Albany International Corp. (NYSE:AIN) today reported operating
results for its full year and fourth quarter of 2023, which ended
December 31, 2023.
"In 2023, our business remained focused on operational execution
and delivered outstanding financial performance," said Gunnar
Kleveland, President and Chief Executive Officer. "I am pleased to
report record revenues of $1.15 billion in 2023, up 11% from last
year. GAAP EPS grew in the mid-teens, and Adjusted EPS of $4.06,
was up 4.9% from last year. Importantly the company delivered 2023
free cash flow of $64 million, up significantly from the $32
million generated in 2022.
"Fourth quarter results were particularly strong with
outstanding contributions from both of our business segments,"
continued Kleveland. "Our first full quarter of Heimbach
integration is complete, and we are on track to deliver on the
promise of that acquisition. Meanwhile, our core Machine Clothing
operations grew fourth quarter revenue and expanded profit margins
despite soft business conditions in Europe. The Engineered
Composites segment continues to grow. We have completed another
year of growth on our commercial programs, and recent program wins
were also important drivers of year-over-year revenue and profit
growth in the business. We are well positioned for another strong
year in 2024."
For the fourth-quarter ended December 31,
2023:
- Net revenues were $323.6 million, up 20.4%, or 19.6% after
adjusting for currency translation, when compared to the prior
year, primarily driven by Heimbach's contribution during the fourth
quarter and growth in the Engineered Composites segment.
- Gross profit of $119.9 million was 23.5% higher than the $97.1
million reported for the same period of 2022, mainly due to higher
net revenues from the Machine Clothing segment due to the addition
of Heimbach and higher net revenues from new programs and
commercial programs in the Engineered Composites segment.
- Selling, General, and Administrative expenses were $67.7
million, compared to $49.4 million in the same period of 2022. The
increase was due to the addition of Heimbach.
- Operating income was $41.8 million, compared to $37.9 million
in the prior year, an increase of 10.2%.
- The effective tax rate for the quarter was 22.6% compared to a
42.0% effective tax rate in the fourth quarter of 2022. Favorable
discrete tax items in 2023 vs. unfavorable discrete tax items in
2022 and a shift in taxable income to lower-rate jurisdictions
resulted in a lower effective tax rate for the fourth quarter of
2023.
- Net income attributable to the Company was $30.5 million ($0.97
per share), compared to $18.1 million ($0.58 per share) in the
fourth quarter of 2022. Adjusted Diluted earnings per share (or
Adjusted EPS, a non-GAAP measure) was $1.22 per share, compared to
$0.75 per share for the same period of last year.
- Adjusted EBITDA (a non-GAAP measure) was $75.0 million,
compared to $58.4 million in the fourth quarter of 2022, an
increase of 28.5%.
Please see the tables below for a reconciliation of non-GAAP
measures to their comparable GAAP measures.
"We are on sound financial footing as we enter 2024," said
Robert Starr, Chief Financial Officer. "Our businesses continue to
deliver outstanding execution that will help sustain solid results
and generate healthy cash flow this year. We will continue to
invest thoughtfully to drive long-term growth."
Outlook for the Full-Year 2024
Albany International's initial financial guidance for the
full-year 2024:
- Total company revenue between $1.26 and $1.33 billion;
- Effective income tax rate between 29% and 31%;
- Capital expenditures in the range of $90 to $95 million;
- Diluted earnings per share between $3.55 and $4.05. This
includes:
- Higher pension expense due to the expiration of the prior
service cost benefit (approximately $0.09 per share);
- Higher Depreciation and Amortization due to the recording of
Heimbach-acquired assets at fair value (approximately $0.08 per
share); and
- Higher interest expense resulting from the termination of
interest rate swaps in the fourth quarter of 2024 (approximately
$0.06 per share, assuming the current interest rate
environment).
- Total company Adjusted EBITDA between $260 to $290
million;
- Machine Clothing revenue between $760 to $790 million;
- Machine Clothing Adjusted EBITDA between $230 and $250
million;
- Albany Engineered Composites (AEC) revenue between $500 to $540
million; and
- Albany Engineered Composites Adjusted EBITDA between $97 to
$107 million.
ALBANY INTERNATIONAL CORP.
