{"links":{"self":"https://clientapi.gcs-web.com/data/33381f6d-8eaa-46ae-8c63-71b3672717c2/filings/15391/html"},"meta":{"executionDate":"2026-07-16T14:48:25","cmsDomain":"https://bradyid.gcs-web.com"},"data":"\n\nForm 8-K\n\n\n\n
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UNITED STATES
\nSECURITIES AND EXCHANGE COMMISSION\n
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Washington, D.C. 20549\n
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FORM 8-K\n
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CURRENT REPORT
\nPursuant to Section 13 OR 15(d) of The Securities Exchange Act of 1934\n
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Date of Report (Date of earliest event reported): September 9, 2010
\n\n
BRADY CORPORATION\n
\n\n
(Exact name of registrant as specified in its charter)
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Wisconsin\n 1-14959\n 39-0971239
     
(State or other jurisdiction
\nof incorporation)\n		 (Commission File Number)\n (IRS Employer Identification No.)
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6555 West Good Hope Road
\nMilwaukee, Wisconsin\n		  
53223
   
(Address of principal executive offices)\n (Zip Code)
\n
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Registrant’s telephone number, including area code: (414) 358-6600
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Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
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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 (17 CFR 240.14d-2(b))
 
o Pre-commencement communications pursuant to Rule 13e-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
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On September 10, 2010, Brady Corporation (the “Corporation”) issued a press release announcing\nits fiscal 2010 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
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Item 8.01 OTHER EVENTS\n
\n\n
On September 9, 2010, the Corporation announced that its Board of Directors had increased the\nannual cash dividend on its Class A Common Stock from $0.70 to $0.72 per share. A quarterly\ndividend in the amount of $0.18 per share will be paid on October 29, 2010, to shareholders of\nrecord as of the close of business on October 8, 2010. A copy of the press release regarding the\ndividend is attached hereto as Exhibit 99.2 and is incorporated herein by reference.\n
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Item 9.01 FINANCIAL STATEMENTS AND EXHIBITS\n
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(d) Exhibits.\n
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The following are filed as Exhibits to this Report.\n
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Exhibit No. Description of Exhibit
    
 
 99.1  
Press Release of Brady Corporation, dated September 10, 2010, relating to fourth\nquarter fiscal 2010 financial results.
    
 
 99.2  
Press Release of Brady Corporation, dated September 9, 2010, related to increase in\nquarterly dividend.
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SIGNATURE\n
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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: September 15, 2010 

\n
\n		/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  
Press Release of Brady Corporation, dated September 10, 2010, relating to fourth\nquarter fiscal 2010 financial results.
    
