UNITED
STATES
SECURITIES
AND EXCHANGE COMMISSION
Washington,
D.C. 20549
FORM
8-K
CURRENT
REPORT
Pursuant
to Section 13 OR 15(d) of the Securities Exchange Act of 1934
Date of
Report (Date of earliest event reported): October 27, 2015
ALBANY
INTERNATIONAL CORP.
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(Exact
name of registrant as specified in its charter)
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Delaware
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1-10026
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14-0462060
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(State or other jurisdiction
of incorporation)
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(Commission
File Number)
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(I.R.S Employer
Identification No.)
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216 Airport Drive, Rochester, New Hampshire
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03867
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(Address
of principal executive offices)
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(Zip
Code)
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Registrant’s
telephone number, including area code (518) 445-2200
None
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(Former name or former address, if changed since last report.)
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Check the
appropriate box below if the Form 8-K filing is intended to
simultaneously satisfy the filing obligation of the registrant under any
of the following provisions:
⃞
Written
communications pursuant to Rule 425 under the Securities Act (17 CFR
230.425)
⃞
Soliciting
material pursuant to Rule 14a-12 under the Exchange Act (17 CFR
240.14a-12)
⃞
Pre-commencement
communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR
240.14d-2(b))
⃞
Pre-commencement
communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR
240.13e-4(c))
Item 2.02.
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Results of Operations and Financial Condition.
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On October 27, 2015, Albany International issued a news release
reporting third-quarter 2015 financial results. The Company will host
a webcast to discuss earnings at 9:00 a.m. Eastern Time on Wednesday,
October 28. Copies of the news release and management’s related earnings
call slide presentation are furnished as Exhibits 99.1 and 99.2,
respectively, to this report.
Item 9.01.
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Financial Statements and Exhibits.
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(d)
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Exhibits. The following exhibit is being furnished herewith:
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99.1 News release dated October 27, 2015 reporting
third-quarter 2015 financial results.
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99.2 Albany International Corp. third-quarter 2015 Earnings
Call Slide Presentation.
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Signature
Pursuant to
the requirements of the Securities Exchange Act of 1934, the registrant
has duly caused this report to be signed on its behalf by the
undersigned hereunto duly authorized.
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ALBANY INTERNATIONAL CORP.
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By:
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/s/ John B. Cozzolino
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Name: John B. Cozzolino
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Title: Chief Financial Officer and Treasurer
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(Principal Financial Officer)
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Date:
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October 27, 2015
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EXHIBIT INDEX
Exhibit No.
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Description
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99.1
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News release dated October 27, 2015 reporting third-quarter 2015
financial results.
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99.2
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Albany International Corp. third-quarter 2015 Earnings Call Slide
Presentation.
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Exhibit 99.1
Albany
International Reports Third-Quarter Results
Third-Quarter
Financial Highlights
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Net
sales were $178.8 million, a decrease of 0.6% compared to Q3 2014.
Excluding currency effects, net sales increased 4.7% (see Table 1).
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Adjusted
EBITDA was $42.0 million, compared to $33.5 million in Q3 2014 (see
Tables 6 and 7).
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Q3 2015
income attributable to the Company was $0.30 per share, compared to
$0.37 in Q3 2014. Excluding adjustments (see Table 15), income
attributable to the Company was $0.47 per share, compared to $0.31 in
Q3 2014.
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Year-to-date
net sales were $532.4 million, a decrease of 3.8%. Excluding currency
effects, year-to-date net sales increased 1.9% compared to 2014 (see
Table 8).
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Including
a $14.0 million charge in Q2 related to an AEC contract, year-to-date
Adjusted EBITDA was $102.3 million in 2015, compared to $108.5 million
in 2014 (see Tables 9 and 10).
ROCHESTER, N.H.--(BUSINESS WIRE)--October 27, 2015--Albany International
Corp. (NYSE:AIN) reported that Q3 2015 income attributable to the
Company was $9.7 million, including net charges of $3.9 million for
income tax adjustments. Income attributable to the Company in Q3 2014
was $11.8 million, including net charges of $0.3 million for income tax
adjustments.
Q3 2015 income before income taxes was $21.9 million, including
restructuring charges of $3.7 million and gains of $1.0 million from
foreign currency revaluation. Q3 2014 income before income taxes was
$18.5 million, including restructuring charges of $0.9 million, and
gains of $4.1 million from foreign currency revaluation and $0.2 million
from an insurance recovery.
Table 1 summarizes net sales and the effect of changes in currency
translation rates:
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Table 1
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Net Sales Three Months ended September,
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Percent
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Impact of Changes in Currency Translation
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Percent Change excluding Currency
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(in thousands)
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2015
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2014
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Change
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Rates
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Rate Effect
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Machine Clothing (MC)
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$154,522
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$157,891
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-2
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.1%
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($9,364
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)
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3
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.8%
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Albany Engineered Composites (AEC)
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24,267
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21,970
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10
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.5%
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(166
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11
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.2%
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Total
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$178,789
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$179,861
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-0
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.6%
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($9,530
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4
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.7%
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Changes in currency translation rates, driven mainly by the stronger
U.S. dollar, resulted in a $9.5 million decline in sales . Excluding
that effect, MC sales were up 3.8% compared to Q3 2014, principally due
to global strength in the packaging and pulp grades, which offset
declines in publication grades. Excluding currency translation effects,
AEC sales increased 11.2% due to growth in the LEAP program.
Q3 2015 gross profit was $75.7 million, or 42.4% of net sales, compared
to $68.6 million, or 38.2% of net sales, in the same period of 2014. MC
gross profit improved to $74.7 million, or 48.4% of net sales, compared
to $66.1 million, or 41.9% of net sales, in Q3 2014, reflecting very
good capacity utilization and strong sales volume. Even though changes
in currency translation rates had a significant effect on MC net sales,
they had only a minor negative effect on gross profit. AEC gross profit
was $1.4 million in Q3 2015, compared to $2.9 million in Q3 2014, as
gross profit from the LEAP program was offset by continued weak
profitability in legacy programs.
Selling, technical, general, and research (STG&R) expenses were $46.2
million, or 25.8% of net sales, in the third quarter of 2015, compared
to $48.5 million, or 27.0% of net sales, in the third quarter of 2014.
The revaluation of nonfunctional-currency assets and liabilities
resulted in third-quarter gains of $2.0 million in 2015 and $2.2 million
in 2014. The decrease in STG&R compared to 2014 was mostly due to
changes in currency translation rates.
The following table presents expenses associated with internally funded
research and development by segment:
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Table 2
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Research and development
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expenses by segment
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Three Months ended
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September 30,
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(in thousands)
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2015
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2014
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Machine Clothing
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$4,775
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$4,510
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Albany Engineered Composites
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2,769
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3,593
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Corporate expenses
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190
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159
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Total
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$7,734
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$8,262
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The following table summarizes third-quarter operating income by segment:
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Table 3
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Operating Income/(loss)
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Three Months ended
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September 30,
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(in thousands)
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2015
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2014
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Machine Clothing
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$41,956
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$33,308
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Albany Engineered Composites
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(4,191
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(2,765
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Corporate expenses
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(11,922
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(11,385
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Total
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$25,843
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$19,158
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Segment operating income was affected by restructuring and currency
revaluation as shown in Table 4 below. Q3 2015 restructuring charges
included a noncash charge of $3.2 million for a write-down in the value
of our former manufacturing building in Germany which is being held for
sale.
