{"links":{"self":"https://clientapi.gcs-web.com/data/33381f6d-8eaa-46ae-8c63-71b3672717c2/filings/14596/html"},"meta":{"executionDate":"2026-07-17T18:13:58","cmsDomain":"https://bradyid.gcs-web.com"},"data":"\n\nForm 8-K\n\n\n\n\n
\n 
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UNITED STATES
\nSECURITIES AND\nEXCHANGE COMMISSION
\nWashington, D.C. 20549\n\n\n

FORM 8-K\n\n

CURRENT REPORT
\nPursuant to\nSection 13 or 15(d) of the Securities Exchange Act of 1934\n\n

Date of Report (Date of earliest\nevent reported): November 19, 2009\n\n\n

BRADY CORPORATION
\n(Exact name of registrant as specified in its charter)\n\n\n\n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n\n
     
Wisconsin 1-14959 39-0971239
(State or other Jurisdiction of Incorporation) (Commission File Number) (IRS Employer Identification No.)
\n\n\n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n\n
   
6555 West Good Hope\nRoad
\nMilwaukee, Wisconsin
\n		 53223
(Address of Principal Executive Offices) (Zip Code)
\n\n\n

Registrant’s telephone number,\nincluding area code: (414) 358-6600\n\n\n

Check the appropriate box below if the\nForm 8-K filing is intended to simultaneously satisfy the filing obligation of\nthe registrant under any of the following provisions:\n\n

o Written\ncommunications pursuant to Rule 425 under the Securities Act (17 CFR\n230.425)
\n
\no Soliciting material pursuant\nto Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
\n
\no Pre-commencement communications pursuant to Rule\n14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
\n
\no Pre-commencement communications pursuant to Rule\n13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
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Item 2.02 RESULTS OF OPERATIONS AND FINANCIAL CONDITION\n
\n\n\n
On November 19, 2009, Brady Corporation (the “Corporation”) issued a press release announcing\nits fiscal 2010 first quarter financial results. A copy of the press release is being furnished to\nthe Securities and Exchange Commission as Exhibit 99.1 attached hereto and is incorporated herein\nby reference.\n
\n\n
Item 5.02 DEPARTURE OF DIRECTORS OR CERTAIN OFFICERS; ELECTION OF DIRECTORS; APPOINTMENT OF CERTAIN\nOFFICERS; COMPENSATORY ARRANGEMENTS OF CERTAIN OFFICERS\n
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(b) Effective November 19, 2009, Directors Frank R. Jarc and Gary E. Nei retired from the\nCorporation’s Board of Directors.
 
(d) On November 19, 2009, at the Corporation’s Annual Shareholders’ Meeting, the holders of the\nCorporation’s Class B Common Stock elected the following persons to serve as the Corporation’s\ndirectors until the next annual meeting of shareholders and until their successors have been\nelected:
\n
\n\n\n
Patrick W. Allender
\nRichard A. Bemis
\nRobert C. Buchanan
\nChan W. Galbato
\nConrad G. Goodkind
\nFrank W. Harris
\nFrank M. Jaehnert
\nElizabeth I. Pungello
\nBradley C. Richardson\n
\n\n
Item 8.01 OTHER EVENTS\n
\n\n\n
On November 19, 2009, the Board of Directors of the Corporation, upon the recommendation of\nits Corporate Governance Committee, created the position of Lead Director. The current chair of\nthe Corporation’s Corporate Governance Committee, Mr. Conrad Goodkind, will serve as the initial\nLead Director, which position will be paid an annual retainer of $10,000.\n
\n\n
Item 9.01 FINANCIAL STATEMENTS AND EXHIBITS\n
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(d) Exhibits.
\n
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The following is filed as an Exhibit to this Report.\n
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Exhibit No. Description of Exhibit
99.1\n
 Press Release of Brady Corporation, dated November 19, 2009, relating to fiscal 2010 first quarter financial results.
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SIGNATURE\n
\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
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 BRADY CORPORATION
\n 		 
Date: November 20, 2009 /s/ Thomas J. Felmer\n  
 Thomas J. Felmer  
 Senior Vice President &\nChief Financial Officer  
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EXHIBIT INDEX\n
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EXHIBIT  
NUMBER DESCRIPTION
99.1\n
 Press Release of Brady Corporation, dated November 19, 2009, relating to fiscal 2010 first quarter financial results.
\n
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 \n

