(X) |
QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
( ) |
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
Delaware |
14-0462060 |
||
(State or
other jurisdiction of incorporation or organization) |
(IRS Employer Identification No.) |
||
1373
Broadway, Albany, New York |
12204 |
||
(Address of
principal executive offices) |
(Zip Code) |
Part
I |
Financial information |
|||||||||
Item 1. Financial Statements (unaudited) |
||||||||||
Consolidated statements of operations and retained earnings three months ended March 31, 2006 and 2005 |
||||||||||
Consolidated balance sheets March 31, 2006 and December 31, 2005 |
||||||||||
Consolidated statements of cash flows three months ended March 31, 2006 and 2005 |
||||||||||
Notes to consolidated financial statements |
||||||||||
Item 2. Managements Discussion and Analysis of Financial Condition and Results of Operations |
||||||||||
Item 3. Quantitative and Qualitative Disclosures about Market Risk |
||||||||||
Item 4. Controls and Procedures |
||||||||||
Part
II |
Other information |
|||||||||
Item 1. Legal Proceedings |
||||||||||
Item 1A. Risk Factors |
||||||||||
Item 2. Unregistered Sales of Equity Securities and Use of Proceeds |
||||||||||
Item 3. Defaults upon Senior Securities |
||||||||||
Item 4. Submission of Matters to a Vote of Security Holders |
||||||||||
Item 5. Other Information |
||||||||||
Item 6. Exhibits |
Three Months Ended March 31, |
|||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|
2006 |
2005 |
||||||||||
Net
sales |
$ | 251,223 | $ | 241,064 | |||||||
Cost of goods
sold |
147,247 | 142,729 | |||||||||
Gross
profit |
103,976 | 98,335 | |||||||||
Selling,
technical, general and research expenses |
74,562 | 68,541 | |||||||||
Operating
income |
29,414 | 29,794 | |||||||||
Interest
expense, net |
1,879 | 3,689 | |||||||||
Other
expense, net |
909 | 1,318 | |||||||||
Income before
income taxes |
26,626 | 24,787 | |||||||||
Income tax
expense |
7,988 | 6,048 | |||||||||
Income before
associated companies |
18,638 | 18,739 | |||||||||
Equity in
earnings of associated companies |
177 | 170 | |||||||||
Net
income |
18,815 | 18,909 | |||||||||
Retained
earnings, beginning of period |
495,018 | 434,057 | |||||||||
Dividends
declared |
(2,677 | ) | (2,534 | ) | |||||||
Retained
earnings, end of period |
$ | 511,156 | $ | 450,432 | |||||||
Earnings per
share: |
|||||||||||
Basic |
$ | 0.60 | $ | 0.60 | |||||||
Diluted |
$ | 0.59 | $ | 0.59 | |||||||
Shares used
in computing earnings per share: |
|||||||||||
Basic |
31,419 | 31,534 | |||||||||
Diluted |
31,953 | 32,231 | |||||||||
Dividends per
share |
$ | 0.09 | $ | 0.08 |
(unaudited) March 31, 2006 |
December 31, 2005 |
|||||||||
---|---|---|---|---|---|---|---|---|---|---|
ASSETS |
||||||||||
Cash and cash
equivalents |
$ | 129,764 | $ | 72,771 | ||||||
Accounts
receivable, net |
136,474 | 132,247 | ||||||||
Note
receivable |
18,163 | 17,827 | ||||||||
Inventories |
211,021 | 194,398 | ||||||||
Deferred
taxes |
22,164 | 22,012 | ||||||||
Prepaid
expenses |
9,805 | 7,892 | ||||||||
Total current
assets |
527,391 | 447,147 | ||||||||
Property,
plant and equipment, net |
352,287 | 335,446 | ||||||||
Investments
in associated companies |
6,682 | 6,403 | ||||||||
Intangibles |
11,854 | 12,076 | ||||||||
Goodwill |
159,342 | 153,001 | ||||||||
Deferred
taxes |
94,595 | 75,875 | ||||||||
Cash
surrender value of life insurance policies |
38,632 | 37,778 | ||||||||
Other
assets |
24,074 | 19,321 | ||||||||
Total
assets |
$ | 1,214,857 | $ | 1,087,047 | ||||||
LIABILITIES
AND SHAREHOLDERS EQUITY |
||||||||||