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Table 4
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Expenses/(gain) in Q3 2015
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Expenses/(gain) in Q3 2014
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resulting from
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resulting from
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(in thousands)
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Restructuring
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Revaluation
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Restructuring
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Revaluation
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Machine Clothing
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$3,717
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($2,005
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$968
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($2,308
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Albany Engineered Composites
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-
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-
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(49
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135
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Corporate expenses
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4
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-
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1
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Total
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$3,717
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($2,001
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$919
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($2,172
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Q3 2015 Other income/expense, net, was expense of $1.2 million,
including losses related to the revaluation of nonfunctional-currency
balances of $1.0 million. Q3 2014 Other income/expense, net, was income
of $1.9 million, including gains related to the revaluation of
nonfunctional-currency balances of $1.9 million, and an
insurance-recovery gain of $0.2 million.
The following table summarizes currency revaluation effects on certain
financial metrics:
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Table 5
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Income/(loss) attributable
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to currency revaluation
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Three Months ended
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September 30,
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(in thousands)
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2015
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2014
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Operating income
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$2,001
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$2,172
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Other income/(expense), net
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(953
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1,916
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Total
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$1,048
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$4,088
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The Company’s income tax rate, excluding tax adjustments, was 38.0% for
Q3 2015, compared to 34.9% for the same period of 2014. The higher tax
rate in Q3 2015 was due primarily to the impact of restructuring charges
in Germany, where the Company is unable to record a tax benefit related
to the expense. In addition, the Company recorded net discrete tax
charges of $4.9 million, principally related to changes in the expected
outcome of a tax appeal in Germany to recover prepaid taxes; this was
partially offset by a $1.0 million income tax reduction due to a
decrease in the estimated tax rate. Discrete tax charges and the effect
of a change in the estimated tax rate increased income tax expense by
$0.3 million for the third quarter of 2014.
The following tables summarize Adjusted EBITDA:
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Table 6
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Three Months ended September 30, 2015
(in thousands)
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Machine Clothing
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Albany Engineered Composites
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Corporate expenses and other
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Total Company
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Net income
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$41,956
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($4,191
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($28,085
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$9,680
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Interest expense, net
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-
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-
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2,671
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2,671
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Income tax expense
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-
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-
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12,243
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12,243
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Depreciation and amortization
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9,660
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2,981
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2,102
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14,743
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EBITDA
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51,616
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(1,210
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(11,069
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39,337
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Restructuring expenses, net
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3,717
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-
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-
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3,717
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Foreign currency revaluation (gains)/losses
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(2,005
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-
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957
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(1,048
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Pretax income attributable to noncontrolling interest in ASC
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-
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(25
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-
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(25
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Adjusted EBITDA
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$53,328
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($1,235
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($10,112
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$41,981
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Table 7
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Three Months ended September 30, 2014
(in thousands)
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Machine Clothing
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Albany Engineered Composites
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Corporate expenses and other
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Total Company
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Net income
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$33,308
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($2,765
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($18,769
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$11,774
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Interest expense, net
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-
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-
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2,486
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2,486
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Income tax expense
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-
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-
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6,762
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6,762
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Depreciation and amortization
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11,060
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2,607
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2,069
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15,736
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EBITDA
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44,368
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(158
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(7,452
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36,758
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Restructuring and other, net
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968
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(49
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-
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919
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Foreign currency revaluation (gains)/losses
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(2,308
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135
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(1,915
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(4,088
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Gain on insurance recovery
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-
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-
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(165
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(165
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Pretax loss attributable to noncontrolling interest in ASC
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-
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77
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-
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77
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Adjusted EBITDA
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$43,028
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$5
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($9,532
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)
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$33,501
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Capital spending was $9.3 million for Q3 2015, compared to $18.9 million
for Q3 2014. Depreciation and amortization was $14.7 million for Q3
2015, compared to $15.7 million for Q3 2014.
CFO Comments
CFO and Treasurer John Cozzolino commented, “Cash flow was strong during
the quarter due to the improved operating results. Net debt (total debt
less cash) decreased $21 million to $99 million (see Table 16). Total
debt declined to $270 million at the end of Q3, compared to $303 million
at the end of Q2, as the Company repatriated $30 million from its
non-U.S. operations. The Company’s leverage ratio, as defined in our
primary debt agreements, decreased from 1.55 at the end of Q2 to 1.29 at
the end of Q3. Capital expenditures during Q3 were about $9 million, and
we currently estimate full-year spending in 2015 to be $45 million to
$55 million.
“The Company’s tax rate in Q3, excluding tax adjustments, was 38%, which
is in-line with our full-year expectation. Cash paid for income taxes
was about $4 million in Q3, and we estimate cash taxes in 2015 to range
from $20 million to $22 million.
“Net sales continue to be reduced by currency rates, as compared to
currency rates in effect during Q3 2014. However, due to our mix of
sales and costs by currency (e.g., net cost positions in Brazil and
Mexico), currency rates have had a positive impact on Adjusted EBITDA
when compared to prior-year rates. Adjusted EBITDA in future quarters
could be negatively impacted by significant currency rate changes
related to our key exposures, such as the peso and the real.”
CEO Comments
President & CEO Joe Morone said, “Q3 2015 was a strong quarter for
Albany International. Compared to Q3 2014, sales excluding currency
effects improved by 5%, and Adjusted EBITDA improved 25%. Net debt
declined by $21 million. Both businesses performed well, and as they
have all year, are firmly on track toward their long-term strategic
objectives of steady annual Adjusted EBITDA and cash flow in MC, and
rapid, profitable growth in AEC.
“In MC, sales excluding currency effects were 4% ahead of Q3 2014;
Adjusted EBITDA was 24% ahead. Year-to-date sales excluding currency
effects were flat compared to 2014; Adjusted EBITDA was 8% ahead. All
regions performed well in Q3. Consistent with our long-term view of this
business, the publication grades declined in every region of the world,
but the decline was more than offset by good performance across all of
our growth grades and regions. On a year-over-year basis, Asia and South
America grew modestly, despite economic weakness in those regions; North
America rebounded back to normal levels, despite much lower publication
grade sales; and Europe was stable. Margins were exceptional, and
reflect continuing efforts to improve productivity and consolidate
operations. The strong dollar relative to the Mexican peso and Brazilian
real also contributed to the improvement in gross margin and Adjusted
EBITDA.
