|
UNITED
STATES
SECURITIES
AND EXCHANGE COMMISSION
Washington,
D.C. 20549
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||||
|
FORM
8-K
|
||||
|
CURRENT
REPORT
|
||||
|
Pursuant
to Section 13 OR 15(d) of the Securities Exchange Act of
1934
|
||||
|
Date
of Report (Date of earliest event reported)
|
August
3, 2007
|
|||
|
ALBANY
INTERNATIONAL CORP.
|
||||
|
(Exact
name of registrant as specified in its charter)
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||||
|
Delaware
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0-16214
|
14-0462060
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||
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(State
or other jurisdiction of
incorporation)
|
(Commission
File
Number)
|
(I.R.S.
EmployerIdentification
No.)
|
||
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1373
Broadway, Albany, New York
|
12204
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|
(Address
of principal executive offices)
|
(Zip
Code)
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|||
|
Registrant’s
telephone number, including area code (518) 445-2200
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None
|
||||
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(Former
name or former address, if changed since last report.)
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|
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:
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¨
|
Written
communications pursuant to Rule 425 under the Securities Act (17
CFR
230.425)
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¨
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Soliciting
material pursuant to Rule 14a-12 under the Exchange Act (17 CFR
240.14a-12)
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|
¨
|
Pre-commencement
communications pursuant to Rule 14d-2(b) under the Exchange Act (17
CFR
240.14d-2(b))
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|||
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¨
|
Pre-commencement
communications pursuant to Rule 13e-4(c) under the Exchange Act (17
CFR
240.13a-4(c))
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1
Item
2.02. Results of Operations and Financial Condition.
On
August
3, 2007, Albany International issued a news release reporting second quarter
2007 financial results. A copy of 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 August 3, 2007 reporting second quarter 2007 financial results.
2
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/
Michael C. Nahl
|
|
|
Name:
Michael C. Nahl
Title:
Executive Vice President and Chief Financial Officer
(Principal
Financial Officer)
|
Date: August 3, 2007
3
EXHIBIT
INDEX
|
Exhibit No.
|
Description
|
| 99.1 | News release dated August 3, 2007 reporting second quarter 2007 financial results. |
4
ALBANY
INTERNATIONAL REPORTS SECOND-QUARTER EARNINGS
Second-Quarter
Highlights
| · |
Net
income per share was $0.15,
after restructuring charges of $0.18 per share and costs related
to
performance improvement initiatives of $0.13 per share. Net income
per
share was $0.63 in the second quarter of
2006.
|
| · |
Income
tax adjustments had the effect of increasing second-quarter 2007
net
income by $0.09 per share.
|
| · |
Estimated
total annualized savings from all of the initiatives taken or announced
since Q3 2006 will be at least $0.50 per share by the end of 2007,
growing
to at least $1.00 per share by the end of
2008.
|
| · |
Net
sales were $267.3 million, an increase of 2.2 percent compared to
the same
period last year.
|
| · |
Net
sales in the Paper Machine Clothing (PMC) segment declined 3.0 percent
compared to the same period last year.
|
| · |
Net
sales in the Applied Technologies segment increased 19.9 percent
compared
to the same period last year.
|
| · |
Net
sales in the Door Systems segment increased 13.3 percent compared
to the
same period last year.
|
Albany,
New York, August 3, 2007 -- Albany International Corp. (NYSE:AIN) reported
second-quarter net income per share of $0.15, after restructuring charges
of
$0.18 per share and costs related to performance improvement initiatives
of
$0.13 per share. Income tax adjustments had the effect of increasing
second-quarter 2007 net income by $0.09 per share. Net income per share was
$0.63 in the second quarter of 2006.
(more)
Albany
International Corp.
PO
Box
1907
Albany,
NY 12201 USA
www.albint.com
The
Q2
2007 costs related to performance improvement initiatives were $4.9 million.
This includes Selling, Technical, General and Research (STG&R) expenses of
$4.3 million related to the implementation of SAP and the transition to a
centralized European administration. In addition, $0.6 million of costs related
to start-ups and equipment relocation were included in Cost of Goods
Sold.
