Brady Corporation (NYSE: BRC) (“Brady” or “Company”), a world leader in
identification solutions, today reported its financial results for its
fiscal 2015 second quarter ended January 31, 2015.
Quarter Ended January 31, 2015 Financial Results:
Sales for the quarter ended January 31, 2015 decreased 2.9 percent to
$282.6 million compared to $291.2 million in the second quarter of
fiscal 2014. Total organic sales increased 1.4 percent and foreign
currency translation decreased sales by 4.3 percent. By segment, organic
sales increased 1.9 percent in Identification Solutions and 0.6 percent
in Workplace Safety.
Earnings from continuing operations for the quarter ended January 31,
2015 were $11.6 million compared to $10.5 million in the prior year
quarter. Non-GAAP net earnings from continuing operations* for the
current quarter were $15.0 million compared to $13.4 million in the same
quarter last year.
Net earnings from continuing operations per Class A Nonvoting Common
Share were $0.23 for the quarter ended January 31, 2015 compared to
$0.20 in the same quarter last year. Non-GAAP earnings from continuing
operations per diluted Class A Nonvoting Common Share* were $0.29 in the
second quarter of fiscal 2015 compared to $0.25 per share in the second
quarter of fiscal 2014.
Six-Month Period Ended January 31, 2015 Financial Results:
Sales for the six-month period ended January 31, 2015 decreased 1.0
percent to $592.9 million compared to $598.7 million in the same period
in fiscal 2014. Organic sales increased 1.9 percent and the impact of
foreign currency translation decreased sales by 2.9 percent. By segment,
organic sales increased 2.1 percent in Identification Solutions and 1.5
percent in Workplace Safety.
Earnings from continuing operations for the six-month period ended
January 31, 2015 were $27.1 million compared to $28.7 million in the
same period in fiscal 2014. Non-GAAP net earnings from continuing
operations* for the six-month period were $33.5 million compared to
$36.2 million in the same period in fiscal 2014.
Net earnings from continuing operations per Class A Nonvoting Common
share were $0.53 for the six-month period ended January 31, 2015
compared to $0.55 in the same period in fiscal 2014. Non-GAAP earnings
from continuing operations per diluted Class A Common Share* were $0.65
in the six-month period ended January 31, 2015 compared to $0.69 in the
same period in fiscal 2014.
Commentary:
“This marks the fourth consecutive quarter of organic sales growth for
Brady Corporation and the third consecutive quarter of organic sales
growth in our Workplace Safety business. Our gross profit margin is also
stabilizing as we near completion of our facility consolidation
activities. Our gross profit margin finished at 48.9 percent, which is a
50 basis point improvement over the first quarter of fiscal 2015,” said
Brady President and Chief Executive Officer, J. Michael Nauman.
“Although our profitability was impacted by costs related to the
consolidation of our manufacturing facilities, the level of incremental
costs is moderating and we expect completion of these activities by the
end of fiscal 2015. We are focused on executing business fundamentals to
drive organic sales growth and improve profitability while investing in
research and development and sales resources in selected industries, as
well as building an enhanced, scalable digital platform that will
generate value for Brady and its customers.”
“Along with our stabilizing gross profit margins, we are also seeing
benefits from our focus on controlling selling, general, and
administrative expenses, which should aid in continuing our trend of
improving financial results,” said Brady’s Chief Financial Officer,
Aaron Pearce. “As we look to the second half of fiscal 2015, we also
anticipate free cash flow to improve as we systematically reduce our
inventory levels, moderate our capital expenditures and increase
profitability.”
Fiscal 2015 Guidance:
The Company anticipates low single-digit organic sales growth in fiscal
2015, with organic sales growth in both the Identification Solutions and
Workplace Safety platforms. Brady also expects a full-year income tax
rate in the mid-to-upper 20 percent range, approximately $15 million of
restructuring charges, $40 million of depreciation and amortization
expense and capital expenditures of approximately $35 million in fiscal
2015.
Earnings from continuing operations per diluted Class A Nonvoting Common
Share, exclusive of restructuring charges and other non-routine charges
guidance remains unchanged at $1.50 to $1.70. However, due to the
strengthening of the US dollar against other major currencies, the
Company anticipates that its full-year fiscal 2015 results will finish
at the low end of this range. This guidance is based on current exchange
rates.
