Skip to main content

Albany International Reports Third-Quarter 2021 Results

Albany International Corp. (NYSE:AIN) today reported operating results for its third quarter of 2021, which ended September 30, 2021. Additionally, the company raised its full year financial guidance for 2021. Albany’s Board of Directors authorized a share repurchase program of up to $200 million.

"We are reporting another quarter of solid performance," said Bill Higgins, President and CEO. "Revenues of $232 million increased 9.6%. The Albany team delivered another strong quarter with solid growth in both businesses. Machine Clothing segment sales grew 11% from 2020’s third quarter and sustained excellent operating performance and margins. Engineered composites grew again in the quarter and is well positioned for stronger growth as military and commercial programs, led by single aisle aircraft, kick in.

“We are in excellent financial health with low debt and strong free cash flow. To that end, the Board of Directors has authorized a $200 million share repurchase program expanding the capital allocation options available to us,” concluded Higgins.

For the third quarter ended September 30, 2021:

  • Net sales were $232.4 million, up 9.6%, or 8.8% after adjusting for currency translation, when compared to the prior year.
  • Gross profit of $92.0 million was 5.4% higher than the $87.3 million reported for the same period of 2020.
  • Selling, Technical, General, and Research (STG&R) expenses were $47.4 million, compared to $47.8 million in the same period of 2020.
  • Operating income was $44.5 million, compared to $38.8 million in the prior year, an increase of 15%.
  • The effective tax rate was 29.4%, compared to 24.7% for the third quarter of 2020. A higher share of our global profits generated in jurisdictions with higher tax rates combined with less favorable discrete income tax adjustments contributed to the higher tax rate this quarter compared to that for the third-quarter 2020.
  • Net income attributable to the Company was $30.9 million ($0.95 per share), compared to $29.6 million ($0.92 per share) in the third quarter of 2020. Adjusted earnings per share (or Adjusted EPS, a non-GAAP measure) was $0.83 per share, compared to $0.96 per share for the same period of last year.
  • Adjusted EBITDA (a non-GAAP measure) was $60.2 million, compared to $61.8 million in the third quarter of 2020, a decrease of 2.6%.

Please see the tables below for a reconciliation of non-GAAP measures to their comparable GAAP measures. During the third quarter of 2021, the Company was awarded $5.8 million under the U.S. Government's Aviation Manufacturing Jobs Protection Program (AMJP). The adjusted results presented in the tables below exclude the impact of the AMJP award as management does not believe that the award is reflective of ongoing operational performance.

"The results of the third quarter are reflective of the strategic positioning of our businesses and continued excellent operational performance across our operations. We are again raising our guidance for 2021," said Stephen Nolan, Chief Financial Officer. "We recognize there are risks ahead in terms of supply chain constraints and inflationary pressures. However, the Company is very well positioned with excellent customer relationships, a strong and growing business base and in-demand advanced technologies that are expected to drive long-term business growth."

Outlook for Full-Year 2021

Albany International is updating its financial guidance for the full-year 2021:

  • Total company revenue between $900 and $920 million;
  • Effective income tax rate, including tax adjustments, between 28% and 30%;
  • Total company depreciation and amortization of approximately $75 million;
  • Capital expenditures in the range of $40 to $50 million;
  • GAAP earnings per share between $3.23 and $3.38 and Adjusted earnings per share between $3.15 and $3.30;
  • Total company Adjusted EBITDA between $230 to $240 million;
  • Machine Clothing revenue between $600 to $610 million;
  • Machine Clothing Adjusted EBITDA between $215 and $225 million;
  • Albany Engineered Composites (AEC) revenue between $300 to $310 million; and
  • Albany Engineered Composites Adjusted EBITDA between $65 to $70 million.