Notes and
loans payable |
$ | 6,875 | $ | 6,151 | ||||||
Accounts
payable |
42,663 | 36,775 | ||||||||
Accrued
liabilities |
122,880 | 116,395 | ||||||||
Current
maturities of long-term debt |
1,013 | 1,009 | ||||||||
Income taxes
payable and deferred |
32,985 | 14,793 | ||||||||
Total current
liabilities |
206,416 | 175,123 | ||||||||
Long-term
debt |
341,865 | 162,597 | ||||||||
Other
noncurrent liabilities |
149,770 | 144,905 | ||||||||
Deferred
taxes and other credits |
30,239 | 29,504 | ||||||||
Total
liabilities |
728,290 | 512,129 | ||||||||
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 34,307,097 in 2006 and 34,176,010 in 2005 |
34 | 34 | ||||||||
Class B
Common Stock, par value $.001 per share; authorized 25,000,000 shares; issued and outstanding 3,236,098 in 2006 and 3,236,476 in 2005 |
3 | 3 | ||||||||
Additional
paid in capital |
309,270 | 319,372 | ||||||||
Retained
earnings |
511,156 | 495,018 | ||||||||
Accumulated
items of other comprehensive income: |
||||||||||
Translation
adjustments |
(64,488 | ) | (71,205 | ) | ||||||
Pension
liability adjustment |
(40,340 | ) | (40,340 | ) | ||||||
715,635 | 702,882 | |||||||||
Less treasury
stock (Class A), at cost (7,791,439 shares in 2006 and 5,050,159 shares in 2005) |
229,068 | 127,964 | ||||||||
Total
shareholders equity |
486,567 | 574,918 | ||||||||
Total
liabilities and shareholders equity |
$ | 1,214,857 | $ | 1,087,047 |
Three Months Ended March 31, |
|||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|
2006 |
2005 |
||||||||||
OPERATING
ACTIVITIES |
|||||||||||
Net
income |
$ | 18,815 | $ | 18,909 | |||||||
Adjustments
to reconcile net income to net cash provided by operating activities: |
|||||||||||
Equity in
earnings of associated companies |
(177 | ) | (170 | ) | |||||||
Depreciation |
13,174 | ||||||||||
Amortization |
778 | 725 | |||||||||
Provision for
deferred income taxes, other credits and long-term liabilities |
893 | 5,200 | |||||||||
Provision for
write-off of equipment |
95 | 807 | |||||||||
Increase in
cash surrender value of life insurance |
(854 | ) | (798 | ) | |||||||
Unrealized
currency transaction gains and losses |
1,721 | (569 | ) | ||||||||
Shares
contributed to ESOP |
3,145 | 2,368 | |||||||||
Stock option
expense |
386 | | |||||||||
Tax benefit
of options exercised |
(226 | ) | 1,261 | ||||||||
Changes in
operating assets and liabilities, net of business acquisition: |
|||||||||||
Accounts
receivable |
(3,312 | ) | 4,409 | ||||||||
Note
receivable |
(336 | ) | (384 | ) | |||||||
Inventories |
(14,711 | ) | (8,451 | ) | |||||||
Prepaid
expenses |
(1,786 | ) | (339 | ) | |||||||
Accounts
payable |
4,895 | 464 | |||||||||
Accrued
liabilities |
5,331 | (2,100 | ) | ||||||||
Income taxes
payable |
(290 | ) | (4,841 | ) | |||||||
Other,
net |
(849 | ) | (2,454 | ) | |||||||
Net cash
provided by operating activities |
26,692 | 27,413 | |||||||||
INVESTING
ACTIVITIES |
|||||||||||
Purchases of
property, plant and equipment |
(19,764 | ) | (9,508 | ) | |||||||
Purchased
software |
(85 | ) | (411 | ) | |||||||
Acquisitions,
net of cash acquired |
(6,232 | ) | | ||||||||
Net cash used
in investing activities |
(26,081 | ) | (9,919 | ) | |||||||
FINANCING
ACTIVITIES |
|||||||||||
Proceeds from
borrowings |
186,875 | 8,040 | |||||||||
Principal
payments on debt |
(9,105 | ) | (15,493 | ) | |||||||
Purchase of
treasury shares |
(101,104 | ) | | ||||||||
Purchase of
call options on common stock |
(47,688 | ) | | ||||||||
Sale of
common stock warrants |
32,961 | | |||||||||
Proceeds from
options exercised |
869 | 3,814 | |||||||||
Tax benefit
