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Albany International Reports First-Quarter 2024 Results

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Albany International Corp. (NYSE:AIN) reported strong Q1 results for 2024, with revenue reaching $313 million, up 16.4% over the prior year. Machine Clothing and Engineered Composites segments showed growth, but overall gross margin declined due to lower margins at Heimbach. Adjusted diluted EPS was $0.90. The company reaffirmed its full-year 2024 guidance.

Albany International Corp. (NYSE:AIN) ha riportato risultati positivi per il primo trimestre del 2024, con un fatturato di 313 milioni di dollari, in aumento del 16,4% rispetto all'anno precedente. I segmenti di Machine Clothing e Engineered Composites hanno registrato una crescita, ma il margine lordo complessivo è diminuito a causa dei margini più bassi presso Heimbach. L'EPS diluito rettificato è stato di $0,90. La società ha confermato le previsioni per l'intero anno 2024.
Albany International Corp. (NYSE:AIN) informó de fuertes resultados para el primer trimestre de 2024, con ingresos alcanzando los $313 millones, lo que representa un incremento del 16.4% respecto al año anterior. Los segmentos de Ropa de Máquina y Compuestos de Ingeniería mostraron crecimiento, aunque el margen bruto total disminuyó debido a los menores márgenes en Heimbach. El EPS diluido ajustado fue de $0.90. La compañía reafirmó su guía para el año completo 2024.
Albany International Corp. (NYSE:AIN)는 2024년 1분기에 강력한 실적을 보고했으며, 매출은 전년 대비 16.4% 증가한 3억 1300만 달러에 달했습니다. 기계 의류 및 엔지니어드 컴포지트 부문이 성장을 보였지만, Heimbach의 낮은 마진으로 인해 전체 총 마진이 감소했습니다. 조정된 희석 주당이익(EPS)은 0.90달러였습니다. 회사는 2024년 전체에 대한 지침을 재확인했습니다.
Albany International Corp. (NYSE:AIN) a rapporté de solides résultats pour le premier trimestre de 2024, avec un chiffre d'affaires atteignant 313 millions de dollars, en hausse de 16,4 % par rapport à l'année précédente. Les segments des Vêtements de machines et des Composites d'ingénierie ont connu une croissance, mais la marge brute globale a diminué en raison des marges inférieures chez Heimbach. Le BPA dilué ajusté était de 0,90 $. La société a réaffirmé ses prévisions pour l'ensemble de l'année 2024.
Albany International Corp. (NYSE:AIN) berichtete über starke Ergebnisse für das erste Quartal 2024 mit einem Umsatz von 313 Millionen Dollar, was einem Anstieg von 16,4% gegenüber dem Vorjahr entspricht. Die Segmente Machine Clothing und Engineered Composites zeigten Wachstum, allerdings fiel die Gesamtbruttomarge aufgrund niedrigerer Margen bei Heimbach. Der bereinigte verwässerte Gewinn pro Aktie betrug 0,90 Dollar. Das Unternehmen bestätigte seine Prognose für das Gesamtjahr 2024.
Positive
  • Revenue increased by 16.4% to $313 million compared to the previous year.

  • Machine Clothing's net revenues grew by 20.9% driven by Heimbach, contributing to the segment's performance.

  • Adjusted EBITDA saw an 8.3% increase to $65.4 million.

Negative
  • Gross margin declined by more than 200 basis points due to lower margins at Heimbach.

  • Operating income decreased to $39 million compared to $40.5 million in the prior year.

  • Net income was $27.3 million ($0.87 per share), slightly lower than the previous year.

Insights

Albany International Corp.'s announcement of revenue growth indicates a robust performance in the face of market challenges, particularly in their Engineered Composites division. A significant takeaway for investors is the company's ability to reaffirm its yearly guidance, instilling a sense of stability about its future performance. However, the decline in gross margin by over 200 basis points, primarily due to lower margins at Heimbach, requires attention. While top-line growth is commendable, margin pressures could signal underlying cost management issues or competitive market effects that might impinge on future profitability. Moreover, the increase in SG&A expenses, albeit driven by the Heimbach integration, suggests a potential for operational inefficiencies that could dilute earnings if not managed effectively in subsequent quarters.

