SEC Filing | Albany International Corp

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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 (Date of earliest event reported):			April 10, 2014
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 (518) 445-2200
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 240.13a-4(c))

Item 8.01 Other Events

Effective January 1, 2014, Albany International Corp. (the “Company) changed its business segment reporting by recasting certain expenses previously identified as Research and Unallocated expenses to existing segments. The Company has two reportable segments: Machine Clothing (MC) and Albany Engineered Composites (AEC), and had Research and Unallocated expenses that were not allocated to the segments. Research and development expenses will now be included in segment operating expenses. Prior to this change, Unallocated expenses included long-term incentive compensation for all company employees. To the extent such programs are related to MC and AEC employees, such expenses will now be included in segment operating expenses. Additionally, the segment previously referred to as Unallocated expenses, will now be referred to as Corporate expenses.

These changes are being made to be consistent with how the chief operating decision maker assesses Company performance. The purpose of this Form 8-K is to show the effect of these changes on previously reported segment operating income, research and development expenses, depreciation and amortization expenses, and Adjusted EBITDA, as detailed in Exhibit 99.1.

Item 9.01 Financial Statements and Exhibits

(d) Exhibits.

99.1 Schedules showing the effect on operating income, research and development expenses, depreciation and amortization, and Adjusted EBITDA resulting from changes in reportable segments for quarterly periods of 2013, full year 2013, and full year 2012.

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/ John B. Cozzolino

Name: John B. Cozzolino

Title: Chief Financial Officer and Treasurer

(Principal Financial Officer)

Date: April 10, 2014

EXHIBIT INDEX

Exhibit No. Description

99.1

Schedules showing the effect on operating income, research and development expenses, depreciation and amortization, and Adjusted EBITDA resulting from changes in reportable segments for quarterly periods of 2013, full year 2013, and full year 2012.

Three months ended March 31, 2013
(in thousands)	As previously reported		Reclassify long-term incentive compensation		Reclassify Research and development expenses		Totals after segment change
Operating income/(loss)
Machine Clothing (MC)	$42,908		($966	)	($4,386	)	$37,556
Albany Engineered Composites (AEC)	(2,063	)	(400	)	(1,940	)	(4,403	)
Research expenses	(6,991	)	-		6,991		-
Corporate expenses	(11,336	)	1,366		(665	)	(10,635	)
Operating income/(loss)	$22,518		$-		$-		$22,518


Three months ended June 30, 2013
(in thousands)	As previously reported		Reclassify long-term incentive compensation		Reclassify Research and development expenses		Totals after segment change
Operating income/(loss)
Machine Clothing (MC)	$20,699		($1,063	)	($4,815	)	$14,821
Albany Engineered Composites (AEC)	(1,825	)	(346	)	(2,507	)	(4,678	)
Research expenses	(7,673	)	-		7,673		-
Corporate expenses	(14,714	)	1,409		(351	)	(13,656	)
Operating income/(loss)	($3,513	)	$-		$-		($3,513	)


Three months ended September 30, 2013
(in thousands)	As previously reported		Reclassify long-term incentive compensation		Reclassify Research and development expenses		Totals after segment change
Operating income/(loss)
Machine Clothing (MC)	$33,196		($1,144	)	($4,142	)	$27,910
Albany Engineered Composites (AEC)	(572	)	(505	)	(2,874	)	(3,951	)
Research expenses	(7,418	)	-		7,418		-
Corporate expenses	(11,951	)	1,649		(402	)	(10,704	)
Operating income/(loss)	$13,255		$-		$-		$13,255


Three months ended December 31, 2013
(in thousands)	As previously reported		Reclassify long-term incentive compensation		Reclassify Research and development expenses		Totals after segment change
Operating income/(loss)
Machine Clothing (MC)	$39,895		($820	)	($4,992	)	$34,083
Albany Engineered Composites (AEC)	1,486		(114	)	(2,744	)	(1,372	)
Research expenses	(8,138	)	-		8,138		-
Corporate expenses	(13,412	)	934		(402	)	(12,880	)
Operating income/(loss)	$19,831		$-		$-		$19,831

