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Brady Corporation Reports Record EPS in its Fiscal 2024 Third Quarter and Raises its Fiscal 2024 EPS Guidance

Brady Corporation
Brady Corporation
  • Sales for the quarter increased 1.9 percent compared to the same quarter of the prior year. Organic sales increased 4.5 percent, foreign currency decreased sales by 0.3 percent and divestitures decreased sales by 2.3 percent.

  • Diluted EPS increased 9.4 percent to a record high of $1.05 in the third quarter of fiscal 2024 compared to $0.96 in the same quarter of the prior year. Diluted EPS Excluding Certain Items* increased 14.7 percent to a record high of $1.09 in the third quarter of fiscal 2024 compared to $0.95 in the same quarter of the prior year.

  • Net cash provided by operating activities was $171.1 million in the nine months ended April 30, 2024 compared to $129.9 million in the nine months ended April 30, 2023.

  • Earnings per diluted Class A Common Share guidance was raised for the full year ending July 31, 2024 from the previous range of $3.80 to $3.95 to the new range of $3.93 to $4.00 on a GAAP basis, and was raised from the previous range of $3.95 to $4.10 to the new range of $4.08 to $4.15 on a non-GAAP basis.

MILWAUKEE, May 22, 2024 (GLOBE NEWSWIRE) -- Brady Corporation (NYSE: BRC) (“Brady” or “Company”), a world leader in identification solutions, today reported its financial results for its fiscal 2024 third quarter ended April 30, 2024.

Quarter Ended April 30, 2024 Financial Results:
Sales for the quarter ended April 30, 2024 increased 1.9 percent, which consisted of organic sales growth of 4.5 percent, a decrease of 0.3 percent from foreign currency translation and a decrease of 2.3 percent from divestitures. Sales for the quarter ended April 30, 2024 were $343.4 million compared to $337.1 million in the same quarter last year. By region, sales increased 0.9 percent in the Americas & Asia and increased 3.8 percent in Europe & Australia, which consisted of organic sales growth of 4.5 percent in the Americas & Asia and organic sales growth of 4.4 percent in Europe & Australia.

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Income before income taxes increased 2.2 percent to $64.4 million for the quarter ended April 30, 2024, compared to $63.0 million in the same quarter last year. Income Before Income Taxes Excluding Certain Items* for the quarter ended April 30, 2024, which was adjusted for amortization expense in both periods, and removes the $3.8 million pre-tax gain on a divestiture from the same quarter last year, was $66.8 million, an increase of 8.2 percent.

Net income for the quarter ended April 30, 2024 was $50.9 million compared to $48.1 million in the same quarter last year. Earnings per diluted Class A Nonvoting Common Share were $1.05 in the third quarter of fiscal 2024, compared to $0.96 in the same quarter last year. Net Income Excluding Certain Items* for the quarter ended April 30, 2024 was $52.7 million and Diluted EPS Excluding Certain Items* for the quarter ended April 30, 2024 was $1.09. Net Income Excluding Certain Items* for the quarter ended April 30, 2023 was $47.6 million and Diluted EPS Excluding Certain Items* for the quarter ended April 30, 2023 was $0.95.

Nine-Month Period Ended April 30, 2024 Financial Results:
Sales for the nine-month period ended April 30, 2024 increased 1.2 percent, which consisted of organic sales growth of 3.0 percent, an increase of 0.6 percent from foreign currency translation and a decrease of 2.4 percent from divestitures. Sales for the nine months ended April 30, 2024 were $998.0 million compared to $985.9 million in the same period last year. By region, sales decreased 0.5 percent in the Americas & Asia and increased 4.7 percent in Europe & Australia, which consisted of organic sales growth of 3.0 percent in the Americas & Asia and organic sales growth of 2.8 percent in Europe & Australia.

Income before income taxes increased 11.0 percent to $179.6 million for the nine-month period ended April 30, 2024, compared to $161.9 million in the same period last year. Income Before Income Taxes Excluding Certain Items* for the nine months ended April 30, 2024, which was adjusted for amortization expense in both periods and removes the $3.8 million pre-tax gain on a divestiture from the same period last year, was $186.7 million, an increase of 11.5 percent compared to the same period of the prior year.