Net
sales
increased $5.6 million, or 2.2 percent compared to the same period last year.
Excluding the effect of changes in currency translation rates, net sales
decreased 1.2 percent.
The
following table presents net sales by segment and the effect of changes in
currency translation rates:
|
Net
Sales
Three
Months ended
June
30,
|
Percent
|
Impact
of
Changes
in
Currency
Translation
|
Percent
Change
excluding
Currency
Rate
|
|||||||||||||
|
(in
thousands)
|
2007
|
2006
|
Change
|
Rates
|
Effect
|
|||||||||||
|
Paper
Machine Clothing
|
$
|
188,667
|
$
|
194,466
|
-3.0
|
%
|
$
|
5,076
|
-5.6
|
%
|
||||||
|
Applied
Technologies
|
45,278
|
37,764
|
19.9
|
%
|
1,844
|
15.0
|
%
|
|||||||||
|
Albany
Door Systems
|
33,324
|
29,400
|
13.3
|
%
|
1,962
|
6.7
|
%
|
|||||||||
|
Total
|
$
|
267,269
|
$
|
261,630
|
2.2
|
%
|
$
|
8,882
|
-1.2
|
%
|
||||||
Gross
profit was 36.1 percent of net sales in the second quarter of 2007, compared
to
39.8 percent in the second quarter of 2006. The decrease is principally due
to
production inefficiencies in North America PMC operations and the impact
of
lower PMC prices and volume in Europe.
STG&R
expenses were $82.6 million in the second quarter of 2007, in comparison
to
$75.1 million in the second quarter of 2006. The increase includes $3.1 million
related to the effect of changes in currency translation rates and the $4.3
million of expenses, noted above, related to performance improvement
initiatives.
In
the
second quarter of 2007, the Company recorded restructuring charges of $7.1
million related to reductions in corporate, closure of the Doors segment
plant
in Sweden, charges associated with centralization of administration functions
in
Europe, the announced closure of a PMC plant in Finland, and other initiatives.
(more)
Operating
income was $6.9 million in the second quarter of 2007, compared to $28.9
million
for the same period of 2006, reflecting a lower gross profit percentage and
the
2007 charges related to restructuring and performance improvement initiatives.
The
effective income tax rate for the second quarter of 2007 was 25 percent,
excluding the impact of discrete tax items; the effective income tax rate
for
the second quarter of 2006 was 29.4 percent.
Net
cash
provided by operating activities was $17.4 million in comparison to $19.1
million in the second quarter of 2006. Capital spending during the second
quarter of 2007 was $28.8 million, and totaled $52.1 million for the first
six
months of 2007. Construction of the greenfield PMC plant in China and the
expansion of our manufacturing capacity in Korea are progressing on plan.
As a
result, the Company expects capital spending to be consistent with the
previously announced plans which call for $160 million of spending in 2007.
Depreciation and amortization were $14.5 million and $1.2 million, respectively,
for the second quarter of 2007, and are expected to be approximately $60
million
and $5 million, respectively, for the full year.
Paper
Machine Clothing (PMC)
This
segment includes Paper Machine Clothing and Process Belts used in the
manufacture of paper and paperboard products.
Compared
to Q2 2006, PMC net sales decreased 3.0 percent, and decreased 5.6 percent
excluding the effect of changes in currency translation rates. Compared to
the
same quarter last year, the Americas net sales were flat and orders improved,
and in Asia, both sales and orders improved. Although sales in Europe declined
compared to Q2 2006, orders improved significantly.
(more)
During
the quarter, the Company announced its intention to discontinue operations
at
its press fabric facility in Järvenpää, Finland.
On
August
2, 2007, the Company announced its intention to discontinue operations at
its
press fabric manufacturing facility in East Greenbush, New York, and to cease
the manufacture of dryer fabrics in Menands, New York. These actions are
in
response to the continuing consolidation within the paper industry in the
U.S.
and Canada and the need to balance the Company’s PMC manufacturing capacity in
North America with anticipated paper mill demand. Discussions with the local
bargaining units will begin shortly, and the resulting charges associated
with
the closings will be disclosed as they become available.
