Brady Corporation (NYSE: BRC) (“Brady” or “Company”), a world
leader in identification solutions, today reported its financial
results for its fiscal 2022 second quarter ended January 31, 2022.
Quarter Ended January 31, 2022 Financial
Results:Sales for the quarter ended January 31, 2022
increased 19.6 percent, which consisted of an organic sales
increase of 13.1 percent, an increase of 8.6 percent from
acquisitions and a decrease of 2.1 percent from foreign currency
translation. Sales for the quarter ended January 31, 2022 were
$318.1 million compared to $265.8 million in the same quarter last
year. By segment, sales increased 26.1 percent in Identification
Solutions and increased 2.0 percent in Workplace Safety, which
consisted of an organic sales increase of 16.0 percent in
Identification Solutions and an organic sales increase of 5.2
percent in Workplace Safety.
Income before income taxes and losses of unconsolidated
affiliate increased 6.7 percent to $42.0 million for the quarter
ended January 31, 2022, compared to $39.4 million in the same
quarter last year. Income Before Income Taxes Excluding
Amortization* for the quarter ended January 31, 2022 was $45.8
million, an increase of 12.4 percent compared to the second quarter
of last year.
Net income for the quarter ended January 31, 2022 was $33.8
million compared to $30.9 million in the same quarter last year.
Earnings per diluted Class A Nonvoting Common Share were $0.65 for
the second quarter of fiscal 2022, compared to $0.59 in the same
quarter last year. Net Income Excluding Amortization* for the
quarter ended January 31, 2022 was $36.7 million and Diluted EPS
Excluding Amortization* for the quarter ended January 31, 2022 was
$0.70.
Six-Month Period Ended January 31, 2022 Financial
Results:Sales for the six-month period ended January 31,
2022 increased 17.8 percent, which consisted of an organic sales
increase of 10.0 percent, an increase of 8.5 percent from
acquisitions and a decrease of 0.7 percent from foreign currency
translation. Sales for the six months ended January 31, 2022 were
$639.5 million compared to $543.1 million in the same period last
year. By segment, sales increased 25.8 percent in Identification
Solutions and decreased 3.1 percent in Workplace Safety, which
consisted of an organic sales increase of 14.6 percent in
Identification Solutions and an organic sales decline of 2.0
percent in Workplace Safety.
Income before income taxes and losses of unconsolidated
affiliate increased 6.3 percent to $86.7 million for the six months
ended January 31, 2022, compared to $81.6 million in the same
period last year. Income Before Income Taxes Excluding
Amortization* for the six months ended January 31, 2022 was $94.3
million, an increase of 11.8 percent compared to the same period of
last year.
Net income for the six-month period ended January 31, 2022 was
$68.9 million compared to $64.3 million in the same period last
year. Earnings per diluted Class A Nonvoting Common Share were
$1.32 for the six months ended January 31, 2022, compared to $1.23
in the same period last year. Net Income Excluding Amortization*
for the six months ended January 31, 2022 was $74.6 million and
Diluted EPS Excluding Amortization* for the six months ended
January 31, 2022 was $1.43.
Commentary: “We experienced very strong revenue
growth of 19.6 percent this quarter and our investments in sales,
marketing, and research and development, combined with our
reinvigorated innovative spirit have set the stage for strong
future growth. We are transforming Brady into a solution provider
that is now growing in excess of GDP and is poised for future sales
growth due to the strong foundation and positive momentum resulting
from the many investments made over the last five-plus years,” said
Brady’s President and Chief Executive Officer, J. Michael Nauman.
“Our strong sales growth was driven by our Identification Solutions
division which had total sales growth of 26.1 percent this quarter.
The three acquisitions completed last year are performing at or
above our initial expectations and are helping shift Brady into
faster-growing end markets. Our Workplace Safety business returned
to organic sales growth this quarter – returning to growth one
quarter earlier than originally anticipated. We are experiencing
inflation in many areas including wages, freight, utilities, and
raw materials, which we expect to continue to pressure our gross
profit margins in the short-term. We believe that these gross
margin challenges are temporary and once our pricing and efficiency
initiatives catch up to cost inflation, our strong sales growth and
improved gross profit margins will drive solid bottom-line
growth.”