Share Repurchase Authorization

On October 25, 2021, the Company's Board of Directors authorized the Company to repurchase shares of up to $200 million through open market purchases, privately negotiated transactions or otherwise, and to determine the prices, times and amounts. The program does not obligate the Company to acquire any particular amount of common stock, and it may be suspended or terminated at any time at the Company's discretion. The share repurchase program does not have an expiration date. The timing and amount of any share repurchases will be based on the Company’s liquidity, general business and market conditions, debt covenant restrictions and other factors, including alternative investment opportunities and capital structure.

 

ALBANY INTERNATIONAL CORP.

CONSOLIDATED STATEMENTS OF INCOME

(in thousands, except per share amounts)

(unaudited)

 

Three Months Ended

September 30,

Nine Months Ended

September 30,

2021

2020

2021

2020

Net sales

$

232,442

$

211,999

$

689,322

$

673,753

Cost of goods sold

140,400

124,697

407,006

393,999

Gross profit

92,042

87,302

282,316

279,754

Selling, general, and administrative expenses

37,696

39,518

116,899

118,167

Technical and research expenses

9,673

8,301

28,916

26,304

Restructuring expenses, net

187

710

230

4,189

Operating income

44,486

38,773

136,271

131,094

Interest expense, net

3,734

2,242

11,521

10,042

Aviation Manufacturing Jobs Protection (AMJP) grant

(5,832

)

(5,832

)

Other expense/(income), net

2,753

(2,745

)

4,215

13,915

Income before income taxes

43,831

39,276

126,367

107,137

Income tax expense

12,889

9,686

36,375

37,504

Net income

30,942

29,590

89,992

69,633

Net income/(loss) attributable to the noncontrolling interest

80

1

150

(1,419

)

Net income attributable to the Company

$

30,862

$

29,589

$

89,842

$

71,052

Earnings per share attributable to Company shareholders - Basic

$

0.95

$

0.92

$

2.78

$

2.20

Earnings per share attributable to Company shareholders - Diluted

$

0.95

$

0.91

$

2.77

$

2.20

Shares of the Company used in computing earnings per share:

Basic

32,381

32,337

32,369

32,326

Diluted

32,434

32,344

32,424

32,333

Dividends declared per share, Class A and Class B

$

0.20

$

0.19

$

0.60

$

0.57

 

ALBANY INTERNATIONAL CORP.

CONSOLIDATED BALANCE SHEETS

(in thousands, except share data)

(unaudited)

 

September 30, 2021

December 31, 2020

ASSETS

Cash and cash equivalents

$

286,217

$

241,316

Accounts receivable, net

199,124

188,423

Contract assets, net

115,924

139,289

Inventories

118,129

110,478

Income taxes prepaid and receivable

3,509

5,940

Prepaid expenses and other current assets

29,021

31,830

Total current assets

$

751,924

$

717,276

Property, plant and equipment, net

426,806

448,554

Intangibles, net

41,020

46,869

Goodwill

183,568

187,553

Deferred income taxes

30,538

38,757

Noncurrent receivables, net

33,471

36,265

Other assets

72,916

74,662

Total assets

$

1,540,243

$

1,549,936

LIABILITIES AND SHAREHOLDERS' EQUITY

Accounts payable

$

54,397

$

49,173

Accrued liabilities

112,481

125,459

Current maturities of long-term debt

9

Income taxes payable

14,623

16,222

Total current liabilities

181,501

190,863

Long-term debt

350,000

398,000

Other noncurrent liabilities

117,057

130,424

Deferred taxes and other liabilities

11,352

10,784

Total liabilities

659,910

730,071

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; 40,759,527 issued in 2021 and 39,115,405 in 2020

41

39

Class B Common Stock, par value $.001 per share; authorized 25,000,000 shares; issued and outstanding 1,154 in 2021 and 1,617,998 in 2020

2

Additional paid in capital

436,079

433,696

Retained earnings

841,162

770,746

Accumulated items of other comprehensive income:

Translation adjustments

(100,327

)

(83,203

)

Pension and postretirement liability adjustments

(39,059

)

(39,661

)

Derivative valuation adjustment

(5,525

)

(9,544

)

Treasury stock (Class A), at cost; 8,379,804 shares in 2021 and 8,391,011 in 2020

(255,768

)

(256,009

)

Total Company shareholders' equity

876,603

816,066

Noncontrolling interest

3,730

3,799

Total equity

880,333

819,865

Total liabilities and shareholders' equity

$

1,540,243

$

1,549,936

 

ALBANY INTERNATIONAL CORP.

