Jul 31,2023

MSA Safety Announces Second Quarter Results

Strong double-digit sales and earnings growth; increasing full year sales growth outlook to low double-digits

PITTSBURGH, July 31, 2023 /PRNewswire/ -- Global safety equipment and solutions provider MSA Safety Incorporated (NYSE: MSA) today reported financial results for the second quarter of 2023.

Quarterly Highlights

  • Achieved quarterly net sales of $447 million, a 20% increase year-over-year, reflecting broad-based strength across MSA's product portfolio and regions.
  • Generated GAAP operating income of $95 million, or 21.2% of sales, and adjusted operating income of $104 million, or 23.2% of sales.
  • Recorded GAAP net income of $67 million, or $1.70 per diluted share, and adjusted earnings of $72 million, or $1.83 per diluted share.
  • Invested $10 million in capital expenditures, repaid $59 million of debt and deployed $18 million for dividends to shareholders.

"Our team delivered excellent results in the second quarter, as we built on the positive momentum from the start of the year to achieve strong quarterly sales and healthy growth," said Nish Vartanian, MSA Safety Chairman and Chief Executive Officer. "Our results demonstrate the strength of our diversified portfolio, leading global market positions and the resiliency of our end markets. Our purposeful investments in talent, innovation and strategic acquisitions have helped to enhance the breadth and depth of our portfolio, serving as a sustainable foundation for ongoing profitable growth." 

Commenting on the recent promotions of Steve Blanco to President and Chief Operating Officer, Stephanie Sciullo to President of MSA's Americas segment and Rick Roda to Chief Legal Officer, Mr. Vartanian added, "I am excited about the promotions of Steve, Stephanie and Rick to their new roles, which recognizes their significant contributions to MSA's success and my confidence in their ability to create positive impacts and deliver results going forward."

Mr. Vartanian concluded, "As we move into the second half of the year, we will continue to emphasize operational and commercial excellence, supported by the MSA Business System. We are focused on providing our customers with innovative safety products and solutions, capturing growth from end markets aligned with secular growth trends and delivering long-term value creation for all our stakeholders."

Financial Highlights and Balance Sheet

Financial Highlights


Three Months Ended June 30,



($ millions, except per share data)


2023


2022


% Change(a)

Net Sales


$                 447


$                 372


20 %

Operating Income


95


62


54 %

Adjusted Operating Income


104


66


58 %

Net Income


67


48


41 %

Diluted EPS


1.70


1.21


40 %

Adjusted Earnings


72


51


42 %

Adjusted Diluted EPS


1.83


1.29


42 %

(a) Percentage change may not calculate exactly due to rounding.

 

Lee McChesney, MSA Safety Senior Vice President and Chief Financial Officer, commented, "Our team executed well in the second quarter and delivered robust growth, margin expansion and cash flow generation. We strengthened our balance sheet position and ended the quarter with 1.7x net leverage, a sequential improvement from 2.0x in the prior quarter. Looking ahead, we are confident in our ability to deliver on our financial commitments, and based on the strong first half performance, we are increasing our sales growth outlook to low double-digits for the full year and remain focused on delivering healthy margins and cash flow generation."

Conference Call
MSA Safety will host a conference call on Tuesday, August 1, 2023 at 10:00 a.m. Eastern Time to discuss its second quarter 2023 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
June 30,


Six Months Ended
June 30,


2023


2022


2023


2022









Net sales

$   447,299


$   372,313


$   845,561


$   703,005

Cost of products sold

233,503


207,913


450,367


395,821

Gross profit

213,796


164,400


395,194


307,184









Selling, general and administrative

96,336


86,076


187,427


164,625

Research and development

15,992


15,268


31,224


28,601

Restructuring charges

3,350


57


5,097


2,247

Currency exchange losses (gains), net

3,110


(1,463)


7,285


1,809

Loss on divestiture of MSA LLC



129,211


Product liability expense


2,926


3


5,698

Operating income

95,008


61,536


34,947


104,204









Interest expense

13,175


4,578


24,651


8,196

Other income, net

(5,650)


(6,419)


(9,450)


(12,762)

Total other expense (income), net

7,525


(1,841)


15,201


(4,566)









Income before income taxes

87,483


63,377


19,746


108,770

Provision for income taxes

20,393


15,684


102,829


25,535

Net income (loss)

$     67,090


$     47,693


$   (83,083)


$     83,235









Earnings (loss) per share attributable to common shareholders:








Basic

$         1.71


$         1.21


$       (2.12)


