SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
Form 10-Q
(x) QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE
ACT OF 1934
For the quarter ended: June 30, 1995
OR
( ) TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE
ACT OF 1934
For the transition period from __________ to __________
Commission file number: 0-16214
ALBANY INTERNATIONAL CORP.
--------------------------
(Exact name of registrant as specified in its charter)
Delaware 14-0462060
-------------------------------- --------------------------------
(State or other jurisdiction of (IRS Employer Identification No.)
incorporation or organization)
1373 Broadway, Albany, New York 12204
---------------------------------------- -----
(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code 518-445-2200
------------
Indicate by check mark whether the registrant (1) has filed all reports required
to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during
the preceding 12 months (or for such shorter period that the registrant was
required to file such reports,) and (2) has been subject to such filing
requirements for the past 90 days. Yes X No
----
The registrant had 24,529,151 shares of Class A Common Stock and 5,633,427
shares of Class B Common Stock outstanding as of June 30, 1995.
ALBANY INTERNATIONAL CORP.
INDEX
Page No.
--------
Part I Financial information
Item 1. Financial Statements
Consolidated statements of income and retained earnings -
three months and six months ended June 30, 1995 and 1994 1
Consolidated balance sheets - June 30, 1995 and
December 31, 1994 2
Consolidated statements of cash flows - six months ended
June 30, 1995 and 1994 3
Notes to consolidated financial statements 4-5
Item 2. Management's Discussion and Analysis of Financial
Condition and Results of Operations 6-8
Part II Other information
Item 4. Submissions of Matters to a Vote of Security Holders 9-10
Item 6. Exhibits and Reports on Form 8-K 10
Item 1. Financial Statements
ALBANY INTERNATIONAL CORP.
CONSOLIDATED STATEMENTS OF INCOME AND RETAINED EARNINGS
(unaudited)
(in thousands except per share data)
Three Months Ended Six Months Ended
June 30, June 30,
1995 1994 1995 1994
---------- ---------- ---------- ----------
$166,835 $139,626 Net sales $320,966 $271,050
95,965 85,056 Cost of goods sold 187,202 166,286
---------- ---------- ---------- ----------
70,870 54,570 Gross profit 133,764 104,764
Selling, technical and general
46,415 40,419 expenses 91,087 79,672
---------- ---------- ---------- ----------
24,455 14,151 Operating Income 42,677 25,092
5,923 4,334 Interest expense, net 10,643 7,869
(617) (439) Other (income)/expense, net 214 607
---------- ---------- ---------- ----------
19,149 10,256 Income before income taxes 31,820 16,616
7,660 4,410 Income taxes 12,728 7,144
---------- ---------- ---------- ----------
11,489 5,846 Income before associated companies 19,092 9,472
Equity in earnings of associated
142 86 companies 228 113
---------- ---------- ---------- ----------
11,631 5,932 Net Income 19,320 9,585
144,796 127,312 Retained earnings, beginning of period 139,740 126,276
3,010 2,620 Less dividends 5,643 5,237
---------- ---------- ---------- ----------
$153,417 $130,624 Retained earnings, end of period $153,417 $130,624
---------- ---------- ---------- ----------
---------- ---------- ---------- ----------
Net income per common share:
$0.38 $0.20 Primary $0.64 $0.32
---------- ---------- ---------- ----------
---------- ---------- ---------- ----------
$0.36 $0.20 Fully diluted $0.61 $0.32
---------- ---------- ---------- ----------
---------- ---------- ---------- ----------
$0.10 $0.0875 Dividends per common share $0.1875 $0.175
---------- ---------- ---------- ----------
---------- ---------- ---------- ----------
30,115,709 29,935,204 Weighted average number of shares 30,081,119 29,915,014
---------- ---------- ---------- ----------
---------- ---------- ---------- ----------
The accompanying notes are an integral part of the financial statements.
-1-
ALBANY INTERNATIONAL CORP.
