Brady Corporation · NYSE:BRC
Brady — Q4 FY2022 Earnings Presentation
19 slides from Brady's earnings presentation, Sep 1, 2022
Slide 1: Brady Corporation F'22 Q4 Financial Results
Brady Corporation F’22 Q4 Financial Results September 1, 2022
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'22 Highlights
Q4 F’22 Highlights 3 Strong Sales Growth Organic sales grew 9.0%, with organic growth in both segments. GPM of 50.4% compared to 48.2% in Q4 of F’21. Improved GPM Expect margins to remain challenged due to ongoing inflation. GAAP EPS of $0.81 was up 52.8% over Q4 of last year. Record GAAP & Diluted
Slide 4: Sales Overview
Sales Overview 4 SALES (millions of USD) $350 $339 $321 $324 $325 $318 $306 $300 $293 $295 $296 $290 $287 $282 $277 $277 $275 $266 $266 $252 $250 $225 Q1 F'19 Q2 F'19 Q3 F'19 Q4 F'19 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 Organic Growth 4.7% 2
Slide 5: Gross Profit Margin
Gross Profit Margin 5 GROSS PROFIT & GPM% (millions of USD) 50.3% 50.3% 50.4% 50.4% 50.0% 49.5% 49.6% 49.3% 50% 48.7% 48.9% 48.7% 48.4% 48.2% 48.2% $175 47.1% 48% 47.0% $164 $163 $155 46% $149 $148 $149 $150 $147 $146 $147 $140 $141 $139 44% $135 $130 $130 42% $125 $119 40% $100 38% Q1 F'19 Q2 F'19
Slide 6: SG&A Expense
SG&A Expense 6 SG&A EXPENSE AND SG&A EXPENSE AS A % OF SALES (millions of USD) $120 32.8% 35% 32.3% 32.7% 31.2% 31.6% 31.3% 30.2% 30.9% 30.7% 30.2% 30.0% 30.6% 30.1% $110 29.1% 29.2% 28.4% 30% $100 $97 $96 $95 $95 $95 $93 $94 $93 25% $90 $91 $89 $90 $87 $83 $83 $82 20% $80 $76 15% $70 $60 10% Q1 F'1
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% $18.0 4.4% 4.3% 4.3% 4.4% 4.5% $16.0 $15.8 3.9% 3.9% 3.9% 3.8% 3.8% $14.9 3.8% 3.8% 3.7% 3.7% 3.7% 3.7% $13.9 $14.0 $14.0 $13.2 3.5% $12.0 $11.3 $11.1 $11.4 $11.3 $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) $54.0 $51.3 $50 $47.1 $47.8 $44.7 $41.0 $41.6 $42.4 $42.2 $41.6 $42.0 $39.9 $39.4 $40 $36.7 $34.9 $30 $22.2 $20 $10 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 F'19 F'19 F'19 F'19 F'20 F'20 F'20 F'20 F'21 F'21 F'21
Slide 9: Net Income & Diluted EPS
Net Income & Diluted EPS 9 NET INCOME (GAAP) (millions of USD) DILUTED EPS (GAAP) $0.81 $41.1 $0.78 $40.1 $0.80 $40 $37.5 $37.3 $0.70 $0.71 $35.0 $0.67 $0.65 $33.6 $33.5 $33.8 $0.62 $0.64 $30.9 $0.59 $30 $27.7 $28.0 $0.60 $0.53 $0.53 $20 $0.40 $13.6 $0.26 $10 $0.20 $0 $0.00 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q
Slide 10: Cash Generation and Uses
Cash Generation and Uses 10 CASH FLOW FROM OPERATING ACTIVITIES (millions of USD) $75 $62.8 $56.0 CASH FLOWS IN Q4 OF F’22: $50.8 $53.2 $55 $42.8 $45.1 $38.8 $40.9 Overview: $36.1 $35 $27.5 Cash flow from operating activities was $53.2M in Q4 of F’22 compared to $50.8M in Q4 of F’21. $14.3 $15 Free
Slide 11: Net Cash
Net Cash 11 NET CASH (millions of USD) $322 $300 $278 $256 $245 $240 $250 $229 $218 $200 $188 $190 $151 $150 $138 $109 $100 $91 $64 $50 $26 $19 $0 Q1 F'19 Q2 F'19 Q3 F'19 Q4 F'19 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 STRONG BALANCE SHEET: Jul
Slide 12: F'22 Financial Summary
F’22 Financial Summary 12 Year Ended July 31, 2022 2021 Change Sales $ 1,302.1 $ 1,144.7 13.7% Organic Sales Growth (Decline) 9.4% 1.6% Gross Margin 631.6 561.4 12.5% % of Sales 48.5% 49.0% Research and Development (58.5) (44.6) 31.4% Selling, General and Administrative (380.0) (349.8) 8.6% % of Sal
Slide 13: F'23 Diluted EPS Guidance
F’23 Diluted EPS Guidance 13 Diluted EPS Excluding Certain Items* $3.30 to $3.60 (+4.8% to +14.3% vs. F’22) GAAP Diluted EPS $3.13 to $3.43 (+7.9% to +18.3% vs. F’22) Guidance Assumptions: Organic sales growth in the mid-to-high single digit percentages. Negative foreign currency impact of approxima
Slide 14: Identification Solutions
Identification Solutions 14 Q4 F’22 vs. Q4 F’21 (millions of USD) Q4 F’22 SUMMARY: Q4 F’22 Q4 F’21 Change • Revenues increased 9.6%: • Organic growth = + 10.8%. Sales $ 253.2 $ 231.0 + 9.6% • Acquisition growth = + 3.3%. Segment Profit 50.2 42.4 + 18.4% • Fx reduction = (4.5%). • Strong organic sale
Slide 15: Workplace Safety
Workplace Safety 15 Q4 F’22 vs. Q4 F’21 (millions of USD) Q4 F’22 SUMMARY: Q4 F’22 Q4 F’21 Change • Revenues declined 5.7%: • Organic growth = + 3.3%. Sales $ 70.8 $ 75.1 - 5.7% • Fx reduction = (9.0%). Segment Profit 9.3 5.6 + 65.1% • Segment profit increased substantially as a result of our action
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
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