Earnings call transcript Q3 2023

Due to licensing restrictions, you must log in to view earnings call transcripts.

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 presentation, there will be a question-and-answer session. [Operator Instructions]

to Thornton. call like Financial to now Ann Officer, would hand over the Chief I ahead. go Please

Ann Thornton

Thank you. The And website third morning’s Good morning. are at quarter fiscal Brady call earnings XXXX www.bradycorp.com/investors. Corporation conference on call. located slides this welcome for our to the

We begin remarks number three. on will slide prepared our

words as statement. call, just believe, may, forecast anticipate are during Please make about will, note this that forward-looking forward-looking expect, comments few identifying examples of a may we information. a Words such and

It’s that uncertainties, to could our Risk in note XX-K, morning important risk significantly various was Form noted XXXX this were which results. SEC subject September to and filed is of information forward-looking fiscal the in expected factors XXXX. in which and release factors Brady’s news impact with

that teleconference and of Brady. by Brady note be without please copyrighted this the Corporation rebroadcast is consent not may Also,

recording We Internet. the will and on be broadcasting it this call

Q&A consent participation your session in constitute such, As the your will recorded. being to

the Brady’s turn over now to Chief President Executive Russell Russell? call I’ll Officer, Shaller. and

Russell Shaller

all Thank you, Ann. today. us for joining Thank you

up delighted challenge new see I’d Investor all, Brady’s for Relations becoming leader know Many now as of congratulate as you and CFO. I’m Ann of like her step for new to Ann already, First to CFO. this our to

dedication third This a is direct another XXXX we the results morning released which Brady global our hard entire businesses. This result and quarter marked throughout work results, financial of fiscal organization. quarter the our of strong of

We have the and puts customer first. a that innovation culture focuses on

us delivering the innovative a from fantastic differentiate providing who experience, of professionals while team possible As we that best competition. our have a result, are products customer

help These to digital keep again R&D, our going. once in force our the expect investments of momentum improved This long-term capabilities. types and will expanding we invest that improving quarter while us sales profitability, continuing our are we

share not earnings had record quarter. We only this per

net view the income. cash many give free had sales and flow Brady’s cash environment. of into generation a economic flow and global income end with cash of XXX% unique of macro of also net XXX% footprint operating outstanding markets We of us

recent us Let share observations. a few

to research Our most improve skill remain retain and as still geographies, in such and quality continues in to ability high personnel where remains development, hire somewhat but areas sets IT, demand. in and challenging this high

shipping nearly to normalized have International rates returned levels. and pre-pandemic have

Additionally, our supply returning normal. to chain is also

You can this quarter. in margins improved some see of this gross our

As to down this costs the through have rest it levels, semiconductor inflation, continue and although to shipping we’ve experiencing above overall which still year. some of incredibly we’re relates rates expect come inflation pre-pandemic high seen moderate, we

rate to rates increase continue excuse as stabilize a decrease certain we to are material and experienced at the increase costs greater year-over-year of terms in Wage me, cost. few the at continue same or time, But than before seeing a well. we commodities expected, pandemic

organically grew a From of all Asia. in of with our perspective, we geographic major exception regions, sales the

seen in improved customers from consumer we’ve a we business demand Southeast end of in decline shutdowns has throughout COVID-related country. December many are Asia, But China and experienced industry electronics January this Our to during our in the due in the in the market. and lows

month patterns order in April at a throughout geographies well we our of of this quarter. slowdown growth in each sales as network, stock believe combination month slight throughout but rate is end look quarter, doesn’t markets. a trend, a as we we our the in month, a make reductions slowdown One If started our distribution and of to being some see organic slowest the growth the with in of

us in sales others. pace Fortunately, we the markets geographies the and same to growing end as of which diversity even the profit at aren’t allow markets and in end our customers certain in growing operate continue

in capital throughout our gives generation, cash sheet the cycle. balance keep economic to investing access organic the business to and Our us flexibility

Our priorities remain unchanged.