of options exercised |
226 | | |||||||||
Debt issuance
costs |
(4,704 | ) | | ||||||||
Dividends
paid |
(2,910 | ) | (2,509 | ) | |||||||
Net cash
provided by (used in) financing activities |
55,420 | (6,148 | ) | ||||||||
Effect of
exchange rate changes on cash flows |
962 | (4,445 | ) | ||||||||
Increase in
cash and cash equivalents |
56,993 | 6,901 | |||||||||
Cash and cash
equivalents at beginning of year |
72,771 | 58,982 | |||||||||
Cash and cash
equivalents at end of period |
$ | 129,764 | $ | 65,883 |
(in thousands) |
|
March 31, 2006 |
|
December 31, 2005 |
||||||
---|---|---|---|---|---|---|---|---|---|---|
Finished
goods |
$ | 117,470 | $ | 105,800 | ||||||
Work in
process |
56,161 | 55,039 | ||||||||
Raw material and supplies |
37,390 | 33,559 | ||||||||
Total inventories |
$ | 211,021 | $ | 194,398 |
(in thousands) |
|
Balance at December 31, 2005 |
|
Amortization |
|
Currency translation/other |
|
Balance at March 31, 2006 |
||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Amortized
intangible assets: |
||||||||||||||||||
Patents |
$ | 2,756 | ($111 | ) | $ | 10 | $ | 2,655 | ||||||||||
Trade
names |
2,658 | (130 | ) | 9 | 2,537 | |||||||||||||
Deferred pension costs |
6,662 | | | 6,662 | ||||||||||||||
Total amortized intangible assets |
$ | 12,076 | ($241 | ) | $ | 19 | $ | 11,854 |
(in thousands) |
|
Balance at December 31, 2005 |
|
Acquistion |
|
Currency translation/other |
|
Balance at March 31, 2006 |
||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Goodwill |
$ | 153,001 | $ | 4,459 | $ | 1,882 | $ | 159,342 |
Year |
|
Annual amortization (in thousands) |
||||
---|---|---|---|---|---|---|
2006 |
$ | 1,100 | ||||
2007 |
1,100 | |||||
2008 |
1,100 | |||||
2009 |
1,100 | |||||
2010 |
500 |
Three Months Ended March 31, |
|||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|
(in thousands) |
|
2006 |
|
2005 |
|||||||
Currency
transactions |
($763 | ) | ($1,048 | ) | |||||||
Debt
costs |
481 | 326 | |||||||||
Securitization
program |
792 | 853 | |||||||||
License
expense |
(54 | ) | 549 | ||||||||
Settlement of
legal claims |
240 | 235 | |||||||||
Other miscellaneous expense |
213 | 403 | |||||||||
Total |
$ | 909 | $ | 1,318 |
March 31, |
|||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|
(in thousands, except market price data) |
|
2006 |
|
2005 |
|||||||
Net income available to common shareholders |
$ | 18,815 | $ | 18,909 | |||||||
Weighted
average number of shares: |
|||||||||||
Weighted
average number of shares used in calculating basic earnings per share |
31,419 | 31,534 | |||||||||
Effect of
dilutive stock-based compensation plans: |
|||||||||||
Stock
options |
485 | 697 | |||||||||
Long-term incentive plan |
49 | | |||||||||
Weighted average number of shares used in calculating diluted earnings per share |
31,953 | 32,231 | |||||||||
Average market price of common stock used for calculation of dilutive shares |
$ | 37.05 | $ | 32.76 | |||||||
Earnings per
share: |
|||||||||||
Basic |
$ | 0.60 | $ | 0.60 | |||||||
Diluted |
$ | 0.59 | $ | 0.59 |
|
Class A Shares |
|
Class B Shares |
|
Less: Treasury Shares |
|
Net shares Outstanding |
|||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
December 31,
2005 |
34,176,010 | 3,236,476 | (5,050,159 | ) | 32,362,327 | |||||||||||||
March 31, 2006 |
34,307,097 | 3,236,098 | (7,791,439 | ) | 29,751,756 |
Three Months Ended March 31, |
|||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|
(in thousands) |
|
2006 |
|
2005 |
|||||||
Net income |
$ | 18,815 | $ | 18,909 | |||||||
Other
comprehensive income/(loss), before tax: |
|||||||||||
