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As Of Filer Filing For·On·As Docs:Size 10/25/23 MSA Safety Inc. 10-Q 9/30/23 89:8.4M |
Document/Exhibit Description Pages Size 1: 10-Q Quarterly Report HTML 1.42M 2: EX-31.1 Certification -- §302 - SOA'02 HTML 28K 3: EX-31.2 Certification -- §302 - SOA'02 HTML 28K 4: EX-32 Certification -- §906 - SOA'02 HTML 26K 10: R1 Cover HTML 77K 11: R2 Condensed Consolidated Statements of Income HTML 105K 12: R3 Condensed Consolidated Statements of Comprehensive HTML 57K Income 13: R4 Condensed Consolidated Balance Sheets HTML 155K 14: R5 Condensed Consolidated Balance Sheets HTML 32K (Parenthetical) 15: R6 Condensed Consolidated Statements of Cash Flows HTML 123K 16: R7 Condensed Consolidated Statements of Changes in HTML 66K Retained Earnings, Accumulated Other Comprehensive Loss and Noncontrolling Interests 17: R8 Condensed Consolidated Statements of Changes in HTML 31K Retained Earnings, Accumulated Other Comprehensive Loss and Noncontrolling Interests (Parenthetical) 18: R9 Basis of Presentation HTML 28K 19: R10 Cash and Cash Equivalents HTML 32K 20: R11 Restructuring Charges HTML 51K 21: R12 Inventories HTML 33K 22: R13 Property, Plant and Equipment HTML 37K 23: R14 Reclassifications Out of Accumulated Other HTML 64K Comprehensive Loss 24: R15 Capital Stock HTML 75K 25: R16 Segment Information HTML 205K 26: R17 Earnings per Share HTML 56K 27: R18 Income Taxes HTML 31K 28: R19 Stock Plans HTML 67K 29: R20 Long-Term Debt HTML 49K 30: R21 Goodwill and Intangible Assets HTML 34K 31: R22 Pensions and Other Post-retirement Benefits HTML 63K 32: R23 Derivative Financial Instruments HTML 37K 33: R24 Fair Value Measurements HTML 31K 34: R25 Contingencies HTML 75K 35: R26 Basis of Presentation (Policies) HTML 28K 36: R27 Cash and Cash Equivalents (Tables) HTML 29K 37: R28 Restructuring Charges (Tables) HTML 48K 38: R29 Inventories (Tables) HTML 34K 39: R30 Property, Plant and Equipment (Tables) HTML 36K 40: R31 Reclassifications Out of Accumulated Other HTML 63K Comprehensive Loss (Tables) 41: R32 Capital Stock (Tables) HTML 66K 42: R33 Segment Information (Tables) HTML 201K 43: R34 Earnings per Share (Tables) HTML 55K 44: R35 Stock Plans (Tables) HTML 73K 45: R36 Long-Term Debt (Tables) HTML 37K 46: R37 Goodwill and Intangible Assets (Tables) HTML 39K 47: R38 Pensions and Other Post-retirement Benefits HTML 60K (Tables) 48: R39 Derivative Financial Instruments (Tables) HTML 38K 49: R40 Contingencies (Tables) HTML 70K 50: R41 Cash and Cash Equivalents (Details) HTML 29K 51: R42 Restructuring Charges - Additional Information HTML 40K (Details) 52: R43 Restructuring Charges - Activity and Reserve HTML 48K Balance for Restructuring Charges by Segment (Details) 53: R44 Inventories - Schedule of Inventories (Details) HTML 34K 54: R45 Property, Plant and Equipment (Details) HTML 42K 55: R46 Reclassifications Out of Accumulated Other HTML 71K Comprehensive Loss (Details) 56: R47 Capital Stock - Narrative (Details) HTML 78K 57: R48 Capital Stock - Schedule of Common Stock Activity HTML 60K (Details) 58: R49 Segment Information - Additional Information HTML 28K (Details) 59: R50 Segment Information - Schedule of Reportable HTML 70K Segment Information (Details) 60: R51 Segment Information - Percentage of Total Sales by HTML 106K Product Group (Details) 61: R52 Earnings per Share (Details) HTML 77K 62: R53 Income Taxes (Details) HTML 36K 63: R54 Stock Plans - Schedule of Stock Compensation HTML 31K Expense (Details) 64: R55 Stock Plans - Summary of Stock Option Activity HTML 47K (Details) 65: R56 Stock Plans - Summary of Restricted Stock and Unit HTML 49K Activity (Details) 66: R57 Stock Plans - Additional Information (Details) HTML 44K 67: R58 Stock Plans - Weighted Average Risk Assumptions HTML 47K (Details) 68: R59 Stock Plans - Summary of Performance Stock Unit HTML 58K Activity (Details) 69: R60 Long-Term Debt - Schedule of Debt (Details) HTML 68K 70: R61 Long-Term Debt - Additional Information (Details) HTML 133K 71: R62 Goodwill and Intangible Assets - Changes in HTML 30K Goodwill (Details) 72: R63 Goodwill and Intangible Assets - Additional HTML 38K Information (Details) 73: R64 Goodwill and Intangible Assets - Changes in HTML 32K Intangible Assets, Net of Accumulated Amortization (Details) 74: R65 Pensions and Other Post-retirement Benefits - HTML 49K Components of Net Periodic Benefit Cost (Details) 75: R66 Pensions and Other Post-retirement Benefits - HTML 30K Additional Information (Details) 76: R67 Derivative Financial Instruments - Additional HTML 28K Information (Details) 77: R68 Derivative Financial Instruments - Balance Sheet HTML 34K Location and Fair Value of Assets Associated with Derivative Financial Instruments (Details) 78: R69 Derivative Financial Instruments - Income HTML 28K Statement Location and Impact of Derivative Financial Instruments (Details) 79: R70 Fair Value Measurements (Details) HTML 39K 80: R71 Contingencies - Additional Information (Details) HTML 90K 81: R72 Contingencies - Impact of Divestiture (Details) HTML 56K 82: R73 Contingencies - Summary of Insurance Receivable HTML 33K Balances and Activity Related to Cumulative Trauma Product Liability Losses (Details) 83: R74 Contingencies - Schedule of Notes Receivable HTML 32K Balances from Insurance Companies (Details) 84: R75 Contingencies - Schedule of Product Warranty HTML 34K Liability (Details) 87: XML IDEA XML File -- Filing Summary XML 163K 85: XML XBRL Instance -- msa-20230930_htm XML 2.40M 86: EXCEL IDEA Workbook of Financial Report Info XLSX 151K 6: EX-101.CAL XBRL Calculations -- msa-20230930_cal XML 202K 7: EX-101.DEF XBRL Definitions -- msa-20230930_def XML 593K 8: EX-101.LAB XBRL Labels -- msa-20230930_lab XML 1.67M 9: EX-101.PRE XBRL Presentations -- msa-20230930_pre XML 1.00M 5: EX-101.SCH XBRL Schema -- msa-20230930 XSD 184K 88: JSON XBRL Instance as JSON Data -- MetaLinks 509± 758K 89: ZIP XBRL Zipped Folder -- 0000066570-23-000043-xbrl Zip 330K
msa-20230930 |
i Pennsylvania | i 46-4914539 | ||||||||||
(State or other jurisdiction of incorporation or organization) | (IRS Employer Identification No.) | ||||||||||
i 1000 Cranberry Woods Drive | |||||||||||
i Cranberry Township, | i Pennsylvania | i 16066-5207 | |||||||||
(Address of principal executive offices) | (Zip Code) |
i Large Accelerated Filer | x | Accelerated filer | ¨ | Non-accelerated filer | ¨ | Smaller reporting company | i ☐ | ||||||||||||||||
Emerging growth company | i ☐ |
Title of each class | Trading Symbol(s) | Name of each exchange on which is registered | ||||||