A webcast regarding Brady’s fiscal 2015 second quarter financial results
will be available at www.bradycorp.com
beginning at 9:30 a.m. Central Time today.
Brady Corporation is an international manufacturer and marketer of
complete solutions that identify and protect people, products and
places. Brady’s products help customers increase safety, security,
productivity and performance and include high-performance labels, signs,
safety devices, printing systems and software. Founded in 1914, the
Company has a diverse customer base in electronics, telecommunications,
manufacturing, electrical, construction, medical, aerospace and a
variety of other industries. Brady is headquartered in Milwaukee,
Wisconsin and as of August 1, 2014, employed approximately 6,400 people
in its worldwide businesses. Brady’s fiscal 2014 sales were
approximately $1.23 billion. Brady stock trades on the New York Stock
Exchange under the symbol BRC. More information is available on the
Internet at www.bradycorp.com.
* See accompanying notes for Non-GAAP measures.
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, projected sales,
costs, earnings, capital expenditures, debt levels and cash flows, and
plans and objectives of management for future operations.
The use of words such as “may,” “will,” “expect,” “intend,” “estimate,”
“anticipate,” “believe,” “should,” “project” or “plan” or similar
terminology are generally intended to identify forward-looking
statements. These forward-looking statements by their nature address
matters that are, to different degrees, uncertain and are subject to
risks, assumptions, and other factors, some of which are beyond Brady's
control, that could cause actual results to differ materially from those
expressed or implied by such forward-looking statements. For Brady,
uncertainties arise from: implementation of the healthcare strategy;
implementation of the Workplace Safety strategy; future competition;
risks associated with restructuring plans; future financial performance
of major markets Brady serves, which include, without limitation,
telecommunications, hard disk drive, manufacturing, electrical,
construction, laboratory, education, governmental, public utility,
computer, healthcare and transportation; technology changes and
potential security violations to the Company's information technology
system; fluctuations in currency rates versus the U.S. dollar; risks
associated with international operations; difficulties associated with
exports; Brady's ability to develop and successfully market new
products; risks associated with identifying, completing, and integrating
acquisitions; changes in the supply of, or price for, parts and
components; increased price pressure from suppliers and customers;
Brady's ability to retain significant contracts and customers; risk
associated with loss of key talent; risks associated with divestitures
and businesses held for sale; risks associated with obtaining
governmental approvals and maintaining regulatory compliance; risk
associated with product liability claims; environmental, health and
safety compliance costs and liabilities; potential write-offs of Brady's
substantial intangible assets; risks associated with our ownership
structure; unforeseen tax consequences; Brady's ability to maintain
compliance with its debt covenants; increase in our level of debt; and
numerous other matters of national, regional and global scale, including
those of a political, economic, business, competitive, and regulatory
nature contained from time to time in Brady's U.S. Securities and
Exchange Commission filings, including, but not limited to, those
factors listed in the “Risk Factors” section within Item 1A of Part I of
Brady’s Form 10-K for the year ended July 31, 2014.
These uncertainties may cause Brady's actual future results to be
materially different than those expressed in its forward-looking
statements. Brady does not undertake to update its forward-looking
statements except as required by law.
