Albany International Reports Fourth-Quarter 2019 Results

Albany International Corp. (NYSE:AIN) today reported operating results for its fourth quarter of 2019, which ended December 31, 2019.

“Albany finished 2019 with another quarter of strong results thanks to excellent performance and execution in both business segments,” said Albany International President and Chief Executive Officer Bill Higgins. “I thank our employees across the globe for their contribution to the growth and success of the company during 2019.”

“Our 2019 performance clearly demonstrates that the strategy we’ve pursued for many years is working. We continue to drive improvements in Machine Clothing with superb results, and although the Boeing 737 MAX delay slows our growth in Engineered Composites, we believe the long-term opportunity for advanced composites is exciting. We plan to continue investing to advance our technology leadership and to exploit 3D woven technology in new applications to grow the company.”

For the fourth quarter ended December 31, 2019:

  • Net sales were $257.7 million, an increase of 2.4% compared to the prior year, driven by solid sales growth of 6.1% in Engineered Composites and stable sales in the Machine Clothing segment.
  • Gross profit of $96.6 million was up from $87.9 million for the same period of 2018, an increase of 9.9%. The increase was driven by an increase in total company net sales and by gross margin expansion in both segments.
  • Operating income was $43.6 million, compared to $37.4 million in the prior year, an increase of 16.5%, driven by higher gross profit offset somewhat by higher STG&R expenses. These expenses increased as the result of the revaluation of nonfunctional-currency assets and liabilities, and expenses related to the acquisition of CirComp GmbH.
  • The effective tax rate was 24.8%, compared to 37.9% during the same period last year. The effective tax rates include discrete tax items and a change in the estimated income tax rate which reduced fourth-quarter Income tax expense by $1.3 million in 2019, while the same factors increased the expense by $1.8 million in the same quarter of 2018.
  • Net income attributable to the Company was $29.1 million ($0.90 per share), compared to $17.6 million ($0.55 per share) in Q4 2018. Adjusted earnings per share (or Adjusted EPS, a non-GAAP measure) was $0.97 per share, compared to $0.69 per share in Q4 2018.
  • Adjusted EBITDA (a non-GAAP measure) was $63.9 million, compared to $57.7 million in Q4 2018, an increase of 10.8%.

For the year ended December 31, 2019:

  • Net sales were $1,054.1 million, an increase of 7.3% compared to the prior year’s $982.5 million, driven by solid sales growth of 22.2% in Engineered Composites offset somewhat by a 1.7% sales decline in the Machine Clothing segment.
  • Gross profit of $397.7 million was up from $349.7 million for the same period of 2018, an increase of 13.7%. The increase was driven by higher net sales in Engineered Composites and by gross margin expansion in both segments.
  • Operating income was $193.6 million, compared to $137.4 million in the prior year. The increase was driven by higher gross profit and lower Restructuring expenses in 2019 offset somewhat by higher STG&R expenses.
  • The effective tax rate was 25.2%, compared to 28.0% during the same period last year. The effective tax rates include discrete tax items and finalization of the 2019 income tax rate which reduced 2019 Income tax expense by $5.0 million, while the same factors decreased the 2018 expense by $3.8 million.
  • Net income attributable to the Company was $132.4 million ($4.10 per share), compared to $82.9 million ($2.57 per share) in 2018. Adjusted earnings per share (or Adjusted EPS, a non-GAAP measure) was $4.11 per share in 2019, compared to $2.94 per share in 2018.
  • Adjusted EBITDA (a non-GAAP measure) was $265.4 million, compared to $228.9 million in Q4 2018, an increase of 15.9%.

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

“As our guidance indicates, we are expecting another strong year for Albany. We enter 2020 in excellent financial health with strong operations focused on expanding profitability and the long-term growth of our business segments,” said Albany International Chief Financial Officer and Treasurer Stephen Nolan. “Our Machine Clothing segment is expected to deliver another good year and to continue to deliver strong margins consistent with the expectation set on our last earnings call. Our guidance for the segment takes into account a slightly softer paper machine clothing market in 2020 and a modest impact due to the disruption to our Chinese facilities caused by the recent coronavirus outbreak. Meanwhile, our Engineered Composites segment is expected to continue to deliver strong margins and sales growth on programs unrelated to the 737 MAX. That said, our business will inevitably be impacted by Boeing’s production pause on the 737 MAX program. Our outlook for 2020 takes into account a reduction in demand for the components we produce for the LEAP engine that powers the 737 MAX aircraft. We will make any further necessary adjustments to our plans and outlook as we gain clarity on the expected timing and pace of demand for those components after Boeing resumes 737 MAX production.”