Six months ended June 30, 2013

(in thousands)	As previously reported		Reclassify long-term incentive compensation		Reclassify Research and development expenses		Totals after segment change
Operating income/(loss)
Machine Clothing (MC)	$63,607		($2,029	)	($9,201	)	$52,377
Albany Engineered Composites (AEC)	(3,888	)	(746	)	(4,447	)	(9,081	)
Research expenses	(14,664	)	-		14,664		-
Corporate expenses	(26,050	)	2,775		(1,016	)	(24,291	)
Operating income/(loss)	$19,005		$-		$-		$19,005


Nine months ended September 30, 2013
(in thousands)	As previously reported		Reclassify long-term incentive compensation		Reclassify Research and development expenses		Totals after segment change
Operating income/(loss)
Machine Clothing (MC)	$96,803		($3,173	)	($13,343	)	$80,287
Albany Engineered Composites (AEC)	(4,460	)	(1,251	)	(7,321	)	(13,032	)
Research expenses	(22,082	)	-		22,082		-
Corporate expenses	(38,001	)	4,424		(1,418	)	(34,995	)
Operating income/(loss)	$32,260		$-		$-		$32,260


Year ended December 31, 2013
(in thousands)	As previously reported		Reclassify long-term incentive compensation		Reclassify Research and development expenses		Totals after segment change
Operating income/(loss)
Machine Clothing (MC)	$136,698		($3,993	)	($18,335	)	$114,370
Albany Engineered Composites (AEC)	(2,974	)	(1,365	)	(10,065	)	(14,404	)
Research expenses	(30,220	)	-		30,220		-
Corporate expenses	(51,413	)	5,358		(1,820	)	(47,875	)
Operating income/(loss)	$52,091		$-		$-		$52,091


Year ended December 31, 2012
(in thousands)	As previously reported		Reclassify long-term incentive compensation		Reclassify Research and development expenses		Totals after segment change
Operating income/(loss)
Machine Clothing (MC)	$163,873		($2,830	)	($17,685	)	$143,358
Albany Engineered Composites (AEC)	(840	)	(1,389	)	(8,689	)	(10,918	)
Research expenses	(27,616	)	-		27,616		-
Corporate expenses - pension settlement	(119,735	)	-		-		(119,735	)
Corporate expenses - other	(59,818	)	4,219		(1,242	)	(56,841	)
Operating income/(loss)	($44,136	)	$2,830		$-		($44,136	)

Research and development expenses by segment:


Three months ended

(in thousands)	March 31, 2013	June 30, 2013	September 30, 2013	December 31, 2013
Research and development expenses
Machine Clothing	$4,386	$4,815	$4,142	$4,992
Albany Engineered Composites	1,940	2,507	2,874	2,744
Corporate expenses	665	351	402	402
Total	$6,991	$7,673	$7,418	$8,138


Year to date periods ended

(in thousands)	June 30, 2013	September 30, 2013	December 31, 2013	December 31, 2012
Research and development expenses
Machine Clothing	$9,201	$13,343	$18,335	$17,685
Albany Engineered Composites	4,447	7,321	10,065	8,689
Corporate expenses	1,016	1,418	1,820	1,242
Total	$14,664	$22,082	$30,220	$27,616


Depreciation and amortization expense tables

Three months ended March 31, 2013
(in thousands)	As previously reported	Reclassify Research and development expenses		Totals after segment change
Depreciation and amortization expense
Machine Clothing	$11,561	$309		$11,870
Albany Engineered Composites	1,701	30		1,731
Research expenses	339	(339	)	-
Corporate expenses and other	2,273	-		2,273
Total	$15,874	$-		$15,874


Three months ended June 30, 2013
(in thousands)	As previously reported	Reclassify Research and development expenses		Totals after segment change
Depreciation and amortization expense
Machine Clothing	$11,479	$330		$11,809
Albany Engineered Composites	1,874	190		2,064
Research expenses	520	(520	)	-
Corporate expenses and other	2,208	-		2,208
Total	$16,081	$-		$16,081


Three months ended September 30, 2013
(in thousands)	As previously reported	Reclassify Research and development expenses		Totals after segment change
Depreciation and amortization expense
Machine Clothing	$11,084	$320		$11,404
Albany Engineered Composites	2,009	290		2,299
Research expenses	610	(610	)	-
Corporate expenses and other	2,094	-		2,094
Total	$15,797	$-		$15,797


