Brady Corporation Provides Recast Historical Data for new Operating Segments
24 February 2023 - 11:05PM
Brady Corporation (NYSE: BRC) (“Brady” or “Company”) is providing
recast historical financial data for fiscal 2021, 2022 and the
first two quarters of fiscal 2023 for its new operating segments
announced on December 1, 2022, which are effective in the Company’s
third quarter of fiscal 2023.
The Company has recast its historical financial data to disclose
sales and segment profit for its two new operating segments:
Americas & Asia and Europe & Australia. This change to a
regional operating structure will allow the Company to further
integrate its businesses, support continued growth through the
application of its best go-to-market strategies in key geographies,
facilitate new product development in its recent acquisitions and
further simplify its global business. The Company
expects that the change to a regional structure will result in an
improvement of approximately $0.10 to $0.20 of Earnings per diluted
Class A Common Share beginning primarily in fiscal 2024. One-time
charges resulting from employee severance are expected to be
largely offset by reduced costs in fiscal 2023.
The following tables provide recast segment sales, segment
profit, and sales growth data by quarter for fiscal years 2021,
2022 and the first two quarters of fiscal 2023. This recast does
not represent a restatement of previously issued financial
statements and does not affect the Company’s reported net income,
earnings per share, total assets or stockholders’ equity for any of
the previously reported periods.
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, 2022, employed approximately 5,700 people in its
worldwide businesses. Brady’s fiscal 2022 sales were approximately
$1.30 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.
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, income, 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, labor and freight as well as
raw 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; adverse impacts of the novel coronavirus (“COVID-19”)
pandemic or other pandemics; 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, 2022.
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 |
RECAST SEGMENT INFORMATION |
(Unaudited; Dollars in thousands) |
|
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|
|
|
The following table represents segment sales, sales growth
information, and segment profit for the three and six months ended
January 31, 2023 and 2022 recast to reflect the Company's regional
operating structure effective February 1, 2023. |
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Three months ended January 31, |
|
Six months ended January 31, |
|
|
2023 |
|
|
|
2022 |
|
|
|
2023 |
|
|
|
2022 |
|
NET SALES |
|
|
|
|
|
|
|
Americas & Asia |
$ |
220,067 |
|
|
$ |
207,842 |
|
|
$ |
438,562 |
|
|
$ |
420,713 |
|
Europe & Australia |
|
106,182 |
|
|
|
110,213 |
|
|
|
210,256 |
|
|
|
218,817 |
|
Total |
$ |
326,249 |
|
|
$ |
318,055 |
|
|
$ |
648,818 |
