MSA Safety Announces Fourth Quarter and Full Year 2024 Results
MSA Safety reported its Q4 and full-year 2024 financial results, showing moderate growth and improved profitability. Q4 net sales reached $500 million, up 1% GAAP and 2% organic year-over-year, with GAAP operating income of $118 million (23.5% of sales).
Full-year 2024 highlights include $1.8 billion in net sales (1% GAAP increase), GAAP operating income of $389 million (21.5% of sales), and GAAP earnings of $285 million ($7.21 per diluted share). The company maintained strong financial position with net leverage of 0.7x.
For 2025, MSA expects low-single digit organic sales growth, facing challenges including non-recurrence of U.S. Air Force order, NFPA standard change, and mixed industrial market demand. The company returned significant value to shareholders in 2024 through $79 million in dividends and $30 million in share repurchases, while repaying $94 million in debt.
MSA Safety ha riportato i risultati finanziari del quarto trimestre e dell'intero anno 2024, mostrando una crescita moderata e una redditività migliorata. Le vendite nette del quarto trimestre hanno raggiunto 500 milioni di dollari, con un aumento dell'1% in base ai principi contabili GAAP e del 2% in termini organici rispetto all'anno precedente, con un reddito operativo GAAP di 118 milioni di dollari (23,5% delle vendite).
I punti salienti dell'intero anno 2024 includono 1,8 miliardi di dollari in vendite nette (aumento GAAP dell'1%), reddito operativo GAAP di 389 milioni di dollari (21,5% delle vendite) e utili GAAP di 285 milioni di dollari (7,21 dollari per azione diluita). L'azienda ha mantenuto una solida posizione finanziaria con un leverage netto di 0,7x.
Per il 2025, MSA prevede una crescita delle vendite organiche a cifra singola bassa, affrontando sfide tra cui la non ripetizione di un ordine dell'Air Force degli Stati Uniti, il cambiamento degli standard NFPA e una domanda mista nel mercato industriale. L'azienda ha restituito un valore significativo agli azionisti nel 2024 attraverso 79 milioni di dollari in dividendi e 30 milioni di dollari in riacquisti di azioni, mentre ha rimborsato 94 milioni di dollari di debito.
MSA Safety informó sus resultados financieros del cuarto trimestre y del año completo 2024, mostrando un crecimiento moderado y una rentabilidad mejorada. Las ventas netas del cuarto trimestre alcanzaron 500 millones de dólares, un aumento del 1% según GAAP y del 2% orgánico interanual, con un ingreso operativo GAAP de 118 millones de dólares (23,5% de las ventas).
Los aspectos destacados del año completo 2024 incluyen 1,8 mil millones de dólares en ventas netas (incremento GAAP del 1%), ingreso operativo GAAP de 389 millones de dólares (21,5% de las ventas) y ganancias GAAP de 285 millones de dólares (7,21 dólares por acción diluida). La empresa mantuvo una sólida posición financiera con un apalancamiento neto de 0,7x.
Para 2025, MSA espera un crecimiento de ventas orgánicas de un solo dígito bajo, enfrentando desafíos como la no recurrencia de un pedido de la Fuerza Aérea de EE. UU., el cambio en los estándares NFPA y una demanda industrial mixta. La empresa devolvió un valor significativo a los accionistas en 2024 a través de 79 millones de dólares en dividendos y 30 millones de dólares en recompra de acciones, mientras pagaba 94 millones de dólares en deuda.
MSA Safety는 2024년 4분기 및 연간 재무 결과를 보고하며, 보통의 성장과 개선된 수익성을 보여주었습니다. 4분기 순매출은 5억 달러에 달하며, GAAP 기준으로 1%, 유기적으로 2% 증가했습니다. GAAP 운영 소득은 1억 1,800만 달러(매출의 23.5%)입니다.
2024년 전체 하이라이트에는 18억 달러의 순매출(1% GAAP 증가), GAAP 운영 소득 3억 8,900만 달러(매출의 21.5%), GAAP 수익 2억 8,500만 달러(희석 주당 7.21달러)가 포함됩니다. 회사는 0.7배의 순레버리지로 강력한 재무 상태를 유지했습니다.
