Printed Electronics Now Staff06.02.20
Brady reported its financial results for its fiscal 2020 third quarter ended April 30, 2020.
Sales for the quarter ended April 30, 2020 declined 8.2%, which consisted of an organic sales decline of 6% and a decline of 2.2% from foreign currency translation. Sales for the quarter ended April 30, 2020 were $265.9 million compared to $289.7 million in the same quarter last year.
By segment, sales declined 9.7% in Identification Solutions and declined 3.9% in Workplace Safety, which consisted of an organic sales decline of 8.2% in Identification Solutions and organic sales growth of 0.2% in Workplace Safety.
Income before income taxes declined 45.9% to $22.2 million for the quarter ended April 30, 2020, compared to $41 million in the same quarter last year
Net income for the quarter ended April 30, 2020 declined 60.8% to $13.6 million compared to $34.8 million in the same quarter last year.
For the nine-month period ended April 30, 2020, income before income taxes declined 9.8% to $106.1 million for the nine-month period ended April 30, 2020, compared to $117.6 million for the nine-month period ended April 30, 2019.
Sales for the nine-month period ended April 30, 2020 declined 4.1%, which consisted of an organic sales decline of 2.5% and a decline of 1.6% from foreign currency translation. Sales for the nine-month period ended April 30, 2020 were $829.6 million compared to $865.4 million in the same period last year.
By segment, sales declined 4.3% in Identification Solutions and declined 3.6% in Workplace Safety, which consisted of organic sales declines of 3.2% in Identification Solutions and 0.5% in Workplace Safety.
“During these challenging times, as a highly-innovative essential business, Brady is more focused than ever on doing our part to serve the front-line workers and other essential companies with the products and services they need to help fight this global pandemic,” said J. Michael Nauman, Brady’s president and CEO. “Our foremost focus has been on the safety of our employees as well as supporting our customers with the highest level of service that they have come to expect from Brady.
“This quarter, we saw strong demand for our products through the first half of March and then demand declined in late March and April as a result of the challenging macro environment. Demonstrating the strength of Brady, even in this tough environment, we posted cash flow from operating activities well in excess of net income.”
“Brady is financially strong. As of April 30, 2020, we had $238.9 million of cash and less than $50 million of debt, putting Brady in an enviable net cash position of $190 million. This quarter, we generated $42.8 million of cash flow from operating activities. Our strong cash generation and our strong balance sheet allows us to continue to execute our capital allocation strategy, which involves continuing to invest in ROI-positive capital expenditures; to pay a strong dividend; to buyback our shares in an opportunistic manner; and to, of course, continue to invest in innovation, in sales-generating resources, in efficiency actions, and in actions that improve customer service,” said Brady CFO Aaron Pearce.
Sales for the quarter ended April 30, 2020 declined 8.2%, which consisted of an organic sales decline of 6% and a decline of 2.2% from foreign currency translation. Sales for the quarter ended April 30, 2020 were $265.9 million compared to $289.7 million in the same quarter last year.
By segment, sales declined 9.7% in Identification Solutions and declined 3.9% in Workplace Safety, which consisted of an organic sales decline of 8.2% in Identification Solutions and organic sales growth of 0.2% in Workplace Safety.
Income before income taxes declined 45.9% to $22.2 million for the quarter ended April 30, 2020, compared to $41 million in the same quarter last year
Net income for the quarter ended April 30, 2020 declined 60.8% to $13.6 million compared to $34.8 million in the same quarter last year.
For the nine-month period ended April 30, 2020, income before income taxes declined 9.8% to $106.1 million for the nine-month period ended April 30, 2020, compared to $117.6 million for the nine-month period ended April 30, 2019.
Sales for the nine-month period ended April 30, 2020 declined 4.1%, which consisted of an organic sales decline of 2.5% and a decline of 1.6% from foreign currency translation. Sales for the nine-month period ended April 30, 2020 were $829.6 million compared to $865.4 million in the same period last year.
By segment, sales declined 4.3% in Identification Solutions and declined 3.6% in Workplace Safety, which consisted of organic sales declines of 3.2% in Identification Solutions and 0.5% in Workplace Safety.
“During these challenging times, as a highly-innovative essential business, Brady is more focused than ever on doing our part to serve the front-line workers and other essential companies with the products and services they need to help fight this global pandemic,” said J. Michael Nauman, Brady’s president and CEO. “Our foremost focus has been on the safety of our employees as well as supporting our customers with the highest level of service that they have come to expect from Brady.
“This quarter, we saw strong demand for our products through the first half of March and then demand declined in late March and April as a result of the challenging macro environment. Demonstrating the strength of Brady, even in this tough environment, we posted cash flow from operating activities well in excess of net income.”
“Brady is financially strong. As of April 30, 2020, we had $238.9 million of cash and less than $50 million of debt, putting Brady in an enviable net cash position of $190 million. This quarter, we generated $42.8 million of cash flow from operating activities. Our strong cash generation and our strong balance sheet allows us to continue to execute our capital allocation strategy, which involves continuing to invest in ROI-positive capital expenditures; to pay a strong dividend; to buyback our shares in an opportunistic manner; and to, of course, continue to invest in innovation, in sales-generating resources, in efficiency actions, and in actions that improve customer service,” said Brady CFO Aaron Pearce.