About MSA Safety On Wednesday, June 5, Steve Blanco, President and Chief Executive Officer, and Lee McChesney, Senior Vice President and Chief Financial Officer, will present at the Stifel 2024 Cross Sector Insight Conference. The discussion will begin at 10:20 a.m. Eastern Time and last for approximately 30 minutes. On Thursday, June 6, Lee McChesney, Senior Vice President and Chief Financial Officer, will present at the Baird 2024 Global Consumer, Technology & Services Conference. The discussion will begi ...

Core Insights - MSA Safety, Inc. hosted an Investor Day to present its long-term strategy, financial performance, and 2028 financial targets, emphasizing innovation and operational excellence [1][2][4] Financial Targets - The company set its 2028 financial targets with an organic revenue range of $2.1 billion to $2.3 billion, an adjusted operating margin of 23.5% to 25.0%, and adjusted EPS between $10.00 and $11.00 [5] - MSA Safety plans to complement these targets with over $1.5 billion in disciplined capital deployment, supported by a healthy balance sheet and robust free cash flow generation [5] Strategic Growth Initiatives - The next phase of MSA Safety's strategy focuses on profitable growth, leveraging strong market positions and innovation to address significant safety challenges [6] - Key strategic pillars include continuous innovation, talent development, and a strong customer focus, aiming for consistent mid-single-digit organic growth [6] - The company aims to implement targeted growth accelerators in connected solutions and higher-growth end markets, enhancing its suite of solutions and M&A capabilities [9] Company Background - MSA Safety is a global leader in advanced safety products, with 2023 revenues of $1.8 billion and a workforce of over 5,000 associates across more than 40 international locations [8]

Next Phase of Long-Term Strategy for Profitable Growth PITTSBURGH, May 22, 2024 /PRNewswire/ -- MSA Safety, Inc. (NYSE: MSA), a global leader in the development of advanced safety products and solutions that protect people and facility infrastructures, will host an Investor Day in New York City today, Wednesday, May 22, 2024, beginning at 8:30 a.m. Eastern Time concluding at approximately 12:15 p.m. Eastern Time. Steve Blanco, President and Chief Executive Officer, and Lee McChesney, Senior Vice President a ...

PITTSBURGH, May 13, 2024 /PRNewswire/ -- MSA Safety Incorporated (NYSE: MSA) announced that on May 10, 2024, its Board of Directors authorized a new share repurchase plan of up to $200 million of the company's common stock. The program will replace the previous $100 million share repurchase plan, originally authorized in 2015. The timing, price, and volume of the repurchases will be based on market conditions, relevant securities laws, and other factors. The board did not set a termination date for the new ...

PITTSBURGH, May 13, 2024 /PRNewswire/ -- The Board of Directors of MSA Safety, Inc. (NYSE: MSA), a global leader in the development of advanced safety products and solutions that help protect people and facility infrastructures, on May 10th elected Nishan J. Vartanian Non-Executive Chairman of the Board. Mr. Vartanian's election follows his previously announced plans to retire as MSA Safety's Chief Executive Officer, but to remain on the company's board. Mr. Vartanian will retire as a full-time employee at ...

Growth investors focus on stocks that are seeing above-average financial growth, as this feature helps these securities garner the market's attention and deliver solid returns. But finding a growth stock that can live up to its true potential can be a tough task.In addition to volatility, these stocks carry above-average risk by their very nature. Also, one could end up losing from a stock whose growth story is actually over or nearing its end.However, the Zacks Growth Style Score (part of the Zacks Style S ...

```markdown PART I. FINANCIAL INFORMATION [Item 1. Financial Statements](index=3&type=section&id=Item%201.%20Financial%20Statements) Presents unaudited condensed consolidated financial statements, including operations, comprehensive income, balance sheets, cash flows, and detailed notes [Condensed Consolidated Statements of Operations (unaudited)](index=3&type=section&id=Condensed%20Consolidated%20Statements%20of%20Operations%20(unaudited)) Q1 2024 net income improved significantly from prior year's net loss, driven by divestiture absence and operating income growth | Metric (in thousands) | Three Months Ended March 31, 2024 | Three Months Ended March 31, 2023 | | :-------------------- | :-------------------------------- | :-------------------------------- | | Net sales | $413,302 | $398,262 | | Gross profit | $195,531 | $181,398 | | Operating income (loss) | $80,112 | $(60,061) | | Income (loss) before income taxes | $75,607 | $(67,737) | | Net income (loss) | $58,139 | $(150,173) | | Basic EPS | $1.48 | $(3.83) | | Diluted EPS | $1.47 | $(3.83) | | Dividends per common share | $0.47 | $0.46 | - **Net sales** increased by **$15.0 million**, or **3.8%**, to **$413.3 million** in Q1 2024 compared to Q1 2023[7](index=7&type=chunk)[95](index=95&type=chunk) - **Operating income** significantly improved from a loss of **$(60.1) million** in Q1 2023 to an income of **$80.1 million** in Q1 2024, largely due to the absence of the **$129.2 million** loss on divestiture of MSA LLC in the prior year[7](index=7&type=chunk)[112](index=112&type=chunk) [Condensed Consolidated Statements of Comprehensive Income (Loss) (unaudited)](index=4&type=section&id=Condensed%20Consolidated%20Statements%20of%20Comprehensive%20Income%20(Loss)%20(unaudited)) Q1 2024 comprehensive income of **$47.8 million** improved significantly from prior year's loss, driven by net income despite currency translation | Metric (in thousands) | Three Months Ended March 31, 2024 | Three Months Ended March 31, 2023 | | :-------------------- | :-------------------------------- | :-------------------------------- | | Net income (loss) | $58,139 | $(150,173) | | Foreign currency translation adjustments | $(10,673) | $11,194 | | Total other comprehensive (loss) gain, net of tax | $(10,299) | $11,635 | | Comprehensive income (loss) | $47,840 | $(138,538) | - Foreign currency translation adjustments shifted from a gain of **$11.2 million** in Q1 2023 to a loss of **$10.7 million** in Q1 2024[11](index=11&type=chunk) [Condensed Consolidated Balance Sheets (unaudited)](index=5&type=section&id=Condensed%20Consolidated%20Balance%20Sheets%20(unaudited)) As of March 31, 2024, MSA Safety maintained a stable financial position with slight asset increase, liability decrease, and growing shareholders' equity | Metric (in thousands) | March 31, 2024 | December 31, 2023 | | :-------------------- | :------------- | :---------------- | | Total current assets | $792,945 | $786,270 | | Total assets | $2,174,330 | $2,170,150 | | Total current liabilities | $316,526 | $332,818 | | Total liabilities | $1,179,576 | $1,203,348 | | Total shareholders' equity | $994,754 | $966,802 | - **Total assets** increased by **$4.2 million**, from **$2,170.2 million** at December 31, 2023, to **$2,174.3 million** at March 31, 