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Mar 31, 2022

MSA Q1 2022 Earnings Report

MSA Safety's first quarter benefited from strong demand and strategic execution amidst supply chain and inflationary challenges.

Key Takeaways

MSA Safety reported a 7% increase in total sales, reaching $331 million, with a 9% increase on a constant currency basis. The growth was supported by acquisitions and organic activity, despite challenges in the supply chain and inflationary environment. Adjusted earnings per diluted share increased to $1.10, compared to $0.95 in the same period last year.

Total sales increased by 7% to $331 million, or 9% on a constant currency basis, driven by acquisitions and organic growth.

GAAP operating income stood at $42.7 million, representing 12.9% of sales, while adjusted operating income reached $53.8 million, or 16.3% of sales.

GAAP earnings were $35.5 million, resulting in $0.90 per diluted share, while adjusted earnings amounted to $43.6 million, or $1.10 per diluted share.

Operating cash flow was $24.5 million, impacted by increased investment in working capital due to growth and supply chain issues.

Total Revenue
$331M
Previous year: $308M
+7.2%
EPS
$1.1
Previous year: $0.95
+15.8%
Operating Margin
12.9%
Previous year: 14.3%
-9.8%
Adjusted Operating Margin
16.3%
Previous year: 15.4%
+5.8%
Adjusted EBITDA
$65.7M
Previous year: $57.9M
+13.4%
Gross Profit
$143M
Previous year: $135M
+6.0%
Cash and Equivalents
$147M
Previous year: $185M
-20.3%
Free Cash Flow
$16.5M
Previous year: $45.6M
-63.7%
Total Assets
$2.42B
Previous year: $1.94B
+24.3%

MSA

MSA

MSA Revenue by Segment

MSA Revenue by Geographic Location

Forward Guidance

The company remains confident in executing its long-term vision, focusing on safety technologies and infrastructure protection, with a strong balance sheet supporting growth investments and shareholder returns, despite a dynamic operating environment.

Positive Outlook

  • Strong demand for products continues.
  • Recently-launched innovative technologies, including ALTAIR io™ 4 Gas Detection Wearable device and V-Gard® C1 Hard Hat with ReflectIR™ Thermal Barrier technology.
  • Significant progress integrating Bacharach, contributing positively to our results in the quarter
  • Demand strengthened through the quarter.
  • Balance sheet remains strong

Challenges Ahead

  • Challenging supply chain.
  • Inflationary environment.
  • Seeing the effects of supply chain challenges and inflation throughout our regions.
  • Operating environment remains dynamic.
  • Increased investment in working capital

Revenue & Expenses

Visualization of income flow from segment revenue to net income