09.12.15
Brady Corporation reported its financial results for its fiscal 2015 fourth quarter and year ended July 31, 2015.
Sales for the quarter ended July 31, 2015 decreased 8.9% to $288.6 million compared to $316.7 million in the fourth quarter of fiscal 2014. Total organic sales decreased 1.2% and foreign currency translation decreased sales by 7.7 %. By segment, organic sales decreased 0.3% in Identification Solutions and decreased 3.2% in Workplace Safety.
During the fourth quarter ended July 31, 2015, the Company recorded an impairment charge of $46.9 million primarily related to the write down of intangible assets in the company’s Workplace Safety segment. These impairment charges were primarily driven by sales and profitability reductions and reduced forecasts for future sales and profitability growth. In the fourth quarter of last year, the company also incurred an impairment charge of $148.6 million related to its PeopleID reporting unit.
The company’s loss from continuing operations for the quarter ended July 31, 2015 was $(39.4) million compared to a loss of $(97.0) million in the same quarter of last year. Non-GAAP earnings from continuing operations for the current quarter were $14.4 million compared to $21.0 million in the fourth quarter of fiscal 2014.
Sales for the year ended July 31, 2015 decreased 4.4% to $1.17 billion compared to $1.23 billion in fiscal 2014. Total organic sales increased 1.0% and the impact of foreign currency translation decreased sales by 5.4%. By segment, organic sales increased 1.7% in Identification Solutions and decreased 0.4% in Workplace Safety.
Earnings (loss) from continuing operations for the year ended July 31, 2015 were $4.9 million compared to $(48.1) million for the year ended July 31, 2014. Non-GAAP earnings from continuing operations* for the year ended July 31, 2015 were $65.5 million compared to $79.5 million for the year ended July 31, 2014.
“Our fourth quarter financial results did not meet our expectations. We realized an organic sales decline in our Identification Solutions business, and our gross profit margin deteriorated more than anticipated,” said J. Michael Nauman, Brady president and CEO. “We completed the facility consolidations this quarter, but we continue to face operational inefficiencies. We have a full-time team dedicated to the facilities most impacted, we’re making improvements every day, and we expect to realize operational improvements and improved organic sales in the back half of fiscal 2016.”
“Our cash generation continued to show improvements in the fourth quarter as the cash outlays from our prior restructuring programs and the elevated levels of capital expenditures have subsided,” said Brady CFO Aaron Pearce. “Cash provided by operating activities increased to $40.6 million during the quarter ended July 31, 2015 compared to $17.6 million in last year’s fourth quarter..”
The company anticipates approximately flat to low single-digit organic sales growth in fiscal 2016, with organic sales growth in both the Identification Solutions and Workplace Safety businesses increasing as the year progresses.
Sales for the quarter ended July 31, 2015 decreased 8.9% to $288.6 million compared to $316.7 million in the fourth quarter of fiscal 2014. Total organic sales decreased 1.2% and foreign currency translation decreased sales by 7.7 %. By segment, organic sales decreased 0.3% in Identification Solutions and decreased 3.2% in Workplace Safety.
During the fourth quarter ended July 31, 2015, the Company recorded an impairment charge of $46.9 million primarily related to the write down of intangible assets in the company’s Workplace Safety segment. These impairment charges were primarily driven by sales and profitability reductions and reduced forecasts for future sales and profitability growth. In the fourth quarter of last year, the company also incurred an impairment charge of $148.6 million related to its PeopleID reporting unit.
The company’s loss from continuing operations for the quarter ended July 31, 2015 was $(39.4) million compared to a loss of $(97.0) million in the same quarter of last year. Non-GAAP earnings from continuing operations for the current quarter were $14.4 million compared to $21.0 million in the fourth quarter of fiscal 2014.
Sales for the year ended July 31, 2015 decreased 4.4% to $1.17 billion compared to $1.23 billion in fiscal 2014. Total organic sales increased 1.0% and the impact of foreign currency translation decreased sales by 5.4%. By segment, organic sales increased 1.7% in Identification Solutions and decreased 0.4% in Workplace Safety.
Earnings (loss) from continuing operations for the year ended July 31, 2015 were $4.9 million compared to $(48.1) million for the year ended July 31, 2014. Non-GAAP earnings from continuing operations* for the year ended July 31, 2015 were $65.5 million compared to $79.5 million for the year ended July 31, 2014.
“Our fourth quarter financial results did not meet our expectations. We realized an organic sales decline in our Identification Solutions business, and our gross profit margin deteriorated more than anticipated,” said J. Michael Nauman, Brady president and CEO. “We completed the facility consolidations this quarter, but we continue to face operational inefficiencies. We have a full-time team dedicated to the facilities most impacted, we’re making improvements every day, and we expect to realize operational improvements and improved organic sales in the back half of fiscal 2016.”
“Our cash generation continued to show improvements in the fourth quarter as the cash outlays from our prior restructuring programs and the elevated levels of capital expenditures have subsided,” said Brady CFO Aaron Pearce. “Cash provided by operating activities increased to $40.6 million during the quarter ended July 31, 2015 compared to $17.6 million in last year’s fourth quarter..”
The company anticipates approximately flat to low single-digit organic sales growth in fiscal 2016, with organic sales growth in both the Identification Solutions and Workplace Safety businesses increasing as the year progresses.
