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Brady Corporation (BRC) ("Brady" or "Company"), a world leader in
identification solutions, today reported its financial results for the
fiscal 2012 fourth quarter ended July 31, 2012. The Company also
announced that its Board of Directors authorized a share buyback program
for up to two million shares of the Company’s Class A Common Stock.
Quarter Ended July 31, 2012 Financial Results:
Sales for the fiscal 2012 fourth quarter ended July 31, 2012 were down
6.0 percent to $322.5 million compared to $343.1 million in the fourth
quarter of fiscal 2011. Organic sales were down 2.6 percent, the impact
of foreign currency translation decreased sales by 5.0 percent, and
acquisitions added 1.6 percent. By segment, organic sales increased 3.0
percent in the Americas and 0.6 percent in EMEA, and decreased 14.6
percent in the Asia-Pacific region.
Net income in the fiscal 2012 fourth quarter was down 60.6 percent to
$11.7 million compared to $29.6 million in the same quarter last year.
Excluding $7.1 million of after-tax restructuring charges in the fourth
quarter of fiscal 2012 and $1.6 million of after-tax restructuring
charges in the same quarter last year, and a $5.6 million non-routine,
non-cash tax charge in the fourth quarter of fiscal 2012, net income was
down 21.7 percent to $24.4 million compared to $31.1 million in the same
quarter last year.
Earnings per diluted Class A Common Share were down 60.0 percent to
$0.22 in the fourth quarter of fiscal 2012 compared to $0.55 in the same
quarter last year. Excluding the impacts from the after-tax
restructuring charges and the non-routine tax charge, earnings per
diluted Class A Common Share were down 19.0 percent to $0.47 in the
fourth quarter of fiscal 2012, compared to $0.58 per share in the same
quarter of fiscal 2011.
Year Ended July 31, 2012 Financial Results:
Sales for the year ended July 31, 2012 were down 1.1 percent to $1.32
billion compared to $1.34 billion for the year ended July 31, 2011.
Organic sales were down 0.4 percent; acquisitions, net of divestitures
increased sales by 0.3 percent; and the impact of foreign currency
translation decreased sales by 1.0 percent. By segment, organic sales
increased 3.4 percent in the Americas, and decreased 1.3 percent in EMEA
and 5.3 percent in the Asia-Pacific region.
Net loss for the year ended July 31, 2012 was $17.9 million compared to
net income of $108.7 million for the year ended July 31, 2011. Excluding
the impact of the $115.7 million non-cash goodwill impairment charge
incurred in fiscal 2012, after-tax restructuring charges of $9.6 million
in fiscal 2012 and $6.5 million in fiscal 2011, and the $5.6 million
non-routine tax charge in fiscal 2012, net income was down 1.9 percent
to $113.0 million compared to $115.2 million in fiscal 2011.
The Company’s loss per diluted Class A Common Share was $0.35 for the
year ended July 31, 2012 compared to earnings per diluted Class A Common
Share of $2.04 for the year ended July 31, 2011. Excluding the impacts
from the non-cash goodwill impairment charge, the after-tax
restructuring charges, and the non-routine tax charge, earnings per
diluted Class A Common Share were $2.14 for the year ended July 31, 2012
compared to $2.16 in fiscal 2011. In fiscal 2012, net cash provided by
operating activities was $144.7 million.
Share Buyback Program:
On September 6, 2012, Brady’s Board of Directors authorized a share
buyback program for up to two million shares of the Company’s common
stock. The share buyback plan may be implemented from time to time on
the open market or in privately negotiated transactions.