Net income for the nine-month period ended April 30, 2024 was $141.8 million compared to $125.5 million in the same period last year. Earnings per diluted Class A Nonvoting Common Share were $2.91 for the nine months ended April 30, 2024, compared to $2.51 in the same period last year. Net Income Excluding Certain Items* for the nine months ended April 30, 2024 was $147.2 million and Diluted EPS Excluding Certain Items* for the nine months ended April 30, 2024 was $3.03. Net Income Excluding Certain Items* for the nine months ended April 30, 2023 was $130.3 million, and Diluted EPS Excluding Certain Items* for the nine months ended April 30, 2023 was $2.60.

Commentary:
“This quarter we reported all-time record high EPS and strong organic sales growth. Our ongoing investment in research and development continues to add value for our customers and increase organic sales. This quarter we launched several exciting new products that separate us from our competition and complement our current product offering. We remain focused on innovation and on our consistent priorities, which we believe will continue to drive future growth,” said Brady’s President and Chief Executive Officer, Russell R. Shaller. “Both regions performed extremely well this quarter and we are facilitating an increased pace of innovative new product development, which we believe positions us for future success.”

“In addition to our organic revenue growth of 4.5 percent and record EPS this quarter, we also used our strong balance sheet and cash generation to return funds to our shareholders in the form of share buybacks and dividends. This quarter, we repurchased a total of 863,365 shares for $50.4 million and we returned another $11.2 million to our shareholders in the form of dividends,” said Brady’s Chief Financial Officer, Ann Thornton. “Our balance sheet provides significant opportunities to invest in both organic opportunities and strategic acquisitions in order to drive long-term shareholder value.”

Fiscal 2024 Guidance:
The Company raised its GAAP earnings per diluted Class A Nonvoting Common Share guidance for the year ending July 31, 2024 from the previous guidance range of $3.80 to $3.95 per share to the new full year guidance range of $3.93 to $4.00 per share. The Company raised its Diluted EPS Excluding Certain Items* guidance for the year ending July 31, 2024 from the previous range of $3.95 to $4.10 per share to the new full year guidance range of $4.08 to $4.15 per share.

The assumptions included in fiscal 2024 guidance include a full-year income tax rate of approximately 21 percent and depreciation and amortization expense ranging from $30 million to $32 million. Capital expenditures are expected to approximate $75 million, which is inclusive of facility purchase and construction costs of approximately $55 million. Fiscal 2024 guidance is based on foreign currency exchange rates as of April 30, 2024 and assumes continued economic growth. Fiscal 2024 guidance does not include the Company’s pending acquisition of Gravotech Holding, which is expected to close by the end of its fiscal year ending July 31, 2024. Excluding acquisition-related costs, Brady expects the acquisition of Gravotech Holding to be immaterial to earnings per share in fiscal 2024.

A webcast regarding Brady’s fiscal 2024 third 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, 2023, employed approximately 5,600 people in its worldwide businesses. Brady’s fiscal 2023 sales were approximately $1.33 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 Certain Items, Net Income Excluding Certain Items, and Diluted EPS Excluding Certain Items 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,” “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 occurrence of any event, change or other circumstances that could give rise to the termination of the offer to acquire Gravotech; the expected timing and likelihood of completion of the proposed transaction with Gravotech, including the timing, receipt and terms and conditions of any required governmental and regulatory approvals of the offer that could reduce anticipated benefits or cause the parties to abandon the transaction; the risk that the proposed offer and its announcement could have an adverse effect on the ability of Brady and Gravotech to retain customers and retain and hire key personnel and maintain relationships with their suppliers and customers and on their operating results and businesses generally; increased cost of raw materials and labor as well as 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; difficulties in protecting our websites, networks, and systems against security breaches; Brady’s ability to identify, integrate, and grow acquired companies, and to manage contingent liabilities from divested businesses; 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; adverse impacts of regional epidemics or global pandemics; 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 and changes in the regulatory and business environment around dual-class voting structures; 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, 2023.

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.

