{"links":{"self":"https://clientapi.gcs-web.com/data/33381f6d-8eaa-46ae-8c63-71b3672717c2/filings/15661/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): February 18, 2011
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BRADY CORPORATION\n
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(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 February 18, 2011, Brady Corporation (the “Corporation”) issued a press release announcing\nits fiscal 2011 second 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 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  
Press Release of Brady Corporation, dated February 18, 2011, relating to second quarter\nfiscal 2011 financial results.
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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: February 22, 2011 /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 February 18, 2011, relating to second quarter\nfiscal 2011 financial results.
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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
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Brady Corporation reports fiscal 2011 second quarter results\n
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MILWAUKEE (February 18, 2011)—Brady Corporation (NYSE: BRC), a world leader in identification\nsolutions, today reported financial results for its fiscal 2011 second quarter ended January 31,\n2011.\n
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Second-quarter results:\n
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Sales for the fiscal 2011 second quarter were up 11.2 percent to $329.0 million compared to\n$295.8 million in the second quarter of fiscal 2010. Organic sales growth was 9.8 percent,\nacquisitions, net of divestitures contributed 1.8 percent to sales, and the impact of foreign\ncurrency translation decreased sales by 0.4 percent. By segment, organic sales increased 9.7\npercent in the Americas, 12.4 percent in Europe and 6.9 percent in the Asia-Pacific region.\n
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Net income in the fiscal 2011 second quarter was up 61.3 percent to $24.2 million compared to\n$15.0 million in the same quarter last year. Excluding $1.5 million of after-tax restructuring\ncharges in the second quarter of fiscal 2011 and $2.6 million of after-tax restructuring charges in\nthe same quarter last year, net income was up 46.0 percent to $25.7 million compared to $17.6\nmillion in the same quarter last year.\n
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Earnings per diluted Class A Common Share were up 64.3 percent to $0.46 in the second quarter\nof fiscal 2011 compared to $0.28 in the second quarter of fiscal 2010. Excluding after-tax\nrestructuring charges, earnings per diluted Class A Common Share increased 45.5 percent to $0.48 in\nthe second quarter of fiscal 2011 compared to $0.33 per share in the same quarter of fiscal 2010.\n
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Six-month results:\n
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Sales for the six-month period ended January 31, 2011 were up 7.2 percent to $658.6 million\ncompared to $614.3 million in the same period last year.\n
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Net income for the six months ended January 31, 2011 was up 37.7 percent to $50.5 million\ncompared to $36.7 million in the same period in fiscal 2010. Excluding $4.2 million of after-tax\nrestructuring charges in the six-month period ended January 31, 2011 and $5.2 million of after-tax\nrestructuring charges in the same period last year, net income was up 30.4 percent to $54.6 million\ncompared to $41.9 million in the same period last year.\n
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Earnings per diluted Class A Common Share were up 37.7 percent to $0.95 for the six-month\nperiod ended January 31, 2011 compared to $0.69 in the same period of fiscal 2010. Excluding\nafter-tax restructuring charges, earnings per diluted Class A Common Share increased 30.4 percent\nto $1.03 for the six-month period ended January 31, 2011 compared to $0.79 per share in the same\nperiod of fiscal 2010.\n
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Commentary and Guidance:\n
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“We are pleased to see strong organic sales growth in all our regions, and are encouraged by\nthe substantial growth in earnings resulting from the increased organic sales and our on-going\nfocus on improving profitability,” said Frank M. Jaehnert, Brady’s President and Chief Executive\nOfficer.\n
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“Cash generation remains a highlight for Brady as we delivered $41.4 million of cash flow from\noperating activities in the quarter, resulting in an increase in our cash balance to $362.3\nmillion at January 31, 2011. Our strong cash position along with our untapped $200 million line of\ncredit provides us with adequate flexibility to take advantage of future growth opportunities,”\nsaid Brady Chief Financial Officer Thomas J. Felmer. “As a result of our strong second quarter\nearnings, we are increasing our full year fiscal 2011 guidance range for earnings per diluted Class\nA Common share from between $2.05 and $2.25 to between $2.15 and $2.35, excluding pre-tax\nrestructuring charges of $7 to $10 million, or $0.10 to $0.14 per share. We also expect mid-single\ndigit organic sales growth for the balance of fiscal 2011 as sales comparisons become more\nchallenging in the second half of fiscal 2011. Our guidance reflects all cost savings we expect to\nrealize this year from restructuring activities as well as from our Brady Business Performance\nSystem initiatives for operational improvements.”\n
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A webcast regarding fiscal 2011 second quarter results will be available at\nwww.investor.bradycorp.com beginning at 9:30 a.m. Central Standard Time today.\n
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Brady Corporation is an international manufacturer and marketer of complete solutions that identify\nand protect premises, products and people. Brady’s 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 millions of customers in electronics, telecommunications, manufacturing, electrical,\nconstruction, education, medical and a variety of other industries. Brady is headquartered in\nMilwaukee, Wisconsin and employs approximately 6,600 people at operations in the Americas, Europe\nand Asia-Pacific. Brady’s fiscal 2010 sales were approximately $1.26 billion. Brady stock trades\non the New York Stock Exchange under the symbol BRC. 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 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\n assets; Brady’s ability to retain significant contracts and customers; risks associated with\ninternational operations; Brady’s ability to maintain compliance with its debt covenants;\ntechnology changes; business interruptions due to implementing business systems; environmental,\nhealth and safety compliance costs and liabilities; future competition; interruptions to sources of\nsupply; Brady’s ability to realize cost savings from operating initiatives; difficulties associated\nwith exports; risks associated with restructuring plans; risks associated with obtaining\ngovernmental approvals and maintaining regulatory compliance; and numerous other matters of\nnational, 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 Form 10-K for the year ended July 31,\n2010. These uncertainties may cause Brady’s actual future results to be materially different than\nthose expressed in its forward-looking statements. Brady does not undertake to update its\nforward-looking statements.\n
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BRADY CORPORATION AND SUBSIDIARIES
\n\nCONDENSED CONSOLIDATED STATEMENTS OF INCOME\n
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(Dollars in Thousands)\n\n
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  (Unaudited) 
  Three Months Ended January 31,  Six Months Ended January 31, 
          Percentage          Percentage 
  2011  2010  Change  2011  2010  Change 
Net sales
 $329,009  $295,829   11.2% $658,597  $614,315   7.2%
Cost of products sold
  169,999   148,911   14.2%  335,075   309,955   8.1%
 
