{"links":{"self":"https://clientapi.gcs-web.com/data/33381f6d-8eaa-46ae-8c63-71b3672717c2/filings/14351/html"},"meta":{"executionDate":"2026-07-16T16:02:40","cmsDomain":"https://bradyid.gcs-web.com"},"data":"\n\ne8vk\n\n\n\n
\n\n\n
 
\n
 
\n\n\n\n\n\n\n
UNITED STATES
\nSECURITIES AND EXCHANGE COMMISSION\n
\n\n
Washington, D.C. 20549\n
\n\n
FORM 8-K\n
\n\n\n
CURRENT REPORT
\nPursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934\n
\n\n
Date of Report (Date of earliest event reported): September 10, 2009
\n\n
BRADY CORPORATION\n
\n\n
(Exact name of registrant as specified in its charter)
\n\n\n
Commission File Number 1-14959
\n\n
\n\n\n\n \n \n \n\n\n\n\n \n \n \n\n\n \n \n \n\n\n
   
Wisconsin\n 39-0971239
(State of Incorporation)\n (IRS Employer Identification No.)
\n
\n\n
6555 West Good Hope Road
\nMilwaukee, Wisconsin 53223
\n(Address of Principal Executive Offices and Zip Code)
\n\n
(414) 358-6600
\n(Registrant’s Telephone Number)
\n\n
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the\nfiling obligation of the registrant under any of the following provisions:\n
\n\n\n
\n\n\n\n \n \n \n\n\n\n \n\n \n \n \n\n\n\n \n\n \n \n \n\n\n\n \n\n \n \n \n\n\n
o Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
 
o Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
 
o Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act\n(17 CFR 240.14d-2(b))
 
o Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act\n(17 CFR 240.13e-4(c))
\n
\n\n
 
\n
 
\n\n\n\n

 \n

\n\n\n

\n

 

\n\n

\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n
Item 2.02 RESULTS OF OPERATIONS AND FINANCIAL CONDITION\n
\n\n\n
     On September 11, 2009, Brady Corporation (the “Corporation”) issued a press release announcing\nits fiscal 2009 fourth quarter financial results. A copy of the press release is being furnished\nto the Securities and Exchange Commission as Exhibit 99.1 attached hereto and is incorporated\nherein by reference.\n
\n\n\n
Item 7.01 REGULATION FD DISCLOSURE\n
\n\n\n
     During\nthe Corporation’s fourth quarter earnings conference call, on September 11, 2009, the\nCorporation provided additional guidance for fiscal 2010 and stated that the forecasted revenues for\nfiscal 2010 are expected to be flat with fiscal 2009 revenues.\n
\n\n\n
Item 8.01 OTHER EVENTS\n
\n\n\n
   Increase in Annual Dividend\n
\n\n
     On September 10, 2009, the Corporation announced that its Board of Directors had increased the\nannual cash dividend on its Class A Common Stock from $0.68 to $0.70 per share. A quarterly\ndividend in the amount of $0.175 per share will be paid on October 30, 2009, to shareholders of\nrecord as of the close of business on October 9, 2009. A copy of the press release regarding the\ndividend is attached hereto as Exhibit 99.2 and is incorporated herein by reference.\n
\n\n
Director Compensation\n
\n\n\n
     On September 10, 2009, the Corporation’s Board of Directors authorized an increase in\ncompensation paid to its non-management Directors. Pursuant to the Board action, the annual cash\nretainer paid to non-management Directors will increase from $35,000 to $45,000 effective at the\nannual Board of Directors meeting to be held on November 19, 2009, and the annual grant of stock\noptions to each non-management Director will increase from 6,000 shares to 8,400 shares effective\nwith the annual grant on September 25, 2009. The remaining components of director compensation\nremain unchanged.\n
\n\n\n
Item 9.01 FINANCIAL STATEMENTS AND EXHIBITS\n
\n\n\n
(d) Exhibits.\n\n
\n\n
The following are filed as Exhibits to this Report.\n\n
\n
\n\n\n\n \n \n \n\n\n \n \n \n\n\n\n\n\n \n \n \n\n\n \n \n \n\n\n \n \n \n\n\n \n \n \n\n\n
   
Exhibit No. Description of Exhibit
 
  
99.1\n
 Press Release of Brady Corporation, dated September 11, 2009, relating to fourth\nquarter fiscal 2009 financial results.
 
  
99.2\n
 Press Release of Brady Corporation, dated September 10, 2009, related to increase in\nquarterly dividend.
\n
\n\n\n

 \n

\n\n\n

\n

 

\n\n

\n\n\n
SIGNATURE\n
\n\n
Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused\nthis report to be signed on its behalf by the undersigned hereunto duly authorized.\n
\n\n
\n\n\n\n \n \n \n \n \n\n\n\n\n \n \n \n \n \n\n\n \n \n \n \n \n\n\n \n \n \n \n \n\n\n \n \n \n \n \n\n\n
     
 \n
 BRADY CORPORATION  
Date: September 11, 2009
    
 \n
 /s/ Thomas J. Felmer\n
 
\nThomas J. Felmer\n		  
 \n
 Senior Vice President &
Chief Financial Officer		  
\n
\n\n\n

 \n

\n\n\n

\n

 

\n\n

\n\n\n
EXHIBIT INDEX\n
\n\n
\n\n\n\n \n \n \n\n\n \n \n \n\n\n \n \n \n\n\n\n\n\n \n \n \n\n\n \n \n \n\n\n \n \n \n\n\n \n \n \n\n\n
   
EXHIBIT  
NUMBER DESCRIPTION
 
  
99.1\n
 Press Release of Brady Corporation, dated September 11, 2009, relating to fourth\nquarter fiscal 2009 financial results.
 
