Attached files
| file | filename |
|---|---|
| 8-K - 8-K - BRADY CORP | form8-kxearningsrelease430.htm |
| EX-99.2 - THIRD QUARTER FISCAL 2014 INFORMATIONAL SLIDES - BRADY CORP | f14q3conferencecallprese.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 2014 Third Quarter Results
• | Third quarter organic revenue growth was 2.5 percent. |
• | GAAP earnings from continuing operations per diluted Class A Nonvoting Common Share were $0.39 in the third quarter of fiscal 2014 compared to $0.42 in the same quarter of the prior year. Non-GAAP earnings from continuing operations per diluted Class A Nonvoting Common Share* were $0.43 during the third quarter ended April 30, 2014 compared to $0.55 in the same quarter of the prior year. |
• | Brady repurchased approximately 893,000 shares in the third quarter for a total of $23.3 million. |
• | On May 1, 2014, Brady received $53 million of cash in connection with the completion of the first phase of the divestiture of the die-cut business. |
MILWAUKEE (May 22, 2014)--Brady Corporation (NYSE: BRC) (“Brady” or “Company”), a world leader in identification solutions, today reported its financial results for the fiscal 2014 third quarter ended April 30, 2014.
Quarter Ended April 30, 2014 Financial Results:
Sales from continuing operations for the quarter ended April 30, 2014 increased 2.3 percent to $309.6 million compared to the third quarter of fiscal 2013. Total organic sales increased 2.5 percent.
Net earnings from continuing operations for the quarter ended April 30, 2014 were $20.2 million compared to $21.7 million in the same quarter last year. The income tax rate on continuing operations in the third quarter of fiscal 2014 was approximately 16.8 percent compared to 22.4 percent in the third quarter of fiscal 2013. Non-GAAP net earnings from continuing operations* for the fiscal 2014 third quarter ended April 30, 2014, were $22.3 million compared to $28.5 million in the same quarter last year.
Net earnings from continuing operations per Class A Nonvoting Common Share were $0.39 for the third quarter ended April 30, 2014 compared to $0.42 in the same quarter last year. Non-GAAP earnings from continuing operations per diluted Class A Nonvoting Common Share* were $0.43 in the third quarter of fiscal 2014 and $0.55 per share in the third quarter of fiscal 2013.
Nine-Month Period Ended April 30, 2014 Financial Results:
Sales from continuing operations for the nine-month period ended April 30, 2014 were up 7.2 percent to $908.3 million. Organic sales were down 0.1 percent. By segment, organic sales were up 3.6 percent in Identification Solutions and down 6.3 percent in Workplace Safety.
Net earnings from continuing operations for the nine-month period ended April 30, 2014, were $48.8 million compared to $37.3 million in the same nine-month period last year. Non-GAAP net earnings from continuing operations* for the nine-month period ended April 30, 2014, were $58.5 million compared to $74.7 million in the same nine-month period last year.
Net earnings from continuing operations per Class A Nonvoting Common Share were $0.93 for the nine-month period ended April 30, 2014 compared to $0.72 in the same nine-month period last year. Non-GAAP earnings from continuing operations per diluted Class A Nonvoting Common Share* were $1.12 in the nine-month period ended April 30, 2014 and $1.44 per share in the same period of the previous fiscal year.
Commentary and Guidance:
“We were encouraged by our revenue growth in the third quarter. We believe that our investments to drive organic growth are paying off as organic sales grew 2.5 percent this quarter. Organic sales were up 4.8 percent in Identification Solutions and down 1.9 percent in Workplace Safety this quarter. This 1.9 percent decline in our Workplace Safety business is a much smaller rate of decline compared to previous quarters as we continue to add new customers, increase revenues over the internet and have recently returned our catalog advertising to historical levels,” said Brady’s Chief Financial Officer and Interim President and Chief Executive Officer, Thomas J. Felmer. “Our strong balance sheet enabled us to repurchase approximately 893,000 shares of Brady’s stock at an average price of $26.14 per share during the quarter ended April 30, 2014 and on May 1, 2014, we received $53 million of cash as we completed the first phase of our Die-Cut divestiture, closing on the sale of businesses in Germany, Thailand, Korea and Malaysia.”
Felmer continued, “We anticipate low single-digit organic sales growth from continuing operations in the fourth quarter of fiscal 2014 and we expect net earnings from continuing operations per diluted Class A Nonvoting Common Share to range from $0.45 to $0.55, exclusive of restructuring charges and certain other items.”
