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) January 1, 2009
ALBANY INTERNATIONAL CORP.
------------------------------------------------------
(Exact name of registrant as specified in its charter)
Delaware 1-10026 14-0462060
-----------------------------------------------------------------------------
(State or other jurisdiction (Commission (I.R.S. Employer
of incorporation) File Number) Identification No.)
1373 Broadway, Albany, New York 12204
---------------------------------------------------
(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))
2.02. Results of Operations and Financial Condition
Albany International Corp. (the "Company) operates its business in the following
five segments: Paper Machine Clothing, Albany Door Systems, Engineered Fabrics,
Engineered Composites, and PrimaLoft(R) Products. Effective January 1, 2009, the
Company changed its business segment reporting by reclassifying global
information systems (GIS) expenses. As a result of the reclassification, GIS
expenses are presented as being unallocated to any specific business segment.
Additionally, the Company has modified previously reported segment operating
income as detailed in Exhibit 99.1 to be consistent with the reclassification.
In May 2008, the Financial Accounting Standards Board issued Staff Position No.
APB 14-1, Accounting for Convertible Debt Instruments that May be Settled in
Cash Upon Conversion ("FSP APB 14-1"). FSP APB 14-1 requires that the liability
and equity components of convertible debt instruments that may be settled in
cash upon conversion (including partial cash settlement) be separately accounted
for in a manner that reflects an issuer's nonconvertible debt borrowing rate.
The Company has adopted FSP APB 14-1 effective January 1, 2009 and will reflect
the new accounting in its 2009 financial statements, starting with its Quarterly
Report on Form 10-Q for the quarter ended March 31, 2009. Retrospective
application to all periods presented is required. Accordingly, the Company will
adjust its previously issued financial statements to give effect to FSP APB
14-1, as applicable. The effect on the financial statements is summarized in
Exhibit 99.2.
Item 9.01. Financial Statements and Exhibits.
(d) Exhibits.
99.1 Schedules showing the effect on operating income of changes in reportable
segments for quarterly periods of 2008, full year 2008, and full year 2007.
99.2 Schedules showing the effect on financial statements of adopting FSP APB
14-1 for quarterly periods of 2008 and 2007, and full year 2006, 2007 and 2008.
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/ David Pawlick
-------------------------------
Name: David Pawlick
Title: Vice President -- Controller
Date: April 30, 2009
EXHIBIT INDEX
Exhibit No. Description
99.1 Schedules showing the effect on operating income of changes in
reportable segments for quarterly periods of 2008, full year
2008, and full year 2007.
99.2 Schedules showing the effect on financial statements of
adopting FSP APB 14-1 for quarterly periods of 2008 and 2007,
and full year 2006, 2007 and 2008.
EXHIBIT 99.1
- -------------------------------------------------------------------------------------------
Segment operating income Effect of Segment totals
reclassification quarter ended change in based on
March 31, 2008 As previously reportable 2009
USD 000's reported segments classification
- -------------------------------------------------------------------------------------------
Paper Machine Clothing $18,550 $3,989 $22,539
Albany Door Systems 2,836 601 3,437
Engineered Fabrics 5,569 286 5,855
Engineered Composites (1,826) 8 (1,818)
PrimaLoft(R) Products 1,078 34 1,112
Research expense (5,871) - (5,871)
Unallocated expenses (13,156) (4,918) (18,074)
- -------------------------------------------------------------------------------------------
Total $7,180 - $7,180
- -------------------------------------------------------------------------------------------
- -------------------------------------------------------------------------------------------
Segment operating income Effect of Segment totals
reclassification quarter ended change in based on
June 30, 2008 As previously reportable 2009
USD 000's reported segments classification
- -------------------------------------------------------------------------------------------
Paper Machine Clothing $27,427 $3,804 $31,231
Albany Door Systems 4,322 514 4,836
Engineered Fabrics 3,577 303 3,880
Engineered Composites (225) 8 (217)
PrimaLoft(R) Products 1,685 33 1,718
Research expense (8,288) - (8,288)
Unallocated expenses (13,972) (4,662) (18,634)
- -------------------------------------------------------------------------------------------
Total $14,526 - $14,526
- -------------------------------------------------------------------------------------------