Foreign
currency translation adjustments |
6,717 | (25,796 | ) | ||||||||
Current
period change in fair value of interest rate swaps |
| 2,337 | |||||||||
Income taxes related to the change in fair value of interest rate swaps |
| (911 | ) | ||||||||
Other comprehensive income/(loss), net of tax |
6,717 | (24,370 | ) | ||||||||
Comprehensive income/(loss) |
$ | 25,532 | ($5,461 | ) |
(in thousands) |
|
Class A Common Stock |
|
Class B Common Stock |
|
Additional paid in capital |
|
Retained earnings |
|
Accumulated items of other comprehensive income |
|
Treasury stock |
|
Total Shareholders Equity |
||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
December 31,
2005 |
$ | 34 | $ | 3 | $ | 319,372 | $ | 495,018 | ($111,545 | ) | ($127,964 | ) | $ | 574,918 | ||||||||||||||||
Net
income |
18,815 | 18,815 | ||||||||||||||||||||||||||||
Shares
contributed to ESOP |
3,145 | 3,145 | ||||||||||||||||||||||||||||
Purchase of
treasury shares |
(101,104 | ) | (101,104 | ) | ||||||||||||||||||||||||||
Purchase of
call options on common stock |
(47,688 | ) | (47,688 | ) | ||||||||||||||||||||||||||
Sale of
common stock warrants |
32,960 | 32,960 | ||||||||||||||||||||||||||||
Proceeds from
options exercised |
869 | 869 | ||||||||||||||||||||||||||||
Dividends
declared |
(2,677 | ) | (2,677 | ) | ||||||||||||||||||||||||||
Stock option
expense |
386 | 386 | ||||||||||||||||||||||||||||
Tax benefit
of options exercised |
226 | 226 | ||||||||||||||||||||||||||||
Cummulative translation adjustment |
6,717 | 6,717 | ||||||||||||||||||||||||||||
March 31, 2006 |
$ | 34 | $ | 3 | $ | 309,270 | $ | 511,156 | ($104,828 | ) | ($229,068 | ) | $ | 486,567 |
Three Months Ended March 31, |
|||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|
(in thousands) |
|
2006 |
|
2005 |
|||||||
Net
Sales |
|||||||||||
Paper Machine
Clothing |
$ | 183,896 | $ | 179,577 | |||||||
Applied
Technologies |
37,842 | 32,161 | |||||||||
Albany Door Systems |
29,485 | 29,326 | |||||||||
Consolidated total |
$ | 251,223 | $ | 241,064 | |||||||
Operating
Income |
|||||||||||
Paper Machine
Clothing |
$ | 40,556 | $ | 41,904 | |||||||
Applied
Technologies |
6,148 | 5,454 | |||||||||
Albany Door
Systems |
2,285 | 1,766 | |||||||||
Research
expense |
(8,539 | ) | (7,100 | ) | |||||||
Unallocated expenses |
(11,036 | ) | (12,230 | ) | |||||||
Operating
income before reconciling items |
29,414 | 29,794 | |||||||||
Reconciling
items: |
|||||||||||
Interest
expense, net |
(1,879 | ) | (3,689 | ) | |||||||
Other expense, net |
(909 | ) | (1,318 | ) | |||||||
Consolidated income before income taxes |
$ | 26,626 | $ | 24,787 |
Three Months Ended March 31, |
|||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|
(in thousands, except per share amounts) |
|
2006 |
|
2005 |
|||||||
Net income, as
reported |
$ | 18,815 | $ | 18,909 | |||||||
Deduct: |
|||||||||||
Total
stock-based employee compensation expense determined under fair value based method for all awards, net of taxes |
| (368 | ) | ||||||||
Net income, pro forma |
$ | 18,815 | $ | 18,541 | |||||||
Basic net
income per share: |
|||||||||||
As
reported |
$ | 0.60 | $ | 0.60 | |||||||
Pro
forma |
0.60 | 0.59 | |||||||||
Diluted net
income per share: |
|||||||||||
As
reported |
$ | 0.59 | $ | 0.59 | |||||||
Pro forma |
0.59 | 0.58 |
Weighted average |
||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
|
Option shares |
|
Exercise price |
|
Remaining life |
|
Aggregate Intrinsic value (000s) |
|||||||||||
Outstanding
at December 31, 2005 |
1,453,120 | $ | 20.26 | |||||||||||||||
Exercised |
(45,150 | ) | 19.12 | |||||||||||||||
