ROCHESTER, N.H.–(BUSINESS WIRE)–Albany International Corp. (NYSE:AIN) today reported operating results for its second quarter of 2022, which ended June 30, 2022.

“We are pleased to report another quarter of excellent results,” said Albany International President and Chief Executive Officer, Bill Higgins. “Our revenue of $261 million was up on both a year-over-year and sequential basis driven by growth in our Engineered Composites segment from recovering commercial aircraft production and previously announced new business wins. Machine Clothing markets remained healthy, and the Machine Clothing segment delivered another strong performance in the quarter. Second quarter GAAP earnings per share was $1.25, which benefited from 20 cents of currency revaluation gains. Adjusted earnings per share was $1.06 up from $1.01 reported last year.

“As a result of the excellent performance to date, we are increasing our guidance for 2022. Of course, risks remain in 2022 in the form of ongoing inflation, supply chain and logistics challenges, and the indirect effects of the Russian invasion of Ukraine. Our updated outlook for the year incorporates these risks. Our team has done a great job managing these challenges and serving our customers which has enabled us to continue to win new business,” concluded Higgins.

For the second quarter ended June 30, 2022:

  • Net sales were $261.4 million, up 11.5%, or 14.6% after adjusting for currency translation, when compared to the prior year, primarily due to year-over-year growth in sales related to the CH-53K and LEAP programs within the Engineered Composites segment.
  • Gross profit of $100.6 million was 1.1% lower than the $101.7 million reported for the same period of 2021.
  • Selling, Technical, General, and Research (STG&R) expenses were $49.9 million, compared to $51.8 million in the same period of 2021. The decrease was driven by the favorable effect of the revaluation of foreign currency in the Machine Clothing segment.
  • Operating income was $50.7 million, compared to $50.0 million in the prior year, an increase of 1.5%.
  • The effective tax rate was 26.9%, compared to 30.0% for the second quarter of 2021. This year-over-year decrease was mainly due to favorable discrete tax adjustments recognized in the second quarter of 2022.
  • Net income attributable to the Company was $39.2 million ($1.25 per share), compared to $31.4 million ($0.97 per share) in the second quarter of 2021. Adjusted earnings per share (or Adjusted EPS, a non-GAAP measure) was $1.06 per share in the second quarter of 2022, compared to $1.01 in the same period of last year.
  • Adjusted EBITDA (a non-GAAP measure) was $66.0 million, compared to $69.4 million in the second quarter of 2021, a decrease of 4.9%.

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

Outlook for Full-Year 2022

The Company has updated its guidance for the full year 2022 as follows:

  • Total company revenue of between $970 million and $1.01 billion;
  • Effective income tax rate, including tax adjustments, of 28% to 30%;
  • Total company depreciation and amortization of between $71 and $72 million;
  • Capital expenditures in the range of $75 to $85 million;
  • GAAP earnings per share of between $3.45 and $3.75;
  • Adjusted earnings per share of between $3.30 and $3.60;
  • Total company Adjusted EBITDA of $230 to $250 million;
  • Machine Clothing revenue of $590 to $610 million;
  • Machine Clothing Adjusted EBITDA of between $210 and $225 million;
  • Albany Engineered Composites revenue of between $380 and $400 million; and
  • Albany Engineered Composites Adjusted EBITDA of between $75 and $80 million.

ALBANY INTERNATIONAL CORP.

CONSOLIDATED STATEMENTS OF INCOME

(in thousands, except per share amounts)

(unaudited)

 

 

Three Months Ended
June 30,

 

Six Months Ended
June 30,

 

 

2022

 

 

 

2021

 

 

 

2022

 

 

2021

Net sales

$

261,369

 

 

$

234,519

 

 

$

505,538

 

 

$

456,880

Cost of goods sold

 

160,776

 

 

 

132,791

 

 

 

313,341

 

 

 

266,606

 

 

 

 

 

 

 

 

Gross profit

 

100,593

 

 

 

101,728

 

 

 

192,197

 

 

 

190,274

Selling, general, and administrative expenses

 

39,745

 

 

 

42,009

 

