BRADY CORP
For the period ended Jan 31, 2026. Filed Feb 19, 2026.
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A company's report for each of its first three quarters. The financial statements are not audited. It shows how the business has moved since the last annual report, and what management says changed.
Jan 31, 2026 · Filed Feb 19, 2026
BRC$78.72-1.3%Stored close · as of Nov 6, 2026
What changed in Management’s Discussion and Analysis?
Read the current filingPrevious report: 10-Q
Period ended 2025-10-31; filed 2025-11-17.
0000746598-25-000060
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsCurrent report: 10-Q
Period ended 2026-01-31; filed 2026-02-19.
0000746598-26-000007
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsThe baseline is this issuer’s latest earlier reporting period of the same form that was filed before the current report. A previous 10-Q is a different quarter, not a year-over-year comparison. Amendments are excluded.
Compared 82 previous paragraphs and 81 current paragraphs.
53 unchanged; 23 reworded; 5 added; 6 removed; 0 previous and 0 current paragraphs rearranged.
Tables are not compared: 4 previous and 4 current tables excluded. Dates, whitespace, punctuation and numbering changes are ignored; changes to financial figures remain significant.
A changed paragraph is not evidence that risk increased or decreased. An unchanged paragraph does not establish that risk stayed the same.
Added paragraphs (5)
Current report
Net sales for the six months ended January 31, 2026 increased 7.6% to $789.4 million compared to $733.7 million in the same period in the prior year. The increase consisted of organic sales growth of 2.2%, sales growth from acquisitions of 2.8%, and a 2.6% increase from foreign currency translation. Organic sales grew 3.9% in the Americas & Asia segment, while organic sales declined 0.9% in the Europe & Australia segment during the six months ended January 31, 2026 compared to the same period in the prior year.
Current report
Americas & Asia net sales increased 7.6% to $251.6 million in the three months ended January 31, 2026 compared to $233.8 million in the same period in the prior year, which consisted of organic sales growth of 3.1%, sales growth from acquisitions of 3.5%, and a 1.0% increase from foreign currency translation. Americas & Asia net sales increased 8.6% to $520.5 million in the six months ended January 31, 2026 compared to $479.3 million in the same period in the prior year, which consisted of organic sales growth of 3.9%, sales growth from acquisitions of 4.2%, and a 0.5% increase from foreign currency translation.
Current report
Americas & Asia segment profit increased 16.9% to $53.8 million in the three months ended January 31, 2026 compared to $46.0 million in the same period in the prior year. Segment profit increased 12.6% to $113.6 million in the six months ended January 31, 2026 compared to $100.9 million in the same period in the prior year. As a percentage of net sales, segment profit increased to 21.4% from 19.7% in the three-month period and segment profit increased to 21.8% from 21.0% in the six-month period ended January 31, 2026 compared to the same periods in the prior year. The increase in segment profit as a percentage of net sales was due to increased profit from organic sales growth in both the three and six-month periods, as well as the absence of costs from the prior year period related to the closure of two facilities during the three-month period and incremental amortization and purchase accounting adjustments during the six-month period.
Current report
Europe & Australia net sales increased 7.9% to $132.5 million in the three months ended January 31, 2026 compared to $122.8 million in the same period in the prior year. The increase was due to foreign currency translation of 9.0%, which was partially offset by an organic sales decline of 1.1%. Europe & Australia net sales increased 5.7% to $268.9 million in the six months ended January 31, 2026 compared to $254.5 million in the same period in the prior year, which consisted of an increase of 6.6% from foreign currency translation, which was partially offset by an organic sales decline of 0.9%.
Current report
Organic sales in Australia declined in the low-single digits in both the three and six months ended January 31, 2026 compared to the same periods in the prior year. The organic sales decline in both the three and six-month periods was driven by an organic sales decline in the product identification and safety and facility identification product lines, which was partially offset by organic sales growth in the wire identification product line.
Removed paragraphs (6)
Previous report
Investment and other income was $1.7 million in the three months ended October 31, 2025 compared to $1.2 million in the same period in the prior year. The change was primarily due to an increase in the market value of securities held in deferred compensation plans.
Previous report
Interest expense decreased to $1.2 million in the three months ended October 31, 2025 compared to $1.4 million in the same period in the prior year. The decrease in interest expense was primarily due to a decrease in the weighted average interest rate on outstanding borrowings on the Company’s credit agreement during the three months ended October 31, 2025 compared to the same period in the prior year.