Canceled |
(18,650 | ) | 20.56 | |||||||||||||||
Outstanding at March 31, 2006 |
1,389,320 | 20.29 | 11.5 | $ | 10,008 | |||||||||||||
Exerciseable at March 31, 2006 |
986,520 | 18.91 | 10.8 | 8,436 |
|
Option shares |
|
Weighted Average Exercise price |
|||||||
---|---|---|---|---|---|---|---|---|---|---|
Nonvested at
December 31, 2005 |
233,700 | $ | 11.47 | |||||||
Canceled |
(16,650 | ) | 10.90 | |||||||
Nonvested at March 31, 2006 |
217,050 | $ | 11.51 |
Outstanding Options |
Exercisable Options |
||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Exercise Price Range |
|
Vested |
|
Nonvested |
|
Weighted Average Remaining Contractual Life |
|
Weighted Average Execise Price |
|
Number |
|
Weighted Average Execise Price |
|||||||||||||||
$10.56 |
94,670 | | 13.0 | $ | 10.56 | 94,670 | $ | 10.56 | |||||||||||||||||||
$15.00$15.69 |
97,950 | 10.6 | 15.51 | 97,950 | 15.51 | ||||||||||||||||||||||
$16.25$16.75 |
53,300 | 5.1 | 16.46 | 53,300 | 16.46 | ||||||||||||||||||||||
$18.63$18.75 |
61,400 | 7.6 | 18.73 | 61,400 | 18.73 | ||||||||||||||||||||||
$19.38 |
87,150 | 10.6 | 19.38 | 87,150 | 19.38 | ||||||||||||||||||||||
$19.75 |
78,400 | 10.2 | 19.75 | 78,400 | 19.75 | ||||||||||||||||||||||
$20.45$20.63 |
307,650 | 167,050 | 14.1 | 20.55 | 321,600 | 20.55 | |||||||||||||||||||||
$22.25 |
191,750 | 8.8 | 22.25 | 191,750 | 22.25 | ||||||||||||||||||||||
$25.56 |
200,000 | 50,000 | 11.6 | 25.56 | | | |||||||||||||||||||||
1,172,270 | 217,050 | 11.7 | $ | 20.29 | 986,220 | $ | 18.92 |
Pension Plans |
Other Benefits |
||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
(in thousands) |
|
2006 |
|
2005 |
|
2006 |
|
2005 |
|||||||||||
Service
cost |
$ | 1,761 | $ | 1,735 | $ | 752 | $ | 795 | |||||||||||
Interest
cost |
4,471 | 4,652 | 1,553 | 1,822 | |||||||||||||||
Expected
return on plan assets |
(4,405 | ) | (4,245 | ) | | | |||||||||||||
Amortization: |
|||||||||||||||||||
Transition
obligation |
27 | 6 | | | |||||||||||||||
Prior service
cost/(credit) |
237 | 257 | (1,138 | ) | (237 | ) | |||||||||||||
Net actuarial loss |
1,361 | 1,355 | 1,203 | 794 | |||||||||||||||
Net periodic benefit costs |
$ | 3,452 | $ | 3,760 | $ | 2,370 | $ | 3,174 |
(in thousands) |
|
March 31, 2006 |
|
December 31, 2005 |
||||||
---|---|---|---|---|---|---|---|---|---|---|
Convertible
notes issued in March 2006 with fixed interest rates of 2.25%, due in year 2026 |
$ | 180,000 | | |||||||
Private
placement with a fixed interest rate of 5.34%, due in years 2013 through 2017 |
150,000 | 150,000 | ||||||||
Various notes
and mortgages relative to operations principally outside the United States, at an average rate of 5.94% in 2006 and 5.91% in 2005 due in varying
amounts through 2008 |
1,674 | 2,312 | ||||||||
Industrial revenue financings at an average interest rate of 6.93% in 2006 and 6.89% in 2005, due in varying amounts
through 2009 |
11,204 | 11,294 | ||||||||
Long term
debt |
342,878 | 163,606 | ||||||||
Less: current portion |
(1,013 | ) | (1,009 | ) | ||||||
Long term debt, net of current portion |
$ | 341,865 | $ | 162,597 |
Three months ended March 31, |
||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
(in thousands) |
|
2006 |
|
2005 |
|
Decrease in 2006 sales due to changes in currency translation rates |
|
Percent change |
|
Percent change Excluding currency rate effect |
||||||||||||
Paper Machine
Clothing |
$ | 183,896 | $ | 179,577 | ($3,243 | ) | 2.4 | % | 4.2 | % | ||||||||||||
Applied
Technologies |
37,842 | 32,161 | (554 | ) | 17.7 | % | 19.4 | % | ||||||||||||||
Albany Door Systems |
