Msa Safety Incorporated · NYSE:MSA
Msa Safety — Q2 2023 Earnings Presentation
21 slides from Msa Safety's earnings presentation, Aug 1, 2023
Slide 1: Q2 2023 Earnings Presentation
Q2 2023 Earnings Presentation August 1, 2023
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: MSA Safety (NYSE: MSA)
MSA Safety (NYSE: MSA) Leading Global Safety Technology Company with Proven Track Record of Value Creation Driven by Our Mission, Vision, & Values Key Statistics(1) Forefront of Safety Innovation Our Mission Steady end market demand + • That men and women may work in safety and that they, their fami
Slide 5: Q2 2023 Highlights
Q2 2023 Highlights Strong Results Fueled by MSA Business System Deployment Highlights MSA Bacharach Update • Continued strong performance in Q2 with • Leader in gas detection technologies for momentum going into 2H 2023 the HVAC-R market • MSA team executed well with 20% sales growth, • 2-year anniv
Slide 6: Recent Leadership Announcements
Recent Leadership Announcements Right Leaders in Place to Support Next Phase of MSA’s Growth Steve Blanco President and Chief Operating Officer • Joined MSA Safety in 2012 and most recently served as President, MSA Americas; under his leadership, MSA’s Americas segment profitably grew revenue by mor
Slide 7: Q2 2023 Financial Summary
Q2 2023 Financial Summary Balanced Growth Across Portfolio and Strong Operating Leverage Adjusted Operating Income & Net Sales Adjusted Diluted EPS Adjusted Operating Margin $447MM $104MM $1.83 23.2% $372MM $66MM $1.29 17.6% Q2 2022 Q2 2023 Q2 2022 Q2 2023 Q2 2022 Q2 2023 Net sales growth of 20% Adj
Slide 8: Q2 2023 Free Cash Flow and Leverage
Q2 2023 Free Cash Flow and Leverage Robust Cash Generation and Continued Leverage Progress Free Cash Flow Net Leverage $85MM 2.2x 2.0x 1.7x $4MM Q2 2022 Q2 2023 12/31/2022 Pro 3/31/2023 6/30/2023 Forma* • Strong cash flow generation enables investment in strategic initiatives • Robust balance sheet
Slide 9: 2023 Outlook
2023 Outlook Raising FY Sales Growth Outlook to Low Double Digits; Reflects Strong 1H Performance and Balanced 2H Outlook Product Category % Net Sales(1) Key End Markets Operating Environment Update Firefighter Safety Positives • SCBA • Continued strength in organic growth 38% • Helmets • Fire servi
Slide 10: Key Takeaways
Key Takeaways Well Positioned to Deliver Profitable Growth on a Sustained Basis Strong first half execution; entering back half with positive momentum and healthy backlog Mission-driven culture and unwavering commitment to the safety of our customers and our employees Reliable, diversified base busi
Slide 11: Q&A
Q&A Q2 2023 Earnings Results | 11
Slide 12: Appendix
Appendix MSA The Safety Company One Mission. One Passion. One Purpose.
Slide 13: Reconciliation of Non-GAAP Financial Measures
Reconciliation of Non-GAAP Financial Measures Constant Currency Sales Growth (Unaudited) – Consolidated Three Months Ended June 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 Protection S
Slide 14: Reconciliation of Non-GAAP Financial Measures
Reconciliation of Non-GAAP Financial Measures Constant Currency Sales Growth (Unaudited) – Americas Segment Three Months Ended June 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 Protecti
Slide 15: Reconciliation of Non-GAAP Financial Measures
Reconciliation of Non-GAAP Financial Measures Constant Currency Sales Growth (Unaudited) – International Segment Three Months Ended June 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 Pro
Slide 16: Reconciliation of Non-GAAP Financial Measures
Reconciliation of Non-GAAP Financial Measures Segment Information (Unaudited) (In thousands, except percentage amounts) Am ericas International Corporate Consolidated Three Months Ended June 30, 2023 Net sales to external customers $ 308,378 $ 138,921 $ - $ 447,299 Operating income 95,008 Operating
Slide 17: Reconciliation of Non-GAAP Financial Measures
Reconciliation of Non-GAAP Financial Measures Segment Information (Unaudited) (In thousands, except percentage amounts) Am ericas International Corporate Consolidated Six Months Ended June 30, 2023 Net sales to external customers $ 588,645 $ 256,916 $ - $ 845,561 Operating income 34,947 Operating ma
Slide 18: Reconciliation of Non-GAAP Financial Measures
Reconciliation of Non-GAAP Financial Measures Adjusted Earnings and Adjusted Earnings per Diluted Share (Unaudited) (In thousands, except per share amounts) Three Months Ended June 30, Six Months Ended June 30, 2023 2022 % Change 2023 2022 % Change Net income (loss) $ 67,090 $ 47,693 41% $ (83,083)
Slide 19: Reconciliation of Non-GAAP Financial Measures
Reconciliation of Non-GAAP Financial Measures Free Cash Flow (Unaudited) Three Months Ended (In thousands, except percentage amounts) June 30, 2023 2022 Cash flow from operating activities $ 95,068 $ 15,453 Capital expenditures (9,920) (11,829) Free cash flow $ 85,148 $ 3,624 Adjusted earnings 72,13
Slide 20: Reconciliation of Non-GAAP Financial Measures
Reconciliation of Non-GAAP Financial Measures Debt to Adjusted EBITDA and Net Debt to Adjusted EBITDA (Unaudited) Twelve Months Ended (In thousands) June 30, 2023 Operating income $ 169,880 Loss on divestiture of MSA LLC 129,211 Depreciation and amortization 48,531 Product liability expense 14,895 R
Slide 21: Reconciliation of Non-GAAP Financial Measures
Reconciliation of Non-GAAP Financial Measures R&D Investment (Unaudited) Trailing Twelve Months Twelve Months Ended (In thousands) Six Months Ended June 30, Ended June 30, December 31, 2023 2022 2023 2022 Research and development expense $ 31,224 $ 28,601 $ 59,635 $ 57,012 Capitalized software devel