Previous report
Americas & Asia net sales increased 9.6% to $268.9 million in the three months ended October 31, 2025 compared to $245.4 million in the same period in the prior year. The increase consisted of organic sales growth of 4.7% and sales growth from acquisitions of 4.9%.
Previous report
Segment profit increased 9.0% to $59.9 million in the three months ended October 31, 2025 compared to $54.9 million in the same period in the prior year. As a percentage of net sales, segment profit was essentially flat at 22.3% compared to 22.4% in the same period in the prior year. The increase in segment profit was primarily due to organic sales growth across the segment. Additionally, segment profit for the three months ended October 31, 2024 included acquisition-related costs and other purchase accounting adjustments. The decrease in segment profit as a percentage of sales was primarily driven by increased investments in R&D, and to a lesser extent, incremental tariffs in the current three-month period.
Previous report
Europe & Australia net sales increased 3.6% to $136.4 million in the three months ended October 31, 2025 compared to $131.6 million in the same period in the prior year. The increase reflected a 4.4% benefit from foreign currency translation, which was partially offset by an organic sales decline of 0.8%.
Previous report
Organic sales in Australia increased in the low-single digits in the three months ended October 31, 2025. Organic sales growth was primarily driven by growth in the wire identification product line.
Reworded paragraphs (23)
Previous wording
•Safety and facility identification and protection, which includes safety signs, traffic signs and control products, floor-marking tape, pipe markers, labeling systems, spill control products, lockout/tagout devices, personal protection equipment, first aid products, and software and services for safety compliance auditing, procedures writing and training.
Current wording
•Safety and facility identification, which includes safety signs, traffic signs and control products, floor-marking tape, pipe markers, labeling systems, spill control products, lockout/tagout devices, personal protection equipment, first aid products, and software and services for safety compliance auditing, procedures writing and training.
Previous wording
•Integrating recent acquisitions to enhance our strategic position and accelerate long-term sales growth.
Current wording
•Integrating recent acquisitions and evaluating future acquisition opportunities to enhance our strategic position and accelerate long-term sales growth.
Previous wording
Notwithstanding the uncertain situation relating to tariffs, we believe our financial strength positions us well to continue investing in acquisitions and organic growth opportunities, such as expanded sales channels, marketing programs, and research and development (“R&D”). We remain focused on driving sustainable efficiency gains and automation across our operations and selling, general and administrative (“SG&A”) functions, while also returning capital to our shareholders through dividends and share repurchases. At October 31, 2025, we had cash of $182.7 million, as well as a credit agreement with $182.0 million available for future borrowing, which can be increased to $1,077.0 million at the Company’s option and subject to certain conditions, for total available liquidity of $1,259.7 million.
Current wording
Notwithstanding the uncertain situation relating to tariffs, we believe our financial strength positions us well to continue investing in acquisitions and organic growth opportunities, such as expanded sales channels, marketing programs, and research and development (“R&D”). We remain focused on driving sustainable efficiency gains and automation across our operations and selling, general and administrative (“SG&A”) functions, while also returning capital to our shareholders through dividends and opportunistic share repurchases.
Previous wording
The comparability of the operating results for the three months ended October 31, 2025, compared to the three months ended October 31, 2024, has been impacted by acquisitions of American Barcode and RFID Incorporated (“AB&R”) on October 1, 2024, the Microfluidic Solutions business unit of Funai Electric Co., Ltd. (“Microfluidic Solutions”) on April 1, 2025 and MECCO Partners LLC (“Mecco”) on August 4, 2025. The operating results for each of the acquired companies has been included in the Americas & Asia reportable segment since their acquisition date.
Current wording
The comparability of the operating results for the three and six months ended January 31, 2026 compared to the same periods in the prior year have been impacted by the acquisitions of Microfluidic Solutions business unit of Funai Electric Co., Ltd. (“Microfluidic Solutions”) on April 1, 2025 and MECCO Partners LLC (“Mecco”) on August 4, 2025. The comparability of the operating results for the six months ended January 31, 2026 compared to the same period in the prior year has also been impacted by the acquisition of American Barcode and RFID Incorporated (“AB&R”) on October 1, 2024. All three entities have been included in the Americas & Asia reportable segment since their respective acquisition dates.