- -------------------------------------------------------------------------------------------
Segment operating income Effect of Segment totals
reclassification quarter ended change in based on
September 30, 2008 As previously reportable 2009
USD 000's reported segments classification
- -------------------------------------------------------------------------------------------
Paper Machine Clothing $19,246 $3,145 $22,391
Albany Door Systems 3,231 359 3,590
Engineered Fabrics 4,060 224 4,284
Engineered Composites (3,342) 8 (3,334)
PrimaLoft(R) Products 646 26 672
Research expense (6,004) - (6,004)
Unallocated expenses (13,715) (3,762) (17,477)
- -------------------------------------------------------------------------------------------
Total $4,122 - $4,122
- -------------------------------------------------------------------------------------------
- -------------------------------------------------------------------------------------------
Segment operating income Effect of Segment totals
reclassification quarter ended change in based on
December 31, 2008 As previously reportable 2009
USD 000's reported segments classification
- -------------------------------------------------------------------------------------------
Paper Machine Clothing ($44,753) $4,284 ($40,469)
Albany Door Systems 4,523 249 4,772
Engineered Fabrics (18,003) 467 (17,536)
Engineered Composites (20,562) 11 (20,551)
PrimaLoft(R) Products (432) 34 (398)
Research expense (2,620) - (2,620)
Unallocated expenses (10,898) (5,045) (15,943)
- -------------------------------------------------------------------------------------------
Total ($92,745) - ($92,745)
- -------------------------------------------------------------------------------------------
- -------------------------------------------------------------------------------------------
Segment operating income Effect of Segment totals
reclassification year ended change in based on
December 31, 2008 As previously reportable 2009
USD 000's reported segments classification
- -------------------------------------------------------------------------------------------
Paper Machine Clothing $20,468 $15,222 $35,690
Albany Door Systems 14,912 1,722 16,634
Engineered Fabrics (4,797) 1,281 (3,516)
Engineered Composites (25,955) 34 (25,921)
PrimaLoft(R) Products 2,977 128 3,105
Research expense (22,783) - (22,783)
Unallocated expenses (51,739) (18,387) (70,126)
- -------------------------------------------------------------------------------------------
Total ($66,917) - ($66,917)
- -------------------------------------------------------------------------------------------
- -------------------------------------------------------------------------------------------
Segment operating income Effect of Segment totals
reclassification year ended change in based on
December 31, 2007 As previously reportable 2009
USD 000's reported segments classification
- -------------------------------------------------------------------------------------------
Paper Machine Clothing $87,973 $16,402 $104,375
Albany Door Systems 4,933 1,801 6,734
Engineered Fabrics 16,234 1,364 17,598
Engineered Composites (6,283) 24 (6,259)
PrimaLoft(R) Products 2,679 141 2,820
Research expense (23,337) - (23,337)
Unallocated expenses (49,003) (19,732) (68,735)
- -------------------------------------------------------------------------------------------
Total $33,196 - $33,196
- -------------------------------------------------------------------------------------------
EXHIBIT 99.2
- ------------------------------------------------------------------------------------------------------------------------------------
2008 by quarter
FSP APB 14-1 implementation in USD and in 000's except per
share data 1st 2nd 3rd 4th Full year
- ------------------------------------------------------------------------------------------------------------------------------------
As previously reported:
Interest expense, net $4,319 $4,763 $4,520 $5,349 $18,951
Other (income)/expense, net (274) 2,155 (706) (716) 459
Income tax expense/(benefit) on continuing operations 4,551 1,726 5,805 (16,016) (3,934)
Net (loss)/income (1,492) 5,896 760 (80,912) (75,748)
Net (loss)/income per share:
Basic ($0.05) $0.20 $0.03 ($2.71) ($2.54)
Diluted ($0.05) $0.20 $0.03 ($2.71) ($2.54)
Shares used in computing earnings per share:
Basic 29,612 29,760 29,857 29,912 29,786
Diluted 29,612 30,051 29,857 29,912 29,786
Adjustments to:
Interest expense, net $1,078 $1,117 $1,157 $1,174 $4,526
Other (income)/expense, net (41) (41) (41) (41) (164)
Income tax expense/(benefit) on continuing operations (433) (433) (433) (433) (1,732)
As presented in 2009:
Interest expense, net $5,397 $5,880 $5,677 $6,523 $23,477
Other (income)/expense, net (315) 2,114 (747) (757) 295
