Brady Corporation · NYSE:BRC
Brady — Q1 FY2018 Earnings Presentation
14 slides from Brady's earnings presentation, Nov 16, 2017
Slide 1: Brady Corporation F'18 Q1 Financial Results
Brady Corporation F’18 Q1 Financial Results November 16, 2017
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'18 Financial Summary
Q1 F’18 Financial Summary 3 • Sales increased 3.6% to $290.2M in Q1 of F’18 vs. $280.2M in Q1 of F’17. – Organic sales increased 1.7%. – Foreign currency translation increased sales by 1.9%. • Gross profit margin of 50.3% in Q1 of F’18 compared with 50.1% in Q1 of F’17. • SG&A expense of $100.1M (34
Slide 4: Sales Overview
Sales Overview 4 SALES (millions of USD) $305 $295 $289 $290 $287 $285 $283 $282 $280 $276 $275 $269 $268 $265 $255 Q1 F'16 Q2 F'16 Q3 F'16 Q4 F'16 Q1 F'17 Q2 F'17 Q3 F'17 Q4 F'17 Q1 F'18 Organic Sales (2.2%) 0.4% (0.1%) (0.9%) (0.2%) 1.3% (1.9%) 3.0% 1.7% Growth Q1 F’18 SALES: Q1 F’18 SALES COMMENT
Slide 5: Gross Profit Margin
Gross Profit Margin 5 GROSS PROFIT & GPM% (millions of USD) $175 55% 50.7% 50.7% 50.3% 50.0% 50.1% 50.1% 49.7% 49.2% 49.5% 50% $150 $145 $146 $144 $141 $140 $140 45% $139 $133 $134 40% $125 35% $100 30% Q1 F'16 Q2 F'16 Q3 F'16 Q4 F'16 Q1 F'17 Q2 F'17 Q3 F'17 Q4 F'17 Q1 F'18 Q1 F’18 – GROSS PROFIT MA
Slide 6: SG&A Expense
6 SG&A Expense SG&A EXPENSE AND SG&A EXPENSE AS A % of SALES (millions of USD) $120 40% 37.3% 36.9% 35.3% 35.7% 38% 35.6% 35.0% $110 34.9% $106 34.5% 35% 33.4% $101 $100 $100 $100 $98 $98 $98 33% $97 $95 30% $90 28% $80 25% Q1 F'16 Q2 F'16 Q3 F'16 Q4 F'16 Q1 F'17 Q2 F'17 Q3 F'17 Q4 F'17 Q1 F'18 Q1 F
Slide 7: R&D Expense
7 R&D Expense R&D EXPENSE AND R&D EXPENSE AS A % of SALES (millions of USD) $15.0 3.8% 4.0% 3.5% 3.6% 3.6% $13.0 3.4% 3.3% 3.5% 3.3% $11.0 $11.0 3.0% 3.1% $10.5 $10.0 $9.3 $9.1 $9.5 3.0% $9.1 $8.9 $9.0 $8.6 2.5% $7.0 $5.0 2.0% Q1 F'16 Q2 F'16 Q3 F'16 Q4 F'16 Q1 F'17 Q2 F'17 Q3 F'17 Q4 F'17 Q1 F'18 I
Slide 8: Net Earnings & Earnings per Share
Net Earnings & Earnings per Share 8 NET EARNINGS (millions of USD) NET EARNINGS PER CLASS A DILUTED SHARE $40 $0.60 $30 $0.49 $0.49 $0.48 $0.49 $25 $25 $25 $26 $0.44 $0.42 $0.43 $23 $23 $21 $0.40 $0.37 $20 $19 $15 $0.30 $10 $0.20 $0 Q1 F'16 Q2 F'16 Q3 F'16 Q4 F'16 Q1 F'17 Q2 F'17 Q3 F'17 Q4 F'17 Q1
Slide 9: Cash Generation & Uses
Cash Generation & Uses 9 CASH FLOW FROM OPERATING ACTIVITIES (millions of USD) CASH FLOWS IN Q1 OF F’18: $60 $53 • Cash flow from operating activities was $50 $34.7M in Q1 of F’18 compared to $34.0M in Q1 of F’17. $40 $40 $40 $38 $34 $35 • Cash flow from operating activities was $30 impacted by the
Slide 10: Net Cash (Debt)
Net Cash (Debt) 10 NET CASH (DEBT) (millions of USD) DEBT STRUCTURE (millions of USD) Interest Oct. 31, 2017 July 31, 2017 $48 $50 Rate Balance Balance $26 Revolver Borrowings: USD-denominated 1.95% $ (17.0) $ (17.0) $0 EUR-denominated 0.75% (24.7) (34.3) $(9) China Borrowings: -$50 $(38) USD & CNY-
Slide 11: Full Year F'18 Guidance Unchanged
Full Year F’18 Guidance Unchanged 11 F’18 Diluted EPS $1.85 to $1.95 Guidance Assumptions: • Low-single digit organic sales growth. • Full-year depreciation and amortization expense of approximately $26M. • Full-year income tax rate of 27% to 29%. • Full-year capital expenditures of approximately $3
Slide 12: Identification Solutions
Identification Solutions 12 Q1 F’18 vs. Q1 F’17 PERFORMANCE (millions of USD) Q1 F’18 SUMMARY: Q1 F’18 Q1 F’17 Change • Revenues increased 4.2%: • Organic = + 2.9% Sales $ 209.7 $ 201.3 + 4.2% • Fx = + 1.3% Segment Profit 35.8 33.1 + 8.4% • Organic sales increased in the mid-single digits in Segment
Slide 13: Workplace Safety
Workplace Safety 13 Q1 F’18 vs. Q1 F’17 PERFORMANCE (millions of USD) Q1 F’18 SUMMARY: Q1 F’18 Q1 F’17 Change • Revenues increased 1.9%: • Organic = - (1.4)% Sales $ 80.4 $ 78.9 + 1.9% • Fx = + 3.3% Segment Profit 6.4 6.5 - 0.1% • Organic sales declined in the mid-single digits in the Segment Profit
Slide 14: Investor Relations
Investor Relations 14 Brady Contact: Ann Thornton Investor Relations 414-438-6887 Ann_Thornton@bradycorp.com See our web site at www.bradycorp.com