Press Release

Oct 28,2020

MSA Safety Announces Third Quarter Results

PITTSBURGH, Oct. 28, 2020 /PRNewswire/ -- Global safety equipment manufacturer MSA Safety Incorporated (NYSE: MSA) today reported results for the third quarter of 2020.

Quarterly Highlights

  • Revenue was $304 million, decreasing 13 percent from a year ago on both a reported and constant currency basis.
     
  • Following weak demand in key markets in July and August, business conditions improved in September with monthly incoming orders growing on a sequential and year over year basis.
     
  • GAAP operating income was $41 million or 13.5 percent of sales, compared to $60 million or 17.0 percent of sales in the same period a year ago. Adjusted operating income was $54 million or 17.6 percent of sales, compared to $63 million or 18.0 percent of sales in the same period a year ago.
     
  • GAAP earnings were $28 million or $0.71 per diluted share, compared to $42 million or $1.08 per diluted share in the same period a year ago.  Adjusted earnings were $37 million or $0.94 per diluted share, compared to $45 million or $1.15 per diluted share in the same period a year ago.
     
  • MSA's debt balance was $342 million at quarter end, reflecting 1.2x adjusted EBITDA on a gross basis or 0.7x adjusted EBITDA on a net basis. With $133 million in cash and significant room available under its current debt covenants, the company has ample liquidity and flexibility to maintain its balanced capital allocation strategy.

Comments from Management

"The global pandemic and its ripple effects on employment and the economy certainly had an impact on our third quarter results," said Nish Vartanian, MSA Chairman, President and CEO.  "Our team, however, executed well and our results reflect the benefits of previous restructuring programs as well as our actions to lower discretionary costs throughout the year," he said.

"It was a tough July and August from a demand perspective, particularly in the energy and commercial construction markets in the Americas segment," Mr. Vartanian said, adding that the COVID-19 resurgence in the summer across the Gulf Coast of the U.S. negatively impacted a number of the company's key markets. "In September, we saw significant improvement in orders and revenue across nearly every area of our business."

Mr. Vartanian noted that despite the quarterly revenue contraction of 13 percent, the company maintained a healthy margin profile. "Our restructuring investments are yielding results and the strong improvement in International segment margins is especially encouraging," he said. Adjusted operating margin in the company's International segment increased 240 basis points in the quarter and 230 basis points for the year to date.

MSA is taking further action to reduce its cost structure in response to the recession. Mr. Vartanian indicated that the company has started executing a global restructuring program that is expected to deliver $10-15 million of cost savings in 2021. "While we're taking steps to streamline our cost structure and improve our business model through this downturn, we remain very committed to investing in our new product development pipeline to drive long term growth and enhance our market leadership positions."

"Our organization remains very well positioned and dedicated to advancing MSA's mission, which has never been more important, or more relevant. Our team remains highly engaged and we are focused on leveraging our strong balance sheet to make investments that create long term value for all MSA stakeholders," Mr. Vartanian 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,


2020


2019


2020


2019









Net sales

$

304,392



$

351,014



$

959,975



$

1,026,726


Cost of products sold

172,160



192,313



528,799



556,959


Gross profit

132,232



158,701



431,176



469,767










Selling, general and administrative

64,793



82,900



214,066



245,337


Research and development

13,851



13,520



41,723



41,482


Restructuring charges

7,603



1,850



18,475



11,203


Currency exchange losses (gains), net (a)

2,759



(913)



3,821



17,338


Product liability expense

2,077



1,730



4,878



8,155


Operating income

41,149



59,614



148,213



146,252










Interest expense

2,305



4,259



7,907



11,089


Other income, net

(1,117)



(2,929)



(4,376)



(8,850)


Total other expense, net

1,188



1,330



3,531



2,239










Income before income taxes

39,961



58,284



144,682



144,013


Provision for income taxes

11,727



15,673



36,251



37,913


Net income

28,234



42,611



108,431



106,100


Net income attributable to noncontrolling interests

(200)



(372)



(668)



(822)


Net income attributable to MSA Safety Incorporated

$

28,034



$

42,239



$

107,763



$

105,278










Earnings per share attributable to MSA Safety Incorporated common shareholders:








Basic

$

0.72



$

1.09



$

2.77



$

2.72


Diluted

$

0.71



$

1.08



$

2.74



$

2.69










Basic shares outstanding

38,906



38,649



38,853



38,617


Diluted shares outstanding

39,260



39,144



39,269



39,130



(a) Currency exchange losses for the nine months ended September 30, 2019 includes a $15.4 million non-cash charge related to the recognition of currency translation adjustments associated with the closure of MSA's South Africa affiliates.