2025년에는 MSA가 낮은 한 자릿수의 유기적 매출 성장을 예상하며, 미국 공군 주문의 비재발성, NFPA 표준 변경 및 혼합 산업 시장 수요 등 여러 과제에 직면하고 있습니다. 이 회사는 2024년 동안 7,900만 달러의 배당금과 3천만 달러의 자사주 매입을 통해 주주에게 상당한 가치를 반환했으며, 9,400만 달러의 부채를 상환했습니다.
MSA Safety a publié ses résultats financiers du quatrième trimestre et de l'année entière 2024, montrant une croissance modérée et une rentabilité améliorée. Les ventes nettes du quatrième trimestre ont atteint 500 millions de dollars, en hausse de 1% selon les normes GAAP et de 2% en termes organiques par rapport à l'année précédente, avec un bénéfice d'exploitation GAAP de 118 millions de dollars (23,5% des ventes).
Les points forts de l'année 2024 incluent 1,8 milliard de dollars en ventes nettes (augmentation GAAP de 1%), bénéfice d'exploitation GAAP de 389 millions de dollars (21,5% des ventes) et bénéfice GAAP de 285 millions de dollars (7,21 dollars par action diluée). L'entreprise a maintenu une solide position financière avec un levier net de 0,7x.
Pour 2025, MSA prévoit une croissance des ventes organiques à un chiffre bas, faisant face à des défis tels que la non-répétition d'une commande de l'Armée de l'air des États-Unis, le changement de norme NFPA et une demande industrielle mixte. L'entreprise a restitué une valeur significative à ses actionnaires en 2024 grâce à 79 millions de dollars de dividendes et 30 millions de dollars de rachat d'actions, tout en remboursant 94 millions de dollars de dettes.
MSA Safety hat die Finanzzahlen für das vierte Quartal und das gesamte Jahr 2024 veröffentlicht, die ein moderates Wachstum und verbesserte Rentabilität zeigen. Die Nettoumsätze im vierten Quartal erreichten 500 Millionen Dollar, was einem Anstieg von 1% nach GAAP und 2% organisch im Jahresvergleich entspricht, mit einem GAAP-Betriebsgewinn von 118 Millionen Dollar (23,5% des Umsatzes).
Die Höhepunkte des gesamten Jahres 2024 umfassen 1,8 Milliarden Dollar an Nettoumsätzen (1% GAAP-Anstieg), GAAP-Betriebsgewinn von 389 Millionen Dollar (21,5% des Umsatzes) und GAAP-Gewinn von 285 Millionen Dollar (7,21 Dollar pro verwässerter Aktie). Das Unternehmen hat eine starke Finanzlage mit einem Nettoverschuldungsgrad von 0,7x aufrechterhalten.
Für 2025 erwartet MSA ein niedriges einstelliges organisches Umsatzwachstum und sieht sich Herausforderungen gegenüber, darunter die Nichtwiederholung eines Auftrags der US-Luftwaffe, Änderungen des NFPA-Standards und eine gemischte Nachfrage im Industriesektor. Das Unternehmen hat im Jahr 2024 den Aktionären durch 79 Millionen Dollar an Dividenden und 30 Millionen Dollar an Aktienrückkäufen erheblichen Wert zurückgegeben und 94 Millionen Dollar Schulden zurückgezahlt.
- Q4 operating margin improved to 23.5% from 20.6% year-over-year
- Full-year GAAP earnings increased 386% to $285 million
- Strong balance sheet with net leverage ratio of 0.7x
- Adjusted EPS grew 10% to $7.70 for full-year 2024
- Operating margin expansion through effective SG&A management
- Free cash flow declined 39% to $242 million for full-year
- International segment operating income decreased 5% year-over-year
- Lower-than-expected sales growth
- Softer U.S. fire service demand
Insights
MSA Safety's Q4 and FY2024 performance reflects operational resilience amid challenging market conditions. The Americas segment, contributing
The company's margin expansion story is particularly noteworthy, with full-year adjusted operating margin improving 70 basis points to
Segment analysis reveals divergent trends: Fire Service showed
The balance sheet remains robust with net debt of
Looking ahead, management's guidance for low-single-digit organic growth in 2025 reflects both opportunities (infrastructure stimulus, connected worker technology adoption) and challenges (NFPA standard change, mixed industrial demand). The company's focus on the MSA Business System implementation suggests continued operational improvement potential, though macro uncertainties and FX headwinds require careful monitoring.