CONSOLIDATED BALANCE SHEETS
(in thousands)
(unaudited)
June 30, December 31,
1995 1994
----------- ------------
ASSETS
Cash and cash equivalents $6,189 $228
Accounts receivable, net 167,410 154,140
Inventories:
Finished goods 81,814 78,501
Work in process 41,390 37,665
Raw material and supplies 28,977 26,364
-------- --------
152,181 142,530
Deferred taxes and prepaid expenses 20,779 17,278
-------- --------
Total current assets 346,559 314,176
Property, plant and equipment, net 331,880 320,719
Investments in associated companies 2,215 992
Intangibles 20,750 20,495
Deferred taxes 39,233 40,251
Other assets 30,663 24,753
-------- --------
Total assets $771,300 $721,386
-------- --------
-------- --------
LIABILITIES AND SHAREHOLDERS' EQUITY
Notes and loans payable $20,934 $16,676
Accounts payable 27,750 30,236
Accrued liabilities 52,045 53,750
Current maturities of long-term debt 3,380 1,044
Income taxes payable and deferred 11,743 11,071
-------- --------
Total current liabilities 115,852 112,777
Long-term debt 243,731 232,767
Other noncurrent liabilities 87,095 81,176
Deferred taxes and other credits 28,620 22,719
-------- --------
Total liabilities 475,298 449,439
-------- --------
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
24,636,133 in 1995 and 24,564,033 in 1994 25 25
Class B Common Stock, par value $.001 per share;
authorized 25,000,000 shares; issued and
outstanding 5,633,427 in 1995 and 1994 6 6
Additional paid in capital 172,212 170,539
Retained earnings 153,417 139,740
Translation adjustments (28,572) (36,408)
-------- --------
297,088 273,902
Less treasury stock (Class A), at cost
(106,982 shares in 1995; 163,531
shares in 1994) 1,086 1,955
-------- --------
Total shareholders' equity 296,002 271,947
-------- --------
Total liabilities and shareholders'
equity $771,300 $721,386
-------- --------
-------- --------
The accompanying notes are an integral part of the financial statement.
-2-
ALBANY INTERNATIONAL CORP.
CONSOLIDATED STATEMENTS OF CASH FLOWS
(unaudited)
(in thousands)
Six Months Ended
June 30,
1995 1994
------- -------
OPERATING ACTIVITIES
Net income $19,320 $9,585
Adjustments to reconcile net cash provided by operating activities:
Equity in earnings of associated companies (228) (113)
Depreciation and amortization 21,543 19,727
Accretion of convertible subordinated debentures 814 759
Provision for deferred income taxes, other credits and long-term liabilities 7,584 3,736
Increase in cash surrender value of life insurance, net of premiums paid (931) (893)
Unrealized currency transaction losses/(gains), net 537 (3,021)
Loss on disposition of assets 31 74
Tax benefit of options exercised 115 11
Treasury shares contributed to ESOP and profit-sharing plan 2,064 1,320
Changes in operating assets and liabilities:
Accounts receivable (13,807) (8,300)
Inventories (9,396) (10,108)
Prepaid expenses 596 (815)
Accounts payable (2,486) (1,914)
Accrued liabilities (1,678) (6,174)
Income taxes payable (768) (7,071)
Other, net (3,798) (6,805)
------- -------
Net cash provided/(used) in operating activities 19,512 (10,002)
------- -------
INVESTING ACTIVITIES
Purchases of property, plant and equipment (19,034) (17,280)
Purchased software (584) (1,379)
Proceeds from sale of assets 1,767 1,733
Acquisitions, net of cash acquired (6,716) 526
------- -------
Net cash used in investing activities (24,567) (16,400)
------- -------
FINANCING ACTIVITIES
Proceeds from borrowings 18,271 41,792
Principal payments on debt (2,379) (10,291)
Proceeds from options exercised 1,236 126
Purchase of treasury shares (874) -
Investment in associated company (915) -
Dividends paid (5,260) (5,230)
------- -------
Net cash provided by financing activities 10,079 26,397
------- -------
Effect of exchange rate changes on cash 937 (1,149)
------- -------
Increase/(decrease) in cash and cash equivalents 5,961 (1,154)
Cash and cash equivalents at beginning of year 228 1,381
------- -------
Cash and cash equivalents at end of period $6,189 $227
------- -------
------- -------
The accompanying notes are an integral part of the financial statements.
