• Brady Corporation Reports Record EPS in its Fiscal 2024 Fourth Quarter, Expands its Share Buyback Program and Announces its Fiscal 2025 EPS Guidance

    来源: Nasdaq GlobeNewswire / 06 9月 2024 07:00:54   America/New_York

    • Diluted EPS increased 15.0 percent to a record high of $1.15 in the fourth quarter of fiscal 2024 compared to $1.00 in the same quarter of the prior year. Diluted EPS Excluding Certain Items* increased 14.4 percent to a record high of $1.19 in the fourth quarter of fiscal 2024 compared to $1.04 in the same quarter of the prior year.
    • Gross profit margin increased to 51.6 percent in the fourth quarter of fiscal 2024 compared to 50.8 percent in the same quarter of the prior year.
    • Net cash provided by operating activities increased to a record high of $255.1 million in fiscal 2024 compared to $209.1 million in fiscal 2023.
    • On September 4, 2024, Brady’s Board of Directors authorized an additional $100 million of shares for repurchase, which based on current share prices equates to approximately 1.5 million shares and approximately 3.0 percent of total outstanding shares.
    • Diluted EPS guidance for the year ending July 31, 2025 was announced at a range of $4.15 to $4.45 on a GAAP basis, and a range of $4.40 to $4.70 on a non-GAAP basis.

    MILWAUKEE, Sept. 06, 2024 (GLOBE NEWSWIRE) -- Brady Corporation (NYSE: BRC) (“Brady” or “Company”), a world leader in identification solutions, today reported its financial results for its fiscal 2024 fourth quarter ended July 31, 2024.

    Quarter Ended July 31, 2024 Financial Results:
    Sales for the quarter ended July 31, 2024 decreased 0.7 percent, which consisted of organic sales growth of 1.6 percent, a decrease of 0.8 percent from foreign currency translation and a decrease of 1.5 percent from divestitures. Sales for the quarter ended July 31, 2024 were $343.4 million compared to $345.9 million in the same quarter last year. By region, sales increased 0.4 percent in the Americas & Asia and decreased 3.0 percent in Europe & Australia, which consisted of organic sales growth of 3.4 percent in the Americas & Asia and an organic sales decline of 1.8 percent in Europe & Australia.

    Income before income taxes increased 6.9 percent to $68.2 million for the quarter ended July 31, 2024, compared to $63.8 million in the same quarter last year. Income Before Income Taxes Excluding Certain Items* for the quarter ended July 31, 2024, which was adjusted for amortization expense of $2.3 million, was $70.5 million, an increase of 6.6 percent.

    Net income for the quarter ended July 31, 2024 was $55.5 million compared to $49.4 million in the same quarter last year. Earnings per diluted Class A Nonvoting Common Share were $1.15 in the fourth quarter of fiscal 2024, compared to $1.00 in the same quarter last year. Net Income Excluding Certain Items* for the quarter ended July 31, 2024 was $57.3 million and Diluted EPS Excluding Certain Items* for the quarter ended July 31, 2024 was $1.19. Net Income Excluding Certain Items* for the quarter ended July 31, 2023 was $51.2 million and Diluted EPS Excluding Certain Items* for the quarter ended July 31, 2023 was $1.04.

    Year Ended July 31, 2024 Financial Results:
    Sales for the year ended July 31, 2024 increased 0.7 percent, which consisted of organic sales growth of 2.6 percent, an increase of 0.2 percent from foreign currency translation and a decrease of 2.1 percent from divestitures. Sales for the year ended July 31, 2024 were $1.34 billion compared to $1.33 billion in the prior year. By region, sales decreased 0.3 percent in the Americas & Asia and increased 2.7 percent in Europe & Australia, which consisted of organic sales growth of 3.1 percent in the Americas & Asia and organic sales growth of 1.6 percent in Europe & Australia.

    Income before income taxes increased 9.8 percent to $247.8 million for the year ended July 31, 2024, compared to $225.7 million for the year ended July 31, 2023. Income Before Income Taxes Excluding Certain Items* for the year ended July 31, 2024, which was adjusted for amortization expense of $9.4 million, was $257.3 million, an increase of 10.1 percent compared to the year ended July 31, 2023.

