ain-20230726
216 Airport DriveRochesterNew HampshireFALSE0000819793NYSENYSE00008197932023-07-262023-07-260000819793ain:ClassACommonStockMember2023-07-262023-07-260000819793ain:ClassBCommonStockMember2023-07-262023-07-26

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 OR 15(d) of the Securities Exchange Act of 1934
Date of Report:    July 26, 2023
(Date of earliest event reported)
ALBANY INTERNATIONAL CORP.
(Exact name of registrant as specified in its charter)
Delaware
1-10026
14-0462060
(State or other jurisdiction
of incorporation)
(Commission
File Number)
(I.R.S Employer
Identification No.)
216 Airport Drive Rochester, New Hampshire
03867
(Address of principal executive offices)
(Zip Code)
Registrant’s telephone number, including area code       603-330-5850
None
(Former name or former address, if changed since last report.)
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
    Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
    Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
    Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
    Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
Securities registered pursuant to Section 12(b) of the Act:
Title of each class
Trading
Symbol(s)
Name of each exchange
on which registered
Class A Common Stock, $0.001 par value per share
AIN
The New York Stock Exchange (NYSE)
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act 1933 (230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (240.12b-2 of this chapter).
    Emerging growth company
¨    If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act





Item 2.02.  Results of Operations and Financial Condition.
On July 26, 2023 Albany International issued a news release reporting second quarter 2023 financial results. The Company will host a webcast to discuss earnings at 9:00 a.m. Eastern Time on Thursday July 27, 2023. The news release is furnished as Exhibit 99.1 to this report.
Item 9.01. Financial Statements and Exhibits.
(d)    Exhibits. The following exhibit is being furnished herewith:
99.1    News release dated July 26, 2023 reporting second-quarter 2023 financial results.



Signature
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
ALBANY INTERNATIONAL CORP.
By:
/s/ Robert D. Starr
Name:
Robert D. Starr
Title:
Executive Vice President and Chief Financial Officer
(Principal Financial Officer)
Date: July 26, 2023


EXHIBIT INDEX
Exhibit No.
Description
99.1
104
Inline XBRL cover page.





Exhibit 99.1

https://cdn.kscope.io/58bf951caaba7a2b92b7ddf3b70639e9-image.jpg
Albany International Reports Second-Quarter 2023 Results
ROCHESTER, N.H.--(BUSINESS WIRE)--July 26, 2023--Albany International Corp. (NYSE:AIN) today reported operating results for its second quarter of 2023, which ended June 30, 2023.

"We are reporting another strong quarter of operational results,” said Albany International President and Chief Executive Officer, Bill Higgins. "Our revenue of $274 million was up $13 million or approximately 5% year-over-year with growth across both business segments. I'm particularly pleased that revenue growth and operational execution in our businesses allows us to increase our guidance for 2023.

"We continue to advance our strategies for long-term value creation. During the quarter we announced our agreement to acquire Heimbach Group, a European producer of paper machine clothing which we expect to close in the second half of this year. With Heimbach, our broadened footprint will allow us to better serve customers in Europe and Asia. It's an exciting opportunity to create significant value for our shareholders as well as for our customers.

"Our Albany Engineered Composites team is on track to meeting short term growth and value deliverables. Longer term we are engaged with customers, demonstrating the capabilities of our proprietary 3D woven composites technology for applications in next-generation airframe, wing, and engine designs. We are investing our time and effort today to position for these long-term program opportunities," concluded Higgins.