i Common Stock, no par value | i MSA | i New York Stock Exchange |
Item No. | Page | |||||||
Part I | ||||||||
1. | ||||||||
2. | ||||||||
3. | ||||||||
4. | ||||||||
Part II | ||||||||
2. | ||||||||
6. | ||||||||
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||||||||
(In thousands, except per share values) | 2023 | 2022 | 2023 | 2022 | |||||||||||||||||||
Net sales | $ | i 446,728 | $ | i 381,694 | $ | i 1,292,290 | $ | i 1,084,699 | |||||||||||||||
Cost of products sold | i 227,967 | i 212,299 | i 678,335 | i 608,120 | |||||||||||||||||||
Gross profit | i 218,761 | i 169,395 | i 613,955 | i 476,579 | |||||||||||||||||||
Selling, general and administrative | i 102,175 | i 82,753 | i 289,602 | i 247,378 | |||||||||||||||||||
Research and development | i 17,682 | i 14,416 | i 48,906 | i 43,017 | |||||||||||||||||||
Restructuring charges (Note 3) | i 3,285 | i 899 | i 8,382 | i 3,146 | |||||||||||||||||||
Currency exchange losses, net | i 1,496 | i 2,979 | i 8,781 | i 4,788 | |||||||||||||||||||
Loss on divestiture of MSA LLC (Note 17) | i — | i — | i 129,211 | i — | |||||||||||||||||||
Product liability expense (Note 17) | i — | i 4,035 | i 3 | i 9,733 | |||||||||||||||||||
Operating income | i 94,123 | i 64,313 | i 129,070 | i 168,517 | |||||||||||||||||||
Interest expense | i 12,498 | i 5,962 | i 37,149 | i 14,158 | |||||||||||||||||||
Other income, net | ( i 6,037) | ( i 2,359) | ( i 15,487) | ( i 15,121) | |||||||||||||||||||
Total other expense (income), net | i 6,461 | i 3,603 | i 21,662 | ( i 963) | |||||||||||||||||||
Income before income taxes | i 87,662 | i 60,710 | i 107,408 | i 169,480 | |||||||||||||||||||
Provision for income taxes (Note 10) | i 22,406 | i 15,804 | i 125,235 | i 41,339 | |||||||||||||||||||
Net income (loss) | $ | i 65,256 | $ | i 44,906 | $ | ( i 17,827) | $ | i 128,141 | |||||||||||||||
Earnings (loss) per share attributable to common shareholders (Note 9): | |||||||||||||||||||||||
Basic | $ | i 1.66 | $ | i 1.15 | $ | ( i 0.46) | $ | i 3.26 | |||||||||||||||
Diluted | $ | i 1.65 | $ | i 1.14 | $ | ( i 0.46) | $ | i 3.25 | |||||||||||||||
Dividends per common share | $ | i 0.47 | $ | i 0.46 | $ | i 1.40 | $ | i 1.36 |
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||||||||
(In thousands) | 2023 | 2022 | 2023 | 2022 | |||||||||||||||||||
Net income (loss) | $ | i 65,256 | $ | i 44,906 | $ | ( i 17,827) | $ | i 128,141 | |||||||||||||||
Other comprehensive gains (losses), net of tax: | |||||||||||||||||||||||
Foreign currency translation adjustments (Note 6) | ( i 18,771) | ( i 32,361) | ( i 2,538) | ( i 58,075) | |||||||||||||||||||
Pension and post-retirement plan actuarial gains, net of tax (Note 6) | i 188 | i 2,299 | i 742 | i 6,893 | |||||||||||||||||||
Unrealized gain (loss) on available-for-sale securities (Note 6) | i — | i 13 | i 2 | ( i 5) | |||||||||||||||||||
Reclassifications of currency translation from accumulated other comprehensive loss into net income (Note 6) | i 101 | i 2,912 | i 101 | i 2,912 | |||||||||||||||||||
Total other comprehensive loss, net of tax | ( i 18,482) | ( i 27,137) | ( i 1,693) | ( i 48,275) | |||||||||||||||||||
Comprehensive income (loss) | $ | i 46,774 | $ | i 17,769 | $ | ( i 19,520) | $ | i 79,866 | |||||||||||||||
(In thousands) | September 30, 2023 | December 31, 2022 | ||||||||||||
Assets | ||||||||||||||
Cash and cash equivalents | $ | i 164,499 | $ | i 162,902 | ||||||||||
Trade
receivables, less allowance for credit loss of $ i 7,262 and $ i 6,769 | i 294,907 | i 297,028 | ||||||||||||
Inventories (Note 4) | i 324,077 | i 338,316 | ||||||||||||
Investments, short-term (Note 16) | i — | i 9,905 | ||||||||||||
Prepaid income taxes | i 29,379 | i 21,700 | ||||||||||||
Notes receivable, insurance companies (Note 17) | i — | i 5,931 | ||||||||||||
Prepaid expenses and other current assets | i 38,957 | i 44,344 | ||||||||||||
Total
current assets | i 851,819 | i 880,126 | ||||||||||||
Property, plant and equipment, net (Note 5) | i 205,650 | i 207,552 | ||||||||||||
Operating lease right-of-use assets, net | i 49,125 | i 44,142 | ||||||||||||
Prepaid pension cost (Note 14) | i 151,400 | i 141,643 | ||||||||||||
Deferred tax assets (Note 10) | i 25,966 | i 25,490 | ||||||||||||
Goodwill (Note 13) | i 620,343 | i 620,622 | ||||||||||||
Intangible assets, net (Note 13) | i 268,321 | i 281,853 | ||||||||||||
Notes receivable, insurance companies (Note 17) | i — | i 38,695 | ||||||||||||
Insurance receivables (Note 17) and other noncurrent assets | i 21,711 | i 136,853 | ||||||||||||
Total
assets | $ | i 2,194,335 | $ | i 2,376,976 | ||||||||||
Liabilities | ||||||||||||||
Notes payable and current portion of long-term debt (Note 12) | $ | i 26,198 | $ | i 7,387 | ||||||||||
Accounts payable | i 108,554 | i 112,532 | ||||||||||||
Employees’ compensation | i 58,821 | i 45,077 | ||||||||||||
Insurance and product liability (Note 17) | i 9,551 | i 73,898 | ||||||||||||
Income taxes payable (Note 10) | i 28,205 | i 6,149 | ||||||||||||
Accrued restructuring (Note 3) and other current liabilities | i 94,072 | i 100,822 | ||||||||||||
Total
current liabilities | i 325,401 | i 345,865 | ||||||||||||
Long-term debt, net (Note 12) | i 715,814 | i 565,445 | ||||||||||||
Pensions and other employee benefits (Note 14) | i 137,563 | i 137,810 | ||||||||||||
Noncurrent operating lease liabilities | i 40,913 | i 35,345 | ||||||||||||
Deferred tax liabilities (Note 10) | i 102,155 | i 31,881 | ||||||||||||
Product liability (Note 17) and other noncurrent liabilities | i 3,763 | i 336,889 | ||||||||||||
Total
liabilities | $ | i 1,325,609 | $ | i 1,453,235 | ||||||||||
Equity | ||||||||||||||
Preferred
stock, i i 4.5 / % cumulative, $ i i 50 /
par value (Note 7) | $ | i 3,569 | $ | i 3,569 | ||||||||||
Common
stock, no par value (Note 7) | i 303,417 | i 281,980 | ||||||||||||
Treasury shares, at cost (Note 7) | ( i 363,371) | ( i 361,438) | ||||||||||||
Accumulated other comprehensive loss (Note 6) | ( i 160,410) | ( i 158,717) | ||||||||||||
Retained earnings | i 1,085,521 | i 1,158,347 | ||||||||||||
Total
shareholders’ equity | i 868,726 | i 923,741 | ||||||||||||
Total
liabilities and shareholders’ equity | $ | i 2,194,335 | $ | i 2,376,976 |
Nine Months Ended September 30, | |||||||||||
(In thousands) | 2023 | 2022 | |||||||||
Operating Activities | |||||||||||
Net (loss) income | $ | ( i 17,827) | $ | i 128,141 | |||||||
Depreciation and amortization | i 44,965 | i 41,883 | |||||||||
Tax-effected loss on divestiture of MSA LLC (Note 17) | i 199,578 | i — | |||||||||