CONSOLIDATED STATEMENTS OF
INCOME
(in thousands, except per share
amounts)
(unaudited)
Three Months Ended
December 31,
Twelve Months Ended
December 31,
2023
2022
2023
2022
Net revenues
$
323,584
$
268,786
$
1,147,909
$
1,034,887
Cost of goods sold
203,723
171,694
724,191
645,105
Gross profit
119,861
97,092
423,718
389,782
Selling, general, and administrative
expenses
67,701
49,388
214,915
168,713
Technical and research expenses
10,324
9,957
40,627
39,941
Restructuring expenses, net
55
(162
)
282
106
Operating income
41,781
37,909
167,894
181,022
Interest expense, net
3,552
2,664
13,601
14,000
Pension settlement expense
—
—
—
49,128
Other (income)/expense, net
(1,253
)
3,805
(6,163
)
(14,086
)
Income before income taxes
39,482
31,440
160,456
131,980
Income tax expense
8,938
13,199
48,846
35,472
Net income
30,544
18,241
111,610
96,508
Net income attributable to the
noncontrolling interest
94
111
490
746
Net income attributable to the Company
$
30,450
$
18,130
$
111,120
$
95,762
Earnings per share attributable to Company
shareholders - Basic
$
0.98
$
0.58
$
3.56
$
3.06
Earnings per share attributable to Company
shareholders - Diluted
$
0.97
$
0.58
$
3.55
$
3.04
Shares of the Company used in computing
earnings per share:
Basic
31,195
31,111
31,171
31,339
Diluted
31,332
31,267
31,276
31,455
Dividends declared per share, Class A
$
0.26
$
0.25
$
1.01
$
0.88
ALBANY INTERNATIONAL CORP.
CONSOLIDATED BALANCE SHEETS
(in thousands, except share
data)
(unaudited)
December 31, 2023
December 31, 2022
ASSETS
Cash and cash equivalents
$
173,420
$
291,776
Accounts receivable, net
287,781
200,018
Contract assets, net
182,281
148,695
Inventories
169,567
139,050
Income taxes prepaid and receivable
11,043
7,938
Prepaid expenses and other current
assets
53,872
50,962
Total current assets
$
877,964
$
838,439
Property, plant and equipment, net
601,989
445,658
Intangibles, net
44,646
33,811
Goodwill
180,181
178,217
Deferred income taxes
22,941
15,196
Noncurrent receivables, net
4,392
27,913
Other assets
102,901
103,021
Total assets
$
1,835,014
$
1,642,255
LIABILITIES AND SHAREHOLDERS' EQUITY
Accounts payable
$
87,104
$
69,707
Accrued liabilities
142,988
126,385
Current maturities of long-term debt
4,218
—
Income taxes payable
14,369
15,224
Total current liabilities
248,679
211,316
Long-term debt
452,667
439,000
Other noncurrent liabilities
139,385
108,758
Deferred taxes and other liabilities
26,963
15,638
Total liabilities
867,694
774,712
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
448,218
441,540
Retained earnings
1,010,942
931,318
Accumulated items of other comprehensive
income:
Translation adjustments
(124,901
)
(146,851
)
Pension and postretirement liability
adjustments
(17,346
)
(15,783
)
Derivative valuation adjustment
9,079
17,707
Treasury stock (Class A), at cost;
9,661,845 shares in 2023 and 9,674,542 in 2022
(364,665
)
(364,923
)
Total Company shareholders' equity
961,368
863,049
Noncontrolling interest
5,952
4,494
Total equity
967,320
867,543
Total liabilities and shareholders'
equity
$
1,835,014
$
1,642,255
ALBANY INTERNATIONAL CORP.
