Exhibit 99.1
Albany
International Reports Third-Quarter Results
Third-quarter
Financial Highlights
-
Net
sales were $222.1 million, an increase of 16.1% compared to 2016 (see
Table 1).
-
Net
income attributable to the Company was $15.3 million ($0.47 per
share), compared to $13.1 million ($0.41 per share) in Q3 2016.
-
Net
income attributable to the Company, excluding adjustments (a non-GAAP
measure), was $0.57 per share, compared to $0.41 per share in Q3 2016
(see Table 17).
-
Adjusted
EBITDA (a non-GAAP measure) was $51.9 million, compared to $42.7
million in Q3 2016 (see Tables 8 and 9). Q3 2017 Adjusted EBITDA
includes a $2.0 million insurance recovery gain related to the theft
in Japan that was reported in Q4 2016.
ROCHESTER, N.H.--(BUSINESS WIRE)--October 30, 2017--Albany International
Corp. (NYSE:AIN) reported that Q3 2017 Net income attributable to the
Company was $15.3 million, including a net benefit of $3.1 million for
income tax adjustments. Q3 2016 Net income attributable to the Company
was $13.1 million, including favorable income tax adjustments of $0.4
million.
Q3 2017 Income before income taxes was $19.0 million. During Q3 2017,
the Company decided to discontinue the Bear Claw® line of hydraulic
fracking components used in the oil and gas industry, which was part of
the Harris aerostructures business acquired by AEC in 2016. This
decision resulted in a non-cash restructuring charge of $4.5 million for
the write-off of intangible assets and equipment, and a $3.2 million
charge to Cost of goods sold for the write-off of inventory. Q3 2017
results also include $1.0 million of other restructuring charges, $1.5
million of losses from foreign currency revaluation, and an insurance
recovery gain of $2.0 million related to the theft in Japan that was
reported in Q4 2016. Q3 2016 income before income taxes was $20.9
million, including restructuring charges of $0.3 million and gains of
$0.2 million from foreign currency revaluation.
Table 1 summarizes net sales and the effect of changes in currency
translation rates:
|
Table 1
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Sales
Three Months ended
September 30,
|
|
Percent
|
|
Impact of
Changes
in
Currency
Translation
|
|
Percent Change
excluding
Currency Rate
|
|
(in thousands, excluding percentages)
|
|
|
2017
|
|
2016
|
|
Change
|
|
Rates
|
|
Effect
|
|
Machine Clothing (MC)
|
|
|
$
|
150,694
|
|
$
|
143,248
|
|
5.2
|
%
|
|
$
|
1,771
|
|
4.0
|
%
|
|
Albany Engineered Composites (AEC)
|
|
|
|
71,447
|
|
|
48,024
|
|
48.8
|
|
|
|
486
|
|
47.8
|
|
|
Total
|
|
|
$
|
222,141
|
|
$
|
191,272
|
|
16.1
|
%
|
|
$
|
2,257
|
|
15.0
|
%
|
In comparison to Q3 2016, the increase in MC net sales was due to strong
performance in the tissue, packaging and pulp grades, which more than
offset continuing declines in the publication grades. The increase in
AEC net sales was primarily due to growth in the LEAP, 787 fuselage
frames and CH-53K programs.
Table 2 summarizes gross profit by segment:
|
Table 2
|
|
|
|
|
|
|
|
|
|
Three Months ended
September 30, 2017
|
|
Three Months ended
September 30, 2016
|
|
(in thousands, excluding percentages)
|
|
|
Gross profit
|
|
Percent of sales
|
|
Gross profit
|
|
Percent of sales
|
|
Machine Clothing
|
|
|
$
|
73,028
|
|
|
48.5
|
%
|
|
$
|
68,104
|
|
|
47.5
|
%
|
|
Albany Engineered Composites
|
|
|
|
6,638
|
|
|
9.3
|
|
|
|
4,556
|
|
|
9.5
|
|
|
Corporate Expenses
|
|
|
|
(231
|
)
|
|
-
|
|
|
|
(240
|
)
|
|
-
|
|
|
Total
|
|
|
$
|
79,435
|
|
|
35.8
|
%
|
|
$
|
72,420
|
|
|
37.9
|
%
|
The increase in MC gross profit reflects higher sales and strong
productivity. Despite the write-off of Bear Claw® inventory, which
reduced AEC gross profit by $3.2 million and gross profit percentage by
4.4%, AEC gross profit increased, reflecting higher sales and improved
productivity. Total company gross profit percentage was reduced 1.4% by
the Bear Claw® inventory write-off.
Table 3 summarizes selling, technical, general and research (STG&R)
expenses by segment:
|
Table 3
|
|
|
|
|
|
|
|
|
|
Three Months ended
September 30, 2017
|
|
Three Months ended
September 30, 2016
|
|
(in thousands, excluding percentages)
|
|
|
STG&R Expense
|
|
Percent of sales
|
|
STG&R Expense
|
|
Percent of sales
|
|
Machine Clothing
|
|
|
$30,258
|
|
20.1
|
%
|
|
$28,276
|
|
19.7
|
%
|
|
Albany Engineered Composites
|
|
|
10,532
|
|
14.7
|
|
|
8,445
|
|
17.6
|
|
|
Corporate Expenses
|
|
|
10,839
|
|
-
|
|
|
10,553
|
|
-
|
|
|
Total
|
|
|
$51,629
|
|
23.2
|
%
|
|
$47,274
|
|
24.7
|
%
|
Losses from the revaluation of nonfunctional-currency assets and
liabilities increased third-quarter STG&R expenses by $1.3 million in
2017 and $0.1 million in 2016. The increase in third-quarter AEC STG&R
expenses is due primarily to higher R&D spending (see table 4) and
higher amortization expense related to acquisition accounting
adjustments made in Q4 2016.