Analyzing the market segments, the Machine Clothing (MC) sector's revenue boost, primarily attributed to the Heimbach acquisition, seems to be offsetting the softer organic demand in Europe. Market sentiment in North America remains optimistic, which may act as a buffer against European volatility. On the other hand, the Albany Engineered Composites (AEC) segment shows a promising 10.6% increase in net revenues, highlighting the company's strategic focus on commercial programs. This diversification into emerging platforms, especially in space, could be a significant growth driver, notwithstanding the noted dip in defense program revenues. Investors might consider the potential long-term benefits from the company's R&D advancements and strategic partnerships within this high-potential sector.

The reported effective tax rate of 29.2% reflects a slight increase from the previous year's 28.2%. This uptick in tax rate should be noted by investors as it impacts the net income, despite it being a modest change. Looking ahead, the expected tax rate for the full year remains within a tight range of 29% to 31%, which suggests that the company has a reliable tax planning strategy in place. This consistency in tax rate forecasting helps in mitigating fiscal uncertainties and aids in more accurate financial projections for stakeholders.

ROCHESTER, N.H.--(BUSINESS WIRE)-- Albany International Corp. (NYSE:AIN) today reported operating results for its first quarter of 2024, which ended March 31, 2024.

"We had another good quarter as our businesses delivered solid results and are executing to their plans," said President and CEO, Gunnar Kleveland. "Revenue of $313 million, was up $44 million or 16.4% over prior year due to the inclusion of Heimbach and sales growth in Engineered Composites.

"In Machine Clothing, North American markets remain strong. For the quarter we experienced lower organic demand due to continued softness in Europe. However, we have seen an improvement in our global order backlog. We also continue to make excellent progress on the integration of Heimbach.

"Engineered Composites is continuing to execute on its long-term strategy of delivering top-line growth. Revenues increased more than 10% over prior year, driven by strength in our commercial programs, including space and other emerging platforms. We continue to see a ramp up in our programs as the year progresses.

"Our Q1 performance was in line with our plan and we are reaffirming our guidance for the year," concluded Kleveland.

For the first quarter ended March 31, 2024:

  • Net revenues were $313.3 million, up 16.4%, or 16.6% after adjusting for currency translation, when compared to the prior year. MC's net revenues increased 20.9%, driven by Heimbach net revenues, which was partially offset by lower net revenues in the rest of the segment, driven primarily by weakness in publication globally and in all grades in Europe. AEC's net revenues increased 10.6%, primarily driven by growth on commercial programs, partially offset by lower revenues on defense programs.
  • Gross profit of $108.7 million was 9.4% higher than the $99.3 million reported for the same period of 2023; overall gross margin declined by more than 200 basis points, driven by lower margins at Heimbach.
  • Selling, General, and Administrative (SG&A) expenses were $54.8 million, compared to $48.5 million in the same period of 2023; the increase was driven primarily by the inclusion of Heimbach.
  • Operating income was $39.0 million, compared to $40.5 million in the prior year, the result of higher STG&R at MC and restructuring expenses at AEC.
  • Effective tax rate for the quarter was 29.2%, compared to 28.2% for the first quarter of 2023.
  • Net income attributable to the Company was $27.3 million ($0.87 per share), compared to $26.9 million ($0.86 per share) in the first quarter of 2023; Adjusted diluted earnings per share (or Adjusted diluted EPS, a non-GAAP measure) was $0.90 per share, compared to $0.91 per share for the same period last year.
  • Adjusted EBITDA (a non-GAAP measure) was $65.4 million, compared to $60.4 million in the first quarter of 2023, an increase of 8.3%.

Please see the tables below for a reconciliation of non-GAAP measures to their comparable GAAP measures.

Outlook for Full-Year 2024

The company has reaffirmed its guidance for the full year of 2024 as follows:

  • Total company revenue between $1.26 and $1.33 billion
  • Effective income tax rate between 29% and 31%
  • Capital expenditures in the range of $90 to $95 million
  • Adjusted diluted earnings per share between $3.55 and $4.05
  • Total company Adjusted EBITDA between $260 to $290 million
  • Machine Clothing revenue between $760 to $790 million
  • Machine Clothing Adjusted EBITDA between $230 and $250 million
  • Albany Engineered Composites revenue between $500 to $540 million, and
  • Albany Engineered Composites Adjusted EBITDA between $97 to $107 million.

ALBANY INTERNATIONAL CORP.

