Albany International Corp. (NYSE:AIN) Q4 2019 Results Conference Call February 11, 2020 9:00 AM ET Company Participants John Hobbs - Director of Investor Relations William Higgins - President and Chief Executive Officer Stephen Nolan - Chief Financial Officer and Treasurer Conference Call Participants John Franzreb - Sidoti & Company Kristine Liwag - Bank of America Merrill Lynch Pete Skibitski - Alembic Global Advisors Peter Arment - Robert W. Baird Gautam Khanna - Cowen & Company Operator Ladies and gentl ...

Financial Data and Key Metrics - Total company net sales increased by 8% YoY, or 9% excluding currency translation effects [6] - Operating income grew by over 36% YoY, and adjusted EBITDA increased by almost 14% [6] - Gross profit for the company was $104.1 million, up 12.7% YoY, with gross margin increasing by 170 basis points to 38.4% [16] - Net income attributable to the company was $40.0 million, up 44.2% YoY, with EPS at $1.24 compared to $0.86 last year [19] - Adjusted EBITDA grew 13.9% YoY to $71.4 million [20] Business Line Performance Engineered Composites (AEC) - Net sales grew by 27% YoY, or 28% excluding currency effects [11] - Adjusted EBITDA margin for AEC was 23.9%, well ahead of expectations [12] - AEC benefited from a favorable net change in the estimated profitability of long-term contracts, contributing $3.3 million in incremental profits [21][22] - Production of LEAP components is running ahead of deliveries, contributing to overperformance in 2019 [7][8] Machine Clothing (MC) - Net sales declined by 2.6% YoY on a currency-neutral basis, driven by declines in publication and pulp grades, partially offset by growth in packaging and tissue grades [14][16] - Gross margin improved to 52.4% from 50% YoY, driven by reduced depreciation, favorable mix, and material savings [14][16] - MC adjusted EBITDA was $55.8 million, or 36.9% of net sales, down slightly from $57.8 million last year [20] Market Performance - North America saw mid-single-digit revenue growth in MC, while Europe and Asia Pacific experienced declines [10] - Softness in the pulp and paper market is expected to impact MC revenues in North America in future periods [10][29] Strategic Direction and Industry Competition - The company is focused on operational excellence, new business development, and advanced technology to drive future success in AEC [13] - In MC, the company maintains a competitive advantage through scale, continuous improvement initiatives, and superior customer service [15] - The company is closely monitoring the Boeing 737 MAX situation, which could create top-line pressure for AEC if the slowdown extends into 2020 [13][28] Management Commentary on Operating Environment and Future Outlook - The company expects full-year 2019 revenue of $1.04 billion to $1.06 billion, with adjusted EBITDA of $250 million to $260 million [27] - For 2020, the company anticipates headwinds, including potential softness in MC revenues due to economic slowdowns and the impact of the Boeing 737 MAX situation [28][29] - The company remains optimistic about long-term growth opportunities, particularly in AEC [31] Other Important Information - Total debt decreased by $58 million to $424 million, with a leverage ratio of 1.42 under the credit agreement [23] - Capital expenditures in Q3 were $14 million, with investments focused on supporting AEC ramp-ups [23] Q&A Session Summary Question: LEAP-1B Accounting and Inventory Build - The company is recognizing revenue and profit on LEAP components produced but not yet delivered, leading to a build in contract assets rather than inventory [32][34] - Inventory build is limited to a few weeks and is managed in coordination with Safran [32][33] Question: Cost-Plus Incentive Fee Contract Structure for LEAP - The cost-plus fee structure mitigates financial downside, with fixed costs recoverable and gross profit rates remaining stable [41][42] - Incentive fees can increase gross profit rates as production costs decrease [42] Question: Boeing 787 Production Rate Cut - The company does not expect a major impact from the Boeing 787 production rate cut, as the program represents a small portion of total revenue [46] Question: F-35 Program and Capex - The company has sufficient capacity to meet F-35 production demands without significant additional capex [48] Question: Machine Clothing Margins and Market Softness - MC margins improved due to favorable mix, material savings, and productivity gains, but the company remains cautious about potential softness in North America [52][53] - The company expects continued erosion in publication grade PMC sales, offset by growth in packaging and tissue grades [54] Question: Long-Term Contract Revisions - The $3.3 million favorable revision in Q3 was driven by strong operational performance and spans multiple programs [61][63] Question: LEAP Production Rates - LEAP production rates are driven by Safran's demand, with production running ahead of deliveries but expected to decrease in Q4 [65][66] Question: M&A Pipeline - The company is exploring inorganic growth opportunities but is cautious about valuations, targeting double-digit IRR and strong synergies [70][72]

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 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, 2019 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 No. 1-10026 ALBANY INTERNATIONAL CORP. (Exact name of registrant as specified in its charter) Delaware 14-0462060 (State or ...

Albany International Corp. (NYSE:AIN) Q2 2019 Earnings Conference Call July 31, 2019 9:00 AM ET Company Participants Stephen Nolan - CFO and Treasurer Olivier Jarrault - CEO Conference Call Participants Peter Arment - Robert W. Baird Christian Herbosa - Noble Capital Markets Operator Ladies and gentlemen, thank you for standing by, and welcome to the Second Quarter Earnings Call of Albany International. [Operator instructions] At the request of Albany International, this conference call on Wednesday, July 3 ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended June 30, 2019 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 No. 1-10026 ALBANY INTERNATIONAL CORP. (Exact name of registrant as specified in its charter) Delaware 14-0462060 (State or othe ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 Form 10-Q (√) QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended: March 31, 2019 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: 1-10026 ALBANY INTERNATIONAL CORP. (Exact name of registrant as specified in its charter) Delaware 14-0462060 (Stat ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-K (x) ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended: December 31, 2018 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: 1-10026 ALBANY INTERNATIONAL CORP. (Exact name of registrant as specified in its charter) | --- | --- | |--------- ...

Albany International Corp/DE/ (NYSE:AIN) Q4 2018 Results Earnings Conference Call February 12, 2019 9:00 AM ET Company Participants John Cozzolino - CFO and Treasurer Olivier Jarrault - CEO Conference Call Participants John Franzreb - Sidoti & Company Christian Herbosa - Noble Capital Markets Pete Skibitski - Alembic Global Operator Ladies and gentlemen, thank you for standing by. Welcome to the Fourth Quarter Earnings Call of Albany International. At this time, all participants are in a listen-only mode. L ...