CONSOLIDATED STATEMENTS OF CASH
FLOWS
(in thousands) (unaudited)
Twelve Months Ended December
31,
2023
2022
OPERATING ACTIVITIES
Net income
$
111,610
$
96,508
Adjustments to reconcile net income to net
cash provided by operating activities:
Depreciation
70,374
62,480
Amortization
6,359
6,569
Change in deferred taxes and other
liabilities
(2,046
)
(8,496
)
Impairment of property, plant, equipment,
and inventory
1,773
1,808
Non-cash interest expense
1,404
1,118
Non-cash portion of pension settlement
expense
—
42,657
Compensation and benefits paid or payable
in Class A Common Stock
6,936
4,527
Provision/(recovery) for credit losses
from uncollected receivables and contract assets
640
1,408
Foreign currency remeasurement (gain)/loss
on intercompany loans
(2,831
)
(4,434
)
Fair value adjustment on foreign currency
options
(139
)
(509
)
Changes in operating assets and
liabilities that provided/(used) cash, net of impact of business
acquisition:
Accounts receivable
(11,038
)
(14,301
)
Contract assets
(32,156
)
(36,434
)
Inventories
15,093
(24,541
)
Prepaid expenses and other current
assets
1,530
(4,134
)
Income taxes prepaid and receivable
(2,897
)
(6,005
)
Accounts payable
(5,672
)
8,572
Accrued liabilities
(10,441
)
3,226
Income taxes payable
(1,988
)
183
Noncurrent receivables
3,723
3,911
Other noncurrent liabilities
(9,783
)
(10,133
)
Other, net
7,605
4,234
Net cash provided by operating
activities
148,056
128,214
INVESTING ACTIVITIES
Purchase of business, net of cash
acquired
(133,470
)
—
Purchases of property, plant and
equipment
(83,560
)
(93,675
)
Purchased software
(869
)
(2,673
)
Net cash used in investing activities
(217,899
)
(96,348
)
FINANCING ACTIVITIES
Proceeds from borrowings
78,040
162,000
Principal payments on debt
(92,274
)
(73,000
)
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
(31,163
)
(26,465
)
Net cash used in financing activities
(52,641
)
(23,652
)
Effect of exchange rate changes on cash
and cash equivalents
4,128
(18,474
)
Increase/(decrease) in cash and cash
equivalents
(118,356
)
(10,260
)
Cash and cash equivalents at beginning of
period
291,776
302,036
Cash and cash equivalents at end of
period
$
173,420
$
291,776
Financial tables and reconciliation of
non-GAAP measures to comparable GAAP measures
The following tables present Net revenues and the effect of
changes in currency translation rates:
(in thousands, except
percentages)
Net revenues as reported, Q4
2023
Increase due to changes in
currency translation rates
Q4 2023 revenues on same basis
as Q4 2022 currency translation rates
Net revenues as reported, Q4
2022
% Change compared to Q4 2022,
excluding currency rate effects
Machine Clothing
$
191,741
$
1,088
$
190,653
$
150,340
26.8
%
Albany Engineered Composites
131,843
896
130,947
118,446
10.6
%
Consolidated total
$
323,584
$
1,984
$
321,600
$
268,786
19.6
%
(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
$
670,768
$
(2,596
)
$
673,364
$
609,461
10.5
%
Albany Engineered Composites
477,141
1,747
475,394
425,426
11.7
%
Consolidated total
$
1,147,909
$
(849
)
$
1,148,758
$
1,034,887
11.0
%
The following tables present Gross profit and Gross profit
margin:
(in thousands, except
percentages)
Gross profit,
Q4 2023
Gross profit margin, Q4
2023
Gross profit,
Q4 2022
Gross profit margin, Q4
2022
Machine Clothing
$
93,527
48.8
%
$
74,851
49.8
%
Albany Engineered Composites
26,334
20.0
%
22,241
18.8
%
Consolidated total
$
119,861
37.0
%
$
97,092
36.1
%
(in thousands, except
percentages)
Gross profit,
YTD 2023
