Albany International Corp. (NYSE:AIN) today reported operating
results for its third quarter of 2023, which ended September 30,
2023.
"We are reporting another strong quarter," said President and
CEO, Gunnar Kleveland. "Revenue of $281 million, was up $20 million
or 7.9% year-over-year primarily due to sales growth in Engineered
Composites and one month of Heimbach results in the Machine
Clothing segment. Both business segments are continuing to deliver
on their long-term plans for profitable growth.
"In Machine Clothing, we closed on our acquisition of Heimbach
on August 31 and welcome the Heimbach employees and customers to
Albany. We are focused on integrating the operations and expect the
acquisition to be accretive to earnings and cash flow in 2025.
Machine Clothing delivered excellent results, particularly in light
of the macroeconomic conditions in both Europe and China.
"Engineered Composites is executing on its long-term growth
strategy delivering top-line growth across commercial, defense and
space markets. The new business pipeline is robust, and I am
excited about the opportunities it represents.
"Our revised guidance takes into account our year-to-date
performance, anticipated market conditions, and the modestly
dilutive impact of the Heimbach acquisition," concluded
Kleveland.
For the third quarter ended September 30,
2023:
- Net revenues were $281.1 million, up 7.9%, or 7.1% after
adjusting for currency translation, when compared to the prior
year. MC's net revenues increased 8.6%, driven by Heimbach Net
revenues and, to a lesser extent, higher Net revenues in tissue and
packaging grades, offset by lower Net revenues in pulp and
engineered fabrics. AEC's Net revenues increased 6.9%, primarily
driven by growth on LEAP programs, the Boeing Frames program, and
other commercial programs, offset by lower CH-53K sales.
- Gross profit of $101.8 million was 1.3% higher than the $100.5
million reported for the same period of 2022; overall gross margin
declined by more than 200 basis points, driven by lower margins at
Heimbach and by an unfavorable shift in program revenue mix at
AEC.
- Selling, Technical, General, and Research (STG&R) expenses
were $61.7 million, compared to $46.8 million in the same period of
2022; the increase was driven by executive transition costs,
acquisition-related expenses, higher personnel-related costs, and
unfavorable changes to currency translation rates.
- Operating income was $40.1 million, compared to $53.6 million
in the prior year, the result of higher STG&R expenses as
described.
- Effective tax rate for the quarter was 25.3%, compared to
-41.7% for the third quarter of 2022. The prior year tax rate was
driven by the release of residual taxes as a result of the pension
settlement at that time; excluding the effect of the pension
settlement and related adjustments, the effective tax rate for the
third quarter of 2022 was 24.6%.
- Net income attributable to the Company was $27.1 million ($0.87
per share), compared to $10.7 million ($0.34 per share) in the
third quarter of 2022; Adjusted earnings per share (or Adjusted
EPS, a non-GAAP measure) was $1.02 per share, compared to $1.15 per
share for the same period last year.
- Adjusted EBITDA (a non-GAAP measure) was $64.7 million,
compared to $68.1 million in the third quarter of 2022, a decrease
of 4.9%. Please see the tables below for a reconciliation of
non-GAAP measures to their comparable GAAP measures.
Outlook for Full-Year 2023
The Company has updated its guidance for the full year of 2023
as follows:
- Total company revenue between $1.100 and $1.130 billion, up $60
million;
- Effective income tax rate, including tax adjustments, between
32% and 33%, implying an effective tax rate between 28% and 30% for
the fourth quarter of 2023;
- Total company depreciation and amortization approximately $75
million;
- Capital expenditures in the range of $85 to $95 million;
- GAAP earnings per share between $3.02 and $3.37, taking into
account $0.14 to $0.18 of dilution from the Heimbach acquisition;
largely the result of purchase accounting;
- Adjusted earnings per share between $3.35 and $3.70, up $0.08
per share at the midpoint, and includes $0.02 to $0.06 of dilution
from Heimbach;
- Total company Adjusted EBITDA between $238 and $254
million;
- Machine Clothing revenue between $660 and $670 million,
increasing approximately $50 million, including the estimated
contribution from Heimbach;
- Machine Clothing Adjusted EBITDA between $215 and $225 million,
inclusive of approximately $2 million from the Heimbach
acquisition;
- Albany Engineered Composites (AEC) revenue between $440 and
$460 million, up $10 million; and
- Albany Engineered Composites Adjusted EBITDA between $85 and
$90 million, up modestly at the midpoint.
