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): February 8, 2016
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. Results of Operations and Financial Condition.
On February 8, 2016, Albany International issued a news release
reporting fourth-quarter 2015 financial results. The Company will host
a webcast to discuss earnings at 9:00 a.m. Eastern Time on Tuesday,
February 9. 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. Financial Statements and Exhibits.
(d) Exhibits. The
following exhibit is being furnished herewith:
99.1 News
release dated February 8, 2016 reporting fourth-quarter 2015 financial
results.
99.2 Albany International Corp.
fourth-quarter 2015 Earnings Call Slide Presentation.
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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February 8, 2016
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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 February 8, 2016 reporting fourth-quarter 2015
financial results.
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99.2
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Albany International Corp. fourth-quarter 2015 Earnings Call Slide
Presentation.
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Exhibit 99.1
Albany
International Reports Fourth-Quarter Results
Fourth-Quarter
Financial Highlights
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Net
sales were $177.5 million, a decrease of 7.4% compared to Q4 2014.
Excluding currency effects, net sales decreased 3.2% (see Table 1).
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Adjusted
EBITDA was $38.7 million, compared to $36.3 million in Q4 2014 (see
Tables 6 and 7).
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Q4 2015
income attributable to the Company was $1.17 per share, compared to
$0.25 in Q4 2014. Excluding adjustments (see Table 15), income
attributable to the Company was $0.46 per share, compared to $0.35 in
Q4 2014.
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Full-year
net sales were $709.9 million, a decrease of 4.8%. Excluding currency
effects, full-year net sales increased 0.6% compared to 2014 (see
Table 8).
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Including
a $14.0 million charge in Q2 2015 related to an AEC contract,
full-year Adjusted EBITDA was $141.0 million in 2015, compared to
$144.8 million in 2014 (see Tables 9 and 10).
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Net
debt was $80.6 million at the end of December, a decrease of $18.1
million for Q4 2015 and $12.4 million for the full year (see Table 16).
ROCHESTER, N.H.--(BUSINESS WIRE)--February 8, 2016--Albany International
Corp. (NYSE:AIN) reported that Q4 2015 income attributable to the
Company was $37.6 million, including a net benefit of $29.8 million for
income tax adjustments. Income attributable to the Company in Q4 2014
was $7.9 million, including net charges of $0.2 million for income tax
adjustments.
Q4 2015 income before income taxes was $11.3 million, including
restructuring charges of $9.9 million and losses of $0.6 million from
foreign currency revaluation. Q4 2014 income before income taxes was
$12.4 million, including a pension settlement charge of $8.2 million,
restructuring charges of $1.7 million, and gains of $4.9 million from
foreign currency revaluation.
Table 1 summarizes net sales and the effect of changes in currency
translation rates:
Table 1
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Impact of
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Percent
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Net Sales
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Changes
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Change
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Three Months ended
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in Currency
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excluding
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December 31,
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Percent
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Translation
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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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$145,004
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$160,238
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-9.5
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%
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($7,364
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)
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-4.9
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%
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Albany Engineered Composites (AEC)
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32,462
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31,421
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3.3
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%
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(688
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5.5
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%
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Total
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$177,466
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$191,659
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-7.4
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%
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($8,052
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-3.2
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%
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Changes in currency translation rates, driven mainly by the stronger
U.S. dollar, resulted in a $7.4 million decline in MC sales. Excluding
the currency effect, MC sales were down compared to Q4 2014 due to a
weak Brazilian economy, and in North America the combination of decline
in the printing and writing market discussed in Q2 and
stronger-than-normal year-end slowdowns in the packaging grades. Q4 2015
AEC sales included revenue of $5.1 million for customer reimbursement of
development tooling.
Q4 2015 gross profit was $71.7 million, or 40.4% of net sales, compared
to $72.9 million, or 38.0% of net sales, in the same period of 2014. MC
gross profit was $68.8 million, or 47.4% of net sales, compared to $69.0
million, or 43.0% of net sales, in Q4 2014. The improvement in gross
profit margin reflects lower costs of raw materials, improved
productivity, and the effect of restructuring programs. Even though
changes in currency translation rates had a significant effect on MC net
sales, they once again had only a minor negative effect on gross profit
principally due to the continuing weakness of the Brazilian real and
Mexican peso. AEC gross profit was $3.3 million in Q4 2015, compared to
$4.2 million in Q4 2014.
Selling, technical, general, and research (STG&R) expenses were $46.9
million, or 26.4% of net sales, in Q4 2015, compared to $50.3 million,
or 26.3% of net sales, in Q4 2014. The decrease in STG&R compared to
2014 was principally due to changes in currency translation rates and
cost reduction activities. The revaluation of nonfunctional-currency
assets and liabilities resulted in fourth-quarter gains of $0.5 million
in 2015 and $2.4 million in 2014.