2024[14](index=14&type=chunk) - **Total liabilities** decreased by **$23.8 million**, from **$1,203.3 million** at December 31, 2023, to **$1,179.6 million** at March 31, 2024[14](index=14&type=chunk) [Condensed Consolidated Statements of Cash Flows (unaudited)](index=6&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows%20(unaudited)) Q1 2024 operating cash flow significantly improved due to the absence of prior year's MSA LLC divestiture cash contribution; investing and financing used cash | Metric (in thousands) | Three Months Ended March 31, 2024 | Three Months Ended March 31, 2023 | | :-------------------- | :-------------------------------- | :-------------------------------- | | Cash Flow From (Used in) Operating Activities | $50,886 | $(285,909) |\ | Cash Flow Used in Investing Activities | $(11,219) | $(8,367) |\ | Cash Flow (Used in) From Financing Activities | $(29,085) | $272,771 |\ | Increase (decrease) in cash, cash equivalents and restricted cash | $1,906 | $(23,792) |\ | Ending cash, cash equivalents and restricted cash | $150,314 | $140,636 | - Operating activities provided **$50.9 million** in cash in Q1 2024, a significant improvement from using **$285.9 million** in Q1 2023, mainly due to the prior year's **$341.2 million** contribution for the MSA LLC divestiture[16](index=16&type=chunk)[125](index=125&type=chunk) - Financing activities used **$29.1 million** in Q1 2024, compared to providing **$272.8 million** in Q1 2023, reflecting net payments on long-term debt (**$5.0 million**) versus net proceeds from debt (**$295.4 million**) in the prior year[16](index=16&type=chunk)[127](index=127&type=chunk) [Condensed Consolidated Statements of Changes in Retained Earnings and Accumulated Other Comprehensive Loss (unaudited)](index=7&type=section&id=Condensed%20Consolidated%20Statements%20of%20Changes%20in%20Retained%20Earnings%20and%20Accumulated%20Other%20Comprehensive%20Loss%20(unaudited)) Q1 2024 retained earnings increased due to net income, while accumulated other comprehensive loss grew from foreign currency translation adjustments | Metric (in thousands) | Balances December 31, 2023 | Net Income (Loss) | Dividends | Foreign Currency Translation Adjustments | Balances March 31, 2024 | | :-------------------- | :------------------------- | :---------------- | :-------- | :--------------------------------------- | :---------------------- | | Retained Earnings | $1,143,442 | $58,139 | $(18,490) | — | $1,183,091 | | Accumulated Other Comprehensive Loss | $(129,249) | — | — | $(10,673) | $(139,548) | - **Retained earnings** increased by **$39.6 million** from December 31, 2023, to March 31, 2024, primarily due to net income of **$58.1 million**, partially offset by common and preferred dividends of **$18.5 million**[19](index=19&type=chunk) - **Accumulated other comprehensive loss** increased by **$10.3 million**, mainly due to foreign currency translation adjustments of **$(10.7) million**[19](index=19&type=chunk) [Notes to Condensed Consolidated Financial Statements (unaudited)](index=8&type=section&id=Notes%20to%20Condensed%20Consolidated%20Financial%20Statements%20(unaudited)) These notes provide essential details and disclosures supporting the condensed consolidated financial statements, covering accounting policies, specific balance sheet and income statement items, segment information, and significant commitments and contingencies, including the impact of the MSA LLC divestiture and ongoing litigation [Note 1—Basis of Presentation](index=8&type=section&id=Note%201%E2%80%94Basis%20of%20Presentation) Unaudited condensed consolidated financial statements are prepared under U.S. GAAP, include normal adjustments, and eliminate intercompany transactions - The financial statements are unaudited and include all adjustments considered necessary by management for fair presentation[21](index=21&type=chunk) - Intercompany accounts and transactions have been eliminated in the condensed consolidated financial statements[21](index=21&type=chunk) [Note 2—Cash and Cash Equivalents](index=8&type=section&id=Note%202%E2%80%94Cash%20and%20Cash%20Equivalents) The company uses a notional cash pooling arrangement for global liquidity, with a net cash pool position of **$0.8 million** as of March 31, 2024 - Several subsidiaries participate in a notional cash pooling arrangement for global liquidity management[22](index=22&type=chunk) | (In thousands) | March 31, 2024 | | :-------------------- | :------------- | | Gross cash pool position | $95,488 | | Less: cash pool borrowings | $(94,644) | | Net cash pool position | $844 | [Note 3—Restructuring Charges](index=8&type=section&id=Note%203%E2%80%94Restructuring%20Charges) Q1 2024 restructuring charges increased to **$3.0 million**, driven by management restructuring and manufacturing footprint optimization across segments - Restructuring charges for Q1 2024 were **$3.0 million**, up from **$1.7 million** in Q1 2023[24](index=24&type=chunk)[25](index=25&type=chunk) - Q1 2024 charges were related to manufacturing footprint optimization in Americas (**$0.3 million**), management restructuring and productivity initiatives in International (**$1.9 million**), and footprint optimization/management restructuring in Corporate (**$0.8 million**)[24](index=24&type=chunk) | (In millions) | Americas | International | Corporate | Total | | :------------ | :------- | :------------ | :-------- | :---- | | Reserve balances at December 31, 2023 | $0.8 | $9.0 | $— | $9.8 | | Restructuring charges | $0.3 | $1.9 | $0.8 | $3.0 | | Cash payments | $(0.6) | $(2.9) | $(0.3) | $(3.8) | | Reserve balances at March 31, 2024 | $0.5 | $7.8 | $0.5 | $8.8 | [Note 4—Inventories](index=9&type=section&id=Note%204%E2%80%94Inventories) Total inventories increased to **$305.6 million** at March 31, 2024, with growth across finished products, work in process, and raw materials | (In thousands) | March 31, 2024 | December 31, 2023 | | :-------------------- | :------------- | :---------------- | | Finished products | $89,899 | $88,687 | | Work in process | $19,136 | $15,378 | | Raw materials and supplies | $196,521 | $188,539 | | Total inventories | $305,556 | $292,604 | [Note 5—Property, Plant and Equipment](index=9&type=section&id=Note%205%E2%80%94Property,%20Plant%20and%20Equipment) Net property, plant and equipment slightly decreased to **$211.0 million** at March 31, 2024, as depreciation offset construction in progress | (In thousands) | March 31, 2024 | December 31, 2023 | | :-------------------- | :------------- | :---------------- | | Total gross property, plant and equipment | $658,373 | $667,911 | | Less: accumulated depreciation | $(447,418) | $(456,034) | | Property, plant and equipment, net | $210,955 | $211,877 | [Note 6—Reclassifications Out of Accumulated Other Comprehensive Loss](index=10&type=section&id=Note%206%E2%80%94Reclassifications%20Out%20of%20Accumulated%20Other%20Comprehensive%20Loss) Accumulated other comprehensive loss increased to **$(139.5) million** at March 31, 2024, primarily due to foreign currency translation adjustments | (In thousands) | Balance at beginning of period (Dec 31, 2023) | Foreign currency translation adjustments | Balance at end of period (Mar 31, 