                    
Gross margin
  159,010   146,918   8.2%  323,522   304,360   6.3%
 
                        
Operating expenses:
                        
Research and development
  11,732   10,632   10.3%  21,676   20,241   7.1%
Selling, general and administrative
  108,064   108,735   -0.6%  217,388   217,411   0.0%
Restructuring charge
  2,134   3,649   -41.5%  5,775   7,250   -20.3%
 
                    
Total operating expenses
  121,930   123,016   -0.9%  244,839   244,902   0.0%
 
                        
Operating income
  37,080   23,902   55.1%  78,683   59,458   32.3%
 
                        
Other income and (expense):
                        
Investment and other income
  1,174   1,104   6.3%  1,464   1,153   27.0%
Interest expense
  (5,850)  (5,163)  13.3%  (11,537)  (10,325)  11.7%
 
                    
 
                        
Income before income taxes
  32,404   19,843   63.3%  68,610   50,286   36.4%
 
                        
Income taxes
  8,205   4,842   69.5%  18,130   13,617   33.1%
 
                    
 
                        
Net income
 $24,199  $15,001   61.3% $50,480  $36,669   37.7%
 
                    
 
                        
Per Class A Nonvoting Common Share:
                        
Basic net income
 $0.46  $0.29   58.6% $0.96  $0.70   37.1%
Diluted net income
 $0.46  $0.28   64.3% $0.95  $0.69   37.7%
Dividends
 $0.18  $0.175   2.9% $0.36  $0.35   2.9%
 
                        
Per Class B Voting Common Share:
                        
Basic net income
 $0.46  $0.29   58.6% $0.94  $0.68   38.2%
Diluted net income
 $0.46  $0.28   64.3% $0.94  $0.67   40.3%
Dividends
 $0.18  $0.175   2.9% $0.34  $0.33   3.1%
 
                        
Weighted average common shares\noutstanding
\n(in thousands):
                        
Basic
  52,593   52,370       52,521   52,354     
Diluted
  53,053   53,096       52,932   53,020     
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BRADY CORPORATION AND SUBSIDIARIES
\n\nCONSOLIDATED BALANCE SHEETS\n
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(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
         
  (Unaudited) 
  January 31, 2011  July 31, 2010 
 
        
ASSETS
 
        
Current assets:
        
Cash and cash equivalents
 $362,302  $314,840 
Accounts receivable — Net
  240,173   221,621 
Inventories:
        
Finished products
  56,085   52,906 
Work-in-process
  14,614   13,146 
Raw materials and supplies
  28,129   28,620 
 