The following table presents fourth-quarter expenses associated with
internally funded research and development by segment:
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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December 31,
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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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$5,487
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$6,043
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Albany Engineered Composites
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2,495
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2,871
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Corporate expenses
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194
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195
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Total
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$8,176
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$9,109
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The following table summarizes fourth-quarter operating income by
segment:
Table 3
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Operating Income/(loss)
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Three Months ended
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December 31,
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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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$30,342
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$33,120
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Albany Engineered Composites
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(1,843
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(697
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Corporate expenses
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(13,634
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(11,609
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Pension settlement charge
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-
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(8,190
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Total
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$14,865
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$12,624
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Segment operating income was affected by restructuring and currency
revaluation as shown in Table 4 below. Q4 2015 restructuring charges
were principally related to an early retirement program in the United
States, and ongoing plant closure costs in Germany.
Table 4
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Expenses/(gain) in Q4 2015
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Expenses/(gain) in Q4 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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$8,282
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($542
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$1,701
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($2,115
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Albany Engineered Composites
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-
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-
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(249
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Corporate expenses
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1,635
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1
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Total
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$9,917
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($542
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$1,701
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($2,363
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Q4 2015 Other income/expense, net, was expense of $1.6 million,
including losses related to the revaluation of nonfunctional-currency
balances of $1.1 million. Q4 2014 Other income/expense, net, was income
of $2.4 million, including gains related to the revaluation of
nonfunctional-currency balances of $2.6 million.
The following table summarizes currency revaluation effects on certain
financial metrics:
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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December 31,
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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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$542
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$2,363
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Other income/(expense), net
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(1,092
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2,560
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Total
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($550
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$4,923
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The Company’s income tax rate, excluding tax adjustments, was 31.8% for
Q4 2015, compared to 33.3% for the same period of 2014. In Q4 2015, the
Company recorded net favorable discrete tax adjustments of $27.3
million, including a benefit of $28.6 million related to the elimination
of the value of the Company’s investment in its German subsidiary, where
manufacturing operations have now ceased. The Company also recorded a
reduction of $2.5 million to Q4 2015 income taxes due to a decrease in
the tax rate from Q3 2015. Discrete tax charges and the effect of a
change in the estimated tax rate increased income tax expense by $0.2
million for Q4 2014.
The following tables summarize Adjusted EBITDA:
Table 6
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Three Months ended December 31, 2015
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Albany
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Corporate
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Machine
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Engineered
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expenses
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Total
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(in thousands)
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Clothing
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Composites
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and other
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Company
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Net income
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$30,342
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($1,843
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$8,967
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$37,466
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Interest expense, net
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-
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1,935
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1,935
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Income tax (benefit)
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(26,185
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(26,185
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Depreciation and amortization
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9,425
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3,295
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2,113
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14,833
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EBITDA
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39,767
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1,452
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(13,170
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28,049
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Restructuring expenses, net
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8,282
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1,635
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9,917
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Foreign currency revaluation (gains)/losses
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(542
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1,092
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550
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Pretax loss attributable to noncontrolling interest in ASC
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-
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135
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135
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Adjusted EBITDA
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$47,507
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$1,587
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($10,443
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$38,651
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Table 7
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Three Months ended December 31, 2014
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Albany
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Corporate
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Machine
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Engineered
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expenses
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Total
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(in thousands)
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Clothing
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Composites
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and other
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Company
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Net income
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$33,120
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($697
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($24,318
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$8,105
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Interest expense, net
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-
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2,592
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2,592
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Income tax expense
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-
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4,316
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4,316
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Depreciation and amortization
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10,996
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3,499
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2,056
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16,551
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EBITDA
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44,116
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2,802
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(15,354
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31,564
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Restructuring and other, net
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1,701
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-
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-
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1,701
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Foreign currency revaluation (gains)/losses
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(2,115
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(249
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(2,559
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(4,923
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Pension settlement charge
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-
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-
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8,190
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8,190
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Pretax income attributable to noncontrolling interest in ASC
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-
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(275
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-
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(275
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Adjusted EBITDA
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$43,702
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$2,278
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($9,723
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$36,257
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Capital spending was $10.3 million for Q4 2015, compared to $12.3
million for Q4 2014. Depreciation and amortization was $14.8 million for
Q4 2015, compared to $16.6 million for Q4 2014.
CFO Comments
CFO and Treasurer John Cozzolino commented, “Net debt (total debt less
cash) in Q4 decreased $18 million to $81 million, bringing the full-year
decline in net debt to $12 million (see Table 16). Both components of
net debt, total debt and cash, improved in Q4 as total debt dropped $5
million to $266 million and cash increased $13 million to $185 million.
The Company’s leverage ratio, as defined in our primary debt agreements,
decreased from 1.30 at the end of 2014 to 1.27 at the end of this year.
Capital expenditures for the year were $51 million. We expect 2016 and
2017 to be peak years for capital spending in support of the LEAP ramp
and as a result are currently estimating total Company spending for 2016
to be $75 million to $85 million. The Company’s income tax rate,
excluding tax adjustments, was 32% in 2015 and is currently estimated to
range from 30% to 35% in 2016. Cash paid for income taxes during the
year was about $18 million and is expected to total $20 million to $25
million in 2016.
“In Q4 2015, the Company recorded a $29 million tax benefit related to
the elimination of its investment in its German subsidiary. The Company
expects that most of this tax benefit will be utilized to lower cash
taxes related to future repatriations.”
CEO Comments
President and CEO Joe Morone said, “Q4 was another good quarter for
Albany International. Both businesses continued to perform well, as once
again MC generated strong margins and AEC continued to grow and progress
toward the LEAP ramp. Company-wide cash flow was strong, with net debt
declining $18 million to $81 million.
