Albany International Corp. (NYSE:AIN), a global advanced textiles and
materials processing company with core businesses in machine clothing
and engineered composites, reported Q1 2014 income attributable to the
Company of $10.6 million. These results were reduced by restructuring
charges of $1.2 million and income tax adjustments of $1.1 million, and
were increased by foreign currency revaluation gains of $0.3 million.
Q1 2013 income attributable to the Company was $11.5 million. These
results were reduced by restructuring charges of $0.6 million and income
tax adjustments of $0.2 million, and were increased by foreign currency
revaluation gains of $0.7 million and a gain on the sale of a former
manufacturing facility of $3.8 million.
Table 1 summarizes net sales and the effect of changes in currency
translation rates:
|
Table 1
|
|
|
|
|
|
Net Sales
Three Months ended
March 31,
|
|
|
Percent
Change
|
|
|
Impact of
Changes in
Currency
Translation
Rates
|
|
|
Percent Change
excluding
Currency
Rate Effect
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(in thousands)
|
|
|
|
|
2014
|
|
|
2013
|
|
|
|
|
|
|
Machine Clothing (MC)
|
|
|
|
|
$164,088
|
|
|
$167,409
|
|
|
-2.0%
|
|
|
$782
|
|
|
-2.5%
|
Albany Engineered Composites (AEC)
|
|
|
|
|
16,219
|
|
|
19,245
|
|
|
-15.7%
|
|
|
-
|
|
|
-15.7%
|
Total
|
|
|
|
|
$180,307
|
|
|
$186,654
|
|
|
-3.4%
|
|
|
$782
|
|
|
-3.8%
|
|
In Q1 2014, AEC began LEAP production activities in its Rochester, New
Hampshire, plant. This shift to larger scale production, together with a
related change in invoicing terms, resulted in a build-up of inventory
and an associated temporary lag in sales. The full-year outlook for AEC
remains unchanged.
Q1 2014 gross profit was $74.8 million, or 41.5 percent of net sales,
compared to $72.8 million, or 39.0 percent of net sales, in the same
period of 2013. MC gross profit margin improved from 44.2 percent in
2013 to 45.0 percent in 2014. AEC’s gross profit margin was 8.0 percent
in Q1 2014, compared to a gross margin loss in Q1 2013.
Selling, technical, general, and research (STG&R) expenses were $53.0
million, or 29.4 percent of net sales, in the first quarter of 2014,
including losses of $0.2 million related to the revaluation of
nonfunctional-currency assets and liabilities. In Q1 2013, STG&R
expenses were $49.6 million, or 26.6 percent of net sales, including
gains of $0.7 million related to the revaluation of
nonfunctional-currency assets and liabilities, and a gain of $3.8
million related to the sale of a former manufacturing facility.
In the first quarter of 2014, the Company began including in segment
expenses all research (see Table 2) and long-term incentive compensation
expenses directly attributable to the MC and AEC business segments. On
April 10, 2014, the Company filed a Form 8-K to show the effect of this
change on previously reported results. Accordingly, all prior period
amounts presented in this earnings report and other published financial
reports will reflect this change.
The following table presents research and development expenses by
segment:
|
Table 2
|
(in thousands)
|
|
Research and development
expenses by segment
Three Months ended
March 31,
|
|
|
|
|
|
2014
|
|
|
2013
|
Machine Clothing
|
|
|
|
|
$4,838
|
|
|
$4,386
|
Albany Engineered Composites
|
|
|
|
|
2,318
|
|
|
1,940
|
Corporate expenses
|
|
|
|
|
192
|
|
|
665
|
Total
|
|
|
|
|
$7,348
|
|
|
$6,991
|
|
The following table summarizes first-quarter operating income by segment:
|
Table 3
|
|
|
|
|
|
Operating Income/(loss)
|
|
|
|
|
|
Three Months ended
|
|
|
|
|
|
March 31,
|
(in thousands)
|
|
|
|
|
2014
|
|
|
2013
|
Machine Clothing
|
|
|
|
|
$36,142
|
|
|
$37,556
|
Albany Engineered Composites
|
|
|
|
|
(3,475)
|
|
|
(4,403)
|
Corporate expenses
|
|
|
|
|
(12,066)
|
|
|
(10,635)
|
Total
|
|
|
|
|
$20,601
|
|
|
$22,518
|
|
Segment operating income was affected by restructuring, currency
revaluation, and a 2013 gain on the sale of a building as shown in Table
4 below. Restructuring expense in Q1 2014 was principally related to the
ongoing costs associated with restructuring in France.
