Albany International Corp. (NYSE:AIN) today reported operating
results for its third quarter of 2024, which ended September 30,
2024.
"I am pleased with the overall results of the quarter as we
focused on operational excellence evidenced by strong results at
Machine Clothing and Free Cash Flow generation of $78 million
year-to-date. We are addressing the issues announced earlier this
month, with specific emphasis on our Salt Lake Facility. Revenues
of $298 million was up $17 million or 6.1% over prior year," said
President and CEO, Gunnar Kleveland.
"In Machine Clothing, revenues of $183 million grew
year-over-year, driven by our Heimbach acquisition. Our global
order backlog remains stable and we continue to make progress with
the integration at Heimbach.
"In Engineered Composites, we recorded revenues of $115 million,
while our profitability was impacted by our previously announced
EAC adjustments. Our backlog is well over $1 billion and longer
term we continue to see growth in our defense and commercial
programs," concluded Kleveland.
For the third quarter ended September 30,
2024:
- Net revenues were $298 million, up 6.1%, or 5.8% after
adjusting for currency translation, when compared to the prior
year. MC's net revenues increased 9.9%, reflecting a full quarter
of Heimbach Net revenues, which was partially offset by lower net
revenues in the rest of the segment due to decreased sales in
packaging and publication grades. AEC's net revenues were largely
in line with the prior year, increasing 0.7%, primarily driven by
growth on certain commercial and space programs, which was
partially offset by lower revenues on CH-53K and other defense
programs.
- Gross profit of $90 million was 11.2% lower than the $102
million reported for the same period of 2023; overall gross margin
declined nearly 6.0% driven by changes in the estimated
profitability of long-term contracts at AEC.
- Selling, General, and Administrative (SG&A) expenses were
$52 million, largely in line with prior year.
- Operating income was $25 million, compared to $40 million in
the prior year, the result of lower Gross profit at AEC and
increased Technical, Research and Restructuring expenses at
MC.
- Effective tax rate for the quarter was 6.6%, compared to 25.3%
for the third quarter of 2023. The 2024 rate was lower primarily
due to favorable discrete tax adjustments in the current period
exceeding favorable discrete tax adjustments in the prior
period.
- Net income attributable to the Company was $18 million ($0.57
per share), compared to $27 million ($0.87 per share) in the third
quarter of 2023; Adjusted diluted earnings per share (or Adjusted
diluted EPS, a non-GAAP measure) was $0.80 per share in the third
quarter of 2024, compared to $1.02 per share in the third quarter
of 2023. Adjusted EBITDA (a non-GAAP measure) was $54 million,
compared to $65 million in the third quarter of 2023, a decrease of
17.2%.
Please see the tables below for a reconciliation of non-GAAP
measures to their comparable GAAP measures.
Outlook for Full-Year 2024:
The company is updating its guidance for the full year of 2024
as follows:
- Total company revenue between $1.23 billion to $1.25
billion;
- Effective income tax rate of approximately 27%;
- Capital expenditures in the range of $85 to $90 million;
- Adjusted diluted earnings per share between $3.10 and
$3.30;
- Total company Adjusted EBITDA between $237 million to $247
million;
- Machine Clothing revenue between $745 million to $755
million;
- Machine Clothing Adjusted EBITDA between $238 million and $243
million;
- Albany Engineered Composites revenue between $485 million to
$495 million; and
- Albany Engineered Composites Adjusted EBITDA between $68
million to $73 million.
ALBANY INTERNATIONAL CORP.
