News Column

Albany International Reports Second-Quarter Results

August 4, 2014

Second-Quarter Financial Highlights

  • Net sales were $193.5 million, a decrease of 2.3 percent compared to Q2 2013.
  • Adjusted EBITDA for Q2 2014 was $37.3 million, compared to $36.1 million in Q2 2013 (see Tables 6 and 7).
  • Q2 2014 income attributable to the Company was $0.35 per share. Earnings were reduced by restructuring charges of $0.04 and income tax adjustments of $0.03, and were increased by an insurance-recovery gain of $0.03 and foreign currency revaluation gains of $0.02 (see Table 10).
  • Q2 2013 income attributable to the Company was a loss of $0.23 per share. Earnings were reduced by restructuring charges of $0.47, foreign currency revaluation losses of $0.03, income tax adjustments of $0.05, and a loss from discontinued operations of $0.01 (see Table 11).
  • Net debt declined $15.8 million during the quarter to $78.2 million (see Table 15).

    ROCHESTER, N.H.--(BUSINESS WIRE)-- Albany International Corp. (NYSE:AIN) reported Q2 2014 income attributable to the Company of $11.2 million. Earnings were reduced by restructuring charges of $2.0 million and income tax adjustments of $0.8 million, and were increased by an insurance-recovery gain of $1.0 million and foreign currency revaluation gains of $1.0 million. In addition, income was reduced by $1.6 million to correct previously reported inventory values (see discussion below).

    Q2 2013 income attributable to the Company was a loss of $7.4 million. Earnings were reduced by restructuring charges of $24.3 million, foreign currency revaluation losses of $1.4 million, income tax adjustments of $1.4 million, and a loss from discontinued operations of $0.4 million.

    Table 1 summarizes net sales and the effect of changes in currency translation rates:

    Table 1

            Impact of   Percent
    Net Sales Changes Change
    Three Months ended in Currency excluding
    June 30, Percent Translation Currency Rate
    (in thousands)  

    2014

     

    2013

      Change   Rates   Effect
    Machine Clothing (MC)   $172,809   $177,536   -2.7%   $1,572   -3.5%
    Albany Engineered Composites (AEC)   20,709   20,438   1.3%   -   1.3%
    Total   $193,518   $197,974   -2.3%   $1,572   -3.0%
     


    The year-over-year decline in second-quarter MC sales was attributable to North America, where sales were particularly strong in Q2 2013. Compared to Q1 and the second half of 2013, North American sales improved. Sales in the rest of the world remained stable and were at levels comparable to Q2 2013. AEC sales rebounded from the transitional effects of the change in LEAP invoicing terms discussed in Q1.

    During the second quarter, the Company determined that the value of MC inventories reported in prior periods was overstated. The overstatement originated when the Company transitioned to a new ERP system in the Americas in 2008 and Europe in 2011. Included in cost of goods sold for the second quarter is a charge of $1.6 million to correct the overstatement by reducing the carrying value of inventory associated with intercompany transfers.

    Q2 2014 gross profit was $75.3 million, or 38.9 percent of net sales, compared to $77.4 million, or 39.1 percent of net sales, in the same period of 2013. MC gross profit margin declined from 43.8 percent in 2013 to 42.4 percent in 2014 principally due to the $1.6 million charge for the inventory valuation correction. AEC’s gross profit margin improved from 3.3 percent in Q2 2013 to 11.4 percent in Q2 2014 due to improvements in profitability of programs at the Company’s Boerne, Texas, facility.

    Selling, technical, general, and research (STG&R) expenses were $54.4 million, or 28.1 percent of net sales, in the second quarter of 2014, including losses of $0.4 million related to the revaluation of nonfunctional-currency assets and liabilities. In Q2 2013, STG&R expenses were $56.6 million, or 28.6 percent of net sales, including income of $0.5 million related to the revaluation of nonfunctional-currency assets and liabilities. Q2 2013 STG&R expenses also included $1.0 million of corporate charges for increased legal expenses and accrual adjustments for the Company’s self-insured medical program.