number innovating three faster a We continue we’ll we growing our which company, quarter. this launching priority will to means new continue First, printers that before. into than is and launched ever evolution our new continue one products faster

is This The to hundreds different significant a and handheld our the charge electrical one materials. which X,XXX a of on first update can The tracking industrial for of is MXXX label printer a product up types asset labeling. of print MXXX labels is single on-site must-have to on printers.

printers. MXXX printer which update is of one is portable the another second The significant to our

grade Some rugged store military printer than of allows that it to itself is the resistance, and the of X,XXX printer more the customer built types it’s and labels on this unique to shock different its features of last.

is And is easy-to-use portable portable keyboard, The using personal, software controlled or a printer the with and be can yet. fastest MXXX the advanced It’s built-in printer. smartphone. our MXXX printer a third most desktop

and and There creativity are of WiFi. these -- and of I’m innovation the of proud via Bluetooth looking options that them. has I’ve to for with hundreds connectivity printer printers put the also our launch of material the operation really this along forward team level new been into

that We to new of we’ll a products pipeline market also over bringing strong the be more have next year.

a full our bring value that great products pipeline, customers R&D and ahead keep the will to to competition. We of of us continue have

to and customers Code helping capabilities Our key an in essential of our is to part productivity in that’s reshoring priority The Nordic improve second with Europe. is are America initiatives. and improve North of of underway our assist acquisitions automation ID manufacturing effort, this our customers’

we our solutions to in, ourselves ability on take impact demand to we’re providing our provide customers competitive customer our based customize the Third, market of is that to customers the actions need. environment our value pride We products our we at what on exactly to inflationary and while and meeting offset prices. believe

environment to by to global over know served continuing it years our will many We’re and operational for long-term. This challenging value for continue this inflationary throughout well us navigating efficiencies push drive has the business. we

value through drive investments, organic and shareholders. to shareholder final to returning in long-term And priority order is our our funds strategically capital deploy acquisitions to our

niche on the leaders operate, way. the just of we’re of and several we we solutions a innovative we pipeline in markets new a many great excellent have highly launched where products We’re in position,

in our We’re future, our positive and fantastic continuing for we each day. delivers make sheet have to have a and a balance cash customers every team we that investments single

call to Now turn cover financial Ann I’d to to results. over the our like Ann?

Ann Thornton

Thank you, Russell.

in This of of quarter of it EPS and grew reported increased third our the gross amortization last compared expense third nicely. this grew together, bottomline quarter PremiSys $X.X EPS, QX and last was of year, to we quarter, non-GAAP EPS, up we was impact organic an GAAP Putting sales, we our XX.X% million quarter XX.X% gain profit sale we our year. business GAAP margins $X.XX on after-tax increase as which the $X.XX, of $X.XX and is the which the excluding after-tax of calculated all over our

key organic improved and takeaways this financial three sales helped each in are, The all appreciation another U.S. financial significantly and the cash regions, of year-over-year which EPS, dollar segment growth profit of of quarter the growth, improved results. quarter us sales overcome growth nicely organic our fantastic and of flow, delivered

PremiSys resulting currency quarter, another grew number X.X% trends. sales the total. this by Let’s decline Organic move a in sales X.X% slide four by our of quarterly X.X%, reduced and divestiture in translation sales of our foreign impact for but sales sales X.X% reduced to

quarter. of our saw the and a currency Australia Europe segment, from where Foreign X.X% had we impact larger reduction translation on a in currency much

we and strengthening rates, However, the April the such to on with the headwind as through as expect Based the currency have recent positive minimal dollar, from U.S. then on quarter. currency of QX exchange we XXth we of to in versus currencies a turn next fourth progress euro impact year. foreign QX expect subside to our foreign

On you slide can our trending. see number profit five, margin gross

gains, XX.X% the as basis third we offset margin quarter freight compared charges. XX.X%, our able actions reduced pricing input and to the cost profit majority points in were year, of Our to through gross increases of to increased XXX last efficiency

gross the strong really value profit Our customers. can to that bring we margins our show

million is number in SG&A quarter SG&A $XX to million trending. last quarter, $XX.X Slide year. compared third the our of this six was expense

the quarter SG&A compared last As of to XX.X% XX%, of year. in third a sales, percent to declined

third you year quarter, SG&A, increased our PremiSys both XX.X% reduce SG&A in XX.X% exclude continue of then from of continual and in this focus more to this sales last sales the quarter. from the basis, sale a the absolute on to expense we QX percent on from a amortization gain dollars charges If presented and efficient have as the through last of On of from year-to-date our business a organization. of quarter becoming sales periods exclude would year’s each non-routine exclude of

trending research Slide investments our number seven of and development. the is in

