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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the
Securities Exchange Act of 1934
Date of Report (Date of earliest event reported): August 31, 2021
BRADY CORPORATION
(Exact name of registrant as specified in its charter)
Commission File Number 1-14959
Wisconsin 39-0971239
(State or other jurisdiction of incorporation or organization) (IRS Employer Identification No.)
6555 West Good Hope Road
Milwaukee, Wisconsin 53223
(Address of Principal Executive Offices and Zip Code)
(414) 358-6600
(Registrant’s Telephone Number)
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:
Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
Securities registered pursuant to Section 12(b) of the Act:
Title of each classTrading
Symbol
Name of each exchange on which registered
Class A Nonvoting Common Stock, par value $0.01 per shareBRCNew York Stock Exchange
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (17 CFR 230.405) or Rule 12b-2 or the Securities Exchange Act of 1934 (17 CFR 240.12b-2).
Emerging growth company 
If an emerging growth company, indicate by check mark if the registrant has elected not to use extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ¨



Item 2.02RESULTS OF OPERATIONS AND FINANCIAL CONDITION

On September 2, 2021, Brady Corporation (the “Company”) issued a press release announcing its fiscal 2021 fourth quarter financial results. A copy of the press release is being furnished to the Securities and Exchange Commission as Exhibit 99.1 attached hereto and is incorporated herein by reference.

Item 7.01REGULATION FD DISCLOSURE

On September 2, 2021, the Company hosted a conference call related to its fiscal 2021 fourth quarter financial results. A copy of the slides referenced in the conference call, which is also posted on the Company's website, is being furnished to the Securities and Exchange Commission as Exhibit 99.3 attached hereto and is incorporated herein by reference.

Item 8.01OTHER EVENTS

Increase in Annual Dividend
On August 31, 2021, the Company's Board of Directors approved an increase in the annual cash dividend on its Class A Common Stock from $0.88 to $0.90 per share. A quarterly dividend in the amount of $0.225 per share will be paid on October 29, 2021, to shareholders of record as of the close of business on October 8, 2021. A copy of the press release regarding the dividend is attached hereto as Exhibit 99.2 and is incorporated herein by reference.
Share Repurchase Program
On September 2, 2021, the Corporation announced that its Board of Directors authorized an increase in the Company’s share repurchase program, authorizing the repurchase of up to a total of two million shares of the Company’s Class A Common Stock, inclusive of the remaining shares in the existing share repurchase program. The share repurchase program may be implemented from time to time on the open market or in privately negotiated transactions and has no expiration date. The repurchased shares will be available for use in connection with the Company’s stock-based plans and for other corporate purposes. The share repurchase program was described in a press release issued by the Company in connection with its fiscal 2021 fourth quarter financial results, which is attached hereto as Exhibit 99.1 and is incorporated by reference.

Item 9.01FINANCIAL STATEMENTS AND EXHIBITS

(d) Exhibits
EXHIBIT NUMBERDESCRIPTION
99.1
99.2
99.3
104Cover Page Interactive Data File (embedded within Inline XBRL document).




SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

  BRADY CORPORATION
Date: September 2, 2021
 /s/ AARON J. PEARCE
 Aaron J. Pearce
 Chief Financial Officer and Treasurer


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EXHIBIT 99.1


For More Information:
Investor contact: Ann Thornton 414-438-6887
Media contact: Kate Venne 414-358-5176


Brady Corporation Reports Fiscal 2021 Fourth Quarter Results and Announces its Fiscal 2022 EPS Guidance

Income before income taxes was $41.6 million in the fourth quarter of fiscal 2021 compared to $34.9 million in the fourth quarter of fiscal 2020. Income Before Income Taxes Excluding Certain Items* in the fourth quarter of fiscal 2021 was $45.4 million compared to $34.9 million in the fourth quarter of fiscal 2020.
Diluted EPS in the fourth quarter of fiscal 2021 and 2020 was consistent between both quarters at $0.53. Diluted EPS Excluding Certain Items* increased 32.1 percent to $0.70 in the fourth quarter of fiscal 2021 compared to $0.53 in the same quarter of the prior year.
Sales for the quarter increased 21.6 percent. Organic sales increased 12.6 percent.
Net cash provided by operating activities was $50.8 million in the fourth quarter of fiscal 2021 compared to $45.1 million in the fourth quarter of the prior year.
Diluted EPS guidance for the year ending July 31, 2022 was announced at a range of $3.12 - $3.32, excluding after-tax amortization expense and $2.90 - $3.10 on a GAAP basis. This GAAP EPS guidance range is an increase of 17.4 percent to 25.5 percent compared to GAAP EPS of $2.47 for the year ended July 31, 2021.

MILWAUKEE (September 2, 2021) -- Brady Corporation (NYSE: BRC) (“Brady” or “Company”), a world leader in identification solutions, today reported its financial results for its fiscal 2021 fourth quarter ended July 31, 2021.

Quarter Ended July 31, 2021 Financial Results:
Income before income taxes and losses of unconsolidated affiliate increased 19.4 percent to $41.6 million for the quarter ended July 31, 2021, compared to $34.9 million in the same quarter last year. Income Before Income Taxes Excluding Certain Items*, which was adjusted for non-recurring acquisition-related charges of $3.7 million for the quarter ended July 31, 2021, was $45.4 million, an increase of 30.1 percent compared to the fourth quarter of last year.
Net income for the quarter ended July 31, 2021 was $28.0 million compared to $27.7 million in the same quarter last year. Earnings per diluted Class A Nonvoting Common Share were $0.53 for the fourth quarter of fiscal 2021, compared to $0.53 in the same quarter last year. Net Income Excluding Certain Items* for the quarter ended



July 31, 2021 was $37.0 million and Diluted EPS Excluding Certain Items* for the quarter ended July 31, 2021 was $0.70.
Sales for the quarter ended July 31, 2021 increased 21.6 percent, which consisted of an organic sales increase of 12.6 percent, an increase of 4.7 percent from acquisitions, and an increase of 4.3 percent from foreign currency translation. Sales for the quarter ended July 31, 2021 were $306.1 million compared to $251.7 million in the same quarter last year. By segment, sales increased 35.0 percent in Identification Solutions and decreased 6.8 percent in Workplace Safety, which consisted of an organic sales increase of 24.5 percent in Identification Solutions and an organic sales decline of 12.7 percent in Workplace Safety.

