MSA Safety Announces Fourth Quarter and Full Year 2019 Results

Record revenue driven by momentum of new products; MSA delivers mid-single digit revenue growth and strong operating margin expansion for the full year of 2019

PR Newswire

PITTSBURGH, Feb. 19, 2020

PITTSBURGH, Feb. 19, 2020 /PRNewswire/ — Global safety equipment manufacturer MSA Safety Incorporated (NYSE: MSA) today reported results for the fourth quarter and full year of 2019.

MSA Safety Incorporated

Quarterly Highlights

Revenue was $375 million, increasing 4 percent from a year ago on a reported basis and 5 percent on a constant currency basis.
GAAP operating income was $40 million or 10.7 percent of sales, compared to $42 million or 11.7 percent of sales in the same period a year ago. Adjusted operating income was $65 million or 17.3 percent of sales, compared to $65 million or 18.0 percent of sales in the same period a year ago. The company recognized a non-cash LIFO inventory charge of $2 million as well as a $3 million or 26 percent increase in research and development expense in the quarter, primarily impacting its Americas business segment.
GAAP earnings were $31 million or $0.79 per diluted share, compared to $25 million or $0.64 per diluted share in the same period a year ago. Adjusted earnings were $51 million or $1.29 per diluted share, compared to $50 million or $1.27 per diluted share in the same period a year ago.
Operating cash flow was $77 million compared to $78 million a year ago. Free cash flow conversion exceeded 100 percent of net income, driven by a 170 basis point decline in working capital from the third quarter of 2019.

Annual Highlights

Revenue was $1.4 billion, increasing 3 percent from a year ago on a reported basis and 5 percent on a constant currency basis.
GAAP operating income was $186 million or 13.3 percent of sales, compared to $173 million or 12.8 percent of sales in the same period a year ago. Adjusted operating income was $251 million or 17.9 percent of sales, compared to $235 million or 17.3 percent of sales in the same period a year ago on product margin improvements and strong leverage over operating costs.
GAAP earnings were $136 million or $3.48 per diluted share, compared to $124 million or $3.18 per diluted share in the same period a year ago. Adjusted earnings were $188 million or $4.80 per diluted share, compared to $175 million or $4.50 per diluted share in the same period a year ago.
Operating cash flow was $165 million compared to $264 million a year ago, reflecting higher collections of insurance receivables in 2018. In 2019, the company invested more than $57 million in research and development, deployed $33 million for the Sierra Monitor acquisition, and funded $64 million of dividends to shareholders. Dividend payments increased 11 percent from a year ago, continuing the company’s long history of raising its dividend annually for more than 50 consecutive years.

Comments from Management

“MSA delivered record revenue in the fourth quarter, realized strong returns on previously completed restructuring programs, and drove substantial improvements in working capital,” commented Nish Vartanian, MSA President and CEO. “For the full year, we achieved mid-single digit revenue growth, incremental margins of more than 35 percent, and healthy levels of cash flow while continuing to invest heavily in our business.” Mr. Vartanian added that MSA’s book-to-bill ratio exceeded 100 percent in the fourth quarter, providing a healthy backlog to start 2020.

The company’s fourth quarter results include a $3 million or 26 percent increase in R&D expense as it continued to invest in and launch a significant number of new products. Among these was the launch of the company’s ALTAIR io 360 gas detector earlier this month. Combining many of the capabilities of a fixed gas monitoring system with the wireless convenience of a hand-held detector, the ALTAIR io 360 enables connected work-sites while expanding MSA’s addressable market into the area-monitoring space.

MSA also continues to advance the development of its connected firefighter platform powered by LUNAR, a wireless, hand-held device that provides thermal imaging capability, firefighter ranging, and motionless alarm through the use of cloud technology. LUNAR is expected to launch in the second half of 2020. Mr. Vartanian noted that for the quarter, more than 40 percent of MSA’s total sales were from products introduced within the past five years.

The company continues to make progress against its goal to improve profitability in its International business segment. “Our team has been highly focused on driving growth in select markets, optimizing our go-to-market strategy, and rationalizing our cost structure. It is encouraging to see the returns of these strategic programs coming through in the quarter,” Mr. Vartanian commented. The company’s International segment adjusted operating margin increased by 160 basis points in the fourth quarter of 2019.

