Form 8-K - Current report

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: October 30, 2024

(Date of earliest event reported)


			ALBANY INTERNATIONAL CORP.
			(Exact name of registrant as specified in its charter)


Delaware	1-10026	14-0462060
(State or other jurisdiction of incorporation)	(Commission File Number)	(I.R.S Employer Identification No.)


216 Airport Drive Rochester, New Hampshire			03867
(Address of principal executive offices)			(Zip Code)

Registrant’s telephone number, including area code 603-330-5850


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 class

Trading

Symbol(s)

Name of each exchange

on which registered

Class A Common Stock, $0.001 par value per share

AIN

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 October 30, 2024 Albany International issued a news release reporting third quarter 2024 financial results. The Company will host a webcast to discuss earnings at 9:00 a.m. Eastern Time on Thursday October 31, 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 October 30, 2024 reporting third-quarter 2024 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: October 30, 2024

EXHIBIT INDEX


Exhibit No.			Description
99.1			News release dated October 30, 2024 reporting third-quarter 2024 financial results.
104			Inline XBRL cover page.

Exhibit 99.1

Albany International Reports Third-Quarter 2024 Results

ROCHESTER, N.H.--(BUSINESS WIRE)--October 30, 2024 — Albany International Corp. (NYSE:AIN) today reported operating results for its third quarter of 2024, which ended September 30, 2024.

"I am pleased with the overall results of the quarter as we focused on operational excellence evidenced by strong results at Machine Clothing and Free Cash Flow generation of $78 million year-to-date. We are addressing the issues announced earlier this month, with specific emphasis on our Salt Lake Facility. Revenues of $298 million was up $17 million or 6.1% over prior year," said President and CEO, Gunnar Kleveland.

"In Machine Clothing, revenues of $183 million grew year-over-year, driven by our Heimbach acquisition. Our global order backlog remains stable and we continue to make progress with the integration at Heimbach.

"In Engineered Composites, we recorded revenues of $115 million, while our profitability was impacted by our previously announced EAC adjustments. Our backlog is well over $1 billion and longer term we continue to see growth in our defense and commercial programs" concluded Kleveland.

For the third quarter ended September 30, 2024:

•Net revenues were $298 million, up 6.1%, or 5.8% after adjusting for currency translation, when compared to the prior year. MC's net revenues increased 9.9%, reflecting a full quarter of Heimbach Net revenues, which was partially offset by lower net revenues in the rest of the segment due to decreased sales in packaging and publication grades. AEC's net revenues were largely in line with the prior year, increasing 0.7%, primarily driven by growth on certain commercial and space programs, which was partially offset by lower revenues on CH-53K and other defense programs.

•Gross profit of $90 million was 11.2% lower than the $102 million reported for the same period of 2023; overall gross margin declined nearly 6.0% driven by changes in the estimated profitability of long-term contracts at AEC.

•Selling, General, and Administrative (SG&A) expenses were $52 million, largely in line with prior year.

•Operating income was $25 million, compared to $40 million in the prior year, the result of lower Gross profit at AEC and increased Technical, Research and Restructuring expenses at MC.

•Effective tax rate for the quarter was 6.6%, compared to 25.3% for the third quarter of 2023. The 2024 rate was lower primarily due to favorable discrete tax adjustments in the current period exceeding favorable discrete tax adjustments in the prior period.

•Net income attributable to the Company was $18 million ($0.57 per share), compared to $27 million ($0.87 per share) in the third quarter of 2023; Adjusted diluted earnings per share (or Adjusted diluted EPS, a non-GAAP measure) was $0.80 per share in the third quarter of 2024, compared to $1.02 per share in the third quarter of 2023. Adjusted EBITDA (a non-GAAP measure) was $54 million, compared to $65 million in the third quarter of 2023, a decrease of 17.2%.

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

Outlook for Full-Year 2024

The company is updating its guidance for the full year of 2024 as follows:

•Total company revenue between $1.23 billion to $1.25 billion;

•Effective income tax rate of approximately 27%;

•Capital expenditures in the range of $85 to $90 million;

•Adjusted diluted earnings per share between $3.10 and $3.30;

•Total company Adjusted EBITDA between $237 million to $247 million;

•Machine Clothing revenue between $745 million to $755 million;

•Machine Clothing Adjusted EBITDA between $238 million and $243 million;

•Albany Engineered Composites revenue between $485 million to $495 million; and

•Albany Engineered Composites Adjusted EBITDA between $68 million to $73 million.

