ROCHESTER, N.H.–(BUSINESS WIRE)–Albany International Corp. (NYSE:AIN) today reported operating results for its fourth quarter of 2020, which ended December 31, 2020.

Albany International finished 2020 with another strong quarter, particularly in light of the challenging business conditions in some of our end markets,” said Albany International President and Chief Executive Officer, Bill Higgins. “Our operations performed exceptionally well for customers and shareholders. Both segments delivered impressive profit margins despite top-line headwinds caused by the pandemic and the Boeing 737 MAX grounding.

The Machine Clothing segment managed its business remarkably well during 2020. For the full year, the Machine Clothing segment reached the same level of Adjusted EBITDA as 2019 despite a 5% reduction in segment revenues. We expect another strong year in 2021. We are encouraged by growth in our order book and strengthening end-markets that we serve in this segment.

In 2020, the Engineered Composites segment expanded its Adjusted EBITDA margin by 360 basis points despite a revenue decline of 28%. Once we get through the inventory destocking challenges we expect to face in 2021, the segment is well-positioned to grow based on the strength of our program portfolio,” concluded Higgins.

For the fourth quarter ended December 31, 2020:

  • Net sales were $226.9 million, down $30.8 million, or 12%, when compared to the prior year. Sales declined $24.4 million, or 23%, in the Engineered Composites segment driven primarily by lower demand for LEAP components.
  • Gross profit of $91.3 million was 6% lower than the $96.6 million reported for the same period of 2019.
  • Selling, Technical, General, and Research (STG&R) expenses were $54.8 million, compared to $51.3 million in the same period of 2019. Revaluation of foreign currency balances increased STG&R by $3.0 million in 2020, compared to an increase of $1.4 million in the same period of 2019.
  • Operating income was $35.0 million, compared to $43.6 million in the prior year, a decrease of 20%, principally due to lower gross profit and higher STG&R expenses.
  • The effective tax rate was 13.5%, compared to 24.8% for the fourth quarter of 2019. Income tax adjustments decreased fourth-quarter income tax expense by $4.8 million in 2020 and by $1.3 million in 2019.
  • Net income attributable to the Company was $27.5 million ($0.85 per share), compared to $29.1 million ($0.90 per share) in Q4 2019. Adjusted earnings per share (or Adjusted EPS, a non-GAAP measure) was $0.89 per share in the fourth quarter of 2020, compared to $0.97 in the same period of last year.
  • Adjusted EBITDA (a non-GAAP measure) was $57.3 million, compared to $63.9 million in Q4 2019, a decrease of 10.4%.

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

We were very pleased with the Company’s performance this quarter and the overall year. Enabled by very strong free cash flow during the quarter, we continued the trend of significantly reducing net debt and, once again, ended the year with a very healthy balance sheet. Earnings per share benefited from a low tax rate this quarter due to significant non-recurring adjustments. Compared to the full-year tax rate, absent discrete items, of about 28%, the lower rate this quarter increased Adjusted EPS by about $0.12, effectively recovering earnings that would have been recognized in earlier quarters if the full year tax rate had been known,” said Albany International Chief Financial Officer and Treasurer, Stephen Nolan. “We are also providing initial financial guidance for 2021, reflecting expected strong performance from the Machine Clothing segment, with our expectations for Engineered Composites being significantly impacted by a destocking cycle for our finished goods in our customers’ supply chains. We also expect a strong year for free cash flow generation: our expected cash flow in 2021 should exceed the level delivered in 2020.”

Outlook for Full-Year 2021

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

  • Total company revenue of between $850 and $890 million;
  • Effective income tax rate, including tax adjustments, of 28% to 30%;
  • Total company depreciation and amortization of between $70 and $75 million;
  • Capital expenditures in the range of $50 to $60 million;
  • GAAP and Adjusted earnings per share of between $2.40 and $2.80;
  • Total company Adjusted EBITDA of $195 to $220 million;
  • Machine Clothing revenue of $570 to $590 million;
  • Machine Clothing Adjusted EBITDA of between $195 and $205 million;
  • Albany Engineered Composites (AEC) revenue between $275 to $295 million; and
  • Albany Engineered Composites Adjusted EBITDA of $55 to $65 million.