Year Ended July 31, 2021 Financial Results:
Income before income taxes and losses of unconsolidated affiliate increased 21.3 percent to $171.0 million for the year ended July 31, 2021, compared to $140.9 million for the year ended July 31, 2020. Income Before Income Taxes Excluding Certain Items* increased 12.9 percent to $174.8 million for the year ended July 31, 2021, compared to $154.8 million for the year ended July 31, 2020. Income Before Income Taxes Excluding Certain Items* for the year ended July 31, 2021 was adjusted for non-recurring acquisition-related expenses of $3.7 million. Income Before Income Taxes Excluding Certain Items* for the prior year ended July 31, 2020 was adjusted for non-cash impairment charges of $13.8 million.
Net income for the year ended July 31, 2021 increased 15.4 percent to $129.7 million compared to $112.4 million last year. Earnings per diluted Class A Nonvoting Common Share increased 17.1 percent to $2.47 for the year ended July 31, 2021, compared to $2.11 last year.
Net Income Excluding Certain Items* increased 12.3 percent to $138.6 million for the year ended July 31, 2021 compared to $123.4 million for the year ended July 31, 2020. Diluted EPS Excluding Certain Items* increased 14.2 percent to $2.65 for the year ended July 31, 2021 compared to $2.32 for the year ended July 31, 2020.
Sales for the year ended July 31, 2021 increased 5.9 percent, which consisted of organic sales growth of 1.6 percent, an increase of 1.1 percent from acquisitions, and an increase of 3.2 percent from foreign currency translation. Sales for the year ended July 31, 2021 were $1.14 billion compared to $1.08 billion in the same period last year. By segment, sales grew 7.2 percent in Identification Solutions and grew 2.2 percent in Workplace Safety, which consisted of organic sales growth of 3.7 percent in Identification Solutions and an organic sales decline of 3.8 percent in Workplace Safety.

Commentary:
“Throughout the pandemic, we invested in sales and marketing as well as research and development. These investments, coupled with improved market conditions, helped us generate double-digit organic sales growth this quarter,” said Brady’s President and Chief Executive Officer, J. Michael Nauman. “This quarter, we also completed three acquisitions which position Brady extremely well for long-term sales and cash flow growth. Each



of these acquisitions brings technology to Brady that further cements our leadership position in selected niche safety and identification markets. Our priorities for fiscal 2022 are to continue to accelerate organic sales growth by making the necessary investments in R&D and sales and marketing, to continue to become a more efficient manufacturer through increased automation and the relentless push for sustainable efficiency actions, to ensure the smooth integration of our recent acquisitions, and finally to deploy our strong balance sheet to generate increased shareholder value.”
“This quarter, we had strong double-digit sales growth of 21.6 percent and generated non-GAAP EPS of $0.70, which represents another very strong quarter for Brady,” said Brady’s Chief Financial Officer, Aaron Pearce. “Brady continues to generate strong cash flow and has a very strong balance sheet. Even after investing $244 million in acquisitions in the fourth quarter, we are still in a net cash position of $109.3 million as of July 31, 2021. This year, we generated $205.7 million of cash flow from operating activities, which was an increase of 45.9 percent compared to last year. Brady’s strong balance sheet, recent organic and inorganic investments, and strong cash generation position us well for future financial success.”

Share Buyback Program:
On September 1, 2021, Brady’s Board of Directors authorized an increase in the Company’s share buyback program, bringing the amount of the Company’s Class A Common Stock authorized for repurchase up to a total of two million shares, inclusive of the shares in the existing share buyback program. The share buyback plan may be implemented from time to time on the open market or in privately negotiated transactions.

Fiscal 2022 Guidance:
Brady expects earnings per diluted Class A Nonvoting Common Share, excluding after-tax amortization expense to range from $3.12 to $3.32 for the year ending July 31, 2022. Brady also expects GAAP earnings per diluted Class A Nonvoting Common Share to range from $2.90 to $3.10, which would be an increase of 17.4 percent to 25.5 percent over the GAAP earnings per diluted Class A Nonvoting Common Share of $2.47 for the year ended July 31, 2021. Included in our earnings-per-share guidance is an $8.1 million increase in amortization expense from $7.1 million in fiscal 2021 to $15.2 million for the year ending July 31, 2022, which equates to an after-tax year-over-year increase of approximately $0.12 per share.
This guidance is based upon a full-year income tax rate of approximately 20 percent, depreciation and amortization expense of approximately $36 million, and sales growth in excess of 12 percent for the year ending July 31, 2022. Capital expenditures, exclusive of facility purchases are expected to be approximately $25 million during the year ending July 31, 2022. The Company’s fiscal 2022 guidance is based on foreign currency exchange rates as of July 31, 2021 and assumes a continued economic recovery.




A webcast regarding Brady’s fiscal 2021 fourth quarter financial results will be available at www.bradycorp.com/investors beginning at 9:30 a.m. central time today.

Brady Corporation is an international manufacturer and marketer of complete solutions that identify and protect people, products and places. Brady’s products help customers increase safety, security, productivity and performance and include high-performance labels, signs, safety devices, printing systems and software. Founded in 1914, the Company has a diverse customer base in electronics, telecommunications, manufacturing, electrical, construction, medical, aerospace and a variety of other industries. Brady is headquartered in Milwaukee, Wisconsin and as of July 31, 2021, employed approximately 5,700 people in its worldwide businesses. Brady’s fiscal 2021 sales were approximately $1.14 billion. Brady stock trades on the New York Stock Exchange under the symbol BRC. More information is available on the Internet at www.bradyid.com.

* Income Before Income Taxes Excluding Certain Items, Net Income Excluding Certain Items, and Diluted EPS Excluding Certain Items are non-GAAP measures. See appendix.

###

In this news release, statements that are not reported financial results or other historic information are “forward-looking statements.” These forward-looking statements relate to, among other things, the Company's future financial position, business strategy, targets, projected sales, costs, earnings, capital expenditures, debt levels and cash flows, and plans and objectives of management for future operations.

