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, or 21.3% of sales. Recorded GAAP net income of $58 million, or $1.47 per diluted share, and adjusted earnings of $63 million, or $1.61 per diluted share. Invested $11 million for capital expenditures, repaid $5 million of debt, and returned $18 million to shareholders through dividends. "We are off to a solid start in 2024, with our team executing our strategy and delivering strong growth and margin expansion," said Nish Vartanian, MSA Safety Chairman and Chief Executive Officer. "Our resilient business model driven by the diversity of our products, markets and geographies, our team's commitment to continuous improvement, and their passion for serving our customers continues to generate profitable growth and sustained value for our shareholders." Mr. Vartanian added, "Over the past several years, we have focused on building a higher-performing, stronger MSA and the opportunity in front of us is exciting. I want to thank our associates for their dedication to advancing our mission and ensuring we meet the needs of our customers around the world." Financial Highlights and Balance Sheet Financial Highlights Three Months Ended March 31, ($ millions, except per share data) 2024 2023 % Change(a) Net Sales $                 413 $                 398 4 % Operating Income (Loss) 80 (60) n/m* Adjusted Operating Income 88 77 14 % Net Income (Loss) 58 (150) n/m* Diluted EPS 1.47 (3.83) n/m* Adjusted Earnings 63 54 18 % Adjusted Diluted EPS 1.61 1.36 18 % (a) Percentage change may not calculate exactly due to rounding. * Not meaningful Lee McChesney, MSA Safety Senior Vice President and Chief Financial Officer, commented, "Our team's disciplined execution during the first quarter of the year, underpinned by the MSA Business System, resulted in 4% sales growth, robust margin expansion, and consistent cash flow performance. Taking into consideration the solid start to the year in both sales and orders while keeping a close eye on global economic trends, we are maintaining our growth outlook of mid-single digits for the full year. We believe our continued momentum and strong balance sheet position us well in 2024 and beyond." Conference Call MSA Safety will host a conference call on Tuesday, April 30, 2024 at 10:00 a.m. Eastern time to discuss its first quarter 2024 results and outlook. The call and an accompanying slide presentation will be webcast at http://investors.msasafety.com/ under the "News and Events" tab, subheading "Events & Presentations." Investors and interested parties can also dial into the call at 1-844-854-4415 (Toll Free) or 1-412-902-6599 (International). When prompted, please instruct the operator to be joined into the MSA Safety Incorporated conference call. A replay of the conference call will be available at http://investors.msasafety.com/ shortly after the conclusion of the presentation and will be available for the next 90 days. Upcoming Investor Events MSA Safety will host an Investor Day for institutional investors and financial analysts in New York City on Wednesday, May 22, 2024 at 8:30 a.m. Eastern time.  Lee McChesney, Senior Vice President and Chief Financial Officer, will present virtually at the Oppenheimer 19th Annual Industrial Growth Conference on Tuesday, May 7, 2024 at 10:30 a.m. Eastern time. A live webcast, along with the presentation materials, can be accessed on MSA Safety's Investor Relations website at http://investors.msasafety.com/ on the day of each event.  A replay of the webcast will be available on the company's Investor Relations website shortly following the conclusion of each event.   MSA Safety Incorporated Condensed Consolidated Statements of Operations (Unaudited) (In thousands, except per share amounts) Three Months Ended March 31, 2024 2023 Net sales $                          413,302 $                          398,262 Cost of products sold 217,771 216,864 Gross profit 195,531 181,398 Selling, general and administrative 94,150 91,091 Research and development 15,919 15,232 Restructuring charges 3,017 1,747 Currency exchange losses, net 2,333 4,175 Loss on divestiture of MSA LLC — 129,211 Product liability expense — 3 Operating income (loss) 80,112 (60,061) Interest expense 10,740 11,476 Other income, net (6,235) (3,800) Total other expense, net 4,505 7,676 Income (loss) before income taxes 75,607 (67,737) Provision for income taxes 17,468 82,436 Net income (loss) $                            58,139 $                        (150,173) Earnings (loss) per share attributable to common shareholders: Basic $                                1.48 $                              (3.83) Diluted $                                1.47 $                              (3.83) Basic shares outstanding 39,360 39,224 Diluted shares outstanding 39,556 39,224   MSA Safety Incorporated Condensed Consolidated Balance Sheets (Unaudited) (In thousands) March 31, 2024 December 31, 2023 Assets Cash and cash equivalents $                          148,329 $                          146,442 Trade receivables, net 279,084 294,678 Inventories 305,556 292,604 Other current assets 59,976 52,546     Total current assets 792,945 786,270 Property, plant and equipment, net 210,955 211,877 Prepaid pension cost 175,891 172,161 Goodwill 625,049 627,534 Intangible assets, net 260,925 266,134 Other noncurrent assets 108,565 106,174    Total assets $                       2,174,330 $                       2,170,150 Liabilities and shareholders' equity Notes payable and current portion of long-term debt, net $                            26,462 $                            26,522 Accounts payable 117,125