-3-
ALBANY INTERNATIONAL CORP.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
1. Management Opinion
In the opinion of management the accompanying unaudited consolidated
financial statements contain all adjustments, consisting of only normal,
recurring adjustments, necessary for a fair presentation of results for such
periods. The results for any interim period are not necessarily indicative of
results for the full year. Certain information and footnote disclosures
normally included in financial statements prepared in accordance with generally
accepted accounting principles have been omitted. These consolidated financial
statements should be read in conjunction with financial statements and notes
thereto for the year ended December 31, 1994.
2. Other (Income)/Expense, Net
Included in other (income)/expense, net for the six months ended June 30
are: currency transactions, $.9 million income in 1995 and $.1 million income
in 1994, pre-receivable sale, $.3 million income in 1994, amortization of debt
issuance costs and loan origination fees, $.6 million in 1995 and $.4 million in
1994, interest rate protection agreements, $.6 million income in 1995 and $.4
million income in 1994 and other miscellaneous (income)/expenses, none of which
are significant, in 1995 and 1994.
Included in other (income)/expense, net for the three months ended June 30
are: currency transactions, $.8 million income in 1995 and $.6 million income
in 1994, pre-receivable sale $.5 million income in 1994, amortization of debt
issuance costs and loan origination fees, $.1 million in 1995 and $.2 million in
1994, interest rate protection agreements, $.3 million income in 1995 and $.4
million income in 1994 and other miscellaneous (income)/expenses, none of which
are significant, in 1995 and 1994.
3. Earnings Per Share
Primary earnings per share on common stock are computed using the weighted
average number of shares of Class A and Class B Common Stock outstanding during
each year. Options granted under the Company's stock option plans were not
dilutive to primary earnings per share at June 30, 1995 and 1994. The
convertible subordinated debentures are not common stock equivalents and will
not affect primary earnings per share. At June 30, 1995, the combined effect of
the options and the convertible subordinated debentures were dilutive and were
therefore included in the computation of fully diluted earnings per share. The
weighted average number of shares outstanding, assuming full dilution, for the
three and six months ended June 30, 1995 was 36,481,836 and 36,447,246,
respectively. Net income for the fully diluted earnings per share calculation,
assuming interest savings from the conversion of the subordinated debentures,
for the three and six months ended June 30, 1995 was $13.1 million and $22.2
million, respectively. The options and the convertible subordinated debentures
were not dilutive at June 30, 1994.
4. Income Taxes
The Company's effective tax rate for the six months ended June 30, 1995 was
40.0% as compared to 43.0% for the same period last year and approximates the
anticipated effective tax rate for the full year 1995. The decrease is due
principally to the fact that the 1994 rate included an accrual of net charges
associated with prior years resulting from both U.S. and non-U.S. examinations.
4
5. Debt
In March 1995, the Company amended its existing $125 million revolving
credit agreement, with its principal banks in the United States, to increase the
banks' commitment to $150 million and to extend the maturity to the year 2000
with more favorable terms. Pricing will be based on a margin over floating rate
cost of banks' funding and varies depending upon the Company's performance.
6. Supplementary Cash Flow Information
Interest paid for the six months ended June 30, 1995 and 1994 was $10.8
million and $7.8 million, respectively.
Taxes paid for the six months ended June 30, 1995 and 1994 were $6.5
million and $12.7 million, respectively.
7. Acquisitions
In May 1995, the Company acquired substantially all of the assets of Panyu
South Fabrics Industrial Company, a manufacturer of paper machine clothing
located in China, for approximately $7 million. This transaction was accounted
for as a purchase. Management does not expect this acquisition to have a
significant impact on operating results in 1995 or 1996.
In July 1995, the Company's offer to purchase all of the outstanding
capital stock and land and buildings used in the business of Technical Service
Industries ("TSI") was accepted by TSI's shareholders. TSI is a supplier of
engineered fabrics to the nonwovens industry. The purchase price will be
approximately $9 million. The transaction is subject to, among other things,
preparation of definitive agreements, satisfactory completion of the Company's
due diligence and approval by the Company's Board of Directors.
5
ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS
OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS
FOR THE THREE AND SIX MONTHS ENDED JUNE 30, 1995
The following discussion should be read in conjunction with the accompanying
Consolidated Financial Statements and Notes thereto.
RESULTS OF OPERATIONS:
Net sales for the three months ended June 30, 1995 increased $27.2 million or
19.5% compared to the same period in 1994. The effect of the weaker U.S.
dollar as compared to the second quarter of 1994 was to increase net sales by
$4.1 million. Excluding this effect, second quarter net sales increased 16.5%
over 1994.