ALBANY INTERNATIONAL CORP.

CONSOLIDATED STATEMENTS OF INCOME

(in thousands, except per share amounts)

(unaudited)


	Three Months Ended September 30,				Nine Months Ended September 30,
	2024		2023		2024		2023
Net revenues	$	298,386	$	281,106	$	943,710	$	824,325
Cost of goods sold	208,002		179,271		632,257		520,468

Gross profit	90,384		101,835		311,453		303,857
Selling, general, and administrative expenses	52,097		51,975		162,447		147,214
Technical and research expenses	10,844		9,708		35,369		30,303
Restructuring expenses, net	2,272		82		6,584		227

Operating income	25,171		40,070		107,053		126,113
Interest expense/(income), net	2,411		3,653		8,680		10,049


Other (income)/expense, net	3,257		56		5,932		(4,910)

Income before income taxes	19,503		36,361		92,441		120,974
Income tax expense	1,282		9,207		22,131		39,908

Net income	18,221		27,154		70,310		81,066
Net income attributable to the noncontrolling interest	192		45		366		396
Net income attributable to the Company	$	18,029	$	27,109	$	69,944	$	80,670

Earnings per share attributable to Company shareholders - Basic	$	0.58	$	0.87	$	2.24	$	2.59

Earnings per share attributable to Company shareholders - Diluted	$	0.57	$	0.87	$	2.23	$	2.58

Shares of the Company used in computing earnings per share:
Basic	31,251		31,185		31,234		31,163

Diluted	31,367		31,283		31,333		31,256

Dividends declared per Class A share	$	0.26	$	0.25	$	0.78	$	0.75

ALBANY INTERNATIONAL CORP.

CONSOLIDATED BALANCE SHEETS

(in thousands, except share data)

(unaudited)


	September 30, 2024		December 31, 2023
Assets
Cash and cash equivalents	$	127,222	$	173,420
Accounts receivable, net	271,975		287,781
Contract assets, net	195,782		182,281
Inventories	160,617		169,567
Income taxes prepaid and receivable	8,316		11,043
Prepaid expenses and other current assets	40,399		53,872
Total current assets	$	804,311	$	877,964

Property, plant and equipment, net	583,455		601,989
Intangibles, net	40,996		44,646
Goodwill	180,912		180,181
Deferred income taxes	26,979		22,941
Noncurrent receivables, net	—		4,392
Other assets	116,548		102,901
Total assets	$	1,753,201	$	1,835,014

Liabilities and Shareholders' Equity
Accounts payable	$	77,873	$	87,104
Accrued liabilities	138,700		142,988
Current maturities of long-term debt	555		4,218
Income taxes payable	1,593		14,369
Total current liabilities	218,721		248,679

Long-term debt	361,639		452,667
Other noncurrent liabilities	154,634		139,385
Deferred taxes and other liabilities	21,531		26,963
Total liabilities	756,525		867,694

Commitments and Contingencies

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; 40,916,568 issued in 2024 and 40,856,910 in 2023	41		41

Additional paid in capital	452,656		448,218
Retained earnings	1,056,514		1,010,942
Accumulated items of other comprehensive income:
Translation adjustments	(137,373)		(124,901)
Pension and postretirement liability adjustments	(17,341)		(17,346)
Derivative valuation adjustment	1,165		9,079
Treasury stock (Class A), at cost; 9,661,845 shares in 2024 and 2023	(364,665)		(364,665)
Total shareholders' equity	990,997		961,368
Noncontrolling interest	5,679		5,952
Total equity	996,676		967,320
Total liabilities and shareholders' equity	$	1,753,201	$	1,835,014

ALBANY INTERNATIONAL CORP.