For the second quarter ended June 30, 2023:
Net revenues were $274.1 million, up 4.9%, or 4.8% after adjusting for currency translation, when compared to the prior year, due to year-over-year growth in revenues related to commercial programs within the Engineered Composites segment and revenue growth in all paper machine clothing grades within the Machine Clothing segment.
Gross profit of $102.7 million was 2.1% higher than the $100.6 million reported for the same period of 2022; overall gross margin declined by 100 basis points, primarily due to higher contribution from the lower-margin Engineered Composites segment.
Selling, Technical, General, and Research (STG&R) expenses were $57.1 million, compared to $49.9 million in the same period of 2022; the increase was driven by executive transition costs and professional service fees.
Operating income was $45.5 million, compared to $50.7 million in the prior year, a decrease of 10.3%.
Effective tax rate for the quarter was 42.8%, compared to 26.9% for the second quarter of 2022. The year-over-year increase was mainly due to unfavorable discrete tax adjustments recognized in the second quarter of 2023.
Net income attributable to the Company was $26.7 million ($0.86 per share), compared to $39.2 million ($1.25 per share) in the second quarter of 2022; Adjusted earnings per share (or Adjusted EPS, a non-GAAP measure) was $0.90 per share, compared to $1.06 per share for the same period last year.
Adjusted EBITDA (a non-GAAP measure) was $65.0 million, compared to $66.0 million in the second quarter of 2022, a decrease of 1.5%.

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











Outlook for Full-Year 2023
The Company has updated its guidance for the full year of 2023 as follows:
Total company revenue between $1.040 and $1.070 billion, up $30 million on the low end and $20 million on the high end of the range;
Effective income tax rate, including tax adjustments, between 32% and 33%, implying an effective tax rate between 28% and 30% in the second half of 2023;
Total company depreciation and amortization between $72 and $74 million;
Capital expenditures in the range of $85 to $95 million, $5 million lower;
GAAP earnings per share between $3.07 and $3.67, up $0.02 on the low end and $0.12 on the high end of the range;
Adjusted earnings per share between $3.15 and $3.75, raised by $0.05 on the low end and $0.15 on the high end of the range;
Total company Adjusted EBITDA between $232 and $257 million, up $7 million on the low end of the range and $2 million on the top end of the range;
Machine Clothing revenue between $610 and $620 million, increasing $20 million on the low end and $10 million on the high end of the range;
Machine Clothing Adjusted EBITDA between $210 and $225 million, up $5 million on the low end of the range;
Albany Engineered Composites (AEC) revenue between $430 and $450 million, up $10 million; and
Albany Engineered Composites Adjusted EBITDA between $82 and $92 million, up $2 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,
2023202220232022
Net revenues$274,123 $261,369 $543,219 $505,538 
Cost of goods sold171,419 160,776 341,197 313,341 
Gross profit102,704 100,593 202,022 192,197 
Selling, general, and administrative expenses46,760 39,745 95,239 82,452 
Technical and research expenses10,318 10,161 20,595 20,050 
Restructuring expenses, net125 (28)145 226 
Operating income45,501 50,715 86,043 89,469 
Interest expense/(income), net3,106 3,933 6,396 7,542 
Other (income)/expense, net(4,511)(7,045)(4,966)(10,973)
Income before income taxes46,906 53,827 84,613 92,900 
Income tax expense20,080 14,458 30,701 25,456 
Net income26,826 39,369 53,912 67,444 
Net income attributable to the noncontrolling interest154 168 351 506 
Net income attributable to the Company$26,672 $39,201 $53,561 $66,938 
Earnings per share attributable to Company shareholders - Basic$0.86 $1.25 $1.72 $2.12 
Earnings per share attributable to Company shareholders - Diluted$0.85 $1.25 $1.71 $2.11 
Shares of the Company used in computing earnings per share:
Basic31,174 31,268 31,152 31,571 
Diluted31,269 31,378 31,243 31,668 
Dividends declared per Class A share$0.25 $0.21 $0.50 $0.42 