A webcast regarding Brady’s fiscal 2014 third 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, signs, safety devices, printing systems and software, and precision die-cut materials. Founded in 1914, the company has a diverse customer base 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, 2013, employed approximately 7,400 people in its worldwide businesses. Brady’s fiscal 2013 sales were approximately $1.15 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.
* See accompanying notes for non-GAAP measures.
###
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” 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: Implementation of the Workplace Safety strategy; 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, hard disk drive, manufacturing, electrical, construction, laboratory, education, governmental, public utility, computer, healthcare and transportation; future competition; changes in the supply of, or price for, parts and components; increased price pressure from suppliers and customers; Brady's ability to retain significant contracts and customers; fluctuations in currency rates versus the U.S. dollar; risks associated with international operations; difficulties associated with exports; risks associated with obtaining governmental approvals and maintaining regulatory compliance; Brady's ability to develop and successfully market new products; risks associated with identifying, completing, and integrating acquisitions; risks associated with divestitures and businesses held for sale; risks associated with restructuring plans; environmental, health and safety compliance costs and liabilities; risk associated with loss of key talent; risk associated with product liability claims; technology changes and potential security violations to the Company's information technology systems; Brady's ability to maintain compliance with its debt covenants; increase in our level of debt; potential write-offs of Brady's substantial intangible assets; unforeseen tax consequences; risk, associated with our ownership structure; 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 within Item 1A of Part I of Brady’s Form 10-K for the year ended July 31, 2013.
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 EARNINGS
(Dollars in thousands, except per share data)
(Unaudited) | (Unaudited) | ||||||||||||||
Three months ended April 30, | Nine months ended April 30, | ||||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||||
Net sales | $ | 309,577 | $ | 302,483 | $ | 908,301 | $ | 847,200 | |||||||
Cost of products sold | 154,457 | 143,082 | 452,797 | 395,723 | |||||||||||
Gross margin | 155,120 | 159,401 | 455,504 | 451,477 | |||||||||||
Operating expenses: | |||||||||||||||
Research and development | 8,648 | 8,062 | 25,675 | 24,162 | |||||||||||
Selling, general and administrative | 116,666 | 111,864 | 340,825 | 320,874 | |||||||||||
Restructuring charges | 3,039 | 8,540 | 14,202 | 10,473 | |||||||||||
Total operating expenses | 128,353 | 128,466 | 380,702 | 355,509 | |||||||||||
Operating income | 26,767 | 30,935 | 74,802 | 95,968 | |||||||||||
Other income and (expense): | |||||||||||||||
Investment and other income | 872 | 1,133 | 1,887 | 2,427 | |||||||||||
Interest expense | (3,381 | ) | (4,186 | ) | (10,777 | ) | (12,755 | ) | |||||||
Earnings from continuing operations before income taxes | 24,258 | 27,882 | 65,912 | 85,640 | |||||||||||
Income tax expense | 4,074 | 6,202 | 17,077 | 48,340 | |||||||||||
Earnings from continuing operations | $ | 20,184 | $ | 21,680 | $ | 48,835 | $ | 37,300 | |||||||
Earnings (loss) from discontinued operations, net of income taxes | 3,904 | (17,447 | ) | 15,606 | (14,564 | ) | |||||||||
Net earnings | $ | 24,088 | $ | 4,233 | $ | 64,441 | $ | 22,736 | |||||||