CONSOLIDATED STATEMENTS OF INCOME

(in thousands, except per share amounts)

(unaudited)

 

 

Three Months Ended
March 31,

 

 

2024

 

 

 

2023

 

Net revenues

$

313,330

 

 

$

269,096

 

Cost of goods sold

 

204,644

 

 

 

169,778

 

 

 

 

 

Gross profit

 

108,686

 

 

 

99,318

 

Selling, general, and administrative expenses

 

54,835

 

 

 

48,479

 

Technical and research expenses

 

12,665

 

 

 

10,277

 

Restructuring expenses, net

 

2,209

 

 

 

20

 

 

 

 

 

Operating income

 

38,977

 

 

 

40,542

 

Interest expense/(income), net

 

3,319

 

 

 

3,290

 

Other (income)/expense, net

 

(2,982

)

 

 

(455

)

 

 

 

 

Income before income taxes

 

38,640

 

 

 

37,707

 

Income taxes

 

11,271

 

 

 

10,621

 

 

 

 

 

Net income

 

27,369

 

 

 

27,086

 

Net income attributable to the noncontrolling interest

 

78

 

 

 

197

 

Net income attributable to the Company

$

27,291

 

 

$

26,889

 

 

 

 

 

Earnings per share attributable to Company shareholders - Basic

$

0.87

 

 

$

0.86

 

 

 

 

 

Earnings per share attributable to Company shareholders - Diluted

$

0.87

 

 

$

0.86

 

 

 

 

 

Shares of the Company used in computing earnings per share:

 

 

 

Basic

 

31,209

 

 

 

31,131

 

 

 

 

 

Diluted

 

31,291

 

 

 

31,217

 

 

 

 

 

Dividends declared per Class A share

$

0.26

 

 

$

0.25

 

ALBANY INTERNATIONAL CORP.

CONSOLIDATED BALANCE SHEETS

(in thousands, except share data)

(unaudited)

 

 

March 31, 2024

 

December 31, 2023

Assets

 

 

 

Cash and cash equivalents

$

125,412

 

 

$

173,420

 

Accounts receivable, net

 

305,495

 

 

 

287,781

 

Contract assets, net

 

179,223

 

 

 

182,281

 

Inventories

 

166,025

 

 

 

169,567

 

Income taxes prepaid and receivable

 

11,686

 

 

 

11,043

 

Prepaid expenses and other current assets

 

57,331

 

 

 

53,872

 

Total current assets

$

845,172

 

 

$

877,964

 

 

 

 

 

Property, plant and equipment, net

 

589,970

 

 

 

601,989

 

Intangibles, net

 

42,839

 

 

 

44,646

 

Goodwill

 

178,704

 

 

 

180,181

 

Deferred income taxes

 

24,153

 

 

 

22,941

 

Noncurrent receivables, net

 

 

 

 

4,392

 

Other assets

 

117,342

 

 

 

102,901

 

Total assets

$

1,798,180

 

 

$

1,835,014

 

 

 

 

 

Liabilities and Shareholders' Equity

 

 

 

Accounts payable

$

80,778

 

 

$

87,104

 

Accrued liabilities

 

118,181

 

 

 

142,988

 

Current maturities of long-term debt

 

4,445

 

 

 

4,218

 

Income taxes payable

 

8,586

 

 

 

14,369

 

Total current liabilities

 

211,990

 

 

 

248,679

 

 

 

 

 

Long-term debt

 

434,689

 

 

 

452,667

 

Other noncurrent liabilities

 

151,121

 

 

 

139,385

 

Deferred taxes and other liabilities

 

26,815

 

 

 

26,963

 

Total liabilities

 

824,615

 

 

 

867,694

 

 

 

 

 

Commitments and Contingencies

 

 

 

 

 

 

 

Shareholders' Equity:

 

 

 

Preferred stock, par value $5.00 per share; authorized 2,000,000 shares; none issued

 

 

 

 

 

Class A Common Stock, par value $0.001 per share; authorized 100,000,000 shares; 40,898,219 issued in 2024 and 40,856,910 in 2023

 

41

 

 

 

41

 

Additional paid in capital

 

449,028

 

 

 

448,218

 

Retained earnings

 

1,030,111

 

 

 

1,010,942

 

Accumulated items of other comprehensive income:

 

 

 

Translation adjustments

 

(137,017

)

 

 

(124,901

)

Pension and postretirement liability adjustments

 

(16,964

)

 

 

(17,346

)

Derivative valuation adjustment

 

6,955

 

 

 

9,079

 

Treasury stock (Class A), at cost; 9,661,845 shares in 2024 and 2023

 

(364,665

)

 

 

(364,665

)

Total shareholders' equity

 

967,489

 

 

 

961,368

 

Noncontrolling interest

 

6,076

 

 

 

5,952

 

Total equity

 

973,565

 

 

 

967,320

 

Total liabilities and shareholders' equity

$

1,798,180

 

 

$

1,835,014

 

ALBANY INTERNATIONAL CORP.