 

 

82,452

 

 

 

79,203

Technical and research expenses

 

10,161

 

 

 

9,762

 

 

 

20,050

 

 

 

19,243

Restructuring expenses, net

 

(28

)

 

 

(9

)

 

 

226

 

 

 

43

 

 

 

 

 

 

 

 

Operating income

 

50,715

 

 

 

49,966

 

 

 

89,469

 

 

 

91,785

Interest expense, net

 

3,933

 

 

 

4,218

 

 

 

7,542

 

 

 

7,787

Other (income)/expense, net

 

(7,045

)

 

 

862

 

 

 

(10,973

)

 

 

1,462

 

 

 

 

 

 

 

 

Income before income taxes

 

53,827

 

 

 

44,886

 

 

 

92,900

 

 

 

82,536

Income tax expense

 

14,458

 

 

 

13,446

 

 

 

25,456

 

 

 

23,486

 

 

 

 

 

 

 

 

Net income

 

39,369

 

 

 

31,440

 

 

 

67,444

 

 

 

59,050

Net income attributable to the noncontrolling interest

 

168

 

 

 

43

 

 

 

506

 

 

 

70

Net income attributable to the Company

$

39,201

 

 

$

31,397

 

 

$

66,938

 

 

$

58,980

 

 

 

 

 

 

 

 

Earnings per share attributable to Company shareholders – Basic

$

1.25

 

 

$

0.97

 

 

$

2.12

 

 

$

1.82

 

 

 

 

 

 

 

 

Earnings per share attributable to Company shareholders – Diluted

$

1.25

 

 

$

0.97

 

 

$

2.11

 

 

$

1.82

 

 

 

 

 

 

 

 

Shares of the Company used in computing earnings per share:

 

 

 

 

 

 

 

Basic

 

31,268

 

 

 

32,375

 

 

 

31,571

 

 

 

32,363

 

 

 

 

 

 

 

 

Diluted

 

31,378

 

 

 

32,422

 

 

 

31,668

 

 

 

32,411

 

 

 

 

 

 

 

 

Dividends declared per share, Class A and Class B

$

0.21

 

 

$

0.20

 

 

$

0.42

 

 

$

0.40

ALBANY INTERNATIONAL CORP.

CONSOLIDATED BALANCE SHEETS

(in thousands, except share data)

(unaudited)

 

 

June 30, 2022

 

December 31, 2021

ASSETS

 

 

 

Cash and cash equivalents

$

320,870

 

 

$

302,036

 

Accounts receivable, net

 

199,489

 

 

 

191,985

 

Contract assets, net

 

135,907

 

 

 

112,546

 

Inventories

 

133,667

 

 

 

117,882

 

Income taxes prepaid and receivable

 

1,979

 

 

 

1,958

 

Prepaid expenses and other current assets

 

43,187

 

 

 

32,394

 

Total current assets

$

835,099

 

 

$

758,801

 

 

 

 

 

Property, plant and equipment, net

 

419,142

 

 

 

436,417

 

Intangibles, net

 

35,722

 

 

 

39,081

 

Goodwill

 

176,775

 

 

 

182,124

 

Deferred income taxes

 

17,894

 

 

 

26,376

 

Noncurrent receivables, net

 

29,843

 

 

 

31,849

 

Other assets

 

98,580

 

 

 

81,416

 

Total assets

$

1,613,055

 

 

$

1,556,064

 

 

 

 

 

LIABILITIES AND SHAREHOLDERS’ EQUITY

 

 

 

Accounts payable

$

70,430

 

 

$

68,954

 

Accrued liabilities

 

110,074

 

 

 

124,325

 

Current maturities of long-term debt

 

 

 

 

 

Income taxes payable

 

7,656

 

 

 

14,887

 

Total current liabilities

 

188,160

 

 

 

208,166

 

 

 

 

 

Long-term debt

 

485,000

 

 

 

350,000

 

Other noncurrent liabilities

 

107,049

 

 

 

107,794

 

Deferred taxes and other liabilities

 

11,064

 

 

 

12,499

 

Total liabilities

 