\n\n\n\n\n\n
\n\nExhibit 99.1\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
Brady Corporation reports sales and earnings for fiscal 2010 first quarter\n
\n\n\n
MILWAUKEE (November 19, 2009)—Brady Corporation (NYSE:BRC) today reported sales and earnings for\nits fiscal 2010 first quarter ended October 31, 2009.\n
\n\n
Sales for the quarter were $318.5 million compared to $378.3 million in the first quarter of\nfiscal 2009. Organic sales declined 15.9 percent in the quarter and acquisitions added 0.1 percent\nto sales. Currency exchange had no impact on sales results in the quarter. By segment, sales were\ndown 15.3 percent in the Americas, 12.8 percent in Europe and 19.5 percent in Asia/Pacific.\n
\n\n
Net income in the fiscal 2010 first quarter, including $2.6 million in after-tax restructuring\ncharges, was $21.7 million compared to $37.1 million in the same quarter last year. Earnings per\ndiluted Class A Common share were $0.41 in the first quarter of fiscal 2010, compared to $0.69 per\ndiluted share in the prior year’s quarter. Excluding restructuring charges, earnings per share\nwere $0.46 in the current quarter compared to $0.71 in the first quarter of fiscal 2009.\n
\n\n
“I’m encouraged to see sales improve by 11 percent from our last fiscal quarter, driven by a\nstabilization in our markets, as well as new-product and market-based initiatives. Compared to\nlast year’s first quarter, our gross margins have improved by 160 basis points as a direct result\nof our ongoing cost-reduction efforts,” said Frank M. Jaehnert, Brady’s president and chief\nexecutive officer. “Our continued investments in new product development resulted in a number of\nsuccessful launches of new proprietary products in the first quarter, including the BMP21™ Portable\nPrinter for wire identification and general labeling, which has already been well-received by our\nmarkets.”\n
\n\n
“Our balance sheet remains strong and our cash position improved from $188 million to $208\nmillion in the quarter. This will allow us to take advantage of opportunities for future\ninvestments, such as new product development, core growth opportunities and acquisitions,” said\nBrady Chief Financial Officer Thomas J. Felmer. “While we are encouraged by our results, we\nremain cautious on our outlook because of limited visibility. We are maintaining our original net\nincome and earnings per diluted share guidance for the current fiscal year of $85 to $95 million\nand $1.60 to $1.80 per share, excluding pretax restructuring charges of $15 million and $0.20 per\nshare.”\n
\n\n
A Web cast regarding fiscal 2010 first quarter results will be available at\nwww.investor.bradycorp.com beginning at 7:00 a.m. Central time.\n
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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 approximately 7,000 people at operations in the Americas,\nEurope and Asia/Pacific. Brady’s fiscal 2009 sales were approximately $1.2 billion.\nBrady stock trades on the New York Stock Exchange under the symbol BRC. More information is\navailable on the Internet at www.bradycorp.com.\n
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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 the length or severity of the\ncurrent worldwide economic downturn or timing or strength of a subsequent recovery; future\nfinancial performance of major markets Brady serves, which include, without limitation,\ntelecommunications, manufacturing, electrical, construction, laboratory, education, governmental,\npublic utility, computer, transportation; difficulties in making and integrating acquisitions;\nrisks associated with newly acquired businesses; Brady’s ability to develop and successfully market\nnew products; changes in the supply of, or price for, parts and components; increased price\npressure from suppliers and customers; fluctuations in currency rates versus the US dollar;\nunforeseen tax consequences; potential write-offs of Brady’s substantial intangible assets; Brady’s\nability to retain significant contracts and customers; risks associated with international\noperations; Brady’s ability to attract and retain key talent; Brady’s ability to maintain\ncompliance with its debt covenants; technology changes; business interruptions due to implementing\nbusiness systems; environmental, health and safety compliance costs and liabilities; future\ncompetition; interruptions to sources of supply; Brady’s ability to realize cost savings from\noperating initiatives; difficulties associated with exports; risks associated with restructuring\nplans; risks associated with obtaining governmental approvals and maintaining regulatory compliance\nfor new and existing products; and numerous other matters of national, regional and global scale,\nincluding those of a political, economic, business, competitive and regulatory nature contained\nfrom time to time in Brady’s U.S. Securities and Exchange Commission filings, including, but not\nlimited to, those factors listed in the “Risk Factors” section located in Item 1A of Part I of\nBrady’s Form 10-K for the year ended July 31, 2009. These uncertainties may cause Brady’s actual\nfuture results to be materially different than those expressed in its forward-looking statements.\nBrady does not undertake to update its forward-looking statements.\n
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\n\n
BRADY CORPORATION AND SUBSIDIARIES
\nCONDENSED CONSOLIDATED 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
             
  (Unaudited) 
  Three Months Ended October 31, 
          Percentage 
  2009  2008  Change 
Net sales
 $318,486  $378,317   -15.8%
Cost of products sold
  161,043   197,171   -18.3%
 
          
Gross margin
  157,443   181,146   -13.1%
 
            
Operating expenses:
            
Research and development
  9,609   9,056   6.1%
Selling, general and administrative
  108,676   114,257   -4.9%
Restructuring charge
  3,601   1,639   119.7%
 