$         2.12

Diluted

$         1.70


$         1.21


$       (2.12)


$         2.11









Basic shares outstanding

39,274


39,266


39,249


39,279

Diluted shares outstanding

39,409


39,421


39,249


39,472

 

MSA Safety Incorporated

Condensed Consolidated Balance Sheets (Unaudited)

(In thousands)



June 30, 2023


December 31, 2022





Assets




Cash and cash equivalents

$                      146,897


$                          162,902

Trade receivables, net

302,201


297,028

Inventories

337,954


338,316

Notes receivable, insurance companies


5,931

Other current assets

63,328


75,949

    Total current assets

850,380


880,126





Property, plant and equipment, net

206,066


207,552

Prepaid pension cost

148,172


141,643

Goodwill

626,262


620,622

Intangible assets, net

275,305


281,853

Notes receivable, insurance companies, noncurrent


38,695

Insurance receivable, noncurrent


110,300

Other noncurrent assets

92,966


96,185

   Total assets

$                   2,199,151


$                       2,376,976





Liabilities and shareholders' equity




Notes payable and current portion of long-term debt, net

$                        26,492


$                              7,387

Accounts payable

107,046


112,532

Other current liabilities

166,412


225,946

   Total current liabilities

299,950


345,865





Long-term debt, net

787,527


565,445

Pensions and other employee benefits

139,783


137,810

Deferred tax liabilities

102,744


31,881

Product liability and other noncurrent liabilities

38,016


372,234

Total shareholders' equity

831,131


923,741

   Total liabilities and shareholders' equity

$                   2,199,151


$                       2,376,976

 

MSA Safety Incorporated

Condensed Consolidated Statements of Cash Flows (Unaudited)

(In thousands)



Three Months Ended
June 30,


Six Months Ended

June 30,


2023


2022


2023


2022









Net income (loss)

$     67,090


$     47,693


$   (83,083)


$     83,235

Depreciation and amortization

14,889


13,922


29,461


28,087

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

13,089


(46,162)


4,389


(71,346)

Cash flow from (used in) operating activities

95,068


15,453


(190,841)


39,976









Capital expenditures

(9,920)


(11,829)


(18,322)


(19,805)

Change in short-term investments


5,180



14,207

Property disposals and other investing

2,639



2,674


Cash flow used in investing activities

(7,281)


(6,649)


(15,648)


(5,598)









Change in debt

(58,514)


32,000


236,898


37,000

Cash dividends paid

(18,469)


(18,109)


(36,514)


(35,401)

Other financing

801


(27,764)


(3,795)


(31,372)

Cash flow (used in) from financing activities

(76,182)


(13,873)


196,589


(29,773)









Effect of exchange rate changes on cash, cash

equivalents and restricted cash

(3,364)


(7,113)


(5,651)


(10,474)









Increase (decrease) in cash, cash equivalents and restricted cash

$       8,241


$   (12,182)


$   (15,551)


$     (5,869)

 

MSA Safety Incorporated

Segment Information (Unaudited)

(In thousands, except percentage amounts)



Americas


International


Corporate


Consolidated

Three Months Ended June 30, 2023








Net sales to external customers

$ 308,378


$ 138,921


$              —


$   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 %









Three Months Ended June 30, 2022








Net sales to external customers

$ 252,386


$ 119,927


$              —


$   372,313

Operating income







61,536

Operating margin %







16.5 %

Restructuring charges







57

Currency exchange gains, net







(1,463)

Product liability expense







2,926

Amortization of acquisition-related intangible assets







2,318

Transaction costs (a)







239

Adjusted operating income (loss)

57,141


17,207


(8,735)


65,613

Adjusted operating margin %

22.6 %


14.3 %




17.6 %

Depreciation and amortization







11,604

Adjusted EBITDA

65,461


20,370


(8,614)


77,217

Adjusted EBITDA margin %

25.9 %


17.0 %




20.7 %










(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 unaudited Condensed Consolidated Statements of Operations.