Table 4 summarizes third-quarter expenses associated with internally
funded research and development by segment:
|
Table 4
|
|
|
|
|
|
|
|
Research and development expenses by segment
Three Months ended
September
30,
|
|
(in thousands)
|
|
|
2017
|
|
2016
|
|
Machine Clothing
|
|
|
$4,229
|
|
$3,937
|
|
Albany Engineered Composites
|
|
|
3,828
|
|
2,656
|
|
Total
|
|
|
$8,057
|
|
$6,593
|
Table 5 summarizes third-quarter operating income by segment:
|
Table 5
|
|
|
|
|
|
|
|
Operating Income/(loss)
Three Months ended
September 30,
|
|
(in thousands)
|
|
|
2017
|
|
2016
|
|
Machine Clothing
|
|
|
$42,674
|
|
|
$40,039
|
|
|
Albany Engineered Composites
|
|
|
(9,301
|
)
|
|
(4,529
|
)
|
|
Corporate expenses
|
|
|
(11,070
|
)
|
|
(10,690
|
)
|
|
Total
|
|
|
$22,303
|
|
|
$24,820
|
|
Table 6 presents the effect on operating income from restructuring,
currency revaluation, and the Bear Claw® inventory write-off:
|
Table 6
|
|
|
|
|
|
|
|
|
|
Expenses in Q3 2017
resulting from
|
|
Expenses/(gain) in Q3 2016
resulting from
|
|
(in thousands)
|
|
|
Restructuring
|
|
Revaluation
|
|
Bear Claw®
Inventory
Write-off
|
|
Restructuring
|
|
Revaluation
|
|
Machine Clothing
|
|
|
$96
|
|
$1,114
|
|
$-
|
|
($212
|
)
|
|
$86
|
|
Albany Engineered Composites
|
|
|
5,407
|
|
137
|
|
3,155
|
|
640
|
|
|
-
|
|
Corporate expenses
|
|
|
-
|
|
5
|
|
-
|
|
(102
|
)
|
|
4
|
|
Total
|
|
|
$5,503
|
|
$1,256
|
|
$3,155
|
|
$326
|
|
|
$90
|
AEC restructuring charges in Q3 2017 consisted primarily of non-cash
charges (write-off of intangibles and equipment) associated with the
decision to exit the Bear Claw® product line. In October 2017, the
Company announced that its MC entity in France had initiated discussions
with the local works council regarding a potential restructuring. Due to
the ongoing nature of those discussions, the Company has not recorded a
restructuring charge related to this proposal.
Q3 2017 Other income/expense, net, was income of $1.2 million, including
losses related to the revaluation of nonfunctional-currency balances of
$0.3 million, and an insurance recovery gain of $2.0 million related to
the theft in Japan that was reported in Q4 2016. Q3 2016 Other
income/expense, net, was expense of $0.2 million, including income
related to the revaluation of nonfunctional-currency balances of $0.3
million.
Table 7 summarizes currency revaluation effects on certain financial
metrics:
|
Table 7
|
|
|
|
|
|
|
|
Income/(loss) attributable to currency revaluation
Three Months
ended September 30,
|
|
(in thousands)
|
|
|
2017
|
|
2016
|
|
Operating income
|
|
|
$(1,256
|
)
|
|
$(90
|
)
|
|
Other income/(expense), net
|
|
|
(261
|
)
|
|
312
|
|
|
Total
|
|
|
$(1,517
|
)
|
|
$222
|
|
The Company’s income tax rate based on income from continuing operations
was 36.4% for Q3 2017, compared to 37.5% for Q3 2016. Discrete tax items
and the effect of a change in the estimated income tax rate decreased
income tax expense by $3.1 million in Q3 2017, principally due to a
reduction in net deferred tax asset valuation allowances in certain
countries. Discrete tax items and the effect of a change in the
estimated income tax rate decreased income tax expense by $0.4 million
in Q3 2016.
Tables 8 and 9 provide a reconciliation of operating income and net
income to EBITDA and Adjusted EBITDA:
|
Table 8
|
|
|
|
|
|
|
|
|
|
|
Three Months ended September 30, 2017
(in thousands)
|
|
|
Machine
Clothing
|
|
Albany
Engineered
Composites
|
|
Corporate
expenses
and other
|
|
Total
Company
|
|
Operating income/(loss) (GAAP)
|
|
|
$
|
42,674
|
|
$
|
(9,301
|
)
|
|
$
|
(11,070
|
)
|
|
$
|
22,303
|
|
|
Interest, taxes, other income/expense
|
|
|
|
-
|
|
|
-
|
|
|
|
(7,083
|
)
|
|
|
(7,083
|
)
|
|
Net income (GAAP)
|
|
|
|
42,674
|
|
|
(9,301
|
)
|
|
|
(18,153
|
)
|
|
|
15,220
|
|
|
Interest expense, net
|
|
|
|
-
|
|
|
-
|
|
|
|
4,429
|
|
|
|
4,429
|
|
|
Income tax expense
|
|
|
|
-
|
|
|
-
|
|
|
|
3,809
|
|
|
|
3,809
|
|
|
Depreciation and amortization
|
|
|
|
8,380
|
|
|
8,591
|
|
|
|
1,159
|
|
|
|
18,130
|
|
|
EBITDA (non-GAAP)
|
|
|
|
51,054
|
|
|
(710
|
)
|
|
|
(8,756
|
)
|
|
|
41,588
|
|
|
Restructuring expenses, net
|
|
|
|
96
|
|
|
5,407
|
|
|
|
-
|
|
|
|
5,503
|
|
|
Foreign currency revaluation losses
|
|
|
|
1,114
|
|
|
137
|
|
|
|
266
|
|
|
|
1,517
|
|
|
Write-off of inventory in a discontinued product line
|
|
|
|
-
|
|
|
3,155
|
|
|
|
-
|
|
|
|
3,155
|
|
|
Pretax loss attributable to non-controlling interest in ASC
|
|
|
|
-
|
|
|
136
|
|
|
|
-
|
|
|
|
136
|
|
|
Adjusted EBITDA (non-GAAP)
|
|
|
$
|
52,264
|
|
$
|
8,125
|
|
|
$
|
(8,490
|
)
|
|
$
|
51,899
|
|
|
Table 9
|
|
|
|
|
|
|
|
|
|
|
Three Months ended September 30, 2016
(in thousands)
|
|
|
Machine
Clothing
|
|
Albany
Engineered
Composites
|
|
Corporate
expenses
and other
|
|
Total
Company
|
|
Operating income/(loss) (GAAP)
|
|
|
$
|
40,039
|
|
|
$
|
(4,529
|
)
|
|
$
|
(10,690
|
)
|
|
$
|
24,820
|
|
|
Interest, taxes, other income/expense
|
|
|
|
-
|
|
|
|
-
|
|
|
|
(11,411
|
)
|
|
|
(11,411
|
)
|
|
Net income (GAAP)
|
|
|
|
40,039
|
|
|
|
(4,529
|
)
|
|
|
(22,101
|
)
|
|
|
13,409
|
|
|
Interest expense, net
|
|
|
|
-
|
|
|
|
-
|
|
|
|
3,681
|
|
|
|
3,681
|
|
|
Income tax expense
|
|
|
|
-
|
|
|
|
-
|
|
|
|
7,488
|
|
|
|
7,488
|
|
|
Depreciation and amortization
|
|
|
|
9,032
|
|
|
|
8,027
|
|
|
|
1,386
|
|
|
|
18,445
|
|
|
EBITDA (non-GAAP)
|
|
|
|
49,071
|
|
|
|
3,498
|
|
|
|
(9,546
|
)
|
|
|
43,023
|
|
|
Restructuring expenses, net
|
|
|
|
(212
|
)
|
|
|
640
|
|
|
|
(102
|
)
|
|
|
326
|
|
|
Foreign currency revaluation losses/(gains)
|
|
|
|
86
|
|
|
|
-
|
|
|
|
(308
|
)
|
|
|
(222
|
)
|
|
Pretax (income) attributable to non-controlling interest in ASC
|
|
|
|
-
|
|
|
|
(428
|
)
|
|
|
-
|
|
|
|
(428
|
)
|
|
Adjusted EBITDA (non-GAAP)
|
|
|
$
|
48,945
|
|
|
$
|
3,710
|
|
|
$
|
(9,956
|
)
|
|
$
|
42,699
|
|
Payments for capital expenditures were $15.5 million in Q3 2017,
compared to $22.5 million in Q3 2016. Depreciation and amortization was
$18.1 million in Q3 2017, compared to $18.4 million in Q3 2016.