“In MC, full-year sales excluding currency were essentially flat,
despite soft Q4 sales due to the economic weakness in key markets.
Profitability was outstanding. Adjusted EBITDA for the quarter and for
the full year was 9% ahead of 2014. Roughly half of this increase was
due to the favorable impact of the strong dollar on currency
translation. The rest of the increase was from several sources: the
shutdown of our plant in Germany, restructuring activities that reduced
STG&R expense, lower cost of raw material due to lower energy prices,
and higher labor productivity across many of our plants. In Q4, MC took
an additional step to reduce STG&R expense by implementing an early
retirement program for its salaried employees in the U.S.
“Q4 2015 was also a good quarter for MC on the technology and new
products front. The new composite technology platform continues to gain
momentum at the high end of the tissue and towel market, and we are
encouraged by initial trials in the packaging market. Finally, we
successfully completed negotiations to renew our contracts with two of
our largest customers, one in the U.S. and one in Europe. Although
competitive pricing pressures persist in all of our markets around the
world, our prices were for the most part stable in Q4.
“AEC sales excluding currency grew almost 14% for the full year. The
growth was driven by a combination of higher development and parts sales
associated with the LEAP, Joint Strike Fighter (JSF) LiftFan®,
and GE9X fan case programs. Most importantly, AEC continued to make good
progress in preparation for the LEAP ramp, which begins late this year.
In R&D and business development, good progress also continued on several
fronts. In addition to continuing to support advances in the LEAP
program, and to position ourselves for content on both the engine and
airframe for next-generation single-aisle aircraft, our efforts were
focused on several new platforms that have the potential to generate
initial revenue either later this decade or in the first half of the
next decade. The most significant of these new platforms are Boeing’s
777x aircraft; a new mid-size airplane that Boeing is reported to be
considering; the Department of Defense’s JSF and Long Range Strike
Bomber; and new supercar and premium sports and luxury vehicles in the
high end of the automotive market.
“As for our outlook, our near- and long-term expectations for both
businesses remain unchanged. To reiterate the view we expressed about MC
last quarter, notwithstanding the 9% increase in Adjusted EBITDA in
2015, we continue to view MC as a business capable of generating steady
year-over-year Adjusted EBITDA and cash flow, with annual Adjusted
EBITDA in the range of $180 million to $195 million. Despite the
likelihood of a slower start this year than last due to continued strong
economic headwinds in key markets, and barring further deterioration in
the macroeconomic environment, our strong margins and continuing
productivity improvements should make it possible for us to keep well
within that normal Adjusted EBITDA range.
“For AEC, we anticipate annual revenue growth of roughly 5-10%, with
some upside depending on a host of variables related to the LEAP ramp.
EBITDA should also improve, at a steeper rate than sales. But the real
significance of 2016 is that it represents the final year of preparation
for the LEAP ramp, and so our highest priority will be on continuing
efforts to improve yield, accelerate cost reduction, and prepare our
Mexican plant for start-up in 2017. Assuming Airbus and Boeing do indeed
increase production of the A320neo and 737MAX to roughly 60 aircraft per
month by the end of the decade, AEC will need to manufacture over 40,000
blades and 2,000 fan cases a year by 2020, compared to roughly 2,500
blades and 100 cases in 2015. At these levels of production, LEAP
revenue should grow from $50 million in 2015 to close to $200 million by
2020. Total AEC revenue, assuming no new programs beyond the ones
already secured (an assumption we hope is conservative), should grow
from $100 million in 2015 to roughly $250 million in 2020. The steepest
ramps in production and therefore in AEC revenue and income will likely
be in 2017 and 2018.
“2016 should also be a pivotal year for AEC’s legacy operations, which
accounted for 40% of AEC’s 2015 revenue and were responsible for a
significant drag on AEC profitability. In January, we announced
internally that we plan to consolidate most of our legacy programs,
which are currently spread over two plants, into our facility in Boerne,
Texas. At the same time, we are finalizing with Rolls-Royce a long-term
supply agreement for production of composite parts for the JSF LiftFan.
The expected growth from this program as demand begins to ramp in 2017,
coupled with the program consolidation into Boerne, should drive
significant improvements in margins by the second half of 2017.
“So in sum, performance in both businesses was strong in Q4 and for the
full year, and we expect performance to remain strong in 2016. Despite
the significant economic headwinds and barring further deterioration in
the macroeconomic environment, we look for MC to generate Adjusted
EBITDA well within its normal range. And for AEC, we expect roughly
5-10% revenue growth coupled with improving profitability in this the
final year of the lead-up to the LEAP ramp.”