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


 

 

 

 

 

 

 

 

BRADY CORPORATION AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF INCOME

(Unaudited; Dollars in thousands, except per share data)

 

 

 

 

 

 

 

 

 

Three months ended April 30,

 

Nine months ended April 30,

 

 

2024

 

 

 

2023

 

 

 

2024

 

 

 

2023

 

Net sales

$

343,384

 

 

$

337,116

 

 

$

997,991

 

 

$

985,934

 

Cost of goods sold

 

166,357

 

 

 

167,425

 

 

 

487,162

 

 

 

504,539

 

Gross margin

 

177,027

 

 

 

169,691

 

 

 

510,829

 

 

 

481,395

 

Operating expenses:

 

 

 

 

 

 

 

Research and development

 

17,681

 

 

 

15,715

 

 

 

50,215

 

 

 

45,025

 

Selling, general and administrative

 

95,803

 

 

 

90,975

 

 

 

283,415

 

 

 

273,202

 

Total operating expenses

 

113,484

 

 

 

106,690

 

 

 

333,630

 

 

 

318,227

 

 

 

 

 

 

 

 

 

Operating income

 

63,543

 

 

 

63,001

 

 

 

177,199

 

 

 

163,168

 

 

 

 

 

 

 

 

 

Other income (expense):

 

 

 

 

 

 

 

Investment and other income

 

1,596

 

 

 

785

 

 

 

4,718

 

 

 

1,596

 

Interest expense

 

(728

)

 

 

(753

)

 

 

(2,284

)

 

 

(2,886

)

 

 

 

 

 

 

 

 

Income before income taxes

 

64,411

 

 

 

63,033

 

 

 

179,633

 

 

 

161,878

 

 

 

 

 

 

 

 

 

Income tax expense

 

13,521

 

 

 

14,981

 

 

 

37,874

 

 

 

36,399

 

 

 

 

 

 

 

 

 

Net income

$

50,890

 

 

$

48,052

 

 

$

141,759

 

 

$

125,479

 

 

 

 

 

 

 

 

 

Net income per Class A Nonvoting Common Share:

 

 

 

 

 

 

 

Basic

$

1.06

 

 

$

0.97

 

 

$

2.94

 

 

$

2.52

 

Diluted

$

1.05

 

 

$

0.96

 

 

$

2.91

 

 

$

2.51

 

 

 

 

 

 

 

 

 

Net income per Class B Voting Common Share:

 

 

 

 

 

 

 

Basic

$

1.06

 

 

$

0.97

 

 

$

2.92

 

 

$

2.51

 

Diluted

$

1.05

 

 

$

0.96

 

 

$

2.90

 

 

$

2.49

 

 

 

 

 

 

 

 

 

Weighted average common shares outstanding:

 

 

 

 

 

 

 

Basic

 

48,004

 

 

 

49,653

 

 

 

48,294

 

 

 

49,755

 

Diluted

 

48,386

 

 

 

50,001

 

 

 

48,640

 

 

 

50,033

 

 

 

 

 

 

 

 

 


BRADY CORPORATION AND SUBSIDIARIES

CONSOLIDATED BALANCE SHEETS

(Dollars in thousands)

 

 

 

 

 

April 30, 2024

 

July 31, 2023

 

(Unaudited)

 

 

ASSETS

 

 

 

Current assets:

 

 

 

Cash and cash equivalents

$

160,458

 

 

$

151,532

 

Accounts receivable, net of allowance for credit losses of $6,690 and $8,467, respectively

 

195,099

 

 

 

184,420

 

Inventories

 

153,272

 

 

 

177,078

 

Prepaid expenses and other current assets

 

12,443

 

 

 

11,790

 

Total current assets

 

521,272

 

 

 

524,820

 

Property, plant and equipment—net

 

194,732

 

 

 

142,149

 

Goodwill

 

588,095

 

 

 

592,646

 

Other intangible assets

 

53,893

 

 

 

62,096

 

Deferred income taxes

 

14,881

 

 

 

15,716

 

Operating lease assets

 

27,438

 

 

 

29,688

 

Other assets

 

23,785

 

 

 

22,142

 

Total

$

1,424,096

 

 

$

1,389,257

 

LIABILITIES AND STOCKHOLDERS’ EQUITY

 

 

 

Current liabilities:

 

 

 

Accounts payable

$

79,965

 

