216 Airport DriveRochesterNew HampshireFALSE0000819793NYSENYSE00008197932023-04-252023-04-250000819793ain:ClassACommonStockMember2023-04-252023-04-250000819793ain:ClassBCommonStockMember2023-04-252023-04-25

Washington, D.C. 20549
Pursuant to Section 13 OR 15(d) of the Securities Exchange Act of 1934
Date of Report:    April 25, 2023
(Date of earliest event reported)
(Exact name of registrant as specified in its charter)
(State or other jurisdiction
of incorporation)
File Number)
(I.R.S Employer
Identification No.)
216 Airport Drive Rochester, New Hampshire
(Address of principal executive offices)
(Zip Code)
Registrant’s telephone number, including area code       603-330-5850
(Former name or former address, if changed since last report.)
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
    Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
    Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
    Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
    Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
Securities registered pursuant to Section 12(b) of the Act:
Title of each class
Name of each exchange
on which registered
Class A Common Stock, $0.001 par value per share
The New York Stock Exchange (NYSE)
Class B Common Stock, $0.001 par value per share
The New York Stock Exchange (NYSE)
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act 1933 (230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (240.12b-2 of this chapter).
    Emerging growth company
¨    If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act

Item 2.02.  Results of Operations and Financial Condition.
On April 25, 2023 Albany International issued a news release reporting first quarter 2023 financial results. The Company will host a webcast to discuss earnings at 9:00 a.m. Eastern Time on Wednesday April 26, 2023. The news release is furnished as Exhibit 99.1 to this report.
Item 9.01. Financial Statements and Exhibits.
(d)    Exhibits. The following exhibit is being furnished herewith:
99.1    News release dated April 25, 2023 reporting first-quarter 2023 financial results.

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.
/s/ Robert D. Starr
Robert D. Starr
Chief Financial Officer and Treasurer
(Principal Financial Officer)
Date: April 25, 2023

Exhibit No.
Inline XBRL cover page.

Exhibit 99.1
Albany International Reports First-Quarter 2023 Results
ROCHESTER, N.H.--(BUSINESS WIRE)--April 25, 2023--Albany International Corp. (NYSE:AIN) today reported operating results for its first quarter of 2023, which ended March 31, 2023.

"We are pleased to report another strong quarter,” said Albany International President and Chief Executive Officer, Bill Higgins. "Both of our businesses segments performed well and are on-track with their near-term and strategic plans.

"Our revenue of $269 million was up $25 million or 10% year-over-year. Engineered Composites grew first quarter sales approximately 29% compared to the first quarter of 2022 driven by higher program revenues from CH-53K, LEAP and contributions from our smaller programs. Machine Clothing markets remained healthy and the business segment posted stable revenue compared to the first quarter of 2022 with outstanding profitability.

"First quarter 2023 GAAP earnings per share was $0.86. Adjusted earnings per share for the quarter was $0.91, unchanged from 2022's first quarter result. Overall, we're very pleased with the start of the year and are reiterating our guidance for 2023," concluded Higgins.

For the first quarter ended March 31, 2023:
Net sales were $269.1 million, up 10.2%, or 12.2% after adjusting for currency translation, when compared to the prior year, primarily due to year-over-year growth in sales related to the CH-53K and LEAP programs within the Engineered Composites segment
Gross profit of $99.3 million was 8.4% higher than the $91.6 million reported for the same period of 2022; overall gross margin declined by 60 basis points, primarily due to higher contribution from the lower-margin Engineered Composites segment
Selling, Technical, General, and Research (STG&R) expenses were $58.8 million, compared to $52.6 million in the same period of 2022; the increase was driven by higher personnel-related costs and professional fees
Operating income was $40.5 million, compared to $38.8 million in the prior year, an increase of 4.6%
Effective tax rate for the quarter was 28.2%, effectively flat compared to the prior year quarter
Net income attributable to the Company was $26.9 million ($0.86 per share), compared to $27.7 million ($0.87 per share) in the first quarter of 2022; Adjusted earnings per share (or Adjusted EPS, a non-GAAP measure) was $0.91 in the first quarter of both the current and prior year quarter
Adjusted EBITDA (a non-GAAP measure) was $60.4 million, compared to $61.0 million in the first quarter of 2022, a decrease of 1.1%.