Stock-based compensation (Note 11) | i 21,506 | i 11,325 | |||||||||
Pension income (Note 14) | ( i 6,060) | ( i 7,956) | |||||||||
Deferred income tax benefit (Note 10) | ( i 531) | ( i 2,451) | |||||||||
(Gain) loss on asset dispositions, net | ( i 671) | i 4,776 | |||||||||
Pension contributions (Note 14) | ( i 4,274) | ( i 5,743) | |||||||||
Currency exchange losses, net | i 8,781 | i 4,788 | |||||||||
Product liability expense (Note 17) | i 3 | i 9,733 | |||||||||
Collections
on insurance receivables and notes receivable, insurance companies (Note 17) | i — | i 9,510 | |||||||||
Product liability payments (Note 17) | ( i 5,250) | ( i 9,076) | |||||||||
Contribution on divestiture of MSA LLC (Note 17) | ( i 341,186) | i — | |||||||||
Changes in: | |||||||||||
Trade receivables | ( i 7,449) | i 1,958 | |||||||||
Inventories (Note 4) | i 15,386 | ( i 86,599) | |||||||||
Accounts payable | ( i 4,225) | i 2,629 | |||||||||
Other current assets and liabilities | i 26,518 | i 270 | |||||||||
Other noncurrent assets and liabilities | i 4,679 | i 715 | |||||||||
Cash Flow (Used in) From Operating Activities | ( i 66,057) | i 103,903 | |||||||||
Investing Activities | |||||||||||
Capital expenditures | ( i 30,979) | ( i 28,753) | |||||||||
Proceeds from maturities of short-term investments (Note 16) | i — | i 94,000 | |||||||||
Purchase of short-term investments (Note 16) | i — | ( i 69,680) | |||||||||
Property disposals and other investing | i 2,690 | i 38 | |||||||||
Cash Flow Used in Investing Activities | ( i 28,289) | ( i 4,395) | |||||||||
Financing Activities | |||||||||||
Proceeds from long-term debt (Note 12) | i 1,507,000 | i 798,000 | |||||||||
Payments on long-term debt (Note 12) | ( i 1,338,352) | ( i 771,000) | |||||||||
Debt issuance costs | ( i 1,138) | i — | |||||||||
Cash dividends paid | ( i 54,999) | ( i 53,447) | |||||||||
Company stock purchases (Note 7) | ( i 3,941) | ( i 34,365) | |||||||||
Exercise of stock options (Note 7) | i 1,440 | i 4,163 | |||||||||
Employee stock purchase plan (Note 7) | i 497 | i 486 | |||||||||
Cash Flow From (Used in) Financing Activities | i 110,507 | ( i 56,163) | |||||||||
Effect of exchange rate changes on cash, cash equivalents and restricted cash | ( i 14,152) | ( i 23,498) | |||||||||
Increase in cash, cash equivalents and restricted cash | i 2,009 | i 19,847 | |||||||||
Beginning cash, cash equivalents and restricted cash | i 164,428 | i 141,438 | |||||||||
Ending cash, cash equivalents and restricted cash | $ | i 166,437 | $ | i 161,285 | |||||||
Supplemental cash flow information: | |||||||||||
Cash and cash equivalents | $ | i 164,499 | $ | i 159,613 | |||||||
Restricted cash included in prepaid expenses and other current assets | i 1,938 | i 1,672 | |||||||||
Total cash, cash equivalents and restricted cash | $ | i 166,437 | $ | i 161,285 |
(In thousands, except per share values) | Retained Earnings | Accumulated Other Comprehensive (Loss) | |||||||||||||||
Balances June 30, 2022 | $ | i 1,098,048 | $ | ( i 170,278) | |||||||||||||
Net income | i 44,906 | — | |||||||||||||||
Foreign currency translation adjustments | — | ( i 32,361) | |||||||||||||||
Pension
and post-retirement plan adjustments, net of tax benefit of $ i 981 | — | i 2,299 | |||||||||||||||
Unrealized net losses on available-for-sale securities (Note 16) | — | i 13 | |||||||||||||||
Reclassification from accumulated other comprehensive loss into net income | — | i 2,912 | |||||||||||||||
Common
dividends ($ i 0.46 per share) | ( i 18,036) | — | |||||||||||||||
Preferred
dividends ($ i 0.5625 per share) | ( i 10) | — | |||||||||||||||
Balances September 30, 2022 | $ | i 1,124,908 | $ | ( i 197,415) | |||||||||||||
Balances June 30, 2023 | $ | i 1,038,750 | $ | ( i 141,928) | |||||||||||||
Net income | i 65,256 | — | |||||||||||||||
Foreign currency translation adjustments | — | ( i 18,771) | |||||||||||||||
Pension
and post-retirement plan adjustments, net of tax expense of $ i 27 | — | i 188 | |||||||||||||||
Reclassification from accumulated other comprehensive loss into net income (Note 6) | — | i 101 | |||||||||||||||
Common
dividends ($ i 0.47 per share) | ( i 18,475) | — | |||||||||||||||
Preferred
dividends ($ i 0.5625 per share) | ( i 10) | — | |||||||||||||||
Balances September 30, 2023 | $ | i 1,085,521 | $ | ( i 160,410) | |||||||||||||
Balances December 31, 2021 | $ | i 1,050,214 | $ | ( i 149,140) | |||||||||||||
Net income | i 128,141 | — | |||||||||||||||
Foreign currency translation adjustments | — | ( i 58,075) | |||||||||||||||
Pension
and post-retirement plan adjustments, net of tax benefit of $ i 2,947 | — | i 6,893 | |||||||||||||||
Unrecognized net losses on available-for-sale securities (Note 16) | — | ( i 5) | |||||||||||||||
Reclassification from accumulated other comprehensive loss into net income (Note 6) | — | i 2,912 | |||||||||||||||
Common
dividends ($ i 1.36 per share) | ( i 53,417) | — | |||||||||||||||
Preferred
dividends ($ i 1.6875 per share) | ( i 30) | — | |||||||||||||||
Balances September 30, 2022 | $ | i 1,124,908 | $ | ( i 197,415) | |||||||||||||
Balances December 31, 2022 | $ | i 1,158,347 | $ | ( i 158,717) | |||||||||||||
Net loss | ( i 17,827) | — | |||||||||||||||
Foreign currency translation adjustments | — | ( i 2,538) | |||||||||||||||
Pension
and post-retirement plan adjustments, net of tax expense of $ i 259 | — | i 742 | |||||||||||||||
Unrecognized net gains on available-for-sale securities (Note 16) | — | i 2 | |||||||||||||||
Reclassification from accumulated other comprehensive loss into net income (Note 6) | — | i 101 | |||||||||||||||
Common
dividends ($ i 1.40 per share) | ( i 54,969) | — | |||||||||||||||
Preferred
dividends ($ i 1.6875 per share) | ( i 30) | — | |||||||||||||||
Balances September 30, 2023 | $ | i 1,085,521 | $ | ( i 160,410) |
(In thousands) | September 30, 2023 | |||||||
Gross cash pool position | $ | i 103,618 | ||||||
Less: cash pool borrowings | i 95,416 | |||||||
Net cash pool position | $ | i 8,202 |
(In millions) | Americas | International | Corporate | Total | |||||||||||||||||||
Reserve balances at December 31, 2021 | $ | i 3.3 | $ | i 17.4 | $ | i 0.3 | $ | i 21.0 | |||||||||||||||
Restructuring charges | i 2.3 | i 5.1 | i 0.6 | i 8.0 | |||||||||||||||||||
Currency translation | i 0.1 | ( i 1.3) | i — | ( i 1.2) | |||||||||||||||||||
Cash payments / utilization | ( i 4.0) | ( i 8.4) | ( i 0.4) | ( i 12.8) | |||||||||||||||||||
Reserve balances at December 31, 2022 | $ | i 1.7 | $ | i 12.8 | $ | i 0.5 | $ | i 15.0 | |||||||||||||||
Restructuring charges | i 2.7 | i 3.6 | i 2.1 | i 8.4 | |||||||||||||||||||