CONSOLIDATED STATEMENTS OF CASH FLOWS

(in thousands)

(unaudited)

 

Three Months Ended September 30,

Nine Months Ended September 30,

2021

2020

2021

2020

OPERATING ACTIVITIES

Net income

$

30,942

$

29,590

$

89,992

$

69,633

Adjustments to reconcile net income to net cash provided by operating activities:

Depreciation

15,925

16,285

48,485

47,289

Amortization

2,289

1,997

6,862

7,017

Change in deferred taxes and other liabilities

1,606

3,074

7,022

12,434

Impairment of property, plant and equipment

25

303

563

536

Non-cash interest expense

283

(309

)

593

(138

)

Compensation and benefits paid or payable in Class A Common Stock

606

80

2,232

596

Provision for credit losses from uncollected receivables and contract assets

(1,075

)

(105

)

(1,158

)

1,664

Foreign currency remeasurement loss/(gain) on intercompany loans

480

169

(551

)

15,750

Fair value adjustment on foreign currency options

29

(64

)

169

Changes in operating assets and liabilities that provided/(used) cash:

Accounts receivable

(10,927

)

(2,048

)

(14,292

)

6,069

Contract assets

(3,473

)

(7,923

)

22,170

(27,932

)

Inventories

546

4,585

(9,838

)

(20,043

)

Prepaid expenses and other current assets

3,949

(4,532

)

2,444

(6,989

)

Income taxes prepaid and receivable

2,717

(454

)

2,408

(662

)

Accounts payable

(296

)

(5,108

)

4,312

(15,491

)

Accrued liabilities

5,112

2,838

(12,311

)

(8,063

)

Income taxes payable

2,871

1,786

(1,085

)

3,741

Noncurrent receivables

1,245

(228

)

2,832

169

Other noncurrent liabilities

(1,319

)

111

(5,582

)

(413

)

Other, net

1,324

(388

)

3,232

(1,474

)

Net cash provided by operating activities

52,859

39,659

148,499

83,693

INVESTING ACTIVITIES

Purchases of property, plant and equipment

(8,918

)

(9,349

)

(31,754

)

(31,320

)

Purchased software

(106

)

(109

)

(394

)

(155

)

Net cash used in investing activities

(9,024

)

(9,458

)

(32,148

)

(31,475

)

FINANCING ACTIVITIES

Proceeds from borrowings

8,000

70,000

Principal payments on debt

(17,005

)

(56,009

)

(76,016

)

Principal payments on finance lease liabilities

(363

)

(335

)

(1,067

)

(6,798

)

Taxes paid in lieu of share issuance

(998

)

(490

)

Proceeds from options exercised

4

5

153

25

Dividends paid

(6,476

)

(6,144

)

(19,418

)

(18,424

)

Net cash used in financing activities

(6,835

)

(23,479

)

(69,339

)

(31,703

)

Effect of exchange rate changes on cash and cash equivalents

(4,113

)

4,545

(2,111

)

(751

)

Increase in cash and cash equivalents

32,887

11,267

44,901

19,764

Cash and cash equivalents at beginning of period

253,330

204,037

241,316

195,540

Cash and cash equivalents at end of period

$

286,217

$

215,304

$

286,217

$

215,304

Financial tables and reconciliation of non-GAAP measures to comparable GAAP measures

The following tables present Net sales and the effect of changes in currency translation rates:

 

(in thousands, except percentages)