“AEC once again performed well. Sales were 11% ahead of Q3 2014, while
Adjusted EBITDA continued to hover slightly below breakeven and about $1
million behind last year. Until the LEAP ramp begins in earnest a year
from now, the most important metrics for AEC are performance to
schedule, manufacturing yield, manufacturing cycle time, and of course,
market demand. Against these four metrics, performance was very strong
in Q3. On the development front, broad progress continued in all areas
of focus – that is, on applications for aircraft engines, airframes, and
the high end of the automotive market. Two milestones of particular note
this quarter were the production of the first three prototype fan cases
for the GE9X engine, and the entry into initial production of a family
of woven, semi-finished components that are used to connect the skin of
aircraft to their underlying structure in a variety of defense
applications. While this family of components has only modest revenue
potential – roughly $5 million to $10 million per year by the end of
this decade, it represents what could be the first of several emerging
AEC opportunities aimed at the defense aerospace market.
“Turning to our short-term outlook, in MC the normal seasonal year-end
slowdown is likely to be magnified by continued economic weakness in key
markets, and so we expect Q4 Adjusted EBITDA to be at best comparable
to, and quite possibly a bit lower than, Q4 2014. Full-year Adjusted
EBITDA should be well ahead of full-year 2014.
“This expectation of full-year growth in Adjusted EBITDA in no way
alters our long-term view of this business, just as it remained
unaltered by the relatively weak Q2 results. While performance may
continue to fluctuate from period to period and with general
macroeconomic conditions, we maintain our long-term view of this
business as capable of generating steady year-over-year Adjusted EBITDA
and cash flow - with annual Adjusted EBITDA ranging from $180 million to
$195 million, depending on currency translation effects.
“The short-term outlook for AEC is of course dominated by preparations
for the LEAP ramp. Revenue could be subject to a good deal of
quarter-to-quarter volatility over the next four quarters, as the rate
at which Safran pulls parts out of our finished goods inventory
fluctuates with their short-term need for parts during this final stage
of development, testing, and certification. Assuming the LEAP program
stays on schedule, we expect production to begin to ramp in Q4 of next
year and then to increase rapidly, growing from roughly 200 shipsets in
2016 to at least 1,800 a year by the end of the decade.
“In sum, this was a good quarter for Albany; both businesses performed
very well in Q3 and remain firmly on track toward their long-term
objectives of steady Adjusted EBITDA and cash flow in MC, and rapid,
profitable growth for AEC.”
The Company plans a webcast to discuss third-quarter 2015 financial
results on Wednesday, October 28, 2015, at 9:00 a.m. Eastern Time. For
access, go to www.albint.com.
About Albany International Corp.
Albany International is a global advanced textiles and materials
processing company, with two core businesses. Machine Clothing is the
world’s leading producer of custom-designed fabrics and belts essential
to production in the paper, nonwovens, and other process industries.
Albany Engineered Composites is a rapidly growing supplier of highly
engineered composite parts for the aerospace industry. Albany
International is headquartered in Rochester, New Hampshire, operates 19
plants in 10 countries, employs 4,000 people worldwide, and is listed on
the New York Stock Exchange (Symbol AIN). Additional information about
the Company and its products and services can be found at www.albint.com.
This release contains certain items, such as earnings before
interest, taxes, depreciation and amortization (EBITDA), Adjusted
EBITDA, sales excluding currency effects, income tax rate excluding
adjustments, net debt, net income attributable to the Company, excluding
adjustments (on an absolute and per-share basis), and certain income and
expense items on a per-share basis that could be considered non-GAAP
financial measures. Such items are provided because management believes
that, when presented together with the GAAP items to which they relate,
they provide additional useful information to investors regarding the
Company’s operational performance. Presenting increases or decreases in
sales, after currency effects are excluded, can give management and
investors insight into underlying sales trends. An understanding of the
impact in a particular quarter of specific restructuring costs, or other
gains and losses, on operating income or EBITDA can give management and
investors additional insight into quarterly performance, especially when
compared to quarters in which such items had a greater or lesser effect,
or no effect. All non-GAAP financial measures in this release relate to
the Company’s continuing operations.
The effect of changes in currency translation rates is calculated by
converting amounts reported in local currencies into U.S. dollars at the
exchange rate of a prior period. That amount is then compared to the
U.S. dollar amount reported in the current period. The Company
calculates Income tax adjustments by adding discrete tax items to the
effect of a change in tax rate for the reporting period. The Company
calculates its income tax rate, exclusive of income tax adjustments, by
removing income tax adjustments from total Income tax expense, then
dividing that result by Income before income taxes. The Company
calculates EBITDA by removing the following from Net income: Interest
expense net, Income tax expense, Depreciation and amortization, and
Income or loss from Discontinued Operations. Adjusted EBITDA is
calculated by: adding to EBITDA costs associated with restructuring and
pension settlement charges; adding (or subtracting) revaluation losses
(or gains); subtracting (or adding) gains (or losses) from the sale of
buildings or investments; subtracting insurance recovery gains; and
subtracting Income attributable to the noncontrolling interest in Albany
Safran Composites (ASC). The Company believes that EBITDA and Adjusted
EBITDA provide useful information to investors because they provide an
indication of the strength and performance of the Company's ongoing
business operations, including its ability to fund discretionary
spending such as capital expenditures and strategic investments, as well
as its ability to incur and service debt. While depreciation and
amortization are operating costs under GAAP, they are noncash expenses
equal to current period allocation of costs associated with capital and
other long-lived investments made in prior periods.
While restructuring expenses, foreign currency revaluation losses or
gains, pension settlement charges, insurance-recovery gains, and gains
or losses from sales of buildings or investments have an impact on the
Company's net income, removing them from EBITDA can provide, in the
opinion of the Company, a better measure of operating performance.
EBITDA is also a calculation commonly used by investors and analysts to
evaluate and compare the periodic and future operating performance and
value of companies. EBITDA, as defined by the Company, may not be
similar to EBITDA measures of other companies. Such EBITDA measures may
not be considered measurements under GAAP, and should be considered in
addition to, but not as substitutes for, the information contained in
the Company’s statements of income.