Three months ended December 31, 2013
(in thousands)	As previously reported	Reclassify Research and development expenses		Totals after segment change
Depreciation and amortization expense
Machine Clothing	$11,113	$325		$11,438
Albany Engineered Composites	2,056	310		2,366
Research expenses	635	(635	)	-
Corporate expenses and other	2,233			2,233
Total	$16,037	$-		$16,037


Six months ended June 30, 2013
(in thousands)	As previously reported	Reclassify Research and development expenses		Totals after segment change
Depreciation and amortization expense
Machine Clothing	$23,040	$639		$23,679
Albany Engineered Composites	3,575	220		3,795
Research expenses	859	(859	)	-
Corporate expenses and other	4,481	-		4,481
Total	$31,955	$-		$31,955


Nine months ended September 30, 2013
(in thousands)	As previously reported	Reclassify Research and development expenses		Totals after segment change
Depreciation and amortization expense
Machine Clothing	$34,124	$959		$35,083
Albany Engineered Composites	5,584	510		6,094
Research expenses	1,469	(1,469	)	-
Corporate expenses and other	6,575	-		6,575
Total	$47,752	$-		$47,752


Year ended December 31, 2013
(in thousands)	As previously reported	Reclassify Research and development expenses		Totals after segment change
Depreciation and amortization expense
Machine Clothing	$45,237	$1,284		$46,521
Engineered Composites	7,640	820		8,460
Research expenses	2,104	(2,104	)	-
Corporate and other	8,808	-		8,808
Total	$63,789	$-		$63,789


Year ended December 31, 2012
(in thousands)	As previously reported	Reclassify Research and development expenses		Totals after segment change
Depreciation and amortization expense
Machine Clothing	$46,843	$1,209		$48,052
Engineered Composites	5,920	43		5,963
Research expenses	1,252	(1,252	)	-
Corporate and other	9,052	-		9,052
Total	$63,067	$-		$63,067

Adjusted EBITDA tables

Three months ended March 31, 2013, as previously reported									Three months ended March 31, 2013, after segment change
(in thousands)	MC		AEC		Research and Unallocated		Total Company		Machine Clothing		AEC		Corporate expenses and other		Total Company
Net income	$42,908		($2,063	)	($29,334	)	$11,511		$37,556		($4,403	)	($21,642	)	$11,511
Loss/(income) from discontinued operations	-		-		-		-		-		-		-		-
Interest expense, net	-		-		4,025		4,025		-		-		4,025		4,025
Income tax (benefit)/expense	-		-		6,248		6,248		-		-		6,248		6,248
Depreciation and amortization	11,561		1,701		2,612		15,874		11,870		1,731		2,273		15,874
EBITDA	54,469		(362	)	(16,449	)	37,658		49,426		(2,672	)	(9,096	)	37,658
Restructuring and other, net	193		443		-		636		193		443		-		636
Foreign currency revaluation losses/(gains)	(743	)	-		11		(732	)	(743	)	-		11		(732	)
Gain on sale of former manufacturing facility	-		-		(3,763	)	(3,763	)	-		-		(3,763	)	(3,763	)
Income attributable to noncontrolling interest in ASC	-		-		-		-		-		-		-		-
Adjusted EBITDA	$53,919		$81		($20,201	)	$33,799		$48,876		($2,229	)	($12,848	)	$33,799


Three months ended June 30, 2013, as previously reported									Three months ended June 30, 2013, after segment change
(in thousands)	Machine Clothing		AEC		Research and Unallocated		Total Company		Machine Clothing		AEC		Corporate expenses and other		Total Company
Net income	$20,699		($1,825	)	($26,253	)	($7,379	)	$14,821		($4,678	)	($17,522	)	($7,379	)
Loss/(income) from discontinued operations	-		-		351		351		-		-		351		351
Interest expense, net	-		-		3,547		3,547		-		-		3,547		3,547
Income tax (benefit)/expense	-		-		(2,243	)	(2,243	)	-		-		(2,243	)	(2,243	)
Depreciation and amortization	11,479		1,874		2,728		16,081		11,809		2,064		2,208		16,081
EBITDA	32,178		49		(21,870	)	10,357		26,630		(2,614	)	(13,659	)	10,357
Restructuring and other, net	24,230		91		-		24,321		24,230		91		-		24,321
Foreign currency revaluation losses/(gains)	(452	)	-		1,896		1,444		(452	)	-		1,896		1,444
Gain on sale of former manufacturing facility	-		-		-		-		-		-		-		-
Income attributable to noncontrolling interest in ASC	-		-		-		-		-		-		-		-
Adjusted EBITDA	$55,956		$140		($19,974	)	$36,122		$50,408		($2,523	)	($11,763	)	$36,122