“Brady is financially strong, is experiencing strong revenue
growth, and continues to generate strong earnings. We grew sales
nearly 20 percent and grew Diluted EPS Excluding Amortization*
nearly 15 percent, which represents another very strong quarter,”
said Brady’s Chief Financial Officer, Aaron Pearce. “This quarter,
we returned $14.5 million to our shareholders in the form of
dividends and share buybacks and over the first six months of this
year, we returned a total of $45.0 million to our shareholders,
which exemplifies our commitment to returning funds to our
shareholders. We have a net cash balance of $64.4 million as of
January 31, 2022. We believe that Brady’s strong second quarter
revenue growth, improving earnings per share, and solid balance
sheet position us well for future financial success.”
Fiscal 2022 Guidance:Brady’s organic revenue
growth was 10.0% during the six months ended January 31, 2022,
however, inflationary forces compressed Brady’s gross profit margin
during this period. Brady expects these cost pressures to continue
for at least the short-term before price increases and efficiency
actions can fully offset these inflationary forces. As such, we are
modifying our Diluted EPS Excluding Amortization* guidance from our
original range of $3.12 to $3.32 per share to a range of $3.00 to
$3.15 for the full year ending July 31, 2022, which includes a
reduction of $0.05 due to the strengthening of the U.S. dollar
versus other major currencies. This implies that we expect Diluted
EPS Excluding Amortization, to improve by 9% to 15% for the full
year ending July 31, 2022 when compared to the adjusted fiscal 2021
diluted earnings per share of $2.75. Also included in our full-year
fiscal 2022 guidance are a full-year income tax rate of
approximately 20 percent and depreciation and amortization expense
ranging from $34 million to $36 million. Capital expenditures,
excluding facility purchases are expected to range from $20 million
to $25 million during the year ending July 31, 2022. The Company’s
fiscal 2022 guidance is based on foreign currency exchange rates as
of January 31, 2022 and assumes continued economic growth.
A webcast regarding Brady’s fiscal 2022 second 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,
2021, employed approximately 5,700 people in its worldwide
businesses. Brady’s fiscal 2021 sales were approximately $1.14
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 Amortization, Net Income
Excluding Amortization, and Diluted EPS Excluding Amortization 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,”
“continue” 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: adverse impacts of the novel coronavirus (“COVID-19”)
pandemic or other pandemics; decreased demand for our products; our
ability to compete effectively or to successfully execute our
strategy; increased cost of raw materials, labor and freight as
well as raw material shortages; increased cost of raw materials,
labor and freight as well as raw material shortages; Brady’s
ability to properly 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; litigation, including
product liability claims; foreign currency fluctuations; potential