Net sales increased $49.9 million or 18.4% to $321 million for the six months
ended June 30, 1995 compared with the same period in 1994. Net sales were
increased by $7.1 million from the effect of a weaker U.S. dollar as compared to
the first six months of 1994. Excluding this effect, net sales increased 15.8%.
The Company continued to gain market share in all product lines which is due to
good customer acceptance and excellent performance of new products on all three
sections of the paper machine. These gains, combined with strong growth in
paper production, were the main reasons for the sales increase.
Geographically, for the six months ended June 30, 1995, the Company's sales
growth rate was strongest in Europe and was weakest in the United States. In
addition, export sales from the Company's Canadian and European operations,
principally to the Asian markets, increased as compared to the same period last
year.
Price increases announced in December 1994 for the United States, Canada,
selective European markets and Mexico became effective during the six months
ended June 30, 1995. It is anticipated that the average effect of price
increases for the full year will be approximately 3% and will have a greater
effect on results over the next six months than the six month period recently
ended.
Gross profit continued to improve and was 42.5% of net sales for the three
months ended June 30, 1995 as compared to 39.1% for the same period in 1994
bringing the six month result to 41.7% for 1995 as compared to 38.7% for 1994.
Year to date variable costs as a percent of net sales increased from 32.2% in
1994 to 32.4% for the same period in 1995, due mainly to increased sales of
product lines with higher cost to sales dollar ratios.
Selling, technical, general and research expenses increased 14.3% for the six
months ended June 30, 1995 as compared to the six months ended June 30, 1994.
Excluding the effect of translating non-U.S. currencies into more U.S. dollars,
expenses would have increased 12.2%. Temporary increases associated with the
introduction of new products, exchange losses on trade receivables, principally
in Canada and Europe, increased wages and benefit costs and higher sales
commissions resulting from increased export sales to Asia, were the principal
reasons for this increase.
6
Operating income as a percentage of net sales increased to 13.3% for the six
months ended June 30,1995 from 9.3% for the comparable period in 1994 and
increased to 14.7% for the three months ended June 30, 1995 as compared to 10.1%
for the same period last year due to items discussed above. Management
anticipates that operating income as a percentage of net sales should continue
to improve in 1995.
Interest expense increased compared to the six months ended June 30, 1994 due to
higher total debt caused principally by the $8 million borrowed to finance the
acquisition of a paper machine clothing company in China, as discussed below.
The tax rate for the six months ended June 30, 1995 is 40.0% as compared to
43.0% for the comparable period in 1994 and approximates the anticipated
effective rate for the full year 1995. The rate decrease is due principally to
the fact that the 1994 rate included an accrual of net charges associated with
prior years resulting from both U.S. and non-U.S. examinations.
In May 1995, the Company acquired substantially all of the assets of Panyu South
Fabrics Industrial Company, a manufacturer of paper machine clothing located in
China, for approximately $7 million. This transaction was accounted for as a
purchase. Management does not expect this acquisition to have a significant
impact on operating results in 1995 or 1996 and anticipates that this purchase
and additional investments during 1995 will total approximately $13 million.
In July 1995, the Company's offer to purchase all of the outstanding capital
stock and land and buildings used in the business of Technical Service
Industries ("TSI") was accepted by TSI's shareholders. TSI is a supplier of
engineered fabrics to the nonwovens industry. The purchase price will be
approximately $9 million. The transaction is subject to, among other things,
preparation of definitive agreements, satisfactory completion of the Company's
due diligence and approval by the Company's Board of Directors.
Reasons for the improvements in operating results for the three month period
ended June 30, 1995 as compared to the corresponding period in 1994 are similar
to those which affected the six month comparisons, except where specifically
noted.
LIQUIDITY AND CAPITAL RESOURCES:
Inventories increased $9.7 million during the six months ended June 30, 1995 due
to the weakening U.S. dollar and high orders which resulted in some building of
inventory in anticipation of future sales. As a result of a weaker U.S. dollar
and the increase in net sales, accounts receivable increased $13.3 million or
8.6% during the six months ended June 30, 1995.