Earnings from continuing operations per Class A Nonvoting Common Share: | |||||||||||||||
Basic | $ | 0.39 | $ | 0.42 | $ | 0.94 | $ | 0.72 | |||||||
Diluted | $ | 0.39 | $ | 0.42 | $ | 0.93 | $ | 0.72 | |||||||
Earnings from continuing operations per Class B Voting Common Share: | |||||||||||||||
Basic | $ | 0.39 | $ | 0.42 | $ | 0.92 | $ | 0.71 | |||||||
Diluted | $ | 0.39 | $ | 0.42 | $ | 0.92 | $ | 0.70 | |||||||
Earnings (loss) from discontinued operations per Class A Nonvoting Common Share: | |||||||||||||||
Basic | $ | 0.07 | $ | (0.34 | ) | $ | 0.30 | $ | (0.28 | ) | |||||
Diluted | $ | 0.07 | $ | (0.34 | ) | $ | 0.30 | $ | (0.28 | ) | |||||
Earnings (loss) from discontinued operations per Class B Voting Common Share: | |||||||||||||||
Basic | $ | 0.07 | $ | (0.34 | ) | $ | 0.30 | $ | (0.29 | ) | |||||
Diluted | $ | 0.07 | $ | (0.34 | ) | $ | 0.29 | $ | (0.28 | ) | |||||
Net earnings per Class A Nonvoting Common Share: | |||||||||||||||
Basic | $ | 0.46 | $ | 0.08 | $ | 1.24 | $ | 0.44 | |||||||
Diluted | $ | 0.46 | $ | 0.08 | $ | 1.23 | $ | 0.44 | |||||||
Dividends | $ | 0.195 | $ | 0.19 | $ | 0.585 | $ | 0.57 | |||||||
Net earnings per Class B Voting Common Share: | |||||||||||||||
Basic | $ | 0.46 | $ | 0.08 | $ | 1.22 | $ | 0.42 | |||||||
Diluted | $ | 0.46 | $ | 0.08 | $ | 1.21 | $ | 0.42 | |||||||
Dividends | $ | 0.195 | $ | 0.19 | $ | 0.568 | $ | 0.553 | |||||||
Weighted average common shares outstanding (in thousands): | |||||||||||||||
Basic | 51,933 | 51,415 | 52,071 | 51,210 | |||||||||||
Diluted | 52,000 | 52,041 | 52,304 | 51,685 | |||||||||||
BRADY CORPORATION AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
(Dollars in thousands)
(Unaudited) | |||||||
April 30, 2014 | July 31, 2013 | ||||||
ASSETS | |||||||
Current assets: | |||||||
Cash and cash equivalents | $ | 78,715 | $ | 91,058 | |||
Accounts receivable—net | 178,197 | 169,261 | |||||
Inventories: | |||||||
Finished products | 71,397 | 64,544 | |||||
Work-in-process | 17,099 | 14,776 | |||||
Raw materials and supplies | 20,873 | 15,387 | |||||
Total inventories | 109,369 | 94,707 | |||||
Assets held for sale | 109,540 | 119,864 | |||||
Prepaid expenses and other current assets | 46,661 | 37,600 | |||||
Total current assets | 522,482 | 512,490 | |||||
Other assets: | |||||||
Goodwill | 620,998 | 617,236 | |||||
Other intangible assets | 142,846 | 156,851 | |||||
Deferred income taxes | 12,361 | 8,623 | |||||
Other | 22,760 | 21,325 | |||||
Property, plant and equipment: | |||||||
Cost: | |||||||
Land | 7,917 | 7,861 | |||||
Buildings and improvements | 97,600 | 91,471 | |||||
Machinery and equipment | 284,905 | 266,787 | |||||
Construction in progress | 11,595 | 11,842 | |||||
402,017 | 377,961 | ||||||
Less accumulated depreciation | 271,790 | 255,803 | |||||
Property, plant and equipment—net | 130,227 | 122,158 | |||||
Total | $ | 1,451,674 | $ | 1,438,683 | |||
LIABILITIES AND STOCKHOLDERS’ INVESTMENT | |||||||
Current liabilities: | |||||||
Notes payable | $ | 75,552 | $ | 50,613 | |||
Accounts payable | 87,528 | 82,519 | |||||
Wages and amounts withheld from employees | 44,742 | 42,413 | |||||
Liabilities held for sale | 24,536 | 34,583 | |||||
Taxes, other than income taxes | 8,409 | 8,243 | |||||
Accrued income taxes | 10,808 | 7,056 | |||||
Other current liabilities | 31,628 | 36,806 | |||||
Current maturities on long-term debt | 61,264 | 61,264 | |||||
Total current liabilities | 344,467 | 323,497 | |||||
Long-term obligations, less current maturities | 162,468 | 201,150 | |||||
Other liabilities | 80,742 | 83,239 | |||||
Total liabilities | 587,677 | 607,886 | |||||
Stockholders’ investment: | |||||||
Class A nonvoting common stock—Issued 51,261,487 and 51,261,487 shares, respectively and outstanding 47,935,602 and 48,408,544 shares, respectively | 513 | 513 | |||||