2024) | | :------------- | :------------------------------------ | :--------------------------------------- | :------------------------------------ | | Foreign currency translation | $(86,597) | $(10,673) | $(97,270) | | Pension and other post-retirement benefits | $(42,652) | $374 (reclassified into net income) | $(42,278) | - Foreign currency translation adjustments resulted in a **$(10.7) million** loss in Q1 2024, compared to an **$11.2 million** gain in Q1 2023[31](index=31&type=chunk) [Note 7—Capital Stock](index=10&type=section&id=Note%207%E2%80%94Capital%20Stock) The company's capital structure includes preferred and common stock, with **95,428** treasury shares issued for stock-based benefit plans in Q1 2024 - As of March 31, 2024, **39,381,219** common shares were outstanding, with no new shares issued during the quarter[33](index=33&type=chunk) - The company's stock repurchase program authorizes up to **$100.0 million**, but no shares were repurchased under this program in Q1 2024[34](index=34&type=chunk) - **95,428** treasury shares were issued for stock-based benefit plans during Q1 2024, compared to **26,774** in Q1 2023[35](index=35&type=chunk) [Note 8—Segment Information](index=11&type=section&id=Note%208%E2%80%94Segment%20Information) MSA Safety operates through Americas, International, and Corporate segments, with Americas showing strong Q1 2024 growth and International a slight decline - The company is organized into three reportable segments: Americas, International, and Corporate, based on geographical operating segments[37](index=37&type=chunk) - Adjusted operating income (loss) and adjusted EBITDA are key measures used to evaluate segment performance[39](index=39&type=chunk) | (In thousands) | Americas (2024) | International (2024) | Americas (2023) | International (2023) | | :------------- | :-------------- | :------------------- | :-------------- | :------------------- | | Net sales to external customers | $295,539 | $117,763 | $280,267 | $117,995 | | Adjusted operating income (loss) | $86,218 | $13,486 | $71,694 | $15,779 | | Adjusted operating margin % | 29.2 % | 11.5 % | 25.6 % | 13.4 % | | Adjusted EBITDA | $95,693 | $17,045 | $80,494 | $19,058 | | Adjusted EBITDA margin % | 32.4 % | 14.5 % | 28.7 % | 16.2 % | | Product Group (in thousands) | Consolidated (2024) | Americas (2024) | International (2024) | Consolidated (2023) | Americas (2023) | International (2023) | | :--------------------------- | :------------------ | :-------------- | :------------------- | :------------------ | :-------------- | :------------------- | | Firefighter Safety | $163,694 (40%) | $122,252 (41%) | $41,442 (35%) | $139,388 (35%) | $102,056 (36%) | $37,332 (32%) | | Detection | $139,216 (34%) | $96,295 (33%) | $42,921 (36%) | $146,601 (37%) | $99,311 (35%) | $47,290 (40%) | | Industrial PPE and Other | $110,392 (26%) | $76,992 (26%) | $33,400 (29%) | $112,273 (28%) | $78,900 (29%) | $33,373 (28%) | | Total | $413,302 (100%) | $295,539 (100%) | $117,763 (100%) | $398,262 (100%) | $280,267 (100%) | $117,995 (100%) | [Note 9—Earnings (Loss) per Share](index=13&type=section&id=Note%209%E2%80%94Earnings%20(Loss)%20per%20Share) Basic and diluted EPS significantly improved to **$1.48** and **$1.47** in Q1 2024, from a loss of **$(3.83)**, reflecting the company's return to profitability | Metric (in thousands, except per share values) | Three Months Ended March 31, 2024 | Three Months Ended March 31, 2023 | | :--------------------------------------------- | :-------------------------------- | :-------------------------------- | | Net income (loss) attributable to common shareholders | $58,122 | $(150,183) | | Basic weighted-average shares outstanding | 39,360 | 39,224 | | Diluted weighted-average shares outstanding | 39,556 | 39,224 | | Basic EPS | $1.48 | $(3.83) | | Diluted EPS | $1.47 | $(3.83) | - Stock-based compensation awards were excluded from diluted EPS computation in Q1 2023 due to the net loss, making their effect anti-dilutive[45](index=45&type=chunk) [Note 10—Income Taxes](index=14&type=section&id=Note%2010%E2%80%94Income%20Taxes) Q1 2024 effective tax rate was **23.1%**, a significant change from **(121.7)%** in Q1 2023, due to prior year's non-deductible divestiture loss - The effective tax rate for Q1 2024 was **23.1%**, primarily influenced by state income taxes and nondeductible compensation[47](index=47&type=chunk) - The Q1 2023 effective tax rate was **(121.7)%**, largely due to the MSA LLC divestiture and related non-deductible loss[47](index=47&type=chunk) - As of March 31, 2024, the company had a gross liability of **$7.2 million** for unrecognized tax benefits[48](index=48&type=chunk) [Note 11—Stock Plans](index=14&type=section&id=Note%2011%E2%80%94Stock%20Plans) Q1 2024 stock compensation expense decreased to **$4.2 million**, with **71,472** restricted stock awards and **40,231** performance stock units granted | (In thousands) | Three Months Ended March 31, 2024 | Three Months Ended March 31, 2023 | | :---------------------- | :-------------------------------- | :-------------------------------- | | Stock compensation expense | $4,187 | $6,270 | | Income tax benefit | $1,026 | $1,536 | | Stock compensation expense, net of tax | $3,161 | $4,734 | | Restricted Stock Activity | Shares (Q1 2024) | Weighted Average Grant Date Fair Value | | :------------------------ | :--------------- | :------------------------------------- | | Unvested at January 1, 2024 | 173,851 | $142.73 | | Granted | 71,472 | $177.30 | | Vested | (21,864) | $169.67 | | Unvested at March 31, 2024 | 221,005 | $151.23 | - Performance stock units granted in Q1 2024 have a fair value of **$181.31** per unit, with the final number of shares ranging from **0%** to **200%** of the target award based on performance targets and TSR[54](index=54&type=chunk)[55](index=55&type=chunk) - 2021 performance unit awards vested in Q1 2024 at **174%** of the target award[56](index=56&type=chunk) [Note 12—Long-Term Debt](index=16&type=section&id=Note%2012%E2%80%94Long-Term%20Debt) Total long-term debt, net, decreased to **$569.7 million** at March 31, 2024; the company maintains a **$900.0 million** Revolving Credit Facility with **$829.5 million** unused capacity | (In thousands) | March 31, 2024 | December 31, 2023 | | :------------- | :------------- | :---------------- | | Total long-term debt, net of debt issuance costs | $596,154 | $601,692 | | Amounts due within one year | $26,462 | $26,522 | | Long-term debt, net of debt issuance costs | $569,692 | $575,170 | - The Revolving Credit Facility has a capacity of **$900.0 million**, with **$829.5 million** unused as of March 31, 2024[58](index=58&type=chunk) - The company was in full compliance with all restrictive covenants under its credit agreements as of March 31, 2024[64](index=64&type=chunk) [Note 13—Goodwill and Intangible Assets, Net](index=17&type=section&id=Note%2013%E2%80%94Goodwill%20and%20Intangible%20Assets,%20Net) Goodwill slightly decreased to **$625.0 million** at March 31, 2024, due to currency translation; intangible assets, net, also decreased to **$260.9 million** | (In thousands) | Goodwill (March 31, 2024) | Intangible Assets (March 31, 2024) | | :------------- | :------------------------ | :--------------------------------- | | Balance at January 1, 2024 | $627,534 | $266,134 | | Currency translation | $(2,485) | $(773) | | Amortization expense | — | $(4,436) | | Balance at March 31, 2024 | $625,049 | $260,925 | - **Goodwill** of **$447.6 million** is related to the Americas segment and **$177.4 million** to the International segment[66](index=66&type=chunk) - Intangible assets, net, include a trade name related to Globe Manufacturing Company, LLC with an indefinite life totaling **$60.0 million**[67](index=67&type=chunk) [Note 14—Pensions and Other Post-retirement Benefits](index=18&type=section&id=Note%2014%E2%80%94Pensions%20and%20Other%20Post-retirement%20Benefits) Q1 2024 net periodic pension income increased to **$2.2 million**, driven by higher expected return on plan assets, with **$5.3 million** expected contributions for 2024 | (In thousands) | Pension Benefits (2024) | Pension Benefits (2023) | Other Benefits (2024) | Other Benefits (2023) | | :------------- | :---------------------- | :---------------------- | :-------------------- | :-------------------- | | Service cost | $2,315 | $1,884 | $44 | $53 | | Interest cost | $5,970 | $5,918 | $248 | $273 | | Expected return on plan assets | $(10,812) | $(9,906) | — | — | | Net periodic benefit (income) cost | $(2,208) | $(2,020) | $361 | $403 | - The company expects to make net contributions of **$5.3 million** to its pension plans in 2024, mainly for statutorily required plans in the International segment[69](index=69&type=chunk) [Note 15—Derivative Financial Instruments](index=18&type=section&id=Note%2015%E2%80%94Derivative%20Financial%20Instruments) The company uses foreign currency forward contracts with a **$115.0 million** notional amount to manage risk, resulting in a **$1.8 million** loss in Q1 2024 - The notional amount of open foreign currency forward contracts was **$115.0 million** at March 31, 2024[70](index=70&type=chunk) | (In thousands) | Three Months Ended March 31, 2024 | Three Months Ended March 31, 2023 | | :------------- | :-------------------------------- | :-------------------------------- | | Foreign exchange contracts: currency exchange losses, net | $1,758 | $(502) | [Note 16—Fair Value Measurements](index=19&type=section&id=Note%2016%E2%80%94Fair%20Value%20Measurements) Derivative financial instruments are Level 2; fixed rate long-term debt fair value was **$265.2 million** at March 31, 2024, below its **$304.0 million** carrying amount - Derivative financial instruments, consisting of foreign currency forward contracts, are classified within Level 2 of the fair value hierarchy[72](index=72&type=chunk) - The fair value of fixed rate long-term debt was **$265.2 million** at March 31, 2024, compared to a carrying amount of **$304.0 million**[73](index=73&type=chunk) [Note 17—Commitments and Contingencies](index=19&type=section&id=Note%2017%E2%80%94Commitments%20and%20Contingencies) Details product liability claims, including single incident and cumulative trauma, MSA LLC divestiture impact, ongoing PFAS litigation, and product warranty reserves - The reserve for single incident product liability claims was **$1.4 million** at March 31, 2024, with an expense of **$0.1 million** for Q1 2024[75](index=75&type=chunk) - The divestiture of MSA LLC on January 5, 2023, transferred all legacy cumulative trauma product liability claims and related obligations to the buyer, resulting in a tax-effected loss of **$199.6 million** in Q1 2023[77](index=77&type=chunk)[79](index=79&type=chunk) - Globe, a subsidiary, is defending **600** lawsuits comprising approximately **12,189** claims related to PFAS in firefighter turnout gear, with MSA Safety Inc or other Globe affiliates also named as defendants in some cases[81](index=81&type=chunk)[82](index=82&type=chunk) | (In thousands) | Three Months Ended March 31, 2024 | | :------------- | :-------------------------------- | | Beginning warranty reserve | $14,288 | | Warranty payments | $(2,374) | | Warranty claims | $2,141 | | Ending warranty reserve | $13,985 | [Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations](index=22&type=section&id=Item%202.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management's perspective on Q1 2024 financial performance, covering business overview, operating results, liquidity, capital resources, and critical accounting policies [BUSINESS OVERVIEW](index=22&type=section&id=BUSINESS%20OVERVIEW) MSA Safety is a global leader in advanced safety products and solutions, serving diverse markets with firefighter safety gear, detection instruments, and industrial PPE - MSA Safety is a global leader in advanced safety products, technology, and solutions, with a mission focused on safety since 1914[89](index=89&type=chunk) - Key product lines include firefighter safety gear (SCBA, protective apparel, helmets), detection (fixed gas and flame, portable gas), and industrial PPE (head protection, fall protection)[89](index=89&type=chunk) - The business is organized into three reportable segments: Americas, International, and Corporate, based on geographical operating segments[91](index=91&type=chunk) [RESULTS OF OPERATIONS](index=22&type=section&id=RESULTS%20OF%20OPERATIONS) Q1 2024 saw a strong financial rebound with **3.8%** net sales growth and a shift from operating loss to income, driven by divestiture absence and improved gross margins [Net Sales](index=22&type=section&id=Net%20Sales) Consolidated net sales increased **3.8%** to **$413.3 million** in Q1 2024, with Americas growing **5.4%** and International slightly decreasing **0.2%** | Net Sales (in millions) | Three Months Ended March 31, 2024 | Three Months Ended March 31, 2023 | Dollar Increase | Percent Increase | | :---------------------- | :-------------------------------- | :-------------------------------- | :-------------- | :--------------- | | Consolidated | $413.3 | $398.3 | $15.0 | 3.8% | | Americas | $295.5 | $280.3 | $15.2 | 5.4% | | International | $117.8 | $118.0 | $(0.2) | (0.2)% | | (Percent Change) | Americas | International | Consolidated | | :--------------- | :------- | :------------ | :----------- | | GAAP reported sales change | 5.4% | (0.2)% | 3.8% | | Constant currency sales change | 4.8% | (1.1)% | 3.1% | - Growth in the Americas was driven by firefighter safety products, while the International segment's decline was mainly in the APAC region, particularly Industrial PPE[97](index=97&type=chunk)[98](index=98&type=chunk) - The company expects mid-single digit sales growth in 2024 and anticipates backlog to normalize by year-end despite ongoing supply chain challenges[99](index=99&type=chunk) [Gross profit](index=23&type=section&id=Gross%20profit) Gross profit increased **7.8%** to **$195.5 million** in Q1 2024, with margin improving to **47.3%** due to productivity and price/cost management | Metric (in millions) | Three Months Ended March 31, 2024 | Three Months Ended March 31, 2023 | | :------------------- | :-------------------------------- | :-------------------------------- | | Gross profit | $195.5 | $181.4 | | Gross profit to net sales ratio | 47.3% | 45.5% | - The increase in gross profit and margin was primarily due to improved