CONSOLIDATED STATEMENTS OF
INCOME
(in thousands, except per share
amounts)
(unaudited)
Three Months Ended
September 30,
Nine Months Ended
September 30,
2024
2023
2024
2023
Net revenues
$
298,386
$
281,106
$
943,710
$
824,325
Cost of goods sold
208,002
179,271
632,257
520,468
Gross profit
90,384
101,835
311,453
303,857
Selling, general, and administrative
expenses
52,097
51,975
162,447
147,214
Technical and research expenses
10,844
9,708
35,369
30,303
Restructuring expenses, net
2,272
82
6,584
227
Operating income
25,171
40,070
107,053
126,113
Interest expense/(income), net
2,411
3,653
8,680
10,049
Other (income)/expense, net
3,257
56
5,932
(4,910
)
Income before income taxes
19,503
36,361
92,441
120,974
Income tax expense
1,282
9,207
22,131
39,908
Net income
18,221
27,154
70,310
81,066
Net income attributable to the
noncontrolling interest
192
45
366
396
Net income attributable to the Company
$
18,029
$
27,109
$
69,944
$
80,670
Earnings per share attributable to Company
shareholders - Basic
$
0.58
$
0.87
$
2.24
$
2.59
Earnings per share attributable to Company
shareholders - Diluted
$
0.57
$
0.87
$
2.23
$
2.58
Shares of the Company used in computing
earnings per share:
Basic
31,251
31,185
31,234
31,163
Diluted
31,367
31,283
31,333
31,256
Dividends declared per Class A share
$
0.26
$
0.25
$
0.78
$
0.75
ALBANY INTERNATIONAL CORP.
CONSOLIDATED BALANCE SHEETS
(in thousands, except share
data)
(unaudited)
September 30, 2024
December 31, 2023
Assets
Cash and cash equivalents
$
127,222
$
173,420
Accounts receivable, net
271,975
287,781
Contract assets, net
195,782
182,281
Inventories
160,617
169,567
Income taxes prepaid and receivable
8,316
11,043
Prepaid expenses and other current
assets
40,399
53,872
Total current assets
$
804,311
$
877,964
Property, plant and equipment, net
583,455
601,989
Intangibles, net
40,996
44,646
Goodwill
180,912
180,181
Deferred income taxes
26,979
22,941
Noncurrent receivables, net
—
4,392
Other assets
116,548
102,901
Total assets
$
1,753,201
$
1,835,014
Liabilities and Shareholders' Equity
Accounts payable
$
77,873
$
87,104
Accrued liabilities
138,700
142,988
Current maturities of long-term debt
555
4,218
Income taxes payable
1,593
14,369
Total current liabilities
218,721
248,679
Long-term debt
361,639
452,667
Other noncurrent liabilities
154,634
139,385
Deferred taxes and other liabilities
21,531
26,963
Total liabilities
756,525
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; 40,916,568 issued in 2024 and
40,856,910 in 2023
41
41
Additional paid in capital
452,656
448,218
Retained earnings
1,056,514
1,010,942
Accumulated items of other comprehensive
income:
Translation adjustments
(137,373
)
(124,901
)
Pension and postretirement liability
adjustments
(17,341
)
(17,346
)
Derivative valuation adjustment
1,165
9,079
Treasury stock (Class A), at cost;
9,661,845 shares in 2024 and 2023
(364,665
)
(364,665
)
Total shareholders' equity
990,997
961,368
Noncontrolling interest
5,679
5,952
Total equity
996,676
967,320
Total liabilities and shareholders'
equity
$
1,753,201
$
1,835,014
ALBANY INTERNATIONAL CORP.
