In fiscal 2023, the annual cash retainer paid to non-management directors was $67,500. Each member of the Audit Committee received an annual retainer of $15,000, and an additional annual retainer of $15,000 was paid to the Chair of the Audit Committee; each member of the Management Development and Compensation Committee received an annual retainer of $12,000, and an additional annual retainer of $12,000 was paid to the Chair; and each member of the Corporate Governance, Finance and Technology Committees rec ...

Brady Corporation (NYSE:BRC) Q3 2023 Earnings Conference Call May 18, 2023 10:30 AM ET Company Participants Ann Thornton - Chief Financial Officer Russell Shaller - President and CEO Conference Call Participants Cashen Keeler - Bank of America Securities Steve Ferazani - Sidoti Keith Housum - Northcoast Research Operator Thank you for standing by. And welcome to Brady Corporation’s Third Quarter 2023 Earnings Conference Call. At this time, all participants are in a listen-only mode. After the speaker presen ...

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, DC 20549 ☑ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 OR For the Transition Period from to Commission File Number 1-14959 Securities registered pursuant to Section 12(b) of the Act: Large accelerated filer ☑ Accelerated filer ☐ Emerging growth company ☐ Non-accelerated filer ☐ Smaller reporting company ☐ Indicate by check mark whether the registrant is a shell company (as defined in Ru ...

Brady Corporation (NYSE:BRC) Q2 2023 Earnings Conference Call February 24, 2023 10:30 AM ET Company Participants Ann Thornton - Chief Accounting Officer Russell Shaller - Present and Chief Executive Officer Aaron Pearce - Chief Financial Officer Conference Call Participants Cashen Keeler - Bank of America Securities, Inc. Steve Ferazani - Sidoti Keith Housum - Northcoast Research Operator Good day and thank you for standing by. Welcome to the Q2 2023 Brady Corporation Earnings Conference Call. [Operator Ins ...

