NYSE$MSA

MSA Safety Incorporated · Q1 2022 earnings

Q1 2022 earnings · · Investor relations

Briefing

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

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.

Headline financials

Total Revenue

$331M

Previous: $308M+7.2%
EPS (adj)

$1.10

Previous: $0.95+15.8%
Operating Margin

12.9%

Previous: 14.3%-9.8%
Adjusted Operating Margin

16.3%

Previous: 15.4%+5.8%
Adjusted EBITDA

$65.7M

Previous: $57.9M+13.4%
Capital Expenditures

-$7.98M

Previous: -$9.58M+16.8%
Free Cash Flow

$16.5M

Previous: $36M-54.1%
Net Income

$35.5M

Previous: $36.4M-2.4%
Operating Income

$42.7M

Previous: $44M-3.1%
Gross Profit

$143M

Previous: $135M+6.0%
Cash & Equivalents

$147M

Previous: $185M-20.3%
Total Assets

$2.42B

Previous: $1.94B+24.3%
Stock-Based Comp

$3.73M

Previous: $3.29M+13.3%

Revenue & EPS history

MSA · Revenue · Quarterly

$331M

Q1 2022+7.2%vs Q1 2021
Beat estimate in 11 of 16 quarters(69%)
ActualEstimate

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.

Tailwinds

  • 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

Headwinds

  • 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

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 20 quarterly earnings reports · overlaid with Q1 2022

Historical avgQ1 2022

+1.4%

Avg return

Earnings day

+1.0%

Avg return

5 days after

+0.8%

Avg return

30 days after

62%

42 / 68 earnings

Positive

+11.8%

Q1 2017

Best reaction

-8.5%

Q3 2013

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026-1.8%+3.0%-2.1%
Q4 2025+3.2%+2.7%-9.9%
Q3 2025+4.0%-4.1%-0.9%
Q1 2025+2.0%+0.9%+5.6%
Q4 2024+0.2%-2.0%-7.7%
Q3 2024-1.5%-1.4%+3.3%
Q2 2024-1.7%-3.4%-9.3%
Q1 2024-4.4%-2.6%-5.4%
Q4 2023+1.7%+1.9%+4.6%
Q3 2023+7.6%+6.5%+12.3%
Q2 2023+7.8%+5.6%+8.9%
Q1 2023+2.1%+3.4%+6.0%
Q4 2022+2.1%+2.7%-5.4%
Q3 2022+11.0%+13.4%+20.0%
Q2 2022-4.5%-0.6%-5.8%
Q1 2022+0.0%-2.4%+6.4%
Q4 2021+0.9%-0.5%-1.7%
Q3 2021-0.9%-4.1%-2.7%
Q2 2021+1.3%-0.4%-1.6%
Q1 2021+1.0%+2.1%+5.9%
Q4 2020-0.5%+0.2%-6.6%
Q3 2020-6.0%-3.0%+6.6%
Q2 2020+1.7%+2.3%+6.5%
Q1 2020+8.0%+8.2%+14.1%
Q4 2019-5.7%-7.9%-31.0%
Q3 2019-1.5%+3.5%+7.9%
Q2 2019-3.9%-3.2%-8.9%
Q1 2019-2.1%+2.0%-3.7%
Q4 2018+3.7%+2.4%-1.6%
Q3 2018+9.9%+7.8%+8.7%
Q2 2018+0.1%+0.9%+1.7%
Q1 2018-1.1%-2.5%+2.1%
Q4 2017+3.4%+7.7%+4.6%
Q3 2017+2.2%+0.6%-1.8%
Q2 2017-7.5%-9.4%-8.1%
Q1 2017+11.8%+7.6%+9.6%
Q4 2016+1.3%+3.5%-1.5%
Q3 2016-0.5%+2.0%+13.9%
Q2 2016-0.2%-2.9%-0.4%
Q1 2016-4.1%
Q4 2015+0.7%
Q3 2015-6.3%
Q2 2015+11.5%
Q1 2015-4.0%
Q4 2014+7.4%
Q3 2014-1.9%
Q2 2014-1.5%
Q1 2014-0.7%
Q4 2013+8.7%
Q3 2013-8.5%
Q2 2013+6.0%
Q1 2013-5.1%
Q4 2012+10.7%
Q3 2012+4.3%
Q2 2012+0.5%
Q1 2012+0.8%
Q4 2011+2.2%
Q3 2011+10.6%
Q2 2011+3.7%
Q1 2010+9.8%
Q1 2011+2.2%
Q4 2010-3.7%
Q4 2008-3.7%
Q3 2010+4.5%
Q3 2009+4.5%
Q2 2009+0.8%
Q4 2009+0.8%
Q2 2010+0.8%

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