The use of words such as “may,” “will,” “expect,” “intend,” “estimate,” “anticipate,” “believe,” “should,” “project,” “continue” or “plan” or similar terminology are generally intended to identify forward-looking statements. These forward-looking statements by their nature address matters that are, to different degrees, uncertain and are subject to risks, assumptions, and other factors, some of which are beyond Brady’s control, that could cause actual results to differ materially from those expressed or implied by such forward-looking statements. For Brady, uncertainties arise from: adverse impacts of the novel coronavirus (“COVID-19”) pandemic or other pandemics; decreased demand for our products; our ability to compete effectively or to successfully execute our strategy; Brady’s ability to develop technologically advanced products that meet customer demands; Brady’s ability to properly identify, integrate, and grow acquired companies, and to manage contingent liabilities from divested businesses; raw material and other cost increases including raw material shortages; difficulties in protecting our websites, networks, and systems against security breaches; risks associated with the loss of key employees; extensive regulations by U.S. and non-U.S. governmental and self-regulatory entities; litigation, including product liability claims; foreign currency fluctuations; potential write-offs of goodwill and other intangible assets; changes in tax legislation and tax rates; differing interests of voting and non-voting shareholders; numerous other matters of national, regional and global scale, including major public health crises and government responses thereto and those of a political, economic, business, competitive, and regulatory nature contained from time to time in Brady’s U.S. Securities and Exchange Commission filings, including, but not limited to, those factors listed in the “Risk Factors” section within Item 1A of Part I of Brady’s Form 10-K for the year ended July 31, 2021.

These uncertainties may cause Brady's actual future results to be materially different than those expressed in its forward-looking statements. Brady does not undertake to update its forward-looking statements except as required by law.



BRADY CORPORATION AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF INCOME
(Unaudited; Dollars in thousands, except per share data)
Three months ended July 31,Year ended July 31,
 2021202020212020
Net sales$306,130 $251,744 $1,144,698 $1,081,299 
Cost of goods sold158,481 133,238 583,252 552,734 
Gross margin147,649 118,506 561,446 528,565 
Operating expenses:
Research and development13,167 9,364 44,551 40,662 
Selling, general and administrative93,680 75,923 349,768 336,059 
Impairment charges— — — 13,821 
Total operating expenses106,847 85,287 394,319 390,542 
Operating income40,802 33,219 167,127 138,023 
Other income (expense):
Investment and other income961 1,827 4,333 5,079 
Interest expense(149)(190)(437)(2,166)
Income before income taxes and losses of unconsolidated affiliate41,614 34,856 171,023 140,936 
Income tax expense8,593 6,925 35,413 28,321 
Income before losses of unconsolidated affiliate33,021 27,931 135,610 112,615 
Equity in losses of unconsolidated affiliate(4,994)(246)(5,754)(246)
Net income$28,027 $27,685 $129,856 $112,369 
Net income per Class A Nonvoting Common Share:
Basic$0.54 $0.53 $2.49 $2.13 
Diluted$0.53 $0.53 $2.47 $2.11 
Dividends$0.22 $0.22 $0.88 $0.87 
Net income per Class B Voting Common Share:
Basic$0.54 $0.53 $2.48 $2.11 
Diluted$0.53 $0.53 $2.46 $2.10 
Dividends$0.22 $0.22 $0.86 $0.85 
Weighted average common shares outstanding:
Basic52,065 51,983 52,039 52,763 
Diluted52,611 52,389 52,409 53,231 




BRADY CORPORATION AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
(Unaudited; Dollars in thousands)
July 31, 2021July 31, 2020
ASSETS
Current assets:
Cash and cash equivalents$147,335 $217,643 
Accounts receivable, net of allowance for credit losses of $7,306 and $7,157, respectively170,579 146,181 
Inventories136,107 135,662 
Prepaid expenses and other current assets11,083 9,962 
Total current assets465,104 509,448 
Property, plant and equipment—net121,741 115,068 
Goodwill614,137 416,034 
Other intangible assets92,334 22,334 
Deferred income taxes16,343 8,845 
Operating lease assets41,880 41,899 
Other assets26,217 28,838 
Total$1,377,756 $1,142,466 
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities:
Accounts payable$82,152 $62,547 
Accrued compensation and benefits81,173 41,546 
Taxes, other than income taxes13,054 8,057 
Accrued income taxes3,915 8,652 
Current operating lease liabilities17,667 15,304 
Other current liabilities59,623 49,782 
Total current liabilities257,584 185,888 
Long-term debt38,000 — 
Long-term operating lease liabilities28,347 31,982 
Other liabilities90,797 61,524 
Total liabilities414,728 279,394 
Stockholders’ equity:
Common stock:
Class A nonvoting common stock—Issued 51,261,487 shares, and outstanding 48,528,245 and 48,456,954 shares, respectively (aggregate liquidation preference of $42,716)513 513 
Class B voting common stock—Issued and outstanding, 3,538,628 shares35 35 
Additional paid-in capital339,125 331,761 
Retained earnings788,369 704,456 
Treasury stock—2,733,242 and 2,804,533 shares, respectively of Class A nonvoting common stock, at cost(109,061)(107,216)
Accumulated other comprehensive loss(55,953)(66,477)
Total stockholders’ equity963,028 863,072 
Total$1,377,756 $1,142,466 




BRADY CORPORATION AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited; Dollars in thousands)
Year ended July 31,
 20212020
Operating activities:
Net income$129,659 $112,369 
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization25,483 23,437 
Stock-based compensation expense10,098 8,843 
Deferred income taxes(8,965)(764)
Impairment charges— 13,821 
Equity in losses of unconsolidated affiliate5,754 246 
Other(831)2,611 
Changes in operating assets and liabilities (net of effects of business acquisitions):
Accounts receivable(12,614)13,902 
Inventories7,298 (13,917)
Prepaid expenses and other assets(4,498)4,477 
Accounts payable and accrued liabilities58,283 (26,128)
Income taxes(4,002)2,080 
Net cash provided by operating activities205,665 140,977 
Investing activities:
Purchases of property, plant and equipment(27,189)(27,277)
Acquisition of businesses, net of cash acquired(243,983)— 
Other2,580 (8,842)
Net cash used in investing activities(268,592)(36,119)
Financing activities:
Payment of dividends(45,746)(45,756)
Proceeds from exercise of stock options1,765 5,511 
Payments for employee taxes withheld from stock-based awards(2,783)(9,065)
Purchase of treasury stock(3,593)(64,514)
Proceeds from borrowing on credit facilities101,957 20,697 
Repayment of borrowing on credit facilities(63,957)(21,855)
Principal payments on debt— (48,672)
Other33 134 
Net cash used in financing activities(12,324)(163,520)
Effect of exchange rate changes on cash and cash equivalents4,943 (2,767)
Net decrease in cash and cash equivalents(70,308)(61,429)
Cash and cash equivalents, beginning of period217,643 279,072 
Cash and cash equivalents, end of period$147,335 $217,643 
Supplemental disclosures:
Cash paid during the period for:
Interest$373 $2,401 
Income taxes$46,852 $29,600 