Previous wording
A comparison of results of operating income for the three months ended October 31, 2025 and 2024 is as follows:
Current wording
A comparison of results of operating income for the three and six months ended January 31, 2026 and 2025, is as follows:
Previous wording
Net sales for the three months ended October 31, 2025 increased 7.5% to $405.3 million compared to $377.1 million in the same period in the prior year. The increase consisted of organic sales growth of 2.8%, sales growth from acquisitions of 3.2%, and a 1.5% increase from foreign translation. Organic sales grew 4.7% in the Americas & Asia segment, while organic sales declined 0.8% in the Europe & Australia segment compared to the same period in the prior year.
Current wording
Net sales for the three months ended January 31, 2026 increased 7.7% to $384.1 million compared to $356.7 million in the same period in the prior year. The increase consisted of organic sales growth of 1.6%, sales growth from acquisitions of 2.3%, and a 3.8% increase from foreign currency translation. Organic sales grew 3.1% in the Americas & Asia segment, while organic sales declined 1.1% in the Europe & Australia segment during the three months ended January 31, 2026 compared to the same period in the prior year.
Previous wording
Gross margin increased 10.1% to $208.8 million in the three months ended October 31, 2025 compared to $189.7 million in the same period in the prior year. As a percentage of net sales, gross margin increased to 51.5% in the three months ended October 31, 2025 compared to 50.3% in the same period in the prior year. The increase in gross margin as a percentage of net sales is primarily driven by the absence of a $4.1 million non-recurring fair value adjustment related to acquisition inventory recorded in the prior-year period, as well as by organic sales growth in higher gross margin product lines. These benefits were partially offset by incremental tariffs in the current three-month period.
Current wording
Gross margin increased 10.5% to $194.4 million in the three months ended January 31, 2026 compared to $175.8 million in the same period in the prior year. As a percentage of net sales, gross margin increased to 50.6% from 49.3% in the three-month period. Gross margin increased 10.3% to $403.2 million in the six months ended January 31, 2026 compared to $365.5 million in the same period in the prior year. As a percentage of net sales, gross margin increased to 51.1% from 49.8% in the six-month period. The increase in gross margin as a percentage of net sales during the three-month period is primarily driven by the absence of facility closure and other reorganization costs of $1.9 million recorded in the prior-year period. The increase in gross margin as a percentage of net sales during the six months ended January 31, 2026 was primarily due to the absence of a $4.1 million non-recurring fair value adjustment related to acquisition inventory, as well as the facility closure and other reorganization costs recorded in the prior-year period. Organic sales growth in higher gross margin product lines also contributed to the increase in both the three and six-month periods, which was partially offset by incremental tariffs in the same periods.
Previous wording
R&D expenses increased 23.1% to $23.3 million in the three months ended October 31, 2025 compared to $18.9 million in the same period in the prior year. As a percentage of net sales, R&D expenses increased to 5.7% in the three months ended October 31, 2025 compared to 5.0% in the same period in the prior year. The increase in R&D spending was primarily due to investments in microfluidic technologies and engraving systems associated with the acquisitions of Microfluidic Solutions and Mecco, and, to a lesser extent, an increase in R&D headcount within the Company’s organic business. The Company remains committed to investing in innovative product development to drive long-term organic sales growth. Investments in new printing systems, pressure sensitive materials, engraving systems, microfluidic technologies, scanners and software remain the primary focus of R&D expenditures in fiscal 2026.
Current wording
R&D expenses increased 29.8% to $24.3 million in the three months ended January 31, 2026 compared to $18.7 million in the same period in the prior year. As a percentage of net sales, R&D expenses increased to 6.3% in the three-month period compared to 5.2% in the same period in the prior year. R&D expenses increased 26.5% to $47.6 million in the six months ended January 31, 2026 compared to $37.6 million in the same period in the prior year. As a percentage of net sales, R&D expenses increased to 6.0% from 5.1% in the six-month period. The increase in R&D spending was primarily due to the acquisitions of Microfluidic Solutions and Mecco, and, to a lesser extent, an increase in R&D headcount within the Company’s organic business. The Company remains committed to investing in innovative product development to drive long-term organic sales growth. Investments in new printing systems, pressure sensitive materials, engraving systems, microfluidic technologies, scanners and software remain the primary focus of R&D expenditures in fiscal 2026.