Fourth Quarter 2024 Highlights
- Achieved net sales of
$500 million 1% GAAP increase and2% organic(a) increase year-over-year - Generated GAAP operating income of
$118 million 23.5% of sales, and adjusted operating income of$120 million 24.0% of sales - Recorded GAAP net income of
$88 million $2.22 $89 million $2.25 - Invested
$14 million $43 million $20 million $10 million
Full Year 2024 Highlights
- Achieved net sales of
$1.8 billion 1% GAAP increase and2% organic increase year-over-year - Generated GAAP operating income of
$389 million 21.5% of sales, and adjusted operating income of$414 million 22.9% of sales - Recorded GAAP earnings of
$285 million $7.21 $305 million $7.70 - Invested
$54 million $94 million $79 million $30 million - Improved strong financial position with net leverage of 0.7x and ample liquidity
(a) Definition of organic revenue growth provided on the bottom of page eight. |
"We closed 2024 with solid performance against the backdrop of a dynamic operating environment," said Steve Blanco, MSA Safety President and Chief Executive Officer. "Our team delivered resilient full year results with double-digit EPS growth and solid operating margin expansion, supported by effective SG&A management, despite lower-than-expected sales growth. This year, our sales growth headwinds included pockets of industrial end market weakness, softer
Financial Highlights
Three Months Ended December 31, | Twelve Months Ended December 31, | |||||||||||
($ millions, except per share data and percentages) | 2024 | 2023 | % Change (a) | 2024 | 2023 | % Change (a) | ||||||
Net Sales | $ 500 | $ 495 | 1 % | $ 1,808 | $ 1,788 | 1 % | ||||||
GAAP | ||||||||||||
Operating income | 118 | 102 | 15 % | 389 | 231 | 68 % | ||||||
% of Net sales | 23.5 % | 20.6 % | 290 bps | 21.5 % | 12.9 % | 860 bps | ||||||
Net income | 88 | 76 | 15 % | 285 | 59 | 386 % | ||||||
Diluted EPS | $ 2.22 | $ 1.93 | 15 % | $ 7.21 | $ 1.48 | 387 % | ||||||
Non-GAAP | ||||||||||||
Adjusted operating income | $ 120 | $ 115 | 4 % | $ 414 | $ 398 | 4 % | ||||||
% of Net sales | 24.0 % | 23.3 % | 70 bps | 22.9 % | 22.2 % | 70 bps | ||||||
Adjusted EBITDA | 135 | 129 | 5 % | 469 | 449 | 4 % | ||||||
% of Net sales | 26.9 % | 26.0 % | 90 bps | 26.0 % | 25.1 % | 90 bps | ||||||
Adjusted earnings | 89 | 82 | 9 % | 305 | 278 | 10 % | ||||||
Adjusted diluted EPS | $ 2.25 | $ 2.06 | 9 % | $ 7.70 | $ 7.03 | 10 % | ||||||
Free Cash Flow | 93 | 147 | (36) % | 242 | 397 | (39) % | ||||||
Free Cash Flow Conversion(b) | 105 % | 180 % | 80 % | 143 % | ||||||||
Americas Segment | ||||||||||||
Net sales | $ 337 | $ 333 | 1 % | $ 1,247 | $ 1,236 | 1 % | ||||||
GAAP Operating income | 101 | 97 | 5 % | 371 | 349 | 6 % | ||||||
% of Net sales | 30.1 % | 29.2 % | 90 bps | 29.8 % | 28.3 % | 150 bps | ||||||
Adjusted Operating income | 104 | 99 | 4 % | 380 | 360 | 6 % | ||||||
% of Net sales | 30.7 % | 29.8 % | 90 bps | 30.5 % | 29.1 % | 140 bps | ||||||
International Segment | ||||||||||||
Net sales | $ 163 | $ 163 | — % | $ 561 | $ 552 | 2 % | ||||||
GAAP Operating income | 28 | 28 | (1) % | 79 | 83 | (5) % | ||||||
% of Net sales | 17.1 % | 17.2 % | (10) bps | 14.1 % | 15.0 % | (90) bps | ||||||
Adjusted Operating income | 29 | 30 | (3) % | 85 | 90 | (6) % | ||||||
% of Net sales | 17.6 % | 18.2 % | (60) bps | 15.1 % | 16.2 % | (110) bps | ||||||
(a) Percentage change may not calculate exactly due to rounding. |
(b) Free cash flow conversion refers to the ratio of free cash flow to adjusted earnings. The free cash flow for the twelve months ended 2023 is adjusted to reflect the divestiture of MSA LLC. |
Balance Sheet and Cash Flow
"While the fourth quarter and full year proved to be more volatile than expected, our team's strong operational execution this year delivered resilient results, including continued margin enhancement, double-digit EPS growth, and moderately lower than expected free cash flow conversion. We also made substantial progress on strengthening our financial position and returned cash to shareholders," commented Lee McChesney, MSA Safety Senior Vice President and Chief Financial Officer. "While there are macro and geopolitical considerations included in the 2025 outlook, we retain a cautious optimism given our generally healthy operating conditions, solid order pace, and capital deployment flexibility, and we are prepared for a wide array of scenarios," McChesney added.
