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Brady Corporation (BRC-0.67%) has submitted its 10-Q filing for the quarterly period ended October 31, 2024.
The filing includes financial statements for the quarter, showing an increase in net sales to $377.1 million from $332.0 million in the same quarter the previous year. This increase is attributed to organic sales growth, acquisitions, and favorable foreign currency translation.
Gross margin for the quarter was $189.7 million, representing 50.3% of sales, compared to 51.7% in the same quarter of the previous year. The decrease in gross margin percentage is due to acquisition-related costs and lower margin sales from acquired businesses.
Research and development expenses increased to $18.9 million from $15.7 million, primarily due to the acquisition of Gravotech and increased R&D headcount.
Selling, general, and administrative expenses rose to $111.8 million from $96.3 million, largely due to amortization expenses and increased costs from acquired businesses.
Operating income decreased to $58.9 million from $59.7 million, impacted by acquisition-related costs and purchase accounting adjustments.
Net income for the quarter was $46.8 million, down from $47.2 million in the previous year. The company's effective income tax rate was 20.4%, consistent with the previous year's rate of 20.5%.
Cash provided by operating activities was $23.4 million, while cash used in investing activities was $147.9 million, primarily due to acquisitions. Cash provided by financing activities was $18.3 million, reflecting increased borrowings to fund acquisitions.
Brady reports maintaining compliance with its financial covenants under its credit agreement, with a debt to EBITDA ratio of 0.4 to 1.0.
The company continues to focus on integrating recent acquisitions and enhancing its strategic position to drive long-term sales growth.
This content was summarized by generative artificial intelligence using public filings retrieved from SEC.gov. The original data was derived from the Brady Corporation quarterly 10-Q report dated November 18, 2024. To report an error, please email earnings@qz.com.