Applied
Technologies
This
segment includes the emerging businesses that apply our core competencies
in
advanced textiles and materials to other industries including specialty
materials and composite structures for aircraft and other applications (Albany
Engineered Composites); fabrics, wires, and belting products for the nonwovens
and pulp industries, and industrial process belts for tannery, textile, and
corrugator applications (Albany Engineered Fabrics); specialty filtration
products for wet and dry applications (Albany Filtration Technologies);and
insulation for personal outerwear and home furnishings
(PrimaLoft®).
Second-quarter
net sales increased 19.9 percent compared to Q2 2006, and 15.0 percent excluding
the effect of changes in currency translation rates. Within the segment,
compared to the second quarter of 2006 and excluding the effect of changes
in
currency translation rates, Albany Engineered Composites (AEC) net sales
increased 35.2 percent and, as expected, sales in Engineered Fabrics recovered
with an increase of 4.2 percent. The improvement in Engineered Fabrics resulted
in part from increases in original equipment
(more)
manufacturer
activity during the quarter. The order backlog in the Applied Technologies
segment is strong.
Albany
Door Systems
This
segment includes sales and service of High Performance Doors and after-market
sales to a variety of industrial customers.
Second-quarter
net sales increased 13.3 percent compared to Q2 2006, and 6.7 percent excluding
the effect of changes in currency translation rates. The order backlog remained
strong, reflecting the impact of new products and the European sales
reorganization completed last year. During the quarter, the Company announced
its plan to discontinue operations at its door manufacturing facility in
Halmstad, Sweden. Door manufacturing in Europe will be consolidated in the
Lippstadt, Germany, facility.
On
June
29, 2007, the Company acquired the assets and business of R-Bac Industries,
the
fastest growing high-performance door company in North America. R-Bac began
shipping in late 2005 with total net sales in excess of $7.0 million through
2006, and was operating at an annualized run rate in excess of $9.0 million
through the first half of 2007.
Comments
on Current and Planned Activities
President
and CEO Joe Morone said, “In
our
last three earnings calls, I have focused on progress toward our short-term
objective of returning to Q2 2006 profit levels by Q4 of 2007, excluding
the
expenses associated with the cost-reduction and performance improvement
initiatives. In Q2 and early in Q3, we took, or announced plans to take,
what we
believe to be the remaining steps necessary to achieve that short-term
objective. As a result, we are increasingly confident that, barring any
additional instability in the PMC market, we will return in Q4 to the profit
levels that we had been experiencing just before last year’s price disruptions
in the European PMC market.
(more)
“As
discussed in each of the earnings calls since the third quarter of last year,
we
have been focusing on three factors to drive the improvement in profits:
cost
reduction and performance improvement, gradual recovery of PMC revenue, and
continued growth in the emerging businesses.
“Since
our last earnings release, we have made the most significant progress on
the
cost-reduction, performance improvement front: our European PMC business
successfully started operations at its new central administrative services
center; we announced the closure of three PMC manufacturing facilities and
one
Albany Door Systems facility; and we switched over our first business unit
(Albany Engineered Composites) to SAP.
“Previously,
we estimated that the combined annualized savings from cost-reduction and
performance improvement activities initiated since Q3 2006 would be at least
$0.45 per share by the end of 2007. We now estimate that, with the added
impact
from the actions announced since our last earnings release, total annualized
savings from all initiatives taken or announced since Q3 2006 will be at
least
$0.50 per share by the end of 2007, growing to at least $1.00 per share by
the
end of 2008.
“Q2
also
saw continued stability in PMC revenues. While sales were 3 percent lower
than
they were in Q2 2006, they were 6 percent higher than the low point in Q3
2006.
Q2 2007 orders in Western Europe are 16 percent higher than they were in
Q2
2006, as gains in order volume continue to offset lower average prices.
