Brady Corporation · NYSE:BRC
Brady — Q4 FY2023 Earnings Presentation
19 slides from Brady's earnings presentation, Sep 5, 2023
Slide 1: Brady Corporation F'23 Q4 Financial Results
Brady Corporation F’23 Q4 Financial Results September 5, 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: Q4 and Full-Year F'23 Highlights
Q4 F’23 Highlights 3 Strong Sales Growth Organic sales grew 6.9%, with organic growth in both regions. GPM of 50.8% compared to 50.4% in Q4 of F’22. Improved GPM Healthy gross profit margins indicative of Brady’s high value-add. GAAP EPS of $1.00 was up 23.5% over Q4 of last year. Record GAAP & Dilu
Slide 4: Sales Overview
Sales Overview 4 SALES (millions of USD) $350 $346 $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 Q4 F'23 Organic Growth (0.4%)
Slide 5: Gross Profit Margin
Gross Profit Margin 5 GROSS PROFIT & GPM% (millions of USD) 50.8% 50.3% 50.4% 50.4% 50.3% 49.3% $176 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
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% 28.2% 30% 27.0% $100 $97 $96 $97 $94 $95 25% $93 $92 $90 $91 $90 $91 $90 $87 $83 $83 $82 20% $80 $76 15% $70 $60 10% Q1 F'2
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% 4.7% $18.0 4.7% 4.4% 4.3% 4.3% 4.3% 4.4% $16.3 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 $
Slide 8: Income Before Income Taxes
Income Before Income Taxes 8 INCOME BEFORE INCOME TAXES (GAAP) (millions of USD) $70 $63.8 $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 Q4 F'20 F'20 F'20 F'20 F'21 F'21 F'21 F'21 F'22 F'
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 $1.00 $0.96 $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 $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 Q
Slide 10: Cash Generation
Cash Generation 10 CASH FLOW FROM OPERATING ACTIVITIES (millions of USD) $79.3 $75 $72.5 $62.8 $56.0 $50.8 $53.2 CASH FLOWS IN Q4 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 49.0% $14.3 in Q4 of F’23; increasing from $53.2M in
Slide 11: Net Cash
Net Cash 11 NET CASH (millions of USD) $322 $300 $278 $256 $245 $240 $250 $218 $200 $190 $150 $109 $102 $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 Q4 F'23 STRONG BALANCE SHEET: July 3
Slide 12: F'23 Financial Summary
F’23 Financial Summary 12 Year Ended July 31, (millions of USD) 2023 2022 Change Sales $ 1,331.9 $ 1,302.1 2.3% Organic Sales Growth 5.5% 9.4% Gross Margin 657.3 631.6 4.1% % of Sales 49.4% 48.5% Research and Development (61.4) (58.5) 4.8% Selling, General and Administrative (370.7) (380.0) (2.4%) %
Slide 13: F'24 Diluted EPS Guidance
F’24 Diluted EPS Guidance 13 GAAP Diluted EPS $3.70 to $3.95 (+5.4% to +12.5% vs. F’23) F’24 Diluted EPS, Excluding Certain Items* $3.85 to $4.10 (+5.8% to +12.6% vs. F’23) Guidance Assumptions: F’24 organic sales growth in the mid-single digit percentages. The only difference between GAAP Diluted E
Slide 14: Americas & Asia: Q4 F'23 vs. Q4 F'22
Americas & Asia 14 Q4 F’23 vs. Q4 F’22 (millions of USD) Q4 F’23 SUMMARY: • Revenues increased 4.4% in Q4 of F’23: Q4 F’23 Q4 F’22 Change • Organic growth = + 5.6%. Sales $ 227.5 $ 217.8 + 4.4% • Fx reduction = (0.2%). • Divestiture = (1.0%). Segment Profit 50.0 42.6 + 17.2% • Organic sales grew 7.5
Slide 15: Europe & Australia: Q4 F'23 vs. Q4 F'22
Europe & Australia 15 Q4 F’23 vs. Q4 F’22 (millions of USD) Q4 F’23 SUMMARY: Q4 F’23 Q4 F’22 Change • Revenues increased 11.5% in Q4 of F’23: • Organic growth = + 9.5%. Sales $ 118.4 $ 106.2 + 11.5% • Fx increase = + 2.0%. Segment Profit 18.4 16.9 + 9.1% • Organic sales grew 9.0% in Europe driven by
Slide 16: Investor Relations
16 Investor Relations Brady Contact: Ann Thornton Investor Relations 414-438-6887 Ann_Thornton@bradycorp.com See our website at www.bradycorp.com/investors
Slide 17: Appendix: GAAP to Non-GAAP Reconciliations
Appendix GAAP to Non-GAAP Reconciliations
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
Slide 19: Non-GAAP Reconciliations
Non-GAAP Reconciliations 19 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