write-offs of goodwill and other intangible assets; changes in tax
legislation and tax rates; differing interests of voting and
non-voting shareholders; 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, 2021 and in any subsequent filings on Form
10-Q.
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.
BRADY CORPORATION AND SUBSIDIARIES |
|
|
|
|
|
|
|
CONSOLIDATED STATEMENTS OF INCOME |
|
|
|
|
|
|
|
(Unaudited; Dollars in thousands, except per share data) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three months ended January 31, |
|
Six months ended January 31, |
|
|
2022 |
|
|
|
2021 |
|
|
|
2022 |
|
|
|
2021 |
|
Net sales |
$ |
318,055 |
|
|
$ |
265,838 |
|
|
$ |
639,530 |
|
|
$ |
543,065 |
|
Cost of goods sold |
|
168,693 |
|
|
|
136,316 |
|
|
|
335,180 |
|
|
|
278,115 |
|
Gross margin |
|
149,362 |
|
|
|
129,522 |
|
|
|
304,350 |
|
|
|
264,950 |
|
Operating expenses: |
|
|
|
|
|
|
|
Research and development |
|
13,965 |
|
|
|
9,876 |
|
|
|
27,872 |
|
|
|
20,079 |
|
Selling, general and administrative |
|
92,525 |
|
|
|
82,234 |
|
|
|
189,271 |
|
|
|
165,271 |
|
Total operating expenses |
|
106,490 |
|
|
|
92,110 |
|
|
|
217,143 |
|
|
|
185,350 |
|
|
|
|
|
|
|
|
|
Operating income |
|
42,872 |
|
|
|
37,412 |
|
|
|
87,207 |
|
|
|
79,600 |
|
|
|
|
|
|
|
|
|
Other (expense) income: |
|
|
|
|
|
|
|
Investment and other (expense) income |
|
(578 |
) |
|
|
2,036 |
|
|
|
(35 |
) |
|
|
2,191 |
|
Interest expense |
|
(252 |
) |
|
|
(51 |
) |
|
|
(434 |
) |
|
|
(157 |
) |
|
|
|
|
|
|
|
|
Income before income taxes and losses of unconsolidated
affiliate |
|
42,042 |
|
|
|
39,397 |
|
|
|
86,738 |
|
|
|
81,634 |
|
|
|
|
|
|
|
|
|
Income tax expense |
|
8,227 |
|
|
|
8,206 |
|
|
|
17,877 |
|
|
|
16,788 |
|
|
|
|
|
|
|
|
|
Income before losses of unconsolidated affiliate |
|
33,815 |
|
|
|
31,191 |
|
|
|
68,861 |
|
|
|
64,846 |
|
Equity in losses of unconsolidated affiliate |
|
— |
|
|
|
(331 |
) |
|
|
— |
|
|
|
(505 |
) |
|
|
|
|
|
|
|
|
Net income |
$ |
33,815 |
|
|
$ |
30,860 |
|
|
$ |
68,861 |
|
|
$ |
64,341 |
|
|
|
|
|
|
|
|
|
Net income per Class A Nonvoting Common Share: |
|
|
|
|
|
|
|
Basic |
$ |
0.65 |
|
|
$ |
0.59 |
|
|
$ |
1.33 |
|
|
$ |
1.24 |
|
Diluted |
$ |
0.65 |
|
|
$ |
0.59 |
|
|
$ |
1.32 |
|
|
$ |
1.23 |
|
|
|
|
|
|
|
|
|
Net income per Class B Voting Common Share: |
|
|
|
|
|
|
|
Basic |
$ |
0.65 |
|
|
$ |
0.59 |
|
|
$ |
1.31 |
|
|
$ |
1.22 |
|
Diluted |
$ |
0.65 |
|
|
$ |
0.59 |
|
|
$ |
1.30 |
|
|
$ |
1.21 |
|
|
|
|
|
|
|
|
|
Weighted average common shares outstanding: |
|
|
|
|
|
|
|
Basic |
|
51,800 |
|
|
|
52,018 |
|
|
|
51,887 |
|
|
|
52,020 |
|
Diluted |
|
52,162 |
|
|
|
52,282 |
|
|
|
52,299 |
|
|
|
52,288 |
|
BRADY CORPORATION AND SUBSIDIARIES |
|
|
|
CONSOLIDATED BALANCE SHEETS |
|
|
|
(Dollars in thousands) |
|
|
|
|
|
|
|
|
January 31, 2022 |
|
July 31, 2021 |
|
(Unaudited) |
|
|
ASSETS |
|
|
|
Current assets: |
|
|
|
Cash and cash equivalents |
$ |
147,407 |
|
|
$ |
147,335 |
|
Accounts receivable, net of allowance for credit losses of $7,868
and $7,306 respectively |
|
172,471 |
|
|
|
170,579 |
|
Inventories |
|
167,456 |
|
|
|
136,107 |
|
Prepaid expenses and other current assets |
|
12,681 |
|
|
|
11,083 |
|
Total current assets |
|