Currency translation | ( i 0.2) | ( i 0.2) | i — | ( i 0.4) | |||||||||||||||||||
Cash payments | ( i 3.2) | ( i 6.5) | ( i 2.3) | ( i 12.0) | |||||||||||||||||||
Reserve balances at September 30, 2023 | $ | i 1.0 | $ | i 9.7 | $ | i 0.3 | $ | i 11.0 |
(In thousands) | September 30, 2023 | December 31, 2022 | ||||||||||||
Finished products | $ | i 99,588 | $ | i 97,142 | ||||||||||
Work in process | i 22,904 | i 16,360 | ||||||||||||
Raw materials and supplies | i 201,585 | i 224,814 | ||||||||||||
Total inventories | $ | i 324,077 | $ | i 338,316 |
(In thousands) | September 30, 2023 | December 31, 2022 | |||||||||
Land | $ | i 4,253 | $ | i 4,884 | |||||||
Buildings | i 135,544 | i 138,618 | |||||||||
Machinery and equipment | i 481,614 | i 466,394 | |||||||||
Construction in progress | i 26,202 | i 22,097 | |||||||||
Total | i 647,613 | i 631,993 | |||||||||
Less: accumulated depreciation | ( i 441,963) | ( i 424,441) | |||||||||
Property, plant and equipment, net | $ | i 205,650 | $ | i 207,552 |
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||||||||
(In thousands) | 2023 | 2022 | 2023 | 2022 | |||||||||||||||||||
Pension and other post-retirement benefits (a) | |||||||||||||||||||||||
Balance at beginning of period | $ | ( i 49,781) | $ | ( i 52,702) | $ | ( i 50,335) | $ | ( i 57,296) | |||||||||||||||
Amounts reclassified from accumulated other comprehensive loss into net income (loss): | |||||||||||||||||||||||
Amortization of prior service credit (Note 14) | ( i 24) | ( i 48) | ( i 72) | ( i 144) | |||||||||||||||||||
Recognized net actuarial losses (Note 14) | i 185 | i 3,328 | i 555 | i 9,984 | |||||||||||||||||||
Tax expense (benefit) | i 27 | ( i 981) | i 259 | ( i 2,947) | |||||||||||||||||||
Total amount reclassified from accumulated other comprehensive loss, net of tax, into net income (loss) | i 188 | i 2,299 | i 742 | i 6,893 | |||||||||||||||||||
Balance at end of period | $ | ( i 49,593) | $ | ( i 50,403) | $ | ( i 49,593) | $ | ( i 50,403) | |||||||||||||||
Available-for-sale securities | |||||||||||||||||||||||
Balance at beginning of period | $ | i — | $ | ( i 23) | $ | ( i 2) | $ | ( i 5) | |||||||||||||||
Unrealized net gains (losses) on available-for-sale securities (Note 16) | i — | i 13 | i 2 | ( i 5) | |||||||||||||||||||
Balance at end of period | $ | i — | $ | ( i 10) | $ | i — | $ | ( i 10) | |||||||||||||||
Foreign currency translation | |||||||||||||||||||||||
Balance at beginning of period | $ | ( i 92,147) | $ | ( i 117,553) | $ | ( i 108,380) | $ | ( i 91,839) | |||||||||||||||
Reclassification
from accumulated other comprehensive loss into net income (loss)(b) | i 101 | i 2,912 | i 101 | i 2,912 | |||||||||||||||||||
Foreign currency translation adjustments | ( i 18,771) | ( i 32,361) | ( i i 2,538 / ) | ( i i 58,075 / ) | |||||||||||||||||||
Balance at end of period | $ | ( i 110,817) | $ | ( i 147,002) | $ | ( i 110,817) | $ | ( i 147,002) | |||||||||||||||
(a)
Reclassifications out of accumulated other comprehensive loss and into net income (loss) are included in the computation of net periodic pension and other post-retirement benefit costs (refer to Note 14—Pensions and Other Post-retirement Benefits). (b) Reclassifications out of accumulated other comprehensive loss and into net income (loss) relate primarily to the approval of our plan to close a foreign subsidiary. |
Three Months Ended September 30, 2023 | Three Months Ended September 30, 2022 | ||||||||||||||||||||||
(In thousands) | Common Stock | Treasury Cost(a) | Common Stock | Treasury Cost(a) | |||||||||||||||||||
Balance at beginning of period | $ | i 294,364 | $ | ( i 362,025) | $ | i 267,645 | $ | ( i 359,314) | |||||||||||||||
Stock compensation expense | i 8,477 | i — | i 2,967 | i — | |||||||||||||||||||
Restricted and performance stock awards | ( i 15) | i 15 | ( i 103) | i 103 | |||||||||||||||||||
Stock options exercised | i 591 | i 307 | i 2,501 | i 1,364 | |||||||||||||||||||
Treasury shares purchased for stock compensation programs | i — | ( i 70) | i — | ( i 59) | |||||||||||||||||||
Share repurchase program | i — | i — | i — | ( i 2,150) | |||||||||||||||||||
Balance at end of period | $ | i 303,417 | $ | ( i 361,773) | $ | i 273,010 | $ | ( i 360,056) | |||||||||||||||
(a)Excludes
treasury cost related to preferred stock. |
Nine Months Ended September 30, 2023 | Nine Months Ended September 30, 2022 | ||||||||||||||||||||||
(In thousands) | Common Stock | Treasury Cost(a) | Common Stock | Treasury Cost(a) | |||||||||||||||||||
Balance at beginning of period | $ | i 281,980 | $ | ( i 359,838) | $ | i 260,121 | $ | ( i 328,776) | |||||||||||||||
Stock compensation expense | i 21,506 | i — | i 11,325 | i — | |||||||||||||||||||
Restricted and performance stock awards | ( i 1,449) | i 1,449 | ( i 1,564) | i 1,564 | |||||||||||||||||||
Stock options exercised | i 948 | i 492 | i 2,704 | i 1,459 | |||||||||||||||||||
Treasury shares purchased for stock compensation programs | i — | ( i 3,941) | i — | ( i 3,990) | |||||||||||||||||||
Employee stock purchase program | i 432 | i 65 | i 424 | i 62 | |||||||||||||||||||
Share repurchase program | i — | i — | i — | ( i 30,375) | |||||||||||||||||||
Balance at end of period | $ | i 303,417 | $ | ( i 361,773) | $ | i 273,010 | $ | ( i 360,056) | |||||||||||||||
(a)Excludes
treasury cost related to preferred stock. |
(In thousands, except percentages) | Americas | International | Corporate | Consolidated Totals | ||||||||||||||||||||||||||||
Three Months Ended September 30, 2023 | ||||||||||||||||||||||||||||||||
Net sales to external customers | $ | i 314,273 | $ | i 132,455 | $ | i — | $ | i 446,728 | ||||||||||||||||||||||||
Operating income | i 94,123 | |||||||||||||||||||||||||||||||
Restructuring charges (Note 3) | i 3,285 | |||||||||||||||||||||||||||||||
Currency exchange losses, net | i 1,496 | |||||||||||||||||||||||||||||||
Amortization of acquisition-related intangible assets | i 2,315 | |||||||||||||||||||||||||||||||
Transaction costs(a) | i 78 | |||||||||||||||||||||||||||||||
Adjusted operating income (loss) | i 93,918 | i 22,577 | ( i 15,198) | i 101,297 | ||||||||||||||||||||||||||||
Adjusted operating margin % | i 29.9 | % | i 17.0 | % | ||||||||||||||||||||||||||||
Depreciation and amortization | i 13,189 | |||||||||||||||||||||||||||||||
Adjusted EBITDA | i 103,157 | i 26,289 | ( i 14,960) | i 114,486 | ||||||||||||||||||||||||||||
Adjusted EBITDA margin % | i 32.8 | % | i 19.8 | % | ||||||||||||||||||||||||||||
Three Months Ended September 30, 2022 | ||||||||||||||||||||||||||||||||