productivity and price/cost management[101](index=101&type=chunk) [Selling, general and administrative expenses](index=23&type=section&id=Selling,%20general%20and%20administrative%20expenses) SG&A expenses increased **3.4%** to **$94.2 million** in Q1 2024, but decreased to **22.8%** of net sales, driven by sales and inflation, offset by lower variable compensation | Metric (in millions) | Three Months Ended March 31, 2024 | Three Months Ended March 31, 2023 | | :------------------- | :-------------------------------- | :-------------------------------- | | SG&A expenses | $94.2 | $91.1 | | SG&A as % of net sales | 22.8% | 22.9% | - Constant currency SG&A increased by approximately **$2.7 million** or **3.0%**[102](index=102&type=chunk) - The increase in SG&A was driven by higher sales and inflation, partially offset by lower variable compensation[102](index=102&type=chunk) [Research and development expense](index=24&type=section&id=Research%20and%20development%20expense) R&D expense increased to **$15.9 million** in Q1 2024, representing **3.9%** of net sales, reflecting continued investment in technology-based safety solutions | Metric (in millions) | Three Months Ended March 31, 2024 | Three Months Ended March 31, 2023 | | :------------------- | :-------------------------------- | :-------------------------------- | | R&D expense | $15.9 | $15.2 | | R&D as % of net sales | 3.9% | 3.8% | - Total spend on both software development and R&D activities was **$19.3 million** in Q1 2024, up from **$18.2 million** in Q1 2023[107](index=107&type=chunk) - The company remains committed to dedicating significant resources to R&D, particularly for technology-based safety solutions[107](index=107&type=chunk) [Restructuring charges](index=24&type=section&id=Restructuring%20charges) Q1 2024 restructuring charges increased to **$3.0 million**, primarily for management restructuring and manufacturing footprint optimization initiatives - Restructuring charges were **$3.0 million** in Q1 2024, up from **$1.7 million** in Q1 2023[108](index=108&type=chunk) - Q1 2024 charges were mainly for management restructuring and cost structure/manufacturing footprint optimization[108](index=108&type=chunk) [Currency exchange](index=24&type=section&id=Currency%20exchange) Currency exchange losses decreased to **$2.3 million** in Q1 2024, primarily due to foreign currency exposure on inter-company balances and the Argentina affiliate | Metric (in millions) | Three Months Ended March 31, 2024 | Three Months Ended March 31, 2023 | | :------------------- | :-------------------------------- | :-------------------------------- | | Currency exchange losses, net | $2.3 | $4.2 | - Losses primarily relate to foreign currency exposure on unsettled inter-company balances and the Argentina affiliate[109](index=109&type=chunk) [Product liability expense](index=24&type=section&id=Product%20liability%20expense) Product liability expense was minimal in Q1 2024 and Q1 2023, attributed to the MSA LLC divestiture transferring related liabilities - Product liability expense was minimal in Q1 2024 and Q1 2023[110](index=110&type=chunk) - This is attributed to the divestiture of MSA LLC in January 2023, which transferred associated liabilities[110](index=110&type=chunk) [Loss on divestiture of MSA LLC](index=24&type=section&id=Loss%20on%20divestiture%20of%20MSA%20LLC) A **$129.2 million** pre-tax loss on MSA LLC divestiture was recorded in Q1 2023, involving derecognition of liabilities, cash contribution, and transaction costs - A **$129.2 million** pre-tax loss on divestiture of MSA LLC was recorded in Q1 2023[111](index=111&type=chunk) - The loss included derecognition of legacy cumulative trauma product liability reserves and related insurance assets, a **$341.2 million** cash contribution, and **$5.6 million** in transaction costs[111](index=111&type=chunk) [GAAP operating income](index=24&type=section&id=GAAP%20operating%20income) Q1 2024 consolidated GAAP operating income was **$80.1 million**, a significant improvement from a **$60.1 million** loss, driven by divestiture absence and Americas' performance | Metric (in millions) | Three Months Ended March 31, 2024 | Three Months Ended March 31, 2023 | | :------------------- | :-------------------------------- | :-------------------------------- | | Consolidated operating income (loss) | $80.1 | $(60.1) | - The increase in operating income was primarily due to the absence of the MSA LLC divestiture loss in the prior year and improved performance in the Americas segment[112](index=112&type=chunk) [Adjusted operating income](index=24&type=section&id=Adjusted%20operating%20income) Americas adjusted operating income increased **20.3%** to **$86.2 million**, while International decreased **14.5%** to **$13.5 million**, and Corporate loss increased to **$11.7 million** | Segment (in millions) | Adjusted Operating Income (2024) | Adjusted Operating Income (2023) | Change (%) | | :-------------------- | :------------------------------- | :------------------------------- | :--------- | | Americas | $86.2 | $71.7 | 20.3% | | International | $13.5 | $15.8 | (14.5)% | | Corporate | $(11.7) | $(10.1) | (15.8)% | - Americas' increase was driven by higher sales and gross profit, partially offset by higher SG&A[113](index=113&type=chunk) - International's decrease was primarily due to lower gross profit from unfavorable geographical mix and higher inflationary pressures[114](index=114&type=chunk) [Total other expense, net](index=25&type=section&id=Total%20other%20expense,%20net) Total other expense, net, decreased to **$4.5 million** in Q1 2024, driven by reduced interest expense from lower debt and increased pension income | Metric (in millions) | Three Months Ended March 31, 2024 | Three Months Ended March 31, 2023 | | :------------------- | :-------------------------------- | :-------------------------------- | | Total other expense, net | $4.5 | $7.7 | - The decrease was primarily due to reduced interest expense from lower debt balances and higher pension income[119](index=119&type=chunk) [Income taxes](index=26&type=section&id=Income%20taxes) Q1 2024 effective tax rate was **23.1%**, a significant change from **(121.7)%** in Q1 2023, due to prior year's non-deductible divestiture loss | Metric | Three Months Ended March 31, 2024 | Three Months Ended March 31, 2023 | | :----- | :-------------------------------- | :-------------------------------- | | Effective tax rate | 23.1% | (121.7)% | - The variance is mainly attributed to the MSA LLC divestiture and the non-deductible loss recorded in the prior year[121](index=121&type=chunk) [Net income](index=26&type=section&id=Net%20income) Q1 2024 net income was **$58.1 million** (**$1.47** diluted EPS), a substantial improvement from a **$150.2 million** net loss (**$(3.83)** diluted EPS) in Q1 2023 | Metric (in millions, except per share) | Three Months Ended March 31, 2024 | Three Months Ended March 31, 2023 | | :------------------------------------- | :-------------------------------- | :-------------------------------- | | Net income (loss) | $58.1 | $(150.2) | | Diluted EPS | $1.47 | $(3.83) | [LIQUIDITY AND CAPITAL RESOURCES](index=26&type=section&id=LIQUIDITY%20AND%20CAPITAL%20RESOURCES) Liquidity