|
Table 4
|
|
|
|
|
|
Expenses/(gain) in Q1 2014
|
|
|
Expenses/(gain) in Q1 2013
|
|
|
|
|
|
resulting from
|
|
|
resulting from
|
|
|
|
|
|
|
|
|
|
(in thousands)
|
|
|
|
|
Restructuring
|
|
|
Revaluation
|
|
|
Restructuring
|
|
|
Revaluation
|
|
|
Building gain
|
Machine Clothing
|
|
|
|
|
$862
|
|
|
$152
|
|
|
$193
|
|
|
( $743)
|
|
|
$ -
|
Albany Engineered Composites
|
|
|
|
|
320
|
|
|
38
|
|
|
443
|
|
|
-
|
|
|
-
|
Corporate expenses
|
|
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
2
|
|
|
(3,763)
|
Total
|
|
|
|
|
$1,182
|
|
|
$190
|
|
|
$636
|
|
|
($741)
|
|
|
($3,763)
|
|
Q1 2014 Other income/expense, net, was income of $0.5 million, including
gains related to the revaluation of nonfunctional-currency balances of
$0.5 million. Q1 2013 Other income/expense, net, was expense of $0.7
million.
The following table summarizes currency revaluation effects on certain
financial metrics:
|
Table 5
|
|
|
|
|
|
Income/(loss) attributable
|
|
|
|
|
|
to currency revaluation
|
|
|
|
|
|
Three Months ended
|
|
|
|
|
|
March 31,
|
(in thousands)
|
|
|
|
|
2014
|
|
2013
|
Operating income
|
|
|
|
|
($190)
|
|
$741
|
Other income/(expense), net
|
|
|
|
|
505
|
|
(9)
|
Total
|
|
|
|
|
$315
|
|
$732
|
|
The Company’s income tax rate, excluding tax adjustments, was 35.0
percent for Q1 2014, compared to 34.0 percent for the same period of
2013. Discrete tax charges increased income tax expense by $1.1 million
in 2014 and $0.2 million in 2013.
The following tables summarize Adjusted EBITDA:
|
Table 6
|
Three Months ended March 31, 2014
(in thousands)
|
|
|
|
|
Machine
Clothing
|
|
|
Albany
Engineered
Composites
|
|
|
Corporate
expenses
and other
|
|
|
Total
Company
|
Net income
|
|
|
|
|
$36,142
|
|
|
($3,475)
|
|
|
($21,974)
|
|
|
$10,693
|
Interest expense, net
|
|
|
|
|
-
|
|
|
-
|
|
|
2,918
|
|
|
2,918
|
Income tax expense
|
|
|
|
|
-
|
|
|
-
|
|
|
7,457
|
|
|
7,457
|
Depreciation and amortization
|
|
|
|
|
11,455
|
|
|
2,322
|
|
|
2,131
|
|
|
15,908
|
EBITDA
|
|
|
|
|
47,597
|
|
|
(1,153)
|
|
|
(9,468)
|
|
|
36,976
|
Restructuring and other, net
|
|
|
|
|
862
|
|
|
320
|
|
|
-
|
|
|
1,182
|
Foreign currency revaluation losses/(gains)
|
|
|
|
|
152
|
|
|
38
|
|
|
(505)
|
|
|
(315)
|
Pretax income attributable to noncontrolling
interest in ASC
|
|
|
|
|
-
|
|
|
(59)
|
|
|
-
|
|
|
(59)
|
Adjusted EBITDA
|
|
|
|
|
$48,611
|
|
|
($854)
|
|
|
($9,973)
|
|
|
$37,784
|
|
|
Table 7
|
Three Months ended March 31, 2013
(in thousands)
|
|
|
|
|
Machine
Clothing
|
|
|
Albany
Engineered
Composites
|
|
|
Corporate
expenses
and other
|
|
|
Total
Company
|
Net income
|
|
|
|
|
$37,556
|
|
|
($4,403)
|
|
|
($21,642)
|
|
|
$11,511
|
Interest expense, net
|
|
|
|
|
-
|
|
|
-
|
|
|
4,025
|
|
|
4,025
|
Income tax expense
|
|
|
|
|
-
|
|
|
-
|
|
|
6,248
|
|
|
6,248
|
Depreciation and amortization
|
|
|
|
|
11,870
|
|
|
1,731
|
|
|
2,273
|
|
|
15,874
|
EBITDA
|
|
|
|
|
49,426
|
|
|
(2,672)
|
|
|
(9,096)
|
|
|
37,658
|
Restructuring and other, net
|
|
|
|
|
193
|
|
|
443
|
|
|
-
|
|
|
636
|
Foreign currency revaluation (gains)/losses
|
|
|
|
|
(743)
|
|
|
-
|
|
|
11
|
|
|
(732)
|
Gain on sale of former manufacturing facility
|
|
|
|
|
-
|
|
|
-
|
|
|
(3,763)
|
|
|
(3,763)
|
Adjusted EBITDA
|
|
|
|
|
$48,876
|
|
|
($2,229)
|
|
|
($12,848)
|
|
|
$33,799
|
|
Capital spending for equipment and software was $14.9 million for Q1
2014, including $6.0 million for the Albany Engineered Composites
segment. Depreciation and amortization was $15.9 million for Q1 2014.