Commentary and Guidance:
"In the fourth quarter of fiscal 2012 we were pleased with our organic
sales growth in the Americas and EMEA regions, despite a continued
challenging economy. Our performance in Asia-Pacific was weaker than
expected due to increased market competitiveness, particularly in the
mobile handset industry. Throughout fiscal 2012, our focus has been on
shifting resources to our highest growth opportunities. As a result, we
have recently sold our medical die-cut business in the U.S. and our
paper-label business, Etimark in Germany. We also continued to invest in
developing and launching a number of proprietary new products and we
made three acquisitions in EMEA that increased our market share and
expanded our geographic presence," said Brady’s President and Chief
Executive Officer, Frank M. Jaehnert. "Looking forward, we expect
continued moderate organic growth in the Americas, a challenging
economic environment in Europe, and improving results in Asia-Pacific
due to our restructuring activities and some recent customer wins there."
"As we look to fiscal 2013, we see limited likelihood that the
macro-economy will provide a tailwind," said Brady’s Chief Financial
Officer, Thomas J. Felmer. "As such, we anticipate low single-digit
organic growth in fiscal 2013, with all of the growth driven by our
initiatives. For fiscal 2013, we expect earnings per diluted Class A
Common Share of between $2.20 and $2.40, exclusive of after-tax
restructuring charges. This guidance is based on current exchange rates,
a share count consistent with that as of July 31, 2012, a full-year
income tax rate in the mid-to-upper 20 percent range, capital
expenditures of approximately $35 million and depreciation and
amortization of approximately $45 million."
A webcast regarding Brady’s fiscal 2012 fourth quarter financial results
will be available at www.bradycorp.com
beginning at 9:30 a.m. Central Time today.
Brady Corporation is an international manufacturer and marketer of
complete solutions that identify and protect premises, products and
people. Brady’s products help customers increase safety, security,
productivity and performance and include high-performance labels and
signs, safety devices, printing systems and software, and precision
die-cut materials. Founded in 1914, the company has millions of
customers in electronics, telecommunications, manufacturing, electrical,
construction, education, medical and a variety of other industries.
Brady is headquartered in Milwaukee, Wisconsin and as of July 31, 2012
employed approximately 6,900 people at operations in the Americas, EMEA
and Asia-Pacific. Brady’s fiscal 2012 sales were approximately $1.32
billion. Brady stock trades on the New York Stock Exchange under the
symbol BRC. More information is available on the Internet at www.bradycorp.com.
Brady believes that certain statements in this news release are
"forward-looking statements" within the meaning of the Private
Securities Litigation Reform Act of 1995. All statements related to
future, not past, events included in this news release, including,
without limitation, statements regarding Brady’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 are forward-looking
statements. When used in this news release, words such as "may," "will,"
"expect," "intend," "estimate," "anticipate," "believe," "should,"
"project" 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 the length or severity
of the current worldwide economic downturn or timing or strength of a
subsequent recovery; future financial performance of major markets Brady
serves, which include, without limitation, telecommunications,
manufacturing, electrical, construction, laboratory, education,
governmental, public utility, computer, transportation; difficulties in
making and integrating acquisitions; risks associated with newly
acquired businesses; Brady’s ability to develop and successfully market
new products; changes in the supply of, or price for, parts and
components; increased price pressure from suppliers and customers;
fluctuations in currency rates versus the US dollar; unforeseen tax
consequences; potential write-offs of Brady’s substantial intangible
assets; Brady’s ability to retain significant contracts and customers;
risks associated with international operations; Brady’s ability to
maintain compliance with its debt covenants; technology changes;
business interruptions due to implementing business systems;
environmental, health and safety compliance costs and liabilities;
future competition; interruptions to sources of supply; Brady’s ability
to realize cost savings from operating initiatives; difficulties
associated with exports; risks associated with restructuring plans;
risks associated with obtaining governmental approvals and maintaining
regulatory compliance; and numerous other matters of national, regional
and global scale, including 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 located
in Item 1A of Part I of Brady’s Form 10-K for the year ended July 31,
2011. 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.