          
Total operating expenses
  121,886   124,952   -2.5%
 
            
Operating income
  35,557   56,194   -36.7%
 
            
Other income and (expense):
            
Investment and other income
  48   1,852   -97.4%
Interest expense
  (5,162)  (6,361)  -18.8%
 
          
 
            
Income before income taxes
  30,443   51,685   -41.1%
 
            
Income taxes
  8,775   14,575   -39.8%
 
          
 
            
Net income
 $21,668  $37,110   -41.6%
 
          
 
            
Per Class A Nonvoting Common Share:
            
Basic net income
 $0.41  $0.70   -41.4%
Diluted net income
 $0.41  $0.69   -40.6%
Dividends
 $0.175  $0.17   2.9%
 
            
Per Class B Voting Common Share:
            
Basic net income
 $0.40  $0.68   -41.2%
Diluted net income
 $0.39  $0.67   -41.8%
Dividends
 $0.158  $0.15   5.3%
 
            
Weighted average common shares outstanding (in thousands):
            
Basic
  52,337   53,291     
Diluted
  52,943   53,938     
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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
         
  (Unaudited)  (Unaudited) 
  October 31, 2009  July 31, 2009 
 
        
ASSETS
 
        
Current assets:
        
Cash and cash equivalents
 $207,638  $188,156 
Accounts receivable, less allowance for losses ($8,484 and\n$7,931, respectively)
  224,494   191,189 
Inventories:
        
Finished products
  54,373   53,244 
Work-in-process
  12,358   13,159 
Raw materials and supplies
  26,227   27,405 
 
      
Total inventories
  92,958   93,808 
Prepaid expenses and other current assets
  40,139   36,274 
 
      
 
        
Total current assets
  565,229   509,427 
 
        
Other assets:
        
Goodwill
  764,001   751,173 
Other intangible assets, net
  113,421   115,754 
Deferred income taxes
  37,503   36,374 
Other
  18,990   18,551 
 
      
 
        
Total other assets
  933,915   921,852 
 
        
Property, plant and equipment:
        
Cost:
        
Land
  6,405   6,335 
Buildings and improvements
  98,777   96,968 
Machinery and equipment
  285,724   283,301 
Construction in progress
  12,955   7,869 
 
      
 
  403,861   394,473 
 
        
Less accumulated depreciation
  249,217   242,485 
 
      
 
        
Property, plant and equipment — net
  154,644   151,988 
 
      
 
        
Total
 $1,653,788  $1,583,267 
 
      
 
        
LIABILITIES AND STOCKHOLDERS’ INVESTMENT
 
        
Current liabilities:
        
Accounts payable
 $89,359  $83,793 
Wages and amounts withheld from employees
  49,864   36,313 
Taxes, other than income taxes
  7,841   6,262 
Accrued income taxes
  9,635   5,964 
Other current liabilities
  48,249   45,247 
Current maturities on long-term debt
  44,893   44,893 
 
      
 
        
Total current liabilities
  249,841   222,472 
 
        
Long-term obligations, less current maturities
  346,457   346,457 
 
      
 
        
Other liabilities
  65,857   63,246 
 
        
Total liabilities
  662,155   632,175 
 
        
Stockholders’ investment:
        
Common stock:
        
Class A nonvoting common stock — Issued 51,261,487 and 51,261,487 shares, respectively and outstanding 48,810,446 and 48,780,560 shares, respectively
  513   513 
Class B voting common stock — Issued and outstanding, 3,538,628 shares
  35   35 
Additional paid-in capital
  301,123   298,466 
Income retained in the business
  685,871   673,342 
Treasury\nstock — 2,241,041 and 2,270,927 shares, respectively of Class A nonvoting common stock, at cost
  (68,906)  (69,823)
Accumulated other comprehensive income
  77,223   53,051 
Other
  (4,226)  (4,492)
 
      
 
        
Total stockholders’ investment
  991,633   951,092 
 
      
 
        
Total
 $1,653,788  $1,583,267 
 
      
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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
         
  (Unaudited) 
  Three Months Ended 
  October 31 
  2009  2008 
Operating activities:
        
Net income
 $21,668  $37,110 
Adjustments to reconcile net income to net cash provided by operating activities:
        
Depreciation and amortization
  13,817   13,712 
Deferred income taxes
  (2,985)  (499)
Non-cash portion of stock-based compensation expense
  2,952   2,092 
Non-cash portion of restructuring
  288   335 
Other
  (4)  (34)
Changes in operating assets and liabilities (net of effects of business acquisitions):
        
Accounts receivable
  (28,818)  (12,571)
Inventories
  3,144   (10,360)
Prepaid expenses and other assets
  (657)  (8,147)
Accounts payable and accrued liabilities
  20,269   (21,679)
Income taxes
  4,626   (3,513)
Other liabilities
  (464)  (1,167)
 