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BRADY CORPORATION AND SUBSIDIARIES
|
CONSOLIDATED STATEMENTS OF EARNINGS
|
(Unaudited; Dollars in thousands, except per share data)
|
|
|
|
|
|
|
|
|
|
|
|
Three months ended January 31,
|
|
Six months ended January 31,
|
|
|
2015
|
|
2014
|
|
2015
|
|
2014
|
Net sales
|
|
$
|
282,628
|
|
|
$
|
291,194
|
|
|
$
|
592,868
|
|
|
$
|
598,724
|
|
Cost of products sold
|
|
|
144,425
|
|
|
|
148,658
|
|
|
|
304,503
|
|
|
|
298,341
|
|
Gross margin
|
|
|
138,203
|
|
|
|
142,536
|
|
|
|
288,365
|
|
|
|
300,383
|
|
Operating expenses:
|
|
|
|
|
|
|
|
|
Research and development
|
|
|
8,948
|
|
|
|
8,440
|
|
|
|
18,579
|
|
|
|
17,027
|
|
Selling, general and administrative
|
|
|
107,565
|
|
|
|
111,426
|
|
|
|
216,846
|
|
|
|
224,159
|
|
Restructuring charges
|
|
|
4,879
|
|
|
|
4,324
|
|
|
|
9,157
|
|
|
|
11,163
|
|
Total operating expenses
|
|
|
121,392
|
|
|
|
124,190
|
|
|
|
244,582
|
|
|
|
252,349
|
|
|
|
|
|
|
|
|
|
|
Operating income
|
|
|
16,811
|
|
|
|
18,346
|
|
|
|
43,783
|
|
|
|
48,034
|
|
|
|
|
|
|
|
|
|
|
Other income and (expense):
|
|
|
|
|
|
|
|
|
Investment and other income
|
|
|
211
|
|
|
|
255
|
|
|
|
535
|
|
|
|
1,017
|
|
Interest expense
|
|
|
(3,000
|
)
|
|
|
(3,676
|
)
|
|
|
(5,891
|
)
|
|
|
(7,397
|
)
|
|
|
|
|
|
|
|
|
|
Earnings from continuing operations before income taxes
|
|
|
14,022
|
|
|
|
14,925
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|
|
|
38,427
|
|
|
|
41,654
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|
|
|
|
|
|
|
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Income tax expense
|
|
|
2,438
|
|
|
|
4,408
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|
|
|
11,344
|
|
|
|
13,002
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|
|
|
|
|
|
|
|
|
|
Earnings from continuing operations
|
|
$
|
11,584
|
|
|
$
|
10,517
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|
|
$
|
27,083
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|
|
$
|
28,652
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|
|
|
|
|
|
|
|
|
|
Earnings (loss) from discontinued operations, net of income taxes
|
|
|
—
|
|
|
|
5,907
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|
|
|
(1,915
|
)
|
|
|
11,701
|
|
|
|
|
|
|
|
|
|
|
Net earnings
|
|
$
|
11,584
|
|
|
$
|
16,424
|
|
|
$
|
25,168
|
|
|
$
|
40,353
|
|
|
|
|
|
|
|
|
|
|
Earnings from continuing operations per Class A Nonvoting Common
Share:
|
|
|
|
|
|
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Basic
|
|
$
|
0.23
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|
|
$
|
0.20
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|
|
$
|
0.53
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|
|
$
|
0.55
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Diluted
|
|
$
|
0.23
|
|
|
$
|
0.20
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|
|
$
|
0.53
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|
|
$
|
0.55
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|
|
|
|
|
|
|
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|
|
Earnings from continuing operations per Class B Voting Common Share:
|
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|
|
|
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|
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Basic
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|