PART I. Financial Information [Item 1. Financial Statements (Unaudited)](index=3&type=section&id=Item%201.%20Financial%20Statements%20%28Unaudited%29) This section presents the company's unaudited condensed consolidated financial statements, reflecting its financial position, operating results, cash flows, and stockholders' equity, with key data showing revenue and profit growth and improved operating cash flow [Condensed Consolidated Balance Sheets](index=3&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) As of January 31, 2023, total assets remained stable at $1.372 billion, total liabilities decreased to $405 million due to reduced long-term debt, and stockholders' equity increased to $967 million Key Balance Sheet Items (in thousands) | Item | As of January 31, 2023 | As of July 31, 2022 | | :--- | :--- | :--- | | **Total Assets** | **$1,372,273** | **$1,367,332** | | Cash and Cash Equivalents | $108,210 | $114,069 | | Total Current Assets | $504,215 | $498,068 | | **Total Liabilities** | **$404,869** | **$456,034** | | Total Current Liabilities | $229,849 | $255,174 | | Long-Term Debt | $77,281 | $95,000 | | **Total Stockholders' Equity** | **$967,404** | **$911,298** | [Condensed Consolidated Statements of Income](index=4&type=section&id=Condensed%20Consolidated%20Statements%20of%20Income) For the three months ended January 31, 2023 (Q2 FY23), net sales increased 2.6% year-over-year to $326 million, net income grew 12.3% to $37.99 million, and diluted EPS rose from $0.65 to $0.76 Summary of Operating Results (in thousands, except per share amounts) | Metric | Three Months Ended 1/31/23 | Three Months Ended 1/31/22 | Y-o-Y Change | Six Months Ended 1/31/23 | Six Months Ended 1/31/22 | Y-o-Y Change | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Net Sales | $326,249 | $318,055 | +2.6% | $648,818 | $639,530 | +1.5% | | Gross Profit | $156,440 | $149,362 | +4.7% | $311,704 | $304,350 | +2.4% | | Operating Income | $48,781 | $42,872 | +13.8% | $100,167 | $87,207 | +14.9% | | Net Income | $37,986 | $33,815 | +12.3% | $77,427 | $68,861 | +12.4% | | Diluted EPS (Class A) | $0.76 | $0.65 | +16.9% | $1.55 | $1.32 | +17.4% | [Condensed Consolidated Statements of Comprehensive Income](index=5&type=section&id=Condensed%20Consolidated%20Statements%20of%20Comprehensive%20Income) For the three months ended January 31, 2023, comprehensive income significantly increased to $69.13 million from $15.55 million in the prior year, primarily due to a favorable foreign currency translation adjustment of $30.56 million Comprehensive Income Statement (in thousands) | Item | Three Months Ended 1/31/23 | Three Months Ended 1/31/22 | Six Months Ended 1/31/23 | Six Months Ended 1/31/22 | | :--- | :--- | :--- | :--- | :--- | | Net Income | $37,986 | $33,815 | $77,427 | $68,861 | | Other Comprehensive Income (Loss), Net of Tax | $31,144 | $(18,268) | $13,707 | $(22,986) | | **Comprehensive Income** | **$69,130** | **$15,547** | **$91,134** | **$45,875** | [Condensed Consolidated Statements of Stockholders' Equity](index=6&type=section&id=Condensed%20Consolidated%20Statements%20of%20Stockholders%27%20Equity) For the six months ended January 31, 2023, stockholders' equity increased from $911 million to $967 million, driven by $77.43 million in net income, partially offset by $22.79 million in dividends and $17.86 million in share repurchases - For the six months ended January 31, 2023, the company reported **$77.43 million** in net income, paid **$22.79 million** in dividends, and repurchased **$17.86 million** in stock[66](index=66&type=chunk) [Condensed Consolidated Statements of Cash Flows](index=8&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) For the six months ended January 31, 2023, net cash from operating activities was **$57.38 million**, significantly higher than the prior year's **$24.33 million** due to reduced inventory purchases, while net cash used in financing activities was **$57.13 million**, primarily for credit agreement repayments, dividends, and stock repurchases Summary of Cash Flows (in thousands) | Item | Six Months Ended 1/31/23 | Six Months Ended 1/31/22 | | :--- | :--- | :--- | | Net Cash Provided by Operating Activities | $57,384 | $24,328 | | Net Cash Used in Investing Activities | $(8,156) | $(16,381) | | Net Cash Used in Financing Activities | $(57,128) | $(4,505) | | Net Decrease in Cash and Cash Equivalents | $(5,859) | $72 | [Notes to Condensed Consolidated Financial Statements](index=9&type=section&id=Notes%20to%20Condensed%20Consolidated%20Financial%20Statements) The financial statement notes detail accounting policies, segment information, revenue recognition, derivatives, and subsequent events, identifying IDS and WPS as reporting segments, with IDS as the primary revenue and