In March 1995, the Company amended its existing $125 million revolving credit
agreement, with its principal banks in the United States, to increase the
banks' commitment to $150 million and to extend the maturity to the year 2000
with more favorable terms. Pricing will be based on a margin over floating rate
cost of banks' funding and varies depending upon the Company's performance.
Management believes that the unused line, in combination with expected free cash
flows, should be sufficient to meet operating requirements and for business
opportunities and acquisitions which support corporate strategies to enhance
value to customers and shareholders.
7
Capital expenditures for the six months ended June 30, 1995 were $19.0 million
as compared to $17.3 million for the same period last year. The Company
anticipates that capital expenditures for the full year will be approximately
$40 million before expenditures on acquisitions. The Company will finance these
expenditures with cash from operations and existing credit facilities.
Cash dividends of $.0875 per share were paid in the first two quarters of 1995
and were related to the fourth quarter of 1994 and the first quarter of 1995.
The Company also declared a cash dividend of $.10 per share for the second
quarter of 1995 which will be paid in the third quarter of this year.
8
Part II - Other Information
ITEM 4. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS
At the annual meeting of shareholders held on May 18, 1995 items subject to a
vote of security holders were the election of eight directors, the election of
auditors, the proposed amendment of the Company's 1988 Stock Option Plan and a
proposal to limit employee compensation.
In the vote for the election of eight members of the Board of Directors of the
Company, the number of votes cast for, and the number of votes withheld from,
each of the nominees were as follows:
Nominee Number of Votes For Number of Votes Withheld Broker Nonvotes
------- ------------------- ------------------------ ----------------
Class A Class B Class A Class B Class A Class B
------- ------- ------- ------- ------- -------
J. Spencer Standish 17,820,206 56,304,400 32,740 - - -
Francis L. McKone 17,821,803 56,304,400 31,143 - - -
Charles B. Buchanan 17,822,176 56,304,400 30,770 - - -
Paul Bancroft III 17,822,176 56,304,400 30,770 - - -
Thomas R. Beecher, Jr. 17,822,176 56,304,400 30,770 - - -
Stanley I. Landgraf 17,821,544 56,304,400 31,402 - - -
Allan Stenshamn 17,821,740 56,304,400 31,206 - - -
Barbara P. Wright 17,822,176 56,304,400 30,770 - - -
In the vote on the motion to appoint the firm of Coopers & Lybrand L.L.P. as the
Company's auditor for 1995, the number of votes cast for, the number cast
against, and the number of votes abstaining with respect to such resolution were
as follows:
Number of Votes For Number of Votes Against Number of Votes Abstaining Broker Nonvotes
Class A Class B Class A Class B Class A Class B Class A Class B
------- ------- ------- ------- ------- ------- ------- -------
17,771,892 56,304,400 72,700 - 8,354 - - -
In the vote on the resolution to approve the proposed amendment of the Company's
1988 Stock Option Plan, the number of votes cast for, the number cast against,
and the number of votes abstaining with respect to such resolution were as
follows:
Number of Votes For Number of Votes Against Number of Votes Abstaining Broker Nonvotes
Class A Class B Class A Class B Class A Class B Class A Class B
------- ------- ------- ------- ------- ------- ------- -------
14,095,269 56,304,400 3,072,133 - 41,748 - 643,796 -
9
In the vote on the resolution to limit employee compensation, the number of
votes cast for, the number of votes cast against, and the number of votes
abstaining with respect to such resolution were as follows:
Number of Votes For Number of Votes Against Number of Votes Abstaining Broker Nonvotes
Class A Class B Class A Class B Class A Class B Class A Class B
------- ------- ------- ------- ------- ------- ------- -------
1,503,855 - 15,396,527 56,304,400 202,856 - 749,708 -
ITEM 6. EXHIBITS AND REPORTS ON FORM 8-K
A report on Form 8-K was filed on May 10, 1995 containing exhibits only (no
items were reported).
Exhibit No. Description
----------- -----------
11. Schedule of computation of primary and fully diluted net income
per share
27. Financial data schedule
10
SIGNATURES
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 thereunto duly authorized.
ALBANY INTERNATIONAL CORP.
--------------------------
(Registrant)
Date: August 1, 1995
by /s/ Michael C. Nahl
-------------------
Michael C. Nahl
Sr. Vice President and
Chief Financial Officer
ALBANY INTERNATIONAL CORP.