$
|
0.23
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|
|
$
|
0.20
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|
|
$
|
0.51
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|
|
$
|
0.53
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|
Diluted
|
|
$
|
0.23
|
|
|
$
|
0.20
|
|
|
$
|
0.51
|
|
|
$
|
0.53
|
|
|
|
|
|
|
|
|
|
|
Earnings (loss) from discontinued operations per Class A Nonvoting
Common Share:
|
|
|
|
|
|
|
|
|
Basic
|
|
$
|
—
|
|
|
$
|
0.11
|
|
|
$
|
(0.04
|
)
|
|
$
|
0.22
|
|
Diluted
|
|
$
|
—
|
|
|
$
|
0.11
|
|
|
$
|
(0.04
|
)
|
|
$
|
0.22
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|
|
|
|
|
|
|
|
|
|
Earnings (loss) from discontinued operations per Class B Voting
Common Share:
|
|
|
|
|
|
|
|
|
Basic
|
|
$
|
—
|
|
|
$
|
0.11
|
|
|
$
|
(0.03
|
)
|
|
$
|
0.23
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|
Diluted
|
|
$
|
—
|
|
|
$
|
0.11
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|
|
$
|
(0.04
|
)
|
|
$
|
0.22
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|
|
|
|
|
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|
Net earnings per Class A Nonvoting Common Share:
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|
|
|
|
|
|
|
Basic
|
|
$
|
0.23
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|
|
$
|
0.31
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|
|
$
|
0.49
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|
|
$
|
0.77
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Diluted
|
|
$
|
0.23
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|
|
$
|
0.31
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|
|
$
|
0.49
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|
|
$
|
0.77
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Dividends
|
|
$
|
0.20
|
|
|
$
|
0.195
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|
|
$
|
0.40
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|
|
$
|
0.39
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|
|
|
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|
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Net earnings per Class B Voting Common Share:
|
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|
|
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Basic
|
|
$
|
0.23
|
|
|
$
|
0.31
|
|
|
$
|
0.48
|
|
|
$
|
0.76
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|
Diluted
|
|
$
|
0.23
|
|
|
$
|
0.31
|
|
|
$
|
0.47
|
|
|
$
|
0.75
|
|
Dividends
|
|
$
|
0.20
|
|
|
$
|
0.195
|
|
|
$
|
0.383
|
|
|
$
|
0.373
|
|
|
|
|
|
|
|
|
|
|
Weighted average common shares outstanding (in thousands):
|
|
|
|
|
|
|
|
|
Basic
|
|
|
51,272
|
|
|
|
52,208
|
|
|
|
51,262
|
|
|
|
52,140
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|
Diluted
|
|
|
51,348
|
|
|
|
52,494
|
|
|
|
51,330
|
|
|
|
52,457
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|
|
|
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|
BRADY CORPORATION AND SUBSIDIARIES
|
CONSOLIDATED BALANCE SHEETS
|
(Unaudited; Dollars in thousands)
|
|
|
|
|
|
|
|
January 31, 2015
|
|
July 31, 2014
|
ASSETS
|
|
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Current assets:
|
|
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Cash and cash equivalents
|
|
$
|
93,299
|
|
|
$
|
81,834
|
|
Accounts receivable—net
|
|
|
151,426
