Form 8-K - Current report

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			News release dated July 2 6 , 2023 reporting second-quarter 2023 financial results.
104			Inline XBRL cover page.

Exhibit 99.1

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,
	2023		2022		2023		2022
Net revenues	$	274,123	$	261,369	$	543,219	$	505,538
Cost of goods sold	171,419		160,776		341,197		313,341

Gross profit	102,704		100,593		202,022		192,197
Selling, general, and administrative expenses	46,760		39,745		95,239		82,452
Technical and research expenses	10,318		10,161		20,595		20,050
Restructuring expenses, net	125		(28)		145		226

Operating income	45,501		50,715		86,043		89,469
Interest expense/(income), net	3,106		3,933		6,396		7,542


Other (income)/expense, net	(4,511)		(7,045)		(4,966)		(10,973)

Income before income taxes	46,906		53,827		84,613		92,900
Income tax expense	20,080		14,458		30,701		25,456

Net income	26,826		39,369		53,912		67,444
Net income attributable to the noncontrolling interest	154		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:
Basic	31,174		31,268		31,152		31,571

Diluted	31,269		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, 2023		December 31, 2022
ASSETS
Cash and cash equivalents	$	300,916	$	291,776
Accounts receivable, net	242,189		200,018
Contract assets, net	145,324		148,695
Inventories	151,360		139,050
Income taxes prepaid and receivable	8,473		7,938
Prepaid expenses and other current assets	55,538		50,962
Total current assets	$	903,800	$	838,439

Property, plant and equipment, net	451,986		445,658
Intangibles, net	31,842		33,811
Goodwill	179,257		178,217
Deferred income taxes	14,491		15,196
Noncurrent receivables, net	26,568		27,913
Other assets	99,204		103,021
Total assets	$	1,707,148	$	1,642,255

LIABILITIES AND SHAREHOLDERS' EQUITY
Accounts payable	$	65,812	$	69,707
Accrued liabilities	104,398		126,385
Current maturities of long-term debt	—		—
Income taxes payable	10,905		15,224
Total current liabilities	181,115		211,316

Long-term debt	487,000		439,000
Other noncurrent liabilities	107,781		108,758
Deferred taxes and other liabilities	15,533		15,638
Total liabilities	791,429		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 2022	41		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 capital	443,556		441,540
Retained earnings	969,292		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 adjustment	15,194		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' equity	910,457		863,049
Noncontrolling interest	5,262		4,494
Total equity	915,719		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,
		2023		2022
OPERATING ACTIVITIES
Net income		$	53,912	$	67,444
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation		32,299		31,276
Amortization		3,018		3,598
Change in deferred taxes and other liabilities		1,787		2,596
Impairment of property, plant, equipment, and inventory		532		2,662
Non-cash interest expense		565		561
Compensation and benefits paid or payable in Class A Common Stock		2,274		2,447
Provision for credit losses from uncollected receivables and contract assets		493		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 assets		4,606		(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 receivables		1,705		1,864
Other noncurrent liabilities		(1,922)		(3,252)
Other, net		2,881		4,784
Net cash provided by operating activities		14,675		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 borrowings		61,000		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		—		7
Dividends paid		(15,570)		(13,399)
Net cash provided by financing activities		29,294		35,404

Effect of exchange rate changes on cash and cash equivalents		142		(18,258)

