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MSA Announces Third Quarter Results
Investments in restructuring and strategic growth programs drive growth in earnings and margin improvement

PITTSBURGH, Oct. 27, 2016 /PRNewswire/ -- Global safety equipment manufacturer MSA Safety Incorporated (NYSE: MSA) today reported results for the third quarter of 2016.

Quarterly Highlights

  • Reported revenue was $278 million, increasing 2 percent from a year ago on a reported and constant currency basis.
  • Operating income was $40 million or 14.4 percent of net sales, increasing 470 basis points from a year ago. Adjusted operating income, excluding foreign currency losses and restructuring, was $43 million or 15.3 percent of net sales, increasing 270 basis points from a year ago.
  • Net income from continuing operations was $25 million or $0.67 per diluted share, compared to $16 million or $0.41 per diluted share in the third quarter a year ago, increasing 63 percent. Adjusted earnings were $0.72 per diluted share, compared to $0.59 per diluted share a year ago, increasing 22 percent.
  • UK-based fall protection company Latchways, acquired by MSA in 2015, generated net income of $0.03 per diluted share in the third quarter.

Comments from Management

"While challenging macro conditions persist in certain areas of our business, our results continue to reflect the steps we've taken to drive improved profitability in a slow growth environment," said William M. Lambert, MSA Chairman, President and CEO. "The cost reduction program that we began in late 2015 and the key strategic investments we've made over the past year were designed to mitigate the expected market headwinds of 2016, and that's exactly what we're seeing," he continued. Mr. Lambert noted that operating income increased 28 percent in the first nine months of 2016, while net income from continuing operations was up 38 percent in the same period on revenue growth of 4 percent.

"While many of the challenges that we've faced in 2016 will likely continue into 2017, that will not diminish our focus on making smart investments that drive earnings growth and market leadership positions in our core product areas. Through these targeted investments, I am confident we will position MSA strategically and financially to drive enhanced shareholder value for many years to come," Mr. Lambert concluded.

 

 

MSA Safety Incorporated

Condensed Consolidated Statement of Income (Unaudited)

(In thousands, except per share amounts)



Three Months Ended
September 30,


Nine Months Ended
September 30,


2016


2015


2016


2015









Net sales

$

278,233



$

273,746



$

853,499



$

817,465


Cost of products sold

149,471



153,965



468,177



450,372


Gross profit

128,762



119,781



385,322



367,093










Selling, general and administrative

72,945



72,727



227,856



231,683


Research and development

13,116



12,532



34,623



36,430


Restructuring and other charges

1,889



3,740



3,697



4,698


Currency exchange losses, net

790



4,327



2,498



3,336


Operating income

40,022



26,455



116,648



90,946










Interest expense

4,412



2,827



12,515



7,802


Other (income), net

 

(2,041)



(431)



(3,704)



(1,166)


Total other expense, net

2,371



2,396



8,811



6,636










Income from continuing operations before income taxes

37,651



24,059



107,837



84,310


Provision for income taxes

11,329



8,935



38,866



36,669


Income from continuing operations

26,322



15,124



68,971



47,641


(Loss) income from discontinued operations

(1,300)



462



55



1,240


Net income

25,022



15,586



69,026



48,881


Net (income) loss attributable to noncontrolling interests

(836)



390



(2,006)



1,075


Net income attributable to MSA Safety Incorporated

24,186



15,976



67,020



49,956










Amounts attributable to MSA Safety Incorporated
common shareholders:








Income from continuing operations

25,486



15,712



67,475



48,750


(Loss) income from discontinued operations

(1,300)



264



(455)



1,206


  Net income

24,186



15,976



67,020



49,956










Earnings per share attributable to MSA Safety
Incorporated common shareholders:








Basic








Income from continuing operations

$

0.68



$

0.42



$

1.80



$

1.30


(Loss) income from discontinued operations

$

(0.04)



$

0.01



$

(0.01)



$

0.03


  Net income

$

0.64



$

0.43



$

1.79



$

1.33










Diluted








Income from continuing operations

$

0.67



$

0.41



$

1.77



$

1.29


(Loss) income from discontinued operations

$

(0.04)



