Brady Corp (BRC) 2025 Q1 法說會逐字稿

Good day and thank you for standing by. Welcome to the 2025 first-quarter Brady Corporation earnings conference call. (Operator Instructions) Please be advised that today's conference is being recorded.

美好的一天，感謝您的支持。歡迎參加 Brady Corporation 2025 年第一季財報電話會議。（操作員指示）請注意，今天的會議正在錄製中。

I'd like to hand the conference over to your first speaker today Ann Thornton, CFO. Please go ahead.

我想將會議交給今天的第一位發言人，財務長安桑頓 (Ann Thornton)。請繼續。

Thank you. Good morning and welcome to the Brady Corporation fiscal 2025 first quarter earnings conference call. The slides for this morning's call are located on our website at www.bradycorp.com/investors. We will begin our prepared remarks on slide number three.

謝謝。早安，歡迎參加布雷迪公司 2025 財年第一季財報電話會議。今天早上電話會議的幻燈片位於我們的網站 www.bradycorp.com/investors 上。我們將從第三張投影片開始我們準備好的演講。

Please note that during this call, we may make comments about forward-looking information. Words such as expect, will, may believe, forecast and anticipate are just a few examples of words, identifying a forward-looking statement.

請注意，在此次電話會議期間，我們可能會對前瞻性資訊發表評論。期望、將、可能相信、預測和預期等詞語只是識別前瞻性陳述的幾個詞語示例。

It's important to note that forward-looking information is subject to various risk factors and uncertainties which could significantly impact expected results. Risk factors were noted in our news release this morning and in Brady's fiscal 2024 form 10-K which was filed with the SEC in September.

值得注意的是，前瞻性資訊受到各種風險因素和不確定性的影響，可能會嚴重影響預期結果。我們今天早上的新聞稿以及 Brady 於 9 月向 SEC 提交的 2024 財年 10-K 表格中都提到了風險因素。

Also, please note that this teleconference is copyrighted by Brady Corporation and may not be rebroadcast without the consent of Brady. We will be recording this call and broadcasting it on the internet. As such your participation in the Q&A session will constitute your consent to being recorded.

另請注意，本次電話會議的版權歸 Brady Corporation 所有，未經 Brady 同意不得轉播。我們將錄製這次通話並在網路上廣播。因此，您參與問答環節即表示您同意被記錄。

I'll now turn the call over to Brady's President and Chief Executive Officer Russell Shaller. Russell?

現在我將把電話轉交給布雷迪總裁兼執行長 Russell Shaller。拉塞爾？

Thank you, Ann and thanks everyone for joining us today. This morning, we released our fiscal 2025 first quarter financial results and I'm pleased to report another strong quarter and a great start to 2025.

謝謝你，安，也謝謝大家今天加入我們。今天早上，我們發布了 2025 財年第一季財務業績，我很高興地報告另一個強勁的季度以及 2025 年的良好開端。

We grew organic sales 3.6%, we grew adjusted pre tax earnings 11% and we grew adjusted earnings per share of 12%. Our Americas and Asia region did an excellent job with organic sales growth of 5.1% and our Europe and Australia region returned to growth in this quarter.

我們的有機銷售額成長了 3.6%，調整後稅前收益成長了 11%，調整後每股盈餘成長了 12%。我們的美洲和亞洲地區表現出色，有機銷售額成長 5.1%，歐洲和澳洲地區在本季恢復成長。

Our teams executed incredibly well and delivered great results in light of current macro conditions. This quarter, we launched a product that bundles one of our top selling printers, the i5300 with our V4500 barcode scanner.

鑑於當前的宏觀條件，我們的團隊執行得非常出色，並且取得了出色的成果。本季度，我們推出了一款將我們最暢銷的印表機 i5300 與 V4500 條碼掃描器捆綁在一起的產品。

These two products allow our customers to seamlessly connect to scanner and a printer which allows for fast and efficient scanning and printing with zero set up, zero adjustments and zero wasted labels. This is the first bundled set of products incorporating technology we acquired with the code corp acquisition with Brady's printing technology and specialty adhesive materials.

這兩款產品使我們的客戶能夠無縫連接到掃描器和印表機，從而實現快速高效的掃描和列印，並實現零設定、零調整和零浪費標籤。這是第一套捆綁產品，結合了我們透過收購 Code 公司而獲得的技術以及 Brady 的印刷技術和特殊黏合材料。

Our proprietary cortex decoder technology equips our scanners with the ability to easily read a wide variety of different barcodes from incredibly small barcodes or barcodes on hard to read surfaces that are shining or curved.

我們專有的皮層解碼器技術使我們的掃描器能夠輕鬆讀取各種不同的條碼，無論是極其小的條碼還是難以讀取的閃亮或彎曲表面上的條碼。

And our automated keyboard device and dynamic user interface allows the user to go from set up to first scan in just seconds. These types of integrated solutions are a primary focus of our R&D efforts which are designed to provide our customers with products to solve their problems and make their everyday jobs easier.