CFO Comments
CFO and Treasurer John Cozzolino commented, “Despite the improved EBITDA
during the quarter, net debt increased about $12 million compared to the
end of 2013, and was $94 million at the end of Q1 2014 (see Table 11).
The Company’s leverage ratio this quarter, as defined in our primary
debt agreements, was 1.75. Net debt increased primarily due to cash
outflows for previously accrued incentive compensation and restructuring
liabilities. Assuming no significant change in expected earnings, net
debt should improve throughout the rest of the year. The Company
continues to expect full-year capital expenditure spending of $65 to $75
million. Cash paid for income taxes was about $7 million during the
quarter and is expected to total approximately $15 million this year.”
CEO Comments
President and Chief Executive Officer Joe Morone, said, “In Q1 2014,
Machine Clothing rebounded and AEC continued to progress. Total Company
Adjusted EBITDA improved by approximately 12 percent, both
year-over-year and sequentially. The only notable anomaly in the Q1
results was a temporary decline in AEC sales. This was due to an
expected timing effect, resulting from a shift of invoicing terms for
the LEAP program. We expect a surge in the demand for LEAP parts later
in the year for engine tests, and we continue to expect full-year
revenue to be roughly 10 percent ahead of last year.
“Both businesses performed well and in line with expectations. In MC,
the all-important containerboard market rebounded and our North American
MC business followed suit. In the rest of the world, sales and orders
remained steady, as they have for the last five quarters. Performance
with our key customers in each region of the world was especially
strong. Gross margin rose to 45 percent, reflecting seasonally strong
plant utilization coupled with the impact of last year’s European
restructuring.
“AEC continued to advance on all fronts. CFM has now won more than 6,000
orders for the LEAP engine, an unprecedented order volume for a new
engine program, let alone one that is still more than two years away
from entry into service. Our fan blades and fan cases are performing
well in the LEAP engine test program, and both LEAP plants continue to
make steady progress toward the production ramp-up. And in R&D, we
continue to build momentum toward the development of new applications on
both the engine and airframe.
“Our outlook remains unchanged. For MC, we expect Q2 to be comparable to
Q1. For the remainder of the year, the primary risk factor in MC, both
upside and down, continues to be the health of the global economy.
Because of seasonal effects, the second half of the year in MC tends to
be weaker than the first; the severity of those seasonal effects hinges
on macroeconomic conditions. For AEC, we expect sales in the next three
quarters to be substantially stronger than Q1 sales, as we deliver parts
for LEAP engine tests and as two Rolls-Royce programs in our Texas
operation begin to transition from development to production. We still
expect full-year AEC revenue to be roughly 10 percent higher than 2013
revenue.
“In sum, both businesses performed well in Q1, and barring any
macroeconomic disruptions, both are on track for strong full-year
performance consistent with both our short- and long-term expectations.”
The Company plans a webcast to discuss first-quarter 2014 financial
results on Tuesday, May 6, 2014, at 9:00 a.m. Eastern Time. For access,
go to www.albint.com.
About Albany International Corp.
