Brady Corporation Reports Record Sales and Earnings for Fiscal 2004 Fourth Quarter and Year End.MILWAUKEE Milwaukee (mĭlwŏk`ē), city (1990 pop. 628,088), seat of Milwaukee co., SE Wis., at the point where the Milwaukee, Menominee, and Kinnickinnic rivers enter Lake Michigan; inc. 1846. -- Brady Corporation Brady Corporation is a US based multi-national company specialising in the manufacture of labels and label printers for use in offices and industry. Company History Brady was founded in 1914 in Eau Claire, Wisconsin, as W.H. Brady Co. (NYSE NYSE See: New York Stock Exchange :BRC BRC Black Rock City (Burning Man) BRC British Retail Consortium BRC Business Resource Center (Small Business Administration) BRC Bisexual Resource Center BRC Black Radical Congress ) today reported record results for its fiscal 2004 fourth quarter and fiscal year ended July July: see month. 31, 2004. Sales in the fiscal 2004 fourth quarter rose 28 percent to $185.5 million, compared to sales of $144.7 million in the fourth quarter of fiscal 2003. Base business grew 12 percent compared to the prior year's quarter, with acquisitions adding 13 percent. Foreign currency translation added 3 percent to sales. Sales increased in all geographic geographic /geo·graph·ic/ (je?o-graf´ik) in pathology, of or referring to a pattern that is well demarcated, resembling outlines on a map. geographic pertaining to geography. regions, with growth being particularly strong in Asia-Pacific The term Asia-Pacific generally applies to littoral East Asia, Southeast Asia and Australasia near the Pacific Ocean, plus the states in the ocean itself (Oceania). . Net income for the fiscal 2004 fourth quarter was $16.1 million, or $0.66 per diluted di·lute tr.v. di·lut·ed, di·lut·ing, di·lutes 1. To make thinner or less concentrated by adding a liquid such as water. 2. To lessen the force, strength, purity, or brilliance of, especially by admixture. Class A Common Share, up from $1.8 million, or $0.08 per share, in the fiscal 2003 fourth quarter. Net income in the fiscal 2004 fourth quarter included a $3 million tax benefit from resolution of a tax audit. Results last year included a restructuring charge restructuring charge The expense of reorganizing a company's operations. A restructuring charge is an infrequent expense that generally results from asset writedowns or facility closings. of $6.3 million after tax. Expenses of $0.6 million after tax related to this same restructuring restructuring - The transformation from one representation form to another at the same relative abstraction level, while preserving the subject system's external behaviour (functionality and semantics). were charged in the fourth quarter of fiscal 2004. Brady's fiscal 2004 net sales Net Sales The amount a seller receives from the buyer after costs associated with the sale are deducted. Notes: This amount is calculated by subtracting the following items from gross sales: merchandise returned for credit, allowances for damaged or missing goods, freight rose 21 percent to $671.2 million compared to fiscal 2003 sales of $554.9 million. Base sales grew 5 percent. Acquisitions added 10 percent and foreign currency added 6 percent to total sales results. Net income for fiscal 2004 rose 137 percent to $50.9 million or $2.13 per diluted Class A Common Share, compared to $21.4 million or $0.91 per diluted share in fiscal 2003. Fiscal 2004 net income included the previously mentioned $3 million tax benefit, and charges of $2.2 million after tax related to last year's restructuring. Fiscal 2004 cash flow from operations Cash flow from operations A firm's net cash inflow resulting directly from its regular operations (disregarding extraordinary items such as the sale of fixed assets or transaction costs associated with issuing securities), calculated as the sum of net income plus noncash expenses was a record $84.8 million, up 53 percent from the prior year. "Fiscal 2004 was a great year for Brady Corporation," Brady Bra·dy , James Buchanan Known as "Diamond Jim." 1856-1917. American financier and philanthropist who gained his nickname because of his attraction to diamonds and his extravagant lifestyle. Noun 1. President and Chief Executive Officer Frank M. Jaehnert said. "A return to growth in our core markets has accelerated our sales growth throughout the year. We launched a number of successful proprietary products and acquired four companies, including Emed Co., the largest acquisition in Brady's history. And the broad success of our initiatives and cost control efforts have resulted in exceptional growth in our bottom line." "We