EX-99.1 2 exhibit991-financials43015.htm THIRD QUARTER FISCAL 2015 PRESS RELEASE
EXHIBIT 99.1
For More Information:
Investor contact: Ann Thornton 414-438-6887
Media contact: Carole Herbstreit 414-438-6882
Brady Corporation Reports Fiscal 2015 Third Quarter Results

• | Third quarter organic revenue growth of 1.7 percent.

• | Non-GAAP earnings from continuing operations per diluted Class A Nonvoting Common Share* of $0.34 in the third quarter of fiscal 2015 compared to $0.43 in the same quarter of the prior year.

• | Net cash provided by operating activities of $28.8 million or 167 percent of net income.

MILWAUKEE (May 21, 2015)--Brady Corporation (NYSE: BRC) (“Brady” or “Company”), a world leader in identification solutions, today reported its financial results for its fiscal 2015 third quarter ended April 30, 2015.
Quarter Ended April 30, 2015 Financial Results:
Sales for the quarter ended April 30, 2015 decreased 6.3 percent to $290.2 million compared to $309.6 million in the third quarter of fiscal 2014. Total organic sales increased 1.7 percent and foreign currency translation decreased sales by 8.0 percent. By segment, organic sales increased 3.0 percent in Identification Solutions and decreased 1.1 percent in Workplace Safety.
Earnings from continuing operations for the quarter ended April 30, 2015 were $17.2 million compared to $20.2 million in the same quarter last year. Non-GAAP earnings from continuing operations* for the current quarter were $17.6 million compared to $22.3 million in the third quarter of fiscal 2014.
Earnings from continuing operations per diluted Class A Nonvoting Common Share were $0.33 for the quarter ended April 30, 2015 compared to $0.39 in the same quarter last year. Non-GAAP earnings from continuing operations per diluted Class A Nonvoting Common Share* for the current quarter were $0.34 compared to $0.43 per share in the third quarter of fiscal 2014.
The Company recorded a gain of $2.8 million, net of tax during the quarter ended April 30, 2015 due to the curtailment of a medical defined benefit plan. This gain is excluded from the reported Non-GAAP earnings from continuing operations* and Non-GAAP earnings from continuing operations per diluted Class A Nonvoting Common Share* for the quarter ended April 30, 2015.
Nine-Month Period Ended April 30, 2015 Financial Results:
Sales for the nine-month period ended April 30, 2015 decreased 2.8 percent to $883.1 million compared to $908.3 million in the same period in fiscal 2014. Total organic sales increased 1.8 percent and the impact of foreign currency translation decreased sales by 4.6 percent. By segment, organic sales increased 2.4 percent in Identification Solutions and increased 0.6 percent in Workplace Safety.

