MSA Safety Announces Second Quarter 2024 Results
MSA Safety reported strong Q2 2024 results, with net sales of $462 million, up 3% year-over-year. The company achieved 4% organic constant currency sales growth and healthy margin expansion. Key highlights include:
- GAAP operating income of $100 million (21.6% of sales)
- Adjusted operating income of $108 million (23.4% of sales)
- GAAP EPS of $1.83, adjusted EPS of $2.01 (up 10%)
- Returned $30 million to shareholders through dividends and share repurchases
MSA is maintaining its mid-single digit full-year sales growth outlook. The company's balance sheet remains strong with net leverage of 0.9x. Management cited disciplined execution and the MSA Business System as key drivers of the solid performance.
MSA Safety ha riportato risultati robusti nel Q2 2024, con vendite nette di 462 milioni di dollari, in aumento del 3% rispetto all'anno precedente. L'azienda ha registrato una crescita delle vendite organiche a tasso di cambio costante del 4% e una sana espansione dei margini. I punti salienti includono:
- Reddito operativo GAAP di 100 milioni di dollari (21,6% delle vendite)
- Reddito operativo rettificato di 108 milioni di dollari (23,4% delle vendite)
- EPS GAAP di 1,83 dollari, EPS rettificato di 2,01 dollari (in aumento del 10%)
- Restituito 30 milioni di dollari agli azionisti tramite dividendi e riacquisti di azioni
MSA mantiene le proprie previsioni di crescita delle vendite per l'intero anno a un numero medio di cifre singole. Il bilancio dell'azienda rimane solido con un rapporto di indebitamento netto di 0,9x. La direzione ha citato l'esecuzione disciplinata e il Sistema Aziendale MSA come fattori chiave della solida performance.
MSA Safety reportó resultados sólidos en el Q2 2024, con ventas netas de 462 millones de dólares, un aumento del 3% interanual. La empresa logró un crecimiento de ventas orgánicas en moneda constante del 4% y una saludable expansión de márgenes. Los puntos destacados incluyen:
- Ingreso operativo GAAP de 100 millones de dólares (21.6% de las ventas)
- Ingreso operativo ajustado de 108 millones de dólares (23.4% de las ventas)
- EPS GAAP de 1.83 dólares, EPS ajustado de 2.01 dólares (un aumento del 10%)
- Retornó 30 millones de dólares a los accionistas a través de dividendos y recompra de acciones
MSA mantiene su perspectiva de crecimiento de ventas de un dígito medio para el año completo. El balance general de la empresa sigue siendo sólido con un endeudamiento neto de 0.9x. La dirección destacó la ejecución disciplinada y el Sistema Empresarial MSA como motores clave del sólido desempeño.
MSA Safety는 2024년 2분기 강력한 실적을 보고했으며, 순매출은 4억 6200만 달러로 전년 대비 3% 증가했습니다. 이 회사는 4%의 유기적 일정 환율 기준 매출 성장률을 달성했으며 건강한 마진 확장을 보여주었습니다. 주요 하이라이트는 다음과 같습니다:
- GAAP 운영 수익 1억 달러(매출의 21.6%)
- 조정된 운영 수익 1억 800만 달러(매출의 23.4%)
- GAAP EPS 1.83달러, 조정 EPS 2.01달러(10% 증가)
- 배당금 및 자사주 매입을 통해 주주에게 3천만 달러를 반환함
MSA는 연간 매출 성장 전망을 중간 한 자릿수로 유지하고 있습니다. 회사의 재무 구조는 순 부채비율이 0.9배로 여전히 견고합니다. 경영진은 규율 있는 실행과 MSA 비즈니스 시스템을 단단한 성과의 주요 요인으로 언급했습니다.