Moreover, several important multiyear contracts were successfully completed
in
both Europe and North America, which further reduces the likelihood of a
return
to the instability of last year. To be sure, the risk that competitors will
respond to our growing market strength with additional price cuts is ever
present, and the consolidation of the paper industry in Europe and North
America, particularly in Canada, continues. But we enter Q3 with confidence
that
our strategy of maintaining a steady price premium, based on the benefits
we
deliver to our customers, is the right one, both for the short-term return
to Q2
2006 profit levels, and for the longer-term objective of steady profit growth
in
PMC.
(more)
“The
third factor that we have been focusing on is continued growth in the emerging
businesses. Compared to Q2 2006, Doors grew by 13 percent and Applied
Technologies by 20 percent. But despite the top-line growth, the lack of
profits
in our Doors and AEC businesses contributed to the Company’s lower-than-expected
earnings in Q2. AEC lost $1.8 million in Q2, or $0.05 per share. We had expected
AEC to break even this quarter. The reason for the loss is that, at the very
time that AEC was staffing up to meet a strong order backlog and an accelerating
stream of new business opportunities, shipments to three key customers were
substantially lower than expected because of delays in their production
schedules. We expect a sharp increase in sales as those shipments begin to
flow
in Q3, and the business to be profitable in the second half of the
year.
“As
for
Albany Door Systems, despite $33.3 million in Q2 sales, the business only
broke
even. We have been engaged in a business-wide set of process improvement
activities, but these clearly have progressed at too slow a pace, and costs
of
operation, particularly in Europe, are simply too high. We took steps in
Q2 to
reduce costs, most notably through the announced shutdown of manufacturing
operations in Sweden, and we expect that, by Q4 of this year, operating margins
will return to their customary levels.
“During
Q2, we acquired the assets and business of R-Bac Industries, founded in 2004
by
Paul Reilly and Ted Burbach, pioneers in the North American high-performance
door market. Since its inception, R-Bac has been by far the fastest-growing
company in the North American high-performance door market. Its product line
complements Albany’s; and the combined businesses make Albany Door Systems the
largest supplier of high-performance doors in North America,
with the most complete product line. R-Bac will be fully integrated into
Albany’s North American Doors operations by the end of the year, and the
combined business will be led by Mr. Reilly.
(more)
“The
market strength in North America of Albany/R-Bac, along with a strong worldwide
order backlog and continued expansion of the after-market business in Europe,
suggest that the short-term growth potential of this business should exceed
our
previous estimate of a 5 to 7 percent compound annual growth rate.
“In
sum,
we remain on trend toward our target of a return to Q2 2006 levels of
profitability by Q4 2007:
| · |
On
the cost-reduction front, we believe that the actions taken or announced
to date will fundamentally lower the cost structure of the Company.
|
| · |
In
the PMC marketplace, while the underlying risks associated with
competitive behavior and paper industry consolidation remain real,
we
believe that our revenue outlook is considerably more stable than
it was a
year ago, and that our market position is even
stronger.
|
| · |
And
in the emerging businesses, while a lack of profitability in two
of our
critical businesses contributed to lower-than-expected overall results
in
Q2, strong
orders in both businesses and lower costs in the Doors business should
bring higher sales and better profitability in the second half of
the
year.
|
“Looking
beyond our short-term Q4 target, the actions we have taken since Q3 of 2006
augur well for our long-term, cash-and-grow strategy. A significantly lower
cost
base and recovering revenues in PMC, a strong PMC product pipeline, continued
progress in our Asian expansion, and accelerating growth in AEC and Doors,
are
all reasons for optimism about the long-term viability of our strategy of
growing profits in PMC, while growing profitably in the emerging
businesses.”
(more)
The
Company plans a live webcast to discuss second-quarter 2007 financial results
on
Monday, August 6, 2007, at 9:00 a.m. Eastern Time. For access, go to
www.albint.com
Albany
International is the world’s largest producer of custom-designed paper machine
fabrics and process belts that are essential to the manufacture of paper
and
paperboard. In its family of businesses, Albany applies its core competencies
in
advanced textiles and materials to other industries. Founded in 1895, the
Company is headquartered in Albany, New York, with plants are strategically
located to serve its global customers. Additional information about the Company
and its businesses and products is available at www.albint.com.