BRADY CORPORATION AND SUBSIDIARIES
SEGMENT INFORMATION
(Unaudited; Dollars in thousands)
Three months ended July 31,Year ended July 31,
2021202020212020
NET SALES
ID Solutions$231,024 $171,189 $841,508 $784,707 
Workplace Safety75,106 80,555 303,190 296,592 
Total$306,130 $251,744 $1,144,698 $1,081,299 
SALES INFORMATION
ID Solutions
Organic24.5 %(21.7)%3.7 %(8.0)%
Currency3.6 %(1.1)%2.0 %(1.1)%
Acquisition6.9 %— %1.5 %— %
Total35.0 %(22.8)%7.2 %(9.1)%
Workplace Safety
Organic(12.7)%10.8 %(3.8)%2.3 %
Currency5.9 %(1.1)%6.0 %(2.6)%
Total(6.8)%9.7 %2.2 %(0.3)%
Total Company
Organic12.6 %(13.7)%1.6 %(5.4)%
Currency4.3 %(1.0)%3.2 %(1.4)%
Acquisition4.7 %— %1.1 %— %
Total21.6 %(14.7)%5.9 %(6.8)%
SEGMENT PROFIT
ID Solutions$42,420 $31,140 $169,238 $150,639 
Workplace Safety5,647 6,028 22,754 21,019 
Total$48,067 $37,168 $191,992 $171,658 
SEGMENT PROFIT AS A PERCENT OF NET SALES
ID Solutions18.4 %18.2 %20.1 %19.2 %
Workplace Safety7.5 %7.5 %7.5 %7.1 %
Total15.7 %14.8 %16.8 %15.9 %
Three months ended July 31,Year ended July 31,
 2021202020212020
Total segment profit$48,067 $37,168 $191,992 $171,658 
Unallocated amounts:
Administrative costs(7,265)(3,949)(24,865)(19,814)
Impairment charges— — — (13,821)
Investment and other income961 1,827 4,333 5,079 
Interest expense(149)(190)(437)(2,166)
Income before income taxes and losses of unconsolidated affiliate$41,614 $34,856 $171,023 $140,936 



GAAP to NON-GAAP MEASURES
(Unaudited; Dollars in Thousands, Except Per Share Amounts)
In accordance with the U.S. Securities and Exchange Commission’s Regulation G, the following provides definitions of the non-GAAP measures used in the earnings release and the reconciliation to the most closely related GAAP measure.
Income Before Income Taxes Excluding Certain Items:
Brady is presenting the non-GAAP measure, "Income Before Income Taxes Excluding Certain Items." This is not a calculation based upon GAAP. The amounts included in this non-GAAP measure are derived from amounts included in the Consolidated Financial Statements and supporting footnote disclosures. We do not view these items to be part of our ongoing results. We believe this profit measure provides an important perspective of underlying business trends and results and provides a more comparable measure from year to year. The table below provides a reconciliation of the GAAP measure of Income before income taxes and losses of unconsolidated affiliate to the non-GAAP measure of Income Before Income Taxes Excluding Certain Items:
Three months ended July 31,Year ended July 31,
2021202020212020
Income before income taxes and losses of unconsolidated affiliate (GAAP measure)$41,614 $34,856 $171,023 $140,936 
Non-recurring acquisition transaction fees and other expenses3,742 — 3,742 — 
Impairment charges— — — 13,821 
Income Before Income Taxes Excluding Certain Items (non-GAAP measure)$45,356 $34,856 $174,765 $154,757 


Income Tax Expense Excluding Certain Items:
Brady is presenting the non-GAAP measure, "Income Tax Expense Excluding Certain Items." This is not a calculation based upon GAAP. The amounts included in this non-GAAP measure are derived from amounts included in the Consolidated Financial Statements and supporting footnote disclosures. We do not view these items to be part of our ongoing results. We believe this measure provides an important perspective of underlying business trends and results and provides a more comparable measure from year to year. The table below provides a reconciliation of the GAAP measure of Income tax expense to the non-GAAP measure of Income Tax Expense Excluding Certain Items:
Three months ended July 31,Year ended July 31,
2021202020212020
Income tax expense (GAAP measure)$8,593 $6,925 $35,610 $28,321 
Non-recurring acquisition transaction fees and other expenses689 — 689 — 
Impairment charges— — — 2,757 
Acquisition-related tax charges(942)— (942)— 
Income Tax Expense Excluding Certain Items (non-GAAP measure)$8,340 $6,925 $35,357 $31,078 





Net Income Excluding Certain Items:
Brady is presenting the non-GAAP measure, "Net Income Excluding Certain Items." This is not a calculation based upon GAAP. The amounts included in this non-GAAP measure are derived from amounts included in the Consolidated Financial Statements and supporting footnote disclosures. We do not view these items to be part of our ongoing results. We believe this measure provides an important perspective of underlying business trends and results and provides a more comparable measure from year to year. The table below provides a reconciliation of the GAAP measure of Net income to the non-GAAP measure of Net Income Excluding Certain Items:
Three months ended July 31,Year ended July 31,
2021202020212020
Net income (GAAP measure)$28,027 $27,685 $129,659 $112,369 
Non-recurring acquisition transaction fees and other expenses3,053 — 3,053 — 
Impairment charges— — — 11,064 
Acquisition-related tax charges942 — 942 — 
Other-than-temporary impairment of unconsolidated affiliate4,994 — 4,994 — 
Net Income Excluding Certain Items (non-GAAP measure)$37,016 $27,685 $138,648 $123,433 


Diluted EPS Excluding Certain Items:
Brady is presenting the non-GAAP measure, "Diluted EPS Excluding Certain Items." This is not a calculation based upon GAAP. The amounts included in this non-GAAP measure are derived from amounts included in the Consolidated Financial Statements. We do not view these items to be part of our ongoing results. We believe this measure provides an important perspective of underlying business trends and results and provides a more comparable measure from year to year. The table below provides a reconciliation of the GAAP measure of Net income per Class A Nonvoting Common Share to the non-GAAP measure of Diluted EPS Excluding Certain Items:
Three months ended July 31,Year ended July 31,
2021202020212020
Net income per Class A Nonvoting Common Share (GAAP measure)$0.53 $0.53 $2.47 $2.11 
Non-recurring acquisition transaction fees and other expenses0.06 — 0.06 — 
Impairment charges— — — 0.21 
Acquisition-related tax charges0.02 — 0.02 — 
Other-than-temporary impairment of unconsolidated affiliate0.09 — 0.10 — 
Diluted EPS Excluding Certain Items (non-GAAP measure)$0.70 $0.53 $2.65 $2.32 