CFO Comments
CFO and Treasurer John Cozzolino commented, “Cash flow in the third
quarter improved compared to the first half of the year. The improvement
was primarily the result of strong operating performance and lower
capital expenditures. Cash balances increased about $15 million to a
total of $153 million, while total debt increased about $10 million to
$506 million as of the end of the quarter. The combined effect of those
two changes resulted in a $5 million decrease to net debt (total debt
less cash, see Table 19) to a balance of $352 million as of the end of
the quarter. The Company’s leverage ratio, as defined in our primary
debt agreements, was 2.55 at the end of Q3 2017, unchanged from Q2 and
well below our limit of 3.50.
”Payments for capital expenditures in Q3 were about $15 million, lower
than the previous two quarters due to timing of required cash payments.
We expect total company capital expenditures in Q4 and through 2018 to
be in the range of $20 - $25 million per quarter, as several key AEC
programs continue to ramp.
“The Company’s income tax rate based on income from continuing
operations was about 36% in Q3 2017, compared to 35% for the full-year
2016. The Company expects the full-year rate for 2017 to stay at
approximately 36%. Cash paid for income taxes was about $3 million in
Q3, bringing the year-to-date total to $22 million. For the full year,
we estimate cash taxes to range from $25 million to $28 million.”
CEO Comments
CEO Joseph Morone said, “Q3 2017 was an especially strong quarter for
Albany International. Aggregate sales, Net income and Adjusted EBITDA
grew sharply; MC’s performance was outstanding; and AEC continued its
rapid growth, took another incremental step forward in profitability,
and made good progress on its multiple ramp-ups and new business
development. Both businesses are now on pace to outperform our
previously upgraded full-year targets.
“MC sales grew in comparison to both Q3 2016 and Q2 2017, due to a
combination of strong performance and good economic conditions,
especially in the Americas. The market trends of recent quarters
continued. Sales in the publication grades again declined, though only
by about 3% compared to Q3 2016, while sales in packaging, tissue and
pulp grades grew. Although pricing pressure remained intense, Albany’s
pricing was once again stable, except in the publication grades where
pricing pressure is greatest. New product performance was outstanding
across virtually all product lines, and development of the new
technology platform continued to advance impressively. Gross margins
remained strong, due to good productivity gains and lower material costs.
“Because of end-of-year seasonal effects and the regression we typically
experience after especially strong quarters, Q4 will likely be the
weakest quarter of the year. But on a year-over-year basis, because of
good backlogs and healthy economic conditions, we expect Q4 2017 to be
comparable to Q4 2016. Given the strong year-to-date performance in MC,
this means that we now expect full-year Adjusted EBITDA to be at least
at the high-end of our normal $180 million to $195 million range.
“In AEC, compared to Q3 2016, sales increased by nearly 50%, driven by
growth in the LEAP, 787 fuselage frames, and CH-53K programs. Every AEC
plant is now facing the steepest part of their ramp-ups. Each made good
progress on quality and yield improvements, and in hiring, training, and
installation and qualification of new equipment. It is worth noting in
this regard that we are now constructing a second plant in Queretaro,
Mexico. The first plant, which is dedicated to LEAP fan blades and is a
satellite of the Rochester, New Hampshire LEAP plant, is on schedule to
begin production in Q4. The second plant, which we need to handle
growing demand for other engine components, will be a satellite of our
Boerne, Texas operation and is scheduled to begin production in the
second half of next year.
“As expected, the simultaneously high rates of hiring, training and
equipment installation across our plants held back productivity in Q3,
and will continue to do so for several more quarters. Nonetheless, AEC
continues to make steady, incremental progress toward its long-term
profitability objective of 18% to 20% Adjusted EBITDA as a percent of
sales by 2020. Because of the discontinuation of the non-aerospace Bear
Claw® product line, operating income declined compared to Q3 2016.
However, Adjusted EBITDA as a percent of sales grew to 11%, compared to
8% in Q3 2016.
“R&D spending grew sharply in the quarter, in support of rapidly
accelerating new business development activity. AEC is actively
exploring opportunities for near-term growth with existing customers,
both on programs already under contract and on programs that would be
new for AEC. Good progress was also made on longer-term growth
prospects, on both commercial and defense platforms. Given the
encouraging progress, we expect to update our projection of AEC’s 2020
revenue potential on our Q4 earnings call.
“As for the near-term outlook for AEC, we expect continued sharp sales
growth in Q4, and despite the heavy ramp-up activity, stable or
incrementally improved profitability. Last quarter, we revised upward
our revenue outlook for the year to the high end of our previously
stated outlook of 25% to 35% full-year revenue growth. We now expect
full-year revenue growth to be between 35% and 40%.
“In sum, this was an outstanding quarter for Albany, with good
performance in both businesses, and a stronger full-year outlook for
each business than the already strong, upgraded estimates we provided on
our last earnings call.”
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 22
plants in 10 countries, employs 4,400 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.