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

Outlook for Full-Year 2023
The Company has updated its GAAP earnings per share guidance to incorporate Q1 2023 financial results. All other previously issued guidance for 2023 remains unchanged:
Total company revenue between $1.01 and $1.05 billion;
Effective income tax rate, including tax adjustments, between 28% and 30%;
Total company depreciation and amortization between $70 and $75 million;
Capital expenditures in the range of $90 to $100 million;
GAAP earnings per share between $3.05 and $3.55;
Adjusted earnings per share between $3.10 and $3.60;
Total company Adjusted EBITDA between $225 to $255 million;
Machine Clothing revenue between $590 to $610 million;
Machine Clothing Adjusted EBITDA between $205 and $225 million;
Albany Engineered Composites (AEC) revenue between $420 to $440 million; and
Albany Engineered Composites Adjusted EBITDA between $80 to $90 million.

(in thousands, except per share amounts)
Three Months Ended
March 31,
Net sales$269,096 $244,169 
Cost of goods sold169,778 152,565 
Gross profit99,318 91,604 
Selling, general, and administrative expenses48,479 42,707 
Technical and research expenses10,277 9,889 
Restructuring expenses, net20 254 
Operating income40,542 38,754 
Interest expense, net3,290 3,609 
Other (income)/expense, net(455)(3,928)
Income before income taxes37,707 39,073 
Income tax expense10,621 10,998 
Net income27,086 28,075 
Net income attributable to the noncontrolling interest197 338 
Net income attributable to the Company$26,889 $27,737 
Earnings per share attributable to Company shareholders - Basic$0.86 $0.87 
Earnings per share attributable to Company shareholders - Diluted$0.86 $0.87 
Shares of the Company used in computing earnings per share:
Basic31,131 31,877 
Diluted31,217 31,961 
Dividends declared per share, Class A and Class B$0.25 $0.21 

(in thousands, except share data)
March 31, 2023December 31, 2022
Cash and cash equivalents$304,258 $291,776 
Accounts receivable, net216,035 200,018 
Contract assets, net153,817 148,695 
Inventories153,777 139,050 
Income taxes prepaid and receivable8,711 7,938 
Prepaid expenses and other current assets52,857 50,962 
Total current assets$889,455 $838,439 
Property, plant and equipment, net450,254 445,658 
Intangibles, net32,874 33,811 
Goodwill179,255 178,217 
Deferred income taxes15,843 15,196 
Noncurrent receivables, net27,322 27,913 
Other assets100,755 103,021 
Total assets$1,695,758 $1,642,255 
Accounts payable$76,241 $69,707 
Accrued liabilities103,986 126,385 
Current maturities of long-term debt— — 
Income taxes payable4,464 15,224 
Total current liabilities184,691 211,316 
Long-term debt491,000 439,000 
Other noncurrent liabilities108,371 108,758 
Deferred taxes and other liabilities14,181 15,638 
Total liabilities798,243 774,712 
Preferred stock, par value $5.00 per share; authorized 2,000,000 shares; none issued— — 
Class A Common Stock, par value $.001 per share; authorized 100,000,000 shares; 40,842,023  issued in 2023 and 40,785,434 in 202241 41 
Class B Common Stock, par value $.001 per share; authorized 25,000,000 shares; none issued and outstanding in 2023 and 2022— — 
Additional paid in capital441,917 441,540 
Retained earnings950,415 931,318 
Accumulated items of other comprehensive income:
Translation adjustments(132,970)(146,851)
Pension and postretirement liability adjustments(16,699)(15,783)
Derivative valuation adjustment14,805 17,707 
Treasury stock (Class A), at cost; 9,674,542 shares in 2023 and 2022(364,923)(364,923)
Total Company shareholders' equity892,586 863,049 
Noncontrolling interest4,929 4,494 
Total equity897,515 867,543 
Total liabilities and shareholders' equity$1,695,758 $1,642,255 

