MSA Safety Announces Second Quarter Results
Quarterly Highlights
- Revenue was
$341 million , increasing 9 percent from a year ago on a reported basis and 5 percent on a constant currency basis. - GAAP operating income was
$35 million or 10.3 percent of sales, compared to$48 million or 15.4 percent of sales in the same period a year ago. Adjusted operating income was$59 million or 17.2 percent of sales, compared to$59 million or 18.7 percent of sales in the same period a year ago. - GAAP earnings were
$25 million or$0.64 per diluted share, compared to$36 million or$0.92 per diluted share in the same period a year ago. Adjusted earnings were$42 million or$1.06 per diluted share, compared to$44 million or$1.11 per diluted share in the same period a year ago. GAAP and adjusted operating income and earnings reflect$4 million of incremental stock compensation expense driven by the acquisition ofBacharach, Inc. and its expected revenue and profitability contributions in the coming years. - On
July 1, 2021 , MSA completed the acquisition ofBacharach, Inc. in a transaction valued at$337 million . Based inNew Kensington, Pa. , Bacharach is a leader in gas detection technologies used in the heating, ventilation, air conditioning and refrigeration (HVAC-R) markets, with annual revenue of approximately$70 million . The transaction was financed through a combination of fixed and variable incremental borrowings with an after-tax cost of less than 2 percent.
Comments from Management
"MSA delivered strong quarterly revenue growth and reached exciting milestones on key strategic programs, including completing the acquisition of Bacharach," said
MSA completed the acquisition of Bacharach on
"Throughout the pandemic and recession, we've been laser focused on improving our business model, building further resilience in our portfolio, and investing in new product development to fuel our growth engine for years to come,"
"The recent acquisitions, ongoing new product development investments, and the uptick in our order book position us well for the second half of 2021. I remain very confident in our ability to strengthen our market positions as business conditions continue to improve,"
|
|||||||||||||||
Condensed Consolidated Statement of Income (Unaudited) |
|||||||||||||||
(In thousands, except per share amounts) |
|||||||||||||||
Three Months Ended |
Six Months Ended |
||||||||||||||
2021 |
2020 |
2021 |
2020 |
||||||||||||
Net sales |
$ |
341,289 |
$ |
314,438 |
$ |
649,717 |
$ |
655,583 |
|||||||
Cost of products sold |
188,374 |
172,841 |
362,063 |
356,627 |
|||||||||||
Gross profit |
152,915 |
141,597 |
287,654 |
298,956 |
|||||||||||
Selling, general and administrative |
83,426 |
69,034 |
158,889 |
149,271 |
|||||||||||
Research and development |
13,970 |
13,760 |
27,204 |
27,872 |
|||||||||||
Restructuring charges |
7,078 |
8,865 |
8,385 |
10,872 |
|||||||||||
Currency exchange losses (gains), net |
1,640 |
793 |
(459) |
1,063 |
|||||||||||
Product liability expense |
11,751 |
851 |
14,547 |
2,802 |
|||||||||||
Operating income |