CONSOLIDATED STATEMENTS OF CASH FLOWS

(in thousands)

(unaudited)


	Nine Months Ended September 30,
		2024		2023
Cash flows from operating activities:
Net income		$	70,310	$	81,066
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation		61,813		50,164
Amortization		5,190		4,614
Change in deferred taxes and other liabilities		(7,552)		(1,264)
Impairment of property, plant and equipment		1,425		577
Non-cash interest expense		769		1,148

Compensation and benefits paid or payable in Class A Common Stock		4,438		5,189
Provision/(recovery) for credit losses from uncollected receivables and contract assets		40		641
Foreign currency remeasurement loss/(gain) on intercompany loans		2,263		(4,704)
Fair value adjustment on foreign currency contracts		1,105		581
Gain on sale of assets		(515)		—

Changes in operating assets and liabilities that provided/(used) cash, net of impact of business acquisition:
Accounts receivable		17,980		(18,172)
Contract assets		(15,194)		(16,550)
Inventories		5,918		(293)
Prepaid expenses and other current assets		2,768		(3,030)
Income taxes prepaid and receivable		2,602		1,597
Accounts payable		7,316		(6,661)
Accrued liabilities		(8,320)		(16,454)
Income taxes payable		(11,995)		(5,810)
Noncurrent receivables		(579)		2,276
Other noncurrent liabilities		(17)		(3,602)
Other, net		220		2,499
Net cash provided by operating activities		139,985		73,812

Cash flows from investing activities:
Purchase of business, net of cash acquired		—		(133,470)
Purchases of property, plant and equipment		(61,985)		(48,850)
Purchased software		(101)		(276)
Proceeds received from sale of assets		1,033		—
Net cash used in investing activities		(61,053)		(182,596)

Cash flows from financing activities:
Proceeds from borrowings		48,106		71,249
Principal payments on debt		(142,691)		(51,479)

Debt acquisition costs		—		(4,108)

Taxes paid in lieu of share issuance		(2,832)		(3,136)

Dividends paid		(24,356)		(23,365)
Net cash (used in)/provided by financing activities		(121,773)		(10,839)

Effect of exchange rate changes on cash and cash equivalents		(3,357)		(647)

(Decrease)/increase in cash and cash equivalents		(46,198)		(120,270)
Cash and cash equivalents at beginning of period		173,420		291,776
Cash and cash equivalents at end of period		$	127,222	$	171,506

The following table presents the reconciliation of Net revenues to net revenues excluding the effect of changes in currency translation rates, a non-GAAP measure:


(in thousands, except percentages)	Net revenues as reported, Q3 2024		(Decrease)/ increase due to changes in currency translation rates		Q3 2024 revenues on same basis as Q3 2023 currency translation rates		Net revenues as reported, Q3 2023		% Change compared to Q3 2023, excluding currency rate effects
Machine Clothing	$	183,033	$	727	$	182,306	$	166,588	9.4	%
Albany Engineered Composites	115,353		159		115,194		114,518		0.6	%
Consolidated total	$	298,386	$	886	$	297,500	$	281,106	5.8	%

(in thousands, except percentages)	Net revenues as reported, YTD 2024		(Decrease)/ increase due to changes in currency translation rates		YTD 2024 revenues on same basis as 2023 currency translation rates		Net revenues as reported, YTD 2023		% Change compared to 2023, excluding currency rate effects
Machine Clothing	$	561,828	$	(999)	$	562,827	$	479,027	17.5	%
Albany Engineered Composites	381,882		161		381,721		345,298		10.5	%
Consolidated total	$	943,710	$	(838)	$	944,548	$	824,325	14.6	%

The following table presents Gross profit and Gross profit margin:


(in thousands, except percentages)	Gross profit, Q3 2024		Gross profit margin, Q3 2024		Gross profit, Q3 2023		Gross profit margin, Q3 2023
Machine Clothing	$	88,921	48.6	%	$	79,257	47.6	%
Albany Engineered Composites	1,463		1.3	%	22,578		19.7	%
Consolidated total	$	90,384	30.3	%	$	101,835	36.2	%

(in thousands, except percentages)	Gross profit, YTD 2024		Gross profit margin, YTD 2024		Gross profit, YTD 2023		Gross profit margin, YTD 2023
Machine Clothing	$	262,449	46.7	%	$	238,031	49.7	%
Albany Engineered Composites	49,004		12.8	%	65,826		19.1	%
Consolidated total	$	311,453	33.0	%	$	303,857	36.9	%

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 September 30, 2024
(in thousands)	Machine Clothing			Albany Engineered Composites			Corporate expenses and other		Total Company


Net income/(loss) (GAAP)	$	51,481		$	(10,293)		$	(22,967)	$	18,221
Interest expense/(income), net	—			—			2,411		2,411
Income tax expense	—			—			1,282		1,282
Depreciation and amortization expense	8,094			13,154			1,062		22,310
EBITDA (non-GAAP)	59,575			2,861			(18,212)		44,224
Restructuring costs	2,976			34			31		3,041
Foreign currency revaluation (gains)/losses (a)	1,435			(348)			1,793		2,880
Other transition expenses	—			993			(509)		484