 

$

79,855

 

Accrued compensation and benefits

 

73,697

 

 

 

71,470

 

Taxes, other than income taxes

 

14,462

 

 

 

13,575

 

Accrued income taxes

 

7,945

 

 

 

12,582

 

Current operating lease liabilities

 

12,230

 

 

 

14,726

 

Other current liabilities

 

64,850

 

 

 

65,828

 

Total current liabilities

 

253,149

 

 

 

258,036

 

Long-term debt

 

63,774

 

 

 

49,716

 

Long-term operating lease liabilities

 

15,552

 

 

 

16,217

 

Other liabilities

 

69,519

 

 

 

74,369

 

Total liabilities

 

401,994

 

 

 

398,338

 

Stockholders’ equity:

 

 

 

Common stock:

 

 

 

Class A nonvoting common stock—Issued 51,261,487 shares, and outstanding 43,941,713 and 45,008,724 shares, respectively

 

513

 

 

 

513

 

Class B voting common stock—Issued and outstanding, 3,538,628 shares

 

35

 

 

 

35

 

Additional paid-in capital

 

354,432

 

 

 

351,771

 

Retained earnings

 

1,129,739

 

 

 

1,021,870

 

Treasury stock—7,319,774 and 6,252,763 shares, respectively, of Class A nonvoting common stock, at cost

 

(356,210

)

 

 

(290,209

)

Accumulated other comprehensive loss

 

(106,407

)

 

 

(93,061

)

Total stockholders’ equity

 

1,022,102

 

 

 

990,919

 

Total

$

1,424,096

 

 

$

1,389,257

 

 

 

 

 


BRADY CORPORATION AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CASH FLOWS

(Unaudited; Dollars in thousands)

 

 

Nine months ended April 30,

 

 

2024

 

 

 

2023

 

Operating activities:

 

 

 

Net income

$

141,759

 

 

$

125,479

 

Adjustments to reconcile net income to net cash provided by operating activities:

 

 

 

Depreciation and amortization

 

22,406

 

 

 

24,522

 

Stock-based compensation expense

 

6,422

 

 

 

6,427

 

Gain on sale of business

 

 

 

 

(3,770

)

Deferred income taxes

 

(6,902

)

 

 

(5,947

)

Other

 

1,358

 

 

 

(1,336

)

Changes in operating assets and liabilities:

 

 

 

Accounts receivable

 

(15,915

)

 

 

1,744

 

Inventories

 

20,861

 

 

 

9,279

 

Prepaid expenses and other assets

 

(1,849

)

 

 

(3,429

)

Accounts payable and accrued liabilities

 

7,347

 

 

 

(19,704

)

Income taxes

 

(4,393

)

 

 

(3,404

)

    Net cash provided by operating activities

 

171,094

 

 

 

129,861

 

 

 

 

 

Investing activities:

 

 

 

Purchases of property, plant and equipment

 

(69,157

)

 

 

(12,912

)

Sale of business

 

 

 

 

8,000

 

Other

 

(1,174

)

 

 

11

 

    Net cash used in investing activities

 

(70,331

)

 

 

(4,901

)

 

 

 

 

Financing activities:

 

 

 

Payment of dividends

 

(33,890

)

 

 

(34,202

)

Proceeds from exercise of stock options

 

5,583

 

 

 

4,091

 

Payments for employee taxes withheld from stock-based awards

 

(2,664

)

 

 

(1,965

)

Purchase of treasury stock

 

(72,225

)

 

 

(29,774

)

Proceeds from borrowing on credit agreement

 

111,790

 

 

 

102,916

 

Repayment of borrowing on credit agreement

 

(97,732

)

 

 

(147,067

)

Other

 

149

 

 

 

66

 

    Net cash used in financing activities

 

(88,989

)

 

 

(105,935

)

 

 

 

 

Effect of exchange rate changes on cash and cash equivalents

 

(2,848

)

 

 

1,953

 

 

 

 

 

Net increase in cash and cash equivalents

 

8,926

 

 

 

20,978

 

Cash and cash equivalents, beginning of period

 

151,532

 

 

 

114,069

 

 

 

 

 

Cash and cash equivalents, end of period

$

160,458

 

