Company Overview - Albany International Corp operates in two segments: Albany Engineered Composites (AEC) and Machine Clothing (MC)[12] - The company has a global operating footprint of 23 plants across 11 countries and over 4,000 employees[12] - Albany International Corp has paid cash dividends each quarter since Q4 2001, currently at $0.20 per share[12] Financial Performance - Albany International Corp's net sales grew 11% CAGR from 2016 to 2019[15] - Net sales declined 15% from 2019 to 2020[15] - Adjusted EBITDA increased 50% from 2017 to 2020[15] - The company's revenue outlook for FY 2021 is $900 million - $920 million[77] - Capital expenditures for FY 2021 are projected to be $40 million - $50 million[77] - Adjusted EBITDA for FY 2021 is forecasted to be $230 million - $240 million[77] Segment Performance - AEC's revenue in FY2020 was $328 million[62] - MC holds approximately 30% global market share of fabrics and process felts[37] - The company's net debt (absolute) is $80 million, with a net leverage (absolute) of 032x as of Q3 2021[102]

Financial Data and Key Metrics Changes - The company reported GAAP EPS of $0.95 and adjusted EPS of $0.83 on revenue of $232 million, an increase of nearly 10% from Q3 last year [6][7] - Total company net sales were $203.4 million, a 9.6% increase compared to $212 million in the same quarter last year, with an 8.8% increase when adjusted for currency translation effects [15] - Gross profit for the company was $92 million, an increase of over 5% from the comparable period last year, but overall gross margin decreased by 160 basis points from 41.2% to 39.5% of net sales [18][19] Business Line Data and Key Metrics Changes - Machine Clothing segment grew sales by 11% compared to Q3 last year, with net sales up 9.9% year-over-year after adjusting for currency translation effects [7][15] - Engineered Composites delivered top-line growth of nearly 7%, primarily driven by growth on LEAP and CH-53K programs, with net sales growing by 6.7% after adjusting for currency translation effects [7][16] - AEC segment's gross margin declined from 21.6% to 16.1% of net sales due to a change in program mix and lower fixed cost absorption [19][20] Market Data and Key Metrics Changes - Demand in Machine Clothing's end markets has been resilient, particularly strong in packaging in the Americas, while tissue markets have shown mixed results [11] - International travel bookings are showing positive signs as borders reopen, although no near-term pickup in wide-body production demand is expected [8][9] - The company noted significant logistics challenges and price inflation on various raw materials and wages, with expectations that inflationary pressures will continue [12][30] Company Strategy and Development Direction - The company is focused on organic growth investments and acquisitions that fit its strategy to build on technology leadership and market positions [13][14] - A $200 million share repurchase program has been authorized to return capital to shareholders while maintaining a focus on value creation [14][27] - The company is optimistic about long-term secular trends in its markets, leveraging its global footprint and product development capabilities [7][8] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the gradual recovery of commercial aerospace, particularly in narrow-body aircraft demand [8][9] - Concerns were raised about the slow recovery of the Boeing 787 program and the impact of inflationary pressures on future margins [22][30] - The company is raising its revenue guidance for the Machine Clothing segment to between $600 million and $610 million, reflecting strong demand [29][35] Other Important Information - The company has a healthy balance sheet with low debt and strong free cash flow generation of over $40 million in the quarter [7][25] - The effective income tax rate for the quarter was 29.4%, higher than the previous year's 24.7% due to a higher share of global profits in jurisdictions with higher tax rates [22][23] Q&A Session Summary Question: Can you help us think through the revenue and cash recognition related to the MAX destock? - Management clarified that contract assets include more than just LEAP-1B, and the growth in contract assets is driven by other programs like F-35 and CH-53K [39][41] Question: How do you see the EBITDA guidance range for the rest of the year? - Management indicated they are trending towards the upper end of the guidance range but are cautious as it is early in the quarter [42][43] Question: What are the mechanisms in place to pass through cost increases in Engineered Composites? - Management explained that cost-plus contracts with SAFRAN allow for the pass-through of cost increases, while fixed-price contracts have limited protection [48][50] Question: Are there any inventory destocking challenges with the F-35 program? - Management stated they do not foresee significant destocking challenges but are managing revenue pressure and production levels [56][58] Question: Can you quantify the destocking for the 787 and F-35 programs? - Management provided estimates of destocking impacts, indicating a significant reduction in 787 revenue and a smaller reduction for F-35 [72][73]

Albany International Corp. (NYSE:AIN) Q2 2021 Earnings Conference Call July 27, 2021 9:00 AM ET Company Participants John Hobbs - Director of Investor Relations Andrew Higgins - President & Chief Executive Officer Stephen Nolan - Chief Financial Officer & Treasurer Conference Call Participants Eric Ruden - Robert W. Baird & Co. Gautam Khanna - Cowen & Company Michael Ciarmoli - Truist Securities Ronald Epstein - Bank of America Operator Ladies and gentlemen, thank you for standing by, and welcome to the Alb ...