791,273

 

 

 

678,459

 

 

 

 

 

SHAREHOLDERS’ EQUITY

 

 

 

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

 

 

 

 

 

Class A Common Stock, par value $.001 per share; authorized 100,000,000 shares; 40,784,934 issued in 2022 and 40,760,577 in 2021

 

41

 

 

 

41

 

Class B Common Stock, par value $.001 per share; authorized 25,000,000 shares; none issued and outstanding in 2022 and 104 in 2021

 

 

 

 

 

Additional paid in capital

 

439,450

 

 

 

436,996

 

Retained earnings

 

916,805

 

 

 

863,057

 

Accumulated items of other comprehensive income:

 

 

 

Translation adjustments

 

(147,271

)

 

 

(105,880

)

Pension and postretirement liability adjustments

 

(38,182

)

 

 

(38,490

)

Derivative valuation adjustment

 

11,753

 

 

 

(1,614

)

Treasury stock (Class A), at cost; 9,674,542 shares in 2022 and 8,665,090 in 2021

 

(364,923

)

 

 

(280,143

)

Total Company shareholders’ equity

 

817,673

 

 

 

873,967

 

Noncontrolling interest

 

4,109

 

 

 

3,638

 

Total equity

 

821,782

 

 

 

877,605

 

Total liabilities and shareholders’ equity

$

1,613,055

 

 

$

1,556,064

 

ALBANY INTERNATIONAL CORP.

CONSOLIDATED STATEMENTS OF CASH FLOWS

(in thousands)

(unaudited)

 

 

Three Months Ended June 30,

 

Six Months Ended June 30,

 

 

2022

 

 

 

2021

 

 

 

2022

 

 

 

2021

 

OPERATING ACTIVITIES

 

 

 

 

 

 

 

Net income

$

39,369

 

 

$

31,440

 

 

$

67,444

 

 

$

59,050

 

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

 

 

 

 

 

 

 

Depreciation

 

15,679

 

 

 

15,971

 

 

 

31,276

 

 

 

32,560

 

Amortization

 

1,433

 

 

 

2,280

 

 

 

3,598

 

 

 

4,573

 

Change in deferred taxes and other liabilities

 

804

 

 

 

974

 

 

 

2,596

 

 

 

5,416

 

Impairment of property, plant, equipment, and inventory

 

(206

)

 

 

353

 

 

 

2,662

 

 

 

538

 

Non-cash interest expense

 

279

 

 

 

265

 

 

 

561

 

 

 

310

 

Compensation and benefits paid or payable in Class A Common Stock

 

1,702

 

 

 

1,639

 

 

 

2,447

 

 

 

1,626

 

Provision for credit losses from uncollected receivables and contract assets

 

(532

)

 

 

27

 

 

 

1,326

 

 

 

(83

)

Foreign currency remeasurement (gain)/loss on intercompany loans

 

1,125

 

 

 

(723

)

 

 

(1,260

)

 

 

(1,031

)

Fair value adjustment on foreign currency options

 

596

 

 

 

1

 

 

 

(381

)

 

 

140

 

 

 

 

 

 

 

 

 

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

 

 

 

 

 

 

 

Accounts receivable

 

1,267

 

 

 

(129

)

 

 

(14,407

)

 

 

(3,365

)

Contract assets

 

(24,140

)

 

 

9,539

 

 

 

(23,868

)

 

 

25,643

 

Inventories

 

(13,586

)

 

 

(1,821

)

 

 

(21,135

)

 

 

(10,384

)

Prepaid expenses and other current assets

 

(2,498

)

 

 

(606

)

 

 

(4,474

)

 

 

(1,505

)

Income taxes prepaid and receivable

 

(1,889

)

 

 

1,156

 

 

 

(60

)

 

 

(309

)

Accounts payable

 

7,851

 

 

 

(4,580

)

 

 

7,476

 

 

 

4,608

 

Accrued liabilities

 

7,605

 

 

 

2,062

 

 

 

(11,745

)

 

 

(17,423

)

Income taxes payable

 

3,151

 

 

 

4,121

 