This
release contains certain items that may be considered to be non-GAAP financial
measures. Such items are provided because management believes that, when
presented together with the GAAP items to which they relate, they can provide
additional useful information to investors regarding the registrant’s financial
condition, results of operations, and cash flows.
The
effect of changes in currency translation rates is calculated by converting
amounts reported in local currencies into U.S. dollars at the exchange rate
of a
prior period. That amount is then compared to the U.S. dollar amount reported
in
the current period.
Forward-looking
statements in this release or in the webcast, including statements about
future
economic conditions, materials costs, growth in PMC sales and operating income
during the next several quarters, revenue growth and income expectations
for the
Company’s emerging businesses, the amount and timing of anticipated costs and
savings associated with cost reduction and process improvement initiatives,
pension contributions, pricing conditions in the PMC industry, paper industry
outlook, the amount and timing of capital expenditures, tax rates, and
depreciation and amortization are made pursuant to the Safe Harbor provisions
of
the
Private Securities Litigation Reform Act of 1995. Such statements are based
on
current expectations and are subject to various risks and uncertainties,
including, but not limited to, economic conditions affecting the paper industry
and other risks and uncertainties set forth in the Company’s 2006 Annual Report
to Shareholders and subsequent filings with the U.S. Securities and Exchange
Commission. 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.
#
#
#
|
ALBANY
INTERNATIONAL CORP.
|
|
CONSOLIDATED
STATEMENTS OF INCOME
|
|
(in
thousands except per share data)
|
|
(unaudited)
|
|
Three
Months Ended
|
Six
Months Ended
|
||||||||||||||
|
June
30,
|
June
30,
|
||||||||||||||
|
2007
|
2006
|
2007
|
2006
|
||||||||||||
|
$
|
267,269
|
$
|
261,630
|
Net
sales
|
$
|
525,007
|
$
|
512,853
|
|||||||
|
170,661
|
157,621
|
Cost
of goods sold
|
330,013
|
304,868
|
|||||||||||
|
96,608
|
104,009
|
Gross
profit
|
194,994
|
207,985
|
|||||||||||
|
82,594
|
75,064
|
Selling,
technical, general and research expenses
|
157,312
|
149,626
|
|||||||||||
|
7,112
|
-
|
Restructuring
and other
|
14,721
|
-
|
|||||||||||
|
6,902
|
28,945
|
Operating
income
|
22,961
|
58,359
|
|||||||||||
|
3,710
|
2,712
|
Interest expense, net
|
7,012
|
4,591
|
|||||||||||
|
1,051
|
(137
|
)
|
Other expense/(income), net
|
1,021
|
772
|
||||||||||
|
|
|||||||||||||||
|
2,141
|
26,370
|
Income
before income taxes
|
14,928
|
52,996
|
|||||||||||
|
(2,214
|
)
|
7,749
|
Income tax (benefit)/expense
|
983
|
15,737
|
||||||||||
|
4,355
|
18,621
|
Income
before associated companies
|
13,945
|
37,259
|
|||||||||||
|
50
|
66
|
Equity in earnings/(losses) of associated companies
|
(235
|
)
|
243
|
||||||||||
|
$
|
4,405
|
$
|
18,687
|
Net
income
|
$
|
13,710
|
$
|
37,502
|
|||||||
|
Earnings
per share:
|
|||||||||||||||
|
$
|
0.15
|
$
|
0.63
|
Basic
|
$
|
0.47
|
$
|
1.23
|
|||||||
|
$
|
0.15
|
$
|
0.62
|
Diluted
|
$
|
0.46
|
$
|
1.21
|
|||||||
|
Shares
used in computing earnings per share:
|
|||||||||||||||
|
29,380
|
29,554
|
Basic
|
29,323
|
30,481
|
|||||||||||
|
29,818
|
30,094
|
Diluted
|
29,751
|
31,019
|
|||||||||||
|
|
|||||||||||||||
|
$
|
0.11
|
$
|
0.10
|
Dividends
per share
|
$
|
0.21
|
$
|
0.19
|
|||||||
|
ALBANY
INTERNATIONAL CORP.
