Brady Corporation · NYSE:BRC
Brady — Q3 FY2023 Earnings Presentation
18 slides from Brady's earnings presentation, May 18, 2023
Slide 1: Brady Corporation F'23 Q3 Financial Results
Brady Corporation F’23 Q3 Financial Results May 18, 2023
Slide 2: Forward-Looking Statements
2 Forward-Looking Statements In this news release, 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'23 Highlights
Q3 F’23 Highlights 3 Continuing Organic Organic sales grew 1.9%, with organic growth in both regions. Sales Growth Foreign currency headwinds abating. Healthy Gross GPM of 50.3% compared to 48.4% in Q3 of F’22. Profit Margins Healthy gross profit margins indicative of Brady’s high value add. SG&A ex
Slide 4: Sales Overview
Sales Overview 4 SALES (millions of USD) $350 $339 $337 $324 $326 $321 $323 $325 $318 $306 $300 $296 $287 $277 $277 $275 $266 $266 $252 $250 $225 Q1 F'20 Q2 F'20 Q3 F'20 Q4 F'20 Q1 F'21 Q2 F'21 Q3 F'21 Q4 F'21 Q1 F'22 Q2 F'22 Q3 F'22 Q4 F'22 Q1 F'23 Q2 F'23 Q3 F'23 Organic Growth (0.4%) (1.2%) (6.0%
Slide 5: Gross Profit Margin
Gross Profit Margin 5 GROSS PROFIT & GPM% (millions of USD) 50.3% 50.4% 50.4% 50.3% 49.3% 50% 48.7% 48.9% 48.7% $175 48.2% 48.2% 48.4% 48.1% 48.0% $170 47.1% 47.0% $164 $163 48% $155 $155 $156 $149 $148 $149 46% $150 $141 $139 $135 44% $130 $130 $125 42% $119 40% $100 38% Q1 F'20 Q2 F'20 Q3 F'20 Q4
Slide 6: SG&A Expense
SG&A Expense 6 SG&A EXPENSE AND SG&A EXPENSE AS A % OF SALES (millions of USD) $120 35% 31.2% 31.6% 31.3% 30.2% 30.9% 30.7% 30.0% 30.6% 30.1% $110 29.1% 29.2% 28.4% 27.9% 28.3% 30% 27.0% $100 $97 $96 $94 $95 25% $93 $92 $90 $91 $90 $91 $90 $87 $83 $83 $82 20% $80 $76 15% $70 $60 10% Q1 F'20 Q2 F'20
Slide 7: R&D Expense
R&D Expense 7 R&D EXPENSE AND R&D EXPENSE AS A % OF SALES (millions of USD) 4.9% 4.7% $18.0 4.7% 4.4% 4.3% 4.3% 4.3% 4.4% 4.5% $15.8 $15.7 $16.0 $15.4 3.8% 3.8% $14.9 3.8% 3.7% 3.7% 3.7% 3.7% $13.9 $14.0 $13.9 $14.0 $13.2 3.5% $12.0 $11.0 $11.3 $10.5 $10.2 $9.8 $9.9 $10.0 $9.4 2.5% $8.0 $6.0 1.5% Q1
Slide 8: Income Before Income Taxes
Income Before Income Taxes 8 INCOME BEFORE INCOME TAXES (GAAP) (millions of USD) $70 $63.0 $60 $54.0 $51.3 $50.3 $48.5 $47.8 $50 $44.7 $41.6 $42.4 $42.2 $41.6 $42.0 $39.4 $40 $34.9 $30 $22.2 $20 $10 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 F'20 F'20 F'20 F'20 F'21 F'21 F'21 F'21 F'22 F'22 F'22 F
Slide 9: Net Income & Diluted EPS
Net Income & Diluted EPS 9 NET INCOME (GAAP) (millions of USD) DILUTED EPS (GAAP) $50 $1.00 $0.96 $48.1 $0.81 $0.79 $0.78 $41.1 $0.80 $0.76 $40.1 $39.4 $0.71 $40 $37.3 $38.0 $0.67 $0.65 $0.64 $35.0 $0.59 $33.5 $33.8 $0.60 $0.53 $30.9 $30 $28.0 $0.40 $20 $0.20 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q1 Q2 Q
Slide 10: Cash Generation
Cash Generation 10 CASH FLOW FROM OPERATING ACTIVITIES (millions of USD) $75 $72.5 $62.8 $56.0 $50.8 $53.2 CASH FLOWS IN Q3 OF F’23: $55 $42.8 $45.1 $40.9 $38.8 Overview: $36.1 $35 $27.5 $28.0 $29.4 Cash flow from operating activities was up 77.2% $14.3 in Q3 of F’23; increasing from $40.9M in Q3 of
Slide 11: Net Cash
Net Cash 11 NET CASH (millions of USD) $322 $300 $278 $256 $245 $240 $250 $218 $200 $190 $150 $109 $100 $91 $84 $64 $50 $31 $26 $19 $15 $0 Q1 F'20 Q2 F'20 Q3 F'20 Q4 F'20 Q1 F'21 Q2 F'21 Q3 F'21 Q4 F'21 Q1 F'22 Q2 F'22 Q3 F'22 Q4 F'22 Q1 F'23 Q2 F'23 Q3 F'23 STRONG BALANCE SHEET: April 30, 2023 cash
Slide 12: F'23 Diluted EPS Guidance
F’23 Diluted EPS Guidance 12 Diluted EPS Excluding Certain Items* $3.45 to $3.60 (+9.5% to +14.3% vs. F’22) GAAP Diluted EPS $3.32 to $3.47 (+14.5% to +19.7% vs. F’22) Guidance Assumptions: Organic sales growth in the mid-single digit percentages. Negative foreign currency impact of approximately 4%
Slide 13: Americas & Asia: Q3 F'23 vs. Q3 F'22
Americas & Asia 13 Q3 F’23 vs. Q3 F’22 (millions of USD) Q3 F’23 SUMMARY: • Revenues increased 0.1% in Q3 of F’23: Q3 F’23 Q3 F’22 Change • Organic growth = + 1.2%. Sales $ 222.8 $ 222.6 + 0.1% • Fx reduction = (0.8%). • Divestiture = (0.3%). Segment Profit 49.2 45.0 + 9.3% • Organic sales grew in t
Slide 14: Europe & Australia: Q3 F'23 vs. Q3 F'22
Europe & Australia 14 Q3 F’23 vs. Q3 F’22 (millions of USD) Q3 F’23 SUMMARY: Q3 F’23 Q3 F’22 Change • Revenues declined 1.4% in Q3 of F’23: • Organic growth = + 3.4%. Sales $ 114.3 $ 116.0 (1.4%) • Fx reduction = (4.8%). Segment Profit 17.1 16.1 + 6.5% • Organic sales grew in the low-single digits i
Slide 15: Investor Relations
15 Investor 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
Slide 17: Non-GAAP Reconciliations
Non-GAAP Reconciliations 17 GAAP to NON-GAAP MEASURES (Unaudited; Dollars in Thousands, Except Per Share Amounts) In accordance with the U.S. Securities and Exchange Commission’s Regulation G, the following provides definitions of the non-GAAP measures used in the earnings release and the reconcilia
Slide 18: Non-GAAP Reconciliations
Non-GAAP Reconciliations 18 GAAP to NON-GAAP MEASURES (Unaudited; Dollars in Thousands, Except Per Share Amounts) In accordance with the U.S. Securities and Exchange Commission’s Regulation G, the following provides definitions of the non-GAAP measures used in the earnings release and the reconcilia