Brady Corporation Reports 4Q, Full Year 2019 Fiscal Results

Brady Corporation reported its financial results for its fiscal 2019 fourth quarter ended July 31, 2019.

Income before income taxes was $47.1 million for the fourth quarter of fiscal 2019 compared to $45.2 million for the fourth quarter of fiscal 2018. Income before income taxes included a gain on the sale of the Runelandhs business of $4.7 million in the fourth quar-ter of fiscal 2018. Net income for the quarter ended July 31, 2019, was $36.6 million compared to $35.0 million in the same quarter last year.

Earnings per diluted Class A Nonvoting Common Share were $0.68 for the fourth quarter of fiscal 2019, compared to $0.66 in the same quarter last year. Results were increased in the fourth quarter of fiscal 2018 by approximately $0.09 per diluted Class A Nonvoting Common Share due to the sale of the Runelandhs business.

Sales for the quarter ended July 31, 2019 decreased 0.7%, which consisted of organic sales growth of 1.7%, a decrease in sales of 1.9% from foreign currency translation, and a decline in sales of 0.5% from the divestiture of our Runelandhs business during the fourth quarter of fiscal 2018. Sales for the quarter ended July 31, 2019 were $295.3 million compared to $297.5 million in the same quarter last year. By segment, sales increased 1.8% in Identification Solutions and decreased 7.8% in Workplace Safety, which consisted of organic sales growth of 3.3% in Identification Solutions and an organic sales decline of 2.6% in Workplace Safety.

Year Ended July 31, 2019 Financial Results

Income before income taxes increased 8.3%, finishing at $164.6 million for the year ended July 31, 2019, compared to $152.0 million last year. Fiscal 2018 results include a gain on the sale of the Runelandhs business of $4.7 million.

Net income for the year ended July 31, 2019, was $131.3 million compared to $91.1 million last year. Fiscal 2018 net income was reduced by $21.1 million due to income tax charges primarily related to the enactment of US tax legislation, and was increased by $4.7 million due to the sale of the Runelandhs business. Earnings per diluted Class A Nonvoting Common Share were $2.46 for the year ended July 31, 2019, compared to $1.73 last year.

Sales for the year ended July 31, 2019 decreased 1.1%, which consisted of organic sales growth of 2.8%, a decrease in sales of 2.6% from foreign currency translation, and a de-cline in sales of 1.3% from the divestiture of the Runelandhs business during fiscal 2018. Fiscal 2019 sales were $1.16 billion compared to $1.17 billion last year.

By segment, sales increased 2.0% in Identification Solutions and decreased 9.2% in Workplace Safety, which consisted of organic sales growth of 4.1% in Identification Solutions and an organic sales decline of 0.7% in Workplace Safety.

“Our investment in the development of innovative new products, and our dedication to providing excellent customer service continue to drive positive results as we posted our ninth consecutive quarter of organic sales growth,” said J. Michael Nauman, Brady’s pres-ident and CEO. “We have seen signs of a weakening industrial economic environment. However, our previous investments along with strong execution have helped us continue to generate organic sales growth in this difficult environment.”

“Our organic sales growth and our focus on operational efficiencies continue to drive prof-it improvements and strong cash flow,” said Brady CFO Aaron Pearce. “Our net cash posi-tion increased by $100.1 million this fiscal year, finishing at $228.9 million at July 31, 2019. We generated $162.2 million of cash from operating activities this year, we invest-ed $32.8 million in capital expenditures, and we returned $47.9 million to our shareholders in the form of dividends and share buybacks.”