Previous wording
SG&A expenses include selling and administrative costs directly attributed to the Americas & Asia and Europe & Australia segments, as well as certain other corporate administrative expenses including finance, information technology, human resources and other administrative expenses. SG&A expenses increased 5.1% to $117.6 million in the three months ended October 31, 2025 compared to $111.8 million in the same period in the prior year. As a percentage of net sales, SG&A decreased to 29.0% in the three months ended October 31, 2025, compared to 29.7% in the same period in the prior year. The decrease in SG&A as a percentage of net sales is primarily due to cost reductions from reorganization activities completed in the prior fiscal year.
Current wording
SG&A expenses include selling and administrative costs directly attributed to the Americas & Asia and Europe & Australia segments, as well as certain other corporate administrative expenses including finance, information technology, human resources and other administrative expenses. SG&A expenses increased 1.9% to $107.9 million in the three months ended January 31, 2026 compared to $105.9 million in the same period in the prior year. As a percentage of net sales, SG&A expenses decreased to 28.1% from 29.7% in the three-month period. SG&A expenses increased 3.6% to $225.5 million for the six months ended January 31, 2026 compared to $217.7 million in the same period in the prior year. As a percentage of net sales, SG&A expenses decreased to 28.6% from 29.7% in the six-month period. The increase in SG&A expenses during the three and six months ended January 31, 2026 was primarily due to foreign currency translation, as well as increased headcount and other costs from acquisitions, including incremental amortization expense from the acquired intangible assets. The decrease in SG&A as a percentage of net sales for both the three and six-month periods is primarily due to cost reductions from facility closures and other reorganization activities completed in the prior fiscal year, as well as the absence of $3.8 million of charges related to those activities recorded in the prior-year periods.
Previous wording
Operating income increased 15.4% to $68.0 million in the three months ended October 31, 2025, compared to $58.9 million in the same period in the prior year. The increase in operating income was due to organic sales growth in the Americas & Asia reportable segment, gross margin improvement across both reportable segments, and SG&A cost efficiencies in the Europe & Asia segment. Additionally, operating income for three months ended October 31, 2024 included non-recurring acquisition-related and other costs of $5.1 million.
Current wording
Operating income increased 21.4% to $62.2 million and increased 18.2% to $130.2 million in the three and six months ended January 31, 2026, respectively, compared to $51.2 million and $110.2 million in the same periods in the prior year. The increase in operating income in both the three and six-month periods was driven by organic sales growth in the Americas & Asia reportable segment, gross margin improvement across both reportable segments, and SG&A cost efficiencies in the Europe & Australia segment. Additionally, operating income for the three and six months ended January 31, 2025 included facility closure and other reorganization costs of $5.7 million. Operating income for the six months ended January 31, 2025 also included non-recurring acquisition-related and other costs of $5.1 million.
Previous wording
The Company’s income tax rate was 21.2% and 20.4% for the three months ended October 31, 2025 and 2024, respectively.
Current wording
The Company’s income tax rate was 22.5% for both the three months ended January 31, 2026 and 2025, and the income tax rate was 21.8% and 21.4% for the six months ended January 31, 2026 and 2025, respectively.
Previous wording
The following is a summary of segment information for the three months ended October 31, 2025 and 2024:
Current wording
The following is a summary of segment information for the three and six months ended January 31, 2026 and 2025:
Previous wording
Organic sales in the Americas increased in the mid-single digits in the three months ended October 31, 2025. Organic sales growth was driven by growth in the wire identification and product identification product lines, which was partially offset by an organic sales decline in the safety and facility identification product line.
Current wording
Organic sales in the Americas increased in the low-single digits in both the three and six months ended January 31, 2026 compared to the same periods in the prior year. Organic sales growth in both the three and six-month periods was driven by growth in the wire identification and product identification product lines, which was partially offset by an organic sales decline in the people identification product line.
Previous wording
Organic sales in Asia increased approximately 12% in the three months ended October 31, 2025. The organic sales increase in the three-month period was realized throughout Asia with continued growth from electronics manufacturing services providers, technology companies, and industrial suppliers across Japan, India, Malaysia and Singapore. Organic sales growth was primarily driven by growth in the product identification and safety and facility identification product lines.