are increasing our guidance for fiscal 2005 to reflect a continued positive trend in growth in our base business, along with the recent acquisition of ID Technologies," said Brady Vice President and Chief Financial Officer David Mathieson David Mathieson (born January 18, 1978 in Dumfries, Scotland) is a goalkeeper currently playing for Scottish First Division side Gretna. He has previously played for St Johnstone and Queen of the South. . "We now expect fiscal 2005 sales to be in the range of $770 to $790 million and net income of $59 to $62 million with earnings per diluted share of $2.41 to $2.53." A Webcast regarding fiscal 2004 results will be available at www.investor.bradycorp.com beginning at 9:30 a.m. Central Daylight For other uses, see Daylight (disambiguation). Daylight or the light of day is the combination of all direct and indirect sunlight outdoors during the daytime (and perhaps twilight). Time today. Brady Corporation is an international manufacturer and marketer of complete identification solutions and specialty A contract under seal. A specialty is a written document that has been sealed and delivered and is given as security for the payment of a specifically indicated debt. materials, with products including labels, software, printing systems, label-application and data-collection systems, signs, safety devices and precision die-cut materials for manufacturing, electrical, electronic, telecommunications Communicating information, including data, text, pictures, voice and video over long distance. See communications. and a variety of other markets. Founded in 1914, Brady is headquartered in Milwaukee and employs more than 4,000 people in operations in the United States United States, officially United States of America, republic (2005 est. pop. 295,734,000), 3,539,227 sq mi (9,166,598 sq km), North America. The United States is the world's third largest country in population and the fourth largest country in area. , Europe Europe (y  r`əp), 6th largest continent, c.4,000,000 sq mi (10,360,000 sq km) including adjacent islands (1992 est. pop. 512,000,000). , Asia/Pacific, Latin America Latin America, the Spanish-speaking, Portuguese-speaking, and French-speaking countries (except Canada) of North America, South America, Central America, and the West Indies. and Canada Canada (kăn`ədə), independent nation (2001 pop. 30,007,094), 3,851,787 sq mi (9,976,128 sq km), N North America. Canada occupies all of North America N of the United States (and E of Alaska) except for Greenland and the French islands of .
More information is available on the Internet Internet Publicly accessible computer network connecting many smaller networks from around the world. It grew out of a U.S. Defense Department program called ARPANET (Advanced Research Projects Agency Network), established in 1969 with connections between computers at the at www.bradycorp.com. This news release contains forward-looking for·ward-look·ing adj. Concerned with or making provision for the future: forward-looking educators; a forward-looking corporate plan. Adj. 1. information, as defined in the Private Securities Litigation Reform Act The Private Securities Litigation Reform Act of 1995 (PSLRA) implemented several significant substantive changes affecting certain cases brought under the federal securities laws, including changes related to pleading, discovery, liability, class representation and awards fees and of 1995. Forward-looking information in this release involves risks and uncertainties, including, but not limited to, domestic and international economic conditions and growth rates Growth Rates The compounded annualized rate of growth of a company's revenues, earnings, dividends, or other figures. Notes: Remember, historically high growth rates don't always mean a high rate of growth looking into the future. ; fluctuations in currency exchange rates for international currencies versus the U.S. dollar; the successful implementation of a new enterprise-resource-planning system; the ability of the company to acquire, integrate and achieve anticipated synergies from new businesses; the ability of the company to adjust its cost structure to changes in levels of sales and product mix in a timely manner; variations in the economic or political conditions in the countries in which the company does business; technology changes; and the continued availability of sources of supply. Brady cautions that forward-looking statements forward-looking statement A projected financial statement based on management expectations. A forward-looking statement involves risks with regard to the accuracy of assumptions underlying the projections. are not guarantees, since there are inherent difficulties in predicting future results, and that actual results could differ materially from those expressed or implied Inferred from circumstances; known indirectly. In its legal application, the term implied is used in contrast with express, where the intention regarding the subject matter is explicitly and directly indicated. in forward-looking statements. Information by regional segment for the three and twelve months ended July 31, 2004 and 2003 is as follows:
(Dollars in thousands) Americas Europe Asia Corporate Total
-------- ------ ---- --------- -----
SALES TO EXTERNAL CUSTOMERS
Three months ended:
July 31, 2004 $98,436 $64,947 $22,128 $185,511
July 31, 2003 73,945 54,552 16,187 144,684
Twelve months ended:
July 31, 2004 $341,975 $248,255 $80,989 $671,219
July 31, 2003 298,844 198,353 57,669 554,866
SALES GROWTH INFORMATION
Three months ended July 31, 2004:
Base 10.7% 7.9% 32.2% 12.1%
Currency (0.2%)% 6.9% 4.5% 3.0%
Acquisitions 22.6% 4.2% 0.0% 13.1%
Total 33.1% 19.0% 36.7% 28.2%
Twelve months ended July 31, 2004:
Base 1.9% 2.5% 30.8% 5.1%
Currency 1.2% 12.7% 9.6% 6.2%
Acquisitions 11.4% 10.0% 0.0% 9.7%
Total 14.5% 25.2% 40.4% 21.0%
SEGMENT PROFIT (LOSS)
Three months ended:
July 31, 2004 $18,497 $18,148 $5,919 $(1,659) $40,905
July 31, 2003 10,673 14,446 4,064 (309) 28,874
Percentage
increase
(decrease) 73.3% 25.6% 45.6% 436.9% 41.7%
Twelve months ended:
July 31, 2004 $61,102 $66,404 $22,768 $(4,696) $145,578
July 31, 2003 43,203 47,469 14,142 (2,812) 102,002
Percentage
increase
(decrease) 41.4% 39.9% 61.0% 67.0% 42.7%
PROFIT RECONCILIATION (Dollars in thousands)
Three months ended: Twelve months ended:
July 31, July 31, July 31, July 31,
2004 2003 2004 2003
---- ---- ---- ----
Total profit for reportable
segments $42,564 $29,183 $150,274 $104,814
Corporate and eliminations (1,659) (309) (4,696) (2,812)
Unallocated amounts:
Administrative costs: (17,991) (14,485) (65,943) (56,167)
Interest - net (915) 189 (552) 717
Foreign exchange (415) (605) (1,241) (411)
Restructuring charge, net (907) (9,589) (3,181) (9,589)
Other (1,425) (1,649) (4,334) (4,097)
Income before income
taxes $19,252 $2,735 $70,327 $32,455
BRADY CORPORATION AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF INCOME AND INCOME
RETAINED IN THE BUSINESS
(Dollars in Thousands, Except Per Share Amounts)
(Unaudited)
------------------------------------------------------
Three Months Ended Twelve Months Ended
July 31, July 31,
-------------------------- --------------------------
Percent- Percent-
age age
2004 2003 Change 2004 2003 Change
-------- -------- -------- -------- -------- --------
Net sales $185,511 $144,684 28.2% $671,219 $554,866 21.0%
Cost of
products sold 91,047 71,413 27.5% 324,888 274,593 18.3%
-------- -------- -------- --------
Gross margin 94,464 73,271 28.9% 346,331 280,273 23.6%
Operating expenses:
Research
and
development 6,348 5,065 25.3% 23,028 18,873 22.0%
Selling, general
and
administrative 66,627 55,465 20.1% 248,000 219,662 12.9%
Restructuring
charge - net 907 9,589 -90.5% 3,181 9,589 -66.8%
-------- -------- -------- --------
Total operating
expenses 73,882 70,119 5.4% 274,209 248,124 10.5%
Operating income 20,582 3,152 553.0% 72,122 32,149 124.3%
Other income and
(expense):
Investment and
other (expense)
income (135) (361) -62.6% (564) 427 -232.1%
Interest expense (1,195) (56) 2033.9% (1,231) (121) 917.4%
-------- -------- -------- --------
Income before
income taxes 19,252 2,735 603.9% 70,327 32,455 116.7%
Income taxes 3,166 928 241.2% 19,456 11,035 76.3%
-------- -------- -------- --------
Net income 16,086 1,807 790.2% 50,871 21,420 137.5%
Income retained in
business at
beginning of
period 311,089 293,562 6.0% 290,805 287,674 1.1%
Less:
Redemption premium
on preferred stock - - - (171) -100.0%
Common stock
dividends (4,951) (4,564) 8.5% (19,452) (18,118) 7.4%
Income retained in
business at
end of period $322,224 $290,805 10.8% $322,224 $290,805 10.8%
======== ======== ======== ========
Net income per Class A Nonvoting Common Share
Basic $ 0.67 $ 0.08 737.5% $ 2.15 $ 0.92 133.7%
======== ======== ======== ========
Diluted $ 0.66 $ 0.08 725.0% $ 2.13 $ 0.91 134.1%
======== ======== ======== ========
Net income per Class B Voting Common Share
Basic $ 0.67 $ 0.08 737.5% $ 2.12 $ 0.89 138.2%
======== ======== ======== ========
Diluted $ 0.66 $ 0.08 725.0% $ 2.10 $ 0.88 138.6%
======== ======== ======== ========
BRADY CORPORATION AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
(DOLLARS IN THOUSANDS)
July 31, 2004 July 31, 2003