profit source, and announcing organizational changes and quarterly dividends - The company operates in two reporting segments: Identification Solutions (IDS) and Workplace Safety (WPS), with the **IDS segment** being the primary contributor to revenue and profit[99](index=99&type=chunk) Segment Profit (in thousands) | Segment | Three Months Ended 1/31/23 | Three Months Ended 1/31/22 | Six Months Ended 1/31/23 | Six Months Ended 1/31/22 | | :--- | :--- | :--- | :--- | :--- | | IDS | $47,384 | $44,129 | $98,909 | $92,945 | | WPS | $6,249 | $4,515 | $12,627 | $6,808 | | **Total** | **$53,633** | **$48,644** | **$111,536** | **$99,753** | - The Board of Directors announced on February 21, 2023, a quarterly cash dividend of **$0.23 per share** payable on April 28, 2023, to Class A and Class B common stockholders[126](index=126&type=chunk) [Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations](index=16&type=section&id=Item%202.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management discusses the company's operating strategy, macroeconomic conditions, operating results, segment performance, and liquidity and capital resources, highlighting sales and margin improvements through organic growth and pricing actions, a revised credit agreement for enhanced financial flexibility, and continued investment in R&D and digital capabilities [Overview and Strategy](index=16&type=section&id=Overview%20and%20Strategy) The company's strategy focuses on long-term growth and profitability through R&D investment, enhanced customer service, digital sales expansion, inflation-responsive pricing, strategic acquisitions, and operational excellence, with a planned FY2023 reorganization into a regional operating structure to support key market growth - Key initiatives for fiscal year 2023 include investing in organic growth, enhancing customer service, expanding digital sales capabilities, maintaining profitability through pricing, investing in acquisitions, driving operational excellence, building a diverse culture, and executing regional reorganization[110](index=110&type=chunk)[128](index=128&type=chunk) - The company is executing a reorganization to a regional operating structure to support continued growth in key regions and streamline operations[110](index=110&type=chunk) [Results of Operations](index=17&type=section&id=Results%20of%20Operations) For the three months ended January 31, 2023, net sales grew **2.6%**, driven by **6.3%** organic growth offset by **3.7%** negative foreign exchange impact; gross margin improved from **47.0%** to **48.0%** due to operational efficiencies and pricing, with operating income increasing **13.8%** to **$48.8 million** Overall Company Sales Growth | Period | Total Growth Rate | Organic Growth Rate | Foreign Exchange Impact | | :--- | :--- | :--- | :--- | | Three Months Ended 1/31/23 | 2.6% | 6.3% | (3.7)% | | Six Months Ended 1/31/23 | 1.5% | 6.6% | (5.1)% | - Gross margin improved to **48.0%** for both the three and six-month periods, primarily due to operational efficiencies from manufacturing streamlining and price increases[208](index=208&type=chunk) - Research and development expenses increased **10.1%** and **5.2%** for the three and six-month periods, respectively, as the company continued to invest in new product development[132](index=132&type=chunk) [Business Segment Operating Results](index=19&type=section&id=Business%20Segment%20Operating%20Results) The IDS segment achieved **7.4%** organic sales growth in Q2 with a margin increase to **18.5%**, while the WPS segment saw **2.8%** organic sales growth and a significant margin improvement to **8.9%** due to optimized cost structure IDS Segment Performance (Q2 FY23 vs Q2 FY22) | Metric | Q2 FY23 | Q2 FY22 | Change | | :--- | :--- | :--- | :--- | | Net Sales | $255.7M | $245.0M | +4.4% | | Organic Sales Growth | 7.4% | 16.0% | - | | Segment Profit | $47.4M | $44.1M | +7.4% | | Profit Margin | 18.5% | 18.0% | +50 bps | WPS Segment Performance (Q2 FY23 vs Q2 FY22) | Metric | Q2 FY23 | Q2 FY22 | Change | | :--- | :--- | :--- | :--- | | Net Sales | $70.6M | $73.1M | -3.4% | | Organic Sales Growth | 2.8% | 5.2% | - | | Segment Profit | $6.2M | $4.5M | +38.4% | | Profit Margin | 8.9% | 6.2% | +270 bps | [Liquidity and Capital Resources](index=20&type=section&id=Liquidity%20and%20Capital%20Resources) The company maintains a strong financial position with **$108.2 million** cash and **$221.1 million** available credit as of January 31, 2023, having revised its credit agreement to increase commitments to **$300 million** and extend maturity, ensuring sufficient resources for future operations - As of January 31, 2023, the company held **$108.2 million** in cash and **$221.1 million** in available borrowing capacity under its credit