Wisconsin | 39-0971239 | |
(State of Incorporation) | (IRS Employer Identification No.) |
¨ | 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)) |
Item 2.02 | RESULTS OF OPERATIONS AND FINANCIAL CONDITION |
Item 9.01 | FINANCIAL STATEMENTS AND EXHIBITS |
Exhibit No. | Description of Exhibit |
99.1 | Press Release of Brady Corporation, dated February 20, 2014, relating to second quarter fiscal 2014 financial results. |
99.2 | Informational slides provided by Brady Corporation, dated February 20, 2014, relating to second quarter fiscal 2014 financial results. |
BRADY CORPORATION | ||
Date: February 20, 2014 | /s/ Thomas J. Felmer | |
Thomas J. Felmer | ||
Interim President & Chief Executive Officer and Chief Financial Officer |
EXHIBIT NUMBER | DESCRIPTION |
99.1 | Press Release of Brady Corporation, dated February 20, 2014, relating to second quarter fiscal 2014 financial results. |
99.2 | Informational slides provided by Brady Corporation, dated February 20, 2014, relating to second quarter fiscal 2014 financial results. |
(Unaudited) | (Unaudited) | ||||||||||||||
Three months ended January 31, | Six months ended January 31, | ||||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||||
Net sales | $ | 291,194 | $ | 272,702 | $ | 598,724 | $ | 544,717 | |||||||
Cost of products sold | 148,658 | 130,811 | 298,341 | 252,641 | |||||||||||
Gross margin | 142,536 | 141,891 | 300,383 | 292,076 | |||||||||||
Operating expenses: | |||||||||||||||
Research and development | 8,440 | 8,213 | 17,027 | 16,100 | |||||||||||
Selling, general and administrative | 111,426 | 109,948 | 224,159 | 209,010 | |||||||||||
Restructuring charges | 4,324 | 1,933 | 11,163 | 1,933 | |||||||||||
Total operating expenses | 124,190 | 120,094 | 252,349 | 227,043 | |||||||||||
Operating income | 18,346 | 21,797 | 48,034 | 65,033 | |||||||||||
Other income and (expense): | |||||||||||||||
Investment and other income | 255 | 898 | 1,017 | 1,294 | |||||||||||
Interest expense | (3,676 | ) | (4,406 | ) | (7,397 | ) | (8,569 | ) | |||||||
Earnings from continuing operations before income taxes | 14,925 | 18,289 | 41,654 | 57,758 | |||||||||||
Income tax expense | 4,408 | 28,960 | 13,002 | 42,138 | |||||||||||
Earnings (loss) from continuing operations | $ | 10,517 | $ | (10,671 | ) | $ | 28,652 | $ | 15,620 | ||||||
Earnings from discontinued operations, net of income taxes | 5,907 | 1,987 | 11,701 | 2,884 | |||||||||||
Net earnings (loss) | $ | 16,424 | $ | (8,684 | ) | $ | 40,353 | $ | 18,504 | ||||||
Earnings (loss) from continuing operations per Class A Nonvoting Common Share: | |||||||||||||||
Basic | $ | 0.20 | $ | (0.21 | ) | $ | 0.55 | $ | 0.30 | ||||||
Diluted | $ | 0.20 | $ | (0.21 | ) | $ | 0.55 | $ | 0.30 | ||||||
Earnings (loss) from continuing operations per Class B Voting Common Share: | |||||||||||||||
Basic | $ | 0.20 | $ | (0.21 | ) | $ | 0.53 | $ | 0.29 | ||||||
Diluted | $ | 0.20 | $ | (0.21 | ) | $ | 0.53 | $ | 0.29 | ||||||
Earnings from discontinued operations per Class A Nonvoting Common Share: | |||||||||||||||
Basic | $ | 0.11 | $ | 0.04 | $ | 0.22 | $ | 0.06 | |||||||
Diluted | $ | 0.11 | $ | 0.04 | $ | 0.22 | $ | 0.06 | |||||||
Earnings from discontinued operations per Class B Voting Common Share: | |||||||||||||||
