Financial Data and Key Metrics Changes - Organic sales grew by 9% in Q4 2022, with GAAP earnings per share (EPS) increasing by 53% and non-GAAP EPS rising by 16% [7][23] - Full year GAAP EPS reached a record high of $2.90, while non-GAAP EPS also hit an all-time high of $3.15 [7][29] - Segment profit increased to 13.2% of sales in Q4, showing significant improvement over the first half of the fiscal year [8] Business Line Data and Key Metrics Changes - The Identification Solutions (IDS) segment saw sales increase by 9.6%, with organic sales up 10.8% compared to the previous year [34] - Workplace Safety (WPS) experienced a decline of 5.7% due to foreign currency appreciation, but organic sales grew by 3.3% when excluding currency effects [41] Market Data and Key Metrics Changes - Organic sales in Asia grew approximately 10%, while Europe also saw organic sales increase by about 10% [36] - The Americas experienced organic growth in the upper single digits [36] Company Strategy and Development Direction - The company aims to evolve into a faster-growing entity, enhance automation capabilities for customers, and take pricing actions to mitigate inflation impacts [10][12] - A commitment to return funds to shareholders was demonstrated through share repurchases and a dividend increase, marking the 37th consecutive year of dividend increases [11][12] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving record EPS in fiscal 2023, despite concerns about global economic headwinds [12][31] - The company is well-positioned to adapt to economic uncertainties, with a focus on maintaining strong cash flows and investing in R&D [12][46] Other Important Information - The company reported a net cash position of $19.1 million as of July 31, 2022, despite increased share buybacks and inventory levels [26][28] - R&D investment was $15.8 million in Q4, representing about 4.9% of sales, with a commitment to continue investing in new product development [21] Q&A Session Summary Question: Update on current quarter trends - Management noted that August is typically short due to vacations, making it difficult to provide significant commentary on trends [50] Question: Expectations for price-cost dynamics in fiscal '23 - Management indicated that while Q4 was strong, variability in gross profit margins is expected, and they do not anticipate continued growth at the same level [51] Question: Sustainability of WPS margin growth - Management emphasized the need to balance growth and profitability, noting that while margins improved, growth in the U.S. still lags behind peers [55] Question: Progress on pricing actions - Management stated that they have caught up on pricing for most products, but some raw material costs, particularly in semiconductors, remain challenging [57] Question: Cash flow and inventory management - Management explained that inventory levels are higher than desired due to supply chain issues, but they are looking to reduce inventory as conditions improve [70] Question: Share repurchase authorization status - Management confirmed that there is $85 million remaining from a $100 million share repurchase authorization [72]

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-K ☑ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended July 31, 2022 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission file number 1-14959 BRADY CORPORATION (Exact name of registrant as specified in charter) Wisconsin 39-0178960 (State or other jurisdiction of inco ...

Brady Corporation (NYSE:BRC) Q3 2022 Earnings Conference Call May 26, 2022 10:30 AM ET Company Participants Ann Thornton - CAO Russell Shaller - CEO Aaron Pearce - CFO Conference Call Participants Cashen Keeler - BofA Steve Ferazani - Sidoti Mike McGinn - Wells Fargo Keith Housum - North Coast Research Operator Good day, and thank you for standing by. Welcome to the Brady Corporation Third Quarter 2022 Earnings Conference Call. At this time, all participants are in a listen-only mode. After the speakers pre ...