Three months ended September 30, 2013, as previously reported									Three months ended September 30, 2013, after segment change
(in thousands)	Machine Clothing		AEC		Research and Unallocated		Total Company		Machine Clothing		AEC		Corporate expenses and other		Total Company
Net income	$33,196		($572	)	($27,926	)	$4,698		$27,910		($3,951	)	($19,261	)	$4,698
Loss/(income) from discontinued operations	-		-		-		-		-		-		-		-
Interest expense, net	-		-		3,484		3,484		-		-		3,484		3,484
Income tax (benefit)/expense	-		-		2,381		2,381		-		-		2,381		2,381
Depreciation and amortization	11,084		2,009		2,704		15,797		11,404		2,299		2,094		15,797
EBITDA	44,280		1,437		(19,357	)	26,360		39,314		(1,652	)	(11,302	)	26,360
Restructuring and other, net	2,250		6		-		2,256		2,250		6		-		2,256
Foreign currency revaluation losses/(gains)	1,328		-		1,975		3,303		1,328		-		1,975		3,303
Gain on sale of former manufacturing facility	-		-		-		-		-		-		-		-
Income attributable to noncontrolling interest in ASC	-		-		-		-		-		-		-		-
Adjusted EBITDA	$47,858		$1,443		($17,382	)	$31,919		$42,892		($1,646	)	($9,327	)	$31,919

Three months ended December 31, 2013, as previously reported									Three months ended December 31, 2013, after segment change
(in thousands)	Machine Clothing		AEC		Research and Unallocated		Total Company		Machine Clothing		AEC		Corporate expenses and other		Total Company
Net income	$39,895		$1,486		($32,553	)	$8,828		$34,083		($1,372	)	($23,883	)	$8,828
Loss/(income) from discontinued operations	-		-		(305	)	(305	)	-		-		(305	)	(305	)
Interest expense, net	-		-		2,703		2,703		-		-		2,703		2,703
Income tax (benefit)/expense	-		-		6,986		6,986		-		-		6,986		6,986
Depreciation and amortization	11,113		2,056		2,868		16,037		11,438		2,366		2,233		16,037
EBITDA	51,008		3,542		(20,301	)	34,249		45,521		994		(12,266	)	34,249
Restructuring and other, net	(2,105	)	-		-		(2,105	)	(2,105	)	-		-		(2,105	)
Foreign currency revaluation losses/(gains)	163		41		1,348		1,552		163		41		1,348		1,552
Gain on sale of former manufacturing facility	-		-		-		-		-		-		-		-
Income attributable to noncontrolling interest in ASC	-		(141	)	-		(141	)	-		(141	)	-		(141	)
Adjusted EBITDA	$49,066		$3,442		($18,953	)	$33,555		$43,579		$894		($10,918	)	$33,555



Six months ended June 30, 2013, as previously reported									Six months ended June 30, 2013 after segment change
(in thousands)	Machine Clothing		AEC		Research and Unallocated		Total Company		Machine Clothing		AEC		Corporate expenses and other		Total Company
Net income	$63,607		($3,888	)	($55,587	)	$4,132		$52,377		($9,081	)	($39,164	)	$4,132
Loss/(income) from discontinued operations	-		-		351		351		-		-		351		351
Interest expense, net	-		-		7,572		7,572		-		-		7,572		7,572
Income tax (benefit)/expense	-		-		4,005		4,005		-		-		4,005		4,005
Depreciation and amortization	23,040		3,575		5,340		31,955		23,679		3,795		4,481		31,955
EBITDA	86,647		(313	)	(38,319	)	48,015		76,056		(5,286	)	(22,755	)	48,015
Restructuring and other, net	24,423		534		-		24,957		24,423		534		-		24,957
Foreign currency revaluation losses/(gains)	(1,195	)	-		1,907		712		(1,195	)	-		1,907		712
Pension settlement charges	-		-		(3,763	)	(3,763	)	-		-		(3,763	)	(3,763	)
Income attributable to noncontrolling interest in ASC	-		-		-		-		-		-		-		-
Adjusted EBITDA	$109,875		$221		($40,175	)	$69,921		$99,284		($4,752	)	($24,611	)	$69,921