The company balanced capital allocation priorities in 2024 by returning
2025 Net Sales Outlook
The company is expecting low-single digit full-year organic sales growth in 2025, and has provided an update on the operating environment below:
Positives
- Diverse end market demand supportive of healthy order momentum entering 2025
- Growing global demand for safety products and solutions
- Generally stable funding and operating environment for fire service
- Supportive market dynamics in detection and continued adoption of connected worker technology
- Infrastructure stimulus in key regions
- Leveraging MSA Business System to support strong operating performance and margin expansion
Challenges
- Non-recurrence of
U.S. Air Force order and normalized backlog - 2025 North American Fire Protection Association (NFPA) standard change
- Mixed industrial end market demand
- Macroeconomic and geopolitical uncertainty
- Foreign exchange headwinds to sales and earnings
Conference Call
MSA Safety will host a conference call on Thursday, February 13, 2025 at 10:00 a.m. Eastern Time to discuss the fourth quarter and full year 2024 results. The call and an accompanying slide presentation will be webcast at http://investors.msasafety.com/ under the "News and Events" tab, subheading "Events & Presentations." Investors and interested parties can also dial into the call at 1-844-854-4415 (Toll Free) or 1-412-902-6599 (International). When prompted, please instruct the operator to be joined into the MSA Safety Incorporated conference call. A replay of the conference call will be available at http://investors.msasafety.com/ shortly after the conclusion of the presentation and will be available for the next 90 days.
MSA Safety Incorporated Consolidated Statement of Income (Unaudited) (In thousands, except per share amounts)
| |||||||
Three Months Ended December 31, | Twelve Months Ended December 31, | ||||||
2024 | 2023 | 2024 | 2023 | ||||
Net sales | $ 499,696 | $ 495,358 | $ 1,808,140 | $ 1,787,647 | |||
Cost of products sold | 265,267 | 257,175 | 947,695 | 935,509 | |||
Gross profit | 234,429 | 238,183 | 860,445 | 852,138 | |||
Selling, general and administrative | 100,378 | 107,043 | 394,707 | 396,645 | |||
Research and development | 16,831 | 19,082 | 66,526 | 67,988 | |||
Restructuring charges | 653 | 1,510 | 6,397 | 9,892 | |||
Currency exchange (gains) losses, net | (1,077) | 8,298 | 3,638 | 17,079 | |||
Loss on divestiture of MSA LLC | — | — | — | 129,211 | |||
Product liability expense | — | — | — | 3 | |||
Operating income | 117,644 | 102,250 | 389,177 | 231,320 | |||
Interest expense | 7,333 | 9,584 | 36,889 | 46,733 | |||
Other income, net | (6,503) | (6,614) | (22,718) | (22,101) | |||
Total other expense, net | 830 | 2,970 | 14,171 | 24,632 | |||
Income before income taxes | 116,814 | 99,280 | 375,006 | 206,688 | |||
Provision for income taxes | 28,868 | 22,870 | 90,039 | 148,105 | |||
Net income | 87,946 | 76,410 | 284,967 | 58,583 | |||
Earnings per share attributable to common shareholders: | |||||||
Basic | $ 2.23 | $ 1.94 | $ 7.24 | $ 1.49 | |||
Diluted | $ 2.22 | $ 1.93 | $ 7.21 | $ 1.48 | |||
Basic shares outstanding | 39,374 | 39,339 | 39,371 | 39,307 | |||
Diluted shares outstanding | 39,548 | 39,541 | 39,535 | 39,473 | |||
MSA Safety Incorporated Condensed Consolidated Balance Sheet (Unaudited) (In thousands)
| |||
December 31, | December 31, | ||
Assets | |||
Cash and cash equivalents | $ 164,560 | $ 146,442 | |
Trade receivables, net | 279,213 | 294,678 | |
Inventories | 296,796 | 292,604 | |
Other current assets | 62,461 | 52,546 | |
Total current assets | 803,030 | 786,270 | |
Property, plant and equipment, net | 211,865 | 211,877 | |
Prepaid pension cost | 224,638 | 172,161 | |
Goodwill | 620,895 | 627,534 | |
