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8-K - FORM 8-K - BRADY CORPd407861d8k.htm
EX-99.3 - INFORMATIONAL SLIDES DATED SEPTEMBER 7, 2012 - BRADY CORPd407861dex993.htm
EX-99.2 - PRESS RELEASE DATED SEPTEMBER 6, 2012 - BRADY CORPd407861dex992.htm

EXHIBIT 99.1

For More Information:

Investor contact: Aaron Pearce 414-438-6895

Media contact: Carole Herbstreit 414-438-6882

For Immediate Release

Brady Corporation Reports Fiscal 2012 Fourth Quarter Results and Announces Share Buyback Program

MILWAUKEE (September 7, 2012)—Brady Corporation (NYSE: BRC) (“Brady” or “Company”), a world leader in identification solutions, today reported its financial results for the fiscal 2012 fourth quarter ended July 31, 2012. The Company also announced that its Board of Directors authorized a share buyback program for up to two million shares of the company’s Class A Common Stock.

Quarter Ended July 31, 2012 Financial Results:

Sales for the fiscal 2012 fourth quarter ended July 31, 2012 were down 6.0 percent to $322.5 million compared to $343.1 million in the fourth quarter of fiscal 2011. Organic sales were down 2.6 percent, the impact of foreign currency translation decreased sales by 5.0 percent, and acquisitions added 1.6 percent. By segment, organic sales increased 3.0 percent in the Americas and 0.6 percent in EMEA, and decreased 14.6 percent in the Asia-Pacific region.

Net income in the fiscal 2012 fourth quarter was down 60.6 percent to $11.7 million compared to $29.6 million in the same quarter last year. Excluding $7.1 million of after-tax restructuring charges in the fourth quarter of fiscal 2012 and $1.6 million of after-tax restructuring charges in the same quarter last year, and a $5.6 million non-routine, non-cash tax charge in the fourth quarter of fiscal 2012, net income was down 21.7 percent to $24.4 million compared to $31.1 million in the same quarter last year.

Earnings per diluted Class A Common Share were down 60.0 percent to $0.22 in the fourth quarter of fiscal 2012 compared to $0.55 in the same quarter last year. Excluding the impacts from the after-tax restructuring charges and the non-routine tax charge, earnings per diluted Class A Common Share were down 19.0 percent to $0.47 in the fourth quarter of fiscal 2012, compared to $0.58 per share in the same quarter of fiscal 2011.

Year Ended July 31, 2012 Financial Results:

Sales for the year ended July 31, 2012 were down 1.1 percent to $1.32 billion compared to $1.34 billion for the year ended July 31, 2011. Organic sales were down 0.4 percent; acquisitions, net of divestitures increased sales by 0.3 percent; and the impact of foreign currency translation decreased sales by 1.0 percent. By segment, organic sales increased 3.4 percent in the Americas, and decreased 1.3 percent in EMEA and 5.3 percent in the Asia-Pacific region.

Net loss for the year ended July 31, 2012 was $17.9 million compared to net income of $108.7 million for the year ended July 31, 2011. Excluding the impact of the $115.7 million non-cash goodwill impairment charge incurred in fiscal 2012, after-tax restructuring charges of $9.6 million in fiscal 2012 and $6.5 million in fiscal 2011, and the $5.6 million non-routine tax charge in fiscal 2012, net income was down 1.9 percent to $113.0 million compared to $115.2 million in fiscal 2011.


The Company’s loss per diluted Class A Common Share was $0.35 for the year ended July 31, 2012 compared to earnings per diluted Class A Common Share of $2.04 for the year ended July 31, 2011. Excluding the impacts from the non-cash goodwill impairment charge, the after-tax restructuring charges, and the non-routine tax charge, earnings per diluted Class A Common Share were $2.14 for the year ended July 31, 2012 compared to $2.16 in fiscal 2011. In fiscal 2012, net cash provided by operating activities was $144.7 million.

Share Buyback Program:

On September 6, 2012, Brady’s Board of Directors authorized a share buyback program for up to two million shares of the Company’s common stock. The share buyback plan may be implemented from time to time on the open market or in privately negotiated transactions.

