Slide 1: Brady Corporation F'22 Q2 Financial Results
February 17, 2022 Brady Corporation F’22 Q2 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: Q2 F'22 Financial Summary
3Q2 F’22 Financial Summary • Sales grew 19.6% to $318.1M in Q2 of F’22 compared with $265.8M in Q2 of F’21. – Organic sales grew 13.1%, acquisitions increased sales by 8.6% and foreign currency translation decreased sales 2.1%. • Gross profit margin of 47.0% in Q2 of F’22 compared with 48.7% in Q2 o
Slide 4: Sales Overview
4Sales Overview • Total sales increased 19.6%. • Organic sales increased 13.1%: • ID Solutions – Organic sales increased 16.0%. • Workplace Safety – Organic sales increased 5.2%. • 8.6% increase due to acquisitions. • 2.1% decrease due to foreign currency translation. Q2 F’22 SALES: • ID Solutions e
Slide 5: Gross Profit Margin
Gross Profit Margin 5 • Gross profit margin of 47.0% compared to 48.7% in Q2 of F’21. • Gross margin has been negatively impacted by inflationary pressures including wage increases, freight increases, and raw material cost increases. • Efficiency gains, automation and selected price increases have p
Slide 6: SG&A Expense
SG&A Expense 6 • SG&A expense was 29.1% of sales compared to 30.9% of sales in the same quarter last year. • SG&A expense was negatively impacted by an increase in amortization expense from the acquisitions completed in the fourth quarter of last year. Amortization expense was $3.7M in Q2 of F’22 an
Slide 7: R&D Expense
R&D Expense 7 $11.3 $11.1 $11.4 $11.3 $11.0 $10.5 $9.8 $9.4 $10.2 $9.9 $11.3 $13.2 $13.9 $14.0 3.9% 3.9% 3.9% 3.8% 3.8% 3.8% 3.7% 3.7% 3.7% 3.7% 3.8% 4.3% 4.3% 4.4% 1.5% 2.5% 3.5% 4.5% $6.0 $8.0 $10.0 $12.0 $14.0 $16.0 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 Q
Slide 8: Income Before Income Taxes
8Income Before Income Taxes • GAAP Income before income taxes was $42.0M in Q2 of F’22 compared to $39.4M in Q2 of F’21. • Q2 of F’22 income before income taxes was negatively impacted by an increase in amortization expense resulting from the acquisitions completed in the fourth quarter of last year
Slide 9: Net Income & Diluted EPS
9Net Income & Diluted EPS • GAAP Net income was $33.8M in Q2 of F’22 compared to $30.9M in Q2 of F’21. - Net Income Excluding Amortization* was $36.7M in Q2 of F’22 compared to $31.9M in Q2 of F’21. • GAAP Diluted EPS was $0.65 in Q2 of F’22 compared to $0.59 in Q2 of F’21. - Diluted EPS Excluding A
Slide 10: Cash Generation & Uses
10Cash Generation & Uses • Cash flow from operating activities was ($3.2M) in Q2 of F’22 compared to $36.1M in Q2 of F’21. • Free cash flow* was ($8.3M) in Q2 of F’22 compared to $30.9M in Q2 of F’21. • Year-to-date, free cash flow* was $7.9M in Q2 of F’22. • Cash generation was negatively impacted
Slide 11: Net Cash
Net Cash 11 • January 31, 2022 cash = $147.4M. • January 31, 2022 debt = $83.0M. • Brady is in a net cash position of $64.4M. • Balance sheet provides flexibility for future organic and inorganic investments. STRONG BALANCE SHEET: $138 $151 $188 $229 $245 $240 $190 $218 $256 $278 $322 $109 $91 $64 $
Slide 12: Updated F'22 EPS Guidance
12Updated F’22 EPS Guidance F’22 Diluted EPS, Excluding Amortization $3.00 to $3.15 (+9% to +15% vs. F’21) (Previous range of $3.12 to $3.32 per share) GAAP Diluted EPS $2.78 to $2.93 (+13% to +19% vs. F’21) (Previous range of $2.90 to $3.10/share) Guidance Assumptions: • Continued economic expansio
Slide 13: Identification Solutions
Q2 F’22 vs. Q2 F’21 (millions of USD) 13Identification Solutions • Revenues increased 26.1%: • Organic growth = + 16.0%. • Acquisition growth = + 11.8%. • Fx reduction = (1.7%). • Strong organic sales growth in all regions. • Segment profit negatively impacted by a $2.4M increase in amortization exp
Slide 14: Workplace Safety
Q2 F’22 vs. Q2 F’21 (millions of USD) 14Workplace Safety • Revenues grew 2.0%: • Organic growth = + 5.2%. • Fx reduction = (3.2%). • Organic sales increased in EMEA and Australia as sales growth in our core product offerings more than offset the reduction of Covid-related product sales. • Organic sa
Slide 15: Investor Relations
15Investor Relations Brady Contact: Ann Thornton Investor Relations 414-438-6887 Ann_Thornton@bradycorp.com See our website at www.bradycorp.com/investors
Slide 16: Appendix GAAP to Non-GAAP Reconciliations
Appendix GAAP to Non-GAAP Reconciliations 16
Slide 17: Non-GAAP Reconciliations
17Non-GAAP Reconciliations 2022 2021 2022 2021 42,042$ 39,397$ 86,738$ 81,634$ Amortization expense 3,749 1,353 7,556 2,704 45,791$ 40,750$ 94,294$ 84,338$ 2022 2021 2022 2021 8,227$ 8,206$ 17,877$ 16,788$ Amortization expense 887 338 1,787 676 9,114$ 8,544$ 19,664$ 17,464$ Three months ended Januar
Slide 18: Non-GAAP Reconciliations
18Non-GAAP Reconciliations 2022 2021 2022 2021 33,815$ 30,860$ 68,861$ 64,341$ Amortization expense 2,862 1,015 5,769 2,028 36,677$ 31,875$ 74,630$ 66,369$ 2022 2021 2022 2021 $ 0.65 $ 0.59 $ 1.32 $ 1.23 Amortization expense 0.05 0.02 0.11 0.04 0.70$ 0.61$ 1.43$ 1.27$ Three months ended January 31,