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Media contact: Kate Venne 414-358-5176BRADY CORPORATION AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF INCOME (Unaudited; Dollars in thousands, except per share data) Three months ended April 30, Nine months ended April 30, 2023 2022 2023 2022 Net sales$337,116 $338,551 $985,934 $978,081 Cost of goods sold 167,425 174,525 504,539 509,705 Gross margin 169,691 164,026 481,395 468,376 Operating expenses: Research and development 15,715 14,923 45,025 42,795 Selling, general and administrative 90,975 96,214 273,202 285,485 Total operating expenses 106,690 111,137 318,227 328,280 Operating income 63,001 52,889 163,168 140,096 Other income (expense): Investment and other income (expense) 785 (1,308) 1,596 (1,343) Interest expense (753) (329) (2,886) (763) Income before income taxes 63,033 51,252 161,878 137,990 Income tax expense 14,981 11,198 36,399 29,075 Net income$48,052 $40,054 $125,479 $108,915 Net income per Class A Nonvoting Common Share: Basic$0.97 $0.78 $2.52 $2.11 Diluted$0.96 $0.78 $2.51 $2.09 Net income per Class B Voting Common Share: Basic$0.97 $0.78 $2.51 $2.09 Diluted$0.96 $0.78 $2.49 $2.08 Weighted average common shares outstanding: Basic 49,653 51,326 49,755 51,700 Diluted 50,001 51,568 50,033 52,055 BRADY CORPORATION AND SUBSIDIARIES CONSOLIDATED BALANCE SHEETS (Dollars in thousands) April 30, 2023 July 31, 2022 (Unaudited) ASSETS Current assets: Cash and cash equivalents$135,047 $114,069 Accounts receivable, net of allowance for credit losses of $8,417 and $7,355, respectively 184,907 183,233 Inventories 182,809 190,023 Prepaid expenses and other current assets 14,020 10,743 Total current assets 516,783 498,068 Property, plant and equipment—net 139,747 139,511 Goodwill 590,684 586,832 Other intangible assets 65,210 74,028 Deferred income taxes 15,124 15,881 Operating lease assets 27,378 31,293 Other assets 21,840 21,719 Total$1,376,766 $1,367,332 LIABILITIES AND STOCKHOLDERS’ EQUITY Current liabilities: Accounts payable$74,745 $81,116 Accrued compensation and benefits 65,789 76,764 Taxes, other than income taxes 13,246 12,539 Accrued income taxes 5,103 8,294 Current operating lease liabilities 14,196 15,003 Other current liabilities 63,357 61,458 Total current liabilities 236,436 255,174 Long-term debt 50,849 95,000 Long-term operating lease liabilities 14,573 19,143 Other liabilities 79,812 86,717 Total liabilities 381,670 456,034 Stockholders’ equity: Common stock: Class A nonvoting common stock—Issued 51,261,487 shares, and outstanding 45,935,672 and 46,370,708 shares, respectively 513 513 Class B voting common stock—Issued and outstanding, 3,538,628 shares 35 35 Additional paid-in capital 350,758 345,266 Retained earnings 983,694 892,417 Treasury stock—5,325,815 and 4,890,779 shares, respectively, of Class A nonvoting common stock, at cost (244,503) (217,856)Accumulated other comprehensive loss (95,401) (109,077)Total stockholders’ equity 995,096 911,298 Total$1,376,766 $1,367,332 BRADY CORPORATION AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited; Dollars in thousands) Nine months ended April 30, 2023 2022 Operating activities: Net income$125,479 $108,915 Adjustments to reconcile net income to net cash provided by operating activities: Depreciation and amortization 24,522 25,448 Stock-based compensation expense 6,427 9,153 Gain on sale of business (3,770) — Deferred income taxes (5,947) 2,858 Other (1,336) (1,080) Changes in operating assets and liabilities: Accounts receivable 1,744 (26,438) Inventories 9,279 (47,784) Prepaid expenses and other assets (3,429) (932) Accounts payable and accrued liabilities (19,704) (5,584) Income