{"links":{"self":"https://clientapi.gcs-web.com/data/33381f6d-8eaa-46ae-8c63-71b3672717c2/filings/16086/html"},"meta":{"executionDate":"2026-07-16T12:50:42","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
\n\n
Washington, D.C. 20549\n
\n\n
FORM 8-K\n
\n\n
CURRENT REPORT
\nPursuant to Section 13 OR 15(d) of The Securities Exchange Act of 1934\n
\n\n\n
Date of Report (Date of earliest event reported): November 17, 2011
\n\n
BRADY CORPORATION\n
\n\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\n\n\n\n\n\n\n\n\n\n
     
Wisconsin\n 1-14959\n 39-0971239
     
(State or other jurisdiction
\nof incorporation)\n		 (Commission File Number)\n (IRS Employer Identification No.)
\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
   
6555 West Good Hope Road
\nMilwaukee, Wisconsin\n		  
53223
   
(Address of principal executive offices)\n (Zip Code)
\n
\n\n
Registrant’s telephone number, including area code: (414) 358-6600
\n\n
\n\n
(Former name or former address, if changed since last report.)
\n\n
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
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On November 18, 2011, Brady Corporation (the “Corporation”) issued a press release announcing\nits fiscal 2012 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
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Item 5.07 SUBMISSIONS OF MATTERS TO A VOTE OF SECURITY HOLDERS
\n
\n\n
On November 17, 2011, at the Corporation’s Annual Shareholders’ Meeting, the holders of all of\nthe 3,538,628 shares of the Corporation’s Class B Common Stock voted unanimously in favor of\nelecting the following persons to serve as the Corporation’s directors until the next annual\nmeeting of shareholders and until their successors have been elected:\n
\n\n
Patrick W. Allender
\nGary S. Balkema
\nChan W. Galbato
\nConrad G. Goodkind
\nFrank W. Harris
\nFrank M. Jaehnert
\nElizabeth P. Pungello
\nBradley C. Richardson\n\n
\n\n
\n\n\n \n \n \n\n\n \n \n \n\n
Item 8.01 OTHER EVENTS
\n
\n\n
At its annual meeting on November 17, 2011, the Corporation’s Board of Directors, upon the\nrecommendation of its Corporate Governance Committee, designated Mr. Chan Galbato as Lead\nIndependent Director. Consistent with the evolving role of independent board leadership and the\nenhanced responsibilities of the position, the Lead Independent Director’s annual compensation was\nestablished at $46,500.\n
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Item 9.01 FINANCIAL STATEMENTS AND EXHIBITS
\n
\n\n
(d) Exhibits.\n
\n\n
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 November 18, 2011, relating to first quarter fiscal\n2012 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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 \n
 BRADY CORPORATION
 		  
Date: November 23, 2011
 
    
 \n
 /s/ THOMAS J. FELMER\n
 
\nThomas J. Felmer
\nSenior Vice President &
\nChief Financial Officer\n		  
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EXHIBIT INDEX\n
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EXHIBIT  
NUMBER DESCRIPTION
    
