Msa Safety Incorporated · NYSE:MSA
Msa Safety — Q1 2024 Earnings Presentation
18 slides from Msa Safety's earnings presentation, Apr 30, 2024
Slide 1: Q1 2024 Earnings Presentation
Q1 2024 Earnings Presentation April 30, 2024 Q1 2024 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: MSA Safety (NYSE: MSA) Snapshot
MSA Safety (NYSE: MSA) Snapshot Leading Global Safety Technology Company with Proven Track Record of Value Creation DRIVEN BY OUR PURPOSE KEY STATISTICS(1) FOREFRONT OF SAFETY INNOVATION Our Mission Steady end market demand, with 1 resilient organic growth and extensive • That men and women may work
Slide 5: First Quarter Highlights
First Quarter Highlights Solid Start to 2024; Innovation and Execution Enabling Profitable Growth PERFORMANCE HIGHLIGHTS NEW PRODUCT SPOTLIGHT • Delivered 4% sales growth and 18% adjusted Cairns® 1836 Fire Helmet EPS growth • Celebrating Cairns’ founding in 1836 with one of the lightest – Double-dig
Slide 6: Q1 2024 Financial Summary
Q1 2024 Financial Summary Healthy Results to Begin 2024 with Continuing Momentum from Strong 2023 Performance ADJUSTED OPERATING INCOME NET SALES ADJUSTED EPS AND MARGIN $1.61 $413MM $88MM $398MM 21.3% $77MM $1.36 19.4% Q1 2023 Q1 2024 Q1 2023 Q1 2024 Q1 2023 Q1 2024 NET SALES GROWTH OF 4% ADJUSTED
Slide 7: Q1 2024 Free Cash Flow and Financial Leverage
Q1 2024 Free Cash Flow and Financial Leverage Solid Cash Generation and Strong Financial Position FREE CASH FLOW NET LEVERAGE 2.2x $52MM $40MM 1.0x 1.0x Adj. Q1 2023⁽¹⁾ Q1 2024 12/31/2022 Pro Forma* 12/31/2023 3/31/2024 • Solid cash flow generation enables investment in strategic growth • Robust bal
Slide 8: Updated 2024 Outlook
Updated 2024 Outlook Re-affirming Mid-Single Digit Growth Outlook; Reflecting Solid Start to 2024 and Resilient Portfolio of Products and Markets % NET SALES(1) DIVERSE END MARKETS OPERATING ENVIRONMENT UPDATE POSITIVES FIREFIGHTER SAFETY • Government fire service • Growing global demand for safety
Slide 9: Key Takeaways
Key Takeaways Focused on Delivering Profitable Growth and Value Creation Over the Long-Term Strong execution in Q1 resulting in mid single- digit growth, robust margin expansion, and solid cash generation Mission-driven culture and unwavering commitment to the safety of our customers and our employe
Slide 10: Q&A
Q&A Q1 2024 Earnings Results | 10
Slide 11: Investor Day 2024
INVESTOR DAY 2024 Wednesday, May 22nd | NYC | REGISTRATION DETAILS ON IR WEBSITE FEATURING SESSIONS ON: Our commitment to safety | Innovation and new product development | Long-term strategy | Financial performance and outlook Q1 2024 Earnings Results | 11
Slide 12: Appendix
Appendix Q1 2024 Earnings Results | 12
Slide 13: Reconciliation of Non-GAAP Financial Measures
Reconciliation of Non-GAAP Financial Measures Constant Currency Sales Growth (Unaudited) Consolidated Three Months Ended March 31, 2024 Industrial Firefighter Detection (b) PPE and Net Sales Safety(a) Other (c) GAAP reported sales change 17% (5%) (2%) 4% Plus: Currency translation effects —% —% (1%)
Slide 14: 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 March 31, 2024 Net sales to external customers $ 295,539 $ 117,763 $ - $ 413,302 Operating income 80,112 Operating
Slide 15: 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 March 31, 2024 2023 % Change Net income (loss) attributable to MSA Safety Incorporated $ 58,139 $ (150,173) n/m* Loss on div
Slide 16: Reconciliation of Non-GAAP Financial Measures
Reconciliation of Non-GAAP Financial Measures Free Cash Flow (Unaudited) Three Months Ended (In thousands, except percentage amounts) March 31, 2024 2023 Cash flow from (used in) operating activities $ 50,886 $ (285,909) Contribution on divestiture of MSA LLC — 341,186 Product liability payments rel
Slide 17: 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) March 31, 2024 Operating income $ 371,493 Depreciation and amortization 52,505 Restructuring charges 11,162 Currency exchange losses, net 15,237 Amorti
Slide 18: Reconciliation of Non-GAAP Financial Measures
Reconciliation of Non-GAAP Financial Measures R&D Investment (Unaudited) Trailing Twelve Months Twelve Months Ended (In thousands) Three Months Ended March 31, Ended March 31, December 31, 2024 2023 2024 2023 Research and development expense $ 15,919 $ 15,232 $ 68,675 $ 67,988 Capitalized software d