    The following table presents expenses associated with internally funded research and development by segment:

    Table 2

      Research and development
    expenses by segment
    Three Months ended
    June 30,
    (in thousands)  

    2014

     

    2013

    Machine Clothing   $5,185   $4,815
    Albany Engineered Composites   2,267   2,507
    Corporate expenses   199   351
    Total   $7,651   $7,673
     


    The following table summarizes second-quarter operating income by segment:

    Table 3

      Operating Income/(loss)
    Three Months ended
    June 30,
    (in thousands)  

    2014

     

    2013

    Machine Clothing   $33,879     $14,821  
    Albany Engineered Composites   (3,545 )   (4,678 )
    Corporate expenses   (11,357 )   (13,656 )
    Total   $18,977     ($3,513 )
     


    Segment operating income was affected by restructuring and currency revaluation as shown in Table 4 below. Restructuring expense was principally related to the ongoing costs associated with the restructuring in France.

    Table 4

      Expenses/(gain) in Q2 2014     Expenses/(gain) in Q2 2013
    resulting from resulting from
       
    (in thousands)  

    Restructuring

     

    Revaluation

       

    Restructuring

     

    Revaluation

     
    Machine Clothing   $1,297   $350     $24,230   ($452 )
    Albany Engineered Composites   660   61     91   -  
    Corporate expenses   -   2     -   2  
    Total   $1,957   $413     $24,321   ($450 )
     



    Q2 2014 Other income/expense, net, was income of $2.1 million, including gains related to the revaluation of nonfunctional-currency balances of $1.4 million, and an insurance-recovery gain of $1.0 million related to a claim for weather damage to the Company’s MC manufacturing facility in Germany. Q2 2013 Other income/expense, net, was expense of $2.2 million including losses related to the revaluation of nonfunctional-currency balances of $1.9 million.

    The following table summarizes currency revaluation effects on certain financial metrics:

    Table 5

      Income/(loss) attributable
    to currency revaluation
    Three Months ended
    June 30,
    (in thousands)  

    2014

     

    2013

    Operating income   ($413 )   $450  
    Other income/(expense), net   1,397     (1,894 )
    Total   $984     ($1,444 )
     


    The Company’s income tax rate, excluding tax adjustments, was 36.5 percent for Q2 2014, compared to 39.0 percent for the same period of 2013. Discrete tax charges and changes in the estimated income tax rate increased income tax expense by $0.8 million in 2014 and $1.4 million in 2013.

    The following tables summarize Adjusted EBITDA:

    Table 6

    Three Months ended June 30, 2014     Albany   Corporate  
    Machine Engineered expenses Total
    (in thousands)   Clothing   Composites   and other   Company
    Net income   $33,879   ($3,545 )   ($19,157 )   $11,177  
    Interest expense, net   -   -     2,717     2,717  
    Income tax expense   -   -     7,216     7,216  
    Depreciation and amortization   11,554   2,453     2,090     16,097  
    EBITDA   45,433   (1,092)   (7,134)   37,207  
    Restructuring and other, net   1,297   660     -     1,957  
    Foreign currency revaluation losses/(gains)   350   61     (1,395 )   (984 )
    Gain on insurance recovery   -   -     (961 )   (961 )
    Pretax loss attributable to noncontrolling interest in ASC   -   45     -     45  
    Adjusted EBITDA   $47,080   ($326)   ($9,490)   $37,264  
     



    Table 7

    Three months ended June 30, 2013     Albany   Corporate  
    Machine Engineered expenses Total
    (in thousands)   Clothing   Composites   and other   Company
    Net income/(loss)   $14,821     ($4,678 )   ($17,522 )   ($7,379 )
    Loss from discontinued operations   -     -     351     351  
    Interest expense, net   -     -     3,547     3,547  
    Income tax expense   -     -     (2,243 )   (2,243 )
    Depreciation and amortization   11,809     2,064     2,208     16,081  
    EBITDA   26,630     (2,614)   (13,659)   10,357  
    Restructuring and other, net   24,230     91     -     24,321  
    Foreign currency revaluation (gains)/losses   (452 )   -     1,896     1,444  
    Adjusted EBITDA   $50,408     ($2,523)   ($11,763)   $36,122  
     


    Capital spending for equipment and software was $12.8 million for Q2 2014, bringing the year-to-date total to $27.7 million. Depreciation and amortization was $16.1 million for Q2 2014 and $32.0 million for the first six months of 2014.

    In July, Safran reported that its Snecma subsidiary had been selected by GE to produce parts for the GE9X engine, including the 3-D woven forward fan case. Albany Safran Composites, LLC (“ASC”), as the exclusive supplier to Safran companies of 3-D woven composite aircraft engine parts, has commenced development efforts on the 9X case with Snecma, and is in the process of finalizing the commercial and other terms under which ASC will supply these parts.

