Brady Corporation · NYSE:BRC
Brady — Q3 2019 Earnings Presentation
15 slides from Brady's earnings presentation, May 23, 2019
Slide 1: Brady Corporation F'19 Q3 Financial Results
Brady Corporation F’19 Q3 Financial Results May 23, 2019
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: Q3 F'19 Financial Summary
Q3 F’19 Financial Summary 3 • Sales were $289.7M in Q3 of F’19 compared with $298.4M in Q3 of F’18. – Organic sales increased 2.4%. – Foreign currency translation decreased sales 3.8%. – Sale of business decreased sales 1.5%. • Gross profit margin of 50.3% in Q3 of F’19 compared with 50.6% in Q3 of
Slide 4: Sales Overview
Sales Overview 4 SALES (millions of USD) $305 $298 $297 $295 $293 $289 $290 $290 $288 $285 $282 $276 $275 $265 $255 Q3 F'17 Q4 F'17 Q1 F'18 Q2 F'18 Q3 F'18 Q4 F'18 Q1 F'19 Q2 F'19 Q3 F'19 Organic Sales (1.9%) 3.0% 1.7% 3.2% 3.2% 2.5% 4.7% 2.3% 2.4% Growth Q3 F’19 SALES: Q3 F’19 SALES COMMENTARY: • 2
Slide 5: Gross Profit Margin
Gross Profit Margin 5 GROSS PROFIT & GPM% (millions of USD) 50.7% 50.6% 50.3% 50.3% 49.9% 50.0% 49.7% 49.6% 49.5% $151 50% $150 $146 $147 $147 $144 $144 $146 $140 $140 45% $125 $100 40% Q3 F'17 Q4 F'17 Q1 F'18 Q2 F'18 Q3 F'18 Q4 F'18 Q1 F'19 Q2 F'19 Q3 F'19 Q3 F’19 – GROSS PROFIT MARGIN: • Slight de
Slide 6: SG&A Expense
SG&A Expense 6 SG&A EXPENSE AND SG&A EXPENSE AS A % of SALES (millions of USD) 35.7% 34.1% $110 34.5% 35% 33.4% 33.9% 32.8% $102 32.3% 32.7% $100 33% $100 $98 30.6% $97 $98 $95 $95 $93 30% $91 $90 28% $80 25% Q3 F'17 Q4 F'17 Q1 F'18 Q2 F'18 Q3 F'18 Q4 F'18 Q1 F'19 Q2 F'19 Q3 F'19 Q3 F’19 – SG&A EXPE
Slide 7: R&D Expense
R&D Expense 7 R&D EXPENSE AND R&D EXPENSE AS A % of SALES (millions of USD) $14.0 3.9% 3.9% 3.9% 3.9% 3.9% 3.8% 3.9% 4.0% $12.0 3.6% 3.6% $11.7 $11.7 $11.3 $11.3 $11.4 $11.1 $11.0 $10.5 3.5% $10.0 $10.0 3.0% $8.0 $6.0 2.5% Q3 F'17 Q4 F'17 Q1 F'18 Q2 F'18 Q3 F'18 Q4 F'18 Q1 F'19 Q2 F'19 Q3 F'19 Q3INC
Slide 8: Income Before Income Taxes
Income Before Income Taxes 8 INCOME BEFORE INCOME TAXES (millions of USD) $45.2 $45 $41.0 $39.9 $40 $37.0 $35.9 $36.7 $34.8 $35.0 $35 $30.6 $30 $25 $20 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 F'17 F'17 F'18 F'18 F'18 F'18 F'19 F'19 F'19 Year on Year Growth 3.2% 12.2% 12.2% 20.4% 20.7% 26.0% 14.8% 4.8% 10.8% INCO
Slide 9: Net Income & Diluted EPS
Net Income & Diluted EPS 9 NET INCOME (millions of USD) NET INCOME PER CLASS A DILUTED SHARE $40 $0.66 $0.65 $35.0 $34.8 $0.58 $0.60 $0.55 $30.6 $29.2 $30 $0.48 $0.49 $0.49 $25.2 $25.8 $26.0 $0.43 $22.6 $0.40 $20 $0.20 $10 $4.3 $0.08 $0 $0.00 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 F'1
Slide 10: Cash Generation & Uses
Cash Generation & Uses 10 CASH FLOW FROM OPERATING ACTIVITIES (millions of USD) CASH FLOWS IN Q3 OF F’19: $60 • Cash flow from operating activities was $52.7M $52.9 $53.8 $52.7 in Q3 of F’19 compared to $46.8M in Q3 of F’18. $50 $46.8 $37.8 • Free cash flow* was $47.3M in Q3 of F’19 $40 $34.7 compar
Slide 11: Net Cash (Debt)
Net Cash (Debt) 11 NET CASH (DEBT) (millions of USD) DEBT STRUCTURE (millions of USD) $188 $190 $151 $138 Interest Apr. 30, 2019 July 31, 2018 $140 $129 Rate Balance Balance Private Placements: $90 EUR-den. 2010 Series (10-yr.) 4.24% $ (50.3) $ (52.6) $73 TOTAL DEBT $ (50.3) $ (52.6) $48 $44 $40 $26
Slide 12: Full-Year F'19 Guidance
Full-Year F’19 Guidance 12 F’19 Diluted EPS guidance range increased to $2.35 to $2.40. (previous guidance range was $2.25 to $2.35). F’19 Guidance Assumptions: • Full-year organic sales growth of approximately 3%. • Full-year depreciation and amortization expense of approximately $24M. • Fourth qua
Slide 13: Identification Solutions Q3 F'19 vs. Q3 F'18
Identification Solutions 13 Q3 F’19 vs. Q3 F’18 (millions of USD) Q3 F’19 SUMMARY: • Revenues increased 0.9%: Q3 F’19 Q3 F’18 Change • Organic = +4.0% Sales $ 214.0 $ 212.2 + 0.9% • Fx = - (3.1)% Segment Profit 39.9 37.0 + 7.9% • Organic sales increased in the low-single digits in the Americas and A
Slide 14: Workplace Safety Q3 F'19 vs. Q3 F'18
Workplace Safety 14 Q3 F’19 vs. Q3 F’18 (millions of USD) Q3 F’19 SUMMARY: • Revenues decreased (12.2%): Q3 F’19 Q3 F’18 Change • Organic = - (1.6%) Sales $ 75.8 $ 86.3 - 12.2% • Fx = - (5.3%) Segment Profit 6.1 7.5 - 19.1% • Divestiture = - (5.3%) Segment Profit % 8.0% 8.7% - 70 bps • Organic sales
Slide 15: Investor Relations
Investor Relations 15 Brady Contact: Ann Thornton Investor Relations 414-438-6887 Ann_Thornton@bradycorp.com See our web site at www.bradycorp.com