Strategic/integration costs	410			—			2,559		2,969
Pre-tax (income) attributable to noncontrolling interest	(41)			(8)			—		(49)
Adjusted EBITDA (non-GAAP)	$	64,355		$	3,532		$	(14,338)	$	53,549
Adjusted EBITDA margin (Adjusted EBITDA divided by Net revenues) (non-GAAP)	35.2		%	3.1		%	—		17.9		%


Three months ended September 30, 2023
(in thousands)	Machine Clothing			Albany Engineered Composites			Corporate expenses and other		Total Company
Net income/(loss) (GAAP)	$	50,710		$	9,374		$	(32,930)	$	27,154
Interest expense/(income), net	—			—			3,653		3,653
Income tax expense	—			—			9,207		9,207
Depreciation and amortization expense	5,976			12,510			975		19,461
EBITDA (non-GAAP)	56,686			21,884			(19,095)		59,475
Restructuring costs	82			—			—		82
Foreign currency revaluation (gains)/losses (a)	(656)			19			516		(121)
CEO transition expenses	—			—			2,052		2,052
Inventory step-up impacting Cost of goods sold	1,370			—			—		1,370
Strategic/integration costs	—			273			1,642		1,915
Pre-tax (income) attributable to noncontrolling interest	—			(73)			—		(73)
Adjusted EBITDA (non-GAAP)	$	57,482		$	22,103		$	(14,885)	$	64,700
Adjusted EBITDA margin (Adjusted EBITDA divided by Net revenues) (non-GAAP)	34.5		%	19.3		%	—		23.0		%


Nine months ended September 30, 2024
(in thousands)	Machine Clothing			Albany Engineered Composites			Corporate expenses and other		Total Company
Net income/(loss) (GAAP)	$	153,276		$	8,329		$	(91,295)	$	70,310
Interest expense/(income), net	—			—			8,680		8,680
Income tax expense	—			—			22,131		22,131
Depreciation and amortization expense	24,276			39,374			3,353		67,003
EBITDA (non-GAAP)	177,552			47,703			(57,131)		168,124
Restructuring costs	4,581			3,144			146		7,871
Foreign currency revaluation (gains)/losses (a)	(1,247)			(110)			636		(721)
Other transition expenses	—			993			984		1,977

Strategic/integration costs	1,468			182			3,409		5,059
Pre-tax (income) attributable to noncontrolling interest	(110)			(193)			—		(303)
Adjusted EBITDA (non-GAAP)	$	182,244		$	51,719		$	(51,956)	$	182,007
Adjusted EBITDA margin (Adjusted EBITDA divided by Net revenues-non-GAAP)	32.4		%	13.5		%	—		19.3		%


Nine months ended September 30, 2023
(in thousands)	Machine Clothing			Albany Engineered Composites			Corporate expenses and other		Total Company
Net income/(loss) (GAAP)	$	153,400		$	27,460		$	(99,794)	$	81,066
Interest expense/(income), net	—			—			10,049		10,049
Income tax expense	—			—			39,908		39,908
Depreciation and amortization expense	15,682			36,246			2,850		54,778
EBITDA (non-GAAP)	169,082			63,706			(46,987)		185,801
Restructuring costs	227			—			—		227
Foreign currency revaluation (gains)/losses (a)	1,870			19			(3,609)		(1,720)
CEO transition expenses	—			—			2,052		2,052
Inventory step-up impacting Cost of goods sold	1,370			—			—		1,370
Strategic/integration costs	—			813			2,005		2,818
Pre-tax (income) attributable to noncontrolling interest	—			(474)			—		(474)
Adjusted EBITDA (non-GAAP)	$	172,549		$	64,064		$	(46,539)	$	190,074
Adjusted EBITDA margin (Adjusted EBITDA divided by Net revenues-non-GAAP)	36.0		%	18.6		%	—		23.1		%

Per share impact of the adjustments to earnings per share are as follows:


Three months ended September 30, 2024 (in thousands, except per share amounts)	Pre tax Amounts		Tax Effect		After tax Effect		Per share Effect
Restructuring costs	$	3,041	$	345	$	2,696	$	0.09
Foreign currency revaluation (gains)/losses (a)	2,880		1,000		1,880		0.06
Other transition expenses	484		121		363		0.01

