Brady Corp. Q4 Loss Narrows; Increases Share Buyback Program - Quick Facts

(RTTNews) - Brady Corp. (BRC) reported that its net loss for its fiscal 2015 fourth quarter narrowed to $39.39 million from $110.41 million in the prior year. Net loss per Class A Nonvoting Common Share narrowed to from $0.77 from $2.15 in the previous year.

During the fourth quarter ended July 31, 2015, the Company recorded an impairment charge of $46.9 million primarily related to the write down of intangible assets in the Company's Workplace Safety segment. These impairment charges were primarily driven by sales and profitability reductions and reduced forecasts for future sales and profitability growth.

In the fourth quarter of last year, the Company also incurred an impairment charge of $148.6 million related to its PeopleID reporting unit.

The Company's loss from continuing operations per diluted Class A Nonvoting Common Share was $0.77 for the quarter ended July 31, 2015 compared to a loss of $1.89 in the same quarter last year.

Non-GAAP earnings from continuing operations per Class A Nonvoting Common Share for the latest-quarter were $0.28 compared to earnings of $0.41 per share in the fourth quarter of fiscal 2014.

Sales for the quarter ended July 31, 2015 decreased 8.9 percent to $288.6 million compared to $316.7 million in the fourth quarter of fiscal 2014. Total organic sales decreased 1.2 percent and foreign currency translation decreased sales by 7.7 percent.

Analysts polled by Thomson Reuters expected the company to report earnings of $0.34 per share and revenues of $295.70 million for the quarter. Analysts' estimates typically exclude special items.

On September 10, 2015, Brady's Board of Directors authorized an increase in the Company's share buyback program, authorizing the repurchase of up to a total of two million shares of the Company's Class A Common Stock, inclusive of the shares in the existing share buyback program.

The Company anticipates approximately flat to low single-digit organic sales growth in fiscal 2016, with organic sales growth in both the Identification Solutions and Workplace Safety businesses increasing as the year progresses. Brady expects earnings from continuing operations per diluted Class A Nonvoting Common Share of between $1.10 and $1.30. Analysts expect the company to report earnings of $ 1.56 per share and revenues of $1.18 billion for fiscal year 2016.

The guidance was based on exchange rates as of July 31, 2015, a full-year income tax rate in the upper 20 percent range, capital expenditures moderating back to the Company's historical norm of approximately $25 million, and depreciation and amortization of approximately $40 million.