Slide 1: Brady Corporation F'15 Q2 Financial Results
February 19, 2015 Brady Corporation F’15 Q2 Financial Results
Slide 2: Forward-Looking Statements
2 Forward-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, p
Slide 3: Summary Comments
3 Summary Comments Significant 2nd Quarter Events: • Organic sales growth of 1.4%. • Non-GAAP earnings per share* growth of 16%. • Facility consolidation costs moderating with completion anticipated by the end of fiscal 2015. F’15 Priorities: • Facility Consolidations – Complete this process to opti
Slide 4: Q2 F'15 Financial Summary
4 Q2 F’15 Financial Summary • Sales down 2.9% to $282.6M vs. $291.2M in Q2 of F’14. – Organic sales growth of 1.4% while foreign currency decreased sales by 4.3%. • Gross profit margin of 48.9% in Q2 of F’15, consistent with Q2 of F’14 and up 50 basis points from Q1 of F’15. • SG&A expense of $107.6
Slide 5: F'15 Guidance – Continuing Operations
5 F’15 Guidance – Continuing Operations F’15 Diluted EPS from Continuing Operations $1.50 to $1.70 * (excluding restructuring charges and certain other items) Guidance Assumptions – Continuing Operations: • Exchange rates consistent with those as of February 18, 2015. • Increased investments in R&D,
Slide 6: Sales Overview
6 Sales Overview • 1.4% organic sales growth: • ID Solutions – Organic sales growth of 1.9%. • Workplace Safety – Organic sales growth of 0.6%. • 4.3% decrease due to currency translation. Q2 F’15 SALES: • Organic growth trends continue in both the IDS and WPS platforms. • The strengthening of the U
Slide 7: Gross Profit Margin & SG&A Expense
Gross Profit Margin & SG&A Expense 7 • GPM of 48.9% in Q2 of F’15 compared to 48.9% in Q2 of F’14 and 48.4% in Q1 of F’15. • Costs related to facility consolidation activities beginning to moderate. We expect these activities to be completed by July 31, 2015. GROSS PROFIT MARGIN: • SG&A expense was
Slide 8: Net Earnings & EPS From Continuing Operations–Non-GAAP
8 Net Earnings & EPS From Continuing Operations–Non-GAAP* * Non-GAAP Net Earnings from Continuing Operations and Non-GAAP Net Earnings from Continuing Operations Per Class A Diluted Nonvoting Share are non-GAAP measures. See appendix. • Q2 F’15 Non-GAAP net earnings from continuing operations* were
Slide 9: Cash Generation
9 Cash Generation • Cash flow from operating activities of $5.3M in Q2 of F’15. • Returned $10.3M to our shareholders in the form of dividends. CASH FLOWS IN Q2 OF F’15:
Slide 10: Net Debt & EBITDA
Net Debt & EBITDA 10 0.1 1.4 1.3 1.2 1.2 1.3 1.5 1.2 1.2 1.2 0.0x 0.5x 1.0x 1.5x Q3 F'12 Q4 F'12 Q1 F'13 Q2 F'13 Q3 F'13 Q4 F'13 Q1 F'14 Q2 F'14 Q3 F'14 Q4 F'14 Q1 F'15 Q2 F'15 NET DEBT / TTM EBITDA* • January 31, 2015 Cash = $93.3M, Debt = $277.1M (net debt = $183.8M), and TTM EBITDA (continuing op
Slide 11: Identification Solutions Performance
Q2 F’15 vs. Q2 F’14 PERFORMANCE (millions of USD) 11 Identification Solutions • Revenues down 1.4%: • Organic = +1.9% • Fx = -(3.3)% • Organic sales growth strongest in Wire ID and Safety & Facility ID product categories. • Increased product demand and a commitment to maintain quality and service le
Slide 12: Workplace Safety Performance
Q2 F’15 vs. Q2 F’14 PERFORMANCE (millions of USD) 12 Workplace Safety • Revenues down 6.1%: • Organic = +0.6%. • Fx = -(6.7)%. • Third consecutive quarter of organic growth driven by increased catalog advertising spend, selected price increases, and sales over the internet. • Strengthening of the US
Slide 13: Investor Relations
13 Investor Relations Brady Contact: Ann Thornton Investor Relations 414-438-6887 Ann_Thornton@Bradycorp.com See our web site at www.investor.bradycorp.com
Slide 14: Appendix
Appendix 14
Slide 15: Comparable Income Statements
COMPARABLE INCOME STATEMENTS (millions of USD) 15 Comparable Income Statements
Slide 16: Debt Structure
(‘000s of USD) 16 Debt Structure
Slide 17: EBITDA - Total Company
Brady is presenting EBITDA because it is used by many of our investors and lenders, and is presented as a convenience to them. EBITDA represents net earnings before interest expense, income taxes, depreciation, amortization and impairment charges. EBITDA is not a calculation based on generally accep
Slide 18: EBITDA - Continuing Operations
Brady is presenting EBITDA from Continuing Operations because it is used by many of our investors and lenders, and is presented as a convenience to them. EBITDA from Continuing Operations represents earnings from continuing operations before interest expense, income taxes, depreciation, amortization
Slide 19: Reconciliation of Non-GAAP Net Earnings
Brady is presenting the Non-GAAP measure "Net Earnings from Continuing Operations Excluding Certain Items." This is not a calculation based upon GAAP. The amounts included in this Non-GAAP measure are derived from amounts included in the Consolidated Financial Statements and supporting footnote disc
Slide 20: Reconciliation of Non-GAAP Net Earnings per Diluted Share
Brady is presenting the Non-GAAP measure "Net Earnings from Continuing Operations Per Diluted Class A Nonvoting Common Share Excluding Certain Items." This is not a calculation based upon GAAP. The amounts included in this Non-GAAP measure are derived from amounts included in the Consolidated Financ