BRADY CORPORATION AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
(Dollars in Thousands, Except Per Share Amounts)
(Unaudited)
---------------------------------------------------------------------------------------------
Three Months Ended July 31, Twelve Months Ended July 31,
---------------------------------------------- ----------------------------------------------
Percentage Percentage
2012 2011 Change 2012 2011 Change
------------ ------------ ----------- ------------- ------------- -----------
Net sales $ 322,548 $ 343,104 -6.0 % $ 1,324,269 $ 1,339,597 -1.1 %
Cost of products sold 167,425 178,068 -6.0 % 687,963 683,401 0.7 %
------- ------- --------- ---------
Gross margin 155,123 165,036 -6.0 % 636,306 656,196 -3.0 %
Operating expenses:
Research and development 9,719 10,775 -9.8 % 38,440 43,001 -10.6 %
Selling, general and administrative 109,821 109,421 0.4 % 430,310 441,815 -2.6 %
Restructuring charges 8,670 2,202 293.7 % 12,110 9,188 31.8 %
Impairment charge - - N/A 115,688 - N/A
------- ------- --------- ---------
Total operating expenses 128,210 122,398 4.7 % 596,548 494,004 20.8 %
Operating income 26,913 42,638 -36.9 % 39,758 162,192 -75.5 %
Other income and (expense):
Investment and other income 362 1,098 -67.0 % 2,082 3,990 -47.8 %
Interest expense (4,375 ) (5,484 ) -20.2 % (19,090 ) (22,124 ) -13.7 %
------- --- ------- --- --------- -- --------- --
Income before income taxes 22,900 38,252 -40.1 % 22,750 144,058 -84.2 %
Income taxes 11,241 8,669 29.7 % 40,661 35,406 14.8 %
------- ------- --------- ---------
Net income (loss) $ 11,659 $ 29,583 -60.6 % $ (17,911 ) $ 108,652 -116.5 %
======= ======= ========= == =========
Per Class A Nonvoting Common Share:
Basic net income (loss) $ 0.22 $ 0.56 -60.7 % $ (0.35 ) $ 2.06 -117.0 %
Diluted net income (loss) $ 0.22 $ 0.55 -60.0 % $ (0.35 ) $ 2.04 -117.2 %
Dividends $ 0.185 $ 0.18 2.8 % $ 0.74 $ 0.72 2.8 %
Per Class B Voting Common Share:
Basic net income (loss) $ 0.22 $ 0.56 -60.7 % $ (0.36 ) $ 2.04 -117.6 %
Diluted net income (loss) $ 0.22 $ 0.55 -60.0 % $ (0.36 ) $ 2.03 -117.7 %
Dividends $ 0.185 $ 0.18 2.8 % $ 0.723 $ 0.70 2.8 %
Weighted average common shares outstanding (in thousands):
Basic 52,196 52,815 52,453 52,639
Diluted 52,448 53,333 52,453 53,133
BRADY CORPORATION AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
(Dollars in Thousands)
(Unaudited)
-------------------------------
July 31, 2012 July 31, 2011
------------ ------------
ASSETS
-------------------------------------------------------------------
Current assets:
Cash and cash equivalents $ 305,900 $ 389,971
Accounts receivable - net 199,006 228,483
Inventories:
Finished products 64,740 62,152
Work-in-process 15,377 14,550
Raw materials and supplies 25,407 27,484
--------- ---------
Total inventories 105,524 104,186
Prepaid expenses and other current assets 40,424 35,647
--------- ---------
Total current assets 650,854 758,287
Other assets:
Goodwill 676,791 800,343
Other intangible assets 84,119 89,961
Deferred income taxes 45,356 53,755
Other 20,584 19,244
Property, plant and equipment:
Cost:
Land 8,651 6,406
Buildings and improvements 101,962 104,644
Machinery and equipment 292,130 305,557
Construction in progress 10,417 11,226
--------- ---------
413,160 427,833
Less accumulated depreciation 283,145 287,918
--------- ---------
Property, plant and equipment - net 130,015 139,915
--------- ---------
Total $ 1,607,719 $ 1,861,505
========= =========
LIABILITIES AND STOCKHOLDERS’ INVESTMENT
-------------------------------------------------------------------