Albany International is a global advanced textiles and materials
processing company, with two core businesses. Machine Clothing is the
world’s leading producer of custom-designed fabrics and belts essential
to production in the paper, nonwovens, and other process industries.
Albany Engineered Composites is a rapidly growing supplier of highly
engineered composite parts for the aerospace industry. Albany
International is headquartered in Rochester, New Hampshire, operates 20
plants in 11 countries, employs 4,100 people worldwide, and is listed on
the New York Stock Exchange (Symbol AIN). Additional information about
the Company and its products and services can be found at www.albint.com.
This release contains certain items, such as earnings before
interest, taxes, depreciation and amortization (EBITDA), Adjusted
EBITDA, sales excluding currency effects, income tax rate exclusive of
income tax adjustments, net debt, net income attributable to the
Company, excluding adjustments (on an absolute and per-share basis), and
certain income and expense items on a per-share basis that could be
considered non-GAAP financial measures. Such items are provided because
management believes that, when presented together with the GAAP items to
which they relate, they provide additional useful information to
investors regarding the Company’s operational performance. Presenting
increases or decreases in sales, after currency effects are excluded,
can give management and investors insight into underlying sales trends.
An understanding of the impact in a particular quarter of specific
restructuring costs, or other gains and losses, on operating income or
EBITDA can give management and investors additional insight into
quarterly performance, especially when compared to quarters in which
such items had a greater or lesser effect, or no effect. All non-GAAP
financial measures in this release relate to the Company’s continuing
operations.
The effect of changes in currency translation rates is calculated by
converting amounts reported in local currencies into U.S. dollars at the
exchange rate of a prior period. That amount is then compared to the
U.S. dollar amount reported in the current period. The Company
calculates Income tax adjustments by adding discrete tax items to the
effect of a change in tax rate for the reporting period. The Company
calculates its income tax rate, exclusive of income tax adjustments, by
removing income tax adjustments from total Income tax expense, then
dividing that result by Income before income taxes. The Company
calculates EBITDA by removing the following from Net income: Interest
expense net, Income tax expense, Depreciation and amortization, and
Income or loss from Discontinued Operations. Adjusted EBITDA is
calculated by adding to EBITDA, costs associated with restructuring and
pension settlement charges, adding or subtracting revaluation losses or
gains, subtracting building sale gains, and subtracting Income
attributable to the noncontrolling interest in ASC. The Company believes
that EBITDA and Adjusted EBITDA provide useful information to investors
because they provide an indication of the strength and performance of
the Company's ongoing business operations, including its ability to fund
discretionary spending such as capital expenditures and strategic
investments, as well as its ability to incur and service debt. While
depreciation and amortization are operating costs under GAAP, they are
non-cash expenses equal to current period allocation of costs associated
with capital and other long-lived investments made in prior periods.
While restructuring expenses, foreign currency revaluation losses or
gains, pension settlement charges, and building sale gains have an
impact on the Company's net income, removing them from EBITDA can
provide, in the opinion of the Company, a better measure of operating
performance. EBITDA is also a calculation commonly used by investors and
analysts to evaluate and compare the periodic and future operating
performance and value of companies. EBITDA, as defined by the Company,
may not be similar to EBITDA measures of other companies. Such EBITDA
measures may not be considered measurements under GAAP, and should be
considered in addition to, but not as substitutes for, the information
contained in the Company’s statements of income.
The Company discloses certain income and expense items on a per-share
basis. The Company believes that such disclosures provide important
insight into underlying quarterly earnings and are financial performance
metrics commonly used by investors. The Company calculates the per-share
amount for items included in continuing operations by using the
effective tax rate utilized for the most recent reporting period, the
full-year tax rate for the comparable period of the prior year, and the
weighted average number of shares outstanding for each period.