Intangible assets, net | 246,437 | 266,134 | |
Other noncurrent assets | 98,919 | 106,174 | |
Total assets | $ 2,205,784 | $ 2,170,150 | |
Liabilities and shareholders' equity | |||
Notes payable and current portion of long-term debt, net | $ 26,391 | $ 26,522 | |
Accounts payable | 108,163 | 111,872 | |
Other current liabilities | 153,539 | 194,424 | |
Total current liabilities | 288,093 | 332,818 | |
Long-term debt, net | 481,622 | 575,170 | |
Pensions and other employee benefits | 134,251 | 143,967 | |
Deferred tax liabilities | 107,691 | 102,419 | |
Other noncurrent liabilities | 50,808 | 48,974 | |
Total shareholders' equity | 1,143,319 | 966,802 | |
Total liabilities and shareholders' equity | $ 2,205,784 | $ 2,170,150 | |
MSA Safety Incorporated Condensed Consolidated Statement of Cash Flows (Unaudited) (In thousands)
| |||||||
Three Months Ended | Twelve Months Ended | ||||||
2024 | 2023 | 2024 | 2023 | ||||
Net income | $ 87,946 | $ 76,410 | $ 284,967 | $ 58,583 | |||
Depreciation and amortization | 16,770 | 15,808 | 64,333 | 60,773 | |||
Tax-effected loss on divestiture of MSA LLC | — | — | — | 199,578 | |||
Contribution on divestiture of MSA LLC | — | — | — | (341,186) | |||
Change in working capital and other operating | 3,192 | 66,696 | (52,872) | 115,109 | |||
Cash flow from operating activities | 107,908 | 158,914 | 296,428 | 92,857 | |||
Capital expenditures | (14,409) | (11,785) | (54,223) | (42,764) | |||
Property disposals and other investing | 378 | 121 | 468 | 2,811 | |||
Cash flow used in investing activities | (14,031) | (11,664) | (53,755) | (39,953) | |||
Change in debt | (43,251) | (144,750) | (94,254) | 23,898 | |||
Cash dividends paid | (20,089) | (18,489) | (78,759) | (73,488) | |||
Company stock purchases under repurchase program | (9,906) | — | (29,932) | — | |||
Other financing | 729 | 479 | (5,744) | (2,663) | |||
Cash flow used in financing activities | (72,517) | (162,760) | (208,689) | (52,253) | |||
Effect of exchange rate changes on cash, cash equivalents and restricted cash | (11,233) | (2,519) | (17,295) | (16,671) | |||
Increase (decrease) in cash, cash equivalents and restricted cash | $ 10,127 | $ (18,029) | $ 16,689 | $ (16,020) | |||
MSA Safety Incorporated Reconciliation of GAAP to Non-GAAP Financial Measures Organic revenue change (Unaudited) Consolidated
| |||||
Three Months Ended December 31, 2024 | |||||
Fire Service(a) | Detection(b) | Industrial PPE | Net Sales | ||
GAAP reported sales change | 7 % | (3) % | (4) % | 1 % | |
Plus: Currency translation effects | — % | 1 % | 3 % | 1 % | |
Organic sales change | 7 % | (2) % | (1) % | 2 % | |
Twelve Months Ended December 31, 2024 | |||||
Fire Service(a) | Detection(b) | Industrial PPE | Net Sales | ||
GAAP reported sales change | 4 % | 1 % | (3) % | 1 % | |
Plus: Currency translation effects | — % | 1 % | 1 % | 1 % | |
Organic sales change | 4 % | 2 % | (2) % | 2 % | |
(a) Fire Service includes Breathing Apparatus and Firefighter Helmets and Protective Apparel. (b) Detection includes Fixed Gas and Flame Detection and Portable Gas Detection. (c) Industrial PPE and Other includes Industrial Head Protection, Fall Protection and Non-Core. | |||||
Management believes that organic revenue growth is a useful metric for investors, as foreign currency translation can have a material impact on revenue growth trends. Organic revenue growth highlights ongoing business performance excluding the impact of fluctuating foreign currencies, which is outside of management's control. There can be no assurances that MSA's definition of organic revenue growth is consistent with that of other companies. As such, management believes that it is appropriate to consider revenue growth determined on a GAAP basis in addition to this non-GAAP financial measure.
