Brady Corporation Provides Recast Historical Data for new

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MILWAUKEE, Feb. 24, 2023 (GLOBE NEWSWIRE) -- 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)
        
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.
        
        
        
 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       
Americas & Asia       
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%
        
SEGMENT PROFIT       
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%
        
        
 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:       
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 
        


BRADY CORPORATION AND SUBSIDIARIES          
RECAST SEGMENT INFORMATION          
(Unaudited; Dollars in thousands)          
                        
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.          
                        
 2023 2022 2021
 Q1 Q2 Q1 Q2 Q3 Q4 Full Year Q1 Q2 Q3 Q4 Full Year
NET SALES                       
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
                        

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


Brady Corporation Provides Recast Historical Data for new

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