This release contains certain non-GAAP metrics, including: percent
change in net sales excluding currency rate effects (for each segment
and the Company as a whole); EBITDA and Adjusted EBITDA (for each
segment and the Company as a whole, represented in dollars or as a
percentage of net sales); net debt; and net income per share
attributable to the Company, excluding adjustments. Such items are
provided because management believes that, when reconciled from 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. EBITDA, or net income with interest, taxes, depreciation,
and amortization added back, is a common indicator of financial
performance used, among other things, to analyze and compare core
profitability between companies and industries because it eliminates
effects due to differences in financing, asset bases and taxes. An
understanding of the impact in a particular quarter of specific
restructuring costs, acquisition expenses, currency revaluation,
inventory write-offs associated with discontinued businesses, or other
gains and losses, on net income (absolute as well as on a per-share
basis), operating income or EBITDA can give management and investors
additional insight into core financial performance, especially when
compared to quarters in which such items had a greater or lesser effect,
or no effect. Restructuring expenses in the MC segment, while frequent
in recent years, are reflective of significant reductions in
manufacturing capacity and associated headcount in response to shifting
markets, and not of the profitability of the business going forward as
restructured. Net debt is, in the opinion of the Company, helpful to
investors wishing to understand what the Company’s debt position would
be if all available cash were applied to pay down indebtedness. EBITDA,
Adjusted EBITDA and net income per share attributable to the Company,
excluding adjustments, are performance measures that relate to the
Company’s continuing operations.
Percent changes in net sales, 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. That amount is then
compared to the U.S. dollar amount reported in the current period. The
Company calculates EBITDA by removing the following from Net income:
Interest expense net, Income tax expense, Depreciation and amortization.
Adjusted EBITDA is calculated by: adding to EBITDA costs associated with
restructuring, inventory write-offs associated with discontinued
businesses 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 in excess of previously recorded losses; subtracting (or
adding) Income (or loss) attributable to the non-controlling interest in
Albany Safran Composites (ASC); and adding expenses related to the
Company’s acquisition of Harris Corporation’s composite aerostructures
division. Adjusted EBITDA may also be presented as a percentage of net
sales by dividing it by net sales. Net income per share attributable to
the Company, excluding adjustments, is calculated by adding to (or
subtracting from) net income attributable to the Company per share, on
an after-tax basis: restructuring charges; inventory write-offs
associated with discontinued businesses; discrete tax charges (or gains)
and the effect of changes in the income tax rate; foreign currency
revaluation losses (or gains); acquisition expenses; and losses (or
gains) from the sale of investments.
EBITDA, Adjusted EBITDA, and net income per share attributable to the
Company, excluding adjustments, as defined by the Company, may not be
similar to similarly named measures of other companies. Such measures
are not 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 income tax rate based on income from continuing operations 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 10
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Sales
Nine Months ended
September 30,
|
|
Percent
|
|
Impact of
Changes
in Currency
|
|
Percent
Change
excluding
Currency
|
|
(in thousands, excluding percentages)
|
|
|
2017
|
|
2016
|
|
Change
|
|
Translation Rates
|
|
Rate Effect
|
|
Machine Clothing (MC)
|
|
|
$440,093
|
|
$437,445
|
|
0.6
|
%
|
|
$(1,311
|
)
|
|
0.9
|
%
|
|
Albany Engineered Composites (AEC)
|
|
|
196,896
|
|
129,348
|
|
52.2
|
|
|
(263
|
)
|
|
52.4
|
|
|
Total
|
|
|
$636,989
|
|
$566,793
|
|
12.4
|
%
|
|
$(1,574
|
)
|
|
12.7
|
%
|
|
Table 11
|
|
|
|
|
|
|
|
|
|
|
Nine Months ended September 30, 2017
(in thousands)
|
|
|
Machine
Clothing
|
|
Albany
Engineered
Composites*
|
|
Corporate
expenses
and other
|
|
Total
Company
|
|
Operating income/(loss) (GAAP)
|
|
|
$
|
119,352
|
|
$
|
(32,242
|
)
|
|
$
|
(33,523
|
)
|
|
$
|
53,587
|
|
|
Interest, taxes, other income/expense
|
|
|
|
-
|
|
|
-
|
|
|
|
(26,160
|
)
|
|
|
(26,160
|
)
|
|
Net income (GAAP)
|
|
|
|
119,352
|
|
|
(32,242
|
)
|
|
|
(59,683
|
)
|
|
|
27,427
|
|
|
Interest expense, net
|
|
|
|
-
|
|
|
-
|
|
|
|
13,042
|
|
|
|
13,042
|
|
|
Income tax expense
|
|
|
|
-
|
|
|
-
|
|
|
|
12,138
|
|
|
|
12,138
|
|
|
Depreciation and amortization
|
|
|
|
25,098
|
|
|
24,613
|
|
|
|
3,545
|
|
|
|
53,256
|
|
|
EBITDA (non-GAAP)
|
|
|
|
144,450
|
|
|
(7,629
|
)
|
|
|
(30,958
|
)
|
|
|
105,863
|
|
|
Restructuring expenses, net
|
|
|
|
1,012
|
|
|
9,208
|
|
|
|
-
|
|
|
|
10,220
|
|
|
Foreign currency revaluation losses
|
|
|
|
4,427
|
|
|
171
|
|
|
|
2,318
|
|
|
|
6,916
|
|
|
Write-off of inventory in a discontinued product line
|
|
|
|
-
|
|
|
3,155
|
|
|
|
-
|
|
|
|
3,155
|
|
|
Pretax (income) attributable to non-controlling interest in ASC
|
|
|
|
-
|
|
|
(178
|
)
|
|
|
-
|
|
|
|
(178
|
)
|
|
Adjusted EBITDA (non-GAAP)
|
|
|
$
|
149,889
|
|
$
|
4,727
|
|
|
$
|
(28,640
|
)
|
|
$
|
125,976
|
|
|
* Includes charge of $15.8 million related to revisions in the
estimated profitability of two long-term contracts.
