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MSA Safety Announces Fourth Quarter and Full Year 2020 Results

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Record quarterly revenue driven by strong performance in fire service business

PITTSBURGH, Feb. 18, 2021 /PRNewswire/ -- Global safety equipment manufacturer MSA Safety Incorporated (NYSE: MSA) today reported results for the fourth quarter and full year of 2020.

MSA Safety Incorporated
MSA Safety Incorporated

Quarterly Highlights

  • Revenue was $388 million, increasing 3 percent from a year ago on a reported basis and 2 percent on a constant currency basis.

  • GAAP operating income was $19 million or 4.8 percent of sales, compared to $40 million or 10.7 percent of sales in the same period a year ago. Adjusted operating income was $67 million or 17.3 percent of sales, compared to $65 million or 17.3 percent of sales in the same period a year ago.

  • GAAP earnings were $12 million or $0.31 per diluted share, compared to $31 million or $0.79 per diluted share in the same period a year ago. Adjusted earnings were $50 million or $1.27 per diluted share, compared to $51 million or $1.29 per diluted share in the same period a year ago.

  • GAAP operating income and earnings includes a pre-tax charge of $34 million associated primarily with an increase to the company's cumulative trauma product liability reserve, compared to a pre-tax charge of $18 million in the same period a year ago.

  • Operating cash flow was $96 million, increasing 26% from a year ago. The company realized a 320 basis point improvement in working capital from the third quarter of 2020.

Annual Highlights

  • Revenue was $1.35 billion, decreasing 4 percent from a year ago on a reported basis or 3 percent on a constant currency basis.

  • GAAP operating income was $167 million or 12.4 percent of sales, compared to $186 million or 13.3 percent of sales in the same period a year ago. Adjusted operating income was $243 million or 18.0 percent of sales, compared to $251 million or 17.9 percent of sales in the same period a year ago.

  • GAAP earnings were $120 million or $3.05 per diluted share, compared to $136 million or $3.48 per diluted share in the same period a year ago. Adjusted earnings were $177 million or $4.50 per diluted share, compared to $188 million or $4.80 per diluted share in the same period a year ago.

  • GAAP operating income and earnings includes a pre-tax charge of $39 million associated primarily with an increase to the company's cumulative trauma product liability reserve, compared to a pre-tax charge of $27 million in the same period a year ago.

  • Operating cash flow was $207 million, increasing 25% from a year ago. The company continues to execute a balanced capital allocation strategy focused on growing its business and returning value to shareholders. For the year, MSA invested $49 million in capital expenditures, paid down $44 million of debt, funded $67 million of dividends to shareholders, and deployed $20 million for share repurchases.

Comments from Management

"Our organization finished out a challenging year with strong fourth quarter performance that resulted in record revenue for the quarter, double-digit growth in cash flow, and a healthy backlog to enter 2021," commented Nish Vartanian, MSA Chairman, President and CEO. "Along with protecting the health and safety of our 5,000 associates, we remained focused on three key deliverables throughout the year: developing the most advanced safety technologies for our global customer base; driving operational excellence programs to improve our business model; and using our strong balance sheet to make investments that enhance our leadership positions in key markets," he said. Mr. Vartanian added that MSA's full year adjusted operating margin improved 10 basis points to 18 percent of sales, despite the 3 percent revenue decline associated with the pandemic and recession. "Overall, our diverse product portfolio and focus on continuous improvement drove strong performance in a challenging environment."

MSA's quarterly results include 10 percent revenue growth in firefighter safety products, a defensive market segment that has performed well through a broad range of economic conditions. "From our break-through G1 and M1 breathing apparatus platforms, to the recent acquisition of UK turnout gear leader Bristol Uniforms, to the upcoming launch of MSA's cloud-based Connected Firefighter platform and LUNAR system – which will create a new standard for firefighter accountability – we've made significant investments to help protect firefighters from head to toe with the most progressive technologies being developed today," Mr. Vartanian explained. MSA completed the Bristol Uniforms acquisition in January 2021. The transaction, valued at approximately $60 million, expands MSA's addressable market in the International fire service business.

