Brady Corporation · NYSE:BRC
Brady — Q2 FY2021 Earnings Presentation
16 slides from Brady's earnings presentation, Feb 18, 2021
Slide 1: Brady Corporation F'21 Q2 Financial Results
Brady Corporation F’21 Q2 Financial Results February 18, 2021
Slide 2: Forward-Looking Statements
Forward-Looking Statements 2 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: Managing Through the Pandemic
Managing Through the Pandemic 3 Managing Through the Pandemic: • Thank you to all of the Brady employees and front- line workers. • Brady’s products are helping in the fight of COVID- 19. Key Messages: • Workplace Safety is growing its customer base, but gross margins were impacted by mix. • ID Solu
Slide 4: Q2 F'21 Financial Summary
Q2 F’21 Financial Summary 4 • Sales were $265.8M in Q2 of F’21 compared with $276.7M in Q2 of F’20. – Organic sales declined 6.3%. – Foreign currency translation increased sales 2.4%. • Gross profit margin of 48.7% in Q2 of F’21 compared with 50.3% in Q2 of F’20. • SG&A expense of $82.2M (30.9% of s
Slide 5: Sales Overview
Sales Overview 5 SALES (millions of USD) $298 $297 $300 $293 $295 $290 $288 $290 $287 $282 $277 $277 $275 $266 $266 $252 $250 $225 $200 Q1 F'18 Q2 F'18 Q3 F'18 Q4 F'18 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 Organic Sales 1.7% 3.2% 3.2% 2.5% 4.7% 2.3% 2.4% 1.7
Slide 6: Gross Profit Margin
Gross Profit Margin 6 GROSS PROFIT & GPM% (millions of USD) 50.6% 50.3% 50.3% 50.3% 49.9% 50.0% 49.6% 49.5% 49.6% 50% $151 49.3% 48.7% 48.9% 48.7% $150 $146 $147 $147 $146 $147 $144 47.1% $140 $141 $139 $135 $130 $130 45% $125 $119 $100 40% Q1 F'18 Q2 F'18 Q3 F'18 Q4 F'18 Q1 F'19 Q2 F'19 Q3 F'19 Q4
Slide 7: SG&A Expense
SG&A Expense 7 SG&A EXPENSE AND SG&A EXPENSE AS A % of SALES (millions of USD) 34.5% 33.9% 34.1% 32.3% 32.8% 32.7% 35% $110 30.6% 31.6% 31.3% 30.9% 30.2% 31.2% 30.2% $102 30.0% $100 30% $100 $98 $95 $95 $93 $91 $90 $89 $90 $87 25% $83 $83 $82 $80 20% $76 $70 15% $60 10% Q1 F'18 Q2 F'18 Q3 F'18 Q4 F'
Slide 8: R&D Expense
R&D Expense 8 R&D EXPENSE AND R&D EXPENSE AS A % of SALES (millions of USD) $14.0 3.9% 3.9% 3.9% 3.9% 3.9% 4.0% 3.9% 3.8% 3.8% 3.8% 3.7% 3.7% 3.7% 3.7% 3.6% $12.0 $11.7 $11.7 $11.3 $11.3 $11.4 $11.3 $11.1 $11.0 $10.5 $10.5 3.5% $10.2 $9.8 $9.9 $10.0 $9.4 3.0% $8.0 $6.0 2.5% Q1 F'18 Q2 F'18 Q3 F'18 Q
Slide 9: Income Before Income Taxes
Income Before Income Taxes 9 INCOME BEFORE INCOME TAXES AND LOSSES OF UNCONSOLIDATED AFFILIATE (millions of USD) $50 $45.2 $47.1 $41.6 $42.4 $42.2 $39.9 $41.0 $39.4 $40 $37.0 $36.7 $34.8 $35.0 $34.9 $30 $22.2 $20 $10 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 F'18 F'18 F'18 F'18 F'19 F'19 F'19 F'19 F
Slide 10: Net Income & Diluted EPS
Net Income & Diluted EPS 10 NET INCOME PER CLASS A DILUTED SHARE NET INCOME (millions of USD) $0.66 $0.68 $0.70 $0.65 $0.64 $40 $0.62 $36.6 $37.5 $0.58 $0.59 $35.0 $34.8 $33.6 $33.5 $0.60 $0.55 $0.53 $30.9 $30.6 $29.2 $0.49 $0.49 $30 $25.8 $26.0 $27.7 $0.40 $20 $0.26 $13.6 $0.20 $10 $0.08 $4.3 $0.00
Slide 11: Cash Generation & Uses
Cash Generation & Uses 11 CASH FLOW FROM OPERATING ACTIVITIES (millions of USD) CASH FLOWS IN Q2 OF F’21: • Cash flow from operating activities was $36.1M $65.3 $62.8 in Q2 of F’21 compared to $14.3M in Q2 of F’20. $60 $53.8 $52.7 • Free cash flow* was $30.9M in Q2 of F’21 $46.8 $42.8 $45.1 compared
Slide 12: Net Cash
Net Cash 12 NET CASH (millions of USD) $350 $300 $278 $256 $245 $240 $250 $229 $218 $200 $188 $190 $151 $150 $138 $129 $100 $73 $48 $44 $50 $0 Q1 F'18 Q2 F'18 Q3 F'18 Q4 F'18 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 STRONG BALANCE SHEET: • January 31, 2021 cash
Slide 13: F'21 Diluted EPS Guidance
F’21 Diluted EPS Guidance 13 Diluted EPS Guidance for the Year Ending July 31, 2021 $2.48 to $2.58 Diluted EPS Guidance for the Second $1.25 to $1.35 Half of the Year Ending July 31, 2021 (compares to $0.79 in second half of F’20) Guidance Assumptions: • Continued economic improvement and the succes
Slide 14: Identification Solutions
Identification Solutions 14 Q2 F’21 vs. Q2 F’20 (millions of USD) Q2 F’21 SUMMARY: Q2 F’21 Q2 F’20 Change • Revenues declined - (5.4%): • Organic = - (6.9%). Sales $ 194.2 $ 205.4 - 5.4% • Fx = + 1.5%. Segment Profit 39.0 40.7 - 4.1% • Organic sales performed better in Asia than in North America and
Slide 15: Workplace Safety
Workplace Safety 15 Q2 F’21 vs. Q2 F’20 (millions of USD) Q2 F’21 SUMMARY: Q2 F’21 Q2 F’20 Change • Revenues increased + 0.4%: • Organic = - (4.8%). Sales $ 71.6 $ 71.3 + 0.4% • Fx = + 5.2%. Segment Profit 3.5 5.5 - 36.5% • Organic sales declined due to the North American business and Australia. Seg
Slide 16: Investor Relations
Investor Relations 16 Brady Contact: Ann Thornton Investor Relations 414-438-6887 Ann_Thornton@bradycorp.com See our web site at www.bradycorp.com/investors