(in thousands)
Three Months Ended March 31,
Net income$27,086 $28,075 
Adjustments to reconcile net income to net cash used in operating activities:
Depreciation15,864 15,597 
Amortization1,503 2,165 
Change in deferred taxes and other liabilities(887)1,792 
Impairment of property, plant, equipment, and inventory100 2,868 
Non-cash interest expense280 282 
Compensation and benefits paid or payable in Class A Common Stock378 745 
Provision/(recovery) for credit losses from uncollected receivables and contract assets309 1,858 
Foreign currency remeasurement (gain)/loss on intercompany loans(1,732)(2,385)
Fair value adjustment on foreign currency options58 (977)
Changes in operating assets and liabilities that provided/(used) cash:
Accounts receivable(13,702)(15,674)
Contract assets(4,403)272 
Prepaid expenses and other current assets(2,191)(1,976)
Income taxes prepaid and receivable(693)1,829 
Accounts payable5,214 (375)
Accrued liabilities(23,137)(19,350)
Income taxes payable(10,996)(10,890)
Noncurrent receivables867 614 
Other noncurrent liabilities(1,914)
Other, net2,042 (398)
Net cash used in operating activities(16,393)(5,391)
Purchases of property, plant and equipment(16,275)(15,719)
Purchased software— (35)
Net cash used in investing activities(16,275)(15,754)
Proceeds from borrowings58,000 77,000 
Principal payments on debt(6,000)— 
Principal payments on finance lease liabilities— (390)
Purchase of Treasury shares— (42,230)
Taxes paid in lieu of share issuance(3,136)(770)
Proceeds from options exercised— 
Dividends paid(7,778)(6,742)
Net cash provided by financing activities41,086 26,875 
Effect of exchange rate changes on cash and cash equivalents4,064 (351)
Increase in cash and cash equivalents12,482 5,379 
Cash and cash equivalents at beginning of period291,776 302,036 
Cash and cash equivalents at end of period$304,258 $307,415 

The following table presents the reconciliation of Net sales to net sales excluding the effect of changes in currency translation rates, a non-GAAP measure:
(in thousands, except percentages)Net sales as reported, Q1 2023Decrease due to changes in currency translation ratesQ1 2023 sales on same basis as Q1 2022 currency translation ratesNet sales as reported, Q1 2022% Change compared to Q1 2022, excluding currency rate effects
Machine Clothing$153,222 $(3,468)$156,690 $154,062 1.7 %
Albany Engineered Composites115,874 (1,496)117,370 90,107 30.3 %
Consolidated total$269,096 $(4,964)$274,060 $244,169 12.2 %

The following table presents Gross profit and Gross profit margin:
(in thousands, except percentages)Gross profit,
Q1 2023
Gross profit margin, Q1 2023Gross profit,
Q1 2022
Gross profit margin, Q1 2022
Machine Clothing$77,855 50.8 %$79,345 51.5 %
Albany Engineered Composites21,463 18.5 %12,259 13.6 %
Consolidated total$99,318 36.9 %$91,604 37.5 %

A reconciliation from Net income/(loss) (GAAP) to Adjusted EBITDA (non-GAAP) for the current-year and comparable prior-year periods has been calculated as follows:
Three months ended March 31, 2023
(in thousands)Machine ClothingAlbany Engineered
Corporate expenses
and other
Total Company
Net income/(loss) (GAAP)$48,964 $9,418 $(31,296)$27,086 
Interest expense, net— — 3,290 3,290 
Income tax expense— — 10,621 10,621 
Depreciation and amortization expense4,775 11,664 928 17,367 
EBITDA (non-GAAP)53,739 21,082 (16,457)58,364 
Restructuring expenses, net20 — — 20 
Foreign currency revaluation (gains)/losses (a)1,960 (133)60 1,887 
Acquisition/integration costs— 269 — 269 
Pre-tax (income) attributable to noncontrolling interest — (189)— (189)
Adjusted EBITDA (non-GAAP)$55,719 $21,029 $(16,397)$60,351 
Adjusted EBITDA margin (Adjusted EBITDA divided by Net sales) (non-GAAP)36.4 %18.1 % 22.4 %
Three months ended March 31, 2022
(in thousands)Machine ClothingAlbany Engineered
Corporate expenses
and other
Total Company
Net income/(loss) (GAAP)$49,644 $1,195 $(22,764)$28,075 
Interest expense, net— — 3,609 3,609 
Income tax expense— — 10,998 10,998 
Depreciation and amortization expense4,923 12,039 800 17,762 
EBITDA (non-GAAP)54,567 13,234 (7,357)60,444 
Restructuring expenses, net243 — 11 254 
Foreign currency revaluation (gains)/losses (a)1,057 423 (3,740)(2,260)
Dissolution of business relationships in Russia1,787 — 781 2,568 
Acquisition/integration costs— 282 — 282 
Pre-tax (income) attributable to noncontrolling interest— (252)— (252)
Adjusted EBITDA (non-GAAP)$57,654 $13,687 $(10,305)$61,036 
Adjusted EBITDA margin (Adjusted EBITDA divided by Net sales) (non-GAAP)37.4 %15.2 % 25.0 %