500,015 |
|
|
|
465,104 |
|
Property, plant and equipment—net |
|
126,551 |
|
|
|
121,741 |
|
Goodwill |
|
601,681 |
|
|
|
614,137 |
|
Other intangible assets |
|
83,608 |
|
|
|
92,334 |
|
Deferred income taxes |
|
15,234 |
|
|
|
16,343 |
|
Operating lease assets |
|
33,710 |
|
|
|
41,880 |
|
Other assets |
|
26,264 |
|
|
|
26,217 |
|
Total |
$ |
1,387,063 |
|
|
$ |
1,377,756 |
|
LIABILITIES AND STOCKHOLDERS’ EQUITY |
|
|
|
Current liabilities: |
|
|
|
Accounts payable |
$ |
80,611 |
|
|
$ |
82,152 |
|
Accrued compensation and benefits |
|
56,510 |
|
|
|
81,173 |
|
Taxes, other than income taxes |
|
12,141 |
|
|
|
13,054 |
|
Accrued income taxes |
|
4,783 |
|
|
|
3,915 |
|
Current operating lease liabilities |
|
16,601 |
|
|
|
17,667 |
|
Other current liabilities |
|
56,850 |
|
|
|
59,623 |
|
Total current liabilities |
|
227,496 |
|
|
|
257,584 |
|
Long-term debt |
|
83,000 |
|
|
|
38,000 |
|
Long-term operating lease liabilities |
|
20,341 |
|
|
|
28,347 |
|
Other liabilities |
|
89,658 |
|
|
|
90,797 |
|
Total liabilities |
|
420,495 |
|
|
|
414,728 |
|
Stockholders’ equity: |
|
|
|
Common stock: |
|
|
|
Class A nonvoting common stock—Issued 51,261,487 shares, and
outstanding 48,243,347 and 48,528,245 shares, respectively |
|
513 |
|
|
|
513 |
|
Class B voting common stock—Issued and outstanding, 3,538,628
shares |
|
35 |
|
|
|
35 |
|
Additional paid-in capital |
|
341,889 |
|
|
|
339,125 |
|
Retained earnings |
|
833,981 |
|
|
|
788,369 |
|
Treasury stock—3,018,140 and 2,733,242 shares, respectively, of
Class A nonvoting common stock, at cost |
|
(130,911 |
) |
|
|
(109,061 |
) |
Accumulated other comprehensive loss |
|
(78,939 |
) |
|
|
(55,953 |
) |
Total stockholders’ equity |
|
966,568 |
|
|
|
963,028 |
|
Total |
$ |
1,387,063 |
|
|
$ |
1,377,756 |
|
BRADY CORPORATION AND SUBSIDIARIES |
|
|
|
CONSOLIDATED STATEMENTS OF CASH FLOWS |
|
|
|
(Unaudited; Dollars in thousands) |
|
|
|
|
Six months ended January 31, |
|
|
2022 |
|
|
|
2021 |
|
Operating activities: |
|
|
|
Net income |
$ |
68,861 |
|
|
$ |
64,341 |
|
Adjustments to reconcile net income to net cash provided by
operating activities: |
|
|
|
Depreciation and amortization |
|
16,996 |
|
|
|
11,421 |
|
Stock-based compensation expense |
|
7,170 |
|
|
|
5,471 |
|
Deferred income taxes |
|
(788 |
) |
|
|
(3,866 |
) |
Equity in losses of unconsolidated affiliate |
|
— |
|
|
|
505 |
|
Other |
|
(812 |
) |
|
|
121 |
|
Changes in operating assets and liabilities: |
|
|
|
Accounts receivable |
|
(7,216 |
) |
|
|
(4,157 |
) |
Inventories |
|
(34,360 |
) |
|
|
15,018 |
|
Prepaid expenses and other assets |
|
(1,148 |
) |
|
|
(2,436 |
) |
Accounts payable and accrued liabilities |
|
(25,357 |
) |
|
|
11,990 |
|
Income taxes |
|
982 |
|
|
|
481 |
|
Net
cash provided by operating activities |
|
24,328 |
|
|
|
98,889 |
|
|
|
|
|
Investing activities: |
|
|
|
Purchases of property, plant and equipment |
|
(16,440 |
) |
|
|
(14,511 |
) |
Other |
|
59 |
|
|
|
(1,881 |
) |
Net
cash used in investing activities |
|
(16,381 |
) |
|
|
(16,392 |
) |
|
|
|
|
Financing activities: |
|
|
|
Payment of dividends |
|
(23,249 |
) |
|
|
(22,837 |
) |
Proceeds from exercise of stock options |
|
374 |
|
|
|
471 |
|