我們的自動鍵盤裝置和動態使用者介面允許使用者在短短幾秒鐘內從設定到首次掃描。這些類型的整合解決方案是我們研發工作的主要重點，旨在為我們的客戶提供產品來解決他們的問題並讓他們的日常工作變得更輕鬆。

This also marks the first quarter following our acquisition of Gravotech. We're looking forward to adding their laser and mechanical part marking capabilities to our existing portfolio of identification products. Brady's long term goal is to create an ecosystem of interoperable part marking and reading solutions for our customers.

這也是我們收購 Gravotech 後的第一季。我們期待將他們的雷射和機械零件打標功能添加到我們現有的識別產品組合中。Brady 的長期目標是為我們的客戶創建一個可互通的零件標記和讀取解決方案的生態系統。

This quarter was an excellent start to 2025. We continue to engage with our diverse set of customers to create niche solutions tailored to their needs. With no single product or customer responsible for a material economic impact to Brady. We have the ability to emphasize growing markets and invest in our most promising technologies. This has enabled Brady to thrive for the last 110 years.

本季是 2025 年的良好開端。我們繼續與多元化的客戶合作，創建適合他們需求的利基解決方案。沒有任何單一產品或顧客對 Brady 造成重大經濟影響。我們有能力強調不斷成長的市場並投資我們最有前景的技術。這使得布雷迪在過去 110 年裡一直蓬勃發展。

And I'll turn the call over to Ann to provide more details on our financial results. Ann?

我會將電話轉給安，以提供有關我們財務業績的更多詳細資訊。安？

Thank you, Russell. We had a very strong quarter and a great start to 2025. We grew organic sales 3.6% in the quarter, which was led by our Americas and Asia region with excellent growth of 5.1%. While our Europe and Australia region returned to growth this quarter at 0.7%.

謝謝你，拉塞爾。我們度過了一個非常強勁的季度，並為 2025 年開了個好頭。本季我們的有機銷售額成長了 3.6%，其中美洲和亞洲地區的銷售額成長了 5.1%，表現出色。而我們的歐洲和澳洲地區本季恢復成長 0.7%。

We also reported strong growth in our adjusted pre tax income as well as our adjusted diluted earnings per share in the quarter, while funding an increase in R&D and expanding our sales force. And we finished in a net cash position even after funding acquisitions. So we're off to a great start this year.

我們也報告了本季調整後稅前收入以及調整後稀釋每股收益的強勁成長，同時為增加研發和擴大銷售隊伍提供了資金。即使在融資收購之後，我們仍維持淨現金部位。所以我們今年有一個好的開始。

We'll start on slide number 4, for our quarterly sales trends. Organic sales grew 3.6% in the quarter, acquisitions net of divestitures added 8.8% and foreign currency translation increased sales by 1.2% for total sales growth of 13.6% in the quarter.

我們將從第四張投影片開始，了解我們的季度銷售趨勢。本季有機銷售額成長 3.6%，扣除資產剝離後的收購額成長 8.8%，外幣折算銷售額成長 1.2%，本季總銷售額成長 13.6%。

Turning to slide number 5, this details our quarterly gross margin trending. Our gross profit margin was 50.3% this quarter compared to 51.7% in the first quarter of last year.

轉向第 5 張投影片，詳細介紹了我們的季度毛利率趨勢。本季我們的毛利率為 50.3%，去年第一季為 51.7%。

We closed on the acquisition of Gravotech this quarter which Russell, just mentioned and this resulted in purchase accounting adjustments to recognize the fair value of inventory acquired. And this reduced our gross profit margin by approximately 110 basis points in the quarter.

我們本季完成了 Russell 剛才提到的 Gravotech 收購，這導致了採購會計調整，以確認所收購庫存的公允價值。這使我們本季的毛利率下降了約 110 個基點。

Without this non-recurring adjustment, our gross profit margin would have been 51.4% which is approximately in line with the prior year.

如果沒有這次非經常性調整，我們的毛利率將為51.4%，與去年大致持平。

Our gross profit margin continues to be strong as we realize, benefit from our sales growth being led by our highest gross profit margin products.

我們意識到，我們的毛利率持續保持強勁，這得益於我們毛利率最高的產品帶動的銷售成長。

Moving to slide number 6, you'll find our SG&A expense trending. SG&A was $111.8 million this quarter compared to $96.3 million in the first quarter of last year. As a percent of sales SG&A increased to 29.7% compared to 29% last Q1.

前往第 6 張投影片，您會發現我們的 SG&A 支出趨勢。本季的 SG&A 為 1.118 億美元，而去年第一季的 SG&A 為 9,630 萬美元。SG&A 佔銷售額的百分比從上一季的 29% 上升至 29.7%。

If you exclude amortization expense from each of the periods presented as well as other non-recurring acquisition related costs incurred in the current quarter, then SG&A would have been 28.3% of sales both this quarter and in the first quarter of last year. We continue to invest in growth by expanding our sales force, enhancing our digital capabilities and broadening our omni channel strategies while identifying efficiencies throughout our back end sales and other support functions.