Albany International Corp. (NYSE:AIN) Q1 2021 Earnings Conference Call April 27, 2021 9:00 AM ET Company Participants John Hobbs - Director of Investor Relations Andrew Higgins - President & Chief Executive Officer Stephen Nolan - Chief Financial Officer & Treasurer Conference Call Participants Eric Ruden - Robert W. Baird & Co. Pete Skibitski - Alembic Global Gautam Khanna - Cowen & Company John Franzreb - Sidoti & Company Operator Ladies and gentlemen, thank you for standing by. Welcome to the Albany Inte ...

Part I Financial Information [Item 1. Financial Statements](index=4&type=section&id=Item%201.%20Financial%20Statements) This section presents the unaudited consolidated financial statements for Q1 2021, showing net sales of $222.4 million and net income of $27.6 million Consolidated Statements of Income (Q1 2021 vs Q1 2020) | Financial Metric | Three Months Ended March 31, 2021 (in millions) | Three Months Ended March 31, 2020 (in millions) | | :--- | :--- | :--- | | **Net sales** | $222.4 | $235.8 | | **Gross profit** | $88.5 | $89.5 | | **Operating income** | $41.8 | $39.6 | | **Net income attributable to the Company** | $27.6 | $9.1 | | **Diluted Earnings per share** | $0.85 | $0.28 | Consolidated Balance Sheets (As of March 31, 2021) | Balance Sheet Item | March 31, 2021 (in millions) | December 31, 2020 (in millions) | | :--- | :--- | :--- | | **Total current assets** | $704.4 | $717.3 | | **Total assets** | $1,512.2 | $1,549.9 | | **Total current liabilities** | $167.0 | $190.9 | | **Total liabilities** | $686.0 | $730.1 | | **Total equity** | $826.2 | $819.9 | Consolidated Statements of Cash Flows (Q1 2021 vs Q1 2020) | Cash Flow Activity | Three Months Ended March 31, 2021 (in millions) | Three Months Ended March 31, 2020 (in millions) | | :--- | :--- | :--- | | **Net cash provided by/(used in) operating activities** | $33.7 | ($6.6) | | **Net cash used in investing activities** | ($12.5) | ($12.8) | | **Net cash (used in)/provided by financing activities** | ($21.7) | $54.2 | | **(Decrease)/increase in cash and cash equivalents** | ($3.4) | $27.1 | [Notes to Consolidated Financial Statements](index=8&type=section&id=Notes%20to%20consolidated%20financial%20statements) Detailed notes explain accounting policies, segment performance, minimal restructuring, and ongoing asbestos litigation with sufficient insurance coverage Segment Performance (Q1 2021 vs Q1 2020) | Segment | Net Sales (Q1 2021, in millions) | Net Sales (Q1 2020, in millions) | Operating Income (Q1 2021, in millions) | Operating Income (Q1 2020, in millions) | | :--- | :--- | :--- | :--- | :--- | | **Machine Clothing** | $148.2 | $136.6 | $50.4 | $47.2 | | **Albany Engineered Composites** | $74.2 | $99.2 | $2.9 | $7.6 | - Restructuring costs were minimal in Q1 2021 at **$0.05 million**, compared to **$0.64 million** in Q1 2020. The 2020 charges were principally related to the discontinued operations at the MC production facility in Sélestat, France[35](index=35&type=chunk)[36](index=36&type=chunk) - The company is a defendant in asbestos-related lawsuits, with **3,617 claims** pending as of March 31, 2021. The total cost to resolve all claims to date is **$10.4 million**, almost **100%** of which was paid by its insurance carrier. The company has approximately **$140 million** of remaining insurance coverage for current and future claims[70](index=70&type=chunk)[71](index=71&type=chunk) [Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations](index=21&type=section&id=Item%202.