 

$

135,047

 

 

 

 

 



BRADY CORPORATION AND SUBSIDIARIES

SEGMENT INFORMATION

(Unaudited; Dollars in thousands)

 

 

 

 

 

 

 

 

 

Three months ended April 30,

 

Nine months ended April 30,

 

 

2024

 

 

 

2023

 

 

 

2024

 

 

 

2023

 

NET SALES

 

 

 

 

 

 

 

Americas & Asia

$

224,766

 

 

$

222,813

 

 

$

658,035

 

 

$

661,375

 

Europe & Australia

 

118,618

 

 

 

114,303

 

 

 

339,956

 

 

 

324,559

 

Total

$

343,384

 

 

$

337,116

 

 

$

997,991

 

 

$

985,934

 

 

 

 

 

 

 

 

 

SALES INFORMATION

 

 

 

 

 

 

 

Americas & Asia

 

 

 

 

 

 

 

Organic

 

4.5

%

 

 

1.2

%

 

 

3.0

%

 

 

4.0

%

Currency

 

(0.1

)%

 

 

(0.8

)%

 

 

%

 

 

(1.1

)%

Divestiture

 

(3.5

)%

 

 

(0.3

)%

 

 

(3.5

)%

 

 

(0.1

)%

Total

 

0.9

%

 

 

0.1

%

 

 

(0.5

)%

 

 

2.8

%

Europe & Australia

 

 

 

 

 

 

 

Organic

 

4.4

%

 

 

3.4

%

 

 

2.8

%

 

 

7.0

%

Currency

 

(0.6

)%

 

 

(4.8

)%

 

 

1.9

%

 

 

(10.1

)%

Total

 

3.8

%

 

 

(1.4

)%

 

 

4.7

%

 

 

(3.1

)%

Total Company

 

 

 

 

 

 

 

Organic

 

4.5

%

 

 

1.9

%

 

 

3.0

%

 

 

5.0

%

Currency

 

(0.3

)%

 

 

(2.1

)%

 

 

0.6

%

 

 

(4.1

)%

Divestiture

 

(2.3

)%

 

 

(0.2

)%

 

 

(2.4

)%

 

 

(0.1

)%

Total

 

1.9

%

 

 

(0.4

)%

 

 

1.2

%

 

 

0.8

%

 

 

 

 

 

 

 

 

SEGMENT PROFIT

 

 

 

 

 

 

 

Americas & Asia

$

49,697

 

 

$

49,192

 

 

$

143,489

 

 

$

130,511

 

Europe & Australia

 

19,537

 

 

 

17,099

 

 

 

51,335

 

 

 

47,316

 

Total segment profit

$

69,234

 

 

$

66,291

 

 

$

194,824

 

 

$

177,827

 

SEGMENT PROFIT AS A PERCENT OF NET SALES

 

 

 

 

 

 

 

Americas & Asia

 

22.1

%

 

 

22.1

%

 

 

21.8

%

 

 

19.7

%

Europe & Australia

 

16.5

%

 

 

15.0

%

 

 

15.1

%

 

 

14.6

%

Total

 

20.2

%

 

 

19.7

%

 

 

19.5

%

 

 

18.0

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three months ended April 30,

 

Nine months ended April 30,

 

 

2024

 

 

 

2023

 

 

 

2024

 

 

 

2023

 

Total segment profit

$

69,234

 

 

$

66,291

 

 

$

194,824

 

 

$

177,827

 

Unallocated amounts:

 

 

 

 

 

 

 

Administrative costs

 

(5,691

)

 

 

(7,060

)

 

 

(17,625

)

 

 

(18,429

)

Gain on sale of business

 

-

 

 

 

3,770

 

 

 

-

 

 

 

3,770

 

Investment and other income

 

1,596

 

 

 

785

 

 

 

4,718

 

 

 

1,596

 

Interest expense

 

(728

)

 

 

(753

)

 

 

(2,284

)

 

 

(2,886

)

Income before income taxes

$

64,411

 

 

$

63,033

 

 

$

179,633

 

 

$

161,878

 

 

 

 

 

 

 

 

 



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 Certain Items:

