 • Free cash flow* was $49.1M in Q3 of F’21 $42.8 $38.8 $36.1 co
Slide 12: Net Cash
Net Cash 12 NET CASH (millions of USD) $322 $300 $278 $256 $245 $240 $250 $229 $218 $200 $188 $190 $151 $150 $138 $100 $50 $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 STRONG BALANCE SHEET: • April 30, 2021 cash = $321.8M. • Brady has no outstanding debt
Slide 13: F'21 Diluted EPS Guidance
F’21 Diluted EPS Guidance 13 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 gl
Slide 14: Identification Solutions
Identification Solutions 14 Q3 F’21 vs. Q3 F’20 (millions of USD) Q3 F’21 SUMMARY: Q3 F’21 Q3 F’20 Change • Revenues increased 12.9%: • Organic growth = + 9.8%. Sales $ 218.1 $ 193.2 + 12.9% • Fx = + 3.1%. Segment Profit 47.5 36.4 + 30.6% • Organic sales growth in all regions. Segment Profit % 21.8%
Slide 15: Workplace Safety
Workplace Safety 15 Q3 F’21 vs. Q3 F’20 (millions of USD) Q3 F’21 SUMMARY: Q3 F’21 Q3 F’20 Change • Revenues increased 6.4%: • Organic sales declined 2.2%. Sales $ 77.4 $ 72.8 + 6.4% • Fx = + 8.6%. Segment Profit 5.7 4.4 + 29.2% • Organic sales declined due to the North American business and Austral
Slide 16: Investor Relations
Investor Relations 16 Brady Contact: Ann Thornton Investor Relations 414-438-6887 Ann_Thornton@bradycorp.com See our web site at www.bradycorp.com/investors