如果您排除所列每個期間的攤銷費用以及本季產生的其他非經常性收購相關成本，那麼 SG&A 將佔本季和去年第一季銷售額的 28.3%。我們持續透過擴大銷售團隊、增強數位能力和拓寬全通路策略來投資成長，同時提高後端銷售和其他支援職能的效率。

On slide number 7, you'll find the trending of our investments in research and development. We continue to increase our investment in R&D within our organic business and through the acquisition of Gravotech. R&D expense was $18.9 million, which was 5% of sales this quarter, an increase from $15.7 million or 4.7% of sales last year.

在第 7 張投影片上，您會發現我們在研發方面的投資趨勢。我們透過收購 Gravotech 持續增加有機業務的研發投資。研發費用為 1,890 萬美元，佔本季銷售額的 5%，高於去年的 1,570 萬美元，佔銷售額的 4.7%。

Our best ROI almost always comes from our highly engineered products and we really do have a very exciting lineup of products set to launch this year.

我們最好的投資報酬率幾乎總是來自我們精心設計的產品，我們確實有一系列非常令人興奮的產品將於今年推出。

Moving along to slide number 8, you'll find the trending of our pre tax earnings. Pre tax earnings on a GAAP basis decreased slightly from $59.4 million to $58.8 million in the quarter. But if you exclude amortization from both periods and other acquisition related charges that we incurred in the current quarter, pre tax earnings increased 11% from $61.8 million to $68.6 million.

繼續看第 8 張投影片，您會發現我們稅前收入的趨勢。本季以 GAAP 計算的稅前收益從 5,940 萬美元小幅下降至 5,880 萬美元。但如果您排除兩個期間的攤銷以及本季發生的其他收購相關費用，稅前收益將成長 11%，從 6,180 萬美元增至 6,860 萬美元。

Turning to slide number 9, you'll find the trending of our net earnings and EPS. Similar to pretax earnings, our net income decreased slightly due to the incremental amortization and other non-recurring acquisition related charges that we incurred in the quarter. Our reported GAAP diluted earnings per share was consistent with the prior year at $0.97 per share.

翻到第 9 張投影片，您會發現我們的淨利和每股盈餘的趨勢。與稅前收益類似，由於本季產生的增量攤銷和其他非經常性收購相關費用，我們的淨利潤略有下降。我們報告的 GAAP 攤薄每股收益與前一年一致，為每股 0.97 美元。

But if you exclude amortization from both periods, as well as the other acquisition related charges from the current period, our adjusted net income grew from $49.1 million to $54.2 million, which is an increase of 10.4%. And our adjusted diluted EPS grew from $1 per share to $1.12 per share, an increase of 12%.

但如果排除這兩個時期的攤銷以及本期其他收購相關費用，我們調整後的淨利潤將從 4,910 萬美元增長到 5,420 萬美元，增長了 10.4%。我們調整後的稀釋每股盈餘從每股 1 美元成長到每股 1.12 美元，成長了 12%。

So we had another strong earnings quarter resulting from our organic sales growth and our ongoing focus on efficiencies.

因此，由於我們的有機銷售成長和我們對效率的持續關注，我們又獲得了強勁的獲利季度。

On slide number 10, you'll find a summary of our cash generation Operating cash flow was $23.4 million in the first quarter this year compared to $62.3 million in the first quarter last year. Free cash flow was $16.1 million in Q1 of this year compared to $51 million in last year's Q1.

在第 10 號投影片上，您會發現我們的現金產生摘要 今年第一季的營運現金流為 2,340 萬美元，而去年第一季為 6,230 萬美元。今年第一季的自由現金流為 1,610 萬美元，而去年第一季的自由現金流為 5,100 萬美元。

Operating cash flow was down this quarter mainly due to a timing shift in certain vendor payments. Some of which was within Gravotech.

本季營運現金流下降，主要是由於某些供應商付款的時間變化。其中一些是在 Gravotech 內部。

We were also reducing inventory at this time last year, which provided a larger working capital benefit than we would typically expect to realize. We've returned to more normalized levels of inventory following the supply chain challenges from a couple of years ago.

去年這個時候我們也減少了庫存，這提供了比我們通常預期實現的更大的營運資金效益。繼幾年前的供應鏈挑戰之後，我們已經恢復到更正常的庫存水準。

So we don't expect large working capital changes apart from periodic short term timing items like we saw this quarter. Slide number 11 details, the impact that our historical cash generation has had on our balance sheet. As of October 31, we were in a net cash position of $29 million.