    Net income for the year ended July 31, 2024 was $197.2 million compared to $174.9 million for the year ended July 31, 2023. Earnings per diluted Class A Nonvoting Common Share were $4.07 for the year ended July 31, 2024 compared to $3.51 in the same period last year. Net Income Excluding Certain Items* for the year ended July 31, 2024 was $204.5 million and Diluted EPS Excluding Certain Items* for the year ended July 31, 2024 was $4.22. Net Income Excluding Certain Items* for the year ended July 31, 2023 was $181.5 million, and Diluted EPS Excluding Certain Items* for the year ended July 31, 2023 was $3.64.

    Commentary:
    “This quarter, we once again reported record-high EPS, marking Brady’s best earnings year ever. For the full year ended July 31, 2024, our GAAP EPS was $4.07, representing a 16.0 percent increase over the previous year’s record,” said Brady’s President and CEO, Russell R. Shaller. “Both regions continue to perform well, with growth in organic sales and operating income. I’m excited about the innovative new products we have slated for launch in fiscal 2025. We also look forward to expanding our product offerings with the addition of direct part marking and laser engraving solutions, following our acquisition of Gravotech, which closed on August 1, 2024.”

    “In addition to our record EPS this quarter and this fiscal year, we also used our strong balance sheet and cash generation to return funds to our shareholders through share buybacks and increased dividends. This year, we repurchased a total of 1.3 million shares for $72.2 million, and returned another $45.1 million to our shareholders in the form of dividends,” said Brady’s Chief Financial Officer, Ann Thornton. “Our strong balance sheet provides us with opportunities to continue to invest in both organic growth and strategic acquisitions to increase shareholder value.”

    Share Buyback Program:
    On September 4, 2024, Brady’s Board of Directors authorized an additional $100 million of Class A Nonvoting Common Stock for repurchase under the Company’s share buyback program. The share buyback program may be implemented from time to time in the open market or in privately negotiated transactions and has no expiration date.

    Fiscal 2025 Guidance:
    The Company expects GAAP earnings per diluted Class A Nonvoting Common Share to range from $4.15 to $4.45, which would be an increase of 2.0 percent to 9.3 percent over GAAP earnings per diluted Class A Nonvoting Common Share of $4.07 for the year ended July 31, 2024.

    The Company also expects Diluted EPS Excluding Certain Items* to range from $4.40 to $4.70 for the year ending July 31, 2024, which would be an increase of 4.3 percent to 11.4 percent over Diluted EPS Excluding Certain Items* of $4.22 for the year ended July 31, 2024. Adjusted from this Diluted EPS Excluding Certain Items* guidance is amortization expense estimated at $0.25 per share for the year ending July 31, 2025.

    Included in fiscal 2025 guidance are a full-year income tax rate of approximately 20 percent and depreciation and amortization expense ranging from $38 million to $40 million. Capital expenditures are expected to approximate $35 million. Fiscal 2025 guidance is based upon foreign currency exchange rates as of July 31, 2024 and assumes continued economic growth.

    A webcast regarding Brady’s fiscal 2024 fourth quarter financial results will be available at www.bradycorp.com/investors 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 July 31, 2024, employed approximately 5,700 people in its worldwide businesses. Brady’s fiscal 2024 sales were approximately $1.34 billion. Brady stock trades on the New York Stock Exchange under the symbol BRC. More information is available on the Internet at www.bradyid.com.

