ain-20240226
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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:    February 26, 2024
(Date of earliest event reported)
ALBANY INTERNATIONAL CORP.
(Exact name of registrant as specified in its charter)
Delaware1-1002614-0462060
(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       603-330-5800
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 240.13e-4(c))
Securities registered pursuant to Section 12(b) of the Act:
Title of each classTrading
Symbol(s)
Name of each exchange
on which registered
Class A Common Stock, $0.001 par value per shareAIN
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 February 26, 2024 Albany International issued a news release reporting fourth quarter 2023 financial results. The Company will host a webcast to discuss earnings at 9:00 a.m. Eastern Time on Tuesday February 27, 2024. 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 February 26, 2024 reporting fourth-quarter 2023 financial results.



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/ Robert D. Starr
Name:Robert D. Starr
Title:Executive Vice President and Chief Financial Officer
(Principal Financial Officer)
Date: February 26, 2024


EXHIBIT INDEX
Exhibit No.Description
99.1
104Inline XBRL cover page.







Exhibit 99.1
https://cdn.kscope.io/6ad9b5ba1adfcfe549922b39e31994bc-image.jpg
Albany International Reports Fourth-Quarter 2023 Results

ROCHESTER, N.H.— (BUSINESS WIRE) -- February 26, 2024 — Albany International Corp. (NYSE:AIN) today reported operating results for its full year and fourth quarter of 2023, which ended December 31, 2023.

"In 2023, our business remained focused on operational execution and delivered outstanding financial performance," said Gunnar Kleveland, President and Chief Executive Officer. "I am pleased to report record revenues of $1.15 billion in 2023, up 11% from last year. GAAP EPS grew in the mid-teens, and Adjusted EPS of $4.06, was up 4.9% from last year. Importantly the company delivered 2023 free cash flow of $64 million, up significantly from the $32 million generated in 2022.

"Fourth quarter results were particularly strong with outstanding contributions from both of our business segments," continued Kleveland. "Our first full quarter of Heimbach integration is complete, and we are on track to deliver on the promise of that acquisition. Meanwhile, our core Machine Clothing operations grew fourth quarter revenue and expanded profit margins despite soft business conditions in Europe. The Engineered Composites segment continues to grow. We have completed another year of growth on our commercial programs, and recent program wins were also important drivers of year-over-year revenue and profit growth in the business. We are well positioned for another strong year in 2024."

For the fourth-quarter ended December 31, 2023:
Net revenues were $323.6 million, up 20.4%, or 19.6% after adjusting for currency translation, when compared to the prior year, primarily driven by Heimbach's contribution during the fourth quarter and growth in the Engineered Composites segment.
Gross profit of $119.9 million was 23.5% higher than the $97.1 million reported for the same period of 2022, mainly due to higher net revenues from the Machine Clothing segment due to the addition of Heimbach and higher net revenues from new programs and commercial programs in the Engineered Composites segment.
Selling, General, and Administrative expenses were $67.7 million, compared to $49.4 million in the same period of 2022. The increase was due to the addition of Heimbach.
Operating income was $41.8 million, compared to $37.9 million in the prior year, an increase of 10.2%.
The effective tax rate for the quarter was 22.6% compared to a 42.0% effective tax rate in the fourth quarter of 2022. Favorable discrete tax items in 2023 vs. unfavorable discrete tax items in 2022 and a shift in taxable income to lower-rate jurisdictions resulted in a lower effective tax rate for the fourth quarter of 2023.
Net income attributable to the Company was $30.5 million ($0.97 per share), compared to $18.1 million ($0.58 per share) in the fourth quarter of 2022. Adjusted Diluted earnings per share (or Adjusted EPS, a non-GAAP measure) was $1.22 per share, compared to $0.75 per share for the same period of last year.
Adjusted EBITDA (a non-GAAP measure) was $75.0 million, compared to $58.4 million in the fourth quarter of 2022, an increase of 28.5%.