 

 

(7,739

)

 

 

(3,956

)

Noncurrent receivables

 

1,250

 

 

 

1,099

 

 

 

1,864

 

 

 

1,587

 

Other noncurrent liabilities

 

(1,338

)

 

 

(2,166

)

 

 

(3,252

)

 

 

(4,263

)

Other, net

 

5,182

 

 

 

1,051

 

 

 

4,784

 

 

 

1,908

 

Net cash provided by operating activities

 

43,104

 

 

 

61,953

 

 

 

37,713

 

 

 

95,640

 

 

 

 

 

 

 

 

 

INVESTING ACTIVITIES

 

 

 

 

 

 

 

Purchases of property, plant and equipment

 

(19,940

)

 

 

(10,302

)

 

 

(35,659

)

 

 

(22,836

)

Purchased software

 

(331

)

 

 

(286

)

 

 

(366

)

 

 

(288

)

Net cash used in investing activities

 

(20,271

)

 

 

(10,588

)

 

 

(36,025

)

 

 

(23,124

)

 

 

 

 

 

 

 

 

FINANCING ACTIVITIES

 

 

 

 

 

 

 

Proceeds from borrowings

 

58,000

 

 

 

 

 

 

135,000

 

 

 

8,000

 

Principal payments on debt

 

 

 

 

(34,002

)

 

 

 

 

 

(56,009

)

Principal payments on finance lease liabilities

 

(264

)

 

 

(355

)

 

 

(654

)

 

 

(704

)

Purchase of Treasury shares

 

(42,550

)

 

 

 

 

 

(84,780

)

 

 

 

Taxes paid in lieu of share issuance

 

 

 

 

 

 

 

(770

)

 

 

(998

)

Proceeds from options exercised

 

 

 

 

21

 

 

 

7

 

 

 

149

 

Dividends paid

 

(6,657

)

 

 

(6,474

)

 

 

(13,399

)

 

 

(12,942

)

Net cash provided by/(used in) financing activities

 

8,529

 

 

 

(40,810

)

 

 

35,404

 

 

 

(62,504

)

 

 

 

 

 

 

 

 

Effect of exchange rate changes on cash and cash equivalents

 

(17,907

)

 

 

4,904

 

 

 

(18,258

)

 

 

2,002

 

 

 

 

 

 

 

 

 

Increase in cash and cash equivalents

 

13,455

 

 

 

15,459

 

 

 

18,834

 

 

 

12,014

 

Cash and cash equivalents at beginning of period

 

307,415

 

 

 

237,871

 

 

 

302,036

 

 

 

241,316

 

Cash and cash equivalents at end of period

$

320,870

 

 

$

253,330

 

 

$

320,870

 

 

$

253,330

 

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

(in thousands, except percentages)

Net sales as reported, Q2 2022

Decrease due to changes in currency translation rates

Q2 2022 sales on same basis as Q2 2021 currency translation rates

Net sales as reported, Q2 2021

% Change compared to Q2 2021, excluding currency rate effects

Machine Clothing

$

151,670

$

(5,447

)

$

157,117

$

159,921

(1.8

) %

Albany Engineered Composites

 

109,699

 

(1,994

)

 

111,693

 

74,598

49.7

%

Consolidated total

$

261,369

$

(7,441

)

$

268,810

$

234,519

14.6

%

 

 

 

 

 

 

(in thousands, except percentages)

Net sales as reported, YTD 2022

Decrease due to changes in currency translation rates

YTD 2022 sales on same basis as 2021 currency translation rates

Net sales as reported, YTD 2021

% Change compared to 2021, excluding currency rate effects

Machine Clothing

$

305,732

$

(7,975

)

$

313,707

$

308,127

1.8

%

Albany Engineered Composites

 

199,806

 

(3,152

)

 

202,958

 

148,753

36.4

%

Consolidated total

$

505,538

$

(11,127

)

$

516,665

$

456,880

13.1

%

The following table presents Gross profit and Gross profit margin:

(in thousands, except percentages)