35,050 |
48,294 |
79,088 |
107,076 |
|||||||||||
Interest expense |
2,172 |
2,459 |
4,082 |
5,602 |
|||||||||||
Other income, net |
(2,293) |
(2,000) |
(6,506) |
(3,258) |
|||||||||||
Total other (income) expense, net |
(121) |
459 |
(2,424) |
2,344 |
|||||||||||
Income before income taxes |
35,171 |
47,835 |
81,512 |
104,732 |
|||||||||||
Provision for income taxes |
9,784 |
11,429 |
19,525 |
24,523 |
|||||||||||
Net income |
25,387 |
36,406 |
61,987 |
80,209 |
|||||||||||
Net income attributable to noncontrolling interests |
(262) |
(340) |
(448) |
(468) |
|||||||||||
Net income attributable to |
$ |
25,125 |
$ |
36,066 |
$ |
61,539 |
$ |
79,741 |
|||||||
Earnings per share attributable to Incorporated common shareholders: |
|||||||||||||||
Basic |
$ |
0.64 |
$ |
0.93 |
$ |
1.57 |
$ |
2.05 |
|||||||
Diluted |
$ |
0.64 |
$ |
0.92 |
$ |
1.56 |
$ |
2.03 |
|||||||
Basic shares outstanding |
39,167 |
38,830 |
39,131 |
38,826 |
|||||||||||
Diluted shares outstanding |
39,420 |
39,195 |
39,421 |
39,273 |
|
|||||||
Condensed Consolidated Balance Sheet (Unaudited) |
|||||||
(In thousands) |
|||||||
|
|
||||||
Assets |
|||||||
Cash and cash equivalents |
$ |
174,078 |
$ |
160,672 |
|||
Trade receivables, net |
226,575 |
252,283 |
|||||
Inventories |
232,658 |
197,819 |
|||||
Notes receivable, insurance companies |
3,855 |
3,796 |
|||||
Other current assets |
132,816 |
139,708 |
|||||
Total current assets |
769,982 |
754,278 |
|||||
Property, net |
201,163 |
189,620 |
|||||
Prepaid pension cost |
105,078 |
97,545 |
|||||
Operating lease assets, net |
67,383 |
53,451 |
|||||
|
447,267 |
443,272 |
|||||
Notes receivable, insurance companies, noncurrent |
49,133 |
48,540 |
|||||
Insurance receivable, noncurrent |
91,185 |
85,077 |
|||||
Other noncurrent assets |
232,042 |
200,701 |
|||||
Total assets |
$ |
1,963,233 |
$ |
1,872,484 |
|||
Liabilities and shareholders' equity |
|||||||
Notes payable and current portion of long-term debt, net |
$ |
20,000 |
$ |
20,000 |
|||
Accounts payable |
89,086 |
86,854 |
|||||
Other current liabilities |
208,755 |
203,691 |
|||||
Total current liabilities |
317,841 |
310,545 |
|||||
Long-term debt, net |
314,587 |
287,157 |
|||||
Pensions and other employee benefits |
201,311 |
208,068 |
|||||
Noncurrent operating lease liabilities |
58,877 |
44,639 |
|||||
Deferred tax liabilities |
13,017 |
10,916 |
|||||
Product liability and other noncurrent liabilities |
208,832 |
201,268 |
|||||
Total shareholders' equity |
848,768 |
809,891 |
|||||
Total liabilities and shareholders' equity |
$ |
1,963,233 |
$ |
1,872,484 |
|
|||||||||||||||
Condensed Consolidated Statement of Cash Flows (Unaudited) |
|||||||||||||||
(In thousands) |
|||||||||||||||
Three Months Ended |
Six Months Ended |
||||||||||||||
2021 |
2020 |
2021 |
2020 |
||||||||||||
Net income |
$ |
25,387 |
$ |
36,406 |
$ |
61,987 |
$ |
80,209 |
|||||||
Depreciation and amortization |
11,584 |
9,786 |
22,088 |
19,428 |
|||||||||||
Change in working capital and other operating |
1,327 |
23,232 |
(161) |
(16,606) |
|||||||||||