Current liabilities:
Accounts payable $ 86,646 $ 98,847
Wages and amounts withheld from employees 54,629 69,798
Taxes, other than income taxes 9,307 7,612
Accrued income taxes 14,357 9,954
Other current liabilities 40,815 54,406
Current maturities on long-term debt 61,264 61,264
--------- ---------
Total current liabilities 267,018 301,881
Long-term obligations, less current maturities 254,944 331,914
Other liabilities 76,404 71,518
--------- ---------
Total liabilities 598,366 705,313
Stockholders’ investment:
Common stock:
Class A nonvoting common stock - Issued 51,261,487 and 51,261,487
shares, respectively
and outstanding 47,630,926 and 49,284,252 shares, respectively 513 513
Class B voting common stock - Issued and outstanding, 3,538,628 35 35
shares
Additional paid-in capital 313,008 307,527
Income retained in the business 732,290 789,100
Treasury stock - 3,320,561 and 1,667,235 shares, respectively of (92,600 ) (50,017 )
Class A nonvoting common stock, at cost
Accumulated other comprehensive income 59,411 113,898
Other (3,304 ) (4,864 )
--------- --- --------- ---
Total stockholders’ investment 1,009,353 1,156,192
--------- ---------
Total $ 1,607,719 $ 1,861,505
========= =========
BRADY CORPORATION AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(Dollars in Thousands) (Unaudited)
Twelve Months Ended
July 31,
2012 2011
------------- ------------
Operating activities:
Net (loss) income $ (17,911 ) $ 108,652
Adjustments to reconcile net income to net cash provided by
operating activities:
Depreciation and amortization 43,987 48,827
Non-cash portion of restructuring charges 458 2,155
Non-cash portion of stock-based compensation expense 9,735 9,830
Impairment charge 115,688 -
Loss (gain) on divestiture of business 204 (4,394 )
Deferred income taxes (9,679 ) (8,161 )
Changes in operating assets and liabilities
(net of effects of business acquisitions/divestitures):
Accounts receivable 18,089 7,680
Inventories (7,674 ) (2,886 )
Prepaid expenses and other assets (2,744 ) 5,624
Accounts payable and accrued liabilities (29,370 ) (3,365 )
Income taxes 23,922 3,388
-------- -------
Net cash provided by operating activities 144,705 167,350
Investing activities:
Purchases of property, plant and equipment (24,147 ) (20,532 )
Payments of contingent consideration (2,580 ) (1,528 )
Settlement of net investment hedges (797 ) (5,542 )
Acquisition of business, net of cash acquired (37,649 ) (7,970 )
Divestiture of business, net of cash retained in business 856 12,980
Other (287 ) (39 )
-------- --- ------- ---
Net cash used in investing activities (64,604 ) (22,631 )
Financing activities:
Payment of dividends (38,899 ) (38,064 )
Proceeds from issuance of common stock 3,864 8,193
Purchase of treasury stock (49,933 ) -
Principal payments on debt (62,687 ) (61,264 )
Debt issuance costs (961 ) -
Income tax benefit from the exercise of stock options and deferred
compensation distribution, and other 792 (439 )
-------- ------- ---
Net cash used in financing activities (147,824 ) (91,574 )
Effect of exchange rate changes on cash (16,348 ) 21,986
Net (decrease) increase in cash and cash equivalents (84,071 ) 75,131
Cash and cash equivalents, beginning of period 389,971 314,840
-------- -------
Cash and cash equivalents, end of period $ 305,900 $ 389,971
======== =======
Supplemental disclosures:
Cash paid during the period for:
Interest, net of capitalized interest $ 19,194 $ 21,298
Income taxes, net of refunds 35,292 35,851
Acquisitions:
Fair value of assets acquired, net of cash $ 23,792 $ 4,624
