NYSE$MSA

MSA Safety Incorporated · Q3 2021 earnings

Q3 2021 earnings · · Investor relations

Briefing

MSA Safety Incorporated reported third quarter results with revenue growth driven by strength in core products and strategic acquisitions.

MSA Safety Incorporated reported a 12% increase in total revenue to $340 million, driven by core product growth and strategic acquisitions. GAAP earnings were $0.48 per diluted share, while adjusted earnings remained consistent at $0.94 per diluted share. The company's order pace strengthened, but inflationary pressures and supply chain constraints intensified.

  • Total revenue increased 12% year-over-year to $340 million, with core product revenue up 19%.
  • GAAP operating income was $29 million, or 8.5% of sales, while adjusted operating income was $51 million, or 15.0% of sales.
  • GAAP earnings were $0.48 per diluted share, and adjusted earnings were $0.94 per diluted share.
  • Operating cash flow increased to $46 million due to strong working capital management.

Headline financials

Total Revenue

$340M

Previous: $304M+11.8%
EPS (adj)

$0.94

Previous: $0.94+0.0%
Operating Margin

8.5%

No prior period
Adjusted Operating Margin

15.0%

Previous: 17.6%-14.8%
Adjusted EBITDA

$62.8M

No prior period
Capital Expenditures

-$31M

Previous: -$32.7M+5.3%
Free Cash Flow

$99.2M

Previous: $77.5M+28.0%
Net Income

$18.8M

Previous: $28M-32.9%
Operating Income

$29M

Previous: $41.1M-29.6%
Gross Profit

$146M

Previous: $132M+10.4%
Cash & Equivalents

$117M

Previous: $133M-11.7%
Total Assets

$2.26B

Previous: $1.79B+26.0%
Stock-Based Comp

$2.87M

Previous: -$1.31M+318.9%

Revenue & EPS history

MSA · Revenue · Quarterly

$340M

Q3 2021+11.8%vs Q3 2020
Beat estimate in 11 of 16 quarters(69%)
ActualEstimate

Forward guidance

MSA expects ongoing supply challenges to persist for the foreseeable future but remains confident in its ability to strengthen market positions and advance its mission of safety as business conditions continue to improve.

Tailwinds

  • Strategic acquisitions in 2021 position the company well for the future.
  • Innovative pipeline of new products and services are expected to drive growth.
  • Order pace strengthened through the third quarter and demand is intact.
  • Book-to-bill ratio was in excess of 1x and backlog is trending at record levels.
  • Integration activities are on track and Bacharach's order pace was up strongly in the quarter.

Headwinds

  • Ongoing supply challenges are expected to persist.
  • Inflationary pressures have intensified.
  • Supply chain constraints have intensified.
  • Dynamic cost environment is creating challenges.
  • Higher backlog due to supply chain issues.

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 Q3 2021

Historical avgQ3 2021

+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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