 
 99.1  
Press Release of Brady Corporation, dated November 18, 2011, relating to first quarter\nfiscal 2012 financial results.
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\n\nExhibit 99.1\n\n\n\n\n
\n\n
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 Fiscal 2012 First Quarter Results\n
\n\n\n
MILWAUKEE (November 18, 2011)—Brady Corporation (NYSE: BRC), a world leader in identification\nsolutions, today reported its financial results for the fiscal 2012 first quarter ended October 31,\n2011.\n
\n\n\n
Sales for the fiscal 2012 first quarter were up 6.0 percent to $349.5 million compared to\n$329.6 million in the first quarter of fiscal 2011. Organic sales increased by 3.5 percent,\ndivestitures, net of acquisitions reduced sales by 0.2 percent, and the impact of foreign currency\ntranslation increased sales by 2.7 percent. By segment, organic sales increased 5.7 percent in the\nAmericas, 3.7 percent in Europe, and organic sales declined 0.2 percent in the Asia-Pacific region.\n
\n\n
Net income for the quarter ended October 31, 2011 was up 24.5 percent to $32.7 million\ncompared to $26.3 million in the same quarter last year. Excluding after-tax restructuring charges\nof $2.6 million in the first quarter of fiscal 2011, net income was up 13.2 percent. Impacting net\nincome was a 190 basis point reduction in our gross profit margin to 48.0 percent during the\nquarter ended October 31, 2011 and a 200 basis point reduction in selling, general and\nadministrative expenses as a percentage of sales to 31.2 percent during the quarter ended October\n31, 2011. During the quarter ended October 31, 2011, restructuring related expenses were not\nsignificant and are included in selling, general and administrative expenses.\n
\n\n
Earnings per diluted Class A Common Share were up 24.0 percent to $0.62 in the first quarter\nof fiscal 2012 compared to $0.50 in the first quarter of fiscal 2011.\n
\n\n
Commentary and Guidance:\n
\n\n\n
“I am pleased with our net income growth and our organic sales growth in the first quarter.\nThis profitability improvement is a direct result of our on-going initiatives to streamline our\nprocesses and improve our profitability through various activities including those stemming from\nthe Brady Business Performance Systems (BBPS),” said Brady’s President and Chief Executive Officer\nFrank M. Jaehnert. “We also remain focused on improving our customer service and our customers’\nbuying experiences and investing in growth initiatives, especially our investments in developing\nproprietary new products that add customer value.”\n
\n\n
“We are committed to putting our cash to work through a balanced approach of investing in\norganic growth opportunities, strategic acquisitions, and returning dividends to our shareholders\nand buying back Brady stock from time to time. During the first quarter, we repurchased 457,360\nshares of Brady stock for $12.3 million,” said Brady Chief Financial Officer, Thomas J. Felmer.\n“We have\nrecently seen the depreciation of certain foreign currencies versus the U.S. dollar and we\nexpect some short-term impacts from the flooding in Thailand. We also remain cautious about the\nhealth of the overall global economy. As we look to the remainder of fiscal 2012, we are confident\nin our initiatives to drive revenue and net profit growth in spite of these challenges and we\nreiterate our full year fiscal 2012 guidance which includes low-single-digit organic sales growth\nand earnings per diluted Class A Common Share of between $2.30 and $2.50, exclusive of after-tax\nrestructuring charges.”\n
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A webcast regarding Brady’s fiscal 2012 first quarter financial results will be available\nat www.investor.bradycorp.com beginning at 9:30 a.m. Central Time today.\n
\n\n
