Brady Corporation · NYSE:BRC
Brady — Q2 FY2022 Earnings Presentation
18 slides from Brady's earnings presentation, Feb 17, 2022
Slide 1: Brady Corporation F'22 Q2 Financial Results
Brady Corporation F’22 Q2 Financial Results February 17, 2022
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: Q2 F'22 Financial Summary
Q2 F’22 Financial Summary 3 • Sales grew 19.6% to $318.1M in Q2 of F’22 compared with $265.8M in Q2 of F’21. – Organic sales grew 13.1%, acquisitions increased sales by 8.6% and foreign currency translation decreased sales 2.1%. • Gross profit margin of 47.0% in Q2 of F’22 compared with 48.7% in Q2
Slide 4: Sales Overview
Sales Overview 4 SALES (millions of USD) $321 $325 $318 $306 $295 $296 $300 $293 $290 $287 $282 $277 $277 $275 $266 $266 $252 $250 $225 $200 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 Organic Sales Growth 4.7% 2.3% 2.4% 1.7% (0.4%)
Slide 5: Gross Profit Margin
Gross Profit Margin 5 GROSS PROFIT & GPM% (millions of USD) 50.3% 50.3% 50.4% 50.0% 49.5% 49.6% 50% 49.3% $175 48.7% 48.9% 48.7% 48.2% 48.2% 47.1% 48% 47.0% $155 $149 $148 $149 46% $150 $147 $146 $147 $140 $141 $139 $135 44% $130 $130 $125 42% $119 40% $100 38% Q1 F'19 Q2 F'19 Q3 F'19 Q4 F'19 Q1 F'2
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% 30.2% 30.9% 30.7% 30.6% $110 30.0% 30.1% 29.1% 30% $100 $97 $95 $95 $94 $93 $91 $93 25% $89 $90 $90 $87 $83 $83 $82 20% $80 $76 $70 15% $60 10% Q1 F'19 Q2 F'19 Q3 F'19 Q4
Slide 7: R&D Expense
R&D Expense 7 R&D EXPENSE AND R&D EXPENSE AS A % OF SALES (millions of USD) $16.0 4.3% 4.4% 4.3% 4.5% 3.9% 3.9% 3.9% $13.9 $14.0 $14.0 3.8% 3.8% 3.8% 3.8% 3.7% 3.7% 3.7% 3.7% $13.2 3.5% $12.0 $11.3 $11.4 $11.3 $11.3 $11.1 $11.0 $10.5 $10.2 $9.8 $9.9 $10.0 $9.4 2.5% $8.0 $6.0 1.5% Q1 F'19 Q2 F'19 Q3
Slide 8: Income Before Income Taxes
Income Before Income Taxes 8 INCOME BEFORE INCOME TAXES (millions of USD) $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 F'19 F'19 F'19 F'19 F'20 F'20 F'20 F'20 F'21 F'21 F'21 F'21 F'22 F'22 Year-on-Ye
Slide 9: Net Income & Diluted EPS
Net Income & Diluted EPS 9 NET INCOME (millions of USD) DILUTED EPS $0.71 $0.68 $0.70 $0.67 $0.65 $40 $0.65 $0.64 $36.6 $37.5 $37.3 $0.62 $34.8 $35.0 $33.8 $0.58 $0.59 $33.6 $33.5 $0.60 $0.55 $30.6 $30.9 $0.53 $0.53 $29.2 $30 $27.7 $28.0 * $0.40 $20 $0.26 $13.6 $0.20 $10 $0 $0.00 Q1 Q2 Q3 Q4 Q1 Q2 Q
Slide 10: Cash Generation & Uses
Cash Generation & Uses 10 CASH FLOW FROM OPERATING ACTIVITIES (millions of USD) CASH FLOWS IN Q2 OF F’22: $75 • Cash flow from operating activities was ($3.2M) $65.3 $62.8 $56.0 in Q2 of F’22 compared to $36.1M in Q2 of F’21. $52.7 $50.8 $55 $42.8 $45.1 • Free cash flow* was ($8.3M) in Q2 of F’22 $3
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 $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 STRONG BALANCE SHEET: • January 31, 2022 cash = $
Slide 12: Updated F'22 EPS Guidance
Updated F’22 EPS Guidance 12 F’22 Diluted EPS, Excluding Amortization $3.00 to $3.15 (+9% to +15% vs. F’21) (Previous range of $3.12 to $3.32 per share) GAAP Diluted EPS $2.78 to $2.93 (+13% to +19% vs. F’21) (Previous range of $2.90 to $3.10/share) Guidance Assumptions: • Continued economic expansi
Slide 13: Identification Solutions
Identification Solutions 13 Q2 F’22 vs. Q2 F’21 (millions of USD) Q2 F’22 SUMMARY: Q2 F’22 Q2 F’21 Change • Revenues increased 26.1%: • Organic growth = + 16.0%. Sales $ 245.0 $ 194.2 + 26.1% • Acquisition growth = + 11.8%. Segment Profit 44.1 39.0 + 13.2% • Fx reduction = (1.7%). • Strong organic s
Slide 14: Workplace Safety
Workplace Safety 14 Q2 F’22 vs. Q2 F’21 (millions of USD) Q2 F’22 SUMMARY: Q2 F’22 Q2 F’21 Change • Revenues grew 2.0%: • Organic growth = + 5.2%. Sales $ 73.1 $ 71.6 + 2.0% • Fx reduction = (3.2%). Segment Profit 4.5 3.5 + 30.4% • Organic sales increased in EMEA and Australia as sales growth in our
Slide 15: Investor Relations
Investor Relations 15 Brady Contact: Ann Thornton Investor Relations 414-438-6887 [email protected] See our website at www.bradycorp.com/investors
Slide 16: Appendix: GAAP to Non-GAAP Reconciliations
16 Appendix GAAP to Non-GAAP Reconciliations
Slide 17: Non-GAAP Reconciliations
Non-GAAP Reconciliations 17 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 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