ALBANY INTERNATIONAL CORP.
CONSOLIDATED STATEMENTS OF
INCOME
(in thousands, except per share
amounts)
(unaudited)
Three Months Ended
September 30,
Nine Months Ended
September 30,
2023
2022
2023
2022
Net revenues
$
281,106
$
260,563
$
824,325
$
766,101
Cost of goods sold
179,271
160,070
520,468
473,411
Gross profit
101,835
100,493
303,857
292,690
Selling, general, and administrative
expenses
51,975
36,873
147,214
119,325
Technical and research expenses
9,708
9,934
30,303
29,984
Restructuring expenses, net
82
42
227
268
Operating income
40,070
53,644
126,113
143,113
Interest expense/(income), net
3,653
3,794
10,049
11,336
Pension settlement expense
—
49,128
—
49,128
Other (income)/expense, net
56
(6,918
)
(4,910
)
(17,891
)
Income before income taxes
36,361
7,640
120,974
100,540
Income tax expense/(benefit)
9,207
(3,183
)
39,908
22,273
Net income
27,154
10,823
81,066
78,267
Net income attributable to the
noncontrolling interest
45
129
396
635
Net income attributable to the Company
$
27,109
$
10,694
$
80,670
$
77,632
Earnings per share attributable to Company
shareholders - Basic
$
0.87
$
0.34
$
2.59
$
2.47
Earnings per share attributable to Company
shareholders - Diluted
$
0.87
$
0.34
$
2.58
$
2.46
Shares of the Company used in computing
earnings per share:
Basic
31,185
31,111
31,163
31,416
Diluted
31,283
31,223
31,256
31,518
Dividends declared per Class A share
$
0.25
$
0.21
$
0.75
$
0.63
ALBANY INTERNATIONAL CORP.
CONSOLIDATED BALANCE SHEETS
(in thousands, except share
data)
(unaudited)
September 30, 2023
December 31, 2022
ASSETS
Cash and cash equivalents
$
171,506
$
291,776
Accounts receivable, net
270,487
200,018
Contract assets, net
165,833
148,695
Inventories
180,991
139,050
Income taxes prepaid and receivable
6,402
7,938
Prepaid expenses and other current
assets
61,155
50,962
Total current assets
$
856,374
$
838,439
Property, plant and equipment, net
566,974
445,658
Intangibles, net
44,636
33,811
Goodwill
177,398
178,217
Deferred income taxes
15,284
15,196
Noncurrent receivables, net
25,300
27,913
Other assets
104,284
103,021
Total assets
$
1,790,250
$
1,642,255
LIABILITIES AND SHAREHOLDERS' EQUITY
Accounts payable
$
70,105
$
69,707
Accrued liabilities
135,343
126,385
Current maturities of long-term debt
27,246
—
Income taxes payable
10,103
15,224
Total current liabilities
242,797
211,316
Long-term debt
463,339
439,000
Other noncurrent liabilities
141,620
108,758
Deferred taxes and other liabilities
20,861
15,638
Total liabilities
868,617
774,712
COMMITMENTS AND CONTINGENCIES
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; 40,856,910 issued in 2023 and
40,785,434 in 2022
41
41
Additional paid in capital
446,470
441,540
Retained earnings
988,602
931,318
Accumulated items of other comprehensive
income:
Translation adjustments
(151,177
)
(146,851
)
Pension and postretirement liability
adjustments
(17,389
)
(15,783
)
Derivative valuation adjustment
12,957
17,707
Treasury stock (Class A), at cost;
9,661,845 shares in 2023 and 9,674,542 shares in 2022
(364,665
)
(364,923
)
Total Company shareholders' equity
914,839
863,049
Noncontrolling interest
6,794
4,494
Total equity
921,633
867,543
Total liabilities and shareholders'
equity
$
1,790,250
$
1,642,255
ALBANY INTERNATIONAL CORP.