Net sales as
reported, Q3 2021

Increase due to
changes in currency
translation rates

Q3 2021 sales
on same basis
as Q3 2020 currency
translation rates

Net sales as
reported, Q3 2020

% Change compared
to Q3 2020, excluding
currency rate effects

Machine Clothing

$

154,171

$

1,688

$

152,483

$

138,747

9.9

%

Albany Engineered Composites

78,271

90

78,181

73,252

6.7

%

Consolidated total

$

232,442

$

1,778

$

230,664

$

211,999

8.8

%

(in thousands, except percentages)

Net sales as
reported, YTD 2021

Increase due to
changes in currency
translation rates

YTD 2021 sales
on same basis
as 2020 currency
translation rates

Net sales as
reported, YTD 2020

% Change compared
to 2020, excluding
currency rate effects

Machine Clothing

$

462,298

$

11,829

$

450,469

$

428,782

5.1

%

Albany Engineered Composites

227,024

2,356

224,668

244,971

(8.3

)%

Consolidated total

$

689,322

$

14,185

$

675,137

$

673,753

0.2

%

The following tables present Gross profit and Gross profit margin:

(in thousands, except percentages)

Gross profit,
Q3 2021

Gross profit margin,
Q3 2021

Gross profit,
Q3 2020

Gross profit margin,
Q3 2020

Machine Clothing

$

79,437

51.5

%

$

71,471

51.5

%

Albany Engineered Composites

12,605

16.1

%

15,831

21.6

%

Consolidated total

$

92,042

39.6

%

$

87,302

41.2

%

(in thousands, except percentages)

Gross profit,
YTD 2021

Gross profit margin,
YTD 2021

Gross profit,
YTD 2020

Gross profit margin,
YTD 2020

Machine Clothing

$

240,427

52.0

%

$

227,734

53.1

%

Albany Engineered Composites

41,889

18.5

%

52,020

21.2

%

Consolidated total

$

282,316

41.0

%

$

279,754

41.5

%

A reconciliation from operating income/(loss) (GAAP) to Adjusted EBITDA (non-GAAP) for the current-year and comparable prior-year periods has been calculated as follows:

 

Three months ended September 30, 2021

(in thousands)

Machine Clothing

Albany Engineered

Composites

Corporate expenses

and other

Total Company

Operating income/(loss) (GAAP)

$

55,467

$

2,917

$

(13,898

)

$

44,486

Interest, taxes, other income/(expense)

(13,544

)

(13,544

)

Net income/(loss) (GAAP)

55,467

2,917

(27,442

)

30,942

Interest expense, net

3,734

3,734

Income tax expense

12,889

12,889

Depreciation and amortization expense

5,014

12,265

935

18,214

EBITDA (non-GAAP)

60,481

15,182

(9,884

)

65,779

Restructuring expenses, net

251

(81

)

17

187

Foreign currency revaluation (gains)/losses

(1,571

)

31

472

(1,068

)

AMJP grant

963

(5,832

)

(4,869

)

Acquisition/integration costs

297

297

Pre-tax (income) attributable to noncontrolling interest

(95

)

(95

)

Adjusted EBITDA (non-GAAP)

$

59,161

$

16,297

$

(15,227

)

$

60,231

Adjusted EBITDA margin (Adjusted EBITDA divided by Net sales-non-GAAP)

38.4

%

20.8

%

25.9

%

Three months ended September 30, 2020

(in thousands)

Machine Clothing

Albany Engineered

Composites

Corporate expenses

and other

Total Company

Operating income/(loss) (GAAP)

$

45,699

$

6,828

$

(13,754

)

$

38,773

Interest, taxes, other income/(expense)

(9,183

)

(9,183

)

Net income/(loss) (GAAP)

45,699

6,828

(22,937

)

29,590

Interest expense, net

2,242

2,242

Income tax expense

9,686

9,686

Depreciation and amortization expense

5,074

12,236

972

18,282

EBITDA (non-GAAP)

50,773

19,064

(10,037

)

59,800

Restructuring expenses, net

384

358

(32

)