MSA Safety a annoncé de solides résultats pour le 2e trimestre 2024, avec un chiffre d'affaires net de 462 millions de dollars, en hausse de 3 % par rapport à l'année précédente. L'entreprise a réalisé une croissance des ventes organiques en monnaie constante de 4 % et une saine expansion des marges. Les points forts incluent :
- Revenu d'exploitation GAAP de 100 millions de dollars (21,6 % des ventes)
- Revenu d'exploitation ajusté de 108 millions de dollars (23,4 % des ventes)
- BPA GAAP de 1,83 $ et BPA ajusté de 2,01 $ (en hausse de 10 %)
- Retour de 30 millions de dollars aux actionnaires par le biais de dividendes et de rachats d'actions
MSA maintient ses prévisions de croissance des ventes pour l'ensemble de l'année à un chiffre unique moyen. Le bilan de l'entreprise reste solide avec un ratio d'endettement net de 0,9x. La direction a cité l'exécution disciplinée et le Système d'Affaires MSA comme des moteurs clés de sa solide performance.
MSA Safety berichtete über starke Ergebnisse im 2. Quartal 2024 mit einem Nettoumsatz von 462 Millionen Dollar, was einem Anstieg von 3% im Jahresvergleich entspricht. Das Unternehmen erzielte 4% organisches Umsatzwachstum in konstanten Währungen und eine gesunde Margenausweitung. Zu den wichtigsten Höhepunkten gehören:
- GAAP Betriebsgewinn von 100 Millionen Dollar (21,6% des Umsatzes)
- Bereinigter Betriebsgewinn von 108 Millionen Dollar (23,4% des Umsatzes)
- GAAP EPS von 1,83 Dollar, bereinigtes EPS von 2,01 Dollar (plus 10%)
- 30 Millionen Dollar an Aktionäre durch Dividenden und Aktienrückkäufe zurückgegeben
MSA hält an seiner Prognose für ein mittleres einstelliges Umsatzwachstum für das gesamte Jahr fest. Die Bilanz des Unternehmens bleibt stark mit einer Netto-Verschuldung von 0,9x. Das Management benannte diszipliniertes Handeln und das MSA Business System als wesentliche Faktoren für die solide Leistung.
- Achieved 4% organic constant currency sales growth to $462 million
- Expanded adjusted operating margin to 23.4% of sales
- Increased adjusted EPS by 10% to $2.01
- Maintained strong balance sheet with net leverage of 0.9x
- Returned $30 million to shareholders through dividends and buybacks
- None.
Insights
Strong execution drives healthy sales growth and margin improvement; Maintaining mid-single digit full-year sales growth outlook
Quarterly Highlights
- Achieved quarterly net sales of
$462 million 3% reported and4% organic constant currency increase year-over-year. - Generated GAAP operating income of
$100 million 21.6% of sales, and adjusted operating income of$108 million 23.4% of sales. - Recorded GAAP net income of
$72 million $1.83 $80 million $2.01 - Invested
$14 million $8 million $20 million $10 million
"Our team executed very well in the second quarter, as evidenced by the continued solid top-line growth and margin expansion, while our results continue to demonstrate the resiliency within our business," said Steve Blanco, MSA Safety President and Chief Executive Officer. "During the quarter, we held an investor day where we outlined our long-term strategy to drive profitable growth and create meaningful value for our stakeholders over the next five years. We provided an in-depth review of our innovative range of leading safety products and solutions, the diverse end markets we serve, the enterprise-wide adoption of the MSA Business System, and above all, the unwavering commitment of our associates to advance our mission."