Cash flow from operating activities |
38,298 |
69,424 |
83,914 |
83,031 |
|||||||||||
Capital expenditures |
(10,706) |
(13,272) |
(20,288) |
(19,834) |
|||||||||||
Acquisition, net of cash acquired |
— |
— |
(62,992) |
— |
|||||||||||
Change in short-term investments |
5,015 |
10,210 |
25,045 |
(9,402) |
|||||||||||
Property disposals |
25 |
(9) |
60 |
83 |
|||||||||||
Cash flow used in investing activities |
(5,666) |
(3,071) |
(58,175) |
(29,153) |
|||||||||||
Change in debt |
(25,013) |
(37,000) |
27,004 |
(9,000) |
|||||||||||
Cash dividends paid |
(17,247) |
(16,721) |
(34,067) |
(33,052) |
|||||||||||
Other financing |
(834) |
873 |
(4,392) |
(24,124) |
|||||||||||
Cash flow used in financing activities |
(43,094) |
(52,848) |
(11,455) |
(66,176) |
|||||||||||
Effect of exchange rate changes on cash, cash equivalents and restricted cash |
(187) |
102 |
(907) |
(3,654) |
|||||||||||
(Decrease) increase in cash, cash equivalents and |
$ |
(10,649) |
$ |
13,607 |
$ |
13,377 |
$ |
(15,952) |
|
|||||||||||||||
Segment Information (Unaudited) |
|||||||||||||||
(In thousands, except percentage amounts) |
|||||||||||||||
|
International |
Corporate |
Consolidated |
||||||||||||
Three Months Ended |
|||||||||||||||
Sales to external customers |
$ |
217,707 |
$ |
123,582 |
$ |
— |
$ |
341,289 |
|||||||
Operating income |
35,050 |
||||||||||||||
Operating margin % |
10.3 |
% |
|||||||||||||
Restructuring charges |
7,078 |
||||||||||||||
Currency exchange losses, net |
1,640 |
||||||||||||||
Product liability expense |
11,751 |
||||||||||||||
Acquisition related costs |
3,168 |
||||||||||||||
Adjusted operating income (loss) |
49,238 |
20,440 |
(10,991) |
58,687 |
|||||||||||
Adjusted operating margin % |
22.6 |
% |
16.5 |
% |
17.2 |
% |
|||||||||
Depreciation and amortization |
11,584 |
||||||||||||||
Adjusted EBITDA |
57,137 |
24,020 |
(10,886) |
70,271 |
|||||||||||
Adjusted EBITDA % |
26.2 |
% |
19.4 |
% |
20.6 |
% |
|||||||||
Three Months Ended |
|||||||||||||||
Sales to external customers |
$ |
204,231 |
$ |
110,207 |
$ |
— |
$ |
314,438 |
|||||||
Operating income |
48,294 |
||||||||||||||
Operating margin % |
15.4 |
% |
|||||||||||||
Restructuring charges |
8,865 |
||||||||||||||
Currency exchange losses, net |
793 |
||||||||||||||
Product liability expense |
851 |
||||||||||||||
Acquisition related costs |
64 |
||||||||||||||
Adjusted operating income (loss) |
49,003 |
17,402 |
(7,538) |
58,867 |
|||||||||||
Adjusted operating margin % |
24.0 |
% |
15.8 |
% |
18.7 |
% |
|||||||||
Depreciation and amortization |
9,786 |
||||||||||||||
Adjusted EBITDA |
55,620 |
20,474 |
(7,441) |
68,653 |
|||||||||||
Adjusted EBITDA % |
27.2 |
% |
18.6 |
% |
21.8 |
% |
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, product liability expense, acquisition related costs, including acquisition related amortization, and COVID-19 related costs. Adjusted operating margin is defined as adjusted operating income (loss) divided by segment 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 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.
