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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 SUBSIDIARIESRECAST 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 YearNET 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 $735,582Europe & Australia 104,074 106,182 108,604 110,213 115,972 106,189 440,978 97,515 95,408 106,429 109,764 409,116Total$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 $136,635Europe & Australia 16,758 13,459 13,802 16,313 16,050 16,893 63,058 12,328 11,905 15,886 15,238 55,357Total$57,903 $53,633 $51,109 $48,644 $61,071 $59,541 $220,365 $48,267 $42,463 $53,195 $48,067 $191,992SEGMENT 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 YearTotal segment profit$57,903 $53,633 $51,109 $48,644 $61,071 $59,541 $220,365 $48,267 $42,463 $53,195 $48,067 $191,992Unallocated 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 4,333Interest 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
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