Per share impact of the adjustments to earnings per share are as follows:
Three months ended March 31, 2023
(in thousands, except per share amounts)
Pre tax
After tax
Per share
Restructuring expenses, net$20 $$16 $0.00 
Foreign currency revaluation (gains)/losses (a)1,887 553 1,334 0.04 
Acquisition/integration costs269 77 192 0.01 
Three months ended March 31, 2022
(in thousands, except per share amounts)
Pre tax
After tax
Per share
Restructuring expenses, net$254 $73 $181 $0.01 
Foreign currency revaluation (gains)/losses (a)(2,260)(653)(1,607)(0.05)
Dissolution of business relationships in Russia2,568 332 2,236 0.07 
Acquisition/integration costs282 84 198 0.01 
The following table provides a reconciliation of Earnings per share to Adjusted Earnings per share:
Three months ended March 31,
Per share amounts (Basic)20232022
Earnings per share (GAAP)$0.86 $0.87 
Adjustments, after tax:
Restructuring expenses, net— 0.01 
Foreign currency revaluation (gains)/losses (a)0.04 (0.05)
Dissolution of business relationships in Russia— 0.07 
Acquisition/ integration costs0.01 0.01 
Adjusted Earnings per share (non-GAAP)$0.91 $0.91 

(a) Foreign currency revaluation (gains)/losses represent unrealized gains and losses arising from the remeasurement of monetary assets and liabilities denominated in non-functional currencies on the balance sheet date.

The calculations of net debt are as follows:
(in thousands)March 31, 2023December 31, 2022March 31, 2022
Current maturities of long-term debt$— $— $— 
Long-term debt491,000 439,000 427,000 
Total debt491,000 439,000 427,000 
Cash and cash equivalents304,258 291,776 307,415 
Net debt (non-GAAP)$186,742 $147,224 $119,585 

The calculation of net leverage ratio as of March 31, 2023 is as follows:
Total Company
Twelve months ended Three months endedTrailing twelve months ended
(in thousands)December 31, 2022March 31, 2022March 31, 2023March 31, 2023 (non-GAAP) (b)
Net income/(loss) (GAAP)$96,508 $28,075 $27,086 $95,519 
Interest expense, net14,000 3,609 3,290 13,681 
Income tax expense35,472 10,998 10,621 35,095 
Depreciation and amortization expense69,049 17,762 17,367 68,654 
EBITDA (non-GAAP)215,029 60,444 58,364 212,949 
Restructuring expenses, net106 254 20 (128)
Foreign currency revaluation (gains)/losses (a)(9,829)(2,260)1,887 (5,682)
Dissolution of business relationships in Russia2,275 2,568 — (293)
Pension settlement expense49,128 — — 49,128 
IP address sales(3,420)— — (3,420)
Acquisition/integration costs1,057 282 269 1,044 
Pre-tax (income) attributable to noncontrolling interest(817)(252)(189)(754)
Adjusted EBITDA (non-GAAP)$253,529 $61,036 $60,351 $252,844 
(in thousands, except for net leverage ratio)March 31, 2023
Net debt (non-GAAP)$186,742 
Trailing twelve months Adjusted EBITDA (non-GAAP)252,844 
Net leverage ratio (non-GAAP)0.74 
(b) Calculated as amounts incurred during the twelve months ended December 31, 2022, less those incurred during the three months ended March 31, 2022, plus those incurred during the three months ended March 31, 2023.

The tables below provide a reconciliation of forecasted full-year 2023 Adjusted EBITDA and Adjusted EPS (non-GAAP measures) to the comparable GAAP measures
Forecast of Full Year 2023 Adjusted EBITDAMachine ClothingAEC
(in millions)LowHighLowHigh
Net income attributable to the Company (GAAP) (c)$184 $203 $32 $41 
Income attributable to the noncontrolling interest— — (1)(1)
Interest expense, net— — — — 
Income tax expense— — — — 
Depreciation and amortization20 20 48 49 
EBITDA (non-GAAP)204 223 79 89 
Restructuring expenses, net (d)— — — — 
Foreign currency revaluation (gains)/losses (d)(1)(1)
Acquisition/integration costs (d)— — 
Pre-tax (income)/loss attributable to non-controlling interest— — 
Adjusted EBITDA (non-GAAP)$205 $225 $80 $90 
(c) Interest, Other income/expense and Income taxes are not allocated to the business segments
Forecast of Full Year 2023 Adjusted EBITDATotal Company
(in millions)LowHigh
Net income attributable to the Company (GAAP)$95 $111 
Income attributable to the noncontrolling interest(1)(1)
Interest expense, net16 19 
Income tax expense37 46 
Depreciation and amortization74 75 
EBITDA (non-GAAP)221 250 
Restructuring expenses, net (d)
Foreign currency revaluation (gains)/losses (d)
Acquisition/integration costs (d)
Pre-tax (income)/loss attributable to non-controlling interest
Adjusted EBITDA (non-GAAP)$225 $255 
Total Company
Forecast of Full Year 2023 Earnings per share (basic) (e)LowHigh
Net income attributable to the Company (GAAP)$3.05 $3.55 
Restructuring expenses, net (d)— — 
Foreign currency revaluation (gains)/losses (d)0.04 0.04 
Acquisition/integration costs (d)0.01 0.01 
Adjusted Earnings per share (non-GAAP)$3.10 $3.60 
(d)  Due to the uncertainty of these items, we are unable to forecast these items for 2023
(e) Calculations based on weighted average shares outstanding estimate of approximately 31.1 million