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|
|
|
177,648
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|
Inventories:
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|
Finished products
|
|
|
70,974
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|
|
|
73,096
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|
Work-in-process
|
|
|
19,315
|
|
|
|
17,689
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|
Raw materials and supplies
|
|
|
26,649
|
|
|
|
22,490
|
|
Total inventories
|
|
|
116,938
|
|
|
|
113,275
|
|
Assets held for sale
|
|
|
—
|
|
|
|
49,542
|
|
Prepaid expenses and other current assets
|
|
|
43,953
|
|
|
|
41,543
|
|
Total current assets
|
|
|
405,616
|
|
|
|
463,842
|
|
Other assets:
|
|
|
|
|
Goodwill
|
|
|
478,991
|
|
|
|
515,004
|
|
Other intangible assets
|
|
|
81,526
|
|
|
|
91,014
|
|
Deferred income taxes
|
|
|
19,293
|
|
|
|
27,320
|
|
Other
|
|
|
20,775
|
|
|
|
22,314
|
|
Property, plant and equipment:
|
|
|
|
|
Cost:
|
|
|
|
|
Land
|
|
|
5,924
|
|
|
|
7,875
|
|
Buildings and improvements
|
|
|
97,729
|
|
|
|
101,866
|
|
Machinery and equipment
|
|
|
283,773
|
|
|
|
288,409
|
|
Construction in progress
|
|
|
8,508
|
|
|
|
12,500
|
|
|
|
|
395,934
|
|
|
|
410,650
|
|
Less accumulated depreciation
|
|
|
266,680
|
|
|
|
276,479
|
|
Property, plant and equipment—net
|
|
|
129,254
|
|
|
|
134,171
|
|
Total
|
|
$
|
1,135,455
|
|
|
$
|
1,253,665
|
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LIABILITIES AND STOCKHOLDERS’ INVESTMENT
|
|
|
|
|
Current liabilities:
|
|
|
|
|
Notes payable
|
|
$
|
90,850
|
|
|
$
|
61,422
|
|
Accounts payable
|
|
|
74,154
|
|
|
|
88,099
|
|
Wages and amounts withheld from employees
|
|
|
32,535
|
|
|
|
38,064
|
|
Liabilities held for sale
|
|
|
—
|
|
|
|
10,640
|
|
Taxes, other than income taxes
|
|
|
5,928
|
|
|
|
7,994
|
|
Accrued income taxes
|
|
|
1,549
|
|
|
|
7,893
|
|
Other current liabilities
|
|
|
32,935
|
|
|
|
35,319
|
|
Current maturities on long-term debt
|
|
|
42,514
|
|
|
|
42,514
|
|
Total current liabilities
|
|
|
280,465
|
|
|
|
291,945
|
|
Long-term obligations, less current maturities
|
|
|
143,778
|
|
|
|
159,296
|
|
Other liabilities
|
|
|
65,652
|
|
|
|
69,348
|
|
Total liabilities
|
|
|
489,895
|
|
|
|
520,589
|
|
Stockholders’ investment:
|
|
|
|
|
Common stock:
|
|
|
|
|
Class A nonvoting common stock—Issued 51,261,487 and 51,261,487
shares, respectively and outstanding 47,748,984 and 47,704,196
shares, respectively
|
|
|
513
|
|
|
|
513
|
|
Class B voting common stock—Issued and outstanding, 3,538,628 shares
|
|
|
35
|
|
|
|
35
|
|
Additional paid-in capital
|
|
|
312,819
|
|
|
|
311,811
|
|
Earnings retained in the business
|
|
|
456,777
|
|
|
|
452,057
|
|
Treasury stock—3,512,503 and 3,477,291 shares, respectively of Class
A nonvoting
common stock, at cost
|
|
|
(94,089
|
)
|
|
|
(93,337
|
)
|
Accumulated other comprehensive (loss) income
|
|
|
(27,569
|
)
|
|
|
64,156
|
|
Other
|
|
|
(2,926
|
)
|
|
|
(2,159
|
)
|
Total stockholders’ investment
|
|
|
645,560
|
|
|
|
733,076
|
|
Total
|
|
$
|
1,135,455
|
|
|
$
|
1,253,665
|
|
|
|
|
|
|
BRADY CORPORATION AND SUBSIDIARIES
|
CONSOLIDATED STATEMENTS OF CASH FLOWS
|
(Unaudited; Dollars in thousands)
|
|
|
|
|
|
|
|
Six months ended January 31,
|
|
|
2015
|
|
2014
|
Operating activities:
|
|
|
|
|
Net earnings
|
|
$
|
25,168
|
|
|
$
|
40,353
|
|