This invested new sales. of which product R&D, we $XX.X X.X% million We to committed remain in was development. quarter

development of our global throughout our We lines have businesses, the printers. newest of including opportunities

a and quarter this printers next for are new excellent three of launched quarters. we over mentioned, launch printers Russell the As additional several pipeline scheduled

number earnings this eight, pretax a of from can GAAP earnings see quarter increased you sale million basis. XX% business. of our include that the pretax $X.X a gain PremiSys slide On GAAP on

this exclude Workplace charges have non-GAAP our last of $XX.X prior our exclude million recognized Safety would year’s year by you non-routine we increased the last from and If this million in then year X.X% quarter. gain, year and expense from QX amortization exclude both current pretax $XX.X in the that to business, earnings

Slide an earnings EPS number nine on trending of basis. after-tax outlines the and

a all-time that QX last our you non-GAAP an can EPS these strongest on year-to-date over up a And earnings can is a charts, you XX.X% on up last is On basis high. and both basis, XX.X% a quarter trend GAAP versus and non-GAAP year year was our on see Looking clear record. at a of see EPS increasing record basis. and also QX on basis, GAAP

rate income This to have lapses this didn’t One this year. that that due rate last year did and higher-than-normal higher XX.X% at we to than out occurred is point tax other normal item statute repeat tax quarter. a certain was

will will approximately and still XX% that rate well. as long-term be tax annual still tax So approximately we our rate expect that be XX% expect our we

summary year in a On to $XX.X increased slide our substantially find cash QX million last million you’ll $XX.X of from number flow quarter this generation. cash of this XX, Operating quarter.

cash cash of income. the and For operating of XXX% income free flow XXX% quarter, was net was flow net

look if expect was we year the million to first year, in $XXX.X three So operating and you finish cash cash XXX% year flow this of at another to generation with nearly of the the QX. quarter over quarters strong prior up

XX. number slide to Turning

on impact the had that historical sheet. cash has see generation Brady’s balance can our You

position more position We’re our and than this than $XX.X in shareholders than $XX by to currently in increased a more buybacks $XX.X million. debt and reduced $XX million dividends of our this form with net cash we outstanding returning even still by cash the in more put our To we of million million. net perspective, quarter,

development, product our growth to capability to efficiency new and fund into use capital drive productivity expenditures CapEx. is sales fully capital automation opportunities. enhancing future. resources, -- focused cash first to the generating investing deploy allocation and This sales continue the we’ll and capital Our economic includes sales organic to fund Despite to approach in uncertainty,

then when focus between consistently we We’ve annually see a for synergistic fully acquisitions After we for consecutive years, increasing we for manner funding Brady’s very or deploy very, And our have an and disciplined investments dividends, cash second, street buybacks on a either we disconnect of. value clear dividends increased manner dividends. that organic we’re opportunities and our XX in intrinsic trading which in proud price. is a where our opportunistic

right a buybacks. position is puts and sales drive through clear, in the and other by and synergies Our funds our completing value are when acquisitions really in to organic investing us the sheet opportunities, dividends shareholders and price R&D balance returning to

which to even look success balance momentum we’re we to sheet our in this XX. positive us that confident our strong for environment, guidance the brings our -- uncertain us on set number slide As macro future, up and

EPS share share and of per raising basis and $X.XX on per on the to per share We are per a per to per basis basis GAAP XXXX share fiscal of a guidance to share new of a our share on $X.XX range low share non-GAAP per basis. a $X.XX GAAP non-GAAP $X.XX end $X.XX $X.XX range on our to $X.XX $X.XX to

and exchange as on of based is outlook assumes April continued Our economic XXth expansion. rates

we about the we’re XXXX. percentage economy, full organic of global growth be still of the XX, growth expect July approximately in of for year sales we’re range Although the our experiencing businesses to this, stability in organic ending sales most the concerned mid-single-digit year of outside Asia. still Because