|
|
Table 12
|
|
|
|
|
|
|
|
|
|
|
Nine Months ended September 30, 2016
(in thousands)
|
|
|
Machine
Clothing
|
|
Albany
Engineered
Composites
|
|
Corporate
expenses
and other
|
|
Total
Company
|
|
Operating income/(loss) (GAAP)
|
|
|
$
|
112,583
|
|
$
|
(14,083
|
)
|
|
$
|
(33,554
|
)
|
|
$
|
64,946
|
|
|
Interest, taxes, other income/expense
|
|
|
|
-
|
|
|
-
|
|
|
|
(28,120
|
)
|
|
|
(28,120
|
)
|
|
Net income (GAAP)
|
|
|
|
112,583
|
|
|
(14,083
|
)
|
|
|
(61,674
|
)
|
|
|
36,826
|
|
|
Interest expense, net
|
|
|
|
-
|
|
|
-
|
|
|
|
9,610
|
|
|
|
9,610
|
|
|
Income tax expense
|
|
|
|
-
|
|
|
-
|
|
|
|
20,613
|
|
|
|
20,613
|
|
|
Depreciation and amortization
|
|
|
|
27,845
|
|
|
17,778
|
|
|
|
5,601
|
|
|
|
51,224
|
|
|
EBITDA (non-GAAP)
|
|
|
|
140,428
|
|
|
3,695
|
|
|
|
(25,850
|
)
|
|
|
118,273
|
|
|
Restructuring expenses, net
|
|
|
|
5,921
|
|
|
1,787
|
|
|
|
(55
|
)
|
|
|
7,653
|
|
|
Foreign currency revaluation losses/(gains)
|
|
|
|
1,646
|
|
|
5
|
|
|
|
(2,355
|
)
|
|
|
(704
|
)
|
|
Acquisition expenses
|
|
|
|
-
|
|
|
5,367
|
|
|
|
-
|
|
|
|
5,367
|
|
|
Pretax loss attributable to non-controlling interest in ASC
|
|
|
|
-
|
|
|
36
|
|
|
|
-
|
|
|
|
36
|
|
|
Adjusted EBITDA (non-GAAP)
|
|
|
$
|
147,995
|
|
$
|
10,890
|
|
|
$
|
(28,260
|
)
|
|
$
|
130,625
|
|
|
Table 13
|
|
|
|
|
|
|
|
|
|
|
Three Months ended September 30, 2017
(in thousands,
except per share amounts)
|
|
|
Pretax
amounts
|
|
Tax Effect
|
|
After-tax
Effect
|
|
Per Share
Effect
|
|
Restructuring expenses, net
|
|
|
$5,503
|
|
$2,003
|
|
$3,500
|
|
$0.11
|
|
Foreign currency revaluation losses
|
|
|
1,517
|
|
552
|
|
965
|
|
0.03
|
|
Write-off of inventory in a discontinued product line
|
|
|
3,155
|
|
1,167
|
|
1,988
|
|
0.06
|
|
Unfavorable effect of change in income tax rate
|
|
|
-
|
|
741
|
|
741
|
|
0.02
|
|
Net discrete income tax benefit
|
|
|
-
|
|
3,866
|
|
3,866
|
|
0.12
|
|
Table 14
|
|
|
|
|
|
|
|
|
|
|
Three Months ended September 30, 2016
(in thousands,
except per share amounts)
|
|
|
Pretax
amounts
|
|
Tax Effect
|
|
After-tax
Effect
|
|
Per Share
Effect
|
|
Restructuring expenses, net
|
|
|
$
|
326
|
|
$
|
122
|
|
$
|
204
|
|
$
|
0.01
|
|
Foreign currency revaluation gains
|
|
|
|
222
|
|
|
83
|
|
|
139
|
|
|
0.00
|
|
Favorable effect of change in income tax rate
|
|
|
|
-
|
|
|
425
|
|
|
425
|
|
|
0.01
|
|
Net discrete income tax charge
|
|
|
|
-
|
|
|
74
|
|
|
74
|
|
|
0.00
|
|
Table 15
|
|
|
|
|
|
|
|
|
|
|
Nine Months ended September 30, 2017
(in thousands,
except per share amounts)
|
|
|
Pretax
amounts
|
|
Tax Effect
|
|
After-tax
Effect
|
|
Per Share
Effect
|
|
Restructuring expenses, net
|
|
|
$
|
10,220
|
|
$
|
3,721
|
|
$
|
6,499
|
|
$
|
0.20
|
|
Foreign currency revaluation losses
|
|
|
|
6,916
|
|
|
2,516
|
|
|
4,400
|
|
|
0.14
|
|
Write-off of inventory in a discontinued product line
|
|
|
|
3,155
|
|
|
1,167
|
|
|
1,988
|
|
|
0.06
|
|
Net discrete income tax benefit
|
|
|
|
-
|
|
|
2,281
|
|
|
2,281
|
|
|
0.07
|
|
Charge for revision to estimated profitability of AEC contracts
|
|
|
|
15,821
|
|
|
5,854
|
|
|
9,967
|
|
|
0.31
|
|
Table 16
|
|
|
|
|
|
|
|
|
|
|
Nine Months ended September 30, 2016
(in thousands,
except per share amounts)
|
|
|
Pretax
amounts
|
|
Tax Effect
|
|
After-tax
Effect
|
|
Per Share
Effect
|
|
Restructuring expenses, net
|
|
|
$
|
7,653
|
|
$
|
2,965
|
|
$
|
4,688
|
|
$
|
0.15
|
|
Foreign currency revaluation gains
|
|
|
|
704
|
|
|
256
|
|
|
448
|
|
|
0.01
|
|
Acquisition expenses
|
|
|
|
5,367
|
|
|
1,933
|
|
|
3,434
|
|
|
0.11
|
|
Net discrete income tax benefit
|
|
|
|
-
|
|
|
932
|
|
|
932
|
|
|
0.03
|
Table 17 contains the calculation of net income per share attributable
to the Company, excluding adjustments:
|
Table 17
|
|
|
|
|
|
|
|
|
|
Three Months ended
September 30,
|
|
Nine Months ended
September 30,
|
|
Per share amounts (Basic)
|
|
|
2017
|
|
2016
|
|
2017
|
|
2016
|
|
Net income/(loss) attributable to the Company, reported (GAAP)
|
|
|
$
|
0.47
|
|
|
$
|
0.41
|
|
|
$
|
0.85*
|
|
|
$
|
1.15
|
|
|
Adjustments:
|
|
|
|
|
|
|
|
|
|
|
Restructuring charges
|
|
|
|
0.11
|
|
|
|
0.01
|
|
|
|
0.20
|
|
|
|
0.15
|
|
|
Discrete tax adjustments and effect of change in income tax rate
|
|
|
|
(0.10
|
)
|
|
|
(0.01
|
)
|
|
|
(0.07
|
)
|
|
|
(0.03
|
)
|
|
Foreign currency revaluation losses/(gains)
|
|
|
|
0.03
|
|
|
|
-
|
|
|
|
0.14
|
|
|
|
(0.01
|
)
|
|
Write-off of inventory in a discontinued product line
|
|
|
|
0.06
|
|
|
|
-
|
|
|
|
0.06
|
|
|
|
-
|
|
|
Acquisition expenses
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
0.11
|
|
|
Net income attributable to the Company, excluding adjustments
(non-GAAP)
|
|
|
$
|
0.57
|
|
|
$
|
0.41
|
|
|
$
|
1.18
|
|
|
$
|
1.37
|
|
|
* Includes charge of $0.31 per share for revisions in estimated
profitability of two AEC contracts
|
Table 18 contains the calculation AEC Adjusted EBITDA as a percentage of
sales:
|
Table 18
|
|
|
|
|
|
|
|
Adjusted EBITDA as a percentage of net sales
Three months ended
|
|
(in thousands, except percentages)
|
|
|
September 30,
2017
|
|
June 30,
2017
|
|
March 31,
2017
|
|
September 30,
2016
|
|
Adjusted EBITDA (non-GAAP)
|
|
|
$8,125
|
|
$(8,586)*
|
|
$5,188
|
|
$3,710
|
|
Net sales (GAAP)
|
|
|
$71,447
|
|
$68,999
|
|
$56,450
|
|
$48,024
|
|
Adjusted EBITDA as a percentage of net sales
|
|
|
11.4%
|
|
(12.4)%
|
|
9.2%
|
|
7.7%
|
|
* Includes charge of $15.8 million in Q2 2017 for revisions in
estimated profitability of two AEC contracts.
