Brady (BRC) - 2025 Q2 - Quarterly Results

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$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$1.00 compared to $0.93 in the same quarter of the prior year, while Diluted EPS decreased by 7.8$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$599,715 thousand as of July 31, 2024, to $536,315 thousand as of January 31, 2025, a decline of approximately 10.6$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].