investor presentation · sales – annual trends (millions of usd) • investing in selling...
TRANSCRIPT
Fiscal 2020 – Q4
Brady CorporationInvestor Presentation
2Forward-Looking StatementsIn 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, 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,” “continue” 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: adverse impacts of the novel coronavirus (“COVID-19”) pandemic or other pandemics; decreased demand for our products; our ability to compete effectively or to successfully execute our strategy; Brady’s ability to develop technologically advanced products that meet customer demands; raw material and other cost increases; difficulties in protecting our websites, networks, and systems against security breaches; extensive regulations by U.S. and non-U.S. governmental and self-regulatory entities; risks associated with the loss of key employees; divestitures and contingent liabilities from divestitures; Brady’s ability to properly identify, integrate, and grow acquired companies; litigation, including product liability claims; foreign currency fluctuations; potential write-offs of Brady’s 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 issues 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, 2020.
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.
3Brady’s Mission & Vision
Brady will:
• Be the expert in safety, identification, andcompliance.
• Possess deep knowledge in niche applications.• Solve problems and provide solutions for our customers.• Innovate to provide market-leading, high-performance
products.• Deliver via our own manufacturing capabilities and
exceptional customer service.
Sustainable Long-Term
Shareholder Value
Growth
4Summary
Strong Balance Sheet:
• Leader in niche safety, identification, and compliance markets.• Diversified customer base, products, and geographic footprint.• 100+ year history of innovation & strong customer service.
• Historical annual cash generation in excess of net income.• Strong balance sheet. Net cash of $218M as of July 31, 2020.• Strong balance sheet enables consistent capital allocation
strategies throughout an economic downturn.
• Parallel focus on organic growth and long-term profitability improvements.• Investing in innovation, marketing, customer service, & automation.• Sustainable efficiency focus has enabled Brady to perform in challenging
environments.
Global Leader with Innovative Solutions:
Focused on Long-term Sustainable Results:
Patient & Disciplined Capital Allocation:• Organic investment opportunities.• Dividends (increased 35 consecutive years).• Share buybacks and technology-based acquisitions.
5Geographical Presence
Asia-Pacific
Australia, China, India, Japan, South Korea, Malaysia, Singapore, Thailand.
Europe, Middle East & Africa
Belgium, Denmark, France, Germany, Hungary, Italy, Netherlands, Norway, Poland, Qatar, Romania, Russia, Saudi Arabia, Slovakia, South Africa, Spain, Sweden, Turkey, UAE, U.K.
Canada, Mexico, Brazil.
53%
5%13%
29%
F’20 Sales by Region(68 facilities in 33 countries)
EMEA = 51%Americas = 31%Australia = 18%
Workplace Safety:
Americas = 68%EMEA = 21%Asia = 11%
ID Solutions:
Rest of AmericasU.S.A.
Products:• Vast offering of workplace safety
products (signs, tags, labels, safety equipment, etc.).
Primary Brands:• Seton, Emed, Signals,
Securimed.
Primary Channels:• Direct through Catalog,
Internet, Telesales.
Geographic Presence: • Approx. 1/3 of sales are in the
Americas.
Workplace Safety (approx. 27% of sales)
6Global Divisions
Products:• Safety & Facility ID• Wire ID• Product ID• Healthcare ID• People ID.
Primary Brands:• Brady and PDC.
Primary Channels:• Distrib. & GPOs. = 70%,
remainder = Direct.
Geographic Presence:• Approx. 2/3 of sales
are in the Americas.
Identification Solutions (approx. 73% of sales)
Driving Operational Excellence 7
• Clarity, focus, and culture of innovation.
• Local ownership and accountability.
• Speed.• Customer at the
center.
• Consistently execute fundamentals.
• Sustainable activities.
• Automation.• Simplify
processes.• Custom
manufacturing.• Customer at the
center.
• Improve the customer experience.
• Complete solutions.
• Invest in innovation, digital, and the customer experience.
• Selected geographic expansion.
• Customer at the center.
• Long-term focus.• Renewed
innovation.• Capability-
enhancing capital expenditures.
• Incentivize the right behaviors.
• Build the next generation of leaders.
• Consistent and patient capital allocation.
• Customer at the center.
Invest in Our FutureGrowth FocusedEfficiency FocusedRight Culture
8Patient & Disciplined Capital Allocation
Invest in the Organic Business:• Invest in digital, marketing, customer service, and expanding our customer base.• Invest in innovative new products.• Capital expenditures to enhance capabilities and deliver efficiency gains.• Improve under-performing businesses.