agreement, which can be increased to **$981.1 million**, resulting in total available liquidity of **$1.0893 billion**[111](index=111&type=chunk) - In November 2022, the company amended its credit agreement, increasing total loan commitments by **$100 million** to **$300 million** and extending the final maturity date to November 14, 2027[151](index=151&type=chunk) - As of January 31, 2023, the company was in full compliance with all financial covenants, with a leverage ratio of **0.31:1.0** (required below **3.5:1.0**) and an interest coverage ratio of **85.9:1.0** (required above **3.0:1.0**)[177](index=177&type=chunk) [Item 3. Quantitative and Qualitative Disclosures About Market Risk](index=23&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) There have been no material changes to the company's quantitative and qualitative disclosures about market risk since July 31, 2022 - No material changes have occurred in the quantitative and qualitative disclosures about market risk since July 31, 2022[156](index=156&type=chunk) [Item 4. Controls and Procedures](index=23&type=section&id=Item%204.%20Controls%20and%20Procedures) Management concluded that the company's disclosure controls and procedures were effective as of the reporting period end, with no material changes in internal control over financial reporting during the most recent fiscal quarter - The company's President and Chief Executive Officer and Chief Financial Officer concluded that disclosure controls and procedures were effective as of the end of the reporting period[157](index=157&type=chunk) - No material changes occurred in the company's internal control over financial reporting during the most recent fiscal quarter[182](index=182&type=chunk) PART II. Other Information [Item 1A. Risk Factors](index=24&type=section&id=Item%201A.%20Risk%20Factors) No material changes have occurred compared to the risk factors disclosed in the company's Form 10-K for the year ended July 31, 2022 - No material changes have occurred compared to the risk factors outlined in the company's 2022 Form 10-K[159](index=159&type=chunk) [Item 2. Unregistered Sales of Equity Securities and Use of Proceeds](index=24&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) The company disclosed its Class A non-voting common stock repurchase program activities, with approximately **$67.1 million** remaining authorized for repurchases under the existing plan as of January 31, 2023 - The Board of Directors authorized an increase to the stock repurchase program on May 24, 2022, allowing for the repurchase of up to **$100 million** of the company's Class A non-voting common stock[183](index=183&type=chunk) Stock Repurchase Activity (for the three months ended January 31, 2023) | Period | Total Shares Repurchased | Average Price Paid | Remaining Repurchase Authorization (in thousands) | | :--- | :--- | :--- | :--- | | November 2022 | — | — | $72,939 | | December 2022 | 123,321 | $46.92 | $67,153 | | January 2023 | 100 | $45.99 | $67,148 | | **Total** | **123,421** | **$46.92** | **$67,148** | [Item 6. Exhibits](index=25&type=section&id=Item%206.%20Exhibits) This report lists various exhibits required by regulations, including executive employment contracts, change in control agreements, and certifications and XBRL-related documents mandated by the Sarbanes-Oxley Act - The report includes various exhibits such as executive employment contracts, change in control agreements, CEO/CFO certifications, and XBRL data files[162](index=162&type=chunk)[185](index=185&type=chunk)[189](index=189&type=chunk) Signatures [Signature Details](index=26&type=section&id=Signatures_details) This report was formally signed on February 24, 2023, by Russell R. Shaller, President and Chief Executive Officer (Principal Executive Officer), and Aaron J. Pearce, Chief Financial Officer and Treasurer (Principal Financial Officer) - The report is signed by Russell R. Shaller, President and Chief Executive Officer, and Aaron J. Pearce, Chief Financial Officer and Treasurer[186](index=186&type=chunk)[190](index=190&type=chunk)

Brady Corporation (NYSE:BRC) Q1 2023 Earnings Conference Call November 17, 2022 10:30 AM ET Company Participants Ann Thornton - Chief Accounting Officer Russell Shaller - Present and Chief Executive Officer Aaron Pearce - Chief Financial Officer Conference Call Participants Cashen Keeler - Bank of America Securities Steve Ferazani - Sidoti Keith Housum - Northcoast Research Operator Good day and thank you for standing by. Welcome to the Q1 2023 Brady Corporation Earnings Conference Call. [Operator Instructi ...

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, 2022 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE ...

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 ...