Financial Performance - Net sales for the three months ended April 30, 2022, increased 14.6% to $338.6 million, compared to $295.5 million in the same period in the prior year[83]. - Net sales for the nine months ended April 30, 2022, increased 16.6% to $978.1 million, compared to $838.6 million in the same period in the prior year[85]. - Operating income increased 13.2% to $52.9 million for the three months ended April 30, 2022, compared to $46.7 million in the same period in the prior year[91]. - Net income for the three months ended April 30, 2022, was $40.1 million, representing 11.8% of net sales, compared to $37.3 million in the same period in the prior year[92]. - Total Company net sales increased by 14.6% to $335.5 million for the three months ended April 30, 2022, compared to $292.3 million in the same period in the prior year, with organic sales growth of 9.0% and acquisitions contributing 8.6%[98]. Segment Performance - The Company's net sales for ID Solutions increased by 21.1% to $264.1 million for the three months ended April 30, 2022, compared to $218.1 million in the same period in the prior year, driven by organic sales growth of 11.8% and acquisitions contributing 11.7%[99]. - Segment profit for ID Solutions increased by 13.5% to $54.0 million for the three months ended April 30, 2022, compared to $47.5 million in the same period in the prior year, but as a percentage of net sales, it decreased to 20.4% from 21.8%[100]. - Workplace Safety net sales decreased by 3.9% to $74.4 million for the three months ended April 30, 2022, with organic sales growth of 0.9% and a decrease from foreign currency translation of 4.8%[102]. - The Company recorded a segment profit of $7.1 million for Workplace Safety for the three months ended April 30, 2022, an increase of 25.7% from $5.7 million in the same period in the prior year, with segment profit as a percentage of net sales increasing to 9.6%[107]. Expenses and Margins - Gross margin for the three months ended April 30, 2022, was $164.0 million, representing 48.4% of net sales, a decrease from 50.4% in the same period in the prior year[86]. - Research and development expenses increased 32.0% to $14.9 million for the three months ended April 30, 2022, compared to $11.3 million in the same period in the prior year[87]. - Selling, general and administrative expenses increased 5.9% to $96.2 million for the three months ended April 30, 2022, compared to $90.8 million in the same period in the prior year[90]. Cash Flow and Liquidity - The company had cash of $103.1 million and a credit facility with $121.3 million available for future borrowing, totaling approximately $424.4 million in available liquidity as of April 30, 2022[78]. - Net cash provided by operating activities was $65.2 million for the nine months ended April 30, 2022, compared to $154.9 million in the same period of the prior year, reflecting higher cash outflows for inventory and increased incentive compensation payments[110]. - The Company believes its cash flow from operating activities and borrowing capacity are sufficient to fund anticipated requirements for working capital and capital expenditures for the next 12 months and beyond[108]. Debt and Financial Health - As of April 30, 2022, the company's debt to EBITDA ratio was 0.31 to 1.0, significantly below the required maximum of 3.5 to 1.0, indicating strong financial health[116]. - The interest expense coverage ratio was 255.5 to 1.0, well above the minimum requirement of 3.0 to 1.0, demonstrating robust earnings relative to interest obligations[116]. - The Company had an outstanding balance of $77.0 million on its revolving loan agreement as of April 30, 2022, with a maximum amount outstanding during the nine months ended April 30, 2022, of $101.0 million[115]. Share Repurchase and Capital Management - The company has a share repurchase program authorized for up to 2 million shares, with 203,664 shares remaining available for purchase as of April 30, 2022[129]. - During the three months ended April 30, 2022, the company repurchased a total of 1,365,580 shares at an average price of $46.29 per share[131]. - On May 24, 2022, the board authorized an increase in the share repurchase program to allow for the repurchase of up to $100 million of Class A Nonvoting Common Stock[130]. Operational Challenges and Controls - The company is currently facing uncertainties including supply chain disruptions and increased costs of raw materials, which could impact future performance[122]. - The company does not have material off-balance sheet arrangements or financial guarantees that could adversely affect liquidity[118]. - There have been no material changes in the company's internal control over financial reporting during the most recently completed fiscal quarter[127]. - The company maintains effective disclosure controls and procedures as evaluated by its management[126].

Brady Corporation (NYSE:BRC) Q2 2022 Earnings Conference Call February 17, 2022 10:30 AM ET Company Participants Ann Thornton - Chief Accounting Officer Michael Nauman - President and CEO Aaron Pearce - CFO Conference Call Participants Michael McGinn - Wells Fargo Steve Ferazani - Sidoti Keith Housum - Northcoast Research Operator Good day and thank you for standing by. Welcome to the Second Quarter 2022 Brady Corporation Earnings Conference Call. At this time, all participants are in a listen-only mode. Af ...