Basic | $ | 0.11 | $ | 0.04 | $ | 0.23 | $ | 0.05 | |||||||
Diluted | $ | 0.11 | $ | 0.04 | $ | 0.22 | $ | 0.05 | |||||||
Net earnings (loss) per Class A Nonvoting Common Share: | |||||||||||||||
Basic | $ | 0.31 | $ | (0.17 | ) | $ | 0.77 | $ | 0.36 | ||||||
Diluted | $ | 0.31 | $ | (0.17 | ) | $ | 0.77 | $ | 0.36 | ||||||
Dividends | $ | 0.195 | $ | 0.19 | $ | 0.39 | $ | 0.38 | |||||||
Net earnings (loss) per Class B Voting Common Share: | |||||||||||||||
Basic | $ | 0.31 | $ | (0.17 | ) | $ | 0.76 | $ | 0.34 | ||||||
Diluted | $ | 0.31 | $ | (0.17 | ) | $ | 0.75 | $ | 0.34 | ||||||
Dividends | $ | 0.195 | $ | 0.19 | $ | 0.373 | $ | 0.36 | |||||||
Weighted average common shares outstanding (in thousands): | |||||||||||||||
Basic | 52,208 | 51,177 | 52,140 | 51,108 | |||||||||||
Diluted | 52,494 | 51,177 | 52,457 | 51,507 |
(Unaudited) | |||||||
January 31, 2014 | July 31, 2013 | ||||||
ASSETS | |||||||
Current assets: | |||||||
Cash and cash equivalents | $ | 79,116 | $ | 91,058 | |||
Accounts receivable—net | 168,037 | 169,261 | |||||
Inventories: | |||||||
Finished products | 68,170 | 64,544 | |||||
Work-in-process | 16,077 | 14,776 | |||||
Raw materials and supplies | 19,869 | 15,387 | |||||
Total inventories | 104,116 | 94,707 | |||||
Assets held for sale | 124,508 | 119,864 | |||||
Prepaid expenses and other current assets | 44,120 | 37,600 | |||||
Total current assets | 519,897 | 512,490 | |||||
Other assets: | |||||||
Goodwill | 615,404 | 617,236 | |||||
Other intangible assets | 146,859 | 156,851 | |||||
Deferred income taxes | 9,449 | 8,623 | |||||
Other | 21,915 | 21,325 | |||||
Property, plant and equipment: | |||||||
Cost: | |||||||
Land | 7,738 | 7,861 | |||||
Buildings and improvements | 92,886 | 91,471 | |||||
Machinery and equipment | 272,128 | 266,787 | |||||
Construction in progress | 15,931 | 11,842 | |||||
388,683 | 377,961 | ||||||
Less accumulated depreciation | 264,167 | 255,803 | |||||
Property, plant and equipment—net | 124,516 | 122,158 | |||||
Total | $ | 1,438,040 | $ | 1,438,683 | |||
LIABILITIES AND STOCKHOLDERS’ INVESTMENT | |||||||
Current liabilities: | |||||||
Notes payable | $ | 23,946 | $ | 50,613 | |||
Accounts payable | 86,918 | 82,519 | |||||
Wages and amounts withheld from employees | 36,386 | 42,413 | |||||
Liabilities held for sale | 31,755 | 34,583 | |||||
Taxes, other than income taxes | 7,028 | 8,243 | |||||
Accrued income taxes | 5,383 | 7,056 | |||||
Other current liabilities | 36,971 | 36,806 | |||||
Current maturities on long-term debt | 61,264 | 61,264 | |||||
Total current liabilities | 289,651 | 323,497 | |||||
Long-term obligations, less current maturities | 203,063 | 201,150 | |||||
Other liabilities | 81,896 | 83,239 | |||||
Total liabilities | 574,610 | 607,886 | |||||
Stockholders’ investment: | |||||||
Class A nonvoting common stock—Issued 51,261,487 and 51,261,487 shares, respectively and outstanding 48,828,416 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 | 313,963 | 306,191 | |||||
Earnings retained in the business | 558,494 | 538,512 | |||||
Treasury stock—2,353,071 and 2,626,276 shares, respectively of Class A nonvoting common stock, at cost | (64,346 | ) | (69,797 | ) | |||
Accumulated other comprehensive income | 54,427 | 56,063 | |||||
Other | 344 | (720 | ) | ||||