CONSOLIDATED STATEMENTS OF CASH
FLOWS
(in thousands) (unaudited)
Nine Months Ended September
30,
2023
2022
OPERATING ACTIVITIES
Net income
$
81,066
$
78,267
Adjustments to reconcile net income to net
cash provided by operating activities:
Depreciation
50,164
46,864
Amortization
4,614
5,044
Change in deferred taxes and other
liabilities
(1,264
)
(15,582
)
Impairment of property, plant, equipment,
and inventory
577
2,610
Non-cash interest expense
1,148
840
Non-cash portion of pension settlement
expense
—
42,657
Compensation and benefits paid or payable
in Class A Common Stock
5,189
3,282
Provision for credit losses from
uncollected receivables and contract assets
641
885
Foreign currency remeasurement (gain) on
intercompany loans
(4,704
)
(6,629
)
Fair value adjustment on foreign currency
options
581
(409
)
Changes in operating assets and
liabilities that provided/(used) cash, net of impact of business
acquisition:
Accounts receivable
(18,172
)
(20,260
)
Contract assets
(16,550
)
(37,201
)
Inventories
(293
)
(24,895
)
Prepaid expenses and other current
assets
(3,030
)
(2,733
)
Income taxes prepaid and receivable
1,597
(2,179
)
Accounts payable
(6,661
)
5,081
Accrued liabilities
(16,454
)
(12,624
)
Income taxes payable
(5,810
)
2,639
Noncurrent receivables
2,276
2,976
Other noncurrent liabilities
(3,602
)
(5,960
)
Other, net
2,499
4,634
Net cash provided by operating
activities
73,812
67,307
INVESTING ACTIVITIES
Purchase of business, net of cash
acquired
(133,470
)
—
Purchases of property, plant and
equipment
(48,850
)
(50,948
)
Purchased software
(276
)
(1,884
)
Net cash used in investing activities
(182,596
)
(52,832
)
FINANCING ACTIVITIES
Proceeds from borrowings
71,249
145,000
Principal payments on debt
(51,479
)
(48,000
)
Principal payments on finance lease
liabilities
—
(654
)
Debt acquisition costs
(4,108
)
—
Purchase of Treasury shares
—
(84,780
)
Taxes paid in lieu of share issuance
(3,136
)
(770
)
Proceeds from options exercised
—
17
Dividends paid
(23,365
)
(19,932
)
Net cash used in financing activities
(10,839
)
(9,119
)
Effect of exchange rate changes on cash
and cash equivalents
(647
)
(30,910
)
Decrease in cash and cash equivalents
(120,270
)
(25,554
)
Cash and cash equivalents at beginning of
period
291,776
302,036
Cash and cash equivalents at end of
period
$
171,506
$
276,482
The following table presents the reconciliation of Net revenues
to net revenues excluding the effect of changes in currency
translation rates, a non-GAAP measure:
(in thousands, except
percentages)
Net revenues as reported, Q3
2023
Increase due to changes in currency
translation rates
Q3 2023 revenues on same basis as Q3
2022 currency translation rates
Net revenues as reported, Q3
2022
% Change compared to Q3 2022, excluding
currency rate effects
Machine Clothing
$
166,588
$
662
$
165,926
$
153,389
8.2
%
Albany Engineered Composites
114,518
1,275
113,243
107,174
5.7
%
Consolidated total
$
281,106
$
1,937
$
279,169
$
260,563
7.1
%
(in thousands, except
percentages)
Net revenues as reported, YTD
2023
(Decrease)/ increase due to changes in
currency translation rates
YTD 2023 revenues on same basis as 2022
currency translation rates
Net revenues as reported, YTD
2022