29,485 | 29,326 | (2,116 | ) | 0.5 | % | 7.8 | % | ||||||||||||||
Consolidated total |
$ | 251,223 | $ | 241,064 | ($5,913 | ) | 4.2 | % | 6.7 | % |
Three Months Ended March 31, |
|||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|
(in thousands) |
|
2006 |
|
2005 |
|||||||
Operating
Income |
|||||||||||
Paper Machine
Clothing |
$ | 40,556 | $ | 41,904 | |||||||
Applied
Technologies |
6,148 | 5,454 | |||||||||
Albany Door
Systems |
2,285 | 1,766 | |||||||||
Research
expense |
(8,539 | ) | (7,100 | ) | |||||||
Unallocated expenses |
(11,036 | ) | (12,230 | ) | |||||||
Operating
income before reconciling items |
29,414 | 29,794 | |||||||||
Reconciling
items: |
|||||||||||
Interest
expense, net |
(1,879 | ) | (3,689 | ) | |||||||
Other expense, net |
(909 | ) | (1,318 | ) | |||||||
Consolidated income before income taxes |
$ | 26,626 | $ | 24,787 |
|
In October 2005, the Company issued $150 million principal amount of 5.34 percent notes with a ten-year average life, directly to Prudential Capital. |
|
In March 2006, the Company issued $180 million principal amount of 2.25 percent convertible notes. In connection with the offering, the Company entered into convertible note hedge and warrant transactions with respect to its Class A Common Stock at a net cost of $14.7 million. These transactions are intended to reduce the potential dilution upon future conversion of the notes. |
|
During the first quarter, the Company acquired 2,741,280 shares of its Class A Common Stock at a cost of $101.1 million. The Company remains authorized to purchase 758,720 additional shares without further announcement. |
|
On April 14, 2006, the Company entered into a new $460 million five-year Revolving Credit Agreement, which is currently undrawn. The agreement replaced a similar $460 million revolving credit facility. The new agreement with its principal banks provides the Company greater strategic flexibility at a lower cost and extends availability to April 14, 2011. |
(b) |
Changes in internal control over financial reporting. |
Period |
|
Total number of shares purchased |
|
Average price paid |
|
Total number of shares purchased as part of publicly announced plans or programs |
|
Maximum number of shares that may yet be purchased under the plans or programs |
||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
January 1 to
31, 2006 |
663,700 | $ | 36.20 | 0 | 0 | (a) | ||||||||||||
March 1 to 31, 2006 |
2,077,580 | 37.10 | 0 | 0 | (a) |
Exhibit No. |
Description |
|||||
---|---|---|---|---|---|---|
31.1 |
Certification of the Chief Executive Officer pursuant to Rule 13a-14(a)/15d-14(a) of the Exchange Act. |
|||||
31.2 |
Certification of the Chief Financial Officer pursuant to Rule 13a-14(a)/15d-14(a) of the Exchange Act. |
Exhibit No. |
Description | |||||
---|---|---|---|---|---|---|
32.1 |
Certification pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 (Subsections (a) and (b) of Section 1350, Chapter 63 of Title 18,
United States Code) |
|||||
99.1 |
Quantitative and qualitative disclosures about market risks as reported at December 31, 2005. |
By |
/s/ Michael C. Nahl Michael C. Nahl Executive Vice President and Chief Financial Officer (Principal Financial Officer) |
1. |
I have reviewed this quarterly report on Form 10-Q of Albany International Corp.; |
2. |
Based on my knowledge, this quarterly report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this quarterly report; |
3. |
Based upon my knowledge, the financial statements, and other financial information included in this quarterly report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this quarterly report; |