CONSOLIDATED STATEMENTS OF CASH FLOWS

(in thousands)

(unaudited)

 

 

 

Three Months Ended March 31,

 

 

 

2024

 

 

 

2023

 

Cash flows from operating activities:

 

 

 

 

Net income

 

$

27,369

 

 

$

27,086

 

Adjustments to reconcile net income to net cash provided by/(used in) operating activities:

 

 

 

 

Depreciation

 

 

20,556

 

 

 

15,864

 

Amortization

 

 

1,748

 

 

 

1,503

 

Change in deferred taxes and other liabilities

 

 

(675

)

 

 

(887

)

Impairment of property, plant and equipment

 

 

49

 

 

 

100

 

Non-cash interest expense

 

 

256

 

 

 

280

 

Compensation and benefits paid or payable in Class A Common Stock

 

 

810

 

 

 

378

 

Provision for credit losses from uncollected receivables and contract assets

 

 

365

 

 

 

309

 

Foreign currency remeasurement (gain) on intercompany loans

 

 

(792

)

 

 

(1,732

)

Fair value adjustment on foreign currency options

 

 

280

 

 

 

58

 

 

 

 

 

 

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

 

 

 

 

Accounts receivable

 

 

(17,061

)

 

 

(13,702

)

Contract assets

 

 

2,982

 

 

 

(4,403

)

Inventories

 

 

1,917

 

 

 

(12,360

)

Prepaid expenses and other current assets

 

 

(6,525

)

 

 

(2,191

)

Income taxes prepaid and receivable

 

 

(721

)

 

 

(693

)

Accounts payable

 

 

7,730

 

 

 

5,214

 

Accrued liabilities

 

 

(22,739

)

 

 

(23,137

)

Income taxes payable

 

 

(5,466

)

 

 

(10,996

)

Noncurrent receivables

 

 

(178

)

 

 

867

 

Other noncurrent liabilities

 

 

506

 

 

 

7

 

Other, net

 

 

(814

)

 

 

2,042

 

Net cash provided by/(used in) operating activities

 

 

9,597

 

 

 

(16,393

)

 

 

 

 

 

Cash flows from investing activities:

 

 

 

 

Purchases of property, plant and equipment

 

 

(26,859

)

 

 

(16,275

)

Purchased software

 

 

(21

)

 

 

 

Net cash used in investing activities

 

 

(26,880

)

 

 

(16,275

)

 

 

 

 

 

Cash flows from financing activities:

 

 

 

 

Proceeds from borrowings

 

 

43,237

 

 

 

58,000

 

Principal payments on debt

 

 

(60,750

)

 

 

(6,000

)

Taxes paid in lieu of share issuance

 

 

(2,446

)

 

 

(3,136

)

Dividends paid

 

 

(8,110

)

 

 

(7,778

)

Net cash (used in)/provided by financing activities

 

 

(28,069

)

 

 

41,086

 

 

 

 

 

 

Effect of exchange rate changes on cash and cash equivalents

 

 

(2,656

)

 

 

4,064

 

 

 

 

 

 

(Decrease)/increase in cash and cash equivalents

 

 

(48,008

)

 

 

12,482

 

Cash and cash equivalents at beginning of period

 

 

173,420

 

 

 

291,776

 

Cash and cash equivalents at end of period

 

$

125,412

 

 

$

304,258

 

The following table presents the reconciliation of Net revenues to net revenues excluding the effect of changes in currency translation rates, a non-GAAP measure:

(in thousands, except percentages)

Net revenues as
reported, Q1
2024

(Decrease)/
increase due to
changes in
currency
translation rates

Q1 2024
revenues on
same basis as
Q1 2023
currency
translation rates

Net revenues
as reported,
Q1 2023

% Change
compared to Q1
2023, excluding
currency rate
effects

Machine Clothing

$

185,217

$

(598)