    * Income Before Income Taxes Excluding Certain Items, Net Income Excluding Certain Items, and Diluted EPS Excluding Certain Items are non-GAAP measures. See appendix for more information on these measures, including reconciliations to the most directly comparable 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,” “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: increased cost of raw materials and labor as well as material shortages and supply chain disruptions; decreased demand for our products; our ability to compete effectively or to successfully execute our strategy; our ability to develop technologically advanced products that meet customer demands; Brady’s ability to identify, integrate and grow acquired companies, and to manage contingent liabilities from divested businesses; difficulties in protecting our websites, networks, and systems against security breaches; risks associated with the loss of key employees; extensive regulations by U.S. and non-U.S. governmental and self-regulatory entities; global climate change and environmental regulations; litigation, including product liability claims; foreign currency fluctuations; changes in tax legislation and tax rates; potential write-offs of goodwill and other intangible assets; differing interests of voting and non-voting shareholders and changes in the regulatory and business environment around dual-class voting structures; numerous other matters of national, regional and global scale, including major public health crises and government responses thereto and 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, 2024.

    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.

    For More Information:
    Investor contact: Ann Thornton 414-438-6887
    Media contact: Kate Venne 414-358-5176


    BRADY CORPORATION AND SUBSIDIARIES       
    CONSOLIDATED STATEMENTS OF INCOME       
    (Unaudited; Dollars in thousands, except per share data)       
            
     Three months ended July 31, Year ended July 31,
      2024   2023   2024   2023 
    Net sales$343,402  $345,929  $1,341,393  $1,331,863 
    Cost of goods sold 166,347   170,049   653,509   674,588 
    Gross margin 177,055   175,880   687,884   657,275 
    Operating expenses:       
    Research and development 17,533   16,340   67,748   61,365 
    Selling, general and administrative 93,307   97,495   376,722   370,697 
    Total operating expenses 110,840   113,835   444,470   432,062 
            
    Operating income 66,215   62,045   243,414   225,213 
            
    Other income (expense):       
    Investment and other income 2,835   2,426   7,553   4,022 
    Interest expense (842)  (653)  (3,126)  (3,539)
            
    Income before income taxes 68,208   63,818   247,841   225,696 
            
    Income tax expense 12,752   14,440   50,626   50,839 
            
    Net income$55,456  $49,378  $197,215  $174,857 
            
    Net income per Class A Nonvoting Common Share:       
    Basic$1.17  $1.01  $4.10  $3.53 
    Diluted$1.15  $1.00  $4.07  $3.51 
            
    Net income per Class B Voting Common Share:       
    Basic$1.17  $1.01  $4.08  $3.51 
    Diluted$1.15  $1.00  $4.05  $3.49 
            
    Weighted average common shares outstanding:       
    Basic 47,595   49,099   48,119   49,591 
    Diluted 48,063   49,377   48,496   49,869 
            


    BRADY CORPORATION AND SUBSIDIARIES   
    CONSOLIDATED BALANCE SHEETS   
    (Dollars in thousands)   
        
     July 31, 2024 July 31, 2023
        
    ASSETS   
    Current assets:   
    Cash and cash equivalents$250,118  $151,532 
    Accounts receivable, net of allowance for credit losses of $6,749 and $8,467, respectively 185,486   184,420 
    Inventories 152,729   177,078 
    Prepaid expenses and other current assets 11,382   11,790 
    Total current assets 599,715   524,820 
    Property, plant and equipment—net 195,758   142,149 
    Goodwill 589,611   592,646 
    Other intangible assets 51,839   62,096 
    Deferred income taxes 15,596   15,716 
    Operating lease assets 38,504   29,688 
    Other assets 24,546   22,142 
    Total$1,515,569  $1,389,257 
    LIABILITIES AND STOCKHOLDERS’ EQUITY   
    Current liabilities:   
    Accounts payable$84,691  $79,855 
    Accrued compensation and benefits 77,954   71,470 
    Taxes, other than income taxes 14,061   13,575 
    Accrued income taxes 7,424   12,582 
    Current operating lease liabilities 13,382   14,726 
    Other current liabilities 67,170   65,828 
    Total current liabilities 264,682   258,036 
    Long-term debt 90,935   49,716 
    Long-term operating lease liabilities 25,342   16,217 
    Other liabilities 67,952   74,369 
    Total liabilities 448,911   398,338 
    Stockholders’ equity:   
    Common stock:   
    Class A nonvoting common stock—Issued 51,261,487 shares, and outstanding 44,042,462 and 45,008,724 shares, respectively 513   513 
    Class B voting common stock—Issued and outstanding, 3,538,628 shares 35   35 
    Additional paid-in capital 353,654   351,771 
    Retained earnings 1,174,025   1,021,870 
    Treasury stock—7,219,025 and 6,252,763 shares, respectively, of Class A nonvoting common stock, at cost (351,947)  (290,209)
    Accumulated other comprehensive loss (109,622)  (93,061)
    Total stockholders’ equity 1,066,658   990,919 
    Total$1,515,569  $1,389,257 
        