Total stockholders’ investment | 863,430 | 830,797 | |||||
Total | $ | 1,438,040 | $ | 1,438,683 |
(Unaudited) | |||||||
Six months ended January 31, | |||||||
2014 | 2013 | ||||||
Operating activities: | |||||||
Net earnings | $ | 40,353 | $ | 18,504 | |||
Adjustments to reconcile net income to net cash provided by operating activities: | |||||||
Depreciation and amortization | 22,342 | 22,046 | |||||
Non-cash portion of stock-based compensation expense | 4,377 | 6,868 | |||||
Non-cash portion of restructuring charges | 97 | 200 | |||||
Loss on sales of businesses | — | 3,138 | |||||
Deferred income taxes | (2,402 | ) | 26,050 | ||||
Changes in operating assets and liabilities (net of effects of business acquisitions/divestitures): | |||||||
Accounts receivable | (1,418 | ) | (5,418 | ) | |||
Inventories | (8,754 | ) | (4,475 | ) | |||
Prepaid expenses and other assets | (3,505 | ) | (2,772 | ) | |||
Accounts payable and accrued liabilities | (7,263 | ) | (13,629 | ) | |||
Income taxes | (2,050 | ) | (6,318 | ) | |||
Net cash provided by operating activities | 41,777 | 44,194 | |||||
Investing activities: | |||||||
Purchases of property, plant and equipment | (17,607 | ) | (15,667 | ) | |||
Acquisition of business, net of cash acquired | — | (300,757 | ) | ||||
Sales of businesses, net of cash retained | — | 10,178 | |||||
Other | 89 | (549 | ) | ||||
Net cash used in investing activities | (17,518 | ) | (306,795 | ) | |||
Financing activities: | |||||||
Payment of dividends | (20,370 | ) | (19,499 | ) | |||
Proceeds from issuance of common stock | 10,894 | 4,409 | |||||
Purchase of treasury stock | — | (5,121 | ) | ||||
Proceeds from borrowing on notes payable | — | 220,000 | |||||
Repayment of borrowing on notes payable | (30,000 | ) | (112,472 | ) | |||
Proceeds from borrowings on line of credit | 3,187 | — | |||||
Income tax on the exercise of stock options and deferred compensation distributions, and other | (984 | ) | 1,273 | ||||
Net cash (used in) provided by financing activities | (37,273 | ) | 88,590 | ||||
Effect of exchange rate changes on cash | 1,072 | 9,422 | |||||
Net decrease in cash and cash equivalents | (11,942 | ) | (164,589 | ) | |||
Cash and cash equivalents, beginning of period | 91,058 | 305,900 | |||||
Cash and cash equivalents, end of period | $ | 79,116 | $ | 141,311 | |||
Supplemental disclosures of cash flow information: | |||||||
Cash paid during the period for: | |||||||
Interest, net of capitalized interest | $ | 7,283 | $ | 7,866 | |||
Income taxes, net of refunds | 14,083 | 19,964 | |||||
Acquisitions: | |||||||
Fair value of assets acquired, net of cash | — | $ | 168,674 | ||||
Liabilities assumed | — | (57,859 | ) | ||||
Goodwill | — | 189,942 | |||||
Net cash paid for acquisitions | — | $ | 300,757 |
Three months ended January 31, | Six months ended January 31, | ||||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||||
SALES TO EXTERNAL CUSTOMERS | |||||||||||||||
ID Solutions | $ | 194,732 | $ | 168,234 | $ | 404,278 | $ | 330,627 | |||||||
Workplace Safety | 96,462 | 104,468 | 194,446 | 214,090 | |||||||||||
Total | $ | 291,194 | $ | 272,702 | $ | 598,724 | $ | 544,717 | |||||||
SALES INFORMATION | |||||||||||||||
ID Solutions | |||||||||||||||