Outlook for Full-Year 2020

Albany International is issuing its financial guidance for the full-year 2020:

  • Machine Clothing revenue of $570 to $590 million;
  • Machine Clothing Adjusted EBITDA of between $190 and $200 million;
  • Engineered Composites revenue between $400 to $420 million;
  • Engineered Composites Adjusted EBITDA of $80 to $90 million;
  • Total company revenue of between $970 million and $1.010 billion;
  • Total company Adjusted EBITDA of $210 to $235 million;
  • Effective income tax rate of 26% to 28%;
  • Total company depreciation and amortization of between $75 and $80 million;
  • Capital expenditures in the range of $75 to $85 million;
  • GAAP Earnings per share of between $2.68 and $3.08; and
  • Adjusted earnings per share between $2.75 and $3.15.

ALBANY INTERNATIONAL CORP.

CONSOLIDATED STATEMENTS OF INCOME

(in thousands, except per share amounts)

(unaudited)

 
 

Three Months Ended

Years ended

December 31,

December 31,

 

2019

2018

2019

2018

 

$257,678

$251,613

Net sales

$1,054,132

$982,479

161,037

163,691

Cost of goods sold

656,431

632,730

 

96,641

87,922

Gross profit

397,701

349,749

42,049

38,543

Selling, general, and administrative expenses

163,651

156,189

9,246

10,109

Technical and research expenses

37,569

40,582

1,766

1,856

Restructuring expenses, net

2,905

15,570

 

43,580

37,414

Operating income

193,576

137,408

3,886

4,594

Interest expense, net

16,921

18,124

349

5,010

Other (income)/expense, net

(1,557

)

4,037

 

39,345

27,810

Income before income taxes

178,212

115,247

9,754

10,538

Income tax expense

44,829

32,228

 

29,591

17,272

Net income

133,383

83,019

446

(319

)

Net income/(loss) attributable to the noncontrolling interest

985

128

$29,145

$17,591

Net income attributable to the Company

$132,398

$82,891

 

$0.90

$0.55

Earnings per share attributable to Company shareholders - Basic

$4.10

$2.57

 

$0.90

$0.54

Earnings per share attributable to Company shareholders - Diluted

$4.10

$2.57

 
Shares of the Company used in computing earnings per share:

32,308

32,266

Basic

32,296

32,252

 

32,317

32,279

Diluted

32,308

32,267

 

$0.19

$0.18

Dividends declared per share, Class A and Class B

$0.73

$0.69

 

ALBANY INTERNATIONAL CORP.

CONSOLIDATED BALANCE SHEETS

(in thousands, except share data)

(unaudited)

 
 

December 31,

December 31,

2019

2018

ASSETS
Cash and cash equivalents

$195,540

$197,755

Accounts receivable, net

218,271

223,176

Contract assets

79,070

57,447

Inventories

95,149

85,904

Income taxes prepaid and receivable

6,162

7,473

Prepaid expenses and other current assets

24,142

21,294

Total current assets

$618,334

$593,049

 
Property, plant and equipment, net

466,462

462,055

Intangibles, net

52,892

49,206

Goodwill

180,934

164,382

Deferred income taxes

51,621

62,622

Noncurrent receivables

41,234

45,061

Other assets

62,891

41,617

Total assets

$1,474,368

$1,417,992

 
LIABILITIES AND SHAREHOLDERS' EQUITY
Accounts payable

$65,203

$52,246

Accrued liabilities

125,885

129,030

Current maturities of long-term debt

20

1,224

Income taxes payable

11,611

6,806

Total current liabilities

202,719

189,306

 
Long-term debt

424,009

523,707

Other noncurrent liabilities

132,725

88,277

Deferred taxes and other liabilities

12,226

8,422

Total liabilities

771,679

809,712

 
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; issued 39,098,792 in 2019 and 37,450,329 in 2018

39

37

Class B Common Stock, par value $.001 per share; authorized 25,000,000 shares; issued and outstanding 1,617,998 in 2019 and 3,233,998 in 2018

2

3

Additional paid in capital

432,518

430,555

Retained earnings

698,496

589,645

Accumulated items of other comprehensive income:
Translation adjustments

(122,852

)

(115,976

)

Pension and postretirement liability adjustments

(49,994

)

(47,109

)

Derivative valuation adjustment

(3,135

)

4,697

Treasury stock (Class A), at cost 8,408,770 shares in 2019 and 8,418,620 shares in 2018

(256,391

)

(256,603

)

Total Company shareholders' equity

698,683

605,249

Noncontrolling interest

4,006

3,031

Total equity

702,689

608,280

Total liabilities and shareholders' equity

$1,474,368

$1,417,992

 

ALBANY INTERNATIONAL CORP.