PART I. Financial Information [Financial Statements (Unaudited)](index=3&type=section&id=Item%201.%20Financial%20Statements%20(Unaudited)) Unaudited financial statements for January 31, 2022, show asset and sales growth, but a significant drop in operating cash flow [Condensed Consolidated Balance Sheets](index=3&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) As of January 31, 2022, total assets increased to $1.387 billion, primarily due to higher inventories, with stable equity Condensed Consolidated Balance Sheet Highlights (in thousands) | Account | Jan 31, 2022 (Unaudited) | July 31, 2021 | | :--- | :--- | :--- | | **Total Current Assets** | $500,015 | $465,104 | | Inventories | $167,456 | $136,107 | | **Total Assets** | **$1,387,063** | **$1,377,756** | | **Total Current Liabilities** | $227,496 | $257,584 | | Long-term debt | $83,000 | $38,000 | | **Total Liabilities** | **$420,495** | **$414,728** | | **Total Stockholders' Equity** | **$966,568** | **$963,028** | [Condensed Consolidated Statements of Income](index=4&type=section&id=Condensed%20Consolidated%20Statements%20of%20Income) For the six months ended January 31, 2022, net sales increased 17.8% to $639.5 million, with net income rising to $68.9 million Statement of Income Highlights (in thousands, except per share amounts) | Metric | Three Months Ended Jan 31, 2022 | Three Months Ended Jan 31, 2021 | Six Months Ended Jan 31, 2022 | Six Months Ended Jan 31, 2021 | | :--- | :--- | :--- | :--- | :--- | | **Net Sales** | $318,055 | $265,838 | $639,530 | $543,065 | | **Gross Margin** | $149,362 | $129,522 | $304,350 | $264,950 | | **Operating Income** | $42,872 | $37,412 | $87,207 | $79,600 | | **Net Income** | $33,815 | $30,860 | $68,861 | $64,341 | | **Diluted EPS (Class A)** | $0.65 | $0.59 | $1.32 | $1.23 | [Condensed Consolidated Statements of Comprehensive Income](index=5&type=section&id=Condensed%20Consolidated%20Statements%20of%20Comprehensive%20Income) Comprehensive income for the six months ended January 31, 2022, significantly decreased to $45.9 million due to negative foreign currency translation - Comprehensive income for the six months ended Jan 31, 2022, was **$45.9 million**, down from **$79.4 million** YoY[14](index=14&type=chunk) - The decrease was mainly caused by a **$22.6 million** loss from foreign currency translation adjustments, compared to a **$14.9 million** gain in the prior year[14](index=14&type=chunk) [Condensed Consolidated Statements of Stockholders' Equity](index=6&type=section&id=Condensed%20Consolidated%20Statements%20of%20Stockholders'%20Equity) Total stockholders' equity slightly increased to $966.6 million, driven by net income offset by dividends and share repurchases Changes in Stockholders' Equity (Six months ended Jan 31, 2022, in thousands) | Description | Amount | | :--- | :--- | | Balance at July 31, 2021 | $963,028 | | Net Income | $68,861 | | Other comprehensive loss, net of tax | ($22,986) | | Repurchase of Class A Common Stock | ($21,720) | | Cash dividends on Common Stock | ($23,249) | | **Balance at January 31, 2022** | **$966,568** | [Condensed Consolidated Statements of Cash Flows](index=8&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) Operating cash flow for the six months ended January 31, 2022, sharply declined to $24.3 million, primarily due to increased inventories Net Cash Flow Summary (Six months ended Jan 31, in thousands) | Activity | 2022 | 2021 | | :--- | :--- | :--- | | **Net cash provided by operating activities** | **$24,328** | **$98,889** | | Net cash used in investing activities | ($16,381) | ($16,392) | | Net cash used in financing activities | ($4,505) | ($28,828) | | Effect of exchange rate changes on cash | ($3,370) | $6,276 | | **Net increase in cash and cash equivalents** | **$72** | **$59,945** | - The significant decrease in operating cash flow was primarily due to a **$34.4 million** use of cash for inventories, compared to a **$15.0 million** source of cash in the prior year[27](index=27&type=chunk) [Notes to Condensed Consolidated Financial Statements](index=9&type=section&id=Notes%20to%20Condensed%20Consolidated%20Financial%20Statements) Notes highlight increased inventories, strong ID Solutions sales, declining Workplace Safety sales, and ongoing share repurchases - Inventories increased to **$167.5 million** as of January 31, 2022, up from **$136.1 million** at July 31, 2021, with finished products accounting for the largest portion of the increase[33](index=33&type=chunk) Net Sales by Segment (Six months ended Jan 31, in thousands) | Segment | 2022 | 2021 | | :--- | :--- | :--- | | ID Solutions | $493,603 | $392,419 | | Workplace Safety | $145,927 | $150,646 | | **Total Company** | **$639,530** | **$543,065** | Segment Profit (Six months ended Jan 31, in thousands) | Segment | 2022 | 2021 | | :--- | :--- | :--- | | ID Solutions | $92,945 | $79,279 | | Workplace Safety | $6,808 | $11,451 | | **Total Company** | **$99,753** | **$90,730** | - The company's effective income tax rate for the six months ended January 31, 2022, was **20.6%**, consistent with the prior year[67](index=67&type=chunk)[68](index=68&type=chunk) - Subsequent to the quarter end, the Board declared a quarterly dividend of **$0.225** per share and the company repurchased an additional **181,514** shares for **$9.0 million**[69](index=69&type=chunk)[70](index=70&type=chunk) [Management's Discussion and Analysis of Financial Condition and Results of Operations](index=16&type=section&id=Item%202.