      
Total inventories
  98,828   94,672 
Prepaid expenses and other current assets
  36,233   37,839 
 
      
 
        
Total current assets
  737,536   668,972 
 
        
Other assets:
        
Goodwill
  781,776   768,600 
Other intangible assets, net
  98,560   103,546 
Deferred income taxes
  45,087   39,103 
Other
  19,673   20,808 
 
        
Property, plant and equipment:
        
Cost:
        
Land
  6,331   6,265 
Buildings and improvements
  103,305   101,138 
Machinery and equipment
  294,414   289,727 
Construction in progress
  15,208   9,873 
 
      
 
  419,258   407,003 
 
        
Less accumulated depreciation
  278,710   261,501 
 
      
 
        
Property, plant and equipment — net
  140,548   145,502 
 
      
 
        
Total
 $1,823,180  $1,746,531 
 
      
 
        
LIABILITIES AND STOCKHOLDERS’ INVESTMENT
 
        
Current liabilities:
        
Accounts payable
 $92,696  $96,702 
Wages and amounts withheld from employees
  52,161   67,285 
Taxes, other than income taxes
  8,898   7,537 
Accrued income taxes
  16,603   10,138 
Other current liabilities
  60,105   50,862 
Current maturities on long-term debt
  61,265   61,264 
 
      
 
        
Total current liabilities
  291,728   293,788 
 
        
Long-term obligations, less current maturities
  387,875   382,940 
 
        
Other liabilities
  66,120   64,776 
 
      
 
        
Total liabilities
  745,723   741,504 
 
        
Stockholders’ investment:
        
Common stock:
        
Class A nonvoting common stock — Issued 51,261,487 and 51,261,487 shares, respectively and\noutstanding 49,105,601 and 48,875,716 shares, respectively
  513   513 
Class B voting common stock — Issued and outstanding, 3,538,628 shares
  35   35 
Additional paid-in capital
  308,002   304,205 
Income retained in the business
  750,038   718,512 
Treasury stock — 1,845,886 and 2,175,771 shares, respectively of Class A nonvoting common stock, at cost
  (56,069)  (66,314)
Accumulated other comprehensive income
  79,674   50,905 
Other
  (4,736)  (2,829)
 
      
 
        
Total stockholders’ investment
  1,077,457   1,005,027 
 
      
 
        
Total
 $1,823,180  $1,746,531 
 
      
\n
\n\n\n

 \n\n

 \n

\n\n\n

\n

 

\n\n

\n\n\n
BRADY CORPORATION AND SUBSIDIARIES
\n\nCONSOLIDATED STATEMENTS OF CASH FLOWS\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
         
  (Unaudited) 
  Six Months Ended 
  January 31, 
  2011  2010 
Operating activities:
        
Net income
 $50,480  $36,669 
Adjustments to reconcile net income to net cash provided by operating activities:
        
Depreciation and amortization
  25,502   27,366 
Non-cash portion of restructuring charges
  1,714   1,420 
Non-cash portion of stock-based compensation expense
  6,869   5,156 
Gain on the sale of business
  (4,394)  — 
Deferred income taxes
  (4,926)  (4,398)
Changes in operating assets and liabilities
\n (net of effects of business acquisitions/divestitures):
        
Accounts receivable
  (11,938)  (10,300)
Inventories
  (879)  (1,891)
Prepaid expenses and other assets
  2,384   (1,585)
Accounts payable and accrued liabilities
  (13,792)  12,926 
Income taxes
  6,589   2,670 
 
      
Net cash provided by operating activities
  57,609   68,033 
 
        
Investing activities:
        
Acquisition of business, net of cash acquired
  (7,970)  (20,299)
Payments of contingent consideration
  (979)  — 
Divestiture of business, net of cash retained in business
  12,979   — 
Purchases of property, plant and equipment
  (9,045)  (14,974)
Other
  (494)  (570)
 
      
Net cash used in investing activities
  (5,509)  (35,843)
 
        
Financing activities:
        
Payment of dividends
  (18,954)  (18,344)
Proceeds from issuance of common stock
  4,909   1,672 
Income tax\nbenefit from the exercise of stock options and deferred compensation distribution
  359   380 
 
      
Net cash used in financing activities
  (13,686)  (16,292)
 
        
Effect of exchange rate changes on cash
  9,048   1,530 
 
        
Net increase in cash and cash equivalents
  47,462   17,428 
Cash and cash equivalents, beginning of period
  314,840   188,156 
 
      
 