CONSOLIDATED STATEMENTS OF CASH FLOW

(in thousands)

(unaudited)

 
 

Three Months Ended

Years ended

December 31,

December 31,

 

2019

2018

2019

2018

OPERATING ACTIVITIES

$29,591

$17,272

Net income

$133,383

$83,019

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

15,426

15,948

Depreciation

62,085

68,800

2,405

2,665

Amortization

8,710

10,236

900

15,984

Change in deferred taxes and other liabilities

13,702

8,972

2,018

452

Provision for write-off of property, plant and equipment

3,119

3,707

151

155

Non-cash interest expense

605

459

450

1,494

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

450

1,494

650

324

Compensation and benefits paid or payable in Class A Common Stock

2,063

2,203

 
Changes in operating assets and liabilities that provided cash, net of impact of business acquisition:

16,727

20,815

Accounts receivable

9,587

(19,139

)

(12,641

)

(1,546

)

Contract assets

(19,199

)

(10,267

)

13,004

15,440

Inventories

(8,923

)

(968

)

1,766

(698

)

Prepaid expenses and other current assets

(2,291

)

(5,815

)

728

(948

)

Income taxes prepaid and receivable

1,390

(1,402

)

2,687

3,186

Accounts payable

10,524

9,340

1,369

(3,962

)

Accrued liabilities

(7,393

)

8,209

2,360

(14,179

)

Income taxes payable

3,979

(824

)

(662

)

(3,403

)

Noncurrent receivables

(1,341

)

(12,249

)

(2,162

)

854

Other noncurrent liabilities

(6,573

)

(5,479

)

(1,008

)

1,238

Other, net

(3,525

)

(7,811

)

73,759

71,091

Net cash provided by operating activities

200,352

132,485

 
INVESTING ACTIVITIES

(30,793

)

-

Purchase of business, net of cash acquired

(30,793

)

-

(18,512

)

(21,015

)

Purchases of property, plant and equipment

(67,358

)

(81,579

)

(291

)

(1,177

)

Purchased software

(597

)

(1,307

)

(49,596

)

(22,192

)

Net cash used in investing activities

(98,748

)

(82,886

)

 
FINANCING ACTIVITIES

25,000

-

Proceeds from borrowings

45,000

26,031

(25,003

)

(5,299

)

Principal payments on debt

(120,017

)

(29,913

)

(304

)

-

Principal payments on finance lease liabilities

(1,180

)

-

-

-

Taxes paid in lieu of share issuance

(971

)

(1,652

)

7

-

Proceeds from options exercised

112

202

(5,816

)

(5,485

)

Dividends paid

(23,251

)

(21,926

)

(6,116

)

(10,784

)

Net cash used in financing activities

(100,307

)

(27,258

)

 

3,754

(953

)

Effect of exchange rate changes on cash and cash equivalents

(3,512

)

(8,313

)

 

21,801

37,162

(Decrease)/increase in cash and cash equivalents

(2,215

)

14,028

173,739

160,593

Cash and cash equivalents at beginning of period

197,755

183,727

$195,540

$197,755

Cash and cash equivalents at end of period

$195,540

$197,755

 

Reconciliation of non-GAAP measures to comparable GAAP measures

The following table presents Net sales and the effect of changes in currency translation rates:

(in $ thousands, except percentages)

Net Sales,

as reported,

Q4 2019

Decrease

due to

changes in

currency

translation

rates

Q4 2019

sales on

same basis

as Q4 2018

currency

translation

rates

Net sales as

reported, Q4

2018

% Change

compared to

Q4 2018,

excluding

currency

rate effects

Machine Clothing

$150,580

$1,198

$151,778

$150,693

0.7%

Albany Engineered Composites

107,098

287

107,385

100,920

6.4%

Total

$257,678

$1,485

$259,163

$251,613

3.0%

(in $ thousands, except percentages)