Adjustments to reconcile net income to net cash provided by
operating activities:
|
|
|
|
|
Depreciation and amortization
|
|
|
20,066
|
|
|
|
22,342
|
|
Non-cash portion of stock-based compensation expense
|
|
|
2,471
|
|
|
|
4,377
|
|
Non-cash portion of restructuring charges
|
|
|
896
|
|
|
|
97
|
|
Loss on sale of business, net
|
|
|
426
|
|
|
|
—
|
|
Deferred income taxes
|
|
|
(781
|
)
|
|
|
(2,402
|
)
|
Changes in operating assets and liabilities (net of effects of
business acquisitions/divestitures):
|
|
|
|
|
Accounts receivable
|
|
|
10,918
|
|
|
|
(1,418
|
)
|
Inventories
|
|
|
(10,840
|
)
|
|
|
(8,754
|
)
|
Prepaid expenses and other assets
|
|
|
(3,053
|
)
|
|
|
(3,505
|
)
|
Accounts payable and accrued liabilities
|
|
|
(15,423
|
)
|
|
|
(7,263
|
)
|
Income taxes
|
|
|
(5,918
|
)
|
|
|
(2,050
|
)
|
Net cash provided by operating activities
|
|
|
23,930
|
|
|
|
41,777
|
|
|
|
|
|
|
Investing activities:
|
|
|
|
|
Purchases of property, plant and equipment
|
|
|
(17,808
|
)
|
|
|
(17,607
|
)
|
Sale of business, net of cash retained
|
|
|
6,111
|
|
|
|
—
|
|
Other
|
|
|
4,173
|
|
|
|
89
|
|
Net cash used in investing activities
|
|
|
(7,524
|
)
|
|
|
(17,518
|
)
|
|
|
|
|
|
Financing activities:
|
|
|
|
|
Payment of dividends
|
|
|
(20,449
|
)
|
|
|
(20,370
|
)
|
Proceeds from issuance of common stock
|
|
|
847
|
|
|
|
10,894
|
|
Proceeds from borrowing on notes payable
|
|
|
47,818
|
|
|
|
3,187
|
|
Repayment of borrowing on notes payable
|
|
|
(18,390
|
)
|
|
|
(30,000
|
)
|
Income tax on the exercise of stock options and deferred
compensation distributions, and other
|
|
|
(3,830
|
)
|
|
|
(984
|
)
|
Net cash provided by (used in) financing activities
|
|
|
5,996
|
|
|
|
(37,273
|
)
|
|
|
|
|
|
Effect of exchange rate changes on cash
|
|
|
(10,937
|
)
|
|
|
1,072
|
|
|
|
|
|
|
Net increase (decrease) in cash and cash equivalents
|
|
|
11,465
|
|
|
|
(11,942
|
)
|
Cash and cash equivalents, beginning of period
|
|
|
81,834
|
|
|
|
91,058
|
|
|
|
|
|
|
Cash and cash equivalents, end of period
|
|
$
|
93,299
|
|
|
$
|
79,116
|
|
|
|
|
|
|
Supplemental disclosures:
|
|
|
|
|
Cash paid during the period for:
|
|
|
|
|
Interest
|
|
$
|
6,146
|
|
|
$
|
7,283
|
|
Income taxes, net of refunds
|
|
|
15,727
|
|
|
|
14,083
|
|
|
|
|
|
|
|
|
|
|
BRADY CORPORATION AND SUBSIDIARIES
|
SEGMENT INFORMATION
|
(Unaudited; Dollars in thousands)
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended January 31,
|
|
Six Months Ended January 31,
|
|
|
2015
|
|
2014
|
|
2015
|
|
2014
|
SALES TO EXTERNAL CUSTOMERS
|
|
|
|
|
|
|
|
|
ID Solutions
|
|
$
|
192,065
|
|
|
$
|
194,732
|
|
|
$
|
404,162
|
|
|
$
|
404,278
|
|
Workplace Safety
|
|
|
90,563
|
|
|
|
96,462
|
|
|
|
188,706
|
|
|
|
194,446
|
|
Total
|
|
$
|
282,628
|
|
|
$
|
291,194
|
|
|
$
|
592,868
|
|
|
$
|
598,724
|
|
|
|
|
|
|
|
|
|
|
SALES INFORMATION
|
|
|
|
|
|
|
|
|
ID Solutions
|
|
|
|
|
|
|
|
|
Organic
|
|
|
1.9
|
%
|
|
|
2.5
|
%
|
|
|
2.1
|
%
|
|
|
2.9
|
%
|
Currency
|
|
|
(3.3
|
)%
|
|
|
(0.5
|
)%
|
|
|
(2.1
|
)%
|
|
|
(0.4
|
)%
|
Acquisitions
|
|
|
—
|
%
|
|
|
13.8
|
%
|
|
|
—
|
%
|
|
|
19.8
|
%
|
Total
|
|
|
(1.4
|
)%
|
|
|
15.8
|
%
|
|
|
—
|
%
|
|
|
22.3
|
%
|
Workplace Safety
|
|
|
|
|
|
|
|
|
Organic
|
|
|
0.6
|
%
|
|
|
(6.8
|
)%
|
|
|
1.5
|
%
|
|
|
(8.4
|
)%
|
Currency
|
|
|
(6.7
|
)%
|
|
|
(0.9
|
)%
|
|
|
(4.5
|
)%
|
|
|