$XX our million of income rate amortization million, tax include and approximately elements $XX approximately expense and of approximately million. depreciation XX%, $XX Other of expenditures of guidance an to capital

can’t the overall We fourth price U.S. inventory others, this dollar, pressures strong also our expect enough offset of reductions to partners Potential a another we distributor economic our slowdown through destocking quarter. in at cash that and inflationary quarter in an risks be guidance, strengthening generating manner include among increases, and timely of activity.

it our back turn I’ll over by Russell cover to Russell? Now performance region. to

Russell Shaller

Identification we that utilizing Solutions the of of development, sets geographies our unique that with each new more was best reporting and of using the solutions Effective about all that a Safety, scale go-to-market on this geographically quarter Ann. geographic change the increased structure by needs in beginning changed product strategies key exist accelerate between the by from synergies Thanks, meet our and lines tailored taking product Workplace by creating aligned our future for to organization. while global delivering February our structure each to Xst, region. of up us advantage This a

year. segments former fiscal with also We’re transition this to information assist providing our through the for sales

are such of severance. this we costs as certain part transition, As incurring

one-off charges so to aren’t these break by enough are severance or effectively personnel charges talk these being out offset However, significant about separately. costs, reduced

the XX million were and region. Slide this X.X%. our $XXX.X financial was of illustrates Asia Americas and growth results sales Sales organic quarter

Foreign X.X%. by currency sales reduced

We The increased X.X% sale X.X%. in X.X% is region on this segment million by not small by $X.X gain in our of Adding $XX.X results. business the regional by this up, the quarter Americas million. business included this a also financial Asia sales profit that to and quarter sales this sold total and segment increased reduced the after-tax

this historical region in Approximately Workplace and historical Identification XX% of revenue of division. remaining Safety the and the our consists XX% Americas of Asia is business Solutions our our region

Our IDS business well the in Americas quarter. historical this performed

and making a R&D new in investments difference. increased launches excellent Our product are

on help productivity and safety more that manner efficiency effective for their providing customers gains push to capitalize Our productivity help continue from should solutions complete increase combine and focus companies and as our done improve on tailwinds in solutions employees. get us our services products, job and cost software secular to a their

quarter decline as from this struggled demand Asia with a of sales a in slight customers. organic weak electronics consumer business Our result of X.X% our

continued mitigate to However, and in demand region. some India the they help to weaker do other countries well in

Delhi. in we by footprint are fact, a In plant our new adding India expanding in

fiscal We next will year. operational become the quarter by expect second this of

the reduced Moving X.X% million QX to of were slide XX, find by you’ll Sales quarter. growth X.X%. Europe was of and performance a foreign $XXX.X sales financial region. Australia this summary currency sales and our Organic

European Solutions slightly formal business than our to Comparing more segments, business is Workplace Australian product is line remainder and Identification our the half the historical of and Safety.

organic Australia in business solid growth a XX% perform profit. to in Our continues very well of improvement both sales with and approximately

as a benefiting in continue And Workplace organic supply across many Safety same to for to trends productivity experience business seeing is there our growth our the shorten is Brady’s In we ID IDS business. the Europe, business struggle and we’re Europe, historical and from in work Solutions solutions. clear of our U.S. demand companies to chain personnel, find both their

mid-single this the grew in Safety organically quarter. digits Workplace Europe in our Meanwhile, business

great we’re customers our them we Our our identify are our the At helping that that products catalog on spend same our the websites team increasing right and and ensuring time, advertising, is deemphasizing job relevant doing are solution. spend. online to to while our on a

quarter foreign X.X% to percentage of segment The our economic segment from and XX.X% even in Australian and strength and QX tough with this last profit by $XX.X background quarter, to profit businesses this of year this as XX% segment European increased year. in headwinds, increased in the shows currency a of million increase profit sales the

and with in that product would incurred what have our want sales the like we our restructuring. we Lastly, reorganized the by have benefits line understanding structure both the if to region looked hadn’t share costs results in I

Solutions X.X% organic Workplace Safety X.X%. Global growth had business have would of Global our growth sales would Our ID had and sales of have organic

session. we’d with And provide Q&A listeners? Operator, you that, like please the to our instructions would to start

Operator

Securities. Bank Standby Yes, Staphos from comes of first George Instructions] the of question, sir. [Operator for America of our line which

Your question, please, George.