|
|
CONSOLIDATED
BALANCE SHEETS
|
|
(in
thousands, except share data)
|
|
(unaudited)
|
|
||||||
|
|
June
30,
|
December
31,
|
|||||
|
|
2007
|
2006
|
|||||
|
ASSETS
|
|||||||
|
Cash
and cash equivalents
|
$
|
60,666
|
$
|
68,237
|
|||
|
Accounts
receivable, net
|
221,807
|
202,611
|
|||||
|
Inventories
|
251,380
|
224,210
|
|||||
|
Income
taxes receivable and deferred
|
35,111
|
23,586
|
|||||
|
Prepaid
expenses
|
13,974
|
10,552
|
|||||
|
Total
current assets
|
582,938
|
529,196
|
|||||
|
Property,
plant and equipment, net
|
428,423
|
397,521
|
|||||
|
Investments
in associated companies
|
6,166
|
6,634
|
|||||
|
Intangibles
|
8,448
|
9,343
|
|||||
|
Goodwill
|
185,824
|
172,890
|
|||||
|
Deferred
taxes
|
115,353
|
112,280
|
|||||
|
Cash
surrender value of life insurance policies
|
43,001
|
41,197
|
|||||
|
Other
assets
|
45,425
|
37,486
|
|||||
|
Total
assets
|
$
|
1,415,578
|
$
|
1,306,547
|
|||
|
|
|||||||
|
LIABILITIES
AND SHAREHOLDERS' EQUITY
|
|||||||
|
Notes
and loans payable
|
$
|
28,347
|
$
|
12,510
|
|||
|
Accounts
payable
|
51,307
|
50,214
|
|||||
|
Accrued
liabilities
|
138,334
|
101,995
|
|||||
|
Current
maturities of long-term debt
|
1,215
|
11,167
|
|||||
|
Income
taxes payable and deferred
|
5,933
|
20,099
|
|||||
|
Total
current liabilities
|
225,136
|
195,985
|
|||||
|
Long-term
debt
|
380,644
|
354,587
|
|||||
|
Other
noncurrent liabilities
|
224,130
|
219,774
|
|||||
|
Deferred
taxes and other credits
|
56,891
|
37,076
|
|||||
|
Total
liabilities
|
886,801
|
807,422
|
|||||
|
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; issued
|
|
||||||
|
34,750,275
in 2007 and 34,518,870 in 2006.
|
35
|
35
|
|||||
|
Class
B Common Stock, par value $.001 per share;
|
|||||||
|
authorized
25,000,000 shares; issued and
|
|||||||
|
outstanding
3,236,098 in 2007 and 2006
|
3
|
3
|
|||||
|
Additional
paid in capital
|
323,650
|
316,164
|
|||||
|
Retained
earnings
|
546,658
|
541,602
|
|||||
|
Accumulated
items of other comprehensive income:
|
|||||||
|
Translation
adjustments
|
(481
|
)
|
(18,348
|
)
|
|||
|
Pension
liability adjustment
|
(82,065
|
)
|
(81,071
|
)
|
|||
|
787,800
|
758,385
|
||||||
|
Less
treasury stock (Class A), at cost (8,530,066 shares
|
|||||||
|
in
2007 and 8,540,882 in 2006)
|
259,023
|
259,260
|
|||||
|
Total
shareholders' equity
|
528,777
|
499,125
|
|||||
|
Total
liabilities and shareholders' equity
|
$
|
1,415,578
|
$
|
1,306,547
|
|||
|
ALBANY
INTERNATIONAL CORP.