  
99.2\n
 Press Release of Brady Corporation, dated September 10, 2009, related to increase in\nquarterly dividend.
\n
\n\n\n\n

 \n

\n\n\n\n\n\n
\n\nexv99w1\n\n\n\n
\n\n\n
Exhibit 99.1\n
\n\n\n
For More Information:
\nInvestor contact: Barbara Bolens 414-438-6940
\nMedia contact: Carole Herbstreit 414-438-6882\n\n
\n\n\n\n\n
Brady Corporation reports earnings for fiscal 2009 fourth quarter and year end \n\n
\n
MILWAUKEE (September 11, 2009)—Brady Corporation (NYSE:BRC) today reported results for its\nfiscal 2009 fourth quarter and fiscal year ended July 31, 2009.\n
\n\n\n
     Sales in the fiscal 2009 fourth quarter were $287.2 million compared to $396.8 million in the\nfourth quarter of fiscal 2008. Organic sales declined 23 percent, acquisition growth was flat, and\nforeign currency translation reduced sales by 5 percent. Regionally, organic sales were down 25\npercent in Europe, 24 percent in the Americas, and 15 percent in Asia/Pacific.\n
\n\n
     Net income for the fiscal 2009 fourth quarter was $19.2 million or $0.37 per diluted Class A\nCommon share, compared to $34.8 million or $0.64 per share in the fourth quarter of fiscal 2008.\nResults included cost-reduction charges of $3.4 million after tax in the quarter or $0.06 per\nshare.\n
\n\n
     Brady’s fiscal 2009 net sales were $1.209 billion compared to $1.523 billion in sales in\nfiscal 2008. Organic sales were down 16 percent, acquisitions added 1 percent to sales results,\nand foreign currency translation reduced sales by 5 percent. Net income for fiscal 2009, including\nafter-tax restructuring charges of $20.2 million or $0.38 per share, was $70.1 million or $1.33 per\nshare compared to $132.2 million or $2.41 per share in fiscal 2008.\n
\n\n
     “After a strong first quarter, the global economic downturn caused a 27 percent drop in our\nsales over the balance of the year. Despite this, we were able to earn $90 million in net income\nexcluding restructuring charges and generate $126 million in cash flow from operations,” said Brady\nPresident and CEO Frank M. Jaehnert. “In the second quarter, we took quick and aggressive actions\nto adjust our cost structure, including a more than 20 percent workforce reduction. We also\ncontinued to invest for our future and position the company for growth going forward by focusing on\nnew product development, acquisition strategy, e-business opportunities and continued productivity\nimprovement initiatives like the Brady Business Performance System. We believe that these\nstrategic investments along with our reduced cost structure position us well for the current\neconomic climate as well as for future economic recovery.”\n
\n\n

 \n

\n\n\n

\n

 

\n\n

\n\n
     “We expect that the challenges of the global recession will continue into at least the first\nhalf of fiscal 2010. As a result, we expect current fiscal year net income to be between $85 and\n95 million and earnings per diluted share of between $1.60 and $1.80. This guidance is based on\ncurrent exchange rates and assumes that sales will continue at or near current levels through the\nfirst half of our fiscal year, followed by modest growth in the second half of the year, resulting\nin a greater increase in earnings in the second half due to our reduced cost structure,” said Brady\nChief Financial Officer Thomas J. Felmer. “Our guidance also excludes additional expected aftertax\nrestructuring charges of approximately $11 million ($15 million pretax) or $0.21 per share, which\nwill result in annualized aftertax savings of $11 million ($15 million pretax), with $7 million\n($10 million pretax) in savings in the second half of fiscal 2010 and the balance in fiscal 2011.\n
\n\n
     “Fiscal 2009 restructuring and other cost-related actions resulted in approximately $100\nmillion in cost reductions, $60 million of which is expected to carry through fiscal 2010, with the\nremaining costs expected to return starting in the first quarter. We also expect capital\nexpenditures in fiscal 2010 of approximately $25 million, with depreciation and amortization\nconsistent with fiscal 2009 levels.”\n
\n\n
     A Webcast regarding fiscal 2009 results will be available at www.investor.bradycorp.com\nbeginning at 9:30 a.m. Central Daylight Time today.\n
\n\n
     Brady Corporation is an international manufacturer and marketer of complete solutions that\nidentify and protect premises, products and people. Its products include high-performance labels\nand signs, safety devices, printing systems and software, and precision die-cut materials. Founded\nin 1914, the company has more than 500,000 customers in electronics, telecommunications,\nmanufacturing, electrical, construction, education, medical and a variety of other industries.\nBrady is headquartered in Milwaukee and employs approximately 7,000 people at operations in the\nAmericas, Europe and Asia/Pacific. More information is available on the Internet at\nwww.bradycorp.com.\n
\n\n
###\n
\n\n
Brady believes that certain statements in this news release are “forward-looking statements” within\nthe meaning of the Private Securities Litigation Reform Act of 1995.  All statements related to\nfuture, not past, events included in this news release, including, without limitation, statements\nregarding Brady’s future financial position, business strategy, targets, projected sales, costs,\nearnings, capital expenditures, debt levels and cash flows, and plans and objectives of management\nfor future operations are forward-looking statements. When used in this news release, words such as\n“may,” “will,” “expect,” “intend,” “estimate,” “anticipate,” “believe,” “should,” “project” or\n“plan” or similar terminology are generally intended to identify forward-looking statements. These\nforward-looking statements by their nature address matters that are, to different degrees,\nuncertain and are subject to risks, assumptions and other factors, some of which are beyond Brady’s\ncontrol, that could cause actual results to differ materially from those expressed or implied by\nsuch forward-looking statements. For Brady, uncertainties arise from future financial performance\nof major markets Brady serves, which include, without limitation, telecommunications,\nmanufacturing, electrical, construction, laboratory, education, governmental, public utility,\ncomputer, transportation; difficulties in making and integrating acquisitions; risks associated\nwith newly acquired businesses; Brady’s ability to retain significant contracts and\n
\n