Organic | 2.5 | % | 1.8 | % | 2.9 | % | 1.4 | % | |||||||
Currency | (0.5 | )% | (0.5 | )% | (0.4 | )% | (1.5 | )% | |||||||
Acquisitions | 13.8 | % | 11.1 | % | 19.8 | % | 5.5 | % | |||||||
Total | 15.8 | % | 12.4 | % | 22.3 | % | 5.4 | % | |||||||
Workplace Safety | |||||||||||||||
Organic | (6.8 | )% | (7.0 | )% | (8.4 | )% | (5.1 | )% | |||||||
Currency | (0.9 | )% | 0.4 | % | (0.8 | )% | (1.0 | )% | |||||||
Acquisitions | —% | 5.1 | % | —% | 5.5 | % | |||||||||
Total | (7.7 | )% | (1.5 | )% | (9.2 | )% | (0.6 | )% | |||||||
Total Company | |||||||||||||||
Organic | (1.1 | )% | (1.8 | )% | (1.6 | )% | (1.3 | )% | |||||||
Currency | (0.6 | )% | (0.1 | )% | (0.5 | )% | (1.3 | )% | |||||||
Acquisitions | 8.5 | % | 8.6 | % | 12.0 | % | 5.5 | % | |||||||
Total | 6.8 | % | 6.7 | % | 9.9 | % | 2.9 | % | |||||||
SEGMENT PROFIT | |||||||||||||||
ID Solutions | $ | 37,526 | $ | 34,643 | $ | 88,493 | $ | 79,223 | |||||||
Workplace Safety | 14,668 | 23,600 | 33,042 | 51,429 | |||||||||||
Total | $ | 52,194 | $ | 58,243 | $ | 121,535 | $ | 130,652 | |||||||
SEGMENT PROFIT AS A PERCENT OF SALES | |||||||||||||||
ID Solutions | 19.3 | % | 20.6 | % | 21.9 | % | 24.0 | % | |||||||
Workplace Safety | 15.2 | % | 22.6 | % | 17.0 | % | 24.0 | % | |||||||
Total | 17.9 | % | 21.4 | % | 20.3 | % | 24.0 | % |
Three months ended January 31, | Six months ended January 31, | ||||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||||
Total segment profit | $ | 52,194 | $ | 58,243 | $ | 121,535 | $ | 130,652 | |||||||
Unallocated amounts: | |||||||||||||||
Administrative costs | (29,524 | ) | (34,513 | ) | (62,338 | ) | (63,686 | ) | |||||||
Restructuring charges | (4,324 | ) | (1,933 | ) | (11,163 | ) | (1,933 | ) | |||||||
Investment and other income | 255 | 898 | 1,017 | 1,294 | |||||||||||
Interest expense | (3,676 | ) | (4,406 | ) | (7,397 | ) | (8,569 | ) | |||||||
Earnings from continuing operations before income taxes | $ | 14,925 | $ | 18,289 | $ | 41,654 | $ | 57,758 |
Fiscal 2014 | Fiscal 2013 | |||||||||||||||||||||||||||
Q1 | Q2 | Q2 YTD | Q1 | Q2 | Q2 YTD | Q3 | Q4 | Full Year | ||||||||||||||||||||
SALES TO EXTERNAL CUSTOMERS | ||||||||||||||||||||||||||||
Identification Solutions | $ | 209,546 | $ | 194,732 | $ | 404,278 | $ | 162,393 | $ | 168,234 | $ | 330,627 | $ | 197,417 | $ | 211,071 | $ | 739,115 | ||||||||||
Workplace Safety | 97,984 | 96,462 | 194,446 | 109,622 | 104,468 | 214,090 | 105,066 | 99,521 | 418,677 | |||||||||||||||||||
Total Company | $ | 307,530 | $ | 291,194 | $ | 598,724 | $ | 272,015 | $ | 272,702 | $ | 544,717 | $ | 302,483 | $ | 310,592 | $ | 1,157,792 | ||||||||||
SALES INFORMATION | ||||||||||||||||||||||||||||
Identification Solutions | ||||||||||||||||||||||||||||
Organic | 3.3 | % | 2.5 | % | 2.9 | % | 0.9 | % | 1.8 | % | 1.4 | % | (1.9 | )% | 2.3 | % | 0.8 | % | ||||||||||
Currency | (0.3 | )% | (0.5 | )% | (0.4 | )% | (2.4 | )% | (0.5 | )% | (1.5 | )% | (1.0 | )% | 0.2 | % | (1.0 | )% | ||||||||||
Acquisitions | 26.0 | % | 13.8 | % | 19.8 | % | 0.4 | % | 11.1 | % | 5.5 | % | 25.3 | % | 28.2 | % | 16.3 | % | ||||||||||
Total | 29.0 | % | 15.8 | % | 22.3 | % | (1.1 | )% | 12.4 | % | 5.4 | % | 22.4 | % | 30.7 | % | 16.1 | % | ||||||||||
Workplace Safety | ||||||||||||||||||||||||||||