CONSOLIDATED STATEMENTS OF CASH
FLOWS
(in thousands)
(unaudited)
Nine Months Ended September
30,
2024
2023
Cash flows from operating activities:
Net income
$
70,310
$
81,066
Adjustments to reconcile net income to net
cash provided by operating activities:
Depreciation
61,813
50,164
Amortization
5,190
4,614
Change in deferred taxes and other
liabilities
(7,552
)
(1,264
)
Impairment of property, plant and
equipment
1,425
577
Non-cash interest expense
769
1,148
Compensation and benefits paid or payable
in Class A Common Stock
4,438
5,189
Provision/(recovery) for credit losses
from uncollected receivables and contract assets
40
641
Foreign currency remeasurement loss/(gain)
on intercompany loans
2,263
(4,704
)
Fair value adjustment on foreign currency
contracts
1,105
581
Gain on sale of assets
(515
)
—
Changes in operating assets and
liabilities that provided/(used) cash, net of impact of business
acquisition:
Accounts receivable
17,980
(18,172
)
Contract assets
(15,194
)
(16,550
)
Inventories
5,918
(293
)
Prepaid expenses and other current
assets
2,768
(3,030
)
Income taxes prepaid and receivable
2,602
1,597
Accounts payable
7,316
(6,661
)
Accrued liabilities
(8,320
)
(16,454
)
Income taxes payable
(11,995
)
(5,810
)
Noncurrent receivables
(579
)
2,276
Other noncurrent liabilities
(17
)
(3,602
)
Other, net
220
2,499
Net cash provided by operating
activities
139,985
73,812
Cash flows from investing activities:
Purchase of business, net of cash
acquired
—
(133,470
)
Purchases of property, plant and
equipment
(61,985
)
(48,850
)
Purchased software
(101
)
(276
)
Proceeds received from sale of assets
1,033
—
Net cash used in investing activities
(61,053
)
(182,596
)
Cash flows from financing activities:
Proceeds from borrowings
48,106
71,249
Principal payments on debt
(142,691
)
(51,479
)
Debt acquisition costs
—
(4,108
)
Taxes paid in lieu of share issuance
(2,832
)
(3,136
)
Dividends paid
(24,356
)
(23,365
)
Net cash (used in)/provided by financing
activities
(121,773
)
(10,839
)
Effect of exchange rate changes on cash
and cash equivalents
(3,357
)
(647
)
(Decrease)/increase in cash and cash
equivalents
(46,198
)
(120,270
)
Cash and cash equivalents at beginning of
period
173,420
291,776
Cash and cash equivalents at end of
period
$
127,222
$
171,506
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, Q3
2024
(Decrease)/ increase due to
changes in currency translation rates
Q3 2024 revenues on same basis
as Q3 2023 currency translation rates
Net revenues as reported, Q3
2023
% Change compared to Q3 2023,
excluding currency rate effects
Machine Clothing
$
183,033
$
727
$
182,306
$
166,588
9.4
%
Albany Engineered Composites
115,353
159
115,194
114,518
0.6
%
Consolidated total
$
298,386
$
886
$
297,500
$
281,106
5.8
%
(in thousands, except
percentages)
Net revenues as reported, YTD
2024
(Decrease)/ increase due to
changes in currency translation rates
YTD 2024 revenues on same
basis as 2023 currency translation rates
Net revenues as reported, YTD
2023
% Change compared to 2023,
excluding currency rate effects
Machine Clothing
$
561,828
$
(999
)
$
562,827
$
479,027
17.5
%
Albany Engineered Composites
381,882
161
381,721
345,298
10.5
%
Consolidated total
$
943,710
$
(838
)
$
944,548
$
824,325
14.6
%
The following table presents Gross profit
and Gross profit margin:
(in thousands, except
percentages)
Gross profit,
Q3 2024
Gross profit margin, Q3
2024
Gross profit,
Q3 2023
Gross profit margin, Q3
2023
Machine Clothing
$
88,921
48.6
%
$
79,257
47.6
%
Albany Engineered Composites
1,463
1.3
%
22,578
19.7
%
Consolidated total