$

0.01



$

(0.01)



$

0.03


  Net income

$

0.63



$

0.42



$

1.76



$

1.32










Basic shares outstanding

37,487



37,252



37,407



37,301


Diluted shares outstanding

38,112



37,709



37,908



37,776


 

 

MSA Safety Incorporated

Condensed Consolidated Balance Sheet (Unaudited)

(In thousands)



September 30, 2016


December 31, 2015

Assets




Cash and cash equivalents

$

106,033



$

105,925


Trade receivables, net

211,987



232,862


Inventories

132,542



125,849


Notes receivable, insurance companies

40,482



6,746


Other current assets

39,870



33,230


    Total current assets

530,914



504,612






Property, net

149,939



155,839


Prepaid pension cost

69,300



62,072


Goodwill

340,533



340,338


Notes receivable, insurance companies, noncurrent

63,072



1,944


Insurance receivable, noncurrent

152,542



227,483


Other noncurrent assets

121,646



130,575


   Total assets

$

1,427,946



$

1,422,863






Liabilities and shareholders' equity




Notes payable and current portion of long-term debt

$

6,738



$

6,650


Accounts payable

56,367



68,206


Other current liabilities

130,183



177,031


   Total current liabilities

193,288



251,887






Long-term debt, net

464,600



458,022


Pensions and other employee benefits

162,362



156,160


Deferred tax liabilities

26,255



24,872


Other noncurrent liabilities

14,508



14,794


Total shareholders' equity

566,933



517,128


   Total liabilities and shareholders' equity

$

1,427,946



$

1,422,863


 

 

MSA Safety Incorporated

Condensed Consolidated Statement of Cash Flows (Unaudited)

(In thousands)



Three Months Ended
September 30,


Nine Months Ended
September 30,


2016


2015


2016


2015









Net income

$

25,022



$

15,586



$

69,026



$

48,881


Depreciation and amortization

8,919



6,982



26,651



22,646


Change in working capital and other operating

(15,026)



(20,451)



(64,240)



(61,697)


  Cash flow from operating activities

18,915



2,117



31,437



9,830










Capital expenditures

(5,551)



(9,133)



(16,146)



(25,148)


Acquisition, net of cash acquired

(18,261)





(18,261)




Property disposals and other investing

967





17,932



7,969


  Cash flow (used in) investing activities

(22,845)



(9,133)



(16,475)



(17,179)










Change in debt

19,459



125,138



16,083



143,142


Cash dividends paid

(12,391)



(11,926)



(36,675)



(35,448)


Other financing

1,177



(136)



4,338



(7,495)


  Cash flow from (used in) financing activities

8,245



113,076



(16,254)



100,199










Effect of exchange rate changes on cash and
cash equivalents

(1,431)



(4,851)



1,400



(9,505)










Increase in cash and cash equivalents

2,884



101,209



108



83,345


 

 

MSA Safety Incorporated

Segment Information (Unaudited)

(In thousands)




Americas


International


Corporate


Consolidated

Three Months Ended September 30, 2016









Net sales


$

165,359



$

112,874





$

278,233


Adjusted operating income (loss)


41,458



10,511



(9,268)



42,701


Adjusted operating margin %


25.1

%


9.3

%




15.3

%

Restructuring and other charges








(1,889)


Currency exchange (losses), net








(790)


Operating income








$

40,022


Operating margin %








14.4

%










Nine Months Ended September 30, 2016









Net sales


$

510,324



$

343,175





$

853,499


Adjusted operating income (loss)


117,475



31,659



(26,291)



122,843


Adjusted operating margin %


23.0

%


9.2

%




14.4

%

Restructuring and other charges








(3,697)


Currency exchange (losses), net








(2,498)


Operating income








$

116,648


Operating margin %








13.7

%























Americas


International


Corporate


Consolidated

Three Months Ended September 30, 2015









Net sales


$

181,283



$

92,463





$

273,746


Adjusted operating income (loss)