Organic | (10.0 | )% | (6.8 | )% | (8.4 | )% | (3.3 | )% | (7.0 | )% | (5.1 | )% | (9.0 | )% | (8.6 | )% | (7.0 | )% | ||||||||||
Currency | (0.6 | )% | (0.9 | )% | (0.8 | )% | (2.3 | )% | 0.4 | % | (1.0 | )% | (1.1 | )% | 0.1 | % | (0.7 | )% | ||||||||||
Acquisitions | —% | —% | —% | 5.8 | % | 5.1 | % | 5.5 | % | 5.0 | % | —% | 4.0 | % | ||||||||||||||
Total | (10.6 | )% | (7.7 | )% | (9.2 | )% | 0.2 | % | (1.5 | )% | (0.6 | )% | (5.1 | )% | (8.5 | )% | (3.7 | )% | ||||||||||
Total Company | ||||||||||||||||||||||||||||
Organic | (2.1 | )% | (1.1 | )% | (1.6 | )% | (0.8 | )% | (1.8 | )% | (1.3 | )% | (4.8 | )% | (2.1 | )% | (2.4 | )% | ||||||||||
Currency | (0.4 | )% | (0.6 | )% | (0.5 | )% | (2.4 | )% | (0.1 | )% | (1.3 | )% | (1.0 | )% | 0.1 | % | (0.8 | )% | ||||||||||
Acquisitions | 15.6 | % | 8.5 | % | 12.0 | % | 2.6 | % | 8.6 | % | 5.5 | % | 17.0 | % | 16.9 | % | 11.3 | % | ||||||||||
Total | 13.1 | % | 6.8 | % | 9.9 | % | (0.6 | )% | 6.7 | % | 2.9 | % | 11.2 | % | 14.9 | % | 8.1 | % | ||||||||||
SEGMENT PROFIT | ||||||||||||||||||||||||||||
Identification Solutions | $ | 50,967 | $ | 37,526 | $ | 88,493 | $ | 44,581 | $ | 34,643 | $ | 79,223 | $ | 46,787 | $ | 48,379 | $ | 174,390 | ||||||||||
Workplace Safety | 18,374 | 14,668 | 33,042 | 27,829 | 23,600 | 51,429 | 23,453 | 20,359 | 95,241 | |||||||||||||||||||
Total Company | $ | 69,341 | $ | 52,194 | $ | 121,535 | $ | 72,410 | $ | 58,243 | $ | 130,652 | $ | 70,240 | $ | 68,738 | $ | 269,631 | ||||||||||
SEGMENT PROFIT AS PERCENT OF SALES | ||||||||||||||||||||||||||||
Identification Solutions | 24.3 | % | 19.3 | % | 21.9 | % | 27.5 | % | 20.6 | % | 24.0 | % | 23.7 | % | 22.9 | % | 23.6 | % | ||||||||||
Workplace Safety | 18.8 | % | 15.2 | % | 17.0 | % | 25.4 | % | 22.6 | % | 24.0 | % | 22.3 | % | 20.5 | % | 22.7 | % | ||||||||||
Total Company | 22.5 | % | 17.9 | % | 20.3 | % | 26.6 | % | 21.4 | % | 24.0 | % | 23.2 | % | 22.1 | % | 23.3 | % | ||||||||||
Net Earnings Reconciliation | ||||||||||||||||||||||||||||
Total segment profit | $ | 69,341 | $ | 52,194 | $ | 121,535 | $ | 72,410 | $ | 58,243 | $ | 130,652 | $ | 70,240 | $ | 68,738 | $ | 269,631 | ||||||||||
Unallocated Amounts: | ||||||||||||||||||||||||||||
Administrative costs | (32,813 | ) | (29,524 | ) | (62,338 | ) | (29,173 | ) | (34,513 | ) | (63,686 | ) | (30,764 | ) | (27,242 | ) | (121,692 | ) | ||||||||||
Restructuring charges | (6,839 | ) | (4,324 | ) | (11,163 | ) | — | (1,933 | ) | (1,933 | ) | (8,540 | ) | (15,573 | ) | (26,046 | ) | |||||||||||
Impairment charges | — | — | — | — | — | — | — | (204,448 | ) | (204,448 | ) | |||||||||||||||||
Investment and other income | 761 | 255 | 1,017 | 395 | 898 | 1,294 | 1,132 | 1,098 | 3,523 | |||||||||||||||||||
Interest expense | (3,721 | ) | (3,676 | ) | (7,397 | ) | (4,163 | ) | (4,406 | ) | (8,569 | ) | (4,186 | ) | (3,887 | ) | (16,642 | ) | ||||||||||
Earnings (loss) from continuing operations before income taxes | $ | 26,729 | $ | 14,925 | $ | 41,654 | $ | 39,469 | $ | 18,289 | $ | 57,758 | $ | 27,882 | $ | (181,314 | ) | $ | (95,674 | ) |
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 from Continuing Operations | ||||||||||||||||||||||