    CFO Comments

    CFO and Treasurer John Cozzolino commented, “As expected, net debt improved during the second quarter. Net debt decreased about $16 million compared to the end of Q1 2014, and was $78 million at the end of Q2 2014 (see Table 15). The Company’s leverage ratio this quarter, as defined in our primary debt agreements, was 1.56. The improvement in net debt, as compared to the increase we saw in the first quarter, was due to a continuation of strong operating income combined with improved working capital performance and lower cash outflows for capital expenditures and taxes. With capital expenditures of approximately $28 million in the first half of the year, we now expect full-year spending to total $60 to $70 million. Cash paid for income taxes was about $2 million during the quarter and $9 million through the end of June. We continue to expect cash taxes of approximately $16 million for the full year.”

    CEO Comments

    President and Chief Executive Officer Joe Morone said, “Q2 2014 was a strong quarter for Albany International, with both businesses performing well and as expected. Despite the negative effect of the $1.6 million inventory adjustment, Adjusted EBITDA improved to $37.3 million for the quarter, compared to $36.1 million in Q2 2013. And for the first half of the year, Adjusted EBITDA was $75.0 million compared to $69.9 million in 2013.

    “In MC, while sales were down 3 percent compared to a very strong Q2 last year; on a sequential basis sales in each major geographic segment were either stable or improved. Performance with strategic customers and in key product segments was again exceptional, and excluding that adjustment to inventory, gross margins were well within the normal range.

    “AEC also performed well on all fronts – the ramp-up of the LEAP program, turnaround in our Boerne, Texas, operation, and continued progress in research and technology.

    “Two noteworthy developments for AEC occurred just after the close of the quarter. AEC, through Albany Safran Composites, is developing the composite fan case for the GE9X, the engine that will power Boeing’s 777x aircraft. According to GE, the 9X will be the largest turbofan engine ever developed; AEC’s participation on a component as critical as the fan case thus represents a significant and highly visible market validation of the advantages of its composite technology. We have not yet finalized contract details, but we currently anticipate an annual revenue opportunity from this program of approximately $20-$25 million, once full-rate production levels are attained. Entry into service is currently projected for the end of the decade, with full-rate production early next decade. Because of the scale of the fan case, this will be a capital intensive program, but we do not at this time expect average annual total Company capital expenditures to exceed our previous estimates of $70 million per year for the rest of the decade.

    “The second development took place at the recently concluded Farnborough Airshow. CFM reported that it had won over 850 new orders for the LEAP engine, bringing total orders to over 7,500 engines. CFM also reported that it has increased its estimate for the size of the single-aisle engine market in which the LEAP engine competes from 40,000 to 45,000 engines. CFM also disclosed during the show that it is working on enhancements to LEAP which have the potential to reduce ‘hundreds of pounds’ of engine weight. As we have discussed before AEC is developing with Safran additional composite parts that are candidates for inclusion in future upgrades to the LEAP engine.

    “Turning to the outlook, because of seasonal effects, the second half of the year in MC and thus the overall Company is typically weaker than the first half. But on a year-over-year basis, barring any downside macro-economic developments, we currently expect second-half 2014 MC Adjusted EBITDA to be stronger than second-half 2013. We also expect AEC revenue to be stronger in the second half than it was in both the first half of 2014 and the second half of 2013. And for the overall Company, while second-half Adjusted EBITDA will likely be weaker than first-half, we currently expect it to be stronger than it was for the comparable period last year.

    “In sum this was a good quarter, with both businesses performing well and as expected, significant developments in AEC, and an outlook for continued favorable year-over-year performance in the second half of the year.”

    The Company plans a webcast to discuss second-quarter 2014 financial results on Tuesday, August 5, 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 and insurance-recovery 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 and insurance-recovery 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 in that reporting period and the weighted average number of shares outstanding for each period.