40,470



1,408



(7,356)



34,522


Adjusted operating margin %


22.3

%


1.5

%




12.6

%

Restructuring and other charges








(3,740)


Currency exchange (losses), net








(4,327)


Operating income








$

26,455


Operating margin %








9.7

%










Nine Months Ended September 30, 2015









Net sales


$

519,350



$

298,115





$

817,465


Adjusted operating income (loss)


101,833



19,869



(22,722)



98,980


Adjusted operating margin %


19.6

%


6.7

%




12.1

%

Restructuring and other charges








(4,698)


Currency exchange (losses), net








(3,336)


Operating income








$

90,946


Operating margin %








11.1

%

 

The Americas and International segments were established on January 1, 2016.  The Americas segment is comprised of our operations in the U.S., Canada and Latin America.  The International segment is comprised of our operations in all other parts of the world including Europe, Africa, the Middle East, India, China, South East Asia and Australia.  Certain global expenses are now allocated to each segment in a manner consistent with where the benefits from the expenses are derived.  The 2015 segment results have been recast to conform with current period presentation.

Adjusted operating income (loss) and adjusted operating 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) and adjusted operating margin are useful metrics for investors. Adjusted operating income (loss) is defined as operating income excluding restructuring and currency exchange losses. Adjusted operating margin is defined as adjusted operating income (loss) divided by net sales. Adjusted operating income (loss) and adjusted operating margin are not recognized terms under GAAP, and the Company's definition of adjusted operating income (loss) and adjusted operating 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

Constant currency revenue growth (Unaudited)

Organic constant currency revenue growth (Unaudited)

Consolidated



Three Months Ended September 30, 2016


Breathing
Apparatus

Fire and
Rescue
Helmets

Industrial
Head
Protection

Portable
Gas
Detection

Fixed
Gas and
Flame
Detection

Fall
Protection

Core
Sales


Non-
Core
Sales


Net Sales

GAAP reported
sales change

(21)

%

(10)

%

2

%

8

%

9

%

114

%

1

%


5

%


2

%

Plus: Currency
translation effects

%

%

1

%

2

%

%

2

%

1

%


1

%


%

Constant currency
sales change

(21)

%

(10)

%

3

%

10

%

9

%

116

%

2

%


6

%


2

%

Less: Acquisitions

%

%

%

%

%

124

%

6

%


%


5

%

Organic constant
currency change

(21)

%

(10)

%

3

%

10

%

9

%

(8)

%

(4)

%


6

%


(3)

%




Nine Months Ended September 30, 2016


Breathing
Apparatus

Fire and
Rescue
Helmets

Industrial
Head
Protection

Portable
Gas
Detection

Fixed
Gas and
Flame
Detection

Fall
Protection

Core
Sales


Non-
Core
Sales


Net Sales

GAAP reported
sales change

8

%

(1)

%

(7)

%

1

%

(2)

%

116

%

7

%


(6)

%


4

%

Plus: Currency
translation effects

1

%

1

%

4

%

4

%

1

%

4

%

2

%


3

%


3

%

Constant
currency sales
change

9

%

%

(3)

%

5

%

(1)

%

120

%

9

%


(3)

%


7

%

Less: Acquisitions

%

%

%

%

%

129

%

7

%


%


6

%

Organic constant
currency change

9

%

%

(3)

%

5

%

(1)

%

(9)

%

2

%


(3)

%


1

%

 

Management believes that constant currency revenue growth is a useful metric for investors, as foreign currency translation can have a material impact on revenue growth trends. Constant currency revenue growth highlights ongoing business performance excluding the impact of fluctuating foreign currencies, which is outside of management's control.

Organic constant currency revenue growth is defined as constant currency revenue growth excluding Latchways' revenue results. Management believes that organic constant currency revenue growth is a useful measure for investors to provide an understanding of MSA's standalone results excluding the acquisition.

There can be no assurances that MSA's definition of constant currency revenue growth or 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 these non-GAAP financial measures.