Net sales to external customers | $ | i 276,082 | $ | i 105,612 | $ | i — | $ | i 381,694 | ||||||||||||||||||||||||
Operating income | i 64,313 | |||||||||||||||||||||||||||||||
Restructuring charges (Note 3) | i 899 | |||||||||||||||||||||||||||||||
Currency exchange losses, net | i 2,979 | |||||||||||||||||||||||||||||||
Product liability expense (Note 17) | i 4,035 | |||||||||||||||||||||||||||||||
Amortization of acquisition-related intangible assets | i 2,279 | |||||||||||||||||||||||||||||||
Transaction costs(a) | i 620 | |||||||||||||||||||||||||||||||
Adjusted operating income (loss) | i 75,088 | i 8,448 | ( i 8,411) | i 75,125 | ||||||||||||||||||||||||||||
Adjusted operating margin % | i 27.2 | % | i 8.0 | % | ||||||||||||||||||||||||||||
Depreciation and amortization | i 11,518 | |||||||||||||||||||||||||||||||
Adjusted EBITDA | i 83,945 | i 10,980 | ( i 8,282) | i 86,643 | ||||||||||||||||||||||||||||
Adjusted EBITDA margin % | i 30.4 | % | i 10.4 | % | ||||||||||||||||||||||||||||
(a)
Transaction costs include advisory, legal, accounting, valuation, and other professional or consulting fees incurred during acquisitions and divestitures. These costs are included in Selling, general and administrative expense in the unaudited Condensed Consolidated Statements of Operations. | ||||||||||||||||||||||||||||||||
(In thousands, except percentages) | Americas | International | Corporate | Consolidated Totals | ||||||||||||||||||||||||||||
Nine Months Ended September 30, 2023 | ||||||||||||||||||||||||||||||||
Net sales to external customers | $ | i 902,918 | $ | i 389,372 | $ | i — | $ | i 1,292,290 | ||||||||||||||||||||||||
Operating income | i 129,070 | |||||||||||||||||||||||||||||||
Restructuring charges (Note 3) | i 8,382 | |||||||||||||||||||||||||||||||
Currency exchange losses, net | i 8,781 | |||||||||||||||||||||||||||||||
Loss on divestiture of MSA LLC (Note 17) | i 129,211 | |||||||||||||||||||||||||||||||
Product liability expense (Note 17) | i 3 | |||||||||||||||||||||||||||||||
Amortization of acquisition-related intangible assets | i 6,936 | |||||||||||||||||||||||||||||||
Transaction
costs(a) | i 78 | |||||||||||||||||||||||||||||||
Adjusted operating income (loss) | i 260,428 | i 60,099 | ( i 38,066) | i 282,461 | ||||||||||||||||||||||||||||
Adjusted operating margin % | i 28.8 | % | i 15.4 | % | ||||||||||||||||||||||||||||
Depreciation and amortization | i 38,029 | |||||||||||||||||||||||||||||||
Adjusted EBITDA | i 287,628 | i 70,296 | ( i 37,434) | i 320,490 | ||||||||||||||||||||||||||||
Adjusted EBITDA margin % | i 31.9 | % | i 18.1 | % | ||||||||||||||||||||||||||||
Nine Months Ended September 30, 2022 | ||||||||||||||||||||||||||||||||
Net sales to external customers | $ | i 754,116 | $ | i 330,583 | $ | i — | $ | i 1,084,699 | ||||||||||||||||||||||||
Operating income | i 168,517 | |||||||||||||||||||||||||||||||
Restructuring charges (Note 3) | i 3,146 | |||||||||||||||||||||||||||||||
Currency exchange losses, net | i 4,788 | |||||||||||||||||||||||||||||||
Product liability expense (Note 17) | i 9,733 | |||||||||||||||||||||||||||||||
Amortization of acquisition-related intangible assets | i 6,922 | |||||||||||||||||||||||||||||||
Transaction costs(a) | i 1,476 | |||||||||||||||||||||||||||||||
Adjusted operating income (loss) | i 184,664 | i 34,674 | ( i 24,756) | i 194,582 | ||||||||||||||||||||||||||||
Adjusted operating margin % | i 24.5 | % | i 10.5 | % | ||||||||||||||||||||||||||||
Depreciation and amortization | i 34,961 | |||||||||||||||||||||||||||||||
Adjusted EBITDA | i 210,201 | i 43,708 | ( i 24,366) | i 229,543 | ||||||||||||||||||||||||||||
Adjusted EBITDA margin % | i 27.9 | % | i 13.2 | % | ||||||||||||||||||||||||||||
(a)
Transaction costs include advisory, legal, accounting, valuation, and other professional or consulting fees incurred during acquisitions and divestitures. These costs are included in Selling, general and administrative expense in the unaudited Condensed Consolidated Statements of Operations. | ||||||||||||||||||||||||||||||||
Three Months Ended September 30, 2023 | Consolidated | Americas | International | |||||||||||||||||||||||
(In thousands, except percentages) | Dollars | Percent | Dollars | Percent | Dollars | Percent | ||||||||||||||||||||
Fixed Gas & Flame Detection | $ | i 112,012 | i 25% | $ | i 73,074 | i 23% | $ | i 38,938 | i 29% | |||||||||||||||||
Breathing Apparatus | i 111,024 | i 25% | i 79,908 | i 25% | i 31,116 | i 24% | ||||||||||||||||||||
Firefighter Helmets & Protective Apparel | i 64,707 | i 15% | i 51,608 | i 16% | i 13,099 | i 10% | ||||||||||||||||||||
Portable Gas Detection | i 43,682 | i 10% | i 31,933 | i 10% | i 11,749 | i 9% | ||||||||||||||||||||
Industrial Head Protection | i 45,780 | i 10% | i 36,402 | i 12% | i 9,378 | i 7% | ||||||||||||||||||||
Fall Protection | i 31,980 | i 7% | i 20,235 | i 7% | i 11,745 | i 9% | ||||||||||||||||||||
Other | i 37,543 | i 8% | i 21,113 | i 7% | i 16,430 | i 12% | ||||||||||||||||||||
Total | $ | i 446,728 | i 100% | $ | i 314,273 | i 100% | $ | i 132,455 | i 100% | |||||||||||||||||
Three Months Ended September 30, 2022 | Consolidated | Americas | International | |||||||||||||||||||||||
(In thousands, except percentages) | Dollars | Percent | Dollars | Percent | Dollars | Percent | ||||||||||||||||||||
Fixed Gas & Flame Detection | $ | i 87,746 | i 23% | $ | i 62,134 | i 23% | $ | i 25,612 | i 24% | |||||||||||||||||
Breathing Apparatus | i 91,977 | i 24% | i 70,482 | i 26% | i 21,495 | i 20% | ||||||||||||||||||||
Firefighter Helmets & Protective Apparel | i 54,738 | i 14% | i 41,958 | i 15% | i 12,780 | i 12% | ||||||||||||||||||||
Portable Gas Detection | i 39,481 | i 10% | i 28,358 | i 10% | i 11,123 | i 11% | ||||||||||||||||||||
Industrial Head Protection | i 43,608 | i 11% | i 34,620 | i 13% | i 8,988 | i 9% | ||||||||||||||||||||
Fall Protection | i 27,839 | i 7% | i 17,658 | i 6% | i 10,181 | i 10% | ||||||||||||||||||||
Other | i 36,305 | i 11% | i 20,872 | i 7% | i 15,433 | i 14% | ||||||||||||||||||||
Total | $ | i 381,694 | i 100% | $ | i 276,082 | i 100% | $ | i 105,612 | i 100% | |||||||||||||||||
Nine Months Ended September 30, 2023 | Consolidated | Americas | International | |||||||||||||||||||||||
(In thousands, except percentages) | Dollars | Percent | Dollars | Percent | Dollars | Percent | ||||||||||||||||||||
Fixed Gas & Flame Detection | $ | i 311,502 | i 24% | $ | i 200,604 | i 22% | $ | i 110,898 | i 28% | |||||||||||||||||