Net Sales,

as reported,

FY 2019

Decrease

due to

changes in

currency

translation

rates

FY 2019

sales on

same basis

as FY 2018

currency

translation

rates

Net sales as

reported, FY

2018

% Change

compared to

FY 2018,

excluding

currency

rate effects

Machine Clothing

$601,254

$10,474

$611,728

$611,858

0.0%

Albany Engineered Composites

452,878

4,349

457,227

370,621

23.4%

Total

$1,054,132

$14,823

$1,068,955

$982,479

8.8%

Adjusted EBITDA for the current-year and comparable prior-year periods has been calculated as follows:

Three months ended December 31, 2019

(in $ thousands)

Machine

Clothing

Albany

Engineered

Composites

Corporate

Expenses

and Other

Total

Company

Operating income/(loss) (GAAP)

$46,277

$10,922

($13,619)

$43,580

Interest, taxes, and other income/(expense)

-

-

(13,989)

(13,989)

Net income/(loss) (GAAP)

46,277

10,922

(27,608)

29,591

Interest expense, net

-

-

3,886

3,886

Income tax expense

-

-

9,754

9,754

Depreciation and amortization expense

5,201

11,611

1,019

17,831

EBITDA (non-GAAP)

51,478

22,533

(12,949)

61,062

Restructuring expenses, net

4

1,815

(53)

1,766

Foreign currency revaluation (gains)/losses

1,365

(12)

(748)

605

Pension curtailment expense

-

-

478

478

Acquisition expenses

-

301

200

501

Retention agreement expense

-

120

-

120

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

-

(586)

-

(586)

Adjusted EBITDA (non-GAAP)

$52,847

$24,171

($13,072)

$63,946

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

35.1%

22.6%

-

24.8%

Three months ended December 31, 2018

(in $ thousands)

Machine

Clothing

Albany

Engineered

Composites

Corporate

Expenses

and Other

Total

Company

Operating income/(loss) (GAAP)

$42,884

$6,667

($12,137)

$37,414

Interest, taxes, and other income/(expense)

-

-

(20,142)

(20,142)

Net income/(loss) (GAAP)

42,884

6,667

(32,279)

17,272

Interest expense, net

-

-

4,594

4,594

Income tax expense

-

-

10,538

10,538

Depreciation and amortization expense

6,542

10,909

1,162

18,613

EBITDA (non-GAAP)

49,426

17,576

(15,985)

51,017

Restructuring expenses, net

1,756

80

20

1,856

Foreign currency revaluation (gains)/losses

26

3

2,878

2,907

Pension settlement/curtailment

-

-

1,494

1,494

Pre-tax loss attributable to non-controlling interest

-

422

-

422

Adjusted EBITDA (non-GAAP)

$51,208

$18,081

($11,593)

$57,696

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

34.0%

17.9%

-

22.9%

Year ended December 31, 2019

(in $ thousands)

Machine

Clothing

Albany

Engineered

Composites

Corporate

Expenses

and Other

Total

Company

Operating income/(loss) (GAAP)

$191,965

$55,520

($53,909)

$193,576

Interest, taxes, and other income/(expense)

-

-

(60,193)

(60,193)

Net income/(loss) (GAAP)

191,965

55,520

(114,102)

133,383

Interest expense, net

-

-

16,921

16,921

Income tax expense

-

-

44,829

44,829

Depreciation and amortization expense

21,876

44,670

4,249

70,795

EBITDA (non-GAAP)

213,841

100,190

(48,103)

265,928

Restructuring expenses, net

1,129

1,833

(57)

2,905

Foreign currency revaluation (gains)/losses

630

643

(4,463)

(3,190)

Pension curtailment expense

-

-

478

478

Acquisition expenses

-

301

200

501

Retention agreement expense

-

120

-

120

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

-

(1,308)

-

(1,308)

Adjusted EBITDA (non-GAAP)

$215,600

$101,779

($51,945)

$265,434

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

35.9%

22.5%

-

25.2%

Year ended December 31, 2018

(in $ thousands)

Machine

Clothing

Albany

Engineered

Composites

Corporate

Expenses

and Other

Total

Company

Operating income/(loss) (GAAP)

$169,836

$16,647

($49,075)

$137,408

Interest, taxes, and other income/(expense)

-

-

(54,389)

(54,389)

Net income/(loss) (GAAP)

169,836

16,647

(103,464)

83,019

Interest expense, net

-

-

18,124

18,124

Income tax expense

-

-

32,228

32,228

Depreciation and amortization expense

30,813

43,205

5,018

79,036

EBITDA (non-GAAP)

200,649

59,852

(48,094)

