MSA Safety Announces Second Quarter Results

|Jul 29|magazine58 min read

PITTSBURGH, July 29, 2020 /PRNewswire/ -- Global safety equipment manufacturer MSA Safety Incorporated (NYSE: MSA) today reported results for the second quarter of 2020.

Quarterly Highlights

  • Revenue was $314 million, decreasing 10 percent from a year ago on a reported basis and 8 percent on a constant currency basis.
  • GAAP operating income was $48 million or 15.4 percent of sales, compared to $54 million or 15.6 percent of sales in the same period a year ago. Adjusted operating income was $59 million or 18.7 percent of sales, compared to $64 million or 18.4 percent of sales in the same period a year ago.
  • GAAP earnings were $36 million or $0.92 per diluted share, compared to $40 million or $1.01 per diluted share in the same period a year ago. Adjusted earnings were $44 million or $1.11 per diluted share, compared to $48 million or $1.22 per diluted share in the same period a year ago. Adjusted earnings include $0.03 per share of headwind from higher noncash pension expense, in line with the company's expectations.
  • Operating cash flow was $69 million, nearly doubling from a year ago on strong working capital management and lower product liability payments. MSA paid down $37 million of debt, funded $17 million of dividends, and invested $13 million in capital expenditures in the quarter.
  • MSA's debt balance was $335 million at quarter end, reflecting 1.2x adjusted EBITDA on a gross basis or 0.7x adjusted EBITDA on a net basis. With more than $136 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

"Our second quarter results reflect strong execution and a resilient business model in a challenging environment," said Nish Vartanian, MSA Chairman, President and CEO.  "Our diversified portfolio and continued focus on productivity yielded adjusted operating margin expansion of 30 basis points. It's particularly noteworthy that we achieved this level of margin performance on lighter sales volume," he said. Mr. Vartanian added that in addition to lower discretionary costs, strategic growth and profitability improvement programs supported the strong performance. "The returns from our investments in our respirator manufacturing capabilities, combined with solid execution of our International segment margin improvement programs, were clear highlights of the quarter."

The company's quarterly results include 63 percent revenue growth in air-purifying respirators. "In response to the global shortage of personal protective equipment, we have started to make investments to ramp up and modernize our manufacturing operations associated with the air-purifying respirator side of our business," Mr. Vartanian explained.  "These investments will help us improve lead times for our existing industrial and first responder customers, while positioning MSA to respond to potential growth opportunities."  He added that the company's unwavering mission of protecting people at work, in an ongoing pandemic environment, is more relevant than ever before.

In MSA's International segment, profitability improvement programs helped drive adjusted operating margin expansion of 310 basis points in the quarter and 240 basis points for the year to date. "Our focus on price realization across MSA International is supporting gross profit improvements, and previously executed restructuring programs are enabling operating expense leverage," said Mr. Vartanian.

Mr. Vartanian noted that business conditions remain challenging and a number of external factors could impact how the second half of 2020 unfolds for the company.  "While we expect a tough environment in the near term, we continue to focus on leveraging our diversified portfolio, controlling discretionary costs, and investing in long-term growth and productivity programs that will position MSA to emerge from this downturn as an even stronger organization," he concluded.

MSA Safety Incorporated

Condensed Consolidated Statement of Income (Unaudited)

(In thousands, except per share amounts)



Three Months Ended
June 30,


Six Months Ended
June 30,


2020


2019


2020


2019









Net sales

$

314,438



$

349,675



$

655,583



$

675,713


Cost of products sold

172,841



188,591



356,627



364,647


Gross profit

141,597



161,084



298,956



311,066










Selling, general and administrative

69,034



84,009



149,271



162,437


Research and development

13,760



14,256



27,872



27,962


Restructuring charges

8,865



3,522



10,872



9,353


Currency exchange losses, net (a)

793



1,290



1,063



18,251


Product liability expense

851



3,529



2,802



6,425


Operating income

48,294



54,478



107,076



86,638










Interest expense

2,459



4,470



5,602



6,830


Other income, net

(2,000)



(3,342)



(3,258)



(5,921)


Total other expense, net

459



1,128


2,344



909









Income before income taxes

47,835



53,350



104,732



85,729


Provision for income taxes

11,429



13,238



24,523



22,241


Net income

36,406



40,112



80,209



63,488


Net income attributable to noncontrolling interests

(340)



(306)



(468)



(450)


Net income attributable to MSA Safety Incorporated

$

36,066



$

39,806



$

79,741



$

63,038










Earnings per share attributable to MSA Safety Incorporated common shareholders:








Basic

$

0.93



$

1.03



$

2.05



$

1.63


Diluted

$

0.92



$

1.01



$

2.03



$

1.61










Basic shares outstanding

38,830



38,663



38,826



38,602


Diluted shares outstanding

39,195



39,160



39,273



39,124



(a) currency exchange losses for the six months ended June 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)



