MSA Safety Announces Third Quarter Results
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
"It was a tough July and August from a demand perspective, particularly in the energy and commercial construction markets in the
MSA is taking further action to reduce its cost structure in response to the recession.
"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,"
Condensed Consolidated Statement of Income (Unaudited) (In thousands, except per share amounts) |
|||||||||||||||
Three Months Ended |
Nine Months Ended |
||||||||||||||
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 |
$ |
28,034 |
$ |
42,239 |
$ |
107,763 |
$ |
105,278 |
|||||||
Earnings per share attributable to |
|||||||||||||||
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 |
Condensed Consolidated Balance Sheet (Unaudited) (In thousands) |
|||||||
|
|
||||||
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 |
|||||
|
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 |
Condensed Consolidated Statement of Cash Flows (Unaudited) (In thousands) |
|||||||||||||||
Three Months Ended |
Nine Months Ended |
||||||||||||||
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, |
1,986 |
(4,393) |
(1,668) |
(5,378) |
|||||||||||
Decrease in cash, cash equivalents and restricted cash |
$ |
(3,405) |
$ |
(3,103) |
$ |
(19,357) |
$ |
(31,746) |
Segment Information (Unaudited) (In thousands, except percentage amounts) |
|||||||||||||||
|
International |
Corporate |
Consolidated |
||||||||||||
Three Months Ended |
|||||||||||||||
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 |
|||||||||||||||
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
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.
Segment Information (Unaudited) (In thousands, except percentage amounts) |
|||||||||||||||
|
International |
Corporate |
Consolidated |
||||||||||||
Nine Months Ended |
|||||||||||||||
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 |
|||||||||||||||
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
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.
Reconciliation of As Reported Financial Measures to Non-GAAP Financial Measures Constant currency revenue growth (Unaudited) |
||||||||||||||||||||
Consolidated |
||||||||||||||||||||
Three Months Ended |
||||||||||||||||||||
Breathing |
Firefighter |
Industrial |
Portable |
|
Fall |
Core |
Non-Core |
|
||||||||||||
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 |
||||||||||||||||||||
Breathing |
Firefighter |
Industrial |
Portable |
|
Fall |
Core |
Non-Core |
|
||||||||||||
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.
Reconciliation of As Reported Financial Measures to Non-GAAP Financial Measures Constant currency revenue growth (Unaudited) |
||||||||||||||||||||
Americas Segment |
||||||||||||||||||||
Three Months Ended |
||||||||||||||||||||
Breathing |
Firefighter |
Industrial |
Portable |
|
Fall |
Core |
Non-Core |
|
||||||||||||
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 |
||||||||||||||||||||
Breathing |
Firefighter |
Industrial |
Portable |
|
Fall |
Core |
Non-Core |
|
||||||||||||
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.
Reconciliation of As Reported Financial Measures to Non-GAAP Financial Measures Constant currency revenue growth (Unaudited) |
||||||||||||||||||||
International Segment |
||||||||||||||||||||
Three Months Ended |
||||||||||||||||||||
Breathing |
Firefighter |
Industrial |
Portable |
|
Fall |
Core |
Non-Core |
|
||||||||||||
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 |
||||||||||||||||||||
Breathing |
Firefighter |
Industrial |
Portable |
|
Fall |
Core |
Non-Core |
|
||||||||||||
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.
Supplemental Segment Information (Unaudited) Summary of constant currency revenue growth by segment and product group |
||||||||
Three Months Ended |
||||||||
Consolidated |
|
International |
||||||
|
(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 |
% |
||
|
(13) |
% |
(15) |
% |
(9) |
% |
||
Nine Months Ended |
||||||||
Consolidated |
|
International |
||||||
|
— |
% |
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 |
% |
||
|
(5) |
% |
(5) |
% |
(4) |
% |
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 |
Nine Months Ended |
||||||||||||||||||
2020 |
2019 |
% |
2020 |
2019 |
% |
||||||||||||||
Net income attributable to |
$ |
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.
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 |
||||
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,
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, 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
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Media Relations Contact: Mark Deasy (412) 559 - 8154; Investor Relations Contact: Elyse Lorenzato (412) 352 -1423