 \n

\n\n\n

\n

 

\n\n

\n\n\n
customers; future competition; Brady’s ability to develop and successfully market new products;\nchanges in the supply of, or price for, parts and components; increased price pressure from\nsuppliers and customers; interruptions to sources of supply; environmental, health and safety\ncompliance costs and liabilities; Brady’s ability to realize cost savings from operating\ninitiatives; Brady’s ability to attract and retain key talent; difficulties associated with\nexports; risks associated with international operations; fluctuations in currency rates versus the\nUS dollar; technology changes; potential write-offs of Brady’s substantial intangible assets; risks\nassociated with obtaining governmental approvals and maintaining regulatory compliance for new and\nexisting products; business interruptions due to implementing business systems; and numerous other\nmatters of national, regional and global scale, including those of a political, economic, business,\ncompetitive and regulatory nature contained from time to time in Brady’s U.S. Securities and\nExchange Commission filings, including, but not limited to, those factors listed in the “Risk\nFactors” section located in Item 1A of Part II of Brady’s Annual Report on Form 10-K for the period\nended July 31, 2008. These uncertainties may cause Brady’s actual future results to be materially\ndifferent than those expressed in its forward-looking statements. Brady does not undertake to\nupdate its forward-looking statements.\n
\n\n\n\n

 \n

\n\n\n\n\n\n

\n

 

\n

\n\n\n
BRADY CORPORATION AND SUBSIDIARIES
\nCONSOLIDATED STATEMENTS OF INCOME\n\n
\n\n
(Dollars in Thousands)\n\n
\n
\n\n\n\n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n\n\n \n \n \n \n\n\n \n \n \n \n \n \n \n\n\n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n\n\n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n\n\n\n\n\n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n\n\n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n\n\n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n\n\n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n\n\n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n\n\n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n\n\n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n\n\n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n\n\n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n\n\n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n\n\n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n\n\n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n\n\n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n\n\n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n\n\n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n\n\n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n\n\n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n\n\n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n\n\n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n\n\n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n\n\n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n\n\n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n\n\n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n\n\n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n\n\n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n\n\n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n\n\n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n\n\n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n\n\n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n\n\n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n\n\n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n\n\n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n\n\n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n\n\n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n\n\n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n\n\n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n\n\n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n\n\n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n\n\n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n\n\n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n\n\n
                         
  (Unaudited) 
  Three Months Ended July 31,  Twelve Months Ended July 31, 
          Percentage          Percentage 
  2009  2008  Change  2009  2008  Change 
Net sales
 $287,203  $396,849   -27.6% $1,208,702  $1,523,016   -20.6%
Cost of products sold
  151,081   204,920   -26.3%  631,119   778,821   -19.0%
 
                    
Gross margin
  136,122   191,929   -29.1%  577,583   744,195   -22.4%
 
                        
Operating expenses:
                        
Research and development
  8,856   11,284   -21.5%  34,181   40,607   -15.8%
Selling, general and administrative
  94,404   126,325   -25.3%  397,180   495,904   -19.9%
Restructuring charges
  2,573   —   —   25,849   —   — 
 
                    
Total operating expenses
  105,833   137,609   -23.1%  457,210   536,511   -14.8%
 
                        
Operating income
  30,289   54,320   -44.2%  120,373   207,684   -42.0%
 
                        
Other income and (expense):
                        
Investment and other income
  657   1,581   -58.4%  1,800   4,888   -63.2%
Interest expense
  (5,919)  (5,956)  -0.6%  (24,901)  (26,385)  -5.6%
 
                    
 
                        
Income before income taxes
  25,027   49,945   -49.9%  97,272   186,187   -47.8%
 
                        
Income taxes (2009 Q4 Restructuring — $1.6 million)
  5,825   15,170   -61.6%  27,150   53,999   -49.7%
 
                    
 
                        
Net income
 $19,202  $34,775   -44.8% $70,122  $132,188   -47.0%
 
                    
 