MSA Safety Incorporated Reconciliation of GAAP to Non-GAAP Financial Measures Organic revenue growth (Unaudited)
Americas Segment
| |||||
Three Months Ended December 31, 2024 | |||||
Fire Service(a) | Detection(b) | Industrial PPE | Net Sales | ||
GAAP reported sales change | 5 % | (2) % | (3) % | 1 % | |
Plus: Currency translation effects | 1 % | 1 % | 5 % | 2 % | |
Organic sales change | 6 % | (1) % | 2 % | 3 % | |
Twelve Months Ended December 31, 2024 | |||||
Fire Service(a) | Detection(b) | Industrial PPE | Net Sales | ||
GAAP reported sales change | 1 % | 2 % | (1) % | 1 % | |
Plus: Currency translation effects | — % | — % | 2 % | 1 % | |
Organic sales change | 1 % | 2 % | 1 % | 2 % | |
International Segment | |||||
Three Months Ended December 31, 2024 | |||||
Fire Service(a) | Detection(b) | Industrial PPE | Net Sales | ||
GAAP reported sales change | 10 % | (4) % | (6) % | — % | |
Plus: Currency translation effects | 1 % | — % | — % | — % | |
Organic sales change | 11 % | (4) % | (6) % | — % | |
Twelve Months Ended December 31, 2024 | |||||
Fire Service(a) | Detection(b) | Industrial PPE | Net Sales | ||
GAAP reported sales change | 12 % | — % | (9) % | 2 % | |
Plus: Currency translation effects | — % | — % | — % | (1) % | |
Organic sales change | 12 % | — % | (9) % | 1 % | |
(a) Fire Service includes Breathing Apparatus and Firefighter Helmets and Protective Apparel. (b) Detection includes Fixed Gas and Flame Detection and Portable Gas Detection. (c) Industrial PPE and Other includes Industrial Head Protection, Fall Protection and Non-Core. | |||||
Management believes that organic revenue growth is a useful metric for investors, as foreign currency translation can have a material impact on revenue growth trends. Organic revenue growth highlights ongoing business performance excluding the impact of fluctuating foreign currencies, which is outside of management's control. There can be no assurances that MSA's definition of organic revenue growth is consistent with that of other companies. As such, management believes that it is appropriate to consider revenue growth determined on a GAAP basis in addition to this non-GAAP financial measure.
