Income before income taxes increased 4.2% to $41.6 million for the quarter ended Oct. 31, 2019, compared to $39.9 million in the same quarter last year. Net income for the quarter increased 22.4% to $37.5 million compared to $30.6 million in the same quarter last year.
Sales for the quarter ended Oct. 31, 2019 decreased 2.1%, which consisted of an organic sales decline of 0.4% and a decrease of 1.7% from foreign currency translation. Sales for the quarter were $286.9 million compared to $293.2 million in the same quarter last year. By segment, sales decreased 1.4% in Identification Solutions and decreased 4.2% in Workplace Safety, which consisted of organic sales declines of 0.2% in Identification Solutions and 0.8% in Workplace Safety.
“This quarter marks our 17th consecutive quarter of year-on-year pre-tax earnings growth. Our investment in innovative new products to provide increased value to our customers while executing efficiencies throughout our manufacturing facilities and SG&A structure continue to drive our improved financial results,” said J. Michael Nauman, Brady’s president and CEO. “We see signs of a weakening industrial economic environment, which makes our commitment to the execution of sustainable efficiency gains throughout our businesses essential this fiscal year. Our priorities for fiscal 2020 are consistent with what has allowed us to deliver improved financial results the last four years, which we believe position us well for strong revenue and earnings growth as our end markets recover from the recent macro-economic weakness.”
“Cash provided by operating activities was $38.8 million this quarter and we finished in a net cash position of nearly $245 million at Oct. 31, 2019, an increase of $107 million since Oct. 31, 2018. Our balance sheet continues to provide significant flexibility for future investment and to return funds to our shareholders, which puts Brady in a strong financial position,” said Brady’s CFO Aaron Pearce.