% Change compared to 2022, excluding
currency rate effects
Machine Clothing
$
479,027
$
(3,684
)
$
482,711
$
459,121
5.1
%
Albany Engineered Composites
345,298
851
344,447
306,980
12.2
%
Consolidated total
$
824,325
$
(2,833
)
$
827,158
$
766,101
8.0
%
The following table presents Gross profit and Gross profit
margin:
(in thousands, except
percentages)
Gross profit, Q3 2023
Gross profit margin, Q3 2023
Gross profit, Q3 2022
Gross profit margin, Q3 2022
Machine Clothing
$
79,257
47.6
%
$
79,232
51.7
%
Albany Engineered Composites
22,578
19.7
%
21,261
19.8
%
Consolidated total
$
101,835
36.2
%
$
100,493
38.6
%
(in thousands, except
percentages)
Gross profit, YTD 2023
Gross profit margin, YTD 2023
Gross profit, YTD 2022
Gross profit margin, YTD 2022
Machine Clothing
$
238,031
49.7
%
$
237,434
51.7
%
Albany Engineered Composites
65,826
19.1
%
55,256
18.0
%
Consolidated total
$
303,857
36.9
%
$
292,690
38.2
%
A reconciliation from Net income/(loss) (GAAP) to Adjusted
EBITDA (non-GAAP) for the current-year and comparable prior-year
periods has been calculated as follows:
Three months ended September 30,
2023
(in thousands)
Machine Clothing
Albany Engineered
Composites
Corporate expenses
and other
Total Company
Net income/(loss) (GAAP)
$
50,710
$
9,374
$
(32,930
)
$
27,154
Interest expense/(income), net
—
—
3,653
3,653
Income tax expense
—
—
9,207
9,207
Depreciation and amortization expense
5,976
12,510
975
19,461
EBITDA (non-GAAP)
56,686
21,884
(19,095
)
59,475
Restructuring expenses, net
82
—
—
82
Foreign currency revaluation
(gains)/losses (a)
(656
)
19
516
(121
)
CEO transition expenses
—
—
2,052
2,052
Inventory step-up impacting Cost of goods
sold
1,370
—
—
1,370
Acquisition/integration costs
—
273
1,642
1,915
Pre-tax (income) attributable to
noncontrolling interest
—
(73
)
—
(73
)
Adjusted EBITDA (non-GAAP)
$
57,482
$
22,103
$
(14,885
)
$
64,700
Adjusted EBITDA margin (Adjusted EBITDA
divided by Net revenues) (non-GAAP)
34.5
%
19.3
%
—
23.0
%
Three months ended September 30,
2022
(in thousands)
Machine Clothing
Albany Engineered
Composites
Corporate expenses
and other
Total Company
Net income/(loss) (GAAP)
$
57,247
$
9,958
$
(56,382
)
$
10,823
Interest expense/(income), net
—
—
3,794
3,794
Income tax benefit
—
—
(3,183
)
(3,183
)
Depreciation and amortization expense
4,913
11,303
818
17,034
EBITDA (non-GAAP)
62,160
21,261
(54,953
)
28,468
Restructuring expenses, net
42
—
—
42
Foreign currency revaluation
(gains)/losses (a)
(2,931
)
122
(6,633
)
(9,442
)
Dissolution of business relationships in
Russia
(214
)
—
—
(214
)
Pension settlement expense
—
—
49,128
49,128
Acquisition/integration costs
—
255
—
255
Pre-tax (income) attributable to
noncontrolling interest
—
(176
)
—
(176
)
Adjusted EBITDA (non-GAAP)
$
59,057
$
21,462
$
(12,458
)
$
68,061
Adjusted EBITDA margin (Adjusted EBITDA
divided by Net revenues) (non-GAAP)
38.5
%
20.0
%
—
26.1
%
Nine months ended September 30,
2023
(in thousands)
Machine Clothing
Albany Engineered
Composites
Corporate expenses
and other
Total Company
Net income/(loss) (GAAP)
$
153,400
$
27,460
$
(99,794
)
$
81,066
Interest expense/(income), net
—
—
10,049
10,049
Income tax expense
—
—
39,908
39,908
Depreciation and amortization expense