 
 99.2  
Press Release of Brady Corporation, dated September 9, 2010, related to increase in\nquarterly dividend.
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\n\nExhibit 99.1\n\n\n\n
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EXHIBIT 99.1\n
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For More Information:
\nInvestor contact: Aaron Pearce 414-438-6895
\nMedia contact: Carole Herbstreit 414-438-6882\n\n
\n\n
Brady Corporation reports earnings for fiscal 2010 fourth quarter and year end \n
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MILWAUKEE (September 10, 2010)—Brady Corporation (NYSE:BRC) today reported results for its fiscal\n2010 fourth quarter and its full fiscal year ended July 31, 2010.\n
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Three Months Ended July 31, 2010\n
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Sales in the fiscal 2010 fourth quarter increased 12.4 percent to $322.9 million compared to\n$287.2 million in the fourth quarter of fiscal 2009. Organic sales increased 10.7 percent with\npositive organic growth in all regions. Acquisitions added 2.7 percent to sales and foreign\ncurrency translation reduced sales by 1.0 percent in the fourth quarter ended July 31, 2010.\nRegionally, organic sales were up 14.7 percent in the Americas, 9.6 percent in Europe, and 5.2\npercent in the Asia-Pacific region.\n
\n\n
Net income for the quarter increased 12.4 percent to $21.6 million compared to $19.2 million\nin the same quarter last year. Excluding restructuring charges, net income in the quarter was up\n15.9 percent to $26.2 million compared to $22.6 million in the fiscal 2009 fourth quarter.\n
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Earnings per diluted Class A Common Share were $0.41 in the 2010 fourth quarter compared to\n$0.36 in the prior year quarter. Excluding after-tax restructuring charges, earnings per diluted\nClass A Common Share increased 14.0 percent to $0.49 in the fourth quarter compared to $0.43 in the\nprior year fourth quarter.\n
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Year Ended July 31, 2010\n
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Sales for the year ended July 31, 2010 were $1.259 billion compared to $1.209 billion in\nfiscal 2009, up 4.2 percent. Organic sales were up 0.2 percent, acquisitions added 1.3 percent to\nsales, and the impact of foreign currency translation added 2.7 percent.\n
\n\n
Net income for the year ended July 31, 2010 increased 16.9 percent to $82.0 million compared\nto $70.1 million for the year ended July 31, 2009. Excluding after-tax restructuring charges, net\nincome for the year ended July 31, 2010 was up 3.4 percent to $93.4 million compared to $90.3\nmillion in fiscal 2009.\n
\n\n
Earnings per diluted Class A Common Share were $1.55 for the year ended July 31, 2010 compared\nto $1.32 for the fiscal year ended July 31, 2009. Excluding after-tax restructuring\ncharges, earnings per diluted Class A Common Share increased 2.9 percent to $1.76 for the year\nended July 31, 2010 compared to $1.71 during the year ended July 31, 2009.\n
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Commentary and Fiscal 2011 Guidance\n
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“Brady had a strong fourth quarter and finished the year on a positive note. In particular,\nwe were pleased to see double-digit organic growth in the fourth quarter and positive organic\ngrowth in all our regions for the second straight quarter, as well as significant improvement in\nour net income in the fourth quarter. These strong financial results were due to our continued\nfocus on cost controls, as well as execution of our growth strategies including launching several\nnew products. We also returned to acquisition activity this year after taking a pause last year\ndue to the global economic crisis,” said Brady President and CEO Frank M. Jaehnert. “I’m also\nhappy to report that yesterday our Board of Directors announced that we will increase our dividend\nto shareholders for the 25th straight year.”\n
\n\n
“We maintain a strong financial position with significant liquidity to fund future growth. We\ngenerated free cash flow of $138.9 million during the year ended July 31, 2010, which equates to\n169 percent of net income, and we finished the year with cash and cash equivalents of $314.8\nmillion, an increase of $126.6 million compared to July 31, 2009,” said Brady Chief Financial\nOfficer, Thomas J. Felmer. “As we look to fiscal 2011, we believe that the overall global economy\nwill continue to improve, albeit slowly. As a result, we anticipate mid-single-digit organic\nrevenue growth in fiscal 2011, with more significant profitability improvement in the second half\nof the year as our continued investment in profitability improvement initiatives begin to yield\nbenefits. For fiscal 2011 we expect earnings per diluted Class A Common Share of between $1.95 and\n$2.15. This guidance is based on current exchange rates, a full-year tax rate of 26 percent,\ncapital expenditures of between $25 and $30 million, depreciation and amortization of $50 million,\nand diluted weighted average common shares outstanding consistent with that of July 31, 2010. Our\nguidance excludes additional expected pretax restructuring charges of approximately $12 to $15\nmillion or $0.17 to $0.21 per diluted share.”\n
\n\n
A Webcast regarding fiscal 2010 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 1,000,000 customers in electronics, telecommunications,\nmanufacturing, electrical, construction, education, medical and a variety of\nother industries. Brady is headquartered in Milwaukee and employs approximately 6,600 people at\noperations in the Americas, Europe and Asia/Pacific. More information is available on the Internet\nat 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 retain significant contracts\nand 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;\nBrady’s ability to maintain its debt covenants; unforeseen tax consequences; risks associated with\nobtaining governmental approvals and maintaining regulatory compliance for new and existing\nproducts; business interruptions due to implementing business systems; and numerous other matters\nof 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 I of Brady’s Annual Report on Form 10-K for the period\nended July 31, 2009, as updated by subsequently filed reports. These uncertainties may cause\nBrady’s actual future results to be materially different than those expressed in its\nforward-looking statements. Brady does not undertake to update its forward-looking statements.\n
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BRADY CORPORATION AND SUBSIDIARIES
\n\nCONSOLIDATED STATEMENTS OF INCOME\n\n
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(Dollars in Thousands)\n
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  (Unaudited) 
  Three Months Ended July 31,  Twelve Months Ended July 31, 
          Percentage          Percentage 
  2010  2009  Change  2010  2009  Change 
Net sales
 $322,894  $287,203   12.4% $1,259,096  $1,208,702   4.2%
Cost of products sold
  164,155   151,081   8.7%  635,799   631,119   0.7%
 