In addition to the recent acquisition, Mr. Vartanian noted that profitability improvements in MSA's International segment were an ongoing highlight for the company in 2020. Adjusted operating margin in the segment expanded by 320 basis points in the fourth quarter and 270 basis points for the year. "Our restructuring investments and continuous improvement culture continue to yield strong returns across our International business," he said.

"Protecting the health and safety of workers around the world has never been more important or more relevant than it is today, and our team remains committed to advancing our mission," Mr. Vartanian said. "Our new product development pipeline, our focus on continuous improvement, and our strong balance sheet position us to continue to deliver value for our customers, employees, and shareholders in 2021 and beyond," Mr. Vartanian concluded.

MSA Safety Incorporated

Condensed Consolidated Statement of Income (Unaudited)

(In thousands, except per share amounts)



Three Months Ended

December 31,


Twelve Months Ended

December 31,


2020


2019


2020


2019









Net sales

$

388,248



$

375,255



$

1,348,223



$

1,401,981


Cost of products sold

228,976



208,410



757,775



765,369


Gross profit

159,272



166,845



590,448



636,612










Selling, general and administrative

76,268



85,165



290,334



330,502


Research and development

16,545



16,366



58,268



57,848


Restructuring charges

8,906



2,643



27,381



13,846


Currency exchange losses, net (a)

4,757



2,476



8,578



19,814


Product liability and other operating expense

34,158



20,217



39,036



28,372


Operating income

18,638



39,978



166,851



186,230










Interest expense

1,525



2,500



9,432



13,589


Other income, net

(1,308)



(2,244)



(5,684)



(11,094)


Total other expense, net

217



256



3,748



2,495










Income before income taxes

18,421



39,722



163,103



183,735


Provision for income taxes

5,690



8,173



41,941



46,086


Net income

12,731



31,549



121,162



137,649


Net income attributable to noncontrolling interests

(393)



(387)



(1,061)



(1,209)


Net income attributable to MSA Safety Incorporated

$

12,338



$

31,162



$

120,101



$

136,440










Earnings per share attributable to MSA Safety Incorporated common shareholders:








Basic

$

0.32



$

0.80



$

3.09



$

3.52


Diluted

$

0.31



$

0.79



$

3.05



$

3.48










Basic shares outstanding

38,981



38,762



38,885



38,653


Diluted shares outstanding

39,335



39,366



39,286



39,189



(a) Currency exchange losses for the twelve months ended December 31, 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)



December 31,
2020


December 31,
2019

Assets




Cash and cash equivalents

$

160,672



$

152,195


Trade receivables, net

252,283



255,082


Inventories

197,819



185,027


Notes receivable, insurance companies

3,796



3,676


Other current assets

141,859



97,383


Total current assets

756,429



693,363






Property, net

189,620



167,038


Prepaid pension cost

97,545



75,066


Operating lease assets, net

53,451



51,675


Goodwill

443,272



436,679


Notes receivable, insurance companies, noncurrent

48,540



52,336


Insurance receivable, noncurrent

82,926



56,169


Other noncurrent assets

200,701



207,367


Total assets

$

1,872,484



$

1,739,693






Liabilities and shareholders' equity




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

$

20,000



$

20,000


Accounts payable

86,854



89,120


Other current liabilities

203,691



168,389


Total current liabilities

310,545



277,509






Long-term debt, net

287,157



328,394


Pensions and other employee benefits

208,068



186,697


Noncurrent operating lease liabilities

44,639



42,632


Deferred tax liabilities

10,916



9,787


Product liability and other noncurrent liabilities

201,268



162,101


Total shareholders' equity

809,891



732,573


Total liabilities and shareholders' equity

$

1,872,484



$

1,739,693


MSA Safety Incorporated

Condensed Consolidated Statement of Cash Flows (Unaudited)

(In thousands)



Three Months Ended

December 31,


Twelve Months Ended

December 31,


2020


2019


2020


2019









Net income

$

12,731



$

31,549



$

121,162



$

137,649


Depreciation and amortization

10,390



9,681



39,674



38,020


Product liability expense

34,158



18,464



39,036



26,619


Change in working capital and other operating

39,121



17,018



6,683



(37,326)


Cash flow from operating activities

96,400



76,712



206,555



164,962










Capital expenditures

(16,207)



(13,081)



(48,905)


...