“With a robust new product development pipeline and a strong balance sheet, we remain well positioned to continue investing in the growth programs, talent and technologies that create value for our shareholders and advance our mission of protecting workers’ lives around the world,” Mr. Vartanian concluded.

MSA Safety Incorporated
Condensed Consolidated Statement of Income (Unaudited)
(In thousands, except per share amounts)

	Three Months Ended				Twelve Months Ended
	December 31,				December 31,
	2019		2018		2019		2018

Net sales	$	375,255	$	361,784	$	1,401,981	$	1,358,104
Cost of products sold	208,410		199,397		765,369		746,241
Gross profit	166,845		162,387		636,612		611,863

Selling, general and administrative	85,165		84,558		330,502		324,784
Research and development	16,366		12,944		57,848		52,696
Restructuring charges	2,643		3,024		13,846		13,247
Currency exchange losses (gains), net ^(a)	2,476		(241)		19,814		2,330
Product liability and other operating expense	20,217		19,858		28,372		45,327
Operating income	39,978		42,244		186,230		173,479

Interest expense	2,500		4,427		13,589		18,881
Loss on extinguishment of debt	—		—		—		1,494
Other income, net	(2,244)		(939)		(11,094)		(9,231)
Total other expense, net	256		3,488		2,495		11,144

Income before income taxes	39,722		38,756		183,735		162,335
Provision for income taxes	8,173		13,614		46,086		37,220
Net income	31,549		25,142		137,649		125,115
Net income attributable to noncontrolling interests	(387)		(259)		(1,209)		(965)
Net income attributable to MSA Safety Incorporated	$	31,162	$	24,883	$	136,440	$	124,150

Earnings per share attributable to MSA Safety Incorporated common shareholders:
Basic	$	0.80	$	0.65	$	3.52	$	3.23
Diluted	$	0.79	$	0.64	$	3.48	$	3.18

Basic shares outstanding	38,762		38,465		38,653		38,362
Diluted shares outstanding	39,366		39,104		39,189		38,961

^(a) Year-to-date currency exchange losses 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, 2019		December 31, 2018
Assets
Cash and cash equivalents	$	152,195	$	140,095
Trade receivables, net	255,082		245,032
Inventories	185,027		156,602
Notes receivable, insurance companies	3,676		3,555
Other current assets	97,383		111,339
Total current assets	693,363		656,623

Property, plant and equipment, net	167,038		157,940
Operating lease assets, net	51,675		—
Prepaid pension cost	75,066		57,568
Goodwill	436,679		413,640
Notes receivable, insurance companies, noncurrent	52,336		56,012
Insurance receivable, noncurrent	56,169		56,866
Other noncurrent assets	207,367		209,363
Total assets	$	1,739,693	$	1,608,012

Liabilities and shareholders’ equity
Notes payable and current portion of long-term debt, net	$	20,000	$	20,063
Accounts payable	89,120		78,367
Other current liabilities	168,389		183,630
Total current liabilities	277,509		282,060

Long-term debt, net	328,394		341,311
Pensions and other employee benefits	186,697		166,101
Noncurrent operating lease liabilities	42,632		—
Deferred tax liabilities	9,787		7,164
Product liability and other noncurrent liabilities	162,101		171,857
Total shareholders’ equity	732,573		639,519
Total liabilities and shareholders’ equity	$	1,739,693	$	1,608,012

MSA Safety Incorporated
Condensed Consolidated Statement of Cash Flows (Unaudited)
(In thousands)

	Three Months Ended				Twelve Months Ended
	December 31,				December 31,
	2019		2018		2019		2018

Net income	$	31,549	$	25,142	$	137,649	$	125,115
Depreciation and amortization	9,681		9,267		38,020		37,852
Change in working capital and other operating	35,482		43,281		(10,707)		100,920
Cash flow from operating activities	76,712		77,690		164,962		263,887

Capital expenditures	(13,081)		(15,340)		(36,604)		(33,960)
Acquisition, net of cash acquired	—		—		(33,196)		—
Change in short-term investments	22,614		2,068		5,425		(55,022)
Property disposals	95		586		218		4,587
Cash flow from (used in) investing activities	9,628		(12,686)		(64,157)		(84,395)

Change in debt	(29,502)		(26,941)		(16,565)		(107,616)
Cash dividends paid	(16,308)		(14,643)		(63,523)		(57,248)
Other financing	2,019		2,170		(4,536)		1,595
Cash flow used in financing activities	(43,791)		(39,414)		(84,624)		(163,269)