ALBANY INTERNATIONAL CORP.
CONSOLIDATED BALANCE SHEETS
(in thousands, except share data)
(unaudited)
June 30, 2023December 31, 2022
ASSETS
Cash and cash equivalents$300,916 $291,776 
Accounts receivable, net242,189 200,018 
Contract assets, net145,324 148,695 
Inventories151,360 139,050 
Income taxes prepaid and receivable8,473 7,938 
Prepaid expenses and other current assets55,538 50,962 
Total current assets$903,800 $838,439 
Property, plant and equipment, net451,986 445,658 
Intangibles, net31,842 33,811 
Goodwill179,257 178,217 
Deferred income taxes14,491 15,196 
Noncurrent receivables, net26,568 27,913 
Other assets99,204 103,021 
Total assets$1,707,148 $1,642,255 
LIABILITIES AND SHAREHOLDERS' EQUITY
Accounts payable$65,812 $69,707 
Accrued liabilities104,398 126,385 
Current maturities of long-term debt— — 
Income taxes payable10,905 15,224 
Total current liabilities181,115 211,316 
Long-term debt487,000 439,000 
Other noncurrent liabilities107,781 108,758 
Deferred taxes and other liabilities15,533 15,638 
Total liabilities791,429 774,712 
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 $.001 per share; authorized 100,000,000 shares; 40,842,023  issued in 2023 and 40,785,434 in 202241 41 
Class B Common Stock, par value $.001 per share; authorized 25,000,000 shares; none issued and outstanding in 2022; shares eliminated in 2023— — 
Additional paid in capital443,556 441,540 
Retained earnings969,292 931,318 
Accumulated items of other comprehensive income:
Translation adjustments(135,538)(146,851)
Pension and postretirement liability adjustments(17,423)(15,783)
Derivative valuation adjustment15,194 17,707 
Treasury stock (Class A), at cost; 9,662,562 shares in 2023 and 9,674,542 shares in 2022(364,665)(364,923)
Total Company shareholders' equity910,457 863,049 
Noncontrolling interest5,262 4,494 
Total equity915,719 867,543 
Total liabilities and shareholders' equity$1,707,148 $1,642,255 



ALBANY INTERNATIONAL CORP.
CONSOLIDATED STATEMENTS OF CASH FLOWS
(in thousands)
(unaudited)
Six Months Ended June 30,
20232022
OPERATING ACTIVITIES
Net income$53,912 $67,444 
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation32,299 31,276 
Amortization3,018 3,598 
Change in deferred taxes and other liabilities1,787 2,596 
Impairment of property, plant, equipment, and inventory532 2,662 
Non-cash interest expense565 561 
Compensation and benefits paid or payable in Class A Common Stock2,274 2,447 
Provision for credit losses from uncollected receivables and contract assets493 1,326 
Foreign currency remeasurement (gain) on intercompany loans(3,198)(1,260)
Fair value adjustment on foreign currency options(123)(381)
Changes in operating assets and liabilities that provided/(used) cash:
Accounts receivable(40,131)(14,407)
Contract assets4,606 (23,868)
Inventories(9,174)(21,135)
Prepaid expenses and other current assets(2,700)(4,474)
Income taxes prepaid and receivable(381)(60)
Accounts payable(5,255)7,476 
Accrued liabilities(21,570)(11,745)
Income taxes payable(4,943)(7,739)
Noncurrent receivables1,705 1,864 
Other noncurrent liabilities(1,922)(3,252)
Other, net2,881 4,784 
Net cash provided by operating activities14,675 37,713 
INVESTING ACTIVITIES
Purchases of property, plant and equipment(34,899)(35,659)
Purchased software(72)(366)
Net cash used in investing activities(34,971)(36,025)
FINANCING ACTIVITIES
Proceeds from borrowings61,000 135,000 
Principal payments on debt(13,000)— 
Principal payments on finance lease liabilities— (654)
Purchase of Treasury shares— (84,780)
Taxes paid in lieu of share issuance(3,136)(770)
Proceeds from options exercised— 
Dividends paid(15,570)(13,399)
Net cash provided by financing activities29,294 35,404 
Effect of exchange rate changes on cash and cash equivalents142 (18,258)
Increase in cash and cash equivalents9,140 18,834 
Cash and cash equivalents at beginning of period291,776 302,036 
Cash and cash equivalents at end of period$300,916 $320,870 





