10-year

10-Year Anniversary Promotion (20% off)

Join GuruFocus Premium Membership Now for Only $279/Year

Once a decade discount

Save up to $500 on Global Membership.

Don't Miss It !

Free 7-day Trial
All Articles and Columns »

Brady Corp. Reports Operating Results (10-Q)

March 08, 2011 | About:
10qk

10qk

18 followers
Brady Corp. (BRC) filed Quarterly Report for the period ended 2011-01-31.

Brady Corp. has a market cap of $1.84 billion; its shares were traded at around $35.04 with a P/E ratio of 17.6 and P/S ratio of 1.5. The dividend yield of Brady Corp. stocks is 2.1%. Brady Corp. had an annual average earning growth of 14.6% over the past 10 years.

Highlight of Business Operations:

Sales for the quarter ended January 31, 2011, were up 11.2% to $329.0 million, compared to $295.8 million in the same period of fiscal 2010. Organic sales increased 9.8% and sales from acquisitions net of divestiture added 1.8%. The increase in sales was partially offset by a 0.4% decrease due to the effects of fluctuations in the exchange rates used to translate financial results into the United States dollar. Net income for the quarter ended January 31, 2011, was $24.2 million or $0.46 per diluted Class A Nonvoting Common Share, up 61.3% from the $15.0 million or $0.28 per diluted Class A Nonvoting Common Share reported in the second quarter of last fiscal year. Net income before restructuring-related expenses, net of tax for the quarter ended January 31, 2011 was $25.7 million, or $0.48 per diluted Class A Nonvoting Common Share, up 46.0% from $17.6 million or $0.33 per diluted Class A Nonvoting Common Share reported in the second quarter of last fiscal year.

Sales for the six months ended January 31, 2011, increased 7.2% to $658.6 million, compared to $614.3 million in the same period of fiscal 2010. Organic sales increased 5.7% and sales from acquisitions net of divestiture added 2.0%. The increase was partially offset by a 0.5% decrease due to the effects of fluctuations in the exchange rates used to translate financial results into the United States dollar. Net income for the six months ended January 31, 2011 was $50.5 million or $0.95 per diluted Class A Nonvoting Common Share, up 37.7% from $36.7 million, or $0.69 per diluted Class A Nonvoting Common Share reported in the same period of the prior fiscal year. Net income before restructuring-related expenses, net of tax for the six months ended January 31, 2011 was $54.6 million or $1.03 per diluted Class A Nonvoting Common Share, up 30.3% from $41.9 million, or $0.79 per diluted Class A Nonvoting Common Share reported in the same period of the prior fiscal year.

Restructuring charges were $2.1 million and $5.8 million for the three and six months ended January 31, 2011, respectively. Restructuring charges were $3.6 million and $7.3 million for the three and six months ended January 31, 2010, respectively. In fiscal 2009, in response to the global recession, the Company took several measures to address its cost structure. The Company continued to incur costs related to the reduction of its workforce and facilities consolidations during the six months ended January 31, 2011. The Company expects to incur $7 to $10 million of restructuring charges in fiscal 2011.

Net income for the three months ended January 31, 2011, increased 61.3% to $24.2 million, compared to $15.0 million for the same quarter of the previous year. Net income as a percentage of sales increased to 7.4% from 5.1% for the quarter ended January 31, 2011, compared to the same period in the prior year, due to the factors noted above. Net income before restructuring-related expenses for the quarter ended January 31, 2011 was $25.7 million, up 46.0% from $17.6 million reported in the second quarter of last fiscal year. For the six months ended January 31, 2011, net income increased 37.7% to $50.5 million, compared to $36.7 million for the same period in the previous year. As a percentage of sales, net income increased to 7.7% from 6.0% for the six months ended January 31, 2011, compared to the same period in the previous year. Net income before restructuring-related expenses for the six months ended January 31, 2011 was $54.6 million, up 30.3% from $41.9 million reported in the same period of the prior fiscal year. The improved earnings was primarily driven by the strong organic growth, which included positive organic growth in all three segments along with the positive impacts of the Companys on-going process improvement activities.

Cash used for acquisitions totaled $8.0 million for the six months ended January 31, 2011 due to the acquisition of ID Warehouse. The Company used $20.3 million for acquisitions of Welco and Stickolor during the six months ended January 31, 2010; the net cash paid for Welco and Stickolor was $1.8 million and $18.5 million, respectively. Cash received from divestiture was $13.0 million during the six months ended January 31, 2011 as a result of the sale of the Teklynx.

Capital expenditures were $9.0 million for the six months ended January 31, 2011, compared to $15.0 million in the same period last year. Capital expenditures were $26.3 million during the twelve months ended July 31, 2010. The Company expects the capital expenditures to be approximately $25.0 million for the twelve months ending July 31, 2011. Net cash used in financing activities was $13.7 million for the six months ended January 31, 2011, due primarily to the payment of dividends, partially offset by the proceeds from the issuance of the common stock related to stock option exercises.

Read the The complete Report

About the author:

10qk
GuruFocus - Stock Picks and Market Insight of Gurus

Rating: 3.1/5 (7 votes)

Comments

Please leave your comment:


Get WordPress Plugins for easy affiliate links on Stock Tickers and Guru Names | Earn affiliate commissions by embedding GuruFocus Charts
GuruFocus Affiliate Program: Earn up to $400 per referral. ( Learn More)
Free 7-day Trial
FEEDBACK