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 millions of customers in electronics, telecommunications, manufacturing,\nelectrical, construction, education, medical and a variety of other industries. Brady is\nheadquartered in Milwaukee, Wisconsin and employs approximately 6,500 people at operations in the\nAmericas, Europe and Asia-Pacific. Brady’s fiscal 2011 sales were approximately $1.34 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”\nwithin the meaning of the Private Securities Litigation Reform Act of 1995. All statements related\nto future, not past, events included in this news release, including, without limitation,\nstatements regarding Brady’s future financial position, business strategy, targets, projected\nsales, costs, earnings, capital expenditures, debt levels and cash flows, and plans and objectives\nof management for future operations are forward-looking statements. When used in this news release,\nwords such as “may,” “will,” “expect,” “intend,” “estimate,” “anticipate,” “believe,” “should,”\n“project” or “plan” or similar terminology are generally intended to identify forward-looking\nstatements. These forward-looking statements by their nature address matters that are, to different\ndegrees, uncertain and are subject to risks, assumptions and other factors, some of which are\nbeyond Brady’s control, that could cause actual results to differ materially from those expressed\nor implied by such forward-looking statements. For Brady, uncertainties arise from the length or\nseverity of the current worldwide economic downturn or timing or strength of a subsequent recovery;\nfuture financial 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 maintain compliance with its debt covenants; technology changes;\nbusiness interruptions due to implementing business systems;\nenvironmental, health and safety compliance costs and liabilities; future competition;\ninterruptions to sources of supply; Brady’s ability to realize cost savings from operating\ninitiatives; difficulties associated with exports; risks associated with restructuring plans; risks\nassociated with obtaining governmental approvals and maintaining regulatory compliance; and\nnumerous other matters of national, regional and global scale, including those of a political,\neconomic, business, competitive and regulatory nature contained from time to time in Brady’s U.S.\nSecurities and Exchange Commission filings, including, but not limited to, those factors listed in\nthe “Risk Factors” section located in Item 1A of Part I of Brady’s Form 10-K for the year ended\nJuly 31, 2011. These uncertainties may cause Brady’s actual future results to be materially\ndifferent than those expressed in its forward-looking statements. Brady does not undertake to\nupdate its forward-looking statements.\n
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BRADY CORPORATION AND SUBSIDIARIES
\n\nCONDENSED CONSOLIDATED STATEMENTS OF INCOME\n\n\n
\n\n
(Dollars in Thousands, Except Per Share Amounts)\n
\n\n\n
\n\n\n\n \n \n \n \n \n \n \n \n \n \n \n \n \n\n\n \n \n \n \n\n\n \n \n \n \n\n\n \n \n \n \n \n \n \n \n \n \n \n \n\n\n \n \n \n \n \n \n \n \n \n \n\n\n\n\n\n \n \n \n \n \n \n \n \n \n \n \n \n \n\n\n \n \n \n \n \n \n \n \n \n \n \n \n \n\n\n \n \n \n \n \n \n \n \n \n \n \n\n\n \n \n \n \n \n \n \n \n \n \n \n \n \n\n\n \n \n \n \n \n \n \n \n \n \n \n \n \n\n\n \n \n \n \n \n \n \n \n \n \n \n \n \n\n\n \n \n \n \n \n \n \n \n \n \n \n \n \n\n\n \n \n \n \n \n \n \n \n \n \n \n \n \n\n\n \n \n \n \n \n \n \n \n \n \n \n \n \n\n\n \n \n \n \n \n \n \n \n \n \n \n\n\n \n \n \n \n \n \n \n \n \n \n \n \n \n\n\n \n \n \n \n \n \n \n \n \n \n \n \n \n\n\n \n \n \n \n \n \n \n \n \n \n \n \n \n\n\n \n \n \n \n \n \n \n \n \n \n \n \n \n\n\n \n \n \n \n \n \n \n \n \n \n \n \n \n\n\n \n \n \n \n \n \n \n \n \n \n \n \n \n\n\n \n \n \n \n \n \n \n \n \n \n \n \n \n\n\n \n \n \n \n \n \n \n \n \n \n \n\n\n \n \n \n \n \n \n \n \n \n \n \n \n \n\n\n \n \n \n \n \n \n \n \n \n \n \n \n \n\n\n \n \n \n \n \n \n \n \n \n \n \n \n \n\n\n \n \n \n \n \n \n \n \n \n \n \n \n \n\n\n \n \n \n \n \n \n \n \n \n \n \n\n\n \n \n \n \n \n \n \n \n \n \n \n \n \n\n\n \n \n \n \n \n \n \n \n \n \n \n \n \n\n\n \n \n \n \n \n \n \n \n \n \n \n\n\n \n \n \n \n \n \n \n \n \n \n \n \n \n\n\n \n \n \n \n \n \n \n \n \n \n \n \n \n\n\n \n \n \n \n \n \n \n \n \n \n \n \n \n\n\n \n \n \n \n \n \n \n \n \n \n \n \n \n\n\n \n \n \n \n \n \n \n \n \n \n \n \n \n\n\n \n \n \n \n \n \n \n \n \n \n \n \n \n\n\n \n \n \n \n \n \n \n \n \n \n \n \n \n\n\n \n \n \n \n \n \n \n \n \n \n \n \n \n\n\n \n \n \n \n \n \n \n \n \n \n \n \n \n\n\n \n \n \n \n \n \n \n \n \n \n \n \n \n\n\n \n \n \n \n \n \n \n \n \n \n \n \n \n\n\n \n \n \n \n \n \n \n \n \n \n \n \n \n\n\n \n \n \n \n \n \n \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 
  2011  2010  Change 
Net sales
 $349,508  $329,588   6.0%
Cost of products sold
  181,677   165,076   10.1%
 