Gross profit,

Q2 2022

Gross profit margin, Q2 2022

Gross profit,

Q2 2021

Gross profit margin, Q2 2021

Machine Clothing

$

78,857

52.0

%

$

84,597

52.9

%

Albany Engineered Composites

 

21,736

19.8

%

 

17,131

23.0

%

Consolidated total

$

100,593

38.5

%

$

101,728

43.4

%

(in thousands, except percentages)

Gross profit,

YTD 2022

Gross profit margin, YTD 2022

Gross profit,

YTD 2021

Gross profit margin, YTD 2021

Machine Clothing

$

158,202

51.7

%

$

160,990

52.2

%

Albany Engineered Composites

 

33,995

17.0

%

 

29,284

19.7

%

Consolidated total

$

192,197

38.0

%

$

190,274

41.6

%

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 June 30, 2022

(in thousands)

Machine Clothing

Albany Engineered

Composites

Corporate expenses

and other

Total Company

Operating income/(loss) (GAAP)

$

54,861

 

$

9,535

 

$

(13,681

)

$

50,715

 

Interest, taxes, other income/(expense)

 

 

 

 

 

(11,346

)

 

(11,346

)

Net income/(loss) (GAAP)

 

54,861

 

 

9,535

 

 

(25,027

)

 

39,369

 

Interest expense, net

 

 

 

 

 

3,933

 

 

3,933

 

Income tax expense

 

 

 

 

 

14,458

 

 

14,458

 

Depreciation and amortization expense

 

4,880

 

 

11,450

 

 

782

 

 

17,112

 

EBITDA (non-GAAP)

 

59,741

 

 

20,985

 

 

(5,854

)

 

74,872

 

Restructuring expenses, net

 

(30

)

 

 

 

2

 

 

(28

)

Foreign currency revaluation (gains)/losses

 

(1,816

)

 

210

 

 

(7,271

)

 

(8,877

)

Acquisition/integration costs

 

 

 

269

 

 

 

 

269

 

Pre-tax (income) attributable to noncontrolling interest

 

 

 

(205

)

 

 

 

(205

)

Adjusted EBITDA (non-GAAP)

$

57,895

 

$

21,259

 

$

(13,123

)

$

66,031

 

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

 

38.2

%

 

19.4

%

 

 

 

25.3

%

 

 

 

 

 

 

 

 

 

 

Three months ended June 30, 2021

(in thousands)

Machine Clothing

Albany Engineered

Composites

Corporate expenses

and other

Total Company

Operating income/(loss) (GAAP)

$

55,902

 

$

7,164

 

$

(13,100

)

$

49,966

 

Interest, taxes, other income/(expense)

 

 

 

 

 

(18,526

)

 

(18,526

)

Net income/(loss) (GAAP)

 

55,902

 

 

7,164

 

 

(31,626

)

 

31,440

 

Interest expense, net

 

 

 

 

 

4,218

 

 

4,218

 

Income tax expense

 

 

 

 

 

13,446

 

 

13,446

 

Depreciation and amortization expense

 

5,138

 

 

12,194

 

 

919

 

 

18,251

 

EBITDA (non-GAAP)

 

61,040

 

 

19,358

 

 

(13,043

)

 

67,355

 

Restructuring expenses, net

 

10

 

 

(48

)

 

29

 

 

(9

)

Foreign currency revaluation (gains)/losses

 

1,908

 

 

(244

)

 

174

 

 

1,838

 

Acquisition/integration costs

 

 

 

300

 

 

 

 

300

 

Pre-tax (income) attributable to noncontrolling interest

 

 

 

(65

)

 

 

 

(65

)

Adjusted EBITDA (non-GAAP)

$

62,958

 

$

19,301

 

$

(12,840

)

$

69,419

 

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

 

39.4

%

 

25.9

%

 

 

 

29.6

%

Six months ended June 30, 2022

(in thousands)

Machine Clothing

Albany Engineered

Composites

Corporate expenses

and other

Total Company

Operating income/(loss) (GAAP)

$

104,505

 

$

10,730

 

$

(25,766

)

$

89,469

 

Interest, taxes, other income/(expense)

 

 

 