 

 

MSA Safety Incorporated

Reconciliation of As Reported Financial Measures to Non-GAAP Financial Measures

Constant currency revenue growth (Unaudited)

Organic constant currency revenue growth (Unaudited)

Americas Segment



Three Months Ended September 30, 2016


Breathing
Apparatus

Fire and
Rescue
Helmets

Industrial
Head
Protection

Portable
Gas
Detection

Fixed
Gas and
Flame
Detection

Fall
Protection

Core
Sales


Non-
Core
Sales


Net Sales

GAAP reported
sales change

(33)

%

(2)

%

3

%

11

%

2

%

11

%

(10)

%


(2)

%


(9)

%

Plus: Currency
translation effects

%

%

1

%

2

%

%

2

%

1

%


1

%


1

%

Constant
currency sales
change

(33)

%

(2)

%

4

%

13

%

2

%

13

%

(9)

%


(1)

%


(8)

%

Less: Acquisitions

%

%

%

%

%

20

%

1

%


%


1

%

Organic constant
currency change

(33)

%

(2)

%

4

%

13

%

2

%

(7)

%

(10)

%


(1)

%


(9)

%




Nine Months Ended September 30, 2016


Breathing
Apparatus

Fire and
Rescue
Helmets

Industrial
Head
Protection

Portable
Gas
Detection

Fixed
Gas and
Flame
Detection

Fall
Protection

Core
Sales


Non-
Core
Sales


Net Sales

GAAP reported
sales change

5

%

12

%

(8)

%

%

(7)

%

7

%

%


(8)

%


(2)

%

Plus: Currency
translation effects

1

%

1

%

4

%

4

%

2

%

4

%

2

%


3

%


3

%

Constant
currency sales
change

6

%

13

%

(4)

%

4

%

(5)

%

11

%

2

%


(5)

%


1

%

Less: Acquisitions

%

%

%

%

%

20

%

2

%


%


1

%

Organic constant
currency change

6

%

13

%

(4)

%

4

%

(5)

%

(9)

%

%


(5)

%


%

 

Management believes that constant currency revenue growth is a useful metric for investors, as foreign currency translation can have a material impact on revenue growth trends. Constant currency revenue growth highlights ongoing business performance excluding the impact of fluctuating foreign currencies, which is outside of management's control.

Organic constant currency revenue growth is defined as constant currency revenue growth excluding Latchways' revenue results. Management believes that organic constant currency revenue growth is a useful measure for investors to provide an understanding of MSA's standalone results excluding the acquisition.

There can be no assurances that MSA's definition of constant currency revenue growth or 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 these non-GAAP financial measures.

 

 

MSA Safety Incorporated

Reconciliation of As Reported Financial Measures to Non-GAAP Financial Measures

Constant currency revenue growth (Unaudited)

Organic constant currency revenue growth (Unaudited)

International Segment



Three Months Ended September 30, 2016


Breathing
Apparatus

Fire and
Rescue
Helmets

Industrial
Head
Protection

Portable
Gas
Detection

Fixed
Gas and
Flame
Detection

Fall
Protection

Core
Sales


Non-
Core
Sales


Net Sales

GAAP reported
sales change

12

%

(15)

%

(5)

%

3

%

19

%

810

%

25

%


13

%


22

%

Plus: Currency
translation effects

%

1

%

3

%

2

%

1

%

1

%

1

%


%


1

%

Constant
currency sales
change

12

%

(14)

%

(2)

%

5

%

20

%

811

%

26

%


13

%


23

%

Less: Acquisitions

%

%

%

%

%

822

%

17

%


%


13

%

Organic constant
currency change

12

%

(14)

%

(2)

%

5

%

20

%

(11)

%

9

%


13

%


10

%




Nine Months Ended September 30, 2016


Breathing
Apparatus

Fire and
Rescue
Helmets

Industrial
Head
Protection

Portable
Gas
Detection

Fixed
Gas and
Flame
Detection

Fall
Protection

Core
Sales


Non-
Core
Sales


Net Sales

GAAP reported
sales change

15

%

(9)

%

(6)