Dividends: • Committed to consistently returning capital to shareholders.• F’21 is the 35th consecutive year of annual dividend increases.
After funding organic growth investments and dividends, our capital allocation approach is patient and disciplined:
Share Buybacks:• Opportunistic and patient use of share buybacks to drive shareholder value.• Intrinsic-value based.
Acquisitions:• Tuck-ins or clear technological advantages that allow Brady to leverage capabilities.
9Taking the Long View
Environmental
Environmental, Social, Governance
Social Governance
•Employee Engagement.
•Diversity & Affinity Groups.
•Data Privacy.•Brady Foundation & Corp. Giving.
•Strong Culture.•Executive Compensation.
•Diverse Board Composition.
•Financial Transparency.
•Upgraded Facilities.
•Reduced Footprint.•Energy Efficiency.•Waste Reduction.•Biodegradable Products.
Long-term Shareholder Value
10Managing Through the Pandemic
Managing Through the Pandemic• Thank you to all of the Brady employees and front-line workers.
• Brady’s products are helping in the fight of COVID-19.
• Workplace Safety business is growing and expanding its customer base.
Brady is financially strong.
Strategies to Thrive:• Provide high-quality products that are in demand
and expand customer base.
• Invest in growth.
• Drive sustainable efficiencies and automation.
• Consistent capital allocation philosophies.
Financial Overview
11
12Revenues
$1,172 $1,121 $1,113
$1,174 $1,161 $1,081
$800
$1,000
$1,200
F'15
1.0%
(5.4%)
-- %
F'16
(0.7%)
(3.7%)
-- %
F'17
0.5%
(1.2%)
-- %
F'18
2.6%
3.0%
(0.2%)
F'19
2.8%
(2.6%)
(0.5%)
F'20
(5.4%)
(1.4%)
-- %
OrganicGrowth
ForeignCurrency
Divestitures
SALES – ANNUAL TRENDS (millions of USD)
• Investing in selling resources, new product development, and capability-enhancing capital expenditures while delivering strong customer service to drive long-term organic sales growth.
• Recent industrial economic weakness exacerbated by the COVID-19 virus.
SALES:
$293 $282
$290 $295
$287 $277
$266
$252
$200
$225
$250
$275
$300
Q1 F'19
4.7%
Q2 F'19
2.3%
Q3 F'19
2.4%
Q4 F'19
1.7%
Q1 F'20
(0.4%)
Q2 F'20
(1.2%)
Q3 F'20
(6.0%)
Q4 F'20
(13.7%)Organic Growth
SALES – QUARTERLY TRENDS (millions of USD)
13Gross Profit Margins
$558 $559 $558$588 $579
$529
47.7% 49.9% 50.1% 50.1% 49.9% 48.9%
0%
10%
20%
30%
40%
50%
60%
$300
$400
$500
$600
$700
F'15 F'16 F'17 F'18 F'19 F'20
GPM – ANNUAL TRENDS
$147$140
$146 $147$141 $139
$130
$119
50.0% 49.5% 50.3% 49.6% 49.3%50.3%
48.7%47.1%
30%
35%
40%
45%
50%
$75
$100
$125
$150
$175
Q1 F'19 Q2 F'19 Q3 F'19 Q4 F'19 Q1 F'20 Q2 F'20 Q3 F'20 Q4 F'20
GPM – QUARTERLY TRENDS
• Focus on sustainable operational improvements and automation throughout our businesses.
• Gross profit margin impacted by reduced sales volumes, product mix, and costs to right-size our cost structure.
GROSS PROFIT MARGIN:
14Research & Development
• Investing in R&D to drive future organic sales growth.
• Increased the strength and diversity of our new product pipeline.
• Focused on efficiency and shortening the time to market.