$
90,384
30.3
%
$
101,835
36.2
%
(in thousands, except
percentages)
Gross profit,
YTD 2024
Gross profit margin, YTD
2024
Gross profit,
YTD 2023
Gross profit margin, YTD
2023
Machine Clothing
$
262,449
46.7
%
$
238,031
49.7
%
Albany Engineered Composites
49,004
12.8
%
65,826
19.1
%
Consolidated total
$
311,453
33.0
%
$
303,857
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 September 30,
2024
(in thousands)
Machine Clothing
Albany Engineered
Composites
Corporate expenses
and other
Total Company
Net income/(loss) (GAAP)
$
51,481
$
(10,293
)
$
(22,967
)
$
18,221
Interest expense/(income), net
—
—
2,411
2,411
Income tax expense
—
—
1,282
1,282
Depreciation and amortization expense
8,094
13,154
1,062
22,310
EBITDA (non-GAAP)
59,575
2,861
(18,212
)
44,224
Restructuring costs
2,976
34
31
3,041
Foreign currency revaluation
(gains)/losses (a)
1,435
(348
)
1,793
2,880
Other transition expenses
—
993
(509
)
484
Strategic/integration costs
410
—
2,559
2,969
Pre-tax (income) attributable to
noncontrolling interest
(41
)
(8
)
—
(49
)
Adjusted EBITDA (non-GAAP)
$
64,355
$
3,532
$
(14,338
)
$
53,549
Adjusted EBITDA margin (Adjusted EBITDA
divided by Net revenues) (non-GAAP)
35.2
%
3.1
%
—
17.9
%
Three months ended September 30,
2023
(in thousands)
Machine Clothing
Albany Engineered
Composites
Corporate expenses
and other
Total Company
Net income/(loss) (GAAP)
$
50,710
$
9,374
$
(32,930
)
$
27,154
Interest expense/(income), net
—
—
3,653
3,653
Income tax expense
—
—
9,207
9,207
Depreciation and amortization expense
5,976
12,510
975
19,461
EBITDA (non-GAAP)
56,686
21,884
(19,095
)
59,475
Restructuring costs
82
—
—
82
Foreign currency revaluation
(gains)/losses (a)
(656
)
19
516
(121
)
CEO transition expenses
—
—
2,052
2,052
Inventory step-up impacting Cost of goods
sold
1,370
—
—
1,370
Strategic/integration costs
—
273
1,642
1,915
Pre-tax (income) attributable to
noncontrolling interest
—
(73
)
—
(73
)
Adjusted EBITDA (non-GAAP)
$
57,482
$
22,103
$
(14,885
)
$
64,700
Adjusted EBITDA margin (Adjusted EBITDA
divided by Net revenues) (non-GAAP)
34.5
%
19.3
%
—
23.0
%
Nine months ended September 30,
2024
(in thousands)
Machine Clothing
Albany Engineered
Composites
Corporate expenses
and other
Total Company
Net income/(loss) (GAAP)
$
153,276
$
8,329
$
(91,295
)
$
70,310
Interest expense/(income), net
—
—
8,680
8,680
Income tax expense
—
—
22,131
22,131
Depreciation and amortization expense
24,276
39,374
3,353
67,003
EBITDA (non-GAAP)
177,552
47,703
(57,131
)
168,124
Restructuring costs
4,581
3,144
146
7,871
Foreign currency revaluation
(gains)/losses (a)
(1,247
)
(110
)
636
(721
)
Other transition expenses
—
993
984
1,977
Strategic/integration costs
1,468
182
3,409
5,059
Pre-tax (income) attributable to
noncontrolling interest
(110
)
(193
)
—
(303
)
Adjusted EBITDA (non-GAAP)
$
182,244
$
51,719
$
(51,956
)
$
182,007
Adjusted EBITDA margin (Adjusted EBITDA
divided by Net revenues-non-GAAP)
32.4
%
13.5
%
—
19.3
%
Nine months ended September 30,
2023
(in thousands)
Machine Clothing
Albany Engineered
Composites
Corporate expenses
and other
Total Company
Net income/(loss) (GAAP)
$
153,400
$
27,460
$
(99,794
)
$
81,066
Interest expense/(income), net
—
—
10,049
10,049
Income tax expense
—
—
39,908
39,908
Depreciation and amortization expense
15,682
36,246
2,850
54,778
EBITDA (non-GAAP)
169,082
63,706
(46,987
)
185,801
Restructuring costs
227
—
—
227
Foreign currency revaluation
(gains)/losses (a)
1,870
19
(3,609
)
(1,720
)
CEO transition expenses
—
—
2,052
2,052
Inventory step-up impacting Cost of goods
sold
1,370
—
—
1,370