          
Gross margin
  167,831   164,512   2.0%
 
            
Operating expenses:
            
Research and development
  9,809   9,944   -1.4%
Selling, general and administrative
  108,932   109,324   -0.4%
Restructuring charges
  —   3,641   -100.0%
 
          
Total operating expenses
  118,741   122,909   -3.4%
 
            
Operating income
  49,090   41,603   18.0%
 
            
Other income and (expense):
            
Investment and other income (expense)
  (202)  290   -169.7%
Interest expense
  (5,047)  (5,687)  -11.3%
 
          
 
            
Income before income taxes
  43,841   36,206   21.1%
 
            
Income taxes
  11,109   9,925   11.9%
 
          
 
            
Net income
 $32,732  $26,281   24.5%
 
          
 
            
Per Class A Nonvoting Common Share:
            
Basic net income
 $0.62  $0.50   24.0%
Diluted net income
 $0.62  $0.50   24.0%
Dividends
 $0.185  $0.18   2.8%
 
            
Per Class B Voting Common Share:
            
Basic net income
 $0.60  $0.48   25.0%
Diluted net income
 $0.60  $0.48   25.0%
Dividends
 $0.168  $0.163   3.1%
 
            
Weighted average common shares outstanding (in thousands):
            
Basic
  52,657   52,448     
Diluted
  52,954   52,810     
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BRADY CORPORATION AND SUBSIDIARIES
\n\nCONDENSED CONSOLIDATED BALANCE SHEETS\n\n\n
\n\n
(Dollars in Thousands)\n
\n\n\n
\n\n\n\n \n \n \n \n \n \n \n \n \n\n\n \n \n \n \n\n\n \n \n \n \n \n \n \n\n\n\n\n\n \n \n \n \n \n \n \n \n \n\n\n \n \n \n \n \n \n \n \n \n\n\n \n \n \n \n \n \n \n \n \n\n\n \n \n \n \n \n \n \n \n \n\n\n \n \n \n \n \n \n \n \n \n\n\n \n \n \n \n \n \n \n \n \n\n\n \n \n \n \n \n \n \n \n \n\n\n \n \n \n \n \n \n \n \n \n\n\n \n \n \n \n \n \n \n \n \n\n\n \n \n \n \n \n \n \n \n \n\n\n \n \n \n \n \n \n \n\n\n \n \n \n \n \n \n \n \n \n\n\n \n \n \n \n \n \n \n \n \n\n\n \n \n \n \n \n \n \n\n\n \n \n \n \n \n \n \n \n \n\n\n \n \n \n \n \n \n \n \n \n\n\n \n \n \n \n \n \n \n \n \n\n\n \n \n \n \n \n \n \n \n \n\n\n \n \n \n \n \n \n \n \n \n\n\n \n \n \n \n \n \n \n \n \n\n\n \n \n \n \n \n \n \n \n \n\n\n \n \n \n \n \n \n \n \n \n\n\n \n \n \n \n \n \n \n \n \n\n\n \n \n \n \n \n \n \n \n \n\n\n \n \n \n \n \n \n \n \n \n\n\n \n \n \n \n \n \n \n \n \n\n\n \n \n \n \n \n \n \n \n \n\n\n \n \n \n \n \n \n \n \n \n\n\n \n \n \n \n \n \n \n \n \n\n\n \n \n \n \n \n \n \n\n\n \n \n \n \n \n \n \n \n \n\n\n \n \n \n \n \n \n \n \n \n\n\n \n \n \n \n \n \n \n \n \n\n\n \n \n \n \n \n \n \n\n\n \n \n \n \n \n \n \n \n \n\n\n \n \n \n \n \n \n \n \n \n\n\n \n \n \n \n \n \n \n\n\n \n \n \n \n \n \n \n \n \n\n\n \n \n \n \n \n \n \n \n \n\n\n \n \n \n \n \n \n \n\n\n \n \n \n \n \n \n \n \n \n\n\n \n \n \n \n \n \n \n \n \n\n\n \n \n \n \n \n \n \n \n \n\n\n \n \n \n \n \n \n \n \n \n\n\n \n \n \n \n \n \n \n \n \n\n\n \n \n \n \n \n \n \n \n \n\n\n \n \n \n \n \n \n \n \n \n\n\n \n \n \n \n \n \n \n \n \n\n\n \n \n \n \n \n \n \n \n \n\n\n \n \n \n \n \n \n \n \n \n\n\n \n \n \n \n \n \n \n\n\n \n \n \n \n \n \n \n \n \n\n\n \n \n \n \n \n \n \n \n \n\n\n \n \n \n \n \n \n \n \n \n\n\n \n \n \n \n \n \n \n \n \n\n\n \n \n \n \n \n \n \n \n \n\n\n \n \n \n \n \n \n \n \n \n\n\n \n \n \n \n \n \n \n\n\n \n \n \n \n \n \n \n \n \n\n\n \n \n \n \n \n \n \n \n \n\n\n \n \n \n \n \n \n \n \n \n\n\n \n \n \n \n \n \n \n \n \n\n\n \n \n \n \n \n \n \n \n \n\n\n \n \n \n \n \n \n \n \n \n\n\n \n \n \n \n \n \n \n \n \n\n\n \n \n \n \n \n \n \n \n \n\n\n \n \n \n \n \n \n \n \n \n\n\n \n \n \n \n \n \n \n \n \n\n\n \n \n \n \n \n \n \n \n \n\n\n \n \n \n \n \n \n \n \n \n\n\n \n \n \n \n \n \n \n\n\n \n \n \n \n \n \n \n \n \n\n\n \n \n \n \n \n \n \n \n \n\n\n \n \n \n \n \n \n \n\n\n \n \n \n \n \n \n \n \n \n\n\n \n \n \n \n \n \n \n \n \n\n\n \n \n \n \n \n \n \n\n\n
         
