Msa Safety Incorporated · NYSE:MSA
Msa Safety — Q3 2024 Earnings Presentation
27 slides from Msa Safety's earnings presentation, Oct 24, 2024
Slide 1: Third Quarter 2024 Earnings Presentation
Third Quarter 2024 Earnings Presentation October 24, 2024 3Q 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 sales change, adjust
Slide 4: Resilient Operating Results Underpinned by MSA Business System
Third Quarter 2024 Resilient Operating Results Underpinned by MSA Business System DRIVEN BY OUR PURPOSE BUSINESS HIGHLIGHTS OUR MISSION • Delivered solid operating results against backdrop of That men and women may work in safety and dynamic environment, enabled by MSA Business System that they, the
Slide 5: Mission-Driven Innovation
Mission-Driven Innovation Creating Impact and Value for Customers Through Singular Mission of Safety THIRD QUARTER INNOVATION SPOTLIGHT LIVING OUR MISSION Connected solutions saving lives • Large customer trial of the Altair ioTM 4 connected, portable gas detector resulted in life saving detection o
Slide 6: 3Q 2024 Financial Summary
3Q 2024 Financial Summary Resilient Profitability Amid Dynamic Operating Environment Net Sales Adjusted Operating Adjusted EPS $447MM Income and Margin $433MM $1.83 $101MM $98MM $1.78 22.7% 22.6% 3Q 2023 3Q 2024 3Q 2023 3Q 2024 3Q 2023 3Q 2024 3% NET SALES CONTRACTION 22.6% ADJUSTED OPERATING MARGIN
Slide 7: 3Q 2024 Free Cash Flow and Financial Leverage
3Q 2024 Free Cash Flow and Financial Leverage Strong Financial Position Enables Balanced Capital Allocation Free Cash Flow Net Leverage $112MM 1.0x 0.9x 0.9x $70MM 3Q 2023 3Q 2024 3/31/2024 6/30/2024 9/30/2024 CASH FLOW GENERATION AND CAPITAL ALLOCATION ROBUST BALANCE SHEET WITH 0.9X NET LEVERAGE •
Slide 8: 2024 Outlook
2024 Outlook MSD Growth in Fourth Quarter; Updating Full-Year Growth Outlook to LSD Balancing Strong Order Pace and Backlog Conversion with Dynamic Operating Environment % NET SALES(1) DIVERSE END MARKETS OPERATING ENVIRONMENT UPDATE POSITIVES FIRE SERVICE • Government fire service + Healthy order p
Slide 9: A Leader in Industrial Safety Technology
A Leader in Industrial Safety Technology 1 2 3 4 5 Solid execution Mission-driven Reliable, Reinvestment in Strong balance in 3Q resulting culture and diversified base innovation and sheet supports in resilient unwavering business drives technology, growth profitability, strong commitment to organic
Slide 10: Q&A
Q&A Q1 2024 Earnings Results | 10
Slide 11: Appendix
Appendix Q1 2024 Earnings Results | 11
Slide 12: MSA Safety (NYSE: MSA) Snapshot
MSA Safety (NYSE: MSA) Snapshot Driven by Our Purpose Key Statistics(1) Forefront of Safety Innovation OUR MISSION Steady end market demand, That men and women may work in safety and that $1.8B 47.9% 1 with resilient organic growth and extensive installed base they, their families, and their communi
Slide 13: MSA Safety | Diverse End Markets
MSA Safety | Diverse End Markets Fire Service Energy Utilities Construction Food & Beverage 40+ Million Workers Protected1 Industrial Government Water Transportation Mining PROTECTING WORKERS AROUND THE WORLD ACROSS WIDE VARIETY OF END MARKETS (1) As of December 31, 2023. “Workers Protected” is an e
Slide 14: MSA Safety | Product Categories and Markets
MSA Safety | Product Categories and Markets DETECTION FIRE SERVICE INDUSTRIAL PPE AND OTHER Fixed Gas & Portable Gas SCBA & Connected Protective Apparel Industrial Fall Flame Detection Detection Firefighter & Helmets Head Protection Protection PRODUCT CATEGORY GLOBAL TAM1 ~$4.0B ~$2.5B ~$3.5B4 MARKE