(36,604)


Acquisition, net of cash acquired







(33,196)


Change in short-term investments

(4,981)



22,614



(24,318)



5,425


Property disposals

120



95



454



218


Cash flow (used in) from investing activities

(21,068)



9,628



(72,769)



(64,157)










Change in debt

(39,000)



(29,502)



(44,000)



(16,565)


Cash dividends paid

(16,767)



(16,308)



(66,578)



(63,523)


Other financing

5,381



2,019



(15,951)



(4,536)


Cash flow used in financing activities

(50,386)



(43,791)



(126,529)



(84,624)










Effect of exchange rate changes on cash,

cash equivalents and restricted cash

2,902



1,136



1,234



(4,242)










Increase in cash, cash equivalents and restricted cash

$

27,848



$

43,685



$

8,491



$

11,939


MSA Safety Incorporated

Segment Information (Unaudited)

(In thousands, except percentage amounts)



Americas


International


Corporate


Consolidated

Three Months Ended December 31, 2020








Sales to external customers

$

244,518



$

143,730



$



$

388,248


Operating income







18,638


Operating margin %







4.8

%

Restructuring charges







8,906


Currency exchange losses, net







4,757


Product liability expense







34,158


Strategic transaction costs







515


Adjusted operating income (loss)

50,828



25,145



(8,999)



66,974


Adjusted operating margin %

20.8

%


17.5

%




17.3

%

Depreciation and amortization







10,390


Adjusted EBITDA

57,955



28,310



(8,901)



77,364


Adjusted EBITDA %

23.7

%


19.7

%




19.9

%









Three Months Ended December 31, 2019








Sales to external customers

$

235,419



$

139,836



$



$

375,255


Operating income







39,978


Operating margin %







10.7

%

Restructuring charges







2,643


Currency exchange losses, net







2,476


Product liability expense







18,464


Strategic transaction costs







1,463


Adjusted operating income (loss)

55,133



20,022



(10,131)



65,024


Adjusted operating margin %

23.4

%


14.3

%




17.3

%

Depreciation and amortization







9,681


Adjusted EBITDA

61,203



23,535



(10,033)



74,705


Adjusted EBITDA %

26.0

%


16.8

%




19.9

%

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 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

Twelve Months Ended December 31, 2020








Sales to external customers

$

874,305



$

473,918



$



$

1,348,223


Operating income







166,851


Operating margin %







12.4

%

Restructuring charges







27,381


Currency exchange losses, net







8,578


Product liability expense







39,036


Strategic transaction costs







717


COVID-19 related costs







757


Adjusted operating income (loss)

200,536



70,864



(28,080)



243,320


Adjusted operating margin %

22.9

%


15.0

%




18.0

%

Depreciation and amortization







39,674


Adjusted EBITDA

227,298



83,385



(27,689)



282,994


Adjusted EBITDA %

26.0

%


17.6

%




21.0

%









Twelve Months Ended December 31, 2019








Sales to external customers

$

915,118



$

486,863



$



$

1,401,981


Operating income







186,230


Operating margin %







13.3

%

Restructuring charges







13,846


Currency exchange losses, net







19,814


Product liability expense







26,619


Strategic transaction costs







4,400


Adjusted operating income (loss)

226,596



59,910



(35,597)



250,909


Adjusted operating margin %

24.8

%


12.3

%




17.9

%

Depreciation and amortization







38,020


Adjusted EBITDA

251,287



72,848



(35,206)



288,929


Adjusted EBITDA %

27.5

%


15.0

%




20.6

%

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 December 31, 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

20

%

(5)

%

(7)

%

(4)

%

(5)

%

%

3

%


10

%


3

%

Plus: Currency translation effects

(2)

%

(2)

%

2

%

%

(2)

%

(1)

%

(1)

%


(1)

%


(1)

%

Constant currency sales change

18

%

(7)

%

(5)

%

(4)

%

(7)

%

(1)

%

2

%


9

%


2

%




Twelve Months Ended December 31, 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

4

%

(9)

%

(13)

%

(16)

%

(2)

%

(18)

%

(6)

%


15

%


(4)

%

Plus: Currency translation effects

%

%

3

%

1

%

%

1

%

%


1

%


1

%

Constant currency sales change

4

%

(9)

%

(10)

%

(15)

%

(2)

%

(17)