The Company discloses certain income and expense items on a per-share
basis. The Company believes that such disclosures provide important
insight into underlying quarterly earnings and are financial performance
metrics commonly used by investors. The Company calculates the quarterly
per-share amount for items included in continuing operations by using
the estimated effective annual tax rate and the weighted average number
of shares outstanding for each period. Year-to-date earnings per-share
effects are determined by adding the amounts calculated at each
reporting period.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Table 8
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Impact of
|
|
|
|
Percent
|
|
|
|
|
Net Sales
|
|
|
|
|
|
|
|
Changes
|
|
|
|
Change
|
|
|
|
|
Nine Months ended
|
|
|
|
Percent
|
|
|
|
in Currency
|
|
|
|
excluding
|
|
|
|
|
September,
|
|
|
|
Change
|
|
|
|
Translation
|
|
|
|
Currency
|
(in thousands)
|
|
|
|
2015
|
|
|
|
2014
|
|
|
|
|
|
|
|
Rates
|
|
|
|
Rate Effect
|
Machine Clothing (MC)
|
|
|
|
$463,577
|
|
|
|
$494,788
|
|
|
|
-6.3
|
%
|
|
|
|
($30,651
|
)
|
|
|
|
-0.1
|
%
|
Albany Engineered Composites (AEC)
|
|
|
|
68,825
|
|
|
|
58,898
|
|
|
|
16.9
|
%
|
|
|
|
(906
|
)
|
|
|
|
18.4
|
%
|
Total
|
|
|
|
$532,402
|
|
|
|
$553,686
|
|
|
|
-3.8
|
%
|
|
|
|
($31,557
|
)
|
|
|
|
1.9
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Table 9
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Nine Months ended September 30, 2015
(in thousands)
|
|
|
|
Machine Clothing
|
|
|
|
Albany Engineered Composites
|
|
|
|
Corporate expenses and other
|
|
|
|
Total Company
|
Net income
|
|
|
|
$110,969
|
|
|
|
|
($26,635
|
)*
|
|
|
|
($64,535
|
)
|
|
|
|
$19,799
|
|
Interest expense, net
|
|
|
|
-
|
|
|
|
|
-
|
|
|
|
|
8,049
|
|
|
|
|
8,049
|
|
Income tax expense
|
|
|
|
-
|
|
|
|
|
-
|
|
|
|
|
20,398
|
|
|
|
|
20,398
|
|
Depreciation and amortization
|
|
|
|
30,077
|
|
|
|
|
8,845
|
|
|
|
|
6,359
|
|
|
|
|
45,281
|
|
EBITDA
|
|
|
|
141,046
|
|
|
|
|
(17,790
|
)
|
|
|
|
(29,729
|
)
|
|
|
|
93,527
|
|
Restructuring expenses, net
|
|
|
|
13,929
|
|
|
|
|
-
|
|
|
|
|
-
|
|
|
|
|
13,929
|
|
Foreign currency revaluation losses/(gains)
|
|
|
|
(4,534
|
)
|
|
|
|
(17
|
)
|
|
|
|
406
|
|
|
|
|
(4,145
|
)
|
Gain on sale of investment
|
|
|
|
-
|
|
|
|
|
-
|
|
|
|
|
(872
|
)
|
|
|
|
(872
|
)
|
Pre-tax income attributable to noncontrolling interest in ASC
|
|
|
|
-
|
|
|
|
|
(115
|
)
|
|
|
|
-
|
|
|
|
|
(115
|
)
|
Adjusted EBITDA
|
|
|
|
$150,441
|
|
|
|
|
($17,922
|
)
|
|
|
|
($30,195
|
)
|
|
|
|
$102,324
|
|
*includes $14 million BR725 charge
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Table 10
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Nine Months ended September 30, 2014
(in thousands)
|
|
|
|
Machine Clothing
|
|
|
|
Albany Engineered Composites
|
|
|
|
Corporate expenses and other
|
|
|
|
Total Company
|
Net income
|
|
|
|
$103,329
|
|
|
|
|
($9,785
|
)
|
|
|
|
($59,900
|
)
|
|
|
|
$33,644
|
|
Interest expense, net
|
|
|
|
-
|
|
|
|
|
-
|
|
|
|
|
8,121
|
|
|
|
|
8,121
|
|
Income tax expense
|
|
|
|
-
|
|
|
|
|
-
|
|
|
|
|
21,435
|
|
|
|
|
21,435
|
|
Depreciation and amortization
|
|
|
|
34,069
|
|
|
|
|
7,382
|
|
|
|
|
6,290
|
|
|
|
|
47,741
|
|
EBITDA
|
|
|
|
137,398
|
|
|
|
|
(2,403
|
)
|
|
|
|
(24,054
|
)
|
|
|
|
110,941
|
|
Restructuring and other, net
|
|
|
|
3,127
|
|
|
|
|
931
|
|
|
|
|
-
|
|
|
|
|
4,058
|
|
Foreign currency revaluation (gains)/losses
|
|
|
|
(1,806
|
)
|
|
|
|
234
|
|
|
|
|
(3,815
|
)
|
|
|
|
(5,387
|
)
|
Gain on insurance recovery
|
|
|
|
-
|
|
|
|
|
-
|
|
|
|
|
(1,126
|
)
|
|
|
|
(1,126
|
)
|
Pretax loss attributable to noncontrolling interest in ASC
|
|
|
|
-
|
|
|
|
|
63
|
|
|
|
|
-
|
|
|
|
|
63
|
|
Adjusted EBITDA
|
|
|
|
$138,719
|
|
|
|
|
($1,175
|
)
|
|
|
|
($28,995
|
)
|
|
|
|
$108,549
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Table 11
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months ended September 30, 2015
(in thousands, except per share amounts)
|
|
|
|
Pre-tax amounts
|
|
|
|
Tax Effect
|
|
|
|
After-tax Effect
|
|
|
|
Per Share Effect
|
Restructuring and other, net
|
|
|
|
$3,717
|
|
|
|
$1,412
|
|
|
|
$2,305
|
|
|
|
$0
|
.07
|
Foreign currency revaluation gains
|
|
|
|
1,048
|
|
|
|
398
|
|
|
|
650
|
|
|
|
0
|
.02
|
Net discrete income tax charge
|
|
|
|
-
|
|
|
|
4,914
|
|
|
|
4,914
|
|
|
|
0
|
.15
|
Favorable effect of change in income tax rate
|
|
|
|
-
|
|
|
|
1,002
|
|
|
|
1,002
|
|
|
|
0
|
.03
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Table 12
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months ended September 30, 2014
(in thousands, except per share amounts)
|
|
|
|
Pre-tax amounts
|
|
|
|
Tax Effect
|
|
|
|
After-tax Effect
|
|
|
|
Per Share Effect
|
Restructuring and other, net
|
|
|
|
$919
|
|
|
|
$321
|
|
|
|
$598
|
|
|
|
$0
|
.02
|
Foreign currency revaluation gains
|
|
|
|
4,088
|
|
|
|
1,427
|
|
|
|
2,661
|
|
|
|
0
|
.08
|
Gain on insurance recovery
|
|
|
|
165
|
|
|
|
-
|
|
|
|
165
|
|
|
|
0
|
.01
|
Net discrete income tax charge
|
|
|
|
-
|
|
|
|
536
|
|
|
|
536
|
|
|
|
0
|
.02
|
Favorable effect of change in income tax rate
|
|
|
|
-
|
|
|
|
243
|
|
|
|
243
|
|
|
|
0
|
.01
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Table 13
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Nine Months ended September 30, 2015
(in thousands, except per share amounts)
|
|
|
|
Pre-tax amounts
|
|
|
|
Tax Effect
|
|
|
|