                    
Gross margin
  158,739   136,122   16.6%  623,297   577,583   7.9%
 
                        
Operating expenses:
                        
Research and development
  11,671   8,856   31.8%  42,621   34,181   24.7%
Selling, general and administrative
  107,268   94,404   13.6%  435,906   397,180   9.8%
Restructuring charges
  5,717   2,573   122.2%  15,314   25,849   -40.8%
 
                    
Total operating expenses
  124,656   105,833   17.8%  493,841   457,210   8.0%
 
                        
Operating income
  34,083   30,289   12.5%  129,456   120,373   7.5%
 
                        
Other income and (expense):
                        
Investment and other income
  (105)  657   -116.0%  1,168   1,800   -35.1%
Interest expense
  (5,750)  (5,919)  -2.9%  (21,222)  (24,901)  -14.8%
 
                    
 
                        
Income before income taxes
  28,228   25,027   12.8%  109,402   97,272   12.5%
 
                        
Income taxes
  6,636   5,825   13.9%  27,446   27,150   1.1%
 
                    
 
                        
Net income
 $21,592  $19,202   12.4% $81,956  $70,122   16.9%
 
                    
 
                        
Per Class A Nonvoting Common Share:
                        
Basic net income
 $0.41  $0.37   10.8% $1.56  $1.33   17.3%
Diluted net income
 $0.41  $0.36   13.9% $1.55  $1.32   17.4%
Dividends
 $0.175  $0.17   2.9% $0.70  $0.68   2.9%
 
                        
Per Class B Voting Common Share:
                        
Basic net income
 $0.41  $0.37   10.8% $1.55  $1.32   17.4%
Diluted net income
 $0.41  $0.36   13.9% $1.53  $1.31   16.8%
Dividends
 $0.175  $0.17   2.9% $0.68  $0.66   3.5%
 
                        
Weighted average common shares outstanding (in Thousands):
                        
Basic
  52,476   52,308       52,402   52,559     
Diluted
  52,872   52,583       52,946   52,866     
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BRADY CORPORATION AND SUBSIDIARIES
\n\nCONSOLIDATED BALANCE SHEETS\n\n
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(IN THOUSANDS)\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\n\n \n \n \n \n \n \n \n\n\n \n \n \n \n \n \n \n \n \n\n\n \n \n \n \n \n \n \n \n \n\n\n \n \n \n \n \n \n \n \n \n\n\n \n \n \n \n \n \n \n \n \n\n\n \n \n \n \n \n \n \n \n \n\n\n \n \n \n \n \n \n \n \n \n\n\n \n \n \n \n \n \n \n \n \n\n\n \n \n \n \n \n \n \n \n \n\n\n \n \n \n \n \n \n \n \n \n\n\n \n \n \n \n \n \n \n\n\n \n \n \n \n \n \n \n \n \n\n\n \n \n \n \n \n \n \n \n \n\n\n \n \n \n \n \n \n \n \n \n\n\n \n \n \n \n \n \n \n\n\n \n \n \n \n \n \n \n \n \n\n\n \n \n \n \n \n \n \n \n \n\n\n \n \n \n \n \n \n \n\n\n \n \n \n \n \n \n \n \n \n\n\n \n \n \n \n \n \n \n \n \n\n\n \n \n \n \n \n \n \n\n\n \n \n \n \n \n \n \n \n \n\n\n \n\n\n \n \n \n \n \n \n \n \n \n\n\n \n \n \n \n \n \n \n \n \n\n\n \n \n \n \n \n \n \n \n \n\n\n \n \n \n \n \n \n \n \n \n\n\n \n \n \n \n \n \n \n \n \n\n\n \n \n \n \n \n \n \n \n \n\n\n \n \n \n \n \n \n \n \n \n\n\n \n \n \n \n \n \n \n \n \n\n\n \n \n \n \n \n \n \n\n\n \n \n \n \n \n \n \n \n \n\n\n \n \n \n \n \n \n \n \n \n\n\n \n \n \n \n \n \n \n \n \n\n\n \n \n \n \n \n \n \n \n \n\n\n \n \n \n \n \n \n \n \n \n\n\n \n \n \n \n \n \n \n \n \n\n\n \n \n \n \n \n \n \n\n\n \n \n \n \n \n \n \n \n \n\n\n \n \n \n \n \n \n \n \n \n\n\n \n \n \n \n \n \n \n \n \n\n\n \n \n \n \n \n \n \n \n \n\n\n \n \n \n \n \n \n \n \n \n\n\n \n \n \n \n \n \n \n \n \n\n\n \n \n \n \n \n \n \n \n \n\n\n \n \n \n \n \n \n \n \n \n\n\n \n \n \n \n \n \n \n \n \n\n\n \n \n \n \n \n \n \n \n \n\n\n \n \n \n \n \n \n \n \n \n\n\n \n \n \n \n \n \n \n \n \n\n\n \n \n \n \n \n \n \n \n \n\n\n \n \n \n \n \n \n \n\n\n \n \n \n \n \n \n \n \n \n\n\n \n \n \n \n \n \n \n \n \n\n\n \n \n \n \n \n \n \n\n\n \n \n \n \n \n \n \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, 2010  July 31, 2009 
 