The Company plans a webcast to discuss fourth-quarter 2015 financial
results on Tuesday, February 9, 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
|
|
|
Years ended
|
|
|
|
in Currency
|
|
excluding
|
|
|
December 31,
|
|
Percent
|
|
Translation
|
|
Currency
|
(in thousands)
|
|
2015
|
|
2014
|
|
Change
|
|
Rates
|
|
Rate Effect
|
Machine Clothing (MC)
|
|
$608,581
|
|
$655,026
|
|
-7.1
|
%
|
|
($38,015
|
)
|
|
-1.3
|
%
|
Albany Engineered Composites (AEC)
|
|
101,287
|
|
90,319
|
|
12.1
|
%
|
|
(1,594
|
)
|
|
13.9
|
%
|
Total
|
|
$709,868
|
|
$745,345
|
|
-4.8
|
%
|
|
($39,609
|
)
|
|
0.6
|
%
|
Table 9
|
|
|
|
|
|
|
|
|
Year ended December 31, 2015
|
|
|
|
Albany
|
|
Corporate
|
|
|
|
|
Machine
|
|
Engineered
|
|
expenses
|
|
Total
|
(in thousands)
|
|
Clothing
|
|
Composites
|
|
and other
|
|
Company
|
Net income
|
|
$141,311
|
|
|
($28,478)*
|
|
($55,568
|
)
|
|
$57,265
|
|
Interest expense, net
|
|
-
|
|
|
-
|
|
|
9,984
|
|
|
9,984
|
|
Income tax (benefit)
|
|
-
|
|
|
-
|
|
|
(5,787
|
)
|
|
(5,787
|
)
|
Depreciation and amortization
|
|
39,503
|
|
|
12,140
|
|
|
8,471
|
|
|
60,114
|
|
EBITDA
|
|
180,814
|
|
|
(16,338
|
)
|
|
(42,900
|
)
|
|
121,576
|
|
Restructuring expenses, net
|
|
22,211
|
|
|
-
|
|
|
1,635
|
|
|
23,846
|
|
Foreign currency revaluation losses/(gains)
|
|
(5,075
|
)
|
|
(17
|
)
|
|
1,498
|
|
|
(3,594
|
)
|
Gain on sale of investment
|
|
-
|
|
|
-
|
|
|
(872
|
)
|
|
(872
|
)
|
Pre-tax loss attributable to noncontrolling interest in ASC
|
|
-
|
|
|
20
|
|
|
-
|
|
|
20
|
|
Adjusted EBITDA
|
|
$197,950
|
|
|
($16,335
|
)
|
|
($40,639
|
)
|
|
$140,976
|
|
*includes $14 million BR725 charge
|
|
|
|
|
|
|
|
|
|
|
|
|
Table 10
|
|
|
|
|
|
|
|
|
Year ended December 31, 2014
|
|
|
|
Albany
|
|
Corporate
|
|
|
|
|
Machine
|
|
Engineered
|
|
expenses
|
|
Total
|
(in thousands)
|
|
Clothing
|
|
Composites
|
|
and other
|
|
Company
|
Net income
|
|
$136,450
|
|
|
($10,483
|
)
|
|
($84,218
|
)
|
|
$41,749
|
|
Interest expense, net
|
|
-
|
|
|
-
|
|
|
10,713
|
|
|
10,713
|
|
Income tax expense
|
|
-
|
|
|
-
|
|
|
25,751
|
|
|
25,751
|
|
Depreciation and amortization
|
|
45,066
|
|
|
10,880
|
|
|
8,346
|
|
|
64,292
|
|
EBITDA
|
|
181,516
|
|
|
397
|
|
|
(39,408
|
)
|
|
142,505
|
|
Restructuring and other, net
|
|
4,828
|
|
|
931
|
|
|
-
|
|
|
5,759
|
|
Foreign currency revaluation (gains)/losses
|
|
(3,921
|
)
|
|
(15
|
)
|
|
(6,374
|
)
|
|
(10,310
|
)
|
Gain on insurance recovery
|
|
-
|
|
|
-
|
|
|
(1,126
|
)
|
|
(1,126
|
)
|
Pension settlement charge
|
|
-
|
|
|
-
|
|
|
8,190
|
|
|
8,190
|
|
Pretax income attributable to noncontrolling interest in ASC
|
|
-
|
|
|
(211
|
)
|
|
-
|
|
|
(211
|
)
|
Adjusted EBITDA
|
|
$182,423
|
|
|
$1,102
|
|
|
($38,718
|
)
|
|
$144,807
|
|
Table 11
|
|
|
|
|
|
|
|
|
Three Months ended December 31, 2015
(in thousands, except per share amounts)
|
|
Pre-tax amounts
|
|
Tax Effect
|
|
After-tax Effect
|
|
Per Share Effect
|
Restructuring and other, net
|
|
$9,917
|
|
$3,154
|
|
$6,763
|
|
$0.21
|
Foreign currency revaluation losses
|
|
550
|
|
175
|
|
375
|
|
0.01
|
Net discrete income tax benefit
|
|
-
|
|
27,287
|
|
27,287
|
|
0.85
|
Favorable effect of change in income tax rate
|
|
-
|
|
2,489
|
|
2,489
|
|
0.08
|
Table 12
|
|
|
|
|
|
|
|
|
Three Months ended December 31, 2014
(in thousands, except per share amounts)
|
|
Pre-tax amounts
|
|
Tax Effect
|
|
After-tax Effect
|
|
Per Share Effect
|
Restructuring and other, net
|
|
$1,701
|
|
$566
|
|
$1,135
|
|
$0.04
|
Foreign currency revaluation gains
|
|
4,923
|
|
1,639
|
|
3,284
|
|
0.10
|
Pension settlement charge
|
|
8,190
|
|
3,194
|
|
4,996
|
|
0.16
|
Net discrete income tax charge
|
|
-
|
|
1,033
|
|
1,033
|
|
0.03
|
Favorable effect of change in income tax rate