Commentary and Guidance:

“In the fourth quarter of fiscal 2012 we were pleased with our organic sales growth in the Americas and EMEA regions, despite a continued challenging economy. Our performance in Asia-Pacific was weaker than expected due to increased market competitiveness, particularly in the mobile handset industry. Throughout fiscal 2012, our focus has been on shifting resources to our highest growth opportunities. As a result, we have recently sold our medical die-cut business in the U.S. and our paper-label business, Etimark in Germany. We also continued to invest in developing and launching a number of proprietary new products and we made three acquisitions in EMEA that increased our market share and expanded our geographic presence,” said Brady’s President and Chief Executive Officer, Frank M. Jaehnert. “Looking forward, we expect continued moderate organic growth in the Americas, a challenging economic environment in Europe, and improving results in Asia-Pacific due to our restructuring activities and some recent customer wins there.”

“As we look to fiscal 2013, we see limited likelihood that the macro-economy will provide a tailwind,” said Brady’s Chief Financial Officer, Thomas J. Felmer. “As such, we anticipate low single-digit organic growth in fiscal 2013, with all of the growth driven by our initiatives. For fiscal 2013, we expect earnings per diluted Class A Common Share of between $2.20 and $2.40, exclusive of after-tax restructuring charges. This guidance is based on current exchange rates, a share count consistent with that as of July 31, 2012, a full-year income tax rate in the mid-to-upper 20 percent range, capital expenditures of approximately $35 million and depreciation and amortization of approximately $45 million.”

A webcast regarding Brady’s fiscal 2012 fourth quarter financial results will be available at www.bradycorp.com beginning at 9:30 a.m. Central Time today.


Brady Corporation is an international manufacturer and marketer of complete solutions that identify and protect premises, products and people. Brady’s products help customers increase safety, security, productivity and performance and include high-performance labels and signs, safety devices, printing systems and software, and precision die-cut materials. Founded in 1914, the company has millions of customers in electronics, telecommunications, manufacturing, electrical, construction, education, medical and a variety of other industries. Brady is headquartered in Milwaukee, Wisconsin and as of July 31, 2012 employed approximately 6,900 people at operations in the Americas, EMEA and Asia-Pacific. Brady’s fiscal 2012 sales were approximately $1.32 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.

###

Brady believes that certain statements in this news release are “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. All statements related to future, not past, events included in this news release, including, without limitation, statements regarding Brady’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 are forward-looking statements. When used in this news release, words such as “may,” “will,” “expect,” “intend,” “estimate,” “anticipate,” “believe,” “should,” “project” 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 the length or severity of the current worldwide economic downturn or timing or strength of a subsequent recovery; future financial performance of major markets Brady serves, which include, without limitation, telecommunications, manufacturing, electrical, construction, laboratory, education, governmental, public utility, computer, transportation; difficulties in making and integrating acquisitions; risks associated with newly acquired businesses; Brady’s ability to develop and successfully market new products; changes in the supply of, or price for, parts and components; increased price pressure from suppliers and customers; fluctuations in currency rates versus the US dollar; unforeseen tax consequences; potential write-offs of Brady’s substantial intangible assets; Brady’s ability to retain significant contracts and customers; risks associated with international operations; Brady’s ability to maintain compliance with its debt covenants; technology changes; business interruptions due to implementing business systems; environmental, health and safety compliance costs and liabilities; future competition; interruptions to sources of supply; Brady’s ability to realize cost savings from operating initiatives; difficulties associated with exports; risks associated with restructuring plans; risks associated with obtaining governmental approvals and maintaining regulatory compliance; and numerous other matters of national, regional and global scale, including 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 located in Item 1A of Part I of Brady’s Form 10-K for the year ended July 31, 2011. 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.