$

185,815

$

153,222

21.3 %

Albany Engineered Composites

 

128,113

 

221

 

127,892

 

115,874

10.4 %

Consolidated total

$

313,330

$

(377)

$

313,707

$

269,096

16.6 %

The following table presents Gross profit and Gross profit margin:

(in thousands, except percentages)

Gross profit,

Q1 2024

Gross profit margin,
Q1 2024

Gross profit,

Q1 2023

Gross profit margin,
Q1 2023

Machine Clothing

$

84,655

45.7 %

$

77,855

50.8 %

Albany Engineered Composites

 

24,031

18.8 %

 

21,463

18.5 %

Consolidated total

$

108,686

34.7 %

$

99,318

36.9 %

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

Three months ended March 31, 2024

(in thousands)

Machine Clothing

Albany Engineered

Composites

Corporate expenses

and other

Total Company

Net income/(loss) (GAAP)

$

48,110

 

$

9,188

 

$

(29,929

)

$

27,369

 

Interest expense/(income), net

 

 

 

 

 

3,319

 

 

3,319

 

Income tax expense

 

 

 

 

 

11,271

 

 

11,271

 

Depreciation and amortization expense

 

8,101

 

 

13,059

 

 

1,144

 

 

22,304

 

EBITDA (non-GAAP)

 

56,211

 

 

22,247

 

 

(14,195

)

 

64,263

 

Restructuring expenses, net

 

21

 

 

2,188

 

 

 

 

2,209

 

Foreign currency revaluation (gains)/losses (a)

 

(1,410

)

 

280

 

 

(1,296

)

 

(2,426

)

Other transition expenses

 

 

 

 

 

125

 

 

125

 

Acquisition/integration costs

 

713

 

 

182

 

 

426

 

 

1,321

 

Pre-tax (income) attributable to noncontrolling interest

 

(11

)

 

(105

)

 

 

 

(116

)

Adjusted EBITDA (non-GAAP)

$

55,524

 

$

24,792

 

$

(14,940

)

$

65,376

 

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

 

30.0

%

 

19.4

%

 

 

 

20.9

%

 

 

 

 

 

Three months ended March 31, 2023

(in thousands)

Machine Clothing

Albany Engineered

Composites

Corporate expenses

and other

Total Company

Net income/(loss) (GAAP)

$

48,964

 

$

9,418

 

$

(31,296

)

$

27,086

 

Interest expense/(income), net

 

 

 

 

 

3,290

 

 

3,290

 

Income tax benefit

 

 

 

 

 

10,621

 

 

10,621

 

Depreciation and amortization expense

 

4,775

 

 

11,664

 

 

928

 

 

17,367

 

EBITDA (non-GAAP)

 

53,739

 

 

21,082

 

 

(16,457

)

 

58,364

 

Restructuring expenses, net

 

20

 

 

 

 

 

 

20

 

Foreign currency revaluation (gains)/losses (a)

 

1,960

 

 

(133

)

 

60

 

 

1,887

 

Acquisition/integration costs

 

 

 

269

 

 

 

 

269

 

Pre-tax (income) attributable to noncontrolling interest

 

 

 

(189

)

 

 

 

(189

)

Adjusted EBITDA (non-GAAP)

$

55,719

 

$

21,029

 

$

(16,397

)

$

60,351

 

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

 

36.4

%

 

18.1

%

 

 

 

22.4

%

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

Three months ended March 31, 2024

(in thousands, except per share amounts)

Pre tax

Amounts

Tax

Effect

After tax

Effect

Per share

Effect

Restructuring expenses, net

$

2,209

 

$

583

 

$

1,626

 

$

0.05

 

Foreign currency revaluation (gains)/losses (a)

 

(2,426

)

 

(728

)

 

(1,698

)

 

(0.05

)

Other transition expenses

 

125

 

 

31

 

 

94

 

 

0.00

 

Acquisition/integration costs

 

1,321

 

 

386

 

 

935

 

 

0.03

 

 

 

 

 

 

Three months ended March 31, 2023

(in thousands, except per share amounts)

Pre tax

Amounts

Tax

Effect

After tax

Effect

Per share

Effect

Restructuring expenses, net

$

20

$

4

$

16

$

0.00

Foreign currency revaluation (gains)/losses (a)

 

1,887

 

553

 

1,334

 

0.04

Acquisition/integration costs

 

269

 

77

 

192

 