Effect of exchange rate changes on cash, cash equivalents and restricted cash	1,136		(3,556)		(4,242)		(13,508)

Increase in cash, cash equivalents and restricted cash	$	43,685	$	22,034	$	11,939	$	2,715

MSA Safety Incorporated
Segment Information (Unaudited)
(In thousands, except percentage amounts)

	Americas			International			Corporate		Consolidated
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		%

Three Months Ended December 31, 2018
Sales to external customers	$	220,475		$	141,309		$	—	$	361,784
Operating income									42,244
Operating margin %									11.7		%
Restructuring charges									3,024
Currency exchange gains, net									(241)
Product liability expense									19,858
Strategic transaction costs									213
Adjusted operating income (loss)	55,383			17,906			(8,191)		65,098
Adjusted operating margin %	25.1		%	12.7		%			18.0		%
Depreciation and amortization									9,267
Adjusted EBITDA	61,291			21,168			(8,094)		74,365
Adjusted EBITDA %	27.8		%	15.0		%			20.6		%

	Americas			International			Corporate		Consolidated
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		%

Twelve Months Ended December 31, 2018
Sales to external customers	$	854,287		$	503,817		$	—	$	1,358,104
Operating income									173,479
Operating margin %									12.8		%
Restructuring charges									13,247
Currency exchange losses, net									2,330
Product liability expense									45,327
Strategic transaction costs									421
Adjusted operating income (loss)	206,839			59,866			(31,901)		234,804
Adjusted operating margin %	24.2		%	11.9		%			17.3		%
Depreciation and amortization									37,852
Adjusted EBITDA	230,982			73,169			(31,495)		272,656
Adjusted EBITDA %	27.0		%	14.5		%			20.1		%

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
Reconciliation of As Reported Financial Measures to Non-GAAP Financial Measures
Constant currency revenue growth (Unaudited)

Consolidated

	Three Months Ended December 31, 2019
	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	1	%	—	%	(5)	%	3	%	18	%	(1)	%	4	%	—	%	4	%
Plus: Currency translation effects	—	%	1	%	1	%	1	%	1	%	—	%	1	%	1	%	1	%
Constant currency sales change	1	%	1	%	(4)	%	4	%	19	%	(1)	%	5	%	1	%	5	%

	Twelve Months Ended December 31, 2019
	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	(2)	%	5	%	(1)	%	4	%	12	%	15	%	4	%	(5)	%	3	%
Plus: Currency translation effects	1	%	1	%	2	%	2	%	2	%	3	%	2	%	3	%	2	%
Constant currency sales change	(1)	%	6	%	1	%	6	%	14	%	18	%	6	%	(2)	%	5	%

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, 2019
	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	8	%	(3)	%	(5)	%	5	%	23	%	18	%	8	%	(1)	%	7	%
Plus: Currency translation effects	—	%	—	%	1	%	1	%	—	%	1	%	—	%	—	%	—	%
Constant currency sales change	8	%	(3)	%	(4)	%	6	%	23	%	19	%	8	%	(1)	%	7	%

	Twelve Months Ended December 31, 2019
	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	%	4	%	(2)	%	4	%	18	%	27	%	7	%	6	%	7	%
Plus: Currency translation effects	—	%	—	%	2	%	1	%	—	%	2	%	1	%	1	%	1	%
Constant currency sales change	3	%	4	%	—	%	5	%	18	%	29	%	8	%	7	%	8	%

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, 2019
	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	(12)	%	13	%	(6)	%	—	%	14	%	(22)	%	(1)	%	—	%	(1)	%
Plus: Currency translation effects	1	%	4	%	1	%	1	%	2	%	—	%	1	%	3	%	2	%
Constant currency sales change	(11)	%	17	%	(5)	%	1	%	16	%	(22)	%	—	%	3	%	1	%

	Twelve Months Ended December 31, 2019
	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	(12)	%	9	%	3	%	2	%	5	%	(1)	%	(1)	%	(15)	%	(3)	%
Plus: Currency translation effects	4	%	6	%	4	%	5	%	5	%	4	%	4	%	4	%	4	%
Constant currency sales change	(8)	%	15	%	7	%	7	%	10	%	3	%	3	%	(11)	%	1	%