      
Net cash provided by (used in) operating activities
  33,836   (4,721)
 
        
Investing activities:
        
Acquisition of business, net of cash acquired
  (1,840)  — 
Purchases of property, plant and equipment
  (9,001)  (6,429)
Other
  80   1,300 
 
      
Net cash used in investing activities
  (10,761)  (5,129)
 
        
Financing activities:
        
Payment of dividends
  (8,578)  (9,061)
Proceeds from issuance of common stock
  716   1,162 
Principal payments on debt
  —   (1)
Purchase of treasury stock
  —   (36,508)
Net income tax benefit from the exercise of stock options and deferred\ncompensation distributions
  173   667 
 
      
Net cash (used in) financing activities
  (7,689)  (43,741)
Effect of exchange rate changes on cash
  4,096   (25,972)
 
        
Net increase (decrease) in cash and cash equivalents
  19,482   (79,563)
Cash and cash equivalents, beginning of period
  188,156   258,355 
 
      
 
        
Cash and cash equivalents, end of period
  207,638   178,792 
 
      
 
Supplemental disclosures:
        
Cash paid during the period for:
        
Interest, net of capitalized interest
 $7,904  $9,298 
Income taxes, net of refunds
  8,393   15,605 
 
        
Acquisitions:
        
Fair value of assets acquired, net of cash
 $1,104  $— 
Liabilities assumed
  (42)  — 
Goodwill
  778   — 
 
      
Net cash paid for acquisitions
 $1,840  $— 
 
      
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Information by regional segment for the three months ended October 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
                         
                  Corporate and    
(in thousands) Americas  Europe  Asia-Pacific  Total Region  Eliminations  Total 
SALES TO EXTERNAL CUSTOMERS
                        
Three months ended:
                        
October 31, 2009
 $136,239  $94,335  $87,912  $318,486   —  $318,486 
October 31, 2008
 $160,916  $108,215  $109,186  $378,317   —  $378,317 
 
                        
SALES GROWTH INFORMATION
                        
Three months ended October 31, 2009:
                        
Base
  -15.2%  -12.3%  -20.4%  -15.9%   —   -15.9%
Currency
  -0.1%  -0.7%  0.9%  0.0%  —   0.0%
Acquisitions
  0.0%  0.2%  0.0%  0.1%  —   0.1%
 
                  
Total
  -15.3%  -12.8%  -19.5%  -15.8%  —   -15.8%
 
                        
Three months ended October 31, 2008:
                        
Base
  -8.2%  -5.3%  11.0%  -2.5%  —   -2.5%
Currency
  -0.3%  -1.6%  2.2%  -0.1%  —   -0.1%
Acquisitions
  0.6%  6.3%  0.0%  2.1%  —   2.1%
 
                  
Total
  -7.9%  -0.6%  13.2%  -0.5%  —   -0.5%
 
                        
SEGMENT PROFIT (LOSS)
                        
Three months ended:
                        
October 31, 2009
 $32,801  $24,862  $15,127  $72,790  $(2,920) $69,870 
October 31, 2008
 $35,524  $31,138  $22,401  $89,063  $(2,307) $86,756 
Percentage increase (decrease)
  -7.7%  -20.2%  -32.5%  -18.3%  26.6%  -19.5%
\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
         
  Three months ended: 
  October 31,  October 31, 
  2009  2008 
Total profit for reportable segments
 $72,790  $89,063 
Corporate and eliminations
  (2,920)  (2,307)
Unallocated amounts:
        
Administrative costs
  (30,712)  (28,923)
Restructuring charges
  (3,601)  (1,639)
Investment and other income
  48   1,852 
Interest expense
  (5,162)  (6,361)
 
      
Income before income taxes
  30,443   51,685 
Income taxes
  (8,775)  (14,575)
 
      
Net income
 $21,668  $37,110 
 
      
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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 \n \n \n \n \n \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 2010 
  Q1  Q2  Q3  Q4  Total 
EBITDA (1)
                    
Net income
 $21,668              $21,668 
Interest expense
  5,162               5,162 
Income taxes
  8,775               8,775 
Depreciation and amortization
  13,817               13,817 
 
               
 
                    
EBITDA (non-GAAP measure)
 $49,422  $—  $—  $—  $49,422 
 
               
\n
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\n\n\n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n\n\n \n \n \n \n\n\n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n\n\n\n\n\n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n\n\n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n\n\n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n\n\n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n\n\n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n\n\n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n\n\n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n\n\n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \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              $37,110 
Interest expense
  6,361               6,361 
Income taxes
  14,575               14,575 
Depreciation and amortization
  13,712               13,712 
 
               
 
                    
EBITDA (non-GAAP measure)
 $71,758  $—  $—  $—  $71,758 
 
               
\n
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(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.
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