is driven by operating cash flows and borrowings, with **$148.3 million** in cash and equivalents providing flexibility for investments, dividends, and debt - Main sources of liquidity are operating cash flows, supplemented by borrowings[123](index=123&type=chunk) - As of March 31, 2024, the company had **$148.3 million** in cash and cash equivalents[124](index=124&type=chunk) - Approximately **51%** of long-term debt is at fixed interest rates, and **85%** of borrowings are denominated in U.S. dollars, limiting currency exposure[123](index=123&type=chunk) [Operating activities](index=26&type=section&id=Operating%20activities) Q1 2024 operating activities provided **$50.9 million** cash, a significant improvement from using **$285.9 million** in Q1 2023, due to the absence of the MSA LLC divestiture cash contribution | Metric (in millions) | Three Months Ended March 31, 2024 | Three Months Ended March 31, 2023 | | :------------------- | :-------------------------------- | :-------------------------------- | | Cash Flow From (Used in) Operating Activities | $50.9 | $(285.9) | - The improved cash flow was mainly due to the absence of the **$341.2 million** contribution for the MSA LLC divestiture in the prior year[125](index=125&type=chunk) [Investing activities](index=26&type=section&id=Investing%20activities) Q1 2024 investing activities used **$11.2 million** cash, an increase from **$8.4 million** in Q1 2023, primarily due to increased capital expenditures for manufacturing optimization | Metric (in millions) | Three Months Ended March 31, 2024 | Three Months Ended March 31, 2023 | | :------------------- | :-------------------------------- | :-------------------------------- | | Cash Flow Used in Investing Activities | $(11.2) | $(8.4) | - The increase in cash used was related to increased capital expenditures for manufacturing footprint optimization[126](index=126&type=chunk) [Financing activities](index=26&type=section&id=Financing%20activities) Q1 2024 financing activities used **$29.1 million** cash, a shift from providing **$272.8 million** in Q1 2023, reflecting net debt payments versus prior year's proceeds for divestiture | Metric (in millions) | Three Months Ended March 31, 2024 | Three Months Ended March 31, 2023 | | :------------------- | :-------------------------------- | :-------------------------------- | | Cash Flow (Used in) From Financing Activities | $(29.1) | $272.8 | | Net payments on long-term debt | $(5.0) | $295.4 (net proceeds) | | Cash dividends paid | $(18.5) | $(18.0) | | Company stock purchases | $(5.8) | $(3.7) | - Since the MSA LLC divestiture in January 2023, the company has paid down **$294.1 million** of outstanding borrowings[127](index=127&type=chunk) [CUMULATIVE TRANSLATION ADJUSTMENTS](index=27&type=section&id=CUMULATIVE%20TRANSLATION%20ADJUSTMENTS) U.S. dollar strengthening led to a **$10.7 million** translation loss in Q1 2024, reversing an **$11.2 million** gain in Q1 2023 | Metric (in millions) | Three Months Ended March 31, 2024 | Three Months Ended March 31, 2023 | | :------------------- | :-------------------------------- | :-------------------------------- | | Translation gain (loss) | $(10.7) | $11.2 | [COMMITMENTS AND CONTINGENCIES](index=27&type=section&id=COMMITMENTS%20AND%20CONTINGENCIES) Q1 2024 pension contributions were **$1.3 million**, with **$5.3 million** expected for 2024; outstanding bank guarantees totaled **$9.3 million** with **$2.0 million** restricted cash - Pension contributions were **$1.3 million** in Q1 2024, with **$5.3 million** expected for the full year 2024[129](index=129&type=chunk) - Outstanding bank guarantees and standby letters of credit totaled **$9.3 million** as of March 31, 2024[130](index=130&type=chunk) - The company holds **$2.0 million** in restricted cash to support these arrangements[130](index=130&type=chunk) [CRITICAL ACCOUNTING POLICIES AND ESTIMATES](index=27&type=section&id=CRITICAL%20ACCOUNTING%20POLICIES%20AND%20ESTIMATES) Financial statement preparation requires significant estimates and judgments, continuously evaluated based on historical experience and reasonable assumptions - Financial statements are prepared using U.S. GAAP, requiring estimates and judgments that affect reported amounts[132](index=132&type=chunk) - Estimates and judgments are evaluated on an ongoing basis using historical experience and reasonable assumptions[132](index=132&type=chunk) [RECENTLY ADOPTED AND RECENTLY ISSUED ACCOUNTING STANDARDS](index=27&type=section&id=RECENTLY%20ADOPTED%20AND%20RECENTLY%20ISSUED%20ACCOUNTING%20STANDARDS) No recently adopted or issued accounting standards materially affected the company's financial reporting during the period [Item 3. Quantitative and Qualitative Disclosures About Market Risk](index=28&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) Discusses market risk exposure from currency exchange and interest rates, quantifying potential impacts of hypothetical changes on sales, net income, and financial instrument fair value [Currency exchange rate sensitivity](index=28&type=section&id=Currency%20exchange%20rate%20sensitivity) Exposed to currency fluctuations, a **10%** USD change would impact Q1 2024 sales by **$15.7 million** and net income by **$2.1 million**; open forward contracts totaled **$115.0 million** - A hypothetical **10%** strengthening or weakening of the U.S. dollar would decrease or increase reported sales by approximately **$15.7 million** (**3.8%**) and net income by **$2.1 million** (**3.6%**) for Q1 2024[137](index=137&type=chunk) - As of March 31, 2024, the company had open foreign currency forward contracts with a U.S. dollar notional value of **$115.0 million**[138](index=138&type=chunk) [Interest rates](index=28&type=section&id=Interest%20rates) Exposed to interest rate changes, with **$304.0 million** fixed-rate and **$294.5 million** variable-rate debt; a **100 basis point** change impacts annual earnings by **$3.0 million** - As of March 31, 2024, the company had **$304.0 million** of fixed rate debt and **$294.5 million** of variable rate borrowings[140](index=140&type=chunk)[141](index=141&type=chunk) - A hypothetical **10%** decrease in interest rates would result in an approximate **$9.0 million** increase in the fair value of fixed rate long-term debt[140](index=140&type=chunk) - A **100 basis point** increase or decrease in interest rates would have a **$3.0 million** impact on future annual earnings[141](index=141&type=chunk) [Item 4. Controls and Procedures](index=28&type=section&id=Item%204.