 

 

(22,025

)

 

(22,025

)

Net income/(loss) (GAAP)

 

104,505

 

 

10,730

 

 

(47,791

)

 

67,444

 

Interest expense, net

 

 

 

 

 

7,542

 

 

7,542

 

Income tax expense

 

 

 

 

 

25,456

 

 

25,456

 

Depreciation and amortization expense

 

9,803

 

 

23,489

 

 

1,582

 

 

34,874

 

EBITDA (non-GAAP)

 

114,308

 

 

34,219

 

 

(13,211

)

 

135,316

 

Restructuring expenses, net

 

213

 

 

 

 

13

 

 

226

 

Foreign currency revaluation (gains)/losses

 

(759

)

 

633

 

 

(11,011

)

 

(11,137

)

Dissolution of business relationships in Russia

 

1,787

 

 

 

 

781

 

 

2,568

 

Acquisition/integration costs

 

 

 

551

 

 

 

 

551

 

Pre-tax (income) attributable to noncontrolling interest

 

 

 

(457

)

 

 

 

(457

)

Adjusted EBITDA (non-GAAP)

$

115,549

 

$

34,946

 

$

(23,428

)

$

127,067

 

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

 

37.8

%

 

17.5

%

 

 

 

25.1

%

 

 

 

 

 

 

 

 

 

 

Six months ended June 30, 2021

(in thousands)

Machine Clothing

Albany Engineered

Composites

Corporate expenses

and other

Total Company

Operating income/(loss) (GAAP)

$

106,264

 

$

10,102

 

$

(24,581

)

$

91,785

 

Interest, taxes, other income/(expense)

 

 

 

 

 

(32,735

)

 

(32,735

)

Net income/(loss) (GAAP)

 

106,264

 

 

10,102

 

 

(57,316

)

 

59,050

 

Interest expense, net

 

 

 

 

 

7,787

 

 

7,787

 

Income tax expense

 

 

 

 

 

23,486

 

 

23,486

 

Depreciation and amortization expense

 

10,258

 

 

25,061

 

 

1,814

 

 

37,133

 

EBITDA (non-GAAP)

 

116,522

 

 

35,163

 

 

(24,229

)

 

127,456

 

Restructuring expenses, net

 

(58

)

 

41

 

 

60

 

 

43

 

Foreign currency revaluation (gains)/losses

 

1,415

 

 

332

 

 

341

 

 

2,088

 

Acquisition/integration costs

 

 

 

614

 

 

 

 

614

 

Pre-tax (income) attributable to noncontrolling interest

 

 

 

(111

)

 

 

 

(111

)

Adjusted EBITDA (non-GAAP)

$

117,879

 

$

36,039

 

$

(23,828

)

$

130,090

 

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

 

38.3

%

 

24.2

%

 

 

 

28.5

%

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

Three months ended June 30, 2022

(in thousands, except per share amounts

Pre tax

Amounts

Tax

Effect

After tax

Effect

Per share

Effect

Restructuring expenses, net

$

(28

)

$

(4

)

$

(24

)

$

0.00

 

Foreign currency revaluation (gains)/losses

 

(8,877

)

 

(2,492

)

 

(6,385

)

 

(0.20

)

Acquisition/integration costs

 

269

 

 

80

 

 

189

 

 

0.01

 

 

 

 

 

 

Three months ended June 30, 2021

(in thousands, except per share amounts)

Pre tax

Amounts

Tax

Effect

After tax

Effect

Per share

Effect

Restructuring expenses, net

$

(9

)

$

(3

)

$

(6

)

$

0.00

 

Foreign currency revaluation (gains)/losses

 

1,838

 

 

781

 

 

1,057

 

 

0.03

 

Acquisition/integration costs

 

300

 

 

90

 

 

210

 

 

0.01

 

 

 

 

 

 

Six months ended June 30, 2022

(in thousands, except per share amounts)

Pre tax

Amounts

Tax

Effect

After tax

Effect

Per share

Effect

Restructuring expenses, net

$

226

 

$

69

 

$

157

 

$

0.01

 