After-tax Effect
|
|
|
|
Per Share Effect
|
Restructuring and other, net
|
|
|
|
$13,929
|
|
|
|
$5,280
|
|
|
|
$8,649
|
|
|
|
$0
|
.27
|
Foreign currency revaluation gains
|
|
|
|
4,145
|
|
|
|
1,597
|
|
|
|
2,548
|
|
|
|
0
|
.08
|
Gain on sale of investment
|
|
|
|
872
|
|
|
|
331
|
|
|
|
541
|
|
|
|
0
|
.02
|
Net discrete income tax charge
|
|
|
|
-
|
|
|
|
5,113
|
|
|
|
5,113
|
|
|
|
0
|
.16
|
Charge for revision in estimated contract profitability
|
|
|
|
14,000
|
|
|
|
5,180
|
|
|
|
8,820
|
|
|
|
0
|
.28
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Table 14
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Nine Months ended September 30, 2014
(in thousands, except per share amounts)
|
|
|
|
Pre-tax amounts
|
|
|
|
Tax Effect
|
|
|
|
After-tax Effect
|
|
|
|
Per Share Effect
|
Restructuring and other, net
|
|
|
|
$4,058
|
|
|
|
$1,449
|
|
|
|
$2,609
|
|
|
|
$0
|
.08
|
Foreign currency revaluation gains
|
|
|
|
5,387
|
|
|
|
1,896
|
|
|
|
3,491
|
|
|
|
0
|
.11
|
Gain on insurance recovery
|
|
|
|
1,126
|
|
|
|
-
|
|
|
|
1,126
|
|
|
|
0
|
.04
|
Net discrete income tax charge
|
|
|
|
-
|
|
|
|
2,209
|
|
|
|
2,209
|
|
|
|
0
|
.07
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
The following table contains the calculation of net income per share
attributable to the Company, excluding adjustments:
|
|
|
|
|
|
|
|
|
|
|
|
|
Table 15
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months ended
|
|
|
|
Nine Months ended
|
|
|
|
|
September 30,
|
|
|
|
September 30,
|
Per share amounts (Basic)
|
|
|
|
2015
|
|
|
|
2014
|
|
|
|
2015
|
|
|
|
2014
|
Net income/(loss) attributable to the Company, reported
|
|
|
|
$0.30
|
|
|
|
|
$0.37
|
|
|
|
|
$0.62
|
*
|
|
|
|
$1.06
|
|
Adjustments:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Restructuring charges
|
|
|
|
0.07
|
|
|
|
|
0.02
|
|
|
|
|
0.27
|
|
|
|
|
0.08
|
|
Discrete tax charges and effect of change in income tax rate
|
|
|
|
0.12
|
|
|
|
|
0.01
|
|
|
|
|
0.16
|
|
|
|
|
0.07
|
|
Foreign currency revaluation (gains)/ losses
|
|
|
|
(0.02
|
)
|
|
|
|
(0.08
|
)
|
|
|
|
(0.08
|
)
|
|
|
|
(0.11
|
)
|
Gain on insurance recovery
|
|
|
|
-
|
|
|
|
|
(0.01
|
)
|
|
|
|
-
|
|
|
|
|
(0.04
|
)
|
Gain on the sale of investment
|
|
|
|
-
|
|
|
|
|
-
|
|
|
|
|
(0.02
|
)
|
|
|
|
-
|
|
Net income attributable to the Company, excluding adjustments
|
|
|
|
$0.47
|
|
|
|
|
$0.31
|
|
|
|
|
$0.95
|
|
|
|
|
$1.06
|
|
*includes $0.28 per share for BR725 charge
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
The following table contains the calculation of net debt:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Table 16
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(in thousands)
|
|
|
|
September 30, 2015
|
|
|
|
June 30, 2015
|
|
|
|
March 31, 2015
|
|
|
|
December 31, 2014
|
|
|
|
September 30, 2014
|
|
|
|
June 30, 2014
|
Notes and loans payable
|
|
|
|
$390
|
|
|
|
$543
|
|
|
|
$496
|
|
|
|
$661
|
|
|
|
$551
|
|
|
|
$692
|
Current maturities of long-term debt
|
|
|
|
50,016
|
|
|
|
50,015
|
|
|
|
50,015
|
|
|
|
50,015
|
|
|
|
15
|
|
|
|
1,265
|
Long-term debt
|
|
|
|
220,084
|
|
|
|
252,088
|
|
|
|
232,092
|
|
|
|
222,096
|
|
|
|
283,100
|
|
|
|
283,104
|
Total debt
|
|
|
|
270,490
|
|
|
|
302,646
|
|
|
|
282,603
|
|
|
|
272,772
|
|
|
|
283,666
|
|
|
|
285,061
|
Cash and cash equivalents
|
|
|
|
171,780
|
|
|
|
182,474
|
|
|
|
170,838
|
|
|
|
179,802
|
|
|
|
195,461
|
|
|
|
206,836
|
Net debt
|
|
|
|
$98,710
|
|
|
|
$120,172
|
|
|
|
$111,765
|
|
|
|
$92,970
|
|
|
|
$88,205
|
|
|
|
$78,225
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
This press release may contain statements, estimates, or projections
that constitute “forward-looking statements” as defined under U.S.
federal securities laws. Generally, the words “believe,” “expect,”
“intend,” “estimate,” “anticipate,” “project,” “will,” “should,” “look
for,” and similar expressions identify forward-looking statements, which
generally are not historical in nature. Forward-looking statements are
subject to certain risks and uncertainties (including, without
limitation, those set forth in the Company’s most recent Annual Report
on Form 10-K or Quarterly Report on Form 10-Q) that could cause actual
results to differ materially from the Company’s historical
experience and our present expectations or projections.
Forward-looking statements in this release or in the webcast include,
without limitation, statements about macroeconomic and paper industry
trends and conditions during 2015 and in future years; expectations in
2015 and in future periods of sales, EBITDA, Adjusted EBITDA, income,
gross profit, gross margin and other financial items in each of the
Company’s businesses and for the Company as a whole; the timing and
impact of production and development programs in the Company’s AEC
business segment and AEC sales growth potential; the amount and timing
of capital expenditures, future tax rates and cash paid for taxes,
depreciation and amortization; future debt and net debt levels and debt
covenant ratios; the timeline for ASC’s planned facility in Mexico; and
changes in currency rates and their impact on future revaluation gains
and losses. Furthermore, a change in any one or more of the foregoing
factors could have a material effect on the Company’s financial results
in any period. Such statements are based on current expectations, and
the Company undertakes no obligation to publicly update or revise any
forward-looking statements.
