Revenue during the quarter dropped 3.80 percent to $275.93 million from $286.82 million in the previous year period. Total expenses were 88.57 percent of quarterly revenues, down from 89.27 percent for the same period last year. This has led to an improvement of 70 basis points in operating margin to 11.43 percent.

Operating income for the quarter was $31.55 million, compared with $30.78 million in the previous year period.

"Our consistent focus on developing high-quality products, providing excellent customer service, pushing for efficiencies throughout our SG&A structure, and empowering the Brady team with local ownership and accountability are the primary drivers of our improved financial results. This quarter marks our seventh consecutive quarter of year-over-year earnings growth," said Brady's president and chief executive officer, J. Michael Nauman. "We believe that our focus on driving efficiencies combined with our organic sales initiatives and our new product pipeline is beginning to generate improved organic sales trends, and will continue to drive future profit improvements. That said, challenges in the distribution channel will impact our Workplace Safety business while we are more optimistic about growth in the fourth quarter in Identification Solutions. Looking forward, our priorities remain unchanged, which are to grow our pipeline of innovative new products, provide excellent customer service and deliver operational efficiencies. We are pleased with our ability to improve our financial performance while maintaining our focus on our long-term strategy."

For financial year 2017, the company forecasts diluted earnings per share to be in the range of $1.80 to $1.85.

The company has spent $10.82 million cash to meet investing activities during the nine month period as against cash outgo of $5.48 million in the last year period.

The company has spent $89.99 million cash to carry out financing activities during the nine month period as against cash outgo of $69.23 million in the last year period.

Cash and cash equivalents stood at $129.08 million as on Apr. 30, 2017, down 8.84 percent or $12.52 million from $141.60 million on Apr. 30, 2016.

Working capital declines
Brady Corporation has witnessed a decline in the working capital over the last year. It stood at $234.52 million as at Apr. 30, 2017, down 11.72 percent or $31.13 million from $265.65 million on Apr. 30, 2016. Current ratio was at 2.48 as on Apr. 30, 2017, down from 2.62 on Apr. 30, 2016.

Cash conversion cycle (CCC) has decreased to 38 days for the quarter from 70 days for the last year period. Days sales outstanding were almost stable at 48 days for the quarter, when compared with the last year period.

Days inventory outstanding has decreased to 32 days for the quarter compared with 64 days for the previous year period. At the same time, days payable outstanding was almost stable at 41 days for the quarter, when compared with the previous year period.