710

Foreign currency revaluation (gains)/losses

1,422

(226

)

(144

)

1,052

Acquisition/integration costs

291

291

Pre-tax (income) attributable to noncontrolling interest

(22

)

(22

)

Adjusted EBITDA (non-GAAP)

$

52,579

$

19,465

$

(10,213

)

$

61,831

Adjusted EBITDA margin (Adjusted EBITDA divided by Net sales-non-GAAP)

37.9

%

26.6

%

29.2

%

Nine months ended September 30, 2021

(in thousands)

Machine Clothing

Albany Engineered

Composites

Corporate expenses

and other

Total Company

Operating income/(loss) (GAAP)

$

161,731

$

13,019

$

(38,479

)

$

136,271

Interest, taxes, other income/(expense)

(46,279

)

(46,279

)

Net income/(loss) (GAAP)

161,731

13,019

(84,758

)

89,992

Interest expense, net

11,521

11,521

Income tax expense

36,375

36,375

Depreciation and amortization expense

15,272

37,326

2,749

55,347

EBITDA (non-GAAP)

177,003

50,345

(34,113

)

193,235

Restructuring expenses, net

193

(40

)

77

230

Foreign currency revaluation (gains)/losses

(156

)

363

813

1,020

AMJP grant

963

(5,832

)

(4,869

)

Acquisition/integration costs

911

911

Pre-tax (income) attributable to noncontrolling interest

(206

)

(206

)

Adjusted EBITDA (non-GAAP)

$

177,040

$

52,336

$

(39,055

)

$

190,321

Adjusted EBITDA margin (Adjusted EBITDA divided by Net sales-non-GAAP)

38.3

%

23.1

%

%

27.6

%

Nine months ended September 30, 2020

(in thousands)

Machine Clothing

Albany Engineered

Composites

Corporate expenses

and other

Total Company

Operating income/(loss) (GAAP)

$

149,418

$

22,749

$

(41,073

)

$

131,094

Interest, taxes, other income/(expense)

(61,461

)

(61,461

)

Net income/(loss) (GAAP)

149,418

22,749

(102,534

)

69,633

Interest expense, net

10,042

10,042

Income tax expense

37,504

37,504

Depreciation and amortization expense

15,142

36,192

2,972

54,306

EBITDA (non-GAAP)

164,560

58,941

(52,016

)

171,485

Restructuring expenses, net

1,414

2,606

169

4,189

Foreign currency revaluation (gains)/losses

(1,265

)

501

14,705

13,941

Former CEO termination costs

2,742

2,742

Acquisition/integration costs

867

867

Pre-tax loss attributable to noncontrolling interest

1,412

1,412

Adjusted EBITDA (non-GAAP)

$

164,709

$

64,327

$

(34,400

)

$

194,636

Adjusted EBITDA margin (Adjusted EBITDA divided by Net sales-non-GAAP)

38.4

%

26.3

%

28.9

%

Per share impact of the adjustments to earnings per share are as follows:

 

Three months ended September 30, 2021

(in thousands, except per share amounts)

Pre tax

Amounts

Tax

Effect

After tax

Effect

Per share

Effect

Restructuring expenses, net

$

187

$

55

$

132

$

0.00

Foreign currency revaluation (gains)/losses

(1,068

)

(314

)

(754

)

(0.02

)

AMJP grant

(4,869

)

(1,446

)

(3,423

)

(0.11

)

Acquisition/integration costs

297

89

208

0.01

Three months ended September 30, 2020

(in thousands, except per share amounts)

Pre tax

Amounts

Tax

Effect

After tax

Effect

Per share

Effect

Restructuring expenses, net

$

710

$

232

$

478

$

0.01

Foreign currency revaluation (gains)/losses

1,052

526

526

0.02

Acquisition/integration costs

291

87

204

0.01

Nine months ended September 30, 2021

(in thousands, except per share amounts)