June 30, 2020


December 31, 2019

Assets




Cash and cash equivalents

$

136,238



$

152,195


Trade receivables, net

240,137



255,082


Inventories

225,410



185,027


Notes receivable, insurance companies

3,736



3,676


Other current assets

116,029



97,383


    Total current assets

721,550



693,363






Property, net

170,184



167,038


Operating lease assets, net

47,106



51,675


Prepaid pension cost

80,775



75,066


Goodwill

430,671



436,679


Notes receivable, insurance companies, noncurrent

52,988



52,336


Insurance receivable, noncurrent

51,033



56,169


Other noncurrent assets

198,628



207,367


   Total assets

$

1,752,935



$

1,739,693






Liabilities and shareholders' equity




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

$

20,000



$

20,000


Accounts payable

96,513



89,120


Other current liabilities

176,845



168,389


   Total current liabilities

293,358



277,509






Long-term debt, net

314,500



328,394


Pensions and other employee benefits

185,464



186,697


Noncurrent operating lease liabilities

38,826



42,632


Deferred tax liabilities

10,533



9,787


Product liability and other noncurrent liabilities

161,600



162,101


Total shareholders' equity

748,654



732,573


   Total liabilities and shareholders' equity

$

1,752,935



$

1,739,693


 

MSA Safety Incorporated

Condensed Consolidated Statement of Cash Flows (Unaudited)

(In thousands)



Three Months Ended
June 30,


Six Months Ended
June 30,


2020


2019


2020


2019









Net income

$

36,406



$

40,112



$

80,209



$

63,488


Depreciation and amortization

9,786



9,466



19,428



18,792


Change in working capital and other operating

23,232



(13,250)



(16,606)



(44,735)


  Cash flow from operating activities

69,424



36,328



83,031



37,545










Capital expenditures

(13,272)



(8,628)



(19,834)



(13,525)


Acquisition, net of cash acquired



(33,196)





(33,196)


Change in short-term investments

10,210



1,639



(9,402)



(17,302)


Property disposals and other investing

(9)



69



83



81


  Cash flow used in investing activities

(3,071)



(40,116)



(29,153)



(63,942)










Change in debt

(37,000)



22,973



(9,000)



37,064


Cash dividends paid

(16,721)



(16,282)



(33,052)



(30,934)


Other financing

873



(1,410)



(24,124)



(7,391)


  Cash flow (used in) from financing activities

(52,848)



5,281



(66,176)



(1,261)










Effect of exchange rate changes on cash,

cash equivalents and restricted cash

102



2,236



(3,654)



(985)










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

$

13,607



$

3,729



$

(15,952)



$

(28,643)


 

MSA Safety Incorporated

Segment Information (Unaudited)

(In thousands, except percentage amounts)



Americas


International


Corporate


Consolidated

Three Months Ended June 30, 2020








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


Strategic transaction 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

%









Three Months Ended June 30, 2019








Sales to external customers

$

231,389



$

118,286



$



$

349,675


Operating income







54,478


Operating margin %







15.6

%

Restructuring charges







3,522


Currency exchange losses, net







1,290


Product liability expense







3,529


Strategic transaction costs







1,529


Adjusted operating income (loss)

57,689



15,072



(8,413)



64,348


Adjusted operating margin %

24.9

%


12.7

%




18.4

%

Depreciation and amortization







9,466


Adjusted EBITDA

63,842



18,288



(8,316)



73,814


Adjusted EBITDA %

27.6

%


15.5

%




21.1

%

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, and strategic transaction 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

Six Months Ended June 30, 2020








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


Strategic transaction 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

%









Six Months Ended June 30, 2019








Sales to external customers

$

445,076



$

230,637



$



$

675,713


Operating income







86,638


Operating margin %







12.8

%

Restructuring charges







9,353


Currency exchange losses, net







18,251


Product liability expense







6,425


Strategic transaction costs







1,985


Adjusted operating income (loss)

112,492



26,112



(15,952)



122,652


Adjusted operating margin %

25.3

%


11.3

%




18.2

%

Depreciation and amortization







18,792


Adjusted EBITDA

124,742



32,459



(15,757)



141,444


Adjusted EBITDA %

28.0

%


14.1

%




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 June 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

1

%

(17)

%

(21)

%

(33)

%

(7)

%

(32)

%

(15)

%


22

%


(10)

%

Plus: Currency translation effects

2

%

%

5

%

2

%

1

%

3

%

2

%


5

%


2

%

Constant currency sales change

3

%

(17)

%

(16)

%

(31)

%

(6)

%

(29)

%

(13)

%


27

%


(8)

%




Six Months Ended June 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

1

%

(10)

%

(12)

%

(16)

%

4

%

(21)

%

(6)

%


22

%


(3)

%

Plus: Currency translation effects

1

%

%

5

%

2

%

1

%

3

%

1

%


5

%


2

%

Constant currency sales change

2

%

(10)

%

(7)

%

(14)

%

5

%

(18)

%

(5)

%


27

%


(1)

%


        * Non-Core Sales include Air-Purifying Respirators.