R&D EXPENSE:
$37 $36
$40
$45 $45
$41 3.1% 3.2%
3.6%3.9% 3.9% 3.8%
1.0%
1.5%
2.0%
2.5%
3.0%
3.5%
4.0%
$25
$30
$35
$40
$45
$50
F'15 F'16 F'17 F'18 F'19 F'20
R&D EXPENSE – ANNUAL TRENDING (millions of USD)
$11.3 $11.1
$11.4 $11.3 $11.0
$10.5
$9.8 $9.4
3.9% 3.9% 3.9% 3.8% 3.8% 3.8% 3.7% 3.7%
1.0%
2.0%
3.0%
4.0%
$7
$9
$11
Q1 F'19 Q2 F'19 Q3 F'19 Q4 F'19 Q1 F'20 Q2 F'20 Q3 F'20 Q4 F'20
R&D EXPENSE – QUARTERLY TRENDING (millions of USD)
15SG&A Expense is Trending Downward
$423$405
$388 $390
$371
$336
36.1% 36.1%
34.8%
33.3%32.0%
31.1%
25%
30%
35%
$300
$350
$400
$450
F'15 F'16 F'17 F'18 F'19 F'20
SG&A EXPENSE – ANNUAL TRENDING (millions of USD)
$95$93
$95
$89 $90$87
$83
$76
32.3%32.8% 32.7%
30.2%31.2% 31.6% 31.3%
30.2%
25%
28%
31%
34%
$70
$80
$90
$100
$110
Q1 F'19 Q2 F'19 Q3 F'19 Q4 F'19 Q1 F'20 Q2 F'20 Q3 F'20 Q4 F'20
SG&A EXPENSE – QUARTERLY TRENDING (millions of USD)
• Simplified and streamlined organization focused on driving sustainable efficiency gains.
• Reducing SG&A structure while investing in growth.
• SG&A expense trending downward in both actual dollars and as a percent or sales.
SG&A EXPENSE:
16Pre-Tax Income
• Income before income taxes was negatively impacted by $13.8M of non-cash impairment charges in Q3 of F’20.
• History of solid earnings even in challenging economic environments.
INCOME BEFORE TAXES:
$25
$109$127
$152$165
$141
$0
$50
$100
$150
F'15
(16.9%)
F'16
337.5%
F'17
15.8%
F'18
20.0%
F'19
8.3%
F'20
(14.4%)Yr on Yr Growth
INCOME BEFORE INCOME TAXES & LOSSES OF UNCONSOLIDATED AFFILIATE - ANNUAL TRENDS (millions of USD)
$40$37
$41$47
$42 $42
$22
$35
$0
$25
$50
Q1F'19
14.8%
Q2F'19
4.8%
Q3F'19
10.8%
Q4F'19
4.1%
Q1F'20
4.2%
Q2F'20
15.4%
Q3F'20
(45.9%)
Q4F'20
(26.0%)Yr on Yr Growth
INCOME BEFORE INCOME TAXES AND LOSSES OF UNCONSOLIDATED AFFILIATE - QUARTERLY TRENDS (millions of USD)
17Cash Generation
• Cash flow from operating activities was $141.0M for the year ended July 31, 2020, which was 125% of net income.
• Free cash flow* was $113.7M in F’20 compared to $129.4M in F’19.
• For the year ended July 31, 2020, we returned $64.5M to our shareholders in the form of share buybacks and $45.8M in the form of dividends.
• Cash is deployed in accordance with our patient and disciplinedcapital allocation strategy.
CASH GENERATION:
$93
$139 $144 $143
$162
$141
$50
$100
$150
F'15 F'16 F'17 F'18 F'19 F'20
CASH FROM OP. ACTIVITIES – ANNUAL TREND (millions of USD)
$18.8 $25.4
$52.7
$65.3
$38.8
$14.3
$42.8 $45.1
$0
$20
$40
$60
Q1F'19
54%
Q2F'19
87%
Q3F'19
152%
Q4F'19
178%
Q1F'20
104%
Q2F'20
42%
Q3F'20
313%
Q4F'20
163%% of Net Income
CASH FROM OP. ACTIVITIES – QUARTERLY TREND (millions of USD)
* Free Cash Flow is calculated as Net Cash Provided by Operating Activities less Capital Expenditures.
Net Cash 18
• July 31, 2020 cash = $217.6M.• Approximately $69M of our cash is held in the United States.• Balance sheet provides flexibility for future investments.• Brady has no outstanding debt.
STRONG BALANCE SHEET:
$138 $151
$188
$229 $245 $240
$190
$218
$0
$50
$100
$150
$200
$250
$300
Q1 F'19 Q2 F'19 Q3 F'19 Q4 F'19 Q1 F'20 Q2 F'20 Q3 F'20 Q4 F'20
NET CASH (millions of USD)
19Global Divisional Results (Sales & Segment Profit %)IDENTIFICATION SOLUTIONS:
• Divested of a non-core business during F’18.• Organic sales increased in F’20 due to
increased sales of products directly related to the fight of the Covid-19 pandemic.
