Company to Hold Conference Call Today at 8:30
a.m. ET to Discuss Update
Albany International Corp. (NYSE: AIN) announced today that it
is providing a preliminary update to its full year outlook largely
to reflect revised revenue and profitability expectations for the
aerospace business within its Engineered Composites (AEC)
segment.
Following its regular quarterly review of program costs and
estimates relative to certain large complex aerospace contracts the
Company has updated its labor, material input and scrap cost
assumptions over the duration of certain long-term contracts. These
increased cost assumptions as well as the impact of suspended
production at a key customer pending their union negotiations will
result in an approximate $24 million negative
Estimate-at-Completion (EAC) adjustment in the third quarter of
2024. Changes in other forecast assumptions are projected to lower
second-half pre-tax earnings by an additional $8 million.
“We continue to see momentum in both Machine Clothing and
Engineered Composites. The Heimbach integration remains on track,
and Albany’s differentiated innovation is translating into robust
demand across both segments,” said President and CEO, Gunnar
Kleveland. “At the same time, growth in our aerospace programs is
resulting in more complex projects, where the manufacturing
learning curve and labor ramp are steeper.”
“Notwithstanding these changes, we expect AEC will maintain
high-teen EBITDA margins that are well above peer averages. With
Chris Stone’s recent appointment as President of AEC, I am also
confident that we will successfully execute on the opportunities in
our growing aerospace business, which are being created by Albany’s
advanced technology and deep customer relationships. Combined with
the Company’s continued strong cash flows and financial strength,
Albany has a solid foundation for success and value creation.
Significant new orders to date this year and our substantial
backlog reinforce the financial upside available to the Company,”
concluded Kleveland.
Updated Outlook
The Company will review in detail its operating and financial
performance when it reports its third quarter results.
For the full year of 2024, the Company is updating its guidance
as follows:
- Total company revenue between $1.22 billion to $1.26
billion;
- Effective income tax rate of approximately 27%;
- Capital expenditures in the range of $90 million to $95
million;
- Adjusted diluted earnings per share between $2.90 and $3.40,
with the second half EPS weighted towards the fourth quarter;
- Total company Adjusted EBITDA between $230 million to $250
million;
- Machine Clothing revenue between $740 million to $760
million;
- Machine Clothing Adjusted EBITDA between $235 million and $245
million;
- Albany Engineered Composites revenue between $480 million to
$500 million; and
- Albany Engineered Composites Adjusted EBITDA between $65
million to $75 million.
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
AEC
(in millions)
Low
High
Low
High
Net income attributable to the Company
(GAAP) (a)
$
195
$
207
$
8
$
18
Income attributable to the noncontrolling
interest
—
—
(1
)
(1
)
Interest expense, net
—
—
—
—
Income tax expense
—
—
—
—
Depreciation and amortization
34
32
53
53
EBITDA (non-GAAP)
229
239
60
70
Restructuring expenses, net (b)
7
7
3
3
Foreign currency revaluation
(gains)/losses (b)
(2
)
(2
)
—
—
Strategic/integration costs (b)
1
1
1
1
Pre-tax (income)/loss attributable to
non-controlling interest
—
—
1
1
Adjusted EBITDA (non-GAAP)
$
235
$
245
$
65
$
75
(a) 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)
$
78
$
93
Income attributable to the noncontrolling
interest
(1
)
(1
)
Interest expense, net
14
14
Income tax expense
29
35
Depreciation and amortization
94
93
EBITDA (non-GAAP)
214
234
Restructuring expenses, net (b)
10
10
Foreign currency revaluation
(gains)/losses (b)
(2
)
(2
)
Strategic/integration costs (b)
4
4
Other transition expenses (b)
3
3
Pre-tax (income)/loss attributable to
non-controlling interest
1
1
Adjusted EBITDA (non-GAAP)
$
230
$
250
Total Company
Forecast of Full Year 2024 Earnings per
share (diluted) (c)
Low
High
Net income attributable to the Company
(GAAP)
$
2.48
$
2.98
Restructuring expenses, net (b)
0.29
0.29
Foreign currency revaluation
(gains)/losses (b)
(0.03
)
(0.03
)
Other transition expenses (b)
0.10
0.10
Strategic/integration costs (b)
0.06
0.06
Adjusted Earnings per share (non-GAAP)
$
2.90
$
3.40
(b) Due to the uncertainty of these items,
we are unable to forecast the full year impact of these items for
2024
(c) Calculations based on weighted average
shares outstanding estimate of approximately 31.2 million
Conference Call Today
A conference call to discuss today’s announcement will be held
today, October 3, 2024, at 8:30 a.m. Eastern Time. Interested
parties are invited to listen to the webcast via the Company’s
Investor Relations website at www.albint.com.
Interested parties may access dial information for the call by
registering via web link here. A replay of the webcast will be
available on the Company’s website at approximately Noon Eastern
Time on October 3, 2024.
Preliminary Information
The unaudited financial and operational information presented in
this press release is preliminary and may change. Albany’s
International’s financial closing procedures with respect to the
estimated financial information provided in this press release are
not yet complete, and as a result, the Company’s final results may
vary materially from the preliminary results included in this press
release. The Company undertakes no obligation to update or
supplement the information provided in this press release until the
Company releases its financial statements for the three months
ended September 30, 2024. The preliminary financial information
included in this press release reflects the Company’s current
estimates based on information available as of the date of this
press release and has been prepared by Company management. This
preliminary financial and operational information should not be
viewed as a substitute for full financial statements prepared in
accordance with GAAP and is not necessarily indicative of the
results to be achieved for any future periods. This preliminary
financial and operational information could be impacted by the
effects of financial closing procedures, final adjustments, and
other developments.
Non-GAAP Measures
This release, including the conference call commentary
associated with this release, contains certain non-GAAP measures,
which should not be considered in isolation or as a substitute for
the related GAAP measures. Such non-GAAP measures include EBITDA,
Adjusted EBITDA, and Adjusted EBITDA margin; 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.
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. 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 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.
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.
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.
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version on businesswire.com: https://www.businesswire.com/news/home/20241002196084/en/
Investors / Media:
JC Chetnani VP-Investor Relations and Treasurer +1 (603)
330-5851 jc.chetnani@albint.com
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