|
|
-
|
|
858
|
|
858
|
|
0.03
|
Table 13
|
|
|
|
|
|
|
|
|
Year ended December 31, 2015
(in thousands, except per share amounts)
|
|
Pre-tax amounts
|
|
Tax Effect
|
|
After-tax Effect
|
|
Per Share Effect
|
Restructuring and other, net
|
|
$23,846
|
|
$8,434
|
|
$15,412
|
|
$0.48
|
Foreign currency revaluation gains
|
|
3,594
|
|
1,422
|
|
2,172
|
|
0.07
|
Gain on sale of investment
|
|
872
|
|
331
|
|
541
|
|
0.02
|
Net discrete income tax benefit
|
|
-
|
|
22,174
|
|
22,174
|
|
0.69
|
Charge for revision in estimated contract profitability
|
|
14,000
|
|
5,180
|
|
8,820
|
|
0.28
|
Table 14
|
|
|
|
|
|
|
|
|
Year ended December 31, 2014
(in thousands, except per share amounts)
|
|
Pre-tax amounts
|
|
Tax Effect
|
|
After-tax Effect
|
|
Per Share Effect
|
Restructuring and other, net
|
|
$5,759
|
|
$2,015
|
|
$3,744
|
|
$0.12
|
Foreign currency revaluation gains
|
|
10,310
|
|
3,535
|
|
6,775
|
|
0.21
|
Gain on insurance recovery
|
|
1,126
|
|
-
|
|
1,126
|
|
0.04
|
Pension settlement charge
|
|
8,190
|
|
3,194
|
|
4,996
|
|
0.16
|
Net discrete income tax charge
|
|
-
|
|
3,242
|
|
3,242
|
|
0.10
|
The following table contains the calculation of net income per share
attributable to the Company, excluding adjustments:
Table 15
|
|
|
|
|
|
|
|
|
|
|
|
Three Months ended
|
|
Year ended
|
|
|
December 31,
|
|
December 31,
|
Per share amounts (Basic)
|
|
2015
|
|
|
2014
|
|
|
2015
|
|
|
2014
|
|
Net income attributable to the Company, reported
|
|
$1.17
|
|
|
$0.25
|
|
|
$1.79*
|
|
|
$1.31
|
|
Adjustments:
|
|
|
|
|
|
|
|
|
|
Restructuring charges
|
|
0.21
|
|
|
0.04
|
|
|
0.48
|
|
|
0.12
|
|
Discrete tax charges/(benefit) and effect of change in income tax
rate
|
|
(0.93
|
)
|
|
-
|
|
|
(0.69
|
)
|
|
0.10
|
|
Foreign currency revaluation (gains)/ losses
|
|
0.01
|
|
|
(0.10
|
)
|
|
(0.07
|
)
|
|
(0.21
|
)
|
Pension settlement charge
|
|
-
|
|
|
0.16
|
|
|
-
|
|
|
0.16
|
|
Gains from sale of investment/insurance recovery
|
|
-
|
|
|
-
|
|
|
(0.02
|
)
|
|
(0.04
|
)
|
Net income attributable to the Company, excluding adjustments
|
|
$0.46
|
|
|
$0.35
|
|
|
$1.49
|
|
|
$1.44
|
|
*includes $0.28 per share for BR725 charge
|
|
|
|
|
|
|
|
|
|
|
|
|
The following table contains the calculation of net debt:
Table 16
|
|
|
|
|
|
|
|
|
|
|
|
|
(in thousands)
|
|
December 31, 2015
|
|
September 30, 2015
|
|
June 30, 2015
|
|
March 31, 2015
|
|
December 31, 2014
|
|
December 31, 2013
|
Notes and loans payable
|
|
$587
|
|
$390
|
|
$543
|
|
$496
|
|
$661
|
|
$625
|
Current maturities of long-term debt
|
|
16
|
|
50,016
|
|
50,015
|
|
50,015
|
|
50,015
|
|
3,764
|
Long-term debt
|
|
265,080
|
|
220,084
|
|
252,088
|
|
232,092
|
|
222,096
|
|
300,111
|
Total debt
|
|
265,683
|
|
270,490
|
|
302,646
|
|
282,603
|
|
272,772
|
|
304,500
|
Cash and cash equivalents
|
|
185,113
|
|
171,780
|
|
182,474
|
|
170,838
|
|
179,802
|
|
222,666
|
Net debt
|
|
$80,570
|
|
$98,710
|
|
$120,172
|
|
$111,765
|
|
$92,970
|
|
$81,834
|
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 2016 and in future years; expectations in
2016 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
|
|
|
|
Years Ended
|
December 31,
|
|
|
|
December 31,
|
2015
|
|
|
2014
|
|
|
|
|
2015
|
|
|
2014
|
|
|
|
|
|
|
|
|
|
|
$177,466
|
|
|
$191,659
|
|
|
Net sales
|
|
$709,868
|
|
|
$745,345
|
|
105,800
|
|
|
118,795
|
|
|
Cost of goods sold
|
|
431,182
|
|
|
453,710
|
|
|
|
|
|
|
|
|
|
|
71,666
|
|
|
72,864
|
|
|
Gross profit
|
|
278,686
|
|
|
291,635
|
|
35,518
|
|
|
34,411
|
|
|
Selling, general, and administrative expenses
|
|
146,192
|
|
|
147,198
|
|
11,366
|
|
|
15,938
|
|
|
Technical, product engineering, and research expenses
|
|
44,753
|
|
|
59,128
|
|
9,917
|
|
|
1,701
|
|
|
Restructuring expenses, net
|
|