0.01

 

 

 

 

 

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

 

Three months ended March 31,

Per share amounts (Diluted)

 

2024

 

 

2023

Diluted Earnings per share (GAAP)

$

0.87

 

$

0.86

Adjustments, after tax:

 

 

Restructuring expenses, net

 

0.05

 

 

Foreign currency revaluation (gains)/losses (a)

 

(0.05

)

 

0.04

Acquisition/integration costs

 

0.03

 

 

0.01

Adjusted Diluted Earnings per share (non-GAAP)

$

0.90

 

$

0.91

The calculations of net debt are as follows:

(in thousands)

March 31, 2024

December 31, 2023

March 31, 2023

Current maturities of long-term debt

$

4,445

$

4,218

$

Long-term debt

 

434,689

 

452,667

 

491,000

Total debt

 

439,134

 

456,885

 

491,000

Cash and cash equivalents

 

125,412

 

173,420

 

304,258

Net debt (non-GAAP)

$

313,722

$

283,465

$

186,742

The calculation of net leverage ratio as of March 31, 2024 is as follows:

Total Company

 

Twelve months
ended

Three months ended

Trailing twelve months ended

(in thousands)

December 31,
2023

March 31,
2023

March 31,
2024

March 31, 2024
(non-GAAP) (b)

Net income/(loss) (GAAP)

$

111,610

 

$

27,086

 

$

27,369

 

$

111,893

 

Interest expense/(income), net

 

13,601

 

 

3,290

 

 

3,319

 

 

13,630

 

Income tax expense

 

48,846

 

 

10,621

 

 

11,271

 

 

49,496

 

Depreciation and amortization expense

 

76,733

 

 

17,367

 

 

22,304

 

 

81,670

 

EBITDA (non-GAAP)

 

250,790

 

 

58,364

 

 

64,263

 

 

256,689

 

Restructuring expenses, net

 

282

 

 

20

 

 

2,209

 

 

2,471

 

Foreign currency revaluation (gains)/losses (a)

 

1,296

 

 

1,887

 

 

(2,426

)

 

(3,017

)

CEO and other transition expenses

 

2,719

 

 

 

 

125

 

 

2,844

 

Inventory step-up impacting Cost of goods sold

 

5,480

 

 

 

 

 

 

5,480

 

Acquisition/integration costs

 

5,194

 

 

269

 

 

1,321

 

 

6,246

 

Pre-tax (income) attributable to noncontrolling interest

 

(665

)

 

(189

)

 

(116

)

 

(592

)

Adjusted EBITDA (non-GAAP)

$

265,096

 

$

60,351

 

$

65,376

 

$

270,121

 

 

(in thousands, except for net leverage ratio)

March 31, 2024

     

Net debt (non-GAAP)

$

313,722

     

Trailing twelve months Adjusted EBITDA (non-GAAP)

 

270,121

     

Net leverage ratio (non-GAAP)

 

1.16

     

(a) Foreign currency revaluation (gains)/losses represent unrealized gains and losses arising from the remeasurement of monetary assets and liabilities denominated in non-functional currencies on the balance sheet date.

(b) Calculated as amounts incurred during the twelve months ended December 31, 2023, less those incurred during the three months ended March 31, 2023, plus those incurred during the three months ended March 31, 2024.

The tables below provide a reconciliation of forecasted full-year 2024 Adjusted EBITDA and Adjusted Diluted EPS (non-GAAP measures) to the comparable GAAP measures.

Forecast of Full Year 2024 Adjusted EBITDA

Machine Clothing

 

AEC

(in millions)

Low

High

 

Low

High

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

$

198

 

$

213

 

 

$

45

 

$

50

 

Income attributable to the noncontrolling interest

 

 

 

 

 

 

(1

)

 

(1

)

Interest expense/(income), net

 

 

 

 

 

 

 

 

 

Income tax expense

 

 

 

 

 

 

 

 

 

Depreciation and amortization

 

30

 

 

35

 

 

 

50

 

 

55

 

EBITDA (non-GAAP)

 

228

 

 

248

 

 

 

94

 

 

104

 

Restructuring expenses, net (d)

 

 

 

 

 

 

2

 

 

2

 

Foreign currency revaluation (gains)/losses (d)

 

1

 

 

1

 

 

 

 

 

 

Acquisition/integration costs (d)

 

1

 

 

1

 

 

 

 

 

 

