Financial Performance - Net sales for the three months ended April 30, 2025 increased 11.4% to $382.6 million compared to $343.4 million in the same period in the prior year, driven by organic sales growth of 1.6% and acquisition-related growth of 10.5%[68] - For the nine months ended April 30, 2025, net sales increased 11.9% to $1,116.3 million compared to $998.0 million in the same period in the prior year, with organic sales growth of 2.6% and acquisition-related growth of 10.2%[69] - Operating income for the three months ended April 30, 2025 increased 5.7% to $67.2 million, while for the nine months it remained relatively stable at $177.3 million, reflecting organic sales growth in higher gross margin product lines[73] - Net income for the three months ended April 30, 2025, was $52.3 million, or 13.7% of sales, compared to $50.9 million (14.8% of sales) in the same period of 2024[74] - Total company organic sales growth was 1.6% in the three months ended April 30, 2025, compared to 4.5% in the same period of 2024[80] Expenses - Gross margin for the three months ended April 30, 2025 was $195.1 million, a 10.2% increase from $177.0 million in the same period last year, although the gross margin percentage decreased to 51.0% from 51.6%[70] - Research and development (R&D) expenses increased 8.5% to $19.2 million for the three months ended April 30, 2025, and 13.2% to $56.8 million for the nine months ended April 30, 2025, reflecting a commitment to new product development[71] - Selling, general and administrative (SG&A) expenses rose 13.4% to $108.7 million for the three months ended April 30, 2025, and 15.2% to $326.4 million for the nine months ended April 30, 2025, primarily due to increased headcount and acquisition-related costs[72] Cash Flow and Liquidity - The company had cash of $152.2 million and total available liquidity of $1,237.4 million as of April 30, 2025, supporting its growth strategy and ability to manage economic challenges[63] - Cash and cash equivalents decreased by $98.0 million to $152.2 million at April 30, 2025, primarily due to changes in working capital and increased inventory outflows[91] - Net cash provided by operating activities was $122.9 million in the nine months ended April 30, 2025, down from $171.1 million in the same period of 2024[91] - Net cash used in investing activities was $165.1 million in the nine months ended April 30, 2025, primarily for business acquisitions of $147.2 million[92] Debt and Financial Obligations - As of April 30, 2025, the outstanding balance on the Company's credit agreement was $102.8 million, with a maximum outstanding amount of $144.8 million during the nine months ended April 30, 2025[98] - The Company has $195.2 million available for future borrowing under the credit agreement, which can be increased to $1,085.2 million at the Company's option, subject to certain conditions[98] - The Company is in compliance with financial covenants, maintaining a debt to EBITDA ratio of 0.3 to 1.0 and an interest expense coverage ratio of 71.5 to 1.0 as of April 30, 2025[99] - The credit agreement has a final maturity date of November 14, 2027, and includes an increase in lending commitments to $300 million[96] - The Company had letters of credit outstanding under the credit agreement of $2.0 million as of April 30, 2025[98] Strategic Focus - The company is focused on integrating recent acquisitions to enhance its strategic position and accelerate long-term sales growth[61] - The company plans to mitigate inflationary pressures and tariff impacts through targeted price increases, strategic sourcing adjustments, and operational efficiency gains[62] - The Company aims to enhance its digital capabilities and customer service through improved sales channels and data-driven marketing automation tools[61] Tax and Compliance - The company's income tax rate was 20.5% for the three months ended April 30, 2025, down from 21.0% in the same period of 2024, with an expected ongoing annual rate of approximately 21%[78] - The Company does not believe that cash requirements for uncertain tax positions will be material[94] Future Outlook - The Company anticipates future financial position and business strategy changes, including projected sales and capital expenditures, as part of its forward-looking statements[100] - The Company has material cash requirements for known contractual obligations, including capital expenditures and lease obligations, and expects net cash from operating activities to be adequate for liquidity needs over the next 12 months[94] - The Company does not have significant agreements for minimum order quantities for inventory purchases, indicating flexibility in managing cash flow[94]