23,846
|
|
|
5,759
|
|
-
|
|
|
8,190
|
|
|
Pension settlement expense
|
|
-
|
|
|
8,190
|
|
|
|
|
|
|
|
|
|
|
14,865
|
|
|
12,624
|
|
|
Operating income
|
|
63,895
|
|
|
71,360
|
|
1,935
|
|
|
2,592
|
|
|
Interest expense, net
|
|
9,984
|
|
|
10,713
|
|
1,649
|
|
|
(2,389
|
)
|
|
Other expense/(income), net
|
|
2,433
|
|
|
(6,853
|
)
|
|
|
|
|
|
|
|
|
|
11,281
|
|
|
12,421
|
|
|
Income before income taxes
|
|
51,478
|
|
|
67,500
|
|
(26,185
|
)
|
|
4,316
|
|
|
Income tax (benefit)/expense
|
|
(5,787
|
)
|
|
25,751
|
|
|
|
|
|
|
|
|
|
|
37,466
|
|
|
8,105
|
|
|
Net income
|
|
57,265
|
|
|
41,749
|
|
(114
|
)
|
|
188
|
|
|
Net (loss)/income attributable to the noncontrolling interest
|
|
(14
|
)
|
|
180
|
|
$37,580
|
|
|
$7,917
|
|
|
Net income attributable to the Company
|
|
$57,279
|
|
|
$41,569
|
|
|
|
|
|
|
|
|
|
|
$1.17
|
|
|
$0.25
|
|
|
Earnings per share attributable to Company shareholders - Basic
|
|
$1.79
|
|
|
$1.31
|
|
|
|
|
|
|
|
|
|
|
$1.17
|
|
|
$0.25
|
|
|
Earnings per share attributable to Company shareholders - Diluted
|
|
$1.79
|
|
|
$1.30
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Shares of the Company used in computing earnings per share:
|
|
|
|
|
32,016
|
|
|
31,859
|
|
|
Basic
|
|
31,978
|
|
|
31,832
|
|
|
|
|
|
|
|
|
|
|
32,059
|
|
|
32,006
|
|
|
Diluted
|
|
32,088
|
|
|
31,988
|
|
|
|
|
|
|
|
|
|
|
$0.17
|
|
|
$0.16
|
|
|
Dividends per share, Class A and Class B
|
|
$0.67
|
|
|
$0.63
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
ALBANY INTERNATIONAL CORP.
|
CONSOLIDATED BALANCE SHEETS
|
(in thousands, except share data)
|
(unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
December 31,
|
|
December 31,
|
|
|
2015
|
|
|
2014
|
|
ASSETS
|
|
|
|
|
Cash and cash equivalents
|
|
$185,113
|
|
|
$179,802
|
|
Accounts receivable, net
|
|
146,383
|
|
|
158,237
|
|
Inventories
|
|
106,406
|
|
|
107,274
|
|
Income taxes prepaid and deferred
|
|
2,927
|
|
|
6,743
|
|
Asset held for sale
|
|
4,988
|
|
|
-
|
|
Prepaid expenses and other current assets
|
|
6,243
|
|
|
8,074
|
|
Total current assets
|
|
452,060
|
|
|
460,130
|
|
|
|
|
|
|
Property, plant and equipment, net
|
|
357,470
|
|
|
395,113
|
|
Intangibles
|
|
154
|
|
|
385
|
|
Goodwill
|
|
66,373
|
|
|
71,680
|
|
Income taxes receivable and deferred
|
|
108,945
|
|
|
69,540
|
|
Other assets
|
|
24,560
|
|
|
32,456
|
|
Total assets
|
|
$1,009,562
|
|
|
$1,029,304
|
|
|
|
|
|
|
LIABILITIES AND SHAREHOLDERS' EQUITY
|
|
|
|
|
Notes and loans payable
|
|
$587
|
|
|
$661
|
|
Accounts payable
|
|
26,753
|
|
|
34,787
|
|
Accrued liabilities
|
|
91,785
|
|
|
95,149
|
|
Current maturities of long-term debt
|
|
16
|
|
|
50,015
|
|
Income taxes payable and deferred
|
|
7,090
|
|
|
2,786
|
|
Total current liabilities
|
|
126,231
|
|
|
183,398
|
|
|
|
|
|
|
Long-term debt
|
|
265,080
|
|
|
222,096
|
|
Other noncurrent liabilities
|
|
101,544
|
|
|
103,079
|
|
Deferred taxes and other credits
|
|
14,154
|
|
|
7,163
|
|
Total liabilities
|
|
507,009
|
|
|
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 37,238,913 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
|
|
423,108
|
|
|
418,972
|
|
Retained earnings
|
|
491,950
|
|
|
456,105
|
|
Accumulated items of other comprehensive income:
|
|
|
|
|
Translation adjustments
|
|
(108,655
|
)
|
|
(55,240
|
)
|
Pension and postretirement liability adjustments
|
|
(48,725
|
)
|
|
(51,666
|
)
|
Derivative valuation adjustment
|
|
(1,464
|
)
|
|
(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
|
|
498,863
|
|
|
509,869
|
|
Noncontrolling interest
|
|
3,690
|
|
|
3,699
|
|
Total equity
|
|
502,553
|
|
|
513,568
|
|
Total liabilities and shareholders' equity
|
|
$1,009,562
|
|
|
$1,029,304
|
|
|
|
|
|
|
|
|
|
ALBANY INTERNATIONAL CORP.
