Pennsylvania | 1-15579 | 46-4914539 | ||
(State or other jurisdiction of incorporation) | (Commission File Number) | (IRS Employer Identification Number) |
1000 Cranberry Woods Drive Cranberry Township, Pennsylvania | 16066-5207 | |
(Address of principal executive offices) | (Zip Code) |
o | Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) |
o | Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) |
o | Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) |
o | Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) |
Item 2.02 | Results of Operations and Financial Condition |
Item 9.01 | Financial Statements and Exhibits |
(d) Exhibits | ||
99.1 | MSA Safety Incorporated Press Release dated April 28, 2016, announcing financial results for the quarter ended March 31, 2016. |
MSA SAFETY INCORPORATED | ||
(Registrant) | ||
By | /s/ Kenneth D. Krause | |
Kenneth D. Krause | ||
Vice President of Finance and Chief Financial Officer |
Exhibit No. | Description | |
99.1 | MSA Safety Incorporated Press Release dated April 28, 2016, announcing financial results for the quarter ended March 31, 2016. |
• | Reported revenue was $279 million, increasing 9 percent from the same period a year ago. Excluding the impact of a stronger U.S. dollar, local currency revenue increased 13 percent. The recent acquisition of UK-based fall protection company Latchways increased local currency and as reported sales by 6 percent. |
• | Local currency revenue from core product lines increased 15 percent in the quarter on robust shipping activity in SCBA to global fire service markets. Additionally, a higher level of large orders in the Middle East and Mexico drove a 34 percent increase in fixed gas and flame detection systems revenue in emerging markets, helping to offset softer energy market demand in the U.S. Gulf Coast region. |
• | Latchways quarterly revenue of $16 million reflects a 19 percent local currency increase from the same period a year ago. Net income was accretive to MSA's earnings by $1 million or $0.03 per diluted share. |
• | Excluding Latchways related costs, local currency selling, general and administrative expenses were down 5 percent on the 7 percent local currency organic revenue growth. |
• | Adjusted earnings were $18 million or $0.48 per diluted share, compared to $0.42 per diluted share in the same period a year ago. |
Three Months Ended March 31, | |||||||
2016 | 2015 | ||||||
Net sales | $ | 279,268 | $ | 256,708 | |||
Other income, net | 888 | 641 | |||||
280,156 | 257,349 | ||||||
Cost of products sold | 158,563 | 139,885 | |||||
Selling, general and administrative | 79,195 | 81,368 | |||||
Research and development | 10,363 | 10,914 | |||||
Restructuring and other charges | 470 | 731 | |||||
Interest expense | 3,902 | 2,473 | |||||
Currency exchange losses (gains), net | 1,950 | (2,548 | ) | ||||
254,443 | 232,823 | ||||||
Income from continuing operations before income taxes | 25,713 | 24,526 | |||||
Provision for income taxes | 12,511 | 15,384 | |||||
Income from continuing operations | 13,202 | 9,142 | |||||
(Loss) income from discontinued operations | (1,129 | ) | 308 | ||||
Net income | 12,073 | 9,450 | |||||
Net (income) loss attributable to noncontrolling interests | (322 | ) | 232 | ||||
Net income attributable to MSA Safety Incorporated | 11,751 | 9,682 | |||||
Amounts attributable to MSA Safety Incorporated common shareholders: | |||||||
Income from continuing operations | 12,683 | 9,316 | |||||
(Loss) income from discontinued operations | (932 | ) | 366 | ||||
Net income | 11,751 | 9,682 | |||||
Earnings per share attributable to MSA Safety Incorporated common shareholders: | |||||||
Basic | |||||||
Income from continuing operations | $ | 0.34 | $ | 0.25 | |||
(Loss) income from discontinued operations | $ | (0.03 | ) | $ | 0.01 | ||
Net income | $ | 0.31 | $ | 0.26 | |||
Diluted | |||||||
Income from continuing operations | $ | 0.34 | $ | 0.25 | |||
(Loss) income from discontinued operations | $ | (0.03 | ) | $ | 0.01 | ||
Net income | $ | 0.31 | $ | 0.26 | |||
Basic shares outstanding | 37,330 | 37,356 | |||||
Diluted shares outstanding | 37,759 | 37,849 |
Americas | International | Corporate | Consolidated | ||||||||||||
Three Months Ended March 31, 2016 | |||||||||||||||
Net sales | $ | 167,342 | $ | 111,926 | — | $ | 279,268 | ||||||||
Operating income (loss) | 31,345 | 8,408 | (8,606 | ) | 31,147 | ||||||||||
Operating margin % | 18.7 | % | 7.5 | % | 11.2 | % |
Americas | International | Corporate | Consolidated | ||||||||||||
Three Months Ended March 31, 2015 | |||||||||||||||
Net sales | $ | 158,502 | $ | 98,206 | — | $ | 256,708 | ||||||||
Operating income (loss) | 23,909 | 7,569 | (6,937 | ) | 24,541 | ||||||||||
Operating margin % | 15.1 | % | 7.7 | % | 9.6 | % |
Three Months Ended March 31, 2016 | ||||||||
Consolidated | Americas | International | ||||||
Fall Protection* | 149 | % | 13 | % | 1,430 | % | ||
Breathing Apparatus | 40 | % | 57 | % | 13 | % | ||
Fire and Rescue Helmets | 3 | % | 21 | % | (8 | )% | ||
Fixed Gas and Flame Detection | (1 | )% | (5 | )% | 5 | % | ||
Industrial Head Protection | (8 | )% | (9 | )% | (1 | )% | ||
Portable Gas Detection | (10 | )% | (7 | )% | (15 | )% | ||
Core Sales | 15 | % | 13 | % | 20 | % | ||
Core excluding Latchways | 8 | % | 11 | % | 2 | % | ||
Non-Core Sales | 3 | % | (3 | )% | 10 | % | ||
Net Sales | 13 | % | 10 | % | 18 | % | ||
Net Sales excluding Latchways | 7 | % | 9 | % | 4 | % |
Three Months Ended March 31, | |||||||||
2016 | 2015 | % Change | |||||||
Income from continuing operations attributable to MSA Safety Incorporated | 12,683 | 9,316 | 36.1% | ||||||
Nonrecurring tax charges associated with European reorganization | 3,600 | 7,605 | |||||||
Subtotal | 16,283 | 16,921 | (3.8)% | ||||||
Currency exchange losses (gains), net | 1,950 | (2,548 | ) | ||||||
Latchways integration costs | 511 | — | |||||||
Restructuring and other charges | 470 | 731 | |||||||
Asset related (gains), net | (343 | ) | — | ||||||
Self-insured legal settlements and defense costs | 20 | 86 | |||||||
Income tax (expense) benefit on adjustments | (905 | ) | 549 | ||||||
Adjusted earnings | 17,986 | 15,739 | 14.3% | ||||||
Adjusted earnings per diluted share | $ | 0.48 | $ | 0.42 | 14.3% |
Three Months Ended March 31, 2016 | ||||||||
Consolidated | Americas | International | ||||||
Local currency revenue growth, excluding Latchways | 7 | % | 9 | % | 4 | % | ||
Latchways acquisition | 6 | % | 1 | % | 14 | % | ||
Local currency revenue growth | 13 | % | 10 | % | 18 | % | ||
FX translation | (4 | )% | (4 | )% | (4 | )% | ||
GAAP reported revenue growth | 9 | % | 6 | % | 14 | % |
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