• Segment profit in Q4 of F’20 was negatively impacted by severance charges, the write-off of previously capitalized catalog costs, and certain inventory write-downs.
WORKPLACE SAFETY:
IDENTIFICATION SOLUTIONS (millions of USD)
WORKPLACE SAFETY (millions of USD)
$796 $800
$846
$863
$785
14.1%
16.3%16.9%
19.1% 19.2%
10.0%
12.0%
14.0%
16.0%
18.0%
$750
$800
$850
$900
F'16(1.0%)
F'171.6%
F'183.4%
F'194.1%
F'20(8.0%)Organic
Growth
OrganicGrowth
$325
$313
$328
$298 $297
9.5%
8.2%
9.7%
7.7%7.1%
3.0%
5.0%
7.0%
9.0%
$280
$300
$320
$340
F'16(0.7%)
F'17(2.0%)
F'180.7%
F'19(0.7%)
F'202.3%
• Trend of improved segment profitability due to the execution of efficiency opportunities in our operations and SG&A.
• Organic sales negatively impacted by the Covid-19 pandemic.
• Even with reduced sales volumes, segment profit as a % of sales increased in F’20.
20Global Divisional Results (Sales & Segment Profit %)
• Revenues declined - (22.8%):• Organic = - (21.7%).• Fx = - (1.1%).
• Organic sales decreased due to an overall slowdown in global economic activity.
• Certain expenses were incurred, including severance and facility closure costs, in response to reduced sales levels. These incremental costs were offset by reduced incentive-based compensation.
Q4 F’20 IDENTIFICATION SOLUTIONS:
• Revenues increased + 9.7%:• Organic = + 10.8%.• Fx = - (1.1%).
• Organic sales increased due to increased sales of products directly related to the fight of the Covid-19 pandemic.
• WPS incurred severance charges, write-offs of previously capitalized catalog costs, and certain inventory write-downs in Q4.
Q4 F’20 WORKPLACE SAFETY:
IDENTIFICATION SOLUTIONS (millions of USD)
WORKPLACE SAFETY (millions of USD)
$218 $209 $214
$222 $215
$205
$193
$171
19% 18% 19%
21%20% 20%
19%18%
5%7%9%11%13%15%17%19%21%
$150
$175
$200
$225
$250
Q1F'19
5.7%
Q2F'19
3.6%
Q3F'19
4.0%
Q4F'19
3.3%
Q1F'20
(0.2%)
Q2F'20
(1.3%)
Q3F'20
(8.2%)
Q4F'20
(21.7%)OrganicGrowth
OrganicGrowth
$75 $73 $76 $73 $72 $71 $73
$81
7%6%
8%9%
7%8%
6%7%
0%
2%
4%
6%
8%
10%
$50
$75
$100
Q1F'19
2.2%
Q2F'19
(0.9%)
Q3F'19
(1.6%)
Q4F'19
(2.6%)
Q1F'20
(0.8%)
Q2F'20
(1.0%)
Q3F'20
0.2%
Q4F'20
10.8%
21SummaryBrady is Financially Strong:• Cash of $218M, no outstanding debt, and access to a fully undrawn revolver.• Consistent cash generation in excess of net income.
Financial Strength Enables us to:• Continue investing in innovation.• Continue investing in other sales-generating activities.• Continue to invest in sustainable efficiency activities.• Remain consistent in our business and capital allocation strategies even during a
period of reduced demand brought on by the COVID-19 virus.
Organic Sales Investments and Efficiency Gains Position us well for the future.
22Investor Relations
Brady Contact:Ann Thornton414-438-6887
See our web site atwww.investor.bradycorp.com
Appendix -Q4 F’20 Financial Review
23
24Q4 F’20 Financial Summary• Sales were $251.7M in Q4 of F’20 compared with $295.3M in Q4 of F’19.
– Organic sales declined 13.7%.– Foreign currency translation decreased sales 1.0%.
• Gross profit margin of 47.1% in Q4 of F’20 compared with 49.6% in Q4 of F’19.
• SG&A expense of $75.9M (30.2% of sales) in Q4 of F’20 compared with $89.1M (30.2% of sales) in Q4 of F’19.
• R&D expense of $9.4M (3.7% of sales) in Q4 of F’20 compared with $11.3M (3.8% of sales) in Q4 of F’19.
• Income before income taxes and losses of unconsolidated affiliate decreased 26.0% to $34.9M in Q4 of F’20 compared with $47.1M in Q4 of F’19.