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EXHIBIT 99.2

For More Information Contact:
Investor contact: Ann Thornton 414-438-6887
Media contact: Kate Venne 414-358-5176


Brady Corporation increases its dividend to shareholders for the 36th consecutive year

MILWAUKEE (September 1, 2021) -- On August 31, 2021, Brady Corporation’s (NYSE: BRC) Board of Directors approved an increase in the annual dividend to shareholders of the Company’s Class A Common Stock from $0.88 per share to $0.90 per share. A quarterly dividend to shareholders of the Company’s Class A Common Stock of $0.225 per share will be paid on October 29, 2021, to shareholders of record at the close of business on October 8, 2021. This dividend represents the 36th consecutive annual increase in dividends.
Brady Corporation is an international manufacturer and marketer of complete solutions that identify and protect people, products and places. Brady’s products help customers increase safety, security, productivity and performance and include high-performance labels, signs, safety devices, printing systems and software. Founded in 1914, the Company has a diverse customer base in electronics, telecommunications, manufacturing, electrical, construction, medical, aerospace and a variety of other industries. Brady is headquartered in Milwaukee, Wisconsin and as of July 31, 2020, employed approximately 5,400 people in its worldwide businesses. Brady’s fiscal 2020 sales were approximately $1.08 billion. Brady stock trades on the New York Stock Exchange under the symbol BRC. More information is available on the Internet at www.bradycorp.com.