212,407

Restructuring expenses, net

12,278

3,048

244

15,570

Foreign currency revaluation (gains)/losses

(826)

547

(62)

(341)

Pension settlement/curtailment

-

-

1,494

1,494

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

-

(197)

-

(197)

Adjusted EBITDA (non-GAAP)

$212,101

$63,250

($46,418)

$228,933

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

34.7%

17.1%

-

23.3%

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

Three months ended December 31, 2019

(in $ thousands, except per share amounts)

Pre-Tax

Amount

Tax Effect

After-Tax

Amount

Per Share

Amount

Restructuring expenses, net

$1,766

$494

$1,272

$0.04

Foreign currency revaluation (gains)/losses

605

169

436

0.01

Pension curtailment charge

478

91

387

0.01

Acquisition expenses

501

120

381

0.01

Retention agreement expense

120

36

84

0.00

Three months ended December 31, 2018

(in $ thousands, except per share amounts)

Pre-Tax

Amount

Tax Effect

After-Tax

Amount

Per Share

Amount

Restructuring expenses, net

$1,856

$581

$1,275

$0.04

Foreign currency revaluation (gains)/losses

2,907

910

1,997

0.06

Net pension settlement/curtailment charge

1,494

348

1,146

0.04

Year ended December 31, 2019

(in $ thousands, except per share amounts)

Pre-Tax

Amount

Tax Effect

After-Tax

Amount

Per Share

Amount

Restructuring expenses, net

$2,905

$824

$2,081

$0.06

Foreign currency revaluation (gains)/losses

(3,190)

(904)

(2,286)

(0.07)

Pension curtailment charge

478

91

387

0.01

Acquisition expenses

501

120

381

0.01

Retention agreement expense

120

36

84

0.00

Year ended December 31, 2018

(in $ thousands, except per share amounts)

Pre-Tax

Amount

Tax Effect

After-Tax

Amount

Per Share

Amount

Restructuring expenses, net

$15,570

$4,904

$10,666

$0.34

Foreign currency revaluation (gains)/losses

(341)

3

(344)

(0.01)

Net pension settlement/curtailment charge

1,494

348

1,146

0.04

The resulting fourth quarter and full-year Adjusted EPS are as follows:

Three months ended

December 31,

Years ended

December 31,

Per Share Amounts (Basic)

2019

2018

2019

2018

Earnings per share (GAAP)

$0.90

$0.55

$4.10

$2.57

Adjustments, after tax:

Restructuring expenses, net

0.04

0.04

0.06

0.34

Foreign currency revaluation (gains)/losses

0.01

0.06

(0.07

)

(0.01

)

Pension settlement/curtailment

0.01

0.04

0.01

0.04

Acquisition expenses

0.01

-

0.01

-

Adjusted Earnings per share

$0.97

$0.69

$4.11

$2.94

The tables below provide a reconciliation of forecasted full-year 2020 Adjusted EBITDA and Adjusted EPS (non-GAAP measures) to the comparable GAAP measures:

Forecast of Full Year 2020 Adjusted EBITDA

Machine Clothing

AEC

(in $ millions)

Low

High

Low

High

Net income attributable to the Company (GAAP)

$169

$178

$30

$38

Interest expense, net

-

-

-

-

Income tax expense

-

-

-

-

Depreciation and amortization

21

22

50

52

EBITDA (non-GAAP)

190

200

80

90

Restructuring expenses, net (a)

-

-

-

-

Foreign currency revaluation (gains)/losses (a)

-

-

-

-

Adjusted EBITDA (non-GAAP)

$190

$200

$80

$90

 

Forecast of Full Year 2020 Adjusted EBITDA

Total Company

(in $ millions)

Low

High

Net income attributable to the Company (GAAP)

$87

$100

Interest expense, net

15

14

Income tax expense

30

38

Depreciation and amortization

75

80

EBITDA (non-GAAP)

207

232

Restructuring expenses, net (a)

-

-

Foreign currency revaluation (gains)/losses (a)

-

-

CEO severance

3

3

Adjusted EBITDA (non-GAAP)

$210

$235

 
 

Forecast of Full Year 2020 Adjusted Earnings Per Share

Per Share Amounts – Basic (b)

Low

High

Earnings per share (GAAP)

$2.68

$3.08

CEO severance

0.07

0.07

Adjusted Earnings per share (non-GAAP)

$2.75

$3.15

  1. Due to the uncertainty of these items, we are unable to forecast these items for 2020
  2. Calculations based on shares outstanding estimate of 32.3 million

About Albany International Corp.