Earnings from continuing operations for the nine-month period ended April 30, 2015 were $44.3 million compared to $48.8 million in the same period in fiscal 2014. Non-GAAP earnings from continuing operations* for the nine-month period were $51.1 million compared to $58.5 million in the same period in fiscal 2014.
Earnings from continuing operations per diluted Class A Nonvoting Common share were $0.86 for the nine-month period ended April 30, 2015 compared to $0.93 in the same period in fiscal 2014. Non-GAAP earnings from continuing operations per diluted Class A Common Share* were $0.99 in the nine-month period ended April 30, 2015 compared to $1.12 in the same period in fiscal 2014.
Commentary and Guidance:
“After just over nine months with Brady, I’m impressed with the dedication of our team as well as the progress we’ve made on our initiatives this fiscal year,” said Brady President and Chief Executive Officer J. Michael Nauman. “I’m confident that we are investing in the right initiatives to deliver shareholder value over the long term. However, we still remain challenged by operational inefficiencies stemming from certain facilities that were recently consolidated, and we are focused on executing business fundamentals to drive organic sales and improve profitability while still achieving efficiency gains over the long term. We are investing in research and development and sales resources in selected industries, as well as building an improved, scalable digital platform that will generate value for Brady and enhance our customer experience.”
“We are focused on controlling non-customer facing selling, general and administrative expenses and driving cash flow improvements. Net cash provided by operating activities was $28.8 million during the quarter ended April 30, 2015, up from $5.3 million during the previous quarter ended January 31, 2015,” said Brady’s Chief Financial Officer Aaron Pearce. “As a result of our customer service and operational challenges due to the facility consolidations as well as less than originally anticipated organic sales in our Workplace Safety business, we do not anticipate our fourth quarter financial results to significantly improve over what we experienced in the third quarter. As such, we expect Non-GAAP earnings from continuing operations per diluted Class A Nonvoting Common Share* to range from $0.30 to $0.40 during our fiscal 2015 fourth quarter ending July 31, 2015.”
A webcast regarding Brady’s fiscal 2015 third quarter financial results will be available at www.bradycorp.com beginning at 9:30 a.m. Central Time today.
Brady Corporation is an international manufacturer and marketer of complete solutions that identify and protect people, products and places. Brady’s products help customers increase safety, security, productivity and performance and include high-performance labels, signs, safety devices, printing systems and software. Founded in 1914, the Company has a diverse customer base in electronics, telecommunications, manufacturing, electrical, construction, medical, aerospace and a variety of other industries. Brady is headquartered in Milwaukee, Wisconsin and as of August 1, 2014, employed approximately 6,400 people in its worldwide businesses. Brady’s fiscal 2014 sales were approximately $1.23 billion. Brady stock trades on the New York Stock Exchange under the symbol BRC. More information is available on the Internet at www.bradycorp.com.

* See accompanying notes for Non-GAAP measures.
###
In this news release, statements that are not reported financial results or other historic information are “forward-looking statements.” These forward-looking statements relate to, among other things, the Company's future financial position, business strategy, targets, projected sales, costs, earnings, capital expenditures, debt levels and cash flows, and plans and objectives of management for future operations.
The use of words such as “may,” “will,” “expect,” “intend,” “estimate,” “anticipate,” “believe,” “should,” “project” or “plan” or similar terminology are generally intended to identify forward-looking statements. These forward-looking statements by their nature address matters that are, to different degrees, uncertain and are subject to risks, assumptions, and other factors, some of which are beyond Brady's control, that could cause actual results to differ materially from those expressed or implied by such forward-looking statements. For Brady, uncertainties arise from: implementation of the healthcare strategy; implementation of the Workplace Safety strategy; future competition; risks associated with restructuring plans; future financial performance of major markets Brady serves, which include, without limitation, telecommunications, hard disk drive, manufacturing, electrical, construction, laboratory, education, governmental, public utility, computer, healthcare and transportation; technology changes and potential security violations to the Company's information technology system; fluctuations in currency rates versus the U.S. dollar; risks associated with international operations; difficulties associated with exports; Brady's ability to develop and successfully market new products; risks associated with identifying, completing, and integrating acquisitions; changes in the supply of, or price for, parts and components; increased price pressure from suppliers and customers; Brady's ability to retain significant contracts and customers; risk associated with loss of key talent; risks associated with divestitures and businesses held for sale; risks associated with obtaining governmental approvals and maintaining regulatory compliance; risk associated with product liability claims; environmental, health and safety compliance costs and liabilities; potential write-offs of Brady's substantial intangible assets; risks associated with our ownership structure; unforeseen tax consequences; Brady's ability to maintain compliance with its debt covenants; increase in our level of debt; and numerous other matters of national, regional and global scale, including those of a political, economic, business, competitive, and regulatory nature contained from time to time in Brady's U.S. Securities and Exchange Commission filings, including, but not limited to, those factors listed in the “Risk Factors” section within Item 1A of Part I of Brady’s Form 10-K for the year ended July 31, 2014.
These uncertainties may cause Brady's actual future results to be materially different than those expressed in its forward-looking statements. Brady does not undertake to update its forward-looking statements except as required by law.