 

MSA Safety Incorporated

Condensed Consolidated Balance Sheet (Unaudited)

(In thousands)



September 30,
2020


December 31,
2019

Assets




Cash and cash equivalents

$

132,830



$

152,195


Trade receivables, net

229,293



255,082


Inventories

252,856



185,027


Notes receivable, insurance companies

3,766



3,676


Other current assets

125,344



97,383


    Total current assets

744,089



693,363






Property, net

178,064



167,038


Prepaid pension cost

83,447



75,066


Operating lease assets, net

52,331



51,675


Goodwill

436,273



436,679


Notes receivable, insurance companies, noncurrent

48,214



52,336


Insurance receivable, noncurrent

51,419



56,169


Other noncurrent assets

198,828



207,367


   Total assets

$

1,792,665



$

1,739,693






Liabilities and shareholders' equity




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

$

20,000



$

20,000


Accounts payable

79,774



89,120


Other current liabilities

184,884



168,389


   Total current liabilities

284,658



277,509






Long-term debt, net

321,694



328,394


Pensions and other employee benefits

190,073



186,697


Noncurrent operating lease liabilities

43,639



42,632


Deferred tax liabilities

11,425



9,787


Product liability and other noncurrent liabilities

161,073



162,101


Total shareholders' equity

780,103



732,573


   Total liabilities and shareholders' equity

$

1,792,665



$

1,739,693


 

MSA Safety Incorporated

Condensed Consolidated Statement of Cash Flows (Unaudited)

(In thousands)



Three Months Ended
September 30,


Nine Months Ended
September 30,


2020


2019


2020


2019









Net income

$

28,234



$

42,611



$

108,431



$

106,100


Depreciation and amortization

9,856



9,547



29,284



28,339


Change in working capital and other operating

(10,954)



(1,453)



(27,560)



(46,189)


  Cash flow from operating activities

27,136



50,705



110,155



88,250










Capital expenditures

(12,864)



(9,998)



(32,698)



(23,523)


Acquisition, net of cash acquired







(33,196)


Change in short-term investments

(9,935)



113



(19,337)



(17,189)


Property disposals

251



42



334



123


  Cash flow used in investing activities

(22,548)



(9,843)



(51,701)



(73,785)










Change in debt

4,000



(24,127)



(5,000)



12,937


Cash dividends paid

(16,771)



(16,281)



(49,811)



(47,215)


Other financing

2,792



836



(21,332)



(6,555)


  Cash flow used in financing activities

(9,979)



(39,572)



(76,143)



(40,833)










Effect of exchange rate changes on cash,
cash equivalents and restricted cash

1,986



(4,393)



(1,668)



(5,378)










Decrease in cash, cash equivalents and restricted cash

$

(3,405)



$

(3,103)



$

(19,357)



$

(31,746)


 

MSA Safety Incorporated

Segment Information (Unaudited)

(In thousands, except percentage amounts)



Americas


International


Corporate


Consolidated

Three Months Ended September 30, 2020








Sales to external customers

$

194,303



$

110,089



$



$

304,392


Operating income







41,149


Operating margin %







13.5

%

Restructuring charges







7,603


Currency exchange losses, net







2,759


Product liability expense







2,077


Strategic transaction costs







41


Adjusted operating income (loss)

40,898



15,658



(2,927)



53,629


Adjusted operating margin %

21.0

%


14.2

%




17.6

%

Depreciation and amortization







9,856


Adjusted EBITDA

47,465



18,848



(2,828)



63,485


Adjusted EBITDA %

24.4

%


17.1

%




20.9

%









Three Months Ended September 30, 2019








Sales to external customers

$

234,624



$

116,390



$



$

351,014


Operating income







59,614


Operating margin %







17.0

%

Restructuring charges







1,850


Currency exchange gains, net







(913)


Product liability expense







1,730


Strategic transaction costs







952


Adjusted operating income (loss)

58,971



13,776



(9,514)



63,233


Adjusted operating margin %

25.1

%


11.8

%




18.0

%

Depreciation and amortization







9,547


Adjusted EBITDA

65,342



16,854



(9,416)



72,780


Adjusted EBITDA %

27.8

%


14.5

%




20.7

%

 

The Americas segment is comprised of our operations in North America and Latin America 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, product liability expense, strategic transaction costs and COVID-19 related costs, and 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.