    BRADY CORPORATION AND SUBSIDIARIES   
    CONSOLIDATED STATEMENTS OF CASH FLOWS   
    (Unaudited; Dollars in thousands)   
     Year ended July 31,
      2024   2023 
    Operating activities:   
    Net income$197,215  $174,857 
    Adjustments to reconcile net income to net cash provided by operating activities:   
    Depreciation and amortization 29,873   32,370 
    Stock-based compensation expense 7,361   7,508 
    Gain on sale of business    (3,770)
    Deferred income taxes (9,399)  (12,472)
    Other 1,401   (308)
    Changes in operating assets and liabilities:   
    Accounts receivable (6,581)  2,380 
    Inventories 21,697   14,972 
    Prepaid expenses and other assets (743)  (1,023)
    Accounts payable and accrued liabilities 19,198   (9,459)
    Income taxes (4,948)  4,094 
           Net cash provided by operating activities 255,074   209,149 
        
    Investing activities:   
    Purchases of property, plant and equipment (79,892)  (19,226)
    Sale of business    8,000 
    Other (1,155)  12 
          Net cash used in investing activities (81,047)  (11,214)
        
    Financing activities:   
    Payment of dividends (45,060)  (45,404)
    Proceeds from exercise of stock options 8,186   4,091 
    Payments for employee taxes withheld from stock-based awards (2,797)  (2,041)
    Purchase of treasury stock (72,225)  (74,996)
    Proceeds from borrowing on credit agreement 175,103   127,660 
    Repayment of borrowing on credit agreement (133,884)  (172,944)
    Other 149   66 
         Net cash used in financing activities (70,528)  (163,568)
        
    Effect of exchange rate changes on cash and cash equivalents (4,913)  3,096 
        
    Net increase in cash and cash equivalents 98,586   37,463 
    Cash and cash equivalents, beginning of period 151,532   114,069 
        
    Cash and cash equivalents, end of period$250,118  $151,532 
        


    BRADY CORPORATION AND SUBSIDIARIES       
    SEGMENT INFORMATION       
    (Unaudited; Dollars in thousands)       
            
     Three months ended July 31, Year ended July 31,
      2024   2023   2024   2023 
    NET SALES       
    Americas & Asia$228,493  $227,482  $886,528  $888,857 
    Europe & Australia 114,909   118,447   454,865   443,006 
    Total$343,402  $345,929  $1,341,393  $1,331,863 
            
    SALES INFORMATION       
    Americas & Asia       
    Organic 3.4%  5.6%  3.1%  4.4%
    Currency (0.8)%  (0.2)%  (0.2)%  (0.9)%
    Divestiture (2.2)%  (1.0)%  (3.2)%  (0.3)%
    Total 0.4%  4.4%  (0.3)%  3.2%
    Europe & Australia       
    Organic (1.8)%  9.5%  1.6%  7.6%
    Currency (1.2)%  2.0%  1.1%  (7.1)%
    Total (3.0)%  11.5%  2.7%  0.5%
    Total Company       
    Organic 1.6%  6.9%  2.6%  5.5%
    Currency (0.8)%  0.6%  0.2%  (3.0)%
    Divestiture (1.5)%  (0.7)%  (2.1)%  (0.2)%
    Total (0.7)%  6.8%  0.7%  2.3%
            