BRADY CORPORATION AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF EARNINGS
(Unaudited; Dollars in thousands, except per share data)

| Three months ended April 30, |  | Nine months ended April 30,
| 2015 |  | 2014 |  | 2015 |  | 2014
Net sales | $ | 290,227 |  |  | $ | 309,577 |  |  | $ | 883,095 |  |  | $ | 908,301 |
Cost of products sold | 149,228 |  |  | 154,457 |  |  | 453,732 |  |  | 452,797 |
Gross margin | 140,999 |  |  | 155,120 |  |  | 429,363 |  |  | 455,504 |
Operating expenses: |  |  |  |  |  |  |
Research and development | 8,928 |  |  | 8,648 |  |  | 27,507 |  |  | 25,675 |
Selling, general and administrative | 102,952 |  |  | 116,666 |  |  | 319,796 |  |  | 340,825 |
Restructuring charges | 4,834 |  |  | 3,039 |  |  | 13,991 |  |  | 14,202 |
Total operating expenses | 116,714 |  |  | 128,353 |  |  | 361,294 |  |  | 380,702 |
Operating income | 24,285 |  |  | 26,767 |  |  | 68,069 |  |  | 74,802 |
Other income and (expense): |  |  |  |  |  |  |
Investment and other income | 434 |  |  | 872 |  |  | 968 |  |  | 1,887 |
Interest expense | (2,503 | ) |  | (3,381 | ) |  | (8,394 | ) |  | (10,777 | )
Earnings from continuing operations before income taxes | 22,216 |  |  | 24,258 |  |  | 60,643 |  |  | 65,912 |
Income tax expense | 5,003 |  |  | 4,074 |  |  | 16,347 |  |  | 17,077 |
Earnings from continuing operations | $ | 17,213 |  |  | $ | 20,184 |  |  | $ | 44,296 |  |  | $ | 48,835 |
Earnings (loss) from discontinued operations, net of income taxes | — |  |  | 3,904 |  |  | (1,915 | ) |  | 15,606 |
Net earnings | $ | 17,213 |  |  | $ | 24,088 |  |  | $ | 42,381 |  |  | $ | 64,441 |
Earnings from continuing operations per Class A Nonvoting Common Share: |  |  |  |  |  |  |
Basic | $ | 0.34 |  |  | $ | 0.39 |  |  | $ | 0.86 |  |  | $ | 0.94 |
Diluted | $ | 0.33 |  |  | $ | 0.39 |  |  | $ | 0.86 |  |  | $ | 0.93 |
Earnings from continuing operations per Class B Voting Common Share: |  |  |  |  |  |  |
Basic | $ | 0.34 |  |  | $ | 0.39 |  |  | $ | 0.85 |  |  | $ | 0.92 |
Diluted | $ | 0.33 |  |  | $ | 0.39 |  |  | $ | 0.85 |  |  | $ | 0.92 |
Earnings (loss) from discontinued operations per Class A Nonvoting Common Share: |  |  |  |  |  |  |
Basic | $ | — |  |  | $ | 0.07 |  |  | $ | (0.03 | ) |  | $ | 0.30 |
Diluted | $ | — |  |  | $ | 0.07 |  |  | $ | (0.03 | ) |  | $ | 0.30 |
Earnings (loss) from discontinued operations per Class B Voting Common Share: |  |  |  |  |  |  |
Basic | $ | — |  |  | $ | 0.07 |  |  | $ | (0.04 | ) |  | $ | 0.30 |
Diluted | $ | — |  |  | $ | 0.07 |  |  | $ | (0.04 | ) |  | $ | 0.29 |
Net earnings per Class A Nonvoting Common Share: |  |  |  |  |  |  |
Basic | $ | 0.34 |  |  | $ | 0.46 |  |  | $ | 0.83 |  |  | $ | 1.24 |
Diluted | $ | 0.33 |  |  | $ | 0.46 |  |  | $ | 0.83 |  |  | $ | 1.23 |
Dividends | $ | 0.20 |  |  | $ | 0.195 |  |  | $ | 0.60 |  |  | $ | 0.585 |
Net earnings per Class B Voting Common Share: |  |  |  |  |  |  |
Basic | $ | 0.34 |  |  | $ | 0.46 |  |  | $ | 0.81 |  |  | $ | 1.22 |
Diluted | $ | 0.33 |  |  | $ | 0.46 |  |  | $ | 0.81 |  |  | $ | 1.21 |
Dividends | $ | 0.20 |  |  | $ | 0.195 |  |  | $ | 0.583 |  |  | $ | 0.568 |
Weighted average common shares outstanding (in thousands): |  |  |  |  |  |  |
Basic | 51,301 |  |  | 51,933 |  |  | 51,275 |  |  | 52,071 |
Diluted | 51,450 |  |  | 52,000 |  |  | 51,370 |  |  | 52,304 |