 

MSA Safety Incorporated

Segment Information (Unaudited)

(In thousands, except percentage amounts)



Americas


International


Corporate


Consolidated

Nine Months Ended September 30, 2020








Sales to external customers

$

629,787



$

330,188



$



$

959,975


Operating income







148,213


Operating margin %







15.4

%

Restructuring charges







18,475


Currency exchange losses, net







3,821


Product liability expense







4,878


Strategic transaction costs







202


COVID-19 related costs







757


Adjusted operating income (loss)

149,708



45,719



(19,081)



176,346


Adjusted operating margin %

23.8

%


13.8

%




18.4

%

Depreciation and amortization







29,284


Adjusted EBITDA

169,343



55,075



(18,788)



205,630


Adjusted EBITDA %

26.9

%


16.7

%




21.4

%









Nine Months Ended September 30, 2019








Sales to external customers

$

679,699



$

347,027



$



$

1,026,726


Operating income







146,252


Operating margin %







14.2

%

Restructuring charges







11,203


Currency exchange losses, net







17,338


Product liability expense







8,155


Strategic transaction costs







2,937


Adjusted operating income (loss)

171,463



39,888



(25,466)



185,885


Adjusted operating margin %

25.2

%


11.5

%




18.1

%

Depreciation and amortization







28,339


Adjusted EBITDA

190,084



49,313



(25,173)



214,224


Adjusted EBITDA %

28.0

%


14.2

%




20.9

%

 

The Americas segment is comprised of our operations in North America and Latin America 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, product liability expense, strategic transaction costs and COVID-19 related costs, and 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.

 

MSA Safety Incorporated

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

Constant currency revenue growth (Unaudited)


Consolidated



Three Months Ended September 30, 2020


Breathing
Apparatus

Firefighter
Helmets
and
Protective
Apparel

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)

%

(9)

%

(22)

%

(26)

%

(8)

%

(29)

%

(16)

%


4

%


(13)

%

Plus: Currency translation effects

(1)

%

(1)

%

3

%

%

%

%

%


1

%


%

Constant currency sales change

(13)

%

(10)

%

(19)

%

(26)

%

(8)

%

(29)

%

(16)

%


5

%


(13)

%





Nine Months Ended September 30, 2020


Breathing
Apparatus

Firefighter
Helmets
and
Protective
Apparel

Industrial
Head
Protection

Portable
Gas
Detection

Fixed Gas
and Flame
Detection

Fall
Protection

Core
Sales


Non-Core
Sales


Net Sales

GAAP reported sales change

(3)

%

(10)

%

(15)

%

(20)

%

(1)

%

(24)

%

(10)

%


16

%


(7)

%

Plus: Currency translation effects

%

%

4

%

2

%

1

%

2

%

2

%


3

%


2

%

Constant currency sales change

(3)

%

(10)

%

(11)

%

(18)

%

%

(22)

%

(8)

%


19

%


(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. 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 September 30, 2020


Breathing
Apparatus

Firefighter
Helmets
and
Protective
Apparel

Industrial
Head
Protection

Portable
Gas
Detection

Fixed Gas
and Flame
Detection

Fall
Protection

Core
Sales


Non-Core
Sales


Net Sales

GAAP reported sales change

(16)

%

(6)

%

(26)

%

(31)

%

(8)

%

(43)

%

(19)

%


(2)

%


(17)

%

Plus: Currency translation effects

1

%

%

4

%

2

%

1

%

2

%

1

%


4

%


2

%

Constant currency sales change

(15)

%

(6)

%

(22)

%

(29)

%

(7)

%

(41)

%

(18)

%


2

%


(15)

%





Nine Months Ended September 30, 2020


Breathing
Apparatus

Firefighter
Helmets
and
Protective
Apparel

Industrial
Head
Protection

Portable
Gas
Detection

Fixed Gas
and Flame
Detection

Fall
Protection

Core
Sales


Non-Core
Sales


Net Sales

GAAP reported sales change

(4)

%

(7)

%

(20)

%

(23)

%

2

%

(29)

%

(11)

%


22

%


(7)

%

Plus: Currency translation effects

1

%

%

4

%

2

%

1

%

2

%

2

%


4

%


2

%

Constant currency sales change

(3)

%

(7)

%

(16)

%

(21)

%

3

%

(27)

%

(9)

%


26

%


(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. 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 September 30, 2020


Breathing
Apparatus

Firefighter
Helmets
and
Protective
Apparel

Industrial
Head
Protection

Portable
Gas
Detection

Fixed Gas
and Flame
Detection

Fall
Protection

Core
Sales


Non-Core
Sales


Net Sales

GAAP reported sales change

(6)

%

(26)

%

(8)

%

(16)

%

(7)

%

(1)

%

(9)

%


15

%


(5)

%

Plus: Currency translation effects

(3)

%

(2)

%

(2)

%

(2)

%

(3)

%

(4)

%

(3)

%


(4)

%


(4)

%

Constant currency sales change

(9)

%

(28)

%

(10)

%

(18)

%

(10)

%

(5)

%

(12)

%


11

%


(9)

%





Nine Months Ended September 30, 2020


Breathing
Apparatus

Firefighter
Helmets
and
Protective
Apparel

Industrial
Head
Protection

Portable
Gas
Detection

Fixed Gas
and Flame
Detection

Fall
Protection

Core
Sales


Non-Core
Sales


Net Sales

GAAP reported sales change

(2)

%

(24)

%

3

%

(13)

%

(4)

%

(14)

%

(7)

%


8

%


(5)

%

Plus: Currency translation effects

1

%

1

%

2

%

1

%

%

%

1

%


1

%


1

%

Constant currency sales change

(1)

%

(23)

%

5

%

(12)

%

(4)

%

(14)

%

(6)

%


9

%


(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.