Financial Highlights
Financial Highlights | Three Months Ended June 30, | |||||
($ millions, except per share data) | 2024 | 2023 | % Change(a) | |||
Net Sales | $ 462 | $ 447 | 3 % | |||
Operating Income | 100 | 95 | 5 % | |||
Adjusted Operating Income | 108 | 104 | 4 % | |||
Net Income | 72 | 67 | 8 % | |||
Diluted EPS | 1.83 | 1.70 | 7 % | |||
Adjusted Earnings | 80 | 72 | 10 % | |||
Adjusted Diluted EPS | 2.01 | 1.83 | 10 % | |||
(a) Percentage change may not calculate exactly due to rounding. |
Lee McChesney, MSA Safety Senior Vice President and Chief Financial Officer, commented, "Reflecting the disciplined execution of our team in the quarter, grounded in the MSA Business System, we delivered
Conference Call
MSA Safety will host a conference call on Thursday, July 25, 2024, at 10:00 a.m. Eastern time to discuss its second quarter 2024 results and outlook. 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 Condensed Consolidated Statements of Operations (Unaudited) (In thousands, except per share amounts) | |||||||
Three Months Ended | Six Months Ended | ||||||
2024 | 2023 | 2024 | 2023 | ||||
Net sales | $ 462,463 | $ 447,299 | $ 875,765 | $ 845,561 | |||
Cost of products sold | 239,434 | 233,503 | 457,205 | 450,367 | |||
Gross profit | 223,029 | 213,796 | 418,560 | 395,194 | |||
Selling, general and administrative | 105,075 | 96,336 | 199,226 | 187,427 | |||
Research and development | 17,070 | 15,992 | 32,988 | 31,224 | |||
Restructuring charges | 1,543 | 3,350 | 4,560 | 5,097 | |||
Currency exchange (gains) losses, net | (603) | 3,110 | 1,730 | 7,285 | |||
Loss on divestiture of MSA LLC | — | — | — | 129,211 | |||
Product liability expense | — | — | — | 3 | |||
Operating income | 99,944 | 95,008 | 180,056 | 34,947 | |||
Interest expense | 9,664 | 13,175 | 20,403 | 24,651 | |||
Other income, net | (4,148) | (5,650) | (10,382) | (9,450) | |||
Total other expense, net | 5,516 | 7,525 | 10,021 | 15,201 | |||
Income before income taxes | 94,428 | 87,483 | 170,035 | 19,746 | |||
Provision for income taxes | 22,194 | 20,393 | 39,662 | 102,829 | |||
Net income (loss) | $ 72,234 | $ 67,090 | $ 130,373 | $ (83,083) | |||
Earnings (loss) per share attributable to common shareholders: | |||||||
Basic | $ 1.83 | $ 1.71 | $ 3.31 | $ (2.12) | |||
Diluted | $ 1.83 | $ 1.70 | $ 3.30 | $ (2.12) | |||
Basic shares outstanding | 39,389 | 39,274 | 39,375 | 39,249 | |||
Diluted shares outstanding | 39,541 | 39,409 | 39,549 | 39,249 | |||
MSA Safety Incorporated Condensed Consolidated Balance Sheets (Unaudited) (In thousands) | |||
June 30, 2024 | December 31, 2023 | ||
Assets | |||
Cash and cash equivalents | $ 146,830 | $ 146,442 | |
Trade receivables, net | 299,053 | 294,678 | |
Inventories | 320,899 | 292,604 | |
Other current assets | 94,663 | 52,546 | |
Total current assets | 861,445 | 786,270 | |
Property, plant and equipment, net | 213,159 | 211,877 | |
Prepaid pension cost | 180,182 | 172,161 | |
Goodwill | 624,637 | 627,534 | |
Intangible assets, net | 256,328 | 266,134 | |
Other noncurrent assets | 107,820 | 106,174 | |
Total assets | $ 2,243,571 | $ 2,170,150 | |
Liabilities and shareholders' equity | |||
Notes payable and current portion of long-term debt, net | $ 26,472 | $ 26,522 | |
Accounts payable | 131,774 | 111,872 | |
Other current liabilities | 193,505 | 194,424 | |
Total current liabilities | 351,751 | 332,818 | |
Long-term debt, net | 561,771 | 575,170 | |
Pensions and other employee benefits | 141,262 | 143,967 | |
Deferred tax liabilities | 102,334 | 102,419 | |
Other noncurrent liabilities | 52,806 | 48,974 | |
Total shareholders' equity | 1,033,647 | 966,802 | |
Total liabilities and shareholders' equity | $ 2,243,571 | $ 2,170,150 | |
MSA Safety Incorporated Condensed Consolidated Statements of Cash Flows (Unaudited) (In thousands) | |||||||
Three Months Ended | Six Months Ended June 30, | ||||||
2024 | 2023 | 2024 | 2023 | ||||