  (Unaudited) 
  October 31, 2011  July 31, 2011 
 
        
ASSETS
        
 
        
Current assets:
        
Cash and cash equivalents
 $371,594  $389,971 
Accounts receivable — net
  232,837   228,483 
Inventories:
        
Finished products
  64,652   62,152 
Work-in-process
  16,259   14,550 
Raw materials and supplies
  28,752   27,484 
 
      
Total inventories
  109,663   104,186 
Prepaid expenses and other current assets
  42,120   35,647 
 
      
 
        
Total current assets
  756,214   758,287 
 
        
Other assets:
        
Goodwill
  792,303   800,343 
Other intangible assets
  84,461   89,961 
Deferred income taxes
  50,676   53,755 
Other
  19,444   19,244 
 
        
Property, plant and equipment:
        
Cost:
        
Land
  6,360   6,406 
Buildings and improvements
  103,683   104,644 
Machinery and equipment
  303,493   305,557 
Construction in progress
  13,431   11,226 
 
      
 
  426,967   427,833 
 
        
Less accumulated depreciation
  290,704   287,918 
 
      
 
        
Property, plant and equipment — net
  136,263   139,915 
 
      
 
        
Total
 $1,839,361  $1,861,505 
 
      
 
        
LIABILITIES AND STOCKHOLDERS’ INVESTMENT
        
 
        
Current liabilities:
        
Accounts payable
 $96,237  $98,847 
Wages and amounts withheld from employees
  46,221   69,798 
Taxes, other than income taxes
  8,963   7,612 
Accrued income taxes
  16,170   9,954 
Other current liabilities
  57,717   54,406 
Current maturities on long-term debt
  61,264   61,264 
 
      
 
        
Total current liabilities
  286,572   301,881 
 
        
Long-term obligations, less current maturities
  330,054   331,914 
 
        
Other liabilities
  68,200   71,518 
 
      
 
        
Total liabilities
  684,826   705,313 
 
        
Stockholders’ investment:
        
Common stock:
        
Class A nonvoting common stock — Issued 51,261,487 and 51,261,487 shares,\nrespectively and outstanding 48,862,485 and 49,284,252 shares, respectively
  513   513 
Class B voting common stock — Issued and outstanding, 3,538,628 shares
  35   35 
Additional paid-in capital
  310,602   307,527 
Earnings retained in the business
  812,142   789,100 
Treasury stock - 2,082,801 and 1,667,235 shares, respectively of Class A\nnonvoting common stock, at cost
  (61,015)  (50,017)
Accumulated other comprehensive income
  96,778   113,898 
Other
  (4,520)  (4,864)
 
      
 
        
Total stockholders’ investment
  1,154,535   1,156,192 
 
      
 
        
Total
 $1,839,361  $1,861,505 
 
      
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BRADY CORPORATION AND SUBSIDIARIES
\n\nCONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS\n\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
         
  (Unaudited) 
  Three Months Ended 
  October 31, 
  2011  2010 
Operating activities:
        
Net income
 $32,732  $26,281 
Adjustments to reconcile net income to net cash provided by operating activities:
        
Depreciation and amortization
  11,241   12,594 
Deferred income taxes
  4,399   (4,849)
Non-cash portion of stock-based compensation expense
  3,591   4,069 
Non-cash portion of restructuring charges
  —   951 
Changes in operating assets and liabilities\n(net of effects of business acquisitions/divestitures):
        
Accounts receivable
  (7,798)  (13,614)
Inventories
  (7,156)  (3,689)
Prepaid expenses and other assets
  (7,384)  1,078 
Accounts payable and accrued liabilities
  (21,814)  (16,909)
Income taxes
  7,470   10,245 
 
      
Net cash provided by operating activities
  15,281   16,157 
 
        
Investing activities:
        
Purchases of property, plant and equipment
  (5,817)  (2,810)
Settlement of net investment hedges
  (958)  — 
Other
  (233)  (908)
 
      
Net cash used in investing activities
  (7,008)  (3,718)
 
        
Financing activities:
        
Payment of dividends
  (9,690)  (9,424)
Proceeds from issuance of common stock
  683   2,105 
Purchase of treasury stock
  (12,309)  — 
Income tax benefit from the exercise of stock options and deferred\ncompensation distribution, and other
  456   (146)
 