    Table 8

    Six Months ended June 30, 2014     Albany   Corporate  
    Machine Engineered expenses Total
    (in thousands)   Clothing   Composites   and other   Company
    Net income   $70,022   ($7,021 )   ($41,131 )   $21,870  
    Interest expense, net   -   -     5,635     5,635  
    Income tax expense   -   -     14,673     14,673  
    Depreciation and amortization   23,009   4,775     4,221     32,005  
    EBITDA   93,031   (2,246)   (16,602)   74,183  
    Restructuring and other, net   2,159   980     -     3,139  
    Foreign currency revaluation losses/(gains)   502   99     (1,901 )   (1,300 )
    Gain on insurance recovery   -   -     (961 )   (961 )
    Pretax income attributable to noncontrolling interest in ASC   -   (13 )   -     (13 )
    Adjusted EBITDA   $95,692   ($1,180)   ($19,464)   $75,048  
     


    Table 9

    Six months ended June 30, 2013     Albany   Corporate  
    Machine Engineered expenses Total
    (in thousands)   Clothing   Composites   and other   Company
    Net income   $52,377     ($9,081 )   ($39,164 )   $4,132  
    Loss from discontinued operations   -     -     351     351  
    Interest expense, net   -     -     7,572     7,572  
    Income tax expense   -     -     4,005     4,005  
    Depreciation and amortization   23,679     3,795     4,481     31,955  
    EBITDA   76,056     (5,286)   (22,755)   48,015  
    Restructuring and other, net   24,423     534     -     24,957  
    Foreign currency revaluation (gains)/losses   (1,195 )   -     1,907     712  
    Gain on sale of former manufacturing facility   -     -     (3,763 )   (3,763 )
    Adjusted EBITDA   $99,284     ($4,752)   ($24,611)   $69,921  
     


    Table 10

    Three months ended June 30, 2014

      Pre-tax   Tax   After-tax   Per Share
    (in thousands, except per share amounts)   amounts   Effect   Effect   Effect
    Restructuring and other, net   $1,957   $714   $1,243   $0.04
    Foreign currency revaluation gains   984   359   625   0.02
    Gain on insurance recovery   961   -   961   0.03
    Net discrete income tax charge   -   569   569   0.02
    Unfavorable effect of change in income tax rate   -   278   278   0.01
    Adjustment to correct MC inventory value   1,577   576   1,001   0.03
     



    Table 11

    Three months ended June 30, 2013

      Pre-tax   Tax   After-tax   Per Share
    (in thousands, except per share amounts)   amounts   Effect   Effect   Effect
    Restructuring and other, net   $24,321   $9,485   $14,836   $0.47
    Foreign currency revaluation losses   1,444   563   881   0.03
    Net discrete income tax charge   -   485   485   0.02
    Unfavorable effect of change in income tax rate   -   888   888   0.03
     


    Table 12

    Six months ended June 30, 2014

      Pre-tax   Tax   After-tax   Per Share
    (in thousands, except per share amounts)   amounts   Effect   Effect   Effect
    Restructuring and other, net   $3,139   $1,128   $2,011   $0.06
    Foreign currency revaluation gains   1,300   469   831   0.03
    Gain on insurance recovery   961   -   961   0.03
    Net discrete income tax charge   -   1,673   1,673   0.05
    Adjustment to correct MC inventory value   1,577   576   1,001   0.03
     


    Table 13

    Six months ended June 30, 2013

      Pre-tax   Tax   After-tax   Per Share
    (in thousands, except per share amounts)   amounts   Effect   Effect   Effect
    Restructuring and other, net   $24,957   $9,701   $15,256   $0.48
    Foreign currency revaluation losses   712   314   398   0.01
    Gain on sale of former manufacturing facility   3,763   1,279   2,484   0.08
    Net discrete income tax charge   -   695   695   0.03
     


    The following table contains the calculation of net income per share attributable to the Company, excluding adjustments:

    Table 14

      Three Months ended     Six Months ended
    June 30, June 30,
    Per share amounts (Basic)  

    2014

     

    2013

       

    2014

     

    2013

    Net income/(loss) attributable to the Company, reported   $0.35     ($0.23 )     $0.69     $0.13  
    Adjustments:                  
    Loss on discontinued operations   -     0.01       -     0.01  
    Restructuring charges   0.04     0.47       0.06     0.48  
    Discrete tax charges and effect of change in income tax rate   0.03     0.05       0.05     0.03  
    Foreign currency revaluation (gains)/ losses   (0.02 )   0.03       (0.03 )   0.01  
    Gain on insurance recovery   (0.03 )   -       (0.03 )   -  
    Gain on the sale of a former manufacturing facility   -     -       -     (0.08 )
    Net income attributable to the Company, excluding adjustments   $0.37     $0.33       $0.74     $0.58  
       



    The following table contains the calculation of net debt:

    Table 15

     