Net income (loss) | $ 72,234 | $ 67,090 | $ 130,373 | $ (83,083) | |||
Depreciation and amortization | 16,047 | 14,889 | 31,605 | 29,461 | |||
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 | (34,979) | 13,089 | (57,790) | 4,389 | |||
Cash flow from (used in) operating activities | 53,302 | 95,068 | 104,188 | (190,841) | |||
Capital expenditures | (14,341) | (9,920) | (25,560) | (18,322) | |||
Property disposals and other investing | 74 | 2,639 | 74 | 2,674 | |||
Cash flow used in investing activities | (14,267) | (7,281) | (25,486) | (15,648) | |||
Change in debt | (8,250) | (58,514) | (13,260) | 236,898 | |||
Cash dividends paid | (20,099) | (18,469) | (38,589) | (36,514) | |||
Company stock purchases under repurchase program | (10,000) | — | (10,000) | — | |||
Other financing | (284) | 801 | (5,869) | (3,795) | |||
Cash flow (used in) from financing activities | (38,633) | (76,182) | (67,718) | 196,589 | |||
Effect of exchange rate changes on cash, cash equivalents and restricted cash | (1,881) | (3,364) | (10,557) | (5,651) | |||
(Decrease) increase in cash, cash equivalents and restricted cash | $ (1,479) | $ 8,241 | $ 427 | $ (15,551) | |||
MSA Safety Incorporated Segment Information (Unaudited) (In thousands, except percentages) | |||||||
International | Corporate | Consolidated | |||||
Three Months Ended June 30, 2024 | |||||||
Net sales to external customers | $ — | $ 462,463 | |||||
Operating income | 99,944 | ||||||
Operating margin % | 21.6 % | ||||||
Restructuring charges | 1,543 | ||||||
Currency exchange gains, net | (603) | ||||||
Net cost for product related legal matter | 5,000 | ||||||
Amortization of acquisition-related intangible assets | 2,306 | ||||||
Adjusted operating income (loss) | 98,468 | 24,285 | (14,563) | 108,190 | |||
Adjusted operating margin % | 31.3 % | 16.4 % | 23.4 % | ||||
Depreciation and amortization | 13,741 | ||||||
Adjusted EBITDA | 108,230 | 28,052 | (14,351) | 121,931 | |||
Adjusted EBITDA margin % | 34.4 % | 19.0 % | 26.4 % | ||||
Three Months Ended June 30, 2023 | |||||||
Net sales to external customers | $ — | $ 447,299 | |||||
Operating income | 95,008 | ||||||
Operating margin % | 21.2 % | ||||||
Restructuring charges | 3,350 | ||||||
Currency exchange losses, net | 3,110 | ||||||
Amortization of acquisition-related intangible assets | 2,315 | ||||||
Adjusted operating income (loss) | 94,816 | 21,743 | (12,776) | 103,783 | |||
Adjusted operating margin % | 30.7 % | 15.7 % | 23.2 % | ||||
Depreciation and amortization | 12,574 | ||||||
Adjusted EBITDA | 103,977 | 24,949 | (12,569) | 116,357 | |||
Adjusted EBITDA margin % | 33.7 % | 18.0 % | 26.0 % | ||||
MSA Safety Incorporated Segment Information (Unaudited) (In thousands, except percentages) | |||||||
International | Corporate | Consolidated | |||||
Six Months Ended June 30, 2024 | |||||||
Net sales to external customers | $ — | $ 875,765 | |||||
Operating income | 180,056 | ||||||
Operating margin % | 20.6 % | ||||||
Restructuring charges | 4,560 | ||||||
Currency exchange losses, net | 1,730 | ||||||
Net cost for product related legal matter | 5,000 | ||||||
Amortization of acquisition-related intangible assets | 4,620 | ||||||
Transaction costs (a) | 234 | ||||||
Adjusted operating income (loss) | 184,688 | 37,770 | (26,258) | 196,200 | |||
Adjusted operating margin % | 30.3 % | 14.2 % | 22.4 % | ||||
Depreciation and amortization | 26,985 | ||||||
Adjusted EBITDA | 203,923 | 45,097 | (25,835) | 223,185 | |||
Adjusted EBITDA margin % | 33.4 % | 17.0 % | 25.5 % | ||||
Six Months Ended June 30, 2023 | |||||||
Net sales to external customers | $ — | $ 845,561 | |||||
Operating income | 34,947 | ||||||
Operating margin % | 4.1 % | ||||||
Restructuring charges | 5,097 | ||||||
Currency exchange losses, net | 7,285 | ||||||
Loss on divestiture of MSA LLC | 129,211 | ||||||
Product liability expense | 3 | ||||||
Amortization of acquisition-related intangible assets | 4,620 | ||||||
