Msa Safety Incorporated · NYSE:MSA
Msa Safety — Q3 2023 Earnings Presentation
20 slides from Msa Safety's earnings presentation, Oct 25, 2023
Slide 1: Q3 2023 Earnings Presentation
Q3 2023 Earnings Presentation October 25, 2023 Q3 2023 Earnings Results | 1
Slide 2: Cautionary Statements Regarding Forward-looking Statements
Cautionary Statements Regarding Forward-looking Statements This presentation may contain (and verbal statements made by MSA® Safety Incorporated (“MSA Safety”) may contain) “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. These statements relat
Slide 3: Non-GAAP Financials
Non-GAAP Financials To supplement our Consolidated Financial Statements presented in accordance with generally accepted accounting principles (“GAAP”), we use, and this presentation includes, certain non-GAAP financial measures. These financial measures include constant currency revenue growth, adju
Slide 4: Q3 2023 Strategic Highlights
Q3 2023 Strategic Highlights Generating Sustainable Growth and Impact LIVING OUR PURPOSE SUPPORTING SAFE COMMUNITIES 2022 IMPACT REPORT PROTECTING FIREFIGHTERS AROUND THE WORLD • Creating shared value for stakeholders through our Impact Pillars: • MSA’s Chatillon-sur-Chalaronne, France, manufacturin
Slide 5: Q3 2023 Performance Highlights
Q3 2023 Performance Highlights Broad-Based Strength Across Our Global Business HIGHLIGHTS MULTI-INDUSTRY DETECTION SOLUTIONS • Strong execution driven by the MSA Business System Connected instrumentation leveraging proprietary technologies to protect OVERVIEW workers, critical infrastructure and the
Slide 6: Q3 2023 Financial Summary
Q3 2023 Financial Summary Continued Growth Across Portfolio and Strong Operating Leverage ADJUSTED OPERATING INCOME & NET REVENUE ADJUSTED DILUTED EPS ADJUSTED OPERATING MARGIN $447MM $1.78 $101MM $382MM $1.45 $75MM 22.7% 19.7% Q3 2022 Q3 2023 Q3 2022 Q3 2023 Q3 2022 Q3 2023 NET REVENUE GROWTH OF 17
Slide 7: Q3 2023 Free Cash Flow and Financial Leverage
Q3 2023 Free Cash Flow and Financial Leverage Robust Cash Generation and Continued Leverage Progress FREE CASH FLOW NET LEVERAGE $112MM 2.0x 1.7x 1.3x $55MM Q3 2022 Q3 2023 3/31/2023 6/30/2023 9/30/2023 • Strong cash flow generation enables investment in strategic initiatives • Robust balance sheet
Slide 8: 2023 Outlook
2023 Outlook Raising Full Year Sales Growth Outlook to Mid-Teens Reflects Strong YTD Performance and Balanced Outlook % NET SALES(1) KEY END MARKETS OPERATING ENVIRONMENT UPDATE POSITIVES FIREFIGHTER SAFETY • Continued strength in organic growth • SCBA • Helmets 37% • Fire service and first responde
Slide 9: Key Takeaways
Key Takeaways Well Positioned to Deliver Profitable Growth on a Sustained Basis Strong execution YTD resulting in double-digit growth, healthy margin expansion and robust cash generation Mission-driven culture and unwavering commitment to the safety of our customers and our employees Reliable, diver
Slide 10: Q&A
Q&A MSA The Safety Company One Mission. One Passion. One Purpose.
Slide 11: Appendix
Appendix MSA The Safety Company One Mission. One Passion. One Purpose.
Slide 12: Reconciliation of Non-GAAP Financial Measures: Constant Currency Sales Growth – Consolidated
Reconciliation of Non-GAAP Financial Measures Constant Currency Sales Growth (Unaudited) – Consolidated Three Months Ended Septem ber 30, 2023 Firefighter Fixed Gas Industrial Breathing Helm ets and Portable Gas Fall Non-Core and Flam e Head Core Sales Net Sales Apparatus Protective Detection Protec
Slide 13: Reconciliation of Non-GAAP Financial Measures: Constant Currency Sales Growth – Americas
Reconciliation of Non-GAAP Financial Measures Constant Currency Sales Growth (Unaudited) – Americas Segment Three Months Ended Septem ber 30, 2023 Firefighter Fixed Gas Industrial Breathing Helm ets and Portable Gas Fall Non-Core and Flam e Head Core Sales Net Sales Apparatus Protective Detection Pr
Slide 14: Reconciliation of Non-GAAP Financial Measures: Constant Currency Sales Growth – International
Reconciliation of Non-GAAP Financial Measures Constant Currency Sales Growth (Unaudited) – International Segment Three Months Ended Septem ber 30, 2023 Firefighter Fixed Gas Industrial Breathing Helm ets and Portable Gas Fall Non-Core and Flam e Head Core Sales Net Sales Apparatus Protective Detecti
Slide 15: Reconciliation of Non-GAAP Financial Measures: Segment Information
Reconciliation of Non-GAAP Financial Measures Segment Information (Unaudited) (In thousands, except percentage amounts) Am ericas International Corporate Consolidated Three Months Ended Septem ber 30, 2023 Net sales to external customers $ 314,273 $ 132,455 $ - $ 446,728 Operating income 94,123 Oper
Slide 16: Reconciliation of Non-GAAP Financial Measures: Segment Information
Reconciliation of Non-GAAP Financial Measures Segment Information (Unaudited) (In thousands, except percentage amounts) Am ericas International Corporate Consolidated Nine Months Ended Septem ber 30, 2023 Net sales to external customers $ 902,918 $ 389,372 $ - $ 1,292,290 Operating income 129,070 Op
Slide 17: Adjusted Earnings and Adjusted Earnings per Diluted Share
Reconciliation of Non-GAAP Financial Measures Adjusted Earnings and Adjusted Earnings per Diluted Share (Unaudited) (In thousands, except per share amounts) Three Months Ended September 30, Nine Months Ended September 30, 2023 2022 % Change 2023 2022 % Change Net income (loss) $ 65,256 $ 44,906 45%
Slide 18: Free Cash Flow Reconciliation
Reconciliation of Non-GAAP Financial Measures Free Cash Flow (Unaudited) Three Months Ended Nine Months Ended (In thousands, except percentage amounts) September 30, September 30, 2023 2022 2023 2022 Cash flow from (used in) operating activities $ 124,784 $ 63,927 $ (66,057) $ 103,903 Contribution f
Slide 19: Debt to Adjusted EBITDA and Net Debt to Adjusted EBITDA
Reconciliation of Non-GAAP Financial Measures Debt to Adjusted EBITDA and Net Debt to Adjusted EBITDA (Unaudited) Twelve Months Ended (In thousands) September 30, 2023 Operating income $ 199,690 Loss on divestiture of MSA LLC 129,211 Depreciation and amortization 50,178 Product liability expense 10,
Slide 20: R&D Investment Reconciliation
Reconciliation of Non-GAAP Financial Measures R&D Investment (Unaudited) Trailing Twelve Months Twelve Months Ended (In thousands) Nine Months Ended September 30, Ended September 30, December 31, 2023 2022 2023 2022 Research and development expense $ 48,906 $ 43,017 $ 62,901 $ 57,012 Capitalized sof