|
Table 8
Quarter ended March 31, 2014
|
(in thousands, except per share amounts)
|
|
|
|
|
Pre-tax
amounts
|
|
|
Tax
Effect
|
|
|
After-tax
Effect
|
|
|
Shares
Outstanding
|
|
|
Per Share
Effect
|
Restructuring and other, net
|
|
|
|
|
$1,182
|
|
|
$414
|
|
|
$768
|
|
|
31,786
|
|
|
$0.02
|
Foreign currency revaluation gains
|
|
|
|
|
315
|
|
|
110
|
|
|
205
|
|
|
31,786
|
|
|
0.01
|
Net discrete income tax charge
|
|
|
|
|
-
|
|
|
1,104
|
|
|
1,104
|
|
|
31,786
|
|
|
0.03
|
|
|
Table 9
Quarter ended March 31, 2013
|
(in thousands, except per share amounts)
|
|
|
|
|
Pre-tax
amounts
|
|
|
Tax
Effect
|
|
|
After-tax
Effect
|
|
|
Shares
Outstanding
|
|
|
Per Share
Effect
|
Restructuring and other, net
|
|
|
|
|
$636
|
|
|
$310
|
|
|
$326
|
|
|
31,496
|
|
|
$0.01
|
Foreign currency revaluation gains
|
|
|
|
|
732
|
|
|
357
|
|
|
375
|
|
|
31,496
|
|
|
0.01
|
Gain on sale of former manufacturing facility
|
|
|
|
|
3,763
|
|
|
1,836
|
|
|
1,927
|
|
|
31,496
|
|
|
0.06
|
Net discrete income tax charge
|
|
|
|
|
-
|
|
|
210
|
|
|
210
|
|
|
31,496
|
|
|
0.01
|
|
The following table contains the calculation of net income per share
attributable to the Company, excluding adjustments:
|
Table 10
|
|
|
|
|
|
|
Three Months ended
|
Per share amounts (Basic)
|
|
|
|
|
March 31,
|
|
|
|
|
|
2014
|
|
|
2013
|
Net income attributable to the Company, reported
|
|
|
|
|
$0.33
|
|
|
$0.37
|
Adjustments:
|
|
|
|
|
|
|
|
|
Restructuring charges
|
|
|
|
|
$0.02
|
|
|
$0.01
|
Income tax adjustments
|
|
|
|
|
$0.03
|
|
|
$0.01
|
Foreign currency revaluation gains
|
|
|
|
|
($0.01)
|
|
|
($0.01)
|
Gain on the sale of a former manufacturing facility
|
|
|
|
|
-
|
|
|
($0.06)
|
Net income attributable to the Company, excluding adjustments
|
|
|
|
|
$0.37
|
|
|
$0.32
|
|
The following table contains the calculation of net debt:
|
Table 11
|
(in thousands)
|
|
|
|
|
March 31,
2014
|
|
|
December 31,
2013
|
|
|
December 31,
2012
|
|
|
December 31,
2011
|
Notes and loans payable
|
|
|
|
|
$797
|
|
|
$625
|
|
|
$586
|
|
|
$424
|
Current maturities of long-term debt
|
|
|
|
|
2,514
|
|
|
3,764
|
|
|
83,276
|
|
|
1,263
|
Long-term debt
|
|
|
|
|
299,108
|
|
|
300,111
|
|
|
235,877
|
|
|
373,125
|
Total debt
|
|
|
|
|
302,419
|
|
|
304,500
|
|
|
319,739
|
|
|
374,812
|
Cash
|
|
|
|
|
208,379
|
|
|
222,666
|
|
|
190,718
|
|
|
118,909
|
Net debt
|
|
|
|
|
$94,040
|
|
|
$81,834
|
|
|
$129,021
|
|
|
$255,903
|
|
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” 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 economic and paper industry trends
and conditions during 2014 and in future years; sales, EBITDA, Adjusted
EBITDA and operating income expectations in 2014 and in future periods
in each of the Company’s businesses and for the Company as a whole; the
timing and impact of production and development programs in the
Company’s AEC business segment and AEC sales growth potential; the
amount and timing of capital expenditures, future tax rates and cash
paid for taxes, depreciation and amortization; future debt and net debt
levels and debt covenant ratios; and future revaluation gains and
losses. Furthermore, a change in any one or more of the foregoing
factors could have a material effect on the Company’s financial results
in any period. Such statements are based on current expectations, and
the Company undertakes no obligation to publicly update or revise any
forward-looking statements.