Liabilities assumed (8,987 ) (1,446 )
Goodwill 22,844 4,792
-------- -------
Net cash paid for acquisitions $ 37,649 $ 7,970
======== =======
Information by regional segment for the three and twelve months
ended July 31, 2012 and 2011 is as follows:
Corporate
Asia- Total and
(in thousands) Americas EMEA Pacific Region Eliminations Total
---------------------------------------- -------------- -------------- ------------- ------------- -------------- ---------------
SALES TO EXTERNAL CUSTOMERS
----------------------------------------
Three months ended:
----------------------------------------
July 31, 2012 $147,028 $98,270 $77,250 $322,548 - $322,548
---------------------------------------- -------- -------- -------- ---------- --------- ----------
July 31, 2011 $146,212 $102,970 $93,922 $343,104 - $343,104
---------------------------------------- -------- -------- -------- ---------- --------- ----------
July 31, 2010 $148,929 $91,020 $82,945 $322,894 - $322,894
---------------------------------------- -------- -------- -------- ---------- --------- ----------
Twelve months ended:
----------------------------------------
July 31, 2012 $589,925 $389,156 $345,188 $1,324,269 - $1,324,269
---------------------------------------- -------- -------- -------- ---------- --------- ----------
July 31, 2011 $577,428 $404,955 $357,214 $1,339,597 - $1,339,597
---------------------------------------- -------- -------- -------- ---------- --------- ----------
July 31, 2010 $551,185 $380,121 $327,790 $1,259,096 - $1,259,096
---------------------------------------- -------- -------- -------- ---------- --------- ----------
SALES INFORMATION
----------------------------------------
Three months ended July 31, 2012:
----------------------------------------
Base 3.0 % 0.6 % -14.6 % -2.6 % - -2.6 %
---------------------------------------- -------- ---- -------- ---- -------- --- ---------- - --------- ---------- ---
Currency -2.4 % -10.7 % -3.2 % -5.0 % - -5.0 %
---------------------------------------- -------- ---- -------- ---- -------- --- ---------- - --------- ---------- ---
Acquisitions/Divestitures 0.0 % 5.5 % 0.0 % 1.6 % - 1.6 %
---------------------------------------- -------- ---- -------- ---- -------- --- ---------- - --------- ---------- ---
Total 0.6 % -4.6 % -17.8 % -6.0 % - -6.0 %
---------------------------------------- -------- ---- -------- ---- -------- --- ---------- - --------- ---------- ---
Twelve months ended July 31, 2012:
----------------------------------------
Base 3.4 % -1.3 % -5.3 % -0.4 % - -0.4 %
---------------------------------------- -------- ---- -------- ---- -------- --- ---------- - --------- ---------- ---
Currency -0.9 % -3.5 % 1.4 % -1.0 % - -1.0 %
---------------------------------------- -------- ---- -------- ---- -------- --- ---------- - --------- ---------- ---
Acquisitions/Divestitures -0.3 % 0.9 % 0.5 % 0.3 % - 0.3 %
---------------------------------------- -------- ---- -------- ---- -------- --- ---------- - --------- ---------- ---
Total 2.2 % -3.9 % -3.4 % -1.1 % - -1.1 %
---------------------------------------- -------- ---- -------- ---- -------- --- ---------- - --------- ---------- ---
SEGMENT PROFIT
----------------------------------------
Three months ended:
----------------------------------------
July 31, 2012 $37,743 $27,211 $4,069 $69,023 ($1,318 ) $67,705
---------------------------------------- -------- -------- -------- ---------- --------- --- ----------
July 31, 2011 $36,850 $29,882 $11,775 $78,507 ($3,655 ) $74,852