Payments for employee taxes withheld from stock-based awards |
|
(5,025 |
) |
|
|
(2,638 |
) |
Purchase of treasury stock |
|
(21,720 |
) |
|
|
(3,593 |
) |
Proceeds from borrowing on credit facilities |
|
131,216 |
|
|
|
19,957 |
|
Repayment of borrowing on credit facilities |
|
(86,216 |
) |
|
|
(20,220 |
) |
Other |
|
115 |
|
|
|
32 |
|
Net cash
used in financing activities |
|
(4,505 |
) |
|
|
(28,828 |
) |
|
|
|
|
Effect of exchange rate changes on cash |
|
(3,370 |
) |
|
|
6,276 |
|
|
|
|
|
Net increase in cash and cash equivalents |
|
72 |
|
|
|
59,945 |
|
Cash and cash equivalents, beginning of period |
|
147,335 |
|
|
|
217,643 |
|
|
|
|
|
Cash and cash equivalents, end of period |
$ |
147,407 |
|
|
$ |
277,588 |
|
BRADY CORPORATION AND SUBSIDIARIES |
|
|
|
|
|
|
|
SEGMENT INFORMATION |
|
|
|
|
|
|
|
(Unaudited; Dollars in thousands) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three months ended January 31, |
|
Six months ended January 31, |
|
|
2022 |
|
|
|
2021 |
|
|
|
2022 |
|
|
|
2021 |
|
NET SALES |
|
|
|
|
|
|
|
ID Solutions |
$ |
244,986 |
|
|
$ |
194,227 |
|
|
$ |
493,603 |
|
|
$ |
392,419 |
|
Workplace Safety |
|
73,069 |
|
|
|
71,611 |
|
|
|
145,927 |
|
|
|
150,646 |
|
Total |
$ |
318,055 |
|
|
$ |
265,838 |
|
|
$ |
639,530 |
|
|
$ |
543,065 |
|
|
|
|
|
|
|
|
|
SALES INFORMATION |
|
|
|
|
|
|
|
ID Solutions |
|
|
|
|
|
|
|
Organic |
|
16.0 |
% |
|
|
(6.9 |
)% |
|
|
14.6 |
% |
|
|
(7.6 |
)% |
Acquisition |
|
11.8 |
% |
|
|
— |
% |
|
|
11.7 |
% |
|
|
— |
% |
Currency |
|
(1.7 |
)% |
|
|
1.5 |
% |
|
|
(0.5 |
)% |
|
|
1.0 |
% |
Total |
|
26.1 |
% |
|
|
(5.4 |
)% |
|
|
25.8 |
% |
|
|
(6.6 |
)% |
Workplace Safety |
|
|
|
|
|
|
|
Organic |
|
5.2 |
% |
|
|
(4.8 |
)% |
|
|
(2.0 |
)% |
|
|
0.4 |
% |
Currency |
|
(3.2 |
)% |
|
|
5.2 |
% |
|
|
(1.1 |
)% |
|
|
4.8 |
% |
Total |
|
2.0 |
% |
|
|
0.4 |
% |
|
|
(3.1 |
)% |
|
|
5.2 |
% |
Total Company |
|
|
|
|
|
|
|
Organic |
|
13.1 |
% |
|
|
(6.3 |
)% |
|
|
10.0 |
% |
|
|
(5.6 |
)% |
Acquisition |
|
8.6 |
% |
|
|
— |
% |
|
|
8.5 |
% |
|
|
— |
% |
Currency |
|
(2.1 |
)% |
|
|
2.4 |
% |
|
|
(0.7 |
)% |
|
|
2.0 |
% |
Total |
|
19.6 |
% |
|
|
(3.9 |
)% |
|
|
17.8 |
% |
|
|
(3.6 |
)% |
|
|
|
|
|
|
|
|
SEGMENT PROFIT |
|
|
|
|
|
|
|
ID Solutions |
$ |
44,129 |
|
|
$ |
39,000 |
|
|
$ |
92,945 |
|
|
$ |
79,279 |
|
Workplace Safety |
|
4,515 |
|
|
|
3,463 |
|
|
|
6,808 |
|
|
|
11,451 |
|
Total |
$ |
48,644 |
|
|
$ |
42,463 |
|
|
$ |
99,753 |
|
|
$ |
90,730 |
|
SEGMENT PROFIT AS A PERCENT OF NET SALES |
|
|
|
|
|
|
|
ID Solutions |
|
18.0 |
% |
|
|
20.1 |
% |
|
|
18.8 |
% |
|
|
20.2 |
% |
Workplace Safety |
|
6.2 |
% |
|
|
4.8 |
% |
|
|
4.7 |
% |
|
|
7.6 |
% |
Total |
|
15.3 |
% |
|
|
16.0 |
% |
|
|
15.6 |
% |
|
|
16.7 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three months ended January 31, |
|
Six months ended January 31, |
|
|
2022 |
|
|
|
2021 |
|
|
|
2022 |
|
|
|
2021 |
|
Total segment profit |
$ |
48,644 |
|
|
$ |
42,463 |
|
|
$ |
99,753 |
|
|
$ |
90,730 |
|
Unallocated amounts: |
|
|
|
|
|
|
|
Administrative costs |
|
(5,772 |
) |
|
|
(5,051 |
) |
|
|
(12,546 |
) |
|
|
(11,130 |
) |
Investment and other (expense) income |
|
(578 |
) |
|
|
2,036 |
|
|
|
(35 |
) |
|
|
2,191 |
|
Interest expense |
|