|
International |
Corporate |
Consolidated |
||||||||||||
Six Months Ended |
|||||||||||||||
Sales to external customers |
$ |
426,046 |
$ |
223,671 |
$ |
— |
$ |
649,717 |
|||||||
Operating income |
79,088 |
||||||||||||||
Operating margin % |
12.2 |
% |
|||||||||||||
Restructuring charges |
8,385 |
||||||||||||||
Currency exchange gains, net |
(459) |
||||||||||||||
Product liability expense |
14,547 |
||||||||||||||
Acquisition related costs |
4,541 |
||||||||||||||
Adjusted operating income (loss) |
94,390 |
29,194 |
(17,482) |
106,102 |
|||||||||||
Adjusted operating margin % |
22.2 |
% |
13.1 |
% |
16.3 |
% |
|||||||||
Depreciation and amortization |
22,088 |
||||||||||||||
Adjusted EBITDA |
109,322 |
36,147 |
(17,279) |
128,190 |
|||||||||||
Adjusted EBITDA % |
25.7 |
% |
16.2 |
% |
19.7 |
% |
|||||||||
Six Months Ended |
|||||||||||||||
Sales to external customers |
$ |
435,484 |
$ |
220,099 |
$ |
— |
$ |
655,583 |
|||||||
Operating income |
107,076 |
||||||||||||||
Operating margin % |
16.3 |
% |
|||||||||||||
Restructuring charges |
10,872 |
||||||||||||||
Currency exchange losses, net |
1,063 |
||||||||||||||
Product liability expense |
2,802 |
||||||||||||||
Acquisition related costs |
161 |
||||||||||||||
COVID-19 related costs |
757 |
||||||||||||||
Adjusted operating income (loss) |
108,811 |
30,073 |
(16,153) |
122,731 |
|||||||||||
Adjusted operating margin % |
25.0 |
% |
13.7 |
% |
18.7 |
% |
|||||||||
Depreciation and amortization |
19,428 |
||||||||||||||
Adjusted EBITDA |
121,878 |
36,239 |
(15,958) |
142,159 |
|||||||||||
Adjusted EBITDA % |
28.0 |
% |
16.5 |
% |
21.7 |
% |
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, product liability expense, acquisition related costs, including acquisition related amortization, and COVID-19 related costs. Adjusted operating margin is defined as adjusted operating income (loss) divided by segment 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 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.
|
||||||||||||||||||||
Reconciliation of As Reported Financial Measures to Non-GAAP Financial Measures |
||||||||||||||||||||
Constant currency revenue growth (Unaudited) |
||||||||||||||||||||
Consolidated |
||||||||||||||||||||
Three Months Ended |
||||||||||||||||||||
Breathing Apparatus |
Firefighter Helmets and Protective Apparel |
Industrial Head Protection |
Portable Gas Detection |
|
Fall Protection |
Core Sales |
Non-Core Sales |
|
||||||||||||
GAAP reported sales change |
1 |
% |
32 |
% |
25 |
% |
37 |
% |
(1) |
% |
42 |
% |
15 |
% |
(26) |
% |
9 |
% |
||
Plus: Currency translation effects |
(3) |
% |
(4) |
% |
(5) |
% |
(5) |
% |
(3) |
% |
(8) |
% |
(3) |
% |
(4) |
% |
(4) |
% |
||
Constant currency sales change |
(2) |
% |
28 |
% |
20 |
% |
32 |
% |
(4) |
% |
34 |
% |
12 |
% |
(30) |
% |
5 |
% |
Six Months Ended |
||||||||||||||||||||
Breathing Apparatus |
Firefighter Helmets and Protective Apparel |
Industrial Head Protection |
Portable Gas Detection |
|
Fall Protection |
Core Sales |
Non-Core Sales |
|
||||||||||||
GAAP reported sales change |
(4) |
% |
20 |
% |
7 |
% |
10 |
% |
(8) |
% |
16 |
% |
4 |
% |
(26) |
% |
(1) |
% |
||
Plus: Currency translation effects |
(2) |
% |
(3) |
% |
(1) |
% |
(3) |
% |
(2) |
% |
(5) |
% |
(3) |
% |
(3) |
% |
(3) |
% |
||
Constant currency sales change |
(6) |
% |
17 |
% |
6 |
% |
7 |
% |
(10) |
% |
11 |
% |
1 |
% |
(29) |
% |
(4) |
% |
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. There can be no assurances that MSA's definition of 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.