Financial Performance - Sales for the third quarter ended April 30, 2025, increased by 11.4% to $382.6 million, compared to $343.4 million in the same quarter last year[3]. - Adjusted Diluted EPS for the third quarter was $1.22, an increase of 11.9% compared to $1.09 in the same quarter last year[6]. - Adjusted Net Income for the third quarter was $58.8 million, up from $52.7 million in the same quarter last year[5]. - For the nine-month period ended April 30, 2025, sales increased by 11.9% to $1.12 billion compared to $998.0 million in the same period last year[7]. - Adjusted Income Before Income Taxes for the nine-month period was $205.4 million, an increase of 10.0% compared to the same period last year[8]. - Adjusted Net Income for the nine months ended April 30, 2025, was $161,098 million, compared to $147,201 million for the same period in 2024, reflecting a 9.4% increase[26]. - Adjusted Diluted EPS for the nine months ended April 30, 2025, was $3.34, compared to $3.03 in the same period of 2024, indicating a 10.3% increase[27]. Shareholder Returns - The Company returned $44.5 million to shareholders through dividends and share repurchases during the quarter[6]. - The Company repurchased 476,000 shares for $33.2 million during the quarter[10]. Guidance and Projections - The Company tightened its Adjusted Diluted EPS guidance for the fiscal year ending July 31, 2025, to a range of $4.48 to $4.63 per share[11]. - Fiscal 2025 guidance for Adjusted Diluted EPS is projected between $4.48 and $4.63, with a GAAP measure expectation of $3.95 to $4.10[28]. - Amortization expense for fiscal 2025 is expected to remain constant at $0.30 per Class A Nonvoting Common Share[28]. - Facility closure and other reorganization costs are projected at $0.15 per Class A Nonvoting Common Share for fiscal 2025[28]. - Non-recurring acquisition-related costs and other expenses are expected to be $0.08 per Class A Nonvoting Common Share for fiscal 2025[28]. Income and Expenses - Income before income taxes for the third quarter increased by 2.1% to $65.7 million compared to $64.4 million in the same quarter last year[4]. - Adjusted Income Before Income Taxes for the three months ended April 30, 2025, was $74.43 million, compared to $66.78 million in the same period of 2024[24]. - The company reported a net income of $139.38 million for the nine months ended April 30, 2025, slightly down from $141.76 million in the same period of 2024[21]. - The company reported a GAAP net income of $52,263 million for Q3 2025, compared to $50,890 million in Q3 2024, a 2.7% increase[26]. - The company incurred $2,947 million in facility closure and reorganization costs for Q3 2025, compared to no such costs in Q3 2024[26]. Cash and Liabilities - The company’s net cash provided by operating activities for the nine months ended April 30, 2025, was $122.87 million, down from $171.09 million in the same period of 2024[21]. - Cash and cash equivalents decreased to $152.15 million as of April 30, 2025, from $250.12 million at the beginning of the period[21]. - Total liabilities increased to $530.56 million as of April 30, 2025, compared to $448.91 million as of July 31, 2024[20]. - The company’s long-term debt increased to $102.82 million as of April 30, 2025, from $90.94 million as of July 31, 2024[20]. - The company’s total stockholders' equity rose to $1.17 billion as of April 30, 2025, up from $1.07 billion as of July 31, 2024[20]. Regional Performance - The Americas & Asia region saw organic sales growth of 5.4%, while Europe & Australia experienced an organic sales decline of 5.4%[3]. - The Americas & Asia segment reported net sales of $253.65 million, up 12.9% year-over-year, while Europe & Australia segment sales increased by 8.7% to $128.94 million[22]. - The company’s segment profit margin for the Americas & Asia was 22.5% for the three months ended April 30, 2025, compared to 22.1% in the same period of 2024[22].