Statements expressing management’s assessments of the growth
potential of its businesses, or referring to earlier assessments of such
potential, are not intended as forecasts of actual future growth, and
should not be relied on as such. While management believes such
assessments to have a reasonable basis, such assessments are, by their
nature, inherently uncertain. This release and earlier releases set
forth a number of assumptions regarding these assessments, including
historical results, independent forecasts regarding the markets in which
these businesses operate, and the timing and magnitude of orders for our
customers’ products. Historical growth rates are no guarantee of future
growth, and such independent forecasts and assumptions could prove
materially incorrect, in some cases.
|
ALBANY INTERNATIONAL CORP.
|
CONSOLIDATED STATEMENTS OF INCOME
|
(in thousands, except per share data)
|
(unaudited)
|
|
|
|
|
|
|
|
Three Months Ended
|
|
|
|
|
|
|
March 31,
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2014
|
|
|
|
2013
|
|
|
|
|
|
|
|
|
|
|
|
Net sales
|
|
|
|
|
|
$180,307
|
|
|
|
$186,654
|
Cost of goods sold
|
|
|
|
|
|
105,498
|
|
|
|
113,885
|
|
|
|
|
|
|
|
|
|
|
|
Gross profit
|
|
|
|
|
|
74,809
|
|
|
|
72,769
|
Selling, general, and administrative expenses
|
|
|
|
|
|
39,157
|
|
|
|
36,553
|
Technical, product engineering, and research expenses
|
|
|
|
|
|
13,869
|
|
|
|
13,062
|
Restructuring and other, net
|
|
|
|
|
|
1,182
|
|
|
|
636
|
|
|
|
|
|
|
|
|
|
|
|
Operating income
|
|
|
|
|
|
20,601
|
|
|
|
22,518
|
Interest expense, net
|
|
|
|
|
|
2,918
|
|
|
|
4,025
|
Other (income)/expenses, net
|
|
|
|
|
|
(467)
|
|
|
|
734
|
|
|
|
|
|
|
|
|
|
|
|
Income before income taxes
|
|
|
|
|
|
18,150
|
|
|
|
17,759
|
Income tax expense
|
|
|
|
|
|
7,457
|
|
|
|
6,248
|
|
|
|
|
|
|
|
|
|
|
|
Income from continuing operations
|
|
|
|
|
|
10,693
|
|
|
|
11,511
|
|
|
|
|
|
|
|
|
|
|
|
(Loss)/income from operations of discontinued business
|
|
|
|
|
|
-
|
|
|
|
-
|
Gain/(loss) on sale of discontinued business
|
|
|
|
|
|
-
|
|
|
|
-
|
Income tax (benefit)/expense on discontinued operations
|
|
|
|
|
|
-
|
|
|
|
-
|
(Loss)/income from discontinued operations
|
|
|
|
|
|
-
|
|
|
|
-
|
Net income
|
|
|
|
|
|
10,693
|
|
|
|
11,511
|
Net Income attributable to the noncontrolling interest
|
|
|
|
|
|
72
|
|
|
|
-
|
Net income attributable to the Company
|
|
|
|
|
|
$10,621
|
|
|
|
$11,511
|
|
|
|
|
|
|
|
|
|
|
|
Earnings per share attributable to Company shareholders - Basic
|
|
|
|
|
|
|
|
|
|
|
Income from continuing operations
|
|
|
|
|
|
$0.33
|
|
|
|
$0.37
|
Discontinued operations
|
|
|
|
|
|
0.00
|
|
|
|
0.00
|
Net income attributable to the Company
|
|
|
|
|
|
$0.33
|
|
|
|
$0.37
|
|
|
|
|
|
|
|
|
|
|
|
Earnings per share attributable to Company shareholders - Diluted
|
|
|
|
|
|
|
|
|
|
|
Income from continuing operations
|
|
|
|
|
|
$0.33
|
|
|
|
$0.36
|
Discontinued operations
|
|
|
|
|
|
0.00
|
|
|
|
0.00
|
Net income attributable to the Company
|
|
|
|
|
|
$0.33
|
|
|
|
$0.36
|
|
|
|
|
|
|
|
|
|
|
|
Shares of the Company used in computing earnings per share:
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
|
|
|
|
31,786
|
|
|
|
31,496
|
Diluted
|
|
|
|
|
|
32,051
|
|
|
|
31,782
|
|
|
|
|
|
|
|
|
|
|
|
Dividends per share
|
|
|
|
|
|
$0.15
|
|
|
|
$0.14
|
|
|
ALBANY INTERNATIONAL CORP.
