Brady Corporation · NYSE:BRC
Brady — Q2 FY2024 Earnings Presentation
18 slides from Brady's earnings presentation, Feb 22, 2024
Slide 1: F'24 Q2 Financial Results
Brady Corporation F’24 Q2 Financial Results February 22, 2024
Slide 2: Forward-Looking Statements
Forward-Looking Statements 2 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: Q2 F'24 Highlights
Q2 F’24 Highlights 3 Organic Sales Growth Organic sales grew 1.6%, with organic growth in both regions. GPM of 50.2% compared to 48.0% in Q2 of F’23. Improved GPM Healthy gross profit margins demonstrate our high value-add. GAAP EPS of $0.90 was up 18.4% over Q2 of last year. Expanding Earnings Dilu
Slide 4: Sales Overview
Sales Overview 4 SALES (millions of USD) $350 $346 $339 $337 $332 $324 $326 $321 $323 $323 $325 $318 $306 $300 $296 $277 $275 $266 $250 $225 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 Q4 F'23 Q1 F'24 Q2 F'24 Organic Growth (4.9%) (6.3%) 6.5% 12.6% 7.0% 13
Slide 5: Gross Profit Margin
Gross Profit Margin 5 GROSS PROFIT & GPM% (millions of USD) $200 51.7% 52% 50.8% 50.4% 50.4% 50.3% 50.2% 50% 48.9% 48.7% 48.4% $176 48.2% 48.2% 48.1% 48.0% $172 $175 $170 47.0% 48% $164 $163 $162 $155 $155 $156 46% $149 $148 $149 $150 44% $135 $130 42% $125 40% $100 38% Q1 F'21 Q2 F'21 Q3 F'21 Q4 F'
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% 30.9% 30.7% 30.0% 30.6% 30.1% $110 29.1% 29.2% 29.0% 28.4% 27.9% 28.3% 28.2% 28.3% 30% 27.0% $100 $97 $96 $97 $96 $94 $95 25% $93 $92 $91 $91 $90 $91 $90 $83 $82 20% $80 15% $70 $60 10% Q1 F'21 Q2 F'21 Q3 F'21 Q4
Slide 7: R&D Expense
R&D Expense 7 R&D EXPENSE AND R&D EXPENSE AS A % OF SALES (millions of USD) $20.0 5.2% 5.5% 4.9% 4.7% 4.7% 4.7% 4.7% $18.0 4.4% 4.4% 4.3% $16.8 4.3% 4.3% $16.3 4.5% $16.0 $15.8 $15.7 $15.7 3.8% $15.4 3.7% 3.7% $14.9 $13.9 $14.0 $13.9 $14.0 $13.2 3.5% $12.0 $11.3 $10.2 2.5% $9.9 $10.0 $8.0 1.5% Q1 F'
Slide 8: Income Before Income Taxes
Income Before Income Taxes 8 INCOME BEFORE INCOME TAXES (GAAP) (millions of USD) $70 $63.0 $63.8 $59.4 $60 $55.8 $54.0 $51.3 $50.3 $47.8 $48.5 $50 $44.7 $42.2 $41.6 $42.0 $39.4 $40 $30 $20 $10 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 F'21 F'21 F'21 F'21 F'22 F'22 F'22 F'22 F'23 F'23 F'23 F'23 F'24
Slide 9: Net Income & Diluted EPS
Net Income & Diluted EPS 9 NET INCOME (GAAP) (millions of USD) DILUTED EPS (GAAP) $49.4 $1.00 $50 $48.1 $47.2 $1.00 $0.96 $0.97 $0.90 $43.6 $0.81 $0.79 $41.1 $0.78 $40.1 $39.4 $0.80 $0.76 $40 $37.3 $38.0 $0.71 $0.67 $0.65 $35.0 $0.64 $33.5 $33.8 $0.59 $0.60 $0.53 $30.9 $30 $28.0 $0.40 $20 $0.20 Q1 Q
Slide 10: Cash Generation
Cash Generation 10 CASH FLOW FROM OPERATING ACTIVITIES (millions of USD) $95 $79.3 $72.5 $70 $62.8 $62.3 CASH FLOWS IN Q2 OF F’24: $56.0 $53.2 $50.8 $40.9 Overview: $45 $36.1 $36.1 $27.5 $28.0 $29.4 Cash flow from operating activities was up 22.8% $20 in Q2 of F’24; increasing from $29.4M in Q2 of l
Slide 11: Net Cash
Net Cash 11 NET CASH (millions of USD) $322 $300 $278 $256 $250 $200 $150 $123 $109 $102 $91 $96 $100 $84 $64 $50 $26 $31 $19 $15 $0 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 Q4 F'23 Q1 F'24 Q2 F'24 STRONG BALANCE SHEET: January 31, 2024 cash = $143.9M.
Slide 12: F'24 Diluted EPS Guidance
F’24 Diluted EPS Guidance 12 GAAP Diluted EPS $3.80 to $3.95 (+8.3% to +12.5% vs. F’23) F’24 Diluted EPS, Excluding Certain Items* $3.95 to $4.10 (+8.5% to +12.6% vs. F’23) Guidance Assumptions: F’24 organic sales growth in the low-single digit percentages. The only difference between GAAP Diluted E
Slide 13: Americas & Asia
Americas & Asia 13 Q2 F’24 vs. Q2 F’23 (millions of USD) Q2 F’24 SUMMARY: • Revenues decreased 3.8% in Q2 of F’24: Q2 F’24 Q2 F’23 Change • Organic growth = + 1.2%. Sales $ 211.6 $ 220.1 (3.8%) • Fx increase = + 0.1%. • Divestiture = (5.1%). Segment Profit 43.9 40.2 + 9.3% • Organic sales grew 0.7%
Slide 14: Europe & Australia
Europe & Australia 14 Q2 F’24 vs. Q2 F’23 (millions of USD) Q2 F’24 SUMMARY: • Revenues increased 4.5% in Q2 of F’24: Q2 F’24 Q2 F’23 Change • Organic growth = + 2.5%. Sales $ 111.0 $ 106.2 + 4.5% • Fx increase = + 2.0%. • Organic sales grew 2.3% in Europe driven by growth Segment Profit 15.1 13.5 +
Slide 15: Investor Relations
Investor Relations 15 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