ALBANY INTERNATIONAL CORP.

CONSOLIDATED STATEMENTS OF INCOME

(in thousands, except per share amounts)

(unaudited)

   

 

 

Three Months Ended
December 31,

 

Years Ended

December 31,

 

 

2020

 

2019

 

2020

 

2019

Net sales

 

$

226,857

 

 

$

257,678

 

 

$

900,610

 

 

$

1,054,132

 

Cost of goods sold

 

135,539

 

 

161,037

 

 

529,538

 

 

656,431

 

 

 

 

 

 

 

 

 

 

 

Gross profit

 

91,318

 

 

96,641

 

 

371,072

 

 

397,701

 

Selling, general, and administrative expenses

 

45,742

 

 

42,049

 

 

163,909

 

 

163,651

 

Technical and research expenses

 

9,043

 

 

9,246

 

 

35,347

 

 

37,569

 

Restructuring expenses, net

 

1,547

 

 

1,766

 

 

5,736

 

 

2,905

 

 

 

 

 

 

 

 

 

 

 

Operating income

 

34,986

 

 

43,580

 

 

166,080

 

 

193,576

 

Interest expense, net

 

3,542

 

 

3,886

 

 

13,584

 

 

16,921

 

Other expense/(income), net

 

(493

)

 

349

 

 

13,422

 

 

(1,557

)

 

 

 

 

 

 

 

 

 

 

Income before income taxes

 

31,937

 

 

39,345

 

 

139,074

 

 

178,212

 

Income tax expense

 

4,327

 

 

9,754

 

 

41,831

 

 

44,829

 

 

 

 

 

 

 

 

 

 

 

Net income

 

27,610

 

 

29,591

 

 

97,243

 

 

133,383

 

Net income/(loss) attributable to the noncontrolling interest

 

73

 

 

446

 

 

(1,346

)

 

985

 

Net income attributable to the Company

 

$

27,537

 

 

$

29,145

 

 

$

98,589

 

 

$

132,398

 

 

 

 

 

 

 

 

 

 

 

Earnings per share attributable to Company shareholders – Basic

 

$

0.85

 

 

$

0.90

 

 

$

3.05

 

 

$

4.10

 

 

 

 

 

 

 

 

 

 

 

Earnings per share attributable to Company shareholders – Diluted

 

$

0.85

 

 

$

0.90

 

 

$

3.05

 

 

$

4.10

 

 

 

 

 

 

 

 

 

 

 

Shares of the Company used in computing earnings per share:

 

 

 

 

 

 

 

 

 

Basic

 

32,339

 

 

32,308

 

 

32,329

 

 

32,296

 

 

 

 

 

 

 

 

 

 

 

Diluted

 

32,365

 

 

32,331

 

 

32,356

 

 

32,322

 

 

 

 

 

 

 

 

 

 

 

Dividends declared per share, Class A and Class B

 

$

0.20

 

 

$

0.19

 

 

$

0.77

 

 

$

0.73

 

ALBANY INTERNATIONAL CORP.

CONSOLIDATED BALANCE SHEETS

(in thousands, except share data)

(unaudited)

 

 

 

December 31,

2020

 

December 31,

2019

ASSETS

 

 

 

 

Cash and cash equivalents

 

$

241,316

 

 

$

195,540

 

Accounts receivable, net

 

188,423

 

 

218,271

 

Contract assets, net

 

139,289

 

 

79,070

 

Inventories

 

110,478

 

 

95,149

 

Income taxes prepaid and receivable

 

5,940

 

 

6,162

 

Prepaid expenses and other current assets

 

31,830

 

 

24,142

 

Total current assets

 

$

717,276

 

 

$

618,334

 

 

 

 

 

 

Property, plant and equipment, net

 

448,554

 

 

466,462

 

Intangibles, net

 

46,869

 

 

52,892

 

