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Mar 31, 2021

MSA Q1 2021 Earnings Report

MSA Safety's first quarter results were impacted by the pandemic, but the company remained focused on executing its strategy, investing in growth programs, improving productivity, and generating strong cash flow.

Key Takeaways

MSA Safety Incorporated reported a decrease in revenue by 10 percent to $308 million compared to the previous year. GAAP operating income was $44 million, or 14.3 percent of sales, while GAAP earnings were $36 million, or $0.92 per diluted share. The company deployed $63 million for the acquisition of Bristol Uniforms, invested $10 million in strategic capital expenditures, and funded $17 million of dividends to shareholders.

Revenue decreased by 10 percent compared to the previous year, totaling $308 million.

GAAP operating income was $44 million, representing 14.3 percent of sales.

GAAP earnings amounted to $36 million, or $0.92 per diluted share.

The company invested in strategic acquisitions, capital expenditures, and shareholder dividends.

Total Revenue
$308M
Previous year: $341M
-9.6%
EPS
$0.95
Previous year: $1.18
-19.5%
Operating Margin
14.3%
Adjusted Operating Margin
15.4%
Adjusted EBITDA
$57.9M
Gross Profit
$135M
Previous year: $157M
-14.4%
Cash and Equivalents
$185M
Previous year: $123M
+50.6%
Free Cash Flow
$45.6M
Previous year: $7.05M
+547.5%
Total Assets
$1.94B
Previous year: $1.73B
+12.2%

MSA

MSA

MSA Revenue by Segment

MSA Revenue by Geographic Location

Forward Guidance

MSA's incoming orders strengthened in March and April, and backlog levels are healthy to start the second quarter. While economic recovery may not be a straight line, the company is optimistic that the worst is behind from a demand perspective.

Positive Outlook

  • Incoming orders strengthened in March and April.
  • Backlog levels are healthy to start the second quarter.
  • Optimistic that the worst is behind from a demand perspective.
  • New product development pipeline.
  • Strong balance sheet position the company well to increase shareholder value.

Challenges Ahead

  • Economic recovery may not be a straight line.
  • Pandemic effects on the economy impacted quarterly results.
  • Revenue decreased 10 percent from a year ago.
  • GAAP operating income decreased from 17.2 percent to 14.3 percent of sales.
  • GAAP earnings decreased from $1.11 to $0.92 per diluted share.

Revenue & Expenses

Visualization of income flow from segment revenue to net income