|
CONSOLIDATED STATEMENTS OF CASH FLOW
|
(in thousands)
|
(unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
|
|
|
|
Years Ended
|
December 31,
|
|
|
|
|
December 31,
|
2015
|
|
|
2014
|
|
|
|
|
|
2015
|
|
|
2014
|
|
|
|
|
|
OPERATING ACTIVITIES
|
|
|
|
|
$37,466
|
|
|
$8,105
|
|
|
Net income
|
|
$57,265
|
|
|
$41,749
|
|
|
|
|
|
Adjustments to reconcile net income to net cash provided by
operating activities:
|
|
|
|
|
13,124
|
|
|
14,455
|
|
|
|
Depreciation
|
|
52,974
|
|
|
56,575
|
|
1,709
|
|
|
2,096
|
|
|
|
Amortization
|
|
7,140
|
|
|
7,717
|
|
(28,295
|
)
|
|
(10,820
|
)
|
|
|
Change in long-term liabilities, deferred taxes and other credits
|
|
(27,358
|
)
|
|
(10,725
|
)
|
608
|
|
|
629
|
|
|
|
Provision for write-off of property, plant and equipment
|
|
867
|
|
|
1,915
|
|
(13
|
)
|
|
-
|
|
|
|
Fair value adjustment on asset held for sale
|
|
3,212
|
|
|
-
|
|
103
|
|
|
8,331
|
|
|
|
Write-off of pension liability adjustment due to settlement
|
|
103
|
|
|
8,331
|
|
-
|
|
|
(165
|
)
|
|
|
Gain on disposition or involuntary conversion of assets
|
|
(1,056
|
)
|
|
(1,126
|
)
|
(21
|
)
|
|
(40
|
)
|
|
|
Excess tax benefit of options exercised
|
|
(624
|
)
|
|
(201
|
)
|
422
|
|
|
224
|
|
|
|
Compensation and benefits paid or payable in Class A Common Stock
|
|
1,707
|
|
|
1,384
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Changes in operating assets and liabilities that provide/(use) cash:
|
|
|
|
|
3,983
|
|
|
(16,493
|
)
|
|
|
Accounts receivable
|
|
(404
|
)
|
|
(6,564
|
)
|
2,480
|
|
|
11,494
|
|
|
|
Inventories
|
|
(8,277
|
)
|
|
(744
|
)
|
2,110
|
|
|
1,043
|
|
|
|
Prepaid expenses and other current assets
|
|
1,253
|
|
|
1,318
|
|
(2,564
|
)
|
|
2,452
|
|
|
|
Income taxes prepaid and receivable
|
|
(3,156
|
)
|
|
2,566
|
|
(1,534
|
)
|
|
3,507
|
|
|
|
Accounts payable
|
|
(6,001
|
)
|
|
640
|
|
1,220
|
|
|
(2,777
|
)
|
|
|
Accrued liabilities
|
|
2,081
|
|
|
(11,042
|
)
|
5,085
|
|
|
775
|
|
|
|
Income taxes payable
|
|
9,072
|
|
|
1,535
|
|
809
|
|
|
(2,620
|
)
|
|
|
Other, net
|
|
7,139
|
|
|
(9,132
|
)
|
36,692
|
|
|
20,196
|
|
|
|
Net cash provided by operating activities
|
|
95,937
|
|
|
84,196
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
INVESTING ACTIVITIES
|
|
|
|
|
(8,933
|
)
|
|
(12,118
|
)
|
|
|
Purchases of property, plant and equipment
|
|
(48,622
|
)
|
|
(58,224
|
)
|
(1,384
|
)
|
|
(145
|
)
|
|
|
Purchased software
|
|
(1,973
|
)
|
|
(649
|
)
|
-
|
|
|
165
|
|
|
|
Proceeds from sale or involuntary conversion of assets
|
|
2,797
|
|
|
1,126
|
|
(10,317
|
)
|
|
(12,098
|
)
|
|
|
Net cash used in investing activities
|
|
(47,798
|
)
|
|
(57,747
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
FINANCING ACTIVITIES
|
|
|
|
|
50,308
|
|
|
3,306
|
|
|
|
Proceeds from borrowings
|
|
95,126
|
|
|
13,396
|
|
(55,115
|
)
|
|
(14,200
|
)
|
|
|
Principal payments on debt
|
|
(102,215
|
)
|
|
(45,124
|
)
|
(2
|
)
|
|
-
|
|
|
|
Debt acquisition costs
|
|
(1,673
|
)
|
|
-
|
|
98
|
|
|
163
|
|
|
|
Proceeds from options exercised
|
|
1,897
|
|
|
773
|
|
21
|
|
|
40
|
|
|
|
Excess tax benefit of options exercised
|
|
624
|
|
|
201
|
|
(5,442
|
)
|
|
(5,096
|
)
|
|
|
Dividends paid
|
|
(21,088
|
)
|
|
(19,729
|
)
|
(10,132
|
)
|
|
(15,787
|
)
|
|
|
Net cash used in financing activities
|
|
(27,329
|
)
|
|
(50,483
|
)
|
|
|
|
|
|
|
|
|
|
|
(2,910
|
)
|
|
(7,970
|
)
|
|
Effect of exchange rate changes on cash and cash equivalents
|
|
(15,499
|
)
|
|
(18,830
|
)
|
|
|
|
|
|
|
|
|
|
|
13,333
|
|
|
(15,659
|
)
|
|
Increase/(decrease) in cash and cash equivalents
|
|
5,311
|
|
|
(42,864
|
)
|
171,780
|
|
|
195,461
|
|
|
Cash and cash equivalents at beginning of period
|
|
179,802
|
|
|
222,666
|
|
$185,113
|
|
|
$179,802
|
|
|
Cash and cash equivalents at end of period
|
|
$185,113
|
|
|
$179,802
|
|
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.