|
||||||||||||||||||||
Reconciliation of As Reported Financial Measures to Non-GAAP Financial Measures |
||||||||||||||||||||
Constant currency revenue growth (Unaudited) |
||||||||||||||||||||
Americas Segment |
||||||||||||||||||||
Three Months Ended |
||||||||||||||||||||
Breathing Apparatus |
Firefighter Helmets and Protective Apparel |
Industrial Head Protection |
Portable Gas Detection |
|
Fall Protection |
Core Sales |
Non-Core Sales |
|
||||||||||||
GAAP reported sales change |
2 |
% |
8 |
% |
41 |
% |
48 |
% |
1 |
% |
55 |
% |
16 |
% |
(39) |
% |
7 |
% |
||
Plus: Currency translation effects |
— |
% |
— |
% |
(3) |
% |
(2) |
% |
(1) |
% |
(3) |
% |
(1) |
% |
(1) |
% |
(1) |
% |
||
Constant currency sales change |
2 |
% |
8 |
% |
38 |
% |
46 |
% |
— |
% |
52 |
% |
15 |
% |
(40) |
% |
6 |
% |
Six Months Ended |
||||||||||||||||||||
Breathing Apparatus |
Firefighter Helmets and Protective Apparel |
Industrial Head Protection |
Portable Gas Detection |
|
Fall Protection |
Core Sales |
Non-Core Sales |
|
||||||||||||
GAAP reported sales change |
(3) |
% |
4 |
% |
12 |
% |
14 |
% |
(6) |
% |
15 |
% |
3 |
% |
(33) |
% |
(2) |
% |
||
Plus: Currency translation effects |
— |
% |
— |
% |
1 |
% |
— |
% |
— |
% |
(1) |
% |
— |
% |
— |
% |
— |
% |
||
Constant currency sales change |
(3) |
% |
4 |
% |
13 |
% |
14 |
% |
(6) |
% |
14 |
% |
3 |
% |
(33) |
% |
(2) |
% |
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. There can be no assurances that MSA's definition of 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.
|
||||||||||||||||||||
Reconciliation of As Reported Financial Measures to Non-GAAP Financial Measures |
||||||||||||||||||||
Constant currency revenue growth (Unaudited) |
||||||||||||||||||||
International Segment |
||||||||||||||||||||
Three Months Ended |
||||||||||||||||||||
Breathing Apparatus |
Firefighter Helmets and Protective Apparel |
Industrial Head Protection |
Portable Gas Detection |
|
Fall Protection |
Core Sales |
Non-Core Sales |
|
||||||||||||
GAAP reported sales change |
(1) |
% |
153 |
% |
(8) |
% |
20 |
% |
(2) |
% |
28 |
% |
14 |
% |
— |
% |
12 |
% |
||
Plus: Currency translation effects |
(8) |
% |
(24) |
% |
(7) |
% |
(9) |
% |
(7) |
% |
(13) |
% |
(9) |
% |
(9) |
% |
(9) |
% |
||
Constant currency sales change |
(9) |
% |
129 |
% |
(15) |
% |
11 |
% |
(9) |
% |
15 |
% |
5 |
% |
(9) |
% |
3 |
% |
Six Months Ended |
||||||||||||||||||||
Breathing Apparatus |
Firefighter Helmets and Protective Apparel |
Industrial Head Protection |
Portable Gas Detection |
|
Fall Protection |
Core Sales |
Non-Core Sales |
|
||||||||||||
GAAP reported sales change |
(5) |
% |
98 |
% |
(5) |
% |
2 |
% |
(10) |
% |
18 |
% |
5 |
% |
(14) |
% |
2 |
% |
||
Plus: Currency translation effects |
(8) |
% |
(19) |
% |
(8) |
% |
(7) |
% |
(5) |
% |
(11) |
% |
(8) |
% |
(7) |
% |
(8) |
% |
||
Constant currency sales change |
(13) |
% |
79 |
% |
(13) |
% |
(5) |
% |
(15) |
% |
7 |
% |
(3) |
% |
(21) |
% |
(6) |
% |
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. There can be no assurances that MSA's definition of 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.