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

"We are on sound financial footing as we enter 2024," said Robert Starr, Chief Financial Officer. "Our businesses continue to deliver outstanding execution that will help sustain solid results and generate healthy cash flow this year. We will continue to invest thoughtfully to drive long-term growth."

Outlook for the Full-Year 2024
Albany International's initial financial guidance for the full-year 2024:
Total company revenue between $1.26 and $1.33 billion;
Effective income tax rate between 29% and 31%;
Capital expenditures in the range of $90 to $95 million;
Diluted earnings per share between $3.55 and $4.05.
This includes:
Higher pension expense due to the expiration of the prior service cost benefit (approximately $0.09 per share);
Higher Depreciation and Amortization due to the recording of Heimbach-acquired assets at fair value (approximately $0.08 per share); and
• Higher interest expense resulting from the termination of interest rate swaps in the fourth quarter of 2024 (approximately $0.06 per share, assuming the current interest rate environment).
Total company Adjusted EBITDA between $260 to $290 million;
Machine Clothing revenue between $760 to $790 million;
Machine Clothing Adjusted EBITDA between $230 and $250 million;
Albany Engineered Composites (AEC) revenue between $500 to $540 million; and
Albany Engineered Composites Adjusted EBITDA between $97 to $107 million.





ALBANY INTERNATIONAL CORP.
CONSOLIDATED STATEMENTS OF INCOME
(in thousands, except per share amounts)
(unaudited)
Three Months Ended
December 31,
Twelve Months Ended
December 31,
2023202220232022
Net revenues$323,584 $268,786 $1,147,909 $1,034,887 
Cost of goods sold203,723 171,694 724,191 645,105 
Gross profit119,861 97,092 423,718 389,782 
Selling, general, and administrative expenses67,701 49,388 214,915 168,713 
Technical and research expenses10,324 9,957 40,627 39,941 
Restructuring expenses, net55 (162)282 106 
Operating income41,781 37,909 167,894 181,022 
Interest expense, net3,552 2,664 13,601 14,000 
Pension settlement expense— — — 49,128 
Other (income)/expense, net(1,253)3,805 (6,163)(14,086)
Income before income taxes39,482 31,440 160,456 131,980 
Income tax expense8,938 13,199 48,846 35,472 
Net income30,544 18,241 111,610 96,508 
Net income attributable to the noncontrolling interest94 111 490 746 
Net income attributable to the Company$30,450 $18,130 $111,120 $95,762 
Earnings per share attributable to Company shareholders - Basic$0.98 $0.58 $3.56 $3.06 
Earnings per share attributable to Company shareholders - Diluted$0.97 $0.58 $3.55 $3.04 
Shares of the Company used in computing earnings per share:
Basic31,195 31,111 31,171 31,339 
Diluted31,332 31,267 31,276 31,455 
Dividends declared per share, Class A$0.26 $0.25 $1.01 $0.88 



ALBANY INTERNATIONAL CORP.
CONSOLIDATED BALANCE SHEETS
(in thousands, except share data)
(unaudited)
December 31, 2023December 31, 2022
ASSETS
Cash and cash equivalents$173,420 $291,776 
Accounts receivable, net287,781 200,018 
Contract assets, net182,281 148,695 
Inventories169,567 139,050 
Income taxes prepaid and receivable11,043 7,938 
Prepaid expenses and other current assets53,872 50,962 
Total current assets$877,964 $838,439 
Property, plant and equipment, net601,989 445,658 
Intangibles, net44,646 33,811 
Goodwill180,181 178,217 
Deferred income taxes22,941 15,196 
Noncurrent receivables, net4,392 27,913 
Other assets102,901 103,021 
Total assets$1,835,014 $1,642,255 
LIABILITIES AND SHAREHOLDERS' EQUITY
Accounts payable$87,104 $69,707 
Accrued liabilities142,988 126,385 
Current maturities of long-term debt4,218 — 
Income taxes payable14,369 15,224 
Total current liabilities248,679 211,316 
Long-term debt452,667 439,000 
Other noncurrent liabilities139,385 108,758 
Deferred taxes and other liabilities26,963 15,638 
Total liabilities867,694 774,712 
SHAREHOLDERS' EQUITY
Preferred stock, par value $5.00 per share; authorized 2,000,000 shares; none issued—  
Class A Common Stock, par value $0.001 per share; authorized 100,000,000 shares; 40,856,910 issued in 2023 and 40,785,434 in 202241 41 
Additional paid in capital448,218 441,540 
Retained earnings1,010,942 931,318 
Accumulated items of other comprehensive income:
Translation adjustments(124,901)(146,851)
Pension and postretirement liability adjustments(17,346)(15,783)
Derivative valuation adjustment9,079 17,707 
Treasury stock (Class A), at cost; 9,661,845 shares in 2023 and 9,674,542 in 2022(364,665)(364,923)
Total Company shareholders' equity961,368 863,049 
Noncontrolling interest5,952 4,494 
Total equity967,320 867,543 
Total liabilities and shareholders' equity$1,835,014 $1,642,255 