Strategic/integration costs	2,969		799		2,170		0.07


Three months ended September 30, 2023 (in thousands, except per share amounts)	Pre tax Amounts		Tax Effect		After tax Effect		Per share Effect
Restructuring costs	$	82	$	21	$	61	$	0.00
Foreign currency revaluation (gains)/losses (a)	(121)		(35)		(86)		0.00
CEO transition expenses	2,052		—		2,052		0.07
Inventory step-up impacting Cost of goods sold	1,370		411		959		0.03

Strategic/integration costs	1,915		476		1,439		0.05


Nine months ended September 30, 2024 (in thousands, except per share amounts)	Pre tax Amounts		Tax Effect		After tax Effect		Per share Effect
Restructuring costs	$	7,871	$	1,511	$	6,360	$	0.20
Foreign currency revaluation (gains)/losses (a)	(721)		(262)		(459)		(0.01)
Other transition expenses	1,977		443		1,534		0.05



Strategic/integration costs	5,059		1,373		3,686		0.12


Nine months ended September 30, 2023 (in thousands, except per share amounts)	Pre tax Amounts		Tax Effect		After tax Effect		Per share Effect
Restructuring costs	$	227	$	68	$	159	$	0.01
Foreign currency revaluation (gains)/losses (a)	(1,720)		(504)		(1,216)		(0.04)
CEO transition expenses	2,052		—		2,052		0.07
Withholding tax related to internal restructuring	—		(3,026)		3,026		0.10
Inventory step-up impacting Cost of goods sold	1,370		411		959		0.03
Strategic/integration costs	2,818		725		2,093		0.07

The following table provides a reconciliation of Diluted Earnings per share to Adjusted Diluted Earnings per share:


	Three months ended September 30,				Nine months ended September 30,
Per share amounts (Diluted)	2024		2023		2024		2023
Earnings per share attributable to Company shareholders - Basic (GAAP)	$	0.58	$	0.87	$	2.24	$	2.59
Effect of dilutive stock-based compensation plans	(0.01)		—		(0.01)		(0.01)
Earnings per share attributable to Company shareholders - Diluted (GAAP)	$	0.57	$	0.87	$	2.23	$	2.58
Adjustments, after tax:
Restructuring costs	0.09		—		0.20		0.01
Foreign currency revaluation (gains)/losses (a)	0.06		—		(0.01)		(0.04)
CEO and other transition expenses	0.01		0.07		0.05		0.07
Withholding tax related to internal restructuring	—		—		—		0.10

Inventory step-up impacting Cost of goods sold	—		0.03		—		0.03
Strategic/integration costs	0.07		0.05		0.12		0.07
Adjusted Diluted Earnings per share (non-GAAP)	$	0.80	$	1.02	$	2.59	$	2.82

The calculations of net debt are as follows:


(in thousands)	September 30, 2024		December 31, 2023		September 30, 2023
Current maturities of long-term debt	$	555	$	4,218	$	27,246
Long-term debt	361,639		452,667		463,339
Total debt	362,194		456,885		490,585
Cash and cash equivalents	127,222		173,420		171,506
Net debt (non-GAAP)	$	234,972	$	283,465	$	319,079

The calculation of net leverage ratio as of September 30, 2024 is as follows:


Total Company
	Twelve months ended		Nine months ended				Trailing twelve months ended
(in thousands)	December 31, 2023		September 30, 2023		September 30, 2024		September 30, 2024 (non-GAAP) (b)


Net income/(loss) (GAAP)	$	111,610	$	81,066	$	70,310	$	100,854
Interest expense/(income), net	13,601		10,049		8,680		12,232
Income tax expense	48,846		39,908		22,131		31,069
Depreciation and amortization expense	76,733		54,778		67,003		88,958
EBITDA (non-GAAP)	250,790		185,801		168,124		233,113
Restructuring costs	282		227		7,871		7,926
Foreign currency revaluation (gains)/losses (a)	1,296		(1,720)		(721)		2,295

CEO and other transition expenses	2,719		2,052		1,977		2,644
Inventory step-up impacting Cost of goods sold	5,480		1,370		—		4,110


Strategic/integration costs	5,194		2,818		5,059		7,435
Pre-tax (income) attributable to noncontrolling interest	(665)		(474)		(303)		(494)
Adjusted EBITDA (non-GAAP)	$	265,096	$	190,074	$	182,007	$	257,029


(in thousands, except for net leverage ratio)	September 30, 2024
Net debt (non-GAAP)	$	234,972
Trailing twelve months Adjusted EBITDA (non-GAAP)	257,029
Net leverage ratio (non-GAAP)	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.