BRADY CORPORATION AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF INCOME

(Dollars in Thousands, Except Per Share Amounts)

 

     (Unaudited)  
     Three Months Ended July 31,     Twelve Months Ended July 31,  
     2012     2011     Percentage
Change
    2012     2011     Percentage
Change
 

Net sales

   $ 322,548      $ 343,104        -6.0   $ 1,324,269      $ 1,339,597        -1.1

Cost of products sold

     167,425        178,068        -6.0     687,963        683,401        0.7
  

 

 

   

 

 

     

 

 

   

 

 

   

Gross margin

     155,123        165,036        -6.0     636,306        656,196        -3.0

Operating expenses:

            

Research and development

     9,719        10,775        -9.8     38,440        43,001        -10.6

Selling, general and administrative

     109,821        109,421        0.4     430,310        441,815        -2.6

Restructuring charges

     8,670        2,202        293.7     12,110        9,188        31.8

Impairment charge

     —          —          N/A        115,688        —          N/A   
  

 

 

   

 

 

     

 

 

   

 

 

   

Total operating expenses

     128,210        122,398        4.7     596,548        494,004        20.8

Operating income

     26,913        42,638        -36.9     39,758        162,192        -75.5

Other income and (expense):

            

Investment and other income

     362        1,098        -67.0     2,082        3,990        -47.8

Interest expense

     (4,375     (5,484     -20.2     (19,090     (22,124     -13.7
  

 

 

   

 

 

     

 

 

   

 

 

   

Income before income taxes

     22,900        38,252        -40.1     22,750        144,058        -84.2

Income taxes

     11,241        8,669        29.7     40,661        35,406        14.8
  

 

 

   

 

 

     

 

 

   

 

 

   

Net income (loss)

   $ 11,659      $ 29,583        -60.6   $ (17,911   $ 108,652        -116.5
  

 

 

   

 

 

     

 

 

   

 

 

   

Per Class A Nonvoting Common Share:

            

Basic net income (loss)

   $ 0.22      $ 0.56        -60.7   $ (0.35   $ 2.06        -117.0

Diluted net income (loss)

   $ 0.22      $ 0.55        -60.0   $ (0.35   $ 2.04        -117.2

Dividends

   $ 0.185      $ 0.18        2.8   $ 0.74      $ 0.72        2.8

Per Class B Voting Common Share:

            

Basic net income (loss)

   $ 0.22      $ 0.56        -60.7   $ (0.36   $ 2.04        -117.6

Diluted net income (loss)

   $ 0.22      $ 0.55        -60.0   $ (0.36   $ 2.03        -117.7

Dividends

   $ 0.185      $ 0.18        2.8   $ 0.723      $ 0.70        2.8

Weighted average common shares outstanding (in thousands):

            

Basic

     52,196        52,815          52,453        52,639     

Diluted

     52,448        53,333          52,453        53,133     


BRADY CORPORATION AND SUBSIDIARIES

CONDENSED CONSOLIDATED BALANCE SHEETS

(Dollars in Thousands)

 

     (Unaudited)  
     July 31, 2012     July 31, 2011  

ASSETS

    

Current assets:

    

Cash and cash equivalents

   $ 305,900      $ 389,971   

Accounts receivable—net

     199,006        228,483   

Inventories:

    

Finished products

     64,740        62,152   

Work-in-process

     15,377        14,550   

Raw materials and supplies

     25,407        27,484   
  

 

 

   

 

 

 

Total inventories

     105,524        104,186   

Prepaid expenses and other current assets

     40,424        35,647   
  

 

 

   

 

 

 

Total current assets

     650,854        758,287   

Other assets:

    

Goodwill

     676,791        800,343   

Other intangible assets

     84,119        89,961   

Deferred income taxes

     45,356        53,755   

Other

     20,584        19,244   

Property, plant and equipment:

    

Cost:

    

Land

     8,651        6,406   

Buildings and improvements

     101,962        104,644   

Machinery and equipment

     292,130        305,557   

Construction in progress

     10,417        11,226   
  

 

 

   

 

 

 
     413,160        427,833   

Less accumulated depreciation

     283,145        287,918   
  

 

 

   

 

 

 

Property, plant and equipment—net

     130,015        139,915   
  

 

 

   

 

 

 

Total

   $ 1,607,719      $ 1,861,505   
  

 

 

   

 

 

 

LIABILITIES AND STOCKHOLDERS’ INVESTMENT

    

Current liabilities:

    