Goodwill

 

187,553

 

 

180,934

 

Deferred income taxes

 

38,757

 

 

51,621

 

Noncurrent receivables, net

 

36,265

 

 

41,234

 

Other assets

 

74,662

 

 

62,891

 

Total assets

 

$

1,549,936

 

 

$

1,474,368

 

 

 

 

 

 

LIABILITIES AND SHAREHOLDERS’ EQUITY

 

 

 

 

Accounts payable

 

$

49,173

 

 

$

65,203

 

Accrued liabilities

 

125,459

 

 

125,885

 

Current maturities of long-term debt

 

9

 

 

20

 

Income taxes payable

 

16,222

 

 

11,611

 

Total current liabilities

 

190,863

 

 

202,719

 

 

 

 

 

 

Long-term debt

 

398,000

 

 

424,009

 

Other noncurrent liabilities

 

130,424

 

 

132,725

 

Deferred taxes and other liabilities

 

10,784

 

 

12,226

 

Total liabilities

 

730,071

 

 

771,679

 

 

 

 

 

 

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; 39,115,405 issued in 2020 and 39,098,792 in 2019

 

39

 

 

39

 

Class B Common Stock, par value $.001 per share; authorized 25,000,000 shares; issued and outstanding 1,617,998 in 2020 and 2019

 

2

 

 

2

 

Additional paid in capital

 

433,696

 

 

432,518

 

Retained earnings

 

770,746

 

 

698,496

 

Accumulated items of other comprehensive income:

 

 

 

 

Translation adjustments

 

(83,203

)

 

(122,852

)

Pension and postretirement liability adjustments

 

(39,661

)

 

(49,994

)

Derivative valuation adjustment

 

(9,544

)

 

(3,135

)

Treasury stock (Class A), at cost; 8,391,011 shares in 2020 and 8,408,770 shares in 2019

 

(256,009

)

 

(256,391

)

Total Company shareholders’ equity

 

816,066

 

 

698,683

 

Noncontrolling interest

 

3,799

 

 

4,006

 

Total equity

 

819,865

 

 

702,689

 

Total liabilities and shareholders’ equity

 

$

1,549,936

 

 

$

1,474,368

 

ALBANY INTERNATIONAL CORP.

CONSOLIDATED STATEMENTS OF CASH FLOWS

(in thousands)

(unaudited)

 

 

 

Three Months Ended

December 31,

 

Years Ended

December 31,

 

 

2020

 

2019

 

2020

 

2019

OPERATING ACTIVITIES

 

 

 

 

 

 

 

 

Net income

 

$

27,610

 

 

$

29,591

 

 

$

97,243

 

 

$

133,383

 

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

 

 

 

 

 

 

 

 

Depreciation

 

16,039

 

 

15,426

 

 

63,328

 

 

62,085

 

Amortization

 

2,360

 

 

2,405

 

 

9,377

 

 

8,710

 

Change in deferred taxes and other liabilities

 

(1,333

)

 

900

 

 

11,101

 

 

13,702

 

Provision for write-off of property, plant and equipment

 

637

 

 

2,018

 

 

1,173

 

 

3,119

 

Non-cash interest (income)/expense

 

(152

)

 

151

 

 

(290

)

 

605

 

Write-off of pension liability adjustments due to settlement/curtailment

 

411

 

 

450

 

 

411

 

 

450

 

Compensation and benefits paid or payable in Class A Common Stock

 

909

 

 

650

 

 

1,505

 

 

2,063

 

Provision for credit losses from uncollected receivables and contract assets

 

(36

)

 

(827

)

 

1,628

 

 

309

 

Foreign currency remeasurement (gain)/loss on intercompany loans

 

(1,504

)

 

(1,074

)

 

14,246

 

 

(3,730

)

 

 

 

 

 

 

 

 

 

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

 

 

 

 

 

 

 

 

Accounts receivable

 

25,453

 

 

17,554

 

 

31,522

 

 

9,278

 

Contract assets

 

(31,190

)

 

(12,641

)

 

(59,122

)