(b) Calculated as amounts incurred during the twelve months ended December 31, 2023, less those incurred during the nine months ended September 30, 2023, plus those incurred during the nine months September 30, 2024.

The tables below provide a reconciliation of forecasted full-year 2024 Adjusted EBITDA and Adjusted Diluted EPS (non-GAAP measures) to the comparable GAAP measures.


Forecast of Full Year 2024 Adjusted EBITDA	Machine Clothing				Engineered Composites
(in millions)	Low		High		Low		High
Net income attributable to the Company (GAAP) (c)	$	198	$	203	$	11	$	17
Income attributable to the noncontrolling interest	—		—		(1)		(1)
Interest expense/(income), net	—		—		—		—
Income tax expense	—		—		—		—
Depreciation and amortization	32		32		53		52
EBITDA (non-GAAP)	230		235		63		68
Restructuring costs	7		7		3		3
Foreign currency revaluation (gains)/losses (d)	(1)		(1)		—		—
Strategic/integration costs	2		2		—		—
Other transition expenses	—		—		1		1
Pre-tax (income)/loss attributable to non-controlling interest	—		—		1		1
Adjusted EBITDA (non-GAAP)	$	238	$	243	$	68	$	73
(c) Interest, Other income/expense and Income taxes are not allocated to the business segments

Forecast of Full Year 2024 Adjusted EBITDA	Total Company
(in millions)	Low		High
Net income attributable to the Company (GAAP)	$	84	$	90
Income attributable to the noncontrolling interest	(1)		(1)
Interest expense/(income), net	15		15
Income tax expense	31		34
Depreciation and amortization	91		92
EBITDA (non-GAAP)	220		230
Restructuring costs	10		10
Foreign currency revaluation (gains)/losses (d)	(1)		(1)
Strategic/integration costs	5		5
Other transition expenses	2		2

Pre-tax (income)/loss attributable to non-controlling interest	1		1
Adjusted EBITDA (non-GAAP)	$	237	$	247

	Total Company
Forecast of Full Year 2024 Earnings per share (diluted) (e)	Low		High
Net income attributable to the Company (GAAP)	$	2.69	$	2.89
Restructuring costs	0.26		0.26
Foreign currency revaluation (gains)/losses (d)	(0.01)		(0.01)

Other transition expenses	0.03		0.03

Strategic/integration costs	0.13		0.13
Adjusted Diluted Earnings per share (non-GAAP)	$	3.10	$	3.30

(d) Due to the uncertainty of these items, we are unable to forecast the full year impact for 2024. Amounts above represent actual results for the nine months ended September 30, 2024.

(e) Calculations based on weighted average shares outstanding estimate of approximately 31.3 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 6,000 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 Diluted 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 Diluted 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. Excluded costs or benefits, such as restructuring costs, foreign currency revaluation gains and losses, and costs related to strategic, acquisition, integration and other transition-related initiatives that the Company may take, 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 Diluted 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 Diluted 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 the current year and in future years; expectations in the current period and in future periods of revenues, EBITDA, Adjusted EBITDA (both in dollars and as a percentage of net revenues), Adjusted Diluted 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.

Investor / Media Contact:

JC Chetnani

VP-Investor Relations and Treasurer

jc.chetnani@albint.com

Cover Page	Oct. 30, 2024
Document Type	8-K
Document Period End Date	Oct. 30, 2024
Entity File Number	1-10026
Entity Registrant Name	ALBANY INTERNATIONAL CORP.
Entity Incorporation, State or Country Code	DE
Entity Address, Address Line One	216 Airport Drive
Entity Tax Identification Number	14-0462060
Entity Address, Postal Zip Code	03867
City Area Code	603
Local Phone Number	330-5850
Entity Emerging Growth Company	false
Entity Central Index Key	0000819793
Amendment Flag	false
Written Communications	false
Soliciting Material	false
Pre-commencement Tender Offer	false
Pre-commencement Issuer Tender Offer	false
Entity Address, City or Town	Rochester
Entity Address, State or Province	NH
Class A Common Stock
Trading Symbol	AIN
Security Exchange Name	NYSE
Title of 12(b) Security	Class A Common Stock, $0.001 par value per share