%

(6)

%


16

%


(3)

%

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 December 31, 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

22

%

(3)

%

(11)

%

(12)

%

(7)

%

(14)

%

1

%


38

%


4

%

Plus: Currency translation effects

%

%

5

%

1

%

1

%

2

%

1

%


3

%


1

%

Constant currency sales change

22

%

(3)

%

(6)

%

(11)

%

(6)

%

(12)

%

2

%


41

%


5

%




Twelve Months Ended December 31,2020


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

4

%

(6)

%

(18)

%

(21)

%

(1)

%

(26)

%

(8)

%


25

%


(4)

%

Plus: Currency translation effects

1

%

%

4

%

2

%

1

%

3

%

2

%


4

%


1

%

Constant currency sales change

5

%

(6)

%

(14)

%

(19)

%

%

(23)

%

(6)

%


29

%


(3)

%

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 December 31, 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

16

%

(12)

%

4

%

12

%

(2)

%

22

%

6

%


(13)

%


3

%

Plus: Currency translation effects

(7)

%

(5)

%

(5)

%

(4)

%

(5)

%

(4)

%

(5)

%


(6)

%


(5)

%

Constant currency sales change

9

%

(17)

%

(1)

%

8

%

(7)

%

18

%

1

%


(19)

%


(2)

%




Twelve Months Ended December 31, 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

3

%

(21)

%

3

%

(6)

%

(3)

%

(6)

%

(3)

%


1

%


(3)

%

Plus: Currency translation effects

(1)

%

(1)

%

%

(1)

%

(2)

%

%

(1)

%


(1)

%


(1)

%

Constant currency sales change

2

%

(22)

%

3

%

(7)

%

(5)

%

(6)

%

(4)

%


%


(4)

%

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 December 31, 2020


Consolidated


Americas


International

Breathing Apparatus

18

%


22

%


9

%

Fall Protection

(1)

%


(12)

%


18

%

Portable Gas Detection

(4)

%


(11)

%


8

%

Industrial Head Protection

(5)

%


(6)

%


(1)

%

Fixed Gas and Flame Detection

(7)

%


(6)

%


(7)

%

Firefighter Helmets and Protective Apparel

(7)

%


(3)

%


(17)

%

Core Sales

2

%


2

%


1

%







Non-Core Sales

9

%


41

%


(19)

%







Net Sales

2

%


5

%


(2)

%






Twelve Months Ended December 31, 2020


Consolidated


Americas


International

Breathing Apparatus

4

%


5

%


2

%

Fall Protection

(17)

%


(23)

%


(6)

%

Portable Gas Detection

(15)

%


(19)

%


(7)

%

Industrial Head Protection

(10)

%


(14)

%


3

%

Fixed Gas and Flame Detection

(2)

%


%


(5)

%

Firefighter Helmets and Protective Apparel

(9)

%


(6)

%


(22)

%

Core Sales

(6)

%


(6)

%


(4)

%







Non-Core Sales

16

%


29

%


%







Net Sales

(3)

%


(3)

%


(4)

%

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

December 31,




Twelve Months Ended

December 31,




2020


2019


%

Change


2020


2019


%

Change













Net income attributable to MSA Safety Incorporated

$

12,338



$

31,162



(60)%


$

120,101



$

136,440



(12)%

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









15,359




Tax charges associated with restructuring activities

1,119



584





1,119



584




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

(266)



(98)





(1,965)



(2,278)




Subtotal

13,191



31,648



(58)%


119,255



150,105



(21)%













Product liability expense

34,158



18,464





39,036



26,619




Restructuring charges

8,906



2,643





27,381



13,846




Currency exchange losses, net

4,757



2,476





8,578



4,455




Strategic transaction costs

515



1,463





717



4,400




Asset related losses and other

47



100





993



371




Income tax expense on adjustments

(11,716)



(5,914)





(19,330)



(11,826)




Adjusted earnings

$

49,858



$

50,880



(2)%


$

176,630



$

187,970



(6)%













Adjusted earnings per diluted share

$

1.27



$

1.29



(2)%


$

4.50



$

4.80



(6)%


(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.

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 fire service, the oil, gas and petrochemical industry, 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 2020 revenues of $1.35 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, 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
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SOURCE MSA Safety