------------- -------------
ASSETS
------
Current assets:
Cash and cash equivalents $ 70,368 $ 76,088
Accounts receivable, less allowance for
losses ($3,869 and $3,166, respectively) 105,322 80,162
Inventories 52,931 36,564
Prepaid expenses and other current assets 23,302 22,343
------------ ------------
Total current assets 251,923 215,157
Other assets:
Goodwill 275,897 130,667
Other Intangibles 45,879 8,836
Other 34,526 15,619
------------ ------------
356,302 155,122
Property, plant and equipment:
Cost:
Land 6,242 5,172
Buildings and improvements 58,850 51,471
Machinery and equipment 153,467 139,007
Construction in progress 1,468 3,245
------------ ------------
220,027 198,895
Less accumulated depreciation 133,922 119,655
------------ ------------
Net property, plant and equipment 86,105 79,240
------------ ------------
Total $ 694,330 $ 449,519
============ ============
LIABILITIES AND STOCKHOLDERS' INVESTMENT
----------------------------------------
Current liabilities:
Accounts payable $ 38,533 $ 28,470
Wages and amounts withheld from
employees 41,872 30,619
Taxes, other than income taxes 3,852 2,492
Accrued income taxes 12,399 11,449
Other current liabilities 23,529 17,320
Short-term borrowings and current
maturities on long-term debt 32 929
------------ ------------
Total current liabilities 120,217 91,279
Long-term obligations, less current
maturities 150,019 568
Other liabilities 20,779 18,711
------------ ------------
Total liabilities 291,015 110,558
Stockholders' investment:
Common stock:
Class A nonvoting common stock - Issued
and outstanding, 22,345,399 and 21,558,265
shares, respectively 224 216
Class B voting common stock - Issued
and outstanding 1,769,314 shares 18 18
Additional paid-in capital 72,865 47,464
Income retained in the business 322,224 290,805
Treasury Stock - 34,657 and 18,262
shares, at cost (1,074) (509)
Cumulative other comprehensive income 9,340 1,595
Other (282) (628)
------------ ------------
Total stockholders' investment 403,315 338,961
------------ ------------
Total $ 694,330 $ 449,519
============ ============
BRADY CORPORATION AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
(Dollars in Thousands) (Unaudited)
Twelve Months Ended
July 31
2004 2003
Operating activities:
Net income $ 50,871 $ 21,420
Adjustments to reconcile net income to net cash
provided by operating activities:
Depreciation and amortization 20,190 17,771
Loss on sale or disposal of property, plant &
equipment 321 55
Provision for losses on accounts receivable 797 1,523
Non-cash portion of stock-based compensation
expense 1,927 289
Net restructuring charge accrued liability 3,221 6,926
Changes in operating assets and liabilities
(net of effects of business acquisitions):
Accounts receivable (11,326) 4,334
Inventory (6,791) 4,140
Prepaid expenses and other assets 796 (1,179)
Accounts payable, accrued expenses and
other liabilities 13,707 (4,007)
Income taxes 4,013 5,244
Deferred income taxes 5,172 (1,915)
Other liabilities 1,873 648
---------- ----------
Net cash provided by operating
activities 84,771 55,249
Investing activities:
Acquisition of businesses, net of cash
acquired (228,928) (23,912)
Termination of capital lease - (791)
Purchases of property, plant and equipment (14,892) (14,438)
Proceeds from sale of property, plant and
equipment 448 257
Other (1,533) 68
Net cash used in investing activities (244,905) (38,816)
Financing activities:
Payment of dividends (19,805) (17,936)
Proceeds from issuance of common stock 19,422 4,662
Principal payments on debt (161,578) (327)
Proceeds from debt 310,000
Redemption of preferred stock - (2,855)
Purchase of treasury stock (564) (377)
---------- ----------
Net cash used in financing activities 147,475 (16,833)
Effect of exchange rate changes on cash 6,939 519
Net increase (decrease) in cash and cash
equivalents (5,720) 119
Cash and cash equivalents, beginning of period 76,088 75,969
Cash and cash equivalents, end of period $ 70,368 $ 76,088
========== ==========
Supplemental disclosures:
Cash paid during the period for:
Interest $ 506 $ 43
Income taxes, net of refunds 10,977 12,789
Acquisitions:
Fair value of asset acquired, net of cash $ 96,656 $ 14,430
Liabilities assumed (8,674) (8,146)
Goodwill 140,946 17,628
---------- ----------
Net cash paid for acquisitions $ 228,928 $ 23,912
========== ==========
Termination of Capital Lease:
Disposition of capital assets $ - $ (2,574)
Settlement of capital lease liability - 3,365
---------- ----------
Net cash paid for termination of capital lease $ - $ 791
========== ==========
|
|
||||||||||||||||
Printer friendly
Cite/link
Email
Feedback
Reader Opinion