|
|
CONSOLIDATED
STATEMENTS OF CASH FLOWS
|
|
(in
thousands)
|
|
(unaudited)
|
| Six Months Ended |
|
||||||
|
|
|
June
30,
|
|
||||
|
|
|
2007
|
|
2006
|
|||
|
OPERATING
ACTIVITIES
|
|||||||
|
Net
income
|
$
|
13,710
|
$
|
37,502
|
|||
|
Adjustments
to reconcile net income to net cash provided by operating
activities:
|
|||||||
|
Equity
in losses/(earnings) of associated companies
|
235
|
(243
|
)
|
||||
|
Depreciation
|
28,700
|
26,936
|
|||||
|
Amortization
|
2,342
|
1,961
|
|||||
|
Provision
for deferred income taxes, other credits and long-term
liabilities
|
2,444
|
5,024
|
|||||
|
Provision
for write-off of equipment
|
1,032
|
321
|
|||||
|
Increase
in cash surrender value of life insurance
|
(1,803
|
)
|
(1,708
|
)
|
|||
|
Unrealized
currency transaction gains and losses
|
(334
|
)
|
1,436
|
||||
|
Shares
contributed to ESOP
|
3,013
|
4,183
|
|||||
|
Stock
option expense
|
400
|
770
|
|||||
|
Tax
benefit of options exercised
|
(730
|
)
|
(529
|
)
|
|||
|
Issuance
of shares under long-term incentive plan
|
937
|
-
|
|||||
|
Changes
in operating assets and liabilities, net of business
acquisition:
|
|||||||
|
Accounts
receivable
|
(8,011
|
)
|
(7,976
|
)
|
|||
|
Note
receivable
|
-
|
(505
|
)
|
||||
|
Inventories
|
(21,724
|
)
|
(20,055
|
)
|
|||
|
Income
taxes prepaid and receivable
|
(10,982
|
)
|
-
|
||||
|
Prepaid
expenses
|
(2,984
|
)
|
(999
|
)
|
|||
|
Accounts
payable
|
(1,208
|
)
|
(3,048
|
)
|
|||
|
Accrued
liabilities
|
29,626
|
8,834
|
|||||
|
Income
taxes payable
|
296
|
(2,551
|
)
|
||||
|
Other,
net
|
(193
|
)
|
(3,562
|
)
|
|||
|
Net
cash provided by operating activities
|
34,766
|
45,791
|
|||||
|
INVESTING
ACTIVITIES
|
|||||||
|
Purchases
of property, plant and equipment
|
(52,050
|
)
|
(32,352
|
)
|
|||
|
Purchased
software
|
(7,493
|
)
|
(147
|
)
|
|||
|
Acquisitions,
net of cash acquired
|
(9,233
|
)
|
(8,112
|
)
|
|||
|
Net
cash (used in) investing activities
|
(68,776
|
)
|
(40,611
|
)
|
|||
|
FINANCING
ACTIVITIES
|
|||||||
|
Proceeds
from borrowings
|
47,761
|
192,996
|
|||||
|
Principal
payments on debt
|
(15,787
|
)
|
(15,677
|
)
|
|||
|
Purchase
of treasury shares
|
-
|
(131,499
|
)
|
||||
|
Purchase
of call options on common stock
|
-
|
(47,688
|
)
|
||||
|
Sale
of common stock warrants
|
-
|
32,961
|
|||||
|
Proceeds
from options exercised
|
2,244
|
1,926
|
|||||
|
Tax
benefit of options exercised
|
730
|
529
|
|||||
|
Debt
issuance costs
|
-
|
(5,434
|
)
|
||||
|
Dividends
paid
|
(5,853
|
)
|
(5,658
|
)
|
|||
|
Net
cash provided by financing activities
|
29,095
|
22,456
|
|||||
|
Effect
of exchange rate changes on cash flows
|
(2,656
|
)
|
3,168
|
||||
|
(Decrease)/increase
in cash and cash equivalents
|
(7,571
|
)
|
30,804
|
||||
|
Cash
and cash equivalents at beginning of year
|
68,237
|
72,771
|
|||||
|
Cash
and cash equivalents at end of period
|
$
|
60,666
|
$
|
103,575
|
|||