Dave Savastano05.27.14
Brady Corporation announced itrs fiscal 2014 thrid quarter results. Sales from continuing operations for the quarter ended April 30, 2014 increased 2.3% to $309.6 million compared to the third quarter of fiscal 2013. Total organic sales increased 2.5%.
GAAP earnings from continuing operations per diluted Class A Nonvoting Common Share were $0.39 in the third quarter of fiscal 2014 compared to $0.42 in the same quarter of the prior year. Brady repurchased approximately 893,000 shares in the third quarter for a total of $23.3 million. On May 1, 2014, Brady received $53 million of cash in connection with the completion of the first phase of the divestiture of the die-cut business.
Sales from continuing operations for the nine-month period ended April 30, 2014 were up 7.2% to $908.3 million. Organic sales were down 0.1%. By segment, organic sales were up 3.6% in Identification Solutions and down 6.3% in Workplace Safety. Net earnings from continuing operations for the nine-month period ended April 30, 2014, were $48.8 million compared to $37.3 million in the same nine-month period last year.
“We were encouraged by our revenue growth in the third quarter. We believe that our investments to drive organic growth are paying off as organic sales grew 2.5% this quarter. Organic sales were up 4.8% in Identification Solutions and down 1.9% in Workplace Safety this quarter. This 1.9% decline in our Workplace Safety business is a much smaller rate of decline compared to previous quarters as we continue to add new customers, increase revenues over the internet and have recently returned our catalog advertising to historical levels,” said Thomas J. Felmer, Brady’s chief financial officer and interim president and CEO. “Our strong balance sheet enabled us to repurchase approximately 893,000 shares of Brady’s stock at an average price of $26.14 per share during the quarter ended April 30, 2014 and on May 1, 2014, we received $53 million of cash as we completed the first phase of our Die-Cut divestiture, closing on the sale of businesses in Germany, Thailand, Korea and Malaysia.”
GAAP earnings from continuing operations per diluted Class A Nonvoting Common Share were $0.39 in the third quarter of fiscal 2014 compared to $0.42 in the same quarter of the prior year. Brady repurchased approximately 893,000 shares in the third quarter for a total of $23.3 million. On May 1, 2014, Brady received $53 million of cash in connection with the completion of the first phase of the divestiture of the die-cut business.
Sales from continuing operations for the nine-month period ended April 30, 2014 were up 7.2% to $908.3 million. Organic sales were down 0.1%. By segment, organic sales were up 3.6% in Identification Solutions and down 6.3% in Workplace Safety. Net earnings from continuing operations for the nine-month period ended April 30, 2014, were $48.8 million compared to $37.3 million in the same nine-month period last year.
“We were encouraged by our revenue growth in the third quarter. We believe that our investments to drive organic growth are paying off as organic sales grew 2.5% this quarter. Organic sales were up 4.8% in Identification Solutions and down 1.9% in Workplace Safety this quarter. This 1.9% decline in our Workplace Safety business is a much smaller rate of decline compared to previous quarters as we continue to add new customers, increase revenues over the internet and have recently returned our catalog advertising to historical levels,” said Thomas J. Felmer, Brady’s chief financial officer and interim president and CEO. “Our strong balance sheet enabled us to repurchase approximately 893,000 shares of Brady’s stock at an average price of $26.14 per share during the quarter ended April 30, 2014 and on May 1, 2014, we received $53 million of cash as we completed the first phase of our Die-Cut divestiture, closing on the sale of businesses in Germany, Thailand, Korea and Malaysia.”