Pre tax

Amounts

Tax

Effect

After tax

Effect

Per share

Effect

Restructuring expenses, net

$

230

$

67

$

163

$

0.00

Foreign currency revaluation (gains)/losses

1,020

332

688

0.02

AMJP grant

(4,869

)

(1,446

)

(3,423

)

(0.11

)

Acquisition/integration costs

911

273

638

0.03

Nine months ended September 30, 2020

(in thousands, except per share amounts)

Pre tax

Amounts

Tax

Effect

After tax

Effect

Per share

Effect

Restructuring expenses, net

$

4,189

$

1,377

$

2,812

$

0.08

Foreign currency revaluation (gains)/losses (a)

13,941

(483

)

14,424

0.46

Former CEO termination costs

2,742

713

2,029

0.06

Acquisition/integration costs

867

259

608

0.03

(a) In Q1 2020, the company recorded losses of approximately $17 million in jurisdictions where it cannot record a tax benefit from the losses, which results in an unusual relationship between the pre-tax and after-tax amounts.

The following table provides a reconciliation of Earnings per share to Adjusted Earnings per share:

 

Three months ended September 30,

Nine months ended September 30,

Per share amounts (Basic)

2021

2020

2021

2020

Earnings per share (GAAP)

$

0.95

$

0.92

$

2.78

$

2.20

Adjustments, after tax:

Restructuring expenses, net

0.01

0.08

Foreign currency revaluation (gains)/losses

(0.02

)

0.02

0.02

0.46

AMJP grant

(0.11

)

(0.11

)

Former CEO termination costs

0.06

Acquisition/integration costs

0.01

0.01

0.03

0.03

Adjusted Earnings per share (non-GAAP)

$

0.83

$

0.96

$

2.72

$

2.83

The calculations of net debt are as follows:

 

(in thousands)

September 30, 2021

June 30, 2021

March 31, 2021

December 31, 2020

Current maturities of long-term debt

$

$

2

$

9

Long-term debt

350,000

350,000

384,000

398,000

Total debt

350,000

350,000

384,002

398,009

Cash and cash equivalents

286,217

253,330

237,871

241,316

Net debt (non GAAP)

$

63,783

$

96,670

$

146,131

$

156,693

 

The tables below provide a reconciliation of forecasted full-year 2021 Adjusted EBITDA and Adjusted EPS (non-GAAP measures) to the comparable GAAP measures:

 

Forecast of Full Year 2021 Adjusted EBITDA

Machine Clothing

AEC

(in millions)

Low

High

Low

High

Net income attributable to the Company (GAAP) (b)

$

194

$

203

$

14

$

18

Income attributable to the noncontrolling interest

(1

)

(1

)

Interest expense, net

Income tax expense

Depreciation and amortization

20

21

49

50

EBITDA (non-GAAP)

214

224

62

67

Restructuring expenses, net (c)

Foreign currency revaluation (gains)/losses (c)

1

1

AMJP grant

1

1

Acquisition/integration costs (c)

1

1

Pre-tax (income)/loss attributable to non-controlling interest

1

1

Adjusted EBITDA (non-GAAP)

$

215

$

225

$

65

$

70

(b) Interest, Other income/expense and Income taxes are not allocated to the business segments

Forecast of Full Year 2021 Adjusted EBITDA

Total Company

(in millions)

Low

High

Net income attributable to the Company (GAAP) (b)

$

105

$

110

Income attributable to the noncontrolling interest

(1

)

(1

)

Interest expense, net

14

15

Income tax expense

41

44

Depreciation and amortization

73

74

EBITDA (non-GAAP)

232

242

Restructuring expenses, net (c)

Foreign currency revaluation (gains)/losses (c)

1

1

AMJP grant

(5

)

(5

)

Acquisition/integration costs (c)

1

1

Pre-tax (income)/loss attributable to non-controlling interest

1

1

Adjusted EBITDA (non-GAAP)

$

230

$

240

Total Company

Forecast of Full Year 2021 Earnings per share (basic) (d)

Low

High

Net income attributable to the Company (GAAP) (b)

$

3.23

$

3.38

Restructuring expenses, net (c)

Foreign currency revaluation (gains)/losses (c)

0.01

0.01

AMJP grant

(0.11

)

(0.11

)

Acquisition/integration costs (c)

0.02

0.02

Adjusted Earnings per share (non-GAAP)

$

3.15

$

3.30

(c) Due to the uncertainty of these items, we are unable to forecast these items for 2021. The amount shown represents the value incurred through the third quarter.