Class B voting common stock—Issued and outstanding, 3,538,628 shares | 35 | 35 | |||||
Additional paid-in capital | 314,625 | 306,191 | |||||
Earnings retained in the business | 572,474 | 538,512 | |||||
Treasury stock—3,245,885 and 2,626,276 shares, respectively of Class A nonvoting common stock, at cost | (87,682 | ) | (69,797 | ) | |||
Accumulated other comprehensive income | 63,687 | 56,063 | |||||
Other | 345 | (720 | ) | ||||
Total stockholders’ investment | 863,997 | 830,797 | |||||
Total | $ | 1,451,674 | $ | 1,438,683 | |||
BRADY CORPORATION AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
(Dollars in thousands)
(Unaudited) | |||||||
Nine months ended April 30, | |||||||
2014 | 2013 | ||||||
Operating activities: | |||||||
Net earnings | $ | 64,441 | $ | 22,736 | |||
Adjustments to reconcile net income to net cash provided by operating activities: | |||||||
Depreciation and amortization | 33,782 | 36,037 | |||||
Non-cash portion of stock-based compensation expense | 5,033 | 6,964 | |||||
Non-cash portion of restructuring charges | 267 | 3,701 | |||||
Loss on write-down of assets held for sale | — | 15,658 | |||||
Loss on sales of businesses | — | 3,138 | |||||
Deferred income taxes | (8,310 | ) | 33,780 | ||||
Changes in operating assets and liabilities (net of effects of business acquisitions/divestitures): | |||||||
Accounts receivable | 2,949 | (6,410 | ) | ||||
Inventories | (9,435 | ) | (91 | ) | |||
Prepaid expenses and other assets | (2,772 | ) | 541 | ||||
Accounts payable and accrued liabilities | (13,027 | ) | (22,226 | ) | |||
Income taxes | 2,912 | (4,198 | ) | ||||
Net cash provided by operating activities | 75,840 | 89,630 | |||||
Investing activities: | |||||||
Purchases of property, plant and equipment | (29,808 | ) | (26,082 | ) | |||
Acquisition of business, net of cash acquired | — | (301,157 | ) | ||||
Sales of businesses, net of cash retained | — | 10,178 | |||||
Other | (647 | ) | (1,245 | ) | |||
Net cash used in investing activities | (30,455 | ) | (318,306 | ) | |||
Financing activities: | |||||||
Payment of dividends | (30,479 | ) | (29,344 | ) | |||
Proceeds from issuance of common stock | 10,894 | 10,246 | |||||
Purchase of treasury stock | (23,335 | ) | (5,121 | ) | |||
Proceeds from borrowing on notes payable | 63,000 | 220,000 | |||||
Repayment of borrowing on notes payable | (39,000 | ) | (173,000 | ) | |||
Proceeds from borrowings on line of credit | 3,187 | 11,491 | |||||
Repayment of borrowing on line of credit | (2,401 | ) | — | ||||
Principal payments on debt | (42,514 | ) | (42,514 | ) | |||
Income tax on the exercise of stock options and deferred compensation distributions, and other | (978 | ) | 1,794 | ||||
Net cash used in financing activities | (61,626 | ) | (6,448 | ) | |||
Effect of exchange rate changes on cash | 3,898 | 6,258 | |||||
Net decrease in cash and cash equivalents | (12,343 | ) | (228,866 | ) | |||
Cash and cash equivalents, beginning of period | 91,058 | 305,900 | |||||
Cash and cash equivalents, end of period | $ | 78,715 | $ | 77,034 | |||
Supplemental disclosures of cash flow information: | |||||||
Cash paid during the period for: | |||||||
Interest, net of capitalized interest | $ | 11,417 | $ | 13,194 | |||
Income taxes, net of refunds | 18,842 | 26,786 | |||||
Acquisitions: | |||||||
Fair value of assets acquired, net of cash | — | $ | 169,830 | ||||
Liabilities assumed | — | (57,860 | ) | ||||
Goodwill | — | 189,187 | |||||
Net cash paid for acquisitions | — | $ | 301,157 | ||||
BRADY CORPORATION AND SUBSIDIARIES
SEGMENT INFORMATION
(Dollars in thousands)
Three months ended April 30, | Nine months ended April 30, | ||||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||||
SALES TO EXTERNAL CUSTOMERS | |||||||||||||||