 

(19,199

)

Inventories

 

6,358

 

 

13,004

 

 

(13,685

)

 

(8,923

)

Prepaid expenses and other current assets

 

(822

)

 

1,766

 

 

(7,811

)

 

(2,291

)

Income taxes prepaid and receivable

 

775

 

 

728

 

 

113

 

 

1,390

 

Accounts payable

 

(95

)

 

2,687

 

 

(15,586

)

 

10,524

 

Accrued liabilities

 

4,207

 

 

1,369

 

 

(3,856

)

 

(7,393

)

Income taxes payable

 

2,198

 

 

2,360

 

 

5,939

 

 

3,979

 

Noncurrent receivables

 

3,989

 

 

(662

)

 

4,158

 

 

(1,341

)

Other noncurrent liabilities

 

(2,024

)

 

(2,162

)

 

(2,437

)

 

(6,573

)

Other, net

 

2,770

 

 

66

 

 

1,296

 

 

205

 

Net cash provided by operating activities

 

56,560

 

 

73,759

 

 

140,253

 

 

200,352

 

 

 

 

 

 

 

 

 

 

INVESTING ACTIVITIES

 

 

 

 

 

 

 

 

Purchase of business, net of cash acquired

 

 

 

(30,793

)

 

 

 

(30,793

)

Purchases of property, plant and equipment

 

(10,143

)

 

(18,512

)

 

(41,463

)

 

(67,358

)

Purchased software

 

(772

)

 

(291

)

 

(927

)

 

(597

)

Net cash used in investing activities

 

(10,915

)

 

(49,596

)

 

(42,390

)

 

(98,748

)

 

 

 

 

 

 

 

 

 

FINANCING ACTIVITIES

 

 

 

 

 

 

 

 

Proceeds from borrowings

 

5,000

 

 

25,000

 

 

75,000

 

 

45,000

 

Principal payments on debt

 

(25,004

)

 

(25,003

)

 

(101,020

)

 

(120,017

)

Principal payments on finance lease liabilities

 

(416

)

 

(304

)

 

(7,214

)

 

(1,180

)

Debt acquisition costs

 

(2,432

)

 

 

 

(2,432

)

 

 

Taxes paid in lieu of share issuance

 

 

 

 

 

(490

)

 

(971

)

Proceeds from options exercised

 

30

 

 

7

 

 

55

 

 

112

 

Dividends paid

 

(6,144

)

 

(5,816

)

 

(24,568

)

 

(23,251

)

Net cash used in financing activities

 

(28,966

)

 

(6,116

)

 

(60,669

)

 

(100,307

)

 

 

 

 

 

 

 

 

 

Effect of exchange rate changes on cash and cash equivalents

 

9,333

 

 

3,754

 

 

8,582

 

 

(3,512

)

 

 

 

 

 

 

 

 

 

Increase/(decrease) in cash and cash equivalents

 

26,012

 

 

21,801

 

 

45,776

 

 

(2,215

)

Cash and cash equivalents at beginning of period

 

215,304

 

 

173,739

 

 

195,540

 

 

197,755

 

Cash and cash equivalents at end of period

 

$

241,316

 

 

$

195,540

 

 

$

241,316

 

 

$

195,540

 

Reconciliation of non-GAAP measures to comparable GAAP measures

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

(in thousands, except percentages)

 

Net sales as

reported, Q4

2020

 

Increase due to

changes in

currency

translation rates

 

Q4 2020 sales

on same basis

as Q4 2019

currency

translation rates

 

Net sales as

reported, Q4

2019

 

% Change compared

to Q4 2019,

excluding currency

rate effects

Machine Clothing

 

$

144,173

 

 

$

3,539

 

 

$

140,634

 

 

$

150,580

 

 

(6.6

)%

Albany Engineered Composites

 

82,684

 

 

756

 

 

81,928

 

 

107,098

 

 

(23.5

)%

Consolidated total

 

$

226,857

 

 

$

4,295

 

 

$

222,562

 

 

$

257,678

 

 

(13.6

)%

 