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management discusses Q1 2021 performance, noting a 5.7% sales decrease, increased operating income, improved liquidity, and better non-GAAP measures - The Machine Clothing (MC) segment is the company's core business and primary cash generator, while the Albany Engineered Composites (AEC) segment offers significant long-term growth potential, particularly in aerospace applications[79](index=79&type=chunk)[81](index=81&type=chunk) Net Sales Change by Segment (Q1 2021 vs Q1 2020) | Segment | As Reported % Change | % Change (Excluding Currency Effects) | | :--- | :--- | :--- | | **Machine Clothing** | +8.5% | +4.9% | | **Albany Engineered Composites** | -25.2% | -26.4% | | **Total** | -5.7% | -8.2% | Non-GAAP Performance Measures (Q1 2021 vs Q1 2020) | Metric | Q1 2021 (in millions) | Q1 2020 (in millions) | | :--- | :--- | :--- | | **Adjusted EBITDA** | $60.7 | $59.1 | | **Adjusted EPS** | $0.87 | $0.78 | [Consolidated Results of Operations](index=23&type=section&id=Consolidated%20Results%20of%20Operations) Q1 2021 consolidated net sales decreased 5.7% to $222.4 million, with improved gross profit margin and lower STG&R expenses, leading to higher net income - Excluding currency effects, net sales decreased **8.2%** YoY. MC sales grew **4.9%** due to demand for packaging grades, while AEC sales fell **26.4%** due to declines in the LEAP and Boeing 787 programs[86](index=86&type=chunk) - STG&R expenses decreased from **$49.2 million** to **$46.7 million**, largely because Q1 2020 included termination costs for the former CEO[91](index=91&type=chunk)[92](index=92&type=chunk) - The effective tax rate for Q1 2021 was **26.7%**, a sharp decrease from **62.1%** in Q1 2020. The prior year's rate was significantly impacted by a non-deductible foreign exchange loss on an intercompany loan[101](index=101&type=chunk)[103](index=103&type=chunk) [Segment Results of Operations](index=26&type=section&id=Segment%20Results%20of%20Operations) MC segment sales grew 8.5% to $148.2 million, while AEC segment sales declined 25.2% to $74.2 million due to aerospace program impacts Machine Clothing Segment Performance (Q1 2021 vs Q1 2020) | Metric | Q1 2021 (in millions) | Q1 2020 (in millions) | | :--- | :--- | :--- | | **Net sales** | $148.2 | $136.6 | | **Gross profit** | $76.4 | $72.7 | | **Operating income** | $50.4 | $47.2 | Albany Engineered Composites Segment Performance (Q1 2021 vs Q1 2020) | Metric | Q1 2021 (in millions) | Q1 2020 (in millions) | | :--- | :--- | :--- | | **Net sales** | $74.2 | $99.2 | | **Gross profit** | $12.2 | $16.8 | | **Operating income** | $2.9 | $7.6 | [Liquidity and Capital Resources](index=28&type=section&id=Liquidity%20and%20Capital%20Resources) The company's financial position is solid, with operating cash flow improving to $33.7 million and $316 million available on its credit facility - Net cash provided by operating activities was **$33.7 million** in Q1 2021, a significant improvement from the **$6.6 million** used in Q1 2020[116](index=116&type=chunk)[117](index=117&type=chunk) - As of March 31, 2021, the company had **$237.9 million** in cash and cash equivalents, with **$209.0 million** held by foreign subsidiaries[117](index=117&type=chunk) Net Debt Calculation | (in millions) | March 31, 2021 | Dec 31, 2020 | | :--- | :--- | :--- | | **Total debt** | $384.0 | $398.0 | | **Cash and cash equivalents** | $237.9 | $241.3 | | **Net debt (non-GAAP)** | $146.1 | $156.7 | [Item 3. Quantitative and Qualitative Disclosures about Market Risk](index=33&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20about%20Market%20Risk) This section refers to an exhibit for detailed discussion of the company's exposure to market risks, including interest rate and foreign currency fluctuations - The company's discussion of its exposure to market risk is included as an exhibit to the Form 10-Q[130](index=130&type=chunk) [Item 4. Controls and Procedures](index=33&type=section&id=Item%204.