---------------------------------------- -------- -------- -------- ---------- --------- --- ----------
Percentage change 2.4 % -8.9 % -65.4 % -12.1 % -9.5 %
---------------------------------------- -------- ---- -------- ---- -------- --- ---------- - ---------- ---
Twelve months ended:
----------------------------------------
July 31, 2012 $155,657 $105,643 $31,704 $293,004 ($7,328 ) $285,676
---------------------------------------- -------- -------- -------- ---------- --------- --- ----------
July 31, 2011 $145,516 $112,047 $50,105 $307,668 ($15,742 ) $291,926
---------------------------------------- -------- -------- -------- ---------- --------- --- ----------
Percentage change 7.0 % -5.7 % -36.7 % -4.8 % -2.1 %
---------------------------------------- -------- ---- -------- ---- -------- --- ---------- - ---------- ---
NET INCOME RECONCILIATION (in thousands)
----------------------------------------
Three months ended: Twelve months ended:
----------------------------- ----------------------------
July 31, 2012 July 31, 2011 July 31, 2012 July 31, 2011
-------------- -------------- ------------- --------------
Total profit for reportable segments $69,023 $78,507 $293,004 $307,668
---------------------------------------- -------- -------- ---------- ---------
Corporate and eliminations (1,318 ) (3,655 ) (7,328 ) (15,742 )
---------------------------------------- -------- ---- -------- ---- ---------- - --------- ---
Unallocated amounts:
----------------------------------------
Administrative costs (32,122 ) (30,012 ) (118,120 ) (120,546 )
---------------------------------------- -------- ---- -------- ---- ---------- - --------- ---
Restructuring charges (8,670 ) (2,202 ) (12,110 ) (9,188 )
---------------------------------------- -------- ---- -------- ---- ---------- - --------- ---
Impairment charge - - (115,688 ) -
---------------------------------------- -------- -------- ---------- - ---------
Investment and other income 362 1,098 2,082 3,990
---------------------------------------- -------- -------- ---------- ---------
Interest expense (4,375 ) (5,484 ) (19,090 ) (22,124 )
---------------------------------------- -------- ---- -------- ---- ---------- - --------- ---
Income before income taxes 22,900 38,252 22,750 144,058
---------------------------------------- -------- -------- ---------- ---------
Income taxes (11,241 ) (8,669 ) (40,661 ) (35,406 )
---------------------------------------- -------- ---- -------- ---- ---------- - --------- ---
Net income (loss) $ 11,659 $ 29,583 $ (17,911 ) $ 108,652
---------------------------------------- ======== ======== ========== = =========
NON-GAAP MEASURES
(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.
EBITDA:
Brady is presenting EBITDA because it is used by many of our
investors and lenders, and is presented as a convenience to them.
EBITDA represents net income before interest expense, income taxes,
depreciation and amortization and non-cash impairment charges.
EBITDA is not a calculation based on generally accepted accounting
principles ("GAAP"). The amounts included in the EBITDA calculation,
however, are derived from amounts included in the Condensed
Consolidated Statements of Income data. EBITDA should not be
considered as an alternative to net income or operating income as an
indicator of the Company’s operating performance, or as an
alternative to operating cash flows as a measure of liquidity. The
EBITDA measure presented may not always be comparable to similarly
titled measures reported by other companies due to differences in
the components of the calculation.
