09.03.21
Brady Corporation reported its financial results for its fiscal 2021 fourth quarter ended July 31, 2021.
Sales for the quarter ended July 31, 2021 increased 21.6%, which consisted of an organic sales increase of 12.6%, an increase of 4.7% from acquisitions, and an increase of 4.3% from foreign currency translation.
Sales for the quarter ended July 31, 2021 were $306.1 million compared to $251.7 million in the same quarter last year. By segment, sales increased 35% in Identification Solutions and decreased 6.8% in Workplace Safety, which consisted of an organic sales increase of 24.5% in Identification Solutions and an organic sales decline of 12.7% in Workplace Safety.
Income before income taxes and losses of unconsolidated affiliate increased 19.4% to $41.6 million for the quarter ended July 31, 2021, compared to $34.9 million in the same quarter last year.
Year Ended July 31, 2021 Financial Results
Income before income taxes and losses of unconsolidated affiliate increased 21.3% to $171.0 million for the year ended July 31, 2021, compared to $140.9 million for the year ended July 31, 2020.
Net income for the year ended July 31, 2021 increased 15.4% to $129.7 million compared to $112.4 million last year. Earnings per diluted Class A Nonvoting Common Share increased 17.1% to $2.47 for the year ended July 31, 2021, compared to $2.11 last year.
Sales for the year ended July 31, 2021 increased 5.9%, which consisted of organic sales growth of 1.6%, an increase of 1.1% from acquisitions, and an increase of 3.2% from foreign currency translation.
Sales for the year ended July 31, 2021 were $1.14 billion compared to $1.08 billion in the same period last year. By segment, sales grew 7.2% in Identification Solutions and grew 2.2% in Workplace Safety, which consisted of organic sales growth of 3.7% in Identification Solutions and an organic sales decline of 3.8% in Workplace Safety.
“Throughout the pandemic, we invested in sales and marketing as well as research and development. These investments, coupled with improved market conditions, helped us generate double-digit organic sales growth this quarter,” said J. Michael Nauman, Brady’s president and CEO. “This quarter, we also completed three acquisitions which position Brady extremely well for long-term sales and cash flow growth. Each of these acquisitions brings technology to Brady that further cements our leadership position in selected niche safety and identification markets.
“Our priorities for fiscal 2022 are to continue to accelerate organic sales growth by making the necessary investments in R&D and sales and marketing, to continue to become a more efficient manufacturer through increased automation and the relentless push for sustainable efficiency actions, to ensure the smooth integration of our recent acquisitions, and finally to deploy our strong balance sheet to generate increased shareholder value,” Nauman added.
“This quarter, we had strong double-digit sales growth of 21.6% and generated non-GAAP EPS of $0.70, which represents another very strong quarter for Brady,” said Brady CFO Aaron Pearce. “Brady continues to generate strong cash flow and has a very strong balance sheet. Even after investing $244 million in acquisitions in the fourth quarter, we are still in a net cash position of $109.3 million as of July 31, 2021.
“This year, we generated $205.7 million of cash flow from operating activities, which was an increase of 45.9% compared to last year. Brady’s strong balance sheet, recent organic and inorganic investments, and strong cash generation position us well for future financial success,” Pearce added.
Sales for the quarter ended July 31, 2021 increased 21.6%, which consisted of an organic sales increase of 12.6%, an increase of 4.7% from acquisitions, and an increase of 4.3% from foreign currency translation.
Sales for the quarter ended July 31, 2021 were $306.1 million compared to $251.7 million in the same quarter last year. By segment, sales increased 35% in Identification Solutions and decreased 6.8% in Workplace Safety, which consisted of an organic sales increase of 24.5% in Identification Solutions and an organic sales decline of 12.7% in Workplace Safety.
Income before income taxes and losses of unconsolidated affiliate increased 19.4% to $41.6 million for the quarter ended July 31, 2021, compared to $34.9 million in the same quarter last year.
Year Ended July 31, 2021 Financial Results
Income before income taxes and losses of unconsolidated affiliate increased 21.3% to $171.0 million for the year ended July 31, 2021, compared to $140.9 million for the year ended July 31, 2020.
Net income for the year ended July 31, 2021 increased 15.4% to $129.7 million compared to $112.4 million last year. Earnings per diluted Class A Nonvoting Common Share increased 17.1% to $2.47 for the year ended July 31, 2021, compared to $2.11 last year.
Sales for the year ended July 31, 2021 increased 5.9%, which consisted of organic sales growth of 1.6%, an increase of 1.1% from acquisitions, and an increase of 3.2% from foreign currency translation.
Sales for the year ended July 31, 2021 were $1.14 billion compared to $1.08 billion in the same period last year. By segment, sales grew 7.2% in Identification Solutions and grew 2.2% in Workplace Safety, which consisted of organic sales growth of 3.7% in Identification Solutions and an organic sales decline of 3.8% in Workplace Safety.
“Throughout the pandemic, we invested in sales and marketing as well as research and development. These investments, coupled with improved market conditions, helped us generate double-digit organic sales growth this quarter,” said J. Michael Nauman, Brady’s president and CEO. “This quarter, we also completed three acquisitions which position Brady extremely well for long-term sales and cash flow growth. Each of these acquisitions brings technology to Brady that further cements our leadership position in selected niche safety and identification markets.
“Our priorities for fiscal 2022 are to continue to accelerate organic sales growth by making the necessary investments in R&D and sales and marketing, to continue to become a more efficient manufacturer through increased automation and the relentless push for sustainable efficiency actions, to ensure the smooth integration of our recent acquisitions, and finally to deploy our strong balance sheet to generate increased shareholder value,” Nauman added.
“This quarter, we had strong double-digit sales growth of 21.6% and generated non-GAAP EPS of $0.70, which represents another very strong quarter for Brady,” said Brady CFO Aaron Pearce. “Brady continues to generate strong cash flow and has a very strong balance sheet. Even after investing $244 million in acquisitions in the fourth quarter, we are still in a net cash position of $109.3 million as of July 31, 2021.
“This year, we generated $205.7 million of cash flow from operating activities, which was an increase of 45.9% compared to last year. Brady’s strong balance sheet, recent organic and inorganic investments, and strong cash generation position us well for future financial success,” Pearce added.