Cashen Keeler

Yeah. all Thanks morning. Keeler for for actually sitting Hi. the Cashen color. This this in George is

that guess the I discussed April slowed So you quarter. in

April. March things just able to exit able sit color on then to relative rates, are any was in here today, Thanks. wondering as to guess, and fourth quarter? the are to trending February quantify I So maybe I provide how And start trends you if you’re or you

Russell Shaller

Sure. Yeah.

Brady. to at that’s into too amount and hard I fair a one pretty worldwide. do not a that it’s see one is, So I of month, have to significantly from think, just That about take we the is inventory much of the think question happening month-to-month. being But the right is things because volatility distributors talked of what that’s level throughout is industrials our

seen have do and April. exception we see February direct we We seem consumer the a tied be and of little effect our in of same to interestingly, in destocking purchases didn’t point-of-sale more effect most a customer happened the But pretty So of demand robust. with business that bit to March. track electronics, the

not So primary But every last or to the demand be every last seems in holding necessarily up. segment region.

spill we do largely the seeing we is be think, April, into just months, four very saw of is likelihood that we’re premature for and just it that what in to month chain, for of it think headwind can’t May, whether the for little going to in effect past a stocking and see tell. or bit a it’s a or we next a that two is us predict. goes But it course, transitory that, levels will I I a of the headwind which supply

Cashen Keeler

other some a back competitiveness initiatives then, ago, of Yeah. addressing of out items. terms SKU laid roughly, That’s rationalization, it. going helpful And a I you in number color. Got better and year guess, just about

And business the just divested in needs much of opportunities relatedly, understand done? I some more you that, the terms we of here in to more stages quarter, the more do of guess how are So ultimately, us there are can so where be pruning to portfolio? some help you

Russell Shaller

a it is Yeah. nipping is, I it, tuck call that self-funding. say would light I’ll

clearly, or in parts had an opportunity -- growth. become yeah, It bad either we So, our parent we’re office saw sufficiently portfolio. best weren’t really just felt we an as we wasn’t for going some that commoditized longer them shape. as There through were that no the profitable

wasn’t the business, a the to this within off gone was distinct it I a a parent case was it of it’s good fit and access the rest and hence from much but small, better actually businesses it in divested of So really control, very think the reason point. we Brady at

have immediately don’t But, businesses. do climate We the that so. out some SKU top not would I other there. to is and And terms a we’ll what given bottomline. that we level self-funded say again see you’d or that of any either to to an ongoing impact effort anticipate divestitures continue and do rationalization, have the in further dramatic I again,

Cashen Keeler

Great. Thanks.

Operator

question. next our for standby Please you. Thank

comes of next Our line Ferazani from question of the Steve Sidoti.

question, Your please, Steve.

Steve Ferazani

it more think terms it there’s keeping to morning, see it’s as do from about pricing of are XX%. Ann. Congratulations, at than if pricing in moving you tamer if a level, benefits though, with wanted I parts? up Where over was, noted, Good obviously, margin, even still Now remain do some ask gross we moving we tamer and more forward inflation? Russell. you back you you got

Russell Shaller

is Yeah. of of at all you years, I the the mean if that over most last drama look gone. couple

semiconductors the all place or purchase many shipping people Almost the to price time. rates, variance at shipping elevated has need get experienced relaxed. particular, to parts significantly we airfreight that right right switch to the rates, of in with at with along So container

good economic at unless in shock trends, see say, and regions. in there’s elevated, little sort and of stable inflationary or place feel I in to But point, still global we’re like this unusual the one I’ll a system bit another. some some We a of both wages

back margin for product which was a out a a think and balance has It’s I changed the good and gains, mix, pretty pretty for we’re have. largely adjust each a to other pre-pandemic we in good our mix gross deliver I in materials is reasonable raw time. us. feels place to recovered gross all pricing margin place. and to levels historical bit If that trace It like given over efficiency where

Steve Ferazani

When ID guess, would you we are products called the think new given those and major the which the growth, portfolio, about Solutions what in slower three your the MXXX… the of have products, launch the, MXXX, I

Russell Shaller

Yeah.

