* Earnings per diluted Class A Nonvoting Common Share of $0.30 in the second quarter of fiscal 2016 were up 30.4 percent and 3.4 percent compared to GAAP and non-GAAP earnings from continuing operations per diluted Class A Nonvoting Common Share* of $0.23 and $0.29, respectively, in the same quarter of the prior year.
* Organic revenue growth of 0.4 percent for the quarter ended January 31, 2016.
* Net cash provided by operating activities was $27.9 million during the second quarter of fiscal 2016, compared to $5.3 million in the same quarter of the prior year.
* Returned $10.2 million to shareholders in the form of dividends and $7.2 million through the repurchase of 338,579 shares during the quarter ended January 31, 2016.
* Earnings per diluted Class A Common Share guidance for the full year ending July 31, 2016, increased to a range of $1.20 to $1.35.
Brady Corp., the parent company of Valencia-based PDC Healthcare – a leader in the development of wristband, label, medical records, and imaging systems – reported its financial results Friday for its fiscal 2016 second quarter ended Jan. 31.
Quarter Ended January 31, 2016 Financial Results:
Net earnings for the quarter ended January 31, 2016, were $15.3 million compared to $11.6 million in the same quarter last year. Non-GAAP net earnings* were $15.0 million for the quarter ended January 31, 2015.
Earnings per diluted Class A Nonvoting Common Share were $0.30 for the second quarter ended January 31, 2016, compared to $0.23 in the same quarter last year. Non-GAAP earnings per diluted Class A Nonvoting Common Share* were $0.29 for the quarter ended January 31, 2015.
Sales for the quarter ended January 31, 2016, decreased 5.0 percent to $268.6 million compared to $282.6 million in the second quarter of fiscal 2015. Total organic sales increased 0.4 percent and foreign currency translation decreased sales by 5.4 percent. By segment, organic sales increased 0.7 percent in Identification Solutions and decreased 0.1 percent in Workplace Safety.
Six-Month Period Ended January 31, 2016 Financial Results:
Net earnings for the six-month period ended January 31, 2016, were $34.0 million compared to $25.2 million in the same period last year. Non-GAAP earnings from continuing operations* were $33.5 million for the six-month period ended January 31, 2015.
Earnings per diluted Class A Nonvoting Common Share were $0.67 for the six-month period ended January 31, 2016, compared to earnings from continuing operations per diluted Class A Nonvoting Common Share of $0.53 in the same period in fiscal 2015. Non-GAAP earnings from continuing operations per diluted Class A Nonvoting Common Share* were $0.65 for the six-month period ended January 31, 2015.
Sales for the six-month period ended January 31, 2016, decreased 6.9 percent to $551.7 million compared to $592.9 million in the same period in fiscal 2015. Total organic sales decreased 0.9 percent and the impact of foreign currency translation decreased sales by 6.0 percent. Organic sales decreased 0.9 percent in both the Identification Solutions and Workplace Safety segments.
Share Buyback Program:
On February 16, 2016, Brady’s Board of Directors authorized an increase in the Company’s share buyback program, bringing the amount of the Company’s Class A Common Stock authorized for repurchase up to a total of two million shares, inclusive of the shares in the existing share buyback program. The share buyback plan may be implemented from time to time on the open market or in privately negotiated transactions.
“Our focus on operational efficiency and local accountability resulted in increased organic sales and net earnings in the second quarter. Our GAAP EPS increased 30.4 percent and our Non-GAAP EPS* increased 3.4 percent when compared with the second quarter of last year. We continue making improvements in our customer service metrics while gaining efficiencies throughout the organization,” said Brady’s President and Chief Executive Officer, J. Michael Nauman. “Although organic sales increased in the second quarter, we expect to continue to be challenged by macro-economic conditions in certain industrial markets and geographies, including the U.S., Canada, Brazil, and China, which will continue to work against our efforts to improve results. Our top priorities include growing our pipeline of innovative new products while delivering operational efficiencies, which will position Brady to compete successfully and deliver improved results to our shareholders. These results include our efforts to invest properly in creating complete solutions for our customers’ current and future needs. We are pleased that we have been able to improve our performance while simultaneously driving a longer-term vision.”
“Our focus on driving increased cash flow is apparent in our second quarter financial results where net cash provided by operating activities increased more than 400 percent over the second quarter of last year. Our year-to-date net cash provided by operating activities has more than doubled as we finished with $58.3 million for the six-month period ended January 31, 2016, compared with $23.9 million for the same period last year,” said Brady’s Chief Financial Officer, Aaron Pearce. “In the first six months of this year, we have returned $20.4 million to our shareholders in the form of dividends and we have repurchased 1,146,271 shares for a total of $23.4 million, all while reducing our net debt position by $6.7 million since the start of this fiscal year. We will continue to be diligent in the allocation of our capital with our first priority being to drive organic growth and our remaining priorities to return funds to our shareholders in the form of dividends and to execute share buybacks in an opportunistic manner to ensure that our uses of cash are generating incremental value for our shareholders.”
Fiscal 2016 Guidance:
The Company is increasing its earnings per share guidance for the full year ending July 31, 2016, and currently anticipates earnings per diluted Class A Common Share to range from $1.20 to $1.35. Included in this guidance is a low-single digit decline in organic sales for the full fiscal year, which is reflective of economic challenges in certain industrial markets and geographies. Offsetting the weaker sales outlook are expected efficiency gains in the Company’s manufacturing facilities as well as improvements in selling, general and administrative expenses. This guidance is based upon exchange rates as of January 31, 2016, a full-year income tax rate in the mid-to-upper 20 percent range, depreciation and amortization of approximately $35 million to $38 million, and capital expenditures of approximately $17 million to $20 million.
Brady Corporation is an international manufacturer and marketer of complete solutions that identify and protect people, products and places. Brady’s products help customers increase safety, security, productivity and performance and include high-performance labels, signs, safety devices, printing systems and software. Founded in 1914, the Company has a diverse customer base in electronics, telecommunications, manufacturing, electrical, construction, medical, aerospace and a variety of other industries. Brady is headquartered in Milwaukee, Wisconsin and as of July 31, 2015, employed approximately 6,400 people in its worldwide businesses. Brady’s fiscal 2015 sales were approximately $1.17 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.
SACRAMENTO — State Superintendent of Public Instruction Tony Thurmond announced that the California Department of Education is partnering with Dolly Parton’s Imagination Library, the preeminent early childhood book-gifting program in the world and the flagship program of the Dollywood Foundation.
The California Department of Transportation has scheduled full freeway closures on the northbound and southbound State Rout 14 / Antelope Valley Freeway between Technology Drive in Palmdale and Avenue A in Lancaster.
On Saturday, the Los Angeles County Sheriff's Department celebrated 78 young men and women who completed a 14-week “Scouts of America, Learning for Life,” Certified Sheriff’s Explorer Academy at S.T.A.R.S. Center in Whittier.
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