Accounts payable

   $ 86,646      $ 98,847   

Wages and amounts withheld from employees

     54,629        69,798   

Taxes, other than income taxes

     9,307        7,612   

Accrued income taxes

     14,357        9,954   

Other current liabilities

     40,815        54,406   

Current maturities on long-term debt

     61,264        61,264   
  

 

 

   

 

 

 

Total current liabilities

     267,018        301,881   

Long-term obligations, less current maturities

     254,944        331,914   

Other liabilities

     76,404        71,518   
  

 

 

   

 

 

 

Total liabilities

     598,366        705,313   

Stockholders’ investment:

    

Common stock:

    

Class A nonvoting common stock—Issued 51,261,487 and 51,261,487 shares, respectively and outstanding 47,630,926 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

     313,008        307,527   

Income retained in the business

     732,290        789,100   

Treasury stock—3,320,561 and 1,667,235 shares, respectively of Class A nonvoting common stock, at cost

     (92,600     (50,017

Accumulated other comprehensive income

     59,411        113,898   

Other

     (3,304     (4,864
  

 

 

   

 

 

 

Total stockholders’ investment

     1,009,353        1,156,192   
  

 

 

   

 

 

 

Total

   $ 1,607,719      $ 1,861,505   
  

 

 

   

 

 

 


BRADY CORPORATION AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(Dollars in Thousands)

 

    

(Unaudited)

Twelve Months Ended

July 31,

 
     2012     2011  

Operating activities:

    

Net (loss) income

   $ (17,911   $ 108,652   

Adjustments to reconcile net income to net cash provided by operating activities:

    

Depreciation and amortization

     43,987        48,827   

Non-cash portion of restructuring charges

     458        2,155   

Non-cash portion of stock-based compensation expense

     9,735        9,830   

Impairment charge

     115,688        —     

Loss (gain) on divestiture of business

     204        (4,394

Deferred income taxes

     (9,679     (8,161

Changes in operating assets and liabilities
(net of effects of business acquisitions/divestitures):

    

Accounts receivable

     18,089        7,680   

Inventories

     (7,674     (2,886

Prepaid expenses and other assets

     (2,744     5,624   

Accounts payable and accrued liabilities

     (29,370     (3,365

Income taxes

     23,922        3,388   
  

 

 

   

 

 

 

Net cash provided by operating activities

     144,705        167,350   

Investing activities:

    

Purchases of property, plant and equipment

     (24,147     (20,532

Payments of contingent consideration

     (2,580     (1,528

Settlement of net investment hedges

     (797     (5,542

Acquisition of business, net of cash acquired

     (37,649     (7,970

Divestiture of business, net of cash retained in business

     856        12,980   

Other

     (287     (39
  

 

 

   

 

 

 

Net cash used in investing activities

     (64,604     (22,631

Financing activities:

    

Payment of dividends

     (38,899     (38,064

Proceeds from issuance of common stock

     3,864        8,193   

Purchase of treasury stock

     (49,933     —     

Principal payments on debt

     (62,687     (61,264

Debt issuance costs

     (961     —     

Income tax benefit from the exercise of stock options and deferred compensation distribution, and other

     792        (439
  

 

 

   

 

 

 

Net cash used in financing activities

     (147,824     (91,574

Effect of exchange rate changes on cash

     (16,348     21,986   

Net (decrease) increase in cash and cash equivalents

     (84,071     75,131   

Cash and cash equivalents, beginning of period

     389,971        314,840   
  

 

 

   

 

 

 

Cash and cash equivalents, end of period

   $ 305,900      $ 389,971   
  

 

 

   

 

 

 

Supplemental disclosures:

    

Cash paid during the period for:

    

Interest, net of capitalized interest

   $ 19,194      $ 21,298   

Income taxes, net of refunds

     35,292        35,851   

Acquisitions:

    

Fair value of assets acquired, net of cash

   $ 23,792      $ 4,624   

Liabilities assumed

     (8,987     (1,446

Goodwill

     22,844        4,792   
  

 

 

   

 

 

 

Net cash paid for acquisitions

   $ 37,649      $ 7,970   
  

 

 

   

 

 

 


Information by regional segment for the three and twelve months ended July 31, 2012 and 2011 is as follows:

 

(in thousands)