 

MSA Safety Incorporated

Segment Information (Unaudited)

(In thousands, except percentage amounts)



Americas


International


Corporate


Consolidated

Six Months Ended June 30, 2023








Net sales to external customers

$ 588,645


$ 256,916


$              —


$   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 %









Six Months Ended June 30, 2022








Net sales to external customers

$ 478,034


$ 224,971


$              —


$   703,005

Operating income







104,204

Operating margin %







14.8 %

Restructuring charges







2,247

Currency exchange losses, net







1,809

Product liability expense







5,698

Amortization of acquisition-related intangible assets







4,667

Transaction costs (a)







832

Adjusted operating income (loss)

109,577


26,196


(16,316)


119,457

Adjusted operating margin %

22.9 %


11.6 %




17.0 %

Depreciation and amortization







23,420

Adjusted EBITDA

126,256


32,698


(16,077)


142,877

Adjusted EBITDA margin %

26.4 %


14.5 %




20.3 %










(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 Americas segment is comprised of our operations in Northern North American and Latin American geographies. The International segment is comprised of our operations in all geographies outside of the Americas. Certain global expenses are allocated to each segment in a manner consistent with where the benefits from the expenses are derived.

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, 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

Constant currency revenue growth (Unaudited)

 

Consolidated



Three Months Ended June 30, 2023


Breathing
Apparatus

Firefighter
Helmets
and
Protective
Apparel

Fixed Gas
and Flame
Detection

Portable
Gas
Detection

Industrial
Head
Protection

Fall
Protection

Core Sales


Non-Core
Sales


Net Sales

GAAP reported sales change

10 %

36 %

32 %

17 %

8 %

27 %

21 %


13 %


20 %

Plus: Currency translation effects

— %

— %

(1) %

— %

(1) %

— %

— %


(1) %


— %

Constant currency sales change

10 %

36 %

31 %

17 %

7 %

27 %

21 %


12 %


20 %



Six Months Ended June 30, 2023


Breathing
Apparatus

Firefighter
Helmets
and
Protective
Apparel

Fixed Gas
and Flame
Detection

Portable
Gas
Detection

Industrial
Head
Protection

Fall
Protection

Core Sales


Non-Core
Sales


Net Sales

GAAP reported sales change

9 %

33 %

22 %

29 %

13 %

27 %

20 %


18 %


20 %

Plus: Currency translation effects

1 %

1 %

— %

1 %

— %

1 %

1 %


1 %


1 %

Constant currency sales change

10 %

34 %

22 %

30 %

13 %

28 %

21 %


19 %


21 %

 

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.

 

MSA Safety Incorporated

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

Constant currency revenue growth (Unaudited)

 

Americas Segment



Three Months Ended June 30, 2023


Breathing
Apparatus

Firefighter
Helmets
and
Protective
Apparel

Fixed Gas
and Flame
Detection

Portable
Gas
Detection

Industrial
Head
Protection

Fall
Protection

Core Sales


Non-Core
Sales


Net Sales

GAAP reported sales change

7 %

48 %

31 %

20 %

6 %

32 %

22 %


24 %


22 %

Plus: Currency translation effects

— %

— %

— %

— %

(1) %

(2) %

(1) %


(2) %


— %

Constant currency sales change

7 %

48 %

31 %

20 %

5 %

30 %

21 %


22 %


22 %



Six Months Ended June 30, 2023


Breathing
Apparatus

Firefighter
Helmets
and
Protective
Apparel

Fixed Gas
and Flame
Detection

Portable
Gas
Detection

Industrial
Head
Protection

Fall
Protection

Core Sales


Non-Core
Sales


Net Sales

GAAP reported sales change

6 %

48 %

21 %

33 %

12 %

29 %

22 %


35 %


23 %

Plus: Currency translation effects

— %

— %

— %

(1) %

(1) %

(1) %

— %


(2) %


— %

Constant currency sales change

6 %

48 %

21 %

32 %

11 %

28 %

22 %


33 %


23 %

 

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.

 

MSA Safety Incorporated

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

Constant currency revenue growth (Unaudited)

 

International Segment



Three Months Ended June 30, 2023


Breathing
Apparatus

Firefighter
Helmets
and
Protective
Apparel

Fixed Gas
and Flame
Detection

Portable
Gas
Detection

Industrial
Head
Protection

Fall
Protection

Core Sales


Non-Core
Sales


Net Sales

GAAP reported sales change

17 %

4 %

32 %

9 %

14 %

19 %

18 %


— %


16 %

Plus: Currency translation effects

— %

(1) %

(1) %

1 %

2 %

1 %

1 %


1 %


— %

Constant currency sales change

17 %

3 %

31 %

10 %

16 %

20 %

19 %


1 %


16 %



Six Months Ended June 30, 2023


Breathing
Apparatus

Firefighter
Helmets
and
Protective
Apparel

Fixed Gas
and Flame
Detection

Portable
Gas
Detection

Industrial
Head
Protection

Fall
Protection

Core Sales


Non-Core
Sales


Net Sales

GAAP reported sales change

17 %

(4) %

23 %

21 %

15 %

23 %

17 %


(1) %


14 %

Plus: Currency translation effects

2 %

3 %

2 %

3 %

4 %

5 %

3 %


3 %


3 %

Constant currency sales change

19 %

(1) %

25 %

24 %

19 %

28 %

20 %


2 %


17 %

 

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.

