Milwaukee, WI - Brady Corporation reported its financial results for the fiscal 2014 first quarter ended October 31, 2013.
Quarter Ended October 31, 2013 Financial Results:
Sales from continuing operations for the quarter ended October 31, 2013 were up 13.0 percent to $306.0 million compared to $270.9 million in the first quarter of fiscal 2013. Organic sales were down 2.2 percent, the acquisition of Precision Dynamics Corporation (“PDC”) added 15.6 percent to sales, and the impact of foreign currency translation decreased sales by 0.4 percent. By segment, organic sales were up 3.0 percent in Identification Solutions and down 10.0 percent in Workplace Safety.
Net earnings for the quarter ended October 31, 2013 were $23.9 million compared to $27.2 million in the same quarter last year. Net earnings from continuing operations for the quarter ended October 31, 2013, were $17.4 million compared to $25.8 million in the same quarter last year. Non-GAAP net earnings from continuing operations* for the fiscal first quarter ended October 31, 2013, were $22.1 million compared to $25.8 million in the same quarter last year.
Net earnings per Class A Nonvoting Common Share were $0.46 for the first quarter ended October 31, 2013 compared to $0.53 in the same quarter last year. Earnings from continuing operations per diluted Class A Nonvoting Common Share were $0.33 for the first quarter of fiscal 2014 compared to $0.50 in the same quarter last year. Non-GAAP earnings from continuing operations per diluted Class A Nonvoting Common Share* were $0.42 in the first quarter of fiscal 2014 and $0.50 per share in the first quarter of fiscal 2013.
Commentary and Guidance:
“We completed the reorganization of our company to focus on two business platforms, Identification Solutions and Workplace Safety that will provide long-term growth for Brady. Although total sales increased 13.0 percent in our first quarter, our Workplace Safety business experienced an organic sales decline of 10.0 percent. In the fourth quarter of last year, we accelerated our investment in our Workplace Safety business to drive organic sales growth and we will be investing another $14 million in fiscal 2014 as we improve our e-commerce capabilities, expand our product offerings and enhance our pricing capabilities. We are starting to see positive signs from this accelerated investment and expect to return to organic sales growth in the second half of the year,” said Brady’s Chief Financial Officer and Interim President and Chief Executive Officer, Thomas J. Felmer. “Our Identification Solutions business remains strong as we see improvements in our Asian and European results and continue to see growth opportunities driven by our new product pipeline and increased focus on industries such as healthcare; food and beverage; chemical, oil and gas; and aerospace and mass transit.”
The Company anticipates organic sales from continuing operations in fiscal 2014 to range from a slight contraction to low single-digit growth, with organic sales down in the first half of the year and returning to growth in the second half of fiscal 2014. Guidance for earnings from continuing operations per diluted Class A Nonvoting Common Share remains unchanged at $1.80 to $2.00, exclusive of restructuring charges. This guidance is based on current exchange rates, a full-year income tax rate in the mid-to-upper 20 percent range, depreciation and amortization of approximately $45 to $50 million, and approximately $30 million of restructuring charges in fiscal 2014, the timing of which is subject to change as we execute our restructuring plan. Our guidance also includes capital expenditures of approximately $40 million in fiscal 2014.