                        
Per Class A Nonvoting Common Share:
                        
Basic net income
 $0.37  $0.65   -43.1% $1.33  $2.45   -45.7%
Diluted net income
 $0.37  $0.64   -42.2% $1.33  $2.41   -44.8%
Dividends
 $0.17  $0.15   13.3% $0.68  $0.60   13.3%
 
                        
Per Class B Voting Common Share:
                        
Basic net income
 $0.37  $0.65   -43.1% $1.32  $2.43   -45.7%
Diluted net income
 $0.37  $0.64   -42.2% $1.31  $2.39   -45.2%
Dividends
 $0.17  $0.15   13.3% $0.66  $0.58   13.8%
 
                        
Weighted average common shares outstanding (in\nThousands):
                        
Basic
  52,308   53,790       52,559   54,168     
Diluted
  52,583   54,514       52,866   54,873     
\n
\n\n\n

 \n

\n\n\n

\n

 

\n\n\n

\n\n\n
BRADY CORPORATION AND SUBSIDIARIES
\nCONSOLIDATED BALANCE SHEETS\n\n
\n\n
(IN THOUSANDS)\n\n
\n
\n\n\n\n \n \n \n \n \n \n \n \n \n\n\n \n \n \n \n\n\n \n \n \n \n \n \n \n\n\n\n\n\n \n\n\n \n \n \n \n \n \n \n \n \n\n\n \n \n \n \n \n \n \n \n \n\n\n \n \n \n \n \n \n \n\n \n \n\n\n \n \n \n \n \n \n \n \n\n \n\n\n \n \n \n \n \n \n \n \n \n\n\n \n \n \n \n \n \n \n \n \n\n\n \n \n \n \n \n \n \n \n \n\n\n \n \n \n \n \n \n \n\n\n \n \n \n \n \n \n \n \n \n\n\n \n \n \n \n \n \n \n \n \n\n\n \n \n \n \n \n \n \n\n\n \n \n \n \n \n \n \n \n \n\n\n \n \n \n \n \n \n \n \n \n\n\n \n \n \n \n \n \n \n \n \n\n\n \n \n \n \n \n \n \n \n \n\n\n \n \n \n \n \n \n \n \n \n\n\n \n \n \n \n \n \n \n \n \n\n\n \n \n \n \n \n \n \n \n \n\n\n \n \n \n \n \n \n \n \n \n\n\n \n \n \n \n \n \n \n \n \n\n\n \n \n \n \n \n \n \n\n\n \n \n \n \n \n \n \n \n \n\n\n \n \n \n \n \n \n \n \n \n\n\n \n \n \n \n \n \n \n \n \n\n\n \n \n \n \n \n \n \n \n \n\n\n \n \n \n \n \n \n \n \n \n\n\n \n \n \n \n \n \n \n \n \n\n\n \n \n \n \n \n \n \n \n \n\n\n \n \n \n \n \n \n \n \n \n\n\n \n \n \n \n \n \n \n \n \n\n\n \n \n \n \n \n \n \n \n \n\n\n \n \n \n \n \n \n \n\n\n \n \n \n \n \n \n \n \n \n\n\n \n \n \n \n \n \n \n \n \n\n\n \n \n \n \n \n \n \n \n \n\n\n \n \n \n \n \n \n \n\n\n \n \n \n \n \n \n \n \n \n\n\n \n \n \n \n \n \n \n \n \n\n\n \n \n \n \n \n \n \n \n \n\n\n \n \n \n \n \n \n \n\n\n \n \n \n \n \n \n \n \n \n\n\n \n \n \n \n \n \n \n \n \n\n\n \n \n \n \n \n \n \n \n \n\n\n \n \n \n \n \n \n \n\n\n \n \n \n \n \n \n \n \n \n\n\n \n\n\n \n \n \n \n \n \n \n \n \n\n\n \n \n \n \n \n \n \n \n \n\n\n \n \n \n \n \n \n \n \n \n\n\n \n \n \n \n \n \n \n \n \n\n\n \n \n \n \n \n \n \n \n \n\n\n \n \n \n \n \n \n \n \n \n\n\n \n \n \n \n \n \n \n \n \n\n\n \n \n \n \n \n \n \n\n\n \n \n \n \n \n \n \n \n \n\n\n \n \n \n \n \n \n \n \n \n\n\n \n \n \n \n \n \n \n \n \n\n\n \n \n \n \n \n \n \n \n \n\n\n \n \n \n \n \n \n \n \n \n\n\n \n \n \n \n \n \n \n \n \n\n\n \n \n \n \n \n \n \n \n \n\n\n \n \n \n \n \n \n \n\n\n \n \n \n \n \n \n \n \n \n\n\n \n \n \n \n \n \n \n \n \n\n\n \n \n \n \n \n \n \n \n \n\n\n \n \n \n \n \n \n \n \n \n\n\n \n \n \n \n \n \n \n \n \n\n\n \n \n \n \n \n \n \n \n \n\n\n \n \n \n \n \n \n \n \n \n\n\n \n \n \n \n \n \n \n \n \n\n\n \n \n \n \n \n \n \n \n \n\n\n \n \n \n \n \n \n \n \n \n\n\n \n \n \n \n \n \n \n \n \n\n\n \n \n \n \n \n \n \n \n \n\n\n \n \n \n \n \n \n \n \n \n\n\n \n \n \n \n \n \n \n \n \n\n\n \n \n \n \n \n \n \n\n\n \n \n \n \n \n \n \n \n \n\n\n\n \n \n \n \n \n \n \n \n \n\n\n \n \n \n \n \n \n \n\n\n \n \n \n \n \n \n \n \n \n\n\n\n \n \n \n \n \n \n \n \n \n\n\n \n \n \n \n \n \n \n\n\n\n
         