ID Solutions | $ | 206,448 | $ | 197,417 | $ | 610,726 | $ | 528,044 | |||||||
Workplace Safety | 103,129 | 105,066 | 297,575 | 319,156 | |||||||||||
Total | $ | 309,577 | $ | 302,483 | $ | 908,301 | $ | 847,200 | |||||||
SALES INFORMATION | |||||||||||||||
ID Solutions | |||||||||||||||
Organic | 4.8 | % | (1.9 | )% | 3.6 | % | 0.3 | % | |||||||
Currency | (0.2 | )% | (1.0 | )% | (0.3 | )% | (1.4 | )% | |||||||
Acquisitions | —% | 25.3 | % | 12.4 | % | 12.2 | % | ||||||||
Total | 4.6 | % | 22.4 | % | 15.7 | % | 11.1 | % | |||||||
Workplace Safety | |||||||||||||||
Organic | (1.9 | )% | (9.0 | )% | (6.3 | )% | (6.4 | )% | |||||||
Currency | 0.1 | % | (1.1 | )% | (0.5 | )% | (1.0 | )% | |||||||
Acquisitions | —% | 5.0 | % | —% | 5.3 | % | |||||||||
Total | (1.8 | )% | (5.1 | )% | (6.8 | )% | (2.1 | )% | |||||||
Total Company | |||||||||||||||
Organic | 2.5 | % | (4.8 | )% | (0.1 | )% | (2.5 | )% | |||||||
Currency | (0.2 | )% | (1.0 | )% | (0.4 | )% | (1.2 | )% | |||||||
Acquisitions | —% | 17.0 | % | 7.7 | % | 9.4 | % | ||||||||
Total | 2.3 | % | 11.2 | % | 7.2 | % | 5.7 | % | |||||||
SEGMENT PROFIT | |||||||||||||||
ID Solutions | $ | 44,302 | $ | 46,787 | $ | 132,795 | $ | 126,011 | |||||||
Workplace Safety | 14,771 | 23,453 | 47,813 | 74,881 | |||||||||||
Total | $ | 59,073 | $ | 70,240 | $ | 180,608 | $ | 200,892 | |||||||
SEGMENT PROFIT AS A PERCENT OF SALES | |||||||||||||||
ID Solutions | 21.5 | % | 23.7 | % | 21.7 | % | 23.9 | % | |||||||
Workplace Safety | 14.3 | % | 22.3 | % | 16.1 | % | 23.5 | % | |||||||
Total | 19.1 | % | 23.2 | % | 19.9 | % | 23.7 | % | |||||||
Three Months Ended April 30, | Nine Months Ended April 30, | ||||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||||
Total segment profit | $ | 59,073 | $ | 70,240 | $ | 180,608 | $ | 200,892 | |||||||
Unallocated amounts: | |||||||||||||||
Administrative costs | (29,267 | ) | (30,765 | ) | (91,604 | ) | (94,451 | ) | |||||||
Restructuring charges | (3,039 | ) | (8,540 | ) | (14,202 | ) | (10,473 | ) | |||||||
Investment and other income | 872 | 1,133 | 1,887 | 2,427 | |||||||||||
Interest expense | (3,381 | ) | (4,186 | ) | (10,777 | ) | (12,755 | ) | |||||||
Earnings from continuing operations before income taxes | $ | 24,258 | $ | 27,882 | $ | 65,912 | $ | 85,640 | |||||||
GAAP TO 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. | ||||||||||||
Earnings from Continuing Operations Before Income Taxes Excluding Certain Items: | ||||||||||||||||||
Brady is presenting the Non-GAAP measure "Earnings from Continuing Operations 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 sustainable 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 Earnings from Continuing Operations Before Income Taxes to Earnings from Continuing Operations Before Income Taxes Excluding Certain Items: | ||||||||||||||||||
Three Months Ended April 30, | Nine Months Ended April 30, | |||||||||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||||||
Earnings from Continuing Operations Before Income Taxes (GAAP Measure) | $ | 24,258 | $ | 27,882 | $ | 65,912 | $ | 85,640 | ||||||||||
Cost of goods sold: | ||||||||||||||||||
Purchase accounting expense related to inventory | — | — | — | 1,530 | ||||||||||||||
Selling, general and administrative: | ||||||||||||||||||
PDC acquisition-related expenses | — | — | — | 3,600 | ||||||||||||||
Restructuring charges | 3,039 | 8,540 | 14,202 | 10,473 | ||||||||||||||
Non-cash income tax charges related to PDC funding | — | — | — | — | ||||||||||||||
Earnings from Continuing Operations Before Income Taxes Excluding Certain Items (non-GAAP measure) | $ | 27,297 | $ | 36,422 | $ | 80,114 | $ | 101,243 | ||||||||||
Income Taxes on Continuing Operations Excluding Certain Items: | |||||||||||||||||