|
||||||||
Supplemental Segment Information (Unaudited) |
||||||||
Summary of constant currency revenue growth by segment and product group |
||||||||
Three Months Ended |
||||||||
Consolidated |
|
International |
||||||
Fall Protection |
34 |
% |
52 |
% |
15 |
% |
||
Portable Gas Detection |
32 |
% |
46 |
% |
11 |
% |
||
Firefighter Helmets and Protective Apparel |
28 |
% |
8 |
% |
129 |
% |
||
Industrial Head Protection |
20 |
% |
38 |
% |
(15) |
% |
||
Breathing Apparatus |
(2) |
% |
2 |
% |
(9) |
% |
||
|
(4) |
% |
— |
% |
(9) |
% |
||
Core Sales |
12 |
% |
15 |
% |
5 |
% |
||
Non-Core Sales |
(30) |
% |
(40) |
% |
(9) |
% |
||
|
5 |
% |
6 |
% |
3 |
% |
Six Months Ended |
||||||||
Consolidated |
|
International |
||||||
Firefighter Helmets and Protective Apparel |
17 |
% |
4 |
% |
79 |
% |
||
Fall Protection |
11 |
% |
14 |
% |
7 |
% |
||
Portable Gas Detection |
7 |
% |
14 |
% |
(5) |
% |
||
Industrial Head Protection |
6 |
% |
13 |
% |
(13) |
% |
||
Breathing Apparatus |
(6) |
% |
(3) |
% |
(13) |
% |
||
|
(10) |
% |
(6) |
% |
(15) |
% |
||
Core Sales |
1 |
% |
3 |
% |
(3) |
% |
||
Non-Core Sales |
(29) |
% |
(33) |
% |
(21) |
% |
||
|
(4) |
% |
(2) |
% |
(6) |
% |
|
||||||||||||||||||||
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 |
Six Months Ended |
|||||||||||||||||||
2021 |
2020 |
% |
2021 |
2020 |
% |
|||||||||||||||
Net income attributable to |
$ |
25,125 |
$ |
36,066 |
(30)% |
$ |
61,539 |
$ |
79,741 |
(23)% |
||||||||||
Tax benefit associated with ASU 2016- based payment accounting |
(545) |
(348) |
(2,079) |
(1,619) |
||||||||||||||||
Subtotal |
24,580 |
35,718 |
(31)% |
59,460 |
78,122 |
(24)% |
||||||||||||||
Product liability expense |
11,751 |
851 |
14,547 |
2,802 |
||||||||||||||||
Acquisition related costs |
3,168 |
64 |
4,541 |
161 |
||||||||||||||||
Restructuring charges |
7,078 |
8,865 |
8,385 |
10,872 |
||||||||||||||||
Asset related losses, net |
29 |
5 |
48 |
127 |
||||||||||||||||
COVID-19 related costs |
— |
— |
— |
757 |
||||||||||||||||
Currency exchange losses (gains), net |
1,640 |
793 |
(459) |
1,063 |
||||||||||||||||
Income tax expense on adjustments |
(6,484) |
(2,613) |
(7,320) |
(3,914) |
||||||||||||||||
Adjusted earnings |
$ |
41,762 |
$ |
43,683 |
(4)% |
$ |
79,202 |
$ |
89,990 |
(12)% |
||||||||||
Adjusted earnings per diluted share |
$ |
1.06 |
$ |
1.11 |
(5)% |
$ |
2.01 |
$ |
2.29 |
(12)% |
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,
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
Non-GAAP Financial Measures:
This press release includes certain non-GAAP financial measures. These financial measures include constant currency revenue growth, adjusted operating income, adjusted operating margin, adjusted EBITDA, adjusted EBITDA margin, adjusted earnings, and adjusted earnings per diluted share. The presentation of these financial measures does not comply with
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Media Relations Contact: Mark Deasy (412) 559 - 8154; Investor Relations Contact: Elyse Lorenzato (412) 352 -1423