(0.8
|
)%
|
Acquisitions
|
|
|
—
|
%
|
|
|
—
|
%
|
|
|
—
|
%
|
|
|
—
|
%
|
Total
|
|
|
(6.1
|
)%
|
|
|
(7.7
|
)%
|
|
|
(3.0
|
)%
|
|
|
(9.2
|
)%
|
Total Company
|
|
|
|
|
|
|
|
|
Organic
|
|
|
1.4
|
%
|
|
|
(1.1
|
)%
|
|
|
1.9
|
%
|
|
|
(1.6
|
)%
|
Currency
|
|
|
(4.3
|
)%
|
|
|
(0.6
|
)%
|
|
|
(2.9
|
)%
|
|
|
(0.5
|
)%
|
Acquisitions
|
|
|
—
|
%
|
|
|
8.5
|
%
|
|
|
—
|
%
|
|
|
12.0
|
%
|
Total
|
|
|
(2.9
|
)%
|
|
|
6.8
|
%
|
|
|
(1.0
|
)%
|
|
|
9.9
|
%
|
|
|
|
|
|
|
|
|
|
SEGMENT PROFIT
|
|
|
|
|
|
|
|
|
ID Solutions
|
|
$
|
35,719
|
|
|
$
|
37,526
|
|
|
$
|
79,186
|
|
|
$
|
88,493
|
|
Workplace Safety
|
|
|
12,776
|
|
|
|
14,668
|
|
|
|
28,315
|
|
|
|
33,042
|
|
Total
|
|
$
|
48,495
|
|
|
$
|
52,194
|
|
|
$
|
107,501
|
|
|
$
|
121,535
|
|
SEGMENT PROFIT AS A PERCENT OF SALES
|
|
|
|
|
|
|
|
|
ID Solutions
|
|
|
18.6
|
%
|
|
|
19.3
|
%
|
|
|
19.6
|
%
|
|
|
21.9
|
%
|
Workplace Safety
|
|
|
14.1
|
%
|
|
|
15.2
|
%
|
|
|
15.0
|
%
|
|
|
17.0
|
%
|
Total
|
|
|
17.2
|
%
|
|
|
17.9
|
%
|
|
|
18.1
|
%
|
|
|
20.3
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended January 31,
|
|
Six Months Ended January 31,
|
|
|
2015
|
|
2014
|
|
2015
|
|
2014
|
Total segment profit
|
|
$
|
48,495
|
|
|
$
|
52,194
|
|
|
$
|
107,501
|
|
|
$
|
121,535
|
|
Unallocated amounts:
|
|
|
|
|
|
|
|
|
Administrative costs
|
|
|
(26,805
|
)
|
|
|
(29,524
|
)
|
|
|
(54,561
|
)
|
|
|
(62,338
|
)
|
Restructuring charges
|
|
|
(4,879
|
)
|
|
|
(4,324
|
)
|
|
|
(9,157
|
)
|
|
|
(11,163
|
)
|
Investment and other income
|
|
|
211
|
|
|
|
255
|
|
|
|
535
|
|
|
|
1,017
|
|
Interest expense
|
|
|
(3,000
|
)
|
|
|
(3,676
|
)
|
|
|
(5,891
|
)
|
|
|
(7,397
|
)
|
Earnings from continuing operations before income taxes
|
|
$
|
14,022
|
|
|
$
|
14,925
|
|
|
$
|
38,427
|
|
|
$
|
41,654
|
|
|
|
|
|
|
|
|
|
|
|
|
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 reconciliation to the
most closely related GAAP measure.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings from Continuing Operations Before Income Taxes Excluding
Certain Items:
|
Brady is presenting the Non-GAAP measure "Earnings from Continuing
Operations Before Income Taxes 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 disclosures. We do not
view these items to be part of our sustainable results. We believe
this profit measure provides an important perspective of underlying
business trends and results and provides a more comparable measure
from year to year. The table below provides a reconciliation of
Earnings from Continuing Operations Before Income Taxes to Earnings
from Continuing Operations Before Income Taxes Excluding Certain
Items:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended January 31,
|
|
Six Months Ended January 31,
|
|
|
|
|
|
|
2015
|
|
2014
|
|
2015
|
|
2014
|
Earnings from Continuing Operations Before Income Taxes (GAAP
measure)
|
|
|
|
$
|
14,022
|
|
$
|
14,925
|
|
$
|
38,427
|
|
$
|
41,654
|
|
Restructuring charges
|
|
|
|
|
4,879
|
|
|
4,324
|
|
|
9,157
|
|
|
11,163
|
|
|
|
|
|
|
|
|
|
|
|
Earnings from Continuing Operations Before Income Taxes
Excluding Certain Items (non-GAAP measure)
|
|
|
|
$
|
18,901
|
|
$
|
19,249
|
|
$
|
47,584
|
|
$
|
52,817
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income Taxes on Continuing Operations Excluding Certain Items:
|