(252 |
) |
|
|
(51 |
) |
|
|
(434 |
) |
|
|
(157 |
) |
Income before income taxes and losses of unconsolidated
affiliate |
$ |
42,042 |
|
|
$ |
39,397 |
|
|
$ |
86,738 |
|
|
$ |
81,634 |
|
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
Amortization: |
|
|
|
|
|
|
|
|
|
|
|
Brady is presenting the non-GAAP measure, "Income Before Income
Taxes Excluding Amortization." 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 and losses of unconsolidated affiliate
to the non-GAAP measure of Income Before Income Taxes Excluding
Amortization: |
|
|
|
|
|
|
|
|
|
|
|
|
|
Three months ended January 31, |
|
Six months ended January 31, |
|
2022 |
|
2021 |
|
2022 |
|
2021 |
Income before income taxes and losses of unconsolidated
affiliate (GAAP measure) |
$ |
42,042 |
|
$ |
39,397 |
|
$ |
86,738 |
|
$ |
81,634 |
Amortization expense |
|
3,749 |
|
|
1,353 |
|
|
7,556 |
|
|
2,704 |
Income Before Income Taxes Excluding Amortization (non-GAAP
measure) |
$ |
45,791 |
|
$ |
40,750 |
|
$ |
94,294 |
|
$ |
84,338 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income Tax Expense Excluding Amortization: |
|
|
|
|
|
|
|
|
|
|
|
Brady is presenting the non-GAAP measure, "Income Tax Expense
Excluding Amortization." 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
Amortization: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three months ended January 31, |
|
Six months ended January 31, |
|
2022 |
|
2021 |
|
2022 |
|
2021 |
Income tax expense (GAAP measure) |
$ |
8,227 |
|
$ |
8,206 |
|
$ |
17,877 |
|
$ |
16,788 |
Amortization expense |
|
887 |
|
|
338 |
|
|
1,787 |
|
|
676 |
Income Tax Expense Excluding Amortization (non-GAAP
measure) |
$ |
9,114 |
|
$ |
8,544 |
|
$ |
19,664 |
|
$ |
17,464 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Income Excluding Amortization: |
|
|
|
|
|
|
|
|
|
|
|
Brady is presenting the non-GAAP measure, "Net Income Excluding
Amortization." 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 Amortization: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three months ended January 31, |
|
Six months ended January 31, |
|
2022 |
|
2021 |
|
2022 |
|
2021 |
Net income (GAAP measure) |
$ |
33,815 |
|
$ |
30,860 |
|
$ |
68,861 |
|
$ |
64,341 |
Amortization expense |
|
2,862 |
|
|
1,015 |
|
|
5,769 |
|
|
2,028 |
Net Income Excluding Amortization (non-GAAP
measure) |
$ |
36,677 |
|
$ |
31,875 |
|
$ |
74,630 |
|
$ |
66,369 |
|
|
|
|
|
|
|
|
|
|
|
|
Diluted EPS Excluding Amortization: |
|
|
|
|
|
|
|
|
|
|
|
Brady is presenting the non-GAAP measure, "Diluted EPS Excluding
Amortization." 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 Amortization: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three months ended January 31, |
|
Six months ended January 31, |
|
2022 |
|
2021 |
|
2022 |
|
2021 |
Net income per Class A Nonvoting Common Share (GAAP
measure) |
$ |
0.65 |
|
$ |
0.59 |
|
$ |
1.32 |
|
$ |
1.23 |
Amortization expense |
|
0.05 |
|
|
0.02 |
|
|
0.11 |
|
|
0.04 |
Diluted EPS Excluding Amortization (non-GAAP
measure) |
$ |
0.70 |
|
$ |
0.61 |
|
$ |
1.43 |
|
$ |
1.27 |
For More Information:Investor contact: Ann Thornton
414-438-6887Media contact: Kate Venne 414-358-5176
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