Adjusted operating income (loss) | 166,510 | 37,522 | (22,869) | 181,163 | |||
Adjusted operating margin % | 28.3 % | 14.6 % | 21.4 % | ||||
Depreciation and amortization | 24,841 | ||||||
Adjusted EBITDA | 184,471 | 44,007 | (22,474) | 206,004 | |||
Adjusted EBITDA margin % | 31.3 % | 17.1 % | 24.4 % | ||||
(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 unaudited Condensed Consolidated Statements of Operations. | |||||||
The
Adjusted operating income (loss), adjusted operating margin, adjusted earnings before interest, taxes, depreciation and amortization (EBITDA) and adjusted EBITDA margin are the measures used by the chief operating decision maker to evaluate segment performance and allocate resources. As such, management believes that adjusted operating income (loss), adjusted operating margin, adjusted EBITDA and adjusted EBITDA margin are useful metrics for investors. Adjusted operating income (loss) is defined as operating income excluding restructuring charges, currency exchange (gains) losses, loss on divestiture of MSA LLC, product liability expense, amortization of acquisition-related intangible assets, net cost for product related legal matter and transaction costs. Adjusted operating margin is defined as adjusted operating income (loss) divided by segment net sales to external customers. Adjusted EBITDA is defined as adjusted operating income (loss) plus depreciation and amortization, and adjusted EBITDA margin is defined as adjusted EBITDA divided by segment net sales to external customers. Adjusted operating income (loss), 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 (loss), 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 determined on a GAAP basis in addition to these non-GAAP measures.
MSA Safety Incorporated Reconciliation of As Reported Financial Measures to Non-GAAP Financial Measures Organic constant currency revenue growth (Unaudited) | ||||||
Consolidated | ||||||
Three Months Ended June 30, 2024 | ||||||
Fire | Detection(b) | Industrial PPE | Net Sales | |||
GAAP reported sales change | 3 % | 8 % | (3) % | 3 % | ||
Plus: Currency translation effects | 1 % | — % | 1 % | 1 % | ||
Organic constant currency sales change | 4 % | 8 % | (2) % | 4 % | ||
Six Months Ended June 30, 2024 | ||||||
Fire | Detection(b) | Industrial PPE | Net Sales | |||
GAAP reported sales change | 10 % | 2 % | (2) % | 4 % | ||
Plus: Currency translation effects | — % | — % | — % | — % | ||
Organic constant currency sales change | 10 % | 2 % | (2) % | 4 % | ||
(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 constant currency revenue growth is a useful metric for investors, as foreign currency translation can have a material impact on revenue growth trends. Organic constant currency 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 constant currency 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 As Reported Financial Measures to Non-GAAP Financial Measures Organic constant currency revenue growth (Unaudited) | ||||||
Americas Segment | ||||||
Three Months Ended June 30, 2024 | ||||||
Fire | Detection(b) | Industrial PPE | Net Sales | |||
GAAP reported sales change | (2) % | 7 % | 2 % | 2 % | ||
Plus: Currency translation effects | — % | — % | 2 % | — % | ||
Organic constant currency sales change | (2) % | 7 % | 4 % | 2 % | ||
Six Months Ended June 30, 2024 | ||||||
Fire | Detection(b) | Industrial PPE | Net Sales | |||
GAAP reported sales change | 8 % | 2 % | — % | 4 % | ||
Plus: Currency translation effects | — % | — % | — % | — % | ||
Organic constant currency sales change | 8 % | 2 % | — % | 4 % | ||
International Segment | ||||||
Three Months Ended June 30, 2024 | ||||||
Fire | Detection(b) | Industrial PPE | Net Sales | |||
GAAP reported sales change | 19 % | 10 % | (13) % | 6 % | ||
Plus: Currency translation effects | 1 % | 1 % | 1 % | 1 % | ||
Organic constant currency sales change | 20 % | 11 % | (12) % | 7 % | ||