Q4 Financial Performance February 8, 2016 ©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 fourth-quarter earnings press release dated February 8, 2016, 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 December 31, 2015 2014 Percent
Change Impact of Changes in Currency Translation Rates Percent Change
excluding Currency Rate Effect Machine Clothing (MC) $145,004 $160,238
-9.5% ($7,364) -4.9% Albany Engineered Composites (AEC) 32,462 31,421
3.3% (688) 5.5% Total $177,466 $191,659 -7.4% ($8,052) -3.2% (in
thousands) Net Sales Years ended December 31, 2015 2014 Percent Change
Impact of Changes in Currency Translation Rates Percent Change excluding
Currency Rate Effect Machine Clothing (MC) $608,581 $655,026 -7.1%
($38,015) -1.3% Albany Engineered Composites (AEC) 101,287 90,319 12.1%
(1,594) 13.9% Total $709,868 $745,345 -4.8% ($39,609) 0.6% 3
Gross Profit Margin by
Quarter Percentage of Net Sales 45.0% 42.4% 41.9% 43.0% 47.5% 45.2%
48.4% 47.4% 41.5% 38.9% 38.2% 38.0% 42.3% 31.7% 42.4% 40.4% 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 December 31, 2015 2014 Years
ended December 31, 2015 2014 Net income attributable to the Company, as
reported $1.17 $0.25 $1.79* $1.31 Adjustments: Restructuring charges,
net 0.21 0.04 0.48 0.12 Income tax adjustments (0.93) - (0.69) 0.10
Foreign currency revaluation (gains)/losses 0.01 (0.10) (0.07) (0.21)
Pension settlement charge - 0.16 - 0.16 Gains from sale of investment
and insurance recovery - - (0.02) (0.04) Net income attributable to the
Company, excluding adjustments $0.46 $0.35 $1.49 $1.44 *Includes $0.28
charge for BR725
Adjusted EBITDA Three
Months ended December 31, 2015 (in thousands) Machine Clothing Albany
Engineered Composites Corporate expenses and other Total Company Net
income $30,342 ($1,843) $8,967 $37,466 Interest expense, net - - 1,935
1,935 Income tax expense/(benefit) - - (26,185) (26,185) Depreciation
and amortization 9,425 3,295 2,113 14,833 EBITDA 39,767 1,452 (13,170)
28,049 Restructuring and other, net 8,282 - 1,635 9,917 Foreign currency
revaluation (gains)/losses (542) - 1,092 550 Pension settlement charge -
- - - Pretax (income)/loss attributable to non-controlling interest in
ASC - 135 - 135 Adjusted EBITDA $47,507 $1,587 ($10,443) $38,651 Three
Months ended December 31, 2014 Machine Clothing Albany Engineered
Composites Corporate expenses and other Total Company $33,120 ($697)
($24,318) $8,105 - - 2,592 2,592 - - 4,316 4,316 10,996 3,499 2,056
16,551 44,116 2,802 (15,354) 31,564 1,701 - - 1,701 (2,115) (249)
(2,559) (4,923) - - 8,190 8,190 - (275) - (275) $43,702 $2,278 ($9,723)
$36,257 *Includes $14.0 million charge for BR725 Year ended December 31,
2015 (in thousands) Machine Clothing Albany Engineered Composites
Corporate expenses and other Total Company Adjusted EBITDA $197,950
($16,335)* ($40,639) $140,976 Year ended December 31, 2014 Machine
Clothing Albany Engineered Composites Corporate expenses and other Total
Company $182,423 $1,102 ($38,718) $144,807 6
Debt $ thousands $94,040
$78,225 $88,205 $92,970 $111,765 $120,172 $98,710 $80,570 $302,419
$285,061 $283,666 $272,772 $282,603 $302,646 $270,490 $265,683 $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 December 31, 2015 Net Debt Total Debt 7
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