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, 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

(1)

%

(14)

%

(33)

%

(40)

%

(6)

%

(39)

%

(18)

%


37

%


(12)

%

Plus: Currency translation effects

1

%

%

6

%

3

%

1

%

3

%

2

%


6

%


2

%

Constant currency sales change

%

(14)

%

(27)

%

(37)

%

(5)

%

(36)

%

(16)

%


43

%


(10)

%




Six Months Ended June 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

1

%

(7)

%

(18)

%

(19)

%

8

%

(21)

%

(7)

%


35

%


(2)

%

Plus: Currency translation effects

1

%

%

5

%

2

%

1

%

3

%

2

%


5

%


2

%

Constant currency sales change

2

%

(7)

%

(13)

%

(17)

%

9

%

(18)

%

(5)

%


40

%


%


        * Non-Core Sales include Air-Purifying Respirators.

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, 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

5

%

(32)

%

19

%

(19)

%

(8)

%

(20)

%

(8)

%


%


(7)

%

Plus: Currency translation effects

3

%

1

%

4

%

2

%

2

%

3

%

2

%


3

%


3

%

Constant currency sales change

8

%

(31)

%

23

%

(17)

%

(6)

%

(17)

%

(6)

%


3

%


(4)

%




Six Months Ended June 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

%

(23)

%

9

%

(11)

%

(2)

%

(20)

%

(6)

%


5

%


(5)

%

Plus: Currency translation effects

3

%

2

%

4

%

3

%

2

%

2

%

2

%


3

%


3

%

Constant currency sales change

3

%

(21)

%

13

%

(8)

%

%

(18)

%

(4)

%


8

%


(2)

%


        * Non-Core Sales include Air-Purifying Respirators.

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, 2020


Consolidated


Americas


International

Breathing Apparatus

3

%


%


8

%

Fixed Gas and Flame Detection

(6)

%


(5)

%


(6)

%

Industrial Head Protection

(16)

%


(27)

%


23

%

Firefighter Helmets and Protective Apparel

(17)

%


(14)

%


(31)

%

Fall Protection

(29)

%


(36)

%


(17)

%

Portable Gas Detection

(31)

%


(37)

%


(17)

%

Core Sales

(13)

%


(16)

%


(6)

%







Non-Core Sales *

27

%


43

%


3

%







Net Sales

(8)

%


(10)

%


(4)

%






Six Months Ended June 30, 2020


Consolidated


Americas


International

Breathing Apparatus

2

%


2

%


3

%

Fixed Gas and Flame Detection

5

%


9

%


%

Industrial Head Protection

(7)

%


(13)

%


13

%

Firefighter Helmets and Protective Apparel

(10)

%


(7)

%


(21)

%

Fall Protection

(18)

%


(18)

%


(18)

%

Portable Gas Detection

(14)

%


(17)

%


(8)

%

Core Sales

(5)

%


(5)

%


(4)

%







Non-Core Sales *

27

%


40

%


8

%







Net Sales

(1)

%


%


(2)

%


   * Non-Core Sales include Air-Purifying Respirators.

 

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,




2020


2019


%
Change


2020


2019


%
Change













Net income attributable to MSA Safety Incorporated

$

36,066



$

39,806



(9)%


$

79,741



$

63,038



26%

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









15,359




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

(348)



429





(1,619)



(1,993)




Subtotal

35,718



40,235



(11)%


78,122



76,404



2%













Restructuring charges

8,865



3,522





10,872



9,353




Product liability expense

851



3,529





2,802



6,425




Currency exchange losses, net

793



1,290





1,063



2,892




Strategic transaction costs

64



1,529





161



1,985




Asset related losses, net

5



208





127



233




COVID-19 related costs







757






Income tax expense on adjustments

(2,613)



(2,439)





(3,914)



(5,034)




Adjusted earnings

$

43,683



$

47,874



(9)%


$

89,990



$

92,258



(2)%













Adjusted earnings per diluted share

$

1.11



$

1.22



(9)%


$

2.29



$

2.36



(3)%


(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
June 30,



2020

Operating income


$

206,668


Depreciation and amortization


38,654


Product liability expense


22,996


Restructuring charges


15,365


Currency exchange losses, net


2,626


Strategic transaction costs


2,576


COVID-19 related costs


757


Adjusted EBITDA


$

289,642





Total end-of-period debt


334,500





Debt to adjusted EBITDA


1.2





Total end-of-period debt


334,500


Total end-of-period cash and cash equivalents


136,238


Net debt


$

198,262





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.

Cision View original content to download multimedia:http://www.prnewswire.com/news-releases/msa-safety-announces-second-quarter-results-301102510.html

SOURCE MSA Safety