%

4

%

3

%

993

%

21

%


(3)

%


15

%

Plus: Currency
translation effects

2

%

2

%

5

%

2

%

2

%

4

%

2

%


2

%


2

%

Constant
currency sales
change

17

%

(7)

%

(1)

%

6

%

5

%

997

%

23

%


(1)

%


17

%

Less: Acquisitions

%

%

%

%

%

998

%

16

%


%


12

%

Organic constant
currency change

17

%

(7)

%

(1)

%

6

%

5

%

(1)

%

7

%


(1)

%


5

%

 

Management believes that constant currency revenue growth is a useful metric for investors, as foreign currency translation can have a material impact on revenue growth trends. Constant currency revenue growth highlights ongoing business performance excluding the impact of fluctuating foreign currencies, which is outside of management's control.

Organic constant currency revenue growth is defined as constant currency revenue growth excluding Latchways' revenue results. Management believes that organic constant currency revenue growth is a useful measure for investors to provide an understanding of MSA's standalone results excluding the acquisition.

There can be no assurances that MSA's definition of constant currency revenue growth or 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 these non-GAAP financial measures.

 

 

MSA Safety Incorporated

Supplemental Segment Information (Unaudited)

Summary of constant currency revenue growth by segment and product group



Three Months Ended September 30, 2016


Consolidated


Americas


International

Fall Protection*

116

%


13

%


811

%

Portable Gas Detection

10

%


13

%


5

%

Fixed Gas and Flame Detection

9

%


2

%


20

%

Industrial Head Protection

3

%


4

%


(2)

%

Fire and Rescue Helmets

(10)

%


(2)

%


(14)

%

Breathing Apparatus

(21)

%


(33)

%


12

%

Core Sales

2

%


(9)

%


26

%

  Core excluding Latchways

(4)

%


(10)

%


9

%







Non-Core Sales

6

%


(1)

%


13

%







Net Sales

2

%


(8)

%


23

%

  Net Sales excluding Latchways

(3)

%


(9)

%


10

%




Nine Months Ended September 30, 2016


Consolidated


Americas


International

Fall Protection*

120

%


11

%


997

%

Portable Gas Detection

5

%


4

%


6

%

Fixed Gas and Flame Detection

(1)

%


(5)

%


5

%

Industrial Head Protection

(3)

%


(4)

%


(1)

%

Fire and Rescue Helmets

%


13

%


(7)

%

Breathing Apparatus

9

%


6

%


17

%

Core Sales

9

%


2

%


23

%

  Core excluding Latchways

2

%


%


7

%







Non-Core Sales

(3)

%


(5)

%


(1)

%







Net Sales

7

%


1

%


17

%

  Net Sales excluding Latchways

1

%


%


5

%



          *Fall protection growth rates include the impact from Latchways sales.

 

 

MSA Safety Incorporated

Reconciliation of As Reported Financial Measures to Non-GAAP Financial Measures

Constant currency selling, general and administrative (SG&A) expense (Unaudited)

Organic constant currency SG&A expense (Unaudited)

(In thousands)



Three Months Ended
September 30,




Nine Months Ended
September 30,




2016


2015


%
Change


2016


2015


%
Change













GAAP reported SG&A
expense

$

72,945



$

72,727



%


$

227,856



$

231,683



(2)

%

Plus: Currency translation
effects



(1,049)







(5,522)




Constant currency SG&A
expense

$

72,945



$

71,678



2

%


$

227,856



$

226,161



1

%

Less: Acquisitions

3,089



707





11,218



707




Organic constant currency
SG&A expense

$

69,856



$

70,971



(2)

%


$

216,638



$

225,454



(4)

%

 

Management believes that constant currency SG&A expense and organic constant currency SG&A expense are useful metrics for investors to measure the effectiveness of the company's cost reduction program announced in 2015.  Constant currency SG&A expense highlights spending patterns excluding fluctuating foreign currencies. Organic constant currency SG&A expense highlights the impact of the Latchways acquisition. These metrics provide investors with a greater level of clarity into spending levels on a year-over-year basis. MSA's definition of this metric may not be comparable to metrics used by other companies. As such, management believes that it is appropriate to consider SG&A expense 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