BRADY CORPORATION AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
(Unaudited; Dollars in thousands)

| April 30, 2015 |  | July 31, 2014
ASSETS |  |  |
Current assets: |  |  |
Cash and cash equivalents | $ | 100,468 |  |  | $ | 81,834 |
Accounts receivable—net | 162,180 |  |  | 177,648 |
Inventories: |  |  |
Finished products | 69,504 |  |  | 73,096 |
Work-in-process | 18,600 |  |  | 17,689 |
Raw materials and supplies | 25,797 |  |  | 22,490 |
Total inventories | 113,901 |  |  | 113,275 |
Assets held for sale | — |  |  | 49,542 |
Prepaid expenses and other current assets | 39,786 |  |  | 41,543 |
Total current assets | 416,335 |  |  | 463,842 |
Other assets: |  |  |
Goodwill | 478,035 |  |  | 515,004 |
Other intangible assets | 78,764 |  |  | 91,014 |
Deferred income taxes | 24,026 |  |  | 27,320 |
Other | 21,047 |  |  | 22,314 |
Property, plant and equipment: |  |  |
Cost: |  |  |
Land | 5,659 |  |  | 7,875 |
Buildings and improvements | 98,156 |  |  | 101,866 |
Machinery and equipment | 280,718 |  |  | 288,409 |
Construction in progress | 7,151 |  |  | 12,500 |
| 391,684 |  |  | 410,650 |
Less accumulated depreciation | 267,906 |  |  | 276,479 |
Property, plant and equipment—net | 123,778 |  |  | 134,171 |
Total | $ | 1,141,985 |  |  | $ | 1,253,665 |
LIABILITIES AND STOCKHOLDERS’ INVESTMENT |  |  |
Current liabilities: |  |  |
Notes payable | $ | 12,001 |  |  | $ | 61,422 |
Accounts payable | 72,792 |  |  | 88,099 |
Wages and amounts withheld from employees | 36,164 |  |  | 38,064 |
Liabilities held for sale | — |  |  | 10,640 |
Taxes, other than income taxes | 6,578 |  |  | 7,994 |
Accrued income taxes | 3,444 |  |  | 7,893 |
Other current liabilities | 33,783 |  |  | 35,319 |
Current maturities on long-term debt | 42,514 |  |  | 42,514 |
Total current liabilities | 207,276 |  |  | 291,945 |
Long-term obligations, less current maturities | 213,839 |  |  | 159,296 |
Other liabilities | 66,903 |  |  | 69,348 |
Total liabilities | 488,018 |  |  | 520,589 |
Stockholders’ investment: |  |  |
Class A nonvoting common stock—Issued 51,261,487 and 51,261,487 shares, respectively and outstanding 47,778,684 and 47,704,196, respectively | 513 |  |  | 513 |
Class B voting common stock—Issued and outstanding, 3,538,628 shares | 35 |  |  | 35 |
Additional paid-in capital | 313,917 |  |  | 311,811 |
Earnings retained in the business | 463,726 |  |  | 452,057 |
Treasury stock—3,482,803 and 3,477,291 shares, respectively of Class A nonvoting common stock, at cost | (93,300 | ) |  | (93,337 | )
Accumulated other comprehensive (loss) income | (27,939 | ) |  | 64,156 |
Other | (2,985 | ) |  | (2,159 | )
Total stockholders’ investment | 653,967 |  |  | 733,076 |
Total | $ | 1,141,985 |  |  | $ | 1,253,665 |