EXHIBIT 11
SCHEDULE OF COMPUTATION OF PRIMARY AND FULLY DILUTED NET INCOME PER SHARE
(in thousands, except per share data)
PRIMARY EARNINGS PER SHARE:
For the three months For the six months
ended June 30, ended June 30,
1995 (1) 1994 (1) 1995 (1) 1994 (1)
---------- ---------- ---------- ----------
30,162,578 29,959,071 Common stock outstanding at end of period 30,162,578 29,959,071
Adjustments to ending shares to arrive at
weighted average for the period:
(20,073) (23,867) Shares contributed to E.S.O.P. (2) (49,872) (40,742)
(26,796) - Shares issued under option (2) (49,322) (3,315)
- - Treasury shares purchased (2) 17,735 -
---------- ---------- ---------- ----------
30,115,709 29,935,204 Weighted average number of shares 30,081,119 29,915,014
---------- ---------- ---------- ----------
---------- ---------- ---------- ----------
$11,631 $5,932 Net income $19,320 $9,585
---------- ---------- ---------- ----------
---------- ---------- ---------- ----------
$0.38 $0.20 Net income per share (3) $0.64 $0.32
---------- ---------- ---------- ----------
---------- ---------- ---------- ----------
(1) Includes Class A and Class B Common Stock
(2) Calculated as follows:
number of shares multiplied by the reciprocal of the number
of days outstanding (or the reciprocal of the number of days held in treasury
for treasury stock purchases) divided by the number of days in the period
SHARES CONTRIBUTED TO E.S.O.P.:
For the six months:
January 31, 1994 10,831 * (30/181) 1,795
February 28, 1994 11,120 * (58/181) 3,564
March 31 1994 11,090 * (89/181) 5,453
April 12, 1994 56 * (101/181) 31
April 30, 1994 11,683 * (119/181) 7,681
May 31, 1994 11,882 * (150/181) 9,847
June 30, 1994 12,440 * (180/181) 12,371
------
40,742
------
------
January 31, 1995 12,346 * (30/181) 2,046
February 23, 1995 656 * (53/181) 192
February 28, 1995 13,324 * (58/181) 4,270
February 28, 1995 37,040 * (58/181) 11,869
March 31, 1995 12,697 * (89/181) 6,243
April 30, 1995 9,968 * (119/181) 6,554
May 31, 1995 10,301 * (150/181) 8,537
June 30, 1995 10,217 * (180/181) 10,161
------
49,872
------
------
For the three months:
April 12, 1994 56 * (11/91) 7
April 30, 1994 11,683 * (29/91) 3,723
May 31, 1994 11,882 * (60/91) 7,834
June 30, 1994 12,440 * (90/91) 12,303
------
23,867
------
------
ALBANY INTERNATIONAL CORP.
EXHIBIT 11
SCHEDULE OF COMPUTATION OF PRIMARY AND FULLY DILUTED NET INCOME PER SHARE
(in thousands, except per share data)
April 30, 1995 9,968 * (29/91) 3,177
May 31, 1995 10,301 * (60/91) 6,792
June 30, 1995 10,217 * (90/91) 10,104
------
20,073
------
SHARES ISSUED UNDER OPTION:
For the six months:
March 22, 1994 7,500 * (80/181) 3,315
------
------
April 12, 1995 25,000 * (101/181) 13,950
April 27, 1995 5,000 * (116/181) 3,204
May 1, 1995 20,000 * (120/181) 13,260
June 2, 1995 7,500 * (152/181) 6,298
June 6, 1995 14,000 * (156/181) 12,066
June 14, 1995 600 * (164/181) 544
------
49,322
------
------
For the three months:
April 12, 1995 25,000 * (11/91) 3,022
April 27, 1995 5,000 * (26/91) 1,429
May 1, 1995 20,000 * (30/91) 6,593
June 2, 1995 7,500 * (62/91) 5,110
June 6, 1995 14,000 * (66/91) 10,154
June 14, 1995 600 * (74/91) 488
------
26,796
------
------
TREASURY SHARES PURCHASED:
For the six months:
February 16, 1995 15,000 * (46/181) 3,812
March 14, 1995 35,000 * (72/181) 13,923
------
17,735
------
------
(3) Dilutive common stock equivalents are not material and therefore are not included in the
calculation of primary earnings per common share.