Brady is presenting EBITDA from Continuing Operations because it is used by many of our investors and lenders, and is presented as a convenience to them. EBITDA from Continuing Operations represents earnings (loss) from continuing operations before interest expense, income taxes, depreciation, amortization and impairment charges. EBITDA from Continuing Operations is not a calculation based on generally accepted accounting principles ("GAAP"). The amounts included in the EBITDA from Continuing Operations calculation, however, are derived from amounts included in the Consolidated Financial Statements and supporting footnote disclosures. EBITDA from Continuing Operations should not be considered as an alternative to net earnings or operating income as an indicator of the Company's operating performance, or as an alternative to net cash provided by operating activities as a measure of liquidity. The EBITDA from Continuing Operations 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 2014 | ||||||||||||||||||||||
Q1 | Q2 | Q3 | Q4 | Total | ||||||||||||||||||
EBITDA from Continuing Operations: | ||||||||||||||||||||||
Earnings from continuing operations | $ | 18,135 | $ | 10,517 | $ | 28,652 | ||||||||||||||||
Interest expense | 3,721 | 3,676 | 7,397 | |||||||||||||||||||
Income taxes | 8,594 | 4,408 | 13,002 | |||||||||||||||||||
Depreciation and amortization | 10,878 | 11,464 | 22,342 | |||||||||||||||||||
EBITDA from Continuing Operations (non-GAAP measure) | $ | 41,328 | $ | 30,065 | $ | 71,393 | ||||||||||||||||
Fiscal 2013 | ||||||||||||||||||||||
Q1 | Q2 | Q3 | Q4 | Total | ||||||||||||||||||
EBITDA from Continuing Operations: | ||||||||||||||||||||||
Earnings (loss) from continuing operations | $ | 26,291 | $ | (10,671 | ) | $ | 21,680 | $ | (175,557 | ) | $ | (138,257 | ) | |||||||||
Interest expense | 4,163 | 4,406 | 4,186 | 3,886 | 16,641 | |||||||||||||||||
Income taxes | 13,178 | 28,960 | 6,202 | (5,757 | ) | 42,583 | ||||||||||||||||
Depreciation and amortization | 7,401 | 8,773 | 11,650 | 12,103 | 39,927 | |||||||||||||||||
Intangible asset write-down in restructuring charges | — | — | 3,207 | — | 3,207 | |||||||||||||||||
Impairment charges | — | — | — | 204,448 | 204,448 | |||||||||||||||||
EBITDA from Continuing Operations (non-GAAP measure) | $ | 51,033 | $ | 31,468 | $ | 46,925 | $ | 39,123 | $ | 168,549 |
EBITDA from Discontinued Operations | ||||||||||||||||||||||
Brady is presenting EBITDA from Discontinued Operations because it is used by many of our investors and lenders, and is presented as a convenience to them. EBITDA from Discontinued Operations represents earnings (loss) from discontinued operations before interest expense, income taxes, depreciation, amortization, and impairment charges. EBITDA from Discontinued Operations is not a calculation based on generally accepted accounting principles ("GAAP"). The amounts included in the EBITDA from Discontinued Operations calculation, however, are derived from amounts included in the Consolidated Financial Statements and supporting footnote disclosures. EBITDA from Discontinued Operations should not be considered as an alternative to net earnings or operating income as an indicator of the Company's operating performance, or as an alternative to net cash provided by operating activities as a measure of liquidity. The EBITDA from Discontinued Operations 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 2014 | ||||||||||||||||||||||