%20Controls%20and%20Procedures) Disclosure controls and procedures were effective as of March 31, 2024, with no material changes in internal control over financial reporting during the quarter - The company's disclosure controls and procedures were deemed effective as of March 31, 2024[143](index=143&type=chunk) - No material changes in internal control over financial reporting occurred during the most recent fiscal quarter[143](index=143&type=chunk) PART II. OTHER INFORMATION [Item 2. Unregistered Sales of Equity Securities and Use of Proceeds](index=29&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) No shares repurchased under the stock repurchase program in Q1 2024; **31,421** shares purchased for stock-based compensation at an average price of **$185.92** | Period | Total Number of Shares Purchased | Average Price Paid Per Share | | :----------- | :------------------------------- | :--------------------------- | | January 2024 | 64 | $165.03 | | February 2024 | 358 | $178.68 | | March 2024 | 30,999 | $185.92 | - No shares were repurchased under the **$100.0 million** stock repurchase program during Q1 2024[144](index=144&type=chunk) - The shares purchased during the quarter were related to stock-based compensation transactions[145](index=145&type=chunk) [Item 5. Other Information](index=29&type=section&id=Item%205.%20Other%20Information) No Rule 10b5-1 or non-Rule 10b5-1 trading arrangements were adopted or terminated by directors, officers, or the company in Q1 2024 - No Rule 10b5-1 or non-Rule 10b5-1 trading arrangements were adopted or terminated by directors, officers, or the company in Q1 2024[146](index=146&type=chunk) [Item 6. Exhibits](index=29&type=section&id=Item%206.%20Exhibits) Lists exhibits filed with Form 10-Q, including a termination agreement, CEO and CFO certifications, and XBRL interactive data files - Exhibits include a Termination Agreement, CEO and CFO certifications (Rule 13a-14(a) and 18 U.S.C. §1350), and various XBRL taxonomy documents[147](index=147&type=chunk) [SIGNATURE](index=30&type=section&id=SIGNATURE) The report was signed on April 30, 2024, by Lee B. McChesney (SVP and CFO) and Jonathan D. Buck (Chief Accounting Officer and Controller) - The report was signed on April 30, 2024, by Lee B. McChesney (SVP and CFO) and Jonathan D. Buck (Chief Accounting Officer and Controller)[151](index=151&type=chunk) ```

Financial Data and Key Metrics Changes - The company reported sales of $413 million for Q1 2024, representing a 4% increase year-over-year, with earnings growth of 18% [34][38] - Gross profit margin improved to 47.3%, up 180 basis points from the prior year, while adjusted operating margin was 21.3%, an increase of 190 basis points [38] - GAAP net income was $58 million, or $1.47 per diluted share, with adjusted diluted earnings per share at $1.61, reflecting an 18% increase [38][39] Business Line Data and Key Metrics Changes - Firefighter safety sales were strong, increasing by double digits, while detection and industrial PPE sales declined by mid-single digits [14][34] - The Americas segment saw a 5% year-over-year sales increase, driven by firefighter safety, while the International segment's growth was flat, with mid-single-digit growth in EMEA offset by declines in APAC [19][34] Market Data and Key Metrics Changes - Sales in developed markets like North America and EMEA showed solid year-over-year growth, while Latin America and APAC experienced softer sales due to contract renewal timing and a slower recovery in China [18][34] - The order pace accelerated each month in Q1, with orders up high single digits over the prior year, and a book-to-bill ratio of 1x [18][34] Company Strategy and Development Direction - The company aims to leverage its scale, brand, and customer-centric innovation to drive profitable growth, focusing on safety solutions [12][33] - MSA Safety is committed to advancing its mission of safety and enhancing customer safety programs, with a strong emphasis on innovation and market-leading products [33][34] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the resilient order trends and strong commercial pipeline, supporting a full-year outlook of mid-single-digit growth [20][40] - The company anticipates backlog normalization by the end of the year, despite ongoing supply chain challenges [20][34] Other Important Information - The company launched the Cairns 1836 Fire Helmet, receiving positive customer feedback, and introduced the FL5000 flame detector, which enhances performance and reduces false alarms [35][58] - Free cash flow for the quarter was $40 million, with a conversion rate of 62% of adjusted earnings, allowing for reinvestment and shareholder returns [39] Q&A Session Summary Question: Can you provide insights on the order pace and segment performance? - Management noted that order pace improved throughout the quarter, with industrial markets showing mixed performance, particularly in short-cycle businesses [42][48] Question: What are the expectations regarding supply chain challenges? - Supply chain conditions have improved compared to previous years, with current challenges primarily related to timing and specific product categories [50][68] Question: How is the company addressing international market growth? - Management expressed optimism about international growth, particularly in Europe and the Middle East, despite challenges in Asia, especially China [62][70]

[Financial & Operational Highlights](index=1&type=section&id=Financial%20%26%20Operational%20Highlights) MSA Safety reported a solid start to 2024, achieving a 4% year-over-year increase in net sales to $413 million for the first quarter, demonstrating robust margin expansion with adjusted operating income rising 14% to $88 million and adjusted earnings per share growing 18% to $1.61, while management reaffirmed its full-year sales growth outlook of mid-single digits - Management commentary highlighted a **solid start to 2024**, driven by strategic execution, a resilient business model, and a commitment to continuous improvement, leading to **strong growth and margin expansion**[4](index=4&type=chunk) - The company is maintaining its full-year growth outlook of **mid-single digits**, supported by a **solid start** in both sales and orders and a **strong balance sheet**[7](index=7&type=chunk) Q1 2024 Financial Highlights vs. Q1 2023 | Financial Highlights | Q1 2024 | Q1 2023 | % Change | | :--- | :--- | :--- | :--- | | Net Sales | $413M | $398M | 4% | | Adjusted Operating Income | $88M | $77M | 14% | | Adjusted Earnings | $63M | $54M | 18% | | Adjusted Diluted EPS | $1.61 | $1.36 | 18% | - Key capital allocation activities in Q1 2024 included: **$11 million** in capital expenditures, **$5 million** in debt repayment, and **$18 million** returned to shareholders via dividends[4](index=4&type=chunk) [Financial Statements](index=4&type=section&id=Financial%20Statements) The unaudited financial statements for the first quarter of 2024 show significant year-over-year improvement in profitability, with net income at $58.1 million compared to a $150.2 million net loss in the prior-year period due to a divestiture impact, while the balance sheet remains stable with total assets at $2.17 billion and operating cash flow turned positive at $50.9 million [Condensed Consolidated Statements of Operations](index=4&type=section&id=Condensed%20Consolidated%20Statements%20of%20Operations) For the three months ended March 31, 2024, net sales increased to $413.3 million from $398.3 million in 2023, with gross profit rising to $195.5 million and operating income recovering significantly to $80.1 million from a $60.1 million loss in Q1 2023, resulting in net income of $58.1 million or $1.47 per diluted share Q1 2024 vs Q1 2023 Statement of Operations (in thousands) | Metric | Q1 2024 | Q1 2023 | | :--- | :--- | :--- | | Net