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management attributes sales growth to organic and acquisitions, notes gross margin decline from inflation, and highlights segment performance and strong liquidity [Overview and Strategy](index=16&type=section&id=Overview%20and%20Strategy) Key fiscal 2022 initiatives focus on organic growth, acquisitions, digital enhancement, and managing profitability amidst cost inflation - Key fiscal 2022 initiatives include investing in organic growth, acquisitions, customer service, digital presence, and maintaining profitability through pricing actions to counter inflation[74](index=74&type=chunk) - The company is experiencing increased freight and input material cost inflation, which has negatively impacted gross profit margins and is expected to continue in the second half of fiscal 2022[75](index=75&type=chunk) - As of January 31, 2022, the company had total available liquidity of approximately **$462.7 million**, consisting of **$147.4 million** in cash and **$315.3 million** in potential borrowing capacity[76](index=76&type=chunk) [Results of Operations](index=17&type=section&id=Results%20of%20Operations) For the six months ended January 31, 2022, net sales increased 17.8% driven by organic growth and acquisitions, despite gross margin compression Net Sales Growth (Six months ended Jan 31, 2022 vs 2021) | Component | Growth Rate | | :--- | :--- | | Organic Sales Growth | 10.0% | | Acquisitions | 8.5% | | Foreign Currency (Decrease) | (0.7)% | | **Total Net Sales Growth** | **17.8%** | - Gross margin percentage for the six-month period decreased to **47.6%** from **48.8%** YoY, primarily due to increased costs of materials, labor, and freight[84](index=84&type=chunk) - R&D expenses for the six-month period increased by **38.8%** to **$27.9 million**, mainly due to the acquisitions of Code and Nordic ID[85](index=85&type=chunk) - SG&A expenses for the six-month period increased **14.5%** to **$189.3 million**, also primarily due to acquisitions and increased personnel costs[89](index=89&type=chunk) [Business Segment Operating Results](index=20&type=section&id=Business%20Segment%20Operating%20Results) ID Solutions segment sales grew significantly, while Workplace Safety sales declined due to reduced pandemic-related demand - **ID Solutions (IDS):** Six-month net sales increased **25.8%** (**14.6%** organic), driven by recovery from the pandemic and growth in all major product lines and regions. Segment profit margin decreased from **20.2%** to **18.8%** due to cost pressures and acquisition-related amortization[98](index=98&type=chunk)[99](index=99&type=chunk) - **Workplace Safety (WPS):** Six-month net sales decreased **3.1%** (**2.0%** organic decline). This was primarily due to a tough comparison with the prior year, which saw high sales of pandemic-related products. Segment profit margin fell from **7.6%** to **4.7%**[102](index=102&type=chunk)[106](index=106&type=chunk) [Liquidity and Capital Resources](index=21&type=section&id=Liquidity%20and%20Capital%20Resources) The company maintains strong liquidity despite a significant decrease in operating cash flow due to strategic inventory increases - Approximately **93%** of the company's **$147.4 million** in cash and cash equivalents were held outside the United States as of January 31, 2022[107](index=107&type=chunk) - Net cash from operating activities decreased to **$24.3 million** from **$98.9 million** YoY, primarily due to cash outflows for inventory purchases to mitigate supply chain disruption risks[109](index=109&type=chunk) - As of January 31, 2022, the outstanding balance on the revolving loan agreement was **$83.0 million**, with **$115.3 million** available for future borrowing[114](index=114&type=chunk) - The company was in compliance with its financial covenants, with a debt-to-EBITDA ratio of **0.33 to 1.0** (limit of **3.5 to 1.0**)[118](index=118&type=chunk) [Quantitative and Qualitative Disclosures About Market Risk](index=23&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) No material changes in market risk information have occurred since the fiscal year ended July 31, 2021 - There has been no material change in market risk information since July 31, 2021[126](index=126&type=chunk) [Controls and Procedures](index=23&type=section&id=Item%204.%20Controls%20and%20Procedures) Management concluded that disclosure controls and procedures were effective, with no material changes to internal control over financial reporting - The President & CEO and CFO concluded that the company's disclosure controls and procedures are effective as of January 31, 2022[127](index=127&type=chunk) - No changes occurred during the most recent fiscal quarter that have materially affected, or are reasonably likely to materially affect, the company's internal control over financial reporting[128](index=128&type=chunk) PART II. Other Information [Unregistered Sale of Equity Securities and Use of Proceeds](index=24&type=section&id=Item%202.%20Unregistered%20Sale%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) The company repurchased 55,756 shares for $2.8 million, with 1,569,244 shares remaining authorized for repurchase Share Repurchases (Three months ended Jan 31, 2022) | Period | Total Shares Purchased | Average Price Paid per Share | | :--- | :--- | :--- | | Nov 2021 | 43,277 | $49.90 | | Dec 2021 | 0 | N/A | | Jan 2022 | 12,479 | $50.98 | | **Total** | **55,756** | **$50.14** | - As of January 31, 2022, **1,569,244** shares remained authorized for purchase under the company's share repurchase program[130](index=130&type=chunk)[131](index=131&type=chunk) [Exhibits](index=25&type=section&id=Item%206.%20Exhibits) This section lists exhibits filed with Form 10-Q, including credit agreement amendments, CEO/CFO certifications, and XBRL data - Filed exhibits include the First Amendment to the Credit Agreement, CEO/CFO certifications under Rule 13a-14(a) and Section 1350, and XBRL interactive data files[133](index=133&type=chunk)