 

MSA Safety Incorporated

Supplemental Segment Information (Unaudited)

Summary of constant currency revenue growth by segment and product group



Three Months Ended June 30, 2023


Consolidated


Americas


International







Firefighter Helmets & Protective Apparel

36 %


48 %


3 %

Fixed Gas and Flame Detection

31 %


31 %


31 %

Fall Protection

27 %


30 %


20 %

Portable Gas Detection

17 %


20 %


10 %

Breathing Apparatus

10 %


7 %


17 %

Industrial Head Protection

7 %


5 %


16 %

Core Sales

21 %


21 %


19 %







Non-Core Sales

12 %


22 %


1 %







Net Sales

20 %


22 %


16 %



Six Months Ended June 30, 2023


Consolidated


Americas


International







Firefighter Helmets & Protective Apparel

34 %


48 %


(1) %

Fixed Gas and Flame Detection

22 %


21 %


25 %

Fall Protection

28 %


28 %


28 %

Portable Gas Detection

30 %


32 %


24 %

Breathing Apparatus

10 %


6 %


19 %

Industrial Head Protection

13 %


11 %


19 %

Core Sales

21 %


22 %


20 %







Non-Core Sales

19 %


33 %


2 %







Net Sales

21 %


23 %


17 %

 

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
June 30,




Six Months Ended

June 30,




2023


2022


%

Change


2023


2022


%

Change













Net income (loss)

$     67,090


$     47,693


41 %


$   (83,083)


$     83,235


(200) %













Loss on divestiture of MSA LLC





129,211




Deferred tax asset write-off related to divestiture of MSA LLC





70,366




Product liability expense


2,926




3


5,698



Amortization of acquisition-related intangible assets

2,315


2,318




4,620


4,667



Transaction costs (a)


239





832



Restructuring charges

3,350


57




5,097


2,247



Asset related (gains) losses and other

(1,452)


120




(713)


124



Currency exchange losses (gains), net

3,110


(1,463)




7,285


1,809



Income tax expense on adjustments

(2,276)


(946)




(6,921)


(4,069)



Adjusted earnings

$     72,137


$     50,944


42 %


$   125,865


$     94,543


33 %













Adjusted earnings per diluted share

$         1.83


$         1.29


42 %


$         3.19


$         2.40


33 %














(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 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 (loss) income 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
June 30, 2023

Operating income


$                         169,880

Loss on divestiture of MSA LLC


129,211

Depreciation and amortization


48,531

Product liability expense


14,895

Restructuring charges


10,815

Currency exchange losses, net


15,731

Amortization of acquisition-related intangible assets


9,160

Transaction costs (a)


2,401

Adjusted EBITDA


$                         400,624




Total end-of-period debt


814,019




Debt to adjusted EBITDA


2.0




Total end-of-period debt


$                         814,019

Total end-of-period cash and cash equivalents


146,897

Net debt


$                         667,122




Net debt to adjusted EBITDA


1.7


(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 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:  

Established in 1914, MSA Safety Incorporated is the global leader in the development, manufacture and supply of safety products and solutions that protect people and facility infrastructures. Many MSA products integrate a combination of electronics, software, 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 fire service, the oil, gas and petrochemical industry, construction, industrial manufacturing applications, heating, ventilation, air conditioning and refrigeration, utilities, 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, firefighter helmets and protective apparel, and fall protection devices. With 2022 revenues of $1.5 billion, MSA employs approximately 5,000 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. 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. 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 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 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 U.S. GAAP. These non-GAAP financial measures should be viewed as supplemental in nature, and not as a substitute for, or superior to, our reported results prepared in accordance with GAAP. When non-GAAP financial measures are disclosed, the Securities and Exchange Commission's Regulation G requires: (i) the presentation of the most directly comparable financial measure calculated and presented in accordance with GAAP and (ii) a reconciliation of the differences between the non-GAAP financial measure presented and the most directly comparable financial measure calculated and presented in accordance with GAAP. The presentation of these financial measures does not comply with U.S. generally accepted accounting principles ("GAAP"). For an explanation of these measures, 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.

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SOURCE MSA Safety

Media Relations Contact: Mark Deasy (412) 559-8154; Investor Relations Contact: Chris Hepler (412) 225-3717