Income tax expense/(benefit) on continuing operations 4,118 1,293 5,372 (16,449) (5,666)
Net (loss)/income (2,096) 5,253 77 (81,612) (78,378)
Net (loss)/income per share:
Basic ($0.07) $0.18 $0.00 ($2.73) ($2.63)
Diluted ($0.07) $0.17 $0.00 ($2.73) ($2.63)
Shares used in computing earnings per share:
Basic 29,612 29,760 29,857 29,912 29,786
Diluted 29,612 30,051 29,857 29,912 29,786
- ------------------------------------------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------------------------------
2007 by quarter
FSP APB 14-1 implementation in USD and in 000's except per
share data 1st 2nd 3rd 4th Full year
- ------------------------------------------------------------------------------------------------------------------------------------
As previously reported:
Interest expense, net $3,265 $3,619 $3,782 $4,280 $14,946
Other (income)/expense, net (327) 540 1,409 (1,222) 400
Income tax expense/(benefit) on continuing operations 3,172 (2,282) 81 842 1,813
Net income/(loss) 9,305 4,405 (3,871) 7,943 17,782
Net income/(loss) per share:
Basic $0.32 $0.15 ($0.13) $0.27 $0.60
Diluted $0.31 $0.15 ($0.13) $0.27 $0.60
Shares used in computing earnings per share:
Basic 29,265 29,380 29,492 29,545 29,421
Diluted 29,672 29,818 29,492 29,949 29,854
Adjustments to:
Interest expense, net $1,020 $1,058 $1,096 $1,112 $4,286
Other (income)/expense, net (26) (41) (41) (41) (149)
Income tax expense/(benefit) on continuing operations (396) (396) (396) (395) (1,583)
As presented in 2009:
Interest expense, net $4,285 $4,677 $4,878 $5,392 $19,232
Other (income)/expense, net (353) 499 1,368 (1,263) 251
Income tax expense/(benefit) on continuing operations 2,776 (2,678) (315) 447 230
Net income/(loss) 8,707 3,784 (4,530) 7,267 15,228
Net income/(loss) per share:
Basic $0.30 $0.13 ($0.15) $0.25 $0.52
Diluted $0.29 $0.13 ($0.15) $0.24 $0.51
Shares used in computing earnings per share:
Basic 29,265 29,380 29,492 29,545 29,421
Diluted 29,672 29,818 29,492 29,949 29,854
- ------------------------------------------------------------------------------------------------------------------------------------
- ---------------------------------------------------------------------------------------------------------------
Full year
FSP APB 14-1 implementation in USD and in 000's
except per share data 2006 2007 2008
- ---------------------------------------------------------------------------------------------------------------
As previously reported:
Interest expense $13,107 $16,581 $20,827
Other expense, net 1,910 400 459
Income tax expense/(benefit) on continuing operations 20,700 1,813 (3,934)
Net income/(loss) 58,039 17,782 (75,748)
Net income/(loss) per share:
Basic $1.95 $0.60 ($2.54)
Diluted $1.92 $0.60 ($2.54)
Shares used in computing earnings per share:
Basic 29,803 29,421 29,786
Diluted 30,289 29,854 29,786
Deferred taxes 112,280 100,604 115,582
Other assets 37,486 69,528 22,016
Long-term debt 354,587 446,433 530,367
Deferred taxes and other credits 49,142 65,748 57,017
Additional paid-in capital 316,164 326,608 343,763
Retained earnings 541,602 527,790 436,919
Adjustments to:
Interest expense $3,293 $4,286 $4,526
Other expense, net (129) (149) (163)
Income tax expense/(benefit) on continuing operations (1,234) (1,583) (1,732)
Deferred taxes 358 269 236
Other assets (1,013) (767) (604)
Long-term debt, Note 1 (30,793) (26,507) (21,981)
Deferred taxes and other credits 12,010 10,338 8,573
Additional paid-in capital, Note 2 20,155 20,155 20,155
Retained earnings (1,930) (2,554) (2,631)
As presented in 2009:
Interest expense $16,400 $20,867 $25,353
Other expense, net 1,781 251 296
Income tax expense/(benefit) on continuing operations 19,466 230 (5,666)
Net income/(loss) 56,109 15,228 (78,379)
Net income/(loss) per share:
Basic $1.88 $0.52 ($2.63)
Diluted $1.85 $0.51 ($2.63)
Shares used in computing earnings per share:
Basic 29,803 29,421 29,786
Diluted 30,289 29,854 29,786
Deferred taxes 112,638 100,873 115,818
Other assets 36,473 68,761 21,412
Long-term debt 323,794 419,926 508,386
Deferred taxes and other credits 61,152 76,086 65,590
Additional paid-in capital 336,319 346,763 363,918
Retained earnings 539,672 523,306 429,804
- ---------------------------------------------------------------------------------------------------------------
Note 1 - Adjustments to Long-term debt include a $34,086,000 initial reduction
to debt during 2006 offset by accumulative accrual of additional interest
expense of $3,293,000, $7,579,000, and $12,105,000 in 2006, 2007, and 2008,
respectively.
Note 2 - Adjustments to Additional paid-in capital include: an increase of
$34,086,000 representing the bifurcated convertible bond equity component, a
reduction of $1,045,000 related to equity issuance costs, and a reduction of
$12,886,006 due to changes in non-current deferred taxes.