  (Unaudited) 
  July 31, 2009  July 31, 2008 
ASSETS
Current assets:
        
Cash and cash equivalents
 $188,156  $258,355 
Accounts receivable, less allowance for losses ($7,931 and\n$10,059, respectively)
  191,189   262,461 
Inventories:
        
Finished products
  53,244   75,665 
Work-in-process
  13,159   21,187 
Raw materials and supplies
  27,405   37,767 
 
      
Total inventories
  93,808   134,619 
Prepaid expenses and other current assets
  36,274   43,650 
 
      
 
        
 
        
Total current assets
  509,427   699,085 
 
        
Other assets:
        
Goodwill
  751,173   789,107 
Other intangible assets, net
  115,754   144,791 
Deferred income taxes
  36,374   25,943 
Other
  18,551   21,381 
 
      
 
        
 
        
Total other assets
  921,852   981,222 
 
        
Property, plant and equipment:
        
Cost:
        
Land
  6,335   6,490 
Buildings and improvements
  96,968   98,646 
Machinery and equipment
  283,301   282,232 
Construction in progress
  7,869   6,040 
 
      
 
  394,473   393,408 
 
        
Less accumulated depreciation
  242,485   223,202 
 
      
 
        
 
        
Net property, plant and equipment
  151,988   170,206 
 
      
 
        
 
        
Total
 $1,583,267  $1,850,513 
 
      
 
        
LIABILITIES AND STOCKHOLDERS’ INVESTMENT
Current liabilities:
        
Accounts payable
 $83,793  $118,209 
Wages and amounts withheld from employees
  36,313   82,354 
Taxes, other than income taxes
  6,262   10,234 
Accrued income taxes
  5,964   21,523 
Other current liabilities
  45,247   54,810 
Current maturities on long-term debt
  44,893   21,431 
 
      
 
        
 
        
Total current liabilities
  222,472   308,561 
 
        
Long-term obligations, less current maturities
  346,457   457,143 
 
        
Other liabilities
  63,246   63,001 
 
      
 
        
 
        
Total liabilities
  632,175   828,705 
 
        
Stockholders’ investment:
        
Common stock:
        
Class A nonvoting common stock — Issued 51,261,487 and 51,261,487\nshares, respectively and outstanding 48,780,560 and 50,005,296\nshares, respectively
  513   513 
 
        
Class B voting common stock — Issued and outstanding, 3,538,628 shares
  35   35 
Additional paid-in capital
  298,466   292,769 
Income retained in the business
  673,342   639,059 
Treasury stock - 2,270,927 and 1,046,191 shares, respectively of Class A\nnonvoting common stock, at cost
  (69,823)  (33,234)
Accumulated other comprehensive income
  53,051   128,161 
Other
  (4,492)  (5,495)
 
      
 
        
Total stockholders’ investment
  951,092   1,021,808 
 
      
 
        
Total
 $1,583,267  $1,850,513 
 
      
\n
\n\n\n

 \n

\n\n\n

\n

 