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

 

 

 

 

 

 

1

 

 

1

 

Adjusted EBITDA (non-GAAP)

$

230

 

$

250

 

 

$

97

 

$

107

 

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

 

 

 

 

 

 

 

Forecast of Full Year 2024 Adjusted EBITDA

Total Company

 

 

 

(in millions)

Low

High

 

 

 

Net income attributable to the Company (GAAP)

$

110

 

$

125

 

 

 

 

Income attributable to the noncontrolling interest

 

(1

)

 

(1

)

 

 

 

Interest expense/(income), net

 

17

 

 

18

 

 

 

 

Income tax expense

 

44

 

 

48

 

 

 

 

Depreciation and amortization

 

85

 

 

95

 

 

 

 

EBITDA (non-GAAP)

 

255

 

 

285

 

 

 

 

Restructuring expenses, net (d)

 

2

 

 

2

 

 

 

 

Foreign currency revaluation (gains)/losses (d)

 

1

 

 

1

 

 

 

 

Acquisition/integration costs (d)

 

1

 

 

1

 

 

 

 

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

 

1

 

 

1

 

 

 

 

Adjusted EBITDA (non-GAAP)

$

260

 

$

290

 

 

 

 

 

 

 

 

 

 

 

Total Company

 

 

 

Forecast of Full Year 2024 Earnings per share (diluted) (e)

Low

High

 

 

 

Net income attributable to the Company (GAAP)

$

3.52

 

$

4.02

 

 

 

 

Restructuring expenses, net (d)

 

0.05

 

 

0.05

 

 

 

 

Foreign currency revaluation (gains)/losses (d)

 

(0.05

)

 

(0.05

)

 

 

 

Acquisition/integration costs (d)

 

0.03

 

 

0.03

 

 

 

 

Adjusted Diluted Earnings per share (non-GAAP)

$

3.55

 

$

4.05

 

 

 

 

 

 

 

 

 

 

(d) Due to the uncertainty of these items, we are unable to forecast these items for 2024

(e) Calculations based on weighted average shares outstanding estimate of approximately 31.2 million

About Albany International Corp.

Albany International is a leading developer and manufacturer of engineered components, using advanced materials processing and automation capabilities, with two core businesses. Machine Clothing is the world’s leading producer of custom-designed, consumable belts essential for the manufacture of paper, paperboard, tissue and towel, pulp, non-wovens and a variety of other industrial applications. Albany Engineered Composites is a growing designer and manufacturer of advanced materials-based engineered components for demanding aerospace applications, supporting both commercial and military platforms. Albany International is headquartered in Rochester, New Hampshire, operates 32 plants in 14 countries, employs approximately 5,600 people worldwide, and is listed on the New York Stock Exchange (Symbol AIN). Additional information about the Company and its products and services can be found at www.albint.com.

Non-GAAP Measures

This release, including the conference call commentary associated with this release, contains certain non-GAAP measures, that should not be considered in isolation or as a substitute for the related GAAP measures. Such non-GAAP measures include net revenues and percent change in net revenues, excluding the impact of currency translation effects; EBITDA, Adjusted EBITDA, and Adjusted EBITDA margin; Net debt; Net leverage ratio; and Adjusted diluted earnings per share (or Adjusted Diluted EPS). Management believes that these non-GAAP measures provide additional useful information to investors regarding the Company’s operational performance.

Presenting Net revenues and change in Net revenues, after currency effects are excluded, provides management and investors insight into underlying revenues trends. Net revenues, or percent changes in net revenues, excluding currency rate effects, are calculated by converting amounts reported in local currencies into U.S. dollars at the exchange rate of a prior period. These amounts are then compared to the U.S. dollar amount as reported in the current period.

EBITDA (calculated as net income excluding interest, income taxes, depreciation and amortization), Adjusted EBITDA, and Adjusted Diluted EPS are performance measures that relate to the Company’s continuing operations. The Company defines Adjusted EBITDA as EBITDA excluding costs or benefits that are not reflective of the Company’s ongoing or expected future operational performance. Such excluded costs or benefits do not consist of normal, recurring cash items necessary to generate revenues or operate our business. Adjusted EBITDA margin represents Adjusted EBITDA expressed as a percentage of net revenues.