Q1 | Q2 | Q3 | Q4 | Total | ||||||||||||||||||
EBITDA from Discontinued Operations: | ||||||||||||||||||||||
Earnings from discontinued operations | $ | 5,794 | $ | 5,907 | $ | 11,701 | ||||||||||||||||
Interest expense | — | — | — | |||||||||||||||||||
Income taxes | 2,535 | (1,475 | ) | 1,060 | ||||||||||||||||||
Depreciation and amortization | — | — | — | |||||||||||||||||||
EBITDA from Discontinued Operations (non-GAAP measure) | $ | 8,329 | $ | 4,432 | $ | 12,761 | ||||||||||||||||
Fiscal 2013 | ||||||||||||||||||||||
Q1 | Q2 | Q3 | Q4 | Total | ||||||||||||||||||
EBITDA from Discontinued Operations: | ||||||||||||||||||||||
Earnings (loss) from discontinued operations | $ | 897 | $ | 1,987 | $ | (17,447 | ) | $ | (1,714 | ) | $ | (16,277 | ) | |||||||||
Interest expense | — | — | — | — | — | |||||||||||||||||
Income taxes | 303 | 1,666 | 1,393 | 1,340 | 4,702 | |||||||||||||||||
Depreciation and amortization | 2,991 | 2,881 | 2,926 | — | 8,798 | |||||||||||||||||
Loss on write-down of assets held for sale | — | — | 15,658 | — | 15,658 | |||||||||||||||||
EBITDA from Discontinued Operations (non-GAAP measure) | $ | 4,191 | $ | 6,534 | $ | 2,530 | $ | (374 | ) | $ | 12,881 |
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 earnings (loss) before interest expense, income taxes, depreciation, amortization and 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 Consolidated Financial Statements and supporting footnote disclosures. EBITDA should not be considered as an alternative to net earnings or operating income as an indicator of the Company's operating performance, or as an alternative to net cash provided by operating activities 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 2014 | ||||||||||||||||||||||
Q1 | Q2 | Q3 | Q4 | Total | ||||||||||||||||||
EBITDA: | ||||||||||||||||||||||
Net earnings | $ | 23,929 | $ | 16,424 | $ | 40,353 | ||||||||||||||||
Interest expense | 3,721 | 3,676 | 7,397 | |||||||||||||||||||
Income taxes | 11,129 | 2,933 | 14,062 | |||||||||||||||||||
Depreciation and amortization | 10,878 | 11,464 | 22,342 | |||||||||||||||||||
EBITDA (non-GAAP measure) | $ | 49,657 | $ | 34,497 | $ | 84,154 | ||||||||||||||||
Fiscal 2013 | ||||||||||||||||||||||
Q1 | Q2 | Q3 | Q4 | Total | ||||||||||||||||||
EBITDA: | ||||||||||||||||||||||
Net earnings (loss) | $ | 27,188 | $ | (8,684 | ) | $ | 4,233 | $ | (177,271 | ) | $ | (154,534 | ) | |||||||||
Interest expense | 4,163 | 4,406 | 4,186 | 3,886 | 16,641 | |||||||||||||||||
Income taxes | 13,481 | 30,626 | 7,595 | (4,417 | ) | 47,285 | ||||||||||||||||
Depreciation and amortization | 10,392 | 11,654 | 14,576 | 12,103 | 48,725 | |||||||||||||||||
Intangible asset write-down in restructuring charges | — | — | 3,207 | — | 3,207 | |||||||||||||||||
Loss on write-down of assets held for sale | — | — | 15,658 | — | 15,658 | |||||||||||||||||
Impairment charges | — | — | — | 204,448 | 204,448 | |||||||||||||||||
EBITDA (non-GAAP measure) | $ | 55,224 | $ | 38,002 | $ | 49,455 | $ | 38,749 | $ | 181,430 |
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 January 31, | Six Months Ended January 31, | |||||||||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||||||