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, 2019
	Consolidated		Americas		International
Fixed Gas and Flame Detection	19	%	23	%	16	%
Portable Gas Detection	4	%	6	%	1	%
Breathing Apparatus	1	%	8	%	(11)	%
Firefighter Helmets and Protective Apparel	1	%	(3)	%	17	%
Fall Protection	(1)	%	19	%	(22)	%
Industrial Head Protection	(4)	%	(4)	%	(5)	%
Core Sales	5	%	8	%	—	%

Non-Core Sales	1	%	(1)	%	3	%

Net Sales	5	%	7	%	1	%

	Twelve Months Ended December 31, 2019
	Consolidated		Americas		International
Fixed Gas and Flame Detection	14	%	18	%	10	%
Portable Gas Detection	6	%	5	%	7	%
Breathing Apparatus	(1)	%	3	%	(8)	%
Firefighter Helmets and Protective Apparel	6	%	4	%	15	%
Fall Protection	18	%	29	%	3	%
Industrial Head Protection	1	%	—	%	7	%
Core Sales	6	%	8	%	3	%

Non-Core Sales	(2)	%	7	%	(11)	%

Net Sales	5	%	8	%	1	%

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,
	2019		2018		% Change	2019		2018		% Change

Net income attributable to MSA Safety Incorporated	$	31,162	$	24,883	25%	$	136,440	$	124,150	10%
Tax charges associated with U.S. Tax Reform	—		4,475			—		2,518
Non-deductible non-cash charge related to the recognition of currency translation adjustments ^(a)	—		—			15,359		—
Tax charges associated with restructuring activities	584		1,794			584		1,794
Tax benefit associated with ASU 2016- 09: Improvements to employee share- based payment accounting	(98)		(225)			(2,278)		(2,531)
Subtotal	31,648		30,927		2%	150,105		125,931		19%

Product liability expense	18,464		19,858			26,619		45,327
Restructuring charges	2,643		3,024			13,846		13,247
Strategic transaction costs	1,463		213			4,400		421
Currency exchange losses (gains), net	2,476		(241)			4,455		2,330
Loss on extinguishment of debt	—		—			—		1,494
Asset related losses, net	100		68			371		484
Income tax expense on adjustments	(5,914)		(4,155)			(11,826)		(13,800)
Adjusted earnings	$	50,880	$	49,694	2%	$	187,970	$	175,434	7%

Adjusted earnings per diluted share	$	1.29	$	1.27	2%	$	4.80	$	4.50	7%
^(a) Included in Currency exchange losses (gains), net on the 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.

MSA Safety Incorporated
Reconciliation of As Reported Financial Measures to Non-GAAP Financial Measures
Free cash flow (Unaudited)
(In thousands, except percentages)

	Three Months Ended December 31,				Twelve Months Ended December 31,
	2019		2018		2019		2018

Cash flow from operating activities	$	76,712	$	77,690	$	164,962	$	263,887
Capital expenditures	(13,081)		(15,340)		(36,604)		(33,960)

Free cash flow	$	63,631	$	62,350	$	128,358	$	229,927

Net income attributable to MSA Safety Incorporated	$	31,162	$	24,883	$	136,440	$	124,150

Free cash flow conversion	204%		251%		94%		185%

Management believes that free cash flow is a meaningful measure for investors. Management reviews cash from operations after deducting capital expenditures because these expenditures are necessary to promote growth of MSA’s business and are likely to produce cash from operations in future periods. It is important to note that free cash flow does not reflect the residual cash balance of the company for discretionary spending since other items, including debt and dividend payments, are deducted from free cash flow before arriving at the company’s ending cash balance. Management defines free cash flow conversion as free cash flow divided by net income attributable to MSA. There can be no assurances that MSA’s definition of free cash flow is consistent with that of other companies. As such, management believes that it is appropriate to consider cash from operating activities determined on a GAAP basis as well as free cash flow.

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 the oil, gas and petrochemical industry, the fire service, 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 2019 revenues of $1.40 billion, MSA employs approximately 4,800 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, 2019. 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, adjusted earnings per diluted share and free cash flow. 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.

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SOURCE MSA Safety

MSA Safety Announces Fourth Quarter and Full Year 2019 Results

MSA Safety Announces Fourth Quarter and Full Year 2019 Results

Record revenue driven by momentum of new products; MSA delivers mid-single digit revenue growth and strong operating margin expansion for the full year of 2019

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