About Albany International Corp.
Albany International is a leading developer and manufacturer of engineered components, using advanced materials processing and automation capabilities, with two core businesses. Machine Clothing is the world’s leading producer of custom-designed, consumable belts essential for the manufacture of all grades of paper products. Albany Engineered Composites is a growing designer and manufacturer of advanced materials-based engineered components for demanding aerospace applications, supporting both commercial and military platforms. Albany International is headquartered in Rochester, New Hampshire, operates 23 facilities in 11 countries, employs more than 4,200 people worldwide, and is listed on the New York Stock Exchange (Symbol AIN). Additional information about the Company and its products and services can be found at

Non-GAAP Measures

This release, including the conference call commentary associated with this release, contains certain non-GAAP measures, that should not be considered in isolation or as a substitute for the related GAAP measures. Such non-GAAP measures include net sales and percent change in net sales, excluding the impact of currency translation effects ; EBITDA, Adjusted EBITDA, and Adjusted EBITDA margin; Net debt; Net leverage ratio; and Adjusted earnings per share (or Adjusted EPS). Management believes that these non-GAAP measures provide additional useful information to investors regarding the Company’s operational performance.

Presenting Net sales and change in Net sales, after currency effects are excluded, provides 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 (calculated as net income excluding interest, income taxes, depreciation and amortization), Adjusted EBITDA, and Adjusted EPS are performance measures that relate to the Company’s continuing operations. The Company defines Adjusted EBITDA as EBITDA excluding costs or benefits that are not reflective of the Company’s ongoing or expected future operational performance. Such excluded costs or benefits do not consist of normal, recurring cash items necessary to generate revenues or operate our business. Adjusted EBITDA margin represents Adjusted EBITDA expressed as a percentage of net sales.

The Company defines Adjusted EPS as basic earnings per share (GAAP), adjusted by the after tax per share amount of costs or benefits not reflective of the Company’s ongoing or expected future operational performance. The income tax effects are calculated using the applicable statutory income tax rate of the jurisdictions where such costs or benefits were incurred or the effective tax rate applicable to total company results.

The Company’s Adjusted EBITDA, Adjusted EBITDA margin, and Adjusted EPS may not be comparable to similarly titled measures of other companies.

Net debt aids investors in understanding the Company’s debt position if all available cash were applied to pay down indebtedness.

Net leverage ratio informs the investors of the Company's financial leverage at the end of the reporting period, providing an indicator of the Company's ability to repay its debt.

We encourage investors to review our financial statements and publicly-filed reports in their entirety and not to rely on any single financial measure.

Forward-Looking Statements

This press release may contain statements, estimates, guidance or projections that constitute “forward-looking statements” as defined under U.S. federal securities laws. Generally, the words “believe,” “expect,” “intend,” “estimate,” “anticipate,” “project,” “will,” “should,” “look for,” “guidance,” “guide,” and similar expressions identify forward-looking statements, which generally are not historical in nature. Because forward-looking statements are subject to certain risks and uncertainties (including, without limitation, those set forth in the Company’s most recent Annual Report on Form 10-K or Quarterly Report on Form 10-Q), actual results may differ materially from those expressed or implied by such forward-looking statements.

Forward-looking statements in this release or in the webcast include, without limitation, statements about macroeconomic conditions, including inflationary cost pressures, as well as global events, which include but are not limited to, the ongoing COVID-19 pandemic and the Russia-Ukraine military conflicts; paper-industry trends and conditions during 2022 and in future years; expectations in 2022 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.

John Hobbs