      June 30,  

     

     March 31, 

      December 31,   December 31,   December 31,
    (in thousands)   2014   2014   2013   2012   2011
    Notes and loans payable   $692   $797   $625   $586   $424
    Current maturities of long-term debt   1,265   2,514   3,764   83,276   1,263
    Long-term debt   283,104   299,108   300,111   235,877   373,125
    Total debt   285,061   302,419   304,500   319,739   374,812
    Cash   206,836   208,379   222,666   190,718   118,909
    Net debt  

    $78,225

     

    $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 differmaterially 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 Six Months Ended
    June 30, June 30,
     
    2014 2013 2014 2013
     
    $193,518$197,974 Net sales $373,825$384,628
    118,175   120,541   Cost of goods sold 223,673   234,426  
     
    75,343 77,433 Gross profit 150,152 150,202
    40,012 41,994 Selling, general, and administrative expenses 79,169 78,547
    14,397 14,631 Technical, product engineering, and research expenses 28,266 27,693
    1,957   24,321   Restructuring and other, net 3,139   24,957  
     
    18,977 (3,513 ) Operating income 39,578 19,005
    2,717 3,547 Interest expense, net 5,635 7,572
    (2,133 ) 2,211   Other (income)/expenses, net (2,600 ) 2,945  
     
    18,393 (9,271 ) Income before income taxes 36,543 8,488
    7,216   (2,243 ) Income tax expense 14,673   4,005  
     
    11,177   (7,028 ) Income from continuing operations 21,870   4,483  
     
    - (575 ) (Loss)/income from operations of discontinued business - (575 )
    -   (224 ) Income tax (benefit)/expense on discontinued operations -   (224 )
    -   (351 ) (Loss)/income from discontinued operations -   (351 )
    11,177 (7,379 ) Net income/(loss) 21,870 4,132
    (42 ) -   Net income attributable to the noncontrolling interest 30   -  
    $11,219   ($7,379 ) Net income/(loss) attributable to the Company $21,840   $4,132  
     
    Earnings per share attributable to Company shareholders - Basic
    $0.35 ($0.22 ) Income/(loss) from continuing operations $0.69$0.14
    0.00   (0.01 ) Discontinued operations 0.00   (0.01 )
    $0.35   ($0.23 ) Net income/(loss) attributable to the Company $0.69   $0.13  
     
    Earnings per share attributable to Company shareholders - Diluted
    $0.35 ($0.22 ) Income/(loss) from continuing operations $0.68$0.14
    0.00   (0.01 ) Discontinued operations 0.00   (0.01 )
    $0.35   ($0.23 ) Net income/(loss) attributable to the Company $0.68   $0.13  
     
    Shares of the Company used in computing earnings per share:
    31,832 31,628 Basic 31,809 31,562
    31,935 31,628 Diluted 31,913 31,687
     
    $0.16$0.15 Dividends per share $0.31$0.29
     


    ALBANY INTERNATIONAL CORP.
    CONSOLIDATED BALANCE SHEETS
    (in thousands, except share data)
    (unaudited)
         

      June 30,  

    December 31,
    2014 2013
    ASSETS
    Cash and cash equivalents $206,836$222,666
    Accounts receivable, net 148,473 163,547
    Inventories 123,889 112,739
    Deferred income taxes 13,900 13,873
    Prepaid expenses and other current assets 10,120   9,659  
    Total current assets 503,218 522,484
     
    Property, plant and equipment, net 414,758 418,830
    Intangibles 501 616
    Goodwill 78,635 78,890
    Income taxes receivable and deferred 111,942 119,612
    Other assets 29,709   26,456  
    Total assets $1,138,763   $1,166,888  
     
    LIABILITIES AND SHAREHOLDERS' EQUITY
    Notes and loans payable $692$625
    Accounts payable 35,698 36,397
    Accrued liabilities 100,006 112,331
    Current maturities of long-term debt 1,265 3,764
    Income taxes payable and deferred 4,378   5,391  
    Total current liabilities 142,039 158,508
     