%20Controls%20and%20Procedures) Disclosure controls and procedures were effective as of March 31, 2021, with no material changes to internal control over financial reporting - Management concluded that the company's disclosure controls and procedures are effective for timely and accurate reporting[131](index=131&type=chunk) - No material changes to the company's internal control over financial reporting were identified during the first quarter of 2021[131](index=131&type=chunk) Part II Other Information [Item 1. Legal Proceedings](index=33&type=section&id=Item%201.%20Legal%20Proceedings) This item incorporates by reference Note 16 of the financial statements, detailing the company's ongoing asbestos-related litigation - Information regarding legal proceedings, primarily asbestos litigation, is detailed in Note 16 of the Consolidated Financial Statements[133](index=133&type=chunk) [Item 1A. Risk Factors](index=34&type=section&id=Item%201A.%20Risk%20Factors) No material changes to risk factors have occurred since the company's Annual Report on Form 10-K for the year ended December 31, 2020 - There have been no material changes in risk factors since the company's 2020 Annual Report on Form 10-K[134](index=134&type=chunk) [Item 2. Unregistered Sales of Equity Securities and Use of Proceeds](index=34&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) No share repurchases occurred in Q1 2021, with an authorization to purchase up to 2 million shares of Class A Common Stock remaining - No share repurchases were made during the first quarter of 2021. The company remains authorized to purchase up to **2 million shares** of its Class A Common Stock[135](index=135&type=chunk) [Other Items (Defaults, Mine Safety, Other Info, Exhibits)](index=34&type=section&id=Other%20Items) This section confirms no defaults on senior securities, no mine safety disclosures, and no other material information, along with a list of exhibits - The company reported no defaults upon senior securities, no mine safety disclosures, and no other material information for the period[135](index=135&type=chunk)

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 ______________________________________________________________ FORM 10-K ☒ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended: December 31, 2020 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 or 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 | --- | |------------------------------------------------------------------------------------------------------------------------------------ ...

Albany International Corp. (NYSE:AIN) Q3 2020 Earnings Conference Call October 29, 2020 9:00 AM ET Company Participants John Hobbs - Director of Investor Relations Bill Higgins - President & Chief Executive Officer Stephen Nolan - Chief Financial Officer & Treasurer Conference Call Participants Peter Arment - R.W. Baird Caitlin Dullanty - Bank of America John Franzreb - Sidoti Patrick Baumann - JPMorgan Operator Ladies and gentlemen, thank you for standing by and welcome to the Albany International Third Q ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 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) Class B Common Stock, $0.001 par value per share AIN The New York Stock Exchange (NYSE) Form 10-Q ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended: September 30, 2020 OR ☐ TRANSITION REPORT PURSUANT T ...