Statements expressing management’s assessments of the growth
potential of its businesses, or referring to earlier assessments of such
potential, are not intended as forecasts of actual future growth, and
should not be relied on as such. While management believes such
assessments to have a reasonable basis, such assessments are, by their
nature, inherently uncertain. This release and earlier releases set
forth a number of assumptions regarding these assessments, including
historical results, independent forecasts regarding the markets in which
these businesses operate, and the timing and magnitude of orders for our
customers’ products. Historical growth rates are no guarantee of future
growth, and such independent forecasts and assumptions could prove
materially incorrect, in some cases.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
ALBANY INTERNATIONAL CORP.
|
CONSOLIDATED STATEMENTS OF INCOME
|
(in thousands, except per share data)
|
(unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
|
|
|
|
|
|
|
|
Nine Months Ended
|
September 30,
|
|
|
|
|
|
|
|
September 30,
|
2015
|
|
|
|
2014
|
|
|
|
|
|
|
|
2015
|
|
|
|
2014
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$178,789
|
|
|
|
$179,861
|
|
|
|
|
Net sales
|
|
|
|
$532,402
|
|
|
|
$553,686
|
|
103,045
|
|
|
|
111,242
|
|
|
|
|
Cost of goods sold
|
|
|
|
325,382
|
|
|
|
334,915
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
75,744
|
|
|
|
68,619
|
|
|
|
|
Gross profit
|
|
|
|
207,020
|
|
|
|
218,771
|
|
35,509
|
|
|
|
33,618
|
|
|
|
|
Selling, general, and administrative expenses
|
|
|
|
110,674
|
|
|
|
112,787
|
|
10,675
|
|
|
|
14,924
|
|
|
|
|
Technical, product engineering, and research expenses
|
|
|
|
33,387
|
|
|
|
43,190
|
|
3,717
|
|
|
|
919
|
|
|
|
|
Restructuring expenses, net
|
|
|
|
13,929
|
|
|
|
4,058
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
25,843
|
|
|
|
19,158
|
|
|
|
|
Operating income
|
|
|
|
49,030
|
|
|
|
58,736
|
|
2,671
|
|
|
|
2,486
|
|
|
|
|
Interest expense, net
|
|
|
|
8,049
|
|
|
|
8,121
|
|
1,249
|
|
|
|
(1,864
|
)
|
|
|
|
Other expense/(income), net
|
|
|
|
784
|
|
|
|
(4,464
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
21,923
|
|
|
|
18,536
|
|
|
|
|
Income before income taxes
|
|
|
|
40,197
|
|
|
|
55,079
|
|
12,243
|
|
|
|
6,762
|
|
|
|
|
Income tax expense
|
|
|
|
20,398
|
|
|
|
21,435
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
9,680
|
|
|
|
11,774
|
|
|
|
|
Net income
|
|
|
|
19,799
|
|
|
|
33,644
|
|
22
|
|
|
|
(38
|
)
|
|
|
|
Net income/(loss) attributable to the noncontrolling interest
|
|
|
|
100
|
|
|
|
(8
|
)
|
$9,658
|
|
|
|
$11,812
|
|
|
|
|
Net income attributable to the Company
|
|
|
|
$19,699
|
|
|
|
$33,652
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$0.30
|
|
|
|
$0.37
|
|
|
|
|
Earnings per share attributable to Company shareholders - Basic
|
|
|
|
$0.62
|
|
|
|
$1.06
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$0.30
|
|
|
|
$0.37
|
|
|
|
|
Earnings per share attributable to Company shareholders - Diluted
|
|
|
|
$0.62
|
|
|
|
$1.05
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Shares of the Company used in computing earnings per share:
|
|
|
|
|
|
|
|
|
32,012
|
|
|
|
31,848
|
|
|
|
|
Basic
|
|
|
|
31,965
|
|
|
|
31,822
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
32,055
|
|
|
|
31,946
|
|
|
|
|
Diluted
|
|
|
|
32,028
|
|
|
|
31,924
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$0.17
|
|
|
|
$0.16
|
|
|
|
|
Dividends per share
|
|
|
|
$0.50
|
|
|
|
$0.47
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
ALBANY INTERNATIONAL CORP.
|
CONSOLIDATED BALANCE SHEETS
|
(in thousands, except share data)
|
(unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
September 30,
|
|
|
|
December 31,
|
|
|
|
|
2015
|
|
|
|
2014
|
ASSETS
|
|
|
|
|
|
|
|
|
Cash and cash equivalents
|
|
|
|
$171,780
|
|
|
|
|
$179,802
|
|
Accounts receivable, net
|
|
|
|
151,908
|
|
|
|
|
158,237
|
|
Inventories
|
|
|
|
110,265
|
|
|
|
|
107,274
|
|
Deferred income taxes
|
|
|
|
6,979
|
|
|
|
|
6,743
|
|
Asset held for sale
|
|
|
|
5,112
|
|
|
|
|
9,102
|
|
Prepaid expenses and other current assets
|
|
|
|
8,410
|
|
|
|
|
8,074
|
|
Total current assets
|
|
|
|
454,454
|
|
|
|
|
469,232
|
|
|
|
|
|
|
|
|
|
|
Property, plant and equipment, net
|
|
|
|
365,742
|
|
|
|
|
386,011
|
|
Intangibles
|
|
|
|
212
|
|
|
|
|
385
|
|
Goodwill
|
|
|
|
67,590
|
|
|
|
|
71,680
|
|
Income taxes receivable and deferred
|
|
|
|
61,732
|
|
|
|
|
69,540
|
|
Other assets
|
|
|
|
25,704
|
|
|
|
|
32,456
|
|
Total assets
|
|
|
|
$975,434
|
|
|
|
|
$1,029,304
|
|
|
|
|
|
|
|
|
|
|
LIABILITIES AND SHAREHOLDERS' EQUITY
|
|
|
|
|
|
|
|
|
Notes and loans payable
|
|
|
|
$390
|
|
|
|
|
$661
|
|
Accounts payable
|
|
|
|
28,668
|
|
|
|
|
34,787
|
|
Accrued liabilities
|
|
|
|
91,026
|
|
|
|
|
95,149
|
|
Current maturities of long-term debt
|
|
|
|
50,016
|
|
|
|
|
50,015
|
|
Income taxes payable and deferred
|
|
|
|
4,099
|
|
|
|
|
2,786
|
|
Total current liabilities
|
|
|
|
174,199
|
|
|
|
|
183,398
|
|
|
|
|
|
|
|
|
|
|
Long-term debt
|
|
|
|
220,084
|
|
|
|
|
222,096
|
|
Other noncurrent liabilities
|
|
|
|
99,845
|
|
|
|
|
103,079
|
|
Deferred taxes and other credits
|
|
|
|
3,546
|
|
|
|
|
7,163
|
|
Total liabilities
|
|
|
|
497,674
|
|
|
|
|
515,736
|
|
|
|
|
|
|
|
|
|
|
SHAREHOLDERS' EQUITY
|
|
|
|
|
|
|
|
|
Preferred stock, par value $5.00 per share;
|
|
|
|
|
|
|
|
|
authorized 2,000,000 shares; none issued
|
|
|
|
-
|
|
|
|
|
-
|
|
Class A Common Stock, par value $.001 per share;
|
|
|
|
|
|
|
|
|
authorized 100,000,000 shares; issued 37,234,213
|
|
|
|
|
|
|
|
|
in 2015 and 37,085,489 in 2014
|
|
|
|
37
|
|
|
|
|
37
|
|
Class B Common Stock, par value $.001 per share;
|
|
|
|
|
|
|
|
|
authorized 25,000,000 shares; issued and
|
|
|
|
|
|
|
|
|
outstanding 3,235,048 in 2015 and 2014
|
|
|
|
3
|
|
|
|
|
3
|
|
Additional paid in capital
|
|
|
|
422,567
|
|
|
|
|
418,972
|
|
Retained earnings
|
|
|
|
459,813
|
|
|
|
|
456,105
|
|
Accumulated items of other comprehensive income:
|
|
|
|
|
|
|
|
|
Translation adjustments
|
|
|
|
(99,556
|
)
|
|
|
|
(55,240
|
)
|
Pension and postretirement liability adjustments
|
|
|
|
(49,217
|
)
|
|
|
|
(51,666
|
)
|
Derivative valuation adjustment
|
|
|
|
(2,296
|
)
|
|
|
|
(861
|
)
|
Treasury stock (Class A), at cost 8,455,293 shares
|
|
|
|
|
|
|
|
|
in 2015 and 8,459,498 in 2014
|
|
|
|
(257,391
|
)
|
|
|
|
(257,481
|
)
|
Total Company shareholders' equity
|
|
|
|
473,960
|
|
|
|
|
509,869
|
|
Noncontrolling interest
|
|
|
|
3,800
|
|
|
|
|
3,699
|
|
Total equity
|
|
|
|
477,760
|
|
|
|
|
513,568
|
|
Total liabilities and shareholders' equity
|
|
|
|
$975,434
|
|
|
|
|
$1,029,304
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
ALBANY INTERNATIONAL CORP.