    Long-term debt 283,104 300,111
    Other noncurrent liabilities 100,940 106,014
    Deferred taxes and other credits 53,302   54,476  
    Total liabilities 579,385   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
    37,064,939 in 2014 and 36,997,277 in 2013 37 37
    Class B Common Stock, par value $.001 per share;
    authorized 25,000,000 shares; issued and
    outstanding 3,235,048 in 2014 and 3,235,048 in 2013 3 3
    Additional paid in capital 418,117 416,728
    Retained earnings 446,570 434,598
    Accumulated items of other comprehensive income:
    Translation adjustments (1,976 ) (138 )
    Pension and postretirement liability adjustments (48,205 ) (48,383 )
    Derivative valuation adjustment (1,199 ) (977 )
    Treasury stock (Class A), at cost 8,459,498 shares
    in 2014 and 8,463,635 in 2013 (257,481 ) (257,571 )
    Total Company shareholders' equity 555,866 544,297
    Noncontrolling interest 3,512   3,482  
    Total equity 559,378   547,779  
    Total liabilities and shareholders' equity $1,138,763   $1,166,888  
     


    ALBANY INTERNATIONAL CORP.
    CONSOLIDATED STATEMENTS OF CASH FLOW
    (in thousands)
    (unaudited)
     
    Three Months Ended     Six Months Ended
    June 30,   June 30,
       
    2014 2013 2014 2013
    OPERATING ACTIVITIES
    $11,177 ($7,379 ) Net income $21,870$4,132
    Adjustments to reconcile net income to net cash provided by /(used in) operating activities:
    14,276 14,427 Depreciation 28,383 28,638
    1,821 1,654 Amortization 3,622 3,317
    2,946 (7,864 ) Change in long-term liabilities, deferred taxes and other credits 2,732 (3,991 )
    728 21 Provision for write-off of property, plant and equipment 729 65
    (961 ) - (Gain) on disposition or involuntary conversion of assets (961 ) (3,763 )
    (106 ) (172 ) Excess tax benefit of options exercised (145 ) (524 )
    405 (476 ) Compensation and benefits paid or payable in Class A Common Stock 947 (1,174 )
     
    Changes in operating assets and liabilities, net of business divestitures:
    3,333 (4,515 ) Accounts receivable 14,297 (6,238 )
    (1,963 ) 2,458 Inventories (10,959 ) (530 )
    1,762 1,544 Prepaid expenses and other current assets (386 ) (2,033 )
    (7 ) 28 Income taxes prepaid and receivable 14 180
    555 (1,139 ) Accounts payable (739 ) (592 )
    170 29,912 Accrued liabilities (12,679 ) 20,929
    651 441 Income taxes payable (1,059 ) (4,877 )
    (2,098 ) (793 ) Other, net (4,129 ) (1,231 )
    32,689   28,147   Net cash provided by operating activities 41,537   32,308  
     
    INVESTING ACTIVITIES
    (12,799 ) (14,620 ) Purchases of property, plant and equipment (27,402 ) (27,808 )
    (21 ) (555 ) Purchased software (315 ) (648 )
    961   -   Proceeds from sale or involuntary conversion of assets 961   6,268  
    (11,859 ) (15,175 ) Net cash (used in)/provided by investing activities (26,756 ) (22,188 )
     
    FINANCING ACTIVITIES
    235 5,037 Proceeds from borrowings 4,670 51,905
    (17,593 ) (18,476 ) Principal payments on debt (24,109 ) (50,659 )
    261 1,004 Proceeds from options exercised 387 2,968
    106 172 Excess tax benefit of options exercised 145 524
    - (76 ) Debt acquisition costs - (1,639 )
    (4,774 ) (4,423 ) Dividends paid (9,539 ) (4,423 )
    (21,765 ) (16,762 ) Net cash (used in)/provided by financing activities (28,446 ) (1,324 )
     
    (608 ) 1,278   Effect of exchange rate changes on cash and cash equivalents (2,165 ) (2,193 )
     
    (1,543 ) (2,512 ) (Decrease)/increase in cash and cash equivalents (15,830 ) 6,603
    208,379   199,833   Cash and cash equivalents at beginning of period 222,666   190,718  
    $206,836   $197,321   Cash and cash equivalents at end of period $206,836   $197,321  
     





    Albany International Corp.

    Investors

    John Cozzolino, 518-445-2281

    john.cozzolino@albint.com

    or

    Media

    Susan Siegel, 603-330-5866

    susan.siegel@albint.com

    Source: Albany International Corp.


  • For more stories on investments and markets, please see HispanicBusiness' Finance Channel



    Source: Business Wire


    Story Tools






    HispanicBusiness.com Facebook Linkedin Twitter RSS Feed Email Alerts & Newsletters