Brady is presenting the Non-GAAP measure "Income Taxes on Continuing Operations 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 sustainable 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 Income Taxes on Continuing Operations to Income Taxes on Continuing Operations Excluding Certain Items: | |||||||||||||||||
Three Months Ended April 30, | Nine Months Ended April 30, | ||||||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||||||
Income Taxes on Continuing Operations (GAAP measure) | $ | 4,074 | $ | 6,202 | $ | 17,077 | $ | 48,340 | |||||||||
Cost of goods sold: | |||||||||||||||||
Purchase accounting expense related to inventory | — | — | — | 581 | |||||||||||||
Selling, general and administrative: | |||||||||||||||||
PDC acquisition-related expenses | — | — | — | 641 | |||||||||||||
Restructuring charges | 968 | 1,691 | 4,584 | 2,000 | |||||||||||||
Non-cash income tax charges related to PDC funding | — | — | — | (25,000 | ) | ||||||||||||
Income Taxes on Continuing Operations Excluding Certain Items (non-GAAP measure) | $ | 5,042 | $ | 7,893 | $ | 21,661 | $ | 26,562 | |||||||||
GAAP TO NON-GAAP MEASURES
(Dollars in Thousands, Except Per Share Amounts)
Net Earnings from Continuing Operations Excluding Certain Items: | ||||||||||||||||||
Brady is presenting the Non-GAAP measure "Net Earnings from Continuing Operations 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 sustainable 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 Net Earnings from Continuing Operations to Net Earnings from Continuing Operations Excluding Certain Items: | ||||||||||||||||||
Three Months Ended April 30, | Nine Months Ended April 30, | |||||||||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||||||
Net Earnings from Continuing Operations (GAAP measure) | $ | 20,184 | $ | 21,680 | $ | 48,835 | $ | 37,300 | ||||||||||
Cost of goods sold: | ||||||||||||||||||
Purchase accounting expense related to inventory | — | — | — | 949 | ||||||||||||||
Selling, general and administrative: | ||||||||||||||||||
PDC acquisition-related expenses | — | — | — | 2,959 | ||||||||||||||
Restructuring charges | 2,071 | 6,849 | 9,618 | 8,473 | ||||||||||||||
Non-cash income tax charges related to PDC funding | — | — | — | 25,000 | ||||||||||||||
Net Earnings from Continuing Operations Excluding Certain Items (non-GAAP measure) | $ | 22,255 | $ | 28,529 | $ | 58,453 | $ | 74,681 | ||||||||||
Net Earnings from Continuing Operations Per Diluted Class A Nonvoting Common Share Excluding Certain Items: | |||||||||||||||||
Brady is presenting the Non-GAAP measure "Net Earnings from Continuing Operations Per Diluted Class A Nonvoting Common Share 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 sustainable 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 Net Earnings from Continuing Operations Per Diluted Class A Nonvoting Common Share to Net Earnings from Continuing Operations Per Diluted Class A Nonvoting Common Share Excluding Certain Items: | |||||||||||||||||
Three Months Ended April 30, | Nine Months Ended April 30, | ||||||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||||||
Net Earnings from Continuing Operations Per Diluted Class A Nonvoting Common Share (GAAP measure) | $ | 0.39 | $ | 0.42 | $ | 0.93 | $ | 0.72 | |||||||||
Cost of goods sold: | |||||||||||||||||
Purchase accounting expense related to inventory | — | — | — | 0.02 | |||||||||||||
Selling, general and administrative: | |||||||||||||||||
PDC acquisition-related expenses | — | — | — | 0.06 | |||||||||||||
Restructuring charges | 0.04 | 0.13 | 0.18 | 0.16 | |||||||||||||
Non-cash income tax charges related to PDC funding | — | — | — | 0.48 | |||||||||||||
Net Earnings from Continuing Operations Per Diluted Class A Nonvoting Common Share Excluding Certain Items (non-GAAP measure) | $ | 0.43 | $ | 0.55 | $ | 1.12 | $ | 1.44 | |||||||||