Core Viewpoint - Brady Corporation reported strong financial results for the third quarter of fiscal 2025, with significant sales growth driven by acquisitions and organic growth in the Americas and Asia regions, despite challenges from foreign currency translation [2][8]. Financial Results - Sales for the third quarter ended April 30, 2025, were $382.6 million, an increase of 11.4% from $343.4 million in the same quarter last year. This growth included organic sales growth of 1.6%, acquisition-related growth of 10.5%, and a decline of 0.7% due to foreign currency translation [2][4]. - For the nine-month period ended April 30, 2025, sales increased by 11.9% to $1.12 billion from $998.0 million in the same period last year, with organic growth of 2.6% and acquisition growth of 10.2% [5][7]. Income Metrics - Income before income taxes for the third quarter increased by 2.1% to $65.7 million compared to $64.4 million in the same quarter last year. Adjusted income before income taxes rose by 11.5% to $74.4 million [3][6]. - Net income for the third quarter was $52.3 million, up from $50.9 million in the same quarter last year. Adjusted net income increased to $58.8 million from $52.7 million [4][7]. Earnings Per Share - Earnings per diluted Class A Nonvoting Common Share for the third quarter was $1.09, compared to $1.05 in the same quarter last year, reflecting a 3.8% increase. Adjusted diluted EPS reached a record high of $1.22, up 11.9% from $1.09 [4][29]. Regional Performance - Sales in the Americas and Asia increased by 12.9%, with organic growth of 5.4%. In contrast, sales in Europe and Australia grew by 8.7%, but organic sales declined by 5.4% [2][5]. Shareholder Returns - The company returned $44.5 million to shareholders through dividends and share repurchases during the quarter, including repurchasing 476,000 shares for $33.2 million [8][9]. Fiscal Guidance - The company tightened its Adjusted Diluted EPS guidance for the fiscal year ending July 31, 2025, to a range of $4.48 to $4.63 per share, and updated GAAP earnings guidance to $3.95 to $4.10 per share [10][11].

Group 1 - DICK'S Sporting Goods launched a new campaign called "Speed Shopping" featuring IShowSpeed and legendary athletes like Tom Brady and Kevin Durant, emphasizing the blend of sports, style, and culture [1][3] - The campaign aims to create an engaging shopping experience that goes beyond purchasing footwear, highlighting competition and passion among athletes [2][3] - The promotional content will be distributed across various platforms including Amazon Prime, Disney+, Hulu, Max, Netflix, and YouTube [4] Group 2 - DICK'S Sporting Goods, founded in 1948 and headquartered in Pittsburgh, operates over 850 stores and offers a wide range of sporting goods and apparel [5] - The company is committed to supporting youth sports and has donated millions through its Sports Matter program to assist under-resourced teams and athletes [6]

Group 1: Hertz Car Sales Overview - Hertz Car Sales is transforming the car-buying experience by leveraging its century-long automotive expertise, allowing customers to shop for premium pre-owned vehicles online or at over 40 retail locations nationwide [1][2] - Each Hertz Certified vehicle undergoes a rigorous 115-point certification process and comes with a 12-month/12,000-mile limited powertrain warranty, ensuring quality and value for customers [2] - The company emphasizes clear, upfront pricing and a seamless certification process, aiming to deliver exceptional service to customers [3] Group 2: Product Highlight - The 2023 Cadillac XT5, featured in Hertz's offerings, includes various entertainment and safety features such as a navigation system, power moonroof, and lane departure alerts, along with Tom Brady's handwritten signature on the driver’s side visor [4] Group 3: Sweepstakes Promotion - Hertz is running a sweepstakes where participants can enter for a chance to win a Cadillac XT5 valued at over $31,000, plus $5,000 cash, by completing an online entry form [9] - The sweepstakes is open to all legal U.S. residents who are licensed drivers aged 20 and older, with no purchase necessary [6]

Company Overview - Brady Corporation is an international manufacturer and marketer of solutions that identify and protect people, products, and places, with a diverse customer base across various industries including electronics, telecommunications, manufacturing, and medical [6] - The company was founded in 1914 and is headquartered in Milwaukee, Wisconsin, employing approximately 5,700 people as of July 31, 2024 [6] - For fiscal year 2024, Brady reported sales of approximately $1.34 billion [6] Board of Directors Update - Anne De Greef-Safft has joined Brady's Board of Directors, effective February 25, 2025 [1] - De Greef-Safft has extensive experience in strategic and operational consulting for private equity firms and has held leadership positions in