因此，除了本季看到的定期短期計時項目外，我們預計營運資金不會發生重大變化。第 11 號投影片詳細介紹了我們歷史現金產生對資產負債表的影響。截至 10 月 31 日，我們的淨現金部位為 2,900 萬美元。

Our approach to capital allocation is consistent and that is to first use our cash to fund organic sales growth and efficiency opportunities. This includes investing in new product development, sales generating resources, capability enhancing CapEx and automation focused CapEx.

我們的資本配置方法是一致的，那就是先使用我們的現金來資助有機銷售成長和效率機會。這包括投資新產品開發、銷售產生資源、能力增強資本支出和以自動化為重點的資本支出。

We have the ability to invest throughout the economic cycle so that we're always positioned to drive future sales growth and profit improvements.

我們有能力在整個經濟週期中進行投資，因此我們始終能夠推動未來的銷售成長和利潤改善。

And second, we focus on consistently increasing our dividends. In September, we announced our 39th consecutive year of annual dividend increase, which is a streak that we're very proud of.

其次，我們專注於持續增加股利。9 月份，我們宣布連續第 39 年增加年度股息，我們對此感到非常自豪。

After funding organic investments and dividends, we then deploy our cash in a disciplined manner for acquisitions where there are synergies and for opportunistic share buybacks.

在為有機投資和股息提供資金後，我們會以嚴格的方式部署現金，用於具有協同效應的收購和機會性股票回購。

Our strong balance sheet puts us in a position to be able to increase our investment in R&D and other organic sales opportunities to acquire companies strategically and to return funds to our shareholders through dividends and share buybacks.

我們強大的資產負債表使我們能夠增加對研發和其他有機銷售機會的投資，以策略性收購公司，並透過股息和股票回購將資金返還給股東。

Turning to slide number 12, you'll find our fiscal 2025 guidance. We're maintaining our full year fiscal 2025 previously announced adjusted deleted EPS guidance range of $4.40 per share to $4.70 per share.

轉向第 12 號投影片，您將找到我們的 2025 財年指引。我們維持先前宣布的調整後刪除的 2025 財年每股收益指引範圍為每股 4.40 美元至 4.70 美元。

Our GAAP EPS guidance range was adjusted for amortization and other acquisition related charges which we now expect to range from $4.02 to $4.32 per share.

我們的 GAAP EPS 指導範圍針對攤銷和其他收購相關費用進行了調整，我們現在預計範圍為每股 4.02 美元至 4.32 美元。

Our adjusted diluted EPS guidance range represents a range of growth of between 4.3% to 11.4% over 2024. We also anticipate organic sales growth in the low single digit percentages for the year ending July 31, 2025.

我們調整後的稀釋每股盈餘指引範圍代表 2024 年成長範圍在 4.3% 至 11.4% 之間。我們也預期截至 2025 年 7 月 31 日的年度有機銷售額成長率將維持在較低的個位數百分比。

Other elements of our guidance include an income tax rate of approximately 20% depreciation and amortization expense of approximately $40 million and capital expenditures of approximately $35 million. Potential risks to our guidance among others include potential strengthening of the US dollar inflationary pressures that we're unable to offset in a timely enough manner or an overall slowdown in economic activity.

我們指導的其他內容包括約 20% 的所得稅率、約 4,000 萬美元的折舊和攤提費用以及約 3,500 萬美元的資本支出。我們的指引面臨的潛在風險包括美元通膨壓力可能加強（我們無法及時抵銷）或經濟活動整體放緩。

I'll now turn the call back over to Russell, to cover our regional results and to provide some closing thoughts before Q&A. Russell?

現在，我將把電話轉回拉塞爾，介紹我們的地區結果，並在問答之前提供一些結束語。拉塞爾？

Thanks Ann. Slide 13 details the financial results of our America and Asia region, sales were $245.4 million this quarter and organic sales growth was a strong 5.1%. Acquisitions net of divestitures increased sales 5.8% and foreign currency translation decreased sales by 2.2%, resulting in total sales growth of 10.7% this quarter.

謝謝安。投影片 13 詳細介紹了我們美洲和亞洲地區的財務業績，本季銷售額為 2.454 億美元，有機銷售額強勁增長 5.1%。扣除資產剝離後的收購增加了銷售額 5.8%，外幣換算使銷售額減少了 2.2%，導致本季總銷售額成長 10.7%。

Our organic growth was driven by all of our product lines, with most growth coming from product ID, wire ID, and safety and facility ID. October was our strongest month in the quarter.

我們的有機成長是由所有產品線推動的，其中大部分成長來自產品 ID、線路 ID 以及安全性和設施 ID。十月是我們本季表現最強勁的月份。

Our Asia business performed well with total organic sales growth of 6.3% which was driven by growth in every country except for China. Our business in China declined by just over 6% in the quarter. So outside of China, our business combined for nearly 18% organic growth. We continue to see fantastic growth in India and we believe we have a very bright future throughout Southeast Asia.