Steve Ferazani

a replacement in drive that that does growth growth …MXXX, economy? global can cycle, some spur the slowing

Russell Shaller

Yeah.

a super So things. are are there’s and refresh cycles. two into about excited we those refresh Again, launches They product being base. launched

on have we pretty already products. three base installed a So significant all

But does applications. open us for app-based up mobile what more is it

smart the new So generation were not devices of ones. as the as prior

phone printer some segments So to data. it ability does traditionally it rather have the on a of store able opaque to way the keyboarding in it might port that us, open or inputting cloud or up manually to to market been having other imagery be than the particularly the and

the what who -- seen keyboards So additional on products of using you’ll of get people either are in our traditional our those At we’ve notice service we we to from start as share to products. non-consumption we many or users. still the there market time, computers, if aren’t past, used introduce mobile-based same type to

we printers, products Brady with for see anywhere uptick. plays is where given along these see then are size growth an very us, it. consumables immediate from the expect of years to typical the essentially seven four size these for come So for you wouldn’t and that the to and long-term These of years

time, expect technology. us you same forefront at and XXXX. it So say, us of at in, to keeps wouldn’t But see keeps the a pop relevant I’ll the

Steve Ferazani

M&A just up That’s buybacks? Ann, XXX%, conversion on, capital net that terms does Great. allocation position decisions again. How build cash in Great. helpful. cash obviously, to One that starting well of affect over more,

Ann Thornton

we’re Russell approach you and went Steve, our first prioritization the to dividend. our opportunities, organic the which on -- committed just here being products, products new the our fantastic sales new three on, still growth that consistent touched and we’re through quarter with through force the focusing in mean, I both in

We then quarter. shares shares $XX.X and strategic M&A an the XXX,XXX in looking bought from We spent still and standpoint. bought back some million

quarter a inventory us generating I cash yeah, in mean, So, huge big with the driver reduction and… for being

Steve Ferazani

Right.

Ann Thornton

definitely the that’s -- … as as that year basically seeing we finish as we’re out our well. expectation

Steve Ferazani

see. I

Okay. Thanks, Ann. Russell. Thanks,

Ann Thornton

Steve. Thanks,

Operator

Thank you. of comes Keith Housum of Research. next And for the next Please from Northcoast question. our standby our question line

Your line is open, Keith.

Keith Housum

your I appreciate initiatives. Thanks. the guys. in Russell, earlier touching you’re your adding you in morning, I India the growth of year, talked the just quarter. some a remember bit is opportunity. growth on Good Perhaps salespeople on plant second bit the adding little just commentary more in on expand about and this might some of impact of we your including when that topline? and one more little initiatives, be there a see outside of a and that to to an able

Russell Shaller

Yeah.

to weakness of of, and in and electronics. puts I disadvantages guess, saw of extractive balanced almost there in consumer which every is world. and some consequence by industrial the Brady we’re We’ll out So, always we then industries see a perhaps industrial advantages takes. gets it lot country the in India strength are Australia The some is and segments one in in and

Australia post their really our and our we shining And also the But always India. growth doing the last has growing. and been the recently, of lockdown recently is where what with for have keep what our that which in investment geographies in More the be business to profile doing and is and look where they will adding always future, for and star. several fantastic we countries, trends the like India in us, same regions we are -- years our India think at a model consequence more

to real That niche we -- from a products that working countries. that products we or backbone In away a a said host we those and always is some are tied Brady’s the Brady terms And on growth materials number productivity solutions, is. of on taking then of support regions is our what of of the printers have have Without super and really that, of printer have number peripheral the of most operating the part, initiatives, those. in that for working of is driver profit.