15,682
36,246
2,850
54,778
EBITDA (non-GAAP)
169,082
63,706
(46,987
)
185,801
Restructuring expenses, net
227
—
—
227
Foreign currency revaluation
(gains)/losses (a)
1,870
19
(3,609
)
(1,720
)
CEO transition expenses
—
—
2,052
2,052
Inventory step-up impacting Cost of goods
sold
1,370
—
—
1,370
Acquisition/integration costs
—
813
2,005
2,818
Pre-tax (income) attributable to
noncontrolling interest
—
(474
)
—
(474
)
Adjusted EBITDA (non-GAAP)
$
172,549
$
64,064
$
(46,539
)
$
190,074
Adjusted EBITDA margin (Adjusted EBITDA
divided by Net revenues-non-GAAP)
36.0
%
18.6
%
—
23.1
%
Nine months ended September 30,
2022
(in thousands)
Machine Clothing
Albany Engineered
Composites
Corporate expenses
and other
Total Company
Net income/(loss) (GAAP)
$
161,752
$
20,688
$
(104,173
)
$
78,267
Interest expense/(income), net
—
—
11,336
11,336
Income tax expense
—
—
22,273
22,273
Depreciation and amortization expense
14,716
34,792
2,400
51,908
EBITDA (non-GAAP)
176,468
55,480
(68,164
)
163,784
Restructuring expenses, net
255
—
13
268
Foreign currency revaluation
(gains)/losses (a)
(3,690
)
755
(17,644
)
(20,579
)
Dissolution of business relationships in
Russia
1,573
—
781
2,354
Pension settlement expense
—
—
49,128
49,128
Acquisition/integration costs
—
806
—
806
Pre-tax (income) attributable to
noncontrolling interest
—
(633
)
—
(633
)
Adjusted EBITDA (non-GAAP)
$
174,606
$
56,408
$
(35,886
)
$
195,128
Adjusted EBITDA margin (Adjusted EBITDA
divided by Net revenues-non-GAAP)
38.0
%
18.4
%
—
25.5
%
Per share impact of the adjustments to earnings per share are as
follows:
Three months ended September 30,
2023
(in thousands, except per share
amounts)
Pre tax
Amounts
Tax
Effect
After tax
Effect
Per share
Effect
Restructuring expenses, net
$
82
$
21
$
61
$
0.00
Foreign currency revaluation
(gains)/losses (a)
(121
)
(35
)
(86
)
0.00
CEO transition expenses
2,052
—
2,052
0.07
Inventory step-up impacting Cost of goods
sold
1,370
411
959
0.03
Acquisition/integration costs
1,915
476
1,439
0.05
Three months ended September 30,
2022
(in thousands, except per share
amounts)
Pre tax
Amounts
Tax
Effect
After tax
Effect
Per share
Effect
Restructuring expenses, net
$
42
$
6
$
36
$
0.00
Foreign currency revaluation
(gains)/losses (a)
(9,442
)
(2,694
)
(6,748
)
(0.22
)
Dissolution of business relationships in
Russia
(214
)
(18
)
(196
)
(0.01
)
Pension settlement expense
49,128
11,947
37,181
1.20
Tax impact of stranded OCI benefit from
Tax Cuts and Job Act (TCJA) for pension liability (b)
—
5,217
(5,217
)
(0.17
)
Acquisition/integration costs
255
77
178
0.01
Nine months ended September 30,
2023
(in thousands, except per share
amounts)
Pre tax
Amounts
Tax
Effect
After tax
Effect
Per share
Effect
Restructuring expenses, net
$
227
$
68
$
159
$
0.01
Foreign currency revaluation
(gains)/losses (a)
(1,720
)
(504
)
(1,216
)
(0.04
)
CEO transition expenses
2,052
—
2,052
0.07
Withholding tax related to internal
restructuring
—
(3,026
)
3,026
0.10
Inventory step-up impacting Cost of goods
sold
1,370
411
959
0.03
Acquisition/integration costs
2,818
725
2,093
0.07
Nine months ended September 30,
2022
(in thousands, except per share
amounts)
Pre tax
Amounts
Tax
Effect
After tax