Breathing Apparatus | i 288,976 | i 22% | i 201,945 | i 22% | i 87,031 | i 22% | ||||||||||||||||||||
Firefighter Helmets & Protective Apparel | i 192,634 | i 15% | i 152,784 | i 17% | i 39,850 | i 10% | ||||||||||||||||||||
Portable Gas Detection | i 149,036 | i 12% | i 108,088 | i 12% | i 40,948 | i 11% | ||||||||||||||||||||
Industrial Head Protection | i 135,851 | i 11% | i 106,120 | i 12% | i 29,731 | i 8% | ||||||||||||||||||||
Fall Protection | i 97,019 | i 7% | i 63,168 | i 7% | i 33,851 | i 9% | ||||||||||||||||||||
Other | i 117,272 | i 9% | i 70,209 | i 8% | i 47,063 | i 12% | ||||||||||||||||||||
Total | $ | i 1,292,290 | i 100% | $ | i 902,918 | i 100% | $ | i 389,372 | i 100% | |||||||||||||||||
Nine Months Ended September 30, 2022 | Consolidated | Americas | International | |||||||||||||||||||||||
(In thousands, except percentages) | Dollars | Percent | Dollars | Percent | Dollars | Percent | ||||||||||||||||||||
Fixed Gas & Flame Detection | $ | i 251,321 | i 23% | $ | i 167,269 | i 22% | $ | i 84,052 | i 25% | |||||||||||||||||
Breathing Apparatus | i 254,878 | i 23% | i 185,490 | i 25% | i 69,388 | i 21% | ||||||||||||||||||||
Firefighter Helmets & Protective Apparel | i 151,097 | i 14% | i 110,471 | i 15% | i 40,626 | i 12% | ||||||||||||||||||||
Portable Gas Detection | i 121,116 | i 11% | i 85,815 | i 11% | i 35,301 | i 11% | ||||||||||||||||||||
Industrial Head Protection | i 123,489 | i 11% | i 96,808 | i 13% | i 26,681 | i 8% | ||||||||||||||||||||
Fall Protection | i 79,114 | i 7% | i 50,940 | i 7% | i 28,174 | i 9% | ||||||||||||||||||||
Other | i 103,684 | i 11% | i 57,323 | i 7% | i 46,361 | i 14% | ||||||||||||||||||||
Total | $ | i 1,084,699 | i 100% | $ | i 754,116 | i 100% | $ | i 330,583 | i 100% |
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||||||||||||
(In thousands, except per share values) | 2023 | 2022 | 2023 | 2022 | ||||||||||||||||||||||
Net income (loss) | $ | i 65,256 | $ | i 44,906 | $ | ( i 17,827) | $ | i 128,141 | ||||||||||||||||||
Preferred stock dividends | ( i 10) | ( i 10) | ( i 30) | ( i 30) | ||||||||||||||||||||||
Net income (loss) attributable to common equity | i 65,246 | i 44,896 | ( i 17,857) | i 128,111 | ||||||||||||||||||||||
Dividends and undistributed earnings allocated to participating securities | ( i 8) | ( i 8) | ( i 16) | ( i 21) | ||||||||||||||||||||||
Net income (loss) attributable to common shareholders | i 65,238 | i 44,888 | ( i 17,873) | i 128,090 | ||||||||||||||||||||||
Basic weighted-average shares outstanding | i 39,303 | i 39,172 | i 39,267 | i 39,243 | ||||||||||||||||||||||
Stock-based
compensation awards (a) | i 147 | i 127 | i — | i 171 | ||||||||||||||||||||||
Diluted weighted-average shares outstanding | i 39,450 | i 39,299 | i 39,267 | i 39,414 | ||||||||||||||||||||||
Antidilutive shares | i — | i — | i 154 | i — | ||||||||||||||||||||||
Earnings (loss) per share: | ||||||||||||||||||||||||||
Basic | $ | i 1.66 | $ | i 1.15 | $ | ( i 0.46) | $ | i 3.26 | ||||||||||||||||||
Diluted | $ | i 1.65 | $ | i 1.14 | $ | ( i 0.46) | $ | i 3.25 | ||||||||||||||||||
(a)
During periods in which the Company incurs a net loss, stock-based compensation awards are excluded from the computation of diluted earnings per share because their effect would be anti-dilutive. As such, during periods in which the Company incurs a net loss, diluted weighted-average shares outstanding are equivalent to basic weighted-average shares outstanding. |
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||||||||
(In thousands) | 2023 | 2022 | 2023 | 2022 | |||||||||||||||||||
Stock compensation expense | $ | i 8,477 | $ | i 2,967 | $ | i 21,506 | $ | i 11,325 | |||||||||||||||
Income tax benefit | i 2,077 | i 727 | i 5,269 | i 2,775 | |||||||||||||||||||
Stock compensation expense, net of tax | $ | i 6,400 | $ | i 2,240 | $ | i 16,237 | $ | i 8,550 |
Shares | Weighted
Average Exercise Price | ||||||||||
Outstanding at January 1, 2023 | i 58,156 | $ | i 46.48 | ||||||||
Exercised | ( i 30,735) | i 46.86 | |||||||||
Forfeited | ( i 226) | i 49.44 | |||||||||
Outstanding and exercisable at September 30, 2023 | i i 27,195 / | $ | i i 46.02 / | ||||||||
Shares | Weighted
Average Grant Date Fair Value | ||||||||||
Unvested at January 1, 2023 | i 145,886 | $ | i 137.36 | ||||||||
Granted | i 74,004 | i 140.37 | |||||||||
Vested | ( i 39,895) | i 124.51 | |||||||||
Forfeited | ( i 8,463) | i 141.17 | |||||||||
Unvested at September 30, 2023 | i 171,532 | $ | i 141.66 |
Fair value per unit | $ i 131.46 | |||||||||||||
Risk-free interest rate | i 4.4% | |||||||||||||
Expected dividend yield | i 1.43% | |||||||||||||
Expected volatility | i 36.7% | |||||||||||||
MSA stock beta | i 0.739 | |||||||||||||
Shares | Weighted
Average Grant Date Fair Value | ||||||||||
Unvested at January 1, 2023 | i 178,760 | $ | i 146.28 | ||||||||
Granted | i 77,654 | i 132.39 | |||||||||
Performance
adjustments(a) | ( i 3,009) | i 127.40 | |||||||||
Vested | ( i 53,407) | i 127.36 | |||||||||
Forfeited | ( i 10,146) | i 147.83 | |||||||||
Unvested at September 30, 2023 | i 189,852 | $ | i 146.14 | ||||||||
(a)Performance
adjustments relate primarily to the final number of shares issued for the 2020 performance unit awards which vested in the first quarter of 2023 at i 94.9% of the target award based on both cumulative performance against EBITDA margin and revenue growth targets and MSA's TSR during the three-year performance period. |
(In thousands) | September 30, 2023 | December 31, 2022 | |||||||||
2016 Senior Notes payable through 2031, i 3.40%, net of debt issuance costs | $ | i 59,489 | $ | i 66,379 | |||||||
2021
Senior Notes payable through 2036, i 2.69%, net of debt issuance costs | i 99,723 | i 99,711 | |||||||||
2021
Senior Notes payable through 2036, i 2.69%, net of debt issuance costs | i 99,723 | i 99,711 | |||||||||
2023 Term Loan credit agreement maturing in 2026, net of debt issuance costs | i 236,788 | i — | |||||||||
2023
Senior Notes payable through 2028, i 5.25%, net of debt issuance costs | i 49,936 | i — | |||||||||
Senior revolving credit facility maturing in 2026, net of debt issuance costs | i 196,353 | i 307,031 | |||||||||
Total | i 742,012 | i 572,832 | |||||||||
Amounts due within one year | i 26,198 | i 7,387 | |||||||||
Long-term debt, net of debt issuance costs | $ | i 715,814 | $ | i 565,445 |
(In thousands) | Goodwill | ||||
Balance at January 1, 2023 | $ | i 620,622 | |||
Currency translation | ( i 279) | ||||
Balance at September 30, 2023 | $ | i 620,343 |
(In thousands) | Intangible Assets | ||||
Net balance at January 1, 2023 | $ | i 281,853 | |||