BRADY CORPORATION AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited; Dollars in thousands)

| Nine months ended April 30,
| 2015 |  | 2014
Operating activities: |  |  |
Net earnings | $ | 42,381 |  |  | $ | 64,441 |
Adjustments to reconcile net income to net cash provided by operating activities: |  |  |
Depreciation and amortization | 28,511 |  |  | 33,782 |
Non-cash portion of stock-based compensation expense | 3,556 |  |  | 5,033 |
Non-cash portion of restructuring charges | 3,545 |  |  | 267 |
Loss on sale of business, net | 426 |  |  | — |
Deferred income taxes | (4,533 | ) |  | (8,310 | )
Changes in operating assets and liabilities (net of effects of business acquisitions/divestitures): |  |  |
Accounts receivable | (797 | ) |  | 2,949 |
Inventories | (8,385 | ) |  | (9,435 | )
Prepaid expenses and other assets | 201 |  |  | (2,772 | )
Accounts payable and accrued liabilities | (8,399 | ) |  | (13,027 | )
Income taxes | (3,766 | ) |  | 2,912 |
Net cash provided by operating activities | 52,740 |  |  | 75,840 |
Investing activities: |  |  |
Purchases of property, plant and equipment | (23,545 | ) |  | (29,808 | )
Sale of business, net of cash retained | 6,111 |  |  | — |
Other | 3,927 |  |  | (647 | )
Net cash used in investing activities | (13,507 | ) |  | (30,455 | )
Financing activities: |  |  |
Payment of dividends | (30,712 | ) |  | (30,479 | )
Proceeds from issuance of common stock | 1,591 |  |  | 10,894 |
Purchase of treasury stock | — |  |  | (23,335 | )
Proceeds from borrowing on credit facilities | 82,439 |  |  | 66,187 |
Repayment of borrowing on credit facilities | (17,801 | ) |  | (41,401 | )
Principal payments on debt | (42,514 | ) |  | (42,514 | )
Income tax on the exercise of stock options and deferred compensation distributions, and other | (3,832 | ) |  | (978 | )
Net cash used in financing activities | (10,829 | ) |  | (61,626 | )
Effect of exchange rate changes on cash | (9,770 | ) |  | 3,898 |
Net increase (decrease) in cash and cash equivalents | 18,634 |  |  | (12,343 | )
Cash and cash equivalents, beginning of period | 81,834 |  |  | 91,058 |
Cash and cash equivalents, end of period | $ | 100,468 |  |  | $ | 78,715 |
Supplemental disclosures of cash flow information: |  |  |
Cash paid during the period for: |  |  |
Interest | $ | 9,451 |  |  | $ | 11,417 |
Income taxes, net of refunds | 21,692 |  |  | 18,842 |

BRADY CORPORATION AND SUBSIDIARIES
SEGMENT INFORMATION
(Unaudited; Dollars in thousands)