Brady is presenting the Non-GAAP measure "Income Taxes on 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 disclosures. We do not view these items to be
part of our sustainable results. We believe this measure provides an
important perspective of underlying business trends and results and
provides a more comparable measure from year to year. The table
below provides a reconciliation of Income Taxes on Continuing
Operations to Income Taxes on Continuing Operations Excluding
Certain Items:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended January 31,
|
|
Six Months Ended January 31,
|
|
|
|
|
|
|
2015
|
|
2014
|
|
2015
|
|
2014
|
Income Taxes on Continuing Operations (GAAP measure)
|
|
|
|
$
|
2,438
|
|
$
|
4,408
|
|
$
|
11,344
|
|
$
|
13,002
|
|
Restructuring charges
|
|
|
|
|
1,434
|
|
|
1,481
|
|
|
2,770
|
|
|
3,611
|
|
|
|
|
|
|
|
|
|
|
|
Income Taxes on Continuing Operations Excluding Certain Items
(non-GAAP measure)
|
|
|
|
$
|
3,872
|
|
$
|
5,889
|
|
$
|
14,114
|
|
$
|
16,613
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Earnings from Continuing Operations Excluding Certain Items:
|
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 disclosures. We do not
view these items to be part of our sustainable results. We believe
this measure provides an important perspective of underlying
business trends and results and provides a more comparable measure
from year to year. The table below provides a reconciliation of Net
Earnings from Continuing Operations to Net Earnings from Continuing
Operations Excluding Certain Items:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended January 31,
|
|
Six Months Ended January 31,
|
|
|
|
|
|
|
2015
|
|
2014
|
|
2015
|
|
2014
|
Net Earnings from Continuing Operations (GAAP measure)
|
|
|
|
$
|
11,584
|
|
$
|
10,517
|
|
$
|
27,083
|
|
$
|
28,652
|
|
Restructuring charges
|
|
|
|
|
3,445
|
|
|
2,843
|
|
|
6,387
|
|
|
7,552
|
|
|
|
|
|
|
|
|
|
|
|
Net Earnings from Continuing Operations Excluding Certain Items
(non-GAAP measure)
|
|
|
|
$
|
15,029
|
|
$
|
13,360
|
|
$
|
33,470
|
|
$
|
36,204
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Earnings from Continuing Operations Per Diluted Class A
Nonvoting Common Share Excluding Certain Items:
|
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 Financial Statements. We do not
view these items to be part of our sustainable results. We believe
this measure provides an important perspective of underlying
business trends and results and provides a more comparable measure
from year to year. The table below provides a reconciliation of Net
Earnings from Continuing Operations Per Diluted Class A Nonvoting
Common Share to Net Earnings from Continuing Operations Per Diluted
Class A Nonvoting Common Share Excluding Certain Items:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended January 31,
|
|
Six Months Ended January 31,
|
|
|
|
|
|
|
2015
|
|
2014
|
|
2015
|
|
2014
|
Net Earnings from Continuing Operations Per Diluted Class A
Nonvoting Common Share (GAAP measure)
|
|
|
|
$
|
0.23
|
|
$
|
0.20
|
|
$
|
0.53
|
|
$
|
0.55
|
|
Restructuring charges
|
|
|
|
|
0.07
|
|
|
0.05
|
|
|
0.12
|
|
|
0.14
|
|
|
|
|
|
|
|
|
|
|
|
Net Earnings from Continuing Operations Per Diluted Class A
Nonvoting Common Share Excluding Certain Items (non-GAAP measure)
|
|
|
|
$
|
0.29
|
|
$
|
0.25
|
|
$
|
0.65
|
|
$
|
0.69
|
Copyright Business Wire 2015