Amortization expense | ( i 13,570) | ||||
Currency translation | i 38 | ||||
Net balance at September 30, 2023 | $ | i 268,321 |
Pension Benefits | Other Benefits | |||||||||||||||||||||||||
(In thousands) | 2023 | 2022 | 2023 | 2022 | ||||||||||||||||||||||
Three Months Ended September 30, | ||||||||||||||||||||||||||
Service cost | $ | i 1,884 | $ | i 3,099 | $ | i 53 | $ | i 82 | ||||||||||||||||||
Interest cost | i 5,918 | i 3,613 | i 273 | i 148 | ||||||||||||||||||||||
Expected return on plan assets | ( i 9,906) | ( i 12,418) | i — | i — | ||||||||||||||||||||||
Amortization of prior service cost (credit) | i 37 | i 36 | ( i 61) | ( i 84) | ||||||||||||||||||||||
Recognized net actuarial losses | i 47 | i 3,018 | i 138 | i 310 | ||||||||||||||||||||||
Net
periodic benefit (income) cost (a) | $ | ( i 2,020) | $ | ( i 2,652) | $ | i 403 | $ | i 456 | ||||||||||||||||||
Nine Months Ended September 30, | ||||||||||||||||||||||||||
Service cost | $ | i 5,652 | $ | i 9,297 | $ | i 159 | $ | i 246 | ||||||||||||||||||
Interest cost | i 17,754 | i 10,839 | i 819 | i 444 | ||||||||||||||||||||||
Expected return on plan assets | ( i 29,718) | ( i 37,254) | i — | i — | ||||||||||||||||||||||
Amortization of prior service cost (credit) | i 111 | i 108 | ( i 183) | ( i 252) | ||||||||||||||||||||||
Recognized net actuarial losses | i 141 | i 9,054 | i 414 | i 930 | ||||||||||||||||||||||
Net
periodic benefit (income) cost (a) | $ | ( i 6,060) | $ | ( i 7,956) | $ | i 1,209 | $ | i 1,368 | ||||||||||||||||||
(a)
Components of net periodic benefit (income) cost other than service cost are included in the line item Other income, net, and service costs are included in the line items Cost of products sold and Selling, general and administrative in the unaudited Condensed Consolidated Statements of Operations. |
(In thousands) | September 30, 2023 | December 31, 2022 | ||||||||||||
Derivatives not designated as hedging instruments: | ||||||||||||||
Foreign exchange contracts: prepaid expenses and other current assets | $ | i 21 | $ | i 724 | ||||||||||
Foreign exchange contracts: accrued restructuring and other current liabilities | i 1,610 | i 85 |
Nine Months Ended September 30, | ||||||||||||||
(In thousands) | 2023 | 2022 | ||||||||||||
Derivatives not designated as hedging instruments: | ||||||||||||||
Foreign exchange contracts: currency exchange losses, net | $ | i 2,986 | $ | i 13,586 |
(In millions) | Three Months Ended March 31, 2023 | ||||
Cash and cash equivalents | $ | ( i 341.2) | |||
Current insurance receivables | ( i 17.3) | ||||
Notes receivable, insurance companies | ( i 5.9) | ||||
Noncurrent insurance receivables | ( i 110.3) | ||||
Notes receivable, insurance companies, noncurrent | ( i 38.7) | ||||
Current product liability | i 65.1 | ||||
Noncurrent product liability | i 324.7 | ||||
Loss on divestiture of MSA LLC before transaction costs | ( i 123.6) | ||||
Transaction costs | ( i 5.6) | ||||
Loss on divestiture of MSA LLC | ( i 129.2) | ||||
Income tax expense (a) | ( i 70.4) | ||||
Tax-effected loss on divestiture of MSA LLC | $ | ( i 199.6) | |||
(a) Related to the write-off of deferred tax asset related to product liability reserve |
(In millions) | Nine Months Ended September 30, 2023 | Year Ended December 31, 2022 | ||||||||||||
Balance beginning of period | $ | i 127.6 | $ | i 130.2 | ||||||||||
Divestiture of MSA LLC | ( i 127.6) | i — | ||||||||||||
Additions | i — | i 1.8 | ||||||||||||
Collections and other adjustments | i — | ( i 4.4) | ||||||||||||
Balance end of period | $ | i — | $ | i 127.6 |
(In millions) | Nine Months Ended September 30, 2023 | Year Ended December 31, 2022 | ||||||||||||
Balance beginning of period | $ | i 44.6 | $ | i 48.5 | ||||||||||
Divestiture of MSA LLC | ( i 44.6) | i — | ||||||||||||
Additions | i — | i 1.2 | ||||||||||||
Collections | i — | ( i 5.1) | ||||||||||||
Balance end of period | $ | i — | $ | i 44.6 |
(In thousands) | Nine Months Ended September 30, 2023 | Year Ended December 31, 2022 | ||||||||||||
Beginning warranty reserve | $ | i 15,230 | $ | i 12,423 | ||||||||||
Warranty payments | ( i 7,364) | ( i 10,631) | ||||||||||||
Warranty claims | i 6,832 | i 14,544 | ||||||||||||
Provision for product warranties and other adjustments | ( i 91) | ( i 1,106) | ||||||||||||
Ending warranty reserve | $ | i 14,607 | $ | i 15,230 |
Item 2. | Management’s Discussion and Analysis of Financial Condition and Results of Operations |
Net Sales | Three Months Ended September 30, | Dollar Increase | Percent Increase | ||||||||||||||||||||
(In millions) | 2023 | 2022 | |||||||||||||||||||||
Consolidated | $446.7 | $381.7 | $65.0 | 17.0% | |||||||||||||||||||
Americas | 314.3 | 276.1 | 38.2 | 13.8% | |||||||||||||||||||
International | 132.4 | 105.6 | 26.8 | 25.4% |
Net Sales | Three Months Ended September 30, 2023 versus September 30, 2022 | ||||||||||
(Percent Change) | Americas | International | Consolidated | ||||||||
GAAP reported sales change | 13.8% | 25.4% | 17.0% | ||||||||
Currency translation effects | (1.5)% | (4.7)% | (2.3)% | ||||||||
Constant currency sales change | 12.3% | 20.7% | 14.7% | ||||||||
Selling, general, and administrative expenses | Three Months Ended September 30, 2023 versus September 30, 2022 | ||||
(Percent Change) | Consolidated | ||||
GAAP reported change | 23.5% | ||||
Currency translation effects | (2.3)% | ||||
Constant currency change | 21.2% | ||||
Adjusted operating income (loss) | Three Months Ended September 30, 2023 | |||||||||||||
(In thousands) | Americas | International | Corporate | Consolidated | ||||||||||
Net sales | $ | 314,273 | $ | 132,455 | $ | — | $ | 446,728 | ||||||
GAAP operating income | 94,123 | |||||||||||||
Restructuring charges (Note 3) | 3,285 | |||||||||||||
Currency exchange losses, net | 1,496 | |||||||||||||
Amortization of acquisition-related intangible assets | 2,315 | |||||||||||||
Transaction
costs(a) | 78 | |||||||||||||
Adjusted operating income (loss) | 93,918 | 22,577 | (15,198) | 101,297 | ||||||||||
Adjusted operating margin % | 29.9 | % | 17.0 | % | ||||||||||
Depreciation and amortization | 13,189 | |||||||||||||
Adjusted EBITDA | 103,157 | 26,289 | (14,960) | 114,486 | ||||||||||
Adjusted EBITDA margin % | 32.8 | % | 19.8 | % |
Adjusted operating income (loss) | Three Months Ended September 30, 2022 | |||||||||||||
(In thousands) | Americas | International | Corporate | Consolidated | ||||||||||
Net sales | $ | 276,082 | $ | 105,612 | $ | — | $ | 381,694 | ||||||
GAAP operating income | 64,313 | |||||||||||||