Fiscal 2012
-------------------------------------------------------
Q1 Q2 Q3 Q4 Total
------- --------- ------- ------- ---------
EBITDA:
Net income (loss) $ 32,732 $ (89,954 ) $ 27,652 $ 11,659 $ (17,911 )
Interest expense 5,047 4,933 4,735 4,375 19,090
Income taxes 11,109 8,635 9,676 11,241 40,661
Depreciation and amortization 11,241 10,935 10,745 11,066 43,987
Impairment charge - 115,688 - - 115,688
------ ------- ------ ------ -------
EBITDA (non-GAAP measure) $ 60,129 $ 50,237 $ 52,808 $ 38,341 $ 201,515
= ====== = ======= = ====== = ====== = =======
Fiscal 2011
-------------------------------------------------------
Q1 Q2 Q3 Q4 Total
------- --------- ------- ------- ---------
EBITDA:
Net income $ 26,281 $ 24,199 $ 28,589 $ 29,583 $ 108,652
Interest expense 5,687 5,850 5,103 5,484 22,124
Income taxes 9,925 8,205 8,607 8,669 35,406
Depreciation and amortization 12,594 12,908 12,020 11,305 48,827
------ ------- ------ ------ -------
EBITDA (non-GAAP measure) $ 54,487 $ 51,162 $ 54,319 $ 55,041 $ 215,009
= ====== = ======= = ====== = ====== = =======
Diluted Earnings Per Share Excluding Impairment, Restructuring, &
Non-Routine Tax Charge:
This is a measure of the Company’s diluted net earnings per share
excluding the current year Asia non-cash goodwill impairment charge,
current and prior year restructuring charges, and current year
non-routine non-cash tax charges related to an internal
reorganization. We do not view these items to be part of our
sustainable results. We believe this earnings per share measure
provides an important perspective of underlying business trends and
results and provides a more comparable measure of year-on-year
earnings per share growth. The table below provides a reconciliation
of diluted net earnings per share to diluted earnings per share
excluding the impairment charge, restructuring charges, and
non-routine tax charge:
Three Months Ended July 31, Twelve Months Ended July 31,
---------------------------- -----------------------------
2012 2011 2012 2011
------------ --------------- ---------------- ------------
Diluted Earnings (Loss) per Share $ 0.22 $ 0.55 $ (0.34 ) $ 2.04
Non-Cash Goodwill Impairment - - 2.19 -
Restructuring Charges 0.14 0.03 0.18 0.12
Non-Routine, Non-Cash Tax Charge 0.11 - 0.11 -
Diluted Earnings per Share Excluding
Impairment, Restructuring Charges,
& Non-Routine Tax Charge $ 0.47 $ 0.58 $ 2.14 $ 2.16
===== ===== ===== ======== ==== ===== ==== ======
All reconciling items are presented net of tax. Tax effects are
calculated consistent with the nature of the underlying transaction.
Diluted loss per share and all reconciling items for the twelve
months ended July 31, 2012, are presented using total diluted shares
of 52,821 for the period.
Net Income Excluding Impairment, Restructuring, & Non-Routine Tax
Charge:
This is a measure of the Company’s net income excluding the current
year Asia non-cash goodwill impairment charge, current and prior
year restructuring charges, and current year non-routine non-cash
tax charges related to an internal reorganization. We do not view
these items to be part of our sustainable results. We believe this
net income measure provides an important perspective of underlying
business trends and results and provides a more comparable measure
of year-on-year net income growth. The table below provides a
reconciliation of net income to net income excluding the impairment
charge, restructuring charges, and non-routine tax charge:
Three Months Ended July 31, Twelve Months Ended July 31,
--------------------------- --------------------------------
2012 2011 2012 2011
------------- ------------- ------------------ -------------
Net Income (Loss) $ 11,659 $ 29,583 $ (17,911 ) $ 108,652
Non-Cash Goodwill Impairment - - 115,688 -
Restructuring Charges 7,109 1,563 9,567 6,523
Non-Routine, Non-Cash Tax Charge 5,616 - 5,616 -
Net Income Excluding
Impairment, Restructuring Charges,
& Non-Routine Tax Charge $ 24,384 $ 31,146 $ 112,960 $ 115,175
===== ====== ===== ====== ==== ======= ==== =======
All reconciling items are presented net of tax. Tax effects are
calculated consistent with the nature of the underlying
transaction.
SOURCE: Brady Corporation
Brady Corporation
Investor contact:
Aaron Pearce, 414-438-6895
or
Media contact:
Carole Herbstreit, 414-438-6882
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