I supply So initiatives. availability We well development believe where and in for or COVID, We on at capitalize a and or now, XXXX. slowdown chip good any like a us some growth during our our to global some we positioned through there’s of see product feel efforts. I unless we’re hampered feel point. chip most over two place like don’t of this is we’re went year recession, that kind of definitely behind impediment

Keith Housum

Appreciate Okay. that.

I the look at printers your important we R&D how to your As and business. appreciate are

R&D like get Your the pipeline, you more guys are you going new markets do there? the that’s have see new on you that that into driving refreshes growth R&D thinking less use -- How here. you about more and products of and topline

Russell Shaller

Yeah.

So a actually products of are our non-consumption. lot it’s ironic, but against fighting

who that they that from can are even know us. haven’t So don’t people be automated our automate continues are manufacturers industrial or they and target market to buying to continues

industrial wallet would buy help and to do them we something do do of them more, how largest I pressed we productivity. be Brady. them how bigger get their The from journey, we looked the we them on for that we’re didn’t I if help hard share, to what XXX is, how striving find companies, a how do in at automation get buy is Again, one question

things these Brady areas of All are help. where can

our not and Safety more environment all manufacturing And they’re Workplace if and of you are safer productive but productivity look at printers, the improving products, of aimed ensure Visualization healthcare the and helping towards places. portfolio, environment only the the

but think we there’s -- tremendous share that in So don’t there industry now, this expansion swath opportunity I say huge right at out work that’s can’t there’s there’s wallet of a for I point.

Keith Housum

Got you here. you. I appreciate that. last And question for then

or as is being competitors? for the finally backlogs sales as big fulfilled as a there that feeling your at in As we perhaps benefited quarter, some of was look chain perhaps that from not sales you supply eased

Russell Shaller

didn’t several any we would elected to we shortchange of I ago ensure customers. inventory Yeah. to our say, quarters build

call no, had So of products. effect it, I’ll late shipping backlog we’ve

and our traditionally I you our which and is about order conversion, What or our to say, pre-pandemic -- I’m product sale our feel than that. to days of conversion been going XX% line sales, for less, from has good really more

of this levels, elevated reason of cash It we’re been came quarter but still and pull significant able seeing inventory increased a where inventory they’re our at the of as generation some down we’ve over part cost pre-pandemic. were to they

And are all our products. not change and customers short towards ensuring our aimed of this is distributors

very a at sales. question see backlog of don’t this your So it we answer a point no, as our into longwinded chewing affecting to

Keith Housum

Great. Thanks appreciate I a it. lot.

Operator

Thank you. conference the time, turn for I’d remarks. Russell this Shaller to back closing Sir? At like to

Russell Shaller

for direction position all of Thank which for Perfect. the you Thank and regardless your your a time Brady economy strong in today you. heads. questions. is

growing accelerated the new and our organically pace we’ve introductions. We’re of product

of in our diverse diverse to geographic footprint ability Our overcome increased Brady’s challenges. portfolio products

are very We resilient.

pricing Our approximately generate customers. gross to actions of margins we bring are demonstrates our helping the efficiency and profit which value us XX%,

profits up quarter. was our this flow are outstanding and Our cash

We initiatives us our growth have shareholders that investing economic keep also cycle. to in sheet our balance while allows throughout returning to the a sales funds

On ESG we great the front, progress. making are

our our Brady a value We’re is contributions to making manufacturing transparent friendly stakeholders. working that be provides our footprint ecologically company excited communities. to ensure we’re all Because we’re to to of and strives about the

company optimistic the Even economy may that global though future, our the challenges. and face in overcome these our will I’m team challenges

to some excited At great Day story. detail. point, are we’re our As Investor is the about year, we to I hope in about an looking hold mid-fiscal evident, Brady talk future

call. in may Thank and always, as you day. you your the a for Have Operator, disconnect morning, time Brady. for thank interest great this you your

Operator

concludes participating. you today’s call. Thank conference this And for

disconnect. may You now

Brady (BRC) 18 May 232023 Q3 Earnings call transcript