Increase in cash and cash equivalents		9,140		18,834
Cash and cash equivalents at beginning of period		291,776		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 rates		Q2 2023 revenues on same basis as Q2 2022 currency translation rates		Net 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 Composites	114,906		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 rates		YTD 2023 revenues on same basis as 2022 currency translation rates		Net 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 Composites	230,780		(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 2023		Gross profit, Q2 2022		Gross profit margin, Q2 2022
Machine Clothing	$	80,919	50.8	%	$	78,857	52.0	%
Albany Engineered Composites	21,785		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 2023		Gross profit, YTD 2022		Gross profit margin, YTD 2022
Machine Clothing	$	158,774	50.8	%	$	158,202	51.7	%
Albany Engineered Composites	43,248		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 Clothing			Albany 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 expense	4,931			12,072			947		17,950
EBITDA (non-GAAP)	58,657			20,740			(11,435)		67,962
Restructuring expenses, net	125			—			—		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 Clothing			Albany 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 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 (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 Clothing			Albany 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 expense	9,706			23,736			1,875		35,317
EBITDA (non-GAAP)	112,396			41,822			(27,892)		126,326
Restructuring expenses, net	145			—			—		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 Clothing			Albany 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 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 (a)	(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 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 costs	634		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 costs	269		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 costs	903		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 Russia	2,568		332		2,236		0.07
Acquisition/integration costs	551		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)	2023		2022		2023		2022
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 restructuring	0.10		—		0.10		—
Acquisition/ integration costs	0.02		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, 2023		December 31, 2022		June 30, 2022
Current maturities of long-term debt	$	—	$	—	$	—
Long-term debt	487,000		439,000		485,000
Total debt	487,000		439,000		485,000
Cash and cash equivalents	300,916		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 ended				Trailing twelve months ended
(in thousands)	December 31, 2022		June 30, 2022		June 30, 2023		June 30, 2023 (non-GAAP) (b)


Net income/(loss) (GAAP)	$	96,508	$	67,444	$	53,912	$	82,976
Interest expense/(income), net	14,000		7,542		6,396		12,854
Income tax expense	35,472		25,456		30,701		40,717
Depreciation and amortization expense	69,049		34,874		35,317		69,492
EBITDA (non-GAAP)	215,029		135,316		126,326		206,039
Restructuring expenses, net	106		226		145		25
Foreign currency revaluation (gains)/losses (a)	(9,829)		(11,137)		(1,599)		(291)
Dissolution of business relationships in Russia	2,275		2,568		—		(293)
Pension settlement expense	49,128		—		—		49,128
IP address sales	(3,420)		—		—		(3,420)
Acquisition/integration costs	1,057		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 EBITDA	Machine Clothing				AEC
(in millions)	Low		High		Low		High
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 amortization	20		20		48		49
EBITDA (non-GAAP)	207		222		81		91
Restructuring expenses, net (d)	—		—		—		—
Foreign currency revaluation (gains)/losses (d)	3		3		—		—
Acquisition/integration costs (d)	—		—		1		1

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 EBITDA	Total Company
(in millions)	Low		High
Net income attributable to the Company (GAAP)	$	96	$	115
Income attributable to the noncontrolling interest	—		—
Interest expense/(income), net	16		15
Income tax expense	47		56
Depreciation and amortization	74		72
EBITDA (non-GAAP)	233		258
Restructuring expenses, net (d)	—		—
Foreign currency revaluation (gains)/losses (d)	(2)		(2)
Acquisition/integration costs (d)	1		1

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)	Low		High
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 restructuring	0.10		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

Cover Page	Jul. 26, 2023
Document Type	8-K
Document Period End Date	Jul. 26, 2023
Entity File Number	1-10026
Entity Registrant Name	ALBANY INTERNATIONAL CORP.
Entity Incorporation, State or Country Code	DE
Entity Address, Address Line One	216 Airport Drive
Entity Tax Identification Number	14-0462060
Entity Address, Postal Zip Code	03867
City Area Code	603
Local Phone Number	330-5850
Entity Emerging Growth Company	false
Entity Central Index Key	0000819793
Amendment Flag	false
Written Communications	false
Soliciting Material	false
Pre-commencement Tender Offer	false
Pre-commencement Issuer Tender Offer	false
Entity Address, City or Town	Rochester
Entity Address, State or Province	NH
Class B Common Stock
Security Exchange Name	NYSE
Class A Common Stock
Trading Symbol	AIN
Security Exchange Name	NYSE
Title of 12(b) Security	Class A Common Stock, $0.001 par value per share