Albany International is a leading developer and manufacturer of engineered components, using advanced materials processing and automation capabilities, with two core businesses. Machine Clothing is the world’s leading producer of fabrics and process felts used in the manufacture of all grades of paper products. Albany Engineered Composites is a rapidly growing designer and manufacturer of advanced materials-based engineered components for jet engine and airframe applications, supporting both commercial and military platforms. Albany International is headquartered in Rochester, New Hampshire, operates 23 plants in 11 countries, employs approximately 4,600 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, including: net sales, and percent change in net sales, excluding the impact of currency translation effects (for each segment and on a consolidated basis); EBITDA and Adjusted EBITDA (for each segment and on a consolidated basis, represented in dollars or as a percentage of net sales); Net debt and changes in Net debt; and Adjusted earnings per share (or Adjusted EPS). Such items are provided because management believes that they provide additional useful information to investors regarding the Company’s operational performance.

Presenting Net sales and increases or decreases in Net sales, after currency effects are excluded, can give management and investors insight into underlying sales trends. Net sales, or percent changes in net sales, 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, Adjusted EBITDA and Adjusted EPS are performance measures that relate to the Company’s continuing operations. EBITDA, or net income with interest, taxes, depreciation, and amortization added back, is a common indicator of financial performance used, among other things, to analyze and compare core profitability between companies and industries because it eliminates effects due to differences in financing, asset bases and taxes. The Company calculates EBITDA by removing the following from Net income: Interest expense net, Income tax expense, Depreciation and amortization. Adjusted EBITDA is calculated by: adding to EBITDA costs associated with restructuring, and inventory write-offs associated with discontinued businesses; adding charges and credits related to pension plan settlements; adding (or subtracting) revaluation losses (or gains); subtracting (or adding) gains (or losses) from the sale of buildings or investments; subtracting insurance recovery gains in excess of previously recorded losses; adding acquisition and related retention agreement expenses and subtracting (or adding) Income (or loss) attributable to the non-controlling interest in Albany Safran Composites (ASC). Adjusted EBITDA may also be presented as a percentage of net sales by dividing it by net sales. An understanding of the impact in a particular quarter of specific restructuring costs, acquisition and related retention agreement expenses, currency revaluation, inventory write-offs associated with discontinued businesses, or other gains and losses, on net income (absolute as well as on a per-share basis), operating income or EBITDA can give management and investors additional insight into core financial performance, especially when compared to quarters in which such items had a greater or lesser effect, or no effect. Restructuring expenses in the MC segment, while frequent in recent years, are reflective of significant reductions in manufacturing capacity and associated headcount in response to shifting markets, and not of the profitability of the business going forward as restructured. Adjusted earnings per share (Adjusted EPS) is calculated by adding to (or subtracting from) net income attributable to the Company per share, on an after-tax basis: restructuring charges; charges and credits related to pension plan settlements and curtailments; inventory write-offs associated with discontinued businesses; foreign currency revaluation losses (or gains); acquisition expenses; and losses (or gains) from the sale of investments.

EBITDA, Adjusted EBITDA, and Adjusted EPS, as defined by the Company, may not be similar to similarly named measures of other companies. Such measures are not considered measurements under GAAP, and should be considered in addition to, but not as substitutes for, the information contained in the Company’s statements of income.

The Company discloses certain income and expense items on a per-share basis. The Company believes that such disclosures provide important insight into underlying quarterly earnings and are financial performance metrics commonly used by investors. The Company calculates the quarterly per-share amount for items included in continuing operations by using the income tax rate based on income from continuing operations and the weighted-average number of shares outstanding for each period. Year-to-date earnings per-share effects are determined by adding the amounts calculated at each reporting period.

Net debt is, in the opinion of the Company, helpful to investors wishing to understand what the Company’s debt position would be if all available cash were applied to pay down indebtedness. The Company calculates Net debt by subtracting Cash and cash equivalents from Total debt. Total debt is calculated by adding Long-term debt, Current maturities of long-term debt, and Notes and loans payable, if any.

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 and paper-industry trends and conditions during 2019 and in future years; expectations in 2019 and in future periods of sales, EBITDA, Adjusted EBITDA (both in dollars and as a percentage of net sales), 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 sales 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

Data & News supplied by www.cloudquote.io
Stock quotes supplied by Barchart
Quotes delayed at least 20 minutes.
By accessing this page, you agree to the following
Privacy Policy and Terms and Conditions.