 

 

 

 

 

 

 

 

 

 

(in thousands, except percentages)

 

Net sales as

reported, YTD

2020

 

Increase due to

changes in

currency

translation rates

 

YTD 2020 sales

on same basis

as 2019

currency

translation rates

 

Net sales as

reported, YTD

2019

 

% Change compared

to 2019, excluding

currency rate effects

Machine Clothing

 

$

572,955

 

 

$

2,252

 

 

$

570,703

 

 

$

601,254

 

 

(5.1

)%

Albany Engineered Composites

 

327,655

 

 

620

 

 

327,035

 

 

452,878

 

 

(27.8

)%

Consolidated total

 

$

900,610

 

 

$

2,872

 

 

$

897,738

 

 

$

1,054,132

 

 

(14.8

)%

The following tables present Gross profit and Gross profit margin:

(in thousands, except percentages)

 

Gross profit,

Q4 2020

 

Gross profit margin,

Q4 2020

 

Gross profit,

Q4 2019

 

Gross profit margin,

Q4 2019

Machine Clothing

 

$

73,410

 

 

50.9

%

 

$

75,601

 

 

50.2

%

Albany Engineered Composites

 

17,908

 

 

21.7

%

 

21,040

 

 

19.6

%

Consolidated total

 

$

91,318

 

 

40.3

%

 

$

96,641

 

 

37.5

%

 

 

 

 

 

 

 

 

 

(in thousands, except percentages)

 

Gross profit,

YTD 2020

 

Gross profit margin,

YTD 2020

 

Gross profit,

YTD 2019

 

Gross profit margin,

YTD 2019

Machine Clothing

 

$

301,144

 

 

52.6

%

 

$

309,641

 

 

51.5

%

Albany Engineered Composites

 

69,928

 

 

21.3

%

 

88,060

 

 

19.4

%

Consolidated total

 

$

371,072

 

 

41.2

%

 

$

397,701

 

 

37.7

%

 

 

 

 

 

 

 

 

 

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

Three months ended December 31, 2020

(in thousands)

 

Machine Clothing

 

Albany Engineered
Composites

 

Corporate expenses
and other

 

Total Company

Operating income/(loss) (GAAP)

 

$

41,386

 

 

$

8,787

 

 

$

(15,187

)

 

$

34,986

 

Interest, taxes, other income/(expense)

 

 

 

 

 

(7,376

)

 

(7,376

)

Net income/(loss) (GAAP)

 

41,386

 

 

8,787

 

 

(22,563

)

 

27,610

 

Interest expense, net

 

 

 

 

 

3,542

 

 

3,542

 

Income tax expense

 

 

 

 

 

4,327

 

 

4,327

 

Depreciation and amortization expense

 

5,161

 

 

12,303

 

 

935

 

 

18,399

 

EBITDA (non-GAAP)

 

46,547

 

 

21,090

 

 

(13,759

)

 

53,878

 

Restructuring expenses

 

1,332

 

 

215

 

 

 

 

1,547

 

Foreign currency revaluation (gains)/losses

 

3,009

 

 

(372

)

 

(1,134

)

 

1,503

 

Acquisition/integration costs

 

 

 

405

 

 

 

 

405

 

Pre-tax (income) attributable to noncontrolling interest

 

 

 

(64

)

 

 

 

(64

)

Adjusted EBITDA (non-GAAP)

 

$

50,888

 

 

$

21,274

 

 

$

(14,893

)

 

$

57,269

 

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

 

35.3

%

 

25.7

%

 

 

 

25.2

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three months ended December 31, 2019

(in thousands)

 

Machine Clothing

 

Albany Engineered
Composites

 

Corporate expenses
and other

 

Total Company

Operating income/(loss) (GAAP)

 

$

46,277

 

 

$

10,922

 

 

$

(13,619

)

 

$

43,580

 

Interest, taxes, other income/(expense)

 

 

 

 

 

(13,989

)

 

(13,989

)

Net income/(loss) (GAAP)

 

46,277

 

 

10,922

 