我們的亞洲業務表現良好，總有機銷售額成長 6.3%，這是由除中國以外的所有國家的成長所推動的。本季我們在中國的業務下降了 6% 多一點。因此，在中國以外，我們的業務合計實現了近 18% 的有機成長。我們繼續看到印度的驚人成長，我們相信我們在整個東南亞都有一個非常光明的未來。

Our reported segment profit in Americas and Asia increased 10% to $54.9 million and segment profit as a percentage of sales was 22.4%. If you exclude the impact of amortization in both the current quarter and last year's Q1 as well as other non-recurring acquisition related expenses in the current quarter, segment profit increased 15% compared to the prior year.

我們報告的美洲和亞洲部門利潤成長了 10%，達到 5,490 萬美元，部門利潤佔銷售額的百分比為 22.4%。如果排除本季和去年第一季攤銷的影響以及本季​​其他非經常性收購相關費用，部門利潤較上年增加 15%。

These results are a testament to the hard work of our incredibly dedicated team and the ongoing adoption of our recent product launches. Moving to slide 14, you'll find the financial results for our Europe and Australia region.

這些結果證明了我們極其敬業的團隊的辛勤工作以及我們最近推出的產品的持續採用。前往投影片 14，您將看到我們歐洲和澳洲地區的財務結果。

Sales were $131.6 million this quarter. Acquisitions added 15% to our organic growth of 0.7% and the impact of foreign currency translation increased sales by 3.6% for a total growth of 19.3% in the region this quarter. Our European business returned to organic growth following only one quarter of decline out of the last 14, which is a significant result in light of the sluggish macro conditions in this region.

本季銷售額為 1.316 億美元。收購為我們 0.7% 的有機成長增加了 15%，外幣換算的影響使銷售額增加了 3.6%，本季該地區的總成長為 19.3%。我們的歐洲業務在過去 14 個業務中僅出現四分之一的下滑後就恢復了有機增長，鑑於該地區宏觀經濟形勢低迷，這是一個重大成果。

Our reported segment profit in Europe and Australia declined 21.7% in the quarter to $13.1 million and segment profit as a percentage of sales was 10%. If you screw the impact of amortization in both the current quarter and last year's Q1, as well as other non-recurring acquisition related expenses in the quarter segment profit increased 4.3% compared to the prior year.

我們報告的歐洲和澳洲部門利潤本季下降了 21.7% 至 1,310 萬美元，部門利潤佔銷售額的百分比為 10%。如果算上本季和去年第一季攤銷的影響，以及其他非經常性收購相關費用，該季度的部門利潤與上年同期相比增長了 4.3%。

Economic conditions have slowed Europe and our rate of organic growth reflects this environment. Still, we were able to grow sales within our safety and facility identification product line and our people ID product line as well as within most of our other key geographies by maintaining our focus on niche opportunities.

歐洲的經濟狀況已經放緩，我們的有機成長率反映了這種環境。儘管如此，透過保持對利基機會的關注，我們仍然能夠在安全和設施識別產品線、人員識別產品線以及大多數其他關鍵地區增加銷售額。

Within Europe, we see a diversity of outcomes with France in particular doing well. We believe that our European business will benefit from many of the similar trends that we're seeing in the US, such as the shortening of supply chains by moving manufacturing closer to Europe as well as challenges in finding workers. Both of which result in consistent demand for our productivity solutions.

在歐洲，我們看到了各種各樣的結果，其中法國表現尤其出色。我們相信，我們的歐洲業務將受益於我們在美國看到的許多類似趨勢，例如將製造業移近歐洲而縮短供應鏈，以及尋找工人方面的挑戰。這兩者都導致了對我們生產力解決方案的持續需求。

With that, I'd like to turn it over for Q&A operator. Would you please provide instructions to our listeners?

有了這個，我想把它交給問答操作員。您能給我們的聽眾一些指示嗎？

(Operator Instructions)

（操作員說明）

Steve Ferazani, Sidoti.

史蒂夫·費拉扎尼，西多蒂。

Morning, Russell morning Ann, thanks for all the detail on the call. Russell, the surprise to me was the strength in organic growth in the Americas and Asia. You covered a little bit about it in your remarks? Can you give us a little bit more detail?

早安，拉塞爾早上好，安，感謝電話中的所有細節。拉塞爾，令我驚訝的是美洲和亞洲的有機成長實力。您在講話中對此做了一些介紹嗎？您能給我們更多細節嗎？

How much of America's is driven by new products or what's getting you 5% growth in a market where, you know, the industrials are not doing that great on the growth side and then separately on Asia, is that really more penetration in India and Southeast Asia?

美國有多少是由新產品推動的，或者是什麼讓你在一個市場上實現5% 的增長，你知道，工業企業在增長方面表現不佳，然後分別在亞洲，印度和東南亞的滲透率真的更高嗎？

Yeah, so a couple of things and I think I touched on it briefly in the call, you know, one of the strengths of Brady is the ability to really focus on product areas, markets and segments that are doing better than others. You know, certainly if I take all of industrial manufacturing as a whole in the United States, I think the best you could say is it's languishing in terms of growth.