Slide 15: MSA Safety | Our Strategy
MSA Safety | Our Strategy CONTINUE TO BE THE IMPLEMENT APPLY MSA BUSINESS ALLOCATE LEADER IN PREMIUM TARGETED GROWTH SYSTEM TO ENABLE CAPITAL SAFETY SOLUTIONS ACCELERATORS EXCELLENCE EFFECTIVELY • Leverage scale, market • Continue to evolve from • Drive excellence in pricing, • Leverage premier fina
Slide 16: MSA Safety | Our Business System (MBS)
MSA Safety | Our Business System (MBS) BEHAVIORS The way we act and react to changes and challenges • Relentless focus on improving our performance on new product development, SG&A, project management, and global business service PROCESSES How we work with others and apply tools • Working Capital: S
Slide 17: MSA Safety | 2028 Financial Targets
MSA Safety | 2028 Financial Targets MISSION-DRIVEN REINVESTMENT • 3 – 5% organic revenue growth Resilient Organic • Market growth, customer-centric innovation, and commercial + Revenue Growth $2.1B – $2.3B excellence • Macro secular safety trends • Target 30 – 50 bps annually Operating Margin1 + Exp
Slide 18: Reconciliation of Non-GAAP Financial Measures
Reconciliation of Non-GAAP Financial Measures Q1 2024 Earnings Results | 18
Slide 19: Reconciliation of Non-GAAP Financial Measures
Reconciliation of Non-GAAP Financial Measures Constant Currency Sales Change (Unaudited) Consolidated Three Months Ended Septem ber 30, 2024 Nine Months Ended Septem ber 30, 2024 Industrial Industrial Fire Fire (a) Detection (b) PPE and Net Sales Detection (b) PPE and Net Sales Service Service (a) O
Slide 20: 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 Septem ber 30, 2024 Net sales to external customers $ 299,497 $ 133,182 $ - $ 432,679 Operating income 91,477 Oper
Slide 21: 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 Nine Months Ended Septem ber 30, 2024 Net sales to external customers $ 909,745 $ 398,698 $ - $ 1,308,443 Operating income 271,533 Op
Slide 22: Reconciliation of Non-GAAP Financial Measures
Reconciliation of Non-GAAP Financial Measures Adjusted Operating Income and Adjusted Operating Margin (Unaudited) Trailing Twelve Months Twelve Months Ended Nine Months Ended September 30, Ended September 30, December 31, 2024 2023 2024 2023 Net sales to external customers $ 1,308,443 1,292,290 1,80
Slide 23: 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 and percentages) Three Months Ended September 30, Nine Months Ended September 30, 2024 2023 % Change 2024 2023 % Change Net income (loss) $ 66,6
Slide 24: Reconciliation of Non-GAAP Financial Measures
Reconciliation of Non-GAAP Financial Measures Free Cash Flow (Unaudited) Three Months Ended (In thousands, except percentage amounts) September 30, 2024 2023 Cash flow from operating activities $ 84,332 $ 124,784 Capital expenditures (14,254) (12,657) Free cash flow $ 70,078 $ 112,127 Adjusted earni
Slide 25: 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) September 30, 2024 Operating income $ 373,783 Depreciation and amortization 54,173 Currency exchange losses, net 13,013 Amortization of acquisition-rel
Slide 26: Reconciliation of Non-GAAP Financial Measures
Reconciliation of Non-GAAP Financial Measures R&D Investment (Unaudited) Trailing Twelve Months Twelve Months Ended (In thousands) Nine Months Ended Septmeber 30, Ended September 30, December 31, 2024 2023 2024 2023 Research and development expense $ 49,695 $ 48,906 $ 68,777 $ 67,988 Capitalized sof
Slide 27: 3Q 2024 Earnings Results
3Q 2024 Earnings Results 27