(d) Calculations based on estimated shares outstanding of 32.4 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 fabrics and process belts essential for the manufacture of all grades of paper products. 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 23 facilities in 11 countries, employs approximately 4,000 people worldwide, and is listed on the New York Stock Exchange (Symbol AIN). Additional information about the Company and its products and services can be found at www.albint.com.

Non-GAAP Measures

This release, including the conference call commentary associated with this release, contains certain non-GAAP measures, including: net sales, and percent change in net sales, excluding the impact of currency translation effects (for each segment and on a consolidated basis); EBITDA and Adjusted EBITDA (for each segment and on a consolidated basis, represented in dollars or as a percentage of net sales); Net debt; and Adjusted earnings per share (or Adjusted EPS). Such items are provided because management believes that they provide additional useful information to investors regarding the Company’s operational performance.

Presenting Net sales and increases or decreases in Net sales, after currency effects are excluded, can give management and investors insight into underlying sales trends. Net sales, or 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. These amounts are then compared to the U.S. dollar amount as reported in the current period.

EBITDA, Adjusted EBITDA and Adjusted EPS are performance measures that relate to the Company’s continuing operations. 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. The Company calculates EBITDA by removing the following from Net income: Interest expense, net, Income tax expense, Depreciation and amortization expense. Adjusted EBITDA is calculated by: adding to EBITDA costs associated with restructuring, former CEO termination costs, and inventory write-offs associated with discontinued businesses; adding charges and credits related to pension plan settlements and curtailments; adding (or subtracting) revaluation losses (or gains); subtracting income recognized associated with government grants; subtracting (or adding) gains (or losses) from the sale of buildings or investments; subtracting insurance recovery gains in excess of previously recorded losses; adding acquisition/integration costs and subtracting (or adding) Income (or loss) attributable to the non-controlling interest in Albany Safran Composites (ASC). Adjusted EBITDA may also be presented as a percentage of net sales by dividing it by net sales. An understanding of the impact in a particular quarter of specific restructuring costs, former CEO termination costs, government grants, acquisition/integration costs, 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, 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. Adjusted earnings per share (Adjusted EPS) is calculated by adding to (or subtracting from) net income attributable to the Company per share, on an after-tax basis: restructuring charges; former CEO severance costs; charges and credits related to pension plan settlements and curtailments; inventory write-offs associated with discontinued businesses; foreign currency revaluation losses (or gains); acquisition-related expenses; and losses (or gains) from the sale of investments.

EBITDA, Adjusted EBITDA, and Adjusted EPS, 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 an income tax rate based on either the tax rates in specific countries or the estimated tax rate applied to total company results. The tax rate applied excludes income tax adjustments (discrete tax adjustments and the effect of changes in the estimated income tax rate). The after-tax amount is then divided by 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.

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. The Company calculates Net debt by subtracting Cash and cash equivalents from Total debt. Total debt is calculated by adding Long-term debt, Current maturities of long-term debt, and Notes and loans payable, if any.

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 and paper-industry trends and conditions during 2021 and in future years; expectations in 2021 and in future periods of sales, EBITDA, Adjusted EBITDA (both in dollars and as a percentage of net sales), 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 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.

Contacts:

John Hobbs
603-330-5897
john.hobbs@albint.com

Data & News supplied by www.cloudquote.io
Stock quotes supplied by Barchart
Quotes delayed at least 20 minutes.
By accessing this page, you agree to the following
Privacy Policy and Terms and Conditions.