 

(27,608

)

 

29,591

 

Interest expense, net

 

 

 

 

 

3,886

 

 

3,886

 

Income tax expense

 

 

 

 

 

9,754

 

 

9,754

 

Depreciation and amortization expense

 

5,201

 

 

11,611

 

 

1,019

 

 

17,831

 

EBITDA (non-GAAP)

 

51,478

 

 

22,533

 

 

(12,949

)

 

61,062

 

Restructuring expenses

 

4

 

 

1,815

 

 

(53

)

 

1,766

 

Foreign currency revaluation (gains)/losses

 

1,365

 

 

(12

)

 

(748

)

 

605

 

Pension curtailment expense

 

 

 

 

 

478

 

 

478

 

Acquisition/integration costs

 

 

 

421

 

 

200

 

 

621

 

Pre-tax (income) attributable to noncontrolling interest

 

 

 

(586

)

 

 

 

(586

)

Adjusted EBITDA (non-GAAP)

 

$

52,847

 

 

$

24,171

 

 

$

(13,072

)

 

$

63,946

 

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

 

35.1

%

 

22.6

%

 

 

 

24.8

%

Year ended December 31, 2020

(in thousands)

 

Machine Clothing

 

Albany Engineered
Composites

 

Corporate expenses
and other

 

Total Company

Operating income/(loss) (GAAP)

 

$

190,805

 

 

$

31,536

 

 

$

(56,261

)

 

$

166,080

 

Interest, taxes, other income/(expense)

 

 

 

 

 

(68,837

)

 

(68,837

)

Net income/(loss) (GAAP)

 

190,805

 

 

31,536

 

 

(125,098

)

 

97,243

 

Interest expense, net

 

 

 

 

 

13,584

 

 

13,584

 

Income tax expense

 

 

 

 

 

41,831

 

 

41,831

 

Depreciation and amortization expense

 

20,304

 

 

48,496

 

 

3,905

 

 

72,705

 

EBITDA (non-GAAP)

 

211,109

 

 

80,032

 

 

(65,778

)

 

225,363

 

Restructuring expenses

 

2,746

 

 

2,821

 

 

169

 

 

5,736

 

Foreign currency revaluation (gains)/losses

 

1,743

 

 

130

 

 

13,571

 

 

15,444

 

Former CEO termination costs

 

 

 

 

 

2,742

 

 

2,742

 

Acquisition/integration costs

 

 

 

1,272

 

 

 

 

1,272

 

Pre-tax loss attributable to noncontrolling interest

 

 

 

1,348

 

 

 

 

1,348

 

Adjusted EBITDA (non-GAAP)

 

$

215,598

 

 

$

85,603

 

 

$

(49,296

)

 

$

251,905

 

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

 

37.6

%

 

26.1

%

 

 

 

28.0

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Year ended December 31, 2019

(in thousands)

 

Machine Clothing

 

Albany Engineered
Composites

 

Corporate expenses
and other

 

Total Company

Operating income/(loss) (GAAP)

 

$

191,965

 

 

$

55,520

 

 

$

(53,909

)

 

$

193,576

 

Interest, taxes, other income/(expense)

 

 

 

 

 

(60,193

)

 

(60,193

)

Net income/(loss) (GAAP)

 

191,965

 

 

55,520

 

 

(114,102

)

 

133,383

 

Interest expense, net

 

 

 

 

 

16,921

 

 

16,921

 

Income tax expense

 

 

 

 

 

44,829

 

 

44,829

 

Depreciation and amortization expense

 

21,876

 

 

44,670

 

 

4,249

 

 

70,795

 

EBITDA (non-GAAP)

 

213,841

 

 

100,190

 

 

(48,103

)

 

265,928

 

Restructuring expenses

 

1,129

 

 

1,833

 

 

(57

)

 

2,905

 

Foreign currency revaluation (gains)/losses

 

630

 

 

643

 

 

(4,463

)

 

(3,190

)

Pension curtailment expense

 

 

 

 

 

478

 

 

478

 

Acquisition/integration costs

 