sales | $413,302 | $398,262 | | Gross profit | $195,531 | $181,398 | | Operating income (loss) | $80,112 | $(60,061) | | Net income (loss) | $58,139 | $(150,173) | | Diluted EPS | $1.47 | $(3.83) | [Condensed Consolidated Balance Sheets](index=5&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) As of March 31, 2024, MSA's balance sheet showed total assets of $2.174 billion, stable compared to year-end 2023, with total liabilities decreasing slightly to $1.180 billion and total shareholders' equity increasing to $994.8 million from $966.8 million, while cash and cash equivalents stood at $148.3 million Balance Sheet Summary (in thousands) | Account | March 31, 2024 | December 31, 2023 | | :--- | :--- | :--- | | Total current assets | $792,945 | $786,270 | | Total assets | $2,174,330 | $2,170,150 | | Total current liabilities | $316,526 | $332,818 | | Long-term debt, net | $569,692 | $575,170 | | Total shareholders' equity | $994,754 | $966,802 | [Condensed Consolidated Statements of Cash Flows](index=6&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) In Q1 2024, the company generated $50.9 million in cash flow from operating activities, a substantial improvement from a $285.9 million use of cash in Q1 2023, which was negatively impacted by a $341.2 million contribution on the divestiture of MSA LLC, while cash used in investing activities was $11.2 million and financing activities used $29.1 million Q1 2024 vs Q1 2023 Statement of Cash Flows (in thousands) | Cash Flow Activity | Q1 2024 | Q1 2023 | | :--- | :--- | :--- | | Cash flow from operating activities | $50,886 | $(285,909) | | Cash flow used in investing activities | $(11,219) | $(8,367) | | Cash flow (used in) from financing activities | $(29,085) | $272,771 | [Segment Information](index=7&type=section&id=Segment%20Information) In Q1 2024, the Americas segment drove performance with a 5% sales increase to $295.5 million and an adjusted operating margin of 29.2%, while the International segment's sales were nearly flat at $117.8 million with its adjusted operating margin decreasing to 11.5% from 13.4%, leading to an overall consolidated adjusted operating margin improvement to 21.3% Segment Performance Q1 2024 vs Q1 2023 (in thousands) | Segment | Net Sales Q1 2024 | Net Sales Q1 2023 | Adjusted Operating Income Q1 2024 | Adjusted Operating Income Q1 2023 | Adjusted Operating Margin % Q1 2024 | Adjusted Operating Margin % Q1 2023 | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Americas | $295,539 | $280,267 | $86,218 | $71,694 | 29.2% | 25.6% | | International | $117,763 | $117,995 | $13,486 | $15,779 | 11.5% | 13.4% | - The Americas segment includes operations in North and Latin America, while the International segment comprises all other geographies[20](index=20&type=chunk) - Management uses **non-GAAP measures** like **adjusted operating income** and **adjusted EBITDA** to evaluate segment performance and allocate resources[21](index=21&type=chunk) [Reconciliation of Non-GAAP Financial Measures](index=9&type=section&id=Reconciliation%20of%20Non-GAAP%20Financial%20Measures) This section provides reconciliations for key non-GAAP metrics to their most comparable GAAP measures, showing consolidated constant currency revenue growth of 3%, adjusted earnings increasing 18% to $63.5 million ($1.61 per diluted share), and a low leverage position with a Net Debt to Adjusted EBITDA ratio of 1.0x [Constant Currency Revenue Growth](index=9&type=section&id=Constant%20Currency%20Revenue%20Growth) For Q1 2024, consolidated constant currency sales grew by 3%, driven by 17% growth in the Firefighter Safety product line, with the Americas segment growing 5% on a constant currency basis led by a 20% increase in Firefighter Safety, while the International segment saw a 1% decline in constant currency sales Consolidated Constant Currency Sales Change by Product (Q1 2024) | Product Line | GAAP Reported Sales Change | Constant Currency Sales Change | | :--- | :--- | :--- | | Firefighter Safety | 17% | 17% | | Detection | (5)% | (5)% | | Industrial PPE and Other | (2)% | (3)% | | **Total Net Sales** | **4%** | **3%** | [Adjusted Earnings](index=10&type=section&id=Adjusted%20Earnings) Adjusted earnings for Q1 2024 were $63.5 million, an 18% increase from $53.7 million in Q1 2023, with adjusted diluted EPS also rising 18% to $1.61 from $1.36, as the reconciliation adjusts GAAP net income for items such as restructuring charges, amortization of acquisition-related intangibles, and currency exchange losses Reconciliation of Net Income to Adjusted Earnings (in thousands) | Metric | Q1 2024 | Q1 2023 | | :--- | :--- | :--- | | Net income (loss) | $58,139 | $(150,173) | | Adjustments (net) | $5,358 | $203,901 | | **Adjusted earnings** | **$63,497** | **$53,728** | [Debt to Adjusted EBITDA](index=11&type=section&id=Debt%20to%20Adjusted%20EBITDA) For the twelve months ended March 31, 2024, MSA reported an adjusted EBITDA of $460.9 million, resulting in a Debt to Adjusted EBITDA ratio of 1.3x and a Net Debt to Adjusted EBITDA ratio of 1.0x, indicating a healthy leverage position Leverage Ratios (Twelve Months Ended March 31, 2024) | Metric | Value | | :--- | :--- | | Adjusted EBITDA | $460,850 thousand | | Total end-of-period debt | $596,154 thousand | | **Debt to adjusted EBITDA** | **1.3x** | | Net debt | $447,825 thousand | | **Net debt to adjusted EBITDA** | **1.0x** | [Company Information and Disclosures](index=2&type=section&id=Company%20Information%20and%20Disclosures) MSA Safety will host an Investor Day on May 22, 2024, and participate in an investor conference on May 7, 2024, with the report including standard disclosures defining the company as a global leader in safety products with $1.8 billion in 2023 revenue, cautionary statements regarding forward-looking information, and explanations of non-GAAP financial measure reconciliations - Upcoming investor events include: Oppenheimer 19th Annual Industrial Growth Conference on May 7, 2024, and Investor Day in New York City on May 22, 2024[9](index=9&type=chunk)[11](index=11&type=chunk) - MSA Safety is a **global leader** in advanced safety products, technologies, and solutions, with 2023 revenues of **$1.8 billion** and over 5,000 employees worldwide[34](index=34&type=chunk) - The press release contains **forward-looking statements** and advises caution, directing readers to SEC filings for a discussion of **risks and uncertainties**[35](index=35&type=chunk) - The report uses **non-GAAP financial measures**, which are presented as supplemental information and are **reconciled to the most directly comparable GAAP measures** within the document[36](index=36&type=chunk)[39](index=39&type=chunk)

Healthy sales growth and robust margin expansion; Maintaining mid-single digit full year sales growth outlook PITTSBURGH, April 29, 2024 /PRNewswire/ -- Global safety equipment and solutions provider MSA Safety Incorporated (NYSE: MSA) today reported financial results for the first quarter of 2024. Quarterly Highlights Achieved quarterly net sales of $413 million, a 4% increase year-over-year. Generated GAAP operating income of $80 million, or 19.4% of sales, and adjusted operating income of $88 million, o ...