Gross profit margin, YTD
2023
Gross profit,
YTD 2022
Gross profit margin, YTD
2022
Machine Clothing
$
331,558
49.4
%
$
312,285
51.2
%
Albany Engineered Composites
92,160
19.3
%
77,497
18.2
%
Consolidated total
$
423,718
36.9
%
$
389,782
37.7
%
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 December 31,
2023
(in thousands)
Machine Clothing
Albany Engineered
Composites
Corporate expenses
and other
Total Company
Net income/(loss) (GAAP)
$
45,978
$
14,127
$
(29,561
)
$
30,544
Interest expense, net
—
—
3,552
3,552
Income tax expense
—
—
8,938
8,938
Depreciation and amortization expense
8,209
12,784
962
21,955
EBITDA (non-GAAP)
54,187
26,911
(16,109
)
64,989
Restructuring expenses, net
55
—
—
55
Foreign currency revaluation
(gains)/losses (a)
2,247
44
725
3,016
CEO transition expenses
—
—
667
667
Inventory step-up impacting Cost of goods
sold
4,110
—
—
4,110
Acquisition/integration costs
984
268
1,124
2,376
Pre-tax (income) attributable to
noncontrolling interest
(24
)
(167
)
—
(191
)
Adjusted EBITDA (non-GAAP)
$
61,559
$
27,056
$
(13,593
)
$
75,022
Adjusted EBITDA margin (Adjusted EBITDA
divided by Net revenues) (non-GAAP)
32.1
%
20.5
%
—
23.2
%
Three months ended December 31,
2022
(in thousands)
Machine Clothing
Albany Engineered
Composites
Corporate expenses
and other
Total Company
Net income/(loss) (GAAP)
$
44,462
$
10,891
$
(37,112
)
$
18,241
Interest expense, net
—
—
2,664
2,664
Income tax expense
—
—
13,199
13,199
Depreciation and amortization expense
4,767
11,410
964
17,141
EBITDA (non-GAAP)
49,229
22,301
(20,285
)
51,245
Restructuring expenses, net
(163
)
—
1
(162
)
Foreign currency revaluation
(gains)/losses (a)
3,170
(83
)
7,663
10,750
Acquisition/integration costs
—
251
—
251
Dissolution of business relationships in
Russia
(79
)
—
—
(79
)
IP address sales
—
—
(3,420
)
(3,420
)
Pre-tax (income) attributable to
noncontrolling interest
—
(184
)
—
(184
)
Adjusted EBITDA (non-GAAP)
$
52,157
$
22,285
$
(16,041
)
$
58,401
Adjusted EBITDA margin (Adjusted EBITDA
divided by Net revenues) (non-GAAP)
34.7
%
18.8
%
—
21.7
%
Twelve months ended December 31,
2023
(in thousands)
Machine Clothing
Albany Engineered
Composites
Corporate expenses
and other
Total Company
Net income/(loss) (GAAP)
$
199,378
$
41,587
$
(129,355
)
$
111,610
Interest expense, net
—
—
13,601
13,601
Income tax expense
—
—
48,846
48,846
Depreciation and amortization expense
23,891
49,030
3,812
76,733
EBITDA (non-GAAP)
223,269
90,617
(63,096
)
250,790
Restructuring expenses, net
282
—
—
282
Foreign currency revaluation
(gains)/losses (a)
4,117
63
(2,884
)
1,296
CEO transition expenses
—
—
2,719
2,719
Inventory step-up impacting Cost of goods
sold
5,480
—
—
5,480
Acquisition/integration costs
984
1,081
3,129
5,194
Pre-tax (income) attributable to
noncontrolling interest
(24
)
(641
)
—
(665
)
Adjusted EBITDA (non-GAAP)
$
234,108
$
91,120
$
(60,132
)
$
265,096
Adjusted EBITDA margin (Adjusted EBITDA
divided by Net revenues) (non-GAAP)
34.9
%
19.1
%
—
23.1
%
Twelve months ended December 31,
2022
(in thousands)
Machine Clothing
Albany Engineered
Composites
Corporate expenses
and other
Total Company
Net income/(loss) (GAAP)
$
206,214
$
31,579
$
(141,285
)
$
96,508
Interest expense, net
—
—
14,000
14,000
Income tax expense
—
—
35,472
35,472
Depreciation and amortization expense
19,483
46,202
3,364
69,049
EBITDA (non-GAAP)
225,697
77,781
(88,449
)
215,029
Restructuring expenses, net
92
—
14
106
Foreign currency revaluation
(gains)/losses (a)
(520
)
672
(9,981
)
(9,829
)
Dissolution of business relationships in