 

 

421

 

 

200

 

 

621

 

Pre-tax (income) attributable to noncontrolling interest

 

 

 

(1,308

)

 

 

 

(1,308

)

Adjusted EBITDA (non-GAAP)

 

$

215,600

 

 

$

101,779

 

 

$

(51,945

)

 

$

265,434

 

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

 

35.9

%

 

22.5

%

 

 

 

25.2

%

 

 

 

 

 

 

 

 

 

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

Three months ended December 31, 2020
(in thousands, except per share amounts)

 

Pre tax
Amounts

 

Tax
Effect

 

After tax
Effect

 

Per share
Effect

Restructuring expenses

 

$

1,547

 

 

$

485

 

 

$

1,062

 

 

$

0.03

 

Foreign currency revaluation (gains)/losses (a)

 

1,503

 

 

1,379

 

 

124

 

 

0.00

 

Acquisition/integration costs

 

405

 

 

121

 

 

284

 

 

0.01

 

 

 

 

 

 

 

 

 

 

Three months ended December 31, 2019
(in thousands, except per share amounts)

 

Pre tax
Amounts

 

Tax
Effect

 

After tax
Effect

 

Per share
Effect

Restructuring expenses

 

$

1,766

 

 

$

494

 

 

$

1,272

 

 

$

0.04

 

Foreign currency revaluation (gains)/losses

 

605

 

 

169

 

 

436

 

 

0.01

 

Pension curtailment charge

 

478

 

 

91

 

 

387

 

 

0.01

 

Acquisition/integration costs

 

621

 

 

156

 

 

465

 

 

0.01

 

 

 

 

 

 

 

 

 

 

Year ended December 31, 2020
(in thousands, except per share amounts)

 

Pre tax
Amounts

 

Tax
Effect

 

After tax
Effect

 

Per share
Effect

Restructuring expenses

 

$

5,736

 

 

$

1,862

 

 

$

3,874

 

 

$

0.11

 

Foreign currency revaluation (gains)/losses(a)

 

15,444

 

 

896

 

 

14,548

 

 

0.46

 

Former CEO termination costs

 

2,742

 

 

713

 

 

2,029

 

 

0.06

 

Acquisition/integration costs

 

1,272

 

 

380

 

 

892

 

 

0.04

 

 

 

 

 

 

 

 

 

 

(a) In Q1 2020, the company recorded losses of approximately $17 million in jurisdictions where it cannot record a tax benefit from the losses, and in Q4 2020, recorded gains of approximately $3 million in jurisdictions where it did not record a tax expense from the gains, which results in an unusual relationship between the pre-tax and after-tax amounts.

 

 

 

 

 

 

 

 

 

Year ended December 31, 2019
(in thousands, except per share amounts)

 

Pre tax
Amounts

 

Tax
Effect

 

After tax
Effect

 

Per share
Effect

Restructuring expenses

 

$

2,905

 

 

$

824

 

 

$

2,081

 

 

$

0.06

 

Foreign currency revaluation (gains)/losses

 

(3,190

)

 

(904

)

 

(2,286

)

 

(0.07

)

Pension curtailment charge

 

478

 

 

91

 

 

387

 

 

0.01

 

Acquisition/integration costs

 

621

 

 

156

 

 

465

 

 

0.01

 

 

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

 

 

Three months ended December 31,

 

Years Ended December 31,

Per share amounts (Basic)

 

2020

 

2019

 

2020

 

2019

Earnings per share (GAAP)

 

$

0.85

 

 

$

0.90

 

 

$

3.05

 

 

$

4.10

 

Adjustments, after tax:

 

 

 

 

 

 

 

 

Restructuring expenses

 

0.03

 

 

0.04

 

 

0.11

 

 

0.06

 

Foreign currency revaluation (gains)/losses

 

 

 

0.01

 

 

0.46

 

 

(0.07

Former CEO termination costs

 

 

 

 

 

0.06

 

 

 

Pension curtailment charge

 

 

 

0.01

 

 

 

 

0.01

 