MSA Safety Incorporated Reconciliation of Non-GAAP Financial Measures Adjusted operating income (Unaudited) Adjusted EBITDA (Unaudited) (In thousands)
| |||||||
Three Months Ended December 31, | Twelve Months Ended December 31, | ||||||
2024 | 2023 | 2024 | 2023 | ||||
Adjusted EBITDA | $ 469,431 | $ 449,243 | |||||
Less: | |||||||
Depreciation and amortization | 14,484 | 13,498 | 55,159 | 51,527 | |||
Adjusted operating income | 120,158 | 115,255 | 414,272 | 397,716 | |||
Less: | |||||||
Currency exchange (gains) losses, net | (1,077) | 8,298 | 3,638 | 17,079 | |||
Amortization of acquisition-related intangible assets | 2,286 | 2,310 | 9,174 | 9,246 | |||
Restructuring charges | 653 | 1,510 | 6,397 | 9,892 | |||
Net cost for product related legal matter | — | — | 5,000 | — | |||
Transaction costs (a) | 652 | 887 | 886 | 965 | |||
Loss on divestiture of MSA LLC | — | — | — | 129,211 | |||
Product liability expense | — | — | — | 3 | |||
GAAP operating income | 117,644 | 102,250 | 389,177 | 231,320 | |||
Less: | |||||||
Interest expense | 7,333 | 9,584 | 36,889 | 46,733 | |||
Other income, net | (6,503) | (6,614) | (22,718) | (22,101) | |||
Income before income taxes | 116,814 | 99,280 | 375,006 | 206,688 | |||
Provision for income taxes | 28,868 | 22,870 | 90,039 | 148,105 | |||
Net income | $ 87,946 | $ 76,410 | $ 284,967 | $ 58,583 | |||
(a) Transaction costs include advisory, legal, accounting, valuation, and other professional or consulting fees incurred during acquisitions and divestitures. These costs are included in selling, general and administrative expense in the Consolidated Statements of Income. |
Adjusted operating income, adjusted operating margin, adjusted earnings before interest, taxes, depreciation and amortization (EBITDA) and adjusted EBITDA margin are the measures used by management to evaluate segment performance and allocate resources. As such, management believes these measures are useful metrics for investors. Adjusted operating income is defined as operating income excluding restructuring charges, currency exchange gains / losses, loss on divestiture of MSA LLC, product liability expense, net cost for product related legal matter, amortization of acquisition-related intangible assets, and transaction costs. Adjusted operating margin is defined as adjusted operating income divided by net sales to external customers. Adjusted EBITDA is defined as adjusted operating income plus depreciation and amortization, and adjusted EBITDA margin is defined as adjusted EBITDA divided by net sales to external customers. Adjusted operating income, adjusted operating margin, adjusted EBITDA and adjusted EBITDA margin are not recognized terms under GAAP, and therefore do not purport to be alternatives to operating income or operating margin as a measure of operating performance. The company's definition of adjusted operating income, adjusted operating margin, adjusted EBITDA and adjusted EBITDA margin may not be comparable to similarly titled measures of other companies. As such, management believes that it is appropriate to consider operating income and net income determined on a GAAP basis in addition to these non-GAAP measures.
MSA Safety Incorporated Reconciliation of Non-GAAP Financial Measures Adjusted earnings (Unaudited) Adjusted earnings per diluted share (Unaudited) (In thousands, except percentages and per share amounts)
| |||||||||||
Three Months Ended December 31, | Twelve Months Ended December 31, | ||||||||||
2024 | 2023 | % Change | 2024 | 2023 | % Change | ||||||
Net income | $ 87,946 | $ 76,410 | 15 % | $ 58,583 | 386 % | ||||||
Currency exchange (gains) losses, net | (1,077) | 8,298 | 3,638 | 17,079 | |||||||
Amortization of acquisition-related intangible assets | 2,286 | 2,310 | 9,174 | 9,246 | |||||||
Restructuring charges | 653 | 1,510 | 6,397 | 9,892 | |||||||
Asset related losses and other | (141) | 844 | 819 | 173 | |||||||
Net cost for product related legal matter | — | — | 5,000 | — | |||||||
Pension settlement | — | — | 1,308 | — | |||||||
Transaction costs (a) | 652 | 887 | 886 | 965 | |||||||
Loss on divestiture of MSA LLC | — | — | — | 129,211 | |||||||
Deferred tax asset write-off related to divestiture of MSA LLC | — | — | 70,366 | ||||||||
Product liability expense | — | — | — | 3 | |||||||
Tax benefit associated with tax reform | (710) | (5,313) | — | (5,313) | |||||||
Income tax expense on adjustments | (567) | (3,409) | (7,689) | (12,657) | |||||||
Adjusted earnings | $ 89,042 | $ 81,537 | 9 % | 10 % | |||||||
Adjusted earnings per diluted share | $ 2.25 | $ 2.06 | 9 % | $ 7.70 | $ 7.03 | 10 % | |||||
(a) Transaction costs include advisory, legal, accounting, valuation, and other professional or consulting fees incurred during acquisitions and divestitures. These costs are included in selling, general and administrative expense in the Consolidated Statements of Income. |
Management believes that adjusted earnings and adjusted earnings per diluted share are useful measures for investors, as management uses these measures to internally assess the Company's performance and ongoing operating trends. There can be no assurances that additional special items will not occur in future periods, nor that MSA's definition of adjusted earnings is consistent with that of other companies. As such, management believes that it is appropriate to consider both net income determined on a GAAP basis as well as adjusted earnings.