        
ASSETS
Current assets:
        
Cash and cash equivalents
 $314,840  $188,156 
Accounts receivable — net
  221,621   191,189 
Inventories:
        
Finished products
  52,906   53,244 
Work-in-process
  13,146   13,159 
Raw materials and supplies
  28,620   27,405 
 
      
Total inventories
  94,672   93,808 
Prepaid expenses and other current assets
  37,839   36,274 
 
      
 
        
Total current assets
  668,972   509,427 
 
        
Other assets:
        
Goodwill
  768,600   751,173 
Other intangible assets, net
  103,546   115,754 
Deferred income taxes
  39,103   36,374 
Other
  20,808   18,551 
 
      
 
        
Total other assets
  932,057   921,852 
 
        
Property, plant and equipment:
        
Cost:
        
Land
  6,265   6,335 
Buildings and improvements
  101,138   96,968 
Machinery and equipment
  289,727   283,301 
Construction in progress
  9,873   7,869 
 
      
 
  407,003   394,473 
 
        
Less accumulated depreciation
  261,501   242,485 
 
      
 
        
Net property, plant and equipment
  145,502   151,988 
 
      
 
        
Total assets
 $1,746,531  $1,583,267 
 
      
 
        
LIABILITIES AND STOCKHOLDERS’ INVESTMENT
 
        
Current liabilities:
        
Accounts payable
 $96,702  $83,793 
Wages and amounts withheld from employees
  67,285   36,313 
Taxes, other than income taxes
  7,537   6,262 
Accrued income taxes
  10,138   5,964 
Other current liabilities
  50,862   45,247 
Current maturities on long-term debt
  61,264   44,893 
 
      
 
        
Total current liabilities
  293,788   222,472 
 
        
Long-term obligations, less current maturities
  382,940   346,457 
 
        
Other liabilities
  64,776   63,246 
 
      
 
        
Total liabilities
  741,504   632,175 
 
        
Stockholders’ investment:
        
Common stock:
        
Class A nonvoting common stock — Issued 51,261,487 and 51,261,487 shares, respectively and\noutstanding 48,875,716 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
  304,205   298,466 
Income retained in the business
  718,512   673,342 
Treasury stock — 2,175,771 and 2,270,927 shares, respectively of Class A nonvoting common stock, at cost
  (66,314)  (69,823)
Accumulated other comprehensive income
  50,905   53,051 
Other
  (2,829)  (4,492)
 
      
 
        
Total stockholders’ investment
  1,005,027   951,092 
 
      
 
        
Total liabilities and stockholders’ investment
 $1,746,531  $1,583,267 
 
      
\n
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\n\n
BRADY CORPORATION AND SUBSIDIARIES
\n\nCONSOLIDATED STATEMENTS OF CASH FLOWS

\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
             
  (Unaudited) 
  Twelve Months Ended July 31, 
  2010  2009  2008 
Operating activities:
            
Net income
 $81,956  $70,122  $132,188 
Adjustments to reconcile net income to net cash provided by operating activities:
            
Depreciation and amortization
  53,022   54,851   60,587 
Deferred income taxes
  (6,834)  (8,640)  (1,501)
Loss (gain) on disposal of property, plant & equipment
  20   383   1,672 
Non-cash portion of stock-based compensation expense
  9,721   7,731   10,228 
Non-cash portion of restructuring charges
  2,260   2,469   — 
Changes in operating assets and liabilities (net of effects of business acquisitions):
            