ALBANY INTERNATIONAL CORP.
CONSOLIDATED STATEMENTS OF CASH FLOWS
(in thousands)
(unaudited)
Twelve Months Ended December 31,
20232022
OPERATING ACTIVITIES
Net income$111,610 $96,508 
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation70,374 62,480 
Amortization6,359 6,569 
Change in deferred taxes and other liabilities(2,046)(8,496)
Impairment of property, plant, equipment, and inventory1,773 1,808 
Non-cash interest expense1,404 1,118 
Non-cash portion of pension settlement expense— 42,657 
Compensation and benefits paid or payable in Class A Common Stock6,936 4,527 
Provision/(recovery) for credit losses from uncollected receivables and contract assets640 1,408 
Foreign currency remeasurement (gain)/loss on intercompany loans(2,831)(4,434)
Fair value adjustment on foreign currency options(139)(509)
Changes in operating assets and liabilities that provided/(used) cash, net of impact of business acquisition:
Accounts receivable(11,038)(14,301)
Contract assets(32,156)(36,434)
Inventories15,093 (24,541)
Prepaid expenses and other current assets1,530 (4,134)
Income taxes prepaid and receivable(2,897)(6,005)
Accounts payable(5,672)8,572 
Accrued liabilities(10,441)3,226 
Income taxes payable(1,988)183 
Noncurrent receivables3,723 3,911 
Other noncurrent liabilities(9,783)(10,133)
Other, net7,605 4,234 
Net cash provided by operating activities148,056 128,214 
INVESTING ACTIVITIES
Purchase of business, net of cash acquired(133,470)— 
Purchases of property, plant and equipment(83,560)(93,675)
Purchased software(869)(2,673)
Net cash used in investing activities(217,899)(96,348)
FINANCING ACTIVITIES
Proceeds from borrowings78,040 162,000 
Principal payments on debt(92,274)(73,000)
Principal payments on finance lease liabilities— (654)
Debt acquisition costs(4,108)— 
Purchase of Treasury shares— (84,780)
Taxes paid in lieu of share issuance(3,136)(770)
Proceeds from options exercised— 17 
Dividends paid(31,163)(26,465)
Net cash used in financing activities(52,641)(23,652)
Effect of exchange rate changes on cash and cash equivalents4,128 (18,474)
Increase/(decrease) in cash and cash equivalents(118,356)(10,260)
Cash and cash equivalents at beginning of period291,776 302,036 
Cash and cash equivalents at end of period$173,420 $291,776 