Acquisition/integration costs

 

0.01

 

 

0.01

 

 

0.04

 

 

0.01

 

Adjusted Earnings per share (non-GAAP)

 

$

0.89

 

 

$

0.97

 

 

$

3.72

 

 

$

4.11

 

The calculations of net debt are as follows:

(in thousands)

 

December 31, 2020

 

September 30, 2020

 

June 30, 2020

 

March 31, 2020

 

December 31, 2019

Current maturities of long-term debt

 

$

9

 

 

$

12

 

 

$

17

 

 

$

20

 

 

$

20

 

Long-term debt

 

398,000

 

 

418,000

 

 

435,000

 

 

491,002

 

 

424,009

 

Total debt

 

398,009

 

 

418,012

 

 

435,017

 

 

491,022

 

 

424,029

 

Cash and cash equivalents

 

241,316

 

 

215,304

 

 

204,037

 

 

222,680

 

 

195,540

 

Net debt (non-GAAP)

 

$

156,693

 

 

$

202,708

 

 

$

230,980

 

 

$

268,342

 

 

$

228,489

 

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

Forecast of Full Year 2021 Adjusted EBITDA

 

Machine Clothing

 

AEC

(in millions)

 

Low

 

High

 

Low

 

High

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

 

$

176

 

 

$

185

 

 

$

5

 

 

$

14

 

Income attributable to the noncontrolling interest

 

 

 

 

 

 

 

 

Interest expense, net

 

 

 

 

 

 

 

 

Income tax expense

 

 

 

 

 

 

 

 

Depreciation and amortization

 

19

 

 

20

 

 

50

 

 

51

 

EBITDA (non-GAAP)

 

195

 

 

205

 

 

55

 

 

65

 

Restructuring expenses, net (c)

 

 

 

 

 

 

 

 

Foreign currency revaluation (gains)/losses (c)

 

 

 

 

 

 

 

 

Acquisition/integration costs (c)

 

 

 

 

 

 

 

 

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

 

 

 

 

 

 

 

 

Adjusted EBITDA (non-GAAP)

 

$

195

 

 

$

205

 

 

$

55

 

 

$

65

 

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

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Forecast of Full Year 2021 Adjusted EBITDA

 

Total Company

 

 

 

 

(in millions)

 

Low

 

High

 

 

 

 

Net income attributable to the Company (GAAP)

 

$

78

 

 

$

91

 

 

 

 

 

Income attributable to the noncontrolling interest

 

 

 

 

 

 

 

 

Interest expense, net

 

17

 

 

15

 

 

 

 

 

Income tax expense

 

30

 

 

39

 

 

 

 

 

Depreciation and amortization

 

70

 

 

75

 

 

 

 

 

EBITDA (non-GAAP)

 

195

 

 

220

 

 

 

 

 

Restructuring expenses, net (c)

 

 

 

 

 

 

 

 

Foreign currency revaluation (gains)/losses (c)

 

 

 

 

 

 

 

 

Acquisition/integration costs (c)

 

 

 

 

 

 

 

 

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

 

 

 

 

 

 

 

 

Adjusted EBITDA (non-GAAP)

 

$

195

 

 

$

220

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total Company

 

 

 

 

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

 

Low

 

High

 

 

 

 

Net income attributable to the Company (GAAP)

 

$

2.40

 

 

$

2.80

 

 

 

 

 

Restructuring expenses, net (c)

 

 

 

 

 

 

 

 

Foreign currency revaluation (gains)/losses (c)

 

 

 

 

 

 

 

 

Acquisition/integration costs (c)

 

 

 

 

 

 

 

 

Adjusted Earnings per share (non-GAAP)

 

$

2.40

 

 

$

2.80

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(c) Due to the uncertainty of these items, we are unable to forecast these items for 2021

(d) Calculations based on shares outstanding estimate of 32.3 million.

About Albany International Corp.

Albany International is a global advanced textiles and materials processing company, with two core businesses.

Contacts

John Hobbs

603-330-5897

john.hobbs@albint.com

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