taxes (3,404) 680 Net cash provided by operating activities 129,861 65,236 Investing activities: Purchases of property, plant and equipment (12,912) (22,130) Sale of business 8,000 — Other 11 59 Net cash used in investing activities (4,901) (22,071) Financing activities: Payment of dividends (34,202) (34,701) Proceeds from exercise of stock options 4,091 663 Payments for employee taxes withheld from stock-based awards (1,965) (5,070) Purchase of treasury stock (29,774) (84,930) Proceeds from borrowing on credit agreement 102,916 155,216 Repayment of borrowing on credit agreement (147,067) (116,216) Other 66 3,276 Net cash used in financing activities (105,935) (81,762) Effect of exchange rate changes on cash and cash equivalents 1,953 (5,670) Net increase (decrease) in cash and cash equivalents 20,978 (44,267) Cash and cash equivalents, beginning of period 114,069 147,335 Cash and cash equivalents, end of period$135,047 $103,068 BRADY CORPORATION AND SUBSIDIARIES SEGMENT INFORMATION (Unaudited; Dollars in thousands) Three months ended April 30, Nine months ended April 30, 2023 2022 2023 2022 NET SALES Americas & Asia$222,813 $222,579 $661,375 $643,292 Europe & Australia 114,303 115,972 324,559 334,789 Total$337,116 $338,551 $985,934 $978,081 SALES INFORMATION Americas & Asia Organic 1.2% 9.2% 4.0% 10.7% Currency (0.8)% (0.1)% (1.1)% 0.3% Divestiture (0.3)% —% (0.1)% —% Acquisition —% 8.6% —% 8.3% Total 0.1% 17.7% 2.8% 19.3% Europe & Australia Organic 3.4% 8.4% 7.0% 7.6% Currency (4.8)% (8.1)% (10.1)% (4.6)% Acqusition —% 8.7% —% 8.8% Total (1.4)% 9.0% (3.1)% 11.8% Total Company Organic 1.9% 9.0% 5.0% 9.6% Currency (2.1)% (3.0)% (4.1)% (1.5)% Divestiture (0.2)% —% (0.1)% —% Acquisition —% 8.6% —% 8.5% Total (0.4)% 14.6% 0.8% 16.6% SEGMENT PROFIT Americas & Asia$49,192 $45,021 $130,511 $114,659 Europe & Australia 17,099 16,050 47,316 46,165 Total$66,291 $61,071 $177,827 $160,824 SEGMENT PROFIT AS A PERCENT OF NET SALES Americas & Asia 22.1% 20.2% 19.7% 17.8% Europe & Australia 15.0% 13.8% 14.6% 13.8% Total 19.7% 18.0% 18.0% 16.4% Three months ended April 30, Nine months ended April 30, 2023 2022 2023 2022 Total segment profit$66,291 $61,071 $177,827 $160,824 Unallocated amounts: Administrative costs (7,060) (8,182) (18,429) (20,728) Gain on sale of business 3,770 - 3,770 - Investment and other income (expense) 785 (1,308) 1,596 (1,343) Interest expense (753) (329) (2,886) (763) Income before income taxes$63,033 $51,252 $161,878 $137,990 GAAP to NON-GAAP MEASURES (Unaudited; Dollars in Thousands, Except Per Share Amounts) In accordance with the U.S. Securities and Exchange Commission’s Regulation G, the following provides definitions of the non-GAAP measures used in the earnings release and the reconciliation to the most closely related GAAP measure. Income Before Income Taxes Excluding Certain Items: Brady is presenting the non-GAAP measure, "Income Before Income Taxes Excluding Certain Items." This is not a calculation based upon GAAP. The amounts included in this non-GAAP measure are derived from amounts included in the Consolidated Financial Statements and supporting footnote disclosures. We do not view these items to be part of our ongoing results. We believe this profit measure provides an important perspective of underlying business trends and results and provides a more comparable measure from year to year. The table below provides a reconciliation of the GAAP measure of Income before income taxes to the non-GAAP measure of Income Before Income Taxes Excluding Certain Items: Three months ended April 30, Nine months ended April 30, 2023 2022 2023 2022 Income before income taxes$63,033 $51,252 $161,878 $137,990 Amortization expense 2,461 3,735 9,350 11,291 Gain on sale of business (3,770) - (3,770) - Other non-routine charges - 1,841 - 1,841 Income Before Income Taxes Excluding Certain Items (non-GAAP measure)$61,724 $56,828 $167,458 $151,122 Income Tax Expense Excluding Certain Items: Brady is presenting the non-GAAP measure, "Income Tax Expense Excluding Certain Items." This is not a calculation based upon GAAP. The amounts included in this non-GAAP measure are derived from amounts included in the Consolidated Financial Statements and supporting footnote disclosures. We do not view these items to be part of our ongoing results. We believe this measure provides an important perspective of underlying business trends and results and provides a more comparable measure from year to year. The table below provides a reconciliation of the GAAP measure of Income tax expense to the non-GAAP measure of Income Tax Expense Excluding Certain Items: Three months ended April 30, Nine months ended April 30, 2023 2022 2023 2022 Income tax expense (GAAP measure)$14,981 $11,198 $36,399 $29,075 Amortization expense 569 885 2,203 2,672 Gain on sale of business (1,431) - (1,431) - Other non-routine charges - 496 - 496 Income Tax Expense Excluding Certain Items (non-GAAP measure)$14,119 $12,579 $37,171 $32,243 Net Income Excluding Certain Items: Brady is presenting the non-GAAP measure, "Net Income Excluding Certain Items." This is not a calculation based upon GAAP. The amounts included in this non-GAAP measure are derived from amounts included in the Consolidated Financial Statements and supporting footnote disclosures. We do not view these items to be part of our ongoing results. We believe this measure provides an important perspective of underlying business trends and results and provides a more comparable measure from year to year. The table below provides a reconciliation of the GAAP measure of Net income to the non-GAAP measure of Net Income Excluding Certain Items: Three months ended April 30, Nine months ended April 30, 2023 2022 2023 2022 Net income (GAAP measure)$48,052 $40,054 $125,479 $108,915 Amortization expense 1,892 2,850 7,147 8,619 Gain on sale of business (2,339) - (2,339) - Other non-routine charges - 1,345 - 1,345 Net Income Excluding Certain Items (non-GAAP measure)$47,605 $44,249 $130,287 $118,879 Diluted EPS Excluding Certain Items: Brady is presenting the non-GAAP measure, "Diluted EPS Excluding Certain Items." This is not a calculation based upon GAAP. The amounts included in this non-GAAP measure are derived from amounts included in the Consolidated Financial Statements. We do not view these items to be part of our ongoing results. We believe this measure provides an important perspective of underlying business trends and results and provides a more comparable measure from year to year. The table below provides a reconciliation of the GAAP measure of Net income per Class A Nonvoting Common Share to the non-GAAP measure of Diluted EPS Excluding Certain Items: Three months ended April 30, Nine months ended April 30, 2023 2022 2023 2022 Net income per Class A Nonvoting Common Share (GAAP measure)$0.96 $0.78 $2.51 $2.09 Amortization expense 0.04 0.06 0.14 0.17 Gain on sale of business (0.05) - (0.05) - Other non-routine charges - 0.03 - 0.03 Diluted EPS Excluding Certain Items (non-GAAP measure)$0.95 $0.86 $2.60 $2.28 Diluted EPS Excluding Certain Items Guidance: Fiscal 2023 Expectations Low High Earnings per diluted Class A Common Share (GAAP measure) $3.32 $3.47 Amortization expense 0.18 0.18 Gain on sale of business (0.05) (0.05) Diluted EPS Excluding Certain Items (non-GAAP measure) $3.45 $3.60