 

MSA Safety Incorporated

Supplemental Segment Information (Unaudited)

Summary of constant currency revenue growth by segment and product group




Three Months Ended September 30, 2020


Consolidated


Americas


International

Fixed Gas and Flame Detection

(8)

%


(7)

%


(10)

%

Firefighter Helmets and Protective Apparel

(10)

%


(6)

%


(28)

%

Breathing Apparatus

(13)

%


(15)

%


(9)

%

Industrial Head Protection

(19)

%


(22)

%


(10)

%

Portable Gas Detection

(26)

%


(29)

%


(18)

%

Fall Protection

(29)

%


(41)

%


(5)

%

Core Sales

(16)

%


(18)

%


(12)

%







Non-Core Sales

5

%


2

%


11

%







Net Sales

(13)

%


(15)

%


(9)

%






Nine Months Ended September 30, 2020


Consolidated


Americas


International

Fixed Gas and Flame Detection

%


3

%


(4)

%

Firefighter Helmets and Protective Apparel

(10)

%


(7)

%


(23)

%

Breathing Apparatus

(3)

%


(3)

%


(1)

%

Industrial Head Protection

(11)

%


(16)

%


5

%

Portable Gas Detection

(18)

%


(21)

%


(12)

%

Fall Protection

(22)

%


(27)

%


(14)

%

Core Sales

(8)

%


(9)

%


(6)

%







Non-Core Sales

19

%


26

%


9

%







Net Sales

(5)

%


(5)

%


(4)

%

 

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,




2020


2019


%
Change


2020


2019


%
Change













Net income attributable to MSA Safety Incorporated

$

28,034



$

42,239



(34)%


$

107,763



$

105,278



2%

Non-deductible non-cash charge related to the recognition of currency translation adjustments (a)









15,359




Tax benefit associated with ASU 2016-09: Improvements to employee share-based payment accounting

(80)



(187)





(1,699)



(2,180)




Subtotal

27,954



42,052



(34)%


106,064



118,457



(10)%













Restructuring charges

7,603



1,850





18,475



11,203




Currency exchange losses (gains), net

2,759



(913)





3,821



1,979




Product liability expense

2,077



1,730





4,878



8,155




Asset related losses, net

62



38





189



271




Strategic transaction costs

41



952





202



2,937




COVID-19 related costs







757






Income tax expense on adjustments

(3,700)



(878)





(7,614)



(5,912)




Adjusted earnings

$

36,796



$

44,831



(18)%


$

126,772



$

137,090



(8)%













Adjusted earnings per diluted share

$

0.94



$

1.15



(18)%


$

3.23



$

3.50



(8)%


(a) Included in Currency exchange losses, net on the Condensed Consolidated Statement of Income.

 

Management believes that adjusted earnings and adjusted earnings per diluted share are useful measures for investors, as management uses these measures to internally assess the company's performance and ongoing operating trends. There can be no assurances that additional special items will not occur in future periods, nor that MSA's definition of adjusted earnings is consistent with that of other companies. As such, management believes that it is appropriate to consider both net income determined on a GAAP basis as well as adjusted earnings.

 

MSA Safety Incorporated

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

Debt to adjusted EBITDA / Net debt to adjusted EBITDA (Unaudited)

(In thousands)




Twelve Months Ended
September 30,



2020

Operating income


$

188,191


Depreciation and amortization


38,963


Product liability expense


23,343


Restructuring charges


21,118


Currency exchange losses, net


6,298


Strategic transaction costs


1,665


COVID-19 related costs


757


Adjusted EBITDA


$

280,335





Total end-of-period debt


341,694





Debt to adjusted EBITDA


1.2





Total end-of-period debt


341,694


Total end-of-period cash and cash equivalents


132,830


Net debt


$

208,864





Net debt to adjusted EBITDA


0.7


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:  
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, firefighter helmets and protective apparel, and fall protection devices.  With 2019 revenues of $1.4 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. 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 20, 2020. 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 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, debt to adjusted EBITDA ratio, net debt to adjusted EBITDA ratio, adjusted earnings, 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.

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SOURCE MSA Safety

Media Relations Contact: Mark Deasy (412) 559 - 8154; Investor Relations Contact: Elyse Lorenzato (412) 352 -1423

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 lifethreatening 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, firefighter helmets and protective apparel, and fall protection devices. With 2017 revenues of $1.2 billion, MSA employs approximately 4,700 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

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