FULLY DILUTED EARNINGS PER SHARE:
For the three months For the six months
ended June 30, ended June 30,
1995 1994 1995 1994
---------- ---------- ---------- ----------
30,115,709 29,935,204 Weighted average number of shares 30,081,119 29,915,014
653,677 252,451 Incremental shares of unexercised options (4) 653,677 274,108
5,712,450 5,712,450 Convertible shares of subordinated debentures (5) 5,712,450 -
---------- ---------- ---------- ----------
36,481,836 35,900,105 Adjusted weighted average number of shares 36,447,246 30,189,122
---------- ---------- ---------- ----------
---------- ---------- ---------- ----------
$13,056 $7,054 Net income (including after-tax income adjustment) (5) $22,170 $9,585
---------- ---------- ---------- ----------
---------- ---------- ---------- ----------
$0.36 $0.20 Fully diluted net income per share $0.61 $0.32
---------- ---------- ---------- ----------
---------- ---------- ---------- ----------
ALBANY INTERNATIONAL CORP.
EXHIBIT 11
SCHEDULE OF COMPUTATION OF PRIMARY AND FULLY DILUTED NET INCOME PER SHARE
(in thousands, except per share data)
(4) Incremental shares of exercisable options are calculated based on the higher of the average price of the Company's
stock or the ending price for the respective period. The calculation includes all options whose exercise price is
below the higher of the average or ending stock price.
(5) The subordinated debentures are convertible into 5,712,450 shares of the Company's Class A Common Stock.
There were no conversions as of June 30, 1995. Upon any conversion, the Company would realize
an after-tax income adjustment based on the effective interest expense on the bonds less the corresponding income
tax deduction. The full amount of the shares and the income adjustment will be included in the calculation only
when they cause dilution to net income per share.
WARNING: THE EDGAR SYSTEM ENCOUNTERED ERROR(S) WHILE PROCESSING THIS SCHEDULE.
ALBANY INTERNATIONAL CORP.
EXHIBIT 27
FINANCIAL DATA SCHEDULE
THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM ALBANY
INTERNATIONAL'S CONSOLIDATED FINANCIAL STATEMENTS AS OF AND FOR THE SIX
MONTHS ENDED JUNE 30, 1995 AND IS QUALIFIED IN ITS ENTIRETY BY REFERENCE TO
SUCH FINANCIAL STATEMENTS.
(in thousands except per share data)
(unaudited)
As of and for the
six months ended
Item Number Item Description June 30, 1995
-------------- --------------------------------------------------------- ------------------
5-02(1) cash and cash items $6,189
5-02(2) marketable securities 0
5-02(3)(a)(1) notes and accounts receivable - trade 172,203
5-02(4) allowances for doubtful accounts 4,793
5-02(6) inventory 152,181
5-02(9) total current assets 346,559
5-02(13) property, plant and equipment 595,660
5-02(14) accumulated depreciation 263,780
5-02(18) total assets 771,300
5-02(21) total current liabilities 115,852
5-02(22) bonds, mortgages and similar debt 243,731
5-02(28) preferred stock - mandatory redemption 0
5-02(29) preferred stock - no mandatory redemption 0
5-02(30) common stock 31
5-02(31) other stockholders' equity 295,971
5-02(32) total liabilities and stockholders' equity 771,300
5-03(b)1(a) net sales of tangible products 320,966
5-03(b)1 total revenues 320,966
5-03(b)2(a) cost of tangible goods sold 187,202
5-03(b)(2) total costs and expenses applicable to sales and revenues 278,114
5-03(b)(3) other costs and expenses 214
5-03(b)5 provision for doubtful accounts and notes 175
5-03(b)(8) interest and amortization of debt discount 10,643
5-03(b)(10) income before taxes and other items 31,820
5-03(b)(11) income tax expense 12,728
5-03(b)(14) income/loss continuing operations 19,092
5-03(b)(15) discontinued operations 0
5-03(b)(17) extraordinary items 0
5-03(b)(18) cumulative effect - changes in accounting principles 0
5-03(b)(19) net income or loss 19,320
5-03(b)(20) earnings per share - primary $0.64
5-03(b)(20) earnings per share - fully diluted $0.61
