Oct 31, 2021

Brady Q1 2022 Earnings Report

Brady reported strong first quarter results driven by sales growth and strategic investments.

Key Takeaways

Brady Corporation reported a 16.0% increase in sales for the quarter, driven by a 7.0% organic sales increase and contributions from acquisitions and foreign currency translation. Diluted EPS increased by 4.7% to $0.67, and net income reached $35.0 million. The company's Identification Solutions segment led growth, while Workplace Safety experienced a sales decrease.

Sales increased by 16.0% driven by Identification Solutions division.

Organic sales grew by 7.0%.

Diluted EPS increased by 4.7% to $0.67.

The company returned $30.5 million to shareholders through dividends and buybacks.

Total Revenue
$321M
Previous year: $277M
+16.0%
EPS
$0.72
Previous year: $0.64
+12.5%
Organic Sales Growth
7%
Previous year: -4.9%
-242.9%
Foreign Currency Impact
0.7%
Previous year: 1.5%
-53.3%
Income before income taxes
$48.5M
Previous year: $42.2M
+14.8%
Gross Profit
$155M
Cash and Equivalents
$158M
Previous year: $256M
-38.5%
Total Assets
$1.41B

Brady

Brady

Brady Revenue by Segment

Forward Guidance

The Company’s earnings per diluted Class A Nonvoting Common Share, excluding amortization guidance for the year ending July 31, 2022 remains unchanged at $3.12 to $3.32 per share, and earnings per diluted Class A Nonvoting Common Share on a GAAP basis remains unchanged at $2.90 to $3.10 per share. Included in this guidance is a full-year income tax rate of approximately 20 percent, depreciation and amortization expense ranging from $34 million to $36 million, and sales growth in excess of 12 percent for the year ending July 31, 2022.

Positive Outlook

  • Earnings per diluted Class A Nonvoting Common Share, excluding amortization guidance for the year ending July 31, 2022 remains unchanged at $3.12 to $3.32 per share
  • Earnings per diluted Class A Nonvoting Common Share on a GAAP basis remains unchanged at $2.90 to $3.10 per share.
  • Full-year income tax rate of approximately 20 percent.
  • Depreciation and amortization expense ranging from $34 million to $36 million.
  • Sales growth in excess of 12 percent for the year ending July 31, 2022.

Revenue & Expenses

Visualization of income flow from segment revenue to net income