Effect
Per share
Effect
Restructuring expenses, net
$
268
$
75
$
193
$
0.01
Foreign currency revaluation
(gains)/losses (a)
(20,579
)
(5,829
)
(14,750
)
(0.47
)
Dissolution of business relationships in
Russia
2,354
314
2,040
0.06
Pension settlement expense
49,128
11,947
37,181
1.20
Tax impact of stranded OCI benefit from
TCJA for pension liability (b)
—
5,217
(5,217
)
(0.17
)
Acquisition/integration costs
806
241
565
0.03
The following table provides a reconciliation of Earnings per
share to Adjusted Earnings per share:
Three months ended September
30,
Nine months ended September
30,
Per share amounts (Basic)
2023
2022
2023
2022
Earnings per share (GAAP)
$
0.87
$
0.34
$
2.59
$
2.47
Adjustments, after tax:
Restructuring expenses, net
—
—
0.01
0.01
Foreign currency revaluation
(gains)/losses (a)
—
(0.22
)
(0.04
)
(0.47
)
Dissolution of business relationships in
Russia
—
(0.01
)
—
0.06
Pension settlement charge
—
1.20
—
1.20
Tax impact of stranded OCI benefit from
Tax Cuts and Job Act (TCJA) for pension liability (b)
—
(0.17
)
—
(0.17
)
CEO transition expenses
0.07
—
0.07
—
Withholding tax related to internal
restructuring
—
—
0.10
—
Inventory step-up impacting Cost of goods
sold
0.03
—
0.03
—
Acquisition/integration costs
0.05
0.01
0.07
0.03
Adjusted Earnings per share (non-GAAP)
$
1.02
$
1.15
$
2.83
$
3.13
The calculations of net debt are as follows:
(in thousands)
September 30, 2023
December 31, 2022
September 30, 2022
Current maturities of long-term debt
$
27,246
$
—
$
—
Long-term debt
463,339
439,000
447,000
Total debt
490,585
439,000
447,000
Cash and cash equivalents
171,506
291,776
276,482
Net debt (non-GAAP)
$
319,079
$
147,224
$
170,518
The calculation of net leverage ratio as of September 30, 2023
is as follows:
Total Company
Twelve months ended
Nine months ended
Trailing twelve months
ended
(in thousands)
December 31, 2022
September 30, 2022
September 30, 2023
September 30, 2023 (non-GAAP)
(c)
Net income/(loss) (GAAP)
$
96,508
$
78,267
$
81,066
$
99,307
Interest expense/(income), net
14,000
11,336
10,049
12,713
Income tax expense
35,472
22,273
39,908
53,107
Depreciation and amortization expense
69,049
51,908
54,778
71,919
EBITDA (non-GAAP)
215,029
163,784
185,801
237,046
Restructuring expenses, net
106
268
227
65
Foreign currency revaluation
(gains)/losses (a)
(9,829
)
(20,579
)
(1,720
)
9,030
Dissolution of business relationships in
Russia
2,275
2,354
—
(79
)
CEO transition expenses
—
—
2,052
2,052
Inventory step-up impacting Cost of goods
sold
—
—
1,370
1,370
Pension settlement expense
49,128
49,128
—
—
IP address sales
(3,420
)
—
—
(3,420
)
Acquisition/integration costs
1,057
806
2,818
3,069
Pre-tax (income) attributable to
noncontrolling interest
(817
)
(633
)
(474
)
(658
)
Adjusted EBITDA (non-GAAP)
$
253,529
$
195,128
$
190,074
$
248,475
(in thousands, except for net leverage
ratio)
September 30, 2023
Net debt (non-GAAP)
$
319,079
Trailing twelve months Adjusted EBITDA
(non-GAAP)
248,475
Net leverage ratio (non-GAAP)
1.28
(a) Foreign currency revaluation
(gains)/losses represent unrealized gains and losses arising from
the remeasurement of monetary assets and liabilities denominated in
non-functional currencies on the balance sheet date.