Earnings from Continuing Operations Before Income Taxes (GAAP Measure) | $ | 14,925 | $ | 18,289 | $ | 41,654 | $ | 57,758 | ||||||||||
Cost of goods sold: | ||||||||||||||||||
Purchase accounting expense related to inventory | — | 1,530 | — | 1,530 | ||||||||||||||
Selling, general and administrative: | ||||||||||||||||||
PDC acquisition-related expenses | — | 3,600 | — | 3,600 | ||||||||||||||
Restructuring charges | 4,324 | 1,933 | 11,163 | 1,933 | ||||||||||||||
Non-cash income tax charges related to PDC funding | — | — | — | — | ||||||||||||||
Earnings from Continuing Operations Before Income Taxes Excluding Certain Items (non-GAAP measure) | $ | 19,249 | $ | 25,352 | $ | 52,817 | $ | 64,821 |
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 January 31, | Six Months Ended January 31, | ||||||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||||||
Income Taxes on Continuing Operations (GAAP measure) | $ | 4,408 | $ | 28,960 | $ | 13,002 | $ | 42,138 | |||||||||
Cost of goods sold: | |||||||||||||||||
Purchase accounting expense related to inventory | — | 581 | — | 581 | |||||||||||||
Selling, general and administrative: | |||||||||||||||||
PDC acquisition-related expenses | — | 641 | — | 641 | |||||||||||||
Restructuring charges | 1,481 | 617 | 3,611 | 617 | |||||||||||||
Non-cash income tax charges related to PDC funding | — | (25,000 | ) | — | (25,000 | ) | |||||||||||
Income Taxes on Continuing Operations Excluding Certain Items (non-GAAP measure) | $ | 5,889 | $ | 5,799 | $ | 16,613 | $ | 18,977 |
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 January 31, | Six Months Ended January 31, | |||||||||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||||||
Net Earnings (Loss) from Continuing Operations (GAAP measure) | $ | 10,517 | $ | (10,671 | ) | $ | 28,652 | $ | 15,620 | |||||||||
Cost of goods sold: | ||||||||||||||||||
Purchase accounting expense related to inventory | — | 949 | — | 949 | ||||||||||||||
Selling, general and administrative: | ||||||||||||||||||
PDC acquisition-related expenses | — | 2,959 | — | 2,959 | ||||||||||||||
Restructuring charges | 2,843 | 1,316 | 7,552 | 1,316 | ||||||||||||||
Non-cash income tax charges related to PDC funding | — | 25,000 | — | 25,000 | ||||||||||||||
Net Earnings from Continuing Operations Excluding Certain Items (non-GAAP measure) | $ | 13,360 | $ | 19,553 | $ | 36,204 | $ | 45,844 |
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 January 31, | Six Months Ended January 31, | ||||||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||||||
Net Earnings (Loss) from Continuing Operations Per Diluted Class A Nonvoting Common Share (GAAP measure) | $ | 0.20 | $ | (0.21 | ) | $ | 0.55 | $ | 0.30 | ||||||||
Cost of goods sold: | |||||||||||||||||
Purchase accounting expense related to inventory | — | 0.02 | — | 0.02 | |||||||||||||
Selling, general and administrative: | |||||||||||||||||
PDC acquisition-related expenses | — | 0.06 | — | 0.06 | |||||||||||||
Restructuring charges | 0.05 | 0.03 | 0.14 | 0.03 | |||||||||||||
Non-cash income tax charges related to PDC funding | — | 0.49 | — | 0.49 | |||||||||||||
Net Earnings from Continuing Operations Excluding Certain Items Per Diluted Class A Nonvoting Common Share (non-GAAP measure) | $ | 0.25 | $ | 0.38 | $ | 0.69 | $ | 0.89 |