是的，有幾件事我想我在電話中簡要地提到過，你知道，布雷迪的優勢之一是能夠真正專注於比其他人做得更好的產品領域、市場和細分市場。你知道，當然，如果我將美國所有工業製造業視為一個整體，我認為最好的說法就是它在成長方面正在疲軟。

But, you know, within that there are still pockets, there are data centers and there's some aerospace applications. There's some really unusual niche applications that Brady is pretty good at servicing our customers.

但是，你知道，其中仍然有一些空間，有資料中心，還有一些航空航天應用。Brady 非常擅長為我們的客戶提供一些非常不尋常的利基應用程式。

So, you know, when you look at that and you look at our ability to really H1 in and target maybe a micro niche within the US economy. So there, there's still small pockets that that are doing well. And I think it says a lot about our sales people in the US and our product, people in the US for being able to chase down those opportunities.

所以，你知道，當你看到這一點時，你會看到我們真正進入 H1 並瞄準美國經濟中的一個微型利基市場的能力。所以，仍然有一些小領域表現良好。我認為這充分說明了我們在美國的銷售人員和我們的產品，以及我們在美國的銷售人員能夠抓住這些機會。

Turning to Southeast Asia, I think you're seeing, they're benefiting from some of the issues related to China and corporations setting up additional factories in Southeast Asia, you know, so most of that is a combination of increased penetration, but also just sheer increase in demand in the underlying countries. And I would say that's most true of India, which has been, a great place for us for the last half dozen years.

轉向東南亞，我想你會看到，他們受益於與中國和在東南亞設立更多工廠的公司相關的一些問題，所以其中大部分是滲透率增加的組合，但也只是基礎國家的需求純粹增加。我想說，這對印度來說是最真實的，在過去的六年裡，印度一直是我們的好地方。

That's helpful. Thanks. I want to ask about how the integration Gravotech was going and also wanted to ask about that smaller AB&R acquisition you made in October and how that fits.

這很有幫助。謝謝。我想問一下 Gravotech 的整合進展如何，也想問一下你們在 10 月進行的規模較小的 AB&R 收購以及它是否適合。

Yeah, so a couple things. So Gravotech, you know, I was actually there two weeks ago. We got exactly what we wanted, which was to expand our portfolio to enable direct part marking. You know, Brady has been forever in the labels and printing technology, but we've never really had the ability to direct part mark.

是的，有幾件事。Gravotech，你知道，我實際上兩週前就在那裡。我們得到了我們想要的，那就是擴展我們的產品組合以實現直接零件打標。要知道，布雷迪一直致力於標籤和印刷技術，但我們從來沒有真正擁有直接零件標記的能力。

And that's, you know, that is another facet of being able to do product traceability, there's applications where only a laser or a [dotpe] work. And so now we have that ability to add to our portfolio.

您知道，這是能夠實現產品可追溯性的另一個方面，有些應用程式只能使用雷射或 [dotpe] 來運作。所以現在我們有能力增加我們的投資組合。

So anyway, when we were there and we went through their factories and by the way, we've known about this company, I've known about this company for the last half dozen years. And we've talked on and off for quite some period time. It just came that this, the stars aligned and we were able to do the acquisition this year. So, you know, I feel pretty good. It's like any acquisition that is significant in size, it's going to take some time to get, you know, mesh up the P systems. And just the whole processes of go to market. But so far I really happy with how things have transpired.

所以無論如何，當我們在那裡的時候，我們參觀了他們的工廠，順便說一句，我們已經知道這家公司了，我在過去的六年裡就知道這家公司了。我們已經斷斷續續地談了相當長一段時間了。就這樣，星光熠熠，我們今年能夠完成收購。所以，你知道，我感覺很好。就像任何規模較大的收購一樣，需要一些時間來整合 P 系統。以及上市的整個過程。但到目前為止，我對事情的進展感到非常滿意。

And then you, you asked a question about A B&R. It's a small company. Again, somebody that I have known personally for a half dozen or so years, they're a super niche. I would say integrated go to market company that provides very, very customized solutions.

然後你，你問了一個關於一帶一路的問題。這是一家小公司。再說一遍，我個人認識了六年左右，他們是個超級小眾的人。我想說的是，綜合性上市公司提供非常非常客製化的解決方案。

And you know, those type of sales people and that go to market approach is something that is difficult to hire and difficult to build out. And so in basically one transaction, we were able to expand our sales force by another, a little over a dozen people along with some technology that they have internal to the company. So again, a really small acquisition, but a nice fit in providing tailored solutions to our products.

你知道，這種類型的銷售人員和進入市場的方法是很難僱用和培養的。因此，基本上在一筆交易中，我們能夠透過另一筆交易來擴大我們的銷售隊伍，十幾個人以及他們擁有公司內部的一些技術。再說一遍，這是一次很小的收購，但非常適合為我們的產品提供量身定制的解決方案。

That's great. If I get one more in just who the customer base is for the i5300 and the plan with that, it sounds like you're incorporating it with the code technology. Tell me how that's going to work and who you're targeting.