(b) Our Adjusted EPS excluded the benefit
from the reclassification of stranded income tax effects caused by
the TCJA associated with the US pension plan liability that was
eliminated in September 2022, a one-time event that would not recur
in the future. Such stranded income tax effect represented a
one-time benefit that distorted the effective tax rate for the
quarter and year-to-date ended September 30, 2022, and would not be
indicative of ongoing or expected future income tax rate at the
Company. Management believes excluding pension settlement expense
and its income tax impact, including the stranded income tax
effects, from its Adjusted EBITDA and Adjusted EPS for the quarter
and year-to-date ended September 30, 2022 would provide investors a
transparent view and enhanced ability to better assess the
Company’s ongoing operational and financial performance.
(c) Calculated as amounts incurred during
the twelve months ended December 31, 2022, less those incurred
during the nine months ended September 30, 2022, plus those
incurred during the nine months ended September 30, 2023.
The tables below provide a reconciliation of forecasted
full-year 2023 Adjusted EBITDA and Adjusted EPS (non-GAAP measures)
to the comparable GAAP measures.
Forecast of Full Year 2023 Adjusted
EBITDA
Machine Clothing
AEC
(in millions)
Low
High
Low
High
Net income attributable to the Company
(GAAP) (d)
$
185
$
195
$
36
$
40
Income attributable to the noncontrolling
interest
—
—
—
—
Interest expense/(income), net
—
—
—
—
Income tax expense
—
—
—
—
Depreciation and amortization
23
23
48
49
EBITDA (non-GAAP)
208
218
84
89
Restructuring expenses, net (e)
—
—
—
—
Foreign currency revaluation
(gains)/losses (e)
2
2
—
—
Acquisition/integration costs (e)
—
—
1
1
Cost of goods sold adjustment due to
acquisition
5
5
—
—
Pre-tax (income)/loss attributable to
non-controlling interest
—
—
—
—
Adjusted EBITDA (non-GAAP)
$
215
$
225
$
85
$
90
(d) Interest, Other income/expense and
Income taxes are not allocated to the business segments
Forecast of Full Year 2023 Adjusted
EBITDA
Total Company
(in millions)
Low
High
Net income attributable to the Company
(GAAP)
$
95
$
105
Income attributable to the noncontrolling
interest
—
—
Interest expense/(income), net
14
14
Income tax expense
46
52
Depreciation and amortization
75
75
EBITDA (non-GAAP)
230
246
Restructuring expenses, net (e)
—
—
Foreign currency revaluation
(gains)/losses (e)
(2
)
(2
)
Acquisition/integration costs (e)
3
3
CEO transition expenses
2
2
Inventory step-up impacting Cost of goods
sold
5
5
Pre-tax (income)/loss attributable to
non-controlling interest
—
—
Adjusted EBITDA (non-GAAP)
$
238
$
254
Total Company
Forecast of Full Year 2023 Earnings per
share (basic) (f)
Low
High
Net income attributable to the Company
(GAAP)
$
3.02
$
3.37
Restructuring expenses, net (e)
0.01
0.01
Foreign currency revaluation
(gains)/losses (e)
(0.04
)
(0.04
)
Withholding tax related to internal
restructuring
0.10
0.10
CEO transition expenses
0.07
0.07
Inventory step-up impacting Cost of goods
sold
0.12
0.12
Acquisition/integration costs (e)
0.07
0.07
Adjusted Earnings per share (non-GAAP)
$
3.35
$
3.70
(e) Due to the uncertainty of these items,
we are unable to forecast these items for 2023
(f) Calculations based on weighted average
shares outstanding estimate of approximately 31.2 million
About Albany International Corp.