Financial tables and reconciliation of non-GAAP measures to comparable GAAP measures
The following tables present Net revenues and the effect of changes in currency translation rates:
(in thousands, except percentages)Net revenues as reported, Q4 2023Increase due to changes in currency translation ratesQ4 2023 revenues on same basis as Q4 2022 currency translation ratesNet revenues as reported, Q4 2022% Change compared to Q4 2022, excluding currency rate effects
Machine Clothing$191,741 $1,088 $190,653 $150,340 26.8 %
Albany Engineered Composites131,843 896 130,947 118,446 10.6 %
Consolidated total$323,584 $1,984 $321,600 $268,786 19.6 %
(in thousands, except percentages)Net revenues as reported, YTD 2023Decrease/(increase) due to changes in currency translation ratesYTD 2023 revenues on same basis as 2022 currency translation ratesNet revenues as reported, YTD 2022% Change compared to 2022, excluding currency rate effects
Machine Clothing$670,768 $(2,596)$673,364 $609,461 10.5 %
Albany Engineered Composites477,141 1,747 475,394 425,426 11.7 %
Consolidated total$1,147,909 $(849)$1,148,758 $1,034,887 11.0 %

The following tables present Gross profit and Gross profit margin:
(in thousands, except percentages)Gross profit,
Q4 2023
Gross profit margin, Q4 2023Gross profit,
Q4 2022
Gross profit margin, Q4 2022
Machine Clothing$93,527 48.8 %$74,851 49.8 %
Albany Engineered Composites26,334 20.0 %22,241 18.8 %
Consolidated total$119,861 37.0 %$97,092 36.1 %

(in thousands, except percentages)Gross profit,
YTD 2023
Gross profit margin, YTD 2023Gross profit,
YTD 2022
Gross profit margin, YTD 2022
Machine Clothing$331,558 49.4 %$312,285 51.2 %
Albany Engineered Composites92,160 19.3 %77,497 18.2 %
Consolidated total$423,718 36.9 %$389,782 37.7 %
























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 December 31, 2023
(in thousands)Machine ClothingAlbany Engineered
Composites
Corporate expenses
and other
Total Company
Net income/(loss) (GAAP)$45,978 $14,127 $(29,561)$30,544 
Interest expense, net— — 3,552 3,552 
Income tax expense— — 8,938 8,938 
Depreciation and amortization expense8,209 12,784 962 21,955 
EBITDA (non-GAAP)54,187 26,911 (16,109)64,989 
Restructuring expenses, net55 — — 55 
Foreign currency revaluation (gains)/losses (a)2,247 44 725 3,016 
CEO transition expenses— — 667 667 
Inventory step-up impacting Cost of goods sold4,110 — — 4,110 
Acquisition/integration costs984 268 1,124 2,376 
Pre-tax (income) attributable to noncontrolling interest (24)(167)— (191)
Adjusted EBITDA (non-GAAP)$61,559 $27,056 $(13,593)$75,022 
Adjusted EBITDA margin (Adjusted EBITDA divided by Net revenues) (non-GAAP)32.1 %20.5 % 23.2 %
Three months ended December 31, 2022
(in thousands)Machine ClothingAlbany Engineered
Composites
Corporate expenses
and other
Total Company
Net income/(loss) (GAAP)$44,462 $10,891 $(37,112)$18,241 
Interest expense, net— — 2,664 2,664 
Income tax expense— — 13,199 13,199 
Depreciation and amortization expense4,767 11,410 964 17,141 
EBITDA (non-GAAP)49,229 22,301 (20,285)51,245 
Restructuring expenses, net(163)— (162)
Foreign currency revaluation (gains)/losses (a)3,170 (83)7,663 10,750 
Acquisition/integration costs— 251 — 251 
Dissolution of business relationships in Russia(79)— — (79)
IP address sales— — (3,420)(3,420)
Pre-tax (income) attributable to noncontrolling interest— (184)— (184)
Adjusted EBITDA (non-GAAP)$52,157 $22,285 $(16,041)$58,401 
Adjusted EBITDA margin (Adjusted EBITDA divided by Net revenues) (non-GAAP)34.7 %18.8 % 21.7 %