|
|
$ |
639,530 |
|
|
|
|
|
|
|
|
|
SALES INFORMATION |
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|
|
Americas & Asia |
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|
|
|
|
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Organic |
|
6.9 |
% |
|
|
13.9 |
% |
|
|
5.4 |
% |
|
|
11.6 |
% |
Currency |
|
(1.0 |
)% |
|
|
0.0 |
% |
|
|
(1.2 |
)% |
|
|
0.4 |
% |
Acquisition |
|
— |
% |
|
|
8.1 |
% |
|
|
— |
% |
|
|
8.2 |
% |
Total |
|
5.9 |
% |
|
|
22.0 |
% |
|
|
4.2 |
% |
|
|
20.2 |
% |
Europe & Australia |
|
|
|
|
|
|
|
Organic |
|
5.2 |
% |
|
|
11.7 |
% |
|
|
8.9 |
% |
|
|
7.1 |
% |
Currency |
|
(8.9 |
)% |
|
|
(5.8 |
)% |
|
|
(12.8 |
)% |
|
|
(2.6 |
)% |
Acquisition |
|
— |
% |
|
|
9.6 |
% |
|
|
— |
% |
|
|
8.9 |
% |
Total |
|
(3.7 |
)% |
|
|
15.5 |
% |
|
|
(3.9 |
)% |
|
|
13.4 |
% |
Total Company |
|
|
|
|
|
|
|
Organic |
|
6.3 |
% |
|
|
13.1 |
% |
|
|
6.6 |
% |
|
|
10.0 |
% |
Currency |
|
(3.7 |
)% |
|
|
(2.1 |
)% |
|
|
(5.1 |
)% |
|
|
(0.7 |
)% |
Acquisition |
|
— |
% |
|
|
8.6 |
% |
|
|
— |
% |
|
|
8.5 |
% |
Total |
|
2.6 |
% |
|
|
19.6 |
% |
|
|
1.5 |
% |
|
|
17.8 |
% |
|
|
|
|
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|
|
|
SEGMENT PROFIT |
|
|
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|
|
|
Americas & Asia |
$ |
40,174 |
|
|
$ |
32,331 |
|
|
$ |
81,319 |
|
|
$ |
69,638 |
|
Europe & Australia |
|
13,459 |
|
|
|
16,313 |
|
|
|
30,217 |
|
|
|
30,115 |
|
Total |
$ |
53,633 |
|
|
$ |
48,644 |
|
|
$ |
111,536 |
|
|
$ |
99,753 |
|
SEGMENT PROFIT AS A PERCENT OF NET SALES |
|
|
|
|
|
|
|
Americas & Asia |
|
18.3 |
% |
|
|
15.6 |
% |
|
|
18.5 |
% |
|
|
16.6 |
% |
Europe & Australia |
|
12.7 |
% |
|
|
14.8 |
% |
|
|
14.4 |
% |
|
|
13.8 |
% |
Total |
|
16.4 |
% |
|
|
15.3 |
% |
|
|
17.2 |
% |
|
|
15.6 |
% |
|
|
|
|
|
|
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|
|
|
|
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|
Three months ended January 31, |
|
Six months ended January 31, |
|
|
2023 |
|
|
|
2022 |
|
|
|
2023 |
|
|
|
2022 |
|
Total segment profit |
$ |
53,633 |
|
|
$ |
48,644 |
|
|
$ |
111,536 |
|
|
$ |
99,753 |
|
Unallocated amounts: |
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|
|
|
Administrative costs |
|
(4,852 |
) |
|
|
(5,772 |
) |
|
|
(11,369 |
) |
|
|
(12,546 |
) |
Investment and other income (expense) |
|
968 |
|
|
|
(578 |
) |
|
|
811 |
|
|
|
(35 |
) |
Interest expense |
|
(1,239 |
) |
|
|
(252 |
) |
|
|
(2,133 |
) |
|
|
(434 |
) |
Income before income taxes |
$ |
48,510 |
|
|
$ |
42,042 |
|
|
$ |
98,845 |
|
|
$ |
86,738 |
|
|
|
|
|
|
|
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|
BRADY CORPORATION AND SUBSIDIARIES |
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|
RECAST SEGMENT INFORMATION |
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|
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|
|
(Unaudited; Dollars in thousands) |
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The following table provides recast segment sales, sales growth
information, and segment profit for each of the quarters in the