Russia
1,494
—
781
2,275
Pension settlement expense
—
—
49,128
49,128
IP address sales
—
—
(3,420
)
(3,420
)
Acquisition/integration costs
—
1,057
—
1,057
Pre-tax (income) attributable to
noncontrolling interest
—
(817
)
—
(817
)
Adjusted EBITDA (non-GAAP)
$
226,763
$
78,693
$
(51,927
)
$
253,529
Adjusted EBITDA margin (Adjusted EBITDA
divided by Net revenues) (non-GAAP)
37.2
%
18.5
%
—
24.5
%
Per share impact of the adjustments to diluted earnings per
share are as follows:
Three months ended December 31,
2023
(in thousands, except per share
amounts)
Pre tax
Amounts
Tax
Effect
After tax
Effect
Per share
Effect
Restructuring expenses, net
$
55
$
13
$
42
$
0.00
Foreign currency revaluation
(gains)/losses (a)
3,016
933
2,083
0.07
CEO transition expenses
667
—
667
0.02
Inventory step-up impacting Cost of goods
sold
4,110
908
3,202
0.10
Acquisition/integration costs
2,376
486
1,890
0.06
Three months ended December 31,
2022
(in thousands, except per share
amounts)
Pre tax
Amounts
Tax
Effect
After tax
Effect
Per share
Effect
Restructuring expenses, net
$
(162
)
$
(41
)
$
(121
)
$
0.00
Foreign currency revaluation
(gains)/losses (a)
10,750
3,247
7,503
0.24
Dissolution of business relationships in
Russia
(79
)
(9
)
(70
)
0.00
IP address sales
(3,420
)
(872
)
(2,548
)
(0.08
)
Acquisition/integration costs
251
75
176
0.01
Year ended December 31, 2023
(in thousands, except per share
amounts)
Pre tax
Amounts
Tax
Effect
After tax
Effect
Per share
Effect
Restructuring expenses, net
$
282
$
70
$
212
$
0.01
Foreign currency revaluation
(gains)/losses (a)
1,296
416
880
0.03
CEO transition expenses
2,719
—
2,719
0.09
Withholding tax related to internal
restructuring
—
(3,026
)
3,026
0.10
Inventory step-up impacting Cost of goods
sold
5,480
1,211
4,269
0.14
Acquisition/integration costs
5,194
951
4,243
0.14
Year ended December 31, 2022
(in thousands, except per share
amounts)
Pre tax
Amounts
Tax
Effect
After tax
Effect
Per share
Effect
Restructuring expenses, net
$
106
$
34
$
72
$
0.01
Foreign currency revaluation
(gains)/losses (a)
(9,829
)
(2,582
)
(7,247
)
(0.23
)
Dissolution of business relationships in
Russia
2,275
305
1,970
0.06
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
)
IP address sales
(3,420
)
(872
)
(2,548
)
(0.08
)
Acquisition/integration costs
1,057
316
741
0.04
The following table provides a reconciliation of Earnings per
share to Adjusted Diluted Earnings per share:
Three months ended December
31,
Twelve months ended December
31,
Per share amounts
2023
2022
2023
2022
Earnings per share attributable to Company
shareholders - Basic (GAAP)
$
0.98
$
0.58
$
3.56
$
3.06
Effect of dilutive stock-based
compensation plans
(0.01
)
—
(0.01
)
(0.02
)
Earnings per share attributable to Company
shareholders - Diluted (GAAP)
$
0.97
$
0.58
$
3.55
$
3.04
Adjustments, after tax:
Restructuring expenses, net
—
—
0.01
0.01
Foreign currency revaluation
(gains)/losses (a)
0.07
0.24
0.03
(0.23
)
CEO transition expenses
0.02
—
0.09
—
Inventory step-up impacting Cost of goods
sold
0.10
—
0.14
—
Dissolution of business relationships in
Russia
—
—
—
0.06
Pension settlement charge
—
—
—
1.20
Withholding tax related to internal
restructuring
—
—
0.10
—
Tax impact of stranded OCI benefit from
Tax Cuts and Job Act (TCJA) for pension liability (b)
—
—
—
(0.17
)
IP address sales
—
(0.08
)
—
(0.08
)
Acquisition/integration costs
0.06
0.01
0.14
0.04
Adjusted Diluted Earnings per share
(non-GAAP)
$
1.22
$
0.75
$
4.06
$
3.87
(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.