|
Table 19 contains the calculation of net debt:
|
Table 19
|
|
|
|
|
|
|
|
|
|
|
|
|
(in thousands)
|
|
|
September 30,
2017
|
|
June 30,
2017
|
|
March 31,
2017
|
|
December 31,
2016
|
|
September 30,
2016
|
|
Notes and loans payable
|
|
|
$186
|
|
$249
|
|
$274
|
|
$312
|
|
$343
|
|
Current maturities of long-term debt
|
|
|
51,765
|
|
51,732
|
|
51,699
|
|
51,666
|
|
1,462
|
|
Long-term debt
|
|
|
453,578
|
|
444,030
|
|
428,477
|
|
432,918
|
|
490,003
|
|
Total debt
|
|
|
505,529
|
|
496,011
|
|
480,450
|
|
484,896
|
|
491,808
|
|
Cash and cash equivalents
|
|
|
153,465
|
|
138,792
|
|
143,333
|
|
181,742
|
|
196,170
|
|
Net debt
|
|
|
$352,064
|
|
$357,219
|
|
$337,117
|
|
$303,154
|
|
$295,638
|
Table 20 contains the reconciliation of MC 2017 projected Adjusted
EBITDA to MC 2017 projected net income:
|
Table 20
|
|
|
|
|
|
|
|
|
|
|
Machine Clothing Full-Year 2017 Outlook
(in millions)
|
|
|
Actual, nine
months ended
September 30,
2017
|
|
Results for last
quarter of year
to meet low end
of
normal range
|
|
Results for
last quarter of
year to meet
high-end of
normal
range
|
|
Normal
target range
for full-year
|
|
Net income (non-GAAP)
|
|
|
$119
|
|
$24
|
|
$37
|
|
$143 - $156
|
|
Depreciation and amortization
|
|
|
25
|
|
7
|
|
9
|
|
(32-34)
|
|
EBITDA (non-GAAP)
|
|
|
$144
|
|
$31
|
|
$46
|
|
$175 - $190
|
|
Restructuring expenses
|
|
|
1
|
|
*
|
|
*
|
|
1
|
|
Foreign currency revaluation losses
|
|
|
4
|
|
*
|
|
*
|
|
4
|
|
Adjusted EBITDA (non-GAAP)
|
|
|
$149
|
|
$31
|
|
$46
|
|
$180 - $195
|
|
* Due to the uncertainty of these items, management is currently
unable to project restructuring
expenses and foreign currency
revaluation gains/losses for the remainder of the year.
|
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, geopolitical and
paper-industry trends and conditions during 2017 and in future years;
expectations in 2017 and in future periods of sales, EBITDA, Adjusted
EBITDA (both in dollars and as a percentage of net sales), income, gross
profit, gross margin, cash flows and other financial items in each of
the Company’s businesses, including the acquired composite
aerostructures business, 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 sales 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.
ALBANY INTERNATIONAL CORP.
CONSOLIDATED STATEMENTS OF INCOME
(in
thousands, except per share amounts)
(unaudited)
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
September 30,
|
|
|
|
Nine Months Ended
September 30,
|
|
2017
|
|
2016
|
|
|
|
2017
|
|
2016
|
|
|
|
|
|
|
|
|
|
|
|
$
|
222,141
|
|
|
$
|
191,272
|
|
Net sales
|
|
$
|
636,989
|
|
$
|
566,793
|
|
|
|
142,706
|
|
|
|
118,852
|
|
Cost of goods sold
|
|
|
418,595
|
|
|
343,557
|
|
|
|
|
|
|
|
|
|
|
|
|
|
79,435
|
|
|
|
72,420
|
|
Gross profit
|
|
|
218,394
|
|
|
223,236
|
|
|
|
41,076
|
|
|
|
38,042
|
|
Selling, general, and administrative expenses
|
|
|
123,799
|
|
|
120,997
|
|
|
|
10,553
|
|
|
|
9,232
|
|
Technical and research expenses
|
|
|
30,788
|
|
|
29,640
|
|
|
|
5,503
|
|
|
|
326
|
|
Restructuring expenses, net
|
|
|
10,220
|
|
|
7,653
|
|
|
|
|
|
|
|
|
|
|
|
|
|
22,303
|
|
|
|
24,820
|
|
Operating income
|
|
|
53,587
|
|
|
64,946
|
|
|
|
4,429
|
|
|
|
3,681
|
|
Interest expense, net
|
|
|
13,042
|
|
|
9,610
|
|
|
|
(1,155
|
)
|
|
|
242
|
|
Other expense/(income), net
|
|
|
980
|
|
|
(2,103
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
19,029
|
|
|
|
20,897
|
|
Income before income taxes
|
|
|
39,565
|
|
|
57,439
|
|
|
|
3,809
|
|
|
|
7,488
|
|
Income tax expense
|
|
|
12,138
|
|
|
20,613
|
|
|
|
|
|
|
|
|
|
|
|
|
|
15,220
|
|
|
|
13,409
|
|
Net income
|
|
|
27,427
|
|
|
36,826
|
|
|
|
(49
|
)
|
|
|
340
|
|
Net income/(loss) attributable to the noncontrolling interest
|
|
|
202
|
|
|
(111
|
)
|
|
$
|
15,269
|
|
|
$
|
13,069
|
|
Net income attributable to the Company
|
|
$
|
27,225
|
|
$
|
36,937
|
|
|
|
|
|
|
|
|
|
|
|
|
$
|
0.47
|
|
|
$
|
0.41
|
|
Earnings per share attributable to Company shareholders - Basic
|
|
$
|
0.85
|
|
$
|
1.15
|
|
|
|
|
|
|
|
|
|
|
|
|
$
|
0.47
|
|
|
$
|
0.41
|
|
Earnings per share attributable to Company shareholders - Diluted
|
|
$
|
0.85
|
|
$
|
1.15
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Shares of the Company used in computing earnings per share:
|
|
|
|
|
|
|
32,187
|
|
|
|
32,104
|
|
Basic
|
|
|
32,160
|
|
|
32,079
|
|
|
|
|
|
|
|
|
|
|
|
|
|
32,214
|
|
|
|
32,141
|
|
Diluted
|
|
|
32,193
|
|
|
32,118
|
|
|
|
|
|
|
|
|
|
|
|
|
$
|
0.17
|
|
|
$
|
0.17
|
|
Dividends declared per share, Class A and Class B
|
|
$
|
0.51
|
|
$
|
0.51
|
|
ALBANY INTERNATIONAL CORP.