global manufacturing companies, including Group President at Standex International and various roles at Danaher [2] - Her educational background includes a bachelor's and master's degree in electronics engineering and an MBA from Babson College [3] Leadership Insights - De Greef-Safft expressed her enthusiasm for collaborating with Brady's leadership team, highlighting the company's commitment to innovation and customer insights [4] - Bradley C. Richardson, Chair of Brady's Board, emphasized De Greef-Safft's broad business acumen and international experience as valuable assets to the Board [5] - Russell R. Shaller, President and CEO of Brady, noted that her experience in innovation-driven global industrial companies will be crucial for driving long-term shareholder value [5]

Financial Data and Key Metrics Changes - Organic sales grew by 2.6%, with acquisition sales increasing by 10.2%, leading to adjusted earnings per share growth of 7.5% in the quarter [8][13][24] - Gross profit margin was 49.3%, down from 50.2% year-over-year, impacted by facility closures which added $2.3 million in expenses [17][24] - Operating cash flow increased to $39.6 million from $36.1 million year-over-year, while free cash flow improved significantly to $32.5 million from a negative $13.5 million [25] Business Line Data and Key Metrics Changes - The Americas and Asia region reported organic sales growth of 4.3%, while Europe and Australia experienced a slight organic decline of 0.8% [8][13] - The I7500 industrial label printer was launched, designed for high volume and high mix labeling, expected to enhance efficiency for customers [9][10][11] Market Data and Key Metrics Changes - The Americas and Asia region's total sales reached $133.8 million, with organic growth of 4.3% and acquisitions contributing 7.6% [34] - In Asia, organic sales growth was 11.3%, driven by strong performance in Japan and India, while China saw a decline of 3.5% [36] Company Strategy and Development Direction - The company is focusing on integrating operations post-acquisition of Gravitech and enhancing product development through increased R&D investment, which rose by 11.2% [12][21] - Strategic actions include facility closures in Beijing and Buffalo to streamline operations and improve efficiency [14][15][16] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about organic sales growth in the Americas and Asia, despite challenges in Europe and Australia due to economic conditions [8][34] - The company is cautious about the geopolitical and trade environment but remains focused on internal growth and product innovation [42][84] Other Important Information - The company announced its 39th consecutive year of annual dividend increases, reflecting a commitment to returning value to shareholders [28] - Full-year fiscal 2025 adjusted diluted EPS guidance was raised to a range of $4.45 to $4.70 per share, indicating confidence in performance despite external challenges [30] Q&A Session Summary Question: Impact of potential tariffs with Mexico and Canada - Management indicated the ability to mitigate tariff impacts by shifting production and emphasized concerns about broader economic slowdowns rather than direct impacts on Brady [45][48] Question: Facility closures and cost savings - Management anticipates that restructuring actions will lead to improved efficiency and a better run rate in the future, with most changes expected to be completed within the fiscal year [51][54] Question: Performance of the I7500 printer and potential cannibalization - Management expressed optimism about the I7500's revenue potential, noting its unique market position and potential for significant ROI for customers [57][60] Question: FX headwinds and guidance adjustments - Management acknowledged FX as a headwind but noted strong performance in the Americas and Asia offsetting some of the negative impacts [63][64] Question: Economic conditions in Australia and Europe - Management highlighted challenges in Australia due to economic ties with China and expressed caution regarding the European market, particularly due to energy price issues in Germany [67][70]

Financial Performance - Net sales for the three months ended January 31, 2025 increased 10.6% to $356.7 million compared to $322.6 million in the same period in the prior year, driven by organic sales growth of 2.6% and acquisition-related growth of 10.2%[66] - Gross margin for the three months ended January 31, 2025 was $175.8 million, representing 49.3% of net sales, a decrease from 50.2% in the prior year, primarily due to facility closure costs[68] - Operating income decreased 5.0% to $51.2 million for the three months ended January 31, 2025, compared to $53.9 million in the same period in the prior year, impacted by acquisition-related costs and reorganization expenses[71] - Net income for the three months ended January 31, 2025 was $40.3 million, down from $43.6 million in the same period in the prior year, reflecting a decrease in net income margin from 13.5% to 11.3%[72] - Organic sales growth for the six months ended January 31, 2025 was 3.1%, with total net sales increasing 12.1% to $733.7 million compared to $654.6 million in the prior year[67] Expenses - Research and development (R&D) expenses increased 11.2% to $18.7 million for the three months ended January 31, 2025, remaining at 5.2% of net sales[69] - Selling, general and administrative (SG&A) expenses rose 15.9% to $105.9 million for the three months ended January 31, 2025, increasing as a percentage of sales from 28.3% to 29.7%[70] Cash and Liquidity - The company had cash of $138.5 million and total available liquidity of $1,233.6 million as of January 31, 2025, supporting its growth strategy and acquisitions[62] - Cash and cash equivalents were $138.5 million as of January 31, 2025, an increase of $111.7 million from July 31, 2024[87] - Net cash provided by operating activities was $63.0 million for the six months ended January 31, 2025, down from $98.4 million in the prior year[87] - The Company used $151.7 million in investing activities during the six months ended January 31, 2025, primarily for business acquisitions[88] - As of January 31, 2025, the Company maintained a debt to EBITDA ratio of 0.3 to 1.0, well below the covenant limit of 3.5 to 1.0[95] Sales by Region - Americas & Asia net sales increased by 10.5% to $233.8 million for the three months ended January 31, 2025, driven by organic sales growth of 4.3% and acquisitions contributing 7.6%[78] - Europe & Australia net sales increased by 10.7% to $122.8 million for the three months ended January 31, 2025, with acquisitions contributing 15.1% despite a 0.8% organic sales decline[82] Segment Performance - Segment profit for Americas & Asia increased by 4.8% to $46.0 million for the three months ended January 31, 2025, but as a percentage of net sales decreased to 19.7% from 20.7%[81] - Segment profit for Europe & Australia decreased by 24.4% to $11.4 million for the three months ended January 31, 2025, with the profit margin dropping to 9.3% from 13.6%[85] Strategic Focus - The company plans to enhance its digital capabilities and customer service through improved sales channels and data-driven marketing automation tools[61] - The company is focused on integrating recent acquisitions to enhance its strategic position and drive long-term sales growth[61] - The company is focused on identifying, integrating, and growing acquired companies while managing contingent liabilities from divested businesses[99] Risks and Challenges - The company faces increased costs of raw materials and labor, along with material shortages and supply chain disruptions[99] - There has been a decrease in demand for the company's products, impacting overall performance[99] - Risks include the loss of key employees and challenges in protecting against security breaches and phishing attacks[99] - The company is subject to various risks including foreign currency fluctuations and changes in tax legislation[99] - The company acknowledges uncertainties that may cause actual future results to differ materially from its forward-looking statements[98] Compliance and Controls - The Company's income tax rate was 22.5% for the three months ended January 31, 2025, compared to 21.8% for the same period in 2024, and is expected to be approximately 21% going forward[76] - The company has maintained effective disclosure controls and procedures as of the end of the reporting period[100] - There were no changes in the company's internal control over financial reporting that materially affected its operations during the last fiscal quarter[101] - The company does not undertake to update its forward-looking statements except as required by law, indicating a cautious approach to future projections[98]

Sales Performance - Sales for the quarter ended January 31, 2025, increased by 10.6% to $356.7 million compared to $322.6 million in the same quarter last year, with organic sales growth of 2.6% and a 10.2% increase from acquisitions[3]. - For the six-month period ended January 31, 2025, sales increased by 12.1% to $733.7 million, with organic sales growth of 3.1% and a 10.0% increase from acquisitions[7]. - The Americas & Asia region saw a 10.6% increase in sales, while Europe & Australia experienced a 15.0% increase, with organic growth of 4.7% in the Americas & Asia[7]. - Total net sales increased by 10.5% in the Americas & Asia segment for the three months ended January 31, 2025, reaching $233,846 thousand, compared to $211,643 thousand in the same period of 2024[24]. Income and Earnings - Adjusted Net Income for the quarter was $48.1 million, up from $45.4 million in the same quarter last year, while Net Income decreased to $40.3 million from $43.6 million[5]. - Adjusted Diluted EPS increased by 7.5% to $1.00 compared to $0.93 in the same quarter of the prior year, while Diluted EPS decreased by 7.8% to $0.83[5]. - Net income for the six months ended January 31, 2025, was $87,117 thousand, compared to $90,869 thousand for the same period in 2024, representing a decrease of 3.1%[23]. - Adjusted Net Income for Q2 2025 was $48,121,000, compared to $45,444,000 in Q2 2024, reflecting a year-over-year increase of 3.7%[28]. - For the first half of fiscal 2025, Adjusted Net Income reached $102,278,000, compared to $94,494,000 in the same period of fiscal 2024, marking an increase of 8.5%[28]. Guidance and Projections - The low end of Adjusted Diluted EPS guidance for the full year ending July 31, 2025, was raised from $4.40 to $4.45 per share[11]. - The guidance for Adjusted Diluted EPS for fiscal 2025 is projected between $4.45 and $4.70, indicating a potential increase from the previous fiscal year[30]. Cash and Assets - The company's net cash position increased to $50.8 million, providing flexibility for funding organic and inorganic opportunities[10]. - Cash and cash equivalents decreased from $250,118 thousand at the beginning of the period to $138,452 thousand at the end of the period, a decline of 44.6%[23]. - Total current assets decreased from $599,715 thousand as of July 31, 2024, to $536,315 thousand as of January 31, 2025, a decline of approximately 10.6%[22]. Expenses and Costs - Income before income taxes for the quarter decreased by 6.8% to $52.0 million compared to $55.8 million in the same quarter last year[4]. - Adjusted Income Before Income Taxes for the quarter was $62.4 million, an increase of 7.2% compared to the second quarter of last year[4]. - Amortization expense for Q2 2025 was $3,546,000, compared to $1,816,000 in Q2 2024, reflecting a significant increase of 95.1%[28]. - Facility closure and other reorganization costs amounted to $4,241,000 in Q2 2025, with no such costs reported in Q2 2024[28]. - Non-recurring acquisition-related costs for the first half of fiscal 2025 were $3,794,000, with no such costs in the same period of fiscal 2024[28]. Debt and Liabilities - The company’s long-term debt decreased slightly from $90,935 thousand as of July 31, 2024, to $87,687 thousand as of January 31, 2025, a reduction of 2.5%[22]. - The total liabilities increased from $448,911 thousand as of July 31, 2024, to $468,232 thousand as of January 31, 2025, an increase of 4.3%[22]. - The company’s retained earnings increased from $1,174,025 thousand as of July 31, 2024, to $1,238,275 thousand as of January 31, 2025, an increase of 5.5%[22]. Product Innovation - The introduction of the i7500 high-speed printer utilizing LabelSense technology was highlighted as a key product innovation this quarter[10].

Core Viewpoint - Brady Corporation reported a 10.6% increase in sales for the second quarter of fiscal 2025, driven by organic growth and acquisitions, despite a decline from foreign currency translation [2][8]. Financial Results - Sales for the quarter ended January 31, 2025, were $356.7 million, up from $322.6 million in the same quarter last year [2][4]. - Organic sales growth was 2.6%, with acquisitions contributing 10.2% and foreign currency translation resulting in a 2.2% decline [2][8]. - By region, sales increased by 10.5% in the Americas & Asia and 10.7% in Europe & Australia [2][5]. Income Metrics - Income before income taxes decreased by 6.8% to $52.0 million compared to $55.8 million in the same quarter last year [3][4]. - Adjusted Income Before Income Taxes for the quarter was $62.4 million, reflecting a 7.2% increase from the previous year [3][6]. - Net income for the quarter was $40.3 million, down from $43.6 million in the same quarter last year [4][7]. Earnings Per Share - Earnings per diluted Class A Nonvoting Common Share decreased to $0.83 from $0.90 in the same quarter last year [4][8]. - Adjusted Diluted EPS increased to $1.00 from $0.93 in the same quarter last year, representing a 7.5% growth [4][8]. Six-Month Performance - For the six-month period ended January 31, 2025, sales increased by 12.1% to $733.7 million compared to $654.6 million in the same period last year [5][7]. - Adjusted Net Income for the six-month period was $102.3 million, up from $94.5 million in the same period last year [7][8]. Cash Flow and Guidance - Net cash provided by operating activities increased to $39.6 million in the second quarter of fiscal 2025 from $36.1 million in the same quarter last year [8]. - The company raised the low end of its Adjusted Diluted EPS guidance for the fiscal year ending July 31, 2025, from $4.40 to $4.45 per share [10][11]. Strategic Commentary - The company emphasized its focus on research and development, highlighting the launch of the i7500 high-speed printer as a key innovation [9]. - The Americas and Asia region showed strong organic sales growth and improved segment profit, indicating effective operational strategies [9].