|
CONSOLIDATED STATEMENTS OF CASH FLOW
|
(in thousands)
|
(unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
|
|
|
|
|
|
|
|
Nine Months Ended
|
September 30,
|
|
|
|
|
|
|
|
September 30,
|
2015
|
|
|
|
2014
|
|
|
|
|
|
|
|
2015
|
|
|
|
2014
|
|
|
|
|
|
|
|
|
OPERATING ACTIVITIES
|
|
|
|
|
|
|
|
|
$9,680
|
|
|
|
|
$11,774
|
|
|
|
|
Net income
|
|
|
|
$19,799
|
|
|
|
|
$33,644
|
|
|
|
|
|
|
|
|
|
Adjustments to reconcile net income to net cash provided by
operating activities:
|
|
|
|
|
|
|
|
|
12,953
|
|
|
|
|
13,737
|
|
|
|
|
Depreciation
|
|
|
|
39,850
|
|
|
|
|
42,120
|
|
1,790
|
|
|
|
|
1,999
|
|
|
|
|
Amortization
|
|
|
|
5,431
|
|
|
|
|
5,621
|
|
7,134
|
|
|
|
|
(2,637
|
)
|
|
|
|
Change in long-term liabilities, deferred taxes and other credits
|
|
|
|
937
|
|
|
|
|
95
|
|
(156
|
)
|
|
|
|
557
|
|
|
|
|
Provision for write-off of property, plant and equipment
|
|
|
|
259
|
|
|
|
|
1,286
|
|
3,225
|
|
|
|
|
-
|
|
|
|
|
Fair value adjustment on available-for-sale assets
|
|
|
|
3,225
|
|
|
|
|
-
|
|
-
|
|
|
|
|
-
|
|
|
|
|
Gain on disposition or involuntary conversion of assets
|
|
|
|
(1,056
|
)
|
|
|
|
(961
|
)
|
-
|
|
|
|
|
(16
|
)
|
|
|
|
Excess tax benefit of options exercised
|
|
|
|
(603
|
)
|
|
|
|
(161
|
)
|
290
|
|
|
|
|
213
|
|
|
|
|
Compensation and benefits paid or payable in Class A Common Stock
|
|
|
|
1,285
|
|
|
|
|
1,160
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Changes in operating assets and liabilities that provide/(use)
cash:
|
|
|
|
|
|
|
|
|
5,100
|
|
|
|
|
(4,368
|
)
|
|
|
|
Accounts receivable
|
|
|
|
(4,387
|
)
|
|
|
|
9,929
|
|
(3,626
|
)
|
|
|
|
(1,279
|
)
|
|
|
|
Inventories
|
|
|
|
(10,757
|
)
|
|
|
|
(12,238
|
)
|
133
|
|
|
|
|
661
|
|
|
|
|
Prepaid expenses and other current assets
|
|
|
|
(857
|
)
|
|
|
|
275
|
|
(518
|
)
|
|
|
|
100
|
|
|
|
|
Income taxes prepaid and receivable
|
|
|
|
(592
|
)
|
|
|
|
114
|
|
(3,126
|
)
|
|
|
|
(2,128
|
)
|
|
|
|
Accounts payable
|
|
|
|
(4,467
|
)
|
|
|
|
(2,867
|
)
|
3,381
|
|
|
|
|
4,414
|
|
|
|
|
Accrued liabilities
|
|
|
|
861
|
|
|
|
|
(8,265
|
)
|
3,910
|
|
|
|
|
1,819
|
|
|
|
|
Income taxes payable
|
|
|
|
3,987
|
|
|
|
|
760
|
|
1,723
|
|
|
|
|
(2,383
|
)
|
|
|
|
Other, net
|
|
|
|
6,330
|
|
|
|
|
(6,512
|
)
|
41,893
|
|
|
|
|
22,463
|
|
|
|
|
Net cash provided by operating activities
|
|
|
|
59,245
|
|
|
|
|
64,000
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
INVESTING ACTIVITIES
|
|
|
|
|
|
|
|
|
(9,023
|
)
|
|
|
|
(18,704
|
)
|
|
|
|
Purchases of property, plant and equipment
|
|
|
|
(39,689
|
)
|
|
|
|
(46,106
|
)
|
(252
|
)
|
|
|
|
(189
|
)
|
|
|
|
Purchased software
|
|
|
|
(589
|
)
|
|
|
|
(504
|
)
|
-
|
|
|
|
|
-
|
|
|
|
|
Proceeds from sale or involuntary conversion of assets
|
|
|
|
2,797
|
|
|
|
|
961
|
|
(9,275
|
)
|
|
|
|
(18,893
|
)
|
|
|
|
Net cash used in investing activities
|
|
|
|
(37,481
|
)
|
|
|
|
(45,649
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
FINANCING ACTIVITIES
|
|
|
|
|
|
|
|
|
5,198
|
|
|
|
|
5,420
|
|
|
|
|
Proceeds from borrowings
|
|
|
|
44,818
|
|
|
|
|
10,090
|
|
(37,354
|
)
|
|
|
|
(6,815
|
)
|
|
|
|
Principal payments on debt
|
|
|
|
(47,100
|
)
|
|
|
|
(30,924
|
)
|
(41
|
)
|
|
|
|
-
|
|
|
|
|
Debt acquisition costs
|
|
|
|
(1,671
|
)
|
|
|
|
-
|
|
75
|
|
|
|
|
223
|
|
|
|
|
Proceeds from options exercised
|
|
|
|
1,799
|
|
|
|
|
610
|
|
-
|
|
|
|
|
16
|
|
|
|
|
Excess tax benefit of options exercised
|
|
|
|
603
|
|
|
|
|
161
|
|
(5,441
|
)
|
|
|
|
(5,094
|
)
|
|
|
|
Dividends paid
|
|
|
|
(15,646
|
)
|
|
|
|
(14,633
|
)
|
(37,563
|
)
|
|
|
|
(6,250
|
)
|
|
|
|
Net cash used in financing activities
|
|
|
|
(17,197
|
)
|
|
|
|
(34,696
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(5,749
|
)
|
|
|
|
(8,695
|
)
|
|
|
|
Effect of exchange rate changes on cash and cash equivalents
|
|
|
|
(12,589
|
)
|
|
|
|
(10,860
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(10,694
|
)
|
|
|
|
(11,375
|
)
|
|
|
|
Decrease in cash and cash equivalents
|
|
|
|
(8,022
|
)
|
|
|
|
(27,205
|
)
|
182,474
|
|
|
|
|
206,836
|
|
|
|
|
Cash and cash equivalents at beginning of period
|
|
|
|
179,802
|
|
|
|
|
222,666
|
|
$171,780
|
|
|
|
|
$195,461
|
|
|
|
|
Cash and cash equivalents at end of period
|
|
|
|
$171,780
|
|
|
|
|
$195,461
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
CONTACT:
Albany International Corp.