CONSOLIDATED BALANCE SHEETS
(in
thousands, except share data)
(unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
September 30,
2017
|
|
December 31,
2016
|
|
ASSETS
|
|
|
|
|
|
|
Cash and cash equivalents
|
|
|
$
|
153,465
|
|
|
$
|
181,742
|
|
|
Accounts receivable, net
|
|
|
|
199,938
|
|
|
|
171,193
|
|
|
Inventories
|
|
|
|
157,143
|
|
|
|
133,906
|
|
|
Income taxes prepaid and receivable
|
|
|
|
8,133
|
|
|
|
5,213
|
|
|
Prepaid expenses and other current assets
|
|
|
|
12,690
|
|
|
|
9,251
|
|
|
Total current assets
|
|
|
|
531,369
|
|
|
|
501,305
|
|
|
|
|
|
|
|
|
|
Property, plant and equipment, net
|
|
|
|
451,966
|
|
|
|
422,564
|
|
|
Intangibles, net
|
|
|
|
56,997
|
|
|
|
66,454
|
|
|
Goodwill
|
|
|
|
166,010
|
|
|
|
160,375
|
|
|
Income taxes receivable and deferred
|
|
|
|
81,244
|
|
|
|
68,865
|
|
|
Contract receivables
|
|
|
|
29,688
|
|
|
|
14,045
|
|
|
Other assets
|
|
|
|
32,343
|
|
|
|
29,825
|
|
|
Total assets
|
|
|
$
|
1,349,617
|
|
|
$
|
1,263,433
|
|
|
|
|
|
|
|
|
|
LIABILITIES AND SHAREHOLDERS' EQUITY
|
|
|
|
|
|
|
Notes and loans payable
|
|
|
$
|
186
|
|
|
$
|
312
|
|
|
Accounts payable
|
|
|
|
45,121
|
|
|
|
43,305
|
|
|
Accrued liabilities
|
|
|
|
103,498
|
|
|
|
95,195
|
|
|
Current maturities of long-term debt
|
|
|
|
51,765
|
|
|
|
51,666
|
|
|
Income taxes payable
|
|
|
|
12,493
|
|
|
|
9,531
|
|
|
Total current liabilities
|
|
|
|
213,063
|
|
|
|
200,009
|
|
|
|
|
|
|
|
|
|
Long-term debt
|
|
|
|
453,578
|
|
|
|
432,918
|
|
|
Other noncurrent liabilities
|
|
|
|
105,318
|
|
|
|
106,827
|
|
|
Deferred taxes and other liabilities
|
|
|
|
13,002
|
|
|
|
12,389
|
|
|
Total liabilities
|
|
|
|
784,961
|
|
|
|
752,143
|
|
|
|
|
|
|
|
|
|
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 37,392,353 in 2017
|
|
|
|
|
|
|
and 37,319,266 in 2016
|
|
|
|
37
|
|
|
|
37
|
|
|
Class B Common Stock, par value $.001 per share;
|
|
|
|
|
|
|
authorized 25,000,000 shares; issued and
|
|
|
|
|
|
|
outstanding 3,233,998 in 2017 and 2016
|
|
|
|
3
|
|
|
|
3
|
|
|
Additional paid in capital
|
|
|
|
428,088
|
|
|
|
425,953
|
|
|
Retained earnings
|
|
|
|
533,670
|
|
|
|
522,855
|
|
|
Accumulated items of other comprehensive income:
|
|
|
|
|
|
|
Translation adjustments
|
|
|
|
(92,523
|
)
|
|
|
(133,298
|
)
|
|
Pension and postretirement liability adjustments
|
|
|
|
(52,648
|
)
|
|
|
(51,719
|
)
|
|
Derivative valuation adjustment
|
|
|
|
917
|
|
|
|
828
|
|
|
Treasury stock (Class A), at cost 8,431,335 shares in 2017
|
|
|
|
|
|
|
and 8,443,444 shares in 2016
|
|
|
|
(256,876
|
)
|
|
|
(257,136
|
)
|
|
Total Company shareholders' equity
|
|
|
|
560,668
|
|
|
|
507,523
|
|
|
Noncontrolling interest
|
|
|
|
3,988
|
|
|
|
3,767
|
|
|
Total equity
|
|
|
|
564,656
|
|
|
|
511,290
|
|
|
Total liabilities and shareholders' equity
|
|
|
$
|
1,349,617
|
|
|
$
|
1,263,433
|
|
ALBANY INTERNATIONAL CORP.