Nine months ended September 30, 2013, as previously reported									Nine months ended September 30, 2013 after segment change
(in thousands)	Machine Clothing		AEC		Research and Unallocated		Total Company		Machine Clothing		AEC		Corporate expenses and other		Total Company
Net income	$96,803		($4,460	)	($83,513	)	$8,830		$80,287		($13,032	)	($58,425	)	$8,830
Loss/(income) from discontinued operations	-		-		351		351		-		-		351		351
Interest expense, net	-		-		11,056		11,056		-		-		11,056		11,056
Income tax (benefit)/expense	-		-		6,386		6,386		-		-		6,386		6,386
Depreciation and amortization	34,124		5,584		8,044		47,752		35,083		6,094		6,575		47,752
EBITDA	130,927		1,124		(57,676	)	74,375		115,370		(6,938	)	(34,057	)	74,375
Restructuring and other, net	26,673		540		-		27,213		26,673		540		-		27,213
Foreign currency revaluation losses/(gains)	133		-		3,882		4,015		133		-		3,882		4,015
Pension settlement charges	-		-		(3,763	)	(3,763	)	-		-		(3,763	)	(3,763	)
Income attributable to noncontrolling interest in ASC	-		-		-		-		-		-		-		-
Adjusted EBITDA	$157,733		$1,664		($57,557	)	$101,840		$142,176		($6,398	)	($33,938	)	$101,840


Year ended December 31, 2013, as previously reported									Year ended December 31, 2013 after segment change
(in thousands)	Machine Clothing		AEC		Research and Unallocated		Total Company		Machine Clothing		AEC		Corporate expenses and other		Total Company
Net income	$136,698		($2,974	)	($116,066	)	$17,658		$114,370		($14,404	)	($82,308	)	$17,658
Loss/(income) from discontinued operations	-		-		46		46		-		-		46		46
Interest expense, net	-		-		13,759		13,759		-		-		13,759		13,759
Income tax (benefit)/expense	-		-		13,372		13,372		-		-		13,372		13,372
Depreciation and amortization	45,237		7,640		10,912		63,789		46,521		8,460		8,808		63,789
EBITDA	181,935		4,666		(77,977	)	108,624		160,891		(5,944	)	(46,323	)	108,624
Restructuring and other, net	24,568		540		-		25,108		24,568		540		-		25,108
Foreign currency revaluation losses/(gains)	296		41		5,230		5,567		296		41		5,230		5,567
Pension settlement charges	-		-		(3,763	)	(3,763	)	-		-		(3,763	)	(3,763	)
Income attributable to noncontrolling interest in ASC	-		(141	)	-		(141	)	-		(141	)	-		(141	)
Adjusted EBITDA	$206,799		$5,106		($76,510	)	$135,395		$185,755		($5,504	)	($44,856	)	$135,395


Year ended December 31, 2012, as previously reported								Year ended December 31, 2012, after segment change
(in thousands)	Machine Clothing	AEC		Research and Unallocated		Total Company		Machine Clothing	AEC		Corporate expenses and other		Total Company
Net income	$163,873	($840	)	($132,056	)	$30,977		$143,358	($10,918	)	($101,463	)	$30,977
Loss/(income) from discontinued operations	-	-		(71,820	)	(71,820	)	-	-		(71,820	)	(71,820	)
Interest expense, net	-	-		16,601		16,601		-	-		16,601		16,601
Income tax (benefit)/expense	-	-		(27,523	)	(27,523	)	-	-		(27,523	)	(27,523	)
Depreciation and amortization	46,843	5,920		10,304		63,067		48,052	5,963		9,052		63,067
EBITDA	210,716	5,080		(204,494	)	11,302		191,410	(4,955	)	(175,153	)	11,302
Restructuring and other, net	7,386	-		(325	)	7,061		7,386	(325	)	-		7,061
Foreign currency revaluation losses/(gains)	1,633	2		5,715		7,350		1,633	2		5,715		7,350
Pension settlement charges	-	-		119,735		119,735		-	-		119,735		119,735
Income attributable to noncontrolling interest in ASC	-	-		-		-		-	-		-		-
Adjusted EBITDA	$219,735	$5,082		($79,369	)	$145,448		$200,429	($5,278	)	($49,703	)	$145,448