Twelve months ended December 31, 2023
(in thousands)Machine ClothingAlbany Engineered
Composites
Corporate expenses
and other
Total Company
Net income/(loss) (GAAP)$199,378 $41,587 $(129,355)$111,610 
Interest expense, net— — 13,601 13,601 
Income tax expense— — 48,846 48,846 
Depreciation and amortization expense23,891 49,030 3,812 76,733 
EBITDA (non-GAAP)223,269 90,617 (63,096)250,790 
Restructuring expenses, net282 — — 282 
Foreign currency revaluation (gains)/losses (a)4,117 63 (2,884)1,296 
CEO transition expenses— — 2,719 2,719 
Inventory step-up impacting Cost of goods sold5,480 — — 5,480 
Acquisition/integration costs984 1,081 3,129 5,194 
Pre-tax (income) attributable to noncontrolling interest (24)(641)— (665)
Adjusted EBITDA (non-GAAP)$234,108 $91,120 $(60,132)$265,096 
Adjusted EBITDA margin (Adjusted EBITDA divided by Net revenues) (non-GAAP)34.9 %19.1 % 23.1 %
Twelve months ended December 31, 2022
(in thousands)Machine ClothingAlbany Engineered
Composites
Corporate expenses
and other
Total Company
Net income/(loss) (GAAP)$206,214 $31,579 $(141,285)$96,508 
Interest expense, net— — 14,000 14,000 
Income tax expense— — 35,472 35,472 
Depreciation and amortization expense19,483 46,202 3,364 69,049 
EBITDA (non-GAAP)225,697 77,781 (88,449)215,029 
Restructuring expenses, net92 — 14 106 
Foreign currency revaluation (gains)/losses (a)(520)672 (9,981)(9,829)
Dissolution of business relationships in Russia1,494 — 781 2,275 
Pension settlement expense— — 49,128 49,128 
IP address sales— — (3,420)(3,420)
Acquisition/integration costs— 1,057 — 1,057 
Pre-tax (income) attributable to noncontrolling interest— (817)— (817)
Adjusted EBITDA (non-GAAP)$226,763 $78,693 $(51,927)$253,529 
Adjusted EBITDA margin (Adjusted EBITDA divided by Net revenues) (non-GAAP)37.2 %18.5 % 24.5 %




Per share impact of the adjustments to diluted earnings per share are as follows:
Three months ended December 31, 2023
(in thousands, except per share amounts)
Pre tax
Amounts
Tax
Effect
After tax
Effect
Per share
Effect
Restructuring expenses, net$55 $13 $42 $0.00 
Foreign currency revaluation (gains)/losses (a)3,016 933 2,083 0.07 
CEO transition expenses667 — 667 0.02 
Inventory step-up impacting Cost of goods sold4,110 908 3,202 0.10 
Acquisition/integration costs2,376 486 1,890 0.06 
Three months ended December 31, 2022
(in thousands, except per share amounts)
Pre tax
Amounts
Tax
Effect
After tax
Effect
Per share
Effect
Restructuring expenses, net$(162)$(41)$(121)$0.00 
Foreign currency revaluation (gains)/losses (a)10,750 3,247 7,503 0.24 
Dissolution of business relationships in Russia(79)(9)(70)0.00 
IP address sales(3,420)(872)(2,548)(0.08)
Acquisition/integration costs251 75 176 0.01 
Year ended December 31, 2023
(in thousands, except per share amounts)
Pre tax
Amounts
Tax
Effect
After tax
Effect
Per share
Effect
Restructuring expenses, net$282 $70 $212 $0.01 
Foreign currency revaluation (gains)/losses (a)1,296 416 880 0.03 
CEO transition expenses2,719 — 2,719 0.09 
Withholding tax related to internal restructuring— (3,026)3,026 0.10 
Inventory step-up impacting Cost of goods sold5,480 1,211 4,269 0.14 
Acquisition/integration costs5,194 951 4,243 0.14 
Year ended December 31, 2022
(in thousands, except per share amounts)
Pre tax
Amounts
Tax
Effect
After tax
Effect
Per share
Effect
Restructuring expenses, net$106 $34 $72 $0.01 
Foreign currency revaluation (gains)/losses (a)(9,829)(2,582)(7,247)(0.23)
Dissolution of business relationships in Russia2,275 305 1,970 0.06 
Pension settlement expense49,128 11,947 37,181 1.20 
Tax impact of stranded OCI benefit from Tax Cuts and Job Act (TCJA) for pension liability (b)— 5,217 (5,217)(0.17)
IP address sales(3,420)(872)(2,548)(0.08)
Acquisition/integration costs1,057 316 741 0.04 