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September 2, 2021 Brady Corporation F’21 Q4 Financial Results
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2Forward-Looking Statements In this presentation, statements that are not reported financial results or other historic information are “forward-looking statements.” These forward-looking statements relate to, among other things, the Company's future financial position, business strategy, targets, projected sales, costs, earnings, capital expenditures, debt levels and cash flows, and plans and objectives of management for future operations. The use of words such as “may,” “will,” “expect,” “intend,” “estimate,” “anticipate,” “believe,” “should,” “project,” “continue” or “plan” or similar terminology are generally intended to identify forward-looking statements. These forward-looking statements by their nature address matters that are, to different degrees, uncertain and are subject to risks, assumptions, and other factors, some of which are beyond Brady’s control, that could cause actual results to differ materially from those expressed or implied by such forward-looking statements. For Brady, uncertainties arise from: adverse impacts of the novel coronavirus (“COVID-19”) pandemic or other pandemics; decreased demand for our products; our ability to compete effectively or to successfully execute our strategy; Brady’s ability to develop technologically advanced products that meet customer demands; Brady’s ability to properly identify, integrate, and grow acquired companies, and to manage contingent liabilities from divested businesses; raw material and other cost increases including raw material shortages; difficulties in protecting our websites, networks, and systems against security breaches; risks associated with the loss of key employees; extensive regulations by U.S. and non-U.S. governmental and self-regulatory entities; litigation, including product liability claims; foreign currency fluctuations; potential write-offs of goodwill and other intangible assets; changes in tax legislation and tax rates; differing interests of voting and non-voting shareholders; numerous other matters of national, regional and global scale, including major public health crises and government responses thereto and those of a political, economic, business, competitive, and regulatory nature contained from time to time in Brady’s U.S. Securities and Exchange Commission filings, including, but not limited to, those factors listed in the “Risk Factors” section within Item 1A of Part I of Brady’s Form 10-K for the year ended July 31, 2021. These uncertainties may cause Brady's actual future results to be materially different than those expressed in its forward-looking statements. Brady does not undertake to update its forward-looking statements except as required by law.
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3Q4 F’21 Financial Summary • Sales grew 21.6% to $306.1M in Q4 of F’21 compared with $251.7M in Q4 of F’20. – Organic sales grew 12.6%, acquisitions increased sales by 4.7% and foreign currency translation increased sales 4.3%. • Gross profit margin of 48.2% in Q4 of F’21 compared with 47.1% in Q4 of F’20. • SG&A expense of $93.7M (30.6% of sales) in Q4 of F’21 compared with $75.9M (30.2% of sales) in Q4 of F’20. • GAAP Income before income taxes and losses of unconsolidated affiliate increased 19.4% to $41.6M in Q4 of F’21 compared with $34.9M in Q4 of F’20. – Income Before Income Taxes Excluding Certain Items* in the fourth quarter of fiscal 2021 increased 30.1% to $45.4M compared with $34.9M in Q4 of F’20. • GAAP Diluted EPS in the fourth quarter of fiscal 2021 was consistent with the fourth quarter of the prior year at $0.53. – Diluted EPS Excluding Certain Items*, increased 32.1% to $0.70 in the fourth quarter of fiscal 2021 compared to $0.53 in the same quarter of the prior year. * Income Before Income Taxes Excluding Certain Items and Diluted EPS Excluding Certain Items are non-GAAP measures. See appendix.
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4Sales Overview • Total sales increased 21.6%. • Organic sales increased 12.6%: • ID Solutions – Organic sales increased 24.5%. • Workplace Safety – Organic sales declined 12.7%. • 4.7% increase due to acquisitions. • 4.3% increase due to foreign currency translation. Q4 F’21 SALES: • ID Solutions – Double-digit organic sales growth rates in all regions combined with 6.9% growth from the acquisitions completed in Q4 of F’21. • Workplace Safety – Organic sales declined primarily due to strong prior year sales of Covid-related products. Q4 F’21 sales were above the pre-pandemic levels experienced in Q4 of F’19. Q4 F’21 SALES COMMENTARY: $293 $282 $290 $295 $287 $277 $266 $252 $277 $266 $296 $306 $200 $225 $250 $275 $300 Q1 F'19 4.7% Q2 F'19 2.3% Q3 F'19 2.4% Q4 F'19 1.7% Q1 F'20 (0.4%) Q2 F'20 (1.2%) Q3 F'20 (6.0%) Q4 F'20 (13.7%) Q1 F'21 (4.9%) Q2 F'21 (6.3%) Q3 F'21 6.5% Q4 F'21 12.6% Organic Sales Growth (Decline) SALES (millions of USD)
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Gross Profit Margin 5 • Gross profit margin of 48.2% compared to 47.1% in Q4 of F’20. • The non-recurring impact of purchase accounting charges related to our recent acquisitions reduced our gross profit margin by approximately 20 basis points. • Efficiency gains, automation and selected price increases partially offset the negative impacts caused by input-cost inflation, product mix, and reduced sales volumes in our Workplace Safety business. Q4 F’21 – GROSS PROFIT MARGIN: $147 $140 $146 $147 $141 $139 $130 $119 $135 $130 $149 $148 50.0% 49.5% 50.3% 49.6% 49.3% 50.3% 48.7% 47.1% 48.9% 48.7% 50.4% 48.2% 40% 45% 50% $100 $125 $150 Q1 F'19 Q2 F'19 Q3 F'19 Q4 F'19 Q1 F'20 Q2 F'20 Q3 F'20 Q4 F'20 Q1 F'21 Q2 F'21 Q3 F'21 Q4 F'21 GROSS PROFIT & GPM% (millions of USD)
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SG&A Expense 6 • SG&A expense increased as a percent of sales when compared to Q4 of last year primarily due to increased incentive-based compensation and acquisition-related expenses. • We continue to drive efficiencies in SG&A expenses while also investing in sales and marketing activities to accelerate sales growth. Q4 F’21 – SG&A EXPENSE: $95 $93 $95 $89 $90 $87 $83 $76 $83 $82 $91 $94 32.3% 32.8% 32.7% 30.2% 31.2% 31.6% 31.3% 30.2% 30.0% 30.9% 30.7% 30.6% 10% 15% 20% 25% 30% 35% $60 $70 $80 $90 $100 $110 Q1 F'19 Q2 F'19 Q3 F'19 Q4 F'19 Q1 F'20 Q2 F'20 Q3 F'20 Q4 F'20 Q1 F'21 Q2 F'21 Q3 F'21 Q4 F'21 SG&A EXPENSE AND SG&A EXPENSE AS A % OF SALES (millions of USD)
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R&D Expense 7 $11.3 $11.1 $11.4 $11.3 $11.0 $10.5 $9.8 $9.4 $10.2 $9.9 $11.3 $13.2 3.9% 3.9% 3.9% 3.8% 3.8% 3.8% 3.7% 3.7% 3.7% 3.7% 3.8% 4.3% 1.5% 2.5% 3.5% 4.5% $6.0 $8.0 $10.0 $12.0 $14.0 Q1 F'19 Q2 F'19 Q3 F'19 Q4 F'19 Q1 F'20 Q2 F'20 Q3 F'20 Q4 F'20 Q1 F'21 Q2 F'21 Q3 F'21 Q4 F'21 R&D EXPENSE AND R&D EXPENSE AS A % OF SALES (millions of USD) • R&D expense increased due to increased investments to drive future organic sales growth combined with $1.3M of incremental R&D from the acquisitions completed in the fourth quarter of F’21. • The acquisitions of Magicard, Code, and Nordic ID all carry higher R&D expense levels than Brady’s core business. • We have a solid new product pipeline and we are focused on ensuring that our R&D spend is both efficient and effective. INCREASING OUR INVESTMENT IN RESEARCH & DEVELOPMENT:Q4 F’21 – R&D EXPENSE:
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8Income Before Income Taxes • GAAP Income before income taxes was $41.6M in Q4 of F’21 compared to $34.9M in Q4 of F’20. • Q4 of F’21 income before income taxes was negatively impacted by $3.7M of acquisition-related non-recurring expenses, which have been removed to arrive at the non-GAAP measure of Income Before Income Taxes Excluding Certain Items. • Income Before Income Taxes Excluding Certain Items* increased 30.1% to $45.4M in Q4 of F’21 compared to $34.9M in Q4 of F’20. Q4 F’21 - INCOME BEFORE INCOME TAXES: INCOME BEFORE INCOME TAXES EXCLUDING CERTAIN ITEMS* (millions of USD) $39.9 $36.7 $41.0 $47.1 $41.6 $42.4 $36.0 $34.9 $42.2 $39.4 $47.8 $45.4 $10 $20 $30 $40 $50 Q1 F'19 14.8% Q2 F'19 4.8% Q3 F'19 10.8% Q4 F'19 4.1% Q1 F'20 4.2% Q2 F'20 15.4% Q3 F'20 (12.2%) Q4 F'20 (26.0%) Q1 F'21 1.6% Q2 F'21 (7.0%) Q3 F'21 32.8% Q4 F'21 30.1%Year-on-Year Growth * * Income Before Income Taxes Excluding Certain Items is a non-GAAP measures. See appendix. *
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9Net Income & Diluted EPS • GAAP Net income was $28.0M in Q4 of F’21 compared to $27.7M in Q4 of F’20. - Net Income Excluding Certain Items* was $37.0M in Q4 of F’21 compared to $27.7M in Q4 of F’20. • GAAP Diluted EPS was $0.53 in both Q4 of F’21 and Q4 of F’20. - Diluted EPS Excluding Certain Items* was $0.70 in Q4 of F’21 compared to $0.53 in Q4 of F’20. Q4 F’21 – NET INCOME & DILUTED EPS: $0.58 $0.55 $0.65 $0.68 $0.70 $0.62 $0.47 $0.53 $0.64 $0.59 $0.71 $0.70 $0.00 $0.20 $0.40 $0.60 Q1 F'19 Q2 F'19 Q3 F'19 Q4 F'19 Q1 F'20 Q2 F'20 Q3 F'20 Q4 F'20 Q1 F'21 Q2 F'21 Q3 F'21 Q4 F'21 DILUTED EPS EXCLUDING CERTAIN ITEMS* $30.6 $29.2 $34.8 $36.6 $37.5 $33.6 $24.7 $27.7 $33.5 $30.9 $37.3 $37.0 $0 $10 $20 $30 $40 Q1 F'19 Q2 F'19 Q3 F'19 Q4 F'19 Q1 F'20 Q2 F'20 Q3 F'20 Q4 F'20 Q1 F'21 Q2 F'21 Q3 F'21 Q4 F'21 NET INCOME EXCLUDING CERTAIN ITEMS* (millions of USD) * Net Income Excluding Certain Items and Diluted EPS Excluding Certain Items, are non-GAAP measures. See appendix. * * * *
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10Cash Generation & Uses • Cash flow from operating activities was $50.8M in Q4 of F’21 compared to $45.1M in Q4 of F’20. • Free cash flow* was $45.0M in Q4 of F’21 compared to $39.4M in Q4 of F’20. • We invested $244.0M in acquisitions in Q4 of F’21. • We returned $11.4M to our shareholders in the form of dividends in Q4 of F’21. • Cash generation continues to be robust and in excess of reported net income. CASH FLOWS IN Q4 OF F’21: * Free Cash Flow is calculated as Net Cash Provided by Operating Activities less Capital Expenditures. CASH FLOW FROM OPERATING ACTIVITIES (millions of USD) $18.8 $25.4 $52.7 $65.3 $38.8 $14.3 $42.8 $45.1 $62.8 $36.1 $56.0 $50.8 $0 $20 $40 $60 Q1 F'19 54% Q2 F'19 87% Q3 F'19 152% Q4 F'19 178% Q1 F'20 104% Q2 F'20 43% Q3 F'20 313% Q4 F'20 163% Q1 F'21 188% Q2 F'21 117% Q3 F'21 150% Q4 F'21 181% % of Net Income (millions of USD) 3 Mos. Ended July 31, 2021 3 Mos. Ended July 31, 2020 Year Ended July 31, 2021 Year Ended July 31, 2020 Cash Balance - Beginning of Period 321.8$ 238.8$ 217.6$ 279.1$ Cash Flow from Operating Activities 50.8 45.1 205.7 141.0 Capital Expenditures (5.8) (5.7) (27.2) (27.3) Dividends (11.4) (11.3) (45.7) (45.8) Business Acquisitions (244.0) - (244.0) - Share Repurchases - (0.4) (3.6) (64.5) Debt Borrowings (Repayments) 38.0 (49.8) 38.0 (49.8) Effect of Exchange Rates on Cash (2.5) 6.3 4.9 (2.8) Other 0.4 (5.4) 1.6 (12.3) Cash Balance - End of Period 147.3$ 217.6$ 147.3$ 217.6$
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Net Cash 11 • July 31, 2021 cash = $147.3M. • July 31, 2021 debt = $38.0M. • Brady is in a net cash position, even after investing $244.0M in acquisitions in Q4 of F’21. • Balance sheet provides flexibility for future organic and inorganic investments. STRONG BALANCE SHEET: $138 $151 $188 $229 $245 $240 $190 $218 $256 $278 $322 $109 $0 $50 $100 $150 $200 $250 $300 Q1 F'19 Q2 F'19 Q3 F'19 Q4 F'19 Q1 F'20 Q2 F'20 Q3 F'20 Q4 F'20 Q1 F'21 Q2 F'21 Q3 F'21 Q4 F'21 NET CASH (millions of USD)
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12F’21 Financial Summary * Net Income Excluding Certain Items and Diluted EPS Excluding Certain Items, are non-GAAP measures. See appendix. 2021 2020 Change Sales 1,144.7$ 1,081.3$ 5.9% Organic Sales Growth (Decline) 1.6% (5.4%) Gross Margin 561.4 528.6 6.2% % of Sales 49.0% 48.9% Research and Development (44.6) (40.7) 9.6% Selling, General and Administrative (349.8) (336.1) 4.1% % of Sales (30.6%) (31.1%) Impairment Charges - (13.8) Operating Income 167.1 138.0 21.1% Other Income (Expense) 3.9 2.9 Income Before Income Taxes and Losses of Unconsolidated Affiliate 171.0$ 140.9$ 21.3% Net Income 129.7$ 112.4$ 15.4% Diluted EPS 2.47$ 2.11$ 17.1% Non-GAAP Measures: Net Income Excluding Certain Items* 138.6$ 123.4$ 12.3% Diluted EPS Excluding Certain Items* 2.65$ 2.32$ 14.2% Year Ended July 31,
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13F’22 Diluted EPS Guidance F’22 Diluted EPS, Excluding Amortization $3.12 to $3.32 GAAP F’22 Diluted EPS $2.90 to $3.10 Includes an increase in after-tax amortization expense of $0.12/share (from $0.10/share in F’21 to $0.22/share in F’22). Guidance Assumptions: • Continued economic improvement. • Full-year income tax rate in the 20% range. • Foreign currency rates as of July 31, 2021. • Total sales growth in excess of 12%. • Depreciation and amortization of approximately $36M. • The anticipated EPS impact of after tax amortization expense increases from $0.10 in F’21 to $0.22 in F’22. • Capital expenditures, excluding facility purchases, of approximately $25M.
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Q4 F’21 vs. Q4 F’20 (millions of USD) 14Identification Solutions • Revenues increased 35.0%: • Organic growth = + 24.5%. • Acquisition growth = + 6.9%. • Fx growth = + 3.6%. • Organic sales growth in all regions. • Expenses are controlled due to sustainable efficiency activities, automation, and cost containment activities. • Segment profit as a percent of sales increased even though we have increased our innovation investments and are actively investing in sales- generating resources. Q4 F’21 SUMMARY: Q4 F’21 Q4 F’20 Change Sales $ 231.0 $ 171.2 + 35.0% Segment Profit 42.4 31.1 + 36.2% Segment Profit % 18.4% 18.2% + 20 bps $218 $209 $214 $222 $215 $205 $193 $171 $198 $194 $218 $231 19% 18% 19% 21% 20% 20% 19% 18% 20% 20% 22% 18% 0% 5% 10% 15% 20% $150 $175 $200 $225 $250 $275 Q1 F'19 5.7% Q2 F'19 3.6% Q3 F'19 4.0% Q4 F'19 3.3% Q1 F'20 (0.2%) Q2 F'20 (1.3%) Q3 F'20 (8.2%) Q4 F'20 (21.7%) Q1 F'21 (8.4%) Q2 F'21 (6.9%) Q3 F'21 9.8% Q4 F'21 24.5% Organic Growth SALES & SEGMENT PROFIT % (millions of USD) • Anticipate mid-teen percentage sales growth in fiscal 2022, inclusive of the acquisitions completed in the fourth quarter of fiscal 2021. • Continued strong profitability and cash generation. OUTLOOK:
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Q4 F’21 vs. Q4 F’20 (millions of USD) 15Workplace Safety • Revenues decreased 6.8%: • Organic sales declined 12.7%. • Fx = + 5.9%. • Organic sales declined in all regions due to reduced sales of Covid-related products. • Q4 of F’21 sales were above the pre-pandemic levels experienced in Q4 of F’19. • Segment profit decreased due to the reduced sales levels in the current year along with gross margin pressures. Q4 F’21 SUMMARY: Q4 F’21 Q4 F’20 Change Sales $ 75.1 $ 80.6 (6.8%) Segment Profit 5.6 6.0 (6.3%) Segment Profit % 7.5% 7.5% - Organic Growth $75 $73 $76 $73 $72 $71 $73 $81 $79 $72 $77 $75 7% 6% 8% 9% 7% 8% 6% 7% 10% 5% 7% 8% 0% 2% 4% 6% 8% 10% $50 $75 $100 Q1 F'19 2.2% Q2 F'19 (0.9%) Q3 F'19 (1.6%) Q4 F'19 (2.6%) Q1 F'20 (0.8%) Q2 F'20 (1.0%) Q3 F'20 0.2% Q4 F'20 10.8% Q1 F'21 5.5% Q2 F'21 (4.8%) Q3 F'21 (2.2%) Q4 F'21 (12.7%) SALES & SEGMENT PROFIT % (millions of USD) • Challenging comparables in the first half of F’22 due to strong Covid-related product sales in the comparable prior year period. • Anticipate low-single digit organic sales growth in F’22, with all of the growth coming in the final 3 quarters of the fiscal year. • Anticipate increased core product sales to partially offset the slowdown in Covid-related product sales. OUTLOOK:
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16Investor Relations Brady Contact: Ann Thornton Investor Relations 414-438-6887 Ann_Thornton@bradycorp.com See our website at www.bradycorp.com/investors
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Appendix GAAP to Non-GAAP Reconciliations 17
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18Non-GAAP Reconciliations 2021 2020 2021 2020 41,614$ 34,856$ 171,023$ 140,936$ Non-recurring acquisition transaction fees and other expenses 3,742 - 3,742 - Impairment charges - - - 13,821 45,356$ 34,856$ 174,765$ 154,757$ 2021 2020 2021 2020 8,593$ 6,925$ 35,610$ 28,321$ Non-recurring acquisition transaction fees and other expenses 689 - 689 - Impairment charges - - - 2,757 Acquisition-related tax charges (942) - (942) - 8,340$ 6,925$ 35,357$ 31,078$ Income Before Income Taxes Excluding Certain Items: (Unaudited; Dollars in Thousands, Except Per Share Amounts) In accordance with the U.S. Securities and Exchange Commission’s Regulation G, the following provides definitions of the non-GAAP measures used in the earnings release and the reconciliation to the most closely related GAAP measure. Brady is presenting the non-GAAP measure, "Income Before Income Taxes Excluding Certain Items." This is not a calculation based upon GAAP. The amounts included in this non-GAAP measure are derived from amounts included in the Consolidated Financial Statements and supporting footnote disclosures. We do not view these items to be part of our ongoing results. We believe this profit measure provides an important perspective of underlying business trends and results and provides a more comparable measure from year to year. The table below provides a reconciliation of the GAAP measure of Income before income taxes and losses of unconsolidated affiliate to the non-GAAP measure of Income Before Income Taxes Excluding Certain Items: Three months ended July 31, Twelve months ended July 31, Income before income taxes and losses of unconsolidated affiliate (GAAP measure) Income Tax Expense Excluding Certain Items (non-GAAP measure) Income Before Income Taxes Excluding Certain Items (non-GAAP measure) Income tax expense (GAAP measure) Income Tax Expense Excluding Certain Items: Brady is presenting the non-GAAP measure, "Income Tax Expense Excluding Certain Items." This is not a calculation based upon GAAP. The amounts included in this non-GAAP measure are derived from amounts included in the Consolidated Financial Statements and supporting footnote disclosures. We do not view these items to be part of our ongoing results. We believe this measure provides an important perspective of underlying business trends and results and provides a more comparable measure from year to year. The table below provides a reconciliation of the GAAP measure of Income tax expense to the non-GAAP measure of Income Tax Expense Excluding Certain Items: Three months ended July 31, Twelve months ended July 31,
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19Non-GAAP Reconciliations 2021 2020 2021 2020 28,027$ 27,685$ 129,659$ 112,369$ Non-recurring acquisition transaction fees and other expenses 3,053 - 3,053 - Impairment charges - - - 11,064 Acquisition-related tax charges 942 - 942 - Other-than-temporary impairment of unconsolidated affiliate 4,994 - 4,994 - 37,016$ 27,685$ 138,648$ 123,433$ 2021 2020 2021 2020 $ 0.53 $ 0.53 $ 2.47 $ 2.11 Non-recurring acquisition transaction fees and other expenses 0.06 - 0.06 - Impairment charges - - - 0.21 Acquisition-related tax charges 0.02 - 0.02 - Other-than-temporary impairment of unconsolidated affiliate 0.09 - 0.10 - 0.70$ 0.53$ 2.65$ 2.32$ (Unaudited; Dollars in Thousands, Except Per Share Amounts) In accordance with the U.S. Securities and Exchange Commission’s Regulation G, the following provides definitions of the non-GAAP measures used in the earnings release and the reconciliation to the most closely related GAAP measure. Brady is presenting the non-GAAP measure, "Net Income Excluding Certain Items." This is not a calculation based upon GAAP. The amounts included in this non-GAAP measure are derived from amounts included in the Consolidated Financial Statements and supporting footnote disclosures. We do not view these items to be part of our ongoing results. We believe this measure provides an important perspective of underlying business trends and results and provides a more comparable measure from year to year. The table below provides a reconciliation of the GAAP measure of Net income to the non-GAAP measure of Net Income Excluding Certain Items: Net income (GAAP measure) Net Income Excluding Certain Items: Diluted EPS Excluding Certain Items (non-GAAP measure) Net Income Excluding Certain Items (non-GAAP measure) Diluted EPS Excluding Certain Items: Brady is presenting the non-GAAP measure, "Diluted EPS Excluding Certain Items." This is not a calculation based upon GAAP. The amounts included in this non-GAAP measure are derived from amounts included in the Consolidated Financial Statements. We do not view these items to be part of our ongoing results. We believe this measure provides an important perspective of underlying business trends and results and provides a more comparable measure from year to year. The table below provides a reconciliation of the GAAP measure of Net income per Class A Nonvoting Common Share to the non-GAAP measure of Diluted EPS Excluding Certain Items: Three months ended July 31, Twelve months ended July 31, Net income per Class A Nonvoting Common Share (GAAP measure) Three months ended July 31, Twelve months ended July 31,
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