Brady is presenting the non-GAAP measure, "Income Before Income Taxes Excluding Certain Items." 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 to the non-GAAP measure of Income Before Income Taxes Excluding Certain Items:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three months ended April 30,

 

Nine months ended April 30,

 

 

 

 

2024

 

 

 

2023

 

 

 

2024

 

 

 

2023

 

Income before income taxes

$

64,411

 

 

$

63,033

 

 

$

179,633

 

 

$

161,878

 

 

Amortization expense

 

 

2,365

 

 

 

2,461

 

 

 

7,084

 

 

 

9,350

 

 

Gain on sale of business

 

 

-

 

 

 

(3,770

)

 

 

-

 

 

 

(3,770

)

Income Before Income Taxes Excluding Certain Items (non-GAAP measure)

$

66,776

 

 

$

61,724

 

 

$

186,717

 

 

$

167,458

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Income Tax Expense Excluding Certain Items:

Brady is presenting the non-GAAP measure, "Income Tax Expense Excluding Certain Items." 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 Certain Items:

 

 

 

 

 

 

 

 

 

 

 

 

 

Three months ended April 30,

 

Nine months ended April 30,

 

 

 

 

2024

 

 

 

2023

 

 

 

2024

 

 

 

2023

 

Income tax expense (GAAP measure)

$

13,521

 

 

$

14,981

 

 

$

37,874

 

 

$

36,399

 

 

Amortization expense

 

 

548

 

 

 

569

 

 

 

1,642

 

 

 

2,203

 

 

Gain on sale of business

 

 

-

 

 

 

(1,431

)

 

 

-

 

 

 

(1,431

)

Income Tax Expense Excluding Certain Items (non-GAAP measure)

$

14,069

 

 

$

14,119

 

 

$

39,516

 

 

$

37,171

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net Income Excluding Certain Items:

Brady is presenting the non-GAAP measure, "Net Income Excluding Certain Items." 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 Certain Items:

 

 

 

 

 

 

 

 

 

 

 

 

 

Three months ended April 30,

 

Nine months ended April 30,

 

 

 

 

2024

 

 

 

2023

 

 

 

2024

 

 

 

2023

 

Net income (GAAP measure)

$

50,890

 

 

$

48,052

 

 

$

141,759

 

 

$

125,479

 

 

Amortization expense

 

 

1,817

 

 

 

1,892

 

 

 

5,442

 

 

 

7,147

 

 

Gain on sale of business

 

 

-

 

 

 

(2,339

)

 

 

-

 

 

 

(2,339

)

Net Income Excluding Certain Items (non-GAAP measure)

$

52,707

 

 

$

47,605

 

 

$

147,201

 

 

$

130,287

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Diluted EPS Excluding Certain Items:

Brady is presenting the non-GAAP measure, "Diluted EPS Excluding Certain Items." 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 Certain Items (Note that certain amounts will not foot due to rounding):

 

 

 

 

 

 

 

 

 

 

 

 

 

Three months ended April 30,

 

Nine months ended April 30,

 

 

 

 

2024

 

 

 

2023

 

 

 

2024

 

 

 

2023

 

Net income per Class A Nonvoting Common Share (GAAP measure)

$

1.05

 

 

$

0.96

 

 

$

2.91

 

 

$

2.51

 

 

Amortization expense

 

 

0.04

 

 

 

0.04

 

 

 

0.11

 

 

 

0.14

 

 

Gain on sale of business

 

 

-

 

 

 

(0.05

)

 

 

-

 

 

 

(0.05

)

Diluted EPS Excluding Certain Items (non-GAAP measure)

$

1.09

 

 

$

0.95

 

 

$

3.03

 

 

$

2.60

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Diluted EPS Excluding Certain Items Guidance:

 

 

 

 

 

Fiscal 2024 Expectations

 

 

 

 

 

 

 

Low

 

High

Earnings per diluted Class A Common Share (GAAP measure)

 

 

 

 

 

$

3.93

 

 

$

4.00

 

 

Amortization expense

 

 

 

 

 

 

0.15

 

 

 

0.15

 

Diluted EPS Excluding Certain Items (non-GAAP measure)

 

 

 

 

 

$

4.08

 

 

$

4.15