Six Months Ended June 30, 2024 | ||||||
Fire | Detection(b) | Industrial PPE | Net Sales | |||
GAAP reported sales change | 15 % | 1 % | (7) % | 3 % | ||
Plus: Currency translation effects | — % | 1 % | — % | — % | ||
Organic constant currency sales change | 15 % | 2 % | (7) % | 3 % | ||
(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 constant currency revenue growth is a useful metric for investors, as foreign currency translation can have a material impact on revenue growth trends. Organic constant currency 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 constant currency 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 As Reported Financial Measures to Non-GAAP Financial Measures Adjusted earnings (Unaudited) Adjusted earnings per diluted share (Unaudited) (In thousands, except per share amounts and percentages) | |||||||||||
Three Months Ended | Six Months Ended June 30, | ||||||||||
2024 | 2023 | % Change | 2024 | 2023 | % Change | ||||||
Net income (loss) | $ 72,234 | $ 67,090 | 8 % | $ 130,373 | $ (83,083) | n/m* | |||||
Restructuring charges | 1,543 | 3,350 | 4,560 | 5,097 | |||||||
Currency exchange (gains) losses, net | (603) | 3,110 | 1,730 | 7,285 | |||||||
Net cost for product related legal matter | 5,000 | — | 5,000 | — | |||||||
Amortization of acquisition-related intangible assets | 2,306 | 2,315 | 4,620 | 4,620 | |||||||
Pension settlement | 1,308 | — | 1,308 | — | |||||||
Asset related losses (gains) | 701 | (1,452) | 752 | (713) | |||||||
Transaction costs (a) | — | — | 234 | — | |||||||
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 | |||||||
Income tax expense on adjustments | (2,827) | (2,276) | (5,417) | (6,921) | |||||||
Adjusted earnings | $ 79,662 | $ 72,137 | 10 % | $ 143,160 | $ 125,865 | 14 % | |||||
Adjusted earnings per diluted share | $ 2.01 | $ 1.83 | 10 % | $ 3.62 | $ 3.19 | 13 % | |||||
(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 unaudited Condensed Consolidated Statements of Operations. | |||||||||||
* Not meaningful | |||||||||||
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 (loss) determined on a GAAP basis as well as adjusted earnings.
MSA Safety Incorporated Reconciliation of As Reported Financial Measures to Non-GAAP Financial Measures Debt to adjusted EBITDA / Net debt to adjusted EBITDA (Unaudited) (In thousands) | ||
Twelve Months Ended | ||
Operating income | $ 376,429 | |
Depreciation and amortization | 53,671 | |
Restructuring charges | 9,355 | |
Currency exchange losses, net | 11,524 | |
Net cost for product related legal matter | 5,000 | |
Amortization of acquisition-related intangible assets | 9,246 | |
Transaction costs (a) | 1,199 | |
Adjusted EBITDA | $ 466,424 | |
Total end-of-period debt | 588,243 | |
Debt to adjusted EBITDA | 1.3 | |
Total end-of-period debt | $ 588,243 | |
Total end-of-period cash and cash equivalents | 146,830 | |
Net debt | $ 441,413 | |
Net debt to adjusted EBITDA | 0.9 | |
(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 unaudited Condensed Consolidated Statements of Operations. |
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 2023 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 some 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, which are based only on information currently available to us and speak only as of the date hereof. 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 constant currency revenue growth, adjusted operating income, adjusted operating margin, adjusted EBITDA, adjusted EBITDA margin, adjusted earnings, adjusted earnings per diluted share, debt to adjusted EBITDA, and net debt to adjusted EBITDA. These metrics are consistent with how the Company's chief operating decision maker ("CODM") evaluates segment results and makes strategic decisions about the business. Additionally, 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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