Albany International is a leading developer and manufacturer of
engineered components, using advanced materials processing and
automation capabilities, with two core businesses. Machine Clothing
is the world’s leading producer of fabrics and process belts used
in the manufacture of all grades of paper products. Albany
Engineered Composites is a growing designer and manufacturer of
advanced materials-based engineered components for jet engine and
airframe applications, supporting both commercial and military
platforms. Albany International is headquartered in Rochester, New
Hampshire, operates 32 plants in 14 countries, employs
approximately 5,400 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.
Non-GAAP Measures
This release, including the conference call commentary
associated with this release, contains certain non-GAAP measures,
that should not be considered in isolation or as a substitute for
the related GAAP measures. Such non-GAAP measures include net
revenues and percent change in net revenues, excluding the impact
of currency translation effects; EBITDA, Adjusted EBITDA, and
Adjusted EBITDA margin; Net debt; Net leverage ratio; and Adjusted
earnings per share (or Adjusted EPS). Management believes that
these non-GAAP measures provide additional useful information to
investors regarding the Company’s operational performance.
Presenting Net revenues and change in Net revenues, after
currency effects are excluded, provides management and investors
insight into underlying revenues trends. Net revenues, or percent
changes in net revenues, excluding currency rate effects, are
calculated by converting amounts reported in local currencies into
U.S. dollars at the exchange rate of a prior period. These amounts
are then compared to the U.S. dollar amount as reported in the
current period.
EBITDA (calculated as net income excluding interest, income
taxes, depreciation and amortization), Adjusted EBITDA, and
Adjusted EPS are performance measures that relate to the Company’s
continuing operations. The Company defines Adjusted EBITDA as
EBITDA excluding costs or benefits that are not reflective of the
Company’s ongoing or expected future operational performance. Such
excluded costs or benefits do not consist of normal, recurring cash
items necessary to generate revenues or operate our business.
Adjusted EBITDA margin represents Adjusted EBITDA expressed as a
percentage of net revenues.
The Company defines Adjusted EPS as basic earnings per share
(GAAP), adjusted by the after tax per share amount of costs or
benefits not reflective of the Company’s ongoing or expected future
operational performance. The income tax effects are calculated
using the applicable statutory income tax rate of the jurisdictions
where such costs or benefits were incurred or the effective tax
rate applicable to total company results.
The Company’s Adjusted EBITDA, Adjusted EBITDA margin, and
Adjusted EPS may not be comparable to similarly titled measures of
other companies.
Net debt aids investors in understanding the Company’s debt
position if all available cash were applied to pay down
indebtedness.
Net leverage ratio informs the investors of the Company's
financial leverage at the end of the reporting period, providing an
indicator of the Company's ability to repay its debt.
We encourage investors to review our financial statements and
publicly-filed reports in their entirety and not to rely on any
single financial measure.
Forward-Looking Statements
This press release may contain statements, estimates, guidance
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,” “guidance,” “guide,” and similar
expressions identify forward-looking statements, which generally
are not historical in nature. Because 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), actual
results may differ materially from those expressed or implied by
such forward-looking statements.
Forward-looking statements in this release or in the webcast
include, without limitation, statements about macroeconomic
conditions, including inflationary cost pressures, as well as
global events, which include but are not limited to geopolitical
events; paper-industry trends and conditions during 2023 and in
future years; expectations in 2023 and in future periods of
revenues, EBITDA, Adjusted EBITDA (both in dollars and as a
percentage of net revenues), Adjusted EPS, income, gross profit,
gross margin, cash flows 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 the revenues growth potential of key AEC
programs, as well as AEC as a whole; 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; 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.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20231106556007/en/
John Hobbs 603-330-5897 john.hobbs@albint.com
Albany (NYSE:AIN)
Historical Stock Chart
From Apr 2024 to May 2024
Albany (NYSE:AIN)
Historical Stock Chart
From May 2023 to May 2024