| Three months ended April 30, |  | Nine months ended April 30,
| 2015 |  | 2014 |  | 2015 |  | 2014
SALES TO EXTERNAL CUSTOMERS |  |  |  |  |  |  |
ID Solutions | $ | 200,786 |  |  | $ | 206,448 |  |  | $ | 604,948 |  |  | $ | 610,726 |
Workplace Safety | 89,441 |  |  | 103,129 |  |  | 278,147 |  |  | 297,575 |
Total | $ | 290,227 |  |  | $ | 309,577 |  |  | $ | 883,095 |  |  | $ | 908,301 |
SALES INFORMATION |  |  |  |  |  |  |
ID Solutions |  |  |  |  |  |  |
Organic | 3.0 | % |  | 4.8 | % |  | 2.4 | % |  | 3.6 | %
Currency | (5.7 | )% |  | (0.2 | )% |  | (3.3 | )% |  | (0.3 | )%
Acquisitions | —% |  |  | —% |  |  | —% |  |  | 12.4 | %
Total | (2.7 | )% |  | 4.6 | % |  | (0.9 | )% |  | 15.7 | %
Workplace Safety |  |  |  |  |  |  |
Organic | (1.1 | )% |  | (1.9 | )% |  | 0.6 | % |  | (6.3 | )%
Currency | (12.2 | )% |  | 0.1 | % |  | (7.1 | )% |  | (0.5 | )%
Acquisitions | —% |  |  | —% |  |  | —% |  |  | —% |
Total | (13.3 | )% |  | (1.8 | )% |  | (6.5 | )% |  | (6.8 | )%
Total Company |  |  |  |  |  |  |
Organic | 1.7 | % |  | 2.5 | % |  | 1.8 | % |  | (0.1 | )%
Currency | (8.0 | )% |  | (0.2 | )% |  | (4.6 | )% |  | (0.4 | )%
Acquisitions | —% |  |  | —% |  |  | —% |  |  | 7.7 | %
Total | (6.3 | )% |  | 2.3 | % |  | (2.8 | )% |  | 7.2 | %
SEGMENT PROFIT |  |  |  |  |  |  |
ID Solutions | $ | 41,614 |  |  | $ | 44,302 |  |  | $ | 120,800 |  |  | $ | 132,795 |
Workplace Safety | 12,292 |  |  | 14,771 |  |  | 40,607 |  |  | 47,813 |
Total | $ | 53,906 |  |  | $ | 59,073 |  |  | $ | 161,407 |  |  | $ | 180,608 |
SEGMENT PROFIT AS A PERCENT OF SALES |  |  |  |  |  |  |
ID Solutions | 20.7 | % |  | 21.5 | % |  | 20.0 | % |  | 21.7 | %
Workplace Safety | 13.7 | % |  | 14.3 | % |  | 14.6 | % |  | 16.1 | %
Total | 18.6 | % |  | 19.1 | % |  | 18.3 | % |  | 19.9 | %

| Three months ended April 30, |  | Nine months ended April 30,
| 2015 |  | 2014 |  | 2015 |  | 2014
Total segment profit | $ | 53,906 |  |  | $ | 59,073 |  |  | $ | 161,407 |  |  | $ | 180,608 |
Unallocated amounts: |  |  |  |  |  |  |
Administrative costs | (24,787 | ) |  | (29,267 | ) |  | (79,347 | ) |  | (91,604 | )
Restructuring charges | (4,834 | ) |  | (3,039 | ) |  | (13,991 | ) |  | (14,202 | )
Investment and other income | 434 |  |  | 872 |  |  | 968 |  |  | 1,887 |
Interest expense | (2,503 | ) |  | (3,381 | ) |  | (8,394 | ) |  | (10,777 | )
Earnings from continuing operations before income taxes | $ | 22,216 |  |  | $ | 24,258 |  |  | $ | 60,643 |  |  | $ | 65,912 |

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.

| Earnings from Continuing Operations Before Income Taxes Excluding Certain Items:
| Brady is presenting the Non-GAAP measure "Earnings from Continuing Operations 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 sustainable 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 Earnings from Continuing Operations Before Income Taxes to Earnings from Continuing Operations Before Income Taxes Excluding Certain Items:
|  |  |  | Three months ended April 30, |  | Nine months ended April 30,
|  |  |  | 2015 |  | 2014 |  | 2015 |  | 2014
| Earnings from Continuing Operations Before Income Taxes (GAAP Measure) | $ | 22,216 |  |  | $ | 24,258 |  |  | $ | 60,643 |  |  | $ | 65,912 |
|  | Restructuring charges | 4,834 |  |  | 3,039 |  |  | 13,991 |  |  | 14,202 |
|  | Postretirement benefit plan curtailment gain | (4,296 | ) |  | — |  |  | (4,296 | ) |  | — |
| Earnings from Continuing Operations Before Income Taxes Excluding Certain Items (non-GAAP measure) | $ | 22,754 |  |  | $ | 27,297 |  |  | $ | 70,338 |  |  | $ | 80,114 |