Strategic/integration costs
—
813
2,005
2,818
Pre-tax (income) attributable to
noncontrolling interest
—
(474
)
—
(474
)
Adjusted EBITDA (non-GAAP)
$
172,549
$
64,064
$
(46,539
)
$
190,074
Adjusted EBITDA margin (Adjusted EBITDA
divided by Net revenues-non-GAAP)
36.0
%
18.6
%
—
23.1
%
Per share impact of the adjustments to
earnings per share are as follows:
Three months ended September 30,
2024
(in thousands, except per share
amounts)
Pre tax
Amounts
Tax
Effect
After tax
Effect
Per share
Effect
Restructuring costs
$
3,041
$
345
$
2,696
$
0.09
Foreign currency revaluation
(gains)/losses (a)
2,880
1,000
1,880
0.06
Other transition expenses
484
121
363
0.01
Strategic/integration costs
2,969
799
2,170
0.07
Three months ended September 30,
2023
(in thousands, except per share
amounts)
Pre tax
Amounts
Tax
Effect
After tax
Effect
Per share
Effect
Restructuring costs
$
82
$
21
$
61
$
0.00
Foreign currency revaluation
(gains)/losses (a)
(121
)
(35
)
(86
)
0.00
CEO transition expenses
2,052
—
2,052
0.07
Inventory step-up impacting Cost of goods
sold
1,370
411
959
0.03
Strategic/integration costs
1,915
476
1,439
0.05
Nine months ended September 30,
2024
(in thousands, except per share
amounts)
Pre tax
Amounts
Tax
Effect
After tax
Effect
Per share
Effect
Restructuring costs
$
7,871
$
1,511
$
6,360
$
0.20
Foreign currency revaluation
(gains)/losses (a)
(721
)
(262
)
(459
)
(0.01
)
Other transition expenses
1,977
443
1,534
0.05
Strategic/integration costs
5,059
1,373
3,686
0.12
Nine months ended September 30,
2023
(in thousands, except per share
amounts)
Pre tax
Amounts
Tax
Effect
After tax
Effect
Per share
Effect
Restructuring costs
$
227
$
68
$
159
$
0.01
Foreign currency revaluation
(gains)/losses (a)
(1,720
)
(504
)
(1,216
)
(0.04
)
CEO transition expenses
2,052
—
2,052
0.07
Withholding tax related to internal
restructuring
—
(3,026
)
3,026
0.10
Inventory step-up impacting Cost of goods
sold
1,370
411
959
0.03
Strategic/integration costs
2,818
725
2,093
0.07
The following table provides a
reconciliation of Diluted Earnings per share to Adjusted Diluted
Earnings per share:
Three months ended September
30,
Nine months ended September
30,
Per share amounts (Diluted)
2024
2023
2024
2023
Earnings per share attributable to Company
shareholders - Basic (GAAP)
$
0.58
$
0.87
$
2.24
$
2.59
Effect of dilutive stock-based
compensation plans
(0.01
)
—
(0.01
)
(0.01
)
Earnings per share attributable to Company
shareholders - Diluted (GAAP)
$
0.57
$
0.87
$
2.23
$
2.58
Adjustments, after tax:
Restructuring costs
0.09
—
0.20
0.01
Foreign currency revaluation
(gains)/losses (a)
0.06
—
(0.01
)
(0.04
)
CEO and other transition expenses
0.01
0.07
0.05
0.07
Withholding tax related to internal
restructuring
—
—
—
0.10
Inventory step-up impacting Cost of goods
sold
—
0.03
—
0.03
Strategic/integration costs
0.07
0.05
0.12
0.07
Adjusted Diluted Earnings per share
(non-GAAP)
$
0.80
$
1.02
$
2.59
$
2.82
The calculations of net debt are as
follows:
(in thousands)
September 30, 2024
December 31, 2023
September 30, 2023
Current maturities of long-term debt
$
555
$
4,218
$
27,246
Long-term debt
361,639
452,667
463,339
Total debt
362,194
456,885
490,585
Cash and cash equivalents
127,222
173,420
171,506
Net debt (non-GAAP)
$
234,972
$
283,465
$
319,079
The calculation of net leverage ratio as
of September 30, 2024 is as follows:
Total Company
Twelve months
ended
Nine months ended
Trailing twelve
months ended
(in thousands)
December 31,
2023
September 30,
2023
September 30,
2024
September 30, 2024
(non-GAAP) (b)
Net income/(loss) (GAAP)
$
111,610
$