\n\n

\n\n\n
BRADY CORPORATION AND SUBSIDIARIES
\nCONSOLIDATED STATEMENTS OF CASH FLOWS
\n(Dollars in Thousands)\n\n
\n
\n\n\n\n \n \n \n \n \n \n \n \n \n \n \n \n \n\n\n \n \n \n \n\n\n \n \n \n \n\n\n \n \n \n \n\n\n \n \n \n \n \n \n \n \n \n \n\n\n\n\n\n \n \n \n \n \n \n \n \n \n \n \n \n \n\n\n \n \n \n \n \n \n \n \n \n \n \n \n \n\n\n \n \n \n \n \n \n \n \n \n \n \n \n \n\n\n \n \n \n \n \n \n \n \n \n \n \n \n \n\n\n \n \n \n \n \n \n \n \n \n \n \n \n \n\n\n \n \n \n \n \n \n \n \n \n \n \n \n \n\n\n \n \n \n \n \n \n \n \n \n \n \n \n \n\n\n \n \n \n \n \n \n \n \n \n \n \n \n \n\n\n \n \n \n \n \n \n \n \n \n \n \n \n \n\n\n \n \n \n \n \n \n \n \n \n \n \n \n \n\n\n \n \n \n \n \n \n \n \n \n \n \n \n \n\n\n \n \n \n \n \n \n \n \n \n \n \n \n \n\n\n \n \n \n \n \n \n \n \n \n \n \n \n \n\n\n \n \n \n \n \n \n \n \n \n \n \n \n \n\n\n \n \n \n \n \n \n \n \n \n \n \n \n \n\n\n \n \n \n \n \n \n \n \n \n \n\n\n \n \n \n \n \n \n \n \n \n \n \n \n \n\n\n \n \n \n \n \n \n \n \n \n \n \n \n \n\n\n \n \n \n \n \n \n \n \n \n \n \n \n \n\n\n \n \n \n \n \n \n \n \n \n \n \n \n \n\n\n \n \n \n \n \n \n \n \n \n \n \n \n \n\n\n \n \n \n \n \n \n \n \n \n \n \n \n \n\n\n \n \n \n \n \n \n \n \n \n \n \n \n \n\n\n \n \n \n \n \n \n \n \n \n \n \n \n \n\n\n \n \n \n \n \n \n \n \n \n \n \n \n \n\n\n \n \n \n \n \n \n \n \n \n \n \n \n \n\n\n \n \n \n \n \n \n \n \n \n \n \n \n \n\n\n \n \n \n \n \n \n \n \n \n \n \n \n \n\n\n \n \n \n \n \n \n \n \n \n \n\n\n \n \n \n \n \n \n \n \n \n \n \n \n \n\n\n \n \n \n \n \n \n \n \n \n \n \n \n \n\n\n \n \n \n \n \n \n \n \n \n \n \n \n \n\n\n \n \n \n \n \n \n \n \n \n \n \n \n \n\n\n \n \n \n \n \n \n \n \n \n \n \n \n \n\n\n \n \n \n \n \n \n \n \n \n \n \n \n \n\n\n \n \n \n \n \n \n \n \n \n \n \n \n \n\n\n \n \n \n \n \n \n \n \n \n \n \n \n \n\n\n \n \n \n \n \n \n \n \n \n \n \n \n \n\n\n \n \n \n \n \n \n \n \n \n \n\n\n \n \n \n \n \n \n \n \n \n \n \n \n \n\n\n \n \n \n \n \n \n \n \n \n \n \n \n \n\n\n \n \n \n \n \n \n \n \n \n \n \n \n \n\n\n \n \n \n \n \n \n \n \n \n \n \n \n \n\n\n \n \n \n \n \n \n \n \n \n \n \n \n \n\n\n \n \n \n \n \n \n \n \n \n \n\n\n \n \n \n \n \n \n \n \n \n \n \n \n \n\n\n \n \n \n \n \n \n \n \n \n \n \n \n \n\n\n \n \n \n \n \n \n \n \n \n \n\n\n \n \n \n \n \n \n \n \n \n \n \n \n \n\n\n \n \n \n \n \n \n \n \n \n \n \n \n \n\n\n \n \n \n \n \n \n \n \n \n \n \n \n \n\n\n \n \n \n \n \n \n \n \n \n \n \n \n \n\n\n \n \n \n \n \n \n \n \n \n \n \n \n \n\n\n \n \n \n \n \n \n \n \n \n \n \n \n \n\n\n \n \n \n \n \n \n \n \n \n \n \n \n \n\n\n \n \n \n \n \n \n \n \n \n \n \n \n \n\n\n \n \n \n \n \n \n \n \n \n \n \n \n \n\n\n \n \n \n \n \n \n \n \n \n \n \n \n \n\n\n \n \n \n \n \n \n \n \n \n \n\n\n \n \n \n \n \n \n \n \n \n \n \n \n \n\n\n \n \n \n \n \n \n \n \n \n \n\n\n
             
  (Unaudited) 
  Twelve Months Ended 
  July 31, 
  2009  2008  2007 
Operating activities:
            
Net income
 $70,122  $132,188  $109,388 
Adjustments to reconcile net income to net cash provided by operating activities:
            
Depreciation and amortization
  54,851   60,587   53,856 
Deferred income taxes
  (8,640)  (1,501)  70 
Loss (gain) on disposal of property, plant & equipment
  383   1,672   13 
Non-cash portion of stock-based compensation expense
  7,731   10,228   6,907 
Non-cash portion of restructuring charges
  2,469   —   — 
Changes in operating assets and liabilities (net of effects of business acquisitions):
            
Accounts receivable
  53,389   (3,704)  (17,021)
Inventories
  34,749   16,224   (12,323)
Prepaid expenses and other assets
  (2,423)  (629)  (13,307)
Accounts payable and accrued liabilities
  (78,684)  18,641   8,058 
Income taxes
  (9,673)  (8,492)  (6,821)
Other liabilities
  2,371   340   7,198 
 
         
Net cash provided by operating activities
  126,645   225,554   136,018 
 
            
Investing activities:
            
Acquisition of businesses, net of cash acquired
  —   (29,346)  (159,475)
Payments of contingent consideration
  (1,405)  (5,798)  (10,906)
Purchases of short-term investments
  —   (10,350)  (68,100)
Sales of short-term investments
  —   29,550   60,400 
Purchases of property, plant and equipment
  (24,027)  (26,407)  (51,940)
Purchase price adjustment
  3,514         
Net settlement of foreign currency contract
  —         
Proceeds from sale of property, plant and equipment
  796   880   2,166 
Other
  2,078   2,263   (9,184)
 
         
Net cash used in investing activities
  (19,044)  (39,208)  (237,039)
 
            
Financing activities:
            
