Brady Corporation Reports Fiscal 2017 First Quarter Results

Brady Corporation reported its financial results for its fiscal 2017 first quarter ended Oct. 31, 2016.
 
Net earnings for the quarter ended Oct. 31, 2016, increased 20.6% to $22.6 million compared to $18.7 million in the same quarter last year.
Earnings per diluted Class A Nonvoting Common Share increased 18.9% to $0.44 for the quarter ended Oct. 31, 2016, compared to $0.37 in the same quarter last year.
 
Sales for the quarter ended Oct. 31, 2016, decreased 1.0% to $280.2 million compared to $283.1 million in the same quarter last year. Total organic sales decreased 0.2% and foreign currency translation decreased sales by 0.8%. By segment, organic sales grew 0.7% in Identification Solutions and decreased 2.5% in Workplace Safety.
 
“The Brady team is focused on producing high-quality products, providing excellent customer service, developing efficient and effective manufacturing processes, pushing for efficiencies in our SG&A structure, and building a culture where local teams are empowered to own and are held accountable for their financial results. This focus is working as evidenced by our fifth consecutive quarter of year-on-year earnings growth,” said J. Michael Nauman, Brady’s president and CEO. “Looking to the remainder of this fiscal year, we do not see a clear catalyst to accelerate global economic growth. In an environment such as this, focus and execution are critical.”
 
“Although organic sales declined by 0.2% this quarter, profitability improved compared to last year as our focus on driving operational efficiencies and actively reducing our general and administrative structure provided financial benefits again this quarter. We also remain focused on the business fundamentals that drive cash generation in the short- and long-term. Cash provided by operating activities was $34.0 million this quarter and we finished with net debt of $49.7 million as of Oct. 31, 2016 compared to net debt of $75.7 million at the beginning of the quarter,” said Brady’s CFO Aaron Pearce. “As a result of our strong cash generation, our balance sheet provides significant flexibility for future investment and returning funds to our shareholders.”