Accounts receivable
  (29,479)  53,389   (3,704)
Inventories
  426   34,749   16,224 
Prepaid expenses and other assets
  (3,502)  (2,423)  (629)
Accounts payable and accrued liabilities
  51,268   (78,684)  18,641 
Income taxes
  5,258   (9,673)  (8,492)
Other liabilities
  1,122   2,371   340 
 
         
Net cash provided by operating activities
  165,238   126,645   225,554 
 
            
Investing activities:
            
Acquisition of businesses, net of cash acquired
  (30,431)  —   (29,346)
Purchase price adjustment
  —   3,514   — 
Payments of contingent consideration
  —   (1,405)  (5,798)
Purchases of short-term investments
  —   —   (10,350)
Sales of short-term investments
  —   —   29,550 
Purchases of property, plant and equipment
  (26,296)  (24,027)  (26,407)
Proceeds from net investment hedge
  6,248   —   — 
Other
  1,798   2,874   3,143 
 
         
Net cash used in investing activities
  (48,681)  (19,044)  (39,208)
 
            
Financing activities:
            
Payment of dividends
  (36,786)  (35,839)  (32,464)
Proceeds from issuance of common stock
  3,717   1,683   14,500 
Principal payments on debt
  (44,893)  (87,224)  (39,443)
Proceeds from issuance of debt
  94,915   —   18,000 
Purchase of treasury stock
  (2,537)  (40,267)  (42,175)
Income tax benefit from the exercise of stock options & deferred comp
  1,318   1,336   4,638 
Other
  (459)  —   — 
 
         
Net provided by (used in) financing activities
  15,275   (160,311)  (76,944)
 
            
Effect of exchange rate changes on cash
  (5,148)  (17,489)  6,107 
 
            
Net increase (decrease) in cash and cash equivalents
  126,684   (70,199)  115,509 
Cash and cash equivalents, beginning of year
  188,156   258,355   142,846 
 
         
 
            
Cash and cash equivalents, end of year
 $314,840  $188,156  $258,355 
 
         
 
            
Supplemental disclosures:
            
Cash paid during the period for:
            
Interest, net of capitalized interest
 $21,626  $21,899  $26,308 
Income taxes, net of refunds
  30,870   32,995   51,834 
 
            
Acquisitions:
            
Fair value of assets acquired, net of cash
 $15,366  $—  $21,508 
Liabilities assumed
  (5,201)  —   (9,038)
Goodwill
  20,266   —   16,876 
 
         
Net cash paid for acquisitions
 $30,431  $—  $29,346 
 
         
\n
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\n\n
Information by regional segment for the three and twelve months ended July 31, 2010 and 2009 is as\nfollows:\n
\n
\n\n\n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n\n\n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n\n\n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n\n\n\n\n\n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n\n\n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n\n\n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n\n\n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n\n\n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n\n\n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n\n\n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n\n\n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n\n\n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n\n\n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n\n\n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n\n\n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n\n\n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n\n\n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n\n\n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n\n\n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n\n\n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n\n\n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n\n\n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n\n\n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n\n\n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n\n\n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n\n\n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n\n\n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n\n\n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n\n\n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n\n\n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n\n\n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n\n\n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n\n\n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n\n\n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n\n\n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n\n\n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n\n\n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n\n\n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n\n\n \n \n \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 Company 
SALES TO EXTERNAL CUSTOMERS
                        
Three months ended:
                        
July 31, 2010
 $148,929  $91,020  $82,945  $322,894   —  $322,894 
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 
 
                        
Twelve months ended:
                        
July 31, 2010
 $551,185  $380,121  $327,790  $1,259,096   —  $1,259,096 
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 
 
                        
SALES GROWTH INFORMATION
                        
Three months ended July 31, 2010:
                        
Base
  14.7%  9.6%  5.2%  10.7%  —   10.7%
Currency
  1.4%  -9.0%  4.2%  -1.0%  —   -1.0%
Acquisitions
  3.2%  4.5%  0.0%  2.7%  —   2.7%
 
                  
Total
  19.3%  5.1%  9.4%  12.4%  —   12.4%
 
                        
Twelve months ended July 31, 2010:
                        
Base
  0.1%  -0.3%  0.8%  0.2%  —   0.2%
Currency
  1.6%  1.4%  5.9%  2.7%  —   2.7%
Acquisitions
  1.4%  2.4%  0.0%  1.3%  —   1.3%
 