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, Q2 2023(Decrease)/increase due to changes in currency translation ratesQ2 2023 revenues on same basis as Q2 2022 currency translation ratesNet revenues as reported, Q2 2022% Change compared to Q2 2022, excluding currency rate effects
Machine Clothing$159,217 $(878)$160,095 $151,670 5.6 %
Albany Engineered Composites114,906 1,072 113,834 109,699 3.8 %
Consolidated total$274,123 $194 $273,929 $261,369 4.8 %
(in thousands, except percentages)Net revenues as reported, YTD 2023(Decrease) due to changes in currency translation ratesYTD 2023 revenues on same basis as 2022 currency translation ratesNet revenues as reported, YTD 2022% Change compared to 2022, excluding currency rate effects
Machine Clothing$312,439 $(4,346)$316,785 $305,732 3.6 %
Albany Engineered Composites230,780 (424)231,204 199,806 15.7 %
Consolidated total$543,219 $(4,770)$547,989 $505,538 8.4 %


The following table presents Gross profit and Gross profit margin:
(in thousands, except percentages)Gross profit,
Q2 2023
Gross profit margin, Q2 2023Gross profit,
Q2 2022
Gross profit margin, Q2 2022
Machine Clothing$80,919 50.8 %$78,857 52.0 %
Albany Engineered Composites21,785 19.0 %21,736 19.8 %
Consolidated total$102,704 37.5 %$100,593 38.5 %
(in thousands, except percentages)Gross profit,
YTD 2023
Gross profit margin, YTD 2023Gross profit,
YTD 2022
Gross profit margin, YTD 2022
Machine Clothing$158,774 50.8 %$158,202 51.7 %
Albany Engineered Composites43,248 18.7 %33,995 17.0 %
Consolidated total$202,022 37.2 %$192,197 38.0 %





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 June 30, 2023
(in thousands)Machine ClothingAlbany Engineered
Composites
Corporate expenses
and other
Total Company
Net income/(loss) (GAAP)$53,726 $8,668 $(35,568)$26,826 
Interest expense/(income), net— — 3,106 3,106 
Income tax expense— — 20,080 20,080 
Depreciation and amortization expense4,931 12,072 947 17,950 
EBITDA (non-GAAP)58,657 20,740 (11,435)67,962 
Restructuring expenses, net125 — — 125 
Foreign currency revaluation (gains)/losses (a)566 133 (4,185)(3,486)
Acquisition/integration costs— 271 363 634 
Pre-tax (income) attributable to noncontrolling interest — (212)— (212)
Adjusted EBITDA (non-GAAP)$59,348 $20,932 $(15,257)$65,023 
Adjusted EBITDA margin (Adjusted EBITDA divided by Net revenues) (non-GAAP)37.3 %18.2 % 23.7 %
Three months ended June 30, 2022
(in thousands)Machine ClothingAlbany Engineered
Composites
Corporate expenses
and other
Total Company
Net income/(loss) (GAAP)$54,861 $9,535 $(25,027)$39,369 
Interest expense/(income), net— — 3,933 3,933 
Income tax expense— — 14,458 14,458 
Depreciation and amortization expense4,880 11,450 782 17,112 
EBITDA (non-GAAP)59,741 20,985 (5,854)74,872 
Restructuring expenses, net(30)— (28)
Foreign currency revaluation (gains)/losses (a)(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 revenues) (non-GAAP)38.2 %19.4 % 25.3 %



Six months ended June 30, 2023
(in thousands)Machine ClothingAlbany Engineered
Composites
Corporate expenses
and other
Total Company
Net income/(loss) (GAAP)$102,690 $18,086 $(66,864)$53,912 
Interest expense/(income), net— — 6,396 6,396 
Income tax expense— — 30,701 30,701 
Depreciation and amortization expense9,706 23,736 1,875 35,317 
EBITDA (non-GAAP)112,396 41,822 (27,892)126,326 
Restructuring expenses, net145 — — 145 
Foreign currency revaluation (gains)/losses (a)2,526 — (4,125)(1,599)
Acquisition/integration costs— 540 363 903 
Pre-tax (income) attributable to noncontrolling interest — (401)— (401)
Adjusted EBITDA (non-GAAP)$115,067 $41,961 $(31,654)$125,374 
Adjusted EBITDA margin (Adjusted EBITDA divided by Net revenues-non-GAAP)36.8 %18.2 % 23.1 %
Six months ended June 30, 2022
(in thousands)Machine ClothingAlbany Engineered
Composites
Corporate expenses
and other
Total Company
Net income/(loss) (GAAP)$104,505 $10,730 $(47,791)$67,444 
Interest expense/(income), net  7,542 7,542 
Income tax expense— — 25,456 25,456 
Depreciation and amortization expense9,803 23,489 1,582 34,874 
EBITDA (non-GAAP)114,308 34,219 (13,211)135,316 
Restructuring expenses, net213 — 13 226 
Foreign currency revaluation (gains)/losses (a)(759)633 (11,011)(11,137)
Dissolution of business relationships in Russia1,787 — 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 revenues-non-GAAP)37.8 %17.5 % 25.1 %