six-month period ended January 31, 2023, and for the fiscal years
ended July 31, 2022 and 2021. This recast does not represent a
restatement of previously issued financial statements and does not
affect the Company's reported net income, earnings per share, total
assets or shareholders' equity for any of the previously reported
periods. |
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|
2023 |
|
2022 |
|
2021 |
|
Q1 |
|
Q2 |
|
Q1 |
|
Q2 |
|
Q3 |
|
Q4 |
|
Full Year |
|
Q1 |
|
Q2 |
|
Q3 |
|
Q4 |
|
Full Year |
NET SALES |
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|
|
|
|
|
|
Americas & Asia |
$ |
218,495 |
|
$ |
220,067 |
|
$ |
212,871 |
|
$ |
207,842 |
|
$ |
222,579 |
|
$ |
217,792 |
|
$ |
861,084 |
|
$ |
179,712 |
|
$ |
170,430 |
|
$ |
189,074 |
|
$ |
196,366 |
|
$ |
735,582 |
Europe & Australia |
|
104,074 |
|
|
106,182 |
|
|
108,604 |
|
|
110,213 |
|
|
115,972 |
|
|
106,189 |
|
|
440,978 |
|
|
97,515 |
|
|
95,408 |
|
|
106,429 |
|
|
109,764 |
|
|
409,116 |
Total |
$ |
322,569 |
|
$ |
326,249 |
|
$ |
321,475 |
|
$ |
318,055 |
|
$ |
338,551 |
|
$ |
323,981 |
|
$ |
1,302,062 |
|
$ |
277,227 |
|
$ |
265,838 |
|
$ |
295,503 |
|
$ |
306,130 |
|
$ |
1,144,698 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
SALES INFORMATION |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Americas & Asia |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Organic |
|
4.0% |
|
|
6.9% |
|
|
9.3% |
|
|
13.9% |
|
|
9.2% |
|
|
9.1% |
|
|
10.3% |
|
|
(7.9)% |
|
|
(7.3)% |
|
|
7.8% |
|
|
18.0% |
|
|
1.9% |
Currency |
|
(1.4)% |
|
|
(1.0)% |
|
|
0.9% |
|
|
0.0% |
|
|
(0.1)% |
|
|
(1.0)% |
|
|
(0.1)% |
|
|
(0.4)% |
|
|
0.1% |
|
|
1.1% |
|
|
1.9% |
|
|
0.6% |
Acquisition |
|
—% |
|
|
—% |
|
|
8.3% |
|
|
8.1% |
|
|
8.6% |
|
|
2.8% |
|
|
6.9% |
|
|
—% |
|
|
—% |
|
|
—% |
|
|
3.7% |
|
|
0.8% |
Total |
|
2.6% |
|
|
5.9% |
|
|
18.5% |
|
|
22.0% |
|
|
17.7% |
|
|
10.9% |
|
|
17.1% |
|
|
(8.3)% |
|
|
(7.2)% |
|
|
8.9% |
|
|
23.6% |
|
|
3.3% |
Europe & Australia |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Organic |
|
12.8% |
|
|
5.2% |
|
|
2.6% |
|
|
11.7% |
|
|
8.5% |
|
|
8.8% |
|
|
7.9% |
|
|
1.5% |
|
|
(4.4)% |
|
|
4.2% |
|
|
3.2% |
|
|
1.1% |
Currency |
|
(17.0)% |
|
|
(8.9)% |
|
|
0.6% |
|
|
(5.8)% |
|
|
(8.2)% |
|
|
(13.9)% |
|
|
(7.0)% |
|
|
5.6% |
|
|
7.0% |
|
|
11.0% |
|
|
8.6% |
|
|
8.1% |
Acquisition |
|
—% |
|
|
—% |
|
|
8.2% |
|
|
9.6% |
|
|
8.7% |
|
|
1.8% |
|
|
6.9% |
|
|
—% |
|
|
—% |
|
|
—% |
|
|
6.3% |
|
|
1.6% |
Total |
|
(4.2)% |
|
|
(3.7)% |
|
|
11.4% |
|
|
15.5% |
|
|
9.0% |
|
|
(3.3)% |
|
|
7.8% |
|
|
7.1% |
|
|
2.6% |
|
|
15.2% |
|
|
18.1% |
|
|
10.8% |
Total Company |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Organic |
|
6.9% |
|
|
6.3% |
|
|
7.0% |
|
|
13.1% |
|
|
9.0% |
|
|
9.0% |
|
|
9.4% |
|
|
(4.9)% |
|
|
(6.3)% |
|
|
6.5% |
|
|
12.6% |
|
|
1.6% |
Currency |
|
(6.6)% |
|
|
(3.7)% |
|
|
0.7% |
|
|
(2.1)% |
|
|
(3.0)% |
|
|
(5.7)% |
|
|
(2.6)% |
|
|
1.5% |
|
|
2.4% |
|
|
4.6% |
|
|
4.3% |
|
|
3.2% |
Acquisition |
|
—% |