|
CONSOLIDATED BALANCE SHEETS
|
(in thousands, except share data)
|
(unaudited)
|
|
|
|
|
|
|
March 31,
|
|
|
|
December 31,
|
|
|
|
|
|
2014
|
|
|
|
2013
|
ASSETS
|
|
|
|
|
|
|
|
|
|
Cash and cash equivalents
|
|
|
|
|
$208,379
|
|
|
|
$222,666
|
Accounts receivable, net
|
|
|
|
|
152,373
|
|
|
|
163,547
|
Inventories
|
|
|
|
|
121,410
|
|
|
|
112,739
|
Deferred income taxes
|
|
|
|
|
13,864
|
|
|
|
13,873
|
Prepaid expenses and other current assets
|
|
|
|
|
11,868
|
|
|
|
9,659
|
Total current assets
|
|
|
|
|
507,894
|
|
|
|
522,484
|
|
|
|
|
|
|
|
|
|
|
Property, plant and equipment, net
|
|
|
|
|
415,344
|
|
|
|
418,830
|
Intangibles
|
|
|
|
|
559
|
|
|
|
616
|
Goodwill
|
|
|
|
|
78,944
|
|
|
|
78,890
|
Income taxes receivable and deferred
|
|
|
|
|
116,205
|
|
|
|
119,612
|
Other assets
|
|
|
|
|
27,565
|
|
|
|
26,456
|
Total assets
|
|
|
|
|
$1,146,511
|
|
|
|
$1,166,888
|
|
|
|
|
|
|
|
|
|
|
LIABILITIES AND SHAREHOLDERS' EQUITY
|
|
|
|
|
|
|
|
|
|
Notes and loans payable
|
|
|
|
|
$797
|
|
|
|
$625
|
Accounts payable
|
|
|
|
|
35,134
|
|
|
|
36,397
|
Accrued liabilities
|
|
|
|
|
99,473
|
|
|
|
112,331
|
Current maturities of long-term debt
|
|
|
|
|
2,514
|
|
|
|
3,764
|
Income taxes payable and deferred
|
|
|
|
|
3,678
|
|
|
|
5,391
|
Total current liabilities
|
|
|
|
|
141,596
|
|
|
|
158,508
|
|
|
|
|
|
|
|
|
|
|
Long-term debt
|
|
|
|
|
299,108
|
|
|
|
300,111
|
Other noncurrent liabilities
|
|
|
|
|
102,720
|
|
|
|
106,014
|
Deferred taxes and other credits
|
|
|
|
|
53,707
|
|
|
|
54,476
|
Total liabilities
|
|
|
|
|
597,131
|
|
|
|
619,109
|
|
|
|
|
|
|
|
|
|
|
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
|
|
|
|
|
|
|
|
|
|
37,049,339 in 2014 and 36,996,227 in 2013
|
|
|
|
|
37
|
|
|
|
37
|
Class B Common Stock, par value $.001 per share;
|
|
|
|
|
|
|
|
|
|
authorized 25,000,000 shares; issued and
|
|
|
|
|
|
|
|
|
|
outstanding 3,236,098 in 2014 and 2013
|
|
|
|
|
3
|
|
|
|
3
|
Additional paid in capital
|
|
|
|
|
417,434
|
|
|
|
416,728
|
Retained earnings
|
|
|
|
|
440,446
|
|
|
|
434,598
|
Accumulated items of other comprehensive income:
|
|
|
|
|
|
|
|
|
|
Translation adjustments
|
|
|
|
|
(5,737)
|
|
|
|
(138)
|
Pension and postretirement liability adjustments
|
|
|
|
|
(47,881)
|
|
|
|
(48,383)
|
Derivative valuation adjustment
|
|
|
|
|
(905)
|
|
|
|
(977)
|
Treasury stock (Class A), at cost 8,463,635 shares
|
|
|
|
|
|
|
|
|
|
in 2014 and 2013
|
|
|
|
|
(257,571)
|
|
|
|
(257,571)
|
Total Company shareholders' equity
|
|
|
|
|
545,826
|
|
|
|
544,297
|
Noncontrolling interest
|
|
|
|
|
3,554
|
|
|
|
3,482
|
Total equity
|
|
|
|
|
549,380
|
|
|
|
547,779
|
Total liabilities and shareholders' equity
|
|
|
|
|
$1,146,511
|
|
|
|
$1,166,888
|
|
|
ALBANY INTERNATIONAL CORP.