Investors
John
Cozzolino, 518-445-2281
john.cozzolino@albint.com
or
Media
Susan
Siegel, 603-330-5866
susan.siegel@albint.com
Exhibit 99.2
Albany International Corp.
Q3 Financial Performance October 27, 2015 ©Albany International Corp.
All right reserved.
‘Non‐GAAP’ Items and
Forward‐Looking Statements This presentation contains certain items,
such as net income attributable to the Company, excluding adjustments
(absolute as well as per‐share), earnings before interest, taxes,
depreciation and amortization (EBITDA), adjusted EBITDA and net debt,
that could be considered ‘non‐GAAP’ financial measures under SEC rules.
We think such items provide useful information to investors regarding
the Company’s operational performance. This presentation also may
contain statements, estimates, or projections that constitute
“forward‐looking statements” as defined under U.S. federal securities
laws. Forward‐looking statements are subject to certain risks and
uncertainties that could cause actual results to differ materially from
the Company’s historical experience and our present expectations or
projections. We disclaim any obligation to update any information in
this presentation to reflect any changes or developments after the date
on the cover page. Certain additional disclosures regarding our use of
these ‘non‐GAAP’ items and forward‐looking statements are set forth in
our third‐quarter earnings press release dated October 27, 2015, and in
our SEC filings, including our most recent quarterly reports and our
annual reports for the years ended December 31, 2012, 2013, and 2014.
Our use of such items in this presentation is subject to those
additional disclosures, which we urge you to read. 2
Net Sales by Segment (in
thousands) Net Sales Three Months ended September 30, 2015 2014 Percent
Change Impact of Changes in Currency Translation Rates Percent Change
excluding Currency Rate Effect Machine Clothing (MC) $154,522 $157,891
-2.1% ($9,364) 3.8% Albany Engineered Composites (AEC) 24,267 21,970
10.5% (166) 11.2% Total $178,789 $179,861 -0.6% ($9,530) 4.7% 3 (in
thousands)
Net Sales Nine Months ended
September 30, 2015 2014 Percent Change Impact of Changes in Currency
Translation Rates Percent Change excluding Currency Rate Effect Machine
Clothing (MC) $463,577 $494,788 -6.3% ($30,651) -0.1% Albany Engineered
Composites (AEC) 68,825 58,898 16.9% (906) 18.4% Total $532,402 $553,686
-3.8% ($31,557) 1.9% Gross Profit Margin by Quarter Percentage of Net
Sales 45.0% 42.4% 41.9% 43.0% 47.5% 45.2% 48.4% 41.5% 38.9% 38.2% 38.0%
42.3% 31.7% 42.4% 30% 35% 40% 45% 50% 55% Q1 2014 Q2 2014 Q3 2014 Q4
2014 Q1 2015 Q2 2015 Q3 2015 Q4 2015 Machine Clothing Total Company 4
Includes 8.1% impact from BR725 charge
Earnings Per Share 5 Per
share amounts (Basic) Three Months ended September 30, 2015 2014 Nine
Months ended September 30, 2015 2014 Net income/(loss) attributable to
the Company, as reported $0.30 $0.37 $0.62* $1.06 Adjustments:
Restructuring charges, net 0.07 0.02 0.27 0.08 Income tax adjustments
0.12 0.01 0.16 0.07 Foreign currency revaluation (gains)/losses (0.02)
(0.08) (0.08) (0.11) Gain on insurance recovery - (0.01) - (0.04) Gain
on sale of investment - - (0.02) - Net income attributable to the
Company, excluding adjustments $0.47 $0.31 $0.95 $1.06 *Includes $0.28
charge for BR725
Adjusted EBITDA 6 Three
Months ended September 30, 2015 (in thousands) Machine Clothing Albany
Engineered Composites Corporate expenses and other Total Company Net
income $41,956 ($4,191) ($28,085) $9,680 Interest expense, net - - 2,671
2,671 Income tax expense - - 12,243 12,243 Depreciation and amortization
9,660 2,981 2,102 14,743 EBITDA 51,616 (1,210) (11,069) 39,337
Restructuring and other, net 3,717 - - 3,717 Foreign currency
revaluation (gains)/losses (2,005) - 957 (1,048) Gain on insurance
recovery - - - - Pretax (income)/loss attributable to non-controlling
interest in ASC - (25) - (25) Adjusted EBITDA $53,328 ($1,235) ($10,112)
$41,981 Three Months ended September 30, 2014 Machine Clothing Albany
Engineered Composites Corporate expenses and other Total Company $33,308
($2,765) ($18,769) $11,774 - - 2,486 2,486 - - 6,762 6,762 11,060 2,607
2,069 15,736 44,368 (158) (7,452) 36,758 968 (49) - 919 (2,308) 135
(1,915) (4,088) - - (165) (165) - 77 - 77 $43,028 $5 ($9,532) $33,501
*Includes $14.0 million charge for BR725 Nine Months ended September 30,
2015 (in thousands) Machine Clothing Albany Engineered Composites
Corporate expenses and other Total Company Adjusted EBITDA $150,441
($17,922)* ($30,195) $102,324 Nine Months ended September 30, 2014
Machine Clothing Albany Engineered Composites Corporate expenses and
other Total Company $138,719 ($1,175) ($28,995) $108,549
Debt $ thousands $94,040
$78,225 $88,205 $92,970 $111,765 $120,172 $98,710 $302,419 $285,061
$283,666 $272,772 $282,603 $302,646 $270,490 $0 $50,000 $100,000
$150,000 $200,000 $250,000 $300,000 $350,000 March 31, 2014 June 30,
2014 September 30, 2014 December 31, 2014 March 31, 2015 June 30, 2015
September 30, 2015 Net Debt Total Debt 7
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