那太棒了。如果我進一步了解 i5300 的客戶群以及相關計劃，聽起來您正在將其與程式碼技術結合。告訴我這將如何運作以及你的目標是誰。

Yeah, we target on, I would say mid size manufacturers, you know, we don't do really anything in distribution centers that's kind of zebras and honeywell's territory. But if you're, I'll say a couple $100 million manufacturer and you want to provide a direct marking on parts with labels and then you want to scan at the same time to make sure that it works with ERP system.

是的，我們的目標是中型製造商，你知道，我們在配送中心實際上沒有做任何事情，這是斑馬和霍尼韋爾的領土。但如果您是一家價值 1 億美元的製造商，您希望在帶有標籤的零件上提供直接標記，然後您希望同時掃描以確保它與 ERP 系統相容。

We're providing that solution and it, if you step back the original thesis behind getting code corporation is we've always printed the labels, but we've had to use somebody else's reader to do the scanning and verify the labels, which is the whole point of putting them there in the first place. And now with a lot of software and some hardware development, we now have industrial versions and you're going to see more of those products roll out in the coming year.

我們正在提供該解決方案，如果您退一步，我們一直在列印標籤，但我們必須使用其他人的閱讀器來掃描並驗證標籤，這就是首先將它們放在那裡的全部意義。現在，隨著大量軟體和一些硬體的開發，我們現在有了工業版本，您將在來年看到更多此類產品的推出。

Keith Housum, Northcoast Research.

Keith Housum，北海岸研究中心。

Good morning. Guys, quick question for you Russell in terms of like, you know, Gravotech and the seasonality of the business is Gravotech changes, free seasonality at all throughout the year?

早安.夥計們，向你們羅素提出一個簡單的問題，你知道，Gravotech 和業務的季節性是 Gravotech 的變化，全年都有免費的季節性嗎？

Not materially, I mean, you know, I would say that in general, August is always pretty weak for Brady because of Europe and you know, the same impact will be there with Gravotech.

不是實質的，我的意思是，你知道，我會說，總的來說，八月對布雷迪來說總是相當疲軟，因為歐洲，你知道，同樣的影響也會出現在 Gravotech 上。

We traditionally see a strong fall and a strong spring before you get into the slower summer months. So it's, you know, I would say Gravotech is going to see a similar effect as Brady, maybe a teeny bit more pronounced in Europe in the August time frame where, as you all know, they take a decent vacation.

傳統上，在進入氣候緩慢的夏季之前，我們會經歷強勁的秋季和強勁的春季。所以，你知道，我想說 Gravotech 將看到與 Brady 類似的效果，也許在 8 月的時間範圍內，歐洲的效果會更明顯一些，眾所周知，他們在那裡度過了一個不錯的假期。

Yeah, absolutely. I did notice in your script, you talked about October being the strongest month of the quarter for you guys. You perhaps touch on the cadence of the sales in the quarter and you know what November started out for you guys like.

是的，絕對是。我確實注意到在你的劇本中，你談到十月是你們這個季度最強勁的月份。您可能會觸及本季的銷售節奏，並知道您喜歡什麼 11 月開始。

Yeah, so the August again for Brady is always pretty light just for a host of reasons, both even in North America and in Europe, not traditionally the strongest month as people take their holidays, we usually see momentum start to build middle of September towards the end of September.

是的，所以布雷迪的八月總是很清淡，原因有很多，即使在北美和歐洲也是如此，這不是傳統上人們度假最強勁的月份，我們通常會看到勢頭開始在九月中旬建立九月底。

This year was a little later than what we normally see and then October came back very strong. More than what we expected some of it is catch up from what I would say, lighter months, people go on vacation and they get back from vacation, they start placing POS and that takes a little bit of time to get through the system.

今年比我們通常看到的要晚一些，然後十月的表現非常強勁。超出了我們的預期，其中一些是我想說的，比較輕鬆的月份，人們去度假，他們從假期回來，他們開始放置 POS，這需要一點時間來完成系統。

But we were really happy with how we finished in October and we hope the momentum carries through for the rest of the year. Now personally and I did say it in the notes, I think there's a decent amount of investment that's sitting on the sideline in the US.

但我們對 10 月的成績感到非常滿意，我們希望這種勢頭能夠在今年餘下的時間裡持續下去。現在就我個人而言，我確實在筆記中說過，我認為美國有相當多的投資處於觀望狀態。

I'll call it election uncertainty hesitancy and now that it's resolved clearly, you know, we think there's going to be a decent amount of capital freed up for industrial production and that is, really the target of Brady Corporation.