The following table provides a reconciliation of Earnings per share to Adjusted Diluted Earnings per share:
Three months ended December 31,Twelve months ended December 31,
Per share amounts2023202220232022
Earnings per share attributable to Company shareholders - Basic (GAAP)$0.98 $0.58 $3.56 $3.06 
Effect of dilutive stock-based compensation plans(0.01)— (0.01)(0.02)
Earnings per share attributable to Company shareholders - Diluted (GAAP)$0.97 $0.58 $3.55 $3.04 
Adjustments, after tax:
Restructuring expenses, net — 0.01 0.01 
Foreign currency revaluation (gains)/losses (a)0.07 0.24 0.03 (0.23)
CEO transition expenses0.02 — 0.09 — 
Inventory step-up impacting Cost of goods sold0.10 — 0.14 — 
Dissolution of business relationships in Russia —  0.06 
Pension settlement charge —  1.20 
Withholding tax related to internal restructuring — 0.10 — 
Tax impact of stranded OCI benefit from Tax Cuts and Job Act (TCJA) for pension liability (b) —  (0.17)
IP address sales (0.08) (0.08)
Acquisition/integration costs0.06 0.01 0.14 0.04 
Adjusted Diluted Earnings per share (non-GAAP)$1.22 $0.75 $4.06 $3.87 
(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.
(b) Our Adjusted EPS excluded the benefit from the reclassification of stranded income tax effects caused by the TCJA associated with the US pension plan liability that was eliminated in September 2022, a one-time event that would not recur in the future. Such stranded income tax effect represented a one-time benefit that distorted the effective tax rate for the quarter and year-to-date ended September 30, 2022, and would not be indicative of ongoing or expected future income tax rate at the Company. Management believes excluding pension settlement expense and its income tax impact, including the stranded income tax effects, from its Adjusted EBITDA and Adjusted EPS for the quarter and year-to-date ended September 30, 2022 would provide investors a transparent view and enhanced ability to better assess the Company’s ongoing operational and financial performance.


The calculations of net debt are as follows:
(in thousands)December 31, 2023September 30, 2023June 30, 2023March 31, 2023December 31, 2022
Current maturities of long-term debt$4,218 $27,246 $— $— $— 
Long-term debt452,667 463,339 487,000 491,000 439,000 
Total debt456,885 490,585 487,000 491,000 439,000 
Cash and cash equivalents173,420 171,506 300,916 304,258 291,776 
Net debt (non GAAP)$283,465 $319,079 $186,084 $186,742 $147,224 












The calculation of net leverage ratio as of December 31, 2023 is as follows:
Total Company
Twelve months ended
(in thousands)December 31, 2023
Net income/(loss) (GAAP)$111,610 
Interest expense, net13,601 
Income tax expense48,846 
Depreciation and amortization expense76,733 
EBITDA (non-GAAP)250,790 
Restructuring expenses, net282 
Foreign currency revaluation (gains)/losses (a)1,296 
CEO transition expenses2,719 
Inventory step-up impacting Cost of goods sold5,480 
Acquisition/integration costs5,194 
Pre-tax (income) attributable to noncontrolling interest (665)
Adjusted EBITDA (non-GAAP)$265,096 
(in thousands, except for net leverage ratio)December 31, 2023
Net debt (non-GAAP)$283,465 
Adjusted EBITDA (non-GAAP)265,096 
Net leverage ratio (non-GAAP)1.07 