Per share impact of the adjustments to earnings per share are as follows:
Three months ended June 30, 2023
(in thousands, except per share amounts)
Pre tax
Amounts
Tax
Effect
After tax
Effect
Per share
Effect
Restructuring expenses, net$125 $31 $94 $0.00 
Foreign currency revaluation (gains)/losses (a)(3,486)(1,034)(2,452)(0.08)
Withholding tax related to internal restructuring— (3,026)3,026 0.10 
Acquisition/integration costs634 158 476 0.02 
Three months ended June 30, 2022
(in thousands, except per share amounts)
Pre tax
Amounts
Tax
Effect
After tax
Effect
Per share
Effect
Restructuring expenses, net$(28)$(4)$(24)$0.00 
Foreign currency revaluation (gains)/losses (a)(8,877)(2,492)(6,385)(0.20)
Dissolution of business relationships in Russia— — — 0.00 
Acquisition/integration costs269 80 189 0.01 
Six months ended June 30, 2023
(in thousands, except per share amounts)
Pre tax
Amounts
Tax
Effect
After tax
Effect
Per share
Effect
Restructuring expenses, net$145 $35 $110 $0.00 
Foreign currency revaluation (gains)/losses (a)(1,599)(481)(1,118)(0.04)
Withholding tax related to internal restructuring— (3,026)3,026 0.10 
Acquisition/integration costs903 235 668 0.02 
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 (a)(11,137)(3,135)(8,002)(0.25)
Dissolution of business relationships in Russia2,568 332 2,236 0.07 
Acquisition/integration costs551 164 387 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)2023202220232022
Earnings per share (GAAP)$0.86 $1.25 $1.72 $2.12 
Adjustments, after tax:
Restructuring expenses, net —  0.01 
Foreign currency revaluation (gains)/losses (a)(0.08)(0.20)(0.04)(0.25)
Withholding tax related to internal restructuring0.10 — 0.10 — 
Acquisition/ integration costs0.02 0.01 0.02 0.02 
Dissolution of business relationships in Russia —  0.07 
Adjusted Earnings per share (non-GAAP)$0.90 $1.06 $1.80 $1.97 
















The calculations of net debt are as follows:
(in thousands)June 30, 2023December 31, 2022June 30, 2022
Current maturities of long-term debt$— $— $— 
Long-term debt487,000 439,000 485,000 
Total debt487,000 439,000 485,000 
Cash and cash equivalents300,916 291,776 320,870 
Net debt (non-GAAP)$186,084 $147,224 $164,130 
The calculation of net leverage ratio as of June 30, 2023 is as follows:
Total Company
Twelve months ended Six months endedTrailing twelve months ended
(in thousands)December 31, 2022June 30, 2022June 30, 2023June 30, 2023 (non-GAAP) (b)
Net income/(loss) (GAAP)$96,508 $67,444 $53,912 $82,976 
Interest expense/(income), net14,000 7,542 6,396 12,854 
Income tax expense35,472 25,456 30,701 40,717 
Depreciation and amortization expense69,049 34,874 35,317 69,492 
EBITDA (non-GAAP)215,029 135,316 126,326 206,039 
Restructuring expenses, net106 226 145 25 
Foreign currency revaluation (gains)/losses (a)(9,829)(11,137)(1,599)(291)
Dissolution of business relationships in Russia2,275 2,568 — (293)
Pension settlement expense49,128 — — 49,128 
IP address sales(3,420)— — (3,420)
Acquisition/integration costs1,057 551 903 1,409 
Pre-tax (income) attributable to noncontrolling interest(817)(457)(401)(761)
Adjusted EBITDA (non-GAAP)$253,529 $127,067 $125,374 $251,836 
(in thousands, except for net leverage ratio)June 30, 2023
Net debt (non-GAAP)$186,084 
Trailing twelve months Adjusted EBITDA (non-GAAP)251,836 
Net leverage ratio (non-GAAP)0.74 
(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, 2022, less those incurred during the six months ended June 30, 2022, plus those incurred during the six months ended June 30, 2023.