        
Cash and cash equivalents, end of period
 $362,302  $205,584 
 
      
 
        
Supplemental disclosures:
        
Cash paid during the period for:
        
Interest, net of capitalized interest
 $9,138  $10,313 
Income taxes, net of refunds
  17,398   10,817 
Acquisitions:
        
Fair value of assets acquired, net of cash
 $4,624  $8,829 
Liabilities assumed
  (1,446)  (2,678)
Goodwill
  4,792   14,148 
 
      
Net cash paid for acquisitions
 $7,970  $20,299 
 
      
\n
\n\n\n

 \n\n

 \n

\n\n\n

\n

 

\n\n

\n\n
Information by regional segment for the three and six months ended January 31, 2011 and 2010 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
                         
                  Corporate    
          Asia-  Total  and    
(in thousands) Americas  Europe  Pacific  Region  Eliminations  Total 
SALES TO EXTERNAL CUSTOMERS
                        
Three months ended:
                        
January 31, 2011
 $136,011  $104,041  $88,957  $329,009   —  $329,009 
January 31, 2010
 $121,603  $96,614  $77,612  $295,829   —  $295,829 
 
                        
Six months ended:
                        
January 31, 2011
 $281,999  $196,091  $180,507  $658,597   —  $658,597 
January 31, 2010
 $257,842  $190,949  $165,524  $614,315   —  $614,315 
 
                        
SALES GROWTH INFORMATION
                        
Three months ended January 31, 2011:
                        
Base
  9.7%  12.4%  6.9%  9.8%  —   9.8%
Currency
  0.8%  -6.9%  5.6%  -0.4%  —   -0.4%
Acquisitions/Divestitures
  1.4%  2.2%  2.1%  1.8%  —   1.8%
 
                  
Total
  11.9%  7.7%  14.6%  11.2%  —   11.2%
 
                        
Six months ended January 31, 2011:
                        
Base
  6.8%  6.6%  3.1%  5.7%  —   5.7%
Currency
  0.8%  -6.9%  5.0%  -0.5%  —   -0.5%
Acquisitions/Divestitures
  1.8%  3.0%  1.0%  2.0%  —   2.0%
 
                  
Total
  9.4%  2.7%  9.1%  7.2%  —   7.2%
 
                        
SEGMENT PROFIT
                        
Three months ended:
                        
January 31, 2011
 $31,015  $29,165  $11,524  $71,704  $(5,088) $66,616 
January 31, 2010
 $23,546  $25,947  $10,687  $60,180  $(3,683) $56,497 
Percentage increase
  31.7%  12.4%  7.8%  19.1%      17.9%
 
                        
Six months ended:
                        
January 31, 2011
 $70,374  $53,226  $28,353  $151,953  $(8,525) $143,428 
January 31, 2010
 $56,347  $50,809  $25,814  $132,970  $(6,603) $126,367 
Percentage increase
  24.9%  4.8%  9.8%  14.3%      13.5%
\n
\n\n\n
NET INCOME RECONCILIATION\n(in thousands)\n\n
\n
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  Three months ended:  Six months ended: 
  January 31,  January 31,  January 31,  January 31, 
  2011  2010  2011  2010 
Total profit for reportable segments
 $71,704  $60,180  $151,953  $132,970 
Corporate and eliminations
  (5,088)  (3,683)  ($8,525)  (6,603)
Unallocated amounts:
                
Administrative costs
  (27,402)  (28,946)  (58,970)  (59,659)
Restructuring charge
  (2,134)  (3,649)  (5,775)  (7,250)
Investment and other income
  1,174   1,104   1,464   1,153 
Interest expense
  (5,850)  (5,163)  (11,537)  (10,325)
 
            
Income before income taxes
  32,404   19,843   68,610   50,286 
Income taxes
  (8,205)  (4,842)  (18,130)  (13,617)
 
            
Net income
 $24,199  $15,001  $50,480  $36,669 
 
            
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RECONCILIATION OF GAAP MEASURES TO NON-GAAP MEASURES
\n(in thousands)\n
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  Fiscal 2011 
  Q1  Q2  Q3  Q4  Total 
EBITDA (1)
                    
Net income
 $26,281  $24,199          $50,480 
Interest expense
  5,687   5,850           11,537 
Income taxes
  9,925   8,205           18,130 
Depreciation and amortization
  12,594   12,908           25,502 
 
               
 
                    
EBITDA (non-GAAP measure)
 $54,487  $51,162  $—  $—  $105,649 
 
               
 
                    
  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 
 
               
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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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