    SEGMENT PROFIT       
    Americas & Asia$53,353  $49,992  $196,842  $180,503 
    Europe & Australia 19,277   18,426   70,612   65,742 
    Total segment profit$72,630  $68,418  $267,454  $246,245 
    SEGMENT PROFIT AS A PERCENT OF NET SALES       
    Americas & Asia 23.3%  22.0%  22.2%  20.3%
    Europe & Australia 16.8%  15.6%  15.5%  14.8%
    Total 21.2%  19.8%  19.9%  18.5%
            
            
     Three months ended July 31, Year ended July 31,
      2024   2023   2024   2023 
    Total segment profit$72,630  $68,418  $267,454  $246,245 
    Unallocated amounts:       
    Administrative costs (6,415)  (6,373)  (24,040)  (24,802)
    Gain on sale of business -   -   -   3,770 
    Investment and other income 2,835   2,426   7,553   4,022 
    Interest expense (842)  (653)  (3,126)  (3,539)
    Income before income taxes$68,208  $63,818  $247,841  $225,696 
            


    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.
               
    Income Before Income Taxes Excluding Certain Items:
    Brady is presenting the non-GAAP measure, "Income 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 ongoing 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 the GAAP measure of Income before income taxes to the non-GAAP measure of Income Before Income Taxes Excluding Certain Items:
               
        Three months ended July 31, Year ended July 31,
         2024  2023  2024  2023 
    Income before income taxes (GAAP measure)$68,208 $63,818 $247,841 $225,696 
     Amortization expense  2,337  2,389  9,421  11,739 
     Gain on sale of business  -  -  -  (3,770)
    Income Before Income Taxes Excluding Certain Items (non-GAAP measure)$ 70,545 $ 66,207 $ 257,262 $ 233,665 
               
               
    Income Tax Expense Excluding Certain Items:
    Brady is presenting the non-GAAP measure, "Income Tax Expense 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 ongoing 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 the GAAP measure of Income tax expense to the non-GAAP measure of Income Tax Expense Excluding Certain Items:
               
        Three months ended July 31, Year ended July 31,
         2024  2023  2024  2023 
    Income tax expense (GAAP measure)$12,752 $14,440 $50,626 $50,839 
     Amortization expense  540  553  2,182  2,756 
     Gain on sale of business  -  -  -  (1,431)
    Income Tax Expense Excluding Certain Items (non-GAAP measure)$ 13,292 $ 14,993 $ 52,808 $ 52,164 
               
               
    Net Income Excluding Certain Items:
    Brady is presenting the non-GAAP measure, "Net Income 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 ongoing 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 the GAAP measure of Net income to the non-GAAP measure of Net Income Excluding Certain Items:
               
        Three months ended July 31, Year ended July 31,
         2024  2023  2024  2023 
    Net income (GAAP measure)$55,456 $49,378 $197,215 $174,857 
     Amortization expense  1,797  1,836  7,239  8,983 
     Gain on sale of business  -  -  -  (2,339)
    Net Income Excluding Certain Items (non-GAAP measure)$ 57,253 $ 51,214 $ 204,454 $ 181,501 
               
               
    Diluted EPS Excluding Certain Items:
    Brady is presenting the non-GAAP measure, "Diluted EPS 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 ongoing 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 the GAAP measure of Net income per Class A Nonvoting Common Share to the non-GAAP measure of Diluted EPS Excluding Certain Items (Note that certain amounts will not foot due to rounding):
               
        Three months ended July 31, Year ended July 31,
         2024  2023  2024  2023 
    Net income per Class A Nonvoting Common Share (GAAP measure)$1.15 $1.00 $4.07 $3.51 
     Amortization expense  0.04  0.04  0.15  0.18 
     Gain on sale of business  -  -  -  (0.05)
    Diluted EPS Excluding Certain Items (non-GAAP measure)$ 1.19 $ 1.04 $ 4.22 $ 3.64 
               
               
    Diluted EPS Excluding Certain Items Guidance:     Fiscal 2025 Expectations
            Low High
    Earnings per diluted Class A Common Share (GAAP measure)     $4.15 $4.45 
     Amortization expense      0.25  0.25 
    Diluted EPS Excluding Certain Items (non-GAAP measure)     $ 4.40 $ 4.70 
               

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