Current wording
Organic sales in Asia increased approximately 14% in the three months ended January 31, 2026, and increased approximately 13% in the six months ended January 31, 2026 compared to the same periods in the prior year. The organic sales increase in both the three month and six-month periods was realized throughout Asia with continued growth from electronics manufacturing services providers, technology companies, and industrial suppliers across the region. Organic sales growth in both the three and six-month periods was primarily driven by increased organic sales in China, India and Malaysia, as well as Japan in the six-month period.
Previous wording
Organic sales in Europe declined in the low-single digits in the three months ended October 31, 2025. The organic sales decline during the three-month period was primarily driven by a decrease in the people identification and safety and facility identification product lines, which was partially offset by organic sales growth in the wire identification product line. The decline was driven by the Middle East, the United Kingdom and Germany, which was partially offset by growth in France.
Current wording
Organic sales in Europe declined in the low-single digits in both the three and six months ended January 31, 2026 compared to the same periods in the prior year. For both the three and six-month periods, the organic sales decline was primarily driven by lower volume in the safety and facility identification and product identification product lines, which was partially offset by organic growth in the wire identification product line.
Previous wording
Segment profit increased to $18.7 million in the three months ended October 31, 2025 compared to $13.1 million in the same period of the prior year. As a percentage of net sales, segment profit increased to 13.7% from 10.0% in the same period of the prior year. The increase in segment profit was primarily driven by a more efficient cost structure following reorganization activities completed in the prior fiscal year. Additionally, segment profit for the three months ended October 31, 2024 included acquisition-related costs and other purchase accounting adjustments.
Current wording
Europe & Australia segment profit increased 35.5% to $15.4 million in the three months ended January 31, 2026 compared to $11.4 million in the same period in the prior year. Segment profit increased 39.4% to $34.2 million in the six months ended January 31, 2026 compared to $24.5 million in the same period in the prior year. As a percentage of net sales, segment profit increased to 11.6% from 9.3% for the three-month period and segment profit increased to 12.7% from 9.6% for the six-month period ended January 31, 2026, compared to the same periods in the prior year. The increase in segment profit was primarily driven by a more efficient cost structure following reorganization activities completed in the prior fiscal year. Additionally, segment profit for the three and six months ended January 31, 2025 included reorganization costs and purchase accounting adjustments.
Previous wording
The Company’s cash balances are generated and held in numerous locations throughout the world. At October 31, 2025, approximately 99% of the Company’s cash and cash equivalents were held outside the United States. The Company’s organic and inorganic growth has historically been funded by a combination of cash provided by operating activities and debt financing. The Company believes that its cash flow from operating activities and its borrowing capacity are sufficient to fund its anticipated requirements for working capital, capital expenditures, research and development, common stock repurchases, and dividend payments for the next 12 months. Although the Company believes these sources of cash are currently sufficient to fund domestic operations, annual cash needs could require repatriation of cash to the U.S. from foreign jurisdictions, which may result in additional tax payments.
Current wording
The Company’s cash balances are generated and held in numerous locations throughout the world. At January 31, 2026, approximately 98% of the Company’s cash and cash equivalents were held outside the United States. The Company’s organic and inorganic growth has historically been funded by a combination of cash provided by operating activities and debt financing. The Company believes that its cash flow from operating activities and its borrowing capacity are sufficient to fund its anticipated requirements for working capital, capital expenditures, research and development, share repurchases, and dividend payments for the next 12 months. Although the Company believes these sources of cash are currently sufficient to fund domestic operations, annual cash needs could require repatriation of cash to the U.S. from foreign jurisdictions, which may result in additional tax payments.
Previous wording
Cash and cash equivalents were $182.7 million at October 31, 2025, a decrease of $8.3 million from July 31, 2025. The significant changes were as follows:
Current wording
Cash and cash equivalents were $176.5 million at January 31, 2026, an increase of $2.1 million from July 31, 2025. The significant changes were as follows:
Previous wording
Net cash provided by operating activities was $33.4 million in the three months ended October 31, 2025, compared to $23.4 million in the same period of the prior year. The increase in cash provided by operating activities was primarily due toimproved profitability from both reportable segments.