Payment of dividends
  (35,839)  (32,464)  (30,141)
Proceeds from issuance of common stock
  1,683   14,500   6,829 
Principal payments on debt
  (87,224)  (39,443)  (110,870)
Proceeds from issuance of debt
  —   18,000   259,300 
Purchase of treasury stock
  (40,267)  (42,175)  — 
Excess income tax benefit from the exercise of stock options & deferred comp
  1,336   4,638   4,303 
 
         
Net (used in) provided by financing activities
  (160,311)  (76,944)  129,421 
Effect of exchange rate changes on cash
  (17,489)  6,107   1,438 
 
            
Net (decrease) increase in cash and cash equivalents
  (70,199)  115,509   29,838 
Cash and cash equivalents, beginning of period
  258,355   142,846   113,008 
 
         
 
            
Cash and cash equivalents, end of period
  188,156   258,355   142,846 
 
         
 
            
Supplemental disclosures:
            
Cash paid during the period for:
            
Interest, net of capitalized interest
 $21,899   26,308  $19,842 
Income taxes, net of refunds
  32,995   51,834   49,233 
 
            
Acquisitions:
            
Fair value of assets acquired, net of cash
 $—   21,508  $87,398 
Liabilities assumed
  —   (9,038)  (33,248)
Goodwill
  —   16,876   105,325 
 
         
Net cash paid for acquisitions
 $    29,346  $159,475 
 
         
\n
\n\n\n\n

 \n

\n\n\n\n\n\n

\n

 

\n\n

\n\n
Information by regional segment for the three and twelve months ended July 31, 2009 and 2008 is as follows:\n
\n\n
\n\n\n\n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n\n\n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n\n\n \n \n \n \n \n \n \n \n \n \n \n \n \n\n\n\n\n\n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n\n\n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n\n\n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n\n\n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n\n\n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n\n\n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n\n\n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n\n\n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n\n\n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n\n\n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n\n\n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n\n\n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n\n\n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n\n\n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n\n\n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n\n\n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n\n\n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n\n\n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n\n\n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n\n\n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n\n\n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n\n\n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n\n\n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n\n\n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n\n\n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n\n\n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n\n\n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n\n\n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n\n\n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n\n\n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n\n\n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n\n\n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n\n\n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n\n\n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n\n\n
                         
                  Corporate and Total
(in thousands) Americas Europe Asia-Pacific Total Region Eliminations Company
SALES TO EXTERNAL CUSTOMERS
                        
Three months ended:
                        
July 31, 2009
 $124,867  $86,567  $75,769  $287,203   —  $287,203 
July 31, 2008
  169,303   131,765   95,781   396,849   —   396,849 
July 31, 2007
  169,063   114,037   79,665   362,765   —   362,765 
 
                        
Twelve months ended:
                        
July 31, 2009
 $534,440  $367,156  $307,106  $1,208,702   —  $1,208,702 
July 31, 2008
  667,106   496,715   359,195   1,523,016   —   1,523,016 
July 31, 2007
  609,855   416,514   336,262   1,362,631   —   1,362,631 
 
                        
SALES GROWTH INFORMATION
                        
Three months ended July 31, 2009:
                        
Base
  -24.5%  -25.0%  -15.0%  -22.4%  —   -22.4%
Currency
  -1.7%  -9.3%  -5.9%    -5.3%  —   -5.3%
Acquisitions
  0.0%  0.0%  0.0%  0.0%  —   0.0%
Total
  -26.2%  -34.3%  -20.9%    -27.7%  —   -27.7%
 
                        
Twelve months ended July 31, 2009:
                        
Base
  -18.5%  -18.1%  -10.3%  -16.4%  —   -16.4%
Currency
  -1.7%  -9.4%  -4.2%  -4.8%  —   -4.8%
Acquisitions
  0.3%  1.4%  0.0%  0.6%  —   0.6%
Total
  -19.9%  -26.1%  -14.5%  -20.6%  —   -20.6%
 
                        
SEGMENT PROFIT (LOSS)
                        
Three months ended:
                        
July 31, 2009
 $28,300  $22,018  $9,072  $59,390  $(1,320)  58,070 
July 31, 2008
 $41,212  $38,214  $15,129  $94,555  $(2,648)  91,907 
Percentage increase (decrease)
  -31.3%  -42.4%  -40.0%  -37.2%  -50.2%  -36.8%
 
                        
Twelve months ended:
                        
July 31, 2009
 $114,404  $99,875  $42,575  $256,854  $(7,952) $248,902 
July 31, 2008
 $157,523  $135,426  $58,234  $351,183  $(9,048) $342,135 
Percentage increase (decrease)
  -27.4%  -26.3%  -26.9%    -26.9%  -12.1%  -27.3%
\n
\n\n\n
NET INCOME RECONCILIATION (in thousands)\n
\n\n
\n\n\n\n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n\n\n \n \n \n \n \n \n \n\n\n \n \n \n \n \n \n \n \n \n \n \n \n \n\n\n\n\n\n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n\n\n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n\n\n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n\n\n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n\n\n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n\n\n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n\n\n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n\n\n\n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n\n\n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n\n\n\n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n\n\n\n
                 
