| Over a month ago | ||||
Management holds a… Management holds a conference call to discuss the acquisition of The Code Corporation will be held on June 18 at 10 am. Webcast Link | ||||
Management holds a… Management holds a conference call to discuss the acquisition of The Code Corporation will be held on June 18 at 10 am. Webcast Link | ||||
Management holds a… Management holds a conference call to discuss the acquisition of The Code Corporation will be held on June 18 at 10 am. Webcast Link | ||||
Brady announced that it… Brady announced that it has acquired The Code Corporation for approximately $173M. Brady will fund the transaction with cash on hand as well as with borrowings on its existing revolving line of credit. Code has forecasted sales of approximately $50M for Brady's first full fiscal year of ownership, which is for the year ending July 31, 2022. Brady anticipates EBITDA from Code of approximately $10M for the first full fiscal year ending July 31, 2022, inclusive of integration-related costs. "Code is a highly-regarded brand for its offering of durable high-performance barcode scanners," said Brady's President and CEO, J. Michael Nauman. "The addition of Code's high-quality complementary product offering to Brady's already existing leadership position in niche application industrial printers and materials will accelerate Brady's expansion in the industrial track-and-trace market. Once integrated, our complete service offering in these faster growing end markets should accelerate Brady's overall growth profile. We also intend to increase investments in research and development and increase Code's addressable market through Brady's global footprint throughout Europe, Asia and the Americas." | ||||
Wells Fargo analyst… Wells Fargo analyst Michael McGinn double upgraded Brady to Overweight from Underweight with a price target of $70, up from $50. The shares are trading at 19 times next year's earnings but its operating margins have improved every year since fiscal 2016, "deeming valuation too compelling to ignore," McGinn tells investors in a research note. The analyst believes "business transformation catalysts" favor shares of Brady. | ||||
Wells Fargo analyst… Wells Fargo analyst Michael McGinn double upgraded Brady to Overweight from Underweight with a $70 price target. | |
Brady Corporation… Brady Corporation announced that Conrad Goodkind retired effective May 21, 2021. Beginning as securities counsel for Brady's initial public offering in 1984, serving as the Company's outside counsel for many years and ultimately serving as Chairman of the Board, Goodkind's dedicated service played a key role in the Company's success. Brady's Board of Directors elected current director, Bradley Richardson, to replace Goodkind as Chairman upon his retirement. Richardson has been a member of the Company's Board of Directors since 2007. | |
Brady Corporation… Brady Corporation announced that it has acquired Magicard Limited for approximately GBP 42M. Brady Corporation will fund the transaction with cash held outside the United States. Magicard, with forecasted sales of approximately GBP 23M for the year ending December 31, 2021, is a pioneer of ID card-printing technologies with a full range of desktop devices to meet a wide variety of local, on-demand, secure ID card issuance requirements. Magicard was founded in 1992 and is headquartered in Weymouth, United Kingdom. The Company specializes in identification card printers with high-resolution, full-color image capabilities, built-in card security features and the ability to encode smart cards. In addition to card printers, Magicard offers TrustID desktop ID card issuance software and Securicards smart cards. The Company's products are sold into a variety of end markets and industries. Brady is a leader in high-performance niche application industrial printers and materials, and the acquisition of Magicard adds rigid card printing and encoding capabilities to Brady's extensive printer offering. Excluding one-time acquisition-related costs, Brady expects this acquisition to be slightly accretive to earnings per diluted share for the remainder of the fiscal year ending July 31, 2021. | |
The Company is increasing… The Company is increasing its full year fiscal 2021 earnings per diluted Class A Nonvoting Common Share guidance from its previous range of $2.48 to $2.58 to a range of $2.58 to $2.68. This equates to diluted earnings per share in the range of $0.64 to $0.74 in the fourth quarter of the fiscal year ending July 31, 2021, which would represent an approximate increase of 20 percent to 40 percent over the fourth quarter of fiscal 2020. The Company also expects organic sales growth to be in the low-teen percentages in the fourth quarter of fiscal 2021 when compared to the fourth quarter of the prior year. This guidance is based on foreign currency exchange rates as of April 30, 2021 and assumes a continued economic recovery. | |
Reports Q1 revenue… Reports Q1 revenue $295.5M, consensus $277.48M. "Throughout the pandemic, we continued to invest in sales and marketing as well as research and development. These investments, coupled with improved market conditions, helped us to return to organic sales growth this quarter," said Brady's President and Chief Executive Officer, J. Michael Nauman. "Our outlook is positive. We expect accelerated organic sales growth in our fourth quarter and into the future. Last month, we launched an all-cash tender offer in Finland to acquire all of the outstanding shares of Nordic ID Oyj. The acquisition of Nordic ID allows Brady to diversify and expand our presence in RFID into attractive new markets with faster long-term organic growth rates as we strengthen our product portfolio and service offerings. Brady is in a strong financial position and we are using this strong financial position to set ourselves up for strong and sustainable growth as we move past this pandemic." |