      
Net cash used in financing activities
  (20,860)  (7,465)
 
        
Effect of exchange rate changes on cash
  (5,790)  6,286 
 
        
Net (decrease) increase in cash and cash equivalents
  (18,377)  11,260 
Cash and cash equivalents, beginning of period
  389,971   314,840 
 
      
 
        
Cash and cash equivalents, end of period
 $371,594  $326,100 
 
      
 
        
Supplemental disclosures:
        
Cash paid during the period for:
        
Interest, net of capitalized interest
 $6,082  $7,211 
Income taxes, net of refunds
  5,825   5,907 
\n
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Information by regional segment for the three months ended October 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
                         
                  Corporate    
                  and    
(in thousands) Americas  Europe  Asia-Pacific  Total Region  Eliminations  Total 
SALES TO EXTERNAL CUSTOMERS
                        
Three months ended:
                        
October 31, 2011
 $153,863  $97,356  $98,289  $349,508   —  $349,508 
October 31, 2010
 $145,988  $92,050  $91,550  $329,588   —  $329,588 
 
                        
SALES GROWTH INFORMATION
                        
Three months ended October 31, 2011:
                        
Base
  5.7%  3.7%  -0.2%  3.5%  —   3.5%
Currency
  0.4%  3.7%  5.5%  2.7%  —   2.7%
Acquisitions/Divestitures
  -0.7%  -1.6%  2.1%  -0.2%  —   -0.2%
 
                  
Total
  5.4%  5.8%  7.4%  6.0%  —   6.0%
 
                        
Three months ended October 31, 2010:
                        
Base
  4.3%  0.7%  -0.3%  2.0%  —   2.0%
Currency
  0.7%  -6.9%  4.4%  -0.5%  —   -0.5%
Acquisitions/Divestitures
  2.2%  3.8%  0.0%  2.0%  —   2.0%
 
                  
Total
  7.2%  -2.4%  4.1%  3.5%  —   3.5%
 
                        
SEGMENT PROFIT (LOSS)
                        
Three months ended:
                        
October 31, 2011
 $43,230  $26,299  $13,304  $82,833  $(3,263) $79,570 
October 31, 2010
 $39,359  $24,061  $16,829  $80,249  $(3,436) $76,813 
Percentage increase (decrease)
  9.8%  9.3%  -20.9%  3.2%      3.6%
\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
         
  Three months ended: 
  October 31,  October 31, 
  2011  2010 
Total profit for reportable segments
 $82,833  $80,249 
Corporate and eliminations
  (3,263)  (3,436)
Unallocated amounts:
        
Administrative costs
  (30,480)  (31,569)
Restructuring costs
  —   (3,641)
Investment and other income (expense)
  (202)  290 
Interest expense
  (5,047)  (5,687)
 
      
Income before income taxes
  43,841   36,206 
Income taxes
  (11,109)  (9,925)
 
      
Net income
 $32,732  $26,281 
 
      
\n
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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\n\n
                     
  Fiscal 2012 
  Q1  Q2  Q3  Q4  Total 
EBITDA (1)
                    
Net income
 $32,732              $32,732 
Interest expense
  5,047               5,047 
Income taxes
  11,109               11,109 
Depreciation and amortization
  11,241               11,241 
 
               
 
                    
EBITDA (non-GAAP measure)
 $60,129  $—  $—  $—  $60,129 
 
               
\n
\n\n
\n\n\n\n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n\n\n \n \n \n \n\n\n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n\n\n\n\n\n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n\n\n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n\n\n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n\n\n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n\n\n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n\n\n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n\n\n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n\n\n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \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 2011 
  Q1  Q2  Q3  Q4  Total 
EBITDA (1)
                    
Net income
 $26,281  $24,199  $28,589  $29,583  $108,652 
Interest expense
  5,687   5,850   5,103   5,484   22,124 
Income taxes
  9,925   8,205   8,607   8,669   35,406 
Depreciation and amortization
  12,594   12,908   12,020   11,305   48,827 
 
               
 
                    
EBITDA (non-GAAP measure)
 $54,487  $51,162  $54,319  $55,041  $215,009 
 
               
\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,\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 or\noperating income as an indicator of the company’s operating performance, or as an alternative\nto operating cash flows as a measure of liquidity. The EBITDA measure presented may not\nalways be comparable to similarly titled measures reported by other companies due to\ndifferences in the components of the calculation.
\n\n\n\n

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