  Three months ended:  Twelve months ended: 
  July 31, 2009  July 31, 2008  July 31, 2009  July 31, 2008 
Total profit for reportable segments
 $59,390  $94,555  $256,854  $351,183 
Corporate and eliminations
  (1,320) $(2,648) $(7,952) $(9,048)
Unallocated amounts:
                
Administrative costs
  (25,208)  (37,587)  (102,680)  (134,451)
Restructuring costs
  (2,573)      (25,849)    
Investment and other income
  657   1,581   1,800   4,888 
Interest expense
  (5,919)  (5,956)  (24,901)  (26,385)
Income before income taxes
  25,027   49,945  $97,272   186,187 
Income taxes (2009 Q4 Restructuring — $1.6 million)
  (5,825)  (15,170)  (27,150)  (53,999)
Net income
 $19,202  $34,775  $70,122  $132,188 
\n
\n\n\n

 \n

\n\n\n

\n

 

\n\n

\n\n\n
RECONCILIATION OF GAAP MEASURES TO NON-GAAP MEASURES
\n(in thousands)\n\n
\n
\n\n\n\n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n\n\n \n \n \n \n\n\n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n\n\n\n\n\n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n\n\n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n\n\n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n\n\n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n\n\n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n\n\n \n \n \n\n\n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n\n\n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n\n\n
                     
  Fiscal 2008 
  Q1  Q2  Q3  Q4  Total 
EBITDA (1)
                    
Net income
 $36,370  $26,690  $34,353  $34,775  $132,188 
Interest expense
  6,720   6,747   6,962   5,956   26,385 
Income taxes
  15,366   11,276   12,187   15,170   53,999 
Depreciation and\namortization
  14,168   15,501   16,013   14,905   60,587 
           
 
                    
EBITDA (non-GAAP measure)
 $72,624  $60,214  $69,515  $70,806  $273,159 
\n
\n\n
\n\n\n\n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n\n\n \n \n \n\n\n \n \n \n \n \n \n \n \n \n \n \n\n\n\n\n\n \n \n \n\n\n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n\n\n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n\n\n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n\n\n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n\n\n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n\n\n \n \n \n\n\n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n\n\n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n\n\n
                     
  Fiscal 2009
  Q1 Q2 Q3 Q4 Total
   
EBITDA (1)
                    
Net income
 $37,110  $(4,150) $17,960  $19,202  $70,122 
Interest expense
  6,361   6,314   6,307   5,919   24,901 
Income taxes
  14,575   756   5,994   5,825   27,150 
Depreciation and\namortization
  13,712   13,481   13,479   14,179   54,851 
           
 
                    
EBITDA (non-GAAP measure)
 $71,758  $16,401  $43,740  $45,125  $177,024 
\n
\n\n\n\n
\n
 
\n
\n\n\n\n \n \n \n\n\n\n \n \n \n\n\n
(1) Brady is presenting EBITDA because it is used by many of our investors and lenders, and is\npresented as a convenience to them. EBITDA represents net income before interest expense, income\ntaxes and depreciation and amortization. EBITDA is not a calculation based on generally accepted\naccounting principles (GAAP). The amounts included in the EBITDA calculation, however, are\nderived from amounts included in the Condensed Consolidated Statements of Income data. EBITDA\nshould not be considered as an alternative to net income or operating income as an indicator of\nthe company’s operating performance, or as an alternative to operating cash flows as a measure of\nliquidity. The EBITDA measure presented may not always be comparable to similarly titled measures\nreported by other companies due to differences in the components of the calculation.
\n\n\n\n\n

 \n

\n\n\n\n\n\n
\n\nexv99w2\n\n\n\n
\n\n\n
EXHIBIT 99.2\n
\n\n\n
For More Information Contact:
\nBarbara Bolens (414) 438-6940\n\n
\n\n
For Immediate Release\n
\n\n\n
Brady Corporation increases dividend to shareholders for 24th straight year\n
\n\n
MILWAUKEE (September 10, 2009)—Brady Corporation’s (NYSE: BRC) Board of Directors has announced an\nincrease in its annual dividend to shareholders of the company’s Class A Common Stock from $0.68 to\n$0.70 per share. A quarterly dividend will be paid on October 30, 2009, to shareholders of record\nat the close of business on October 9, 2009.\n
\n\n\n
     “We are pleased to increase our dividend for the twenty-fourth consecutive year. This is a\ntestament to the financial strength of our company and our commitment to create shareholder value\neven in the middle of the most challenging economic environment in decades,” said Brady President\nand Chief Executive Officer Frank M. Jaehnert.\n
\n\n
     Brady Corporation is an international manufacturer and marketer of complete solutions that\nidentify and protect premises, products and people. Its products help customers increase safety,\nsecurity, productivity and performance and include high-performance labels and signs, safety\ndevices, printing systems and software, and precision die-cut materials. Founded in 1914, the\ncompany has more than 500,000 customers in electronics, telecommunications, manufacturing,\nelectrical, construction, education, medical and a variety of other industries. Brady is\nheadquartered in Milwaukee and employs about 7,000 people at operations in the Americas, Europe and\nAsia/Pacific.\n
\n\n
     More information is available on the Internet at www.bradycorp.com\n
\n\n
###\n
\n\n\n\n

\n

\n\n\n\n\n\n","error":null}