                  
Total
  3.1%  3.5%  6.7%  4.2%  —   4.2%
 
                        
SEGMENT PROFIT (LOSS)
                        
Three months ended:
                        
July 31, 2010
 $34,964  $25,035  $13,516  $73,515  $(3,970)  69,545 
July 31, 2009
  28,300   22,018   9,072   59,390   (1,320)  58,070 
Percentage increase (decrease)
  23.5%  13.7%  49.0%  23.8%  200.8%  19.8%
 
                        
Twelve months ended:
                        
July 31, 2010
 $125,169  $103,316  $52,105  $280,590  $(14,131) $266,459 
July 31, 2009
  114,404   99,875   42,575   256,854   (7,952)  248,902 
Percentage increase (decrease)
  9.4%  3.4%  22.4%  9.2%  77.7%  7.1%
\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 \n \n \n \n \n\n\n \n \n \n \n \n \n \n \n \n \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, 2010  July 31, 2009  July 31, 2010  July 31, 2009 
Total profit for reportable segments
 $73,515  $59,390  $280,590  $256,854 
Corporate and eliminations
  (3,970) $(1,320) $(14,131) $(7,952)
Unallocated amounts:
                
Administrative costs
  (29,745)  (25,208)  (121,689)  (102,680)
Restructuring costs
  (5,717)  (2,573)  (15,314)  (25,849)
Investment and other income
  (105)  657   1,168   1,800 
Interest expense
  (5,750)  (5,919)  (21,222)  (24,901)
 
            
Income before income taxes
  28,228   25,027  $109,402   97,272 
Income taxes (2009 Q4 Restructuring — $1.6 million)
  (6,636)  (5,825)  (27,446)  (27,150)
 
            
Net income
 $21,592  $19,202  $81,956  $70,122 
 
            
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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
                     
  Fiscal 2010 
  Q1  Q2  Q3  Q4  Total 
EBITDA (1)
                    
Net income
 $21,668  $15,001  $23,695  $21,592  $81,956 
Interest expense
  5,162   5,163   5,147   5,750   21,222 
Income taxes
  8,775   4,842   7,193   6,636   27,446 
Depreciation and amortization
  13,817   13,549   12,910   12,746   53,022 
 
               
 
                    
EBITDA (non-GAAP measure)
 $49,422  $38,555  $48,945  $46,724  $183,646 
 
               
\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  $(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 amortization
  13,712   13,481   13,479   14,179   54,851 
 
               
 
                    
EBITDA (non-GAAP measure)
 $71,758  $16,401  $43,740  $45,125  $177,024 
 
               
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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,\nincome taxes and depreciation and amortization. EBITDA is not a calculation based on\ngenerally accepted accounting principles (GAAP). The amounts included in the EBITDA\ncalculation, however, are derived from amounts included in the Condensed Consolidated\nStatements of Income data. EBITDA should not be considered as an alternative to net income\nor operating income as an indicator of the Company’s operating performance, or as an\nalternative to operating cash flows as a measure of liquidity. The EBITDA measure presented\nmay not always be comparable to similarly titled measures reported by other companies due to\ndifferences in the components of the calculation.
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\n\nExhibit 99.2\n\n\n\n\n
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EXHIBIT 99.2\n
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For More Information Contact:
\nAaron Pearce (414) 438-6895\n
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Brady Corporation increases dividend to shareholders for 25th straight year\n
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MILWAUKEE (September 9, 2010)—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 $0.70 to\n$0.72 per share. A quarterly dividend will be paid on October 29, 2010, to shareholders of record\nat the close of business on October 8, 2010. This dividend represents the 25th\nconsecutive annual increase in dividends.\n
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Brady Corporation is an international manufacturer and marketer of complete solutions that\nidentify and protect premises, products and people. Brady’s products help customers increase\nsafety, security, productivity and performance and include high-performance labels and signs,\nsafety devices, printing systems and software, and precision die-cut materials. Founded in 1914,\nthe company has more than 1,000,000 customers in electronics, telecommunications, manufacturing,\nelectrical, construction, education, medical and a variety of other industries. Brady is\nheadquartered in Milwaukee and employs approximately 6,600 people at operations in the Americas,\nEurope and the Asia-Pacific region.\n
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More information is available on the Internet at www.bradycorp.com.\n
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