Current wording
Net cash provided by operating activities was $86.7 million in the six months ended January 31, 2026, compared to $63.0 million in the same period of the prior year. The increase in cash provided by operating activities was primarily due to improved segment profit from both reportable segments.
Previous wording
Net cash used in investing activities was $28.4 million in the three months ended October 31, 2025, primarily reflecting the acquisition of a business for $17.4 million and capital expenditures of $11.0 million. Net cash used in investing activities was $147.9 million in the three months ended October 31, 2024, primarily reflecting acquisition of businesses totaling $140.6 million and capital expenditures of $7.3 million.
Current wording
Net cash used in investing activities was $41.3 million in the six months ended January 31, 2026, which consisted of the acquisition of a business of $17.4 million and capital expenditures of $21.9 million. Net cash used in investing activities was $151.7 million in the six months ended January 31, 2025, which consisted of the acquisition of businesses totaling $137.3 million and capital expenditures of $14.4 million.
Previous wording
Net cash provided by financing activities was $2.6 million in the three months ended October 31, 2025, compared to $18.3 million of net cash used in financing activities in the same period of the prior year. The change was primarily driven by lower net borrowings and, to a lesser extent, increased share repurchases during the three months ended October 31, 2025 compared to the same period in the prior year.
Current wording
Net cash used in financing activities was $47.9 million in the six months ended January 31, 2026, compared to $22.3 million used in the same period of the prior year. The change was primarily driven by increased net repayments on the Company's credit agreement and, to a lesser extent, increased share repurchases during the six months ended January 31, 2026 compared to the same period in the prior year.
Previous wording
As of October 31, 2025, the outstanding balance on the Company’s credit agreement was $115.9 million. The maximum amount outstanding on the credit agreement during the three months ended October 31, 2025 was $119.6 million. As of October 31, 2025, the U.S. dollar-denominated borrowings of $54.5 million bear interest at 5.0%; the Euro-denominated borrowings of €44.0 million bear interest at 2.8%; and the British Pound-denominated borrowings of £8.0 million bear interest at 4.8%. The Company had letters of credit outstanding under the credit agreement of $2.1 million as of October 31, 2025 and there was $182.0 million available for future borrowing, which can be increased to $1,077.0 million at the Company’s option, subject to certain conditions. The credit agreement has a final maturity date of November 14, 2027. As such, borrowings were classified as long-term on the condensed consolidated balance sheets.
Current wording
As of January 31, 2026, the outstanding balance on the Company’s credit agreement was $78.7 million. The maximum amount outstanding on the credit agreement during the six months ended January 31, 2026 was $119.6 million. As of January 31, 2026, the U.S. dollar-denominated borrowings of $15.0 million bear interest at 4.9%; the Euro-denominated borrowings of €44.0 million bear interest at 2.8%; and the British Pound-denominated borrowings of £8.0 million bear interest at 4.6%. The Company had letters of credit outstanding under the credit agreement of $2.1 million as of January 31, 2026, and there was $219.2 million available for future borrowing, which can be increased to $1,169.2 million at the Company’s option, subject to certain conditions. The credit agreement has a final maturity date of November 14, 2027. As such, borrowings were classified as long-term on the condensed consolidated balance sheets.
Previous wording
The Company’s credit agreement requires it to maintain certain financial covenants, including a ratio of debt to the trailing twelve months EBITDA, as defined in the debt agreements, of not more than a 3.5 to 1.0 ratio (leverage ratio) and the trailing twelve months EBITDA to interest expense of not less than a 3.0 to 1.0 ratio (interest expense coverage). As of October 31, 2025, the Company was in compliance with these financial covenants, with a ratio of debt to EBITDA, as defined by the agreements, equal to 0.4 to 1.0 and the interest expense coverage ratio equal to 70.8 to 1.0.
Current wording
The Company’s credit agreement requires it to maintain certain financial covenants, including a ratio of debt to the trailing twelve months EBITDA, as defined in the debt agreements, of not more than a 3.5 to 1.0 ratio (leverage ratio) and the trailing twelve months EBITDA to interest expense of not less than a 3.0 to 1.0 ratio (interest expense coverage). As of January 31, 2026, the Company was in compliance with these financial covenants, with a ratio of debt to EBITDA, as defined by the agreements, equal to 0.2 to 1.0 and the interest expense coverage ratio equal to 77.9 to 1.0.