The Company defines Adjusted Diluted EPS as diluted earnings per share (GAAP), adjusted by the after tax per share amount of costs or benefits not reflective of the Company’s ongoing or expected future operational performance. The income tax effects are calculated using the applicable statutory income tax rate of the jurisdictions where such costs or benefits were incurred or the effective tax rate applicable to total company results.

The Company’s Adjusted EBITDA, Adjusted EBITDA margin, and Adjusted Diluted EPS may not be comparable to similarly titled measures of other companies.

Net debt aids investors in understanding the Company’s debt position if all available cash were applied to pay down indebtedness.

Net leverage ratio informs the investors of the Company's financial leverage at the end of the reporting period, providing an indicator of the Company's ability to repay its debt.

We encourage investors to review our financial statements and publicly-filed reports in their entirety and not to rely on any single financial measure.

Forward-Looking Statements

This press release may contain statements, estimates, guidance or projections that constitute “forward-looking statements” as defined under U.S. federal securities laws. Generally, the words “believe,” “expect,” “intend,” “estimate,” “anticipate,” “project,” “will,” “should,” “look for,” “guidance,” “guide,” and similar expressions identify forward-looking statements, which generally are not historical in nature. Because forward-looking statements are subject to certain risks and uncertainties (including, without limitation, those set forth in the Company’s most recent Annual Report on Form 10-K or Quarterly Report on Form 10-Q), actual results may differ materially from those expressed or implied by such forward-looking statements.

Forward-looking statements in this release or in the webcast include, without limitation, statements about macroeconomic conditions, including inflationary cost pressures, as well as global events, which include but are not limited to geopolitical events; paper-industry trends and conditions during the current year and in future years; expectations in the current period and in future periods of revenues, EBITDA, Adjusted EBITDA (both in dollars and as a percentage of net revenues), Adjusted Diluted EPS, income, gross profit, gross margin, cash flows and other financial items in each of the Company’s businesses, and for the Company as a whole; the timing and impact of production and development programs in the Company’s AEC business segment and the revenues growth potential of key AEC programs, as well as AEC as a whole; the amount and timing of capital expenditures, future tax rates and cash paid for taxes, depreciation and amortization; future debt and net debt levels and debt covenant ratios; and changes in currency rates and their impact on future revaluation gains and losses. Furthermore, a change in any one or more of the foregoing factors could have a material effect on the Company’s financial results in any period. Such statements are based on current expectations, and the Company undertakes no obligation to publicly update or revise any forward-looking statements.

Statements expressing management’s assessments of the growth potential of its businesses, or referring to earlier assessments of such potential, are not intended as forecasts of actual future growth, and should not be relied on as such. While management believes such assessments to have a reasonable basis, such assessments are, by their nature, inherently uncertain. This release and earlier releases set forth a number of assumptions regarding these assessments, including historical results, independent forecasts regarding the markets in which these businesses operate, and the timing and magnitude of orders for our customers’ products. Historical growth rates are no guarantee of future growth, and such independent forecasts and assumptions could prove materially incorrect in some cases.

JC Chetnani

603-330-5851

jc.chetnani@albint.com

Source: Albany International Corp.

FAQ

What was Albany International Corp.'s revenue in Q1 2024?

Albany International Corp. reported revenue of $313 million in Q1 2024.

How did Machine Clothing perform in Q1 2024?

Machine Clothing's net revenues increased by 20.9% driven by Heimbach.

What was the Adjusted EBITDA for Albany International Corp. in Q1 2024?

Albany International Corp.'s Adjusted EBITDA was $65.4 million in Q1 2024.

What was the Adjusted diluted EPS for Albany International Corp. in Q1 2024?

Albany International Corp.'s Adjusted diluted EPS was $0.90 per share in Q1 2024.

Did Albany International Corp. reaffirm its guidance for full-year 2024?

Yes, Albany International Corp. reaffirmed its guidance for full-year 2024.

What caused the decline in gross margin for Albany International Corp. in Q1 2024?

The decline in gross margin was due to lower margins at Heimbach.

How did the operating income change for Albany International Corp. in Q1 2024 from the previous year?

The operating income decreased to $39 million in Q1 2024 from $40.5 million in the previous year.

What was the net income for Albany International Corp. in Q1 2024?

Albany International Corp. reported net income of $27.3 million in Q1 2024.

Albany International Corp

NYSE:AIN

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2.44B
31.24M
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Textile Manufacturing
Broadwoven Fabric Mills, Man Made Fiber & Silk
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United States of America
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