Brady (US:BRC)2025-02-21 12:06Sales 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].