Brady Corporation (NYSE:BRC) Q1 2022 Earnings Conference Call November 18, 2021 10:30 AM ET Company Participants Ann Thornton - Chief Accounting Officer & Corporate Controller Michael Nauman - President, CEO & Director Aaron James Pearce - CFO & Treasurer Conference Call Participants Michael McGinn - Wells Fargo Steve Ferazani - Sidoti Keith Housum - Northcoast Research Disclaimer*: This transcript is designed to be used alongside the freely available audio recording on this page. Timestamps within the tran ...

Table of Contents Title of each class Trading Symbol Name of each exchange on which registered Class A Nonvoting Common Stock, par value $0.01 per share BRC New York Stock Exchange Non-accelerated filer ☐ Smaller reporting company ☐ UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, DC 20549 FORM 10-Q ☑ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the Quarterly Period Ended October 31, 2021 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE ...

Brady Corporation (NYSE:BRC) Q4 2021 Earnings Conference Call September 2, 2021 10:30 AM ET Company Participants Ann Thornton - Chief Accounting Officer & Corporate Controller Michael Nauman - President, Chief Executive Officer & Director Aaron James Pearce - Chief Financial Officer & Treasurer Conference Call Participants Cashen Keeler - Bank of America Steve Ferazani - Sidoti & Company Michael McGinn - Wells Fargo Securities Keith Housum - Northcoast Research Operator Thank you for standing by, and welcom ...

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-K ☑ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended July 31, 2021 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission file number 1-14959 BRADY CORPORATION (Exact name of registrant as specified in charter) Wisconsin 39-0178960 (State or other jurisdiction of inco ...