   Americas     EMEA     Asia-
Pacific
    Total
Region
    Corporate
and
Eliminations
    Total  

SALES TO EXTERNAL CUSTOMERS

            

Three months ended:

            

July 31, 2012

   $ 147,028      $ 98,270      $ 77,250      $ 322,548        —        $ 322,548   

July 31, 2011

   $ 146,212      $ 102,970      $ 93,922      $ 343,104        —        $ 343,104   

July 31, 2010

   $ 148,929      $ 91,020      $ 82,945      $ 322,894        —        $ 322,894   

Twelve months ended:

            

July 31, 2012

   $ 589,925      $ 389,156      $ 345,188      $ 1,324,269        —        $ 1,324,269   

July 31, 2011

   $ 577,428      $ 404,955      $ 357,214      $ 1,339,597        —        $ 1,339,597   

July 31, 2010

   $ 551,185      $ 380,121      $ 327,790      $ 1,259,096        —        $ 1,259,096   

SALES INFORMATION

            

Three months ended July 31, 2012:

            

Base

     3.0     0.6     -14.6     -2.6     —          -2.6

Currency

     -2.4     -10.7     -3.2     -5.0     —          -5.0

Acquisitions/Divestitures

     0.0     5.5     0.0     1.6     —          1.6
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total

     0.6     -4.6     -17.8     -6.0     —          -6.0

Twelve months ended July 31, 2012:

            

Base

     3.4     -1.3     -5.3     -0.4     —          -0.4

Currency

     -0.9     -3.5     1.4     -1.0     —          -1.0

Acquisitions/Divestitures

     -0.3     0.9     0.5     0.3     —          0.3
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total

     2.2     -3.9     -3.4     -1.1     —          -1.1

SEGMENT PROFIT

            

Three months ended:

            

July 31, 2012

   $ 37,743      $ 27,211      $ 4,069      $ 69,023        ($1,318   $ 67,705   

July 31, 2011

   $ 36,850      $ 29,882      $ 11,775      $ 78,507        ($3,655   $ 74,852   

Percentage change

     2.4     -8.9     -65.4     -12.1       -9.5

Twelve months ended:

            

July 31, 2012

   $ 155,657      $ 105,643      $ 31,704      $ 293,004        ($7,328   $ 285,676   

July 31, 2011

   $ 145,516      $ 112,047      $ 50,105      $ 307,668        ($15,742   $ 291,926   

Percentage change

     7.0     -5.7     -36.7     -4.8       -2.1

NET INCOME RECONCILIATION (in thousands)

 

     Three months ended:     Twelve months ended:  
     July 31,
2012
    July 31,
2011
    July 31,
2012
    July 31,
2011
 

Total profit for reportable segments

   $ 69,023      $ 78,507      $ 293,004      $ 307,668   

Corporate and eliminations

     (1,318     (3,655     (7,328     (15,742

Unallocated amounts:

        

Administrative costs

     (32,122     (30,012     (118,120     (120,546

Restructuring charges

     (8,670     (2,202     (12,110     (9,188

Impairment charge

     —          —          (115,688     —     

Investment and other income

     362        1,098        2,082        3,990   

Interest expense

     (4,375     (5,484     (19,090     (22,124
  

 

 

   

 

 

   

 

 

   

 

 

 

Income before income taxes

     22,900        38,252        22,750        144,058   

Income taxes

     (11,241     (8,669     (40,661     (35,406
  

 

 

   

 

 

   

 

 

   

 

 

 

Net income (loss)

   $ 11,659      $ 29,583      $ (17,911   $ 108,652   
  

 

 

   

 

 

   

 

 

   

 

 

 


NON-GAAP MEASURES

(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.

EBITDA:

Brady is presenting EBITDA because it is used by many of our investors and lenders, and is presented as a convenience to them. EBITDA represents net income before interest expense, income taxes, depreciation and amortization and non-cash impairment charges. EBITDA is not a calculation based on generally accepted accounting principles (“GAAP”). The amounts included in the EBITDA calculation, however, are derived from amounts included in the Condensed Consolidated Statements of Income data. EBITDA should not be considered as an alternative to net income or operating income as an indicator of the Company’s operating performance, or as an alternative to operating cash flows as a measure of liquidity. The EBITDA measure presented may not always be comparable to similarly titled measures reported by other companies due to differences in the components of the calculation.