• Net income per Class A Diluted Nonvoting Common Share decreased 22.1% to $0.53 in Q4 of F’20 compared with $0.68 in Q4 of F’19.
25Sales Overview
• 13.7% organic sales decline:
• ID Solutions – Organic sales decline of 21.7%.
• Workplace Safety – Organic sales growth of 10.8%.
• 1.0% decrease due to foreign currency translation.
Q4 F’20 SALES:
• Workplace Safety – Organic sales were relatively consistent throughout the quarter and driven by the sale of products directly supporting the fight of Covid-19.
• ID Solutions – Organic sales trends improved as we progressed throughout the quarter.
Q4 F’20 SALES COMMENTARY:
$290 $288 $298 $297 $293
$282 $290
$295 $287
$277 $266
$252
$200
$225
$250
$275
$300
Q1 F'18
1.7%
Q2 F'18
3.2%
Q3 F'18
3.2%
Q4 F'18
2.5%
Q1 F'19
4.7%
Q2 F'19
2.3%
Q3 F'19
2.4%
Q4 F'19
1.7%
Q1 F'20
(0.4%)
Q2 F'20
(1.2%)
Q3 F'20
(6.0%)
Q4 F'20
(13.7%)Organic Sales
SALES (millions of USD)
Gross Profit Margin 26
• Gross profit margin of 47.1% compared to 49.6% in Q4 of F’19.• We continue to invest in automation and manufacturing efficiencies.• Gross profit margin was impacted by reduced sales volumes, product mix, and costs to right-size our cost structure.
Q4 F’20 – GROSS PROFIT MARGIN:
$146$144
$151$147 $147
$140
$146 $147
$141 $139
$130
$119
50.3%49.9%
50.6%
49.6%50.0%
49.5%50.3%
49.6% 49.3%
50.3%
48.7%
47.1%
40%
45%
50%
$100
$125
$150
Q1 F'18 Q2 F'18 Q3 F'18 Q4 F'18 Q1 F'19 Q2 F'19 Q3 F'19 Q4 F'19 Q1 F'20 Q2 F'20 Q3 F'20 Q4 F'20
GROSS PROFIT & GPM% (millions of USD)
SG&A Expense 27
• The $13.2M reduction in SG&A expense compared to Q4 of F’19 was a combination of ongoing benefits from efficiency actions combined with a reduction in discretionary spend.
• Reduced incentive-based compensation effectively offset incremental charges such as severance and the write-off of previously capitalized catalog costs.
Q4 F’20 – SG&A EXPENSE:
$100$98
$102
$91
$95$93
$95
$89 $90$87
$83
$76
34.5%33.9% 34.1%
30.6%
32.3% 32.8% 32.7%
30.2%31.2%
31.6% 31.3%30.2%
20%
25%
30%
35%
$70
$80
$90
$100
$110
Q1 F'18 Q2 F'18 Q3 F'18 Q4 F'18 Q1 F'19 Q2 F'19 Q3 F'19 Q4 F'19 Q1 F'20 Q2 F'20 Q3 F'20 Q4 F'20
SG&A EXPENSE AND SG&A EXPENSE AS A % of SALES (millions of USD)
R&D Expense 28
$10.5
$11.3 $11.7 $11.7
$11.3 $11.1 $11.4 $11.3
$11.0 $10.5
$9.8 $9.4
3.6%
3.9% 3.9% 3.9%3.9% 3.9% 3.9%
3.8% 3.8% 3.8%3.7% 3.7%
2.5%
3.0%
3.5%
4.0%
$6.0
$8.0
$10.0
$12.0
$14.0
Q1 F'18 Q2 F'18 Q3 F'18 Q4 F'18 Q1 F'19 Q2 F'19 Q3 F'19 Q4 F'19 Q1 F'20 Q2 F'20 Q3 F'20 Q4 F'20
R&D EXPENSE AND R&D EXPENSE AS A % of SALES (millions of USD)
• We continue to invest in R&D to drive future organic sales growth.• Solid new product pipeline.• Focused on ensuring our R&D spend is both efficient and effective.
INCREASING OUR INVESTMENT IN RESEARCH & DEVELOPMENT:Q4 F’20 – R&D EXPENSE:
29Income Before Income Taxes
• Income before income taxes and losses in unconsolidated affiliate decreased 26.0% to $34.9M in Q4 of F’20 compared to $47.1M in Q4 of F’19.