81,066
$
70,310
$
100,854
Interest expense/(income), net
13,601
10,049
8,680
12,232
Income tax expense
48,846
39,908
22,131
31,069
Depreciation and amortization expense
76,733
54,778
67,003
88,958
EBITDA (non-GAAP)
250,790
185,801
168,124
233,113
Restructuring costs
282
227
7,871
7,926
Foreign currency revaluation
(gains)/losses (a)
1,296
(1,720
)
(721
)
2,295
CEO and other transition expenses
2,719
2,052
1,977
2,644
Inventory step-up impacting Cost of goods
sold
5,480
1,370
—
4,110
Strategic/integration costs
5,194
2,818
5,059
7,435
Pre-tax (income) attributable to
noncontrolling interest
(665
)
(474
)
(303
)
(494
)
Adjusted EBITDA (non-GAAP)
$
265,096
$
190,074
$
182,007
$
257,029
(in thousands, except for net leverage
ratio)
September 30, 2024
Net debt (non-GAAP)
$
234,972
Trailing twelve months Adjusted EBITDA
(non-GAAP)
257,029
Net leverage ratio (non-GAAP)
0.91
(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 nine months ended September 30, 2023, plus those
incurred during the nine months September 30, 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
Engineered Composites
(in millions)
Low
High
Low
High
Net income attributable to the Company
(GAAP) (c)
$
198
$
203
$
11
$
17
Income attributable to the noncontrolling
interest
—
—
(1
)
(1
)
Interest expense/(income), net
—
—
—
—
Income tax expense
—
—
—
—
Depreciation and amortization
32
32
53
52
EBITDA (non-GAAP)
230
235
63
68
Restructuring costs
7
7
3
3
Foreign currency revaluation
(gains)/losses (d)
(1
)
(1
)
—
—
Strategic/integration costs
2
2
—
—
Other transition expenses
—
—
1
1
Pre-tax (income)/loss attributable to
non-controlling interest
—
—
1
1
Adjusted EBITDA (non-GAAP)
$
238
$
243
$
68
$
73
(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)
$
84
$
90
Income attributable to the noncontrolling
interest
(1
)
(1
)
Interest expense/(income), net
15
15
Income tax expense
31
34
Depreciation and amortization
91
92
EBITDA (non-GAAP)
220
230
Restructuring costs
10
10
Foreign currency revaluation
(gains)/losses (d)
(1
)
(1
)
Strategic/integration costs
5
5
Other transition expenses
2
2
Pre-tax (income)/loss attributable to
non-controlling interest
1
1
Adjusted EBITDA (non-GAAP)
$
237
$
247
Total Company
Forecast of Full Year 2024 Earnings per
share (diluted) (e)
Low
High
Net income attributable to the Company
(GAAP)
$
2.69
$
2.89
Restructuring costs
0.26
0.26
Foreign currency revaluation
(gains)/losses (d)
(0.01
)
(0.01
)
Other transition expenses
0.03
0.03
Strategic/integration costs
0.13
0.13
Adjusted Diluted Earnings per share
(non-GAAP)
$
3.10
$
3.30
(d) Due to the uncertainty of these items,
we are unable to forecast the full year impact for 2024. Amounts
above represent actual results for the nine months ended September
30, 2024.
(e) Calculations based on weighted average
shares outstanding estimate of approximately 31.3 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 facilities in 14 countries,
employs approximately 6,000 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,
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. Excluded costs or benefits, such as restructuring
costs, foreign currency revaluation gains and losses, and costs
related to strategic, acquisition, integration and other
transition-related initiatives that the Company may take, 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.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20241030119209/en/
Investor / Media Contact: JC Chetnani VP-Investor
Relations and Treasurer jc.chetnani@albint.com
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