4. |
The registrants other certifying officers and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15 (e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and we have: |
a) |
Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this quarterly report is being prepared; |
b) |
Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles; |
c) |
Evaluated the effectiveness of the registrants disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report, based on such evaluation; and |
d) |
Disclosed in this report any change in the registrants internal control over financial reporting that occurred during the registrants most recent fiscal quarter that has materially affected, or is reasonably likely to materially affect, the registrants internal control over financial reporting, and |
5. |
The registrants other certifying officers and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrants auditors and the audit committee of registrants board of directors: |
a) |
All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting, which are reasonably likely to adversely affect the registrants ability to record, process, summarize, and report financial data and |
b) |
Any fraud, whether or not material, that involves management or other employees who have significant role in the registrants internal control over financial reporting. |
By |
/s/ Joseph G. Morone Joseph G. Morone President and Chief Executive Officer (Principal Executive Officer) |
1. |
I have reviewed this quarterly report on Form 10-Q of Albany International Corp.; |
2. |
Based on my knowledge, this quarterly report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this quarterly report; |
3. |
Based upon my knowledge, the financial statements, and other financial information included in this quarterly report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this quarterly report; |
4. |
The registrants other certifying officers and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15 (e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and we have: |
a) |
Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this quarterly report is being prepared; |
b) |
Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles; |
c) |
Evaluated the effectiveness of the registrants disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report, based on such evaluation; and |
d) |
Disclosed in this report any change in the registrants internal control over financial reporting that occurred during the registrants most recent fiscal quarter that has materially affected, or is reasonably likely to materially affect, the registrants internal control over financial reporting, and |
5. |
The registrants other certifying officers and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrants auditors and the audit committee of registrants board of directors: |
a) |
All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting, which are reasonably likely to adversely affect the registrants ability to record, process, summarize, and report financial data and |
b) |
Any fraud, whether or not material, that involves management or other employees who have significant role in the registrants internal control over financial reporting. |
By |
/s/ Michael C. Nahl Michael C. Nahl Executive Vice President and Chief Financial Officer (Principal Financial Officer) |
(1) |
The Report fully complies with the requirements of section 13(a) or 15(d) of the Securities and Exchange Act of 1934; and |
(2) |
The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company. |