The tables below provide a reconciliation of forecasted full-year 2023 Adjusted EBITDA and Adjusted EPS (non-GAAP measures) to the comparable GAAP measures.
Forecast of Full Year 2023 Adjusted EBITDAMachine ClothingAEC
(in millions)LowHighLowHigh
Net income attributable to the Company (GAAP) (c)$187 $202 $33 $42 
Income attributable to the noncontrolling interest— — — — 
Interest expense/(income), net— — — — 
Income tax expense— — — — 
Depreciation and amortization20 20 48 49 
EBITDA (non-GAAP)207 222 81 91 
Restructuring expenses, net (d)— — — — 
Foreign currency revaluation (gains)/losses (d)— — 
Acquisition/integration costs (d)— — 
Pre-tax (income)/loss attributable to non-controlling interest— — — — 
Adjusted EBITDA (non-GAAP)$210 $225 $82 $92 
(c) Interest, Other income/expense and Income taxes are not allocated to the business segments
Forecast of Full Year 2023 Adjusted EBITDATotal Company
(in millions)LowHigh
Net income attributable to the Company (GAAP)$96 $115 
Income attributable to the noncontrolling interest— — 
Interest expense/(income), net16 15 
Income tax expense47 56 
Depreciation and amortization74 72 
EBITDA (non-GAAP)233 258 
Restructuring expenses, net (d)— — 
Foreign currency revaluation (gains)/losses (d)(2)(2)
Acquisition/integration costs (d)
Pre-tax (income)/loss attributable to non-controlling interest— — 
Adjusted EBITDA (non-GAAP)$232 $257 
Total Company
Forecast of Full Year 2023 Earnings per share (basic) (e)LowHigh
Net income attributable to the Company (GAAP)$3.07 $3.67 
Restructuring expenses, net (d)— — 
Foreign currency revaluation (gains)/losses (d)(0.04)(0.04)
Withholding tax related to internal restructuring0.10 0.10 
Acquisition/integration costs (d)0.02 0.02 
Adjusted Earnings per share (non-GAAP)$3.15 $3.75 
(d)  Due to the uncertainty of these items, we are unable to forecast these items for 2023
(e) Calculations based on weighted average shares outstanding estimate of approximately 31.2 million



About Albany International Corp.
Albany International is a leading developer and manufacturer of engineered components, using advanced materials processing and automation capabilities, with two core businesses. Machine Clothing is the world’s leading producer of custom-designed, consumable belts essential for the manufacture of 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. Albany International is headquartered in Rochester, New Hampshire, operates 23 facilities in 11 countries, employs more than 4,200 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 earnings per share (or Adjusted 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 EPS are performance measures that relate to the Company’s continuing operations. The Company defines Adjusted EBITDA as EBITDA excluding costs or benefits that are not reflective of the Company’s ongoing or expected future operational performance. Such excluded costs or benefits do not consist of normal, recurring cash items necessary to generate revenues or operate our business. Adjusted EBITDA margin represents Adjusted EBITDA expressed as a percentage of net revenues.

The Company defines Adjusted EPS as basic 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 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, the ongoing COVID-19 pandemic and the Russia-Ukraine military conflicts; paper-industry trends and conditions during 2023 and in future years; expectations in 2023 and in future periods of revenues, EBITDA, Adjusted EBITDA (both in dollars and as a percentage of net revenues), Adjusted 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.

Contacts
John Hobbs
603-330-5897
john.hobbs@albint.com