Foreign currency revaluation (gains)/losses

 

(11,137

)

 

(3,135

)

 

(8,002

)

 

(0.25

)

Dissolution of business relationships in Russia

 

2,568

 

 

332

 

 

2,236

 

 

0.07

 

Acquisition/integration costs

 

551

 

 

164

 

 

387

 

 

0.02

 

 

 

 

 

 

Six months ended June 30, 2021

(in thousands, except per share amounts)

Pre tax

Amounts

Tax

Effect

After tax

Effect

Per share

Effect

Restructuring expenses, net

$

43

 

$

12

 

$

31

 

$

0.00

 

Foreign currency revaluation (gains)/losses

 

2,088

 

 

646

 

 

1,442

 

 

0.04

 

Acquisition/integration costs

 

614

 

 

184

 

 

430

 

 

0.02

 

 

 

 

 

 

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

 

Three months ended June 30,

Six months ended June 30,

Per share amounts (Basic)

 

2022

 

 

2021

 

2022

 

2021

Earnings per share (GAAP)

$

1.25

 

$

0.97

$

2.12

 

$

1.82

Adjustments, after tax:

 

 

 

 

Restructuring expenses, net

 

 

 

 

0.01

 

 

Foreign currency revaluation (gains)/losses

 

(0.20

)

 

0.03

 

(0.25

)

 

0.04

Dissolution of business relationships in Russia

 

 

 

 

0.07

 

 

Acquisition/integration costs

 

0.01

 

 

0.01

 

0.02

 

 

0.02

Adjusted Earnings per share (non-GAAP)

$

1.06

 

$

1.01

$

1.97

 

$

1.88

The calculations of net debt are as follows:

(in thousands)

June 30, 2022

March 31, 2022

December 31, 2021

Current maturities of long-term debt

$

$

$

Long-term debt

 

485,000

 

427,000

 

350,000

Total debt

 

485,000

 

427,000

 

350,000

Cash and cash equivalents

 

320,870

 

307,415

 

302,036

Net debt (non-GAAP)

$

164,130

$

119,585

$

47,964

The calculation of net leverage ratio as of June 30, 2022 is as follows:

Total Company

 

Twelve months ended

Six months ended

Trailing twelve months ended

(in thousands)

December 31, 2021

June 30, 2021

June 30, 2022

June 30, 2022 (non-GAAP) (a)

Operating income/(loss) (GAAP)

$

178,011

 

$

91,785

 

$

89,469

 

$

175,695

 

Interest, taxes, other income/(expense)

 

(59,243

)

 

(32,735

)

 

(22,025

)

 

(48,533

)

Net income/(loss) (GAAP)

 

118,768

 

 

59,050

 

 

67,444

 

 

127,162

 

Interest expense, net

 

14,891

 

 

7,787

 

 

7,542

 

 

14,646

 

Income tax expense

 

47,163

 

 

23,486

 

 

25,456

 

 

49,133

 

Depreciation and amortization expense

 

74,255

 

 

37,133

 

 

34,874

 

 

71,996

 

EBITDA (non-GAAP)

 

255,077

 

 

127,456

 

 

135,316

 

 

262,937

 

Restructuring expenses, net

 

1,331

 

 

43

 

 

226

 

 

1,514

 

Foreign currency revaluation (gains)/losses

 

(1,442

)

 

2,088

 

 

(11,137

)

 

(14,667

)

Aviation Manufacturing Job Protection (AMJP) grant

 

(4,731

)

 

 

 

 

 

(4,731

)

Dissolution of business relationships in Russia

 

 

 

 

 

2,568

 

 

2,568

 

Acquisition/integration costs

 

1,166

 

 

614

 

 

551

 

 

1,103

 

Pre-tax (income) attributable to noncontrolling interest

 

(510

)

 

(111

)

 

(457

)

 

(856

)

Adjusted EBITDA (non-GAAP)

$

250,891

 

$

130,090

 

$

127,067

 

$

247,868

 

(in thousands, except for net leverage ratio)

June 30, 2022

Net debt (non-GAAP)

$

164,130

Trailing twelve months Adjusted EBITDA (non-GAAP)

 

247,868

Net leverage ratio (non-GAAP)

 

0.66

 

 

(a) Calculated as amounts incurred during the twelve months ended December 31, 2021, less those incurred during the six months ended June 30, 2021, plus those incurred during the six months ended June 30, 2022.