|
CONSOLIDATED STATEMENTS OF CASH FLOW
|
(in thousands)
|
(unaudited)
|
|
|
|
|
|
|
|
Three Months Ended
|
|
|
|
|
|
|
March 31,
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2014
|
|
|
2013
|
OPERATING ACTIVITIES
|
|
|
|
|
|
|
|
|
|
Net income
|
|
|
|
|
|
$10,693
|
|
|
$11,511
|
|
|
|
|
|
|
|
|
|
|
Adjustments to reconcile net income to net cash provided by /(used
in) operating activities:
|
|
|
|
|
|
|
|
|
|
Depreciation
|
|
|
|
|
|
14,107
|
|
|
14,211
|
Amortization
|
|
|
|
|
|
1,801
|
|
|
1,663
|
Change in long-term liabilities, deferred taxes and other credits
|
|
|
|
|
|
(214)
|
|
|
3,873
|
Provision for write-off of property, plant and equipment
|
|
|
|
|
|
1
|
|
|
44
|
(Gain) on disposition of assets
|
|
|
|
|
|
-
|
|
|
(3,763)
|
Excess tax benefit of options exercised
|
|
|
|
|
|
(39)
|
|
|
(352)
|
Compensation and benefits paid or payable in Class A Common Stock
|
|
|
|
|
|
542
|
|
|
(698)
|
|
|
|
|
|
|
|
|
|
|
Changes in operating assets and liabilities, net of business
divestitures:
|
|
|
|
|
|
|
|
|
|
Accounts receivable
|
|
|
|
|
|
10,964
|
|
|
(1,723)
|
Inventories
|
|
|
|
|
|
(8,996)
|
|
|
(2,988)
|
Prepaid expenses and other current assets
|
|
|
|
|
|
(2,148)
|
|
|
(3,577)
|
Income taxes prepaid and receivable
|
|
|
|
|
|
21
|
|
|
152
|
Accounts payable
|
|
|
|
|
|
(1,294)
|
|
|
547
|
Accrued liabilities
|
|
|
|
|
|
(12,849)
|
|
|
(8,983)
|
Income taxes payable
|
|
|
|
|
|
(1,710)
|
|
|
(5,318)
|
Other, net
|
|
|
|
|
|
(2,031)
|
|
|
(438)
|
Net cash provided by operating activities
|
|
|
|
|
|
8,848
|
|
|
4,161
|
|
|
|
|
|
|
|
|
|
|
INVESTING ACTIVITIES
|
|
|
|
|
|
|
|
|
|
Purchases of property, plant and equipment
|
|
|
|
|
|
(14,603)
|
|
|
(13,188)
|
Purchased software
|
|
|
|
|
|
(294)
|
|
|
(93)
|
Proceeds from sale of assets
|
|
|
|
|
|
-
|
|
|
6,268
|
Net cash (used in)/provided by investing activities
|
|
|
|
|
|
(14,897)
|
|
|
(7,013)
|
|
|
|
|
|
|
|
|
|
|
FINANCING ACTIVITIES
|
|
|
|
|
|
|
|
|
|
Proceeds from borrowings
|
|
|
|
|
|
4,435
|
|
|
46,868
|
Principal payments on debt
|
|
|
|
|
|
(6,516)
|
|
|
(32,183)
|
Proceeds from options exercised
|
|
|
|
|
|
126
|
|
|
1,964
|
Excess tax benefit of options exercised
|
|
|
|
|
|
39
|
|
|
352
|
Debt acquisition costs
|
|
|
|
|
|
-
|
|
|
(1,563)
|
Dividends paid
|
|
|
|
|
|
(4,765)
|
|
|
-
|
Net cash (used in)/provided by financing activities
|
|
|
|
|
|
(6,681)
|
|
|
15,438
|
|
|
|
|
|
|
|
|
|
|
Effect of exchange rate changes on cash and cash equivalents
|
|
|
|
|
|
(1,557)
|
|
|
(3,471)
|
|
|
|
|
|
|
|
|
|
|
(Decrease)/increase in cash and cash equivalents
|
|
|
|
|
|
(14,287)
|
|
|
9,115
|
Cash and cash equivalents at beginning of period
|
|
|
|
|
|
222,666
|
|
|
190,718
|
Cash and cash equivalents at end of period
|
|
|
|
|
|
$208,379
|
|
|
$199,833
|
|
Copyright Business Wire 2014