• Income before income taxes in Q3 F’20 was negatively impacted by $13.8M of non-cash impairment charges.
Q4 F’20 - INCOME BEFORE INCOME TAXES AND LOSSES IN UNCONSOLIDATED AFFILIATE:
INCOME BEFORE INCOME TAXES AND LOSSES IN UNCONSOLIDATED AFFILIATE (millions of USD)
$34.8 $35.0 $37.0
$45.2
$39.9 $36.7
$41.0
$47.1
$41.6 $42.4
$22.2
$34.9
$10
$20
$30
$40
$50
Q1F'18
12.2%
Q2F'18
20.4%
Q3F'18
20.7%
Q4F'18
26.0%
Q1F'19
14.8%
Q2F'19
4.8%
Q3F'19
10.8%
Q4F'19
4.1%
Q1F'20
4.2%
Q2F'20
15.4%
Q3F'20
(45.9%)
Q4F'20
(26.0%)Year on Year Growth
30Net Income & Diluted EPS
• Net income decreased 24.4% to $27.7M in Q4 of F’20 compared to $36.6M in Q4 of F’19. • Diluted EPS decreased 22.1% to $0.53 in Q4 of F’20 compared to $0.68 in Q4 of F’19.• Net income and diluted EPS in Q3 of F’20 were negatively impacted by $13.8M of impairment charges ($11.1M after
tax) and a higher-than-normal tax rate of 38.5% primarily due to an increase in valuation allowances against foreign tax credit carryforwards.
Q4 F’20 – NET INCOME & DILUTED EPS:
$0.49
$0.08
$0.49
$0.66$0.58 $0.55
$0.65 $0.68 $0.70$0.62
$0.26
$0.53
$0.00
$0.20
$0.40
$0.60
Q1F'18
Q2F'18
Q3F'18
Q4F'18
Q1F'19
Q2F'19
Q3F'19
Q4F'19
Q1F'20
Q2F'20
Q3F'20
Q4F'20
NET INCOME PER CLASS A DILUTED SHARE
$25.8
$4.3
$26.0
$35.0 $30.6 $29.2
$34.8 $36.6 $37.5 $33.6
$13.6
$27.7
$0
$10
$20
$30
$40
Q1F'18
Q2F'18
Q3F'18
Q4F'18
Q1F'19
Q2F'19
Q3F'19
Q4F'19
Q1F'20
Q2F'20
Q3F'20
Q4F'20
NET INCOME (millions of USD)
31Cash Generation & Uses
• Cash flow from operating activities was $45.1M in Q4 of F’20 compared to $65.3M in Q4 of F’19.
• Cash flow from operating activities was significantly in excess of net earnings during the quarter ended July 31, 2020.
• Free cash flow* was $39.4M in Q4 of F’20 compared to $50.0M in Q4 of F’19.
• Cash flow from operating activities was $141.0M for the year ended July 31, 2020, which was 125% of net income.
CASH FLOWS IN Q4 OF F’20:
* Free Cash Flow is calculated as Net Cash Provided by Operating Activities less Capital Expenditures.
CASH FLOW FROM OPERATING ACTIVITIES (millions of USD)
$34.7
$7.7
$46.8 $53.8
$18.8 $25.4
$52.7
$65.3
$38.8
$14.3
$42.8 $45.1
$0
$20
$40
$60
Q1F'18
Q2F'18
Q3F'18
Q4F'18
Q1F'19
Q2F'19
Q3F'19
Q4F'19
Q1F'20
Q2F'20
Q3F'20
Q4F'20
(millions of USD) 3 Mos. EndedJuly 31, 2020
3 Mos. EndedJuly 31, 2019
12 Mos. EndedJuly 31, 2020
Ended
July 31, 2019
Cash Balance - Beginning of Period 238.8$ 238.4$ 279.1$ 181.4$
Cash Flow from Operating Activities 45.1 65.3 141.0 162.2 Capital Expenditures (5.7) (15.3) (27.3) (32.8) Dividends (11.3) (11.2) (45.8) (44.7) Share Repurchases (0.4) - (64.5) (3.2) Repayment of debt (49.8) - (49.8) - Effect of Exchange Rates on Cash 6.3 (0.2) (2.8) (2.5) Other (5.4) 2.2 (12.3) 18.6
Cash Balance - End of Period 217.6$ 279.1$ 217.6$ 279.1$
32Investor Relations
Brady Contact:Ann Thornton414-438-6887
See our web site atwww.investor.bradycorp.com