我將其稱為選舉不確定性猶豫，現在它已經明確解決，你知道，我們認為將會有相當多的資本被釋放用於工業生產，這確實是布雷迪公司的目標。

Great. No, I appreciate that in terms of your gross profitability. Obviously, I know it's a very strong quarter for gross margins for you guys. Even with the charges that you took the quarter, you know, before the ground acquisition, you're talking about 50% is kind of like the goal for gross profitability Gravotech I understood is going to be a little bit lower for you guys. Are you still thinking even with the acquisition, post acquisition, you guys could be out 50% of our gross margins as your target.

偉大的。不，我很欣賞你們的毛盈利能力。顯然，我知道對你們來說，這是一個毛利率非常強勁的季度。即使考慮到本季的費用，你知道，在地面收購之前，你所說的 50% 有點像 Gravotech 的毛盈利目標，我知道對你們來說會有點低。你們還在想，即使收購了，收購後你們也可以把我們毛利率的50%當作你們的目標。

Yeah, you know, it it may take a little bit of time to get there for Gravotech, which is not quite at 50 but we can see line of sight in terms of how we produce products and the types of things we can do to drive through efficiencies, you know, to get it so that it would be middle of the pack of our portfolio.

是的，你知道，Gravotech 可能需要一點時間才能達到這個目標，雖然還不到 50 歲，但我們可以看到我們如何生產產品以及我們可以做哪些事情來推動發展你知道，透過提高效率來獲得它，使其成為我們產品組合的中間位置。

You know, probably will never be our best growth margin, but it certainly won't be our worst either. So I you know, again, I think we're going to be there in a good place of 50% maybe a hair above it as a corporation.

你知道，可能永遠不會是我們最好的成長利潤，但它肯定不會是我們最糟糕的。所以我想再說一次，我認為作為一家公司，我們將達到 50% 的好位置，也許比它高出一點點。

Okay. And the last question for me in terms of volume versus price this quarter, I guess. What was the biggest driver of the growth?

好的。我想，我想問的最後一個問題是本季的銷售與價格。成長的最大推動力是什麼？

All volume, no price.

有量，無價。

Great. Thank you. Appreciate it.

偉大的。謝謝。欣賞它。

Thank you. I'm showing no further questions at the time. I now turn it back to Russell, for closer remarks.

謝謝。我當時沒有提出任何進一步的問題。現在我把它轉回給拉塞爾，以獲得更詳細的評論。

Perfect. Thanks everyone for your time today and for your questions. Our first quarter was a good start to the year. We performed well and we have positive momentum throughout the organization. We believe that with a clear result in the US elections, we can expect to see increased industrial capital investment which is favorable to Brady.

完美的。感謝大家今天抽出寶貴時間接受提問。我們的第一季是今年的好開始。我們表現良好，整個組織都有積極的動力。我們認為，隨著美國大選結果明確，產業資本投資有望增加，這對布雷迪有利。

And now we have added capabilities of direct part marking from our acquisition of Gravotech, which fills a GAAP in the identification solutions portfolio and provides us with additional technical know-how. The macroeconomic environment is dynamic and rapidly changing.

現在，我們透過收購 Gravotech 增加了直接零件打標的能力，這填補了識別解決方案組合中的 GAAP 規定，並為我們提供了額外的技術知識。宏觀經濟環境是動態且快速變化的。

So we're focused on controlling what we can control so that we can continue to deliver on our priorities which are. To continue to invest internally, to grow the top line, to further develop our product offering to support our customers automation initiatives, to execute operational efficiencies and ensure that we grow profitably and to effectively deploy our capital to drive long term shareholder value through organic investments, acquisitions and returning funds to our shareholders through dividends and share buybacks.

因此，我們專注於控制我們可以控制的事情，以便我們能夠繼續實現我們的優先事項。繼續進行內部投資，增加收入，進一步開發我們的產品以支持客戶的自動化計劃，提高營運效率並確保我們盈利增長，並有效部署我們的資本，透過有機投資推動長期股東價值、收購並透過股息和股票回購向股東返還資金。

Looking ahead, we can see areas to reduce our cost structure while we continue to invest in R&D to help us launch new products. Meanwhile, we'll periodically review our portfolio to ensure all of Brady meets our financial objectives.

展望未來，我們可以看到降低成本結構的領域，同時繼續投資研發以幫助我們推出新產品。同時，我們將定期檢視我們的投資組合，以確保 Brady 的所有產品都能滿足我們的財務目標。

I'm optimistic about the future and I know that our team (inaudible) help overcome challenges and continue to deliver results. Thank you for your time this morning and for your interest in Brady. Operator you may disconnect the call.

我對未來持樂觀態度，我知道我們的團隊（聽不清楚）有助於克服挑戰並繼續取得成果。感謝您今天早上抽出時間以及對布雷迪的興趣。接線生您可以掛斷電話。

Thank you for your participation in today's conference. Does this conclude the program? You may now disconnect?

感謝您參加今天的會議。程式到此就結束了嗎？現在您可以斷開連線嗎？