|
|
—% |
|
|
8.3% |
|
|
8.6% |
|
|
8.6% |
|
|
2.5% |
|
|
6.9% |
|
|
—% |
|
|
—% |
|
|
—% |
|
|
4.7% |
|
|
1.1% |
Total |
|
0.3% |
|
|
2.6% |
|
|
16.0% |
|
|
19.6% |
|
|
14.6% |
|
|
5.8% |
|
|
13.7% |
|
|
(3.4)% |
|
|
(3.9)% |
|
|
11.1% |
|
|
21.6% |
|
|
5.9% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
SEGMENT PROFIT |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Americas & Asia |
$ |
41,145 |
|
$ |
40,174 |
|
$ |
37,307 |
|
$ |
32,331 |
|
$ |
45,021 |
|
$ |
42,648 |
|
$ |
157,307 |
|
$ |
35,939 |
|
$ |
30,558 |
|
$ |
37,309 |
|
$ |
32,829 |
|
$ |
136,635 |
Europe & Australia |
|
16,758 |
|
|
13,459 |
|
|
13,802 |
|
|
16,313 |
|
|
16,050 |
|
|
16,893 |
|
|
63,058 |
|
|
12,328 |
|
|
11,905 |
|
|
15,886 |
|
|
15,238 |
|
|
55,357 |
Total |
$ |
57,903 |
|
$ |
53,633 |
|
$ |
51,109 |
|
$ |
48,644 |
|
$ |
61,071 |
|
$ |
59,541 |
|
$ |
220,365 |
|
$ |
48,267 |
|
$ |
42,463 |
|
$ |
53,195 |
|
$ |
48,067 |
|
$ |
191,992 |
SEGMENT PROFIT AS A PERCENT OF NET SALES |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Americas & Asia |
|
18.8% |
|
|
18.3% |
|
|
17.5% |
|
|
15.6% |
|
|
20.2% |
|
|
19.6% |
|
|
18.3% |
|
|
20.0% |
|
|
17.9% |
|
|
19.7% |
|
|
16.7% |
|
|
18.6% |
Europe & Australia |
|
16.1% |
|
|
12.7% |
|
|
12.7% |
|
|
14.8% |
|
|
13.8% |
|
|
15.9% |
|
|
14.3% |
|
|
12.6% |
|
|
12.5% |
|
|
14.9% |
|
|
13.9% |
|
|
13.5% |
Total |
|
18.0% |
|
|
16.4% |
|
|
15.9% |
|
|
15.3% |
|
|
18.0% |
|
|
18.4% |
|
|
16.9% |
|
|
17.4% |
|
|
16.0% |
|
|
18.0% |
|
|
15.7% |
|
|
16.8% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2023 |
|
2022 |
|
2021 |
|
Q1 |
|
Q2 |
|
Q1 |
|
Q2 |
|
Q3 |
|
Q4 |
|
Full Year |
|
Q1 |
|
Q2 |
|
Q3 |
|
Q4 |
|
Full Year |
Total segment profit |
$ |
57,903 |
|
$ |
53,633 |
|
$ |
51,109 |
|
$ |
48,644 |
|
$ |
61,071 |
|
$ |
59,541 |
|
$ |
220,365 |
|
$ |
48,267 |
|
$ |
42,463 |
|
$ |
53,195 |
|
$ |
48,067 |
|
$ |
191,992 |
Unallocated amounts: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Administrative costs |
|
(6,517) |
|
|
(4,852) |
|
|
(6,774) |
|
|
(5,772) |
|
|
(8,182) |
|
|
(6,625) |
|
|
(27,353) |
|
|
(6,079) |
|
|
(5,051) |
|
|
(6,470) |
|
|
(7,265) |
|
|
(24,865) |
Investment and other (expense) income |
|
(157) |
|
|
968 |
|
|
543 |
|
|
(578) |
|
|
(1,308) |
|
|
1,587 |
|
|
244 |
|
|
155 |
|
|
2,036 |
|
|
1,181 |
|
|
961 |
|
|
4,333 |
Interest expense |
|
(894) |
|
|
(1,239) |
|
|
(182) |
|
|
(252) |
|
|
(329) |
|
|
(513) |
|
|
(1,276) |
|
|
(106) |
|
|
(51) |
|
|
(131) |
|
|
(149) |
|
|
(437) |
Income before income taxes and losses of unconsolidated
affiliate |
$ |
50,335 |
|
$ |
48,510 |
|
$ |
44,696 |
|
$ |
42,042 |
|
$ |
51,252 |
|
$ |
53,990 |
|
$ |
191,980 |
|
$ |
42,237 |
|
$ |
39,397 |
|
$ |
47,775 |
|
$ |
41,614 |
|
$ |
171,023 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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|
For More Information:Investor contact: Ann Thornton
414-438-6887Media contact: Kate Venne 414-358-5176
Brady (NYSE:BRC)
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From Oct 2023 to Oct 2024