Adjusted earnings (Unaudited)

Adjusted earnings per diluted share (Unaudited)

(In thousands, except per share amounts)



Three Months Ended
September 30,




Nine Months Ended
September 30,




2016


2015


%
Change


2016


2015


%
Change













Income from continuing operations
attributable to MSA Safety
Incorporated

$

25,486



$

15,712



62%


$

67,475



$

48,750



38%

Tax charges associated with
European reorganization







3,600



7,605




Non-deductible transaction costs



707







707




Subtotal

25,486



16,419



55%


71,075



57,062



25%













Restructuring and other charges

1,889



3,740





3,697



4,698




Self-insured legal settlements and
defense costs

20



708





315



1,050




Transaction and integration costs

310







821






Asset related (gains) losses, net

(256)



206





(815)



538




Currency exchange losses, net

790



4,327





2,498



3,336




Income tax expense on
adjustments

(829)



(3,287)





(2,123)



(3,300)




Adjusted earnings

27,410



22,113



24%


75,468



63,384



19%













Adjusted earnings per diluted
share

$

0.72



$

0.59



22%


$

1.99



$

1.68



18%





















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.

About MSA:
Established in 1914, MSA Safety Incorporated is the global leader in the development, manufacture and supply of safety products that protect people and facility infrastructures.  Many MSA products integrate a combination of electronics, mechanical systems and advanced materials to protect users against hazardous or life-threatening situations.  The company's comprehensive product line is used by workers around the world in a broad range of markets, including the oil, gas and petrochemical industry, the fire service, the construction industry, mining and the military.  MSA's core products include self-contained breathing apparatus, fixed gas and flame detection systems, portable gas detection instruments, industrial head protection products, fire and rescue helmets, and fall protection devices.  With 2015 revenues of $1.1 billion, MSA employs approximately 4,600 people worldwide.  The company is headquartered north of Pittsburgh in Cranberry Township, Pa., and has manufacturing operations in the United States, Europe, Asia and Latin America.  With more than 40 international locations, MSA realizes approximately half of its revenue from outside North America.  For more information visit MSA's web site at www.MSAsafety.com.

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. Forward-looking statements include but are not limited to all projections and anticipated levels of future performance. Forward looking statements involve risks, uncertainties and other factors that may cause our actual results to differ materially from those discussed herein. Any number of factors could cause actual results to differ materially from projections or forward looking statements, including without limitation global economic conditions, spending patterns of government agencies, competitive pressures, the impact of acquisitions and related integration activities, product liability claims, the success of new product introductions, currency exchange rate fluctuations and the risks of doing business in foreign countries. A full listing of these risks, uncertainties and other factors are detailed from time-to-time in our filings with the United States Securities and Exchange Commission ("SEC"), including our most recent Form 10-K filed on February 29, 2016. You are strongly urged to review all such filings for a more detailed discussion of such risks and uncertainties.  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. MSA undertakes no duty to publicly update any forward looking statements contained herein, except as required by law.

Non-GAAP Financial Measures: 
This earnings release includes certain non-GAAP financial measures. These financial measures include constant currency revenue growth, organic constant currency revenue growth, constant currency selling, general and administrative expense, organic constant currency selling, general and administrative expense, adjusted operating income, adjusted operating margin and adjusted earnings per diluted share. The presentation of these financial measures does not comply with U.S. generally accepted accounting principles ("GAAP"). For an explanation of these measures, together with a reconciliation to the most directly comparable GAAP financial measure, see the Reconciliation of As Reported Financial Measures to Non-GAAP Financial Measures in the financial tables section above.

 

 

To view the original version on PR Newswire, visit:http://www.prnewswire.com/news-releases/msa-announces-third-quarter-results-300353068.html

SOURCE MSA

Media Relations Contact: Mark Deasy (724) 741 - 8570; Investor Relations Contact: Kenneth Krause (724) 741 - 8534