Income Taxes on Continuing Operations Excluding Certain Items:
Brady is presenting the Non-GAAP measure "Income Taxes on Continuing Operations 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 sustainable 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 Income Taxes on Continuing Operations to Income Taxes on Continuing Operations Excluding Certain Items:
|  |  | Three months ended April 30, |  | Nine months ended April 30,
|  |  | 2015 |  | 2014 |  | 2015 |  | 2014
Income Taxes on Continuing Operations (GAAP measure) | $ | 5,003 |  |  | $ | 4,074 |  |  | $ | 16,347 |  |  | $ | 17,077 |
| Restructuring charges | 1,636 |  |  | 968 |  |  | 4,406 |  |  | 4,584 |
| Postretirement benefit plan curtailment gain | (1,504 | ) |  | — |  |  | (1,504 | ) |  | — |
Income Taxes on Continuing Operations Excluding Certain Items (non-GAAP measure) | $ | 5,135 |  |  | $ | 5,042 |  |  | $ | 19,249 |  |  | $ | 21,661 |

| Net Earnings from Continuing Operations Excluding Certain Items: |  |
| Brady is presenting the Non-GAAP measure "Net Earnings from Continuing Operations 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 sustainable 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 Net Earnings from Continuing Operations to Net Earnings from Continuing Operations Excluding Certain Items:
|  |  |  | Three months ended April 30, |  | Nine months ended April 30,
|  | 2015 |  | 2014 |  | 2015 |  | 2014
| Net Earnings from Continuing Operations (GAAP measure) | $ | 17,213 |  |  | $ | 20,184 |  |  | $ | 44,296 |  |  | $ | 48,835 |
|  | Restructuring charges | 3,198 |  |  | 2,071 |  |  | 9,585 |  |  | 9,618 |
|  | Postretirement benefit plan curtailment gain | (2,792 | ) |  | — |  |  | (2,792 | ) |  | — |
| Net Earnings from Continuing Operations Excluding Certain Items (non-GAAP measure) | $ | 17,619 |  |  | $ | 22,255 |  |  | $ | 51,089 |  |  | $ | 58,453 |

NON-GAAP MEASURES
(Unaudited; Dollars in Thousands, Except Per Share Amounts)

Net Earnings from Continuing Operations Per Diluted Class A Nonvoting Common Share Excluding Certain Items:
Brady is presenting the Non-GAAP measure "Net Earnings from Continuing Operations Per Diluted Class A Nonvoting Common Share 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 sustainable 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 Net Earnings from Continuing Operations Per Diluted Class A Nonvoting Common Share to Net Earnings from Continuing Operations Per Diluted Class A Nonvoting Common Share Excluding Certain Items:
|  |  | Three Months Ended April 30, |  | Nine Months Ended April 30,
| 2015 |  | 2014 |  | 2015 |  | 2014
Net Earnings from Continuing Operations Per Diluted Class A Nonvoting Common Share (GAAP measure) | $ | 0.33 |  |  | $ | 0.39 |  |  | $ | 0.86 |  |  | $ | 0.93 |
| Restructuring charges | 0.06 |  |  | 0.04 |  |  | 0.19 |  |  | 0.18 |
| Postretirement benefit plan curtailment gain | (0.05 | ) |  | — |  |  | (0.05 | ) |  | — |
Net Earnings from Continuing Operations Per Diluted Class A Nonvoting Common Share Excluding Certain Items (non-GAAP measure) | $ | 0.34 |  |  | $ | 0.43 |  |  | $ | 0.99 |  |  | $ | 1.12 |