MSA Safety Incorporated Reconciliation of Non-GAAP Financial Measures Debt to adjusted EBITDA / Net debt to adjusted EBITDA (Unaudited) (In thousands)
| ||
Twelve Months Ended | ||
2024 | ||
Operating income | $ 389,177 | |
Depreciation and amortization | 55,159 | |
Restructuring charges | 6,397 | |
Currency exchange losses, net | 3,638 | |
Amortization of acquisition-related intangible assets | 9,174 | |
Net cost for product related legal matter | 5,000 | |
Transaction costs (a) | 886 | |
Adjusted EBITDA | $ 469,431 | |
Total end-of-period debt | 508,013 | |
Debt to adjusted EBITDA | 1.1 | |
Total end-of-period debt | 508,013 | |
Total end-of-period cash and cash equivalents | 164,560 | |
Net debt | $ 343,453 | |
Net debt to adjusted EBITDA | 0.7 | |
(a) Transaction costs include advisory, legal, accounting, valuation, and other professional or consulting fees incurred during acquisitions and divestitures. These costs are included in selling, general and administrative expense in the Consolidated Statements of Income. |
Management believes that debt to adjusted EBITDA and net debt to adjusted EBITDA are useful measures for investors, as management uses these measures to internally assess the Company's liquidity and balance sheet strength. There can be no assurances that that MSA's definition of debt to adjusted EBITDA and net debt to adjusted EBITDA is consistent with that of other companies.
About MSA Safety:
MSA Safety Incorporated (NYSE: MSA) is the global leader in advanced safety products, technologies and solutions. Driven by its singular mission of safety, the Company has been at the forefront of safety innovation since 1914, protecting workers and facility infrastructure around the world across a broad range of diverse end markets while creating sustainable value for shareholders. With 2024 revenues of
Cautionary Statement Regarding Forward-Looking Statements:
Except for historical information, certain matters discussed in this press release may be "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. These statements relate to future events or our future financial performance and involve various assumptions, known and unknown risks, uncertainties and other factors that may cause our actual results, levels of activity, performance or achievements to be materially different from any future results, levels of activity, performance or achievements expressed or implied by these forward-looking statements. In so
me cases, you can identify forward-looking statements by words such as "may," "will," "should," "expects," "intends," "plans," "anticipates," "believes," "estimates," "predicts," "potential" or other comparable words. Actual results, performance or outcomes may differ materially from those expressed or implied by these forward-looking statements and may not align with historical performance and events due to a number of factors, including those discussed in the sections of our annual report on Form 10-K entitled "Cautionary Statement Regarding Forward-Looking Statements" and "Risk Factors," and those discussed in our Form 10-Q quarterly reports filed after such annual report. MSA's SEC filings are readily obtainable at no charge at www.sec.gov, as well as on its own investor relations website at http://investors.MSAsafety.com. Although we believe that the expectations reflected in the forward-looking statements are reasonable, we cannot guarantee future results, levels of activity, performance or achievements, and caution should be exercised against placing undue reliance upon such statements. We are under no duty to update publicly any of the forward-looking statements after the date of this earnings press release, whether as a result of new information, future events or otherwise, except as required by law.
Non-GAAP Financial Measures:
This press release includes certain non-GAAP financial measures. These financial measures include organic revenue growth, adjusted operating income, adjusted operating margin, adjusted EBITDA, adjusted EBITDA margin, adjusted earnings, adjusted earnings per diluted share, debt to adjusted EBITDA, net debt to adjusted EBITDA, and adjusted payments on debt. These non-GAAP financial measures provide information useful to investors in understanding our operating performance and trends, and to facilitate comparisons with the performance of our peers. Management also uses these measures internally to assess and better understand our underlying business performance and trends related to core business activities. The non-GAAP financial measures and key performance indicators we use, and computational methods with respect thereto, may differ from the non-GAAP financial measures and key performance indicators, and computational methods, that our peers use to assess their performance and trends.
The presentation of these non-GAAP financial measures does not comply with
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SOURCE MSA Safety
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