The tables below provide a reconciliation of initial outlook for the full-year 2024 Adjusted EBITDA and Adjusted EPS (non-GAAP measures) to the comparable GAAP measures:
Initial Outlook Full Year 2024 Adjusted EBITDA
Machine ClothingAEC
(in millions)LowHighLowHigh
Net income attributable to the Company (GAAP) (c)$200 $215 $47 $52 
Income attributable to the noncontrolling interest— — (1)(1)
Interest expense, net— — — — 
Income tax expense— — — — 
Depreciation and amortization30 35 50 55 
EBITDA (non-GAAP)230 250 — 96 106 
Restructuring expenses, net (c)— — — — 
Foreign currency revaluation (gains)/losses (c)— — — — 
Acquisition/integration costs (c)— — — — 
Pre-tax (income)/loss attributable to non-controlling interest— — 
Adjusted EBITDA (non-GAAP)$230 $250 $— $97 $107 
(c) Interest, Other income/expense and Income taxes are not allocated to the business segments
Initial Outlook Full Year 2024 Adjusted EBITDA
Total Company
(in millions)LowHigh
Net income attributable to the Company (GAAP) (c)$111 $126 
Income attributable to the noncontrolling interest(1)(1)
Interest expense, net17 18 
Income tax expense47 51 
Depreciation and amortization85 95 
EBITDA (non-GAAP)259 289 
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)$260 $290 
Total Company
Forecast of Full Year 2024 Earnings per share (diluted) (e)
LowHigh
Net income attributable to the Company (GAAP) (c)$3.55 $4.05 
Restructuring expenses, net (d)— — 
Foreign currency revaluation (gains)/losses (d)— — 
Acquisition/integration costs (d)— — 
Adjusted Diluted Earnings per share (non-GAAP)$3.55 $4.05 
(d)  Due to the uncertainty of these items, we are unable to forecast these items for 2024.
(e)  Calculations based on estimated diluted shares outstanding of approximately 31.2 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 paper, paperboard, tissue and towel, pulp, non-wovens and a variety of other industrial applications.
• 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 32 facilities in 14 countries, employs approximately 5,600 people worldwide, and is listed on the New York Stock Exchange (Symbol AIN). Additional information about the Company and its products and services can be found at www.albint.com.

Non-GAAP Measures

This release, including the conference call commentary associated with this release, contains certain non-GAAP measures, that should not be considered in isolation or as a substitute for the related GAAP measures. Such non-GAAP measures include net revenues and percent change in net revenues, excluding the impact of currency translation effects; EBITDA, Adjusted EBITDA, and Adjusted EBITDA margin; Net debt; Net leverage ratio; and Adjusted Diluted 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 revenues and change in Net revenues, after currency effects are excluded, provides management and investors insight into underlying revenues trends. Net revenues, or percent changes in net revenues, 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 revenues.

The Company defines Adjusted EPS as diluted 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
geopolitical events; paper-industry trends and conditions during 2023 and in future years; expectations in 2023 and in future periods of revenues, EBITDA, Adjusted EBITDA (both in dollars and as a percentage of net revenues), 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 revenues growth potential of key AEC programs, as well as AEC as a whole; the amount and timing of capital expenditures, future tax rates and cash paid for taxes, depreciation and amortization; future debt and net debt levels and debt covenant ratios; and changes in currency rates and their impact on future revaluation gains and losses. Furthermore, a change in any one or more of the foregoing factors could have a material effect on the Company’s financial results in any period. Such statements are



based on current expectations, and the Company undertakes no obligation to publicly update or revise any forward-looking statements.

Statements expressing management’s assessments of the growth potential of its businesses, or referring to earlier assessments of such potential, are not intended as forecasts of actual future growth, and should not be relied on as such. While management believes such assessments to have a reasonable basis, such assessments are, by their nature, inherently uncertain. This release and earlier releases set forth a number of assumptions regarding these assessments, including historical results, independent forecasts regarding the markets in which these businesses operate, and the timing and magnitude of orders for our customers’ products. Historical growth rates are no guarantee of future growth, and such independent forecasts and assumptions could prove materially incorrect in some cases.

Contacts
John Hobbs
603-330-5897
john.hobbs@albint.com