The tables below provide a reconciliation of forecasted full-year 2022 Adjusted EBITDA and Adjusted EPS (non-GAAP measures) to the comparable GAAP measures:

Forecast of Full Year 2022 Adjusted EBITDA

Machine Clothing

 

AEC

(in millions)

Low

High

 

Low

High

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

$

190

 

$

204

 

 

$

25

$

29

Income attributable to the noncontrolling interest

 

 

 

 

 

 

 

Interest expense, net

 

 

 

 

 

 

 

Income tax expense

 

 

 

 

 

 

 

Depreciation and amortization

 

19

 

 

20

 

 

 

48

 

49

EBITDA (non-GAAP)

 

209

 

 

224

 

 

 

73

 

78

Restructuring expenses, net (c)

 

 

 

 

 

 

 

Foreign currency revaluation (gains)/losses (c)

 

(1

)

 

(1

)

 

 

1

 

1

Acquisition/integration costs (c)

 

 

 

 

 

 

1

 

1

Dissolution of business relationships in Russia

 

2

 

 

2

 

 

 

 

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

 

 

 

 

 

 

 

Adjusted EBITDA (non-GAAP)

$

210

 

$

225

 

 

$

75

$

80

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

 

 

 

 

 

 

 

 

 

 

 

Forecast of Full Year 2022 Adjusted EBITDA

Total Company

 

 

 

(in millions)

Low

High

 

 

 

Net income attributable to the Company (GAAP)

$

109

 

$

118

 

 

 

 

Income attributable to the noncontrolling interest

 

 

 

 

 

 

 

Interest expense, net

 

14

 

 

15

 

 

 

 

Income tax expense

 

43

 

 

52

 

 

 

 

Depreciation and amortization

 

71

 

 

72

 

 

 

 

EBITDA (non-GAAP)

 

237

 

 

257

 

 

 

 

Restructuring expenses, net (c)

 

 

 

 

 

 

 

Foreign currency revaluation (gains)/losses (c)

 

(11

)

 

(11

)

 

 

 

Acquisition/integration costs (c)

 

1

 

 

1

 

 

 

 

Dissolution of business relationships in Russia

 

3

 

 

3

 

 

 

 

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

 

 

 

 

 

 

 

Adjusted EBITDA (non-GAAP)

$

230

 

$

250

 

 

 

 

 

 

 

 

 

 

 

Total Company

 

 

 

Forecast of Full Year 2022 Earnings per share (basic) (d)

Low

High

 

 

 

Net income attributable to the Company (GAAP)

$

3.45

 

$

3.75

 

 

 

 

Restructuring expenses, net (c)

 

0.01

 

 

0.01

 

 

 

 

Foreign currency revaluation (gains)/losses (c)

 

(0.25

)

 

(0.25

)

 

 

 

Dissolution of business relationships in Russia

 

0.07

 

 

0.07

 

 

 

 

Acquisition/integration costs (c)

 

0.02

 

 

0.02

 

 

 

 

Adjusted Earnings per share (non-GAAP)

$

3.30

 

$

3.60

 

 

 

 

 

 

 

 

 

 

(c) Due to the uncertainty of these items, we are unable to forecast these items for 2022

(d) Calculations based on weighted average shares outstanding estimate of approximately 31.4 million.

About Albany International Corp.

Albany International is a leading developer and manufacturer of engineered components, using advanced materials processing and automation capabilities, with two core businesses. Machine Clothing is the world’s leading producer of custom-designed, consumable fabrics and process belts essential for the manufacture of all grades of paper products. Albany Engineered Composites is a growing designer and manufacturer of advanced materials-based engineered components for demanding aerospace applications, supporting both commercial and military platforms.

Contacts

John Hobbs

603-330-5897

john.hobbs@albint.com

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