CONSOLIDATED STATEMENTS OF CASH FLOW
(in
thousands)
(unaudited)
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
September 30,
|
|
|
|
Nine Months ended
September 30,
|
|
2017
|
|
2016
|
|
|
|
2017
|
|
2016
|
|
|
|
|
|
OPERATING ACTIVITIES
|
|
|
|
|
|
$
|
15,220
|
|
|
$
|
13,409
|
|
|
Net income
|
|
$
|
27,427
|
|
|
$
|
36,826
|
|
|
|
|
|
|
Adjustments to reconcile net income to net cash provided by
operating activities:
|
|
|
|
|
|
|
15,522
|
|
|
|
16,470
|
|
|
Depreciation
|
|
|
45,367
|
|
|
|
44,736
|
|
|
|
2,608
|
|
|
|
1,975
|
|
|
Amortization
|
|
|
7,889
|
|
|
|
6,488
|
|
|
|
(168
|
)
|
|
|
(275
|
)
|
|
Change in other noncurrent liabilities
|
|
|
(2,522
|
)
|
|
|
(5,010
|
)
|
|
|
(3,263
|
)
|
|
|
(1,712
|
)
|
|
Change in deferred taxes and other liabilities
|
|
|
(10,620
|
)
|
|
|
(640
|
)
|
|
|
1,086
|
|
|
|
333
|
|
|
Provision for write-off of property, plant and equipment
|
|
|
1,916
|
|
|
|
1,409
|
|
|
|
211
|
|
|
|
-
|
|
|
Non-cash interest expense
|
|
|
634
|
|
|
|
-
|
|
|
|
195
|
|
|
|
350
|
|
|
Compensation and benefits paid or payable in Class A Common Stock
|
|
|
1,865
|
|
|
|
1,882
|
|
|
|
4,149
|
|
|
|
-
|
|
|
Write-off of intangible assets in a discontinued product line
|
|
|
4,149
|
|
|
|
-
|
|
|
|
|
|
|
Changes in operating assets and liabilities that provided/(used)
cash, net of impact of business acquisition:
|
|
|
|
|
|
|
(4,645
|
)
|
|
|
4,794
|
|
|
Accounts receivable
|
|
|
(19,781
|
)
|
|
|
(6,492
|
)
|
|
|
(3,944
|
)
|
|
|
(5,511
|
)
|
|
Inventories
|
|
|
(17,210
|
)
|
|
|
(12,886
|
)
|
|
|
(599
|
)
|
|
|
(481
|
)
|
|
Prepaid expenses and other current assets
|
|
|
(3,167
|
)
|
|
|
(3,302
|
)
|
|
|
-
|
|
|
|
(100
|
)
|
|
Income taxes prepaid and receivable
|
|
|
(2,817
|
)
|
|
|
1,737
|
|
|
|
(4,769
|
)
|
|
|
(4,443
|
)
|
|
Accounts payable
|
|
|
(2,704
|
)
|
|
|
(1,544
|
)
|
|
|
5,425
|
|
|
|
4,418
|
|
|
Accrued liabilities
|
|
|
4,525
|
|
|
|
(3,736
|
)
|
|
|
3,472
|
|
|
|
4,932
|
|
|
Income taxes payable
|
|
|
2,964
|
|
|
|
3,999
|
|
|
|
(8,107
|
)
|
|
|
-
|
|
|
Contract receivables
|
|
|
(15,643
|
)
|
|
|
-
|
|
|
|
(4,495
|
)
|
|
|
(4,974
|
)
|
|
Other, net
|
|
|
(557
|
)
|
|
|
(10,252
|
)
|
|
|
17,898
|
|
|
|
29,185
|
|
|
Net cash provided by operating activities
|
|
|
21,715
|
|
|
|
53,215
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
INVESTING ACTIVITIES
|
|
|
|
|
|
|
-
|
|
|
|
-
|
|
|
Purchase of business, net of cash acquired
|
|
|
-
|
|
|
|
(187,000
|
)
|
|
|
(15,319
|
)
|
|
|
(21,924
|
)
|
|
Purchases of property, plant and equipment
|
|
|
(61,724
|
)
|
|
|
(50,029
|
)
|
|
|
(147
|
)
|
|
|
(591
|
)
|
|
Purchased software
|
|
|
(538
|
)
|
|
|
(1,262
|
)
|
|
|
-
|
|
|
|
4,686
|
|
|
Proceeds from sale or involuntary conversion of assets
|
|
|
-
|
|
|
|
6,422
|
|
|
|
(15,466
|
)
|
|
|
(17,829
|
)
|
|
Net cash used in investing activities
|
|
|
(62,262
|
)
|
|
|
(231,869
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
FINANCING ACTIVITIES
|
|
|
|
|
|
|
13,076
|
|
|
|
13,265
|
|
|
Proceeds from borrowings
|
|
|
45,335
|
|
|
|
232,795
|
|
|
|
(3,569
|
)
|
|
|
(871
|
)
|
|
Principal payments on debt
|
|
|
(24,711
|
)
|
|
|
(23,695
|
)
|
|
|
-
|
|
|
|
-
|
|
|
Debt acquisition costs
|
|
|
-
|
|
|
|
(1,771
|
)
|
|
|
-
|
|
|
|
-
|
|
|
Swap termination payment
|
|
|
-
|
|
|
|
(5,175
|
)
|
|
|
-
|
|
|
|
-
|
|
|
Taxes paid in lieu of share issuance
|
|
|
(1,364
|
)
|
|
|
(1,272
|
)
|
|
|
356
|
|
|
|
64
|
|
|
Proceeds from options exercised
|
|
|
531
|
|
|
|
454
|
|
|
|
(5,470
|
)
|
|
|
(5,457
|
)
|
|
Dividends paid
|
|
|
(16,396
|
)
|
|
|
(16,354
|
)
|
|
|
4,393
|
|
|
|
7,001
|
|
|
Net cash provided by financing activities
|
|
|
3,395
|
|
|
|
184,982
|
|
|
|
|
|
|
|
|
|
|
|
|
|
7,848
|
|
|
|
1,788
|
|
|
Effect of exchange rate changes on cash and cash equivalents
|
|
|
8,875
|
|
|
|
4,729
|
|
|
|
|
|
|
|
|
|
|
|
|
|
14,673
|
|
|
|
20,145
|
|
|
(Decrease)/increase in cash and cash equivalents
|
|
|
(28,277
|
)
|
|
|
11,057
|
|
|
|
138,792
|
|
|
|
176,025
|
|
|
Cash and cash equivalents at beginning of period
|
|
|
181,742
|
|
|
|
185,113
|
|
|
$
|
153,465
|
|
|
$
|
196,170
|
|
|
Cash and cash equivalents at end of period
|
|
$
|
153,465
|
|
|
$
|
196,170
|
|
CONTACT:
Albany International Corp.
Investors
John
Cozzolino, 518-445-2281
john.cozzolino@albint.com
or
Media
Heather
Kralik, 801-505-7001
heather.kralik@albint.com