The calculations of net debt are as follows:
(in thousands)
December 31, 2023
September 30, 2023
June 30, 2023
March 31, 2023
December 31, 2022
Current maturities of long-term debt
$
4,218
$
27,246
$
—
$
—
$
—
Long-term debt
452,667
463,339
487,000
491,000
439,000
Total debt
456,885
490,585
487,000
491,000
439,000
Cash and cash equivalents
173,420
171,506
300,916
304,258
291,776
Net debt (non GAAP)
$
283,465
$
319,079
$
186,084
$
186,742
$
147,224
The calculation of net leverage ratio as of December 31, 2023 is
as follows:
Total Company
Twelve months ended
(in thousands)
December 31, 2023
Net income/(loss) (GAAP)
$
111,610
Interest expense, net
13,601
Income tax expense
48,846
Depreciation and amortization expense
76,733
EBITDA (non-GAAP)
250,790
Restructuring expenses, net
282
Foreign currency revaluation
(gains)/losses (a)
1,296
CEO transition expenses
2,719
Inventory step-up impacting Cost of goods
sold
5,480
Acquisition/integration costs
5,194
Pre-tax (income) attributable to
noncontrolling interest
(665
)
Adjusted EBITDA (non-GAAP)
$
265,096
(in thousands, except for net leverage
ratio)
December 31, 2023
Net debt (non-GAAP)
$
283,465
Adjusted EBITDA (non-GAAP)
265,096
Net leverage ratio (non-GAAP)
1.07
The tables below provide a reconciliation of initial outlook for
the full-year 2024 Adjusted EBITDA and Adjusted EPS (non-GAAP
measures) to the comparable GAAP measures:
Initial Outlook Full Year 2024 Adjusted
EBITDA
Machine Clothing
AEC
(in millions)
Low
High
Low
High
Net income attributable to the Company
(GAAP) (c)
$
200
$
215
$
47
$
52
Income attributable to the noncontrolling
interest
—
—
(1
)
(1
)
Interest expense, net
—
—
—
—
Income tax expense
—
—
—
—
Depreciation and amortization
30
35
50
55
EBITDA (non-GAAP)
230
250
96
106
Restructuring expenses, net (c)
—
—
—
—
Foreign currency revaluation
(gains)/losses (c)
—
—
—
—
Acquisition/integration costs (c)
—
—
—
—
Pre-tax (income)/loss attributable to
non-controlling interest
—
—
1
1
Adjusted EBITDA (non-GAAP)
$
230
$
250
$
97
$
107
(c) Interest, Other income/expense and
Income taxes are not allocated to the business segments
Initial Outlook Full Year 2024 Adjusted
EBITDA
Total Company
(in millions)
Low
High
Net income attributable to the Company
(GAAP) (c)
$
111
$
126
Income attributable to the noncontrolling
interest
(1
)
(1
)
Interest expense, net
17
18
Income tax expense
47
51
Depreciation and amortization
85
95
EBITDA (non-GAAP)
259
289
Restructuring expenses, net (d)
—
—
Foreign currency revaluation
(gains)/losses (d)
—
—
Acquisition/integration costs (d)
—
—
Pre-tax (income)/loss attributable to
non-controlling interest
1
1
Adjusted EBITDA (non-GAAP)
$
260
$
290
Total Company
Forecast of Full Year 2024 Earnings per
share (diluted) (e)
Low
High
Net income attributable to the Company
(GAAP) (c)
$
3.55
$
4.05
Restructuring expenses, net (d)
—
—
Foreign currency revaluation
(gains)/losses (d)
—
—
Acquisition/integration costs (d)
—
—
Adjusted Diluted Earnings per share
(non-GAAP)
$
3.55
$
4.05
(d) Due to the uncertainty of these items,
we are unable to forecast these items for 2024.
(e) Calculations based on estimated
diluted shares outstanding 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
custom-designed, consumable belts essential for the manufacture of
paper, paperboard, tissue and towel, pulp, non-wovens and a variety
of other industrial applications.
- Albany Engineered Composites is a growing designer and
manufacturer of advanced materials-based engineered components for
demanding aerospace applications, supporting both commercial and
military platforms.
Albany International is headquartered in Rochester, New
Hampshire, operates 32 facilities in 14 countries, employs
approximately 5,600 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
Diluted 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 diluted 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/20240226431606/en/
John Hobbs 603-330-5897 john.hobbs@albint.com
Albany (NYSE:AIN)
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