Restructuring charges (Note 3) | 899 | |||||||||||||
Currency exchange losses, net | 2,979 | |||||||||||||
Product liability expense (Note 17) | 4,035 | |||||||||||||
Amortization of acquisition-related intangible assets | 2,279 | |||||||||||||
Transaction costs(a) | 620 | |||||||||||||
Adjusted operating income (loss) | 75,088 | 8,448 | (8,411) | 75,125 | ||||||||||
Adjusted operating margin % | 27.2 | % | 8.0 | % | ||||||||||
Depreciation and amortization | 11,518 | |||||||||||||
Adjusted EBITDA | 83,945 | 10,980 | (8,282) | 86,643 | ||||||||||
Adjusted EBITDA margin % | 30.4 | % | 10.4 | % | ||||||||||
(a) Transaction costs include advisory, legal, accounting, valuation, and other professional or consulting fees incurred during acquisitions and divestitures. These costs are included in selling, general and administrative expense in the unaudited Condensed Consolidated Statements of Operations. | ||||||||||||||
Note: Adjusted operating income (loss) and adjusted EBITDA are non-GAAP financial measures. Adjusted operating income (loss) is reconciled above to the nearest GAAP financial measure, Operating income (loss), and excludes restructuring,
currency exchange, product liability expense, loss on divestiture of MSA LLC, transaction costs and acquisition-related amortization. Adjusted EBITDA is reconciled above to the nearest GAAP financial measure, Operating income (loss) and excludes depreciation and amortization expense. |
Net Sales | Nine Months Ended September 30, | Dollar Increase | Percent Increase | ||||||||||||||||||||
(In millions) | 2023 | 2022 | |||||||||||||||||||||
Consolidated | $1,292.3 | $1,084.7 | $207.6 | 19.1% | |||||||||||||||||||
Americas | 902.9 | 754.1 | 148.8 | 19.7% | |||||||||||||||||||
International | 389.4 | 330.6 | 58.8 | 17.8% |
Net Sales | Nine Months Ended September 30, 2023 versus September 30, 2022 | ||||||||||
(Percent Change) | Americas | International | Consolidated | ||||||||
GAAP reported sales change | 19.7% | 17.8% | 19.1% | ||||||||
Currency translation effects | (0.9)% | 0.5% | (0.5)% | ||||||||
Constant currency sales change | 18.8% | 18.3% | 18.6% | ||||||||
Selling, general, and administrative expenses | Nine Months Ended September 30, 2023 versus September 30, 2022 | ||||
(Percent Change) | Consolidated | ||||
GAAP reported change | 17.1% | ||||
Currency translation effects | (0.3)% | ||||
Constant currency change | 16.8% | ||||
Adjusted operating income (loss) | Nine Months Ended September 30, 2023 | |||||||||||||
(In thousands) | Americas | International | Corporate | Consolidated | ||||||||||
Net sales | $ | 902,918 | $ | 389,372 | $ | — | $ | 1,292,290 | ||||||
GAAP operating income | 129,070 | |||||||||||||
Restructuring charges (Note 3) | 8,382 | |||||||||||||
Currency exchange losses, net | 8,781 | |||||||||||||
Loss on divestiture of MSA LLC (Note 17) | 129,211 | |||||||||||||
Product liability expense (Note 17) | 3 | |||||||||||||
Amortization of acquisition-related intangible assets | 6,936 | |||||||||||||
Transaction costs(a) | 78 | |||||||||||||
Adjusted operating income (loss) | 260,428 | 60,099 | (38,066) | 282,461 | ||||||||||
Adjusted operating margin % | 28.8 | % | 15.4 | % | ||||||||||
Depreciation and amortization(a) | 38,029 | |||||||||||||
Adjusted EBITDA | 287,628 | 70,296 | (37,434) | 320,490 | ||||||||||
Adjusted EBITDA margin % | 31.9 | % | 18.1 | % |
Adjusted operating income (loss) | Nine Months Ended September 30, 2022 | |||||||||||||
(In thousands) | Americas | International | Corporate | Consolidated | ||||||||||
Net sales | $ | 754,116 | $ | 330,583 | $ | — | $ | 1,084,699 | ||||||
GAAP operating income | 168,517 | |||||||||||||
Restructuring charges (Note 3) | 3,146 | |||||||||||||
Currency exchange losses, net | 4,788 | |||||||||||||
Product liability expense (Note 17) | 9,733 | |||||||||||||
Amortization of acquisition-related intangible assets | 6,922 | |||||||||||||
Transaction costs(a) | 1,476 | |||||||||||||
Adjusted operating income (loss) | 184,664 | 34,674 | (24,756) | 194,582 | ||||||||||
Adjusted operating margin % | 24.5 | % | 10.5 | % | ||||||||||
Depreciation and amortization(a) | 34,961 | |||||||||||||
Adjusted EBITDA | 210,201 | 43,708 | (24,366) | 229,543 | ||||||||||
Adjusted EBITDA margin % | 27.9 | % | 13.2 | % | ||||||||||
(a) Transaction costs include advisory, legal, accounting, valuation, and other professional or consulting fees incurred during acquisitions and divestitures. These costs are included in selling, general and administrative expense in the unaudited Condensed Consolidated Statements of Operations. | ||||||||||||||
Note: Adjusted operating income (loss) and adjusted EBITDA are non-GAAP financial measures. Adjusted operating income (loss) is reconciled above to the nearest GAAP financial measure, Operating income (loss), and excludes restructuring,
currency exchange, product liability expense, loss on divestiture of MSA LLC, transaction costs and acquisition-related amortization. Adjusted EBITDA is reconciled above to the nearest GAAP financial measure, Operating income (loss) and excludes depreciation and amortization expense. |
Item 3. | Quantitative and Qualitative Disclosures About Market Risk |
Item 4. | Controls and Procedures |
Item 2. | Unregistered Sales of Equity Securities and Use of Proceeds |
Period | Total Number of Shares Purchased | Average Price Paid Per Share | Total Number of Shares Purchased As Part of Publicly Announced Plans or Programs | Maximum Number of Shares That May Yet Be Purchased Under the Plans or Programs | ||||||||||||||||||||||
July 2023 | 63 | $ | 157.39 | — | 164,334 | |||||||||||||||||||||
August 2023 | 332 | 177.63 | — | 149,329 | ||||||||||||||||||||||
September 2023 | — | — | — | 173,038 |
Item 6. | Exhibits |
MSA SAFETY INCORPORATED | ||||||||
October 25, 2023 | /s/ Lee B. McChesney | |||||||
Lee B. McChesney | ||||||||
Senior Vice President and Chief Financial Officer | ||||||||
/s/ Jonathan D. Buck | ||||||||
Jonathan D. Buck | ||||||||
Chief Accounting Officer and Controller (Principal Accounting Officer) | ||||||||
This ‘10-Q’ Filing | Date | Other Filings | ||
---|---|---|---|---|
7/1/36 | ||||
1/22/31 | ||||
7/1/28 | ||||
7/1/27 | ||||
5/24/26 | ||||
1/22/24 | ||||
Filed on: | 10/25/23 | |||
10/20/23 | ||||
For Period end: | 9/30/23 | |||
6/30/23 | 10-Q | |||
6/29/23 | 8-K | |||
3/31/23 | 10-Q | |||
1/5/23 | 8-K | |||
1/1/23 | ||||
12/31/22 | 10-K, ARS, SD | |||
9/30/22 | 10-Q | |||
6/30/22 | 10-Q | |||
12/31/21 | 10-K, 11-K, SD | |||
7/1/21 | 3, 8-K, 8-K/A | |||
5/24/21 | 4, 8-K | |||
List all Filings |