 

     Fiscal 2012  
     Q1      Q2     Q3      Q4      Total  

EBITDA:

             

Net income (loss)

   $ 32,732       $ (89,954   $ 27,652       $ 11,659       $ (17,911

Interest expense

     5,047         4,933        4,735         4,375         19,090   

Income taxes

     11,109         8,635        9,676         11,241         40,661   

Depreciation and amortization

     11,241         10,935        10,745         11,066         43,987   

Impairment charge

     —           115,688        —           —           115,688   
  

 

 

    

 

 

   

 

 

    

 

 

    

 

 

 

EBITDA (non-GAAP measure)

   $ 60,129       $ 50,237      $ 52,808       $ 38,341       $ 201,515   
  

 

 

    

 

 

   

 

 

    

 

 

    

 

 

 

 

     Fiscal 2011  
     Q1      Q2      Q3      Q4      Total  

EBITDA:

              

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   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Diluted Earnings Per Share Excluding Impairment, Restructuring, & Non-Routine Tax Charge:

This is a measure of the Company’s diluted net earnings per share excluding the current year Asia non-cash goodwill impairment charge, current and prior year restructuring charges, and current year non-routine non-cash tax charges related to an internal reorganization. We do not view these items to be part of our sustainable results. We believe this earnings per share measure provides an important perspective of underlying business trends and results and provides a more comparable measure of year-on-year earnings per share growth. The table below provides a reconciliation of diluted net earnings per share to diluted earnings per share excluding the impairment charge, restructuring charges, and non-routine tax charge:

 

     Three Months Ended
July  31,
     Twelve Months Ended
July  31,
 
     2012      2011      2012     2011  

Diluted Earnings (Loss) per Share

   $ 0.22       $ 0.55       $ (0.34   $ 2.04   

Non-Cash Goodwill Impairment

     —           —           2.19        —     

Restructuring Charges

     0.14         0.03         0.18        0.12   

Non-Routine, Non-Cash Tax Charge

     0.11         —           0.11        —     
  

 

 

    

 

 

    

 

 

   

 

 

 

Diluted Earnings per Share Excluding Impairment, Restructuring Charges, & Non-Routine Tax Charge

   $ 0.47       $ 0.58       $ 2.14      $ 2.16   
  

 

 

    

 

 

    

 

 

   

 

 

 

All reconciling items are presented net of tax. Tax effects are calculated consistent with the nature of the underlying transaction. Diluted loss per share and all reconciling items for the twelve months ended July 31, 2012, are presented using total diluted shares of 52,821 for the period.

Net Income Excluding Impairment, Restructuring, & Non-Routine Tax Charge:

This is a measure of the Company’s net income excluding the current year Asia non-cash goodwill impairment charge, current and prior year restructuring charges, and current year non-routine non-cash tax charges related to an internal reorganization. We do not view these items to be part of our sustainable results. We believe this net income measure provides an important perspective of underlying business trends and results and provides a more comparable measure of year-on-year net income growth. The table below provides a reconciliation of net income to net income excluding the impairment charge, restructuring charges, and non-routine tax charge:

 

     Three Months Ended
July 31,
     Twelve Months Ended
July 31,
 
     2012      2011      2012     2011  

Net Income (Loss)

   $ 11,659       $ 29,583       $ (17,911   $ 108,652   

Non-Cash Goodwill Impairment

     —           —           115,688        —     

Restructuring Charges

     7,109         1,563         9,567        6,523   

Non-Routine, Non-Cash Tax Charge

     5,616         —           5,616        —     
  

 

 

    

 

 

    

 

 

   

 

 

 

Net Income Excluding Impairment, Restructuring Charges, & Non-Routine Tax Charge

   $ 24,384       $ 31,146       $ 112,960      $ 115,175   
  

 

 

    

 

 

    

 

 

   

 

 

 

All reconciling items are presented net of tax. Tax effects are calculated consistent with the nature of the underlying transaction.